Accredited Investor Requirements

To be an accredited investor, a person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years. The income test cannot be satisfied by showing one year of an individual’s income and the next two years of joint income with a spouse. The exception to this rule is when a person is married within the period of conducting a test. A person is also considered an accredited investor if he has a net worth exceeding $1 million, either individually or jointly with his spouse. The SEC also considers a person to be an accredited investor if he is a general partner, executive officer, director or a related combination thereof for the issuer of unregistered securities.

Example of an Accredited Investor

Consider an individual who earned $150,000 of individual income for the last three years and reported a primary residence value of $1 million with mortgage of $200,000, a car worth $100,000 with outstanding loan of $50,000, 401(k) account with $500,000 and a savings account with $450,000. While this individual fails the income test, he is an accredited investor according to the test on net worth, which cannot include the value of primary residence and is calculated as assets minus liabilities. The person’s net worth is exactly $1 million, which is calculated as his assets of $1,050,000 ($100,000 plus $500,000 plus $450,000) minus a car loan of $50,000.

Hollywood Indie Studios Incorporated has filed a form D 506c with the US Securities and Exchange Commission (SEC) for the offering exemption to which this communication relates.


Before you invest, you should carefully read the prospectus and the other documents provided by Hollywood Indie Studios Incorporated for more complete information about Hollywood Indie Studios Incorporated securities offering. Hollywood Indie Studios Incorporated will arrange to send you the prospectus if you request it or you can download from our web site after being qualified as an ACCREDITED INVESTOR by filling out our accredited form.

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. This is not an offering, which may be made only by prospectus. The Attorney General of the State of Florida has not passed on or endorsed the merits of this offering.

Please fill out the following form and we will contact you to give you access to the investment opportunity paper work.

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