BMKS:
Gamosity, the games and vending division of Brandmakers, imports and manufactures skill machines for amusement and redemption purposes in addition to their line of vending machines. In July, the State of Georgia banned the use of all games of chance. This included video poker, 8 liners and blackjack machines. Consequently, it is estimated that in excess of 40,000 machines had to be picked up and taken out of locations. This created an opportunity for Brandmaker's skill machines such as Royal Magic. Royal Magic is an innovative redemption machine that utilizes mechanical reels, similar to the look and feel of slot machines, which allow players to use their skill to win and redeem prizes. It will not result in a winning combination unless assisted by the player's skill, which is critical to adhering to the laws of Georgia. Royal Magic is very appealing to players that have played Las Vegas style games, and, based on the ban of games of chance, we believe it will have strong appeal amongst such players. In October, 2002, Brandmakers requested and received a positive legal opinion regarding Royal Magic. According to this opinion, Royal Magic adheres to the laws in Georgia regarding redemption machines. Based on this opinion and based on the lack of machines that adhere to the Georgia laws, in October, 2002, Mr. Minard commenced ordering the equipment necessary to manufacture and sell these machines, initially focusing on sales in Georgia. In November, 2002, Brandmakers began taking orders for Royal Magic, and, in January, 2003, Brandmakers began filling such orders. Sales during the quarter included two computer disk vending machines, fifty-four pull tab machines and forty-six Royal Magic machines. During the period, the division hired a full time technician as well as a part time person to assist with assembling machines. Currently, other unique redemption and vending machines are being considered by Brandmakers for development.
