IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE

IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE

In re: RUME, INC., a Delaware corporation,

Assignor, To: RUME ABC, a series of DSI ABCs, LLC, a Delaware series limited liability company,

Assignee.

C.A. No. 2020-0917-PAF

ASSIGNEE’S MOTION FOR AN ORDER (I) APPOINTING APPRAISERS PURSUANT TO 10 DEL. C. § 7382 AND (II) ESTABLISHING BOND

AMOUNT PURSUANT TO 10 DEL. C. § 7383

Assignee RuMe ABC (“Assignee”), a series of DSI ABCs LLC, a Delaware

series limited liability company, in its sole and limited capacity as the assignee for

the benefit of creditors of RuMe, Inc. (“Assignor”) under a General Assignment for

the Benefit of Creditors dated October 26, 2020 (the “Assignment Agreement”),

respectfully moves (this “Motion”) this Court for entry of an order (i) appointing

two (2) disinterested appraisers pursuant to 10 Del. C. § 7382 and (ii) establishing

the amount of the bond to be given by Assignee pursuant to 10 Del. C. § 7383. In

support of this Motion, Assignee states as follows:

1. On October 26, 2020 (the “Petition Date”), Assignee commenced this

proceeding by filing a Verified Petition for Assignment for the Benefit of Creditors

EFiled: Nov 20 2020 11:52AM EST Transaction ID 66129838Case No. 2020-0917-PAF

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(the “Petition”). A copy of the General Assignment for the Benefit of Creditors by

and between Assignee and Assignor (the “Assignment”) was annexed to the Petition

as Exhibit A.

2. On November 4, 2020, this Court entered an Order on Petition for

Assignment for the Benefit of Creditors (the “Jurisdiction Order”), asserting

jurisdiction over the Petition pursuant to 10 Del. C. §§ 7381 et seq. and directing

notice to known creditors of Assignor.

3. In accordance with the Jurisdiction Order, on November 9, 2020,

Assignee served upon Assignor’s known creditors a copy of the Petition, the

Jurisdiction Order, and the deadline to serve claims on Assignee

4. Prior to the Assignment, Assignor operated a creative design company

that offered customizable consumer retail products, including eco-friendly reusable

tote bags and other travel accessories.

5. The Petition and Assignment provide that Assignor is unable to pay its

debts in full.

6. Concurrently herewith, Assignee filed an affidavit and schedule of

inventory (the “Inventory Affidavit” and the “Inventory”, respectively) in

accordance with 10 Del. C. § 7381.

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Requested Relief

I. Appointment of Two Disinterested Appraisers

7. Pursuant to 10 Del. C. § 7382, the Court shall appoint two (2)

disinterested appraisers to conduct appraisals of the assignment estate. Specifically,

section 7382 provides:

Upon the filing of the inventory and affidavit required by § 7381 of this title, the Court of Chancery shall appoint 2 disinterested and competent persons to appraise the estate assigned, who shall, after being duly sworn or affirmed by some person having authority to administer oaths, to perform their duties with fidelity, forthwith proceed to make an appraisement of the estates and effects assigned, according to the best of their judgment, and having completed the same, shall return the inventory and appraisement to the office of the Register in Chancery of the county in which the inventory of the assignee and the affidavit accompanying the same were filed. The appraisers shall receive the same compensation as is now allowed by law to appraisers of the estate of a decedent.

10 Del. C. § 7382.

8. Accordingly, under section 7382, Assignor’s assets and estate must be

appraised by two disinterested appraisers who will provide appraisals on the

inventory, machinery and equipment assets of Assignors. Assignee believes that all

parties will be best served by having an inventory, machinery and equipment

appraiser who is experienced in the liquidation industry.

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A. The Proposed Appraisers

9. Assignee proposed that HYPERAMS, LLC (“HYPERAMS”) and

Onyx Asset Advisors, LLC (“Onyx”) be retained to appraise Assignor’s inventory,

machinery and equipment. HYPERAMS and Onyx each have one disinterested and

certified appraiser who will appraise Assignor’s inventory to and equipment.

10. HYPERAMS is a certified and experienced appraisal firm that has

performed thousands of appraisals including valuations of inventory, machinery and

equipment. The Assignee requested HYPERAMS prepare an appraisal in

conformity with the Uniform Standards of Professional Appraisal Practice and the

American Society of Appraisers. A copy of the appraisal prepared by HYPERAMS

of Assignor’s inventory, machinery and equipment is attached hereto as Exhibit A.

11. Assignee obtained a second independent appraisal from Onyx, a

certified and experienced appraisal firm, which conducted an appraisal of Assignor’s

inventory, machinery and equipment. Onyx’s appraisal was also prepared in

conformity with the Uniform Standards of Professional Appraisal Practice. A copy

of the appraisal performed by Onyx of the inventory, machinery and equipment is

attached hereto as Exhibit B.

12. The appraisers from HYPERAMS and Onyx are disinterested as set

forth in the affidavits of each proposed appraiser attached hereto as Exhibits C and

D, respectively. In addition, in support of this Motion, Assignee relies on the

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Affidavit of Steven Victor (the “Victor Affidavit”), attached as Exhibit E. Mr. Victor

is an authorized representative of Assignee.

13. Assignee submits that the separate appraisals by HYPERAMS and

Onyx comply with 10 Del. C. § 7382, including the requirement that two (2)

disinterested and competent persons appraise Assignor’s assets after being duly

sworn or affirmed by some person having authority to administer oaths, and perform

their duties with fidelity, forthwith and proceed to appraise the assignment estate to

the best of their judgment.

14. HYPERAMS and Onyx conducted desktop appraisals of the

assignment estate based upon a review of a list of assets owned by the Assignor,

photographs and information concerning the assets provided by Assignee and

research pertaining to the marketability of those assets. No site visits were conducted

by the appraisers.

B. Intellectual Property

15. In addition to the inventory, machinery and equipment, Assignor also

owned a portfolio of intellectual property, consisting of, inter alia, patents and

trademarks concerning Assignor’s related brands and e-commerce platforms

(collectively, the “IP Assets”). Such intangible assets are difficult to value and

typically cannot be valued against comparable property given the unique nature of

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these assets. See Victor Affidavit at ¶ 6. In addition, any appraisal that could be

obtained would typically be prohibitively expensive. Id.

16. Assisted by an investment banker retained pre-assignment by Assignor,

Assignee has been negotiating the arm’s length sale of substantially all of Assignor’s

assets, including certain intellectual property, with a disinterested third party. See

Affidavit of William D. Busko II (the “Busko Affidavit”) at ¶¶ 6-7, attached as

Exhibit F.

17. Assignor began working with the investment banker (“Consensus”) in

August 2020. Id. at ¶ 4. Company materials were provided to Consensus, and an

indicative list of potential acquirers was provided by Consensus. Id. In September

2020, Consensus completed a twenty-nine page Confidential Information

Memorandum, as well as a two page teaser. Id. at ¶ 5. Also, a list of potential

buyers was finalized in discussions between the Assignor and Consensus, and

Consensus contacted such parties. Id. In total, twenty-two parties were contacted

and reached, of which sixteen were strategic parties and six were financial parties.

Another three strategic parties did not respond. Id.

18. Confidentiality agreements were executed by six parties. Id. at ¶ 6.

There was no party that expressed interest, but was unwilling to execute the

confidentiality agreement. Id. Further, these six parties had calls with Assignor’s

management. Id. Three proposals were received, of which two were in writing and

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one was provided verbally. Id.. Ultimately, one party was the selected acquirer (the

“Buyer”). Id. Of the other two parties, one had unexpected issues unrelated to

Assignor that caused it to pause its interest, and the other party could not ultimately

commit itself. Id.

19. The Buyer is an entity known to Assignor through a working

relationship involving Assignor’s brand, which the Buyer wants to continue to use.

Id. The Buyer expects to realize certain synergies. Id. Thus, the Buyer had the

motivation to win the marketing process and has the ability to close the transaction.

Id.

20. The proposed purchase price is 141% of the value of the inventory and

equipment. Id. at ¶ 7. Therefore, the Court is presented with a reliable indicia of

value of the IP Assets as a result of this pending sale. Id. at ¶¶ 7-8. Assignee asserts

that that this value can be accepted as the indicated value for the IP Assets and that

no other appraisal of the IP Assets is needed. See id.

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C. Compensation of the Appraisers

21. Section 7382 provides that “[t]he appraisers shall receive the same

compensation as is now allowed by law to appraisers of the estate of a decedent.” 10

Del. C. § 7382. There is currently not an established amount of compensation the

appraisers of the estate of a decedent may receive under Delaware law.

Consequently, Assignee proposes that the appraisers may be compensated as

follows:

• HYPERAMS has been provided with a fee of $10,000 inclusive of all costs and out of pocket expenses incurred in connection with its engagement.

• Onyx has been provided with a fee of $8,500 inclusive of all costs and out of pocket expenses incurred in connection with its engagement.

II. The Bond Amount

22. Section 7383 requires Assignee to give bond upon the filing of the

inventory and appraisals required by 10 Del. C. § 7382:

(a) The assignee shall, as soon as the inventory and appraisement required by § 7382 of this title have been filed, give bond with sufficient surety, to be approved by the Court of Chancery in an amount fixed by the Court, being not less than the total amount of inventory and appraisement of the estate so assigned. . .

10 Del. C. § 7383

23. Assignee respectfully requests that the bond amount be set at $1

million, which was calculated based upon the appraised value of the Assignor’s

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assets including the inventory, machinery and equipment, and the IP Assets, plus the

cash and charge back reserve held by Assignee on behalf of Assignor as follows:

Asset Amount

Approximate Cash On Hand $360,000.00

Average Appraised Value of Inventory $97,675.00

Average Appraised Value of Equipment $222,500.00

IP Asset Value Unknown1

Approximate Cost of Bond ($35,000.00)

TOTAL $714,175.00

24. Assignee respectfully submits that a bond amount of $1 million

complies with 10 Del. C. § 7383, which requires a bond in an amount not less than

the “total amount of the inventory and appraisement of the estate so assigned.”

Notice

25. Assignee will serve notice of this Motion on all known creditors as of

Assignor as of the Petition Date and provide creditors with fourteen days’ notice by

first class mail or electronic mail (where known) to respond to this Motion. After the

expiration of this objection deadline, Assignee will either submit a new proposed

1 As noted in Paragraph 16, supra, and the Busko Affidavit, Assignee has negotiated a sale of Assignor’s assets that indicates Assignor’s intellectual property is worth several thousand dollars. Accordingly, while the value of Assignor’s tangible assets have an appraised value of approximately $715,000.00, Assignee proposes a bond in the amount of $1 million to account for the indicative and potential value of the intellectual property.

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order addressing any objections or, if there are no objections, Assignee will request

that the Court enter the proposed form of Order filed contemporaneously herewith.

WHEREFORE, Assignee respectfully requests the entry of an order,

substantially in the form submitted to the Court herewith, appointing HYPERAMS

and Onyx as appraisers in this proceeding pursuant to 10 Del. C. § 7382 and

establishing a bond in the unsecured amount of $1 million pursuant to 10 Del. C. §

7383.

Dated: November 20, 2020 DUANE MORRIS LLP

Wilmington, Delaware /s/ Jarret P. Hitchings Michael R. Lastowski (DE 3892) Christopher M. Winter (DE 4163) Jarret P. Hitchings (DE 5564)

222 Delaware Avenue, Suite 1600 Wilmington, DE 19801-1659 Telephone: (302) 657-4900 Facsimile: (302) 657-4901 [email protected] [email protected] [email protected] Counsel to RuMe ABC, solely in its capacity as Assignee for the Benefit of Creditors of RuMe, Inc.

Words: 1848

Asset Appraisal for:

RUME ABC

Prepared by: Onyx Asset Advisors, LLC 655 Montgomery Street - Suite 700 San Francisco, CA 94111

November 12, 2020

Table of Contents

Executive Summary Page 3 Background Information Page 5 Appraisers Certification Page 6 Approach to Value Page 7 Opinion of Value Page 8 Methodology Page 9 Appraisal Results – Finished Goods Inventory Page 10 Appraisal Results – Materials & Packaging Supplies Page 11 Appraisal Results – Property and Equipment Page 12 Appraisal Summary Page 14 Qualifications Page 15 Appendix Schedule 1 – Tangible Assets from Assignee Schedules Page 18 Schedule 2 – List of Information Provided by RUME ABC LLC Page 36 Schedule 3 – Statement of Disinterestedness Page 37

Executive Summary Engagement, Scope Assumptions and Limiting Conditions RuMe ABC, LLC (“RUME ABC”) a Delaware limited liability company, engaged Onyx Asset Advisors, LLC (“Onyx”) to value selected assets (the “Assets”) assigned to it by RuMe, Inc. (hereinafter “RuMe” or the “Company”). The Assets to be appraised were as provided by RUME ABC and included Fixed Assets and Inventory as detailed in Appendix 1. The Intended Use of this appraisal (the “Appraisal” or the “Report”) is to “make an appraisement of the estates and effects assigned” in accordance with Delaware law (10 Del. C. $7381) in the case of RuMe Atlanta, LLC a Delaware corporation, Assignor, To: RUME (ABC), LLC, Assignee, C. A. No. 2020-0512-MTZ. The Intended Users of this Appraisal are employees or agents of RUME ABC, and the Court of Chancery of the State of Delaware. The Effective Date of this Appraisal is the date of the assignment, October 26, 2020, but prior to any disposal of Assets by RUME ABC. Since RUME ABC commenced efforts to immediately sell specified assets assigned to it, this Appraisal will provide a Forced Liquidation Value which assumes either an expedited public auction, negotiated sale or liquidation of the Assets in an under 90-day-time frame. The scope of this Appraisal consisted of a “desktop” analysis of the selected Assets assigned to RUME ABC. Onyx did not conduct an inspection, sample or otherwise, of the Assets that comprise the scope of this Appraisal. All provided information was assumed to be true and correct. To the extent that the asset descriptions, either in the list(s) provided or in any of the other information made available by RUME ABC, are insufficient for appraisal, Onyx has made certain assumptions about selected Assets in order to complete this Appraisal. Onyx reserves the right to exclude any Assets from the scope of this Report if determined that a reasonable valuation opinion could not be formulated based on the information provided. Possible environmental hazards from any source is beyond the scope of this Appraisal. At the time of the assignment, the Assets were said to be located at the RuMe facilities in Centennial, Colorado. This Appraisal has been made in general conformance with accepted appraisal practices in the American Society of Appraisers Standards and Procedures of Professional Appraisal Ethics and Practice and the Uniform Standards of Professional Appraisal Practice. All Assets are represented as owned by RuMe, Inc. and assigned to RUME ABC. Onyx made no further investigation of ownership, liens or encumbrances related to the Assets that are the subject of this Appraisal. Onyx did not perform an audit or asset reconciliation in connection with this Appraisal. Onyx reviewed data provided by RUME ABC pertinent to evaluating the Assets and has assumed all provided information to be true and correct.

