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DESCRIPTION OF SERIES 1985 TRANSFORMERS JETFIRE FIGHTER JET

Investment Overview

·Upon completion of the Series #JETFIRE Offering, Series #JETFIRE will purchase a 1985 Transformers Jetfire Fighter Jet graded AFA 85 for Series #JETFIRE (The “Series 1985 Transformers Jetfire Fighter Jet” or the “Underlying Asset” with respect to Series #JETFIRE, as applicable), the specifications of which are set forth below. 

·Hasbro is a multinational consumer product company that was founded in 1923 by Henry, Hillel, and Herman Hassenfield in Providence, Rhode Island, first selling “textile remnants before manufacturing pencil boxes and school supplies.” The brand expanded to include toys in the following decades. 

·Hasbro secured the rights to a Japanese brand of “changing/converting” robot toys, calling them “The Transformers” and introduced them to the U.S. market with the “Generation: 1” or “G1” line of toys. 

·The Underlying Asset is a 1985 Transformers Jetfire Fighter Jet graded AFA 85. 

Asset Description

Overview & Authentication

·The Vice President and Director of Marketing at Hasbro, Don Levine, invented the original prototype action figure. Levine was interested in the methods used by competitor Mattel to manufacture their Barbie toy, “and was determined to create a similar toy for boys.” 

·Levine “was struck with an epiphany” when he noticed a wooden artists mannequin in a window display, realizing that Hasbro could “create something truly magnificent” by building toys that could move in similar ways to the human body. 

·On October 11, 1966, Hasbro filed U.S. Patent 3,277,602 for a “toy figure having movable joints.” 

·Hasbro launched The Transformers in 1984, including 31 original toys that kicked off what has become known as the Generation 1 (G1) line. The first series of Transformers ran from 1984 to 1990 in the U.S. 

·According to Den of Geek, President Reagan’s deregulation of children’s television played a major role in the success of Transformers. 

·According to Den of Geek: “The release of Star Wars had sparked a boom in action figures and merchandise in the late 70s and early 80s, and companies including Mattel and Hasbro adopted a similar approach to selling toys in its wake. Hasbro launched a new line of G.I. Joe figures in 1982, which was supported by an animated TV series and a comic book published by Marvel Comics… Hasbro’s rival Mattel, meanwhile, had an enormous hit with its He-Man range of fantasy action figures and the animated show which promoted them. A war for the attention of America’s youngsters had begun, and Hasbro started searching around for a new toy idea to win it. Something futuristic. Something kids hadn’t seen before…” 

·According to Den of Geek: “That search ended in 1982, when executives from Hasbro attended the Tokyo Toy Fair. There, they were reunited with Japanese manufacturer Takara – a company Hasbro had originally dealt with in the 1970s, when Takara licensed some of Hasbro’s G.I. Joe action figures to sell as Combat Joe in Japan.” 

·Den of Geek wrote that the G1 Jetfire is the “Transformer with the strangest history of all.” The character originally appeared in a 1982 Japanese anime series titled “Super Dimensional Fortress Macross” under the name Super Valkyrie Fighter. According to Den of Geek: “Designed by Shoji Kawamori, the Super Valkyrie was one of the most iconic mecha creations of the 1980s, and it’s little surprise that the company Takatoku rushed a transforming toy based on it as the series took off. Hasbro clearly recognised how popular the Valkyrie design would be in the west, so they purchased the design from Takatoku, renamed the robot Jetfire, and added it to the Transformers family, alongside a number of other designs from the company, such as the Deluxe Insecticons” 

·According to Den of Geek: “Problems arose when Takatoku went out of business in 1984. Japanese giant Bandai bought up Takatoku, and with a Macross movie renewing interest in the series, Bandai decided it wanted to re-release the Valkyrie toys in Japan. The following year, Macross appeared in America (albeit in modified form) as part of the Harmony Gold series Robotech, which meant that kids across the country would see the Jetfire design in an entirely different context… The complex issue of who owned the rights  

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to the Valkyrie design in what country led Hasbro to change Jetfire’s appearance and name in the comics and television show; according to the Transformers story bible, intended to help the writers on the comics and TV show, “JETFIRE has been “transformed” into SKYFIRE – with a different model – due to legal reasons. Do not use this character unless necessary.”

·In September 1984, The Transformers made their television debut with a mini series titled “MORE THAN MEETS THE EYE” airing on Saturday mornings. 

·Marvel released a four-issue comic series titled “The Transformers” beginning in 1984. 

·In August 1986, Transformers: The Movie was released in theaters. Featuring Orson Welles and Leonard Nimoy as voice actors, the animated film grossed nearly $6,000,000 worldwide. 

·At the end of 1992, Hasbro released G2, including re-colored versions of earlier iterations of Transformers toys. 

·In July 2007, Transformers was released. The film starred Shia LaBeouf and Megan Fox and grossed over $700 million. 

·To date, there have been seven Transformers films released, grossing over $4.8 billion collectively. Another Transformers film is scheduled to be released in June 2023. 

·Workandmoney.com ranked the G1 Jetfire Tranformers Action Figure as the most expensive Transformers toy. An AFA 90 example sold for almost $25,000 in 2021, more than any Optimus Prime or Megatron Toy. 

·Harmony Gold USA sued Hasbro in 2013 stating copyright infringement on a GI Joe Skystriker toy with decals to mimic Jetfire. They lost the suit so in 2014 Hasbro released a new 30th anniversary edition JETFIRE figure. 

·The Underlying Asset has been issued a grade of AFA 85 by Action Figure Authority (AFA) with Certification No. 14546025. 

Notable Features

·The Underlying Asset is a 1985 Transformers Jetfire Fighter Jet graded AFA 85. 

Notable Defects

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

Details

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Depreciation

The Company treats Memorabilia Assets as collectible and therefore will not depreciate or amortize the Series 1985 Transformers Jetfire Fighter Jet going forward.

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