Ringwood Studios Business Plan BASIC · will be run like Cinespace, Inc. in Chicago, Illinois, or like Pinewood Studios in Shepperton, UK or Atlanta, GA. American Studios is being

COMPANY OVERVIEW

American Studios will provide a comprehensive array of motion picture production services in the village of

Ringwood, Illinois (McHenry County), which boarders Wonder Lake, Illinois on “Chain-Of-Lakes” residential

and recreational area near the Illinois-Wisconsin boarders. The studio complex can be situated in a location

similar to the former Modine Manufacturing building, built in 1961, with over 160,000 sq. ft. of potential

soundstages, production offices, and post production facilities. Other sites are being reviewed as well, but the

Ringwood property will be used as a salient example. The studio facility operating company will be formed

under an EB-5 Job Creating Entity (JCE). It can also be formed as a limited liability company, stand alone as

well, so its owners or investors have the benefits of a closely-held company or future public one. The facility

will be run like Cinespace, Inc. in Chicago, Illinois, or like Pinewood Studios in Shepperton, UK or Atlanta, GA. American Studios is being created out of a recognizable need for motion picture production professionals to

film in Illinois as a key U.S., domestic location that is close to multiple cities (Rockford, Madison, Milwaukee,

Chicago, Lake Geneva, Kenosha, Beloit, etc.), and to major film production hubs (Ontario, Canada is a one

hour flight, Montreal, Canada is a one and a half hour flight), while remaining remote enough to film in rural

areas designated for practical locations (small towns, parks, and countryside, forests, wilderness, etc.), and

having 65+ acres to build “back lots” of ancient cities, medieval towns, pilgrim villages, wild west outposts,

military encampments, or London, New York, or Paris streets, for a true movie studio ranch with outdoor sets. American Studios is a forward thinking organization that provides its state and union employees high-quality

contracts, but also readily complies with union workers who do commute from other jurisdictions. The

company will pay perks (i.e., health, dental, vision, life, and disability premiums), and offer large retirement

packages that are comparable to benefit packages at Hollywood studios. Our goal is to create a family-like

work environment that promotes creativity, dedication to craft, and a high rate of worker satisfaction. Our

motto is, “Provide the very best for casts and crews, and new clients with studio contracts will come calling.” American Studios seeks funding from EB-5 investors, and will provide shares of stock, non-voting ownership,

and other avenues of financial backing via state incentives and grants. When our funding goals are reached,

we will begin phase 1 of our plan: Establishing a corporate office, sound stages, learning annex, and post

production suite in Ringwood, IL. This includes the purchase and acquisition of motion picture production

equipment rentals, which costs are outlined in the attached business plan and pro forma materials. Upon completion of the $10 million studio soundstage and equipment facilities, we will begin work on phase

2: Conversion of the leased land (for 10 years at $150,000 annually) as exterior back-lot stages. Phase 3 will

begin shortly thereafter: Use of interior and exteriors for water tank and void spaces for H2O and CG capture. We will provide a comprehensive array of media production services that will attract film and other media

production enterprises to bring their recording and post-production needs to Northern Illinois in lieu of

California, Canada, Europe, and other competing locations. Our value proposition includes professional grade

equipment, wide open spaces, lakeland scenery, with access to multiple modes of transportation (interstate

freeways, rail or air), reasonably-priced labor including college students, and a wide variety of lodging, meal

and entertainment options in nearby tourist-friendly towns, ready for after-hour workers’ enjoyment, and

easy access to health care, emergency services, and a media/production supplies. The Ringwood Studio’s

triangle of support extends outward to: Sound stages, production offices, post-production suites, screening

rooms, equipment rentals, backlots, commissary/kraft services, production offices, and a fully-stocked health

club kitchen juice bar and 24-hour gym. Ringwood Studios will also be a fully ISO 9001 compliant GreenEarth

corporation, providing stages that are powered with the latest bio-fuel and renewable technologies (including

use of solar, wind, and natural gas from Marathon Engines and Bloom Energy). In addition, American Studios

will seek out new technologies that can reduce grid power consumption and decrease fossil fuel dependency.

