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CBS/Paramount sues to stop Axanar

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You would need the type of audit the state board of equalization preforms. If LFIM wants to account for some $360,000 spent on the studio over 2 years, the board can also question the landlord, who better come up with the same number accounted for on their tax returns. Otherwise all you have is the LFIM's numbers.
I forget what they were but I did look up the building Axanar "rented" it was a ton of money for a fan film but it was also easy to assume he rented the whole building which may or may not have been the case.
 
Me? Well, no, I'm not on FB. Haven't been for half a dozen years.

(I'll go back now and finish reading your post. :lol: )

EDIT: Ah. Got it. Maybe you're thinking of my post here? In this thread? In that post I did say that for the figures I was using right then I was not including the 400K & 150K.

Yes. A lot have people have been kicking it around. I'd like to the see the next cycle of hard questions take shape sometime soon, rather than have the whole matter steamrollered by some reboot "Project Small Profits" document.

Axanar went into court kicking and screaming to try to hide their financials.

In this regard its very notable that they claim "everything they have done has been according to industry standards". This might be a black hole of irony. Not only does it suggest they are operating per professional profit making standards, but it draws comparison to the fact that blockbusters are routinely accounted for so as to not show a tax profit. If THIS is what Axanar means, pressing them on where the money went should be very interesting.
 
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You would need the type of audit the state board of equalization preforms. If LFIM wants to account for some $360,000 spent on the studio over 2 years, the board can also question the landlord, who better come up with the same number accounted for on their tax returns. Otherwise all you have is the LFIM's numbers.
I forget what they were but I did look up the building Axanar "rented" it was a ton of money for a fan film but it was also easy to assume he rented the whole building which may or may not have been the case.

Interesting. I don't know if anyone outside the authorities or a legal plaintiff has the authority or right to get at details like this, but its good information for future litigants.
 
How do we do this?

How do we, or maybe just how can I do this: "But there won't be clarity until the discussion moves on from just theorizing about bits of the cashflow, to tracing the cashflows from donation to final current status through all the uses, in a comprehensible high level statement."
The defendant will never release independently audited books, ever. It's too "embarrassing" for him. A million and a half dollars of Trek fan money is just gone.
 
I can imagine the dialog . . .

(internal) Look at all this money coming in! I am Gene Roddenberry reincarnated! I will remake Star Trek in my image, and nothing can stop me!

(external) We have enough money to make Axanar and build a studio and be a major force in Hollywood! Come to me, my precious [REDACTED] and we will rule this industry!

(internal) This one will do for now, and when I get tired of her I'll keep her on the payroll and find a new better blonde to share my empire.

(external) [REDACTED], you are my second in command, and we will take Star Trek from CBS and make it our own!

(internal) He'll do for now, but when he gets in the way I'll toss him aside like a used sushi tray.

(external) We're operating as a non-profit! We'll make the movie and there will be no money left! I'm trained as an attorney!

(internal) The credit cards are coming in, right on schedule. Where do I want to go today? I'm rich! Oops, I need gas for my Lexus. No problem, it's a business expense!

(external) Lawsuit? That's preposterous! I have the best pro bono representation money can buy!

(internal) Holy crap, people are starting to think I'm a con man--I am, but why do they think that???

(external) I have not received one penny of Axanar money! You're all haters! BANNED! NO REFUNDS!

(internal) I really should just keep repeating what I've been saying all along, because the more you tell a lie the easier it is to believe.

More to come . . . ?
 
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Nice $5 grand payment listed as 1099 to metamorpfic
Basic look-up Peters + metamorpfic
(non official) looks like some nice furniture
http://www.nimbusantiques.co.uk/products-page/view-all/william-iv-metamorphic-bureau-in-rosewood/

I'm curious, looked up in the legal documents?

Yes, a 5$k desk that isn't even of a type anyone would use in an office these days. Fans will love that if your nonofficial search is right. Wonder where the (hypothetical) desk ended up?

