Independent Film Development Corp. (OTC: IFLM)

Independent Film Development Corp. (OTC: IFLM)

posted in: Profile Updates by On March 7th, 2014

Independent Film Development Corporation (OTC: IFLM)

COMPANY OVERVIEW

Based in Los Angeles California, Independent Film Development Corporation has developed a business plan of operations of developing genre themed studio style resorts, film sales and distribution, film development, and an Internet social networking and resourcing website, for independent film and television development, production, and distribution.

FILM DEVELOPMENT AND PRODUCTION

IFLM works in three main areas of film production and finance: doing the production in-house, co-financing the project, and acquiring product in the development stage. These revenue streams coupled with film distribution makes up our business model. There are three entry points for IFLM in the project cycle: the inception stage, the co-financing stage, and the early development stage.

The Inception Stage

For certain projects, IFLM takes total control of a project from its very inception. Working with fellow professionals in the independent film community, we take charge of all aspects of the financing, production and distribution. Everything about the film – from its initial concept to its final flickering image on the screen – is managed in-house, insuring both maximum artistic control and maximum return on investment.

The Co-Financing Stage

In a co-financing scenario, IFLM looks for films that are already financed at 50% or more (the optimal is about 75%). This positions IFLM to be “first in first out” with regards to financial exposure. Co-financing is a lucrative and financially viable process.

IFLM reviews the particulars of any co-financing deal to make sure it meets with our requirements of:

  • A good script;
  • A solid director;
  • Actors of some prominence.

For the initial short term investment, IFLM expects an return of investment of approximately 10% to a 30%. Once IFLM and all other investors have recouped their initial investment, any additional income from the film would be split on a percentage basis based on the amount of the individual investor’s original investment.

In addition, IFLM receives presentation credits in the opening titles – normally in the form of one or two executive producer credits. This pushes the IFLM brand name both domestically and globally. IFLM is constantly on the lookout for these types of co-financing projects.

The Early Development Stage

If IFLM cannot get to a project at the co-financing stage, the next best thing is acquiring original product at an early stage. An early stage project typically has a finished script and one or more of the following:

  • A director;
  • A producer;
  • Actors of some prominence;
  • Some amount of equity, usually in the range of 10% to 25%;
  • Projects that have some form of distribution (rarely found at this stage);
  • Projects that have some studio interest (rarely found at this stage).

Acquisitions are a bit of a numbers game, but this is helped with a fair amount of market research and industry savvy. IFLM seeks out these types of projects, then options them for a period of one to three years with as little out of pocket money as possible – sometimes without any cash up front at all.

IFLM then develops the project to the point of funding. This includes script re-writes, attaching actors etc. We usually work with any personnel already in place. This allows IFLM to leverage multiple projects concurrently while encouraging independent filmmakers to do what they do best. Once the project reaching critical mass, IFLM brings resources to the table to complete financing and line up distribution.

DISTRIBUTION

Regarding independent films, there are two salient facts:

  1. Each year, independent filmmakers produce over 15,000 films;
  2. Only a small fraction of these ever secure distribution.

At the same time, there has been a proliferation of theatrical and home entertainment outlets. These include:

  • Cable / satellite
  • DVD
  • Video-on-demand
  • Streaming video like Netflix and Hulu
  • Pay & free cable /satellite – HBO, Showtime, AMC
  • Broadcast television
  • New media including internet and pod-casting
  • Developing overseas markets like China

The big issue is that the market connecting the filmmakers and the buyers of content is controlled by a few players in the industry. Companies such as New Line Cinema, LionsGate, and The Weinstein Company, all began selling and distributing low-budget independent films before being acquired by major studios or going public. They now focus on larger independent films. Since their focus has shifted, it has created a perfect storm for IFLM with smaller budgeted films. We help the Independent filmmaker in three ways:

  1. As a sales agent for limited or full theatrical / streaming video / DVD release
  2. Through acquisition and marketing of the project
  3. Through a negative pick-up scenario

THE IFLM PORTFOLIO

IFLM owns the world-wide distribution rights to a number of eclectic feature films as well as episodic television. This balanced approach allows IFLM a “long tail” strategy of selling less of more while avoiding the costly business of chasing (or more correctly “hoping to create”) the next blockbuster.  (see more)

   

LEADERSHIP

Chief Executive Officer David Garland is a proven leader with cross-industry experience from aviation to technology.  A Wharton MBA, he has nearly twenty years’ experience in strategic business transformation, operational re-engineering and financial restructuring.  He has successfully launched multiple businesses and managed the transformation of Fortune 500 firms.

