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

Testing the Waters Materials Related to Series #SKYWALKER

From the Rally App:

2

DESCRIPTION OF SERIES 1978 STAR WARS LUKE SKYWALKER ACTION FIGURE

Investment Overview

·Upon completion of the Series #SKYWALKER Offering, Series #SKYWALKER will purchase a 1978 Kenner Star Wars Luke Skywalker Action Figure graded AFA 85 for Series #SKYWALKER (The “Series 1978 Star Wars Luke Skywalker Action Figure” or the “Underlying Asset” with respect to Series #SKYWALKER, 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 Luke Skywalker Action Figure graded AFA 85.

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.

·Kenner Luke Skywalker action figures’ first carded appearance came in the 12-back series (the first Kenner release). One way to identify one of the earliest Skywalker releases is by the “SKU on Figure Stand” variation.

·Luke Skywalker is the central protagonist of the first three Star Wars films including “A New Hope,” “The Empire Strikes Back,” and “Return of the Jedi.” In the films Skywalker is an orphan living with his farmer Uncle until he meets a Jedi Master that reveals his true ancestry and purpose in the depths of space during a war between rebels and a galactic government known as the Empire.

·With more than 150 different variants, the Star Wars character Luke Skywalker has been made into an action figure by Kenner more than any other Star Wars character. One of Kenner’s latest releases is the Star Wars Vintage Collection Hoth Luke Skywalker which was announced in April of 2021 and released in the fall of the same year.

·Luke Skywalker is a character that continues to appear in new Star Wars films and series. Skywalker is a key character in the latest Star Wars trilogy beginning with 2015’s The Force Awakens and ending with

3

2019’s The Rise of Skywalker. Original Luke Skywalker actor Mark Hamill is digitally de-aged with DeepFake technology in the 2019’s Disney+ streaming series The Mandalorian.

·The Underlying Asset has been issued a grade of AFA NM+ 85 by Action Figure Authority (AFA) with Certification No. 19705796.

Notable Features

·The Underlying Asset is a 1978 Kenner Star Wars Luke Skywalker Action Figure graded AFA 85 NM+.

·The Underlying Asset’s AFA Condition Report consists of the following grades: Blister: 85, Figure: 85, Card: 85.

·The Underlying Asset features its SKU on its Figure Stand, indicative of an early production-run.

Notable Defects

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

Details

Series 1978 Star Wars Luke Skywalker Action Figure
Action Figure	Luke Skywalker
Manufacturer	Kenner
Series	Star Wars 12 Back-A
Variation	SKU On Figure Stand
Year	1978
Memorabilia Type	Action Figure
Rarity	1 of ~4 (AFA 85 NM+)
Authentication	Action Figure Authority (AFA)
Grade	85
Grade (Blister)	85
Grade (Figure)	85
Grade (Card)	85
Certification No.	19705796

Depreciation

The Company treats Memorabilia Assets as collectible and therefore will not depreciate or amortize the Series 1978 Star Wars Luke Skywalker Action Figure going forward.

4

5

6

7

8