PRODUCTS / SERVICES

American Studios will provide a comprehensive array of media production services that will attract film

and other media production enterprises to bring their recording and post-production needs to Northern

Illinois in lieu of Southern California, Canada, Europe, and other competing locations.

Our value proposition includes professional grade equipment, wide open spaces plus rolling hills and

fresh water lake scenery, access to multiple modes of transportation (four major, US metropolitan hubs),

reasonably-priced labor including college students from four nearby university towns, a wide variety of

lodging, meal and entertainment options for after-hour workers’ enjoyment, and easy access to health

care, emergency services, and a media/production supply chains and clients from nearby major cities.

The American Studio triangle of business and client prospects extends into five major business locations:

Greater Chicagoland, Milwaukee, Madison, Rockford, and the northern Illinois Chain of Lakes recreation

and tourism boarder towns. Services will include sound stages, production offices, post-production

suites, screening rooms, and production equipment rentals. The facility will include additional facilities

such as: Commissary, travel and transportation offices, a comprehensive gymnasium, both indoor and

outdoor water tanks, and ample offices spaces for pre-production and digital post-production facilities.

The total asking price for over 65 acres and 160,000+ sq. ft. of enclosed warehouse is currently $750,000.

Picture of the outside and inside spaces of the former Modine Manufacturing plant in Ringwood, Illinois

American Studios

Modine Manufacturing left the building in 2014, and the primary upgrade required is a new roof at a cost estimate of $1,250,000, and the installation of the remaining $4,750,000 of necessary soundstage costs. American Studios

Financial Projections for American Studios, Year One (1) thru Four (4) : (based on known Cinespace-Chicago projections available upon request)

American Studios Year 1

Income

Sales Income 2,363,093.25

Total Income 2,363,093.25

Gross Profit 2,363,093.25

Expense

Advertising and Promotion 100,000.00

Insurance Expense 28,000.00 Payroll Expenses 296,846.62

Rent Expense 32,500.00

Utilities 28,000.00

Total Expense 485,346.62

Net Income 1,877,746.63

American Studios Year 3 Income

Sales Income 4,363,093.25 Total Income 4,363,093.25 Gross Profit 4,363,093.25 Expense

Advertising and Promotion 100,000.00 Insurance Expense 28,000.00 Payroll Expenses 296,846.62 Rent Expense 32,500.00 Utilities 28,000.00 Total Expense 485,346.62 Net Income 3,877,746.63


Income



Gross Profit 3,363,093.25

Expense Advertising and Promotion 100,000.00 Insurance Expense 28,000.00 Payroll Expenses 296,846.62


Utilities 28,000.00


Net Income 2,877,746.63


Income



Gross Profit 5,363,093.25 Expense

Advertising and Promotion 100,000.00 Insurance Expense 28,000.00 Payroll Expenses 296,846.62


