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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>As filed with the
Securities and Exchange Commission on June 15, 2020</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0in"><B>Registration No. 333-
_______</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549<BR>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>FORM S-1<BR>
REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 14pt"><B>CHICKEN
SOUP FOR THE SOUL ENTERTAINMENT INC.</B></FONT><B><BR>
</B><I>(Exact name of registrant as specified in its charter)</I></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; width: 32%; border-bottom: black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 2%; text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 32%; border-bottom: black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>7819</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 2%; text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 32%; border-bottom: black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>81- 2560811</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>(State or other jurisdiction of</I></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>(Primary Standard Industrial</I></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>(I.R.S. Employer</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>incorporation or organization)</I></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Classification Code Number)</I></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Identification Number)</I></FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>132 E. Putnam Avenue,
Floor 2W</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>Cos
Cob, CT 06807<BR>
(855) 398-0443<BR>
</B><I>(Address, including zip code, and telephone number, including area code, of registrant&rsquo;s principal executive offices)<BR>&nbsp;</I></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>William J. Rouhana,
Jr., Chairman and Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Chicken Soup for the
Soul Entertainment Inc.<BR>
132 E. Putnam Avenue, Floor 2W</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Cos Cob, CT 06807<BR>
(855) 398-0443</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>(Name,
address, including zip code, and telephone number, including area code, of agent for service)<BR></I>&nbsp;</FONT></P>

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    <TD COLSPAN="3" STYLE="text-align: center; font-size: 10pt; text-indent: 0in"><B>Copies to:</B></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 34%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>David Alan Miller,
        Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Brian L. Ross, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Melissa M. Curvino,
        Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Graubard Miller</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>The Chrysler Building</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>405 Lexington Avenue</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>New York, New York
        10174</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Telephone: (212) 818-8800</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Facsimile: (212) 818-8881</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 33%; text-align: center; font-size: 10pt; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Brad L. Shiffman, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Blank Rome LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>1271 Avenue of the
        Americas</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>New York, New York
        10020</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Telephone: (212) 885-5000</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Facsimile: (212) 885-5001</B></P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Approximate date of commencement of proposed
sale to the public: <B>As soon as practicable after the effective date of this registration statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933 check the following box. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If this Form is filed
to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
<FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If this Form is a
post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company
or an emerging growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller
reporting company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; width: 51%; padding-bottom: 6pt; text-indent: 0.5in">Large accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 6pt; text-indent: 0.5in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 48%; padding-bottom: 6pt; text-indent: 0.5in">Accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 6pt; text-indent: 0.5in">Non-accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 6pt; text-indent: 0.5in">Smaller reporting company <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 6pt; text-indent: 0.5in"></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 6pt; text-indent: 0.5in">Emerging growth company <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">If an emerging growth company, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>CALCULATION OF REGISTRATION
FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: left; white-space: nowrap; font-size: 10pt; font-weight: bold">Title of each class of <BR> securities to be registered (1)</TD><TD STYLE="border-top: Black 1.5pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">Proposed maximum<BR>
 aggregate <BR> offering price (1)(2)</TD><TD STYLE="border-top: Black 1.5pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="border-top: Black 1.5pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">Amount of <BR>
registration fee</TD><TD STYLE="border-top: Black 1.5pt solid; text-align: center; white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 74%; font-size: 10pt; text-align: left">[%] Notes due 2025</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 10%; font-size: 10pt; text-align: right">28,750,000</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 10%; font-size: 10pt; text-align: right">3,731.75</TD><TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-left: 0.125in; white-space: nowrap; font-size: 10pt">Total</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: right">3,731.75</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933,
as amended.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>Includes up to $3,750,000 in aggregate principal amount of additional notes which may be issued upon the exercise of a 30-day
option granted to the underwriters to cover overallotments, if any.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; color: red; border: Black 1pt solid"><B>The
information in this prospectus is not complete and may be changed. We may not sell these securities or until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities
and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</B></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="font-weight: bold; vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 33%; color: red; text-align: center"><B>Preliminary Prospectus</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; width: 1%; color: red"><B>&nbsp;</B></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 33%; color: red; text-align: center"><B>Subject to Completion</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; width: 1%; color: red"><B>&nbsp;</B></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; color: red; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 30%; color: red; text-align: center"><B>Dated June 15<FONT STYLE="font-size: 10pt; color: red">,
                                                                                                                           2020</FONT></B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; color: red; text-align: center"><B>&nbsp;</B></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2022585-2_s1img01.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>$25,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>[*]% Notes due 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are offering $25.0 million in aggregate principal amount
of [*]% notes due 2025, which we refer to as the &ldquo;Notes.&rdquo; The Notes will mature on [*], 2025. We will pay interest
on the Notes on March 30, June 30, September 30 and December 30 each year, beginning on September 30, 2020. We may redeem the Notes
in whole or in part at any time, or from time to time on or after [*], 2022, at the redemption price of par plus accrued interest,
as discussed under the caption &ldquo;<I>Description of the Notes&thinsp;&mdash;&thinsp;Optional Redemption</I>&rdquo; in this
prospectus. The Notes will be issued in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be issued under and subject
to the terms of an indenture, a copy of which has been filed as an exhibit to the registration statement to which this prospectus
is a part. The Notes will be our direct unsecured obligations and rank <I>pari passu</I> to all of our currently outstanding unsecured
unsubordinated indebtedness. We will have the ability to issue additional debt securities with terms different from the Notes without
the consent of the holders of the Notes. If we issue additional debt securities, these additional debt securities could rank higher
in priority of payment or have a lien or other security interest greater than that accorded to the holders of the Notes. Because
the Notes will not be secured by any of our assets, they will be effectively subordinated to all our existing and future secured
indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the
value of the assets securing such indebtedness. The repayment of the Notes will not be guaranteed. In any liquidation, dissolution,
bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness may assert rights against
the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be
used to pay other creditors, including the holders of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to list the Notes on the Nasdaq
Global Market under the trading symbol &ldquo;[*]&rdquo; and we expect trading to commence within 30 days of the original issue
date, however we cannot guarantee that the Notes will be approved for listing on the Nasdaq Global Market or any market. The Notes
are expected to trade &ldquo;flat.&rdquo; This means that purchasers will not pay, and sellers will not receive, any accrued and
unpaid interest on the Notes that is not included in the trading price. Currently, there is no public market for the Notes and
there can be no assurance that one will develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>We are an &ldquo;emerging growth company&rdquo;
as defined in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting
requirements.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Investing in the Notes involves significant
risks. Please read &ldquo;<I>Risk Factors</I>&rdquo; on page 11 of this prospectus and in the documents incorporated by reference
into this prospectus. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved the Notes or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should read this prospectus and any
supplements and amendments thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Per Note</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid">Total<SUP>(1)(2)</SUP></P></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt">Public offering price&#9;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">25.000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">25,000,000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Underwriting discount&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.250</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,250,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Proceeds, before expenses, to us<SUP>(2)</SUP>&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">23.750</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">23,750,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>Ladenburg Thalmann, as representative of the underwriters, may exercise an option to purchase up to an additional $3,750,000
aggregate principal amount of Notes offered hereby, within 30 days of the date of this prospectus. If this option is exercised
in full, the total public offering price will be $28,750,000, the total underwriting discount paid by us will be $1,437,500, and
total proceeds to us, before expenses, will be approximately $27,312,500.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>Total expenses of the offering payable by us, excluding underwriting discounts and commissions, are estimated to be $350,000.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">THE NOTES ARE NOT DEPOSITS OR OTHER OBLIGATIONS
OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Delivery of the Notes in book-entry form
only through The Depository Trust Company will be made on or about [*], 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; width: 40%; font: italic 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lead
    Bookrunner</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ladenburg
    Thalmann</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: italic 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus
    dated [*], 2020</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">TABLE OF CONTENTS&#8203;&#8203;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 93%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: center; width: 7%"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_001"><FONT STYLE="font-size: 10pt">PROSPECTUS SUMMARY</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_001">1</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_002"><FONT STYLE="font-size: 10pt">SPECIFIC TERMS OF THE NOTES AND THE OFFERING</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_002">6</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_003"><FONT STYLE="font-size: 10pt">RISK FACTORS</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_003">11</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_004"><FONT STYLE="font-size: 10pt">USE OF PROCEEDS</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_004">25</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_005"><FONT STYLE="font-size: 10pt">CAPITALIZATION</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_005">26</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_006"><FONT STYLE="font-size: 10pt">DESCRIPTION OF THE NOTES</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_006">27</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_007"><FONT STYLE="font-size: 10pt">CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_007">37</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_008"><FONT STYLE="font-size: 10pt">UNDERWRITING</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_008">40</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_009"><FONT STYLE="font-size: 10pt">LEGAL MATTERS</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_009">43</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_010"><FONT STYLE="font-size: 10pt">EXPERTS</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_010">43</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_012"><FONT STYLE="font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION BY REFERENCE</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_012">43</A></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">ABOUT THIS PROSPECTUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus is
part of a registration statement on Form S-1 (the &ldquo;Registration Statement&rdquo;) that we have filed with the Securities
and Exchange Commission (the &ldquo;SEC&rdquo;). This prospectus provides you with a general description of the securities we may
offer. You should read this prospectus together with the additional information described under the heading &ldquo;<I>Where You
Can Find More Information; Information Incorporated by Reference</I>&rdquo; beginning on page 43 of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should rely only on the information
contained or incorporated by reference in this prospectus. We have not authorized anyone to provide you with different information
and, if provided, such information or representations must not be relied upon as having been authorized by us. This prospectus
shall not constitute an offer to sell or a solicitation of an offer to buy offered securities in any jurisdiction in which it is
unlawful for such person to make such an offering or solicitation. This prospectus does not contain all of the information included
in the registration statement. For a more complete understanding of the offering of the securities, you should refer to the registration
statement, including its exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You should not assume
that the information appearing in this prospectus is accurate as of any date other than the date on the front cover of this prospectus.
You should not assume that the information contained in any documents incorporated by reference herein is accurate as of any date
other than the respective dates of those documents. Our business, financial condition, results of operations, and prospects may
have changed since that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should carefully read this entire prospectus,
including the information included and referred to under &ldquo;<I>Risk Factors</I>&rdquo; below, the information incorporated
by reference in this prospectus, and the financial statements and the other information incorporated by reference in this prospectus,
before making an investment decision. You should also read and consider the information in the documents to which we have referred
you in the section of this prospectus entitled &ldquo;<I>Where You Can Find More Information; Incorporation by Reference</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus contains summaries of certain
provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information.
All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein
have been or will be filed as exhibits to the registration statement of which this prospectus is a part or as exhibits to documents
incorporated by reference herein, and you may obtain copies of those documents as described below under the headings &ldquo;<I>Where
You Can Find More Information; Incorporation by Reference</I>.&rdquo; We note that the representations, warranties and covenants
made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein were made solely
for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties
to such agreement, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations,
warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants
should not be relied on as accurately representing the current state of our affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The industry and market data and other statistical
information, if any, contained in this prospectus and in the documents we incorporate by reference are based on our own estimates,
independent publications, government publications, reports by market research firms or other published independent sources, and,
in each case, are believed by us to be reasonable estimates. Although we believe these sources are reliable, we have not independently
verified the information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTAIN CORPORATE INFORMATION AND DEFINITIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our company, Chicken Soup for the Soul Entertainment,
Inc., is referred to in this prospectus as &ldquo;CSSE,&rdquo; the &ldquo;Company,&rdquo; or &ldquo;we&rdquo; or similar pronouns.
References to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;CSS Productions&rdquo; means Chicken Soup for the Soul Productions, LLC, our immediate parent;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;CSS&rdquo; means Chicken Soup for the Soul, LLC, our intermediate parent company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;CSS Holdings&rdquo; means Chicken Soup for the Soul Holdings, the parent company of CSS and our ultimate parent company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Screen Media&rdquo; means Screen Media Ventures, LLC, a wholly owned subsidiary of CSSE;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;A Plus&rdquo; means A Sharp Inc. (d/b/a A Plus), a wholly owned subsidiary of CSSE;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Pivotshare&rdquo; means Pivotshare, Inc., a wholly owned subsidiary of CSSE.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Crackle Plus&rdquo; means Crackle Plus, LLC, a company formed by CSSE and CPE Holdings, Inc. (an affiliate of Sony Pictures
Television Inc.); and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Landmark Studio Group&rdquo; means Landmark Studio Group LLC, a majority owned subsidiary of CSSE.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We and our subsidiaries
and affiliates have proprietary rights to the trademarks and trade names used herein, including, among others, Chicken Soup for
the Soul&reg;, Crackle&reg;, Popcornflix.com&reg;, Popcornflix Kids&reg;, Truli&reg;, and FrightPix&reg;. Solely as a matter of
convenience, trademarks and trade names referred to herein may or may not be accompanied with the marks of &ldquo;TM&rdquo; or
 &ldquo;&reg;&rdquo;, however, the absence of such marks is not intended to indicate that the Company or its affiliates or subsidiaries
will not assert, to the fullest extent possible under applicable law, their respective rights to such trademarks and trade names.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NOTE ON FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The statements contained
in this prospectus and in the documents incorporated by reference in this prospectus that are not purely historical are forward-looking
statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions
or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations
of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words &ldquo;anticipates,&rdquo;
 &ldquo;believes,&rdquo; &ldquo;continues,&rdquo; &ldquo;could,&rdquo; &ldquo;estimates,&rdquo; &ldquo;expects,&rdquo; &ldquo;intends,&rdquo;
 &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;plans,&rdquo; &ldquo;possible,&rdquo; &ldquo;potential,&rdquo; &ldquo;predicts,&rdquo;
 &ldquo;projects,&rdquo; &ldquo;should,&rdquo; &ldquo;would&rdquo; and similar expressions may identify forward-looking statements,
but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this prospectus
and in the documents incorporated by reference in this prospectus may include, for example, statements about:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our limited operating history;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our financial performance, including our ability to generate revenue;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the outbreak of the novel coronavirus (&ldquo;COVID-19&rdquo;), including the measures to reduce
its spread, and the impact on the economy and demand for our services, which may precipitate or exacerbate other risks and uncertainties&nbsp;our
financial performance, including our ability to generate revenue;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">potential effects of a challenging economy, for example, on the demand for our advertising and
marketing services, on our clients&rsquo; financial condition and on our business or financial condition;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the ability of our content offerings to achieve market acceptance;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the impact of increased competition;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our success in retaining or recruiting, or changes required in, our officers, key employees or
directors;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our potential ability to obtain additional financing when and if needed;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to protect our intellectual property;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to complete strategic acquisitions, including joint ventures and co-production arrangements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to manage growth and integrate acquired operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">uninterrupted service by the third-party service providers we rely on for the distribution of our
content and delivery of ad impressions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the potential liquidity and trading of our securities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">downward revisions to, or withdrawals of, our credit ratings by third-party rating agencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">regulatory or operational risks;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our estimates regarding expenses, future revenue, capital requirements and needs for additional
financing; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the time during which we will be an Emerging Growth Company (&ldquo;EGC&rdquo;) under the Jumpstart
Our Business Startups Act of 2012, or JOBS Act.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The
forward-looking statements contained in this prospectus and in the documents incorporated by reference in this prospectus are
based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no
assurance that future developments will be those that have been anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, those risk factors incorporated by reference or described in the section
titled &ldquo;<I>Risk Factors</I>.&rdquo; Should one or more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking
statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under applicable securities laws.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid">

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_001"></A>PROSPECTUS SUMMARY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The information below is only a summary
of more detailed information included elsewhere or incorporated by reference in this prospectus. This summary may not contain all
the information that is important to you or that you should consider before making a decision to invest in the Notes. Please read
this entire prospectus, including the risk factors, as well as the information incorporated by reference in this prospectus, carefully.
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Chicken Soup for the
Soul Entertainment Inc. operates streaming video-on-demand networks (&ldquo;VOD&rdquo;). The Company owns a majority stake in Crackle
Plus, a company formed with an affiliate of Sony Pictures Television Inc., which owns and operates a variety of ad-supported and
subscription-based VOD networks including Crackle&reg;, Popcornflix, Popcornflix Kids&reg;, Truli&reg;, Pivotshare, Espa&ntilde;olflix
and FrightPix&reg;. The Company also acquires and distributes video content through Screen Media and produces long and short-form
original content through subsidiaries and outside partnerships. The content acquired or produced by the Company is sometimes used
exclusively on our networks and is generally also sold to others with the goal of providing our networks access to original and
exclusive advertising-supported online video-on-demand (&ldquo;AVOD&rdquo;) content at a lower cost and to generate additional
revenue and operating cash flow for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our majority-owned
Crackle Plus subsidiary was formed in partnership with Sony Pictures Television Inc. in May 2019. Crackle Plus is one of the largest,
independent AVOD network groups in the United States, with viewers streaming an average of approximately 30 million programs per
month. The popular network, Crackle&reg;, is the largest Crackle Plus network and a top performer on the industry-leading Roku
platform. Our VOD networks deliver popular and original new content covering a wide range of themes, including family, children
and faith, as well as proven genres, such as horror and comedy.&nbsp;&nbsp;We are differentiated among other VOD network operators
by our ability to generate original content cost-effectively and by our access to more than 78,000 hours of programming.&nbsp;&nbsp;Our
Screen Media subsidiary has one of the largest independently&nbsp;owned television and film libraries in the industry and provides
content to the Crackle Plus networks and third-party networks. Our VOD networks also feature original content produced through
our subsidiaries, Landmark Studio Group and A Plus. Our exclusive, perpetual, sublicensable and worldwide license, to create and
distribute video content under the Chicken Soup for the Soul&reg; brand (the &ldquo;Brand&rdquo;) also allows us to create new
Brand-focused AVOD channels, which we expect to do in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe CSSE is
the only independent AVOD network operator with the proven capability to create and distribute original programming and access
to an extensive amount of valuable company-owned and third-party library content.&nbsp;&nbsp;We believe this differentiation is
important at a time of a major shift in consumer viewing habits, as the growth in both availability and quality of high-speed broadband
enables consumers to consume video content at any time on any device.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">According to industry
projections, the global market for AVOD network revenue is expected to increase at a compound annual growth rate of 21% between
2018 and 2024, reaching $56 billion by the end of the period.&nbsp;&nbsp;At the same time, advertising spending on linear television
networks is expected to decline as more viewers transition from pay television subscriptions to online video viewing.&nbsp;&nbsp;We
believe AVOD networks will grow rapidly as consumers seek affordable programming alternatives to multiple subscription video-on-demand
(&ldquo;SVOD&rdquo;) offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In this environment,
our strategy is to build a leading VOD network featuring a range of mass-appeal and thematic programming options.&nbsp;&nbsp;We
are executing on this strategy in three ways:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><B>Increasing content.</B>&nbsp;Our &ldquo;originals and exclusives&rdquo; focus, supported by
our distribution and production business, is designed to distinguish our network brands among viewers.&nbsp;&nbsp;We are able to
add to our existing broad base of content without the significant capital outlay of a traditional television or film studio by
producing new originals at low cost through creative partnerships, such as our award-winning 2019 series <I>Going from Broke</I>.
Through Screen Media, we are also acquiring the rights to additional exclusive content. Finally, we are&nbsp;expanding our production
capacity through partnerships, the formation of our majority owned subsidiary Landmark Studio Group and acquiring additional content
libraries, such as our recent acquisition of the Foresight Unlimited film library.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="vertical-align: top; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><B>Growing and retaining audience while adding new networks.</B>&nbsp;&nbsp;Our goal is to utilize
our increasing, exclusive access to quality programming to grow and retain viewers on our existing networks.&nbsp;&nbsp;As we grow
our content libraries, we are also continuously evaluating opportunities to create new thematic networks that feature certain genres
and other types of programming that can deliver more targeted advertising opportunities to marketers such as a Chicken Soup for
the Soul network for families.&nbsp;&nbsp;Finally, we are also actively evaluating opportunities to acquire additional AVOD networks
that can accelerate our path to scale.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&bull;&nbsp;</TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><B>Building our advertising sales capability.</B>&nbsp;&nbsp;As
    we grow our stable of networks, we are investing in integration of advertising platform technology stacks and the growth of
    our sales force.&nbsp;&nbsp;As our advertising sales capability matures, we believe we will be positioned to increase both
    overall advertising sales and ad insertion rates.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Business Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a media company operating Crackle Plus, our AVOD and
SVOD network groups, supported by our distribution and production capabilities. Our goal is to grow our network platform organically
and through consolidation to establish a leading AVOD business positioned to capture ad revenue as that revenue increasingly moves
from linear TV to online video.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our two main areas
of operation are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Online Networks.</B>&nbsp;We
distribute and exhibit VOD content directly to consumers across all digital platforms, such as connected TVs, smartphones, tablets,
gaming consoles and the web through our owned and operated AVOD Crackle Plus networks. We also distribute our own and third-party
owned content to consumers across various digital platforms through our SVOD network, Pivotshare. We generate advertising revenues
primarily by serving video advertisements to our streaming viewers on our AVOD networks and subscription revenues from customers
on our SVOD network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our acquisition of
Screen Media in 2017 marked our entry into the direct-to-consumer online VOD market through Popcornflix, which has an extensive
footprint with apps that have been downloaded more than 27 million times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Popcornflix is one
of the largest AVOD services. Under the Popcornflix brand, we operate a series of direct-to consumer advertising supported channels.
As a &ldquo;free-to-consumer&rdquo; digital streaming channel, Popcornflix is an extremely popular online video platform that can
be found on the web, iPhones and iPads, Android products, Roku, Xbox, Amazon Fire, Apple TV, Chromecast and Samsung and Panasonic
internet connected televisions, among others. Popcornflix is currently available in 61 countries, including the United States,
United Kingdom, Canada, Australia, Germany, France, and Singapore, with additional territories to be added.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In October 2018, we
completed the acquisition of the assets of Truli Media Corp., which operates a nascent global family-friendly and faith-based online
video channel (&ldquo;Truli&rdquo;). Truli&rsquo;s content fits strategically in our thematic network plans and includes film,
television, music videos, sports, comedy, and educational material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In May 2019, we launched
a new streaming video subsidiary known as Crackle Plus, through which we operate VOD networks including, Crackle and Popcornflix.
