SoapSox

Next generation of washcloths for kids.

SoapSox

Next generation of washcloths for kids.

Los Angeles, CA
Consumer Products
SoapSox® the next generation of washcloths for kids. A collection of adorable characters making bathing fun for kids, and easy for parents. Simply "feed" liquid soap to your favorite animal. Built in finger pockets facilitate hygiene through play.

$29,132

raised
47
Investors
62
Days Left
$7.75
Price per Share
$6.2M
Valuation
Equity
Offering Type
$240.25
Min. Investment

$29,132

raised
47
Investors
62
Days Left
$7.75
Price per Share
$6.2M
Valuation
Equity
Offering Type
$240.25
Min. Investment

Reasons to Invest

Over $3.3M in lifetime sales and on track to double last years sales with over $400k in profit
75% of customers come back and buy another SoapSox
Current distribution to Walmart, QVC, Buy Buy Baby, Target, and 3,000 specialty stores through an exclusive agreement with Ginsey Home Solutions, along with partnerships with the Honest Company

A simple idea that changed a child's life forever

When Ray Phillips worked as a Program Director for a residential treatment facility for children who have experienced trauma, Ray found that the most difficult time of the day was bath time. Children would argue, cry, and even attempt to hide to avoid taking a bath.

 

After staff at the agency struggled with one child who could not part with his stuffed animal to bathe, Ray came up with the idea of taking another stuffed animal and modifying it to hold soap. After giving the child the modified stuffed animal, the child took a bath without issue and unknowingly SoapSox® was born. 

 

Ray quickly recognized the same dilemma surrounding bath time in homes and was shocked to find no such product on the market. Thus begun the exciting rise of SoapSox®.

Every parent knows the struggles of bath time...

The most difficult time of the day for a parent is bath time -- kids can be scared or reluctant to bathe; and while some kids love the water, they don't want to wash themselves. There are bath toys that incentivize kids to get in the tub, but they have no functionality and often only act as a distraction rather than a method of helping clean. And worse, in a matter of days or weeks, these bath toys grow mold. There isn't anything on the market that provides a fun, functional and safe way to help kids bathe. 

The next generation of washcloths for kids

Founder, Ray Phillips, came up with SoapSox® as a way to make bath time more fun for kids and easier for parents. SoapSox® is specifically designed to hold soap in a cavity in the center of each cute, fun character. Kids can "feed" SoapSox® liquid or bar soap during bath time, which helps facilitate hygiene through play. SoapSox® are designed with built-in finger pockets for better scrubbing and are machine washable and dryer safe, ensuring bath time is a breeze from beginning to end. 


SoapSox® is an authentic product story differentiating us from the competition. We connect emotionally with parents by creating products that encourage bonding and lifetime habits. SoapSox was conceived to help create a safe space for kids. When shopping for products, 50% of millennial parents say they try to buy products that support a good cause.


Sources: Millennial Marketing

Wanted by both the Sharks and Disney

From a $1M buyout offering from the sharks on Shark Tank to a licensing agreement with Disney® and partnership with the Honest Co, we have quickly become a household brand in this massive industry. In 2014, we received numerous offers on NBC's Shark Tank, starting with Damon John and followed by Lori Grenier and Robert Herjevec who offered a $1M buyout.

107% projected year over year growth, and profitable!

NBC's Shark Tank thrust us in the spotlight, and we have been able to capitalize on it ever since:

  • Over $3.3M in lifetime sales
  • On track to double last years sales with over $400k in profit
  • Over 686k customers from all over the world
  • 75% of customers come back and buy another SoapSox

Not to mention some incredible retail parters like Amazon, Walmart, QVC, and The Honest Company

Following our Shark Tank success in 2016, we signed a Disney® licensing agreement and secured distribution to QVC®, Buy Buy Baby, Target and 3,000 specialty stores through our exclusive US distribution agreement with Ginsey Home Solutions.  Quickly, we expanded distribution partners to Amazon and Walmart, dramatically widening our market and in 2018, we formed a partnership with the Honest Company to bundle SoapSox® with bath soaps.

And it's not just "The Sharks" who love us

With have an average rating of 4.2 stars on Amazon and a majority 5 star rating, 75% of customers come back and buy another Soapsox after their purchase. But it's really our customers who help us realize we are more than on to something...

Washcloths that kids love, and parents appreciate even more

SoapSox®, which at times we affectionately call "fun"ctional plush toys, are unique. The adorable, eye-catching designs are coupled with a technology that is distinct, yet simple and engaging for kids. The toys have thoughtful details like heart-shaped pupils and subtle smiles. Characters have memorable names like Taylor the Turtle or Harper the Hippo and come equipped with stories to engage with children's imagination. Our characters actually float in the water like the animal would itself.  SoapSox® are unlike any other washcloth you have ever purchased.

