Frequently Asked Questions

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The Class A Preferred Membership Units represent an equity interest in Dream Hacker Partners LLC, specifically structured to align investor returns with the success of the film project. The company offers 250 units at $100,000 each, amounting to a $25 million raise. Class A units are entitled to 90% of the revenue until the initial investment is recouped, at which point income distribution shifts to a 50-50 split with Class B units. This structure incentivizes early revenue distributions to investors while reserving upside potential. Class A units are preferred in distributions, meaning investors receive returns before Class B units share in profits.

This investment is structured to provide early and favorable returns to investors, with a dual distribution phase. During the initial phase, 90% of all Producer's Gross Revenue (defined as gross revenue received by the producer/owner after distributor and sales agent fees and reimbursements) goes to Class A investors, aimed at returning their initial investment. Once this “Investor Corridor” has returned the total initial investment to Class A unit holders, distributions then move to a 50-50 split with Class B. Investors can expect to receive periodic distributions based on revenue from the film’s box office, digital platforms, and ancillary revenue streams such as merchandising. Additional incentives, like early tax benefits under Section 181, enhance the initial appeal and potential returns. We have a large inventory of high-quality film equipment available for rent, including cameras, lenses, lighting, and sound equipment. Our rental rates are competitive, and our team is always available to provide technical support and advice.

Under U.S. securities laws, only accredited investors can participate in this offering. An accredited investor is typically an individual with a net worth of over $1 million (excluding their primary residence) or someone with an annual income of at least $200,000 (or $300,000 jointly with a spouse) over the past two years. This qualification ensures that investors have the financial resilience to engage in higher-risk investments such as film production. Investors are advised to consult financial advisors to verify their eligibility before investing.

The minimum investment to participate in this offering is generally $100,000 per unit, which represents a .12% membership interest in Dream Hacker Partners LLC. While this is the standard minimum, there may be flexibility in specific cases if approved by the management, allowing for investments slightly below this threshold to enable broader participation from qualified investors. Each dollar invested entitles investors to a proportional share of revenue and other investor benefits.

Yes, early investors in Dream Hackers gain two primary benefits. First, under Section 181 of the IRS code, investments made in 2024 may be eligible for a full deduction in the first year, giving investors an immediate tax benefit rather than spreading deductions over multiple years. Second, the first $5 million invested in Class A units has an additional perk: a 20% bonus from the “Creators Corridor” (the management’s 10% share of revenue). This effectively gives early investors up to 120% return on investment before the 50-50 distribution phase, providing an enhanced return relative to later investors.

Investor distributions are based on Producer’s Gross Income, which refers to the total revenue generated by the film after distributor and sales agent fees. Class A investors are entitled to 90% of this Producer’s Gross Income until their initial investment is fully recouped. Once this threshold is met, subsequent revenue distributions shift to a 50-50 split between Class A and Class B units. Distributions are projected to occur quarterly or semi-annually, depending on revenue flow, and will encompass earnings from box office, streaming platforms, and other income sources associated with the film.

The Class A Preferred Membership Units are subject to transfer restrictions under the terms of the LLC operating agreement. Investors may transfer their units only with prior written consent from the Board of Managers, which cannot be withheld without a valid business reason. Transfers must comply with applicable securities laws, and the transferee must agree to the terms of the operating agreement to become a member. If not, they will only hold an “assignee” status, limiting their rights to net profits and distributions without formal membership. This ensures that the investor pool remains controlled and stable, focusing on long-term commitment.

Investment in film production is inherently high-risk, with factors such as market demand, production delays, and revenue unpredictability. Dream Hackers mitigates these risks through several strategies: (1) State Film Incentives reduce production costs by up to 25%, lowering the breakeven point; (2) A Completion Bond guarantees the project will be completed on budget and on time, and that the production professionals managing the project have track records of success making them acceptable to the bond company;  (3) Section 181 tax benefits offer the  potential for the full investment to be deducted in one year, rather than over a number of years as is the case without the Section 181 benefit,  reducing their upfront risk by providing an immediate tax benefit; and (4) Minimum Guarantee agreements with distributors provide a baseline revenue expectation. Despite these mitigations, investors should be prepared for potential fluctuations in returns and consider this a long-term, speculative investment.

Yes, Class A investors have limited voting rights. While the day-to-day management is conducted by the Board of Managers, Class A unit holders can elect one board member after the offering. Additionally, if investors holding at least 70% of Class A units request a meeting, they may vote to re-elect or replace board members. This structure ensures investor representation while allowing the experienced management team to oversee project execution. Class A holders are also entitled to vote on major company decisions that directly affect their investment, such as liquidation events or public offerings.