Notice also its one of those fancy accountants desks with lots of pigeonholes convenient for times when one is burdened with paper records and cash that aren't on any computer/in any bank. Sometimes there is even a secret compartment.
 
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The defendant will never release independently audited books, ever. It's too "embarrassing" for him. A million and a half dollars of Trek fan money is just gone.

Regardless of possible action or inaction by Axanar, I think people can still effectively ask specific budget questions. The questions and the answers/nonanswers could enable more donors to decide sooner whether they are content with the degree of accountability Axanar will offer, or whether they feel a need to hire a class action attorney to look into it for them.
 
@muCephi Here's my hypothetical setup Practice Run at what I 'think' you're telling me.

Someone says: "Didn't AP state somewhere that he had to pay the entire lease up front?"
Someone Else says: "I understood he had to pay something like 14 months up front."

I could respond, having my facts straight and all (which I don't but *I* heard them say this so it's there for me to find before I would actually declare I've documented it for the conversation):
Me: "In the production's official podcast #X, at xx:xx point, the defendant and RMB say the the lease for this warehouse is for three years, that the defendant is the signator on the lease. That the defendant paid the first year in cash upfront, and will personally have to cover the remaining 2 years rent out of pocket if 'we don't get other projects lined up to cover it. That's how strongly he (the defendant) believes in Axanar Productions.' "

New Person enters the conversation: "But he's been paying the rent out of his pocket for the last six months. Everything is CBS&Paramount's fault for trying to shut the production down. Because they want to shut down fan films.

To which I could reply if I had my Fact references straight for this hypothetical:
Me: "On date xx,xxx in thus-and-such Court ruling the injunction was lifted to allow the production to continue filming the movie if they wished, or in lieu of that produce any other films they so chose, and in lieu of that hire out the studio in any way they saw fit to generate income that would continue to cover the rent during the litigation."

New Person: But the lawsuit. He cant make the movie. It's not his fault. It's CBS& Paramount's fault. You're a Hater wanting to see this fail.

Me: "On date xx,xxx in thus-and-such Court ruling the injunction was lifted to allow the production to continue filming the movie if they wished, or in lieu of that produce any other films they so chose, and in lieu of that hire out the studio in any way they saw fit to generate income that would continue to cover the rent."

New Person: "You're repeating yourself. He's been paying the rent for six months out of his own pocket. He's put over $100,000 of his own money into the production. He works 80 hours a week on the production. Hater. CBS/p minion! You just want him to fail. He put all the profit from the prop sale into the production.

Me: "I am interested in that information. What is the link to the documentation verifying the over $100K and all the profits from the sale."

New Person: He said so. That's proof. He is not a liar. He works hard on this. He puts everything into this; his time, his money, his energy.

Me: "Then as it stands we have documentation [where I place links again to the documentation] saying that for months the production has been without restriction on producing his choice of the movie, or other films, or do anything the production so chooses to cover all the rent during this lawsuit. As well as the documented conversation by the defendant & RMB saying the defendant signed the lease and chose to be responsible for the remaining two years out of pocket rent so they needed to get busy to make sure he didn't have to pay out of pocket."

New Person: "But he can't make the film because of the lawsuit."

Me: "The Court lifted all injunctions and the studio has been free film any other fan films or commercials or out for anything it so chose to to be able to continue covering the rent so it wouldn't have to be out of pocket."

New Person: "The lawsuit is taking up all of his time while he tries to fight this battle for all fan films"

Me: "On Dates xx,2016 - xx,2016 - xx,2016 - xx,2016 (provide links) the defendant attended conventions promoting Prelude and crowdfunding. Mr. Burnett has many contacts in Hollywood and fan film communities. The defendant has many contacts in various fan film communities. As well as sci-fi communities and gaming communities. Between them they, wherever each of them were at the time, they had contacts, telephones, and computers that would facilitate at the least a few situations to hire out the studio to bring in revenue to cover at least some of the rent. Which has not yet been seen to happen."

New Person: "He went to the conventions to work promoting Prelude & crowdfunding for the movie. This is important. This has to be done. This is marketing."

