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Medient Announces 2013 Year End Results and Chairman's Letter to the Shareholders(March 31, 2014)
EFFINGHAM COUNTY, GA -- (Marketwired) -- 03/31/14 -- Medient Studios (OTCQB: MDNT) today announced its financial results for the fiscal year ended December 31, 2013, which are available in the Company's Form 10K report filed today with the Securities and Exchange Commission.
For the year ended December 31, 2013, the Company earned revenues of $2,056,307 versus $3,267,825 for the preceding fiscal year. The reduction in revenue reflects the Company's focus on establishing the Studioplex and finalizing the legal contracts to secure the property. The gross margin was $975,147 in 2013 compared with $452,218 in 2012. The Company's losses increased from $117,630 to $1,366,629 primarily due to increased operational expenses associated with establishing the Studioplex. Medient's assets more than doubled from $20,888,692 to $48,951,444 in 2013. Shareholders' equity also increased by more than $3,000,000 to $16,667,630.
The Chairman of the Board, Manu Kumaran, also wrote the following letter to the Company's stakeholders:
To those who believe...
"Ring out, wild bells, to the wild sky,
The flying cloud, the frosty light
The year is dying in the night;
Ring out, wild bells, and let him die.
Ring out the old, ring in the new..."
Alfred Lord Tennyson wrote those words in 1850 to celebrate the passing of a year. Today is Gudi Padwa, the New Year in many parts of India and today we declare that there is light and freedom from the endemic inefficiencies that plague the film production process. Over the last 16 months Julio Saldarriaga and his team have been in active conversations with a host of technology companies to design a new work flow for producing movies and games. We asked ourselves one question -- surely we don't have to be captive to work flow systems designed in the 1920s? The world has changed in our lifetime and yet the film industry still makes a human being to carry a 30 pound light up 60 feet through a metal staircase. In the very likely scenario that he needs to use the bathroom then the entire unit could be waiting 20 minutes or more costing several hundreds of thousands of dollars!
It is imperative, given the fact that capture, finishing and output of films are all on digital platforms, to throw away the outdated workflows of today and embrace a sophisticated and redesigned workflow that utilises the very latest developments in the technology arena. Films like Gravity have shown how robotics can enhance the director's ability to create a world that will elicit gasps of admiration from the audience. While several of the individual processes draw on the very latest technologies the clunky workflow ensures that the final product loses the significant efficiencies that are generated.
Why can't these there be a synthesis of these various elements in a wholly new work flow that will liberate our story tellers from the constraints of the old while minimizing the production time and thereby optimizing costs? Why didn't the aircraft manufacturer include basic technology that exists in motor cars today, so that black boxes can be found easier and the friends and relatives of passengers on MH 370 wouldn't have endured the agony of the past 23 days. Why do we continue to ignore the crying need for comprehensive reform in an industry that continues to lose money every day?
The answers are in the questions. Human beings are creatures of comfort and habit and nothing except the most extreme pain can force change. But change we must and Medient will be at the vanguard of creating a smarter way of making movies and games.
2013 was the year where we set down roots in Effingham County, Georgia. Our home is a beautiful 1560 acres of woodland with a pretty lake in the center of it all. Inspired by the beauty of the land and the requirements of our unique plan our architect Shaleen Sharma has designed a spectacular vision -- a mini township that will unleash the much needed change in a rigid and custom bound industry.
Construction will commence this year and we will have the first set of sound stages functional by the end of the year. Our partner in the construction of the Studioplex is Shore Development and Construction, LLC and its President Jeremy Blackburn shares a lot of our evangelical zeal and they will bring green, sustainable and yet robust and cost efficient methods of construction to the Studioplex. Graham Bradstreet and his team are working on sourcing various additional government incentives to further reduce the net cost of construction to us.
Our development team, led by Pankaj Kapoor have read over 400 scripts in the past year and have found the few great ones that we will move into packaging and greenlight this year. Yogesh Ishwar and his team are working on bringing in Indian films to shoot in Georgia by providing production services with Medient managing their tax credits.
Mahatma Gandhi wanted us to be the change that we seek in the world and true to that spirit we are implementing a radical new management structure in Medient. All internal designations and hierarchy have been abolished. Our overall goals have been broken down to "tasks" and "micro tasks" and "task teams" have been formed to achieve those tasks which are led by people with that specific skill set rather than traditional seniority. Megan Murphy and her team are responsible for the implementation of the "Manifesto" and it is expected that by the end of the year we will be able to align compensation with performance on a real basis.
The induction of Charles Koppelman to our Board is a seminal moment in our history. Charles is committed to helping the company achieve its targets especially in our fund raising.
We have continued to reduce our debt and increase shareholder's equity as we gear up for the monumental tasks that we have set out to achieve and Jake Shapiro and his team have worked tirelessly to keep the company moving forward.
While several important goals were reached in 2013, our share price took a beating and our market value no longer reflects the actual current real value or the immense potential of the future. Clearly we have failed to communicate our potential or the strength of our team to the investment community. Redressing this and returning the company to a share price that is reflective of our real value is one of our key immediate priorities. In this context I want to address one issue that has repeatedly come in random conversations (Oh! how I love twitter!) with several of our shareholders -- dilution. I submit to you -- the owners of this company, that every dollar that is being raised is employed to make the company stronger. No one is buying houses or Ferraris with your money. By cleaning up Yellow we have ensured that almost all of the revenue from that brilliant movie will come in to the company and will pay for SG&A and for more movies. We also need to raise significant amounts of capital to build the Studioplex and to produce other films. We are fully cognizant of our obligations to the owners of the company but please recognize the fact that this is not a "two men, a wild idea and a website" company. I am personally in this with each one of you and believe with all of my heart that my shares will be worth many times the $0.064 that I paid for them.
It is my belief that we are on the verge of a significant breakthrough and I promise you that 28 people in five different cities in four countries are giving it their all to make the dream come true.
On their behalf I thank all of you for your continued support and belief.
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