Lantern Press is raising funds on StartEngine through a Common Equity offering, with a pre-money valuation of $24.5 million and a price per share of $2.50. The company reported a revenue of $19.6 million in 2023, which translates to a revenue multiple of 1.26x. This multiple is very reasonable and one of the lowest we've ever seen in the equity crowdfunding space. 

For investors, the exit potential for a company like Lantern Press could be significant. The U.S. artwork market continues to grow, and Lantern Press's unique offering of original, hand-drawn artwork on keepsakes and gifts positions it well within this market. To achieve a 10X return, Lantern Press would need to reach a valuation of approximately $245 million (not accounting for dilution). This would likely require substantial growth in revenue, further expansion of retail partnerships, and potentially diversification into new product lines or markets.

Investing in common equity provides shareholders with voting rights and potential dividends, although it also means they are last in line in case of liquidation. Compared to preferred equity, common equity does not offer liquidation preferences or fixed dividends, but it can offer greater upside potential if the company performs well.

Lantern Press operates within the expansive US artwork market, which is valued at approximately $138 billion and is projected to grow at a compound annual growth rate (CAGR) of 6.15%. The market encompasses a wide range of consumer products, goods, and services, with a strong demand for unique and high-quality artwork and keepsakes. However, the niche that Lantern Press operates in is relatively small, as evidenced by the company's declining revenue in 2023 despite adding new retailers. 

Despite the high level of competition in the market, Lantern Press has differentiated itself through its unique hand-drawn artwork and long-standing relationships with key retail and tourist locations. The company's dual distribution model (B2B/B2C) allows it to reach a broad audience, from retail stores to direct-to-consumer channels, enhancing its market penetration.

Lantern Press is led by CEO and Director Aaron Morris, who brings an impressive 28 years of relevant industry experience to the company. He founded Lantern Pressw in 2007, and previously founded 5 other companies in the consumer goods space, from playing cards and collectables to digital cameras and electronics. While Aaron's LinkedIn claims that all of these companies were either acquired or part of a merger, we were not able to independently verify this. 

Justin Yeck serves as VP of Sales at Lantern Press and previously worked as VP of Sales at Feizy and District Manager at Pottery Barn. Jeff Del Rosario serves as the company's VP of Finance and has held senior autiting/controller postitions at Deloitte and Boeing. Finally, Josephine Kimberling serves as VP of Creative and has held senior design postions at Starbucks and Nordstrom. 

Lantern Press differentiates itself in the artwork industry by focusing on the creation of original, hand-drawn artwork featured on keepsakes and gifts. This emphasis on unique and high-quality artwork sets Lantern Press apart from mass-produced items commonly found in the market. The company's long-standing relationships with iconic parks, tourist attractions, and resorts further enhance its credibility and appeal, as these partnerships indicate a trusted and recognized brand in desirable locations.

Despite operating in an extremely competitive market with over 100 direct competitors, Lantern Press's focus on original artwork and its established presence in prominent retail locations provide a competitive edge. The company's B2B and B2C distribution model allows it to reach a wide audience, from individual consumers to large retail chains. However, the lack of patents and the similarity of its products to established solutions suggest that continuous innovation and maintaining high-quality standards will be crucial for sustained differentiation.

Financially, Lantern Press reported a revenue of $19.6 million in 2023, reflecting a slight decline of 0.81% from the previous period. Despite this minor decrease, the company maintains a robust gross margin of 74%, indicating efficient cost management and strong profitability potential. Additionally, Lantern Press achieved a significant milestone by adding 809 net new retail doors, further expanding its market reach. However, it must be noted that a revenue decline in the midst of net new retail doors is concerning and may indicate a limit on the upside revenue potential of Lantern Press.

As of the most recent fiscal year-end, Lantern Press had $136,224 in cash and cash equivalents, which has since decreased to $92,821 in April 2024. While the company claims to have a burn rate of $0 (according to its offering circular), the company incurred a net loss of -$2.08M in 2023. Therefore, we believe it is safe to assume that the company will need to continue to rely on external funding to sustain operations. 

Lantern Press operates in an extremely competitive consumer products market, which presents a significant risk. The company must continuously innovate and maintain the uniqueness of its hand-drawn artwork to stay competitive. The low barriers to entry in this market mean that new entrants can easily emerge, potentially diluting Lantern Press's market share.

