Investment In Stan Lee Universe

In July 2020, the Company and POW! entered into an agreement to form an entity “Stan Lee Universe, LLC” (the “SLU”). SLU will hold worldwide rights, on a perpetually renewing basis, to the name, physical likeness, and physical signature of Stan Lee. Further, the SLU will have access to the POW! catalogue of intellectual property, created by Stan Lee, to exploit in live-action and animated motion pictures, television, online, digital, publishing, comic book, and merchandising and licensing. As currently agreed, the Company will be the managing partner of the JV.

As part of the agreement the Company agreed to contribute $2,000,000 in cash to SLU and $200,000 to in kind contribution of resources including office space equipment for a 50% ownership in SKU. The $2,000,000 cash contribution is payable in monthly payments of $250,000 starting August 2020.

POW! will contribute for a 35% ownership in SLU:

As an initial contribution and in exchange for a 15% ownership in SLU, the individuals granted shall contribute certain ongoing services to the SLU.

The parties are in the process of finalizing the SLU operating agreement.

As of September 30,2020, the Company has contributed $500,000 to the entity.