EX-99 2 formc.htm

 

PART II

 

OFFERING MEMORANDUM DATED MAY 14 2024

 

 

Elf Labs

481 South Holt Ave, Los Angeles CA 90048

www.elflabs.com

 

Up to $4,999,999.20 or up to 2,499,949 shares of Class B Common Stock, plus up to 1,249,791 “Bonus Shares” available to early investors for no additional consideration*

 

Target Investment Amount: $10,004 (which includes 2.5% Investor Transaction Fee)

 

Minimum Investment: $732.00 ($750.30 including the Investor Transaction Fee)

 

Toon Studio, Inc DBA Elf Labs, a California corporation (“Elf Labs”, “the Company,” “we,” or “us”), is offering up to $4,999,999.20 worth of Class B Common Stock. The minimum target amount under this Regulation CF offering is $10,004 (the “Target Amount”). The company must reach its Target Amount of $10,004 by April 1, 2025**. Unless the company raises at least the Target Amount of $10,004 under the Regulation CF offering by April 2025, no securities will be sold in this offering, investment commitments will be canceled, and committed funds will be returned. Each investor must purchase a minimum of $750.30 worth of shares (366 shares) .

 

The Offering is being made through DealMaker Securities LLC (the “Intermediary”) on its platform. The Intermediary will be entitled to receive fees related to the purchase and sale of the Securities. The rights and obligations of any Purchasers of the Securities must complete the purchase process through the Intermediary. All committed funds will be held in escrow with Enterprise Bank & Trust, a Missouri chartered trust company with banking powers (the “Escrow Agent”) until the Target Amount has been met or exceeded and one or more closings occur. You may cancel an investment commitment up to 48 hours prior to April 1, 2025 (the “Offering Deadline”), or such earlier time as the Company designates, pursuant to Regulation CF, using the cancellation mechanism provided by the Intermediary. The Intermediary has the ability to reject any investment commitment and may cancel or rescind the Company’s offer to sell the Offered Shares at any time for any reason.

 

 

 

 

   Price to Investors  

Service Fees and

Commissions (1)

   Net Proceeds 
Minimum Individual Purchase Amount  $732   $63.77   $686.53 
Investor Fee  $18.30           
Aggregate Maximum Offering Amount  $4,999,999.20   $424,999.93   $4,574,999.27 

 

  (1) DealMaker Securities LLC charges commissions of eight percent (8.5%) of the Offering proceeds including the Investor Transaction Fee. This excludes fees to the Issuer’s advisors, such as attorneys and accountants. Also, excludes $15,000 set up fee and $5,000 per month maintenance fee payable to Intermediary.

 

Investors will be required to pay an Investor Processing Fee of 2.5% to the Company at the time of the subscription to help offset transaction costs. The Broker will receive a cash commission on this fee. All investments will have a maximum Investor Processing Fee of $100.00, which represents the fee for a $4,000.00 investment.

 

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

 

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

 

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

 

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

 

This disclosure document contains forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to the company’s management. When used in this disclosure document and the company offering materials, the words “estimate”, “project”, “believe”, “anticipate”, “intend”, “expect”, and similar expressions are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause the company’s action results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements to reflect events or circumstances after such state or to reflect the occurrence of unanticipated events.

 

In the event that we become a reporting company under the Securities Exchange Act of 1934, we intend to take advantage of the provisions that relate to “Emerging Growth Companies” under the JOBS Act of 2012, including electing to delay compliance with certain new and revised accounting standards under the Sarbanes-Oxley Act of 2002.

 

 

 

 

TABLE OF CONTENTS

 

THE COMPANY AND ITS BUSINESS   1
     
RISK FACTORS   39
     
DIRECTORS, EXECUTIVE OFFICERS, AND EMPLOYEES   42
     
OWNERSHIP AND CAPITAL STRUCTURE   43
     
USE OF PROCEEDS   43
     
FINANCIAL DISCUSSION   43
     
RECENT OFFERINGS OF SECURITIES   44
     
SECURITIES BEING OFFERED AND RIGHTS OF THE SECURITIES OF THE COMPANY   45
     
DILUTION   46
     
REGULATORY INFORMATION   47
     
INVESTMENT PROCESS   48

 

 

 

 

THE COMPANY AND ITS BUSINESS

 

Overview

 

Elf Labs is a media company that owns the copyrights to the Junior Elf books, which contain some of the most notable IP in the children’s entertainment space. This includes characters such as Sleeping Beauty, Snow White, Cinderella, The Little Mermaid, and Rapunzel. The company works to leverage these assets by integrating these renowned characters into fresh entertainment content across a series of different verticals, including animated series, mobile games, licensing and merchandising, interactive web content, and more. The Issuer is incorporated in Delaware and operates its business in California.

 

Business Plan

 

Elf Labs’ primary focus is on growing and using its library of copyrights and trademarks in order to create strong, immersive content for its audience. The issuer plans to utilize their existing copyrights to produce children’s entertainment content and merchandise featuring their characters. These revenue streams include original animated series, mobile games, interactive web content, as well as licensing fees and merchandise sales. The company is currently working to establish these channels, and has confidence in their ability to quickly grow due to the popularity of the characters within their portfolio.

 

The issuer is currently in the process of developing new animated series based on these characters in collaboration with Snowball Studios with a goal of selling or licensing the show to existing content hosting companies, or selling the product directly to consumers on existing platforms such as YouTube. The issuer is also working to develop content through additional mediums, such as an interactive website and mobile games. Elf Labs has secured partnerships with technology providers that allow for the efficient production and marketing of its content and characters at a cost that is below what the competitors in the space incur.

 

Elf Labs looks to go to market with an initial push of its original series along with exclusive merchandise and web content featuring these fresh interpretations of these classic characters. This strategy will begin with the release of Robo Stars, a robot and science fiction twist on the traditional fairy tale characters, before progressing into further developments of the IP. This push is intended to disrupt the traditional entertainment industry model by appealing directly to consumers through hosting platforms such as YouTube, while still potentially licensing the content to appear on other entertainment platforms. This widespread effort will have the purpose of establishing the Elf Labs brand and characters and creating a large, invested audience that will be interested in future Elf Labs content and characters.

 

As the issuer scales its operations and produces more content, it intends to monetize all the different media creation channels open to it. This includes developing further animated series, web content, and games based on more characters from its IP library, as well as the licensing and merchandising of these characters to generate direct revenue through sales.

 

Competitors and Market

 

Major competitors in this space are other family-focused animated entertainment producers. These include major studios such as Nickelodeon and Cartoon Network Elf Labs’ advantage in this area is their valuable IP library that contains some of the most recognized and marketable characters in animation, as well as technology partners that allow the Company to leverage these characters by building immersive experiences across multiple media channels. These competitors are also found operating in the other verticals that the issuer is pursuing business in, such as family-friendly immersive web content, sales of children’s merchandise, and child-appropriate mobile games.

 

 1 

 

 

Employees

 

The company consists of four full-time employees.

 

Regulation

 

Elf Labs owns the trademarks to our characters and IP and doesn’t foresee any changes to U.S. law affecting that.

 

Property

 

Elf Labs owns no physical property.

 

Intellectual Property

 

Elf Labs owns a substantial catalog of copyrights on characters from both the Junior Elf books as well as additional iterations of those characters developed by the issuer themselves. The total copyrights in the company’s portfolio stands at 435.

 

USA Copyrights

 

IP NAME   REG#
1001 Arabian Nights   VA 2-030-144
2008 Toon Characters   Vau 983-518
Abe the Auto   VA 2-046-646
Aladdin   VA 2-039-506
Alice In Wonderland style guide   Vau 001027714
American Rebel Toons Catalogue   VA 1-398-871
Blackbeard   VA 2-030-342
Blackbeard the Pirate   VA 2-030-318
Blue Bolt   VA 1-888-958
Bounce the Jeep   VA 1-888-956
Buddy the Little Taxi   VA 1-888-954
Captain Hook the Pirate   VA 2-029-865
Captain Hook   VA 2-030-350
Cars Deck   VA 2-005-396
Cars   VA 2-029-855
Cinderella   Vau 972-884
Dinoworld Deck   VA# PENDING
Dinosaurs of the Jurassic Period   Vau 1-358359
Dracula   VA 2-046-601
Fairy Tale Academy   TX 7-412-761
Fairy Tale Academy School of Performing Arts   VA 1-780-657
Fairy Tale Academy School of Performing Arts   VA 1-780-290
Fairytale Princess Green   Vau 1-023-021
Fairytale Princess logo   VA PENDING
Fairy Tale Rising Book One:Once Upoon a Zombie   VA 1-799-505

 

 2 

 

 

