How does Disrupt distribute net profit to investors?
Written by Jak Wilmot (Founder)
Short answer: Every year, 20% of our net profit (profit after operating costs) is distributed to each shareholder in relation to the amount of shares they own.
This is done via Bitcoin or Paypal & displayed via our Investor Dashboard.
Long answer: Disrupt Inc is made up of 2,500,000 total stock. 90% or 2,250,000 are Common Stock; voting securities that are owned by internal members. 10% or 250,000 are Preferred Stock; non-voting securities, that are owned by investors.
In the following example, JohnDoe reserved 25,000 shares during our WeFunder campaign:
John’s shares are 10% of all Preferred Stock, and 1% of all company stock.
In other words, he is a 1% owner of Disrupt Inc
Now let’s say the studio generates $100,000 in net profit in the year 20X1.
(This is not a financial projection and should only serve as a mathematical example.)
At year’s end, 20% of that net profit, or $20,000, is distributed to shareholders in relation to the amount of ownership they have in the studio.
Net Profit (Example) = $100,000
Shareholder Dividends (Example) = $20,000
Since John owns 10% of all preferred stock,
he will receive 10% of the shareholder dividends, or $2,000.
Our Investor Dashboard automatically
calculates the amount of dividends you will receive.
Note from the founder:
I do not expect that you will receive a substantial amount of dividends for quite some time. Disrupt is an early stage startup and should be viewed as a long-term investment, rather than a quick return. As such, if you invest $100 today, do not expect to receive more than a few cents for many years to come.
With that being said, it is my sole professional goal to shepherd this company into one of the most profitable virtual studios over the next few decades. I have established this payout structure as a way of ensuring that the mechanism for mutual success is planted before we are successful.
In other words, our success is your success – but if success comes, it will be up a long, long, long, arduous path.
Last updated on July 23rd, 2022