Pencilish Animation Studios presents...

The Secret Decoder Ring - A 2D Hand-Drawn Family-Friendly Film

Last Funded November 2021


raised from 4,589 investors
Pitch Video
Investor Panel


We have financial statements ending December 31, 2021. Our cash in hand is $1,051,535, as of May 2022. Over the three months prior, revenues averaged $194/month, cost of goods sold has averaged $100/month, and operational expenses have averaged $80,759/month.

At a Glance

Jan 1 – Dec 31, 2021
Net Loss
Short-Term Debt
Raised in 2021
Cash on Hand
Net Margin:
Gross Margin:
Return on Assets:
Earnings per Share:
Revenue per Employee:
Cash to Assets:
Revenue to Receivables:
Debt Ratio:
Pencilish Inc. Financials and Independent Auditor s Report 12.31.20 - FINAL.pdf Pencilish Inc. Financials and Independent Auditor s Report 12.31.21.pdf

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.


Pencilish Animation Studios intends to create high quality animation, intellectual property, films and television that can be distributed and monetized through licensing, merchandise, and other revenue streams.

With the team that we have assembled, in 5 years we hope to be the number 1 boutique animation studio in the world. These projections are not guaranteed.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.


Pencilish Animation Studios Inc. was incorporated in the State of Delaware in October 2020.

Since then, we have:

  • Tom and his team have worked on films that have grossed over $3B total worldwide.
  • Global animation is a $259B+ market opportunity.
  • Advisor Steve McBeth, a Fortune 100 Executive & Founding President at Disney Interactive Worldwide.
  • CEO, a Disney Alumni, has 225K+ Instagram followers.

Historical Results of Operations

Our company was organized in October 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

  • Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $6,010 compared to the year ended December 31, 2020, when the Company had revenues of $0. Our gross margin was 18% in fiscal year 2021, compared to % in 2020.
  • Assets. As of December 31, 2021, the Company had total assets of $1,420,711, including $1,348,456 in cash. As of December 31, 2020, the Company had $22,342 in total assets, including $6,797 in cash.
  • Net Loss. The Company has had net losses of $721,093 and net income of $17,419 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
  • Liabilities. The Company's liabilities totaled $46,359 for the fiscal year ended December 31, 2021 and $37,025 for the fiscal year ended December 31, 2020.

Liquidity & Capital Resources

To-date, the company has been financed with $30,000 in debt. As of December 31, 2021 this debt has been paid off.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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. We plan to raise capital in 12 months. 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

Pencilish Animation Studios Inc. cash in hand is $1,348,456 as of December 2021. Over the last three months, revenues have averaged $194/month, cost of goods sold has averaged $100/month, and operational expenses have averaged $63,639/month, for an average burn rate of $98,388 per month. Our intent is to be profitable in 36 months.

Since Oct. 8, 2020, we incurred some offering-related costs to set up and open our Regulation CF raise. We secured $30K in debt financing to seed and start the company. 

In 3 to 6 months, we do not anticipate generating any meaningful revenue. There is a possibility that we could generate small amounts of revenue from ancillary revenue streams such as company merchandise. We hope to be generating significant revenues in 18 to 24 months, at which point we hope to be generating approximately $1M in annual revenue with annual expenses of around $500K to $750K. This largely depends on the deal structure and amount of animation required.

In addition to the Wefunder raise, one of our stake holders and current creditor has indicated that they are willing to inject additional capital. Terms are to be determined. 


We are a relatively-new company.

Pencilish Animation Studios, Inc was incorporated in October 2020. It is a relatively new company, with no history upon which an evaluation of its past performance and future prospects can be made. As of December 31, 2021, the date of our last reviewed financial statements, we had not generated any profits. The Company’s ability to continue in the next twelve months is dependent upon its ability to obtain capital financing from investors sufficient to meet current and future obligations and deploy such capital to produce profitable operating results.

We depend on a small management team, creative team, and will need to hire more people to be successful. Our success also depends on being able to retain and continue to recruit key performers, illustrators, and animators, if not the quality and popularity of our brand, product, and intellectual property could decline, which could adversely affect our operating results.

Our success will greatly depend on the skills, connections and experiences of our founders, Tom Bancroft & Ash Greyson. We are also dependent on the relationships of our Advisory Board Members. We will also need to hire additional creative talent and individuals with a track record of success and with the skills necessary to ensure that we create and sell premium original and licensed content. There is no assurance that we will be able to identify, hire and retain the right people for the various key positions. Our success depends, in large part, upon our ability to find, license and create successful intellectual property which may be difficult in our field. Any of the foregoing issues could adversely affect our operating results.


Our Founder, CEO and Sole Director controls the Company and will continue to do so after this offering.  We currently have no independent directors. 

Tom Bancroft, our Founder, Chief Executive Officer and Sole Director, is currently also our controlling shareholder. As the majority holder of Class B Voting Common Stock, which gives him 10 votes per share, as opposed to one vote per share for holders of Class A Voting Common Stock like you, he will continue to hold a majority of the voting power of all our equity stock at the conclusion of this offering, and therefore control the board.  This could lead to unintentional subjectivity in matters of corporate governance, especially in matters of compensation and related party transactions.  Tom’s voting power through his ownership of our Class B Voting Common Stock could discourage or preclude others from initiating potential mergers, takeovers or other change of control transactions. We also do not benefit from the advantages of having any independent directors, including bringing an outside perspective on strategy and control, adding new skills and knowledge that may not be available within Pencilish Animation Studios, having extra checks and balances to prevent fraud and produce reliable financial reports. 

Other Disclosures

The Board of Directors

Director Occupation Joined
Tom Bancroft CEO @ Pencilish Animation Studios, Inc. 2020


Officer Title Joined
Tom Bancroft Treasurer, President, CEO, and Secretary 2020

Voting Power

Holder Securities Held Power
Tom Bancroft 1,722,000 Class B & Class A Common Stock 74.0%

Past Fundraises

Date Security Amount
1/2023 Priced Round $346,140
11/2021 Priced Round $2,193,060

Outstanding Debts


Related Party Transactions

Use of Funds

$50,002 5.5% General Overhead, 10% Marketing Budget, 8% Projects/Development, 6.5% WeFunder Fee, 70% Debt Repayment

$4,999,997 8.5% General Overhead, 15% Salaries/Payroll, 20% Marketing Budget, 47% Projects/Development, 6.5% WeFunder Fee, 3% Debt Repayment

Capital Structure

Class of Security Securities (or Amount) Authorized Securities (or Amount) Outstanding
Class A Voting Common Stock 3,000,000 1,597,100
Class B Voting Common Stock 3,000,000 2,160,000
Preferred Stock 3,000,000 0

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.