Famous Pirates of the World   VA 2-030-343
Final 2016 Princess Style Guide   VA 2-030-081
Frankenstein   VA 2-046-605
FTH Where Dreams Begin   VA 1-866-658
FTH Where Dreams Begin logo   VA 1-860-985
FTH Where Magic Happens   VA 1-872-002
Goldilocks   VA 2-046-656
Green Fairy Tales;Green Toons;Green Tales;Fairytale Green   Vau 1-017-084
Green Princess   Vau 1-023-021
Ice Princess Collection Snowqueen Hans Christian Andersen The Toon Studio   Vau 1-206-633
Itty Bitty Princess logo   VA 2-140-343
Itty Bitty The Little Mermaid   VA 2-169-698
Itty Bitty Cinderella   VA 2-169-696
Itty Bitty Snow White   VA 2-180-110
Itty Bitty Sleeping Beauty   VA 2-188-261
Itty Bitty Rapunzel   VA Pending
Itty Bitty Tinker Bell   VA Pending
Itty Bitty Belle   VA 2-169-695
J.M. Barries Peter Pan-A Junior Elf Book   Txu 2-275-839
Junior Elf Book-The Little Mermaid   Txu 2-275-687
Junior Elf Anime Characters Deck    
Junior Elf Fairytale Princess   VA 1-761-304
Lazy Automobile   VA 2-046-653
Little Fire Engine   VA 2-046-648
Little Mermaid   VA 2-046-668
Little Red Riding Hood   VA 2-046-643
Long John Silver the Pirate   VA 2-030-357
Long John Silver   VA 2-030-356
Mad Hatter   VA 2-046-630
New Wizard of Oz   VA 2-046-602
Orange Flame   VA 1-888-947
Original Cars Junior Elf Auto Club   Vau 1-026-786
Original Monsters Toon Studio   VA 2-057-178
Peter Pan   VA 2-030-139
Peter Rabbit   VA 2-005-402
Pinkerbell   VA 1-419-891
PINOCCHIO STYLE GUIDE   Vau 1-257-839
Pixie Chicks   VAu001021468
Pocahontas Toon Studio   VA 2-046-625
Pocahontas Toon Studio   VA 2-046-661
Pop Art Deck 2016   VA 2-046-687

 

 3 

 

 

Pop Art Hero Deck 2016   VA 2-046-686
Preschool Princess   VA 2-046-632
Props the Runaway Plane   VA 1-888-953
Puss & Boots   VA 2-046-681
Rapunzel   VA 1-874-875
Rebel Toons   Vau 1-001-136
Rebel Toons   Vau 972-125
Rebel Toons 2016   VA 2-057-094
Rebel Toons Catalogue Archive #2   Vau 748-350
Rebel Toons Catalogue Archive #4   Vau 753-929
Rebel Toons Catalogue Archive #5   Vau 953-868
Rebel Toons Catalogue Archive#3   Vau 749-005
Rebel Toons Catalogue of Characters   Vau 1-001-136
Rebel Toons Style Guide 2008   VA 1-669-595
Red Rocketor   VA-1-888-944
Robo Tinker Bell   VA 2-355-378
Robo Cinderella   VA 2-355-358
Robo Rapunzel   VA 2-355-359
Robo Sleeping Beauty   Serial # 98522681
Robo Snow Queen   VA 2-355-360
Robo Pinocchio   VA 2-355-361
Robo Snow White   VA 2-355-362
Robo Little Mermaid   VA 2-355-366
Robo Belle   VA 2-355-365
Robo Peter Pan   VA 2-355-379
Rudyard Kipling’s the Jungle book A Junior Elf Classic Book   Vau 1-257-841
Sleeping Beauty   Vau 969-061
Snow Queen Deck   VA 2-005-399
Snow White   Vau 969-072
Teen Alice   VA 1-872-003
Teen Belle   VA 1-872-007
Teen Cinderella   VA 1-872-009
Teen Little Mermaid   VA 1-872-001
Teen Peter Pan   VA 2-046-638
Teen Pinocchio   Vau 1-205-705
Teen Prince Charming   Vau 1-205-710
Teen Rapunzel   VA 1-872-013
Teen Sleeping Beauty   VA 1-872-010
Teen Snow White   VA 1-872-012
Teen Snow White   VA 1-874-877
Teen Tinker Bell   VA 1-872-048
Teen Wicked Witch   VA 1-872-005

 

 4 

 

 

Teenage Princess   VA 2-046-669
Teeny Toon Studio Royal Princesses   VA 2-046-628
Tenika The Princess and the Pea   VA 2-046-666
The Adventures of Pan in Neverland   VA 2-029-869
The Pixie Chicks;Sugar Plum Fairy, Tinkerbell, Tooth Fairy   Vau 1-026-798
Toddler Princess   Vau 1-310-174
The Jungle King Cub   Vau 1-347-522
The Jungle King   Vau 1-347-520
The Toon Studio Fairytale Princess   VA 2-046-670
The Toon Studio Fairytale Princess logo   VA 2-139-327
The Toon Studio Beauty & the Beast deck   VA 2-097-856
The Toon Studio of Beverly Hills   Vau 1-001-137
The Toon Studio Original Fairies   Vau 1-026-775
The Toon Studio Rapunzel -A Junior Elf Book    
Toon Studio’s Goldilocks   VA 2-046-656
The Tooth Fairy   VA 1-657-657
Tinker Bell in Pink   Vau 976-652
Toon Idol   Vau 752-871
Toon Studio Research and Development   Vau 1-446-200
Toon Studio of Beverly Hills 2008 Style Guide   VA 1-623-216
Toon Studio of Beverly Hills Catalogue Arch#1   Vau 953-876
Toon Studio of Beverly Hills Tinker Bell   Vau 972-883
Toon Studio’s Famous Pirates of the World   VA 2-030-343
Toon Studio of Original Fairies Sugar Plum Fairy   VA 1-657-656
Toon Studio-Junior Elf Arch#1   Vau 959-640
Volksy   VA 1-888-957
Volksy#2   VA 1-888-960
Werewolf   VA 2-046-608
Wonderful Wizard of OZ   Vau 1-257-840
Dia de Muertos Sleeping Beauty Day of the Dead   Vau 1-383-608
Dia de Meurtos Snow White Day of the Dead   Vau 1-383-608
Dia de Muertos Cinderella Day of the Dead   Vau 1-383-608
Toon Studio Fairy Tale Princess Original   03-2014-061912315200-01
The Toon Studio Princess Original   03-2013-090512504000-01
Original Cars Junior Elf Auto Club   03-2013-090512483200-01
Curvy Princess   Vau 1-430-888
Curvy Snow White   VAu 1-437-869
Curvy Cinderella   VAu 1-437-873
Curvy Sleeping Beauty   VAu 1-437-871
Crypto Princess   VA Pending
Crypto Sleeping Beauty   VAu 1-437-929
Crypto Snow White   VA Pending

 

 5 

 

 

Crypto Cinderella   VA Pending
Cyber Cinderella   VA 2-289-664
Cyber Sleeping Beauty   VA 2-289-657
Cyber Snow White   VA 2-289-666
Pixel Princess   Vau 1-437-692
Black Tooth Fairy   VAu 1-437-841
Black Sugar Plum   VAu 1-437-827
Black Tinker Bell   VAu 1-437-796
Black Sleeping Beauty   VAu 1-437-792
Black Cinderella   VAu 1-437-790
Black Snow White   VAu 1-437-789
Vampire Sleeping Beauty   Vau 1-444-089
Vampire Cinderella   Vau 1-444-091
Vampire Snow White   Vau 1-443-992
Christmas Sleeping Beauty   Vau 1-444-935
Christmas Cinderella   Vau 1-443-988
Christmas Snow white   Vau 1-443-989
Robot Little Mermaid   VAu 1-437-712
Robot Peter Pan   VAu 1-437-703
Robot Sleeping Beauty   VAu 1-437-699
Robot Cinderella   VAu 1-437-697
Robot Snow White   VAu 1-437-694
Pixel Cinderella   Vau 1-437-692
Pixel Sleeping Beauty   Vau 1-439-267
Pixel Snow White   Vau 1-439-274
Once Upon a Zombie   VA 1-817-012
Once Upon a Zombie Catalogue   VA 1-801-847
Once Upon a Zombie tm   VA 1-841-545
Once Upon a Zombie Princess tm   VA 1-907-518
Big Bad Zombie Wolf   Vau 1-214-399
ONCE UPON A ZOMBIE BOOK ONE: THE COLOR OF FEAR    
ONCE UPON A ZOMBIE BOOK TWO: THE LORD OF THE CURTAIN    
Z Machines Zombie Cars   VA 1-860-984
Zombie Alice   VA 1-908-208
Zombie Aladdin   VA 1-874-883
Zombie Belle   VA 1-908-212
Zombie Cars Character Art   VA 2-005-401
Zombie Cinderella   VA 1-908-206
Zombie Hansel & Gretel   VA 1-874-651
Zombie Little Mermaid   VA 1-907-527
Zombie Little Red Riding Hood   VA 1-874-874
Zombie Peter Pan   VA 1-907-526

 

 6 

 

 

Zombie Pocahontas   VA 1-907-525
Zombie Rapunzel   VA 1-907-520
Zombie sleeping Beauty   VA 1-908-211
Zombie Snow White   VA 1-907-523
Snow White Zombie   Vau 1-105-730
Zombie Tinker Bell   VA 1-907-529
Zombie Tinker Bell   VA 1-874-880

 

Literary Copyrights

 

