#ThursdayTool - JKBX

HOW JKBX WORKS

Bringing royalties to your portfolio

Investing in music is now accessible and simple

The JKBX platform features Royalty Shares from hit songs that you can buy as easily as any other security.

- How a Royalty Share makes its way to the platform

Every time new songs become available for you to invest in, those Royalty Rights go through a thorough compliance and regulatory process to become Royalty Shares.

- The Royalty Rights are prepared for listing

Royalty Right assets are owned by rights holders that express an interest in selling those assets. The issuer negotiates with the rights holder to purchase a percentage of certain Royalty Rights, taking a number of factors into account including the artists, streaming volume, and income the song generates.

- Music asset related rights are submitted to the SEC

The issuer files with the SEC to qualify the offer and sale of securities of certain Royalty Rights pursuant to Regulation A of the Securities Act of 1933. This process is similar to the way in which a company conducts a registered offering of securities in an initial public offering (an IPO). The issuer cannot sell Royalty Shares unless and until the offering is qualified by the SEC.

- Customers can indicate interest

Issuers can test consumer demand for each Royalty Share by “testing the waters,” which allows customers to indicate non-binding interest in purchasing a specific series of Royalty Shares. Then, if and when the Royalty Shares are qualified, they receive notice when those new assets become available to purchase on the JKBX platform.

How payments are distributed

When a Royalty Share is sold on the JKBX platform, many people benefit.

- The customer’s earnings are correlated to the underlying music asset's performance

When the songs in your portfolio earn money, so do you. Royalty Shares are a contractual right to receive a specified portion of royalties, fees, and other income streams from a specific music asset (song or recording) underlying the Royalty Share.

If the music asset underlying your Royalty Share generates income, and you hold the Royalty Share on the applicable date of record for a distribution, then you can expect a distribution to your account.

- The rights holders receive payment from the issuer

For rights holders, JKBX is a transformational platform that enables liquidity for existing music assets in a granular way — selling portions of music assets from their catalog rather than the whole catalog. You’ll receive proceeds from issuers, while maintaining your copyright ownership rights and control of the music asset.

- Creators get paid through the JKBX Creator Program

Recording artists and songwriters of the original associated recordings and songs receive payments through our Creator Program. The Creator Program pays Creators based on Creator-page engagement measured by page views, enabling original artists and songwriters to get paid — even if they have sold their rights or the revenue is coming from another stakeholder.

Website: https://www.jkbx.com/