Viewers are able to&nbsp;watch premium video content, such as films and TV shows on our networks. The networks are accessible through
various internet connected digital devices such as mobile, tablet, smart TV and console. The networks primarily earn revenue from
advertisements placed on the platform through direct and reseller channels. Our entry into subscription-based VOD was initiated
by our acquisition of the Pivotshare VOD platform in August 2018. All of our VOD operations are currently in our Crackle Plus subsidiary.&nbsp;&nbsp;As
a result, Crackle Plus, is one of the largest AVOD companies in the United States as well as a targeted SVOD network provider.&nbsp;&nbsp;Within
Crackle Plus we have been primarily focused on growing our AVOD networks and may turn more attention to our SVOD opportunities
in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Television and Film
Distribution and Production.</B>&nbsp;We distribute movies and television series worldwide, through Screen Media, to consumers
through license agreements across all media, including theatrical, home video, pay-per-view, free, cable, pay television, VOD,
mobile and new digital media platforms worldwide. We own the copyright or long-term distribution rights to over 1,000 television
series and feature films, representing one of the largest independently owned libraries of filmed entertainment in the world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have distribution
licensing agreements with numerous VOD services across all major platforms, such as cable and satellite VOD and Internet VOD, which
includes TVOD for rentals or purchases of films, AVOD for free-to-viewer streaming of films supported by advertisements and SVOD
for unlimited access to films for a monthly fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our cable and satellite
VOD distribution agreements include those with DirecTV, Cablevision (Altice USA), Verizon and In Demand (owned by Comcast, Charter
and Time Warner Cable-Spectrum). Our Internet VOD distribution agreements include agreements with Amazon, iTunes, Samsung, YouTube,
Hulu, Xbox, Netflix, Sony, and Vudu, among others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have expanded our
international distribution capabilities in connection with&nbsp;the acquisition of the Foresight library.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Screen Media&rsquo;s
distribution capabilities across all media give us the ability to monetize various rights to our produced and co-produced television
series and films directly, including our content that will be produced through Landmark Studio Group. The cost savings from Screen
Media&rsquo;s distribution capabilities enhance our revenue and profits from our produced or co-produced content. Furthermore,
Screen Media supports the programming and content needs of our AVOD networks. The ability to monetize film and TV rights through
Screen Media gives us the ability to retain exclusive AVOD rights for some of our acquired or produced films or television series
on a cost advantaged basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Historically, we have
produced content in two main ways. We work with sponsors and use highly regarded independent producers to develop and produce our
television and short-form video content, including Brand-related content. We also derive revenue from our subsidiary, A Plus, which
develops and distributes high-quality, empathetic short-form videos to millions of people worldwide. A Plus enhances our ability
to distribute short form versions of our video productions thereby meeting commitments to sponsors and providing us with content
developed and distributed by A Plus that is complementary to the Brand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of launching
Crackle Plus we decided to change our approach to content production, focusing primarily on co-production partnerships in order
to build our AVOD networks, through Crackle Plus, and our worldwide distribution capabilities through Screen Media. By focusing
this way, we believe that we will be able to grow our business more rapidly by entering into production agreements with a variety
of production partners. In October 2019, we launched Landmark Studio Group, our first production co-venture subsidiary. Landmark
Studio Group is a fully integrated entertainment company focused on ownership, development, and production of quality entertainment
franchises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Landmark Studio Group
develops, produces, distributes and owns all the intellectual property (IP) it creates, building a valuable library. The studio
is independent, with the ability to sell its content to any network or platform, while also developing and producing original content
for Crackle Plus. Landmark Studio Group controls all worldwide rights and distributes those rights exclusively through Screen Media.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We plan to enter into
other similar co-production arrangements going forward. We will only occasionally produce programming internally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are in a highly
competitive business.&nbsp;&nbsp;The market for streaming entertainment is rapidly changing. We face competition from companies
within the entertainment business and from alternative forms of leisure entertainment, such as travel, sporting events, outdoor
recreation, video games, the internet and other cultural and computer-related activities. We compete for viewers and programming
with much larger companies which have significant resources and brand recognition, including dominant video on demand providers
such as&nbsp;Netflix, HBO Max (including HBO Go), Hulu, Amazon Prime Video, Disney Plus, Apple TV, Fubo TV, Sling TV,&nbsp;and
major film and television studios.&nbsp; We also compete with numerous independent motion picture and television distribution and
production companies, television networks, pay television systems and online media platforms for viewers, subscribers, and the
services of performing artists, producers and other creative and technical personnel and production financing, all of which are
essential to the success of our businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, our video
content competes for media outlet and audience acceptance with video content produced and distributed by other companies. As a
result, the success of any of our video content is dependent not only on the quality and acceptance of a particular production,
but also on the quality and acceptance of other competing video content available in the marketplace at or near the same time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Given such competition,
and our stage of development, we emphasize a lower cost structure, risk mitigation, reliance on financial partnerships and innovative
financial strategies. We rely on our flexibility and agility as well as the entrepreneurial spirit of our employees, partners and
affiliates, in order to provide creative, desirable video content.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are party to a
License Agreement with CSS (&ldquo;CSS License Agreement&rdquo;) through which we have been granted the perpetual, exclusive,
worldwide license by CSS to produce and distribute video content using the Brand and related content, such as stories
published in the Chicken Soup for the Soul books. Chicken Soup for the Soul and related names are trademarks owned by CSS. We
have the proprietary rights (including copyrights) in all Company-produced content. As a result of the acquisitions of Screen
Media, Pivotshare, Crackle, and other smaller libraries and companies, we now own copyrights or global long-term distribution
rights to approximately <FONT STYLE="font-size: 10pt">78,000 hours of content.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We rely on a combination
of copyright, trademark, trade secret laws, confidentiality procedures, contractual provisions and other similar measures to protect
our proprietary information and intellectual property rights. Our ability to protect and enforce our intellectual property rights
is subject to certain risks and from time to time we encounter disputes over rights and obligations concerning intellectual property,
which are described more fully in the section titled &ldquo;<I>Risk Factors</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of June 15, 2020,
we had 98 direct employees. The services of certain personnel, including our chairman and chief executive officer, vice chairman
and chief strategy officer, our senior brand advisor and director, and chief financial officer, among others, are provided to us
under a management services agreement between the Company and CSS. We also utilize many consultants in the ordinary course of our
business and hire additional personnel on a project-by-project basis. We believe that our employee and labor relations are good,
and we are committed to inclusion and strict policies and procedures to maintain a safe work environment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Implications of Being an Emerging Growth
Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are an &ldquo;emerging
growth company,&rdquo; as defined in the Jumpstart Our Business Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;). As long as we
are an emerging growth company, we are eligible to take advantage of certain exemptions from various reporting requirements that
are applicable to other public companies that are not emerging growth companies. These include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Not being required to comply with the auditor attestation requirements in the assessment of our
internal control over financial reporting;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Not being required to comply with any requirement that may be adopted by the Public Company Accounting
Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors&rsquo; report providing additional information
about the audit and the financial statements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Reduced disclosure obligations regarding executive compensation; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Exemptions from the requirements of holding a nonbinding advisory vote on executive compensation
and stockholder approval of any golden parachute payments not previously approved.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may remain an &ldquo;emerging
growth company&rdquo; until as late as December&nbsp;31, 2022, the fiscal year-end following the fifth anniversary of the completion
of our initial public offering, though we may cease to be an emerging growth company earlier under certain circumstances, including
if (a)&nbsp;we have more than $1.07&nbsp;billion in annual gross revenue in any fiscal year, (b)&nbsp;the market value of our common
stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal
quarter, or (c)&nbsp;we issue more than $1 billion of non-convertible debt over a three-year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Summary Risk Factors </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">An investment in our securities involves
various risks that you should consider carefully before investing in us. Many of these risks are discussed in this prospectus under
the heading &ldquo;<I>Risk Factors</I>&rdquo; beginning on page 11. If any of these risks occur, our business, financial condition,
liquidity, results of operations, prospects and ability to make interest payments to our noteholders and distributions to our shareholders
could be materially and adversely affected. In that case, the trading price of our securities could decline, and you may lose a
portion or your entire investment. These risks include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Notes will be unsecured and therefore are effectively subordinated to any secured indebtedness we have incurred or may
incur in the future.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Notes will be structurally subordinated to the indebtedness and other liabilities of our subsidiaries.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The indenture under which the Notes are issued contains limited protection for holders of the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An increase in market interest rates could result in a decrease in the value of the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<DIV STYLE="padding: 10pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>There is no existing trading market for the Notes, and, even if Nasdaq approves the listing of the Notes, an active trading
market for the Notes may not develop, which could limit your ability to sell the Notes and/or the market price of the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We may choose to redeem the Notes when prevailing interest rates are relatively low.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>If we default on our obligations to pay our other indebtedness, we may not be able to make payments on the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We will use a substantial portion of the proceeds of this offering to repay our existing indebtedness under our credit facility
with Patriot Bank, N.A., may use a portion to pay certain obligations to redeem equity owned by CPE Holdings, Inc. (an affiliate
of Sony Pictures Television Inc.) in Crackle Plus, and will have broad discretion with respect to the use of the remaining proceeds
of this offering.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We are not obligated to contribute to a sinking fund to retire the Notes and the Notes are not guaranteed by a third-party.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We have and may continue to incur losses in the operation of our business.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Difficult conditions in the economy generally and our industry specifically resulting from the COVID-19 pandemic may cause
interruptions in our operations, a slow-down in the production or acquisition of new content, and changes in demand for our products
and services.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Competition could have a material adverse effect on our business, financial condition and results of operations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Interruptions in our ability to provide our video on demand products and our service to our customers could damage our reputation,
which could have a material adverse effect on us.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The occurrence of cyber-incidents, or a deficiency in our cybersecurity or in those of any of our third party service providers,
could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential
information or damage to our business relationships or reputation, all of which could negatively impact our business and results
of operations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The loss of key personnel, including our executive officers, could have a material adverse effect on us.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Our inability to recruit or retain qualified personnel, or maintain access to key third-party service providers and software
developers, could have a material adverse effect on us.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The market price and trading volume of our securities may be volatile.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Corporate Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a Delaware corporation
formed on May 4, 2016. CSS Productions, our predecessor and immediate parent company, was formed in December 2014 by CSS, and initiated
operations in January 2015. We were formed to create a discrete entity focused on video content opportunities using the Brand.
In May 2016, pursuant to the terms of the contribution agreement among CSS, CSS Productions and the Company, all video content
assets owned by CSS, CSS Productions and their CSS subsidiaries were transferred to the Company in consideration for its issuance
to CSS Productions of 8,600,568 shares of the Company&rsquo;s Class B Common Stock (the &ldquo;Class B Common Stock&rdquo;). Thereafter,
CSS Productions&rsquo; operating activities ceased, and the Company continued the business operations of producing and distributing
the video content.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="background-color: white">Our
address is 132 East Putnam Avenue, Floor 2W, Cos Cob, CT 06807. Our telephone number is (855) 398-0443, and our website address
is https://www.cssentertainment.com. The information contained on, or that can be accessed through, our website is not part of
this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_002"></A>SPECIFIC TERMS OF THE NOTES AND THE
OFFERING</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; width: 43%; padding-bottom: 3pt">Issuer</TD>
    <TD STYLE="padding-top: 3pt; width: 57%; padding-bottom: 3pt">Chicken Soup for the Soul Entertainment, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Title of the Securities</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">[*]% Notes due 2025</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Initial Aggregate Principal Amount Being Offered</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">$25.0 million </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Option to Purchase Additional Notes</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">The underwriters may also purchase from us up to an additional $3.75 million aggregate principal amount of Notes within 30 days of the date of this prospectus (the &ldquo;Option Notes&rdquo;).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Public Offering Price</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">100% of the aggregate principal amount of the Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Principal Payable at Maturity</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">The principal amount of each Note will be payable on its stated maturity
    date at the corporate trust office of the Trustee, Paying Agent, Registrar and Transfer Agent for the Notes or at such other
    office in New York, New York as we may designate.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Type of Note</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Fixed rate note.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Listing</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">There is no public market for the Notes. We intend to list the Notes on the Nasdaq Global Market under the trading symbol &ldquo;[*]&rdquo; and expect trading to commence within 30 days of the Original Issue Date. We cannot assure you, however, that the Notes will be approved for listing on the Nasdaq Global Market or any market.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Rating of the Notes</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">BBB from Egan-Jones Ratings Company. An explanation of the significance
of ratings may be obtained from the rating agency. Generally, rating agencies base their ratings on such material and information,
and such of their own investigations, studies and assumptions, as they deem appropriate. The rating of the Notes should be evaluated
independently from similar ratings of other securities. A credit rating of a security is paid for by the issuer and is not a recommendation
to buy, sell or hold securities and may be subject to review, revision, suspension, reduction or withdrawal at any time by the
assigning rating agency. See &ldquo;<I>Risk Factors &mdash; A downgrade, suspension or withdrawal of the credit rating assigned
by a rating agency to us or the Notes, if any, could cause the liquidity or market value of the Notes to decline significantly</I>.&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Interest Rate</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">[*]% per year</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Day Count Basis</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">360-day year of twelve 30-day months</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Original Issue Date</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">[*], 2020 (except in the case of the Option Notes, in which case the Original Issue Date will be the date the Option Notes are actually issued).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Stated Maturity Date</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">[*], 2025</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Date Interest Starts to Accrue</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Original Issue Date</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Interest Payment Dates</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Every March 30, June 30, September 30, and December 30, beginning September 30, 2020. If an interest payment date falls on a non-business day, the applicable interest payment will be made on the next business day and no additional interest will accrue as a result of such delayed payment.</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; width: 43%; padding-bottom: 3pt">Interest Periods</TD>
    <TD STYLE="padding-top: 3pt; width: 57%; padding-bottom: 3pt">The initial interest period will be the period from and including the Original Issue Date to, but excluding, the initial interest payment date, and the subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest payment date or the stated maturity date, as the case may be.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; width: 43%">Regular Record Dates for Interest</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; width: 57%">March 15, June 15, September 15, and December 15, beginning September 15, 2020.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Specified Currency</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">U.S. Dollars</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Place of Payment</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">New York City</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Ranking of Notes</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The Notes will be our direct unsecured obligations
        and will rank:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Pari passu with, which means equal to, all of our currently
outstanding unsecured unsubordinated indebtedness issued by us. The Notes will also rank pari passu with our general liabilities,
which consist of trade and other payables, including any outstanding dividends payable on our 9.75% Series A Cumulative Redeemable
Perpetual Preferred Stock (&ldquo;Series A Preferred Stock&rdquo;), interest and debt fees payable, vendor payables, film acquisition
and programming obligations, and accrued participation costs and other expenses such as auditor fees, legal fees, director fees,
etc. In total, these general liabilities were approximately $59.2 million as of March 31, 2020. We will have the ability to issue
from time to time other debt securities with terms different from the Notes, including terms providing for seniority of such new
debt securities, without the consent of the holders of the Notes, as further described below under <I>&ldquo;&mdash;Further Issuances.</I>&rdquo;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Senior to any of our future indebtedness that expressly provides it is subordinated to the Notes. We currently do not have
        outstanding debt that is subordinated to the Notes and do not currently intend to issue indebtedness that expressly provides that
        it is subordinated to the Notes. Therefore, the Notes, as currently contemplated, will not be senior to any indebtedness or obligations.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is initially
unsecured to which we subsequently grant a security interest), to the extent of the value of the assets securing such indebtedness,
as well as any secured indebtedness that we may incur in the future, such as a new loan facility, or any new indebtedness that
is initially unsecured to which we subsequently grant a security interest, to the extent of the value of the assets securing such
indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future
secured indebtedness may assert rights against the assets pledged to secure that indebtedness in order to receive full payment
of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes, and any assets
of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Notes.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries and
financing vehicles, including the unsecured $5,000,000 revolving credit facility between Landmark Studio Group, as borrower, and
Cole Investments VII LLC, as lender, since the Notes are obligations exclusively of Chicken Soup for the Soul Entertainment, Inc.,
and not of any of our subsidiaries. Structural subordination means that creditors of a parent entity are subordinate to creditors
of a subsidiary entity with respect to the subsidiary&rsquo;s assets.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 26.05pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Except as described under the captions &ldquo;<I>Description
        of the Notes&#8201;&mdash;&#8201;Events of Default</I>&rdquo; and &ldquo;<I>&mdash;&#8201;Merger or Consolidation</I>&rdquo; in
        this prospectus, the indenture does not contain any provisions that give you protection in the event we issue a large amount of
        debt or we are acquired by another entity.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P></TD></TR>
</TABLE>

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<P STYLE="margin: 0; font-size: 10pt"><FONT STYLE="font-size: 10pt"></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; width: 43%">Denominations</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; width: 57%">We will issue the Notes in denominations of&#8201; $25.00 and integral multiples of&#8201; $25.00 in excess thereof.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Business Day</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City are authorized or required by law or executive order to close.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Optional Redemptions</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The Notes may be redeemed in whole or in part at any time or
from time to time at our option on or after [*], 2022 upon not less than 30 days nor more than 60 days written notice by mail prior
to the date fixed for redemption thereof. The redemption price shall include (i) 100% of the outstanding principal amount of the
Notes called for redemption on the date fixed for redemption plus (ii) all accrued and unpaid interest payments otherwise payable
thereon through the date fixed for redemption. In addition, in the event of a merger or sale of the Company or substantially all
of its assets or a majority of the Company&rsquo;s equity (on an after issued basis) in one or a series of related transactions,
we will have the right to redeem the Notes prior to [*], 2022 in connection with the consummation of such transactions on the foregoing
terms.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">You may be prevented from exchanging or transferring
        the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice will provide
        that, upon surrender of such Note, you will receive, without charge, a new Note or Notes of authorized denominations representing
        the principal amount of your remaining unredeemed Notes.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">If we redeem only some of the Notes, the Trustee
        will determine the method for selection of the particular Notes to be redeemed, in accordance with the indenture, and in accordance
        with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default in payment
        of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for redemption.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; width: 43%; padding-bottom: 3pt">Sinking Fund</TD>
    <TD STYLE="padding-top: 3pt; width: 57%; padding-bottom: 3pt">The Notes will not be subject to any sinking fund (<I>i.e.,</I> no amounts will be set aside by us to ensure repayment of the Notes at maturity). As a result, our ability to repay the Notes at maturity will depend on our financial condition on the date that we are required to repay the Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">No Repayment at Option of Holders</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Holders will not have the option to have the Notes repaid prior to the stated maturity date.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Defeasance</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">The Notes are subject to defeasance by us. &ldquo;Defeasance&rdquo; means that, by depositing with a trustee an amount of cash and/or government securities sufficient to pay all principal and interest, if any, on the Notes when due and satisfying any additional conditions required under the indenture relating to the Notes, we will be deemed to have been discharged from our obligations under the Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Covenant Defeasance</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">The Notes are subject to covenant defeasance by us. In the event of a &ldquo;covenant defeasance,&rdquo; upon depositing such funds and satisfying similar conditions discussed below we would be released from the restrictive covenants under the indenture relating to the Notes. The consequences to the holders of the Notes is that, while they no longer benefit from the restrictive covenants under the indenture, and while the Notes may not be accelerated for any reason, the holders of Notes nonetheless could look to us for repayment of the Notes if there were a shortfall in the funds deposited with the trustee or the trustee is prevented from making the payment.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Form of Notes</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">The Notes will be represented by global securities that will be deposited and registered in the name of The Depository Trust Company (&ldquo;DTC&rdquo;) or its nominee. This means that, except in limited circumstances, you will not receive certificates for the Notes. Beneficial interests in the Notes will be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC. Investors may elect to hold interests in the Notes through either DTC, if they are a participant, or indirectly through organizations that are participants in DTC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Trustee, Paying Agent, Registrar, and Transfer Agent</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">U.S. Bank National Association</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Limitation on Restricted Payments</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Upon (i) the failure to pay interest on any
        Note when such interest is due and payable or (ii) the occurrence of an Event of Default and while any such interest payment remains
        unpaid or such Event of Default is ongoing, the indenture prohibits us from taking the following actions:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Declaring or paying any dividend, making any distribution on or in respect of our capital stock or making any similar payment
        to the direct or indirect holders of our capital stock in their capacity as such;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Purchasing, repurchasing, redeeming, retiring or otherwise acquiring for value any of our capital stock held by any person
        (other than by us or a subsidiary of ours) or any capital stock of a subsidiary held by any of our affiliates;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Purchasing for value, prior to scheduled maturity, any scheduled repayment of any subordinated obligations; or</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>Making any investment in any person.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; width: 43%; padding-bottom: 3pt">Events of Default</TD>
    <TD STYLE="padding-top: 3pt; width: 57%; padding-bottom: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">You will have rights if an Event of Default
        occurs with respect to the Notes.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The term &ldquo;Event of Default&rdquo; in
        respect of the Notes means any of the following:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>We do not pay the principal (or premium, if any) of any Note when due.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>We do not pay interest on any Note when due, and such default is not cured within 30 days.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>We remain in breach of any other covenant with respect to the Notes for 60 days after we receive a written notice of default
        stating we are in breach. The notice must be sent by either the Trustee or holders of at least 25.0% of the principal amount of
        the Notes.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT>We file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and in the case of certain
        orders or decrees entered against us under any bankruptcy law, such order or decree remains undischarged or unstayed for a period
        of 60 days.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; text-indent: -0.25in">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Further Issuances</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">We have the ability to issue from time to time other debt securities with terms different from the Notes and, without consent of the holders thereof, as well as the ability to reopen the Notes and issue additional Notes. If we issue additional debt securities, these additional debt securities could rank higher in priority of payment or have a lien or other security interest greater than that accorded to the holders of the Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Global Clearance and Settlement Procedures</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Interests in the Notes will trade in DTC&rsquo;s Same Day Funds Settlement System, and any permitted secondary market trading activity in such Notes will, therefore, be required by DTC to be settled in immediately available funds. None of the Trustee, the Paying Agent or us will have any responsibility for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures governing their operations.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Risk Factors</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P></TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Investing in the Notes involves risks. You should carefully consider the risks described under &ldquo;<I>Risk Factors</I>&rdquo; in this prospectus, our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q as well as the other information contained or incorporated by reference in this prospectus before deciding to invest in the Notes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">Use of Proceeds</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt">We intend to use a substantial portion of the net proceeds from
the sale of the Notes offered under this prospectus to repay the approximately $13.9 million of outstanding principal and interest
owed by us under our commercial loan facility with Patriot Bank, N.A. and will have broad discretion with respect to the use of
the remaining proceeds of this offering, which may include using of some or all of such remaining proceeds to pay certain obligations
to Sony Pictures Television Inc. or its affiliates that may otherwise be payable in shares of our Series A Preferred Stock.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_003"></A>RISK FACTORS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><I>Any investment in
our securities involves a high degree of risk. Potential investors are urged to read and consider the risks and uncertainties relating
to an investment in the Company as set forth in this prospectus and in the documents we incorporate by reference herein. Potential
investors also should read and consider the risks and uncertainties discussed under the item &ldquo;Risk Factors&rdquo; in our
<A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020003353/csse-20191231x10k.htm" STYLE="-sec-extract: exhibit">Annual Report on Form 10-K for the year ended December 31, 2019,</A> our <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020006592/csse-20200331x10q.htm" STYLE="-sec-extract: exhibit">Quarterly Report on Form 10-Q for the quarter ended March 31, 2020,</A> and our subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K, all of which are incorporated herein
by reference, and may be amended, supplemented, or superseded from time to time by other reports we file with the SEC in the future.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business
and results of operations. If any of these risks actually occur, our business, financial condition, or results of operations could
be seriously harmed. In that event, the market price for our securities could decline and you may lose all or part of your investment.
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Risks Relating to COVID-19</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>Our business, results of operations,
and financial condition has been and may continue to be impacted by the recent coronavirus (COVID-19) outbreak.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The global spread of
the coronavirus (COVID-19) and the various attempts to contain it have created significant volatility, uncertainty and economic
disruption. In response to government mandates, health care advisories and otherwise responding to employee and vendor concerns,
we have altered certain aspects of our operations. Our workforce has had to spend a significant amount of time working from home,
which impacts productivity and our ability to exercise proper internal controls over our operations. All of our productions are
paused, as are productions of third-parties who supply us with content. Other operating partners have similarly had their operations
altered or temporarily suspended, including those partners that we use for our Crackle Plus operations as well as development,
production and post-production of content. To the extent the resulting economic disruption continues for an extended period or
worsens, we could see some vendors go out of business, resulting in supply constraints and increased costs or delays to our operations.
Such pauses may cause us temporarily to have less new content available on our services in subsequent quarters, which could negatively
impact consumer demand for and user retention to our service. Temporary operation pauses or permanent shutdowns in production could
result in content asset impairments or other charges and will change the timing and amount of cash outflows associated with operating
activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The full extent to
which the COVID-19 pandemic and the various responses to it continue to impact our business, operations and financial results will
depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic;
governmental, business and individuals&rsquo; actions that have been and continue to be taken in response to the pandemic; the
availability and cost to access the capital markets; the effect on our customers and customer demand for our services; disruptions
or restrictions on our employees&rsquo; ability to work and travel; interruptions or restrictions related to the provision of streaming
services over the internet, including impacts on content delivery networks and streaming quality; and any stoppages, disruptions
or increased costs associated with our development, production, post-production, marketing and distribution of original programming.
Furthermore, given increased government expenditures associated with their COVID-19 response, we could see increased government
obligations which could negatively impact our results of operations. If we need to further access the capital markets, there can
be no assurance that financing may be available on attractive terms, if at all. We will continue to actively monitor the issues
raised by the COVID-19 pandemic and may take further actions that alter our business operations, including content production,
as may be required by federal, state, local or foreign authorities, or that we determine are in the best interests of our employees,
customers, partners and stockholders. It is not clear what the potential effects any such alterations or modifications may have
on our business, including the effects on our customers, suppliers or vendors, or on our financial results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The COVID-19
pandemic has also led to an increase in our Crackle Plus users relative to our quarterly forecast and historic trends. These
results, as well as those of other metrics such as revenues, operating margins, net income and other financial and operating
data, may not be indicative of results for future periods. Our increase in user additions may reflect the acceleration of
growth that we would have seen in subsequent periods, and user growth may slow or reverse, due to slower acquisition and/or
higher cancellations, as government and other restrictions are relaxed. In addition to the potential direct impacts to our
business, the global economy is likely to be significantly weakened as a result of the actions taken in response to COVID-19.
