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Method of Financing

Meth Crabs Movie, LLC is seeking $300K in equity capital (in units of $25,000) to finance the production budget of the motion picture Meth Crabs. The use of private equity funding ensures that the advantages of making an independent film can be fully realized. Creative control centered in the hands of the director ensures a film free from the divisive influence of too many voices. Low overhead and extreme care in formulating the budget yield a higher potential return for investors. Greater creative control ultimately yields a higher potential return as well.

Why 300k ?

Investor Repayment



With an ultra low budget of 500 dollars we were able to plan, shoot and execute our concept trailer.  We were smart with our spending, and kept the costs low.  This is how we plan on going forward with this feature.  We want practical low cost action and gore, great storytelling and comedic nods to other films.  175k for the production itself and 50k to hire day player B-List talent to bolster the films star power and garner even more distribution possibilities.  With the remaining 75k, we will continue to push our grassroots marketing campaign that has already started as well as advertise and create private screenings to add to the buzz.

Money remitted to the LLC will first be returned to investors until their initial investment plus a 20% percentage of return (a so-called “priority return”) is recouped. Payments will be proportionately distributed to investors according to their individual investment size and without preference to all investors simultaneously. Any remaining profits will be split evenly between Meth Crabs Movie, LLC and investors. Meth Crabs Movie, LLC may use a portion of its profits (after the split) to pay for profit participations agreed upon between it and various talent or crew, such as actors, composers, or producers.  Distributors and foreign sales agents typically produce accounting statements on a quarterly, or sometimes monthly, basis during the beginning of a distribution term and change to less frequent reports one or two years later. Reports and any concomitant revenues are often remitted to a producer’s rep or producer within 30-45 days of their monthly, quarterly, semi-annual, or annual due date. Meth Crabs Movie, LLC will deliver accounting statements and appropriate payments to investors within 30 days of the receipt of funds from a distributor, sales agent, or producer’s rep. Producer’s reps of successful films generally remit funds to producers within one to two weeks of their receipt from another party.

Residuals are payments made to union talent (actors, writers, etc.) out of revenues generated from post-theatrical exploitation of a movie. The producer is responsible for ensuring that a distributor or foreign sales agent makes these payments by including an assumption agreement in the language of any distribution or foreign sales agent deal. While successful pictures may not have substantial problems with distributors or foreign sales agents accepting and executing such agreements, pictures that are not highly sought after for distribution may face problems with distributors or foreign sales agents accepting responsibility for and paying residuals. In such cases it may be that monies returned from distributors or foreign sales agents for ancillary markets are first used to pay residuals and then used to pay investors.

New York State generously offers a 30% tax credit for all below the line expense on film productions.

Legislation enacted in April 2013 extended funding for the NYS Film Production Tax Credit Program. The new funding allocates $420 million per year for calendar year 2015-2019 inclusive. Of the $420M, the set-aside for the post-production credit will be increased from the current $7M to $25M per year beginning in 2015. For more detailed information about the Program go to

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