Page 3 - Emporia Annual Report 2020

EXECUTIVE SUMMARY

Trials and tribulations are inevitable when running a student-led company. At Emporia, we strived for our endeavors and provided
consumers with a viable product they could use on a daily basis. This, however, proved to be a feat as we were the only company
operating without a corporate sponsor. Despite this hurdle, we were able to successfully create a corporate identity reflecting the

simplicity and professionalism of the team Emporia. Through rigorous meetings and brainstorming sessions, the PersTect Kit was
conceptualized.

With many components to our kit, we were at risk of not meeting our company's deadlines. Extensive research and communication
made it possible for us to launch our product efficiently and to distribute to consumers safely. With the resulting success of Emporia,
we are confident our business can be scaled by expanding our SKUs within the same product category and by engaging beyond our
initial niche market. We hope to expand in the future by developing a first-to-market product unique to Guam and by onboarding a
larger consumer audience to broaden our market presence in our community.

Operating in a pandemic can be challenging for businesses but most notably for small business owners. In compliance with our
Governor's orders, our team had to adapt to this pandemic and engage our creative problem solving skills to thrive and succeed in this
current economy. We sorely underestimated how difficult it would be to run a business, especially with little to no personal experience
in entrepreneurship. However, through this experience, we have learned marketable skills that we can apply to our future careers. In

production, we learned how to negotiate with vendors, we were introduced to the concept of logistics and learned the importance of
product packaging. We gained knowledge on how to market virtually through online platforms, by taking our marketing strategy to
social media and we initiated a partnership with a local company to feature our product on their retail website. In finance, we learned
to set financial goals, how to cost our product, determine retail prices, and calculate our profits. Most importantly, we learned the
value of being a good leader and a reliable team member. Through this experience, we recognize a company's success only happens
when everyone works together towards the same goal. With everything we learned, we will be able to carry these new skill sets with
us once we leave high school and enter the real world.

Because we were still under strict movement guidelines at the launch of our company, selling stock and collecting the payment for
shares was not possible. Compliance to the executive orders was very important to us and to our advisor. In addition to this, we
recognized the lengthy time spent conceptualizing a product could work against us; we needed to devise an effective way to motivate
our employees to promote and sell our product so that we are not left with profit-draining inventory at the end of the program. To
address these two concerns, we made the decision to forego the traditional raising of capital by means of selling stocks and agreed it
would be best to secure a small business loan from our advisor. We also agreed to pay our employees commission for every unit they
sold. Our decision proved to be a wise one, we were able to stay compliant to the Governor's orders and we sold all 100 units.

Surpassing our own expectations, we succeeded in fulfilling our customers' needs and demands. During this pandemic, it was crucial
for our team to have an eye for efficiency and to ensure our products were useful and not a duplication of another company's product.

Through our diligence, we validated our capabilities as a company and we aspire to help the future generations of Marketing students
at Tiyan High School.

In closing, Emporia's remaining profits will be used to help expand the marketing program’s subsequent entrepreneurial endeavors.
These endeavors include establishing a campus retail store in which the marketing students will learn the same skill sets we learned
in the Junior Achievement program. We are paying this experience forward, leaving a legacy for future students to provide them
hands-on experience in business and establishing a means to gain employable skills.

9 2