To the extent that such a weakened global economy impacts advertisers&rsquo; ability or willingness to pay for advertisements
on our service or vendors&rsquo; ability to provide services to us, we could see our business and results of operations
negatively impacted. In addition, a weakened global economy could impact our ability to collect our outstanding accounts
receivable which would have a negative impact on our results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Risks Related to Our Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have incurred operating losses in the past, may incur
operating losses in the future and may never achieve or maintain profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2019 and March 31, 2020, we had an accumulated
deficit of approximately $32.7 million and $44.1 million, respectively, and for the year ended December 31, 2019 and the three
months ended March 31, 2019 and 2020, we had a net loss of approximately $3.4 million and $11.4 million, respectively. We expect
our operating expenses to increase in the future as we continue to expand our operations. If our revenue and gross profit do not
grow at a greater rate than our operating expenses, we will not be able to achieve and maintain profitability. Our indebtedness
could limit our flexibility in planning for, or reacting to, changes in the market in which we compete. Although we believe we
have adequate sources of liquidity to meet our anticipated requirements for working capital, debt service, capital expenditures
and cash dividend payments on our Series A Preferred Stock, there can be no assurance that our cash flow from operations will be
sufficient to service our debt, which may require us to borrow additional funds for that purpose, restructure or otherwise refinance
our debt. Additionally, we may encounter unforeseen operating or legal expenses, difficulties, complications, delays and other
factors that may result in losses in future periods. If our expenses exceed our revenue, we may never achieve or maintain profitability
and some or all aspects of our business operations may need to be modified or curtailed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not be able to generate sufficient cash to service
our debt and other obligations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to make payments on our debt,
including our Notes, and our other obligations will depend on our financial and operating performance, which is subject to prevailing
economic and competitive conditions and to certain financial, business and other factors beyond our control. We may be unable to
attain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest
on our debt, including the Notes, and other obligations, including the cash dividend payments on our Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we are unable to service our debt and
other obligations from cash flows, we may need to refinance or restructure all or a portion of such obligations prior to maturity.
Our ability to refinance or restructure our debt and other obligations will depend upon the condition of the capital markets and
our financial condition at such time. Any refinancing or restructuring could be at higher interest rates and may require us to
comply with more onerous covenants, which could further restrict our business operations. If our cash flows are insufficient to
service our debt and other obligations, we may not be able to refinance or restructure any of these obligations on commercially
reasonable terms or at all and any refinancing or restructuring could have a material adverse effect on our business, results of
operations, or financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If our cash flows are insufficient to fund
our debt and other obligations and we are unable to refinance or restructure these obligations, we may be forced to reduce or delay
investments or to sell material assets or operations to meet our debt and other obligations. We cannot assure you that we would
be able to implement any of these alternative measures on satisfactory terms or at all or that the proceeds from such alternatives
would be adequate to meet any debt or other obligations then due. If it becomes necessary to implement any of these alternative
measures, our business, results of operations, or financial condition could be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We do not have a long operating history on which to evaluate
our company.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our predecessor, CSS
Productions, was formed in December 2014 and we were formed in May 2016 to acquire CSS Productions&rsquo; assets in order to create
a discrete, focused entity to pursue video content opportunities using the Chicken Soup for the Soul brand. We focused our company
in the area of video on demand in 2017 and have a limited history in operating commercial video on demand offerings. A significant
portion of our video on demand operations assets was acquired by us from CPE Holdings, Inc in May 2019, and we have only a limited
history in controlling and operating such assets. We face all the risks faced by newer companies in the media industry, including
significant competition from existing and emerging media producers and distributors, many of which are significantly more established,
larger and better financed than our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not realize the advantages we expect from Crackle
Plus</I></B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In May 2019, we consummated
a contribution agreement with CPE Holdings, Inc. (&ldquo;CPEH&rdquo;), an affiliate of Sony Pictures Television Inc., pursuant
to which we and CPEH contributed certain assets relating to our respective VOD businesses to our newly formed majority owned subsidiary,
Crackle Plus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our quarterly and annual
operating results may fluctuate due to the costs and expenses of acquiring and managing the Crackle Plus business. We may require
additional debt or equity financing for the Crackle Plus business, resulting in additional leverage or dilution of ownership therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Additionally, CPEH
has certain protective voting rights in Crackle Plus. Certain actions require supermajority approval of the board of managers of
Crackle Plus, including the managers appointed by CPEH. As a result, our investment in Crackle Plus involves risks that are different
from the risks involved in our independent operations. These risks include the possibility that CPEH has economic or business interests
or goals that are or become inconsistent with our overall economic or business interests or goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The operating agreement
between us and CPEH provides CPEH the right to either convert its membership interests in Crackle Plus into common units of Crackle
Plus or put its membership interests in Crackle Plus to us at certain times and on the terms specified in the operating agreement.
If CPEH elects to convert its membership interest in Crackle Plus into common units of Crackle Plus, our ownership interest will
be reduced to a 51% interest. If CPEH exercises its put right, we may pay the purchase price for CPEH&rsquo;s membership interests
in cash or in shares of our Series A Preferred Stock, at our option. Subject to certain limitations, if CPEH has not exercised
its put or conversion right by the end of the exercise period, CPEH will be deemed to have automatically exercised the put right
on the last day of the exercise period. If we are required to purchase CPEH&rsquo;s membership interests, we may use a portion
of the proceeds of this offering to pay for such membership interests in cash, rather than issuing a significant number of shares
of our Series A Preferred Stock to CPEH.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>All of our tangible and intangible property is pledged
to secure existing indebtedness.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">All of our tangible
and intangible property, including accounts receivable and intellectual property, is pledged under a first priority security interest
to secure our repayment obligations under indebtedness owed to Patriot Bank, N.A. under our Commercial Loan, as described under
 &ldquo;<I>Management&rsquo;s Discussion and Analysis of Operating and Financial Condition &ndash; Liquidity and Capital Resources
- &ldquo;Commercial Loan</I>&rdquo; in our Quarterly Report on Form 10-Q for the three months ended March 31, 2020. We intend to
repay all obligations under this commercial loan facility using proceed from this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our efforts to attract and retain
VOD viewers are not successful, our business may be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our success depends
in part on attracting viewers, retaining them on our VOD service and ultimately monetizing our VOD services and content offerings.&nbsp;As
such, we are seeking to expand our viewer base and increase the number of hours that are streamed across our platforms to create
additional revenue opportunities. To attract and retain viewers, we need to be able to respond efficiently to changes in consumer
tastes and preferences and to offer our viewers access to the content they enjoy on terms that they accept. Effective monetization
may require us to continue to update the features and functionality of our VOD offerings for viewers and advertisers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our ability to attract
viewers will depend in part on our ability to effectively market our services, as well as provide a quality experience for selecting
and viewing TV series and movies. Furthermore, the relative service levels, content offerings, pricing and related features of
competitors as compared to our service will determine our ability to attract and retain viewers. Competitors include other streaming
entertainment providers, including those that provide AVOD and SVOD offerings, and other direct-to-consumer video distributors
and more broadly other sources of entertainment that our viewers could choose in their moments of free time. If consumers do not
perceive our service offerings to be of value, including if we introduce new or adjust existing features or service offerings,
or change the mix of content in a manner that is not favorably received by them, we may not be able to attract and retain consumers.
In addition, many of our consumers originate from word-of-mouth advertising from existing viewers. If we do not grow as expected,
we may not be able to adjust our expenditures or increase our revenues commensurate with the lowered growth rate such that our
margins, liquidity and results of operation may be adversely impacted. If we are unable to successfully compete with current and
new competitors in both retaining our existing viewers and attracting new viewers, our business may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Changes in competitive offerings
for entertainment video could adversely impact our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The market for
entertainment video is subject to rapid change. Through new and existing distribution channels, consumers have increasing
options to access entertainment video. The various economic models underlying these channels include subscription,
transactional, and ad-supported models. All of these have the potential to capture meaningful segments of the entertainment
video market. Traditional providers of entertainment video, including broadcasters and cable network operators, as well as
internet-based e-commerce or entertainment video providers are increasing their streaming video offerings. Several of these
competitors have long operating histories, large customer bases, strong brand recognition, exclusive rights to certain
content and significant financial, marketing and other resources. Competitors may secure better terms from content suppliers
and devote more resources to product development, technology, infrastructure, content acquisitions and marketing. New
entrants may enter the market or existing providers may adjust their services with unique offerings or approaches to
providing entertainment video. Our competitors also may enter into business combinations or alliances that strengthen their
competitive positions. If we are unable to successfully or profitably compete with current and new competitors, our business
may be adversely affected, and we may not be able to increase or maintain market share, revenues or profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0"><B><I>Our long-term results of operations are difficult to predict
and depend on the commercial success of our VOD platforms as well as successful monetization of our video content in other ways
and the continued strength of the Chicken Soup for the Soul brand.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Video streaming is
a rapidly evolving industry, making our business and prospects difficult to evaluate. The growth and profitability of this industry
and the level of demand and market acceptance for our VOD platforms and content offerings are subject to a high degree of uncertainty.
We believe that the continued growth of streaming as an entertainment alternative will depend on the availability and growth of
cost-effective broadband internet access, the quality of broadband content delivery, the quality and reliability of new devices
and technology, the cost for viewers relative to other sources of content, as well as the quality and breadth of content that is
delivered across streaming platforms. These technologies, products and content offerings continue to emerge and evolve. In addition,
many advertisers continue to devote a substantial portion of their advertising budgets to traditional advertising, such as linear
TV, radio and print. The future growth of our business depends on the growth of digital advertising, and on advertisers increasing
their spend on such advertising. We cannot be certain that they will do so. If advertisers do not perceive meaningful benefits
of digital advertising, the market may develop more slowly than we expect, which could adversely impact our operating results and
our ability to grow our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In addition, monetization
of content that we produce and acquire from sources other than our AVOD network is an essential element of our strategy.&nbsp;&nbsp;Our
ability in the long-term to obtain sponsorships, licensing arrangements, co-productions and tax credits and to distribute our original
programming and acquired video content will depend, in part, upon the commercial success of the content that we initially produce
and distribute and, in part, on the continued strength of the&nbsp;<I>Chicken Soup for the Soul</I>&nbsp;brand.&nbsp;&nbsp;We cannot
ensure that we will produce, acquire, and distribute successful content.&nbsp;&nbsp;The continued strength of the brand will be
affected in large part by the operations of CSS and its other business operations, none of which we control. CSS utilizes the brand
through its other subsidiaries for various commercial purposes, including the sale of books (including educational curriculum products),
pet foods and other consumer products. Negative publicity relating to CSS or its other subsidiaries or the brand, or any diminution
in the perception of the brand could have a material adverse effect on our business, financial condition, operating results, liquidity
and prospects. We cannot assure you that we will manage the production and distribution of all of our video content successfully,
that all or any portion of our video content will be met with critical acclaim or will be embraced by audiences on a one-time or
repeated basis, or that the strength of the&nbsp;<I>Chicken Soup for the Soul</I>&nbsp;brand will not diminish over time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be successful in our efforts
to further monetize our VOD services</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">Our AVOD platforms
generate revenue primarily from digital advertising and audience development campaigns that run across our streaming platform and
from content distribution services. Our ability to deliver more relevant advertisements to our viewers and to increase our platform&rsquo;s
value to advertisers and content publishers depends on the collection of user engagement data, which may be restricted or prevented
by a number of factors. Viewers may decide to opt out or restrict our ability to collect personal viewing data or to provide them
with more relevant advertisements.<FONT STYLE="color: #212529; background-color: white">&nbsp;&nbsp;W</FONT>hile we have experienced,
and expect to continue to experience, growth in our revenue from advertising, our efforts to monetize our streaming platform through
the distribution of AVOD content are still developing and our advertising revenue may not grow as we expect. This means of monetization
will require us to continue to attract advertising dollars to our streaming platform as well as deliver AVOD content that appeals
to viewers. Accordingly, there can be no assurance that we will be successful in monetizing our streaming platform through the
distribution of ad-supported content.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In addition, with the
recent spread of the coronavirus throughout the United States and the rest of the world, companies advertising plans and amounts
available for advertising may be significantly restricted or discontinued which could also impact our ability to monetize our AVOD
platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B><I>Our reliance on third parties for content, production
and distribution could limit our control over the quality of the finished video content.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We currently have limited
production capabilities and are reliant on relationships with third parties for much of these capabilities. Working with third
parties is an integral part of our strategy to produce video content on a cost-efficient basis, and our reliance on such third
parties could lessen the control we have over the projects. Should the third-party producers we rely upon not produce completed
projects to the standards we expect and desire, critical and audience acceptance of such projects could suffer, which could have
an adverse effect on our ability to produce and distribute future projects. In particular, due to the global spread of COVID-19,
and in response to government mandates and healthcare advisories, certain of our vendors and partners have had their operations
altered or temporarily suspended, including vendors that supply us with our streaming content and partners that we use for the
development and production of content. Any such production pauses could cause us to have less new content available on our service,
which could negatively impact consumer demand for our service, which may in turn adversely impact our advertising revenue. A limited
number of content publishers account for a significant portion of the hours streamed on our Crackle Plus and other streaming platforms.&nbsp;&nbsp;If,
for any reason, these publishers fail to provide us with content, whether due to the COVID-19 pandemic or otherwise, our streaming
hours, active viewers, and advertising revenue may be adversely affected, and our business may be harmed. Further, either during
the COVID-19 pandemic or after it subsides, we cannot be assured of entering into favorable agreements with third-party content
producers on economically favorable terms or on terms that provide us with satisfactory intellectual property rights in the completed
projects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An integral part of our strategy is to initially minimize
our production, content acquisition and distribution costs by utilizing funding sources provided by others, however, such sources
may not be readily available.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The production acquisition
and distribution of video content can require a significant amount of capital. As part of our strategy, we seek to fund the production,
content acquisition, and distribution of our video content through co-productions, tax credits, upfront fees from sponsors, licensors,
broadcasters, cable and satellite outlets and other producers and distributors, as well as through other initiatives. Such funding
from the aforementioned sources or other sources may not be available on attractive terms or at all, as and when we need such funding.
To the extent we are not able to secure agreements of this sort, we may need to curtail the amount of video content being produced
or acquired by us or use our operating or other funds to pay for such video content, which could have a material adverse effect
on our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Due to the effect of
the coronavirus, the interest and ability of sponsors to enter into and invest in co-production agreements may not be attractive
or considered at this time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As we grow, we may seek to fund and produce more of our
video content directly, subjecting us to significant additional risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our current strategy
of funding the production, acquisition, and distribution of our video content through the payment of upfront fees by third parties
may limit the backend return to us. If we should determine to use our own funds to produce, acquire, and distribute more of our
video content in order to capture greater backend returns, we would face significant additional risks, such as the need to internally
advance funds ahead of revenue generation and cost recoupment and the need to divert some of our resources and efforts away from
other operations. In order to reduce these risks, we may determine to raise additional equity or incur additional indebtedness.
In such event, our stockholders and our company will be subjected to the risks associated with issuing more equity or increasing
our debt obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If studios, content providers or other rights holders
are unable or refuse to license content or other rights upon terms acceptable to us, our business could be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our ability to provide
content depends on studios, content providers and other rights holders licensing rights to distribute such content and certain
related elements thereof, such as the public performance of music contained within the content we distribute. If studios, content
providers and other rights holders are not or are no longer willing or able to license us content upon terms acceptable to us,
our ability to provide content will be adversely affected and/or our costs could increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Certain conflicts of interest may arise between us and
our affiliated companies and we have waived certain rights with respect thereto.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our certificate of
incorporation includes a provision stating that we renounce any interest or expectancy in any business opportunities that are
presented to us or our officers, directors or stockholders or affiliates thereof, including but not limited to CSS Productions
and its affiliates (collectively, the &ldquo;CSS Companies&rdquo;), except as may be set forth in any written agreement between
us and any of the CSS Companies (such as the CSS License Agreement under which CSS has agreed that all video content operations
shall be conducted only through CSS Entertainment). This provision also states that, to the fullest extent permitted by Delaware
law, our officers, directors and employees shall not be liable to us or our stockholders for monetary damages for breach of any
fiduciary duty by reason of any of our activities or any activities of any of the CSS Companies. As a result of these provisions,
there may be conflicts of interest among us and our officers, directors, stockholders or their affiliates, including the CSS Companies,
relating to business opportunities, and we have waived our right to monetary damages in the event of any such conflict.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are required to make continuing payments to our affiliates,
which may reduce our cash flow and profits.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We are required to
make significant payments to our affiliates as described under &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&mdash;&nbsp;Affiliate Resources and Obligations&nbsp;&mdash;&nbsp;CSS Management Agreement&rdquo;,
 &ldquo;CSS License Agreement&rdquo;&nbsp;</I>and described under &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&mdash;&nbsp;Liquidity and Capital Resources&rdquo;</I> in our Quarterly Report on Form
10-Q for the three months ended March 31, 2020. Accordingly, in the aggregate, 10% of our net revenue will be paid to our affiliates
on a continuous basis and will not be otherwise available to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If a project we are producing incurs substantial budget
overruns, we may have to seek additional financing from outside sources to complete production or fund the overrun ourselves.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">If a production we
are funding incurs substantial budget overruns, we may have to seek additional financing from outside sources to complete production
or fund the overrun ourselves. We cannot be certain that any required financing will be available to us on commercially reasonable
terms or at all, or that we will be able to recoup the costs of overruns. Increased costs incurred with respect to a project may
result in the production not being ready for release at the intended time, which could cause a decline in the commercial performance
of the project. Budget overruns could also prevent a project from being completed or released at all and adversely affect our operating
results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are subject to risks associated with possible acquisitions,
business combinations, or joint ventures.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We are actively pursuing
discussions and activities with respect to possible acquisitions, sale of assets, business combinations, or joint ventures intended
to complement or expand our business, some of which may be significant transactions for us. We may not realize the anticipated
benefit from any of the transactions we pursue. Regardless of whether we consummate any such transaction, the negotiation of a
potential transaction could require us to incur significant costs and cause diversion of management&rsquo;s time and resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Integrating any business
that we acquire may be distracting to our management and disruptive to our business and may result in significant costs to us.
We could face several challenges in the consolidation and integration of information technology, accounting systems, personnel
and operations. Any such transaction could also result in impairment of goodwill and other intangibles, development write-offs
and other related expenses. Any of the foregoing could have a material adverse effect on our business, financial condition, operating
results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our operating results may fluctuate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our operating results
are dependent, in part, on management&rsquo;s estimates of revenue to be earned over the life of a project. We will regularly review
and revise our revenue estimates. This review may result in a change in the rate of amortization and/or a write-down of the video
content asset to its estimated realizable value. Results of operations in future years depend upon our amortization of our video
content costs. Periodic adjustments in amortization rates may significantly affect these results. Further, as many of our third-party
relationships will be on a project-by-project basis, the profits, if any, generated from various projects will fluctuate based
on the terms of the agreements between us and our third-party producers and distributors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Variations in our quarterly
and year-end operating results are difficult to predict and our income and cash flows may fluctuate significantly from period to
period, which may impact our board of directors&rsquo; willingness or legal ability to declare a monthly dividend. If our operating
results fall below the expectations of investors or securities analysts, the price of our Common Stock and our Series A preferred
stock could decline substantially. Specific factors that may cause fluctuations in our operating results include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">demand and pricing for our products and services;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">introduction of competing products;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our operating expenses which fluctuate due to growth of our business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">timing and popularity of new video content offerings and changes in viewing habits or the emergence
of new content distribution platforms;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">variable sales cycle and implementation periods for content and services; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the continuing effects of the COVID-19 pandemic and governmental responses thereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">As a result of the
foregoing and other factors, our results of operations may fluctuate significantly from period to period, and the results of any
one period may not be indicative of the results for any future period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Distributors&rsquo; failure to promote our video content
could adversely affect our revenue and could adversely affect our business results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We will not always
control the timing and way in which our licensed distributors distribute our video content offerings. However, their decisions
regarding the timing of release and promotional support are important in determining our success. Any decision by those distributors
not to distribute or promote our video content or to promote our competitors&rsquo; video content to a greater extent than they
promote our content could adversely affect our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are smaller and less diversified than many of our competitors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Many of the producers
and studios with which we compete are part of large diversified corporate groups with a variety of other operations, including
television networks, cable channels and other diversified companies such as Amazon, which can provide both the means of distributing
their products and stable sources of earnings that may allow them to better offset fluctuations in the financial performance of
their operations. In addition, the major studios have more resources with which to compete for ideas, storylines and scripts created
by third parties as well as for actors, and other personnel required for production. The resources of the major producers and studios
may also give them an advantage in acquiring other businesses or assets, including video content libraries, that we might also
be interested in acquiring.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We face risks from doing business
internationally.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">We intend to increase
the distribution of our video content outside the U.S. and thereby derive significant revenue in foreign jurisdictions. As a result,
our business is subject to certain risks inherent in international business, many of which are beyond our control. These risks
include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">laws and policies affecting trade, investment and taxes, including laws and policies relating to
the repatriation of funds and withholding taxes, and changes in these laws;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the Foreign Corrupt Practices Act and similar laws regulating interactions and dealings with foreign
government officials;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in local regulatory requirements, including restrictions on video content;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">differing cultural tastes and attitudes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">differing and more stringent user protection, data protection, privacy and other laws;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">differing degrees of protection for intellectual property;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">financial instability and increased market concentration of buyers in foreign television markets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the instability of foreign economies and governments;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">fluctuating foreign exchange rates;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the spread of communicable diseases in such jurisdictions, which may impact business in such jurisdictions;
and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">war and acts of terrorism.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Events or developments
related to these and other risks associated with international trade could adversely affect our revenue from non-U.S. sources,
which could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Protecting and defending against intellectual property
claims may have a material adverse effect on our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our ability to compete
depends, in part, upon successful protection of our intellectual property relating to our video content and the protection of the&nbsp;<I>Chicken
Soup for the Soul</I>&nbsp;brand. We protect proprietary and intellectual property rights to our productions through available
copyright and trademark laws and licensing and distribution arrangements with reputable international companies in specific territories
and media. Under the terms of the CSS License Agreement, CSS has the primary right to take actions to protect the Brand, and, if
it does not, and we reasonably deem any infringement thereof is materially harmful to our business, we may elect to seek action
to protect the Brand ourselves. Although in the former case, we would equitably share in any recovery, and in the latter case,
we would retain the entirety of any recovery, should CSS determine not to prosecute infringement of the Brand, we could be materially
harmed and could incur substantial cost in prosecuting an infringement of the&nbsp;<I>Chicken Soup for the Soul</I>&nbsp;brand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Others may assert intellectual property infringement claims
against us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">It is possible that
others may claim from time to time that our productions and production techniques misappropriate or infringe the intellectual property
rights of third parties with respect to their previously developed content, stories, characters and other entertainment or intellectual
property. Although CSS is obligated to indemnify us for claims related to our use of the&nbsp;<I>Chicken Soup for the Soul</I>&nbsp;brand
in accordance with the CSS License Agreement, we could face lawsuits with respect to claims relating thereto. Irrespective of the
validity or the successful assertion of any such claims, we could incur significant costs and diversion of resources in defending
against them, which could have a material adverse effect on our business, financial condition, operating results, liquidity and
prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our business involves risks of liability claims for video
content, which could adversely affect our results of operations and financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">As a producer and distributor
of video content, we may face potential liability for defamation, invasion of privacy, negligence and other claims based on the
nature and content of the materials distributed. These types of claims have been brought, sometimes successfully, against producers
and distributors of video content. Any imposition of liability that is not covered by insurance or is in excess of insurance coverage
could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Piracy of video content may harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Video content piracy
is extensive in many parts of the world, including South America, Asia, and certain Eastern European countries, and is made easier
by technological advances and the conversion of video content into digital formats. This trend facilitates the creation, transmission
and sharing of high-quality unauthorized copies of video content on DVDs, Blu-ray discs, from pay-per-view through set-top boxes
and other devices and through unlicensed broadcasts on free television and the internet. The proliferation of unauthorized copies
of our video content could have an adverse effect on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Any significant disruption in the computer systems of
third parties that we utilize in our operations could result in a loss or degradation of service and could adversely impact our
business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our reputation and
ability to attract, retain and serve our viewers is dependent upon the reliable performance of the computer systems of third parties
that we utilize in our operations. These systems may be subject to damage or interruption from earthquakes, adverse weather conditions,
other natural disasters, terrorist attacks, power loss, telecommunications failures, computer viruses, computer denial of service
attacks or other attempts to harm these systems. Interruptions in these systems or to the internet in general, could make our content
unavailable or impair our ability to deliver such content.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our online activities are subject to a variety of laws
and regulations relating to privacy, which, if violated, could subject us to an increased risk of litigation and regulatory actions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In addition to our
websites, we use third-party applications, websites, and social media platforms to promote our video content offerings and engage
consumers, as well as monitor and collect certain information about consumers. There are a variety of laws and regulations governing
individual privacy and the protection and use of information collected from such individuals, particularly in relation to an individual&rsquo;s
personally identifiable information. The United States is seeing the adoption of state-level laws governing individual privacy.