Despite a substantial revenue of $19.6 million in 2023 and high gross margins of 74%, Lantern Press is pre-profit and has reported net losses in the most recent fiscal years. The company recorded a net income loss of $2.08 million in the last fiscal year, down from a $3.04 million loss the previous year. This continual net loss may point to operational inefficiencies or high costs that the company must address to achieve profitability.

The company's revenue experienced a slight decline from $19.64 million to $19.48 million, marking a year-over-year decrease of 0.81%. This negative growth, albeit small, could be a sign of stagnation or underlying issues in maintaining or expanding its customer base. Sustained revenue decline could threaten the company's financial stability and long-term viability.

Lantern Press carries a substantial amount of debt, with short-term debt at $5.6 million and long-term debt at $5.1 million. The high debt levels could limit the company's ability to invest in growth opportunities and make it vulnerable to economic downturns or shifts in the consumer market. Aditionally, funds from this raise could potentially need to be used to pay-down short-term debt (debt that matures within the next 12 months).

Lantern Press has established itself as a significant player in the consumer products sector, specializing in original and hand-drawn artwork on keepsakes and gifts. The company boasts a robust customer base of over 5,000 retail stores, enhancing its market presence and providing a stable revenue stream. This extensive distribution network includes long-standing relationships with some of North America's most iconic parks, tourist attractions, and resorts, underscoring the brand's credibility and reach.

In 2023, Lantern Press reported impressive revenue figures amounting to $19.6 million. While the annual revenue growth experienced a slight decline of 0.81%, the company's ability to maintain nearly $20 million in revenue amidst an extremely competitive landscape is commendable. Additionally, Lantern Press enjoys a high gross margin of 74%, which is a strong indicator of operational efficiency and profitability potential.

The company's growth trajectory is further evidenced by the addition of 809 net new retail doors, which signifies expanding market penetration and an increasing customer base. With a dual distribution model that includes both B2B and B2C channels, Lantern Press is well-positioned to leverage multiple revenue streams, thereby enhancing its financial stability and growth prospects. Aditionally, Lantern Press' valuation is extremely reasonable at a 1.26x revenue multiple.

Despite Lantern Press's impressive revenue of $19.6 million in 2023, there are several factors contributing to a bearish outlook for the company. Firstly, the company incurred a decline in revenue in 2023 despite adding over 800 net new retail stores. This indicates a potential ceiling in revenue and limited upside. Lack of growth in a highly competitive market raises concerns about Lantern Press's ability to innovate and capture new market segments effectively.

Another critical concern is the company's net income, which stood at a substantial loss of -$2,078,929 for the most recent fiscal year. This significant loss suggests that Lantern Press is struggling to manage its operating expenses effectively. While this is common with startups, a company with nearly $20M in annual revenue struggling to reach break-even is a red flag to consider. 

Furthermore, Lantern Press operates in an extremely competitive landscape with low barriers to entry. The market for consumer products, especially keepsakes and gifts, is saturated with numerous players, both large and small. The absence of patents or proprietary technology means that the company has limited protection against competitors replicating its offerings, which could erode its market share over time.

Lantern Press is a consumer products company specializing in creating original, hand-drawn artwork on keepsakes and gifts. The company has established a robust customer base, with over 5,000 retail stores, including iconic parks, tourist attractions, and resorts across North America. Lantern Press reported a revenue of $19.6 million in 2023, maintaining a 74% gross margin, and successfully added 809 net new retail doors during the same period. Despite a slight annual revenue decline of 0.81%, the company continues to generate significant revenue, demonstrating resilience in an extremely competitive market.

The company is currently in the growth stage and is raising funds on StartEngine with a pre-money valuation of $24.5 million. The crowdfunding campaign aims to raise between $15,000 and $1.24 million, with proceeds allocated towards research and development, inventory, company employment, and working capital. This funding will support Lantern Press in further expanding its product offerings and market reach.

Lantern Press operates on a B2B/B2C distribution model, combining transactional and recurring revenue streams. The company's primary revenue model is transactional, supplemented by recurring revenue from its established customer base. With a 2023 net income loss of -$2.08M, the company has $92,821 in cash on hand, indicating a need for additional capital to sustain operations and growth initiatives.

Despite operating in a low-barrier, highly competitive market, Lantern Press has managed to carve out a niche for itself through its unique product offerings and strong relationships with major distributors and retail partners.