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Axanar Financial Update – September 2018

One era in Axanar is finally coming to an end as another is starting up.  The transition from Los Angeles to Atlanta is coming to an end as we gear up for Axacon 2018 and the beginning of production on the next two episodes.  In addition, we are working hard on finishing the bridge set at OWC Studios and gearing up for the 2018-2019 high school film production program.

Here is where Axanar is financially as we approach Q4 2018.

Taxes

When we were in Los Angeles we had a small firm that was handling Axanar taxes, but when we moved to Atlanta we met the founder of Frazier and Deeter, one of Atlanta’s biggest and most prestigious accounting firms.  He had read about us in the Atlanta Business Chronicle. He came to our studio, liked what he saw and brought us in as a client.  Obviously job one was to make sure that our four years of Axanar taxes were properly handled.   While Axanar Productions has zero taxes due, and in fact has a loss due to the over $ 150,000 of money I put into it over and beyond the $ 1.2M in donations, the taxes needed to be properly handled.  Frazier and Deeter caters to film productions here in Atlanta and actually was one of the early advisors to Pinewood Studios. So they are the perfect firm to handle this.

As I have said many times, there are two sets of financials, donor financials and corporate financials, all of which has been reviewed by accounting, legal and industry professionals, key donors and outsiders such as Jonathan Lane of Fan Film Factor.  The donor financials account for every penny of donor money, (none of which went to myself in any way) and are what we use to show donors how their money was spent.  Then there are the overall Axanar Productions, Inc. financials, which take into account the over $ 150,000 invested by myself into Axanar, and legitimate business expenses (such as auto and entertainment) that donors didn’t pay for.  That is what the taxes are based on, as it represents all money taken in and spent, and thus shows a loss for tax purposes.

2017 Financials

There were $ 35,103.78 in Axanar expenses in 2017, or which approximately $26,000 was legal expenses left over from the lawsuit.  These were the only legal expenses from the CBS/Paramount lawsuit, as we received over $1M in free legal services from Winston & Strawn.  However, our pro-bono agreement was that we paid all actual expenses which consisted of deposition and expert witness costs.  I personally paid those costs as well as the other costs in 2017 in order to keep the studio and operation going.

The first three years of Axanar financials. The big books house all the receipts, the small ones are the bank statements and financial summaries.

501c3 Non-Profit

In California we had started the process of becoming a 501c3 federal non-profit, hiring a firm to do the paperwork for us, which was finished.  We even changed from a for-profit corporation to a not-for-profit California corporation in anticipation of the change in status.  But moving to Georgia meant we would have to re-do that paperwork, something we have not done yet as we have not had the need to re-incorporate the production.

We are working with our attorneys here in Georgia as well as with our accountants to determine the best way to move forward.   We are thinking making OWC Studios a 501c3 may be the best solution as we have an actual education program we are working on.  We don’t want to just file for a 501c3 for a tax break and not do anything charitable.

So that is where we are with our finances at the moment.  Stay tuned as more and more good things are happening and we will be sharing everything with you all here and on our YouTube channel!

Alec

 

Join the discussion 8 Comments

  • Allen says:

    Alec,

    Thank you for the information. Please remember to let me and everyone else know when the funding drive begins for the two episodes and the 60 minutes of deleted scenes! 😉

    • Alec Peters says:

      Not sure where you got 60 minutes of deleted scenes. There will be 60 minutes of additional footage and Behind the Scenes features, which I think is what you mean.

    • Kenny Smith says:

      I want you to do your best to keep going that you are doing. As for me Kenny Smith from Rancho Cordova CA i am going after cbs/Viacom/ paramount for don’t have no rights to take star trek away drom all of the star trek fans and fan films and fan clubs to keep star trek going after cbs/ Viacom/ paramount to fall down into the dumps from droping star trek from there company. They just don’t know what they have lost from us star trek fans.

  • Harold says:

    When will the final donor fulfillment shipments to be made? I have also noticed the axanar digital no longer works as well as many of the links.

    The last entry on the donor update was March 2018. Anything new?

    • Alec Peters says:

      We are working on Ares Digital now so that we can then fulfill all the perks after we release Axanar next year.

  • Bryan says:

    Greatings,

    Please know I mean this in all civility. Honestly, I want to see Axanar to succeed. This is a lengthy post because it is full of introductory disclaimers. Please forgive that, but I have noticed a pattern against those who ask pointed questions, and I hope to anticipate those objections head on. With that in mind, here goes:

    1. Am I a Donor? No.
    2. So why do I care? Because Prelude to Axanar kicked ass.
    And while I was/am not in a financial position to assist with fund raising, I spread the word on and my friends donated what they could in a “Just shut up and take my money” appraoch based on my promotions of your film, and being struck visually by the film.
    3. If I loved “Prelude to Axanar,” why do I also belong to facebook groups denigrating Axanar as well as Axanar supporting groups? I fell in love with Axanar, and was genuinely upset, and after the lawsuit, I was pissed. Later, after taking a law course (totally not a lawyer by training by the way) I found the case to be interesting from a legal perspective and wanted to encompass multiple views of the truth as I formulate my own. If we’re quoting star trek, well “The first Duty” does nicely, if we keep it more personal, George Fox’s quote “The truth is as Holy as the Book to me.”
    speaks volumes.

    Last, but not least. The soap opera on both sides isn’t as entertaining as Axanar, but it’s pretty close.

    With all that out of the way, I must say lately I LEAN pro-axanar, or at least towards believing there was no malicious or deceptive intent on your part. Maybe some niavete or causalness regarding the finaces and some legal matters, but nothing malicious. The finances are a sticking point with me however. As were so.e PR faux pas (Passion is a double edged sword, as an artist myself I get that, and realize how hard it is to produce something that is constantly critiqued, questioned, etc.)

    All that being said,
    I do have trouble reconciling the idea that Jonathan Lane is an outsider. His own testimony at trial indicated that he was “a writer for Axanar.” I don’t think you would lie, but I also don’t think Jonathan Lane, would commit perjury. Can you clarify?
    I also am curious about his accounting qualifications. Again, “no Dog in the fight,” just curious and trying to figure things out.

    Respectfully Submitted,

    Bryan

    • Alec Peters says:

      Thank you for your reply.

      If you have issues with the finances, you should read up about them on our site. This is not the only article written about them.

      Jonathan Lane “writes” the Fan Film Friday blog articles on our site. So he is a contributor. He isn’t part of the production team, doesn’t write for the films, and doesn’t get paid anything, so yes, he is an outsider. A friend? yes of course. But he is also a serious blogger (unlike the hack who is constantly attacking us) who asks very important questions.

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