Onyx has no present or prospective interest in the Assets that are the subject of this Report and has no personal interest or bias with respect to the parties involved. The fees for this Appraisal are not contingent upon values reported. All facts and data developed in this Appraisal are based upon estimates of value only and are true and accurate to the best of the Onyx’s knowledge and belief. Information provided by others has been assumed to be correct for the purposes of this Appraisal and the Onyx takes no responsibility for the accuracy of it. Since the conclusions contained herein are based upon judgements and assessments, isolation of any single element of this Report as the sole basis of comparison to the whole appraisal may be inaccurate. This Appraisal is a summary report. As such, there is some information used by Onyx which is not shown in detail in the Report. Should such information be required, Onyx has it on file and can furnish upon request to entitled parties.

Background Information

Colorado based RuMe was founded in 2008 by Jae and Kathryn Lee and develops innovative reusable bags designed for the environmentally conscious consumer. The company's reusable bags are denier-polyester shopping bags that can be reused as well as rolled together for compact storage when not in use and is designed and packaged following a no-waste philosophy, enabling individuals to avail eco-friendly and biodegradable bags keeping the quality, affordability, and keeping the style intact. Assignor is indebted to creditors, including their respective landlords, and unable to operate as going concern entity as a result of the current COVID-19 pandemic and other issues. Prior to the Assignor’s execution of the General Assignment and related documents, the Assignor’s Board of Directors extensively explored, with the aid of seasoned professionals, options to maximize value for its constituents. For various reasons, none of these options were viable, and thus, Assignor determined that the filing of an assignment for the benefit of creditors was the most appropriate mechanism for acting in the best interests of its creditors and shareholders. With no other options available, on October 26, 2020, the Company assigned all its assets to RUME (ABC) in a General Assignment for the Benefit of Creditors.

Appraiser’s Certification

I certify that, to the best of my knowledge and belief: The statements of fact contained in this Report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions and not a guarantee of value. I have no present or prospective interest in the property that is the subject of this Report or to the parties involved with this assignment. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this Report within the three-year period immediately preceding acceptance of this assignment. My engagement in this assessment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions and conclusions were developed, and this Report has been prepared, in general conformance with the Uniform Standards of Profession Appraisal Practice and the standards of the American Society of Appraisers. I have not made an inspection of the Assets that is the subject of this Report. No one provided significant appraisal assistance to the person signing this certification. Certified this 12th day of November at San Francisco, CA

K. Kevin Otus, ASA

Stephen Gross, CPA

Approach to Value The Sales Comparison / Market Approach to Value A procedure to conclude an opinion of value for an asset by comparing it with similar assets that have been sold or are for sale in the relevant marketplace by making adjustments to prices based on marketplace conditions and the properties’ characteristics of value. Onyx utilized the Sales Comparison Approach for this Report. The Sales Comparison Approach is the most accurate valuation method for assets affected by technological obsolescence. In the absence of direct comparable sales, Onyx relies on comparable sales of similar assets and the opinion of dealers active in the secondary market. Onyx also receives data from public auction results nationwide. The Sales Comparison Approach to Value takes into account all forms of obsolescence – physical, economic, and functional (technological). The Income Approach to Value A procedure to conclude an opinion of present value by calculating the anticipated monetary benefits (such as a stream of income) for an income-producing property. The Income Approach to Value was deemed impalpable and not utilized on this appraisal due to the nature of the assets being appraised. The Income Approach to Value works best on investment and income type properties traded for their income value. The Cost / Replacement Approach to Value A procedure to estimate the current costs to reproduce or create a property with another of comparable use and marketability. The Cost Approach to Value was deemed impalpable and not utilized because of the nature of the assets being appraised. The Cost Approach to Value is best utilized on properties that have inherent value to the owner, such as custom-built machinery or in such cases where market data is not readily available. The value derived from this method is linked to the predicted functional life of the product.

Opinion of Value

Onyx Asset Advisors, LLC 655 Montgomery Street - Suite 700,

San Francisco, CA 94111

Does Herby CERTIFY

That our Opinion of Value of the Tangible Assets Assigned to

RUME ABC LLC

Are well and reasonably worth:

$266,000 (Two hundred sixty-six thousand U.S. Dollars)

On the Basis of a Rapid Sale of All Assets under 90 Days after Effective Date

Effective Date: October 26, 2020 Certified this 12th day of November 2020 at San Francisco, CA

K. Kevin Otus, ASA

Stephen Gross, CPA

Methodology

The initial step on the appraisal was to determine which classes of assets need to be sold together and which assets could be sold individually, under the requirement for rapid sale of assets (90 days). For the purpose of this appraisal, the following classes of assets have been evaluated: Tangible Assets – Inventory

The Inventory consists of finished goods ready for sale

Tangible Assets – Material and Supplies The Inventory consists of materials and packaging supplies

Tangible Assets – Fixed Assets The Fixed Assets consists of office furniture and equipment, warehouse equipment, molds and leasehold improvements.

Based on the experience of Onyx and on the current circumstances of RuMe, these classes of assets are generally the logical groupings for sale. For each grouping of assets being evaluated, the applicability of one or more of the three traditional valuation methodologies – Market Value, Replacement Value or Income Value – is established and the one or ones most appropriate for quick sale are selected. Detail descriptions of the assumptions made, and calculations used are contained in the section for each valuation.

Appraisal Results – Finished Goods Inventory

The Finished Goods Inventory consists of various RuMe products available for sale. Onyx found each 236 of the 305 products listed on the Inventory Listing for sale online by multiple sellers. The retail price online for these items average 307% of listed cost. This amount was used to calculate the sale value of the remaining 69 items. Retailers would generally pay five to ten cents of the retail price in a liquidation sale. A detailed schedule of the Finished Goods Inventory and online pricing and resulting values can be found in Schedule 1 of this Report. A summary of the schedule is as follows

Given the availability for sale Onyx values the Finished Goods Inventory at the midpoint of these two values which is $169,320.

Tangible Assets – Finished Goods Inventory Market Value appraisal (to the nearest $1,000):

$169,000

The Replacement Value of the Inventory is not a valid measure of value for the purposes of quick sale. There are not any market forces that would drive prices at auction or sale to dealers to new replacement values even after deducting obsolescence reserves. The Income Value method of appraisal is not a valid approach for the Inventory as the equipment itself does not generate an ongoing income.

For Tangible Assets – Finished Goods Inventory – the appraiser selects Market Value:

$169,000

Quantity Extended

Cost Value at 5%

of Retail Value at 10%

of Retail 398,341 608,550$ 112,880$ 225,760$

Appraisal Results – Materials & Packaging Supplies

The Materials & Packaging Supplies Inventory consists of the following of materials, packaging supplies, paper and ink. Detail schedules of the Raw Materials Inventory can be found in Schedule 1 of this report. A summary schedule of these assets and the value assigned by the appraiser is as follows:

Tangible Assets – Materials & Packaging Supplies Market Value appraisal (to the nearest $1,000):

$26,000 The Replacement Value of the Inventory is not a valid measure of value for the purposes of quick sale. There are not any market forces that would drive prices at auction or sale to dealers to new replacement values even after deducting obsolescence reserves. The Income Value method of appraisal is not a valid approach for the Inventory as the equipment itself does not generate an ongoing income.

For Tangible Assets – the appraiser selects Market Value:

$26,000

Category Cost Value % ValueInk 9,118$ 10% 912$ Materials 52,767$ 25% 13,192$ Packaging 108,755$ 10% 10,875$ Paper 13,850$ 10% 1,385$ Total 184,490$ 14% 26,364$

Appraisal Results – Property and Equipment

The Property and Equipment has been acquired over the past 9 years through the assignment date as summarized in this table:

Due to rapid obsolescence and poor condition of the assets, the Market Value of the Property and Equipment is based primarily on age. Using values found for similar items in used marketplaces, the following values are assigned by year of acquisition:

Applying the valuation factors above gives the following market value results:

Tangible Assets – Computer Equipment Market Value appraisal (to the nearest $1,000):

$71,000

Category Less Than 1 Yr 1 - 2 Years 3 - 4 Years 5 - 6 Years 7 or More Yrs TotalComputers 3,532 2,408 21,738 4,407 - 32,085 Leased Assets 64,999 64,999 Offeice Furniture & Equipment 3,117 12,545 5,858 7,668 29,187 Other Molds 1,650 1,650 Plate Molds 610 34,900 6,490 61,150 103,150 Mimaki Wide Printers 47,526 91,761 139,287 Printers and Printing Equipment - 45,720 98,151 21,787 13,972 179,630 Tenant Improvements 7,795 70,500 - 78,295 Forklifts 14,319 5,766 20,085 Warehouse Equipment 53,992 39,537 26,339 536 120,403

Totals 15,054 249,545 356,691 58,390 89,092 768,772

Category Less Than 1 Yr 1 - 2 Years 3 - 4 Years 5 - 6 Years 7 or More YrsComputers 40% 30% 15% 5% 0%Leased Assets 0% 0% 0% 0% 0%Offeice Furniture & Equipment 25% 15% 10% 5% 0%Other Molds 0% 0% 0% 0% 0%Plate Molds 0% 0% 0% 0% 0%Mimaki Wide Printers 40% 30% 15% 5% 0%Printers and Printing Equipment 20% 15% 10% 5% 0%Tenant Improvements 0% 0% 0% 0% 0%Forklifts 75% 50% 25% 10% 0%Warehouse Equipment 25% 15% 10% 5% 0%

Category Less Than 1 Yr 1 - 2 Years 3 - 4 Years 5 - 6 YearsMore than 7 Yrs TotalComputers 1,413 722 3,261 220 - 5,616 Leased Assets - - - - - - Offeice Furniture & Equipment 779 - 1,254 293 - 2,327 Other Molds - - - - - - Plate Molds - - - - - Mimaki Wide Printers - 14,258 13,764 - 28,022 Printers and Printing Equipment - 6,858 9,815 1,089 - 17,762 Tenant Improvements - - - - - - Forklifts - - 3,580 - 3,580 Warehouse Equipment - 8,099 3,954 1,317 - 13,369

Totals 2,192 29,937 35,628 2,920 - 70,676

The Replacement Value of the Computer Equipment is not a valid measure of value for the purposes of quick sale. There are not any market forces that would drive prices at auction or sale to dealers to new replacement values even after deducting obsolescence reserves. The Income Value method of appraisal is not a valid approach for the Computer Equipment as the equipment itself does not generate an ongoing income.

For Tangible Assets – Property and Equipment the appraiser selects Market Value:

$71,000

Appraisal Summary

Finished Goods Inventory $ 169,000 Materials & Supplies $ 26,000 Property & Equipment $ 71,000 ___________ Total Appraised Value $ 266,000

Qualifications

K. Kevin Otus, ASA

Onyx Asset Advisors, LLC – Managing Partner (Apr 2016 – Present)

Mr. Otus is responsible for the overall operations of the firm. His responsibilities include negotiating, contracting, overseeing and reviewing all disposition and valuation projects, as well as coordinating all sales and marketing efforts. He has conducted or advised on over 200 dispositions.

History

Gordon Brothers Group, Commercial and Industrial – Senior Managing Director (Jan 2013 – Mar 2016) Responsible for sourcing and evaluating opportunities for Gordon Brothers Group’s Commercial & Industrial, Retail, Real Estate and Valuation practice groups. Worked directly with clients in developing and implementing strategies to monetize underperforming and excess assets across a broad spectrum of industries.

Emerald Technology Valuations, LLC – Founder and President (Aug 1997 – Dec 2012) Responsible for the day-to-day management of one of the industry’s most respected technology valuation and disposition firms. Oversaw and reviewed all projects as well as being responsible for all sales and marketing campaigns. Additional duties included project coordination, contract negotiations and strategic alliance formation.

Dovetech, Inc. – President (Aug 1990 – Jul 1997) Served as President of Dovetech, Inc. (currently known as GoIndustry-DoveBid Valuations Services) overseeing the day-to-day management of the company. Previous positions held at Dovetech, Inc. included Director of Valuation Services and Senior Appraiser.

Affiliations & Certifications

Senior Member Designation—American Society of Appraisers

Appraisal Foundation—Uniform Standards of Professional Appraisal Practice (USPAP)

Turnaround Management Association San Francisco Chapter – Executive Board Member

Education

University of San Francisco—Bachelors of Science, Finance

Formal Presentations

2020 Bar Association of San Francisco – Webinar - “Bankruptcy Issue Spotting in the Age of COVID-19”

2018 American Bankruptcy Institute – SW Conference - “Winding Down Companies When Bankruptcy is Not an Option”

2015 American Society of Appraisers – International Conference “Semiconductor Equipment Liquidation: A Case Study”

2015 Turnaround Management Association – NorCal Chapter “Strategies - Maximizing Value in Distressed Companies”

2014 Turnaround Management Association – National Conference - “Pitch Perfect: A Mock Pitch Event”

2011 Commercial Finance Association & Turnaround Management Association – NorCal Chapters “Valuation, Financing, Restructuring & Liquidation in the Current Volatile Economy?”