$4.9B+ in the "Plush", baby care and toddler products alone

SoapSox® products uniquely straddle two major industries in the global and US Market: Toys and Baby Care. U.S. consumers spent a record $4.98 billion on Plush, Baby/Toddler/Preschool, and Baby Care products in 2018. According to Toy Association’s 2019 Trend Spotting, infusing popular licensed properties in all types of innovative products  has helped licensing make up nearly 30 percent of all U.S. toy sales. We are universal. Our customers are the 39.9 million parents and 69.9 million grandparents buying gifts for 19.9 million children ages 0-4 in the U.S. Our current market adoption of SoapSox® aligns with what the data suggests in regards to growth opportunities. 


Sources: Forbes, NPD, License Global

Licensing allows us to continue to scale with exciting new products

With patented products, we are able to scale this company to a number of new industries and brands. Because of our myriad partnerships, we are able to create SoapSox® versions of the most popular branded characters in the market today. Soon through our licensing partnership with Ginsey Home Solutions, we are planning to introducing Sesame Street, Paw Patrol, and more of your favorite characters. 

Paw Patrol: The $300M TV juggernaut

We are excited to announce that in February 2020, Walmart will begin selling custom Paw Patrol SoapSox. One of the most popular kids show in the world, it is responsible for over $300M in annual toy sales alone (source).

Satisfying the global demand for baby care products, already in 10+ countries

With established partnerships like Nordstrom, BuyBuy Baby, Target, Walmart, Amazon, and QVC, we have already begun expanding internationally into ten different countries. These sales exist domestically in both brick and mortar locations as well as a booming online presence. This is particularly significant in the large grandparent market who tend to spend 3.5 times more online than they would in a store. Our licensed characters have helped secure sales -- in children brand loyalty begins as early as age 2, and by age 3, American children make specific requests for brand-name products. By age 4, children are ready to make their own (parent-financed) purchases. 

Patents and partnerships allow us to continue innovating

Unlike any competitor in the market, SoapSox® is positioned to cross several categories in the toy industry including infant/toddler/preschool toys, plush, bath. We set ourselves apart through our innovation. We boast a wide array and ever-expanding list of licensed characters with patented sound technology and quality construction. Our patented "feeding" feature engages kids and the anti-microbial material and ability to machine wash is a joy to parents. We are utility patented in the USA, Canada, and EU, design patented and trademarked in China. On top of all of that, we sell SoapSox® at an extremely affordable price point, starting at just $9.99.

Dino Sounders: Bringing washcloths to life.

We have washable speaker technology that allows our characters to emit sounds. Imagine dinosaurs roaring, cars revving, and tug boat horns blaring during your kid's bath time adventures. We also have many new characters in development with recognizable and friendly faces that will excite children all over the world.

We're just two dads making a splash

After witnessing a distraught child who refused to bathe, Ray and his staff noticed that the child wouldn’t part with his plush toy. It was in that moment that Ray had an aha moment. He modified the plush toy to hold soap and the child never had a problem with bath time again. Seeing the relief and joy across the child’s face was an unforgettable moment for Ray and his staff. When he discovered that there wasn’t a product like it on the market, he started SoapSox®. Through friends, Ray met Creative Director Alvin Uy and over the next two years, they developed SoapSox®. After a successful Kickstarter Campaign in 2013, SoapSox® was introduced to the world.

SoapSox® is more than a washcloth...

We think SoapSox® is a smart investment not only because of the unique competitive advantages, growing retail presence, exciting partnerships, or the substantial growth opportunity, but also because of our mission to create a safe space for kids. Since SoapSox® was created in the halls of a facility that helped protect children, we've committed ourselves to this cause and aim to provide greater support to organizations that help to provide safe places for children. Our ultimate goal is to establish SoapSox® as an industry leader, while advancing our agenda to remove the statute of limitations on crimes against children nationally. Join us and together let's see the waves that we can make. 

In the Press

72 Amazing PEOPLE Discounts for Kids and Babies
August 13, 2017

With the ability to choose water-friendly animals like hippos, whales and turtles, kids can take these adorable plush pals by SoapSox from bathtime to playtime.

Write the Title of the Article Here
October 6, 2014

Most entrepreneurs left Shark Tank empty handed during the second episode of season six, including a pair of founders who turned down $1 million just six months after launching their product.

