X-Games, Inc.

With a 7.000 square foot facility based in Miami, FL, X-Games Inc. is a gaming (Consoles accessories & Video-Games) logistics company fulfilling distribution needs in the Caribbean, Central and South America.

Established in 2004; we identified a growing demand for console games in Latin America and developed a logistics network in order to provide just-in-time products throughout the region. The company has a long experience in the distribution of video games, long term relationships and extensive market knowledge of the region.

LATAM, is a challenge due to territory size, culture, complicated customs, import duties, and legislation. Social mentality and customs delays make it a challenging territory. Our expertise is getting around these difficulties and squeezing sales from under-served markets.

We bring publishers efficient, legitimate channels that reach segmented and traditionally under-served markets. We have successfully combined wildly separate and highly segregated markets to serve multiple regional distributors through a single reliable source.

Our customers include specialty stores, large local retailers, large multi-national corporations,
electronics importers, on-line businesses and regional distributors.

The management team is comprised of seasoned professionals with many years in the industry and a proven distribution expertise. We have 13 employees in Miami, staffed office in Argentina, and warehousing and importing capabilities in Peru and Chile.
Revenues for 2011 were $25MM, 2012 $37MM, 2013 $40MM
As of july 2014 our revenue is 33%+ over same period last year. Due to the introduction of the new platforms from Sony (PS4) and particularly Micorsoft (X One) We expect to grow at least 30 % from 2013.

Value Added Services:
Cultural and language affinity.
A one-stop shop for new released titles, current catalogue and re-publishing.
The ability to insure our AR (through EximBank) in the region and our strong banking relationships allow us to finance our inventory, provide 7 figure terms to our growing formal customers, allowing for sustained market demand.

In country operations and support. In response to a growing client base and a desire to further improve our service levels and efficiency, we have staffed offices & warehousing facilities in Argentina, Peru & Chile.
Most of all it is our just in time service, ability to move product past day one-re-orders, reliability and trust.


Who we distribute: Today X-Games Inc distributes video games in Latin America for: Electronic Arts, Sega, Take2, Tecmo/Koi, Majesco, Bethesda, 505 Games, Maximum, Atlus, Konami, Disney Interactive, Square-Enix, Namco-Bandai, Capcom, Warner Bros , Ubisoft among others.

What changes we've seen in 2013/2014 that have projected our growth in the region:

The implementation of our new program of inventorying a deeper and wider range of products, which in turn has brought us new customers and a higher attach rate.

Larger participation of formal retailers in Chile, Argentina, Peru and Colombia have created a credible and trustworthy platform for publishers and distributors to jointly participate in advancing the industry. The distributor is able to extend large lines of credit and together with the publishers promote brands and titles through the large retailers robust, extensive and credible marketing instruments.

Publishers interest and investment in the Region: Today LATAM represents a 5-10% revenue of the US distribution, compared to a 3% in 2010. As the markets expand organically and grow also due to investments from SONY, MICROSOFT & NINTENDO, the publishers are looking for trustworthy and reliable business partners to capture the explosive growth in the years ahead. X-Games has the Finance, structure, transparency, know-how and reliability to be such a partner.

In late 2012 X-Games was named an Electronic Arts distributor for the region. Being able to travel the region with the largest video games publisher allows for unprecedented recognition and growth.

2013-2014 Market conditions and sales projections: We believe the robust regional economies, the demand by the consumer of more sophisticated gaming consoles, the need to participate in on-line games that allow the manufacturer to terminate access of those consoles using circumvention devices or running unauthorized or pirated software, the high attach rate of new technologies (Ps4 & Xone) the awareness of official legitimate product and our proactive push to reach new customers through our sales team in Miami as well as our new in country operations in Chile, Peru & Argentina, creates a very alluring scenario for the video games business in Latin America.





Walter Caridad
President
X-Games Inc