AFFIRMATIVE DISCLOSURE STATEMENT

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The total number of consumers who submitted new product ideas to Davison during the past five years is, four hundred seventy nine thousand six hundred nine (475,609). 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 Pre-Development agreement (or similar contract for research services) is one hundred seventy three thousand nine hundred sixty eight (173,968). The total number of consumers who were offered a Contingency Agreement (or other contract for licensing representation) is one hundred seventy three thousand nine hundred sixty eight (173,968). The total number of consumers who purchased a Pre-Development Agreement or similar contract for research services is thirty three thousand two hundred thirty six (33,236). The total number of consumers who signed a Contingency Agreement or other licensing representation agreement is thirty three thousand two hundred thirty six (33,236). 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 twenty eight thousand nine hundred fifty two (28,952). The number of consumers who signed a New Product Sample Agreement or similar agreement is fifteen thousand three hundred two (15,302). The number of consumers who obtained a written license with a company that is not affiliated with Davison is zero (0).

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 eight (8). 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 May 18, 2026

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INVENTOR INFORMATION

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 $995 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. Second Phase Agreements- Depending upon the degree of client preparation and the difficulty of the concept, Davison typically offers either: (a) Design and Representation Agreement or Product Development Agreement- service to professionally design and, in some cases, construct a product sample or working model, graphics, packaging and presentation materials; (b) App development- develop a computer application for submission to a publisher of applications or for use in conjunction with a developed product; or, (c) Custom agreement- services in one or more areas of video, design work, graphics, package preparation, or third-party manufacture quoting. 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 $3,000 to $18,000. Additional Presentation Services- For customers with a New Product Sample Agreement, presenting the product idea to other potential licensees is offered as either one presentation or as a package of multiple presentations. When needed, we will create additional graphics and refurbish/repair the product sample and packaging. Fees range from $395 to $4,995. Representation- Clients who have quantities of professionally manufactured products may be offered a Representation 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. Fee is $2,950 plus 10% commission. Test Sales- Davison has a relationship with a company, Jokari/US, Inc., that permits some clients with manufacturing quotes to contract with Jokari to have their products manufactured and offered for test sale through Jokari’s product catalog and website. This contract is between Jokari and the client. Davison receives no compensation. The client pays for all manufacturing costs and defined promotional efforts. This contract varies in price due to the wide variety of manufacturing quotes, but Jokari’s fee for promotion and inclusion in its sales materials is typically $20,000 on top of manufacturing costs. In the past five years, many clients have been able to offer their new products for sale to the public through this arrangement, but the cost is higher than traditional licensing and test sales are unlikely to result in profit. Test sales data may be used to support the pursuit of other options for wider distribution and to make future decisions on manufacturing and pricing.

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