VALENCIA TOYS, LLC 2926 Willowbrook Dr. # 28 Merced, CA 95348

TALKING PINATA LICENSING OPPORTUNITY

LICENSING OPPORTUNITY

PATENT US8678872B1

ABOUT US

Valencia Toys LLC is a family owned Corporation looking to bring

to market a line of products as an off shoot of our patented

“Crazy Talking Piñata”™.

Our Crazy Talking Piñata™ is a patented, prototyped, reusable,

high tech device with interchangeable disposable characters

sold separately. It’s the only Interactive, Musical, Customizable,

Programmable, and RC Operated piñata in the world.

OUR GOAL

Our goal is to license out our patent to a corporation that has both the capacity and the

positioning to mass produce and bring this product to market in a large scale.

Professional team:

President/Manager Octavio Valencia

Patent attorney Richard L. Miller

Product development Inventive Resources Inc. - USA Ningo Industrial Co. LTD - China

Legal representation Murphy & Brawly Attorneys at Law

OUR PRODUCT

Our Crazy Talking Piñata™ is a patented, prototyped, reusable, high tech devise with interchangeable disposable

characters sold separately. It’s interactive, musical, customizable, programmable, and RC operated.

Players can choose pre-recorded funny sound bites to be “yelled out” by the piñata every time it gets hit, or get creative

and record their own sound bites for a more personalized experience.

This piñata either mocks or encourages kids as they play with it and makes their piñata braking experience like no other

they have ever had, calling out their names during the game.

It also features an easy-to-break optional function that allows users to “brake” the piñata open with the push of a Remote

Control button, and by so doing, choosing who gets to break the piñata. Alternatively, it can be programed to automatically

break open at a set the number of hits, within a range of 10 to 100, so as to adjust for the length of time needed for

different group sizes and not leave anyone without the chance of having had a go at it, before it breaks.

PROBLEMS WITH TRADITIONAL PINATAS

The most commonly sold piñatas are very hard to break. Little children can’t break them and three things often end up

happening:

1. They are too hard to brake, especially for small children and a grown-up often ends up ripping open the piñata

with their bare hands, which defeats the original intent and functionality of the game.

2. Candy dribbles out in several time intervals, as the piñata reaps little by little, which “encourages” kids to jump in

every time to get the candy, risking injury, as the stick is still being swung.

3. The piñata breaks open before many of the kids have had a chance to have a go at it. Hence, it’s often the case

that many kids don’t get to enjoy the fun of trying to hit the piñata.

HOW WE SOLVED THESE PROBLEMS

Our piñata’s technology-driven candy release mechanism eliminates the three main problems of traditional piñatas.

1. Our piñata does not require strength for its candy release mechanism to be activated. Hence, it is always a player

who breaks it as it was intended, and not an adult ripping it open with their bare hands.

2. Candy always falls out at once as a lid opens when the release mechanism is activated, avoiding the common

dribble down effect that makes kids jump in several times during the game, as the stick is still being swung.

3. Since our piñata can be programed to last up to 100 hits before it opens, it will never break too soon, as it

sometimes happens with traditional piñatas that are broken by the first few players and leave the rest of the kids

without having had a chance to try to hit it.

For the first time ever, small kids will actually be able to break their piñatas with the help of

technology and their parents, if they choose to cheat a little with the remote control.

IS OUR PRODUCT COMPETITIVE?

As The only high tech, programmable and remote-control operated interactive talking piñata and the only piñata that

even little kids can “break” and that appeals to grown up as well, we can confidently say that we have a captive market.

Additionally, our disposable piñata shells that work in conjunction with our re-usable electronic device are a captive

product with great potential both immediate and in the future, as innovative new product variations are brought to

market.

Piñatas are sold profusely on-line as well as in many large national and international stores like Costco, Walmart, Target,

K-Mart, convenience stores, etc., and thousands of Party Supply stores and Hispanic markets. However, all of our

“competitors” sell traditional piñatas that present all the problems and limitations described in the problem section.

Hence, since our product eliminates all of those issues, while increasing the fun factor and giving users absolute control

over their experience, while allowing for substantial savings over the long run, no other product is comparable nor

competitive with ours. Additionally, both the novelty factor and enhanced functionality of our piñatas makes them

appealing to a broader market segment than traditional piñatas.

