Earthworks Entertainment, Inc. was incorporated under the laws of Delaware on December 3, 1986. Earthworks is a development stage company, as it has not recorded any revenue since inception. The Company recorded a net loss of $2,362,770 for the year ended September 30, 2005 and a net loss of $1,846,323 for the year ended September 30, 2004.

The Company's primary business is the creation, co-production, marketing and distribution of high quality, world class children's and family-oriented entertainment properties. The Company has designed a multi-platform marketing program for its properties, utilizing television, home video, merchandise licensing, electronic and video games and book and music publishing.

The Company also forms teaming agreements with outside companies for the co-operative marketing of entertainment properties. The Company is establishing an artistic and commercial bridge among producers, TV broadcasters, publishing companies and merchandise groups in North America, Europe and Asia. The establishment of such bridge relationships among entertainment entities, who otherwise would not be able to globally expand their world market share in such a near horizon timeframe, will ensure that the Company is privy to substantial first look/first option opportunities on a wide array of world class entertainment properties.

BUSINESS DEVELOPMENT

The global market for high quality, character-driven children and family entertainment has never been greater. The proliferation of new digital, satellite and cable broadcast networks throughout the world has created a demand for world class children's and family entertainment properties that is expected to increase dramatically over the next decade. The owners and those who market such properties will have available to them revenue streams from merchandising, licensing, publishing and other areas of marketing.

Since 2003 Earthworks has been developing a presence in the market for high quality, character-driven children and family entertainment. On June 15, 2003 Earthworks appointed Peter Keefe as the Company's President. At that time, Earthworks began to establish its current platform to launch properties and products in the global television, home video and merchandise licensing marketplace. Earthworks obtained from Mr. Keefe, in exchange for 10,000,000 shares of the Company’s common stock, the right to market two animated entertainment properties: Nine Dog Christmas and Z-Force.

Building on that initial platform, Earthworks has expanded its inventory of properties to now include marketing rights to nine family-oriented entertainment properties:

Z-Force , an action adventure property:  Earthworks obtained from Peter Keefe the right to exercise global management of this property. Earthworks will receive 40% of all profits from the exploitation of this property. Additionally, the Company will receive 35% of any royalties generated from merchandise licensing and 25% of any royalties generated from home video sales for transactions that the Company consummates.

Nine Dog Christmas , a music-driven holiday property: The Company will receive 25% of any royalties generated from merchandise licensing for transactions that the Company consummates. The Company will receive a passive 10% royalty participation for any merchandise licensing activities transacted by other companies. The Company will also receive 10% of any royalties generated from home video sales.

Big Dogs , the big attitude character brand: The Company has worldwide rights to produce an animated television and home video series based on the property. The Company will receive production fees for any production which it supervises. Additionally, the Company will receive 35% of any royalties generated from merchandise licensing and 25% of any royalties generated from home video sales for transactions that the Company consummates.

Little Suzy’s Zoo , the pre-school and baby character brand: The Company has worldwide rights to produce an animated television and home video series based on the property. The Company will receive production fees for any production which it supervises. Additionally, the Company will receive 35% of any royalties generated from merchandise licensing and 25% of any royalties from home video sales for transactions that the Company consummates.

Corneil & Bernie , broadcast on Nickelodeon’s Nicktoons TV Network: The Company will receive 35% of any royalties generated from merchandise licensing for transactions that the Company consummates.

The Plonsters , the clay animation television series: The Company will receive 30% of any royalties generated from merchandise licensing and 20% of any royalties generated from home video sales for transactions that the Company consummates.

The Little Reindeer , acclaimed new animated Christmas special: The Company will receive 35% of any royalties generated from merchandise licensing and 25% of any royalties generated from home video sales for transactions that the Company consummates.

64 Zoo Lane , the animated children's series, broadcast on Nickelodeon’s Noggin TV Network: The Company will receive 35% of any royalties generated from merchandise licensing for transactions that the Company consummates.

Kiddo the Super Truck , a  theatrical quality computer animated property: The Company will receive 35% of any royalties generated from merchandise licensing and 25% of any royalties generated from home video sales for transactions that the Company consummates.

Earthworks is currently engaged in developing and implementing marketing programs for these properties. The properties that Earthworks develops and targets for distribution and licensing are chosen to provide the greatest probability for success across multi-platform market categories. These market sectors include the following:

 

Television (pay, free, cable and satellite)
School Supplies
Home Video
Educational Licensing
Merchandise
Music & Book Publishing
Toys and Video Games
Direct Marketing (to Retail chains through catalogues)
Apparel
Internet Applications
Theme Park Licensing
Gifts & Novelties
Fast Food Promotions
  


EMPLOYEES AND CONSULTANTS

Earthworks has three employees, including its two officers. None of our employees belong to a collective bargaining unit.

We supplement our staff with consultants that we retain from time to time on an as-needed basis.