|1||5 year deal with Crackle TV/Sony|
|2||Top tier athletes and actors lining up to appear.|
|3||Three ways for the show to make money|
|4||Very little new content is coming as Covid created a void. This show is one exception.|
This is your chance to be a part of a potential hit TV show following the explosive growth of Phat Scooters. Invest now and be a part of the journey! Share the show with your friends, host a viewing party (or join one of ours) and let it be known you're an investor in Riding Phat!
Riding Phat the Show.
It isn’t every day that a pro athlete or Grammy-award winning musician sits next to you to talk about scooters – unless you work at Phat Scooters.
Riding Phat gives you an inside look at the company (Phat Scooters) that builds epic customized electric scooters for everyone from the Hollywood elite and top athletes to premier brands and everyday consumers looking for a better way to ride.
The show follows the entrepreneurial journey of taking an idea and scaling it into a billion-dollar business and the 20 hour work days, stress and eventual payoff that comes with being in a fast growth start-up. And by fast we are talking lighting - Phat Scooters got its start as an idea just three years ago and since has moved four times from 2,000 square feet then outgrowing it in less than 30 days and moving to 5,000 then 14,000, then having 6 different addresses comprising of 31,000 feet and now Phat is the process of moving into their new 48,000 square foot headquarters in Phoenix.
Check out the sizzle reel below.
The show is completely owned by Riding Phat LLC (a subsidiary of Phat Scooters) meaning we control the story, the guests, the brands, the merchandise and best of all the profits!
NOTE - investments into Riding Phat LLC is not an investment in Phat Scooters but an investment in the show that follows the story of Phat Scooters.
Check out what a placement partnership looks like.
Riding Phat has a 6 episode deal with Sony Picture/Chicken Soup for the Soul Entertainment to be a Crackle Original Series and be featured to Crackles' 26M+ subscribers. These six episodes will be exclusive to Crackle for 6 months and will be in distribution with Sony for 5 years (producing a check every quarter).
Here is a segment about us.
Crackle competes with Netflix, and Hulu but is completely free and ad supported. Our deal pays us on every ad viewed while on Crackle - and gives us revenue for every distribution deal Sony inks after the first 6 months as an exclusive.
Our business model for the show is not just ad revenue but also includes paid product placement. We have 6 paid deals so far from vendors and other aligned brands for us to wear, use or feature their products in the show. We also will create, wear and promote Riding Phat merchandise - when the show drops (this is streaming so all 6 episodes will go live at the same time) we will open an online store and fans can buy shirts, hats, belts, cups, bracelets etc. from the store. Most of the clothing will be through a 3rd party print on demand parter and we will get 35% of the proceeds some other partners have given us merchandise to sell as a part of their arrangement and others are asking us to do affiliate deals (we direct traffic or orders to them and they pay us a percentage of the sale.)
Some partners are also doing Phat Scooter builds as a part of their agreements. Riding Phat has an agreement with Phat Scooters to get $1,000 per scooter build as revenue on scooter builds it includes in its packages.
Special edition or licensed builds are also a possibility and the show would receive a portion of the proceeds for those builds.
Pre-Covid Phat Scooters had a large bar in its office and in our new building we have a large entertainment bar, events space. In that space we will operate a retail merchandise store selling Phat Scooters gear as we always have but also selling merchandise for the show. Those events (again pre-Covid) resulted in a few hundred executives a month coming through the doors.
Because of the nature of distribution the show will receive payment every quarter from Crackle and Sony. Even if the show were to not be renewed there will be ongoing revenue for at least 5 years and those funds (even if no more content would be produced) will be distributed to the shareholders.
Riding Phat has financial statements ending July 31 2020. Our cash in hand is $5,000, as of August 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $12,000/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.
Riding Phat is the TV show following the ups and downs of the entrepreneurial journey of Phat Scooters
With any TV show the goal is multiple seasons and a strong fan base. We believe with our customer base, clientele and brand we can sustain this show in the long haul 5+ seasons.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Riding Phat LLC was incorporated in the State of Arizona in July 2020. The Company is a wholly owned subsidiary of Phat Scooters, Inc.
Since then, we have:
Historical Results of Operations
Our company was organized in July 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
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 $36,267 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is no 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
Riding Phat LLC cash in hand is $5,000, as of August 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $12,000/month, for an average burn rate of $12,000 per month. Our intent is to be profitable in 6 months.
We are a brand new LLC. So have limited operating history, no revenues and no guarantee that the show will be a hit or even a moderate success.
We are unsure of the revenues the company will produce. Much of the success is based on viewership. The network sells ads on a CPM basis to ad agencies. The more views the more we get paid.
The Company’s main revenue stream will be fees collected from the licensure of its television production. The Company signed a five-year contract for the licensure of the docuseries to Screen Media Ventures, LLC (“the licensee”). The Company is required to deliver the production to the licensee by November 15, 2020. Gross receipts from the release of the docuseries will be allocated among the following:
A. 25% of all gross receipts for distribution fees paid to the licensee
B. Reimbursement of distribution costs incurred by the licensee
C. 60% of the remainder will be remitted to the Company, 40% will be retained by the licensee
We are reliant upon the success of the show, merchandise and our efforts around product placement for further capital. The company expects to begin generating revenue in Q4 2020 from product placements. The company could rely on additional founder funding or a loan from Phat Scooters, Inc. if short term capital was needed.
Covid could delay production and that could jeopardize delivery of the show to the network.
Derrick Mains and Peter Johnson are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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 could fail at getting together all the production costs and the show might never get completed.
The show could be a flop and generate a smaller than expected level of ad revenue meaning the payback to investors could take years, if ever at all.
The show could be a success but a main character could leave the company and that could cause us to lose viewership.
This is a part time endeavor. Currently there are no full time employees. The show follows the challenges and tribulations of Phat Scooters - if that company would cease to exist. The show would no longer have a premise.
|8||COVID-19 poses a risk to our business; it may delay production, funding, or release of the show.|
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