120% of Principal + 50% of Net Profits
120% of Principal + 50% of Net Profits
100% of proceeds are paid to investors pro-rata until 120% of principal investment is returned. Thereafter investors earn 50% of Net Profits. This is a custom contract, see document for details.
|1||Produced by an award-winning company with lots of horror film experience|
|2||Previously crowdfunded for the recently filmed "Martingale" (now in editing)|
|3||Connections to top-level, Hollywood talent|
|4||Our fourth feature film|
Jon Jed Films, the up-and-comer horror production house and architect behind the project, has partnered with Adventus, a well-oiled film company in the Pacific Northwest. To date, Adventus has internally produced three feature films in the horror and thriller genres in various stages of production. But that's just the tip of the iceberg: Chris Taylor, the creative force behind Adventus, has well over 50 films to his name, working on crews in key capacities, and his company's cinematography work has turned up ten movie awards in the “Best of”, “Audience Choice” and “Best Cinematography” categories.
This team knows how to create great genre films on a small budget. And because of how well accepted horror is in the film market, The Devil’s Circle is primed for great success with its audience.
Cinematic Marketability at a Lesser Cost
Low-budget movies like The Devil’s Circle are usually funded by indie film producers or investors who want to test the waters within this market. These projects are much lower risk than the million dollar blockbusters we usually see, but they still provide good earning potential and establish the same integrity and communal predilection among filmmakers. It supports the independent film community and maintains our Pacific Northwest region’s ability to produce quality content.
Our #1 goal financially is to see our investors recoup their money. After that, the percentages you earn are determined by the number of shares purchased. The total budget for The Devil’s Circle is $150,000. We need a minimum of $50,000 to "greenlight" the project and begin pre-production, and with a minimum of $75,000. raising the rest through future equity, production company points or donation crowdfunding, we can finish the entire movie. With the lesser amount, however, we'll lack the funds to afford any name-talent, which would be crucial for promoting and helping market it to a broader audience.
Indie Horror Movies SELL
Coherence, Found, The Invoking: these are movies most people know nothing about. But all three are horror films made in the last few years that have at least tripled the amount it cost to make them - and without the use of big name talent. It's very common for an independent producer to strike a six-figure deal on a micro-budget feature, especially in this genre. For a movie like The Devil's Circle, made for $100-150k, this opens up a big window of opportunity to see a profit and it certainly depends on the quality of the movie and how we leverage our distribution channels.
As soon as we complete post-production on The Devil's Circle, we'll immediately find channels to give it visibility and get it on the market - and we'll do that by showcasing it film festivals around the world, press (usually online these days) and early distributor and sales representation solicitation. With movies, it's all about about perceived quality and an implied entertainment value, usually through trailer and artwork (movie poster) creation. This is something our team is great at doing within very economical means while getting it through what we'll refer to as "Stage 1" of the marketing process: getting the distributor's attention. Once it's in their hands, they take their own liberties with marketing to reach the largest audience possible. We'll call this "Stage 2" which in essence, is building the movie's brand. But reaching that point also means we've completed the most difficult steps as filmmakers and it's up to the audience to decide how successful the movie is!
We appreciate you taking a look at our campaign and we hope to see you at the wrap party and cast & crew screening as an investor or Producer!
The Devil's Circle has financial statements ending April 1 2020. Our cash in hand is $0, as of May 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Jon Jed Films is an up-and-comer horror production house and architect behind the project. They've partnered with Adventus, a well-oiled film company in the Pacific Northwest. To date, Adventus has internally produced three feature films in the horror and thriller genres in various stages of production.
Creating more consistent content (at least once a year) for worldwide digital distribution.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
The Devil's Circle LLC was incorporated in the State of North Carolina in March 2019.
JonJed agrees, upon the minimum financing of The Devil’s Circle LLC, to employ Adventus Films LLC in the production as Producer(s) and Director Photography. The duration of employment will depend entirely on the total amount raised for the entire production. If funding fails to meet the minimum amount, no further commitment is required between the two parties. A full copy of the agreement can be found attached to the Form C.