Title   Copyright Date   Registration Number   Renewal Registration Number   Renewal Date   Copyright Expiration Year
Cinderella   10/15/1956   A00000259099   RE0000221527   Renewed in 1984   2051
Alice In Wonderland   1/15/1951   A0000053224   RE0000029510   Renewed in 1979   2046
Sleeping Beauty   7/21/1959   A00000405163   RE0000361385   Renewed in 1987   2054
Snow White and the Seven Dwarfs   12/28/1959   A00000428308   RE0000360553   Renewed in 1987   2054
Snow White and Rose-Red   2/15/1968   A972963   A972963   Autorenewed by U.S. Copyright Office   2062
Mary Had a Little Lamb   6/10/1955   A00000190582   RE0000178418   Renewed in 1983   2050
Hiawatha   8/29/1950   A0000048103   RE0000001941   Renewed in 1978   2045
The Freight Train   7/5/1956   A00000245823   RE0000221512   Renewed in 1984   2051
Little Red Riding Hood   1/15/1951   A00000053227   RE0000029513   Renewed in 1979   2046

 

 7 

 

 

Noah’s Ark   5/23/1952   A00000067564   RE0000074068   Renewed in 1980   2047
Pochahontas   5/10/1957   A00000285524   RE0000261330   Renewed in 1985   2052
Puss In Boots   6/10/1955   A00000197931   RE0000178423   Renewed in 1983   2050
Rumpelstiltskin   10/14/1959   A00000413714   RE0000360550   Renewed in 1987   2054
The Three Bears Visit Goldilocks   1/23/1951   A00000053229   RE0000029515   Renewed in 1979   2046
The Ugly Duckling   9/25/1959   A00000411322   RE0000360548   Renewed in 1987   2054
Humpty Dumpty and Other Mother Goose Rhymes   6/25/1952   A00000068500   RE0000074064   Renewed in 1980   2047
Jack and the Beanstalk   6/22/1951   A0000057184   RE000032708   Renewed in 1979   2046
Jack and the Beanstalk   7/1/1969   A91838   A91838   Autorenewed by U.S. Copyright Office   2064
Peter Rabbit   12/18/1953   A00000118602   RE0000104921   Renewed in 1981   2048
The Sleeping Beauty   12/26/1951   A00000062935   RE0000032720   Renewed in 1979   2046
The Gingerbread Man   5/17/1954   A00000140649   RE0000144143   Renewed in 1982   2049
Aesop’s Fables   10/9/1952   A00000071203   RE0000074074   Renewed in 1980   2047

 

 8 

 

 

Alphabet Walks   1973   A531847   A531847   Autorenewed by U.S. Copyright Office   2068
AMOS Learns to Talk: The Story of a Little Duck   1/23/1951   A00000053228   RE0000029514   Renewed in 1979   2046
Animal ABC Book   1/3/1964   A832900   A832900   Autorenewed by U.S. Copyright Office   2059
The Animal Show*                   2060
Baby Sister*                   2059
Bedtime Stories   4/18/1955   A00000183767   RE0000178415   Renewed in 1983   2050
Billy Whisker’s Twins   5/16/1956   A00000237678   RE0000221500   Renewed in 1984   2051
Billy’s Treasure   7/1/1972   A375778   A375778   Autorenewed by U.S. Copyright Office   2067
Bronto the Dinosaur*                   2062
Building a Skyscraper   1974   A531848   A531848   Autorenewed by U.S. Copyright Office   2068
The Bunny Twins*                   2059
The Busy Ants   1974   A531846   A531846   Autorenewed by U.S. Copyright Office   2068
The Busy Book   5/28/1952   A00000067565   RE0000074067   Renewed in 1980   2047

 

 9 

 

 

The Busy Bulldozer   6/23/1952   A00000068502   RE0000074063   Renewed in 1980   2047
The Cap That Mother Made   2/15/1968   A972966   A972966   Autorenewed by U.S. Copyright Office   2062
Chatterduck   2/15/1968   A972965   A972965   Autorenewed by U.S. Copyright Office   2062
Chester the Little Pony   7/13/1951   A00000057639   RE0000032713   Renewed in 1979   2046
The Children That Lived in A Shoe   7/13/1951   A00000057640   RE0000032714   Renewed in 1979   2046
Choo-Choo the Little Switch Engine   10/14/1954   A00000157506   RE0000144141   Renewed in 1982   2049
Copy-Kitten   7/15/1957   A00000308367   RE0000266774   Renewed in 1985   2052
Cowboy Eddie   6/20/1950   A00000045130   RE0000002792   Renewed in 1978   2045
Cowboys   2/10/1958   A324052   A324052   Autorenewed by U.S. Copyright Office   2053
Crosspatch   2/18/1964   A852071   A852071   Autorenewed by U.S. Copyright Office   2059
Crybaby Calf   4/3/1957   A00000282940   RE0000266760   Renewed in 1985   2052
Davy’s Little Horse   6/21/1956   A00000241843   RE0000221501   Renewed in 1984   2051
Early One Morning*                   2058

 

 10 

 

 

The Elves and The Shoemaker   6/12/1959   A00000394424   RE0000360541   Renewed in 1987   2054
The Emperor’s New Clothes   11/1/1968   A42778   A42778   Autorenewed by U.S. Copyright Office   2063
Farm Animals   4/2/1957   A00000284141   RE0000266759   Renewed in 1985   2052
Farm Babies   6/26/1956   A00000244728   RE0000221509   Renewed in 1984   2051
A Farm For Andy   7/20/1951   A00000057638   RE0000032712   Renewed in 1979   2046
The Farmer in the Dell   2/15/1968   A972964   A972964   Autorenewed by U.S. Copyright Office   2062
Freddie’s Private Cloud   8/1/1971   A308771   A308771   Autorenewed by U.S. Copyright Office   2066
From Tadpoles to Frogs   1974   A531844   A531844   Autorenewed by U.S. Copyright Office   2068
Funland Party   7/13/1953   A00000100102   RE0000104914   Renewed in 1981   2048
Fussbunny   11/28/1955   A00000213103   RE0000178427   Renewed in 1983   2050
A Garden is Good   9/23/1963   A852073   A852073   Autorenewed by U.S. Copyright Office   2058
Happy Holidays   11/30/1953   A00000116385   RE0000104920   Renewed in 1981   2048

 

 11 

 

 

Hey Diddle, Diddle and Other Nonsense Rhymes   6/21/1956   A00000241844   RE0000221502   Renewed in 1984   2051
Hide-Away Puppy   12/15/1952   A00000073781   RE0000074069   Renewed in 1980   2047
Homes in the City   1974   A531845   A531845   Autorenewed by U.S. Copyright Office   2068
The Honeybee   7/1/1972   A375779   A375779   Autorenewed by U.S. Copyright Office   2067
Hopaway Joey*                   2062
Jeepers the Little Frog*                   2060
Jo Jo   12/29/1964   A852072   A852072   Autorenewed by U.S. Copyright Office   2059
Johnny and the Birds   6/20/1950   A00000045129   RE0000002791   Renewed in 1978   2045
Johnny the Fireman   4/30/1954   A00000138020   RE0000144147   Renewed in 1982   2049
Larry the Canary   8/3/1959   A00000405159   RE0000360606   Renewed in 1987   2054
Let’s Grow Things*                   2062
The Lion and the Mouse   11/1/1968   A42777   A42777   Autorenewed by U.S. Copyright Office   2063
Little Cub Scout   12/29/1961   A851(illegible)   A851(illegible)   Autorenewed by U.S. Copyright Office   2059

 

 12 

 

 

Little Friends: Kittens, Puppies, Bunnies   12/26/1951   A00000062937   RE0000034403   Renewed in 1979   2046
Little Lost Kitten: Story of Williamsburg   7/2/1956   A00000243985   RE0000221506   Renewed in 1984   2051
The Little Mailman of Bayberry Lane   6/6/1952   A00000067956   RE0000074066   Renewed in 1980   2047
Little Majorette   6/15/1959   A00000399962   RE0000360546   Renewed in 1987   2054
Little Miss Muffet and Other Nursery Rhymes   12/10/1956   A00000263179   RE0000221528   Renewed in 1984   2051
Little Skater   12/7/1959   A00000421196   RE0000360618   Renewed in 1987   2054
Look For a Rainbow   6/1/1972   A375780   A375780   Autorenewed by U.S. Copyright Office   2067
Looking In and Other Poems   11/1/1968   A42773   A42773   Autorenewed by U.S. Copyright Office   2063
Lucinda the Little Donkey   12/15/1952   A00000073782   RE0000074073   Renewed in 1980   2047
Misty the Wonder Pony   6/26/1956   A00000244729   RE0000207325   Renewed in 1984   2051
Mommy Cat and Her Kittens   7/24/1959   A00000441638   RE0000360620   Renewed in 1987   2054

 

 13 

 

 

