ABOUT EXEO
Exeo Entertainment, Inc. is a Las Vegas, Nevada based technology company focused on developing next gen technology at an affordable price. From our connected devices that change the way we interact and connect to the world - to our audio devices that deliver true 3d immersive sound - our aim is to deliver superior Quality and Value to the consumer. We operate from a 10,068 square foot facility in the heart of Las Vegas, Nevada. We are strategically located minutes from an international airport and all major shipping hubs. We are approximately 270 miles from the ports of Long Beach and Los Angeles, California where international freight is received. In the near future we will be establishing manufacturing facilities in Mexico to reduce costs and to reduce shipping time. We have demonstrated our ability to go from concept to finished product and establish channels of distribution. We are raising expansion capital to accomplish the following: • Increase brand awareness in our audio products through advertising and marketing • Complete Reg. A offering documents and file with the SEC to secure financing of $8,000,000 - $10,000,000 • Utilize funds to complete the development and commercialization of our “Connect” products and expand our audio lineup • Move manufacturing from China to Mexico We are offering accredited investors a convertible note that pays ten percent in annual interest and is convertible into common stock at a discount to market – at the time of conversion. Our stock is already traded over the counter and is a full SEC reporting company. For full details on the investment please see document titled “Private Placement Memorandum,” or select “invest now” to subscribe. Right now, we have a warehouse filled with inventory, established channels of distribution, great reviews, and a full SEC reporting public company. We are about to launch an advertising campaign that will put our products in front of 8-10 million consumers every month. We expect to sell 2000 – 3000 units months which generates $200,000 - $300,000 monthly in the short term and justifies a minimum $2.00 stock price. Our Krankz products offer better pricing and better audio quality than what is currently offered on the market. Our motto is Quality Not Hype. Kids do not want to buy the same brand as mom and dad. As such Krankz Audio is positioned as the must have brand for generation Z. We don’t tell them it’s cool – their peers do.
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OUR INDUSTRY HEADPHONE MARKET Headphones are a $25 billion dollar a year market where the average American household has four pairs. Over 320,000,000 pairs are shipped worldwide every single year and consumers buy a new pair every six months. Bose $3,900,000,000 Beats $1,500,000,000 Skullcandy $300,000,000 Krankz Audio $100,0000,000 plus (Estimated)
Main Competitors: Beats & Skull Candy Demographic: 13-24 Price Point: $39 - $149 Fastest Growing Segments: Wireless Fastest Growing Category: In Ear Primary Buying Reason: Quality & Value
46 PERCENT OF OUR TARGET DEMOGRAPHIC MAKES THEIR DECISION BASED ON WHAT THEY SEE ONLINE. THEY ARE MORE CONCERNED WITH QUALITY AND VALUE AS OPPOSED TO BRAND. 3
KRANKZ MAXX
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KRANKZ STUDIO
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KRANKZ EAR BUDS
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PSYKO AUDIO
PC5.1GAMINHEDST
ProductDesipn If o y u’re a rst pero s n shooter, RPG or MMO enthusiat,s xperience the tim ul ate in a g ming a eg r; the Psyko 5.1 PC a g ming a he t.eds Psyko 5.1s are the rst true surround o s und a spe ker em tsy tbuil ino t aa g ming a he t.eds The retsul is reo v utio l nary. Experience erv y o s und a tde il from all dirc e tions, increasing o y ur reaction timse and givng o y u the .edg Our award winning and a p en t det Psykowave c et hnoloyg a pl ces a spe kers more accuraty el than many room em tsy s. You a he r more a g me a tde il and xperience gra e ert positonal awarense than erv o fbe re.
eaturs PodcF • •
Fiev ina divu l Spa e kers in the breidg of the a he teds – recreating the perc ef t room o s o y u are always in the audio w s te spot. Precison Wavsuideg – naturaly l dreiv the o s und o t o y ur a e rs No Dia git l Sound Procesing – Zero a l en t cy and ina ts nt positonal awarense Pio v ting a e r cusp - stel o y ua he r others without removing the a he t,eds and kesep o y ur a e rs cool Simepl Setup – no o s ware dreriv s, ythe tjus gupl in, tjus like a home a the tre but a e sier Removaebl boom Mic – out of the way, but there when o y u nede it. • • • •
echnialSpftos T
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Headphones • Freq. response: • Low frqe transducers - 150 - Hz • Impda e nce: 120 Ohm • Seny:sitv 105 db +- 1db • High frqe transducers - 150 0,2Hz • Impda e nce: 30 Ohm • Seny:sitv 102 db +- 4db
Avaa il y: bilt Now Part Number/SKU: UPC Code: 9054186
• • •
Cabe:l 1.8m + 1.8m = 3.6 m Jack: 3.5mm Sinegl Weight without a p ckaging: 1.72 kg Microphone • Freq. response: 10 Hz - 16 KHz • Seny:sitv 5-4 dB +- 1 db • Patert n: Omnidirc e tional
PAPC51V3
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FORD OLP
Exeo Entertainment, Inc. is the exclusive distributor of Ford cell phone accessories in North America. All licensed products including power banks, charging stations, branded cabling, chargers, and the like are sold by Exeo. We sell these products to 3,000 plus domestic Ford dealers and 24,500 chain parts stores like Napa, Pep Boys, O’Reilly, Carquest, and AutoZone. Automobile dealers routinely use promotional merchandise to get people on their lot to test drive vehicles. All dealers in competitive markets run promotions to incentivize sales. Ford gets a better-quality product, at wholesale prices, with terms. • • •
Giveaways to Sell More Cars! Generate High Margin Sales while Customers Wait! Promote the Brand!