Since then, we have:
Historical Results of Operations
Our company was organized in March 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
The Devil's Circle LLC cash in hand is $0, as of May 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 24 months.
Our operations cover only a 1 year window in the future when more than 90% of the funds will be spent.
About 25% of our expenses will occur in 3-6 months after we're funded for Pre-Production costs and the rest will be needed during the production of the project. There won't be any revenue for at least 12 months, but likely closer to 24 months. We predict needing $50,000 to complete a total production and needing $105,000 to complete production and post-production. If we only raise $50,000, we will still produce the movie, but will also launch a subsequent fundraising round to cover post-production costs.
The company currently does not have any other sources of capital upon which to rely, but may pursue other more conventional fundraising methods if needed.
While JonJed Films's (the parent company of The Devil's Circle LLC) lead production team, Adventus Films, has been around a while and has collaborated in a key position on over 25 narrative films, it has been at the helm of 3 so far: One released in 2019, one releasing later this year and one still in post-production. This means that, while we have helped make other production companies' films see success, we have yet to do it on our own with our own film.
Competition from other movies in our genre, in the market, at the time of this movie's release, is always a risk. Especially considering this production's low budget which doesn't allow for A-list actors, there's considerable competition with those movies with similar genres with more recognizable actors that could earn more attention from audiences and distributors. This ultimately comes down to good timing with what distributors want in their library and a great marketing campaign.
We cannot predict the economic success of any movie because the revenue derived from the distribution of a film (which does not necessarily directly correlate with the production or distribution costs incurred) depends primarily upon its acceptance by the public, which cannot be accurately predicted. The economic success of a film also depends on the public’s acceptance of competing series and films, the availability of alternative forms of entertainment and leisure-time activities, general economic conditions and other tangible and intangible factors, all of which can change and cannot be predicted. We cannot guarantee that the film will be profitable.
Investors have no voting rights. They will have no right to participate in the business or affairs of The Devil's Circle LLC. The Financing Agreement does not contain any affirmative or negative covenants relating to the operation of the business or otherwise. The Devil's Circle LLC does not have any voting agreements in place for Revenue Participation Rights participants. The Devil's Circle LLC does not have any shareholder/equity holder agreements in place. Investors under no circumstances shall have the right to rescind, terminate or enjoin the exploitation of the movie or interfere with any rights granted to, any distributor or licensee under any agreement entered into by The Devil's Circle LLC. As between The Devil's Circle LLC and the investor, all business and creative decisions with regard to the movie shall be made solely by The Devil's Circle LLC.
If the film fails for any reason, is never produced or is abandoned, investors will not receive any return on their investment and will lose all of their investment amount. The revenue participation rights only provide a right to share in the revenues of “The Devil's Circle”. Accordingly, investors should be aware that their investment is not diversified and totally dependent upon the success of a single film. The film might not be made due to unforeseen circumstances such as a loss of key personnel, industry strike, weather, natural disaster, illness of cast or other key personnel.
Labor laws for actors, or strike by actors' unions may affect our ability to complete "The Devil's Circle". Various federal and state labor laws govern our relationship with our employees and affect operating costs. These laws include minimum wage requirements, overtime pay, healthcare reform and the implementation of the Patient Protection and Affordable Care Act, unemployment tax rates, workers’ compensation rates, citizenship requirements, union membership and sales taxes. A number of factors could adversely affect our operating results, including additional government-imposed increases in minimum wages, overtime pay, paid leaves of absence and mandated health benefits, mandated training for employees, increased tax reporting and tax payment, changing regulations from the National Labor Relations Board and increased employee litigation including claims relating to the Fair Labor Standards Act.
The film might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case the Company might need to reduce sales & marketing, operations, or other expenses. Even if the film raises the entire round successfully, we may need to raise more capital in the future in order to continue. Even if we do make successful offering(s) in the future, the terms of that offering might result in your investment in the company being worth less because of the terms of future investment rounds.
As the film has not yet secured a full cast or distribution, it is possible that it will not be able to secure either of those things and will never be produced.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The COVID-19 pandemic can last longer than expected, which would impact our ability to produce the film and generate revenues.
|11||Chris Taylor is a part-time officer.|
Chris Taylor is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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