2006 Commercial Finance Conference of California – “Do You Really Know What Your Collateral is Worth?”

2004 Commercial Finance Conference of California – Orange County Chapter “What Is Hot and What Is Not”

2002 American Society of Appraisers – International Conference “Appraising PCB Manufacturing Equipment”

2001 Association of Insolvency & Restructuring Advisors – “Use of the Internet”

1998 Commercial Finance Conference of California “Advanced Principles – Asset Based Lending”

1997 American Society of Appraisers—International Conference “Effects of Auctions on the MTS Marketplace”

1996 Commercial Finance Association – National Convention “Minimizing High Tech Collateral Risk”

1995 Commercial Finance Association – New England Chapter “Inventory Valuations—Market Trends”

Stephen J. Gross

Chief Financial Officer – Onyx Asset Advisors, LLC

Mr. Gross is responsible for the financial functions of Onyx. He brings to the firm over thirty years of experience, specializing in internal and external reporting, budget management and forecasting, financial analysis, financial audit management, system implementation and contract negotiation.

History

Heritage Global Partners, Inc. – Chief Financial Officer (2009 – 2014)

Responsible for the implementation of the accounting and finance functions for the auction and appraisal firm, including integration with a Canadian based public company acquirer and three European subsidiaries in England, Spain and Germany. Other responsibilities included cash management and reporting for auction clients, accounts receivable, accounts payable, payroll financial reporting, human resource compliance and risk management.

J. Sosnick and Sons. – Controller (2009)

Served as key resource responsible for overseeing the entire accounting functions of a fourth generation family managed candy and confections distributor. Handled all the firms accounts receivable, accounts payable, payroll, financial reporting, human resource compliance and risk management.

First Virtual Group. – Controller (2006 – 2008)

Served Took charge of accounting and accounts payable tasks of the multi-entity payables driven office. Handled the preparation of monthly income statements for forty-two entities and the consolidation of the balance sheet and income statement.

Dovebid, Inc. – Corporate Controller (2005 – 2006)

Managed finance and reporting functions for a venture backed national auction and appraisal firm. Responsible for cash management, accounts payable, financial reporting, and risk management.

Ross-Dove Company, Inc./Dove Brothers, Inc. – Corporate Controller (1987 – 1998)

Privately held predecessor to Dovebid, Inc. Same role and responsibilities as at Dovebid.

Affiliations & Certifications

Certified Public Accountant—State of California

Education

California State University, Northridge - Bachelors of Science, Business Administration, Accounting Option

University of California, Santa Barbara – Coursework in Mathematics and Computer Science

Appendix 1

Tangible Assets

Item Number Item Description On HandUnitCost

Extended Cost Online Sales

Liquidation Value @.05

Extended Value


Extended Value

2009 Medium Tote Black 709.00 1.84$ 1,307.95 3.60 0.18 127.62 0.36 255.24 2025 Medium Tote Navy 20.00 1.79$ 35.70 3.60 0.18 3.60 0.36 7.20 2062 Medium Tote Downing 112.00 1.89$ 212.24 3.60 0.18 20.16 0.36 40.32 3009 Mini Tote Black 624.00 1.61$ 1,002.97 5.55 0.28 173.16 0.56 346.32 3062 Mini Tote Downing 20.00 1.72$ 34.40 5.55 0.28 5.55 0.56 11.10 4009 Macro Tote Black 16.00 1.89$ 30.31 3.60 0.18 2.88 0.36 5.76 4062 Macro Tote Downing 21.00 1.84$ 38.73 3.60 0.18 3.78 0.36 7.56 4088 Macro Tote Harper 18.00 1.95$ 35.01 3.60 0.18 3.24 0.36 6.48 4098 Macro Tote Syrah 5.00 1.95$ 9.73 3.60 0.18 0.90 0.36 1.80 6558 Baggie All Spring Greenwich 1,555.00 0.99$ 1,547.22 5.50 0.28 427.63 0.55 855.25 6559 Baggie All Downing 4,018.00 1.25$ 5,038.66 5.50 0.28 1,104.95 0.55 2,209.90 6560 Baggie All Clementine 5.00 0.99$ 4.97 5.50 0.28 1.38 0.55 2.75 6561 Baggie All Navy Downing 33,059.00 0.84$ 27,932.65 5.50 0.28 9,091.23 0.55 18,182.45 6562 Baggie All Navy 817.00 1.67$ 1,360.31 5.50 0.28 224.68 0.55 449.35 6583 Baggie All Emerson 5.00 1.28$ 6.42 5.50 0.28 1.38 0.55 2.75 6584 Baggie All Herringbone 5.00 1.01$ 5.07 5.50 0.28 1.38 0.55 2.75 6586 Baggie All Echo 5.00 1.00$ 5.01 5.50 0.28 1.38 0.55 2.75 6588 Baggie All Harper 3.00 1.03$ 3.10 5.50 0.28 0.83 0.55 1.65 6592 Baggie All Maisie 5.00 1.17$ 5.87 5.50 0.28 1.38 0.55 2.75 6594 Baggie All Heather Grey 150.00 1.18$ 176.71 5.50 0.28 41.25 0.55 82.50 9009 GTO Black 1,770.00 5.60$ 9,907.94 25.00 1.25 2,212.50 2.50 4,425.00 9050 GTO Winny 610.00 6.25$ 3,809.45 25.00 1.25 762.50 2.50 1,525.00 9051 GTO Maisie 466.00 6.25$ 2,910.17 25.00 1.25 582.50 2.50 1,165.00 9052 GTO Hudson 544.00 6.24$ 3,397.28 25.00 1.25 680.00 2.50 1,360.00 9053 GTO Poppy 396.00 6.54$ 2,591.08 25.00 1.25 495.00 2.50 990.00 9062 GTO Downing 1,591.00 5.89$ 9,363.16 50.00 2.50 3,977.50 5.00 7,955.00 9065 GTO Navy Downing 5,851.00 5.92$ 34,648.38 25.00 1.25 7,313.75 2.50 14,627.50 9083 GTO Emerson 755.00 5.92$ 4,473.11 25.00 1.25 943.75 2.50 1,887.50 9094 GTO Heather Grey 1,035.00 6.71$ 6,945.19 25.00 1.25 1,293.75 2.50 2,587.50 9095 GTO Marble 20.00 6.55$ 130.90 25.00 1.25 25.00 2.50 50.00 301323 Baggie All Tropicana 5.00 0.85$ 4.25 5.50 0.28 1.38 0.55 2.75 301324 Baggie All Pina 20.00 1.28$ 25.55 5.50 0.28 5.50 0.55 11.00 301325 Baggie All St Tropez 352.00 1.28$ 449.99 5.50 0.28 96.80 0.55 193.60

RuMe, Inc.Finished Goods Listing

19




Extended Value


Extended Value

301338 Baggie All Heather Denim 20.00 1.63$ 32.50 5.50 0.28 5.50 0.55 11.00 301340 Baggie All Spruce 502.00 1.63$ 815.75 5.50 0.28 138.05 0.55 276.10 301341 Baggie All Lumberjack 622.00 1.63$ 1,010.77 5.50 0.28 171.05 0.55 342.10 301342 Baggie All Shortcake - Red Leopard 304.00 1.95$ 594.32 5.50 0.28 83.60 0.55 167.20 301347 Baggie All Clove 367.00 1.27$ 466.43 5.50 0.28 100.93 0.55 201.85 301348 Baggie All Lucy 21.00 1.27$ 26.57 5.50 0.28 5.78 0.55 11.55 301349 Baggie All Ruby Chevy 699.00 1.27$ 888.42 7.75 0.39 270.86 0.78 541.73 301359 Baggie All Mochi 500 units/carton 17.00 1.81$ 30.78 5.50 0.28 4.68 0.55 9.35 301360 Baggie All Dragon Fruit 500 units/car 853.00 1.50$ 1,283.67 7.75 0.39 330.54 0.78 661.08 301361 Baggie All Neapolitan 500 units/carto 523.00 1.51$ 787.12 5.50 0.28 143.83 0.55 287.65 301362 Baggie All Sprout 500 units/carton 20.00 1.41$ 28.25 5.50 0.28 5.50 0.55 11.00 301363 Baggie All Sherbet 500 units/carton 21.00 1.41$ 29.67 5.50 0.28 5.78 0.55 11.55 301364 Baggie All Froyo 500 units/carton 667.00 1.50$ 1,003.42 5.50 0.28 183.43 0.55 366.85 301368 Baggie All Sloan 500 units/carton 194.00 1.37$ 264.81 5.50 0.28 53.35 0.55 106.70 301369 Baggie All Ophelia 500 units/carton 136.00 1.37$ 185.65 5.50 0.28 37.40 0.55 74.80 301370 Baggie All Lima 500 units/carton 117.00 1.37$ 160.00 5.50 0.28 32.18 0.55 64.35 301372 Baggie All Denver 500 units/carton 218.00 1.37$ 298.16 5.50 0.28 59.95 0.55 119.90 301373 Baggie All Florence 500 units/carton 104.00 1.36$ 141.96 5.50 0.28 28.60 0.55 57.20 309225 GTO Navy 148.00 5.79$ 856.18 25.00 1.25 185.00 2.50 370.00 309318 GTO Havana 385.00 6.38$ 2,458.22 25.00 1.25 481.25 2.50 962.50 309319 GTO Copacabana 471.00 6.15$ 2,894.47 25.00 1.25 588.75 2.50 1,177.50 309320 GTO Palm Beach 852.00 5.98$ 5,099.20 25.00 1.25 1,065.00 2.50 2,130.00 309321 GTO Mai Tai 525.00 6.33$ 3,324.79 25.00 1.25 656.25 2.50 1,312.50 309323 GTO Tropicana 1,113.00 6.32$ 7,038.14 25.00 1.25 1,391.25 2.50 2,782.50 309324 GTO Pina 1,019.00 6.39$ 6,516.50 25.00 1.25 1,273.75 2.50 2,547.50 309325 GTO St Tropez 1,061.00 6.38$ 6,773.84 25.00 1.25 1,326.25 2.50 2,652.50 309326 GTO Cabo 1,261.00 6.40$ 8,074.22 25.00 1.25 1,576.25 2.50 3,152.50 309338 GTO Heather Denim 18.00 6.15$ 110.61 25.00 1.25 22.50 2.50 45.00 309339 GTO Marigold 75.00 6.15$ 460.88 25.00 1.25 93.75 2.50 187.50 309340 GTO Spruce 363.00 6.14$ 2,230.63 25.00 1.25 453.75 2.50 907.50 309341 GTO Lumberjack 365.00 6.15$ 2,243.20 25.00 1.25 456.25 2.50 912.50 309342 GTO Shortcake - Red Leopard 426.00 6.54$ 2,788.09 25.00 1.25 532.50 2.50 1,065.00 309343 GTO Bambi - Blue Leopard 312.00 6.54$ 2,042.02 25.00 1.25 390.00 2.50 780.00 309346 GTO Archie 281.00 6.03$ 1,693.71 25.00 1.25 351.25 2.50 702.50 309347 GTO Clove 250.00 6.03$ 1,506.73 25.00 1.25 312.50 2.50 625.00

20




Extended Value


Extended Value

309348 GTO Lucy 58.00 6.03$ 349.45 25.00 1.25 72.50 2.50 145.00 309349 GTO Ruby Chevy 311.00 6.03$ 1,874.59 25.00 1.25 388.75 2.50 777.50 309362 GTO Sprout 40 units/carton 394.00 6.56$ 2,584.99 25.00 1.25 492.50 2.50 985.00 309363 GTO Sherbet 40 units/carton 415.00 6.56$ 2,722.76 25.00 1.25 518.75 2.50 1,037.50 309364 GTO Froyo 40 units/carton 503.00 6.23$ 3,131.55 25.00 1.25 628.75 2.50 1,257.50 309368 GTO Sloan 40 units/carton 101.00 9.29$ 938.44 25.00 1.25 126.25 2.50 252.50 309369 GTO Ophelia 40 units/carton 90.00 9.29$ 836.23 25.00 1.25 112.50 2.50 225.00 309370 GTO Lima 40 units/carton 139.00 9.29$ 1,291.52 25.00 1.25 173.75 2.50 347.50 309371 GTO Bombay 40 units/carton 100.00 9.29$ 929.14 25.00 1.25 125.00 2.50 250.00 309372 GTO Denver 40 units/carton 134.00 9.29$ 1,245.05 25.00 1.25 167.50 2.50 335.00 309373 GTO Florence 40 units/carton 104.00 9.29$ 966.32 25.00 1.25 130.00 2.50 260.00 309374 GTO Casablanca 40 units/carton 111.00 9.29$ 1,031.35 25.00 1.25 138.75 2.50 277.50 325113 Makeup Bag Black 150 units/carton 277.00 3.19$ 883.78 4.16 0.21 57.62 0.42 115.23 325154 Makeup Cinch Bag Downing 150 unit 180.00 3.19$ 574.33 18.00 0.90 162.00 1.80 324.00 325185 Makeup Cinch Bag Heather Grey 150 226.00 3.19$ 721.07 18.00 0.90 203.40 1.80 406.80 325225 Makeup Bag Navy 150 units/carton 259.00 3.19$ 826.35 4.16 0.21 53.87 0.42 107.74 325358 Makeup Cinch Bag Blossom 150 unit 43.00 3.17$ 136.38 18.00 0.90 38.70 1.80 77.40 325360 Makeup Cinch Bag Dragon Fruit 150 35.00 3.19$ 111.67 18.00 0.90 31.50 1.80 63.00 325362 Makeup Cinch Bag Sprout 150 units/ 266.00 3.24$ 860.51 18.00 0.90 239.40 1.80 478.80 325363 Makeup Cinch Bag Sherbet 150 units 256.00 3.24$ 828.78 18.00 0.90 230.40 1.80 460.80 325368 Makeup Cinch Bag Sloan 150 units/c 443.00 3.60$ 1,594.23 18.00 0.90 398.70 1.80 797.40 325369 Makeup Cinch Bag Ophelia 150 units 484.00 3.60$ 1,741.73 18.00 0.90 435.60 1.80 871.20 325370 Makeup Cinch Bag Lima 150 units/ca 505.00 3.60$ 1,817.28 18.00 0.90 454.50 1.80 909.00 325371 Makeup Cinch Bag Bombay 150 unit 418.00 3.60$ 1,504.28 18.00 0.90 376.20 1.80 752.40 325372 Makeup Cinch Bag Denver 150 units/ 518.00 3.60$ 1,864.08 18.00 0.90 466.20 1.80 932.40 325373 Makeup Cinch Bag Florence 150 unit 449.00 3.60$ 1,615.81 18.00 0.90 404.10 1.80 808.20 325374 Makeup Cinch Bag Casablanca 150 u 428.00 3.60$ 1,540.24 18.00 0.90 385.20 1.80 770.40 505227 cFold Navy Downing 230.00 3.80$ 874.73 15.00 0.75 172.50 1.50 345.00 505324 cFold Pina 332.00 4.12$ 1,366.18 15.00 0.75 249.00 1.50 498.00 505326 cFold Cabo 286.00 5.15$ 1,474.33 15.00 0.75 214.50 1.50 429.00 505340 cFold Spruce 191.00 4.71$ 898.66 15.00 0.75 143.25 1.50 286.50 505341 cFold Lumberjack 235.00 4.71$ 1,105.68 15.00 0.75 176.25 1.50 352.50 505342 cFold Shortcake - Red Leopard 20.00 5.05$ 101.10 15.00 0.75 15.00 1.50 30.00 505343 cFold Bambi - Blue Leopard 20.00 5.05$ 101.10 15.00 0.75 15.00 1.50 30.00 505346 cFold Archie 230.00 4.47$ 1,026.95 15.00 0.75 172.50 1.50 345.00