Me: "During that time both he and Mr. Burnett could also still be using their many contacts and considerable talents to also find avenues to hire out the studio while the production remained in litigation. Conventions where fan film producers are gathered is fine resource to be used in locating productions wanting to film to hire out the studio. As well as broadening their network to other places and productions looking for space to host various fan gatherings, small conventions, and similar that could continue to help cover the rent so it needn't have to resort to paying out of pocket."

Etc.



@muCephi am I at least on the right track here? :lol: Place factual documentation. Request opposing documentation. Don't sidetrack the facts with arguing. Place documentation. Request opposing documentation. repeat
 
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400k (what Alec said the investor group kicked in to take over the studio asset; the studio buildout cost is subtracted below in the 641k for Axanar)
I don't like the way you list this. It's confusing. Each line should be a separate item, not a sub-total from another line.

You should list money-in with separate lines for: Kickstarter, IGG, Alec's personal funds, Donor store funds, direct donations (i.e., at conventions), this studio investor buy-out, etc., etc., and list the gross total input. And then list money-out with separate lines for: Making of Prelude, lease/rent of the warehouse, building the studio sets, creation of Areas Digital, salary & perks paid to staff, etc., etc., and list the total expenses to be subtracted off the gross total input.

Keep it simply. Anything else is confusing and looks like accounting magic.
 
As I understand it, they can't rent the studio out because it's not up to code or even finished, other than the upstairs propworx offices?
 
Yes, I remember reading Alec bitching about having to deal with the building department . . . just like everyone else has to, lol. How dare them treat LFIM like common folk; the gall!
 
@muCephi Here's my hypothetical setup Practice Run at what I 'think' you're telling me.

Someone says: "Didn't AP state somewhere that he had to pay the entire lease up front?"
Someone Else says: "I understood he had to pay something like 14 months up front."

I could respond, having my facts straight and all (which I don't but *I* heard them say this so it's there for me to find before I would actually declare I've documented it for the conversation):

... am I at least on the right track here? :lol: Place factual documentation. Request opposing documentation. Don't sidetrack the facts with arguing. Place documentation. Request opposing documentation. repeat

In a way. Figure out some relatively clear, high level starting point originated by Axanar, isolate the unexplained balance, and treat incoming information as a list of explanations of that balance.

Where personally I would differ from what you describe is that I probably would not get into that type of detailed discussion with people who want to rewrite the entire question or bury it under nitpicks. If they have information I would simply receive it and perhaps ask how it helps explain the financial gap. But I wouldn't follow details too far, especially not into "what was the intention of line item x". The high level issues loom over it all.

I think it could be helpful for donors to start saying "you know, the high level numbers really don't add up based on the information given up to now".

I don't like the way you list this. It's confusing. Each line should be a separate item, not a sub-total from another line.

You should list money-in with separate lines for: Kickstarter, IGG, Alec's personal funds, Donor store funds, direct donations (i.e., at conventions), this studio investor buy-out, etc., etc., and list the gross total input. And then list money-out with separate lines for: Making of Prelude, lease/rent of the warehouse, building the studio sets, creation of Areas Digital, salary & perks paid to staff, etc., etc., and list the total expenses to be subtracted off the gross total input.

Keep it simply. Anything else is confusing and looks like accounting magic.

Certainly this could be done. And I would like to see accurate accounts of those line items. But I was trying to roll it up to make it even simpler, the maximum simplicity without causing distortion of the overall numbers, and work with the only overall number that seems to be on the table and of some credibility at present.

What is the total Axanar income? If you assume the studios accurately put out an analysis of "over 1.5 million" as Axanar income from the IP as of their summary judgment filing in November, that would probably include all revenue generation aside from non-fundraising donations and the studio sale up until some point perhaps in mid 2016.

I think its pretty reasonable to take the studios' overall assessment, since if they are awarded damages they will have to defend their number, so they probably have put some real accounting analysis into it based on the actual books.

