Obvious warning to all reading: The catch is "net profit."
This is used to harm actors all of the time. Basically, the company is heavily incentivized to get really creative with their accounting, so even on lucrative projects they don't have to pay you much of the value reaped from you. One of the oldest scams in the book, and the incentives are such that the company (Homestead in this case) would be acting irrationally if they didn't practice it. It's a no-win situation. Either they're acting irrationally, in which case why trust them? Or they're acting rationally, which means that you lose if you trust them.
This is used to harm actors all of the time. Basically, the company is heavily incentivized to get really creative with their accounting, so even on lucrative projects they don't have to pay you much of the value reaped from you. One of the oldest scams in the book, and the incentives are such that the company (Homestead in this case) would be acting irrationally if they didn't practice it. It's a no-win situation. Either they're acting irrationally, in which case why trust them? Or they're acting rationally, which means that you lose if you trust them.
https://en.wikipedia.org/wiki/Hollywood_accounting
https://en.wikipedia.org/wiki/Creative_accounting