Utilities 28,000.00


Net Income 4,877,746.63 American Studios

SALES ESTIMATES (Year 1) American Studios

Memo Clr Amount Balance

Sales Income

Sound Stage - Daily Rental (IV) 3,000.00 3,000.00 Production Offices - Daily Rental (IV) 440.00 3,440.00 Red Camera Rental - Daily 800.00 4,240.00 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 220.00 4,460.00 Record music and shoot video - daily rate 1,843.00 6,303.00 Arri 24k-w Fresnel Tungston Kit Rental - Daily 3,000.00 9,303.00 Steadicam Zephyr Rental - Daily 160.00 9,463.00 Track Dolly Rental - Daily 80.00 9,543.00 Arri 24k-w Fresnel Tungston Kit Rental - Daily 3,000.00 12,543.00 Arri 24k-w Fresnel Tungston Kit Rental - Weekly 3,750.00 16,293.00 Lowel 3-light (Tungston) Kit - Daily Rental 60.00 16,353.00 Lowel 3-light (Tungston) Kit - Weekly Rental 75.00 16,428.00 Record music and shoot video - daily rate 1,843.00 18,271.00 Record music and shoot video - weekly rate 2,303.75 20,574.75 Production Offices - Weekly Rental (IV) 550.00 21,124.75 Red Camera Rental - Daily 800.00 21,924.75 Red Camera Rental - Weekly 1,000.00 22,924.75 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 220.00 23,144.75 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 275.00 23,419.75 Steadicam Zephyr Rental - Daily 160.00 23,579.75 Steadicam Zephyr Rental - Weekly 200.00 23,779.75 Sound Stage - Daily Rental (IV) 2,250.00 26,029.75 Sound Stage - Weekly Rental (IV) 3,750.00 29,779.75 Track Dolly Rental - Daily 80.00 29,859.75 Track Dolly Rental - Weekly 100.00 29,959.75 Arri 24k-w Fresnel Tungston Kit Rental - Daily 6,000.00 35,959.75 Arri 24k-w Fresnel Tungston Kit Rental - Weekly 7,500.00 43,459.75 Sound Stage - Weekly Rental (IV) 7,500.00 50,959.75 Sound Stage - Daily Rental (IV) 6,000.00 56,959.75 Lowel 3-light (Tungston) Kit - Daily Rental 120.00 57,079.75 Lowel 3-light (Tungston) Kit - Weekly Rental 150.00 57,229.75 Production Offices - Weekly Rental (IV) 1,100.00 58,329.75 Production Offices - Daily Rental (IV) 880.00 59,209.75 Record music and shoot video - daily rate 3,686.00 62,895.75 Record music and shoot video - weekly rate 4,607.50 67,503.25 Red Camera Rental - Daily 800.00 68,303.25 Red Camera Rental - Weekly 2,000.00 70,303.25 Steadicam Zephyr Rental - Daily 320.00 70,623.25 Steadicam Zephyr Rental - Weekly 400.00 71,023.25

American Studios

Track Dolly Rental - Daily 160.00 71,183.25

Track Dolly Rental - Weekly 200.00 71,383.25

Arri 24k-w Fresnel Tungston Kit Rental - Daily 5,250.00 76,633.25

Arri 24k-w Fresnel Tungston Kit Rental - Weekly 11,250.00 87,883.25

Lowel 3-light (Tungston) Kit - Daily Rental 120.00 88,003.25

Lowel 3-light (Tungston) Kit - Weekly Rental 150.00 88,153.25

Production Offices - Monthly Rental (IV) 2,200.00 90,353.25

Sound Stage - Monthly Rental (IV) 15,000.00 105,353.25

Red Camera Rental - Daily 2,800.00 108,153.25Red Camera - Complete production package - Monthly 22,100.00 130,253.25Red Camera - Complete production Package -

Daily 15,470.00 145,723.25Red Camera - Complete production package - Weekly 22,100.00 167,823.25

4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -M 20,100.00 187,923.25Boom Pole, Shotgun Mic, Porta 5ch Mixer - Monthly 1,100.00 189,023.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 770.00 189,793.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 1,100.00 190,893.25

Record music and shoot video - monthly rate 9,215.00 200,108.25

Arri 24k-w Fresnel Tungston Kit Rental - Monthly 135,000.00 335,108.25

Lowel 3-light (Tungston) Kit- Monthly Rental 2,700.00 337,808.25



4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -M 20,100.00 369,323.25


Red Camera Rental - Daily 4,000.00 376,023.25

Red Camera Rental - Weekly 12,000.00 388,023.25

Red Camera Rental - Monthly 8,000.00 396,023.25Boom Pole, Shotgun Mic, Porta 5ch Mixer -

Monthly 9,900.00 405,923.25

Steadicam Zephyr Rental - Monthly 7,200.00 413,123.25

Track Dolly System - Monthly 3,600.00 416,723.25








Red Camera Rental - Monthly 12,000.00 605,938.25Red Camera - Complete production package - Monthly 22,100.00 628,038.25Boom Pole, Shotgun Mic, Porta 5ch Mixer - Monthly 9,900.00 637,938.25


Steadicam Zephyr Rental - Monthly 7,200.00 660,138.25 American Studios

Track Dolly System - Monthly 3,600.00 663,738.25




Lowel 3-light (Tungston) Kit - Daily Rental 900.00 784,638.25

Lowel 3-light (Tungston) Kit - Weekly Rental 900.00 785,538.25

Lowel 3-light (Tungston) Kit- Monthly Rental 600.00 786,138.25






Red Camera Rental - Monthly 8,000.00 849,653.25Red Camera - Complete production package - Monthly 22,100.00 871,753.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 3,300.00 875,053.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 3,300.00 878,353.25Boom Pole, Shotgun Mic, Porta 5ch Mixer - Monthly 2,200.00 880,553.25


Steadicam Zephyr Rental - Daily 2,400.00 897,953.25

Steadicam Zephyr Rental - Weekly 2,400.00 900,353.25

Steadicam Zephyr Rental - Monthly 1,600.00 901,953.25

Track Dolly Rental - Daily 1,200.00 903,153.25

Track Dolly Rental - Weekly 1,200.00 904,353.25

Track Dolly System - Monthly 800.00 905,153.25



Arri 24k-w Fresnel Tungston Kit Rental - Monthly 30,000.00 1,025,153.25

Lowel 3-light (Tungston) Kit - Daily Rental 900.00 1,026,053.25

Lowel 3-light (Tungston) Kit - Weekly Rental 900.00 1,026,953.25

Lowel 3-light (Tungston) Kit- Monthly Rental 600.00 1,027,553.25

Record music and shoot video - weekly rate 9,215.00 1,036,768.25

Production Offices - Weekly Rental (IV) 2,200.00 1,038,968.25

Sound Stage - Weekly Rental (IV) 15,000.00 1,053,968.25

4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -W 20,100.00 1,074,068.25Red Camera - Complete production package - Weekly 22,100.00 1,096,168.25

Red Camera Rental - Daily 12,000.00 1,108,168.25

Red Camera Rental - Weekly 12,000.00 1,120,168.25

Red Camera Rental - Monthly 8,000.00 1,128,168.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 3,300.00 1,131,468.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 3,300.00 1,134,768.25Boom Pole, Shotgun Mic, Porta 5ch Mixer - Monthly 2,200.00 1,136,968.25

Steadicam Zephyr Rental - Daily 2,400.00 1,139,368.25

American Studios

Steadicam Zephyr Rental - Weekly 2,400.00 1,141,768.25

Steadicam Zephyr Rental - Monthly 1,600.00 1,143,368.25

Track Dolly Rental - Daily 1,200.00 1,144,568.25

Track Dolly Rental - Weekly 1,200.00 1,145,768.25

Track Dolly System - Monthly 800.00 1,146,568.25

Arri 24k-w Fresnel Tungston Kit Rental - Daily 45,000.00 1,191,568.25

Arri 24k-w Fresnel Tungston Kit Rental - Weekly 45,000.00 1,236,568.25





Record music and shoot video - monthly rate 9,215.00 1,278,183.25

Production Offices - Monthly Rental (IV) 2,200.00 1,280,383.25

Sound Stage - Monthly Rental (IV) 15,000.00 1,295,383.25

4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -M 20,100.00 1,315,483.25



Red Camera Rental - Monthly 8,000.00 1,347,483.25Red Camera - Complete production package - Monthly 22,100.00 1,369,583.25


Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 3,300.00 1,376,183.25Boom Pole, Shotgun Mic, Porta 5ch Mixer -