This includes the California Consumer Protection Act (&ldquo;CCPA&rdquo;). Many foreign countries have adopted similar laws governing
individual privacy, such as the recent adoption of the EU&rsquo;s General Data Protection Regulation (&ldquo;GDPR&rdquo;) and
some of which are more restrictive than similar United States laws. If our online activities were to violate any applicable current
or future laws and regulations that limit our ability to collect, transfer, and use data, we could be subject to litigation from
both private rights of action, class action lawsuits, and regulatory actions, including fines and other penalties. Internationally,
we may become subject to evolving, additional and/or more stringent legal obligations concerning our treatment of customer and
other personal information, such as laws regarding data localization and/or restrictions on data export. Failure to comply with
these obligations could subject us to liability, and to the extent that we need to alter our business model or practices to adapt
to these obligations, we could incur additional expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B><I>If government regulations relating to the internet or
other areas of our business change, we may need to alter the way we conduct our business or incur greater operating expenses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The adoption or modification
of laws or regulations relating to the internet or other areas of our business could limit or otherwise adversely affect the way
we currently conduct our business. In addition, the continued growth and development of the market for online commerce may lead
to more stringent consumer protection laws, which may impose additional burdens on us such as recent adoption of the European Union&rsquo;s
General Data Protection Regulation. If we are required to comply with new regulations or legislation or new interpretations of
existing regulations or legislation, this compliance could cause us to incur additional expenses or alter our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we experience rapid growth, we may not manage our growth
effectively, execute our business plan as proposed or adequately address competitive challenges.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We anticipate continuing
to grow our business and operations rapidly. Our growth strategy includes organic initiatives and acquisitions. Such growth could
place a significant strain on the management, administrative, operational and financial infrastructure we utilize, a portion of
which is made available to us by our affiliates under the Management Agreement between us and CSS (&ldquo;CSS Management Agreement&rdquo;).
Our long-term success will depend, in part, on our ability to manage this growth effectively, obtain the necessary support and
resources under the CSS Management Agreement and grow our own internal resources as required, including internal management and
staff personnel. To manage the expected growth of our operations and personnel, we also will need to increase our internal operational,
financial and management controls, and our reporting systems and procedures. Failure to effectively manage growth could result
in difficulty or delays in producing our video content, declines in overall project quality and increases in costs. Any of these
difficulties could adversely impact our business financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our exclusive license to use the Chicken Soup for the
Soul brand could be terminated in certain circumstances.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We do not own the Chicken
Soup for the Soul brand or any other Chicken Soup for the Soul-related assets (including books), other than those assets transferred
to us under the CSS Contribution Agreement. The Brand is licensed to us by CSS under the terms of the CSS License Agreement. CSS
controls the Brand, and the continued integrity and strength of the Chicken Soup for the Soul brand will depend in large part on
the efforts and businesses of CSS and how the brand is used, promoted and protected by CSS, which will be outside of the immediate
control of our company. Although the license granted to us under the CSS License Agreement is perpetual, it may be terminated by
CSS upon the cessation of our business, our bankruptcy, liquidation, or insolvency, or if we fail to pay any sums due or otherwise
fail to perform under the License Agreement within 30 days following delivery of a second written notice by CSS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be able to realize the
entire book value of goodwill and other intangible assets from the formation of Crackle Plus and other acquisitions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">As of December 31, 2019 and March 31, 2020, we had approximately
$21.4 million of goodwill and approximately $47.6 million and $42.4 million, respectively, of net intangible assets, primarily
related to the formation of Crackle Plus and other acquisitions. We assess goodwill and other intangible assets for impairment
at least annually and more frequently if certain events or circumstances warrant. If the book value of goodwill or other intangible
assets is impaired, any such impairment would be charged to earnings in the period of impairment. If we determine that goodwill
and other intangible assets are impaired in the future, it could have a material adverse effect on our business, financial condition
and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Claims against us relating to any acquisition or business
combination may necessitate our seeking claims against the seller for which the seller may not indemnify us or that may exceed
the seller&rsquo;s indemnification obligations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">There may be liabilities
assumed in any acquisition or business combination that we did not discover or that we underestimated in the course of performing
our due diligence. Although a seller generally may have indemnification obligations to us under an acquisition or merger agreement,
these obligations usually will be subject to financial limitations, such as general deductibles and maximum recovery amounts, as
well as time limitations. We cannot assure you that our right to indemnification from any seller will be enforceable, collectible
or sufficient in amount, scope or duration to fully offset the amount of any undiscovered or underestimated liabilities that we
may incur. Any such liabilities, individually or in the aggregate, could have a material adverse effect on our business, financial
condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0"><B><I>We may require and not be able to obtain additional funding
to meet increased capital needs after an acquisition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our ability to grow
through acquisitions, business combinations and joint ventures and our ability to fund our operating expenses after one or more
acquisitions may depend upon our ability to obtain funds through equity financing, debt financing (including credit facilities)
or the sale or syndication of some or all of our interests in certain projects or other assets or businesses. If we do not have
access to such financing arrangements, and if other funds do not become available on terms acceptable to us, there could be a material
adverse effect on our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our success depends on our management and relationships
with our affiliated companies.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our success depends
to a significant extent on the performance of our management personnel and key employees, including production and creative personnel,
made available to us through the CSS Management Agreement. The loss of the services of such persons or the resources supplied to
us by our affiliated companies could have a material adverse effect on our business, financial condition, operating results, liquidity
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>To be successful, we need to attract and retain qualified
personnel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Our success will depend
to a significant extent on our ability to identify, attract, hire, train and retain qualified professional, creative, technical
and managerial personnel. Competition for the caliber of talent required to produce and distribute our video content continues
to increase. We cannot assure you that we will be successful in identifying, attracting, hiring, training and retaining such personnel
in the future. If we were unable to hire, assimilate and retain qualified personnel in the future, such inability could have a
material adverse effect on our business, financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B><I>We are an &ldquo;emerging growth company&rdquo; under
the JOBS Act of 2012 and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will
make our Class A common stock less attractive to investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We are an &ldquo;emerging
growth company&rdquo;, as defined in the Jumpstart Our Business Startups Act of 2012 (&ldquo;JOBS Act&rdquo;), and we may take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not
 &ldquo;emerging growth companies&rdquo; including, but not limited to, not being required to comply with the auditor attestation
requirements of section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic
reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation
and shareholder approval of any golden parachute payments not previously approved. We cannot predict if investors will find our
Class A common stock less attractive because we may rely on these exemptions. If some investors find our Class A common stock less
attractive as a result, there may be a less active trading market for our Class A common stock and our stock price may be more
volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In addition, Section
107 of the JOBS Act also provides that an &ldquo;emerging growth company&rdquo; can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an
 &ldquo;emerging growth company&rdquo; can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised
accounting standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We will remain an &ldquo;emerging
growth company&rdquo; for up to five years, although we will lose that status sooner if our revenue exceeds $1.07 billion, if we
issue more than $1 billion in non-convertible debt in a three-year period, or if the market value of our common stock that is held
by non-affiliates exceeds $700 million as of June 30 of any year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our status as an &ldquo;emerging growth company&rdquo;
under the JOBS Act of 2012 may make it more difficult to raise capital as and when we need it.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Because of the exemptions
from various reporting requirements provided to us as an &ldquo;emerging growth company&rdquo; and because we will have an extended
transition period for complying with new or revised financial accounting standards, we may be less attractive to investors and
it may be difficult for us to raise additional capital as and when we need it. Investors may be unable to compare our business
with other companies in our industry if they believe that our financial accounting is not as transparent as other companies in
our industry. Any inability to raise additional capital as and when we need it, could have a material adverse effect on our business,
financial condition, operating results, liquidity and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Since our content is digitally stored and distributed
online, and we accept online payments for various subscription services, we face numerous cybersecurity risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We utilize information
technology systems, including third-party hosted servers and cloud-based servers, to host our digital content, as well as to keep
business, financial, and corporate records, communicate internally and externally, and operate other critical functions. If any
of our internal systems or the systems of our third-party providers are compromised due to computer virus, unauthorized access,
malware, and the like, then sensitive documents could be exposed or deleted, and our ability to conduct business could be impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Cyber incidents can
result from deliberate attacks or unintentional events. These incidents can include, but are not limited to, unauthorized access
to our systems, computer viruses or other malicious code, denial of service attacks, malware, ransomware, phishing, SQL injection
attacks, human error, or other events that result in security breaches or give rise to the manipulation or loss of sensitive information
or assets. Cyber incidents can be caused by various persons or groups, including disgruntled employees and vendors, activists,
organized crime groups, and state-sponsored and individual hackers. Cyber incidents can also be caused or aggravated by natural
events, such as earthquakes, floods, fires, power loss, and telecommunications failures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">To date, we have not
experienced any material losses relating to cyber-attacks, computer viruses, or other systems failures. Although we have taken
steps to protect the security of data maintained in our information systems, it is possible that our security measures will not
be able to prevent the systems&rsquo; improper functioning or the improper disclosure of personally identifiable information, such
as in the event of cyber-attacks. In addition to operational and business consequences, if our cybersecurity is breached, we could
be held liable to our customers or other parties in regulatory or other actions, and we may be exposed to reputation damages and
loss of trust and business. This could result in costly investigations and litigation, civil or criminal penalties, fines, and
negative publicity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Certain information
relating to our customers, including personally identifiable information and credit card numbers, is collected and maintained by
us, or by third parties that do business with us or facilitate our business activities. This information is maintained for a period
of time for various business purposes, including maintaining records of customer preferences to enhance our customer service and
for billing, marketing, and promotional purposes. We also maintain personally identifiable information about our employees. The
integrity and protection of our customer, employee and company data is critical to our business. Our customers and our employees
expect that we will adequately protect their personal information, and the regulations applicable to security and privacy are increasingly
demanding. Privacy regulation is an evolving area and compliance with applicable privacy regulations may increase our operating
costs or adversely impact our ability to service our customers and market our properties and services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>The occurrence of natural or man-made
disasters could result in declines in business that could adversely affect our financial condition, results of operations and cash
flows.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We are exposed to various risks arising out of natural disasters,
including earthquakes, hurricanes, fires, floods, landslides, tornadoes, typhoons, tsunamis, hailstorms, explosions, climate events
or weather patterns and pandemic health events (such as the recent pandemic spread of the novel corona virus known as COVID-19
virus, duration and full effects of which are still uncertain), as well as man-made disasters, including acts of terrorism, military
actions, cyber-terrorism, explosions and biological, chemical or radiological events. The continued threat of terrorism and ongoing
military actions may cause significant volatility in global financial markets, and a natural or man-made disaster could trigger
an economic downturn in the areas directly or indirectly affected by the disaster. These consequences could, among other things,
result in a decline in business. Disasters also could disrupt public and private infrastructure, including communications and financial
services, which could disrupt our normal business operations. A natural or man-made disaster also could disrupt the operations
of our partners and counterparties or result in increased prices for the products and services they provide to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our chairman and chief executive officer effectively controls
our company.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">We have two
classes of common stock&nbsp;&mdash;&nbsp;Class A common stock, each share of which entitles the holder thereof to one vote
on any matter submitted to our stockholders, and Class B common stock, each share of which entitles the holder thereof to ten
votes on any matter submitted to our stockholders. Our chairman and chief executive officer, William J. Rouhana, Jr., has
control over the vast majority of all the outstanding voting power as represented by our outstanding Class B and Class A
common stock and effectively controls CSS Holdings and CSS, which controls CSS Productions, and, in turn, our company.
Further, our bylaws provide that any member of our board may be removed with or without cause by the majority of our
outstanding voting power, thus Mr. Rouhana exerts significant control over our board. This concentration of ownership and
decision making may make it more difficult for other stockholders to effect substantial changes in our company and may also
have the effect of delaying, preventing or expediting, as the case may be, a change in control of our company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Risks Related to the
Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>The Notes will be unsecured and therefore
are effectively subordinated to any secured indebtedness we have incurred or may incur in the future. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will not be secured by any of
our assets. As a result, the Notes will be effectively subordinated to all of our existing and future secured indebtedness, such
as any new loan facility or other indebtedness to which we grant a security interest, to the extent of the value of the assets
securing such indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our
existing or future secured indebtedness may assert rights against the assets pledged to secure that indebtedness in order to receive
full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>The Notes will be structurally subordinated
to the existing and future indebtedness and other liabilities of our subsidiaries. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be obligations exclusively
of Chicken Soup for the Soul Entertainment, Inc., and not any of our subsidiaries. In addition, the Notes will not be guaranteed
by any third-party, whether an affiliate or unrelated to us. None of the assets of our subsidiaries will be directly available
to satisfy the claims of holders of the Notes. Except to the extent we are a creditor with recognized claims against our subsidiaries,
all claims of creditors of our subsidiaries will have priority over our equity interests in such entities (and therefore the claims
of our creditors, including holders of the Notes) with respect to the assets of such entities. Even if we are recognized as a creditor
of one or more of these entities, our claims would still be effectively subordinated to any security interests in the assets of
any such entity and to any indebtedness or other liabilities of any such entity senior to our claims. Consequently, the Notes will
be structurally subordinated to all indebtedness and other liabilities of any of our subsidiaries, including, for example, the
unsecured $5,000,000 revolving credit facility between Landmark Studio Group, as borrower, and Cole Investments VII LLC, as lender.
In addition, our subsidiaries and these entities may incur substantial indebtedness in the future, all of which would be structurally
senior to the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>The indenture under which the Notes
are issued contains limited protection for holders of the Notes. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The indenture under which the Notes are
issued offers limited protection to holders of the Notes. The terms of the indenture and the Notes do not restrict our ability
to engage in, or otherwise be a party to, a variety of corporate transactions, circumstances or events that could have a material
adverse impact on your investment in the Notes. In particular, except in limited circumstances, the terms of the indenture and
the Notes do not restrict our ability to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations
that would be equal or senior in right of payment to the Notes, (2) any indebtedness or other obligations that would be secured
and therefore rank effectively senior in right of payment to the Notes to the extent of the values of the assets securing such
debt, (3) indebtedness that we incur that is guaranteed by one or more of our subsidiaries and which therefore is structurally
senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior
to our equity interests in those entities and therefore rank structurally senior to the Notes with respect to the assets of these
entities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior
in right of payment to the Notes, including our Series A Preferred Stock or any subordinated indebtedness;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all
of our assets);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>enter into transactions with affiliates;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>create liens or enter into sale and leaseback transactions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>make investments; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>create restrictions on the payment of dividends or other amounts to us from our subsidiaries.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the indenture does not require
us to offer to purchase the Notes in connection with a change of control or any other event (but does afford us the right to redeem
the Notes prior to the prescribed redemption date upon the consummation of certain transactions).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Similarly, the terms of the indenture and
the Notes do not protect holders of the Notes in the event that we experience changes (including significant adverse changes) in
our financial condition, results of operations or credit ratings, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to recapitalize, incur additional
debt and take a number of other actions that are not limited by the terms of the Notes may have important consequences for you
as a holder of the Notes, including making it more difficult for us to satisfy our obligations with respect to the Notes or negatively
affecting the trading value of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other debt we issue or incur in the future
could contain more protections for its holders than the indenture and the Notes, including additional covenants and events of default.
For example, the indenture under which the Notes are issued does not contain cross-default provisions. The issuance or incurrence
of any indebtedness with incremental protections could affect the market for and trading levels and prices of the Notes. Additionally,
even if we issue indebtedness that ranks equally with the Notes, the holders of such indebtedness will be entitled to share ratably
with you any proceeds distributed in connection with any insolvency, liquidation, reorganization, or dissolution, which may have
the effect of reducing the amount of proceeds paid to you. Incurrence of additional debt would also further reduce the cash available
to invest in operations, as a result of increased debt service obligations, and may cause a cross-default on our other obligations,
as described elsewhere in these Risk Factors. If new debt is added to our current indebtedness, the related risks that we now face
could be compounded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>An increase in market interest rates
could result in a decrease in the value of the Notes. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In general, as market interest rates rise,
notes bearing interest at a fixed rate decline in value. Consequently, if you purchase the Notes, and the market interest rates
subsequently increase, the market value of your Notes may decline. We cannot predict the future level of market interest rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>There is no existing trading market
for the Notes, and, even if Nasdaq approves the listing of the Notes, an active trading market for the Notes may not develop, which
could limit your ability to sell the Notes and/or the market price of the Notes. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be a new issue of debt securities
for which there initially will not be a trading market. Although we intend to list the Notes on the Nasdaq Global Market under
the symbol &ldquo;[*]&rdquo; and expect trading to commence within 30 days of the original issue date, we cannot assure you that
the Notes will be approved for listing on Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Moreover, even if the listing of the Notes
is approved, we cannot provide any assurances that an active trading market will develop or be maintained for the Notes or that
you will be able to sell your Notes. If the Notes are traded after their initial issuance, they may trade at a discount from their
initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, if any, general
economic conditions, our financial condition, performance and prospects and other factors. The underwriters have advised us that
they intend to make a market in the Notes, but they are not obligated to do so. The underwriters may discontinue any market-making
in the Notes at any time at their sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We cannot assure you that the Notes will
be approved for listing on Nasdaq, that a liquid trading market will develop for the Notes, that you will be able to sell your
Notes at a particular time or that the price you receive when you sell will be favorable. To the extent an active trading market
does not develop, the liquidity and trading price for the Notes may be harmed. Accordingly, you may be required to bear the financial
risk of an investment in the Notes for an indefinite period of time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>We may choose to redeem the Notes when
prevailing interest rates are relatively low. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On or after [*] 2022, we may choose to redeem
the Notes from time to time, especially when prevailing interest rates are lower than the rate borne by the Notes. If prevailing
rates are lower at the time of redemption, you would not be able to reinvest the redemption proceeds in a comparable security at
an effective interest rate as high as the interest rate on the Notes being redeemed. Our redemption right also may adversely impact
your ability to sell the Notes as the optional redemption date or period approaches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>If we default on our obligations to
pay our other indebtedness, we may not be able to make payments on the Notes. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any default under the agreements governing our existing or future
indebtedness that is not waived by the required lenders, and the remedies sought by the holders of such indebtedness, could make
us unable to pay principal and interest on the Notes and substantially decrease the market value of the Notes. If we are unable
to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal and
interest on our indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants,
in the instruments governing our indebtedness, we could be in default under the terms of the agreements governing such indebtedness,
including the Notes. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed
thereunder to be due and payable, together with accrued and unpaid interest. In addition, the lenders under any loan facility or
other financing that we may obtain in the future could elect to terminate their commitment, cease making further loans and institute
foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. Any such default may constitute
a default under the Notes, which could further limit our ability to repay our indebtedness, including the Notes. If our operating
performance declines, we may in the future need to seek to obtain waivers from our existing lenders at the time to avoid being
in default. If we breach any loan covenants, we may not be able to obtain such a waiver from the lenders. If this occurs, we would
be in default under the credit arrangement that we have, the lender could exercise its rights as described above, and we could
be forced into bankruptcy or liquidation. If we are unable to repay indebtedness, lenders having secured obligations could proceed
against the collateral securing their debt. Because any future credit facilities will likely have, customary cross-default provisions,
if the indebtedness under the Notes, or under any future credit facility is accelerated, we may be unable to repay or finance the
amounts due.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>We will use the proceeds of this offering
to repay existing indebtedness and may use a portion of the proceeds to satisfy certain payment obligations to CPE Holdings, and
other affiliates of Sony Pictures Television, Inc., and will have broad discretion with respect to the use of any remaining proceeds.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will use approximately $13.9 million of the net proceeds
from this offering to repay in its entirety the outstanding principal and interest we owed under our commercial loan facility with
Patriot Bank, N.A. We may also use a portion of the proceeds to fund a portion of our obligation to pay certain obligations to
CPE Holdings, Inc., an affiliate of Sony Pictures Television Inc., and other affiliates thereof. Accordingly, the portion of the
proceeds of this offering used for the foregoing purposes shall not be available to us to fund the operation of our business or
for other purposes. We will use any remaining proceeds for general working capital and will have broad discretion with respect
to the use of such proceeds and you will not have the opportunity as part of your investment decision to determine how such proceeds
will be used. Because of the number and variability of factors that will determine how we use such remaining net proceeds from
this offering, their ultimate use may vary. The failure by us to apply these funds effectively could harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>We are not obligated to contribute to
a sinking fund to retire the Notes and the Notes are not guaranteed by a third-party. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are not obligated to contribute funds
to a sinking fund to repay principal or interest on the Notes upon maturity or default. The Notes are not certificates of deposit
or similar obligations of, or guaranteed by, any depositary institution. Further, no private party or governmental entity insures
or guarantees payment on the Notes if we do not have enough funds to make principal or interest payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>A downgrade, suspension or withdrawal
of the credit rating assigned by a rating agency to us or the Notes, if any, could cause the liquidity or market value of the Notes
to decline significantly.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our credit rating is an assessment by third
parties of our ability to pay our obligations. Consequently, real or anticipated changes in our credit rating will generally affect
the market value of the Notes. Our credit rating, however, may not reflect the potential impact of risks related to market conditions
generally or other factors discussed above on the market value of or trading market for the Notes. Credit ratings are not a recommendation
to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes have received a rating of BBB from Egan-Jones Ratings
Company. An explanation of the significance of ratings may be obtained from the rating agency. Generally, rating agencies base
their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate.
Neither we nor any underwriter undertakes any obligation to maintain our credit rating or to advise holders of the Notes of any
changes in our credit rating. There can be no assurance that our credit rating will remain for any given period of time or that
such credit rating will not be lowered or withdrawn entirely by the rating agency if in their judgment future circumstances relating
to the basis of the credit rating, such as adverse changes in our company, so warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_004"></A>USE OF PROCEEDS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will use a portion of the net proceeds from this offering
to repay in its entirety the outstanding principal and interest we owed under our commercial loan facility with Patriot Bank, N.A.