Mr. Bear’s House   6/3/1957   JP0000005406   RE0000260928   Renewed in 1985   2052
Muggins Becomes a Hero   10/10/1965   A846896   A846896   Autorenewed by U.S. Copyright Office   2060
Muggins’ Big Balloon   29-Dec   A852142   A852142   Autorenewed by U.S. Copyright Office   2059
Muggins Mouse   4/21/1964   A846897   A846897   Autorenewed by U.S. Copyright Office   2059
Muggins Takes Off   12/29/1964   A852144   A852144   Autorenewed by U.S. Copyright Office   2059
My Happy Day: A Word Book   7/24/1951   A00000057636   RE0000034402   Renewed in 1979   2046
Nancy Plays Nurse   8/6/1965   A846226   A846226   Autorenewed by U.S. Copyright Office   2060
Number 9 the Little Fire Engine   8/29/1950   A00000048102   RE0000001940   Renewed in 1978   2045
The Old Woman and Her Pig   10/9/1952   A00000071202   RE0000074075   Renewed in 1980   2047
Our Animal Friends   10/15/1956   A00000259097   RE0000221525   Renewed in 1984   2051
Our Auto Trip   6/16/1952   A00000067957   RE0000074065   Renewed in 1980   2047
Outdoor Fun   7/23/1953   A00000100447   RE0000104916   Renewed in 1981   2048

 

 14 

 

 

Parakeet Peter   3/31/1954   A00000132949   RE0000144149   Renewed in 1982   2049
Peaky Beaky*                   2062
People Who Work at Night   1974   A531838   A531838   Autorenewed by U.S. Copyright Office   2068
Pets   3/31/1954   A00000132948   RE0000144150   Renewed in 1982   2049
Pillowtime Tales   10/15/1956   A00000239098   RE0000221526   Renewed in 1984   2051
Plump Pig   7/2/1956   A00000243987   RE0000221507   Renewed in 1984   2051
Pocahontas - A Little Indian Girl of Jamestown   5/10/1957   A00000285524   RE0000261330   Renewed in 1985   2052
Pokey Bear   4/16/1965   A852070   A852070   Autorenewed by U.S. Copyright Office   2060
The Pony Twins   2/18/1964   A852075   A852075   Autorenewed by U.S. Copyright Office   2059
Popcorn Party   1/20/1953   A00000079519   RE0000082086   Renewed in 1980   2047
Prayers and Graces For A Small Child   4/18/1955   A00000183768   RE0000178416   Renewed in 1983   2050
A Present For the Princess   5/4/1959   A00000389607   RE0000360582   Renewed in 1987   2054

 

 15 

 

 

Princess and the Pea   12/29/1965   A854471   A854471   Autorenewed by U.S. Copyright Office   2060
Pudgy the Little Bear   7/15/1948   A24131   A24131   Autorenewed by U.S. Copyright Office   2059
Puppies to Love   8/1/1971   A308770   A308770   Autorenewed by U.S. Copyright Office   2066
Read Me Some Poems   11/1/1968   A42774   A42774   Autorenewed by U.S. Copyright Office   2063
A Rocket For A Cow*                   2060
Santa’s Rocket Sleigh   5/22/1957   A00000288597   RE0000266764   Renewed in 1985   2052
The Seven Wonderful Cats   8/22/1956   A00000250650   RE0000221514   Renewed in 1984   2051
The Smart Little Mouse   8/29/1950   A00000048104   RE0000002800   Renewed in 1978   2045
Sparky the Fire Dog   12/9/1954   A00000164876   RE0000144138   Renewed in 1982   2049
Stories of the Christ Child   7/23/1953   A00000100446   RE0000111702   Renewed in 1981   2048
The Story of David*                   2060
The Story of Joseph   8/4/1965   A852078   A852078   Autorenewed by U.S. Copyright Office   2060
Surprise!   12/10/1956   A00000263454   RE0000221529   Renewed in 1984   2051

 

 16 

 

 

The Teddy Bear Twins   4/16/1965   A846219   A846219   Autorenewed by U.S. Copyright Office   2060
Teddy the Terrier   8/22/1956   A00000250649   RE0000221513   Renewed in 1984   2051
The Ten Commandments for Children   6/26/1956   A00000244730   RE0000221511   Renewed in 1984   2051
Three Little Bunnies   8/29/1950   A00000048101   RE0000002799   Renewed in 1978   2045
Three Little Puppies   2/7/1951   A00000053338   RE0000029516   Renewed in 1979   2046
Time For Everything   6/1/1972   A375781   A375781   Autorenewed by U.S. Copyright Office   2065
Timothy Tiger   8/3/1959   A00000405160   RE0000360607   Renewed in 1987   2054
A Trip in Space   11/1/1968   A42776   A42776   Autorenewed by U.S. Copyright Office   2063
Tubby Turtle   8/3/1959   A00000405161   RE0000360608   Renewed in 1987   2054
Turtles Turn Up on Tuesday   6/1/1972   A375782   A375782   Autorenewed by U.S. Copyright Office   2065
The Twenty-Third Psalm   9/28/1964   A852145   A852145   Autorenewed by U.S. Copyright Office   2059
Volksy the Little Yellow Car   1/13/1965   A840989   A840989   Autorenewed by U.S. Copyright Office   2060

 

 17 

 

 

When God Imagined A World   9/28/1964   A840990   A840990   Autorenewed by U.S. Copyright Office   2059
Who Wants a Pop Can Park?   1/1/1972   A575777   A575777   Autorenewed by U.S. Copyright Office   2067
Wild Animals   12/26/1951   A00000064874   RE0000032723   Renewed in 1979   2047
Alexander Kitten   1/2/1959   A00000372038   RE0000360580   Renewed in 1987   2054
All Around the City   4/1/1968   A985030   A985030   Autorenewed by U.S. Copyright Office   2062
The Animal Fair   3/23/1964   A843269   A843269   Autorenewed by U.S. Copyright Office   2059
Animal Mysteries   7/1/1971   A263026   A263026   Autorenewed by U.S. Copyright Office   2066
The Animals at the Seashore*                   2061
Animals Talk to Me*                   2061
The Animals Bus Ride   9/8/1965   A843267   A843267   Autorenewed by U.S. Copyright Office   2060
The Animals Tea Party   4/16/1965   A843266   A843266   Autorenewed by U.S. Copyright Office   2060
The Animals Train Ride   12/18/1953   A00000118604   RE0000104923   Renewed in 1981   2048

 

 18 

 

 

The Baby Animal Zoo   7/1/1971   A263025   A263025   Autorenewed by U.S. Copyright Office   2066
Baby’s Own Mother Goose   7/1/1969   A91834   A91834   Autorenewed by U.S. Copyright Office   2064
Backyard Circus   2/1/1968   A968226   A968226   Autorenewed by U.S. Copyright Office   2062
The Bears’ Picnic   5/17/1954   A00000140647   RE0000144145   Renewed in 1982   2049
Benjie Engie   8/21/1950   A00000047288   RE0000002794   Renewed in 1978   2045
Beth’s Happy Day*                   2061
The Big Red Apple   7/1/1969   A91829   A91829   Autorenewed by U.S. Copyright Office   2063
Bobby’s Magic Blanket   1974   A531842   A531842   Autorenewed by U.S. Copyright Office   2068
Captain Kitty   6/16/1951   A00000057183   RE0000032707   Renewed in 1979   2046
Davy Deer’s New Red Scarf*                   2061
The Disposal Truck   7/1/1969   A91833   A91833   Autorenewed by U.S. Copyright Office   2064
Dolls From Many Lands   7/1/1975   A690299   A690299   Autorenewed by U.S. Copyright Office   2070

 

 19 

 

 

The Elves and the Shoemaker*                   2061
Farm Animals*                   2061
Farm Pets   5/17/1954   A00000140648   RE0000144144   Renewed in 1982   2049
Feathered Friends   7/15/1957   A00000308365   RE0000266773   Renewed in 1985   2052
Feeding Time at the Zoo   7/1/1971   A263021   A263021   Autorenewed by U.S. Copyright Office   2066
Fire Fighters   7/1/1971   A262822   A262822   Autorenewed by U.S. Copyright Office   2066
Fireman Joe   6/15/1959   A00000395628   RE0000360585   Renewed in 1987   2054
Five Beds For Bitsy   1/15/1951   A00000053226   RE0000029512   Renewed in 1979   2046
The Flying Sandbox   12/29/1952   A00000097367   RE0000074072   Renewed in 1980   2047
The Giant’s Shoe   2/1/1968   A968225   A968225   Autorenewed by U.S. Copyright Office   2062
Hickory Dickory Dock   3/24/1964   A843270   A843270   Autorenewed by U.S. Copyright Office   2059
Hide-Away Animals   7/15/1957   A00000308364   RE0000266772   Renewed in 1985   2052
Hoppity Skip   7/1/1971   A262824   A262824   Autorenewed by U.S. Copyright Office   2066

 

 20 

 

 

How Chicks are Born   4/1/1968   A985029   A985029   Autorenewed by U.S. Copyright Office   2062
How Seeds Travel*                   2071
Humpty Dumpty and Other Mother Goose Rhymes   6/25/1952   A00000068500   RE0000074064   Renewed in 1980   2047
I Like   9/1/1965   A851700   A851700   Autorenewed by U.S. Copyright Office   2060
I Once Knew*                   2062
Jack and the Beanstalk   6/22/1951   A00000057184   RE0000032708   Renewed in 1979   2046
Jack Sprat                   2063
Johnny’s Secret       A690288   A690288   Autorenewed by U.S. Copyright Office   2070
Kittens   7/23/1953   A00000100443   RE0000105638   Renewed in 1981   2048
Let’s Find Koala Bears   7/1/1969   A91832   A91832   Autorenewed by U.S. Copyright Office   2064
Let’s Read About Rocks   7/1/1969   A91837   A91837   Autorenewed by U.S. Copyright Office   2064
Little Bird   5/26/1964   A851703   A851703   Autorenewed by U.S. Copyright Office   2059

