India: In March 2020 we secured our first major advertising contract for approximately $85,000 USD and were on the cusp of a second
major order for approximately $150,000 USD as ad sales momentum was building.. Due to COVID-19, the first contract has been delayed
relative to delivery of ads and the second contract as been put on hold for the current quarter (Q2 2020). Our initial expectations of
significant growth in our ad supported business this quarter have been reduced.. With a return to a “new normal” beginning to materialize
in India we are seeing movement back to more active ad sales and believe the second half of the year will produce strong results. Our
financial projections reflect these adjustments.
Influencer Marketing (US): In February of 2020 our pipeline of expected business for Q2 2020 was already over $800K USD including four
different theatrical motion pictures set for release in theaters. Three of these films were withdrawn from release due to the closure of movie
theaters as a result of COVID-19. We successfully secured one contract for the film Trolls World Tour ($300K USD) due to the studio decision
to release this film direct to consumer via streaming on April 11, 2020. We currently are pursuing and securing business on new direct to
consumer releases ( King of Staten Island ) along with other prospective new clients (Beverage and Apparel). While this transition has taken
time and had a negative effect on revenue in Q2 2020, we are already beginning to see a growing pipeline of business for next quarter.
The company believes that our use of content from individual creators & social stars, coupled with the apparent recession-proof demand for
digital media, places us in a strong position to rebound from the initial Q2 2020 negative impact of COVID-19.
The business initiatives and projections described herein reflect the anticipated impact from COVID-19 on our business in Q2 2020 and
anticipate a return to a growing operating environment in both India and the US beginning in July 2020. These circumstances have
necessitated the need to raise additional capital as outlined.
CURATED. TARGETED. ENGAGED. AUTHENTIC. The Impact of COVID-19: Creating an Investment Opportunity