21




Extended Value


Extended Value

505347 cFold Clove 20.00 4.46$ 89.30 15.00 0.75 15.00 1.50 30.00 505348 cFold Lucy 2.00 4.46$ 8.92 15.00 0.75 1.50 1.50 3.00 505349 cFold Ruby Chevy 195.00 4.46$ 870.67 15.00 0.75 146.25 1.50 292.50 505358 cFold Blossom 70 units/case 20.00 5.56$ 111.30 15.00 0.75 15.00 1.50 30.00 505359 cFold Mochi 70 units/case 18.00 5.56$ 100.17 15.00 0.75 13.50 1.50 27.00 505360 cFold Dragon Fruit 70 units/case 17.00 4.99$ 84.91 15.00 0.75 12.75 1.50 25.50 505361 cFold Neapolitan 70 units/case 20.00 5.00$ 100.10 15.00 0.75 15.00 1.50 30.00 505368 cFold Sloan 70 units/case 96.00 6.16$ 590.92 15.00 0.75 72.00 1.50 144.00 505369 cFold Ophelia 70 units/case 96.00 6.16$ 590.94 15.00 0.75 72.00 1.50 144.00 505370 cFold Lima 70 units/case 140.00 6.16$ 861.80 15.00 0.75 105.00 1.50 210.00 505371 cFold Bombay 70 units/case 197.00 6.16$ 1,212.73 15.00 0.75 147.75 1.50 295.50 505372 cFold Denver 70 units/case 109.00 6.16$ 670.90 15.00 0.75 81.75 1.50 163.50 505373 cFold Florence 70 units/case 123.00 6.16$ 757.13 15.00 0.75 92.25 1.50 184.50 505374 cFold Casablanca 70 units/case 126.00 6.16$ 775.61 15.00 0.75 94.50 1.50 189.00 513225 Macro Tote Navy 300 units/case 20.00 -$ 0.00 - - - - 513323 Macro Tote Tropicana 18.00 1.98$ 35.69 3.60 0.18 3.24 0.36 6.48 513324 Macro Tote Pina 3.00 2.01$ 6.04 3.60 0.18 0.54 0.36 1.08 513325 Macro Tote St Tropez 19.00 2.02$ 38.29 3.60 0.18 3.42 0.36 6.84 513326 Macro Tote Cabo 5.00 2.04$ 10.19 3.60 0.18 0.90 0.36 1.80 513340 Macro Tote Spruce 20.00 2.40$ 48.10 3.60 0.18 3.60 0.36 7.20 513341 Macro Tote Lumberjack 20.00 2.41$ 48.10 3.60 0.18 3.60 0.36 7.20 513342 Macro Tote Shortcake - Red Leopard 19.00 2.71$ 51.40 3.60 0.18 3.42 0.36 6.84 513343 Macro Tote Bambi - Blue Leopard 21.00 2.71$ 56.81 3.60 0.18 3.78 0.36 7.56 513346 Macro Tote Archie 783.00 2.02$ 1,581.74 3.60 0.18 140.94 0.36 281.88 513347 Macro Tote Clove 98.00 2.02$ 197.74 3.60 0.18 17.64 0.36 35.28 513348 Macro Tote Lucy 20.00 2.02$ 40.30 3.60 0.18 3.60 0.36 7.20 513349 Macro Tote Ruby Chevy 860.00 2.02$ 1,737.37 3.60 0.18 154.80 0.36 309.60 513358 Macro Tote Blossom 300 units/case 460.00 2.55$ 1,174.39 3.60 0.18 82.80 0.36 165.60 513359 Macro Tote Mochi 300 units/case 629.00 2.55$ 1,605.07 3.60 0.18 113.22 0.36 226.44 513360 Macro Tote Dragon Fruit 300 units/c 1,484.00 2.15$ 3,193.36 3.60 0.18 267.12 0.36 534.24 513361 Macro Tote Neapolitan 300 units/ca 1,517.00 2.15$ 3,264.34 3.60 0.18 273.06 0.36 546.12 513368 Macro Tote Sloan 300 units/case 1,546.00 2.10$ 3,251.12 3.60 0.18 278.28 0.36 556.56 513369 Macro Tote Ophelia 300 units/case 1,322.00 1.87$ 2,475.48 3.60 0.18 237.96 0.36 475.92 513370 Macro Tote Lima 300 units/case 825.00 1.98$ 1,629.76 3.60 0.18 148.50 0.36 297.00 513371 Macro Tote Bombay 300 units/case 841.00 1.98$ 1,661.19 3.60 0.18 151.38 0.36 302.76

22




Extended Value


Extended Value

513372 Macro Tote Denver 300 units/case 1,683.00 1.74$ 2,924.02 3.60 0.18 302.94 0.36 605.88 513373 Macro Tote Florence 300 units/case 1,067.00 2.10$ 2,246.03 3.60 0.18 192.06 0.36 384.12 513374 Macro Tote Casablanca 300 units/ca 735.00 1.97$ 1,450.78 3.60 0.18 132.30 0.36 264.60 514187 Medium Tote Herringbone 18.00 2.14$ 38.52 3.60 0.18 3.24 0.36 6.48 514209 Medium Tote Marble 20.00 2.12$ 42.40 3.60 0.18 3.60 0.36 7.20 514320 Medium Tote Palm Beach 160.00 1.82$ 292.00 3.60 0.18 28.80 0.36 57.60 514323 Medium Tote Tropicana 179.00 1.89$ 338.57 3.60 0.18 32.22 0.36 64.44 514324 Medium Tote Pina 32.00 1.90$ 60.76 3.60 0.18 5.76 0.36 11.52 514326 Medium Tote Cabo 377.00 1.90$ 717.12 3.60 0.18 67.86 0.36 135.72 514340 Medium Tote Spruce 20.00 2.31$ 46.10 3.60 0.18 3.60 0.36 7.20 514341 Medium Tote Lumberjack 204.00 2.30$ 470.22 3.60 0.18 36.72 0.36 73.44 514342 Medium Tote Shortcake - Red Leopa 263.00 2.61$ 685.12 3.60 0.18 47.34 0.36 94.68 514343 Medium Tote Bambi - Blue Leopard 53.00 2.61$ 138.07 3.60 0.18 9.54 0.36 19.08 514346 Medium Tote Archie 1,138.00 1.94$ 2,206.08 3.60 0.18 204.84 0.36 409.68 514347 Medium Tote Clove 413.00 1.93$ 796.79 3.60 0.18 74.34 0.36 148.68 514348 Medium Tote Lucy 21.00 1.94$ 40.64 3.60 0.18 3.78 0.36 7.56 514349 Medium Tote Ruby Chevy 699.00 1.94$ 1,356.33 3.60 0.18 125.82 0.36 251.64 514358 Medium Tote Blossom 300 units/car 653.00 2.47$ 1,614.85 3.60 0.18 117.54 0.36 235.08 514359 Medium Tote Mochi 300 units/carto 378.00 2.47$ 934.14 3.60 0.18 68.04 0.36 136.08 514360 Medium Tote Dragon Fruit 300 units 1,272.00 2.06$ 2,617.10 3.60 0.18 228.96 0.36 457.92 514361 Medium Tote Neapolitan 300 units/c 955.00 2.29$ 2,185.48 3.60 0.18 171.90 0.36 343.80 514368 Medium Tote Sloan 300 units/carton 1,562.00 2.10$ 3,288.01 3.60 0.18 281.16 0.36 562.32 514369 Medium Tote Ophelia 300 units/cart 1,312.00 2.07$ 2,714.50 3.60 0.18 236.16 0.36 472.32 514370 Medium Tote Lima 300 units/carton 1,119.00 2.07$ 2,315.20 3.60 0.18 201.42 0.36 402.84 514371 Medium Tote Bombay 300 units/cart 1,141.00 2.07$ 2,360.71 3.60 0.18 205.38 0.36 410.76 514372 Medium Tote Denver 300 units/carto 1,662.00 2.07$ 3,438.67 3.60 0.18 299.16 0.36 598.32 514373 Medium Tote Florence 300 units/car 1,095.00 2.12$ 2,320.62 3.60 0.18 197.10 0.36 394.20 514374 Medium Tote Casablanca 300 units/c 1,064.00 2.07$ 2,201.38 3.60 0.18 191.52 0.36 383.04 514383 Medium Tote Taylor 5.00 1.53$ 7.65 3.60 0.18 0.90 0.36 1.80 515225 Mini Tote Navy 500 units/case 20.00 -$ 0.00 5.55 0.28 5.55 0.56 11.10 515323 Mini Tote Tropicana 17.00 1.81$ 30.85 5.55 0.28 4.72 0.56 9.44 515324 Mini Tote Pina 18.00 1.84$ 33.03 5.55 0.28 5.00 0.56 9.99 515340 Mini Tote Spruce 20.00 2.20$ 44.10 5.55 0.28 5.55 0.56 11.10 515341 Mini Tote Lumberjack 120.00 2.21$ 264.60 5.55 0.28 33.30 0.56 66.60 515342 Mini Tote Shortcake - Red Leopard 125.00 2.50$ 313.12 5.55 0.28 34.69 0.56 69.38

23




Extended Value


Extended Value

515343 Mini Tote Bambi - Blue Leopard 21.00 2.50$ 52.60 5.55 0.28 5.83 0.56 11.66 515346 Mini Tote Archie 1,260.00 1.81$ 2,285.21 5.55 0.28 349.65 0.56 699.30 515347 Mini Tote Clove 229.00 1.80$ 413.34 5.55 0.28 63.55 0.56 127.10 515348 Mini Tote Lucy 472.00 1.81$ 855.18 5.55 0.28 130.98 0.56 261.96 515349 Mini Tote Ruby Chevy 1,216.00 1.81$ 2,206.17 5.55 0.28 337.44 0.56 674.88 515358 Mini Tote Blossom 500 units/case 501.00 2.36$ 1,183.91 5.55 0.28 139.03 0.56 278.06 515359 Mini Tote Mochi 500 units/case 19.00 2.36$ 44.89 5.55 0.28 5.27 0.56 10.55 515360 Mini Tote Dragon Fruit 500 units/cas 1,443.00 1.96$ 2,830.96 5.55 0.28 400.43 0.56 800.87 515361 Mini Tote Neapolitan 500 units/case 1,533.00 1.96$ 3,007.51 5.55 0.28 425.41 0.56 850.82 515368 Mini Tote Sloan 500 units/case 1,663.00 1.98$ 3,287.27 5.55 0.28 461.48 0.56 922.97 515369 Mini Tote Ophelia 500 units/case 1,637.00 1.92$ 3,138.90 5.55 0.28 454.27 0.56 908.54 515370 Mini Tote Lima 500 units/case 1,232.00 1.97$ 2,426.74 5.55 0.28 341.88 0.56 683.76 515371 Mini Tote Bombay 500 units/case 1,229.00 1.92$ 2,354.29 5.55 0.28 341.05 0.56 682.10 515372 Mini Tote Denver 500 units/case 1,685.00 1.98$ 3,331.09 5.55 0.28 467.59 0.56 935.18 515373 Mini Tote Florence 500 units/case 1,198.00 1.92$ 2,296.84 5.55 0.28 332.45 0.56 664.89 515374 Mini Tote Casablanca 500 units/case 1,208.00 1.92$ 2,316.04 5.55 0.28 335.22 0.56 670.44 529187 Duck Bag Herringbone 300 units/car 5.00 4.52$ 22.62 10.49 0.52 2.62 1.05 5.25 529227 Duck Bag Navy Downing 300 units/ca 4.00 4.53$ 18.10 10.49 0.52 2.10 1.05 4.20 529320 Duck Bag Palm Beach 300 units/carto 20.00 4.53$ 90.53 10.49 0.52 10.49 1.05 20.98 529321 Duck Bag Mai Tai 300 units/carton 21.00 4.52$ 95.02 10.49 0.52 11.01 1.05 22.03 529325 Duck Bag St Tropez 300 units/carton 20.00 4.53$ 90.50 10.49 0.52 10.49 1.05 20.98 529358 Duck Bag Blossom 300 units/carton 20.00 5.34$ 106.70 10.49 0.52 10.49 1.05 20.98 529359 Duck Bag Mochi 300 units/carton 20.00 5.37$ 107.48 10.49 0.52 10.49 1.05 20.98 529360 Duck Bag Dragon Fruit 300 units/car 19.00 5.27$ 100.17 10.49 0.52 9.97 1.05 19.93 529361 Duck Bag Neapolitan 300 units/carto 20.00 5.35$ 107.04 10.49 0.52 10.49 1.05 20.98 529368 Duck Bag Sloan 150 units/carton 33.00 4.38$ 144.45 10.49 0.52 17.31 1.05 34.62 529369 Duck Bag Ophelia 150 units/carton 36.00 4.38$ 157.58 10.49 0.52 18.88 1.05 37.76 529370 Duck Bag Lima 150 units/carton 32.00 4.38$ 140.08 10.49 0.52 16.78 1.05 33.57 529371 Duck Bag Bombay 150 units/carton 20.00 4.38$ 87.54 10.49 0.52 10.49 1.05 20.98 529372 Duck Bag Denver 150 units/carton 32.00 4.38$ 140.08 10.49 0.52 16.78 1.05 33.57 529373 Duck Bag Florence 150 units/carton 32.00 4.38$ 140.07 10.49 0.52 16.78 1.05 33.57 529374 Duck Bag Casablanca 150 units/carto 32.00 4.38$ 140.08 10.49 0.52 16.78 1.05 33.57 530154 Eleanor Tote Downing 150 units/cart 20.00 4.33$ 86.54 5.00 0.25 5.00 0.50 10.00 530346 Eleanor Tote Archie 300 units/carton 20.00 4.32$ 86.50 5.00 0.25 5.00 0.50 10.00 530347 Eleanor Tote Clove 300 units/carton 5.00 4.32$ 21.62 5.00 0.25 1.25 0.50 2.50

