Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 129

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          film titles.  Troma distributed 6 of the film titles but with               
          very little success.  For example, Troma began distributing                 
          “Battle of the Last Panzer” on May 25, 1999, and had $2,034.71 in           
          total VHS sales through 2000 and $182.97 during 2001.  Troma                
          began distributing “Escape from Hell” on May 25, 1999, and had              
          $6,496.64 in total VHS sales through 2000 and $3,867.24 during              
          2001.  It had $10,726.90 in total DVD sales during 2000 and                 
          $2,529.23 during 2001.153  Troma began distributing “Plutonium              
          Baby” on October 24, 2000, and had $767.98 in VHS sales through             
          2000 and $66.48 during 2001.  Realization of these amounts would            
          hardly justify the distribution expenses that Troma likely                  
          incurred.154                                                                
               4.  Carolco Securities                                                 
               The parties dispute whether the Carolco securities had any             
          value as of December 11, 1996.  Petitioner contends that as of              
          December 11, 1996, the Carolco securities had some indeterminable           
          value, perhaps as high as $10 million.  Respondent contends that            



               153 From these figures, it appears that the EBD film titles            
          had higher sales figures when they were distributed in DVD                  
          format.  Although DVD format was foreseeable in 1996, its                   
          potential was still virtually unknown.  For that reason, none of            
          the experts in these cases relied upon DVD sales in valuing the             
          EBD film library.                                                           
               154 On Nov. 4, 1996, Troma sent an invoice to Crown Capital            
          requesting $103,025 for the release of video and DVD for “Banana            
          Monster”, “Fist of Fear, Touch of Death”, “Astro Zombies”,                  
          “Battle of Last Panzer”, and “Escape from Hell”.                            





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