Once we saturate the Ford dealer network, we intend on executing licensing deals with other manufacturers such as Honda, Toyota, Nissan, and Chevy to increase product scope and drive revenue growth.
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SALES CHANNELS CORPORATE SITE
PRODUCT SITE
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AMAZON SITE
www.amazon.com/krankz
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CAPITAL RAISE Exeo Entertainment, Inc. is currently raising capital through the sale of up to $1.5 million convertible notes.. The note is convertible into free trading shares of common stock. The underlying common stock has not been registered and is restricted. Once the conditions of rule 144 are met the shares become free trading and can be deposited with your broker. This offering is only available to accredited investors. Total Raise: $1,500,000 Shares: Convertible Note Interest: 10% Conversion: Principle + Interest into common at a 50% discount Holding Period: six months from date of note issuance Term: 36 months Exchange: OTCQB (highest tier) Full SEC Reporting Minimum Investment: $50,000 Authorized Shares: 100,000,000 Issued and Outstanding: 29,000,000 Float: 13,000,000 Insider Holdings: 16,000,000 Fully Diluted: 45,000,000 How to Subscribe: 1.) Each Investor must complete an investor suitability questionnaire to determine accredited status and citizenship 2.) Complete and return a copy of: a. Subscription Agreement b. Accredited Investor Questionnaire c. Convertible Note Purchase Agreement d. Remit payment in the form of a check made payable to Exeo Entertainment, Inc. or wire funds
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WHY INVEST? While not a Fortune 500, Exeo entertainment, Inc. provides investors with a ground floor opportunity in a company that: -
Is Already Public Has Proven Products in Proven Markets In a 25 billion Worldwide Industry With Vested Management And Scalabe Revenue Growth Unlimited Upside In a LIQUID Investment With Multiple Revenue Streams
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We Are NOT an Idea, 90 percent of the work has already been done.
SO WHAT’S MISSING?
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PROJECTIONS Krankz Maxx forecast Year one AMAZON PPC Revenue Units Cost of Goods Sold Advertising Amazon Fees Gross Profit
Sales Forecast
$ $ $
Mar-22 29,800 200 7,000 10,000 4,900
$
8,900
$
$ $ $
Apr-22 44,700 300 10,500 15,000 7,350
$
13,350
$
$ $ $
May-22 59,600 400 14,000 20,000 9,800
$
17,800
$
$ $ $
Jun-22 74,500 500 17,500 25,000 12,250
$
22,250
$
AMZ ORGANIC Revenue Units Cost of Goods Sold Advertising Amazon Fees Gross Profit
$ $ $
Jul-22 89,400 600 21,000 30,000 14,700
$ $ $
Aug-22 104,300 700 24,500 35,000 17,150
$
26,700
$
$
$
$
8,940 60 2,100
$ $
$
$ $ $
Sep-22 119,200 800 28,000 40,000 19,600
31,150
$
$
$
13,038 88 3,063
1,500
$
2,188
5,340
$
7,788
$
$ $ $
Oct-22 134,100 900 31,500 45,000 22,050
35,600
$
17,880 120 4,200
$
$
3,000
$
10,680
$
$
$ $ $
Nov-22 149,000 1,000 35,000 50,000 24,500
40,050
$
23,468 158 5,513
$
$
3,938
$
14,018
$
$
$ $ $
Dec-22 149,000 1,000 35,000 50,000 24,500
44,500
$
44,500
$
284,800
29,800 200 7,000
$
33,525 225 7,875
$ $
126,650 850 29,750
$
5,000
$
5,625
$
21,250
$
17,800
$
20,025
$
75,650
$
$
$
$
Totals 953,600 6,400 $ 224,000 $ 320,000 $ 156,800 $
GOOGLE SEARCH Revenue Units Cost of Goods Sold Advertising Shipping
$ 11,375.00 76 $ 2,672 $ 2,500 $ 954
$ 22,750.00 153 $ 5,344 $ 5,000 $ 1,909
$ 34,125.00 229 $ 8,016 $ 7,500 $ 2,863
$ 45,500.00 305 $ 10,688 $ 10,000 $ 3,817
$ 45,500.00 305 $ 10,688 $ 10,000 $ 3,817
$ 45,500.00 305 $ 10,688 $ 10,000 $ 3,817
$ 45,500.00 305 $ 10,688 $ 10,000 $ 3,817
$ $ $ $ $
Totals 250,250 1,680 58,784 55,000 20,994
Gross Profit
$
$
$
$
$
20,995
$
20,995
$
20,995
$
115,472
SOCIAL MEDIA Revenue Units Cost of Goods Sold Advertising Shipping
$ $ $ $ $
87,538 588 20,563 30,000 7,344
$ $ $ $ $
87,538 588 20,563 30,000 7,344
$ $ $ $ $
87,538 588 20,563 30,000 7,344
$ $ $ $ $
Totals 262,613 1,763 61,688 90,000 22,031
Gross Profit
$
29,631
$
29,631
$
29,631
$
88,894
5,249
10,497
15,746
20,995
Revenue Cost of Goods Sold Advertising Amazon Fees Shipping
$ $ $ $ $
29,800 7,000 10,000 4,900 -
$ $ $ $ $
44,700 10,500 15,000 7,350 -
$ $ $ $ $
59,600 14,000 20,000 9,800 -
$ $ $ $ $
85,875 20,172 27,500 12,250 954
$ $ $ $ $
121,090 28,444 35,000 16,200 1,909
$ $ $ $ $
151,463 35,578 42,500 19,338 2,863
$ $ $ $ $
182,580 42,888 50,000 22,600 3,817
$ $ $ $ $
290,605 68,263 85,000 25,988 11,161
$ $ $ $ $
311,838 73,250 90,000 29,500 11,161
$ $ $ $ $
315,563 74,125 90,000 30,125 11,161
$ 1,593,113 $ 374,221 $ 465,000 $ 178,050 $ 43,025
Gross Profit
$
7,900
$
11,850
$
15,800
$
24,999
$
39,537
$
51,184
$
63,275
$
100,194
$
107,926
$
110,151
$
Exeo Entertainment, Inc. Pro Forma (unaudited) 2022
2023
2024
$ 1,080,250 $ 250,250 $ 262,613 $ -
$ 2,380,913 $ 2,320,500 $ 2,102,400 $ 12,500,000
$ 3,478,200 $ 3,822,000 $ 2,682,000 $ 25,069,474
Total Revenues Cost of Revenues Product Cost Advertising Fulfillment Fees Shipping Manufacturers Reps Returns & Allowances
$ 1,593,113
$ 19,303,813
$ 35,051,674
$ $ $ $
374,221 465,000 178,050 43,025
$ 7,848,211 $ 1,830,000 $ 393,482 $ 371,049 $ 1,875,000 $ 937,500
$ 14,879,549 $ 2,160,000 $ 583,591 $ 545,638 $ 3,760,421 $ 1,880,211
Total Cost of Revenues Gross Profit Operating Expenses Research & Development Selling, General, and Administrative Legal & Accounting
$ 1,060,296 $ 532,816
$ 13,255,242 $ 6,048,571
$ 23,809,409 $ 11,242,265
$ $ $
$ 1,544,305 $ 916,500 $ 250,000
$ 2,804,134 $ 1,191,450 $ 300,000
$ 1,380,000 $ 2,710,805 $ (847,184) $ 3,337,766
$ 4,295,584 $ 6,946,681
Revenues Amazon Google Ads Social Media Retail
Total Operating Expenses EBITDA
500,000 705,000 175,000
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532,816
SUMMARY Exeo Entertainment, Inc. is a full SEC reporting company traded over the counter (OTC) under the ticker symbol EXEO. We manufacture consumer electronics with a primary emphasis on audio devices, including patented gaming headphones and music headphones. We have fully developed product sitting in our warehouse and overwhelmingly positive reviews on the units we have sold to date. Exeo is currently raising investment capital to increase brand awareness and launch Krankz Audio in the United States. Funds will be used to generate 8-10 million impressions every month and drive sales. With the successful launch of our advertising campaign, we expect double-digit quarter over quarter revenue growth for the foreseeable future. Revenue growth will lead to an increase in our stock price. While we are currently focusing all of our efforts on launching Krankz Audio and growing our revenue base, we do have other products and revenue streams that will come online once Exeo Entertainment, Inc. is profitable and no longer reliant on outside capital. All of our forecasts at present only include the revenue generated from Krankz. It is likely that actual sales will be much higher when they include the relaunch of the Ford branded cell phone accessories that are expected to be sold at U.S. Ford dealers and parts stores like NAPA, Pep Boys, and O’Reilly. We have no intentions of sitting on our hands and intend on growing through new product development, licensing and strategic acquisitions. For additional details please refer to two separate documents titled (1) Marketing Overview, and (2) 2021 Note PPM
Additional Information Exeo Entertainment, Inc. 4478 Wagon Trail Ave Las Vegas, NV 89118 Phone: 702-361-3188 Fax 702-361-4359 Corporate Website: Krankz™ Audio:
www.exeoent.com www.krankzaudio.com
Social Media: https://twitter.com/KrankzAudio https://www.facebook.com/ExeoEntertainment/ https://www.facebook.com/krankzaudio/ https://www.instagram.com/krankzaudio/ Stock & Financial: www.otcmarkets.com www.sec.gov 14