The purpose of this film is to inspire the world and further the Kingdom of God. The information contained in this business plan is confidential and proprietary to House of God Films LLC (the “Company”) and is intended only for the persons to whom it is transmitted by the Company or its representatives. Any reproduction of this document, in whole or in part, or the divulgence of any of its contents without the prior written consent of the Company, is prohibited. This is a business plan. It does not imply and shall not be construed as an offering of securities. Prospective investors are not to construe the contents of this document as investment, legal or tax advice from either the Company or the preparers of this document. Any prospective investor should consult with professional investment advisors and gain professional legal and tax advice. Each potential investor specifically understands and agrees that any estimates, projections, revenue models, forecasts or assumptions are by definition uncertain and thus possibly unreliable. Any party considering a transaction with the Company agrees to look solely to its own due diligence. The Seer is a highly marketable faith-based project that’s based on true events. The storyline is a true story that follows a young man who turned his life around after finding God. Based on the book, “From Punk to Pastor” the project will be filmed on a low budget utilizing high caliber cast to maximize the return for investors. I. Investment Opportunity The Company proposes a $255,768.00 budget after utilizing film incentives to produce the Film. Investors will be entitled to a 120% return on their investment (ROI), meaning some investors are entitled to receive their initial investment plus 20 percent interest, in addition to proceeds receivable from 40% of the film for up to 10 years. All investors may, if they choose, attend all premiere screenings and after-parties, wherever they are held. Additionally, investors that want to promote a business or company as a “co-sponsor” will be able to do so, which will provide the business with an opportunity for national / international advertising. The Director and Producers have positive relationships with many distributors, including Warner Bros., TriStar, IM Global, Universal, Lions Gate and Paramount. To maximize the Company’s bargaining power, the distribution negotiation will begin just prior to or immediately following completion of principal photography. This strategy increases the potential profit that the film could earn. II. Producers Engage Producers have engaged in general discussions with other certain proposed actors and agents. However, actors agents and managers rarely agree to execute letters of intent or definitive agreements until the production company can demonstrate it has verifiable funds deposited into its production bank account specifically for the production of the motion picture in question. Notwithstanding the foregoing, the producers remain confident that the quality of The Seer project coupled with verifiable funds will enable them to conclude advantageous, financially reasonable contractual agreements with commercially successful cast members that will serve to propel the end product at the box office worldwide. III. THE INDUSTRY In 2011, the North American box office totaled $10.2 billion. Due to the growth in international demand, American motion picture distributors generated more than $18.1 billion in worldwide revenues. Analysts project that the worldwide box office will increase by 5% over the next 5 years. 3.1 Production The business of the motion picture industry can be broadly divided into two major segments: production and distribution. Production involves the development, financing and making of motion pictures. Distribution involves the marketing, licensing, promotion, physical reproduction, delivery and exhibition of completed films. The production of a motion picture usually consists of a development period where the script is polished, and the production financing is acquired. This is followed by a 6-to-14-week pre-production period where the cast and crew are assembled, locations are set, and the production is thoroughly planned out. Principal photography can vary from 15 to 45 days on an independent film depending on the budget. During post-production, the film will go through editing, visual effects, color correction, sound design and have the titles added. On a drama film like The Seer, this should take from 10 to 14 weeks to deliver to the distributor. Independent motion picture production has skyrocketed with the advent of new, less expensive and more versatile technology and in response to the increase in demand for new film products. With the increase in the number or art house theaters, mainstream theater chains, cable channels, digital satellite channels, Internet online sales, rentals and a wide variety of other new technologies, distributors and programmers require more content to meet consumer demand. Hollywood movie studios have taken note of the independent market as a viable source of additional revenue and have opened independent production and distribution arms charged with the task of helping to feed the distribution pipeline, and therefore add to the corporate bottom line. 3.2 Theatrical Distribution The distribution of a motion picture involves the licensing of the picture in the U.S., Canada and the foreign marketplace. The distributor will make all efforts to license the following rights: theatrical exhibition; non-theatrical markets (where applicable, such as educational markets); home video (including laser disc, DVD and CDs); cable and pay-per view; video-on-demand; internet online sales, rentals and television. Additional ancillary markets include merchandising and music or soundtrack rights. Even though the major studios have long-standing relationships with the large theater chains, exhibitors and companies will book the films that people want to see. Public demand for specific movie products may translate into profits for a film. Even if a film is not profitable in the domestic market, oftentimes it can recoup its costs and earn a gross profit in the foreign market. 3.3 Foreign Exhibition Much of the projected growth in the worldwide industry comes from the international markets. Distributors and exhibitors continue to find new ways to grow the box office revenue pool. The growth of multiplexes in Europe and an increase in the number of screens in Asia and Latin America have both contributed to this growth. Other factors include privatization of overseas television stations, the introduction of direct broadcast satellite services and increased cable penetration. It is important to note that in the major European territories, typical television license fees surpass video license fees. In some instances, a license fee for a feature film may be as much as three times the amount paid by a video distributor for the same picture. 3.4 Independent Films It is difficult to get an accurate measure of the size of the independent segment of the film industry. Traditionally, the definition of an independent film is one that is financed by sources other than a studio. All films sold by independent distributors are by definition independent. These films are tracked annually by research organizations. What is difficult to ascertain are the number of films distributed by the studios that were actually financed by third parties. This number appears to be growing as studios are forced to deal with the realities of a fickle economy. Studios have been establishing relationships with production companies for whom they subsidize part of the production financing or only pay for the prints and advertising expenses. Some analysts have estimated that the independent share of total films produced in the United States may be as high as 70%. IV. THE MARKET With the enormous success in recent years of the faith-based films and independent film segment, some independent companies such as Miramax have become well-financed divisions of studios. The studios can then capitalize on the success of the “independent” distribution arms attached to them, while the “independent” distributors maintain a level of autonomy within the corporate structure. The independent distributors are then free to produce and distribute those films which have smaller budgets, which can then be placed into niche markets. “The Seer” is a film that falls into the Faith Based Drama genre. This translates into a Broad Market Appeal, with a greater chance of distribution, since it will appeal to a large segment of the worldwide population. The past two decades have seen a great resurgence of independent filmmakers, smaller production companies and distribution companies. Specialty theaters are also on the rise. Most low-budget features get their initial theatrical release in these venues, which attract adult and college audiences. While most independent productions were limited to the specialty circuit, they are now also being shown in mainstream multiplex theaters for general consumption. All these developments have combined to increase the chances of financial success for a well-made, low budget film. As an independent production company, the company has advantages over a studio system. The production team is in control of the script, which means that any changes to the script do not need to be reviewed by committee, losing valuable time in the process, but can be implemented immediately. QUICK RESPONSE This quick response time is vital to a production, when every minute wasted costs the production company thousands. Another significant advantage that the Company has is the lower risk involved in investing in a smaller firm. When the negative cost (actual price paid up to and through the completion of the film negative, which is then used in the process of creating release prints to be shown in theaters), overhead and P&A (prints and advertising) costs are factored in, a studio picture must gross 2.5 times the film’s budget to recoup the costs of making the film. Therefore, a film costing $2 million would have to make $5 million to break even. By the same standard of comparison, our film budgeted at $255,768.00 need only gross $639,420.00 to recoup its costs. This figure is much more readily achieved in domestic and international distribution.