Genius Brands International Inc (GNUS)

[tdeck]

Well I think I have found what shows what the intent of not only Penguin Young Readers and Anna Dewdney to promote the books to expand their territories (countries), retailers and and new product categories.

I just could not remembered where I saw about the books being the reason behind the partnership it was so long ago I searched all the filings etc. finally, I went back through the PR's and found the original it lays it all out what the "original partnership" was about/for.

I got to where I wished that I had never posed the question on what everyone thought of Genius Brand's % of books after Ms. Dewdney's passing and when the content including books went into areas that she never had a hand in whatsoever, as in epsidoes in season one and all of season two.

But at the end of the day I am glad I did, this way hopefully all now can see the picture more clearly, I really cannot see why they didn't before as it just did not make sense they way they were thinking things were.

Okay in the PR from February 19, 2015 when they first did the partnership deal it clearly states it was to increase/expand the Llama Llama book franchise, and by the means they would/were to accomplish that.

https://www.gnusbrands.com/news-media/press-releases/detail/794/genius-brands-international-partners-with-penguin-young

"has partnered with Penguin Young Readers and author and illustrator Anna Dewdney to lead the worldwide expansion of Dewdney's New York Times bestselling and multiple award-winning children's book franchise, Llama Llama." There is no other way to read that, also.

"I'm excited to build a new partnership with Genius Brands and Penguin Young Readers! Though this collaboration, young fans will have the opportunity to interact with the world of Llama Llama in a multitude of new and exciting ways," said Ms. Dewdney. """"My main goal is to encourage more children to learn to read""", and by providing them with a larger and more diverse Llama Llama universe, I believe we will accomplish that goal."

It was all about increasing book sales by way of increasing retailers of the books (which sells more books) increasing the territories (countries) for the books to sell (which sells more books) "and" (that word is important) increase product categories. It wasn't a deal to have the right to license products and a cartoon series it was a deal to expand the book franchise (sell more books).

"And" in this is case is "including" because the books were the main thing, at that point prior to Ms. Dewdneys passing the parent company which now 100% owns the underlying rifghts probably did not at that time. They may have onwed a part, now that they own it, I can omly surmise that Ms Dewdneys estate sold it, there was/is a charity she/her estate? set up in Ms Dewdneys name and that no doubt gets some of everything that is Llama Llama and her other books in perpetuity.

But the original thing in February of 2015 was a deal with Penguin "and" Ms Dewdney and it was for expanding the book franchise, it is what it is.

I don't know if all are aware but everything Genius get licenses Penguin and Dewdney got a piece of that and with her passing her charity does more than likely. No doubt, the charity does not now get the same amount because Penguin Random House LLC who owns or controls the underlying rights to Llama Llama.

But, it started and is in Penguin Random House LLC's mind ALL about how many more books can sell, that is all they cared about from the word go. Sure they apreciate the extra products etc and whatever small piece they get now and when Ms Dewdney and their subsidiary made the deal they got. But their #1 goal and reason for doing the partnership deal was increasing book sales through expansion of the books franchise, it goes without saying.

I only wanted to know if anyone knew if the book % could have changed after Ms Dewdneys passing and when those whom Genius put together to make the cartoon series and help finish the books and illustrate, write the new books (the cartoon writers) did the deal change in that way, did they get a larger piece of those books, although still not a major one as they are only licensing agents for the books, where 10% of sales, I cannot see that, take off a zero sure I can understand that. Maybe 10% of the profits, but, I doubt it.

But, all licensing agent contracts made are different as they are all unique but, saying they get zero of the thing they are there to grow/increase/expand makes no sense what so ever. That was the original point, Penguin in 2015 couldn't give a damn about other products, they wanted to build book sales as that is their business, it is just common sense.

Now as is pointed out in the PR Feb 2015 there were 9.4 mil books in print in 8 languages.

Well nearly two years later at the time of her passing the sales had still only grown to 10 million copies (another 600K copies), this from her obituary "a series that has sold a combined total of 10 million copies."

https://people.com/books/llama-llama-red-pajama-author-dies-anna-dewdneys-final-request/

In the begining of 2019 just over 2 years later there were 20 million books in print a 200%+ increase in 2 years with a book selling every 24 seconds and still only translated into 8 languages. You know what my question is if a year ago there were 20 million in print after the 1st season had just aired, up 20 million after 2 years where the previous 2 years had only grown 600K how many are there now, one year since the 20 million in print hit?