 

 21 

 

 

Little Bo-Peep   8/11/1966   A864433   A864433   Autorenewed by U.S. Copyright Office   2061
Little Boy Blue’s Horn   4/26/1965   A851705   A851705   Autorenewed by U.S. Copyright Office   2060
Little Donkey   5/26/1964   A851708   A851708   Autorenewed by U.S. Copyright Office   2059
Little Elephant   6/15/1959   A00000395629   RE0000360605   Renewed in 1987   2054
Little Lamb’s Hat   12/29/1952   A00000097368   RE0000074071   Renewed in 1980   2047
The Little Red Boot*                   2061
Little Toy Train   9/2/1965   A851710   A851710   Autorenewed by U.S. Copyright Office   2060
Look! A Parade*                   2061
The Magician’s Counting Book   1974   A531837   A531837   Autorenewed by U.S. Copyright Office   2068
Mailman Mike   1/2/1959   A00000372039   RE0000360581   Renewed in 1987   2054
Me Myself and God*                   2060
A Moth is Born   4/1/1968   A985036   A985036   Autorenewed by U.S. Copyright Office   2062
Mr. Flopears   7/1/1969   A91840   A91840   Autorenewed by U.S. Copyright Office   2064

 

 22 

 

 

The Mulberry Bush   7/1/1969   A91831   A91831   Autorenewed by U.S. Copyright Office   2064
My Birthday Book*                   2062
My Cowboy Book   4/1/1968   A985032   A985032   Autorenewed by U.S. Copyright Office   2062
My First Picture Book of Christmas Carols*                   2074
My Indian Book   7/1/1969   A91830   A91830   Autorenewed by U.S. Copyright Office   2063
My Magic Telephone   (illegible)   A690292   A690292   Autorenewed by U.S. Copyright Office   2070
My Oak Tree   1974   A531839   A531839   Autorenewed by U.S. Copyright Office   2068
Nubbins and the Tractor   12/26/1951   A00000062936   RE0000032721   Renewed in 1979   2046
Peek-A-Boo and Other Games for Toddlers   5/4/1965   A851709   A851709   Autorenewed by U.S. Copyright Office   2060
The Pet Parade   7/1/1969   A91839   A91839   Autorenewed by U.S. Copyright Office   2064
Peter and His Prayers   6/30/1966   A852074   A852074   Autorenewed by U.S. Copyright Office   2061

 

23
 

 

A Picnic in the Park   1974   A531840   A531840   Autorenewed by U.S. Copyright Office   2068
Pillowtime Tales   10/15/1956   A00000259098   RE0000221526   Renewed in 1984   2051
Raggedy Goat and Other Verses   4/1/1968   A985034   A985034   Autorenewed by U.S. Copyright Office   2062
Road Builders*                   2071
Seashells For Katy and Andy   1974   A531841   A531841   Autorenewed by U.S. Copyright Office   2068
The Sleeping Tree Mystery   (illegible)   A690291   A690291   Autorenewed by U.S. Copyright Office   2070
The Sparrows’ Nest   7/1/1969   A91835   A91835   Autorenewed by U.S. Copyright Office   2064
The Story of Old King Cole   7/1/1975   A4690291   A4690291   Autorenewed by U.S. Copyright Office   2070
Teeny Teeny Tiny Giraffe   (illegible)   A690290   A690290   Autorenewed by U.S. Copyright Office   2070
A Thousand Candy Santas*                   2072
Tie My Shoe   4/7/1964   A833279   A833279   Autorenewed by U.S. Copyright Office   2059
Time for a Rhyme*                   2061

 

24
 

 

Timmy Mouse   6/22/1951   A00000057186   RE0000032710   Renewed in 1979   2046
Tommy’s Tooth   4/1/1968   A985031   A985031   Autorenewed by U.S. Copyright Office   2062
The Town Mouse and the Country Mouse   1974   A531838   A531838   Autorenewed by U.S. Copyright Office   2068
The Treasure Trunk   4/1/1968   A985033   A985033   Autorenewed by U.S. Copyright Office   2062
A Walk in the Zoo   7/1/1971   A263023   A263023   Autorenewed by U.S. Copyright Office   2066
A Walk with Grandpa   2/1/1968   A968227   A968227   Autorenewed by U.S. Copyright Office   2062
What Are Daisies For?   7/1/1975   A690295   A690295   Autorenewed by U.S. Copyright Office   2070
What Can I Do?   4/10/1961   A495739   A495739   Autorenewed by U.S. Copyright Office   2066
What’s in the Bakery Truck   4/1/1968   A985035   A985035   Autorenewed by U.S. Copyright Office   2062
Buddy the Little Taxi   09.17.2021   TX 9-015-623       Active   Life of Author + 70 years
The Pixie Chicks: Sugar Plum Fairy, Tinker Bell, The Tooth Fairy   09.17.2021   TX 9-036-413       Active   Life of Author + 70 years

 

25
 

 

The Jungle Book   09.17.2021   TX 9-015-608       Active   Life of Author + 70 years
Beauty and the Beast   09.17.2021   TX 9-015-605       Active   Life of Author + 70 years
Snow Queen: A Tale of Ice and Snow   09.17.2021   TX 9-015-600       Active   Life of Author + 70 years
The Snow Maiden   09.17.2021   TX 9-015-594       Active   Life of Author + 70 years
Rapunzel   8/28/2021   TXu002275811       Active   Life of Author + 70 years
The Little Mermaid   8/22/2021   Txu002275687       Active   Life of Author + 70 years
Snow Queen   09.17.2021   TX 9-015-589       Active   Life of Author + 70 years

 

Registered Trademarks

 

The company has 150 trademarks in its library, with 120 registered and 30 pending approval from the USPTO.

 

Serial Number   Registration Number   Word Mark   Country
             
BRAND: ONCE UPON A ZOMBIE            
             
86773329   5200789   ZOMBIE SNOW QUEEN   USA
             
86615107   5125073   ZOMBIE PRINCE CHARMING   USA
             
86564392   5091935   ZOMBIE PINOCCHIO   USA
             
86483048   4906077   HAUNTINGLY BEAUTIFUL   USA

 

26
 

 

86623018   5209891   ZOMBIE TINKER BELL   USA
             
86382352   4727063   ONCE UPON A ZOMBIE   USA
             
90802145   6686744   ONCE UPON A ZOMBIE   USA
             
85978984   4403514   ONCE UPON A ZOMBIE   USA
             
86256629   4634365   ZOMBIE PRINCESS   USA
             
85723001   4956152   ZOMBIE ALICE   USA
             
85706113   4822434   ZOMBIE CINDERELLA   USA
             
85706110   4822433   ZOMBIE SNOW WHITE   USA
             
86533016   5,209,891   ZOMBIE TINKER BELL   USA
             
85706104   4752257   ZOMBIE SLEEPING BEAUTY   USA
             
85723011   4552398   ZOMBIE PRINCESS   USA
             
85723009   4463715   ZOMBIE LITTLE MERMAID   USA
             
85723007   4475860   ZOMBIE BELLE   USA
             
85722997   5027339   ZOMBIE RAPUNZEL   USA
             
88097813   5721397   ZOMBIE PETER PAN   USA
             
97205968       ZOMBIE WINNIE THE POOH   USA
             
    1170172   ONCE UPON A ZOMBIE   EUROPE
             
    1194946   ZOMBIE PRINCESS   EUROPE

 

27
 

 

    1194947   ONCE UPON A ZOMBIE   RUSSIA
             
    1227371   ZOMBIE CINDERELLA   EUROPE
             
    1227372   ZOMBIE SNOW WHITE   EUROPE
             
    1194946   ZOMBIE PRINCESS   EUROPE
             
    1227373   ZOMBIE SLEEPING BEAUTY   EUROPE
             
    1453966   PRINCESAS ZOMBIE WORD MARK   MEXICO
             
    1453162   ONCE UPON A ZOMBIE WORD   MEXICO
             
    1686778   ONCE UPON A ZOMBIE   MEXICO
             
    1702553   ONCE UPON A ZOMBIE & DESIGN   MEXICO
             
906570620       ONCE UPON A ZOMBIE WORD   BRAZIL
             
906570662       ONCE UPON A ZOMBIE WORD   BRAZIL
             
905570743       ONCE UPON A ZOMBIE WORD   BRAZIL
             
906570522       ONCE UPON A ZOMBIE   BRAZIL
             
BRAND: TEENAGE PRINCESS            
             
BRAND: FAIRY TALE HIGH            

 

28
 

 

