Raising $2.3M to launch a unique APPAREL BRANDED line of clothing with the "2nd Skull LOGO" which brand identity highlights high-quality head protection gear that meets the needs of active athletes/professionals who demand the best in terms of both safety and performance. Their products and messaging convey a sense of intelligence, innovation, and determination, which will resonate with consumers who share these values (i.e. SPORTS, Military, Industrial, etc.)...... "Smart PROTECTION with DETECTION"™
"2nd Skull BRANDED LOGO"
2nd Skull Inc. (a 5-year - revenue producing company) specializing in patented (tested/certified) technology, focused specifically on the mitigation of head injury protection gear (designed for athletes, active professionals/consumers/etc.) has recently granted an “exclusive-global license” to
headsUPÔ Apparel LLC in Dallas, Texas to market its 2nd Skull Branded apparel/ merchandise, etc.
headsUPÔ Apparel LLC (NEWCO with 121 years of senior management experience
) is raising $2.3M to immediately begin running multiple digital marketing “influencer” campaigns via its
Fast Start Program (i.e. NIL collegiate/pro athletes, etc.); with the ultimate goal of building a worldwide recognized apparel BRAND (comparable to the
Supreme Brand, known throughout the world). Even though 2nd Skull and Supreme are both apparel brands, they have very different product offerings and distinct-brand identities (based on their core products, etc.)
See: www.2ndSkull.com
APPAREL EXAMPLES
INVESTMENT OFFERING: headsUPÔ Apparel LLC is offering corporate loans via a $50,000 minimum, raising up-to $2,300,000 that will offer a 12% simple interest rate over the 5 years length of the initial term of the exclusive-worldwide license (i.e. $100,000 Note @12% for 60 months = $60,000); paying interest only on a quarterly basis, with a balloon payment on the principal at the end of the note. If a buyout of the license occurs, the noteholder will participate in the final disbursement after all debts are satisfied (i.e. all notes fully paid-out first before final disbursements) for their pro-rate share of the buyout proceeds.
· In addition: each $50,000 increment will be assigned a 0.50% interest in quarterly disbursements (up to 23% is available for investors if fully subscribed) as long as the license is active.
· The Payee will have the option at any point after two (2) years into this Note to request an accelerated payment along with any earned unpaid interest as of the date of payoff of the Note. If this option is granted by the Maker, the carried revenue share interest will be reduced by half on all future quarterly revenue share disbursements of Maker thereafter.
· 5-Year Projected ROI: (Interest plus Disbursements):
o @1% blended average conversion rate = $345,000 return or 3.45X
o @2% blended average conversion rate = $630,000 return or 6.30X
o @3% blended average conversion rate = $915,000 return or 9.15X
· License: has an “Evergreen” provision that will continue to “roll-over” beyond the 5- year term for no less than two years upon any notice.
5 Year Revenue Projection Example: “ONE Campaign”:
o @1% conversion rate = $1,440,000 QTR / $28.8MM
o @2% conversion rate = $2,880,000 QTR / $57.6MM
o @3% conversion rate = $4,320,000 QTR / $86.4MM
ANTICIPATED REVENUE OPPORTUNITY: “Agency Revenue Model” EXAMPLE:
1500 qualified Open Sponsorship athletes representing a blended average of 60,000 social followers with a minimum monthly trending fan engagement of 20% creates the following campaign statistics and corresponding revenues:
Target audience reach: 90,000,000+ followers
20% min fan engagement: 18,000,000+ monthly active followers
Avg. apparel transaction: $40.00
@1% audience purchase: 180,000 transactions (quarterly projection)
Total projected purchases: $7,200,000 gross sales (quarterly)
Influencer Viability Analysis:
Assuming 20% influencer attrition by 90 day set
· 1500 influencers less 20% attrition = 1200 qualified Influencers
· 180,000 projected transactions / 1200 qualified influencers = 2,000 transactions/day
150 transactions per active influencer over 90 day set
· Or 1.67 orders per day per influencer for 90 days
· Or 6 orders per post (25 post minimum) per influencer over 90 days
Average influencer has 60,000 followers @ 20% engagement = 12,000 engaged following
Requires 1.25% of each influencer’s engaged following to buy something within 90 days.
Use of Funds: “Fast-Start Program”: