Can you provide more details about the Partners?
We work with many Partners across the globe whom tend to be region specific although going forward we may work with multiple Partners to deliver the wider portfolio of BRICKLIVE events such as BRICKLIVE Shows, BRICKLIVE Tours (and its various themes), BRICKLIVE Centres and BRICKLIVE KIDS cafes. For example, we are currently working with Live Nation (America and Canada), Exim Entertainment (South America), BECTERO (South East Asia), Grimaldi Forum (Monaco) and HiBrick (South Korea).
How do you select the Partners?
The selection of partners is based on a number of factors such as knowledge of the local and regional markets and their ability to promote, manage and operate the event(s). We want every event to be extremely successful and for that to occur the events need to be resourced accordingly to ensure each show maintains a consitently high standard.
Can you explain the financial model of the business?
Whilst the financial model for each joint venture Partner differs subtly, in essence the Company receives a license and content fee for using the Bricklive product whilst our Partners promote, manage and operate the events and secure revenue through ticket sales. In some cases, the Company has secured a revenue stream through the sale of merchandise.
What is the key risk to our Partners and the Company?
There are a number of macro and micro economic factors which our partners are exposed to, this includes low demand for tickets and subsequently poor sales revenue.
As the Company receives a license and content fee from partners using the Bricklive product, we are not exposed to sales risks unlike our Partners.
The value here extends far beyond the financials from events. How should we think about the value of the brand here?
The Company does not have a contractual relationship with the LEGO Group which provides the Company with greater flexibility to deliver the BRICIKLIVE portfolio of events.
The Company has a diverse portfolio of assets ranging from BRICKLIVE Shows, BRICKLIVE Tours (of varying themes), BRICKLIVE Centres, BRICKLIVE KIDS cafes and also BRICKLIVE Education.
The acquisition of Bright Bricks (one of the world’s premier brick model building companies having built models for Jaguar Land Rover, McLaren, Rolls Royce, Novartis, John Lewis and Force India), will give the Company the ability to deliver multiple events and shows at any one time. Within 12 months, the brand has grown exponentially which is largely attributed to its global presence, our partners and the strategic acquisition of Bright Bricks.
Are there any comparable brands or companies and how do these compare with the Company?
Whilst there are some companies which use the LEGO product, these companies are not comparable given they differ in the scale and number of events hosted, do not have a similar volume of bricks, do not benefit from the range and diversity of the themed Tours nor do they work with some of the world’s largest joint venture partners across 4 continents.
BRICKLIVE events have the flexibility to expand, contract and/or adapt depending on the events, venue and partner requirements and can integrate other elements of the BRICKLIVE brand to deliver a diverse customer experience.
How long do bricks last for?
Given that LEGO bricks are made from durable plastic, they tend to have a very long shelf life. The ‘loose’ bricks can be used for multiple events.