|1||Help extend our marketing budget to bring in new players and grow the Pet City 2 and Pet Buddies communities.|
|2||All funds raised by our players will be added to our marketing budget to bring new players to Pet City 2 and Pet Buddies|
|3||Great chance to invest in the company that makes the games you love. Grow with us!|
|4||This is a unique and one-time opportunity for our players to invest in the company and benefit from our success.|
|5||Can-Do spirit - self-funded growth from a team of 12 in 2011 to 45 in 2019|
|6||You will help our efforts to acquire new players that will add more excitement to the games.|
We're a talented mix of artists, illustrators, animators, graphic designers, producers, programmers and support teams whose love and passion for creating great games has translated into eight years of steady growth. After 8 years of live ops with our Pet City and Pet Buddies games, we’ve accumulated considerable know-how in the pets and decorate genre which we plan to springboard to greater success with our follow up title, Pet City 2, as well as a new highly addictive new Match 3 puzzle game that has been in development for over two years.
Our teams are organized into highly cohesive units where cooperation, loyalty, and passion for our players have sustained our success. It truly feels like a family at the studio!
Pet City launched on Facebook in mid-2011, over 8 years ago with a modest user acquisition campaign and grew virally and organically from there. Pet Buddies launched on iOS in late 2015 with a $1.3 million user acquisition budget and has sustained a loyal following.
Major free-to-play game titles with built-in social engagement and a high degree of polish have long development cycles. But such efforts are necessary to compete in the highly competitive free-to-play game market. Both games have been highly vetted by our highly discriminating players and poised for major success.
Launched in 2011, on Flash technology, the game focuses on nurturing a virtual pet and room decorating and has enjoyed steady growth with over 13M players having installed the game since inception. In mid-2019 we transitioned the Pet City franchise to the next generation, Pet City 2.
Pet City 2
Launched in June 2019, Pet City 2 is the next generation of the Pet City franchise based on the latest game technology and design esthetics that runs on the Facebook desktop game platform as well as mobile (iOS and Android) due to be released in December 2019. The game is accessible to Pet Marketing efforts to accelerate growth are scheduled to begin in December 2019
The game enjoys a high rating of 4.7 in the iOS App Store
The game was launched in late 2015 with a $1.3M user acquisition campaign. We recently launched a highly targeted user acquisition campaign to bring in new players.
Game Genre: Match 3 game that combines with Decor Challenges
Soft launch date: December 2019. Major distribution date: 1st Qtr. 2020
We're excited that after over two years in development and vetting by our players to create a truly relaxing and addictive gaming experience, we'll be ready for soft launch in mid-December 2019.
The three keys to higher than average revenue in our games are community, community, and community. The multi-layered social dimensions of our games are what deliver sustained user engagement over many years rather than many months.
The gaming world has gone mobile in a big way. Pet City 2 combines all the successful elements of Pet City with all the lessons learned and wisdom gained from listening to our loyal Pet City players, along with all the necessary support to run on mobile. This gives us a tremendous edge for even greater success than we experienced with Pet City.
Combining decor challenges "Meta-Game" play for Match 3 games is incredibly hard to pull off well. But we were conveniently poised to take advantage of this hot trend since we have years of developing decorating challenges in Pet City and Pet Buddies. We've combined our mastery of decor challenges with the talents of highly experienced Match 3 level designers to develop Design Academy.
We're in discussion with major game publishers to take Design Academy into major distribution. Similar Match 3 games have revenue that runs into the tens of millions of dollars.
For many players, our games have a special place in their hearts. Our core values of community, generosity and supporting each other, has helped our games outlast the competition. In the "free to play" casual game arena, whereas the average lifespan of a game is around 12-15 months, our flagship game Pet City has been going strong for over 8 years. As important to our success is the special bond we developers have formed with our players. It's the added ingredient to the endurance of our games. A common refrain from players goes something like this "I've never seen a game developer so responsive and supportive. You guys are amazing!"
Our game studio has grown from a headcount of 12 back in 2011 to a total of 45 in 2019, all without any outside financing. This is a clear sign of our can-do spirit. Our main goal for the next two years is to rapidly accelerate top-line revenue growth by harnessing our well-honed game studio skills with the help of outside financing and publishing partners, starting with this Wefunder capital raise. We have two new games built with the latest game technology specifically timed to help achieve rapid growth in 2020 combined with the continued marketing of our Pet Buddies iOS game.
Catalyst Apps has financial statements ending December 31 2018. Our cash in hand is $375,000, as of November 2019. Over the three months prior, revenues averaged $200,000/month, cost of goods sold has averaged $90,000/month, and operational expenses have averaged $100,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We're an independent game studio that creates free to play casual games targeted at a largely female audience. Our flagship game, Pet City, has been going strong for over 7 years. The game provides players a virtual pet they can nurture daily as well as room decorating activities. We also operate a sister game called Pet Buddies that runs on iOS mobile devices which has now been in operation for over 3 years. Both games enjoy an almost maniacal fan base, many of whom have been playing daily for years.
We plan to leverage our deep insights and key metrics and strong foundation to grow Pet City's player base and community many fold. We plan to achieve this by extend Pet City's reach Android and iOS mobile platforms. As we meet our growth targets we expect top line revenue to grow in step but we expect bottom line profits to grow much faster since, other than recurring user acquisition costs, we expect live ops overhead to remain relatively constant.
PictureTrail, Inc. was incorporated in the State of California in May 2001.
Since then, we have:
Historical Results of Operations
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $20,000 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
PictureTrail, Inc. cash in hand is $375,000, as of November 2019. Over the last three months, revenues have averaged $200,000/month. Operational costs and cost of goods combined for 190,000 per month.
The company is currently profitable. We do not have plans to raise additional funds in the immediate future.
We expect gross revenues to be about the same as it was last year. Our expenses are not expected to rise in this time frame. We have available several lines of credit which we occasionally do deploy and then pay down over a few months after that.
Other game studios may launch heavily marketed competing games in the pets nurturing and decorating genres that could lead to over saturation of such games.
Loss of key technical staff and/or management staff could delay incremental game development schedules and would therefore increase risk in meeting revenue targets.
User acquisition and marketing costs could rise to levels that would greatly compromise profitability.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We face competition with regards to our key products. Our competitors may be better capitalized than we are and have greater brand awareness.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
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