Mr. Garland has spent the last decade of his career in an advisory capacity.  Starting with Deloitte Consulting in New York and Tokyo, he worked with AIG from 2008 until 2011 to restructure their multi-billion dollar insurance operations following the 2008 financial crisis.

Mr. Garland’s engagements in corporate transformation also include IBM (technology services), Epoch Investment Partners (asset management), BNX (health and beauty retail), UBL (retail banking) and J.H. Cohn (real estate).

In 2010 Mr. Garland launched a volunteer program to teach business skills to developing country entrepreneurs.   He is a pilot and a runner, having completed the NYC Marathon to raise money for Paul Newman’s camps for disabled children.

IFLM Chief Operating Officer Jeff Ritchie was born and raised in Kansas. At the age of 21, he joined the Topeka Police Department and for the next seven and half years he worked on everything from undercover narcotics and criminal intelligence to a federal drug enforcement task force. These events have become the inspiration for Ritchie’s realistic take on his characters and the world that surrounds them in his scripts.

Mr.Ritchie undertook a dramatic career change, when he left law enforcement and moved to California in the 90’s to pursue his lifelong passion of film making.  Working hard, Mr. Ritchie moved up quickly in the film industry and was soon producing and writing features films and national commercial spots.

Mr. Ritchie wrote and produced COOKERS, a limited theatrical released film that was critically acclaimed, playing in festivals around the world; winning Best Film at LA’s Screamfest, Best Film at the Milan Festival and Best Screenplay at the Calgary International Horror Film Festival, along with numerous other awards. Ritchie also wrote and produced AMERICAN CRIME, a film made for five million dollars. AMERICAN CRIME was picked up by Lionsgate for U.S. distribution and had theatrical releases in many countries throughout the world including the UK and Spain.

C. David Pugh serves as the Chief Communications Officer for Independent Film Development Corporation. In his current position, he is responsible for the development and deployment of its various internet properties. Prior to joining IFLM, Mr. Pugh founded The Card Logic Group in 2002, a boutique marketing firm specializing in customer loyalty and retention programs. With hundreds of successful deployment throughout the US and Canada, Card Logic Group is a leader in multi-channel rewards programs in the motorsports and hospitality markets. Mr. Pugh was instrumental in the development and deployment of PRISM™, The Card Logic Group’s proprietary loyalty marketing platform. Prior to founding Card Logic Group, Mr. Pugh Vice President of Client Development at Praxell, one of the first companies that enabled these gift card transactions to be processed in real-time either at the point of sale or on the web.

CFO Rachel Boulds joined IFLM in February of 2012 and handles all things financial for the Company. From August 2009 to the present, Ms. Boulds has been engaged in her sole accounting practice, providing all aspects of consulting and accounting services to clients, including the preparation of full disclosure financial statements for public companies to comply with GAAP and SEC requirements. From August 2004 through July 2009, she was employed as an Audit Senior for HJ & Associates, LLC, where she performed audits and reviews for public and private companies including the preparation of financial statements to comply with GAAP and SEC requirements. From 2003 through 2004, Ms. Boulds was employed as an Audit Senior for Mohler, Nixon and Williams. From September 2001 through July 2003, Ms. Boulds worked as an ABAS Associate for PriceWaterhouseCoopers. From April 2000 through February 2001, she was employed as an eCommerce Accountant for the Walt Disney Group’s GO.com.  Ms. Boulds holds a B.S. in Accounting from San Jose University, 2001 and is licensed as a CPA in the state of Utah.

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