Covalent Media Systems

Overview
Covalent Media Systems began as a self-funded data curation and library technology for large media organizations such as Disney. The technology to date has been used on thousands of film, TV, documentary, and archive projects including over 60 Academy Award winners. The clients have used the technology to store, manage, search and control global access to multi-billion-dollar assets (e.g. Star Wars, Pirates of the Caribbean, etc.).

Disney has noted significant optimizations in the exploitation of their Intellectual Property (IP), and improving cross-departmental workflows as key features that remain at the core of the Covalent platform.

Today, Covalent has evolved from a data curation platform, into a proprietary AI driven data hub managing all aspects of an organizations data from the cloud to unstructured data for all levels of decision makers.

Example Use Case
Disney was producing Pirates of the Caribbean 5 in Australia and the project was in jeopardy of going over its already sizable budget. The solution was giving the team in Australia secure access to the Disney Vault using the Covalent platform from their offices in Australia.

The team was able to quickly find usable material that was previously un-used / monetized.

Disney analysts note that this process saved the Studio $8,000,000 of otherwise impossible savings.

Key Capabilities / Key Differentiators
• Runs in a secure, private Cloud Infrastructure (compute, network, database and storage) protecting the client’s Intellectual property.
• Built a proprietary AI platform (i.e. not wrap around technology that relies on ChatGPT, Bard, etc.) that handles unstructured data, advanced imaging challenges, and mass organization of videos, images, data, and documents.
• Curation Data Platform that organizes and securely displays data, making it easy for nontechnical users to interact with data in real-time.
• Full consumer distribution, rights management, licensing, merchandising, and royalties capable now.
• Built-in monetization capabilities support streaming (AVOD, TVOD, SVOD, etc.) and other content distribution channels.
• Advanced monetization capabilities include Adswapping, Product Placement and "Point to Buy" eCommerce powered by Covalent AI.
• Partnered with key infrastructure partners such as Nvidia, Dell, HPE, Wasabi, Seagate, and Liqid.

Key Activity
• In various stages of closing multiple Studio deals with new business models using AI. An example of this is Covalent is in the process of closing a deal with Warner Bros Discovery
which will be the first AI deal in the company’s hundred year history.
• Covalent technology has been identified as a candidate for several dual use military projects. A short term go-to-market strategy is being executed to capture beachhead opportunities and establish “past performance” for future work with the Department of Defense.
• Nvidia rapidly exploring an investment in Covalent.

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The Proposal
Covalent Media Systems is raising up to $500,000.00 of short-term capital via a CONVERTIBLE NOTE AND WARRANT for operating capital to bridge into the various opportunities quickly coming together.

Interest Rate:           7%
Term:                             1 Year
Conversion at:         $40M valuation
Warrant:                     50% valid for 18 months

Offer close March 31, 2024 -- Subject to acceptance.