Now I have no idea when they took off to selling like that, I am going to guess some time just prior to the cartoon series debut or just after in 2018.

In October of 2017 just before the debut they released 4 holiday series of the book with the new likeness of Llama Llama and the other characters.

https://www.penguinrandomhouse.com/books/561439/llama-llamas-holiday-library-by-anna-dewdney/

I got this info from the Llama Llama Live page the Brad Simon organization, the company promoting the newest Llama LLama live, here is the link. I say begining of 2019 may have been Q4 of 2018.

https://www.bsoinc.com/roster/llama-llama-live/

And as you can see on that page they said the book was then still only translated into 8 languages. Today it is ten that I know of it is supposed to rain this weekend here so I am going to do my best to search out and find as many of the different languages it is in now.

The other two I know of now are Arabic and as of August 20, 2019 German.

https://www.amazon.com/gp/product/3499000806/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i8


In 2019 is when the licensing/royalties started climbing in a big way, prior to any more licensed toys etc. were rolled out, this did not start in earnest until late Q3 2019 just like with Rainbow Rangers after they both had a successful first cartoon series run and were headed into their second seasons. I don't know when how they receive their royalties from the books, maybe it is like Psycho Bunny they get 2018 in 2019 and 2019 in 2020 who knows, who cares, as long as they are starting to jump 300-400% YoY

Q1 2018
Licensing, Royalties and Advertising Sales $88,812


Q1 2019
Licensing, Royalties and Advertising Sales $370,346


Q2 2018
Licensing, Royalties and Advertising Sales $41,579

Q2 2019
Licensing, Royalties and Advertising Sales $167,181

To further point out that the book franchise is/was the main focus and indeed included.

In the PR of October 15, 2019 that was put out to talk about Llama Llama taking off they said "gaining traction" as I think it shocked everyone how fast it expanded in 2019, but anyway. In the PR see the very first paragraph.

https://www.gnusbrands.com/news-media/press-releases/detail/1041/genius-brands-internationals-llama-llama-gains

Genius Brands International, Inc. “Genius Brands” (NASDAQ:GNUS) announces today multiple market milestones for its popular preschool brand, Llama Llama, based on the bestselling """book franchise by Anna Dewdney."""" that is separate the "book franchise" and what Genius was brought in to do and what Penguin especially really cared about, book sales, expansion of what "they do".

Remember the PR from February 2015 on the patnership it was to "to lead the worldwide expansion of Dewdney's New York Times bestselling and multiple award-winning children's """book franchise""", Llama Llama."

Everything they did, had one goal In Penguin's mind and wants, to sell books, and as sure as god made little green apples in Wisconsin Genius gets a piece of every single title in that franchise that sold after that, it is a given.

Now if you look back at the PR it talks half about the books half about the other product categories, because that is imprtant to shareholders the books selling well, being on the New York Times best sellers list, how Penguin Publishing was selected by The Washington Post's “Best Books for Every Age” for 2-year-old readers etc.

That is because it matters to shareholders, the books are not helping sell merchandise and bring attention to the cartoon series it is the other way around as it was supposed to be, he is saying, here is what is happening people, the DVD's the other products the cartoon series but half that PR is about the books.

If this thing never had a piece of the books I wouldn't be here, trust me when I tell you this. I would have never followed this company/stock for 3+ years, why? If it was all about merchandise sales, cartoon series as rickn23 said don't really make alot of money, especially in the beginning. Until you get to the point you are expanding your distributorship for the series, to the world which takes another year or so after a few years of developing and producing the cartoon series.

They are/were a means to an end from the outset from the get go (sell more books) without the % from books what is there to look forward to in till the series is successful and before it is, the book money is the largest single seller by far, after wars expanding into 100's of merchandised is the way of increasing other revenue streams but the single largest revenue generator is and always will be the books.

The group of other licensed goods will far surpass them yes but the biggest singular one is and will always be the books, you have to have a piece of that or else why for Genius be involved in building the book franchise, why bother in the early years they are all that matter and what one counts on when spending millions building the rest of the product categories. You need some incentive.