Furthermore, today’s consumers increasingly value personal autonomy, self-discovery and personalization in the

products and services they purchase; product experience preferences that are all met by our Crazy Talking Piñata™. Our

product is an interactive invention that allows the users to “finish” the product themselves, by personalizing it as they

creatively record their own voice messages into the device and make it uniquely their own, giving them control over the

timing of the candy release by pressing a remote control activated button. They can also choose the different

parameters for the device to “break” open also adds to the users’ degree of control and makes for a very unique

experience.

MARKET POTENTIAL / DEMAND

Just like Mexican food, to a large degree, piñatas have become a mainstream product in the US. However, the

Latino purchasing power alone has already surpassed 1.5 trillion dollars. Additionally, three out of four Americans agree

that Hispanics have had a significant influence on the American culture, which is evident in growing demand for Latino

products and the fast paced growth of marketing companies that specialize in reaching the Hispanic market in particular.

A phenomenon called “The Latinization of America” has been slowly brewing in our Country and this concept goes

beyond the statistics that show a very strong and growing presence of Latinos living in the US, to include a trend in the

adoption of many Latino values, traditions and a growing market demand for anything Latino, by the general

market/population. We can observe this trend in Latino culture being increasingly represented in our music, sports, in

movies, on TV, and in a very big way in the food we eat. Latino culture is just fun and we’re adopting anything that’s

enjoyable from this culture. Hence, we believe that our Crazy Talking Piñata™, can successfully be sold at retailers to the

like of Walmart, Costco, Target, Party City, Party Express, Ya Otta Piñata, Amazon, QVC and dozens of piñata specific and

party supplies websites.

Additionally, our product also appeals to a much broader demographic that traditional piñatas and its novelty and

unique features, with appropriate theme designs, can make it the ideal game to incorporate into other kinds of

celebrations besides birthday parties, like the following:

• Fourth of July

• Thanksgiving

• Easter

• Christmas

• Halloween

• Cinco de mayo

Furthermore, specialty piñatas can be made with themes like:

• Political figures

• Sports figures

• Adult themed piñatas for bachelors and bachelorettes’ parties, etc.

An additional and very important component of our product’s future sales potential,

is that we have both a captive market and a captive product, which is the disposable

piñata shells that work in conjunction with our re-usable electronic device.

Hard industry data that is specific to this particular product is considered proprietary information and it’s very hard to

get. However, we are in the process of conducting our own market research studies to be able to quantify demand with

greater precision. We have also come across information that may allow us to discuss estimations of demand, in a face

to face exploratory meeting.

MOST NOTABLE US SPINOFFS OF THE POPULARITY OF PIÑATAS

The highly successful 2006 video game Viva Piñata is about a world where piñatas compete to be chosen for children’s

birthday parties. A spinoff television show, also titled Viva Piñata was created to push sales of the Xbox game created by

Microsoft.

BUSINESS PROPOSITION

Our goal is to license out our patent to a corporation that has both the capacity and the positioning to mass produce and

bring this product to market in a large scale.

WHAT WE HAVE TO OFFER

1. Exclusive licensing rights. PATENT US8678872B1

2. Trademark registration for “The Crazy Talking Piñata” and “My Piñata Talks”

3. Web domains for all variations of The Crazy Talking Piñata.com and MyPiñataTalks.com, including a compatible Spanish

version: PiñatasParlanchinas.com

CONTACT US

PRESIDENT Octavio Valencia (209) 756-3777

Octavio@TheCrazyTalkingPinata.com

CURRENT WORK

Independent Business Consultant

Small Business Development Center (SBDC)

Program Manager - Mountain Valley 2-1-1

United Way of Merced County

CURRENT AFFILIATIONS:

Rotary Club of Winton - Nuevo Latino

Founding member - President 2014-2015 & Vice President 2016-2017

American Leadership Forum

Senior Fellow

PAST AFFILIATIONS:

Merced County Hispanic Chamber of Commerce

Vice-president 2012 – 2015

Winton Educational Foundation

Founding Member and board member 2013 - 2015

Comunidad de Crecimiento y Expresión

Founding member and Secretary 2014 – 2015