Grom Educational Services

The company purchased internet content filtering software, NetSpective Web Filter, in 2017, providing scalable network monitoring and security solutions services to schools, libraries and select government municipalities. NetSpective Web Filter delivers an easy-to-use, fully automated and highly reliable solution that has one of the lowest total costs of ownership in the industry, and is compliant with CIPA (Child Internet Protection Act) guidelines.

CIPA requires schools and libraries with internet access to certify that they have internet safety compliance and technology protection measures, including internet filtering technology, for both on and off-network. Additionally, CIPA requires libraries and K-12 schools to educate students on how to be good digital citizens and the NetSpective Web Filter solution provides a built-in Digital Citizenship course (DCL) that assists schools in meeting some CIPA requirements. NetSpective Web Filter generates its revenue through the sale of hardware and subscription fees for the use of its software. The majority of its customers are K-12 educational institutions looking to keep students safe on campus and on school-issued internet devices. These customers pay in advance for filtering services ranging from 1 to 5 years agreements. NetSpective Web Filter has provided its services to thousands of schools and millions of students since 2003.

Top Draw Animation

Acquired by Grom in 2016, Top Draw Animation provides premium animation production services for global and international entertainment companies. Last year, when Grom purchased Curiosity Ink Media, the company tapped Curiosity execs, Russell Hicks and Jared Wolfson, each of whom built stellar careers in animation and toys, respectively, to give Top Draw a long-overdue and meaningful presence in Hollywood. There, the executives can streamline their access to key entertainment decision-makers and seek buyers of original Curiosity content, while promoting the animation services of Top Draw, based in Manila, the Philippines. In our opinion, this will help Top Draw potentially secure more assignments.

Here’s how it works: Top Draw contracts with third parties to produce animated films and television shows, which are then sent to Top Draw for production treatment at its studio. With over 400 animation animation experts hard at work at its state-of-the-art facility, Top Draw produces more than 200 half-hour segments of animated content annually, making it one of the largest producers of animation for television globally.

The success of Top Draw is due to its premium and carefully crafted production of animated features and series. The company earns its revenue from contracts with customers for pre-production and production services for developing animated movies and television, and its work is seen on screens all over the world.

Top Draw’s customers have included Disney, Nickelodeon, Cartoon Network, DreamWorks and Warner Bros. Pictures. In our opinion, these blue-chip customers speak to the quality of the product that Top Draw produces.

Top Draw competes with other animation businesses from production companies in Korea, Taiwan, Canada, India, China, Malaysia, Singapore and Thailand. Its competitors located within the Philippines, include Toon City Animation, Snipple Animation Studio and Synergy 88 Digital.

Curiosity Ink Media

In March of 2021, Grom recruited former Nick at Nite exec, Paul Ward, to join its leadership ranks. At his encouragement, Grom took a hard look at Curiosity Ink Media, a creator, developer, and producer of kids’ and family entertainment content, led by Russell Hicks, Ward’s former peer at Nickelodeon. Hicks opened Curiosity in 2017 with the goal of championing original intellectual property (IP), much as he did during his tenure at Nickelodeon, where he led the charge on several groundbreaking hits including SpongeBob SquarePants, Dora the Explorer and Paw Patrol, among others. Grom loved what it saw and in August of 2021, the company acquired an 80% stake in Curiosity, and placed itself squarely in Hollywood and in the family entertainment arena.

In a very short time, Curiosity has created an impressive slate of original content, currently in various stages of development including:

• Santa.com - Soft launched in 2021, Santa.com is a virtual North Pole that, this year, will debut with a robust e-commerce storefront as well as experiential content for every member of the family. An update on the classic department store – pulling out all the stops in celebration of everyone’s favorite holiday – the site connects kids and their parents (shhh – Santa!) and generates each child’s wish list. The list then goes to the North Pole, where elves can purchase products with a few simple clicks. Additionally, content helping grown-ups get ready for the holiday season (replete with e-commerce links) will accompany great programming for the kids, including virtual visits with Santa, tips for the hottest toys, games and much more.
• Santa.com Movie Grom and Curiosity have also stuffed this stocking with a full-length theatrical feature film – called Santa.com and slated for release in 2024 – for global distribution, with attendant merchandising and consumer products opportunities. The Story: When a grinchy computer hacker takes control of Santa’s Workshop, he threatens to ruin Christmas. Can Yoyo, a lovable, but naive elf, help save the day?
• Thunderous - Tells the story of a teenager who struggles to find the connection between her family’s Indigenous culture and her life in the modern world, this original IP franchise debuted in late April and is available wherever books are sold. Grom and Curiosity have expressed objectives to upconvert this graphic novel, in success, to a TV series and possibly a theatrically released feature film.
• Cats vs. Pickles - The company will receive a 2% royalty share from this franchise, which has already attracted millions of fans on YouTube. The first installment of the book series debuted in 4Q and is expected to become an animated series for global distribution. This property is already selling merchandise and games at major retailers nationwide. The products on Amazon.com boast strong reviews and ratings.
• Laugh on Lorb/LOL (working title) - An original, animated sitcom from the mind of celebrated comedian, Maz Jobrani, centering on an aspiring teenager who is abducted by aliens from the planet Lorp, who mistake him for Oprah Winfey. Their objective: to bring him back to their planet to learn tips from Oprah on aspirational living.
• Baldwin’s Big Adventure - Aimed at the lucrative preschool market, this animated series follows the adventures of a young switcher train who takes to the rails to be reunited with his father. The franchise debuts in June in book format from Curiosity's publishing partner, Dynamite Entertainment.
• Mr. Zip - United States Postal Service - Debuting in 2023, timed to the 60th anniversary of the USPS’s rollout of ZIP codes, the iconic animated postal delivery character, MR. ZIP marks his comeback in book form, with brand extensions envisioned in success. Books include fiction, novelty and activity formats for preschool through preteen. No longer one dimensional, MR. ZIP will now oversee more than just the delivery of flat letters and packages and expand his purview to include advanced mail systems, which introduce STEM skills such as coding and computational mathematics. His original role as a teacher educating Americans about ZIP codes also offers ancillary opportunities for developing games, educational toys and tools to help aid in teaching. For parents and educators looking for fun and innovative ways to engage children, MR. ZIP’s mail bag of tips, tricks and tools are ready to empower kids to learn and resolve new challenges.
• The Pirate Princess - An infant princess washes ashore on a remote island that is run by no-nonsense pirates, who band together to raise her. The story will debut initially as a graphic novel in 2022, and the company to upconvert the franchise to a feature film franchise in success.
• The Legion of Forgettable Supervillains - The Legion of Forgettable Supervillains follows the story of young Ben Mondo and his friends, all of whom have an abysmal record of heroic feats. Tired of trying to live up to the legacy of his legendary grandfather, Mr. Infinite, and constantly being one-upped by Saga City’s top superhero, Sir Superior, Ben is ready to hang up his cape. But after accidentally stumbling upon a bank heist, Ben is caught holding the bag by a photographer who posts the blurry snap to social media. When the photo goes viral, Ben becomes an infamous, mystery villain and together with his fellow failed superhero buddies, create “The Forgettable Supervillains Society.” The career change instantly transforms their lives from boring to breakthrough, and their villainous acts often end up saving the day.

These are just some of the productions Grom and Curiosity intend to offer to both domestic and international programmers and publishers to round out their offerings with premium content. If these productions find success, we believe the company will be able to generate additional revenue through consumer products, distribution licensing fees as well as merchandising opportunities.