Aside from this there are 2 other non-donor income sources I am aware were claimed that the studios probably would not include as solicitations for funds or merchandising product in Trek's name. So I put those 2 items for income as well - the studio 'sale' and the Alec 'donation'.

On the expense side, grant Axanar their top level expense claims from their Annual Report for 2015. Subtract those out.

I would love to see an up to date "one level down" breakout like you describe, and Carlos went part way with that last year in his analysis of the Annual Report. I don't think I have the time to do this accurately.

Axanar's blue-ribbon self-selected commission to explain it will probably start by rearranging things so as to bury any obvious gap in multiple line items and then inflate those items to cover it over.

If the studios' analysis is not a comfortable starting point of ballparking what is going on, that is a valid question. Don't know where else to get that info now.
 
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No show tomorrow because we all haz a tired.

Looks like the newest filings are just correctly redacted versions of the Plaintiffs' Motion for Partial S/J.

And, yet again, defense has had the opportunity to move to redact the stuff about the finances. They have not done so. And I imagine if they have not done that by now, then they just are not going to.
 
In a way. Figure out some relatively clear, high level starting point originated by Axanar, isolate the unexplained balance, and treat incoming information as a list of explanations of that balance.

Where personally I would differ from what you describe is that I probably would not get into that type of detailed discussion with people who want to rewrite the entire question or bury it under nitpicks. If they have information I would simply receive it and perhaps ask how it helps explain the financial gap. But I wouldn't follow details too far, especially not into "what was the intention of line item x". The high level issues loom over it all.
Okay. Good feedback.

Good. So give me one example of this:
"some relatively clear, high level starting point originated by Axanar, isolate the unexplained balance, and treat incoming information as a list of explanations of that balance."

And the example of how you would address it.
 
That million dollars was based on the KS/IGG right?
So how much did he raise through other means?
We don't know for sure. The amounts from his various revenue streams have never been disclosed but they've been estimated at around $200,000.
 
Okay. Good feedback.

Good. So give me one example of this:
"some relatively clear, high level starting point originated by Axanar, isolate the unexplained balance, and treat incoming information as a list of explanations of that balance."

And the example of how you would address it.

The outline I offered provides a high level starting point, and isolates an unexplained balance.

If they said X, I would take it as Y:

X: "The investment group payment for the studio was 250k and it went to Axanar."
Y: "Ok, 150k of the million is a misstatement of the amount they were going to give. Was the 250k an addition of dollar value to the Axanar balance, or is it some other sort of equity/value transfer being summarized as "250k$"? Was it spent or is it still around? If its around where is it? Was it used on the studio rent, infrastructure, or personnel working on Industry Studios business development (including contractors) or was it held back for Axanar production costs? This leaves 600k to account for."

X: "There was 200k of additional work done on the studio in 2016 to make it ready for renting out."
Y: "Ok, this reduces the million by 200k, and its 200k of donor money spent on an asset that others own. Did those owners reimburse the additional investment, or is there a legal agreement for them to put this money back into Axanar production funds, or did the donors just make a 200k$ gift to Industry Studios?"

X: "Alec's donation to Axanar is over $100k in 2016"
Y: "Ok, this is 50k less than was represented. How was this money put into Axanar (rent payments, paying expenses, cash put into the Axanar bank account, etc.)? Was any of it derived from (directly transferred between accounts, passed out to a private bank account and back in, etc.) money raised by Axanar from donations or sales outside the crowdsourced amounts? Was any of this donation used to keep the commercial company viable (paying its rent, building out its physical plant, retaining staff who will work principally for the commercial firm (Industry Studios), etc)?" [note, most of these questions have been raised in a scattered way on facebook and here]

Off the top of my head these are a few examples.

A recurring theme is how much of the 2016 money is being spent "on Axanar" by "keeping the studio open and making it rentable 'for Axanar'", when the final reality is an investment principally in the commercial operation, with "which will also make an Axanar of some form" used as justification for paying for the commercial operation development costs (including renting the space until paid customers come).