As of the date of this prospectus the aggregate principal and interest owed by us under such facility was approximately $13.9 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will use any remaining proceeds for general
working capital, which could include the use of some or all of such remaining proceeds to pay certain obligations to CPEH (an affiliate
of Sony Pictures Television) and affiliates thereof that may otherwise be payable in shares of our Series A preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may also use a portion of the proceeds
allocated to general working capital for payments in connection with acquisitions made by us from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_005"></A>CAPITALIZATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table shows our cash and cash
equivalents and capitalization as of March 31, 2020:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>on an actual basis;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>on a pro forma basis giving effect to the sale of Notes in this offering and the receipt of net proceeds of approximately $23,400,000
from this offering, after deducting underwriting commissions of $1,250,000 million and estimated offering expenses payable by us
of approximately $350,000 (assuming no exercise of the underwriters&rsquo; option to purchase additional Notes), and the use of
a portion thereof to repay all outstanding principal and interest owed by us to Patriot Bank, N.A. under our existing commercial
loan facility with such bank.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should read the data set forth in the
table below in conjunction with &ldquo;<I>Use of Proceeds</I>,&rdquo; appearing elsewhere in this prospectus, as well as our unaudited
financial statements and the accompanying notes and the section entitled &ldquo;<I>Management&rsquo;s Discussion and Analysis of
Financial Condition and Results of Operations</I>,&rdquo; each included in our <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020003353/csse-20191231x10k.htm" STYLE="-sec-extract: exhibit">Annual Report on Form 10-K for the year ended December 31, 2019</A> and our <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020006592/csse-20200331x10q.htm" STYLE="-sec-extract: exhibit">Quarterly Report on Form 10-Q for the quarter ended March 31, 2020,</A> each of which is incorporated by reference
into this prospectus. Any use by us of net proceeds to pay obligations to CPEH (an affiliate of Sony Pictures Television) and its
affiliates in lieu of using our Series A preferred stock would reduce the amount of net proceeds otherwise available to us for
working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31, 2020</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Actual</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">As Adjusted (1)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(Unaudited)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">7,121,339</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">16,121,339</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Total Commercial Loan, Revolving Credit Facility, &amp; Notes
    Payable:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Commercial loan and revolving line of credit, net of
    unamortized deferred finance cost of $179,373 and $0 as adjusted, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,220,627</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Revolving Credit Facility</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Notes Payable due 2025, net of deferred offering costs of $0 actual and $1,600,000 as adjusted</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">23,400,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 12pt">Total Commercial Loan, Revolving Credit Facility, &amp; Notes
Payable</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">19,220,627</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">28,400,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Stockholder's Equity:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Series A cumulative redeemable perpetual preferred stock, $.0001 par value,
    liquidation preference of $25.00 per share, 10,000,000 shares authorized; 1,599,002 shares issued and outstanding, redemption value of $39,975,050</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">160</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">160</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Class A common stock, $.0001 par value, 70,000,000 shares
    authorized; 4,267,725 shares issued and 4,193,490 outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">426</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">426</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Class B common stock, $.0001 par value, 20,000,000
    shares&nbsp;authorized; 7,813,938 issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">782</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">782</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Additional paid-in capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">87,854,864</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">87,854,864</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Deficit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(44,123,009</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(44,123,009</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7pt; font-size: 10pt; text-align: left; padding-left: 14pt">Class A common stock held in treasury, at cost (74,235 shares)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(632,729</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(632,729</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 12pt">Total stockholders' equity</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">43,100,494</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">43,100,494</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 12pt">Total Capitalization</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">62,321,121</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">71,500,494</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px; text-indent: 0in">(1)</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">Reflects the full amount of notes offered under this prospectus, for aggregate net proceeds of $23,400,000.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The <FONT STYLE="font-size: 10pt">table above is based on:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">&nbsp;4,193,490&nbsp;shares of Class A Common Stock outstanding as of March 31, 2020, and excludes, as of such date:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">1,032,500 shares of Class A Common Stock reserved for issuance pursuant to outstanding options and stock awards under our 2017 stock incentive plan (&ldquo;2017 Plan&rdquo;); </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;an additional 217,500 shares of Class A Common Stock available for issuance under the 2017 Plan; </FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;678,822 shares of Class A Common Stock underlying our outstanding Class W warrants with an exercise price of $7.50 per share, 180,618 shares of Class A Common Stock underlying our Class Z warrants with an exercise price of $12.00 per share, 800,000 shares of Class A Common Stock underlying our outstanding Class I Warrants with an exercise price of $8.13 per share, 1,200,000 shares of Class A Common Stock underlying our Class II Warrants with an exercise price of $9.67 per share, 380,000 shares of Class A Common Stock underlying our Class III-A Warrants with an exercise price of $11.61 per share, and 1,620,000 shares of Class A Common Stock underlying our Class III-B Warrants with an exercise price of $11.61 per share.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">7,813,938&nbsp;shares of Class B Common Stock outstanding as of March 31, 2020; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">1,599,002 shares of Series A Preferred Stock outstanding as of March 31, 2020.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_006"></A>DESCRIPTION OF THE NOTES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be issued under the indenture
between us and U.S. Bank National Association, as trustee, dated [*], 2020 and a first supplemental indenture thereto to be dated
[*], 2020, the date of issuance of the Notes, between us and U.S. Bank National Association, as trustee. We refer to the indenture
and the first supplemental indenture collectively as the &ldquo;indenture&rdquo; and to U.S. Bank National Association as the &ldquo;trustee.&rdquo;
The Notes are governed by the indenture, as required by federal law for all bonds and notes of companies that are publicly offered.
An indenture is a contract between us and the financial institution acting as trustee on your behalf and is subject to and governed
by the Trust Indenture Act of 1939, as amended. The trustee has two main roles. First, the trustee can enforce your rights against
us if we default. There are some limitations on the extent to which the trustee acts on your behalf, described in the second paragraph
under <I>&ldquo;&mdash;&#8201;Events of Default&#8201;&mdash;&#8201;Remedies if an Event of Default Occurs</I>.&rdquo; Second,
the trustee performs certain administrative duties for us with respect to the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This section includes a description of the
material terms of the Notes and the indenture. Because this section is a summary, however, it does not describe every aspect of
the Notes and the indenture. We urge you to read the indenture because it, and not this description, defines your rights as a holder
of the Notes. The indenture is attached as an exhibit to the Registration Statement on Form S-1 to which this prospectus forms
a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>General </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will mature on [*], 2025. The
principal payable at maturity will be 100% of the aggregate outstanding principal amount. The interest rate of the Notes is [*]%
per year and will be paid every March&nbsp;30, June&nbsp;30, September&nbsp;30, and December&nbsp;30, beginning September&nbsp;30,
2020, and the regular record dates for interest payments will be every March&nbsp;15, June&nbsp;15, September&nbsp;15, and December&nbsp;15,
beginning September 15, 2020. If an interest payment date falls on a non-business day, the applicable interest payment will be
made on the next business day and no additional interest will accrue as a result of such delayed payment. The initial interest
period will be the period from and including September&nbsp;30, 2020, to, but excluding, the initial interest payment date, and
the subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest
payment date or the stated maturity date, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will issue the Notes in denominations of&thinsp;$25 and integral
multiples of&thinsp;$25 in excess thereof. The Notes will not be subject to any sinking fund and holders of the Notes will not
have the option to have the Notes repaid prior to the stated maturity date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except as described under the captions &ldquo;<I>Events
of Default</I>&rdquo; and &ldquo;<I>Merger or Consolidation</I>&rdquo; in this prospectus, the indenture does not contain any provisions
that give you protection in the event we issue a large amount of debt or we are acquired by another entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Optional Redemption </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes may be redeemed in whole or in part at any time or
from time to time at our option on or after [*], 2022 (two&nbsp;years from the Original Issue Date) upon not less than 30&nbsp;days
nor more than 60&nbsp;days written notice by mail prior to the date fixed for redemption thereof. The redemption price shall include
(i)&nbsp;100% of the outstanding principal amount of the Notes called for redemption on the date fixed for redemption plus (ii)
all accrued and unpaid interest payments otherwise payable thereon through the date fixed for redemption. In addition, in the event
of a merger or sale of the company or substantially all of its assets or a majority of the Company&rsquo;s equity (on an after
issued basis) in one or a series of related transactions, the Company shall have the right to redeem the Notes prior to [*], 2022
in connection with the consummation of such transactions on the foregoing terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You may be prevented from exchanging or
transferring the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice
will provide that, upon surrender of such Note, you will receive, without a charge, a new Note or Notes of authorized denominations
representing the principal amount of your remaining unredeemed Notes. Any exercise of our option to redeem the Notes will be done
in accordance with the indenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we redeem only some of the Notes, the
trustee will determine the method for selection of the particular Notes to be redeemed, in accordance with the indenture and in
accordance with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default
in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for
redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Rating of the Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Notes have a credit rating of BBB from Egan-Jones Ratings
Company. An explanation of the significance of ratings may be obtained from the rating agency. Generally, rating agencies base
their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate.
The rating of the Notes should be evaluated independently from similar ratings of other securities. A credit rating of a security
is paid for by the issuer and is not a recommendation to buy, sell or hold securities and maybe subject to review, revision, suspension,
reduction or withdrawal at any time by the assigning rating agency. See &ldquo;<I>Risk Factors &mdash; A downgrade, suspension
or withdrawal of the credit rating assigned by a rating agency to us or the Notes, if any, could cause the liquidity or market
value of the Notes to decline significantly</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Global Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each Note will be issued in book-entry form
and represented by a global security that we deposit with and register in the name of The Depository Trust Company, New York, New
York, known as DTC, or its nominee. A global security may not be transferred to or registered in the name of anyone other than
the depositary or its nominee, unless special termination situations arise. As a result of these arrangements, the depositary,
or its nominee, will be the sole registered owner and holder of all the Notes represented by a global security, and investors will
be permitted to own only beneficial interests in a global security. For more information about these arrangements, see &ldquo;<I>&mdash;&#8201;Book-Entry
Procedures</I>&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Termination of a Global Security </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a global security is terminated for any
reason, interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange,
the choice of whether to hold the certificated Notes directly or in street name will be up to the investor. Investors must consult
their own banks or brokers to find out how to have their interests in a global security transferred on termination to their own
names, so that they will be holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Payment and Paying Agents </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will pay interest to the person listed
in the trustee&rsquo;s records as the owner of the Notes at the close of business on a particular day in advance of each due date
for interest, even if that person no longer owns the Note on the interest due date. That day, usually about two weeks in advance
of the interest due date, is called the &ldquo;record date.&rdquo; Because we will pay all the interest for an interest period
to the holders on the record date, holders buying and selling the Notes must work out between themselves the appropriate purchase
price. The most common manner is to adjust the sales price of the Notes to prorate interest fairly between buyer and seller based
on their respective ownership periods within the particular interest period. This prorated interest amount is called &ldquo;accrued
interest.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Payments on Global Securities </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will make payments on the Notes so long
as they are represented by a global security in accordance with the applicable policies of the depositary as in effect from time
to time. Under those policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders
who own beneficial interests in the global security. An indirect holder&rsquo;s right to those payments will be governed by the
rules and practices of the depositary and its participants, as described under &ldquo;<I>&mdash;&#8201;Book-Entry Procedures</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Payments on Certificated Securities
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event the Notes become represented
by certificated securities, we will make payments on the Notes as follows. We will pay interest that is due on an interest payment
date to the holder of the Notes as shown on the trustee&rsquo;s records as of the close of business on the regular record date
at our office in New York, New York. We will make all payments of principal and premium, if any, by check at the office of the
applicable trustee in New York, New York and/or at other offices that may be specified in the indenture or a notice to holders
against surrender of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Alternatively, at our option, we may pay
any cash interest that becomes due on the Notes by mailing a check to the holder at his, her or its address shown on the trustee&rsquo;s
records as of the close of business on the regular record date or by transfer to an account at a bank in the United States, in
either case, on the due date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Payment When Offices Are Closed </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If any payment is due on the Notes on
a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next
business day in this situation will be treated under the indenture as if they were made on the original due date. Such
payment will not result in a default under the Notes or the indenture, and no interest will accrue on the payment amount from
the original due date to the next day that is a business day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Book-entry and other indirect holders
should consult their banks or brokers for information on how they will receive payments on the Notes. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Events of Default </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You will have rights if an Event of Default
occurs in respect of the Notes, as described later in this subsection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The term &ldquo;Event of Default&rdquo;
in respect of the Notes means any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We do not pay the principal (or premium, if any) of any Note when due.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We do not pay interest on any Note when due, and such default is not cured within 30&nbsp;days.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We remain in breach of a covenant in respect of the Notes for 60&nbsp;days after we receive a written notice of default stating
we are in breach (the notice must be sent by either the trustee or holders of at least 25% of the principal amount of the Notes).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and in the case of certain
orders or decrees entered against us under bankruptcy law, such order or decree remains undischarged or unstayed for a period of
60&nbsp;days.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">An Event of Default for the Notes does not
necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other indenture.
The trustee may withhold notice to the holders of the Notes of any default, except in the payment of principal or interest, if
it in good faith considers the withholding of notice to be in the best interests of the holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Remedies if an Event of Default Occurs
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If an Event of Default has occurred and
is continuing, the trustee or the holders of not less than 25% in principal amount of the Notes may declare the entire principal
amount of all the Notes to be due and immediately payable. This is called a declaration of acceleration of maturity. In certain
circumstances, a declaration of acceleration of maturity may be canceled by the holders of a majority in principal amount of the
Notes if&#8201; (1)&nbsp;we have deposited with the trustee all amounts due and owing with respect to the Notes (other than principal
that has become due solely by reason of such acceleration) and certain other amounts, and (2)&nbsp;any other Events of Default
have been cured or waived.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except in cases of default, where the trustee
has some special duties, the trustee is not required to take any action under the indenture at the request of any holders unless
the holders offer the trustee protection from expenses and liability (called an &ldquo;indemnity&rdquo;). If indemnity is provided,
the holders of a majority in principal amount of the Notes may direct the time, method and place of conducting any lawsuit or other
formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances.
No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Before you are allowed to bypass the trustee
and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating
to the Notes, the following must occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>you must give the trustee written notice that an Event of Default has occurred and remains uncured;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the holders of at least 25% in principal amount of all the Notes must make a written request that the trustee take action because
of the default and must offer indemnity and/or security to the trustee against the cost and other liabilities of taking that action;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the trustee must not have taken action for 60&nbsp;days after receipt of the above notice and offer of indemnity and/or security;
and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the holders of a majority in principal amount of the Notes must not have given the trustee a direction inconsistent with the
above notice during that 60-day period.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">However, you are entitled at any time to
bring a lawsuit for the payment of money due on your Notes on or after the due date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Book-entry and other indirect holders
should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and
how to declare or cancel an acceleration of maturity. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each year, we will furnish to the trustee
a written statement of certain of our officers certifying that to their knowledge we are in compliance with the indenture and the
Notes, or else specifying any default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Waiver of Default </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The holders of a majority in principal amount
of the Notes may waive any past defaults other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the payment of principal or interest; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>in respect of a covenant that cannot be modified or amended without the consent of each holder.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Merger or Consolidation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the terms of the indenture, we are
generally permitted to consolidate or merge with another entity. We are also permitted to sell all or substantially all of our
assets to another entity. However, we may not take any of these actions unless all the following conditions are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Where we merge out of existence or convey or transfer our assets substantially as an entirety, the resulting entity must agree
to be legally responsible for our obligations under the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>The merger or sale of assets must not cause a default on the Notes and we must not already be in default (unless the merger
or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred
and has not been cured, as described under &ldquo;Events of Default&rdquo; above. A default for this purpose would also include
any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist
for a specific period of time were disregarded.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We must deliver certain certificates and documents to the trustee.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Modification or Waiver </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are three types of changes we can
make to the indenture and the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Changes Requiring Your Approval </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">First, there are changes that we cannot
make to the Notes without your specific approval. The following is a list of those types of changes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>change the stated maturity of the principal of or interest on the Notes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>reduce any amounts due on the Notes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>change the place or currency of payment on a Note;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>impair your right to sue for payment;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>reduce the&nbsp;percentage of holders of Notes whose consent is needed to modify or amend the indenture; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>reduce the&nbsp;percentage of holders of Notes whose consent is needed to waive compliance with certain provisions of the indenture
or to waive certain defaults.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Changes Not Requiring Approval </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The second type of change does not require
any vote by the holders of the Notes. This type is limited to clarifications and certain other changes that would not adversely
affect holders of the Notes in any material respect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Changes Requiring Majority Approval </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any other change to the indenture and the
Notes would require the following approval:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>if the change affects only the Notes, it must be approved by the holders of a majority in principal amount of the Notes; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders
of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one
class for this purpose.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In both cases, the required approval must
be given by written consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The holders of a majority in principal amount
of all of the series of debt securities issued under an indenture, voting together as one class for this purpose, may waive our
compliance with some of our covenants in that indenture. However, we cannot obtain a waiver of a payment default or of any of the
matters covered by the bullet points included above under &ldquo;&mdash;&#8201;Changes Requiring Your Approval.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Further Details Concerning Voting
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">When taking a vote, we will use the following
rules to decide how much principal to attribute to the Notes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will not be considered outstanding,
and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption. The Notes
will also not be eligible to vote if they have been fully defeased as described later under &ldquo;Defeasance&#8201;&mdash;&#8201;Full
Defeasance.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will generally be entitled to set any
day as a record date for the purpose of determining the holders of the Notes that are entitled to vote or take other action under
the indenture. However, the record date may not be more than 30&nbsp;days before the date of the first solicitation of holders
to vote on or take such action. If we set a record date for a vote or other action to be taken by holders of the Notes, that vote
or action may be taken only by persons who are holders of the Notes on the record date and must be taken within eleven&nbsp;months
following the record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Book-entry and other indirect holders
should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the indenture
or the Notes or request a waiver. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Defeasance </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Defeasance&rdquo; means that, by
depositing with a trustee an amount of cash and/or government securities sufficient to pay all principal and interest, if any,
on the Notes when due and satisfying any additional conditions noted below, we will be deemed to have been discharged from our
obligations under the Notes. In the event of a &ldquo;covenant defeasance,&rdquo; upon depositing such funds and satisfying similar
conditions discussed below we would be released from the restrictive covenants under the indenture relating to the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following defeasance provisions will
be applicable to the Notes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Covenant Defeasance </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the indenture, we can make the deposit
described below and be released from some of the restrictive covenants in the indenture under which the Notes were issued. This
is called &ldquo;covenant defeasance.&rdquo; In that event, you would lose the protection of those restrictive covenants but would
gain the protection of having money or money and government securities set aside in trust to repay your Notes. If we achieve covenant
defeasance and your Notes were subordinated as described under &ldquo;Indenture Provisions&#8201;&mdash;&#8201;Ranking&rdquo; below,
such subordination would not prevent the trustee under the indenture from applying the funds available to it from the deposit described
in the first bullet to the payment of amounts due in respect of such debt securities for the benefit of the subordinated debtholders.
In order to achieve covenant defeasance, we must do the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes either
cash or a combination of cash and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make
interest, principal and any other payments on the Notes on their various due dates.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S.&nbsp;federal income tax law,
we may make the above deposit without causing you to be taxed on the Notes any differently than if we did not make the deposit.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>We must deliver to the trustee a legal opinion and officers&rsquo; certificate stating that all conditions precedent to covenant
defeasance have been complied with.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Defeasance must not result in a breach or violation of, or result in a default under, the indenture or any of our other material
agreements or instruments.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>No default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of
default related to bankruptcy, insolvency or reorganization shall occur during the next 90&nbsp;days.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we accomplish covenant defeasance, you
can still look to us for repayment of the Notes if there were a shortfall in the trust deposit or the trustee is prevented from
making payment. For example, if one of the remaining Events of Default occurred (such as our bankruptcy) and the Notes became immediately
due and payable, there might be a shortfall. Depending on the event causing the default, you may not be able to obtain payment
of the shortfall.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Full Defeasance </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We can legally release ourselves from all
payment and other obligations on the Notes (called &ldquo;full defeasance&rdquo;) if we put in place the following other arrangements
for you to be repaid:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination
of money and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make interest, principal
and any other payments on the Notes on their various due dates.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal tax law or an
IRS ruling that allows us to make the above deposit without causing you to be taxed on the Notes any differently than if we did
not make the deposit. Under current U.S. federal tax law the deposit and our legal release from the Notes would be treated as though
we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange
for your Notes and you would recognize gain or loss on the Notes at the time of the deposit.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We must deliver to the trustee a legal opinion and officers&rsquo; certificate stating that all conditions precedent to defeasance
have been complied with.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Defeasance must not result in a breach or violation of, or constitute a default under, of the indenture or any of our other
material agreements or instruments;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>No default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of
default related to bankruptcy, insolvency or reorganization shall occur during the next 90&nbsp;days.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we ever did accomplish full defeasance,
as described above, you would have to rely solely on the trust deposit for repayment of the Notes. You could not look to us for
repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our
lenders and other creditors if we ever became bankrupt or insolvent. If your Notes were subordinated as described later under &ldquo;&mdash;&#8201;Indenture
Provisions&#8201;&mdash;&#8201;Ranking,&rdquo; such subordination would not prevent the trustee under the Indenture from applying
the funds available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts
due in respect of such Notes for the benefit of the subordinated debtholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Limitation on Restricted Payments Covenant
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to any other covenants described
in this prospectus, as well as standard covenants relating to payment of principal and interest, maintaining an office where payments
may be made or where securities can be surrendered for payment, payment of taxes by us and related matters, upon (i) the failure
to pay interest on any Note when such interest is due and payable or (ii) the occurrence of an Event of Default and while any such
interest payment remains unpaid or such Event of Default is ongoing the indenture prohibits us from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declaring
or paying any dividend, making any distribution on or in respect of our capital stock or making any similar payment to the direct
or indirect holders of our capital stock in their capacity as such;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchasing,
repurchasing, redeeming, retiring or otherwise acquiring (&ldquo;Purchase&rdquo;) for value any capital stock of the Company held
by any Person (other than capital stock held by the Company or a subsidiary) or any capital stock of a subsidiary held by any Affiliate
of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchasing
for value, prior to scheduled maturity, any scheduled repayment of any subordinated obligations; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;making any investment in any
Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&#8203;</FONT><B>Form,
Exchange and Transfer of Certificated Registered Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If registered Notes cease to be issued in
book-entry form, they will be issued:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>only in fully registered certificated form;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>without interest coupons; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>unless we indicate otherwise, in denominations of&#8201; $25 and amounts that are multiples of&#8201; $25.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders may exchange their certificated
securities for Notes of smaller denominations or combined into fewer Notes of larger denominations, as long as the total principal
amount is not changed and as long as the denomination is equal to or greater than $25.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders may exchange or transfer their
certificated securities at the corporate trust office of the trustee. We have appointed the trustee to act as our agent for
registering Notes in the names of holders transferring Notes. We may appoint another entity to perform these functions or
perform them ourselves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders will not be required to pay a service
charge to transfer or exchange their certificated securities, but they may be required to pay any tax or other governmental charge
associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the
holder&rsquo;s proof of legal ownership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may appoint additional transfer agents
or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer
agent acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If any certificated securities of a particular
series are redeemable and we redeem less than all the debt securities of that series, we may block the transfer or exchange of
those debt securities during the period beginning 15&nbsp;days before the day we mail the notice of redemption and ending on the
day of that mailing, in order to freeze the list of holders to prepare the mailing. We may also refuse to register transfers or
exchanges of any certificated securities selected for redemption, except that we will continue to permit transfers and exchanges
of the unredeemed portion of any debt security that will be partially redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a registered debt security is issued
in book-entry form, only the depositary will be entitled to transfer and exchange the debt security as described in this subsection,
since it will be the sole holder of the debt security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Resignation of Trustee </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The trustee may resign or be removed with
respect to the Notes provided that a successor trustee is appointed to act with respect to the Notes. In the event that two or
more persons are acting as trustee with respect to different series of indenture securities under the indenture, each of the trustees
will be a trustee of a trust separate and apart from the trust administered by any other trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Indenture Provisions&#8201;&mdash;&#8201;Ranking
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be our direct unsecured obligations
and will rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in">&bull;</TD><TD><I>Pari&nbsp;passu</I> with, which means equal to, all of our currently outstanding
unsecured unsubordinated indebtedness issued by us. The Notes will also rank <I>pari&nbsp;passu</I> with our general liabilities,
which consist of trade and other payables, including any outstanding dividend payable, interest and debt fees payable, vendor payables
and accrued expenses such as auditor fees, legal fees, director fees, etc. In total, these general liabilities were $59.2 million
as of March&nbsp;31, 2020. We have the ability to issue from time to time other debt securities with terms different from the Notes
and, without consent of the holders thereof, as well as the ability to reopen the Notes and issue additional Notes. If we issue
additional debt securities, these additional debt securities could rank higher in priority of payment or have a lien or other security
interest greater than that accorded to the holders of the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in">&bull;</TD><TD>Senior to any of our future indebtedness that expressly provides it is subordinated to the Notes. We currently do not have
outstanding debt that is subordinated to the Notes and do not currently intend to issue indebtedness that expressly provides that
it is subordinated to the Notes. Therefore, the Notes, as currently contemplated, will not be senior to any indebtedness or obligations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in">&bull;</TD><TD>Effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is initially unsecured
to which we subsequently a grant security interest), to the extent of the value of the assets securing such indebtedness. Because
the Notes will not be secured by any of our assets, they will be effectively subordinated to any existing secured indebtedness,
any indebtedness that we may incur in the future, such as a new credit facility to replace the commercial line facility we have
with Patriot Bank N.A. (which we intend to repay from the net proceeds of this offering), or any indebtedness that is initially
unsecured to which we subsequently grant a security interest, to the extent of the value of the assets securing such indebtedness.
In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness
may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness
before the assets may be used to pay other creditors, including the holders of the Notes, and any assets of our subsidiaries will
not be directly available to satisfy the claims of our creditors, including holders of the Notes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in">&bull;</TD><TD>Structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries and financing
vehicles since the Notes are obligations exclusively of Chicken Soup for the Soul Entertainment, Inc. and not of any of our subsidiaries.