86564390   5,120,074   TEEN PRINCE CHARMING   USA
             
86533027   4989621   TEEN CINDERELLA   USA
             
86533022   4989620   TEEN SNOW WHITE   USA
             
86564389   5,166,959   TEEN PINOCCHIO   USA
             
86533005   4989619   TEEN SLEEPING BEAUTY   USA
             
86532994   5115108   TEEN PETER PAN   USA
             
87295587   5,265,227   TEEN POCAHONTAS   USA
             
85846823   4745896   TEEN RAPUNZEL   USA
             
85691066   4268360   TEEN SNOW   USA
             
85690747   4268359   TEEN BEAUTY   USA
             
85690744   4298259   TEEN CINDY   USA
             
85918615   4461610   TEEN WICKED WITCH   USA
             
85846819   4392310   TEEN BELLE   USA
             
85831049   4395776   TEEN ALICE   USA
             
87353364   5290599   TEENY TOON STUDIO ROYAL PRINCESS   USA
             
86377060   4716036   TEENAGE PRINCESS   USA
             
85541877   4190802   TEENAGE PRINCESS   USA
             
85507516   4197676   TEENAGE PRINCESS   USA

 

29
 

 

86078938   4633898   TEENAGE PRINCESS   USA
             
90831698   6693994   TEEN LITTLE MERMAID   USA
             
86093668   4804650   FAIRY TALE HIGH   USA
             
86019783   4614901   FAIRY TALE HIGH   USA
             
85695916   4264759   FAIRY TALE HIGH   USA
             
    1662003   Fairy Tale High   MEXICO
             
    1444101   Fairy Tale High logo   MEXICO
             
    1702552   Fairy Tale High Where Magic Happens & design poses   MEXICO
             
    1444100   Fairy Tale High Where Magic Happens logo   MEXICO
             
    223772-01   Fairy Tale High   PANAMA
             
BRAND: JUNIOR ELF AND TOON STUDIO FAIRY TALE PRINCESS            
             
85824006   4410281   JUNIOR ELF FAIRYTALE PRINCESS   USA
             
77662670   4056676   JUNIOR ELF FAIRYTALE PRINCESS   USA
             
87273325       FAIRYTALE PRINCESS LOGO   USA
             
87273335       FAIRYTALE PRINCESS MASTHEAD   USA

 

30
 

 

90642415   7183537   CINDERELLA PICTURE PLAY RECORDS.PR7B THE RECORD GUILD OF AMERICA INC, NEW YORK 18,N.Y.   USA
             
    1415522   Junior Elf Fairy Tale Princess   MEXICO
             
    1662001   Junior Elf Fairy Tale Princess   MEXICO
             
    903786591   Junior Elf Fairy tale Princess & design   BRAZIL
             
    202374-01   Junior Elf Fairytale Princess (& Design)   PANAMA
             
    903787180   The Toon Studio Princess Original & design   BRAZIL
             
    8906978   Toon Studio Princess Original & logo   CHINA
             
    1415523   The Toon Studio Fairy Tale Princess&Design   MEXICO
             
    1702556   The Toon Studio Princess Original & design   MEXICO
             
    1392992   The Toon Studio Princess Original &design   MEXICO
             
    1662004   Toon Studio Princess Original   MEXICO
             
    999996   Toon Studio Fairy Tale Princess   MEXICO
             
    202376-01   The Toon Studio Princess Original &design   PANAMA
             
    226571-01   The Toon Studio Princess Original &design   PANAMA
             
BRAND: JUNIOR ELF ORIGINAL CARS            

 

31
 

 

    3801626   ORIGINAL CARS JUNIOR ELF AUTO CLUB   USA
             
77505846   5,441,070   BUDDY THE LITTLE TAXI TAXI   USA
             
87176137       JUNIOR ELF ORIGINAL CARS LOGO   USA
97147195   903786729   Original Cars Junior Elf Auto club & design   BRAZIL
             
    1428408   Original Cars & design   MEXICO
             
    1389030   Original Cars Junior Elf Auto Club & design   MEXICO
             
    202378-01   Original Cars Junior Elf Auto Club & design   PANAMA
             
    226573-01   Original Cars Junior Elf Auto Club & design   PANAMA
             
BRAND: ZOMBIE CARS            
             
86015984   5,161,351   ZOMBIE CARS   USA
             
22559196       ZOMBIE CARS   CHINA
             
BRAND: THE TOON STUDIO OF BEVERLY HILLS            
             
77351843   3471897   THE TOON STUDIO OF BEVERLY HILLS   USA

 

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77886261   3824399   THE TOON STUDIO OF BEVERLY HILLS   USA
             
    903786982   The Toon Studio of Beverly Hills   BRAZIL
             
    8906977   The Toon Studio of Beverly Hills   CHINA
             
    1217951   Toon Studio of Beverly Hills   MEXICO
             
    202373-01   The Toon Studio of Beverly Hills   PANAMA
             
BRAND: ORIGINAL FAIRIES            
             
77662074   3809067   ORIGINAL FAIRIES   USA
             
87425218   5,323,851    ORIGINAL FAIRIES   USA
             
    903787148   Original Fairies & design   BRAZIL
             
    9192243   Original Fairies & design   CHINA
             
    21254866   Original Fairies & design   CHINA
             
    1419092   Original Fairies & design   MEXICO
             
    202372-01   Original Fairies & design   PANAMA
             
BRAND: LITTLE MERMAID            

 

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77645931   3838651   LITTLE MERMAID   USA
             
BRAND: SNOW QUEEN            
             
86886490   5,079,718   THE SNOW QUEEN   USA
             
86905361   5,277,265   THE SNOW QUEEN   USA
             
86597473   5,097,293   THE SNOW QUEEN   USA
             
86496765   5064887    SNOW MAIDEN   USA
             
86567841   5,096,203   ICE PRINCESS COLLECTION SNOWQUEEN HANS CHRISTIAN ANDERSEN-THE TOON STUDIO   USA
             
88468688   5,971,526   ICE PRINCESS COLLECTION SNOWQUEEN HANS CHRISTIAN ANDERSEN-THE TOON STUDIO   USA
             
    909195978   Snow Queen the Toon Studio   BRAZIL
             
    909196060   Snow Queen the Toon Studio   BRAZIL
             
    1702555   Snow Queen & Design   MEXICO
             
    1662002   The Snow Queen   MEXICO
             
    239691-01   Snow Queen the Toon Studio   PANAMA
             
BRAND: PRESCHOOL PRINCESS            

 

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86850977   5,147,893   PRE-SCHOOL PRINCESS   USA
             
BRAND: POP ART PRINCESS            
             
86944569   5,111,319   POP ART PRINCESS   USA
             
    1702554   Pop Art Princess   MEXICO
             
BRAND: JUNIOR ELF BOOK            
             
87131288   5,170,391   JUNIOR ELF BOOKS   USA
             
86247513   4605616   JUNIOR ELF BOOK   USA
             
87243591   5,228,097   JUNIOR ELF   USA
             
BRAND: ALADDIN            
             
87173838   5,268,008   1001 ARABIAN NIGHTS   USA
    21254861   The Flying Carpet logo   CHINA

 

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BRAND: PIRATES: CAPTAIN HOOK, LONG JOHN SILVER, BLACKBEARD            
             
87179054   5,498,542   FAMOUS PIRATES OF THE WORLD   USA
             
BRAND: BEAUTY & THE BEAST            
             
87385221   5286334   BEAUTY & THE BEAST   USA
             
BRAND: PETER PAN            
             
87186250   6,396,790   THE ADVENTURES OF PAN IN NEVERLAND   USA
             
BRAND: DAY OF THE DEAD PRINCESS            
             
88684476       DIA DE MUERTOS SLEEPING BEAUTY DAY OF THE DEAD   USA
             
88684470       DIA DE MUERTOS CINDERELLA DAY OF THE DEAD   USA
             
88684474       DIA DE MUERTOS SNOW WHITE DAY OF THE DEAD   USA

 

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97593728       DIA DE MUERTOS PRINCESA   USA
             
BRAND: DINOSAURS OF THE JURASSIC PERIOD            
             
    21254863   Dinosaurs of the Jurassic Period word mark   CHINA
             
BRAND: CYBER PRINCESS            
             
97247242       CYBER SNOW WHITE   USA
             
97247231       CYBER SLEEPING BEAUTY   USA
             
97247222       CYBER CINDERELLA   USA
             
97248858       NEVER NEVER LAND, SECOND REALM TO THE RIGHT   USA
97247252       THE ENCHANTED FOREST   USA
             
97247261       OZ, SOMEWHERE OVER THE RAINBOW   USA
             
97247315       WONDERLAND, WE’RE ALL MAD HERE   USA
             
BRAND: ROBOSTARS            
             
98018483       ROBO BELLE   USA

 

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98018472       ROBO LITTLE MERMAID   USA
             
98018465       ROBO SNOW WHITE   USA
             
98018456       ROBO RAPUNZEL   USA
             
98018481       ROBO PINOCCHIO   USA
             
98018476       ROBO SNOW QUEEN   USA
             
98018467       ROBO CINDERELLA   USA
             
98018460       ROBO PETER PAN   USA
             
98018448       ROBO TINKER BELL   USA
             
98018487       ROBOSTARS   USA

 

Perks

 

Tier-Based Perks

 

Investors in this Offering will have the ability to earn bonus shares of the company’s Class B Common Stock. The percentage of bonus shares available to an investor will change based on how many shares have already been issued through the Offering. The below table indicates the available bonuses percentages for the amount of cumulative shares issued:

 

Bonus Tier   Time Period   Bonus Shares
Private Live   First one (1) to fourteen (14) days   20%
Bonus Tier 1   First fifteen (15) to twenty-eight (28) days   15%
Bonus Tier 2   First twenty-nine (29) to forty-two (42) days   10%
Bonus Tier 3   First forty-three (43) to fifty-six (56) days   5%

 

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Notes on Bonus Tiers:

 

The Private Live bonuses begin on the SEC Accepted Date.

