Moon River Studios, the firm struggling to build a movie production studio in Effingham County, has found enough money to pay an auditor for its annual report but has received a demand for nearly $73,000 that’s past due for the film equipment firm it is trying to buy.
FONU2, which operates as Moon River, said in documents filed with the Securities and Exchange Commission on Feb. 1 that it has paid Malone Bailey to complete the annual audit report for the fiscal year ended Sept. 30.
The company had said in a previous filing that the annual report would be late because it didn’t have money to pay auditors.
“The company and auditors are now working diligently to complete the 10-K filing at the earliest possible date,” the Feb. 1 filing said.
The report also said the company received a notice of default on Jan. 27 from AppleBox Productions, demanding immediate payment of $72,500.
Moon River has said its acquisition of AppleBox was an important step in its efforts to build movie studios and produce films. AppleBox has the equipment needed to make movies including cameras, trucks, lights and generators.
Moon River has said it will use the equipment on its own movie projects and rent it to other movie makers.
The Feb. 1 SEC document said Moon River failed to pay $15,000 to AppleBox that was due for November, $25,000 for December, $25,000 for January and $7,500 in attorneys’ fees incurred in collecting the past due amounts.
“Exclusive of several vehicles, AppleBox’s rights are fully subordinated to Loeb Term Solutions (the senior lender),” the report said. “At this time the company is current with the senior lender.”
Moon River agreed in October to downsize its plans for movie studios on property owned by the Effingham County Industrial Development Authority at Old River Road and I-16. The 1,560 acres originally agreed upon, when the company was known as “Medient,” would be cut down to 51 acres.
As of Monday, the company had not signed a termination letter making that change. When those papers are signed, Moon River will have to come up with $55,000 as rent for the 51 acres for one year.
Moon River announced recently that it had signed agreements to finance and produce the horror film “Mara.”
The Feb. 1 SEC filing said the company will pay Jeff Maynard, head of post production, $80,000 a year for the first six months and $150,000 a year for the following six months.
He will be paid $250,000 a year during the second year of employment.
Maynard has been studio executive, producer, production manager and post supervisor for more than 90 feature films, including “The Reader,” “The King’s Speech,” “The Great Debaters,” and “Limitless.”