24




Extended Value


Extended Value

530349 Eleanor Tote Ruby Chevy 300 units/c 20.00 4.33$ 86.51 5.00 0.25 5.00 0.50 10.00 530358 Eleanor Tote Blossom 300 units/cart 20.00 5.07$ 101.38 5.00 0.25 5.00 0.50 10.00 530359 Eleanor Tote Mochi 300 units/carton 19.00 4.58$ 86.99 5.00 0.25 4.75 0.50 9.50 530360 Eleanor Tote Dragon Fruit 300 units/ 20.00 4.72$ 94.37 5.00 0.25 5.00 0.50 10.00 530361 Eleanor Tote Neapolitan 300 units/c 20.00 5.08$ 101.57 5.00 0.25 5.00 0.50 10.00 530368 Eleanor Tote Sloan 150 units/carton 181.00 4.37$ 791.79 5.00 0.25 45.25 0.50 90.50 530369 Eleanor Tote Ophelia 150 units/carto 116.00 4.38$ 507.50 5.00 0.25 29.00 0.50 58.00 530370 Eleanor Tote Lima 150 units/carton 190.00 4.37$ 831.12 5.00 0.25 47.50 0.50 95.00 530371 Eleanor Tote Bombay 150 units/cart 208.00 4.37$ 909.86 5.00 0.25 52.00 0.50 104.00 530372 Eleanor Tote Denver 150 units/carto 174.00 4.37$ 761.19 5.00 0.25 43.50 0.50 87.00 530373 Eleanor Tote Florence 150 units/cart 30.00 4.37$ 131.25 5.00 0.25 7.50 0.50 15.00 530374 Eleanor Tote Casablanca 150 units/c 195.00 4.37$ 853.00 5.00 0.25 48.75 0.50 97.50 916307 Mini Tote Set of Five Mystery 5.00 -$ 0.00 5.55 0.28 1.39 0.56 2.78 917307 Medium Tote Set of Five Mystery 5.00 9.77$ 48.83 3.60 0.18 0.90 0.36 1.80 918307 Macro Tote Set of Five Mystery 5.00 -$ 0.00 3.60 0.18 0.90 0.36 1.80 2062PHOTO Medium Tote Downing Custom 692.00 1.39$ 961.88 3.60 0.18 124.56 0.36 249.12 C10023 Neoprene Panel 16x20 Off-White 8,318.19 1.08$ 9,016.70 5.55 0.28 2,308.30 0.56 4,616.59 C10074 BFM-01K-M (8-12 yr old ,16*11.5cm 19,794.00 0.90$ 17,814.60 2.50 0.13 2,474.25 0.25 4,948.50 CCLN10 cClean: Baker 1,121.00 0.70$ 781.80 15.00 0.75 840.75 1.50 1,681.50 CCLN2 cClean: Cool Grey (formerly Black) 794.00 0.64$ 512.13 15.00 0.75 595.50 1.50 1,191.00 CCLN5 cClean: Aqua Ikat 9,599.00 0.63$ 6,026.63 15.00 0.75 7,199.25 1.50 14,398.50 CCLN8 cClean: Regan 5.00 0.69$ 3.47 15.00 0.75 3.75 1.50 7.50 CCLN9 cClean: Herringbone 267.00 0.70$ 186.22 15.00 0.75 200.25 1.50 400.50 CF06 cFold Navy 247.00 3.81$ 941.22 15.00 0.75 185.25 1.50 370.50 CF11 cFold Downing 660.00 4.61$ 3,045.90 15.00 0.75 495.00 1.50 990.00 CF12 cFold Black 472.00 4.84$ 2,282.19 15.00 0.75 354.00 1.50 708.00 CF84 cFold Herringbone 2.00 4.88$ 9.75 15.00 0.75 1.50 1.50 3.00 CF97 cFold Aspen 20.00 5.23$ 104.70 15.00 0.75 15.00 1.50 30.00 TYLCU-GREEN Custom Green Lucite Serving Tray - 1 99.00 8.83$ 873.83 27.06 1.35 133.93 2.71 267.85 TYLCU-PINK Custom Pink Lucite Serving Tray - 12 292.00 8.83$ 2,577.35 27.06 1.35 395.01 2.71 790.02 TYLCU-BLUE Custom Blue Lucite Serving Tray - 12 42.00 8.83$ 370.68 27.05 1.35 56.81 2.71 113.62 324353 Three Piece Pouch Set Monkey 294.00 7.20$ 2,116.80 22.07 1.10 324.43 2.21 648.85 324354 Three Piece Pouch Set Bella 439.00 7.20$ 3,160.80 22.07 1.10 484.43 2.21 968.86 CBCU Cutting Board 1,128.00 6.00$ 6,768.00 18.39 0.92 1,037.28 1.84 2,074.56 C10078 SFLY Part No 140-1472-00 Women's 200.00 5.75$ 1,150.00 17.63 0.88 176.25 1.76 352.50

25




Extended Value


Extended Value

C10079 140-1473-00 Men's Sock Large 15.75 200.00 5.75$ 1,150.00 17.63 0.88 176.25 1.76 352.50 505325 cFold St Tropez 465.00 5.15$ 2,397.07 15.80 0.79 367.38 1.58 734.76 TYLCU Lucite Tray Clear 12x20 182.00 4.25$ 772.95 13.02 0.65 118.46 1.30 236.93 505323 cFold Tropicana 393.00 4.16$ 1,636.84 12.77 0.64 250.87 1.28 501.73 414367 Lunch Box Disney Compliant Light Bl 792.00 3.50$ 2,772.52 10.73 0.54 424.92 1.07 849.84 414249 Lunch Box Disney Compliant Red 861.00 3.47$ 2,984.53 10.63 0.53 457.42 1.06 914.83 519363 RuMe All Sherbet 250 units/carton 20.00 3.36$ 67.30 10.31 0.52 10.31 1.03 20.63 519362 RuMe All Sprout 250 units/carton 20.00 3.36$ 67.13 10.29 0.51 10.29 1.03 20.58 519341 RuMe All Lumberjack 20.00 3.34$ 66.90 10.25 0.51 10.25 1.03 20.51 414366 Lunch Box Disney Compliant Yoda Gr 974.00 3.33$ 3,247.30 10.22 0.51 497.69 1.02 995.38 414283 Lunch Box Disney Compliant White 1,079.00 3.28$ 3,535.90 10.04 0.50 541.92 1.00 1,083.84 414113 Lunch Box Disney Compliant Black 1,292.00 3.28$ 4,233.90 10.04 0.50 648.90 1.00 1,297.79 414271 Lunch Box Disney Compliant Stainles 1,291.00 3.22$ 4,159.45 9.88 0.49 637.49 0.99 1,274.97 519369 RuMe All Ophelia 200 units/carton 28.00 3.09$ 86.38 9.46 0.47 13.24 0.95 26.48 519371 RuMe All Bombay 200 units/carton 204.00 3.09$ 629.34 9.46 0.47 96.45 0.95 192.91 519374 RuMe All Casablanca 200 units/carto 133.00 3.09$ 410.31 9.46 0.47 62.88 0.95 125.77 519364 RuMe All Froyo 250 units/carton 74.00 3.06$ 226.07 9.36 0.47 34.65 0.94 69.30 Z3009 Lunch Box: Black 848.00 2.98$ 2,527.37 9.14 0.46 387.35 0.91 774.70 519370 RuMe All Lima 200 units/carton 261.00 2.91$ 760.81 8.94 0.45 116.60 0.89 233.21 519368 RuMe All Sloan 200 units/carton 202.00 2.91$ 588.83 8.94 0.45 90.24 0.89 180.49 519373 RuMe All Florence 200 units/carton 206.00 2.91$ 600.49 8.94 0.45 92.03 0.89 184.06 519372 RuMe All Denver 200 units/carton 133.00 2.91$ 387.69 8.94 0.45 59.42 0.89 118.84 Z3000 Lunch Box: Stainless Steel 1,035.00 2.89$ 2,987.28 8.85 0.44 457.84 0.88 915.67 519346 RuMe All Archie 20.00 2.82$ 56.39 8.64 0.43 8.64 0.86 17.28 ORNGOP Glass Ornament Oval 979.00 2.71$ 2,653.00 8.31 0.42 406.60 0.83 813.21 ORNGH Glass Ornament Hexagon 3,394.00 2.71$ 9,197.42 8.31 0.42 1,409.62 0.83 2,819.23 ORNGSQ Glass Ornament Square 367.00 2.71$ 994.53 8.31 0.42 152.42 0.83 304.85 Z3061 Lunch Box: White 1,205.00 2.49$ 2,996.71 7.62 0.38 459.28 0.76 918.56 C10073 Stocking Winter Green Part# 140-144 273.00 2.10$ 573.30 6.44 0.32 87.87 0.64 175.73 C10068 Stocking Red 1,345.00 1.95$ 2,621.49 5.97 0.30 401.78 0.60 803.55 Z2100 Keepsake Box 5x7 183.00 1.94$ 354.22 5.93 0.30 54.29 0.59 108.58 Z2200 Keepsake Box 4x13 402.00 1.94$ 778.09 5.93 0.30 119.25 0.59 238.50 C10067 Stocking Green 667.00 1.83$ 1,219.54 5.60 0.28 186.91 0.56 373.82 Z2000 Keepsake Box 5x5 176.00 1.81$ 317.94 5.54 0.28 48.73 0.55 97.46 C10072 600D Panel Preshrunk Drawstring Ba 18,000.00 1.65$ 29,649.68 5.05 0.25 4,544.17 0.50 9,088.35

26




Extended Value


Extended Value

C10025 Ornament Snow Globe 33,471.00 1.25$ 41,676.62 3.82 0.19 6,387.45 0.38 12,774.90 C10048 Magnet Wood Square 2,120.00 0.98$ 2,085.01 3.01 0.15 319.55 0.30 639.11 C10042 Phone Clutch Vegan Leather Yardage 230.22 0.98$ 225.63 3.00 0.15 34.58 0.30 69.16 C10030 Window Tin Box 10,000.00 0.97$ 9,701.22 2.97 0.15 1,486.83 0.30 2,973.66 C10060 Zipper Red Gold 13" Tape PMS 201C 1,511.00 0.94$ 1,422.12 2.88 0.14 217.96 0.29 435.91 C10059 Zipper Red Gold 11.5" Tape PMS 20 1,100.00 0.90$ 990.24 2.76 0.14 151.77 0.28 303.53 C10001 Ornament Ceramic 3x3 with Border 1,943.00 0.88$ 1,704.97 2.69 0.13 261.31 0.27 522.61 C10018 Luggage Tag 2x3.5 Unisub Part #954 7,050.00 0.85$ 6,020.03 2.62 0.13 922.64 0.26 1,845.29 C10047 Magnet Wood Heart 2,317.00 0.79$ 1,832.24 2.42 0.12 280.81 0.24 561.63 C10058 Zipper White Gold 11.5" Tape 2,771.00 0.76$ 2,115.91 2.34 0.12 324.29 0.23 648.58 ORNRT Rectangular Ornament 26,366.00 0.71$ 18,712.92 2.18 0.11 2,867.98 0.22 5,735.96 ORNSQ Square Ornament 13,613.00 0.71$ 9,661.64 2.18 0.11 1,480.76 0.22 2,961.53 C10027 Phone Clutch Pre-sewn Inner Khaki 655.00 0.71$ 464.49 2.17 0.11 71.19 0.22 142.38 C10006 Zipper White Gold 13" Tape 4,132.00 0.63$ 2,612.71 1.94 0.10 400.43 0.19 800.86 C10021 600D Panel Kennedy Tote White 300 6,300.00 0.63$ 3,949.33 1.92 0.10 605.28 0.19 1,210.57 C10041 Tote Faux Leather Straps 29x.75 Brow 2,922.00 0.59$ 1,711.45 1.80 0.09 262.30 0.18 524.60 C10000 Reveal Pocket Black 14,996.00 0.55$ 8,214.41 1.68 0.08 1,258.96 0.17 2,517.92 C10051 600D Panel - Gear Bag - White 750 u 180.00 0.48$ 86.79 1.48 0.07 13.30 0.15 26.60 LUGGAGETAG_SMUnLuggage Tag 2x3.5 Powdercoated 14,000.00 0.46$ 6,499.20 1.42 0.07 996.08 0.14 1,992.16 C10028 Phone Clutch vegan Leather Strap 2,334.00 0.44$ 1,037.10 1.36 0.07 158.95 0.14 317.90 C10064 Coaster Wood Matte Finish Univers 950.00 0.43$ 408.50 1.32 0.07 62.61 0.13 125.22 C10020 600D Panel 16x20 White 500/case 1,066.00 0.43$ 457.77 1.32 0.07 70.16 0.13 140.32 C10017 Keytag Powdercoated 269.00 0.43$ 114.55 1.31 0.07 17.56 0.13 35.11 C10049 Magnet Wood Circle 3,575.00 0.42$ 1,494.06 1.28 0.06 228.98 0.13 457.97 C10071 Shutterfly 600D Panel Preassembled 18,000.00 0.30$ 5,413.96 0.92 0.05 829.76 0.09 1,659.51 freegift Free Gift with Purchase - assorted 5,358.00 0.30$ 1,598.85 0.91 0.05 245.04 0.09 490.09 C10055 600D Panel - Gear Bag Pocket 750 un 612.00 0.26$ 160.69 0.80 0.04 24.63 0.08 49.26