Structural subordination means that creditors of a parent entity are subordinate to creditors of a subsidiary entity with respect
to the subsidiary&rsquo;s assets.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT><B>Book-Entry
Procedures </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be represented by global
securities that will be deposited and registered in the name of DTC or its nominee. This means that, except in limited circumstances,
you will not receive certificates for the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Beneficial interests in the Notes will be
represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect
participants in DTC. Investors may elect to hold interests in the Notes through either DTC, if they are a participant, or indirectly
through organizations that are participants in DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes will be issued as fully registered
securities registered in the name of Cede &amp; Co. (DTC&rsquo;s partnership nominee) or such other name as may be requested by
an authorized representative of DTC. One fully-registered certificate will be issued for each issuance of the Notes, in the aggregate
principal amount of such issue, and will be deposited with DTC. Interests in the Notes will trade in DTC&rsquo;s Same Day Funds
Settlement System, and any permitted secondary market trading activity in such Notes will, therefore, be required by DTC to be
settled in immediately available funds. We will not have and neither the Trustee nor the Paying Agent will have any responsibility
for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures
governing their operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DTC is a limited-purpose trust company organized
under the New York Banking Law, a &ldquo;banking organization&rdquo; within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code, and
a &ldquo;clearing agency&rdquo; registered pursuant to the provisions of Section&nbsp;17A of the Exchange Act. DTC holds and provides
asset servicing for over 1.3&nbsp;million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market
instruments from over 131 countries and territories that DTC&rsquo;s participants (&ldquo;Direct Participants&rdquo;) deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited
securities through electronic computerized book-entry transfers and pledges between Direct Participants&rsquo; accounts. This eliminates
the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly owned subsidiary of
The Depository Trust &amp; Clearing Corporation (&ldquo;DTCC&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin-top: 0pt; margin-bottom: 0pt"></P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DTCC is the holding company for DTC,
National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing
agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such
as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through
or maintain a custodial relationship with a Direct Participant, either directly or indirectly (&ldquo;Indirect
Participants&rdquo;). The DTC Rules applicable to its participants are on file with the SEC. More information about DTC can
be found at <I>www.dtcc.com</I> and <I>www.dtc.org</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Purchases of the Notes under the DTC system
must be made by or through Direct Participants, which will receive a credit for the Notes on DTC&rsquo;s records. The ownership
interest of each actual purchaser of each security, or the &ldquo;Beneficial Owner,&rdquo; is in turn to be recorded on the Direct
and Indirect Participants&rsquo; records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements
of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers
of ownership interests in the Notes are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Notes,
except in the event that use of the book-entry system for the Notes is discontinued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To facilitate subsequent transfers, all
Notes deposited by Direct Participants with DTC are registered in the name of DTC&rsquo;s partnership nominee, Cede &amp; Co. or
such other name as may be requested by an authorized representative of DTC. The deposit of the Notes with DTC and their registration
in the name of Cede &amp; Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge
of the actual Beneficial Owners of the Notes; DTC&rsquo;s records reflect only the identity of the Direct Participants to whose
accounts the Notes are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Conveyance of notices and other communications
by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants
to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be
in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Redemption notices shall be sent to DTC.
If less than all of the Notes within an issue are being redeemed, DTC&rsquo;s practice is to determine by lot the amount of the
interest of each Direct Participant in such issue to be redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Redemption proceeds, distributions, and
interest payments on the Notes will be made to Cede &amp; Co., or such other nominee as may be requested by an authorized representative
of DTC. DTC&rsquo;s practice is to credit Direct Participants&rsquo; accounts upon DTC&rsquo;s receipt of funds and corresponding
detail information from us or the Trustee on the payment date in accordance with their respective holdings shown on DTC&rsquo;s
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is
the case with securities held for the accounts of customers in bearer form or registered in &ldquo;street name,&rdquo; and will
be the responsibility of such Participant and not of DTC nor its nominee, the Trustee, or us, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and interest payments to Cede
 &amp; Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of us or the
Trustee, but disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments
to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DTC may discontinue providing its services
as securities depository with respect to the Notes at any time by giving reasonable notice to us or to the Trustee. Under such
circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and
delivered. We may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository).
In that event, certificates will be printed and delivered to DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information in this section concerning
DTC and DTC&rsquo;s book-entry system has been obtained from sources that we believe to be reliable, but we take no responsibility
for the accuracy thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_007"></A>CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following discussion is a general summary
of certain U.S. federal income tax considerations (and, in the case of a non-U.S. holder (as defined below), certain U.S. federal
estate tax consequences) applicable to an investment in the Notes. This summary does not purport to be a complete description of
the income and estate tax considerations applicable to such an investment. The discussion is based upon the Internal Revenue Code
of 1986, as amended (the &ldquo;Code&rdquo;), Treasury Regulations, and administrative and judicial interpretations, each as of
the date of this prospectus and all of which are subject to change, potentially with retroactive effect. You should consult your
own tax advisor with respect to tax considerations that pertain to your purchase, ownership and disposition of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This discussion deals only with Notes held
as capital assets within the meaning of Section 1221 of the Code (generally, property held for investment) and does not purport
to deal with persons in special tax situations, such as financial institutions, insurance companies, controlled foreign corporations,
passive foreign investment companies and regulated investment companies (and shareholders of such corporations), dealers in securities
or currencies, traders in securities, former citizens of the United States, persons holding the Notes as a hedge against currency
risks or as a position in a &ldquo;straddle,&rdquo; &ldquo;hedge,&rdquo; &ldquo;constructive sale transaction&rdquo; or &ldquo;conversion
transaction&rdquo; for tax purposes, entities that are tax-exempt for U.S. federal income tax purposes, retirement plans, individual
retirement accounts, tax-deferred accounts, persons subject to the alternative minimum tax, pass-through entities (including partnerships
and entities and arrangements classified as partnerships for U.S. federal income tax purposes) and beneficial owners of pass-through
entities, or persons whose functional currency is not the U.S. dollar. It does not deal with beneficial owners of the Notes other
than original purchasers of the Notes who acquire the Notes in this offering for a price equal to their original issue price (i.e.,
the first price at which a substantial amount of the notes is sold other than to bond houses, brokers, or similar persons or organizations
acting in the capacity of underwriters, placement agents or wholesalers). It also does not address the U.S. federal income tax
consequences to beneficial owners of the Notes subject to the special tax accounting rules under Section 451(b) of the Code. In
addition, this summary only addresses U.S. federal income tax consequences (and, in the case of a non-U.S. holder certain U.S.
federal estate tax consequences), and, except as otherwise noted below, does not address any U.S. state or local or non-U.S. tax
consequences. If you are considering purchasing the Notes, you should consult your own tax advisor concerning the application of
the U.S. federal tax laws to you in light of your particular situation, as well as any consequences to you of purchasing, owning
and disposing of the Notes under the laws of any other taxing jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For purposes of this discussion, the term
 &ldquo;U.S. holder&rdquo; means a beneficial owner of a Note that is, for U.S. federal income tax purposes, (i) an individual citizen
or resident of the United States, (ii) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes),
created or organized in or under the laws of the United States or any State thereof or the District of Columbia, (iii) a trust
(a) subject to the control of one or more U.S. persons and the primary supervision of a court in the United States, or (b) that
existed on August 20, 1996 and has made a valid election (under applicable Treasury Regulations) to be treated as a domestic trust,
or (iv) an estate the income of which is subject to U.S. federal income taxation regardless of its source. The term &ldquo;non-U.S.
holder&rdquo; means a beneficial owner of a Note that is neither a U.S. holder nor a partnership (including an entity or arrangement
treated as a partnership for U.S. federal income tax purposes). An individual may, subject to exceptions, be deemed to be a resident
alien, as opposed to a non-resident alien, by, among other ways, being present in the United States (i) on at least 31 days in
the calendar year, and (ii) for an aggregate of at least 183 days during a three-year period ending in the current calendar year,
counting for such purposes all of the days present in the current year, one-third of the days present in the immediately preceding
year, and one-sixth of the days present in the second preceding year. Resident aliens are subject to U.S. federal income tax as
if they were U.S. citizens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a partnership (including an entity or
arrangement treated as a partnership for U.S. federal income tax purposes) holds any Notes, the U.S. federal income tax treatment
of a partner of the partnership generally will depend upon the status of the partner, the activities of the partnership and certain
determinations made at the partner level. Partners of partnerships holding Notes should consult their own tax advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Taxation of Note Holders </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under present law, the Notes will constitute
our indebtedness for U.S. federal income tax purposes and this discussion assumes that to be the case. Accordingly, we intend to
treat all payments made with respect to the Notes consistent with this characterization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Taxation of U.S. Holders</I></B>.
Payments or accruals of interest on a Note generally will be taxable to a U.S. holder as ordinary interest income at the time they
are received (actually or constructively) or accrued, in accordance with the U.S. holder&rsquo;s regular method of tax accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon the sale, exchange, redemption, retirement
or other taxable disposition of a Note, a U.S. holder generally will recognize capital gain or loss equal to the difference between
the amount realized on the sale, exchange, redemption, retirement or other taxable disposition (excluding amounts representing
accrued and unpaid interest, which are treated as ordinary income to the extent not previously included in income) and the U.S.
holder&rsquo;s adjusted tax basis in the Note. A U.S. holder&rsquo;s adjusted tax basis in a Note generally will equal the U.S.
holder&rsquo;s initial investment in the Note. Capital gain or loss generally will be long-term capital gain or loss if the Note
was held for more than one year. Long-term capital gains recognized by certain non-corporate U.S. holders (including individuals)
generally are eligible for reduced rates of taxation. The distinction between capital gain or loss and ordinary income or loss
is also important in other contexts, for example, for purposes of the limitations on a U.S. holder&rsquo;s ability to offset capital
losses against ordinary income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unearned Income Medicare Contribution. A
tax of 3.8% will be imposed on certain &ldquo;net investment income&rdquo; (or &ldquo;undistributed net investment income,&rdquo;
in the case of estates and trusts) received by taxpayers other than corporations with adjusted gross income above certain threshold
amounts. &ldquo;Net investment income&rdquo; as defined for U.S. federal Medicare contribution purposes generally includes interest
payments and gain recognized from the sale, exchange, redemption, retirement or other taxable disposition of the Notes. Tax-exempt
trusts, which are not subject to income taxes generally, and foreign individuals will not be subject to this tax. U.S. holders
should consult their own tax advisors regarding the effect, if any, of this tax on their ownership and disposition of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Taxation of Non-U.S. Holders</I></B>.
A non-U.S. holder generally will not be subject to U.S. federal income or withholding taxes on payments of principal or interest
on a Note provided that (i) income on the Note is not effectively connected with the conduct by the non-U.S. holder of a trade
or business within the United States, (ii) the non-U.S. holder is not a controlled foreign corporation related to the Company through
stock ownership, (iii) the non-U.S. holder is not a bank receiving interest described in Section 881(c)(3)(A) of the Code, (iv)
the non-U.S. holder does not own (directly or indirectly, actually or constructively) 10% or more of the total combined voting
power of all classes of our capital stock of the Company, and (v) the non-U.S. holder has provided a statement prior to the payment
of interest in the year in which a payment occurs or in the preceding three years, on an Internal Revenue Service (the &ldquo;IRS&rdquo;)
Form W-8BEN, Form W-8BEN-E, or other applicable form signed under penalties of perjury that includes its name and address and certifies
that the non-U.S. holder is the beneficial owner and is not a U.S. person in compliance with applicable requirements, or satisfies
documentary evidence requirements for establishing that it is a non-U.S. holder. These forms may be required to be periodically
updated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A non-U.S. holder that is not exempt from
tax under these rules generally will be subject to U.S. federal income tax withholding on payments of interest on the Notes at
a rate of 30% unless (i) the income is effectively connected with the conduct of a U.S. trade or business (and, under certain income
tax treaties, is attributable to a permanent establishment maintained in the United States by the non-U.S. holder), so long as
the non-U.S. holder has provided, prior to payment of such interest, an IRS Form W-8ECI or substantially similar substitute form
stating that the interest on the Notes is effectively connected with the non-U.S. holder&rsquo;s conduct of a trade or business
in the U.S. in which case the interest will be subject to U.S. federal income tax on a net income basis as applicable to U.S. holders
generally (unless an applicable income tax treaty provides otherwise), or (ii) an applicable income tax treaty provides for a lower
rate of, or exemption from, withholding tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the case of a non-U.S. holder that is
a corporation and that receives income that is effectively connected with the conduct of a U.S. trade or business, such income
may also be subject to a branch profits tax (which is generally imposed on a non-U.S. corporation on the actual or deemed repatriation
from the United States of earnings and profits attributable to a U.S. trade or business) at a 30% rate. The branch profits tax
may not apply (or may apply at a reduced rate) if the non-U.S. holder is a qualified resident of a country with which the United
States has an income tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To claim the benefit of an income tax treaty
or to claim exemption from withholding because income is effectively connected with a U.S. trade or business, the non-U.S. holder
must timely provide the appropriate properly executed IRS forms. The non-U.S. holder must inform the recipient of any changes on
these forms within 30 days of such change. These forms may be required to be periodically updated. Also, a non-U.S. holder who
is claiming the benefits of a treaty may be required to obtain a United States taxpayer identification number and to provide certain
documentary evidence issued by foreign governmental authorities to prove residence in the foreign country.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, a non-U.S. holder will not be
subject to U.S. federal income or withholding taxes on any amount that constitutes capital gain upon the sale, exchange, redemption,
retirement or other taxable disposition of a Note, provided that (i) the gain is not effectively connected with the conduct of
a trade or business in the United States by the non-U.S. holder (or, if required by an applicable income tax treaty, is not attributable
to a permanent establishment maintained in the United States by the non-U.S. holder) and (ii) the non-U.S. holder is not an individual
who is present in the United States for 183 days or more in the taxable year of the sale, exchange, redemption, retirement or other
taxable disposition and meets certain other conditions (unless such holder is eligible for relief under an applicable income tax
treaty). Certain other exceptions may be applicable, and a non-U.S. holder should consult its tax advisor in this regard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A Note that is held by an individual who,
at the time of death, is not a citizen or resident of the United States (as specially defined for U.S. federal estate tax purposes)
generally will not be subject to the U.S. federal estate tax, unless, at the time of death, (i) such individual directly or indirectly,
actually or constructively, owns ten percent (10%) or more of the total combined voting power of all classes of our stock entitled
to vote within the meaning of Section 871(h)(3) of the Code or (ii) such individual&rsquo;s interest in the Notes is effectively
connected with the individual&rsquo;s conduct of a U.S. trade or business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Information Reporting and Backup Withholding</I></B>.
A U.S. holder (other than an &ldquo;exempt recipient,&rdquo; including a corporation and certain other persons who, when required,
demonstrate their exempt status) may be subject to backup withholding on, and to information reporting requirements with respect
to, payments of principal and interest on, and proceeds from the sale, exchange, redemption, retirement or other taxable disposition
of the Notes. In general, if a non-corporate U.S. holder subject to information reporting fails to furnish a correct taxpayer identification
number or otherwise fails to comply with applicable backup withholding requirements, backup withholding at the applicable rate
may apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The amount of interest we pay to a non-U.S.
holder on the Notes will be reported to such non-U.S. holder and to the IRS annually on an IRS Form 1042-S even if the non-U.S.
holder is exempt from the 30% withholding tax described above. Copies of the information returns reporting those payments and the
amounts withheld, if any, may also be made available to the tax authorities in the country where the non-U.S. holder is resident
under provisions of an applicable income tax treaty or agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, backup withholding tax and
certain other information reporting requirements apply to payments of principal and interest on, and proceeds from the sale, exchange,
redemption, retirement or other taxable disposition of the Notes, unless an exemption applies. Backup withholding and information
reporting will not apply to payments we make to a non-U.S. holder if such non-U.S. holder has provided to the applicable withholding
agent under penalties of perjury the required certification of their non-U.S. person status as discussed above (and the applicable
withholding agent does not have actual knowledge or reason to know that they are a U.S. person) or if the non-U.S. holder is an
exempt recipient.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a non-U.S. holder sells or redeems a
Note through a U.S. broker or the U.S. office of a foreign broker, the proceeds from such sale or redemption will be subject to
information reporting and backup withholding unless such non-U.S. holder provides a withholding certificate or other appropriate
documentary evidence establishing that such non-U.S. holder is not a U.S. person to the broker and such broker does not have actual
knowledge or reason to know that such non-U.S. holder is a U.S. person, or the non-U.S. holder is an exempt recipient eligible
for an exemption from information reporting and backup withholding. If a non-U.S. holder sells or redeems a note through the foreign
office of a broker who is a U.S. person or has certain enumerated connections with the United States, the proceeds from such sale
or redemption will be subject to information reporting unless the non-U.S. holder provides to such broker a withholding certificate
or other appropriate documentary evidence establishing that the non-U.S. holder is not a U.S. person and such broker does not have
actual knowledge or reason to know that such evidence is false, or the non-U.S. holder is an exempt recipient eligible for an exemption
from information reporting. In circumstances where information reporting by the foreign office of such a broker is required, backup
withholding will be required only if the broker has actual knowledge that the non-U.S. holder is a U.S. person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should consult your tax advisor regarding
the qualification for an exemption from backup withholding and information reporting and the procedures for obtaining such an exemption,
if applicable. Any amounts withheld under the backup withholding rules from a payment to a beneficial owner generally would be
allowed as a refund or a credit against such beneficial owner&rsquo;s U.S. federal income tax provided the required information
is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Foreign Account Tax Compliance Act </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Legislation commonly referred to as the
 &ldquo;Foreign Account Tax Compliance Act,&rdquo; or &ldquo;FATCA,&rdquo; generally imposes a 30% withholding tax on payments of
certain types of income to foreign financial institutions (&ldquo;FFIs&rdquo;) unless such FFIs either (i) enter into an agreement
with the U.S. Treasury to report certain required information with respect to accounts held by U.S. persons (or held by foreign
entities that have U.S. persons as substantial owners) or (ii) reside in a jurisdiction that has entered into an intergovernmental
agreement (&ldquo;IGA&rdquo;) with the United States to collect and share such information and are in compliance with the terms
of such IGA and any enabling legislation or regulations. Under proposed regulations promulgated by the Treasury Department on December
13, 2018, which state that taxpayers may rely on the proposed regulations until final regulations are issued, this withholding
tax will not apply to the gross proceeds from any sale or disposition of the Notes. The information required to be reported includes
the identity and taxpayer identification number of each account holder that is a U.S. person and transaction activity within the
holder&rsquo;s account. In addition, subject to certain exceptions, this legislation also imposes a 30% withholding on payments
to foreign entities that are not FFIs unless the foreign entity certifies that it does not have a greater than 10% U.S. owner or
provides the withholding agent with identifying information on each greater than 10% U.S. owner. Depending on the status of a non-U.S.
holder and the status of the intermediaries through which they hold the Notes, non-U.S. holders could be subject to this 30% withholding
tax with respect to interest paid on the Notes and proceeds from the sale of the Notes. Under certain circumstances, a non-U.S.
holder might be eligible for refunds or credits of such taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>You should consult your own tax advisor
with respect to the particular tax consequences to you of an investment in the Notes, including the possible effect of any pending
legislation or proposed regulations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_008"></A>UNDERWRITING</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ladenburg Thalmann is acting as representative
of the underwriters named below. Subject to the terms and conditions stated in the underwriting agreement dated [*] 2020, each
underwriter named below has agreed to purchase, and we have agreed to sell to that underwriter, the aggregate principal amount
of Notes set forth opposite the underwriter&rsquo;s name.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 89%; font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Underwriter </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">Principal Amount of Notes</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Ladenburg Thalmann &amp; Co. Inc.</TD><TD STYLE="white-space: nowrap; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font-size: 10pt; text-indent: 0in; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriting agreement provides that
the obligations of the underwriters to purchase the Notes included in this offering are subject to approval of legal matters by
counsel and to other conditions. The underwriters are obligated to purchase all the Notes (other than those covered by the overallotment
option described below) if they purchase any of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters propose to offer some of
the Notes directly to the public at the public offering price set forth on the cover page of this prospectus and some of the Notes
to dealers at the public offering price less a concession not to exceed $[*], or [*]% of the aggregate principal amount of the
Notes. The underwriting discount of&#8201; $[*] per Note is equal to [*]% of the aggregate principal amount of the Notes. If all
of the Notes are not sold at the offering price, the representative may change the public offering price and other selling terms.
Investors must pay for any Notes purchased on or before [*], 2020. The representative has advised us that the underwriters do not
intend to confirm any sales to any accounts over which they exercise discretionary authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters hold an option, exercisable
for 30 days from the date of this prospectus, to purchase up to an additional $3.75 million aggregate principal amount of the Notes
at the public offering price less the underwriting discount. The underwriters may exercise the option solely for the purpose of
covering overallotments, if any, in connection with this offering. To the extent such option is exercised, each underwriter must
purchase a number of additional Notes approximately proportionate to that underwriter&rsquo;s initial purchase commitment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have agreed that, for a period of 60
days from the date of this prospectus, we will not, without the prior written consent of Ladenburg, on behalf of the underwriters,
offer, pledge, sell, contract to sell or otherwise dispose of or agree to sell or otherwise dispose of, directly or indirectly
or hedge any debt securities issued or guaranteed by us or any securities convertible into or exercisable or exchangeable for debt
securities issued or guaranteed by us or file any registration statement under the Securities Act with respect to any of the foregoing.
Ladenburg in its sole discretion may release any of the securities subject to these lock-up agreements at any time without notice.
For purposes of clarity, nothing shall prevent the company from incurring bank indebtedness or trade liabilities in the ordinary
course. In addition, our Series A preferred stock or future series of substantively similar preferred stock would not be deemed
debt securities for purposes of this restriction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 60-day period in the preceding paragraph
will be extended if&#8201; (i) during the last 17 days of the 60-day period we issue an earnings release or material news or a
material event relating to us occurs or (ii) prior to the expiration of the 60-day period, we announce that we will release earnings
results during the 16-day period beginning on the last day of the 60-day period, in which case the restrictions described in the
preceding sentence will continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the announcement of the material news or the occurrence of the material event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is presently no public market for
the Notes. We intend to list the Notes on the Nasdaq Global Market under the trading symbol &ldquo;[*]&rdquo; and we expect trading
to commence within 30 days of the original issue date, however we cannot guarantee that the Notes will be approved for listing
on the Nasdaq Global Market or any market. The Notes are expected to trade &ldquo;flat.&rdquo; This means that purchasers will
not pay, and sellers will not receive, any accrued and unpaid interest on the Notes that is not included in the trading price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table shows the public offering
price, the underwriting discounts and commissions to be paid to the underwriters and the proceeds, before expenses, to us in connection
with this offering. These amounts are shown assuming both no exercise and full exercise of the underwriters&rsquo; option to purchase
additional Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&#8203;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Per <BR>
Note</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Without <BR>
Option</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">With <BR>
Option</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt">Public offering price</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">25.00</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">25,000,000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">28,750,000</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Underwriting discount (sales load) paid by us<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.25</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,250,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,437,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Estimated Proceeds to us, before expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">23.75</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">23,750,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">27,312,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>The expenses associated with the offering, including the underwriting discount, are paid by us and are ultimately borne by
our shareholders.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have agreed to reimburse the underwriters
for all reasonable out-of-pocket expenses incurred by them for travel, fees and disbursements of counsel and other consultants
in connection with this offering and FINRA filings, up to a maximum of $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We estimate expenses payable by us in connection
with this offering, other than the underwriting discounts and commissions referred to above, will be approximately $350,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We and our investment adviser have each
agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, or to
contribute to payments the underwriters may be required to make because of any of those liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Certain underwriters may make a market in
the Notes. No underwriter is, however, obligated to conduct market-making activities and any such activities may be discontinued
at any time without notice, at the sole discretion of the underwriter. No assurance can be given as to the liquidity of, or the
trading market for, the Notes as a result of any market-making activities undertaken by any underwriter. This prospectus is to
be used by any underwriter in connection with the offering and, during the period in which a prospectus must be delivered, with
offers and sales of the Notes in market-making transactions in the over-the-counter market at negotiated prices related to prevailing
market prices at the time of the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the offering, Ladenburg
Thalmann &amp; Co. Inc., on behalf of the underwriters, may purchase and sell Notes in the open market. These transactions may
include short sales, syndicate covering transactions and stabilizing transactions. Short sales involve syndicate sales of Notes
in excess of the number of Notes to be purchased by the underwriters in the offering, which creates a syndicate short position.
