Medient Studios (OTCQB: MDNT), which is building a movie production complex in Effingham County, announced Monday its revenues for 2013 totalled $2,056,307, down from $3,267,825 in 2012.
The company’s statement said the decrease reflects its focus on establishing the new complex and finalizing related contracts.
Medient’s losses increased from $117,630 in 2012 to $1,366,629 last year, primarily due to increased operating expenses linked to the Effingham County project, the company said, but its assets more than doubled from $20,888,692 to $48,951,444 in 2013.
In a letter to Medient shareholders, CEO Manu Kumaran reiterated earlier statements that traditional ways of making movies are outdated and inefficient and Medient is creating a more efficient process even in the face of some who resist change.
“But change we must, and Medient will be at the vanguard of creating a smarter way of making movies and games,” Kumaran wrote.
In 2013, he wrote, Medient set down roots in Effingham County.
“Our home is a beautiful 1,560 acres of woodland with a pretty lake in the center of it all,” Kumaran wrote. “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.”
He said construction on the studio complex will begin this year and the first set of sound stages should be functional by the end of the year.
The contractor is Shore Development and Construction, 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,” Kumaran wrote.
He said Medient’s development team have read more than 400 scripts in the past year and have found “the few great ones” to produce. Plus, he said, Medient is working to bring films from India “to shoot in Georgia by providing production services with Medient managing their tax credits.”
Medient reach several importantgoals in 2013, Kumaran wrote, but its share price took a beating and its market value no longer reflects its current real value or potential.
The company has been priced for less than one cent a share for much of the year.
“Redressing this and returning the company to a share price that is reflective of our real value is one of our key immediate priorities,” Kumaran wrote.
He said shareholders should know their money is being used to make the company stronger.
“No one is buying houses or Ferraris with your money,” he wrote.
“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,” Kumaran wrote.