- - - - Totals 398,341 608,549.85 112,879.93 225,759.86

27

Item Number Item Description Category On Hand Unit Cost Extended Cost1486 Boot Bag: Terra/Pearl Packaging 1.00 1.00$ 1.006553 Baggie All Black Packaging 1,837.00 1.26$ 2,308.488200 xPose Sleeve Packaging 311.00 0.83$ 256.839101 Silicone Rubber Feet Packaging 45,400.00 0.03$ 1,362.0031676 iPad Folio Black Packaging 415.00 7.51$ 3,115.1631678 SFLY iPad MINI: Folio Black Packaging 75.00 5.00$ 375.0031909 Shutterfly Mailer ipad Packaging 659.00 0.44$ 292.3832366 iPad Air Kickstand Black Paper 489.00 7.37$ 3,602.78301326 Baggie All Cabo Packaging 404.00 1.28$ 516.37301343 Baggie All Bambi - Blue Leopard Packaging 137.00 1.96$ 267.84301346 Baggie All Archie Packaging 722.00 1.27$ 918.51301358 Baggie All Blossom 500 units/carton Packaging 20.00 1.82$ 36.30301371 Baggie All Bombay 500 units/carton Packaging 110.00 1.37$ 150.42301374 Baggie All Casablanca 500 units/carton Packaging 100.00 1.37$ 136.50319368 Packing Cube Set of Three Sloan ***units/carton TBA ***sizes TBA -Please Packaging 20.00 4.26$ 85.11319369 Packing Cube Set of Three Ophelia ***units/carton TBA ***sizes TBA -Plea Packaging 20.00 4.00$ 80.09319370 Packing Cube Set of Three Lima ***units/carton TBA ***sizes TBA -Please Packaging 20.00 4.00$ 80.07319371 Packing Cube Set of Three Bombay ***units/carton TBA ***sizes TBA -Plea Packaging 20.00 4.00$ 80.06319372 Packing Cube Set of Three Denver ***units/carton TBA ***sizes TBA -Plea Packaging 20.00 4.00$ 80.07319373 Packing Cube Set of Three Florence ***units/carton TBA ***sizes TBA -Ple Packaging 21.00 3.75$ 78.75319374 Packing Cube Set of Three Casablanca ***units/carton TBA ***sizes TBA -P Packaging 19.00 4.26$ 80.85108077435001 ColorLok HS 90 GSM Dye Sublimation Paper Paper 21.00 96.69$ 2,030.46150-1056-01 Packinging SFLY Bag Poly Mailer 12x15 Packaging 8,277.00 0.11$ 872.4020-1102-06 Shutterfly Mailer 10x8 Packaging 8,807.00 0.12$ 1,073.3120-2067-03_PKG_Shutterfly 5x7 OC (Globe OShutterfly Packaging 5x7 Globe Ornament OC Packaging 7,227.00 0.59$ 4,296.4520-2080-04 Box, Medium OC, SFLY, EXT, 11.1875x7.75x5 Packaging 6,932.00 0.66$ 4,540.46600D Wine Totes 600D White Polyester Materials 5,813.00 -$ 0.00C10002 Magnet Glass 38mm Cabochon Materials 59,173.00 0.22$ 12,979.71C10003 Magnet Glass Circular 1-3/8" Magnet Materials 21,530.00 0.13$ 2,725.95C10004 Nylon Webbing 1" Black Materials 46,369.91 0.14$ 6,343.74C10007 Packaging Snow Globe Ornament Shutterfly Packaging 837.00 1.35$ 1,129.95C10008 Packaging Glass Magnet Divider Shutterfly Packaging 20,031.00 0.01$ 180.16C10009 Packaging Glass Magnet Sleeve Shutterfly Packaging 18,425.00 0.07$ 1,213.17C10010 Packaging Glass Magnet Slide Tray Shutterfly Packaging 9,355.00 0.26$ 2,397.82C10011 600D Panel 8x5 White 1000 units/case Packaging 24,293.00 0.17$ 4,163.89C10012 600D Panel Pencil Pouch White 1000 units/case *Includes tab for SFLY line Packaging 24,942.00 0.16$ 4,010.29

RuMe, Inc.Finished Goods Materials and Supplies Listing

28

Item Number Item Description Category On Hand Unit Cost Extended CostC10013 600D Panel Porter Tote White 300 units/case Packaging 571.00 1.06$ 608.02C10014 600D Panel Drawstring Bag Black 500 units/case Packaging 14,276.00 0.45$ 6,414.20C10015 600D Panel Drawstring Bag White 500 units/case Packaging 9,521.00 0.52$ 4,972.31C10016 Zipper Gold 8" Fully Assembled Materials 18,396.00 0.11$ 2,103.76C10019 Zipper Black 8.5" Size 3 Materials 4,343.00 0.25$ 1,075.35C10022 Key Ring Materials 31,966.00 0.01$ 373.54C10024 Zipper Black Size 5 Nylon Materials 4,700.88 0.15$ 700.89C10026 Label Paper Shutterfly Paper 115,116.00 0.02$ 2,453.33C10029 Luggage Tag Single Retail Packaging Materials 46,862.00 0.09$ 4,217.58C10031 Luggage Tag Double Retail Packaging Materials 1,309.00 0.23$ 302.43C10036 Ornament Snow Globe Red Ribbon Shutterfly Materials 27,037.00 0.07$ 1,788.49C10038 Ornament Ceramic Grey Pouch Shutterfly Materials 2,593.00 0.21$ 535.41C10039 Luggage Tag Metal Strap Materials 10,592.00 0.08$ 817.27C10044 Stretch Cord Black Materials 366.05 0.08$ 28.34C10045 Label Woven Shutterfly Materials 60,922.00 0.06$ 3,378.68C10046 Zipper Black Size 5 Head Pull Combo Materials 19,053.00 0.04$ 737.63C10050 Magnet Wood Mini Magnet Materials 48,357.00 0.07$ 3,538.54C10053 Label Woven MIUSA Materials 45,846.00 0.05$ 2,368.28C10057 Label Woven MIUSA Tinsley Materials 4,820.00 0.06$ 269.92C10061 Label Paper Shutterfly w Batch No Paper 47,999.00 0.01$ 316.17C10062 Plastic Snap Set White Materials 95,683.00 0.005$ 516.72C10063 Drawstring 5mm Polyester Precut 67" - Color: BLACK Materials 24,994.00 0.12$ 2,897.58C10065 Poly Bag Sealed 5X5 Packaging 1,000.00 0.03$ 34.63C10069 SFLY Packaging - Insert, Wood Magnet, INT,10.5x7.5, 32ECT Vendor Code 1Packaging 2,457.00 0.11$ 265.36C10070 SFLY Packaging - Insert, Wood Magnet, INT,14x8.5, 32ECT Vendor Code 15Packaging 640.00 0.16$ 102.40C10076 Part No 3084 Suffocation Warning Poly Bags Self Seal 8 x 10" 1.5 Mil Pack: Packaging 5,047.00 -$ 0.00EPST741200 Cyan Epson SureColor Cyan Ink 7.00 114.97$ 804.76EPST741300 Magenta Epson SureColor Magenta Ink 5.00 113.58$ 567.91EPST741499 Yellow Epson SureColor Yellow Ink 5.00 103.71$ 518.53EPST741X00 Epson HDX Black Ink 10.00 114.42$ 1,144.22Labels Barcode 15UP 8.5" x 11" Custom Die Cut DiversiPrint 60# Ultra Matte Face Stock w/ SP94 Packaging 43,500.00 0.11$ 4,829.37Labels Barcode 15UP Fabric DiversiPrint 60# Digital Matte Vinyl (SP924G adhesive) Lead Time: 3-4 We Packaging 7,500.00 0.29$ 2,152.12Labels Barcode 15UP Hard 8.5" x 11" Custom Die Cut DiversiPrint 60# Ultra Matte Face Stock w/ B-91 Packaging 45,000.00 0.12$ 5,328.00Luxe_Handles Luxe_Handles Materials 27,900.00 0.17$ 4,743.00Mimaki LH100 - Black Mimaki LH100 - Black Ink 4.00 197.25$ 789.00Mimaki LH100 - Cyan Mimaki LH100 - Cyan Ink 4.00 202.50$ 810.00Mimaki LH100 - Magenta Mimaki LH100 - Magenta Ink 4.00 202.50$ 810.00Mimaki LH100 - White Mimaki LH100 - White Ink 3.00 202.50$ 607.50

29

Item Number Item Description Category On Hand Unit Cost Extended CostMimaki LH100 - Yellow Mimaki LH100 - Yellow Ink 5.00 192.00$ 960.00Mimaki LH100-CL-250 Mimaki LH100-CL-250 - CLEAR - 250 ML Bottle Ink 6.00 61.00$ 366.00Mimaki PR-200 Primer - 250 mL Mimaki PR-200 Primer - 250 mL Ink 3.00 98.00$ 294.00Mimaki Primer - 500 mL Bottle Mimaki Primer - 500mL Bottle SPC-0541 Ink 13.00 85.00$ 1,105.00Mimaki-SPC-0568-Wash Fluid LF-200 && LH-100 Ink 11.00 31.00$ 341.00Nylon Zippers: Size 3 Black Nylon Zippers: Size 3 Black Materials 2,700.00 0.12$ 324.00PKG_9765 Packaging: Garment Bag Navy Downing Packaging 1,624.00 0.55$ 896.91PKG_Backerboard Macro Packaging Macro Tote Backerboard Packaging 1,176.00 0.40$ 474.50PKG_CF09 Packaging Retail cFold Fletcher Packaging 8,527.00 0.33$ 2,813.91RLabel_BACKPACK_BLK R Label: Backpack Packaging 5.00 15.93$ 79.67Ruby Sticks Ruby Sticks Packaging 30.00 35.00$ 1,050.00rumedeal rume deal - assorted Packaging 182.00 -$ 0.00S045453 Epson DS Transfer Adhesive Textile Paper (44" x 350') Paper 14.00 181.51$ 2,541.12SHOPBAG_10X10_ASH Shopbag Ash Packaging 3,903.00 1.82$ 7,120.80SHOPBAG_10X10_CERULEAN Shopbag Cerulean Packaging 1,222.00 1.57$ 1,915.10SHOPBAG_10X10_CHEVS Shopbag Chevron Stripes Packaging 2,850.00 1.72$ 4,900.80SHOPBAG_10X10_HERRING_BONE Shopbag Herringbone Packaging 3,883.00 1.69$ 6,555.11SHOPBAG_10X10_MOSAIC Shopbag Classic Mosaic Packaging 3,482.00 1.78$ 6,189.25SHOPBAG_10X10_ROSE QUARTZ Shopbag Rose Quartz Packaging 1,916.00 1.66$ 3,189.55SHOPBAG_10X10_TRUBLUE Shopbag Navy Packaging 2,547.00 1.68$ 4,288.18Shutterfly 40-1117-01 Shutterfly Pouch: Cream Linen Packaging 15,374.00 0.21$ 3,180.50Shutterfly Mailers 10X13 Shutterfly Mailer 10x13 Packaging 25,902.00 0.20$ 5,157.50Shutterfly Mailers 9X6 Shutterfly Mailer 9x6 Packaging 21,103.00 0.10$ 2,056.96TA-STP1 Leather Luggage Tag Strap Materials 3,938.00 -$ 0.00TexPrint xP95 Dye Sublimation Paper TexPrint xP95 (XP95-44-328-3HR) 44"X328' 95gsm (36 rolls/pallet) Paper 41.00 70.88$ 2,906.18

