The director had announced he'd be selling the distribution rights to film companies immediately after the screening of the independent film at Eccles Theater.
But after the credits rolled, Smith and his producer pal John Gordon took to the stage and it quickly became clear the audition was a publicity stunt.
Smith told the crowd, "Selling my film is equivalent to having a baby and sending it off for someone else to raise."
Gordon then began the auction and sold the film to Smith himself for just $20 (£13.30).
The director then announced he was planning to self-distribute the film, through his newly-formed Smodcast Pictures.