 

a)All time periods begin at the conclusion of the previous period and end at 11:59pm eastern time (3:59 am Coordinated Universal Time (“UTC”)). By way of example, “Private Live” begins on the SEC Accepted Date and ends at 11:59pm eastern time fourteen days later.

 

b)The Company is not issuing partial shares. Any calculation of bonus shares to be issued, whose product reflects the issuance of a partial share, will be rounded down, to the nearest whole share and issued to the Purchaser at the close of the Offering.

 

Volume-Based Perks

 

Investors in this Offering can also earn bonus shares if they invest above a certain dollar amount. The below table indicates the available bonus percentages:

 

Dollar Amount   Shares   Bonus Shares  

Non-Equity Perks

$2,000 or more   1,000 or more   5%    
$5,000 or more   2,500 or more   10%    
$10,000 or more   5,000 or more   15%    
$25,000 or more   12,500 or more   20%   Personalized Animation Message and invitation to an exclusive investor meetings
$100,000 or more   50,000 or more   40%    
$250,000 or more   125,000 or more   40%   Executive Producer credit on one Elf Labs Production

 

Repeat Investor Perks

 

Investors can also earn 10% bonus shares if they invest multiple times in this Offering.

 

Volume-based perks do not stack with time-based perks in this round. If someone invests and is eligible for both a time-based and volume-based perk, they will receive the greater of the two bonuses. The repeat investor perk does stack with both time-based and volume-based perks. This makes 50% the highest available bonus % for an investor, which could be earned if an existing investor in the round invests $100,000 or more as their second investment.

 

RISK FACTORS

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

 

We are expanding into content creation, a field in which we have limited experience

 

As we look to capitalize on the strength of our characters and develop ourselves as a new brand, we are working to develop content across several media platforms. While we have successfully leveraged our existing copyrights to generate revenue through licensing fees, content creation is a new field for us, and comes with the potential for unforeseen challenges as we work to develop our original series, website, and mobile game applications.

 

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Our products are in development and have not yet been completed

 

Our development of new media featuring our characters is currently in development and has not been completed. There is the risk of unforeseen delays to production slowing down our timeline, which can delay our path to profitability. These same risks exist as we work to develop our website and mobile gaming applications as well.

 

We may need to raise additional capital, which might not be available or might be available only on terms unfavorable to us or our investors.

 

In order to continue to operate and grow the business, we will likely need to raise additional capital beyond this current financing round by offering shares of our Common or Preferred Stock and/or other classes of equity. We cannot assure you that the necessary funds will be available on a timely basis, on favorable terms, or at all, or that such funds, if raised, would be sufficient. The level and timing of future expenditure will depend on a number of factors, many of which are outside our control. If we are not able to obtain additional capital on acceptable terms, or at all, we may be forced to curtail or abandon our growth plans, which could adversely impact the Company, its business, development, financial condition, operating results or prospects.

 

We rely on a small management team to execute our business plan, and may be required to raise additional capital in order to continue to develop our technology and continue to scale our platform.

 

Our senior management team is currently small and consists of only two members, David and Billy Phillips. CEO David Phillips’s and Chairman Billy Phillips’ experience and connections in the entertainment industry are vital for us to both grow as a company and to raise funds. Without them, we would struggle to navigate the industry and expand our product and licensing library. Additionally, we rely on David and Billy to help raise funds for the Company until we are generating significant revenue to cover our costs and growth plans. As we continue to grow and scale our product, we might be required to raise debt or equity financing in order to develop our platform and effectively scale our product to meet demand.

 

We are relying on the existing strength of our IP to attract consumers to our products

 

We are reliant on how much our characters resonate with the global audience. While this is a reasonable assumption, shifts in perceptions of these characters, which is a factor outside of the control of the company, could potentially have a negative impact on the strength and attractiveness of our products and our character library to consumers.

 

Our failure to attract and retain highly qualified personnel in the future could harm our business.

 

As the Company grows, it will be required to hire and attract additional qualified professionals such as software engineers, machine learning experts, project managers, regulatory professionals, sales and marketing professionals, accounting, legal, and finance experts. The Company may not be able to locate or attract qualified individuals for such positions, which will affect the Company’s ability to grow and expand its business.

 

Risks Related to the Securities in this Offering

 

There is no current market for any shares of the Company’s stock.

 

There is no formal marketplace for the resale of any of the Company’s Common Stock. Shares of Common Stock may be traded on the over-the-counter market to the extent any demand exists. Investors should assume that they may not be able to liquidate their investment for some time or be able to pledge their shares as collateral. The Company currently has no plans to list any of its shares on any OTC or similar exchange.

 

Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under the agreement.

 

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Investors in this offering will be bound by the subscription agreement, which includes a provision under which investors waive the right to a jury trial of any claim they may have against the Company arising out of or relating to the agreement, including any claims made under the federal securities laws. By signing the agreement, the investor warrants that the investor has reviewed this waiver with his or her legal counsel, and knowingly and voluntarily waives the investor’s jury trial rights following consultation with the investor’s legal counsel.

 

If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by a federal court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of Delaware, which governs the agreement, by a federal or state court in the State of New York. In determining whether to enforce a contractual pre-dispute jury trial waiver provision, courts will generally consider whether the visibility of the jury trial waiver provision within the agreement is sufficiently prominent such that a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to the subscription agreement. You should consult legal counsel regarding the jury waiver provision before entering into the subscription agreement.

 

If you bring a claim against the Company in connection with matters arising under the agreement, including claims under the federal securities laws, you may not be entitled to a jury trial with respect to those claims, which may have the effect of limiting and discouraging lawsuits against the Company. If a lawsuit is brought against the Company under the agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have had, including results that could be less favorable to the plaintiff(s) in such an action.

 

Nevertheless, if the jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms of the agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of the Company’s securities or by the Company of compliance with any substantive provision of the federal securities laws and the rules and regulations promulgated under those laws.

 

In addition, when the shares are transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to the shares or to the transferor with regard to ownership of the shares, that were in effect immediately prior to the transfer of the shares, including but not limited to the subscription agreement.

 

Using a credit card to purchase shares may impact the return on your investment as well as subject you to other risks inherent in this form of payment.

 

Investors in this offering have the option of paying for their investment with a credit card, which is not usual in the traditional investment markets. Transaction fees charged by your credit card company (which can reach 5% of transaction value if considered a cash advance) and interest charged on unpaid card balances (which can reach almost 25% in some states) add to the effective purchase price of the shares you buy. See “Plan of Distribution and Selling Securityholders.” The cost of using a credit card may also increase if you do not make the minimum monthly card payments and incur late fees. Using a credit card is a relatively new form of payment for securities and will subject you to other risks inherent in this form of payment, including that, if you fail to make credit card payments (e.g. minimum monthly payments), you risk damaging your credit score and payment by credit card may be more susceptible to abuse than other forms of payment. Moreover, where a third-party payment processor is used, as in this offering, your recovery options in the case of disputes may be limited. The increased costs due to transaction fees and interest may reduce the return on your investment.

 

The SEC’s Office of Investor Education and Advocacy issued an Investor Alert dated February 14, 2018 entitled: Credit Cards and Investments – A Risky Combination, which explains these and other risks you may want to consider before using a credit card to pay for your investment.

 

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DIRECTORS, EXECUTIVE OFFICERS AND EMPLOYEES

 

This table shows the principal people on the company’s team:

 

Name   Position   Term of Office  

Approx. hours per week

(if not full time)

Executive Officers:
David Phillips   CEO   2023-Present   Full-time
Billy Phillips   Chairman and CCO   2006-Present   Full-time
Directors:
David Phillips   Director   2023-Present   5
Billy Phillips   Director   2006-Present   5

 

David Phillips

 

David Phillips is an accomplished entrepreneur and business leader, with a proven track record of success in multiple industries. He is the CEO of Elf Labs and began serving in that role in January, 2023. Elf Labs (previously Toon Studio) focuses on entertaining and enlightening through immersive entertainment, gaming, and consumer product licensing. Previously, David co-founded Jurny in January 2017, a hospitality tech company pioneering the next generation of tech-first, on-demand accommodations, scaling the company all over the US and Internationally, before leaving the day-to-day operations to take over Elf Labs.

 

Billy Phillips

 

Billy Phillips founded Elf Labs in 2006 and currently serves as Chairman and Chief Creative Officer. Toon Studio is an intellectual property firm that develops and acquires intellectual property including international trademarks and copyrights relating to iconic character IP. Their IP library is one of the largest of its kind in the world. In addition to being President and CEO of Toon Studio, Phillips is a producer, creative director, and an award-winning writer. He is President and CEO of 52 Media Group, an incubator for entertainment projects for TV, book, film and consumer product licensing.