Monthly 2,200.00 1,378,383.25




















American Studios







































Sound Stage - Weekly Rental (IV) 3,750.00 2,028,778.25

American Studios

Red Camera Rental - Daily 12,000.00 2,040,778.25 Red Camera Rental - Weekly 12,000.00 2,052,778.25

Red Camera Rental - Monthly 8,000.00 2,060,778.25 Red Camera - Complete production package - Monthly 22,100.00 2,082,878.25 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 3,300.00 2,086,178.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 3,300.00 2,089,478.25 Boom Pole, Shotgun Mic, Porta 5ch Mixer -

Monthly 2,200.00 2,091,678.25

Steadicam Zephyr Rental - Daily 2,400.00 2,094,078.25 Steadicam Zephyr Rental - Weekly 2,400.00 2,096,478.25


Track Dolly Rental - Daily 1,200.00 2,099,278.25 Track Dolly Rental - Weekly 1,200.00 2,100,478.25

Track Dolly System - Monthly 800.00 2,101,278.25 4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -M 20,100.00 2,121,378.25

Arri 24k-w Fresnel Tungston Kit Rental - Daily 45,000.00 2,166,378.25 Arri 24k-w Fresnel Tungston Kit Rental - Weekly 45,000.00 2,211,378.25

Arri 24k-w Fresnel Tungston Kit Rental - Monthly 30,000.00 2,241,378.25 Lowel 3-light (Tungston) Kit - Daily Rental 900.00 2,242,278.25

Lowel 3-light (Tungston) Kit - Weekly Rental 900.00 2,243,178.25 Lowel 3-light (Tungston) Kit- Monthly Rental 900.00 2,244,078.25

Record music and shoot video - monthly rate 9,215.00 2,253,293.25 Production Offices - Monthly Rental (IV) 2,200.00 2,255,493.25

4 grips, 2 PA's, 1 Camera Operator, DP, 1 actor -M 20,100.00 2,275,593.25 Sound Stage - Monthly Rental (IV) 15,000.00 2,290,593.25

Boom Pole, Shotgun Mic, Porta 5ch Mixer - Daily 3,300.00 2,293,893.25 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Weekly 3,300.00 2,297,193.25 Boom Pole, Shotgun Mic, Porta 5ch Mixer - Monthly 2,200.00 2,299,393.25

Steadicam Zephyr Rental - Daily 2,400.00 2,301,793.25 Steadicam Zephyr Rental - Weekly 2,400.00 2,304,193.25


Track Dolly Rental - Daily 1,200.00 2,306,993.25 Track Dolly Rental - Weekly 1,200.00 2,308,193.25

Track Dolly System - Monthly 800.00 2,308,993.25 Red Camera Rental - Daily 12,000.00 2,320,993.25

Red Camera Rental - Weekly 12,000.00 2,332,993.25 Red Camera Rental - Monthly 8,000.00 2,340,993.25 Red Camera - Complete production package - Monthly 22,100.00 2,363,093.25

Total Sales Income 2,363,093.25 2,363,093.25

Advertising and Promotion

-50,000.00 -50,000.00 -50,000.00 -100,000.00

American Studios

Total Advertising and Promotion -100,000.00 -100,000.00

Insurance Expense

-12,000.00 -12,000.00 -2,000.00 -14,000.00 -12,000.00 -26,000.00 -2,000.00 -28,000.00 Total Insurance Expense -28,000.00 -28,000.00

Payroll Expenses

-21,203.33 -21,203.33 -21,203.33 -42,406.66 -21,203.33 -63,609.99 -21,203.33 -84,813.32 -21,203.33 -106,016.65 -21,203.33 -127,219.98 -21,203.33 -148,423.31 -21,203.33 -169,626.64 -21,203.33 -190,829.97 -21,203.33 -212,033.30 -21,203.33 -233,236.63 -21,203.33 -254,439.96 -21,203.33 -275,643.29 -21,203.33 -296,846.62

