AFFIRMATIVE DISCLOSURE STATEMENT

You should read all of this information carefully before proceeding.

You should read all of this information carefully before proceeding. The total number of consumers who submitted new product ideas to Davison during the past five years
is six hundred forty five thousand nineteen (645,019). Davison does not provide evaluation of commercial potential; thus, it has provided no positive or negative evaluation of this or any other product idea in the last five years. The total number of consumers who were offered a PreDevelopment agreement (or similar contract for research services) is two hundred forty eight thousand three hundred thirty (248,330). The total number of consumers who were offered a Contingency Agreement (or other contract for licensing representation) is two hundred forty eight thousand three hundred thirty (248,330). The total number of consumers who purchased a PreDevelopment Agreement or similar contract for research services is forty seven thousand two hundred eighty four (47,284). The total number of consumers who signed a Contingency Agreement or other licensing representation agreement is forty seven thousand two hundred eighty four (47,284). The total number of consumers who were offered a New Product Sample Agreement (or any other contract for design services for a virtual or a product sample) is thirty five thousand three hundred seventy seven (35,377). The number of consumers who signed a New Product Sample Agreement or similar agreement is seventeen thousand four hundred eighty (17,480). The number of consumers who obtained a written license with a company that is not affiliated with Davison is fifty eight (58). The total number of consumers in the last five years who made more money in royalties or sales proceeds than they paid to Davison, in total, under any and all agreements with Davison, is fifteen (15). This number includes people who first made a profit more than 5 years ago, if they continued to make additional profit during the past five years. The percentage of Davison’s income that came from royalties paid on licenses of consumers’ products is .001%.



Numbers current as of September 14, 2020

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INVENTOR INFORMATION

Davison complies with all regulatory codes. 35 United States Code §297 requires that specific information be provided to you prior to contracting for our services:

Davison does not offer evaluations of idea submissions for commercial potential; therefore, the total number evaluated in the past five years is zero (0), the number of positive evaluations is zero (0) and the number of negative evaluations is zero (0). The total number of customers who have contracted with Davison in the past five years is forty seven thousand two hundred eighty four (47,284). The number of customers who received a net financial profit as a direct result of the company’s services over the company’s history, since 1989, is thirty five (35). Since 1989, the total number of customers known by Davison to have received license agreements for their product ideas as a direct result of Davison’s services is eight hundred thirty seven (837). It is Davison's normal practice to seek more than one contract in connection with a submitted idea. Those contracts are: Pre-Development and/or Representation- Davison will: (a) provide information on products and patents relevant to the development of the product idea; and (b) attempt to locate
a licensee for the product idea after it is fully developed. Davison charges a fee of $895 plus a ten percent commission of all money received by the client on the sale or license of the product. In some cases, only research is provided for that fee. Types of Second Phase Agreements- Depending upon the degree of client preparation and the difficulty of the concept, Davison typically offers either: (a) New Product Sample Agreement or Product Development Agreement- service to professionally design and construct
a product sample or working model, graphics, packaging and presentation materials; (b) Integrated Product Rendering agreement- service to prepare design images and graphics suitable for presentation of the idea; (c) App development- service to develop a computer application for submission to a publisher of applications or for use in conjunction with a developed product; or, (d) Custom agreement- services in one or more areas of video, design work, graphics or package preparation. While the fees for these services are individually quoted based upon the complexity, type and anticipated design work and materials, the fees typically range from $8,000 to $16,000. Additional resentation/Repackaging/Refurbishment- For customers with a New Product Sample Agreement, for $395 we will present the product idea to another potential licensee. We will create an additional set of graphics and, if necessary, refurbish/repair the product sample, working model and packaging. Representation Agreement/eCommerce- Clients who have quantities of professionally manufactured products may be offered this service, which includes targeting potential corporations, presenting the product to potential licensees or distributors, as requested, and attempting to negotiate agreements for the license or distribution of the manufactured product. Similarly, Davison also offers e-commerce assistance to clients seeking to sell their existing stock online. The fee is typically $2,950 plus a ten percent commission on all money received by the client on the sale or license of the product.

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