And before October of this year in the first four years of the partnership, there weren't a lot of products to increase sales of and reap royalties from, except the books. Without them its a pointless exercise and I wouldn't be here, you can bet that.

Now the cartoon series they will make money don't get me wrong and are starting to make more and more with each new distributor, overseas distributions etc, its was in 20 languages now 22. But the real game is the books, it is the biggest revenue stream for Llama Llama, I cannot stress that enough.


The other products which are now growing at a rapid rate like never before (since late Q3 2019) they too are good and once there are 200 then 300 then 400 of them forget about it, then we are all gonna do the happy dance.

The same with Rainbow Rangers which at least product wise, is and will continue to grow larger and quicker than Llama Llama in numbers of different products, because it is for an older age group and that goes without saying there are more categories it can be expanded into. No Llama Llama bikes, school supplies, book bags, swimsuits etc. coming out.


Bulding a massive library of revenue streams is the big picture in the Genius game you have a handful of twigs they are easy to snap. You get hundreds and try and snap them you cannot because they are large and strong.

Hopefully most get it here now, maybe. The books, its always been about the books first and formeost, and as I said it should have gone without saying.

Saying that, I think the partnership has worked well, Llama Llama isn't Strawberry Shortcake nor is it Paw Patrol yet, but it has even surprised many here and at Genius as it is really breaking out and the original partnerships goals are/have been achieved thus far in flying colors.

Give it a minute the cartoon series has only been out a little over a year damn, its not a platinum brand yet but it is hitting silver and will soon be in the gold lane, keeps up 3-5 years from now it could be a platinum brand.

Just watch those revenues keep increasing and people, books, DVDs, merchandise those are PR's just another stream added to the sack and as long as they keep groing month after month which it has since late Q3 2019 then sit back be happy as its finally happening and you deserve it as its been a long frstrating ride for many of you no doubt.


Now one other thing I want to point out, those revenues for licensing started taking off Q1 2018 they got $370,346 in that category in Q1 2018 2017 $88K.

Now we know the 2018 royalties for Psycho Bunny were paid in Q1 2019, are the books paid that way as well or every 6 months I don't know but what I do know is they are at least quarterly as are many things and many no doubt also yearly or ever 6 months.

So when one says, what will they do for money Dec. 31, 2019 they only had $$305,000, so what?

Everyone knows a fat check is coming from Psycho Bunny and one far larger than the $168K they got Q1 2019 for 2018 royalties. Psycho Bunny expanded in a big way in 2019 going from 2-3 to today 13 stores with 5 being their first US stores, they are a hot trend now with the "in" crowd, even Shaq did a promotion did some charity work with them. So who knows but that $168K in cash from 2019 we can safely say will be at bare minimum 2 to 3 times higher, so there is cash after December 31, 2019.

Like I said I have no idea when they get their % from the books I am going to stick with every 6 months, that is my opinion and my guess, so there is that cash.

The licensed Halloween costumes this year, one for Llama Llama ($40 price tag) and 5 for Rainbow Rangers one being a Walmart Exclusive (Floof) well I would say it is a safe bet they get that money Q1 as Halloween is the #1 sales period for costumes. So that is more cash.

When do they get the money for the DVD sales from Q4? There are already another two out one for each brand Llama Llama and Rainbow Rangers.

When do the get the Kurt Adler ornaments/stockings which were also sold in Walmart, Target, Amazon etc. in Q4 for the holiday season that is their largest sales period, our royalties from that should be Q1 know? There is more money.

https://www.kurtadler.com/department/Llama-Llama

They have since late Q3 added dozens and dozens and dozens of licensed products which they never had before Llama llama had not added meaningfully added to that category in 3-4 years as all effort, money and focus was put into the cartoon series even in the case of the books. But 2 months before the debut 4 new books then in 2018 when the series debuted 9 new titles came out. And wouldn't you know it, royalties started jumping Q1 2018, just saying.

Also from the clearing up the 2015 prospectus with the old investors/warrant holders on January 23rd the got $170,000 from the exercise from some of the Original Warrants @.34 a share.

All this they need money are going to go bankrupt and be liquidated is utter nonsense, naïve and foolish at best.

Watch and learn.

Peace out.