Total Payroll Expenses -296,846.62 -296,846.62

Rent Expense

Deposit for Ringwood Studios Location -2,500.00 -2,500.00 December Rent -2,500.00 -5,000.00

-2,500.00 -7,500.00 -2,500.00 -10,000.00 -2,500.00 -12,500.00 -2,500.00 -15,000.00 -2,500.00 -17,500.00 -2,500.00 -20,000.00 -2,500.00 -22,500.00 -2,500.00 -25,000.00 -2,500.00 -27,500.00 -2,500.00 -30,000.00 -2,500.00 -32,500.00

Total Rent Expense -32,500.00 -32,500.00

American Studios

Utilities

-2,000.00 -2,000.00 -2,000.00 -4,000.00 -2,000.00 -6,000.00 -2,000.00 -8,000.00 -2,000.00 -10,000.00 -2,000.00 -12,000.00 -2,000.00 -14,000.00 -2,000.00 -16,000.00 -2,000.00 -18,000.00 -2,000.00 -20,000.00 -2,000.00 -22,000.00 -2,000.00 -24,000.00 -2,000.00 -26,000.00 -2,000.00 -28,000.00

Total Utilities -28,000.00 -28,000.00

TOTAL 1,877,746.63 1,877,746.63

American Studios

PRO FORMA - WORSE CASE SCENARIO

From May 2018 to April 30 2019

American Studios

Sales Annual

Lease Revenue $792,000

Utilities revenue $0

Telecommunications $0

Client Recoveries $0

Parking $0

Total Sales $792,000

Cost of Goods Sold $0

Gross Profit $792,000

Other Income $0

Gross Income $792,000

Expenses

Direct Costs

Electrical $0


Client Expenses $0

Total Direct Expenses $0

Facility Expenses

Employee costs $236,400

Fees $18,000

General & Administrative $30,000

Business Development $30,000

Operating costs $32,400

Utilities / Janitorial $21,600

Insurance $15,600

Property taxes $18,000

Financial Charges $1,800

Total Facility Expenses $403,800

Land Lease $150,000

Interest on Debt Long term $0

Depreciation $0

Operating Expenses $553,800

Net Income Before Tax $238,200

Income Taxes $0

Net Income (Loss) $238,200

American Studios

From May 2017 to April 30 2018

American Studios

Sales Annual

Lease Revenue $594,000

Utilities revenue $0


Client Recoveries $0

Parking $0

Total Sales $594,000

Cost of Goods Sold $0

Gross Profit $594,000

Other Income $0

Gross Income $594,000

Expenses

Direct Costs

Electrical $0


Client Expenses $0

Total Direct Expenses $0

Facility Expenses

Employee costs $236,400

Fees $18,000

General & Administrative $30,000

Business Development $30,000

Operating costs $32,400

Utilities / Janitorial $21,600

Insurance $15,600

Property taxes $18,000

Financial Charges $1,800

Total Facility Expenses $403,800

Land Lease $150,000

Interest on Debt Long term $0

Depreciation $0

Operating Expenses $553,800

Net Income Before Tax $40,200

Income Taxes $0

Net Income (Loss) $40,200

American Studios

COMPETITION – OTHER STUDIOS (listed in Variety’s “411” for Illinois)

Big Deahl Productions Stages, Chicago, IL 60642 (312) 573-0733 Chicago Studio City Stages, Chicago, IL 60644 (773) 261-3400 Cinespace Chicago Film Studios Stages, Chicago, IL 60608 (773) 521-8000 Moonlight Studios Stages, Chicago, IL 60642 (312) 618-5154 OnAirr Productions, LLC, Chicago, IL 60611 (312) 951-0200 Product Productions Stages, Chicago, IL 60622 (312) 421-9030

Documents

Ringwood Studios Business Plan BASIC · will be run like Cinespace, Inc. in Chicago, Illinois, or like Pinewood Studios in Shepperton, UK or Atlanta, GA. American Studios is being