Testing the Waters Materials Related to Series #36OWENS (06121253).DOCX

Testing the Waters Materials Related to Series #KENNERSET

From the Rally App:

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The interactive Comparable Asset Value Chart (the “Chart”) plots historical sales of assets comparable to the Underlying Asset, showing price values on the vertical axis against time on the horizontal axis. The prices reflected on the Chart are not adjusted for inflation. Users of the Platform can opt to display varying ranges of time on the Chart’s horizontal axis, from one month to one year or longer to the extent such data are available. If multiple comparable asset sales occurred on a single day, the Chart provides an average for that day. By hovering over the points on the Chart, users can view price and date of sale represented by each point. The table below sets forth the data points plotted in the Chart.

Comparable Asset	Sale Date	Sale Price	Source/ Sale Venue
Kenner Star Wars Mailer Kit Early Bird Set (AFA 75)	9/24/2020	$3,850.00	Hake's
Kenner Star Wars Mailer Kit Early Bird Set (AFA 75)	2/10/2022	$10,251.00	Certified Link

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DESCRIPTION OF SERIES 1978 KENNER STAR WARS SET

Investment Overview

·Upon completion of the Series #KENNERSET Offering, Series #KENNERSET will purchase a 1978 Kenner Star Wars Early Bird Set graded AFA 75 for Series #KENNERSET (The “Series 1978 Kenner Star Wars Set” or the “Underlying Asset” with respect to Series #KENNERSET, as applicable), the specifications of which are set forth below.

·Star Wars is a series of films created by George Lucas that has spawned a wide-spanning industry since its debut in 1977, including ongoing films and TV shows, merchandise, trading cards, toys, and video games. The New York Times called Star Wars a “cultural behemoth.”

·Kenner Products was founded in 1947 by Albert, Phillip, and Joseph Kenner. The company would go on to produce toys such as the Easy-Bake Oven and Star Wars action figures.

·The Underlying Asset is a 1978 Kenner Star Wars Early Bird Set graded AFA 75.

Asset Description

Overview & Authentication

·The first Star Wars film was released on May 25, 1977 (later retitled “Star Wars: Episode IV — A New Hope”). Directed by George Lucas, the “Space Opera” grossed an estimated $775,398,007 at the worldwide box office.

·Following the debut hit, the franchise has since released a total of 11 films, with “Star Wars: Episode IX — The Rise of Skywalker” arriving in theatres on December 20, 2019.

·The Walt Disney corporation announced they agreed to acquire Lucasfilm Ltd. on October 30, 2012. Through this deal, Disney acquired ownership of Star Wars and associated businesses in film, consumer products, animation, and more.

·After the success of the Star Wars film in 1977, Kenner signed a licensing deal to produce Star Wars toys. According to Cincinnati.com, other toy companies turned down the deal because at the time toy companies generally produced toys related to TV shows due to the longer exposure period compared to movies.

·A Kenner designer named Jim Swearingen “recalled reading the ‘Star Wars’ script and telling his bosses they had to do these toys.”

·Since Kenner knew they wanted to produce toys of the spaceships from Star Wars, they scaled down the figures from the common 8 or 12 inches to 3.75 inches. This became “the new industry standard.”

·In the fall of 1977, Kenner produced puzzles and a board game, but the action figures would take a year to produce and would not meet the holiday deadline. According to Cincinnati.com: “…they tried a bit of innovative marketing. Kenner whipped up a cardboard stand and an “Early Bird Certificate Package” that promised delivery of the first four figures (Luke Skywalker, Princess Leia, Chewbacca and R2-D2) when they were available the next year. The company essentially sold parents an empty box, an I.O.U., to put under the tree on Christmas morning.”

·Kenner’s Star Wars action figures were added to the National Toy Hall of Fame in 2012.

·The Underlying Asset has been issued a grade of AFA NM+ 85 by Action Figure Authority (AFA) with Certification No. 16702733.

Notable Features

·The Underlying Asset is a 1978 Kenner Star Wars Early Bird Set graded AFA 75+ EX+/NM.

·The Underlying Asset’s AFA Condition Report consists of the following grades: Window: 85, Figure: 80, Box: 75.

Notable Defects

·The Underlying Asset’s condition is consistent with its condition grade from AFA.

Details

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Series 1978 Kenner Star Wars Set
Action Figures	Luke Skywalker, R2D2, Princess Leia, Chewbacca
Manufacturer	Kenner
Series	Star Wars
Variation	Early Bird Set
Year	1978
Memorabilia Type	Mailer Kit
Rarity	1 of 1 with 6 higher (AFA 75+ EX+/NM)
Authentication	Action Figure Authority (AFA)
Grade	75+
Grade (Window)	85
Grade (Figure)	80
Grade (Box)	75
Certification No.	16702733

Depreciation

The Company treats Memorabilia Assets as collectible and therefore will not depreciate or amortize the Series 1978 Kenner Star Wars Set going forward.

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