 

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OWNERSHIP AND CAPITAL STRUCTURE; RIGHTS OF THE SECURITIES

 

Ownership

 

The following table describes our capital structure as of February, 2024:

 

Class of Equity  Authorized Limit*   Issued and Outstanding   Committed, Not-issued*   Available 
Class A Voting Common Stock   60,000,000    50,000,000    0    10,000,000 
Class B Non-Voting Common Stock   10,000,000    0    0    10,000,000 

 

USE OF PROCEEDS

 

The Company anticipates using the proceeds from this offering in the following manner:

 

   If Target Offering Amount Sold       If Max Offering Amount Sold     
                 
Total Raise  $10,000    %   $5,000,000    % 
                     
Offering Expenses                    
Commissions & Variable                    
Expenses, Net of Transaction Fees  $600    6%  $300,000    6%
Fixed Costs  $15,000        $15,000      
Net Proceeds  $(5,600)       $4,685,000      
                     
                     
Use of Proceeds   Amount         Amount      
Production Costs  $0    0%  $1,874,000    40%
Payroll  $0    0%  $1,405,500    30%
Marketing Costs  $0    0%  $1,171,250    25%
G&A  $0    0%  $234,250    5%
Total Use of Proceeds  $0        $4,685,000      

 

The amounts above have been rounded to the nearest whole dollar in the case of the maximum amount sold. The identified uses of proceeds are subject to change at the sole direction of the officers and directors based on the business needs of the company.

 

FINANCIAL DISCUSSION

 

Our financial statements can be found in Exhibit B to the Form C of which this Offering Memorandum forms a part. The financial statements were audited by SetApartFS (FY 2023 and FY2022). The following discussion should be read in conjunction with our audited financial statements and the related notes included in this Offering Memorandum.

 

Operating Results

 

For the fiscal year ended December 31, 2023, the Company had revenues of $386,206 compared to the year ended December 31, 2022, when the Company had revenues of $192,030. This increase in revenue was due to the sale of shares.

 

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The Company’s gross margin was 1% in the fiscal year of 2023, compared to -32.7% in 2022. This change was due to increased revenues from financing activities in 2023.

 

In 2023, the Company recognized $854,757 in operating expenses, as compared to $769,729 in operating expenses for 2022. This is due to an increase in expenses related to professional services.

 

Liquidity and Capital Resources

 

As of December 31, 2022, the Company had cash on hand of $187,567.

 

As of December 31, 2023, the Company had cash on hand of $846,579

 

This change is due to an increase in cash as the result of securing additional financing for the company in 2023.

 

As of February 29, 2024, the Company had cash on hand of $658,598.

 

With a current burn rate of $80,000 per month, the company can currently operate for approximately seven more months before securing additional financing.

 

The Company currently has no other sources of capital beyond revenue from operations and planned equity financing rounds.

 

Plan of Operations and Milestones

 

The Company is currently working to develop its own original content featuring their copyrighted characters. They plan to make this content available directly to consumers online, while also exploring potential licensing deals with existing streaming platforms. The Company has previously licensed their characters for merchandising efforts and saw that their characters were extremely popular, providing confidence that their story and characters will resonate with audiences.

 

After establishing an initial go to market strategy and developing an audience, the Company plans to expand their efforts both into new mediums and into new characters. This will entail following the initial success of their original animated show with more shows utilizing different characters in the Company’s portfolio, and also producing new content for immersive web experiences, mobile gaming, and exploring new merchandising opportunities.

 

As part of our strategy of growth, we anticipate future rounds of fundraising. These funds will be needed to help market the initial iterations of our product so that they can find an audience and establish our brand. We will also need additional funds to help develop more content and continue growing the company and scaling our operations.

 

RECENT OFFERINGS OF SECURITIES

 

During the year ended December 31, 2023, the Company received $602,000 in proceeds from an investor term sheet. The Company will issue shares pursuant to the agreement, however the details have not yet been finalized.

 

INDEBTEDNESS

 

The company currently holds $387,514 of debt in the form of short-term loans and credit cards.

 

The Company holds no long-term debt.

 

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SECURITIES BEING OFFERED AND RIGHTS OF THE SECURITIES OF THE COMPANY

 

The following descriptions summarize important terms of our capital stock. This summary reflects the company’s Certificate of Incorporation, as amended, and does not purport to be complete and is qualified in its entirety by the Certificate of Incorporation and its Bylaws. For a complete description of the company’s capital stock, you should refer to our Certificate of Incorporation and our Bylaws and applicable provisions of the Delaware General Corporation Law.

 

General

 

Class of Security   Class A Common Stock
     
Securities Authorized   60,000,000
     
Securities Outstanding   50,000,000
     
Voting Rights   The holders of the Class B Common Stock are entitled to one vote for each share of Class B Common Stock held at all meetings of stockholders (and written actions in lieu of meetings).
Other Rights & Terms  

 

 

Class of Security   Class B Common Stock
     
Securities Authorized   10,000,000
     
Securities Outstanding   0
     
Voting Rights   The holders of the Class B Common Stock are entitled to one vote for each share of Class B Common Stock held at all meetings of stockholders (and written actions in lieu of meetings).
     
Other Rights & Terms    

 

What it Means to be a Minority Holder

 

As an investor in Class B Common Stock of the company, you will not have any rights in regard to the corporate actions of the company, including additional issuances of securities, company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties.

 

Transferability of securities

 

For a year, the securities can only be resold:

 

In an IPO or other public offering registered with the SEC;
To the Company;
To an accredited investor; and
To a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

 

Transfer Agent

 

The company has selected DealMaker Transfer Agent LLC an SEC-registered securities transfer agent, to act as its transfer agent. They will be responsible for keeping track of who owns the Company’s securities.

 

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DILUTION

 

Investors should understand the potential for dilution. The investor’s stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g., convertible bonds, preferred shares or warrants) into stock.

 

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early-stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

 

The type of dilution that hurts early-stage investors most occurs when the company sells more shares in a “down round,” meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

 

In June 2021 Jane invests $20,000 for shares that represent 2% of a company valued at $1 million.
In December the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.
In June 2022 the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2 million (the “down round”). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

 

This type of dilution might also happen upon conversion of convertible notes into shares. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a “discount” to the price paid by the new investors, i.e., they get more shares than the new investors would for the same price. Additionally, convertible notes may have a “price cap” on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a “down round” the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to the aggregate total amount of convertible notes that the company has issued (and may issue in the future, and the terms of those notes.

 

If you are making an investment expecting to own a certain percentage of the company or expecting each share to hold a certain amount of value, it’s important to realize how the value of those shares can decrease by actions taken by the company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

 

Valuation

 

As discussed in “Dilution” above, the valuation of the Company will determine the amount by which the investor’s stake is diluted in the future. An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their “sweat equity” into the Company. When the Company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is immediately diluted because each share of the same type is worth the same amount, and you paid more for your shares than earlier investors did for theirs.

 

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There are several ways to value a company, and none of them is perfect and all of them involve a certain amount of guesswork. The same method can produce a different valuation if used by a different person.

 

Liquidation Value — The amount for which the assets of the company can be sold, minus the liabilities owed, e.g., the assets of a bakery include the cake mixers, ingredients, baking tins, etc. The liabilities of a bakery include the cost of rent or mortgage on the bakery. However, this value does not reflect the potential value of a business, e.g., the value of the secret recipe. The value for most startups lies in their potential, as many early-stage companies do not have many assets (they probably need to raise funds through a securities offering in order to purchase some equipment).

 

Book Value — This is based on analysis of the company’s financial statements, usually looking at the company’s balance sheet as prepared by its accountants. However, the balance sheet only looks at costs (i.e., what was paid for the asset), and does not consider whether the asset has increased in value over time. In addition, some intangible assets, such as patents, trademarks or trade names, are very valuable but are not usually represented at their market value on the balance sheet.

 

Earnings Approach — This is based on what the investor will pay (the present value) for what the investor expects to obtain in the future (the future return), taking into account inflation, the lost opportunity to participate in other investments, the risk of not receiving the return. However, predictions of the future are uncertain and valuation of future returns is a best guess.

 

Different methods of valuation produce a different answer as to what your investment is worth. Typically, liquidation value and book value will produce a lower valuation than the earnings approach. However, the earnings approach is also most likely to be risky as it is based on many assumptions about the future, while the liquidation value and book value are much more conservative.

 

Future investors (including people seeking to acquire the company) may value the company differently. They may use a different valuation method, or different assumptions about the company’s business and its market. Different valuations may mean that the value assigned to your investment changes. It frequently happens that when a large institutional investor such as a venture capitalist makes an investment in a company, it values the company at a lower price than the initial investors did. If this happens, the value of the investment will go down.

 

How we determined the offering price

 

The offering price for our current offering was determined based on the following information:

 

The Company conducted an internal analysis of its prior funding, technology growth, partnerships, development and team, as well as historical revenue and revenue forecast when determining the valuation of this offering. Ultimately, this analysis generally followed the earnings approach listed in the above section.

 

REGULATORY INFORMATION

 

Disqualification

 

Neither the Company nor any of its officers or managing members are disqualified from relying on Regulation Crowdfunding.

 

Annual reports

 

The Company plans to file its Form C-AR report with the SEC. These annual reports along with future reports will be posted on the Company’s website: www.elflabs.com

 

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