In the ever-evolving animation industry, the allure of our characters and stories extends far beyond the screen. The potential to tap into the off-screen opportunities is immense, mainly when characters are unique and resonate strongly with audiences.

Licensing and merchandising (L&M) are vital avenues to extend the reach and profitability of our animated content. By leveraging audiences' popularity and emotional connection with our properties, we can generate substantial revenue through various consumer products. L&M enhances brand visibility and creates significant revenue streams, making it an essential component of the animation business landscape.

At the Licensing Expo 2024 in Las Vegas, USA, our team, including me, Suriya Thomas, Debi Rosenfeld, and Deb Pierson, had the privilege of showcasing our potential in the L&M market. Our properties, Gummy Bear and Zoonicorn, were a hit, and we're proud to announce the successful launch of the Creepy Candy range of merchandise. This achievement marks a significant milestone for Toonz, demonstrating the immense potential of L&M for our company.

Our participation in the Licensing Expo also opened doors for strategic partnerships. We had the opportunity to engage with leading brand owners, and we're optimistic about the potential collaborations for our current and future projects. We're particularly excited about the L&M opportunities for our properties in India, such as Kid Krrish and Jay Jagannath. Furthermore, we're thrilled to announce our upcoming participation in the Brand Licensing Europe event in London this September, where we aim to further strengthen our L&M initiatives.

The scope of merchandise sales is vast, encompassing everything from apparel and toys to video games and household items. But the future of L&M is even more exciting. The rise of digital merchandise, such as digital toys, downloadable content, and virtual goods, presents new revenue opportunities beyond traditional physical products. We're also exploring the potential of augmented reality (AR) and virtual reality (VR) technologies, which offer innovative ways to enhance consumer experiences and product interactivity. These advancements in our L&M strategies are sure to enhance engagement and brand loyalty among our diverse audience segments.

L&M also involves strategic partnerships with manufacturers, distributors, and retailers, increasing our exposure in global markets and maximizing our reach. By establishing a robust L&M division, we aim to transform it into one of the central business units within Toonz Media Group, driving growth and expanding our footprint in the industry.

We are excited about the future of L&M at Toonz and look forward to sharing more successes as we continue to innovate and grow in this dynamic field.