 &ldquo;Covered&rdquo; short sales are sales of Notes made in an amount up to the number of Notes represented by the underwriters&rsquo;
overallotment option. In determining the source of Notes to close out the covered syndicate short position, the underwriters will
consider, among other things, the price of Notes available for purchase in the open market as compared to the price at which they
may purchase Notes through the overallotment option. Transactions to close out the covered syndicate short position involve either
purchases of Notes in the open market after the distribution has been completed or the exercise of the overallotment option. The
underwriters may also make &ldquo;naked&rdquo; short sales of Notes in excess of the overallotment option. The underwriters must
close out any naked short position by purchasing Notes in the open market. A naked short position is more likely to be created
if the underwriters are concerned that there may be downward pressure on the price of Notes in the open market after pricing that
could adversely affect investors who purchase in the offering. Stabilizing transactions consist of bids for or purchases of Notes
in the open market while the offering is in progress.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters also may impose a penalty
bid. Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when Ladenburg Thalmann &amp;
Co. Inc. repurchases Notes originally sold by that syndicate member in order to cover syndicate short positions or make stabilizing
purchases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any of these activities may have the effect
of preventing or retarding a decline in the market price of Notes. They may also cause the price of Notes to be higher than the
price that would otherwise exist in the open market in the absence of these transactions. The underwriters may conduct these transactions
on the Nasdaq Global Market, if the Notes are approved for listing on the Nasdaq Global Market, or in the over-the-counter market,
or otherwise. Trading is expected to commence on the Nasdaq Global Market within 30 days after the date of initial delivery of
the Notes. If the underwriters commence any of these transactions, they may discontinue them at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A prospectus in electronic format may be
made available on the websites maintained by one or more of the underwriters. The representative may agree to allocate a number
of Notes to underwriters for sale to their online brokerage account holders. The representative will allocate Notes to underwriters
that may make Internet distributions on the same basis as other allocations. In addition, Notes may be sold by the underwriters
to securities dealers who resell Notes to online brokerage account holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Certain underwriters may, from time to time,
engage in transactions with or perform services for us, our investment adviser and our affiliates in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The principal business address of Ladenburg
Thalmann &amp; Co. Inc. is 277 Park Avenue, 26th floor, New York, New York 10172.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Settlement </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect that delivery of the Notes will
be made against payment therefor on or about &#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199; &#8199;&#8199; &#8199;&#8199;,
2020, which will be the fifth business day following the date of the pricing of the Notes. Under Rule 15c6-1 under the Exchange
Act, trades in the secondary market generally are required to settle in two business days, unless the parties to any such trade
expressly agree otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Other Jurisdictions </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes offered by this prospectus may
not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection
with the offer and sale of any such Notes be distributed or published in any jurisdiction, except under circumstances that will
result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus
comes are advised to inform themselves about and to observe any restriction relating to the offering and the distribution of this
prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy the Notes offered by this
prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Potential Conflicts of Interest </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters and their respective affiliates
are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment
banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage
activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future
perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees
and expenses, including acting as underwriters for our securities offerings. In the ordinary course of their various business activities,
the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity
securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the
accounts of their customers and such investment and securities activities may involve securities and/or instruments of our company.
The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent
research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire,
long and/or short positions in such securities and instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ladenburg Thalmann acted as the sole book-running
manager of the underwritten offering of an aggregate offering amount of $16,162,425 of our Series A Preferred Stock (including
the partial exercise by the underwriters of their overallotment option), which was completed on June 29, 2018. Ladenburg Thalmann
received an aggregate of $1 million in connection with such offering, consisting of underwriting discounts and commissions and
reimbursement of legal costs and expenses. In addition, Ladenburg Thalmann acted as a financial advisor to the Company in connection
with the creation of Crackle Plus and was paid an aggregate transaction fee of $1,830,954.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_009"></A>LEGAL MATTERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The legality of
the Notes will be passed on for us by our counsel, Graubard Miller, New York, New York. Graubard Miller and certain of its
partners and family members own shares of the Class A Common Stock and Class W Warrants to purchase shares of Class A Common
Stock of CSSE and certain Class B membership interests in Chicken Soup for the Soul Holdings, LLC, our ultimate parent
company.&nbsp;Certain legal matters in connection with this offering will be passed upon for the underwriters by Blank Rome
LLP, New York, New York. Graubard Miller has provided legal services to Ladenburg Thalmann
 &amp; Co. Inc. from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_010"></A>EXPERTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The consolidated financial
statements of Chicken Soup for the Soul Entertainment Inc. and subsidiaries as of December 31, 2019 and 2018, and for the years
ended December 31, 2019 and 2018, are incorporated by reference herein to the <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020003353/csse-20191231x10k.htm" STYLE="-sec-extract: exhibit">Annual Report on Form 10-K for the year ended December 31, 2019,</A> in reliance upon the report of Rosenfield and Company, PLLC, independent registered public accounting firm, which is
also incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The audited historical
financial statements of Crackle U.S. (a business of Sony Pictures Entertainment) included in Exhibit 99.1 to the Chicken Soup for
the Soul Entertainment, Inc.&rsquo;s Current Report on Form 8-K/A dated July 30, 2019 have been so incorporated in reliance on the report
of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_012"></A>WHERE YOU CAN FIND MORE INFORMATION;
INCORPORATION BY REFERENCE</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC allows us to
incorporate by reference the information we file with it, which means that we can disclose important information to you by referring
you to those documents. The information incorporated by reference is an important part of this prospectus, and information that
we file later with the SEC will automatically update and supersede this information. This prospectus incorporates by reference
the documents listed below, all filings we make under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the initial
filing date of the registration statement of which this prospectus forms a part and prior to effectiveness of such registration
statement, and all filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after effectiveness
of such registration statement and prior to the sale of all of the shares offered hereby, including all documents filed as exhibits
to any of the foregoing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020003353/csse-20191231x10k.htm" STYLE="-sec-extract: exhibit">our annual report on Form 10-K for the fiscal
year ended December 31, 2019 filed with the SEC on March 30, 2020;</A></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000155837020006592/csse-20200331x10q.htm" STYLE="-sec-extract: exhibit">our quarterly report on Form 10-Q for the
quarter ended March 31, 2020, filed with the SEC on May 14, 2020;</A></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>our current reports on Form 8-K or 8-K/A,
as applicable, filed with the SEC on each of <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420419026133/tv521597_8k.htm" STYLE="-sec-extract: exhibit">May 15, 2019,</A> <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420419036684/tv525281_8ka.htm" STYLE="-sec-extract: exhibit">July 30, 2019,</A> <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920020860/tm208056d1_8k.htm" STYLE="-sec-extract: exhibit">February 14, 2020,</A> <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920036917/tm2013402d1_8k.htm" STYLE="-sec-extract: exhibit">March 20, 2020,</A>&nbsp;<A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920041867/tm2014422d1_8k.htm" STYLE="-sec-extract: exhibit">April 1, 2020,</A>&nbsp;<A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920047959/tm2016110d1_8k.htm" STYLE="-sec-extract: exhibit">April 17, 2020,</A>&nbsp;<A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920062697/tm2019905d1_8k.htm" STYLE="-sec-extract: exhibit">May 15, 2020,</A>&nbsp;<A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920071490/tm2022179d1_8k.htm" STYLE="-sec-extract: exhibit">June 9, 2020,</A>&nbsp;and <A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920072917/tm2022540d1_8k.htm" STYLE="-sec-extract: exhibit">June 12, 2020</A>;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000110465920052913/tm2016223-1_def14a.htm" STYLE="-sec-extract: exhibit">our proxy statement on Schedule 14A filed
with the SEC on April 29, 2020; and</A></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420417033350/v469331_8a12b.htm" STYLE="-sec-extract: exhibit">our
    registration statement on Form 8-A effective on June 21, 2017, registering our Class A common stock under Section 12(b) of the
    Exchange Act.</A></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any statement contained
in a document filed before the date of this prospectus and incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this prospectus to the extent that a statement contained herein modifies or supersedes such statement. Any statement
so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus. Any
information that we file after the date of this prospectus with the SEC will automatically update and supersede the information
contained in this prospectus. Notwithstanding the foregoing, we are not incorporating any document or portion thereof or information
deemed to have been furnished and not filed in accordance with SEC rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to accessing
the above information through the SEC&rsquo;s website at <U>www.sec.gov</U>, you may obtain a copy of any or all of the information
that has been incorporated by reference in this prospectus, without charge, upon written or oral request directed to Chicken Soup
for the Soul Entertainment, Inc. 132 E. Putnam Ave., Floor 2W, Cos Cob, Connecticut 06807, telephone number (855) 398-0443.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>Lead Bookrunner</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">Ladenburg Thalmann</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">[*] 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>&#8203;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>INFORMATION NOT REQUIRED
IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 13.</B></TD><TD><B>Other Expenses of Issuance and Distribution.</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The estimated expenses in connection with
the sale of the securities being registered hereby, are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt; text-align: left">SEC registration fee</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3,732</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">FINRA filing fee</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Nasdaq listing fees and expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Accounting fees and expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">50,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Legal fees and expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">185,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Printing expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Road show expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Transfer agent fees and expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">20,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Miscellaneous (1)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,268</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; padding-bottom: 2.5pt">Total</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">350,000</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">(1) This amount represents additional expenses
that may be incurred by the Company in connection with the offering, including distribution and mailing costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 14.</B></TD><TD><B>Indemnification of Directors and Officers.</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The certificate of incorporation
and by-laws of Chicken Soup for the Soul Entertainment Inc. (&ldquo;CSSE&rdquo;) provide that all directors and officers shall
be entitled to be indemnified by such company to the fullest extent permitted by law. The certificate of incorporation provides
that CSSE may indemnify to the fullest extent permitted by law all employees. CSSE&rsquo;s by-laws provide that, if authorized
by the Board of Directors, it may indemnify any other person whom it has the power to indemnify under section 145 of the Delaware
General Company Law. Section 145 of the Delaware General Company Law concerning indemnification of officers, directors, employees
and agents is set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&ldquo;Section 145. Indemnification
of officers, directors, employees and agents; insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A corporation shall
have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of
the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted
in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation,
and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person&rsquo;s conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere
or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the
person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal
action or proceeding, had reasonable cause to believe that the person&rsquo;s conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A corporation shall
have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses
(including attorneys&rsquo; fees) actually and reasonably incurred by the person in connection with the defense or settlement
of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court
of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such expenses which the Court of Chancery or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that
a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action,
suit or proceeding referred to in subsections (a) and (b) of this section, or in defense of any claim, issue or matter therein,
such person shall be indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person
in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
indemnification under subsections (a) and (b) of this section (unless ordered by a court) shall be made by the corporation only
as authorized in the specific case upon a determination that indemnification of the present or former director, officer, employee
or agent is proper in the circumstances because the person has met the applicable standard of conduct set forth in subsections
(a) and (b) of this section. Such determination shall be made, with respect to a person who is a director or officer of the corporation
at the time of such determination, (1) by a majority vote of the directors who are not parties to such action, suit or proceeding,
even though less than a quorum, or (2) by a committee of such directors designated by majority vote of such directors, even though
less than a quorum, or (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written
opinion, or (4) by the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses
(including attorneys&rsquo; fees) incurred by an officer or director of the corporation in defending any civil, criminal, administrative
or investigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action,
suit or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it shall
ultimately be determined that such person is not entitled to be indemnified by the corporation as authorized in this section. Such
expenses (including attorneys&rsquo; fees) incurred by former directors and officers or other employees and agents of the corporation
or by persons serving at the request of the corporation as directors, officers, employees or agents of another corporation, partnership,
joint venture, trust or other enterprise may be so paid upon such terms and conditions, if any, as the corporation deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indemnification and advancement of expenses provided by, or granted pursuant to, the other subsections of this section shall not
be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under
any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person&rsquo;s official
capacity and as to action in another capacity while holding such office. A right to indemnification or to advancement of expenses
arising under a provision of the certificate of incorporation or a bylaw shall not be eliminated or impaired by an amendment to
such provision after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative
action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the
time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee
or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and
incurred by such person in any such capacity, or arising out of such person&rsquo;s status as such, whether or not the corporation
would have the power to indemnify such person against such liability under this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this section, references to &ldquo;the corporation&rdquo; shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so
that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at
the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, shall stand in the same position under this section with respect to the resulting or surviving
corporation as such person would have with respect to such constituent corporation if its separate existence had continued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this section, references to &ldquo;other enterprises&rdquo; shall include employee benefit plans; references to &ldquo;fines&rdquo;
shall include any excise taxes assessed on a person with respect to any employee benefit plan; and references to &ldquo;serving
at the request of the corporation&rdquo; shall include any service as a director, officer, employee or agent of the corporation
which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to
be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner
 &ldquo;not opposed to the best interests of the corporation&rdquo; as referred to in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indemnification and advancement of expenses provided by, or granted pursuant to, this section shall, unless otherwise provided
when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, executors and administrators of such a person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Court of Chancery is hereby vested with exclusive jurisdiction to hear and determine all actions for advancement of expenses or
indemnification brought under this section or under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise.
The Court of Chancery may summarily determine a corporation&rsquo;s obligation to advance expenses (including attorneys&rsquo;
fees).&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons pursuant
to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment of expenses incurred or paid by a director, officer or controlling person in a
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to the court of appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Securities Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Paragraph B of Article
Eight of CSSE&rsquo;s certificate of incorporation provides:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&ldquo;The Company, to the full extent permitted
by Section 145 of the GCL, as amended from time to time, shall indemnify all persons whom it may indemnify pursuant thereto. Expenses
(including attorneys&rsquo; fees) incurred by an officer or director in defending any civil, criminal, administrative, or investigative
action, suit or proceeding for which such officer or director may be entitled to indemnification hereunder shall be paid by the
Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of
such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by
the Company as authorized hereby.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 15.</B></TD><TD STYLE="text-align: justify"><B>Recent Sales of Unregistered Securities</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Set forth below is information
regarding shares of capital stock issued by us during the last three years. Also included is the consideration received by us for
such shares and information relating to the section of the Securities Act, or rule of the Securities and Exchange Commission, under
which exemption from registration was claimed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><U>Share Issuance and
Warrants</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On July 23, 2019 we issued
40,000 shares of our Series A Preferred Stock to a single investor in a private placement for $25.00 pursuant to the exemption
from registration under Section 4(a)(2) of the Securities Act and Rule 506 promulgated thereunder. The investor received customary
registration rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On June 25, 2019, we
issued 40,000 shares of our Series A Preferred Stock to a single investor in a private placement for $25.00 per share for aggregate
gross proceeds of $1 million. We were required to reimburse the investor&rsquo;s expenses in connection with the sale, including
expenses related to due diligence and legal, equal to 8% of the gross proceeds. The investor received customary registration rights.
Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act and
Regulation D promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In May 2019, in connection
with the consummation of our joint venture, Crackle Plus, we issued to CPEH warrants to purchase (a) 800,000 shares of Class A
Common Stock at an exercise price of $8.13 per share; (b)&nbsp; 1,200,000 shares of Class A Common Stock at an exercise price of
$9.67 per share; (c)&nbsp; 380,000 shares of Class A Common Stock at an exercise price of $11.61 per share; and (d) 1,620,000 shares
of Class A Common Stock at an exercise price of $11.61 per share. All of such warrants have a five-year term commencing on the
closing and are exercisable during such term. CPEH has registration rights with respect to the shares of Class A Common Stock underlying
the warrants. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Additionally, we issued
to Crackle (now CPEH) 37,000 units of preferred equity of Crackle Plus and 1,000 units of common equity of Crackle Plus. From May
2020 to October 2020 (&ldquo;Exercise Period&rdquo;), CPEH will have the right to either convert its preferred equity into common
equity of Crackle Plus or require us to purchase all, but not less than all, of its interest in Crackle Plus (&ldquo;Put Option&rdquo;).
We may elect to pay for such interest in cash or through the issuance of Series A Preferred Stock using a price per share of $25.
CPEH has registration rights with respect to any shares of Series A Preferred Stock it may be issued in connection with the Put
Option. Subject to certain limitations, in the event that CPEH has not converted its preferred equity into common equity of Crackle
Plus or exercised its Put Option, CPEH shall be deemed to have automatically exercised the Put Option on the last day of the Exercise
Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In December 2018 we completed
our acquisition of all of the capital stock of A Sharp Inc. (dba &ldquo;A Plus&rdquo;) for an aggregate purchase price of $15,000,000,
paid as follows: (i) a reduction by approximately $3.3 million of advances owed by A Plus to the Company, (ii) the issuance of
350,299 Class A Common Stock at a share price of $8.35 totaling a value of approximately $2,925,000 to the individual sellers and
(iii) the remaining in cash to CSS in consideration of all of its shares of A Plus as an offset to amounts due pursuant to the
intercompany cash management system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In August 2018, we completed
our acquisition of all the capital stock of Pivotshare for approximately $258,000 in cash, the issuance of 134,000 shares of Series
A Preferred Stock and the issuance of 74,235 shares of Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In November 2017, we
completed our acquisition of all the membership interests of Screen Media for approximately $4.9 million in cash and the issuance
of 35,000 shares of our Class A Common Stock and our Class Z Warrants exercisable into 50,000 shares of our Class A Common Stock
at $12 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Between June 2016 and
June 2017, the Company sold a total of an aggregate of approximately $2.5 million of Class A Common Stock and warrants in private
placements. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder, as fewer than 35 investors were non-accredited investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Beginning in June 2016
and through November 2016, the Company sold in a separate private placement to accredited investors $1.0 million of units, consisting
of an aggregate of 170,960 shares of Class A Common Stock and Class W Warrants to purchase an aggregate of 51,288 shares of Class
A Common Stock. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Beginning in December
2016 and through March 2017, the Company sold in a separate private placement to accredited investors approximately $1.0 million
of units, consisting of an aggregate of 150,112 shares of Class A Common Stock and Class W Warrants to purchase an aggregate of
45,034 shares of Class A Common Stock. Such securities were issued pursuant to the exemption from registration contained in Section
4(a)(2) of the Securities Act and Regulation D promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During May and June 2017,
the Company sold in two separate equity private placements, a total of an aggregate of 55,000 shares of Class A Common Stock and
Class Z Warrants to purchase an aggregate of 50,000 shares of Class A Common Stock. Such securities were issued pursuant to the
exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In June 2017, at the
election of certain holders of the Company&rsquo;s notes payable (&ldquo;Term Notes&rdquo;), the Company converted approximately
$0.9 million of Term Notes into 102,060 shares of Class A Common Stock at a conversion price per share of $9 and issued Class Z
Warrants to purchase an aggregate of 30,618 shares of Class A Common Stock at $12 per share, to those noteholders that elected
to convert. The securities issued upon conversion of the Term Notes were issued pursuant to the exemption from registration contained
in Section 3(a)(9) of the Securities Act, as the Term Notes were exchanged for securities exclusively, and no commission or other
remuneration was paid or given directly or indirectly for soliciting such exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><U>Grants of Stock Options
and Restricted Stock</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In February 2020 the
Company issued an aggregate of 7,805 shares of its Class A Common stock to five directors pursuant to the Company&rsquo;s non-employee
director compensation policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In August 2019 the Company
issued an aggregate of 6,959 shares of its Class A Common Stock to four directors pursuant to the Company&rsquo;s non-employee
director compensation policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In May 2019, in connection
with the creation of Crackle Plus and the employment by the Company of certain key employees of Crackle, Inc., the Company granted
five-year options to purchase up to 15,000 shares of the Company&rsquo;s Class A Common Stock to an employee and five year options
to purchase up to 25,000 shares of the Company&rsquo;s Class A Common Stock to two employees. All of the options vest in twelve
equal quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In March 2019 the Company
granted five-year options to purchase up to 75,000 and 100,000 shares of the Company&rsquo;s Class A Common Stock to a non-management
employee and an officer, respectively, that vest in twelve equal quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In February 2019 the
Company granted five-year options to purchase up to 10,000 and 20,000 shares of the Company&rsquo;s Class A Common Stock to two
non-management employees that vest in twelve equal quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In January 2019 the Company
granted five-year options to purchase up to 20,000 shares of the Company&rsquo;s Class A Common Stock to an officer and five year
options to purchase up to 100,000 shares of the Company&rsquo;s Class A Common Stock to two officers. All the options vest in twelve
equal quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In August 2018, in connection
with the Company&rsquo;s acquisition of Pivotshare and the employment by the Company of certain key employees of Pivotshare, the
Company granted five-year options to purchase 7,500 and 15,000 shares of the Company&rsquo;s Class A Common Stock to two employees
that vest in three equal annual installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;In January 2018
the Company granted a five-year option to purchase up to 10,000 shares of the Company&rsquo;s Class A Common Stock to an employee
that vests in twelve equal quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In December 2017, in
connection with the Company&rsquo;s acquisition of Screen Media Ventures and the employment by the Company of certain key employees
of Screen Media Ventures, the Company granted a five-year option to purchase up to 75,000 shares of the Company&rsquo;s Class A
Common Stock to an employee that vests in twelve quarterly installments and a five-year option to purchase up to 50,000 shares
of the Company&rsquo;s Class A Common Stock to another employee that vests in semi-annual installments over a three year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In October 2017 the Company
granted a five-year option to purchase up to 50,000 shares of the Company&rsquo;s Class A Common Stock to an employee that vests
in twelve quarterly installments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In March 2017 the Company
granted a five-year option to purchase up to 75,000 shares of the Company&rsquo;s Class A Common Stock to an employee that vests
in quarterly installments of 6,250 shares commencing June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In January 2017, the
Company granted five-year options to purchase up to 100,000 shares of the Company&rsquo;s Class A Common Stock to three officers
that vest in eight equal quarterly installments commencing March 31, 2017 and which are exercisable at $6.50 per share. In 2017,
the Company granted additional options to non-management grantees to purchase up to an aggregate of 390,000 shares at exercise
prices between $6.50 and $9.74. All of these options were granted under the Company&rsquo;s 2017 Long-Term Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The shares of restricted
stock, and the stock options and Class A Common Stock issuable upon the exercise of such stock options, as described above were
issued pursuant to written compensatory plans or arrangements with our officers, directors, and employees, including the 2017 Long
Term Incentive Plan. Prior to March 2018, such grants were made in reliance on the exemption set forth in Section 4(a)(2) under
the Securities Act. On March 20, 2018, the Company&rsquo;s Registration Statement on Form S-8 to register the shares of Class A
Common Stock issued and issuable pursuant to the Company&rsquo;s 2017 Long Term Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 16.</B></TD><TD><B>Exhibits</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">A list of the exhibits required by Item 601 of Regulation S-K
to be filed as part of this registration statement is set forth in the Exhibit Index on page II-9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 17.</B></TD><TD><B>Undertakings</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">(6) That for
the purpose of determining any liability under the Securities Act of 1933 in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(i) any preliminary
prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(ii) any free
writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the
undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(iii) the portion
of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">(iv) any other
communication that is an offer in the offering made by the undersigned to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Cos Cob, Connecticut, on the 15th day of June, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>CHICKEN SOUP FOR THE SOUL </B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>ENTERTAINMENT INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 45%; text-align: justify; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ William J. Rouhana, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">William J. Rouhana, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position</B></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 5%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; width: 33%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
William J. Rouhana Jr.</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 41%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman
and Chief Executive </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 19%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
J. Rouhana Jr.</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Officer
(Principal Executive Officer)</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Scott W. Seaton</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice
Chairman and Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott
W. Seaton</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Christopher Mitchell</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
Financial Officer (Principal Financial Officer)</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher
Mitchell</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Daniel Sanchez</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
Accounting Officer (Principal Accounting Officer)</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daniel
Sanchez</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Amy Newmark</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amy
Newmark </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Cosmo DeNicola</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cosmo
DeNicola </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Fred Cohen</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fred
Cohen </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Christina Weiss Lurie</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christina
Weiss Lurie </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Diana Wilkin</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diana
Wilkin</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Martin Pompadur</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
 &nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin
Pompadur </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">                                                                                                                                                                                                                                                                                                                                                                                                                              <TR STYLE="vertical-align: top">
<TD STYLE="border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD>&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">Description</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"><A HREF="tm2022585d2_ex1-1.htm" STYLE="-sec-extract: exhibit">1.1</A></TD>
    <TD STYLE="width: 0.25in">&nbsp;</TD><TD STYLE="text-align: justify"><A HREF="tm2022585d2_ex1-1.htm" STYLE="-sec-extract: exhibit">Form of Underwriting Agreement between the Company and Ladenburg Thalmann &amp; Co., Inc., as representative of the several
underwriters named therein (1)</A></TD></TR>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420416124763/filename3.htm" STYLE="-sec-extract: exhibit">3.1</A></TD>
    <TD>&nbsp;</TD><TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420416124763/filename3.htm" STYLE="-sec-extract: exhibit">Certificate of Incorporation (2)</A></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420416124763/filename4.htm" STYLE="-sec-extract: exhibit">3.2</A></TD>
    <TD>&nbsp;</TD><TD><A HREF="http://www.sec.gov/Archives/edgar/data/1679063/000114420416124763/filename4.htm" STYLE="-sec-extract: exhibit">Bylaws (2)</A></TD></TR>

<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><A HREF="tm2022585d2_ex4-1.htm" STYLE="-sec-extract: exhibit">4.1</A></TD>
    <TD>&nbsp;</TD><TD><A HREF="tm2022585d2_ex4-1.htm" STYLE="-sec-extract: exhibit">Form of Indenture, by and between the Company and U.S. Bank National Association (1)</A></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><A HREF="tm2022585d2_ex4-2.htm" STYLE="-sec-extract: exhibit">4.2</A></TD>
    <TD>&nbsp;</TD><TD><A HREF="tm2022585d2_ex4-2.htm" STYLE="-sec-extract: exhibit">Form of Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (1)</A></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><A HREF="tm2022585d2_ex4-2.htm" STYLE="-sec-extract: exhibit">4.3</A></TD>
    <TD>&nbsp;</TD><TD><A HREF="tm2022585d2_ex4-2.htm" STYLE="-sec-extract: exhibit">Form of [*]% Notes due 2025 (included as Exhibit A to the Form of Supplemental Indenture
filed as Exhibit 4.2)</A></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex5-1.htm" STYLE="-sec-extract: exhibit">5.1</A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex5-1.htm" STYLE="-sec-extract: exhibit">Opinion of Graubard Miller (1)</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex23-1.htm" STYLE="-sec-extract: exhibit">23.1</A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex23-1.htm" STYLE="-sec-extract: exhibit">Consent of Rosenfield and Company, PLLC (1)</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex23-2.htm" STYLE="-sec-extract: exhibit">23.2</A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex23-2.htm" STYLE="-sec-extract: exhibit">Consent of PricewaterhouseCoopers LLP (1)</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex5-1.htm" STYLE="-sec-extract: exhibit">23.3</A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm2022585d2_ex5-1.htm" STYLE="-sec-extract: exhibit">Consent of Graubard Miller (included in its opinion filed as Exhibit 5.1)</A></TD></TR>

<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><A HREF="tm2022585d2_ex99-1.htm" STYLE="-sec-extract: exhibit">99.1</A></TD>
<TD STYLE="width: 0.5in">&nbsp;</TD><TD><A HREF="tm2022585d2_ex99-1.htm" STYLE="-sec-extract: exhibit">Unaudited Pro Forma Condensed Consolidated Financial Information as of and for the year ended December 31, 2019 (1)</A></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD><FONT STYLE="font-size: 10pt">Filed herewith.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>Incorporated by reference to the Registrant&rsquo;s Registration Statement on Form 1-A (SEC File No. 024-10704).</TD></TR></TABLE>

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[{"type": "S-1", "sequence": "1", "filename": "tm2022585-2_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 542703}]
{"company-data": {"conformed-name": "Chicken Soup for the Soul Entertainment, Inc.", "cik": "0001679063", "assigned-sic": "7819", "irs-number": "812560811", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-239198", "film-number": "20964614"}, "business-address": {"street1": "132 E. PUTNAM AVE", "city": "COS COB", "state": "CT", "zip": "06807", "phone": "203-861-4000"}, "mail-address": {"street1": "PO BOX 700", "city": "COS COB", "state": "CT", "zip": "06807"}}
As filed with the
Securities and Exchange Commission on June 15, 2020
Registration No. 333-
_______
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
CHICKEN
SOUP FOR THE SOUL ENTERTAINMENT INC.