Totals 1,181,719 184,489.60

30

Description Category

Purch Date/ In

Serv Date Age COST PHONES & INTERNET Offeice Furniture & Equipment 5/1/2013 7 or More Years 7,668.00$ Bakers Aluminum Bun Pan/Side Load Pan Rack Offeice Furniture & Equipment 5/31/2017 3 - 4 Years 1,316.03$ Trinity 5-Tier NSF Heavy Duty Wire Shelving Offeice Furniture & Equipment 6/1/2017 3 - 4 Years 1,014.98$ WHITE BOARD Offeice Furniture & Equipment 6/1/2014 5 - 6 Years 593.00$ DESK Offeice Furniture & Equipment 9/1/2014 5 - 6 Years 361.00$ BINDING EQUIPMENT Offeice Furniture & Equipment 10/1/2014 5 - 6 Years 2,417.00$ 2 Chairs, one blue, one green with lumbars Offeice Furniture & Equipment 3/1/2015 5 - 6 Years 675.00$ Stainless Steel work table Offeice Furniture & Equipment 3/1/2015 5 - 6 Years 250.00$ Stainless Steel work table Offeice Furniture & Equipment 9/1/2015 5 - 6 Years 261.88$ Wells Fargo Bank Offeice Furniture & Equipment 12/1/2015 5 - 6 Years 1,300.00$ Office Chairs Offeice Furniture & Equipment 6/1/2016 3 - 4 Years 1,150.00$ Elkay EZH2O Surface Mounts Offeice Furniture & Equipment 1/1/2017 3 - 4 Years 1,548.66$ HON Filing Cabinets and Standing Workstations Offeice Furniture & Equipment 1/1/2017 3 - 4 Years 4,101.35$ TVs and Mounts for new office Offeice Furniture & Equipment 2/1/2017 3 - 4 Years 3,413.66$ Camera & equipment Offeice Furniture & Equipment 3/4/2020 Less Than 1 Year 3,116.91$ Best Deal in Town Computers 8/1/2015 5 - 6 Years 700.36$ Amazon.Com Computers 9/1/2015 5 - 6 Years 543.59$ Amazon.Com Computers 9/1/2015 5 - 6 Years 499.99$ Best Deal in Town Computers 11/1/2015 5 - 6 Years 699.30$ Lenovo Lenovo US, Inc Computers 12/1/2015 5 - 6 Years 1,963.77$ Microcenter-May AMEX Computers 5/1/2016 3 - 4 Years 2,350.29$ Battery Backup Computers 6/12/2017 3 - 4 Years 1,714.01$ Macbook for Jennette Computers 7/1/2017 3 - 4 Years 861.19$ Precision Workstation T3420 i7-6700, 32GB DDR4, 1TB S Computers 5/1/2017 3 - 4 Years 2,033.62$ Poweredge T630 Server Computers 5/15/2017 3 - 4 Years 14,778.40$ 3 Laptops - Matt/ Mary / Jackii Computers 7/1/2019 1 - 2 Years 2,408.14$ Laptop computers (ThinkPad) Computers 6/1/2020 Less Than 1 Year 1,876.48$ Laptop computers (ThinkPad) Computers 9/1/2020 Less Than 1 Year 1,655.49$ 2 Ergosoft/Poster print licenses Warehouse Equipment 7/6/2015 5 - 6 Years 15,453.00$ Software Update for MCS Computer Warehouse Equipment 10/21/2019 1 - 2 Years 1,024.00$ Software Update for MCS Computer Warehouse Equipment 12/17/2019 1 - 2 Years 1,024.00$ Dahle Professional Fomat Rolling Trimmer Warehouse Equipment 10/28/2019 1 - 2 Years 815.99$ OC Bins Warehouse Warehouse Equipment 10/1/2019 1 - 2 Years 4,620.00$ SCALE FOR WAREHOUSE Warehouse Equipment 1/1/2011 7 or More Years 112.00$ INVENTORY RACK Warehouse Equipment 3/1/2011 7 or More Years 424.00$ FORKLIFT Forklift 6/1/2013 7 or More Years 5,260.00$ FORKLIFT Forklift 6/1/2013 7 or More Years 506.00$ 2 each 16x20 HEAT PRESS & HARDWARE Warehouse Equipment 10/1/2014 5 - 6 Years 6,576.00$ Plated for heat presses "medium" Warehouse Equipment 10/1/2014 5 - 6 Years 440.00$

31


Purch Date/ In

Serv Date Age COST Light table for print room Warehouse Equipment 10/1/2014 5 - 6 Years 180.00$ 3 each 16x20 HEAT PRESS & HARDWARE Warehouse Equipment 10/1/2015 5 - 6 Years 3,690.00$ iPad Embosser and SFLY Die Warehouse Equipment 3/1/2016 3 - 4 Years 1,500.00$ Tables for new building-AMEX 8/16 Warehouse Equipment 10/1/2016 3 - 4 Years 4,397.44$ New Facility WHSE racking Warehouse Equipment 10/1/2016 3 - 4 Years 13,746.44$ GeoKnight Clam Shell Pop Press Warehouse Equipment 11/1/2016 3 - 4 Years 8,750.00$ Nacho Roller Press Warehouse Equipment 11/11/2016 3 - 4 Years 581.00$ Circle Roller Press Warehouse Equipment 11/11/2016 3 - 4 Years 414.00$ Business Card Roller Press Warehouse Equipment 11/11/2016 3 - 4 Years 648.00$ Steel Rule Die/Die for Roller Press Warehouse Equipment 11/18/2016 3 - 4 Years 672.00$ Battery for ForkLift Forklift 12/14/2016 3 - 4 Years 575.00$ Forklift Forklift 12/30/2016 3 - 4 Years 13,744.06$ Tippmann Roller Die Cutting Press Warehouse Equipment 2/13/2017 3 - 4 Years 4,199.23$ Shelf Bins - Yellow Warehouse Equipment 7/20/2017 3 - 4 Years 1,096.95$ 2 Tape Dispensers $1,065 each + tax/freight Warehouse Equipment 10/1/2017 3 - 4 Years 2,323.48$ H800 Tape Dispensor, freight, sales Tax Warehouse Equipment 11/17/2017 3 - 4 Years 1,208.39$ 3-Singer Sewing Machines Warehouse Equipment 4/30/2018 1 - 2 Years 4,872.93$ Atlas Copco Compressor for Warehouse Warehouse Equipment 5/29/2018 1 - 2 Years 1,158.65$ 6-Singer Sewing Machines 3190K-20C-T4J-02 Warehouse Equipment 5/31/2018 1 - 2 Years 9,328.80$ 1-Singer Serger 4831A001 Warehouse Equipment 5/31/2018 1 - 2 Years 1,276.12$ Heat Press Textile Printing Machinery Warehouse Equipment 9/13/2019 1 - 2 Years 2,071.99$ Plastic Snap Button Machine SET FM-200 + Shipping from Warehouse Equipment 10/11/2019 1 - 2 Years 6,834.40$ Freight for Heat Presses Warehouse Equipment 11/1/2019 1 - 2 Years 1,758.64$ Compressor Warehouse Equipment 11/26/2019 1 - 2 Years 7,045.03$ Compressor - Installation Warehouse Equipment 11/26/2019 1 - 2 Years 5,600.00$ 5 Heat Presses & 12 Plates Warehouse Equipment 11/12/2019 1 - 2 Years 6,561.00$ Cabling for new office Tenant Improvements 6/1/2016 3 - 4 Years 900.00$

Tenant Improvements 10/1/2016 3 - 4 Years 4,841.00$ Centennial Park Tenant Improvement Tenant Improvements 10/1/2016 3 - 4 Years 53,797.90$ Relocated cables/port/faceplate Tenant Improvements 10/1/2016 3 - 4 Years 1,456.20$ Move IT Support for Wifi Tenant Improvements 10/1/2016 3 - 4 Years 6,311.73$ Install Cables/duel locations Tenant Improvements 10/1/2016 3 - 4 Years 1,638.00$ Assembly & Install of 3 36" Base Cabinets Tenant Improvements 11/1/2016 3 - 4 Years 1,555.41$ Wall in print room to separate UV printer Tenant Improvements 9/1/2020 Less Than 1 Year 7,795.00$ Mimaki UJF-7151 Plus printer Mimaki Printers 5/15/2017 3 - 4 Years 44,413.00$ Mimaki UJF-7151 Plus Installation Mimaki Printers 5/15/2017 3 - 4 Years 867.00$ Mimaki UJF-7151 Plus printer Shipping Mimaki Printers 5/15/2017 3 - 4 Years 753.00$ Mimaki UJF-7151 Flatbed UV Printer PO 9403 Mimaki Printers 12/1/2017 3 - 4 Years 45,728.00$ Mimaki UJF-7151 Flatbed UV Printer PO 9403 Travel to inMimaki Printers 3/1/2018 1 - 2 Years 938.42$

32


Purch Date/ In

Serv Date Age COST Freight charges for UV Printer Mimaki Printers 10/11/2018 1 - 2 Years 674.60$ Mimaki UJF-7151 Flatbed UV Printer Mimaki Printers 10/11/2018 1 - 2 Years 45,913.00$ WIDE FORMAT PRINTER Printers and Printing Equipment 12/1/2013 7 or More Years 13,972.00$ PRESS Printers and Printing Equipment 12/1/2014 5 - 6 Years 1,000.00$ Printer Fence & Divider Printers and Printing Equipment 3/1/2015 5 - 6 Years 625.00$ Jig Divider for Direct to print machine (3 blocks & 2 rails) Printers and Printing Equipment 4/1/2015 5 - 6 Years 950.00$ 4 16x20 Clam Heat Press PO4506 Printers and Printing Equipment 6/1/2015 5 - 6 Years 5,027.52$ Printer Fences/blocks & hardware Printers and Printing Equipment 9/1/2015 5 - 6 Years 1,620.00$ Svces Phoenix Printers and Printing Equipment 9/1/2015 5 - 6 Years 4,449.00$ Mist Humidifyer for print room Printers and Printing Equipment 11/1/2015 5 - 6 Years 1,125.00$ 2 Printers Printers and Printing Equipment 12/1/2015 5 - 6 Years 6,990.00$ Smart Fog Humidification System Printers and Printing Equipment 10/1/2016 3 - 4 Years 7,441.00$ Smart Fog Humidification System Install Printers and Printing Equipment 10/1/2016 3 - 4 Years 364.41$ Mimaki Printer Printers and Printing Equipment 10/1/2016 3 - 4 Years 45,613.00$ 7 Custom Plantens 16x12.5 Printers and Printing Equipment 11/1/2016 3 - 4 Years 1,371.16$ Shuttle Upgrades for DK20's Printers and Printing Equipment 11/22/2016 3 - 4 Years 1,804.50$ Mimaki Printer Freight only Printers and Printing Equipment 12/1/2016 3 - 4 Years 627.45$ Jigs for Mimakis Printers and Printing Equipment 12/8/2016 3 - 4 Years 1,954.80$ Epson Fseries Priner 6200 Printers and Printing Equipment 5/15/2017 3 - 4 Years 5,500.00$ Epson Fseries Priner 6200 Printers and Printing Equipment 5/15/2017 3 - 4 Years 6,995.00$ Epson Fseries Priner 6200 Printers and Printing Equipment 5/15/2017 3 - 4 Years 6,995.00$ 3-Epson Fseries Printer 6200 Printers and Printing Equipment 9/20/2017 3 - 4 Years 19,485.00$ Epson FS Series Printer 6200 Printers and Printing Equipment 12/1/2018 1 - 2 Years 5,995.00$ I1 Basic Pro 3 Plus + Shipping - Serial Number 3000267 Printers and Printing Equipment 9/20/2019 1 - 2 Years 1,837.44$ Mimaki UJF-7451 flatbed printer Printers and Printing Equipment 11/1/2019 1 - 2 Years 37,887.69$ Konica Minolta/Lexmark Printers Leased Assets 3/1/2019 1 - 2 Years 64,999.00$ Plate Molds Plate Molds 12/1/2012 7 or More Years 24,000.00$ PLATE MOLDS Plate Molds 7/1/2013 7 or More Years 850.00$ PLATE MOLDS Plate Molds 7/1/2013 7 or More Years 850.00$ Plate Molds Plate Molds 7/1/2013 7 or More Years 1,176.00$ PLATE MOLDS Plate Molds 8/1/2013 7 or More Years 24,000.00$ PLATE MOLDS Plate Molds 8/1/2013 7 or More Years 10,274.00$ 8 Color Pattern Plate Fee Plate Molds 5/15/2017 3 - 4 Years 2,640.00$ Plate Mold Fee Plate Molds 6/30/2017 3 - 4 Years 2,450.00$ Color Mold Fee Plate Molds 6/30/2017 3 - 4 Years 1,400.00$ Fall Patterns - Plat Fee Gala/Aspen/Soleste Plate Molds 7/31/2018 1 - 2 Years 2,100.00$ 8 Plates total, 2-Pink Diamond, 2-Wood Grain, 4-Blue Ech Plate Molds 9/1/2018 1 - 2 Years 2,800.00$ 3 Plates for Winter 2018 pattern - Christmas knit Plate Molds 10/5/2018 1 - 2 Years 1,050.00$ 3 Plates for Winter 2018 pattern - Christmas knit Plate Molds 10/17/2018 1 - 2 Years 1,050.00$

33


Purch Date/ In

Serv Date Age COST 2 Plates for Winter 2018 pattern - Christmas knit Plate Molds 10/17/2018 1 - 2 Years 700.00$ 2 Plates for Winter 2018 pattern - Christmas knit Plate Molds 10/17/2018 1 - 2 Years 700.00$ Plate mold - Navy Downing Plate Molds 1/1/2019 1 - 2 Years 250.00$ Plate mold - Downing Plate Molds 1/1/2019 1 - 2 Years 250.00$ Plate mold - Bamboo Plate Molds 1/1/2019 1 - 2 Years 250.00$ Plate mold - Pink Diamond Plate Molds 1/1/2019 1 - 2 Years 250.00$ Plate mold - Wood Grain 2 colors Plate Molds 1/1/2019 1 - 2 Years 500.00$ Plate mold - Dandelion 3 colors Plate Molds 1/1/2019 1 - 2 Years 750.00$ Plate mold - Blue Echo 3 colors Plate Molds 1/1/2019 1 - 2 Years 750.00$ Plate mold - Banana Leaf 4colors Plate Molds 1/1/2019 1 - 2 Years 1,000.00$ Plate mold - Logo mould charge - Nickel Plate Molds 1/1/2019 1 - 2 Years 100.00$ Plate mold - Logo mould charge - Plastic Plate Molds 1/1/2019 1 - 2 Years 150.00$ Plate mold - Aspen Plate Molds 2/1/2019 1 - 2 Years 250.00$ Plate mold - Cabo Plate Molds 2/1/2019 1 - 2 Years 500.00$ Plate mold - St. Tropez Plate Molds 2/1/2019 1 - 2 Years 500.00$ Plate mold - Pina Plate Molds 2/1/2019 1 - 2 Years 750.00$ Plate mold - Tropicana Plate Molds 2/1/2019 1 - 2 Years 1,000.00$ Plate mold - Syrah Plate Molds 4/1/2019 1 - 2 Years 250.00$ Plate mold - Baker Plate Molds 4/1/2019 1 - 2 Years 250.00$ Plate mold - Heather Grey Plate Molds 4/1/2019 1 - 2 Years 500.00$ Plate mold - Fletcher Plate Molds 4/1/2019 1 - 2 Years 500.00$ Plate mold - Poppy Plate Molds 4/1/2019 1 - 2 Years 500.00$ Plate mold - Maise Plate Molds 4/1/2019 1 - 2 Years 750.00$ Plate mold - Harper Plate Molds 4/1/2019 1 - 2 Years 1,000.00$ 4 plates for Fall 2019: "Floral 1" Plate Molds 8/1/2019 1 - 2 Years 1,400.00$ 3 plates for Fall 2019: "Floral 2" Plate Molds 8/1/2019 1 - 2 Years 1,050.00$ 2 plates for Fall 2019: "Macrame" Plate Molds 8/1/2019 1 - 2 Years 700.00$ 4 plates for Fall 2019: "Missoni" Plate Molds 8/1/2019 1 - 2 Years 1,400.00$ 3 plates for Fall 2019 "Fall Plaid" Plate Molds 8/1/2019 1 - 2 Years 1,050.00$ 2 plates for Fall 2019: Leopard Patterns Plate Molds 8/1/2019 1 - 2 Years 700.00$ Plate mold - Chevron Stripes Plate Molds 9/1/2019 1 - 2 Years 250.00$ Plate mold Herringbone Plate Molds 9/1/2019 1 - 2 Years 500.00$ Plate molds - Winter 2019 Plate Molds 9/1/2019 1 - 2 Years 3,250.00$ Plate Mold - Froyo Plate Molds 1/31/2020 1 - 2 Years 250.00$ Plate Mold - Sherbet Plate Molds 1/31/2020 1 - 2 Years 250.00$ Plate Mold - Sprout Plate Molds 1/31/2020 1 - 2 Years 500.00$ Plate Mold - Blossom Plate Molds 1/31/2020 1 - 2 Years 750.00$ Plate Mold - Neapolitan Plate Molds 1/31/2020 1 - 2 Years 750.00$ Plate Mold - Dragon Fruit Plate Molds 1/31/2020 1 - 2 Years 750.00$