Section 181 of the Internal Revenue Code allows investors in qualified film projects to deduct the full amount of their investment in the year the investment is made, instead of amortizing the cost over multiple years. For Dream Hackers, this means that investments made in 2024 can be expensed fully in Tax Year 2024, significantly reducing taxable income for eligible investors. Only accredited investors participating in this offering are eligible, and those interested should consult a tax advisor to confirm how this benefit would apply to their unique tax situation. This immediate tax benefit enhances the financial appeal of the investment, particularly for high-income investors.

Dream Hackers will have a Completion Bond to safeguard investors against budget overruns or significant delays. This bond acts as insurance, ensuring that the film will be completed on time and within the agreed budget. If unforeseen issues arise, the bonding company may provide additional funding or take control of the project to bring it back on track. The completion bond includes thorough oversight, requiring the production team to adhere to an approved budget and schedule. Additionally, the film’s experienced management and strategic cost-saving measures, like State Film Incentives, help keep the project financially secure and efficient.

The current offering aims to fully fund the production and distribution of Dream Hackers, with no immediate plans for additional fundraising. Moreover, the completion bond will ensure that no additional fundraising would be required to cover production overages.  However, if future financing is necessary, priority distribution rights protect existing Class A investors from dilution. Additional rounds, if any, would be carefully structured to maintain the value of existing investments and would typically occur only if the project expands (e.g., to support sequels, merchandising, or new intellectual property development). Any further financing would prioritize enhancing the film’s revenue streams rather than impacting investor returns.

Production for Dream Hackers is scheduled to begin promptly after securing funds, with an anticipated timeline of 9-12 months for principal photography and post-production. The projected release window is within 18-24 months from the start of production, depending on final scheduling and market conditions. Initial revenue generation is expected to come from presales, box office returns and streaming rights, followed by ancillary income from merchandise and licensing. Distributions to investors are anticipated to begin within the first year following the film’s release, aligning with revenue inflows from major distribution channels.

Dream Hackers offers multiple exit strategies for investors. First, regular distributions provide a path to recoup the initial investment and earn returns from ongoing revenue. Additionally, should the film become a franchise (or in certain other limited circumstances),  a Qualified Public Offering (QPO) option allows for a potential liquidity event: should the company go public, Class A Preferred Membership Units would be exchanged for shares of the new public entity. This would enable investors to benefit from public market exposure. Another potential exit includes a buyout of the project by a studio or streaming platform, which could result in a full or partial return of investment capital. 

A completion bond is a form of insurance that guarantees Dream Hackers will be completed on time and within budget. The bonding company oversees the entire production process, from script review to budget and schedule approvals, to approvals of key production personnel such as line producer, production manager, and production accountants.  This process ensures that the plan for the film has been thoroughly reviewed and has plassed the professional scrutiny of the bond company. If the film encounters unforeseen costs or significant delays, the bond company steps in to fund additional expenses or take over production if necessary. This bond protects investors by ensuring that the film will reach completion, without any overages being passed on to investors,  reducing the risk of unfinished or indefinitely delayed projects.

Management and operational expenses are accounted for within the project’s initial budget and covered by funds raised in this offering. There are no hidden or ongoing fees directly levied on investors after their initial investment. However, the LLC’s operating agreement allows for necessary administrative expenses to be managed from the company’s operational funds, ensuring investors do not face additional charges. Management prioritizes fiscal discipline and transparency in all ongoing expenses, aligning with the project’s commitment to maximizing investor returns.

Yes, investors in Dream Hackers can expect regular financial updates and reporting. Management will provide quarterly or semi-annual updates, covering key developments in production, marketing progress, and revenue distributions once the film is released. These reports include insights into financial performance, income generated, distribution breakdowns, and any upcoming milestones. These updates ensure transparency and allow investors to stay informed about the project’s financial health and progress.

Please refer to the sales and income projections in the PPM and Investor Information Deck.  All projections are classified as "Forward Looking Projections" which are explained in the PPM and Deck. If Dream Hackers performs as anticipated, Class A investors would receive their principal investment back, followed by returns based on the 50-50 revenue-sharing arrangement with Class B. Strong box office or streaming performance could lead to significant returns, with ongoing revenue from licensing, merchandising, and ancillary rights bolstering long-term income. In a high-performance scenario, returns could surpass the initial projections. However, if the film underperforms, investors may face delayed or reduced returns. While strategies like state tax rebates and distribution guarantees help minimize downside risk, investors should be prepared for variability based on market performance.

Dream Hacker Partners LLC will hold exclusive intellectual property rights for Dream Hackers (the screenplay and movie) and its sister management entity Dream Hackers LLC holds exclusive intellectual property rights for trademarks, copyrights, and related branding elements. These rights allow for controlled licensing agreements and merchandising partnerships, providing additional revenue streams. The film’s IP management strategy includes exploring sequels, spin-offs, and potential franchise opportunities. Monetization will target streaming platforms, digital merchandise, and licensing deals with domestic and international partners. These avenues enhance long-term profitability and maintain the brand’s value, creating additional revenue streams even beyond the film’s release.