EFTA02350678

From: Richard Joslin Sent: Wednesday, November 26, 2014 4:42 PM To: jeffrey E. Subject: followup on Regan publishing When title is produced, there are one time developme=t costs (aka Plant expense) — photography for book cover, copy editi=g, artists fees. When a book goes into second printing then th=se costs do not recur. Royalty payments increase as more units are sold.&nb=p; If there is a blockbuster, there is a higher royalty cost per unit, ie =5% on Art of the Pimp, the title that Judith hopes to be blockbuster. = John is building model to show the margin/ cash flow if there is specific title that has a second printing. Richard Joslin CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 (w) (c) (f) 1 EFTA_R1_01328265 EFTA02350678