SoapSox(R) Makes a Big Splash With Powerhouse Disney Baby at the North American International Toy Fair
February 5, 2016

SoapSox® is excited to announce its partnership with Disney Baby at the 2016 North American International Toy Fair in New York on February 13th-16th, 2016.

The Best ‘Shark Tank’ Products For Kids
March 22, 2018

For every entrepreneur on Shark Tank whose $1 million idea is a cat-renting service, there is truly innovative products that makes parenting easier.

SoapSox on Shark Tank
October 3, 2014

SoapSox pitch the Sharks on ABC's hit show Shark Tank.

Child Worker at Hillsides Finds Solution to Bath Time Problem for Parents
October 2, 2014

Working with children who had experienced trauma, Ray Phillips found that the most difficult time of the day was bath time. As a program director who worked with vulnerable children and youth for 16 years at Hillsides, a premier provider of behavioral healthcare, Phillips took matters into his own h

SoapSox(R) Makes a Big Splash With Powerhouse Disney Baby at the North American International Toy Fair
February 5, 2016

SoapSox® is excited to announce its partnership with Disney Baby at the 2016 North American International Toy Fair in New York on February 13th-16th, 2016.

Offering Summary


Company

:

Phillips Entertainment Group Inc.

Corporate Address

:

1480 Colorado Blvd, Los Angeles, CA 90041

Offering Minimum

:

$9,997.50

Offering Maximum

:

$106,996.50

Minimum Investment Amount

(per investor)

:

$240.25











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

1,290

Maximum Number of Shares Offered

:

13,806

Price per Share

:

$7.75

Pre-Money Valuation

:

$6,200,000.00











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Perks* and Investment Bonuses

Early Bird

First 7 days - 10% bonus shares

Next 14 days - 5% bonus shares

Volume

$500+ (VIP Owners - 10% lifetime discount on purchases online + 2 SoapSox)

$1,000+ (Above + 20% lifetime discount on purchases online + SoapSox Exclusive Owner Gift set + 5% bonus shares)

$3,000+ (Above + 25% lifetime discount on purchases online + new product releases annually + 5%

$5,000+ (All of the above + 30% lifetime discount on purchases online + 3 person gifting program + 10% bonus shares)

$20,000+ (Above + 20% bonus shares + design and naming of new character)

*All perks occur after the offering is completed.

The 10% Bonus for StartEngine Shareholders

Phillips Entertainment Group Inc. will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 10 shares of common stock at $7.75 / share, you will receive 11 Common Stock shares, meaning you'll own 11 shares for $77.50. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.  

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

Irregular Use of Proceeds

Example - The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$859,283.00 USD
$940,818.00 USD
Cash And Cash Equivalents
$44,312.00 USD
$6,107.00 USD
Accounts Receivable
$170,040.00 USD
$37,740.00 USD
Short Term Debt
$401,851.00 USD
$233,221.00 USD
Long Term Debt
$1,183,542.00 USD
$1,072,530.00 USD
Revenues And Sales
$759,911.00 USD
$405,687.00 USD
Costs Of Goods Sold
$405,933.00 USD
$125,151.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$248.00 USD
$106,309.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Funds Disbursement

4 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, SoapSox has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in SoapSox be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Increased Third Quarter sales and distribution.

5 days ago

SoapSox continues to increase its domestic distribution by nearly 3,000 additional retail doors combined (and more pending). Currently, we are working to expand our retail base to double the current size and are well on our way. 

Some of our most recent accomplishments include:

  • Increased domestic retail sales by $186,000 dollars in the last quarter.
  • Expanded domestic retail partnerships to include Burlington, Associated Foods, SpartanNash, and dozens of new specialty retailers.

With increased orders now coming in for the holiday season from retail partners H.E.B. Walmart, Target, BuyBuy Baby, Amazon, and hundreds of specialty retailers across the country, now is a good time to invest. With limited shares available, and new partnerships and opportunities pending, this is likely the last opportunity to invest at $7.25 per share. If you have friends, family members, or business associates that may be interested in investing, please forward the link below. 

https://www.startengine.com/soapsox

If you have already invested we will be sending you an investor SoapSox gift set before the holidays as a thank you! 

Already at our minimum funding goal & expanding to two products in Walmart!

16 days ago

We are happy to share that we have already reached our minimum funding goal!!!! A big thank you to those who have invested and a gentle nudge to those considering.

We are even more excited to share that Walmart has released their preliminary 2020 matrix and SoapSox will be bringing in Paw Patrol SoapSox, as well as SoapSox Juniors. These new products have a preliminary store placement between 2,350 - 4,500 stores. The final store count is pending, however we have requested to be placed in 4000+ stores for both items. 

We are excited about our future and look forward to you being a part of our growing company.

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