34


Purch Date/ In

Serv Date Age COST Plate Mold - Mochie Plate Molds 1/31/2020 1 - 2 Years 1,250.00$ Plate Mold - Tinsley Spring Plate Molds 1/31/2020 1 - 2 Years 700.00$ Plate Mold - Sloan Plate Molds 8/15/2020 Less Than 1 Year 305.00$ Plate Mold - Denver Plate Molds 8/15/2020 Less Than 1 Year 305.00$ Mold Fee for Harper/New Patterns Other Molds 4/1/2016 3 - 4 Years 1,650.00$

Totals 768,771.87$

35

Appendix 2

List of Information Provided by RUME ABC LLC

• RUME ABC LLC Verified Petitions for Assignment for the Benefit ofCreditors dated October 26, 2020

• RuMe Balance Sheet dated 9-30-20• RuMe Income Statement for the period ended 9-30-20• RuMe Sku Cost dated 10-29-20• RuMe Revenue by Customer for the period ended 9-30-20• RuMe Revenue and Profit by Sku for the period ended 8-31-20• RuMe Fixed Assets Schedule dated 9-30-20• RuMe Finished Goods Inventory dated 10-26-20

Appendix 3

Statement of Disinterestedness

DM3\7165529.1




Assignee.

C.A. No. 2020-0917-PAF

AFFIDAVIT OF DISINTERESTEDNESS OF HYPERAMS LLC

STATE OF ILLINOIS ) ) ss:

COUNTY OF DUPAGE )

I, Johnathan Deptula, do hereby depose and state:

1. I am a Senior Managing Director of Appraisal Services of HYPERAMS

LLC (“HYPERAMS”), an appraiser proposed by the above-captioned assignee

RuMe ABC, a series of DSI ABCs, LLC, a Delaware series limited liability company

(“Assignee”). My business address is 1501 N. Michael Drive, Wood Dale, Illinois

60191 and my office phone number is (847) 499-7028. Information regarding

HYPERAMS can be obtained at www.hyperams.com.

2. The Assignee has employed HYPERAMS as an appraiser, subject to

approval of this Court.

2 DM3\7165529.1

3. I am authorized to make this Affidavit on behalf of HYPERAMS in

support of Assignee’s Motion for an Order (i) Appointing Appraisers Pursuant to

10 Del. C. § 7382 and (ii) Establishing Bond Amount Pursuant to 10 Del. C. § 7383

(the “Motion”).

4. If called upon, I can and will competently testify to the facts stated

herein from my own personal knowledge, or from a review of the files and records

of HYPERAMS. As to those matters in this affidavit stated on information and

belief, I believe them to be true.

5. On behalf of HYPERAMS, I have carefully reviewed HYPERAMS’

files and determined that no conflict of interest exists in connection with this matter.

Therefore, to the best of my knowledge, information and belief, HYPERAMS is a

disinterested party in the above-captioned proceeding.

6. HYPERAMS is not a pre-petition creditor, an equity security holder, or

an insider of the Assignor.

7. HYPERAMS is not and was not an investment banker for any

outstanding debt or security of the Assignor.

8. HYPERAMS neither holds nor represents any interest materially

adverse to the interests of Assignor’s assignment estate or any class of creditors or

equity security holders, for reason of any direct or

DM3\7165253.1




Assignee.

C.A. No. 2020-0917-PAF

AFFIDAVIT OF STEVEN L. VICTOR IN SUPPORT OF ASSIGNEE’S MOTION FOR AN ORDER (I) APPOINTING APPRAISERS PURSUANT

TO 10 DEL. C. § 7382 AND (II) ESTABLISHING BOND AMOUNT PURSUANT TO 10 DEL. C. § 7383

STATE OF ____________________ ) ) ss:

COUNTY OF __________________ )

I, Steven L. Victor, do hereby depose and state:

1. I am a Senior Managing Director of Development Specialists, Inc., the

sole and managing member of DSI ABCs, LLC, a Delaware series limited liability

company and the series parent of RuMe ABC (“Assignee”), appointed assignee for

the benefit of creditors of RuMe, Inc. (“Assignor”).

2 DM3\7165253.1

2. I am authorized to make this Affidavit on behalf of Assignee in support

of its Motion for an Order (i) Appointing Appraisers Pursuant to 10 Del. C. § 7382

and (ii) Establishing Bond Amount Pursuant to 10 Del. C. § 7383 (the “Motion”).


herein from my own personal knowledge, or from a review of the files and records

of Assignee. As to those matters in this affidavit stated on information and belief, I

believe them to be true.

4. On October 26, 2020 (the “Petition Date”), Assignee commenced this

proceeding by filing a Verified Petition for Assignment for the Benefit of Creditors

(the “Petition”). A copy of the General Assignment for the Benefit of Creditors by

and between Assignee and Assignor (the “Assignment”) was annexed to the Petition

as Exhibit A.

5. Concurrently herewith, Assignee filed an affidavit and schedule of

inventory (the “Inventory Affidavit” and the “Inventory”, respectively) in

accordance with 10 Del. C. § 7381.

6. In addition to the inventory, machinery and equipment, Assignor also

owned a portfolio of intellectual property, consisting of, inter alia, patents and

trademarks concerning Assignor’s related brands and e-commerce platforms

(collectively, the “IP Assets”). Such intangible assets are difficult to value and

typically cannot be valued against comparable property given the unique nature of

3 DM3\7165253.1

these assets. In addition, any appraisal that could be obtained would typically be

prohibitively expensive.

7. Neither of the proposed appraisers was paid any retained by Assignee

or Assignor prior to the Petition Date. Both proposed appraisers, HYPERAMS, LLC

(“HYPERAMS”) and Onyx Asset Advisors, LLC (“Onyx”), were paid in full upon

completion and conveyance of their respective appraisals.

8. Based upon information and belief, both of the proposed appraisers are

disinterested. Accordingly, Assignee respectfully requests that the Court approve the

appointment of HYPERAMS and Onyx as appraisers for the assignment estate.

[Signature Page Follows]

I declare under penalty of perjury under the laws of the United States of

America and under the laws of the State of Delaware that the foregoing is true and

correct.

Steven L. Victor

SWORN TO AND SUBSCRIBED Before me this 11"day of November, 2020

ct�£ct�

4DM3\7165253.1

,

OFFICIAL SEAL

LAUREN E LAKEBERG NOTARY PUBLIC - STATE OF ILLINOIS

MY COMMISSION EXPIRES:06/20/21

DM3\7184093.7




Assignee.

C.A. No. 2020-0917-PAF

AFFIDAVIT OF WILLIAM D. BUSKO II IN SUPPORT OF ASSIGNEE’S MOTION FOR AN ORDER (I) APPOINTING APPRAISERS PURSUANT

TO 10 DEL. C. § 7382 AND (II) ESTABLISHING BOND AMOUNT PURSUANT TO 10 DEL. C. § 7383

STATE OF NEW YORK ) ) ss:

COUNTY OF __________________ )

I, William D. Busko II, do hereby depose and state:

1. I am a Managing Director with Consensus Advisory Services LLC and

Consensus Securities LLC (collectively, “Consensus”), a boutique investment bank

focused exclusively on consumer facing companies.


herein from my own personal knowledge. As to those matters in this affidavit stated

on information and belief, I believe them to be true.

2 DM3\7184093.7

3. Consensus was retained by RuMe, Inc. (“Assignor”) to act as the

investment banker and financial advisor for the purpose of identifying opportunities

for the sale of the company. Consensus continued to assist RuMe ABC (“Assignee”),

with the marketing and sale of Assignor’s assets.

4. Consensus began working with Assignor in August 2020. Company

materials were provided to Consensus, and an indicative list of potential acquirers

was provided by Consensus. This list was based on identifying bag and accessory

companies that compete in Assignor’s direct and adjacent industries. Consideration

was also given to relevant size and financial wherewithal to complete a transaction.

Given that Assignor was significantly unprofitable, the focus was on strategic

parties, who could realize synergies and therefore afford the highest valuation.

Additionally, it was believed that strategic parties could react the fastest given their

industry knowledge. Because Assignor was losing money, timing was viewed as

critical. However, certain financial parties were also considered, particularly those

with relevant portfolio holdings. It should also be noted that the COVID

environment added a challenge to the marketing process because Assignor was

further underperforming since a significant portion of its business relies on 1) the

travel customer and 2) corporate events. Such conditions were also negatively

impacting prospective acquirers.

3 DM3\7184093.7

5. In September 2020, Consensus completed a twenty-nine page

Confidential Information Memorandum, as well as a two page teaser. Also, a list of

potential buyers was finalized in discussions between the Assignor and Consensus,

and Consensus contacted such parties. In total, twenty-two parties were contacted

and reached, of which sixteen were strategic parties and six were financial parties.

Another three strategic parties did not respond. Consensus was formally retained by

Assignor on or about October 5, 2020 after a period of working together in good

faith and negotiating terms.

6. Confidentiality agreements were executed by six parties. There was no

party that expressed interest, but was unwilling to execute the confidentiality

agreement. Further, these six parties had calls with Assignor’s management. Three

proposals were received, of which two were in writing and one was provided

verbally. Ultimately, one party was the selected acquirer (the “Buyer”). Of the other

two parties, one had unexpected issues unrelated to Assignor that caused it to pause

its interest, and the other party could not ultimately commit itself. The Buyer is an

entity known to Assignor through a working relationship involving Assignor’s

brand, which the Buyer wants to continue to use. Consequently, diligence risk was

reduced, while at the same time the Buyer remains incentivized to close because it

does not want to lose this branding opportunity. Further, the Buyer has significant

scale and clearly demonstrated the financial wherewithal needed to close the

4 DM3\7184093.7

transaction. This Buyer also expressed interest in working with a certain significant

Assignor customer, which the Buyer finds potentially attractive. Lastly, the Buyer

expects to realize certain synergies. Thus, the Buyer had the motivation to win the

marketing process and had the ability to close the transaction.

7. Ultimately, Consensus has assisted Assignee with negotiating the arm’s

length sale of substantially all of Assignor’s assets, including certain intellectual

property, with the Buyer, a disinterested third party. The proposed purchase price is

141% of the book value of the inventory and equipment.

8. This excess value presents reliable indicia as to the value of Assignor’s

intellectual property assets, which are otherwise difficult to value.


In re:

RUME, INC., a Delaware corporation,

Assignor,

To:

RUME ABC, a series of DSI ABCs, LLC, a Delaware series limited liability company,

Assignee.

C.A. No. 2020-_______________

[PROPOSED] ORDER ON ASSIGNEE’S MOTION FOR AN ORDER (I) APPOINTING APPRAISERS PURSUANT TO

10 DEL. C. § 7382 AND (II) ESTABLISHING BOND AMOUNT PURSUANT TO 10 DEL. C. § 7383

Upon consideration of the Assignee’s Motion for an Order (i) Appointing

Appraisers Pursuant to 10 Del. C. § 7382 and (ii) Establishing Bond Amount

Pursuant to 10 Del. C. § 7383 (the “Motion”),1 and the Court having jurisdiction

thereof pursuant to 10 Del. C. §§ 7381 et seq., being advised of the grounds for the

Motion, and finding good cause therefor,

IT IS HEREBY ORDERED that:

1. The Motion is GRANTED; and

1 Capitalized terms not otherwise defined herein are intended to have the meaning set forth in the Petition.


2

2. HYPERAMS, LLC (“HYPERAMS”) and Onyx Asset Advisors, LLC

(“Onyx”) are each hereby appointed as disinterested appraisers.

3. Assignee is authorized and empowered to take any action and incur any

necessary expenses to appoint and compensate HYPERAMS and Onyx as appraisers

in connection with this matter.

4. Assignee shall not be required to obtain a separate appraisal of the IP

Assets.

5. The bond to be given by Assignee pursuant to 10 Del. C. § 7383 is

hereby established at $1 million on an unsecured basis.

6. This Court retains jurisdiction, pursuant to its statutory powers under

10 Del. C. §§ 7381 et seq. to, among other things, interpret, implement, and enforce

the terms and provisions of this Order and agreements entered into in connection

therewith.

SO ORDERED this ___ day of ______, 2020.

Vice Chancellor Paul A. Fioravanti, Jr.

IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE

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