I think Alec has played donors on a key point, even exploiting the lawsuit. Making Axanar in some form does not require maintaining a high rent studio and making a infrastructure investment. It requires putting the money aside to build temporary sets and other production expenses, and renting this or some other space for a short period when the film is ready to shoot.

It was, and remains a false assertion to say Industry Studios has to be built, and now kept alive out of Axanar funds to make some Axanar (or now, some substitute) possible. This has always been a false linkage, used to divert donor money into privately owned assets
.

As money is accounted for (income/expenditures), one would see how much was actually invested in the business rather than held to make an Axanar film. Keeping the business Industry Studios alive and making Axanar are not the same thing. If the money is spent, one might in the end find that most of the unaccounted money was spent to keep Industry Studios alive and meet its requirements to begin operating and staffing.

TLDR:

If its found at the top level that the expenditures this year, and indeed most all the unaccounted million all are brazen investments in making Industry Studios survive and be viable (since those on the inside surely knew the consequences for the lawsuit of their emails and financials being reviewed by the studios), then donors may see laid bare the false linkage between Axanar the movie and the movie studio, and see clearly where they money went.

If on the other hand the money has gone into cash accounts somewhere and miraculously appears, great for Axanar supporters. They may get their This is Not Axanar movie made. :eek::whistle: (tho it may need to be an 8mm home film after CBS is done with that money)

Seeing the discussion reach a meaningful TLDR consensus on it all is IMO more important at this point than tracing down every way Alec spent money on personal expenses.

Alec's financial review board will try to frame it as "all responsibly spent on Axanar" -- with the unstated assertion that building and maintaining Industry Studios out of donor money is an intrinsic part of "making Axanar", and "no donor money" went to Industry Studios (except all the rent, all the salaries where people worked on it, all the third party consulting services and bringing it up to code in the guise of Axanar construction expenses and ??).

The counterpoint to this has to be (if it proves true) "they are two separate things, especially now that it has come out how you had to know you would lose the case due to egregious behavior that would derail other legal arguments, but you kept spending donor money for Axanar the film on building out/keeping Industry Studios/rent-free Propworx open all year long in 2016".

(And yes, salary and expenses put back in so that 'no net donor money was given to Alec', and then spent on rent, is donor money spent on rent, NOT Alec money spent on rent).
 
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Correct me if I'm wrong but CBS/Paramount's lawsuit will attempt to prove that Alex indeed produced a film in the Star Trek IP "and" profited from doing so.
My jaw dropped the first time I saw the initial yet vague financial statement exposing the fact that several people people did indeed create items within the Star Trek IP for a profit, according to Alec. Somehow by the good graces of CBS/Paramount all these folks weren't named in the suit.
Once the lawsuit proves Alec did indeed profit tens of thousands off of CBS/Paramount's IP, they're done.
It could get interesting afterwards if donors and other contributors feel they were taken advantage of, due to what comes out of this lawsuit but I believe that's a different lawsuit.
 
The outline I offered provides a high level starting point, and isolates an unexplained balance.

If they said X, I would take it as Y:

X: "The investment group payment for the studio was 250k and it went to Axanar."
Y: "Ok, 150k of the million is a misstatement of the amount they were going to give. Was the 250k an addition of dollar value to the Axanar balance, or is it some other sort of equity/value transfer being summarized as "250k$"? Was it spent or is it still around? If its around where is it? Was it used on the studio rent, infrastructure, or personnel working on Industry Studios business development (including contractors) or was it held back for Axanar production costs? This leaves 600k to account for."
.............................
Seeing the discussion reach a meaningful TLDR consensus on it all is IMO more important at this point than tracing down every way Alec spent money on personal expenses.

Alec's financial review board will try to frame it as "all responsibly spent on Axanar" -- with the unstated assertion that building and maintaining Industry Studios out of donor money is an intrinsic part of "making Axanar", and "no donor money" went to Industry Studios (except all the rent, all the salaries where people worked on it, all the third party consulting services and bringing it up to code in the guise of Axanar construction expenses and ??)
...........................
Okay. I 'think' I'm understanding, or at least a bit more.
 
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