(Exact name of registrant as specified in its charter)
Delaware
7819
81- 2560811
(State or other jurisdiction of
(Primary Standard Industrial
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification Number)
132 E. Putnam Avenue,
Floor 2W
Cos
Cob, CT 06807
(855) 398-0443
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)
William J. Rouhana,
Jr., Chairman and Chief Executive Officer
Chicken Soup for the
Soul Entertainment Inc.
132 E. Putnam Avenue, Floor 2W
Cos Cob, CT 06807
(855) 398-0443
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies to:
David Alan Miller,
        Esq.
Brian L. Ross, Esq.
Melissa M. Curvino,
        Esq.
Graubard Miller
The Chrysler Building
405 Lexington Avenue
New York, New York
        10174
Telephone: (212) 818-8800
Facsimile: (212) 818-8881
Brad L. Shiffman, Esq.
Blank Rome LLP
1271 Avenue of the
        Americas
New York, New York
        10020
Telephone: (212) 885-5000
Facsimile: (212) 885-5001
Approximate date of commencement of proposed
sale to the public:
As soon as practicable after the effective date of this registration statement.
If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933 check the following box.
¨
If this Form is filed
to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a
post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company
or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
Smaller reporting company
x
Emerging growth company
x
If an emerging growth company, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
¨
CALCULATION OF REGISTRATION
FEE
Title of each class of
securities to be registered (1)
Proposed maximum
aggregate
offering price (1)(2)
Amount of
registration fee
[%] Notes due 2025
$
28,750,000
$
3,731.75
Total
$
3,731.75
(1)
Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933,
as amended.
(2)
Includes up to $3,750,000 in aggregate principal amount of additional notes which may be issued upon the exercise of a 30-day
option granted to the underwriters to cover overallotments, if any.
The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.
The
information in this prospectus is not complete and may be changed. We may not sell these securities or until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities
and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Preliminary Prospectus
Subject to Completion
Dated June 15
,
                                                                                                                           2020
$25,000,000
[*]% Notes due 2025
We are offering $25.0 million in aggregate principal amount
of [*]% notes due 2025, which we refer to as the "Notes." The Notes will mature on [*], 2025. We will pay interest
on the Notes on March 30, June 30, September 30 and December 30 each year, beginning on September 30, 2020. We may redeem the Notes
in whole or in part at any time, or from time to time on or after [*], 2022, at the redemption price of par plus accrued interest,
as discussed under the caption "
Description of the Notes — Optional Redemption
" in this
prospectus. The Notes will be issued in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof.
The Notes will be issued under and subject
to the terms of an indenture, a copy of which has been filed as an exhibit to the registration statement to which this prospectus
is a part. The Notes will be our direct unsecured obligations and rank
pari passu
to all of our currently outstanding unsecured
unsubordinated indebtedness. We will have the ability to issue additional debt securities with terms different from the Notes without
the consent of the holders of the Notes. If we issue additional debt securities, these additional debt securities could rank higher
in priority of payment or have a lien or other security interest greater than that accorded to the holders of the Notes. Because
the Notes will not be secured by any of our assets, they will be effectively subordinated to all our existing and future secured
indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the
value of the assets securing such indebtedness. The repayment of the Notes will not be guaranteed. In any liquidation, dissolution,
bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness may assert rights against
the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be
used to pay other creditors, including the holders of the Notes.
We intend to list the Notes on the Nasdaq
Global Market under the trading symbol "[*]" and we expect trading to commence within 30 days of the original issue
date, however we cannot guarantee that the Notes will be approved for listing on the Nasdaq Global Market or any market. The Notes
are expected to trade "flat." This means that purchasers will not pay, and sellers will not receive, any accrued and
unpaid interest on the Notes that is not included in the trading price. Currently, there is no public market for the Notes and
there can be no assurance that one will develop.
We are an "emerging growth company"
as defined in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting
requirements.
Investing in the Notes involves significant
risks. Please read "
Risk Factors
" on page 11 of this prospectus and in the documents incorporated by reference
into this prospectus.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved the Notes or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
You should read this prospectus and any
supplements and amendments thereto.
Per Note
Total
(1)(2)
Public offering price
$
25.000
$
25,000,000
Underwriting discount
$
1.250
$
1,250,000
Proceeds, before expenses, to us
(2)
$
23.750
$
23,750,000
(1)
Ladenburg Thalmann, as representative of the underwriters, may exercise an option to purchase up to an additional $3,750,000
aggregate principal amount of Notes offered hereby, within 30 days of the date of this prospectus. If this option is exercised
in full, the total public offering price will be $28,750,000, the total underwriting discount paid by us will be $1,437,500, and
total proceeds to us, before expenses, will be approximately $27,312,500.
(2)
Total expenses of the offering payable by us, excluding underwriting discounts and commissions, are estimated to be $350,000.
THE NOTES ARE NOT DEPOSITS OR OTHER OBLIGATIONS
OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
Delivery of the Notes in book-entry form
only through The Depository Trust Company will be made on or about [*], 2020.
Lead
    Bookrunner
Ladenburg
    Thalmann
Prospectus
    dated [*], 2020
TABLE OF CONTENTS​​
Page
PROSPECTUS SUMMARY
1
SPECIFIC TERMS OF THE NOTES AND THE OFFERING
6
RISK FACTORS
11
USE OF PROCEEDS
25
CAPITALIZATION
26
DESCRIPTION OF THE NOTES
27
CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
37
UNDERWRITING
40
LEGAL MATTERS
43
EXPERTS
43
WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION BY REFERENCE
43
i
ABOUT THIS PROSPECTUS
This prospectus is
part of a registration statement on Form S-1 (the "Registration Statement") that we have filed with the Securities
and Exchange Commission (the "SEC"). This prospectus provides you with a general description of the securities we may
offer. You should read this prospectus together with the additional information described under the heading "
Where You
Can Find More Information; Information Incorporated by Reference
" beginning on page 43 of this prospectus.
You should rely only on the information
contained or incorporated by reference in this prospectus. We have not authorized anyone to provide you with different information
and, if provided, such information or representations must not be relied upon as having been authorized by us. This prospectus
shall not constitute an offer to sell or a solicitation of an offer to buy offered securities in any jurisdiction in which it is
unlawful for such person to make such an offering or solicitation. This prospectus does not contain all of the information included
in the registration statement. For a more complete understanding of the offering of the securities, you should refer to the registration
statement, including its exhibits.
You should not assume
that the information appearing in this prospectus is accurate as of any date other than the date on the front cover of this prospectus.
You should not assume that the information contained in any documents incorporated by reference herein is accurate as of any date
other than the respective dates of those documents. Our business, financial condition, results of operations, and prospects may
have changed since that date.
You should carefully read this entire prospectus,
including the information included and referred to under "
Risk Factors
" below, the information incorporated
by reference in this prospectus, and the financial statements and the other information incorporated by reference in this prospectus,
before making an investment decision. You should also read and consider the information in the documents to which we have referred
you in the section of this prospectus entitled "
Where You Can Find More Information; Incorporation by Reference
."
This prospectus contains summaries of certain
provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information.
All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein
have been or will be filed as exhibits to the registration statement of which this prospectus is a part or as exhibits to documents
incorporated by reference herein, and you may obtain copies of those documents as described below under the headings "
Where
You Can Find More Information; Incorporation by Reference
." We note that the representations, warranties and covenants
made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein were made solely
for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties
to such agreement, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations,
warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants
should not be relied on as accurately representing the current state of our affairs.
The industry and market data and other statistical
information, if any, contained in this prospectus and in the documents we incorporate by reference are based on our own estimates,
independent publications, government publications, reports by market research firms or other published independent sources, and,
in each case, are believed by us to be reasonable estimates. Although we believe these sources are reliable, we have not independently
verified the information.
ii
CERTAIN CORPORATE INFORMATION AND DEFINITIONS
Our company, Chicken Soup for the Soul Entertainment,
Inc., is referred to in this prospectus as "CSSE," the "Company," or "we" or similar pronouns.
References to:
·
"CSS Productions" means Chicken Soup for the Soul Productions, LLC, our immediate parent;
·
"CSS" means Chicken Soup for the Soul, LLC, our intermediate parent company;
·
"CSS Holdings" means Chicken Soup for the Soul Holdings, the parent company of CSS and our ultimate parent company;
·
"Screen Media" means Screen Media Ventures, LLC, a wholly owned subsidiary of CSSE;
·
"A Plus" means A Sharp Inc. (d/b/a A Plus), a wholly owned subsidiary of CSSE;
·
"Pivotshare" means Pivotshare, Inc., a wholly owned subsidiary of CSSE.
·
"Crackle Plus" means Crackle Plus, LLC, a company formed by CSSE and CPE Holdings, Inc. (an affiliate of Sony Pictures
Television Inc.); and
·
"Landmark Studio Group" means Landmark Studio Group LLC, a majority owned subsidiary of CSSE.
We and our subsidiaries
and affiliates have proprietary rights to the trademarks and trade names used herein, including, among others, Chicken Soup for
the Soul®, Crackle®, Popcornflix.com®, Popcornflix Kids®, Truli®, and FrightPix®. Solely as a matter of
convenience, trademarks and trade names referred to herein may or may not be accompanied with the marks of "TM" or
 "®", however, the absence of such marks is not intended to indicate that the Company or its affiliates or subsidiaries
will not assert, to the fullest extent possible under applicable law, their respective rights to such trademarks and trade names.
iii
NOTE ON FORWARD-LOOKING STATEMENTS
The statements contained
in this prospectus and in the documents incorporated by reference in this prospectus that are not purely historical are forward-looking
statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions
or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations
of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipates,"
 "believes," "continues," "could," "estimates," "expects," "intends,"
 "may," "might," "plans," "possible," "potential," "predicts,"
 "projects," "should," "would" and similar expressions may identify forward-looking statements,
but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this prospectus
and in the documents incorporated by reference in this prospectus may include, for example, statements about:
·
our limited operating history;
·
our financial performance, including our ability to generate revenue;
·
the outbreak of the novel coronavirus ("COVID-19"), including the measures to reduce
its spread, and the impact on the economy and demand for our services, which may precipitate or exacerbate other risks and uncertainties our
financial performance, including our ability to generate revenue;
·
potential effects of a challenging economy, for example, on the demand for our advertising and
marketing services, on our clients' financial condition and on our business or financial condition;
·
the ability of our content offerings to achieve market acceptance;
·
the impact of increased competition;
·
our success in retaining or recruiting, or changes required in, our officers, key employees or
directors;
·
our potential ability to obtain additional financing when and if needed;
·
our ability to protect our intellectual property;
·
our ability to complete strategic acquisitions, including joint ventures and co-production arrangements;
·
our ability to manage growth and integrate acquired operations;
·
uninterrupted service by the third-party service providers we rely on for the distribution of our
content and delivery of ad impressions;
·
the potential liquidity and trading of our securities;
·
downward revisions to, or withdrawals of, our credit ratings by third-party rating agencies;
·
regulatory or operational risks;
·
our estimates regarding expenses, future revenue, capital requirements and needs for additional
financing; and
·
the time during which we will be an Emerging Growth Company ("EGC") under the Jumpstart
Our Business Startups Act of 2012, or JOBS Act.
The
forward-looking statements contained in this prospectus and in the documents incorporated by reference in this prospectus are
based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no
assurance that future developments will be those that have been anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, those risk factors incorporated by reference or described in the section
titled "
Risk Factors
." Should one or more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking
statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under applicable securities laws.
iv
PROSPECTUS SUMMARY
The information below is only a summary
of more detailed information included elsewhere or incorporated by reference in this prospectus. This summary may not contain all
the information that is important to you or that you should consider before making a decision to invest in the Notes. Please read
this entire prospectus, including the risk factors, as well as the information incorporated by reference in this prospectus, carefully.
Overview
Chicken Soup for the
Soul Entertainment Inc. operates streaming video-on-demand networks ("VOD"). The Company owns a majority stake in Crackle
Plus, a company formed with an affiliate of Sony Pictures Television Inc., which owns and operates a variety of ad-supported and
subscription-based VOD networks including Crackle®, Popcornflix, Popcornflix Kids®, Truli®, Pivotshare, Españolflix
and FrightPix®. The Company also acquires and distributes video content through Screen Media and produces long and short-form
original content through subsidiaries and outside partnerships. The content acquired or produced by the Company is sometimes used
exclusively on our networks and is generally also sold to others with the goal of providing our networks access to original and
exclusive advertising-supported online video-on-demand ("AVOD") content at a lower cost and to generate additional
revenue and operating cash flow for the Company.
Our majority-owned
Crackle Plus subsidiary was formed in partnership with Sony Pictures Television Inc. in May 2019. Crackle Plus is one of the largest,
independent AVOD network groups in the United States, with viewers streaming an average of approximately 30 million programs per
month. The popular network, Crackle®, is the largest Crackle Plus network and a top performer on the industry-leading Roku
platform. Our VOD networks deliver popular and original new content covering a wide range of themes, including family, children
and faith, as well as proven genres, such as horror and comedy.  We are differentiated among other VOD network operators
by our ability to generate original content cost-effectively and by our access to more than 78,000 hours of programming.  Our
Screen Media subsidiary has one of the largest independently owned television and film libraries in the industry and provides
content to the Crackle Plus networks and third-party networks. Our VOD networks also feature original content produced through
our subsidiaries, Landmark Studio Group and A Plus. Our exclusive, perpetual, sublicensable and worldwide license, to create and
distribute video content under the Chicken Soup for the Soul® brand (the "Brand") also allows us to create new
Brand-focused AVOD channels, which we expect to do in the future.
We believe CSSE is
the only independent AVOD network operator with the proven capability to create and distribute original programming and access
to an extensive amount of valuable company-owned and third-party library content.  We believe this differentiation is
important at a time of a major shift in consumer viewing habits, as the growth in both availability and quality of high-speed broadband
enables consumers to consume video content at any time on any device.
According to industry
projections, the global market for AVOD network revenue is expected to increase at a compound annual growth rate of 21% between
2018 and 2024, reaching $56 billion by the end of the period.  At the same time, advertising spending on linear television
networks is expected to decline as more viewers transition from pay television subscriptions to online video viewing.  We
believe AVOD networks will grow rapidly as consumers seek affordable programming alternatives to multiple subscription video-on-demand
("SVOD") offerings.
In this environment,
our strategy is to build a leading VOD network featuring a range of mass-appeal and thematic programming options.  We
are executing on this strategy in three ways:
•
Increasing content.
Our "originals and exclusives" focus, supported by
our distribution and production business, is designed to distinguish our network brands among viewers.  We are able to
add to our existing broad base of content without the significant capital outlay of a traditional television or film studio by
producing new originals at low cost through creative partnerships, such as our award-winning 2019 series
Going from Broke
.
Through Screen Media, we are also acquiring the rights to additional exclusive content. Finally, we are expanding our production
capacity through partnerships, the formation of our majority owned subsidiary Landmark Studio Group and acquiring additional content
libraries, such as our recent acquisition of the Foresight Unlimited film library.
•
Growing and retaining audience while adding new networks.
Our goal is to utilize
our increasing, exclusive access to quality programming to grow and retain viewers on our existing networks.  As we grow
our content libraries, we are also continuously evaluating opportunities to create new thematic networks that feature certain genres
and other types of programming that can deliver more targeted advertising opportunities to marketers such as a Chicken Soup for
the Soul network for families.  Finally, we are also actively evaluating opportunities to acquire additional AVOD networks
that can accelerate our path to scale.
•
Building our advertising sales capability.
As
    we grow our stable of networks, we are investing in integration of advertising platform technology stacks and the growth of
    our sales force.  As our advertising sales capability matures, we believe we will be positioned to increase both
    overall advertising sales and ad insertion rates.
1
Business Strategy
We are a media company operating Crackle Plus, our AVOD and
SVOD network groups, supported by our distribution and production capabilities. Our goal is to grow our network platform organically
and through consolidation to establish a leading AVOD business positioned to capture ad revenue as that revenue increasingly moves
from linear TV to online video.
Our two main areas
of operation are:
Online Networks.
We
distribute and exhibit VOD content directly to consumers across all digital platforms, such as connected TVs, smartphones, tablets,
gaming consoles and the web through our owned and operated AVOD Crackle Plus networks. We also distribute our own and third-party
owned content to consumers across various digital platforms through our SVOD network, Pivotshare. We generate advertising revenues
primarily by serving video advertisements to our streaming viewers on our AVOD networks and subscription revenues from customers
on our SVOD network.
Our acquisition of
Screen Media in 2017 marked our entry into the direct-to-consumer online VOD market through Popcornflix, which has an extensive
footprint with apps that have been downloaded more than 27 million times.
Popcornflix is one
of the largest AVOD services. Under the Popcornflix brand, we operate a series of direct-to consumer advertising supported channels.
As a "free-to-consumer" digital streaming channel, Popcornflix is an extremely popular online video platform that can
be found on the web, iPhones and iPads, Android products, Roku, Xbox, Amazon Fire, Apple TV, Chromecast and Samsung and Panasonic
internet connected televisions, among others. Popcornflix is currently available in 61 countries, including the United States,
United Kingdom, Canada, Australia, Germany, France, and Singapore, with additional territories to be added.
In October 2018, we
completed the acquisition of the assets of Truli Media Corp., which operates a nascent global family-friendly and faith-based online
video channel ("Truli"). Truli's content fits strategically in our thematic network plans and includes film,
television, music videos, sports, comedy, and educational material.
In May 2019, we launched
a new streaming video subsidiary known as Crackle Plus, through which we operate VOD networks including, Crackle and Popcornflix.
Viewers are able to watch premium video content, such as films and TV shows on our networks. The networks are accessible through
various internet connected digital devices such as mobile, tablet, smart TV and console. The networks primarily earn revenue from
advertisements placed on the platform through direct and reseller channels. Our entry into subscription-based VOD was initiated
by our acquisition of the Pivotshare VOD platform in August 2018. All of our VOD operations are currently in our Crackle Plus subsidiary.  As
a result, Crackle Plus, is one of the largest AVOD companies in the United States as well as a targeted SVOD network provider.  Within
Crackle Plus we have been primarily focused on growing our AVOD networks and may turn more attention to our SVOD opportunities
in the future.
Television and Film
Distribution and Production.
We distribute movies and television series worldwide, through Screen Media, to consumers
through license agreements across all media, including theatrical, home video, pay-per-view, free, cable, pay television, VOD,
mobile and new digital media platforms worldwide. We own the copyright or long-term distribution rights to over 1,000 television
series and feature films, representing one of the largest independently owned libraries of filmed entertainment in the world.
We have distribution
licensing agreements with numerous VOD services across all major platforms, such as cable and satellite VOD and Internet VOD, which
includes TVOD for rentals or purchases of films, AVOD for free-to-viewer streaming of films supported by advertisements and SVOD
for unlimited access to films for a monthly fee.
Our cable and satellite
VOD distribution agreements include those with DirecTV, Cablevision (Altice USA), Verizon and In Demand (owned by Comcast, Charter
and Time Warner Cable-Spectrum). Our Internet VOD distribution agreements include agreements with Amazon, iTunes, Samsung, YouTube,
Hulu, Xbox, Netflix, Sony, and Vudu, among others.
2
We have expanded our
international distribution capabilities in connection with the acquisition of the Foresight library.
Screen Media's
distribution capabilities across all media give us the ability to monetize various rights to our produced and co-produced television
series and films directly, including our content that will be produced through Landmark Studio Group. The cost savings from Screen
Media's distribution capabilities enhance our revenue and profits from our produced or co-produced content. Furthermore,
Screen Media supports the programming and content needs of our AVOD networks. The ability to monetize film and TV rights through
Screen Media gives us the ability to retain exclusive AVOD rights for some of our acquired or produced films or television series
on a cost advantaged basis.
Historically, we have
produced content in two main ways. We work with sponsors and use highly regarded independent producers to develop and produce our
television and short-form video content, including Brand-related content. We also derive revenue from our subsidiary, A Plus, which
develops and distributes high-quality, empathetic short-form videos to millions of people worldwide. A Plus enhances our ability
to distribute short form versions of our video productions thereby meeting commitments to sponsors and providing us with content
developed and distributed by A Plus that is complementary to the Brand.
As a result of launching
Crackle Plus we decided to change our approach to content production, focusing primarily on co-production partnerships in order
to build our AVOD networks, through Crackle Plus, and our worldwide distribution capabilities through Screen Media. By focusing
this way, we believe that we will be able to grow our business more rapidly by entering into production agreements with a variety
of production partners. In October 2019, we launched Landmark Studio Group, our first production co-venture subsidiary. Landmark
Studio Group is a fully integrated entertainment company focused on ownership, development, and production of quality entertainment
franchises.
Landmark Studio Group
develops, produces, distributes and owns all the intellectual property (IP) it creates, building a valuable library. The studio
is independent, with the ability to sell its content to any network or platform, while also developing and producing original content
for Crackle Plus. Landmark Studio Group controls all worldwide rights and distributes those rights exclusively through Screen Media.
We plan to enter into
other similar co-production arrangements going forward. We will only occasionally produce programming internally.
Competition
We are in a highly
competitive business.  The market for streaming entertainment is rapidly changing. We face competition from companies
within the entertainment business and from alternative forms of leisure entertainment, such as travel, sporting events, outdoor
recreation, video games, the internet and other cultural and computer-related activities. We compete for viewers and programming
with much larger companies which have significant resources and brand recognition, including dominant video on demand providers
such as Netflix, HBO Max (including HBO Go), Hulu, Amazon Prime Video, Disney Plus, Apple TV, Fubo TV, Sling TV, and
major film and television studios.  We also compete with numerous independent motion picture and television distribution and
production companies, television networks, pay television systems and online media platforms for viewers, subscribers, and the
services of performing artists, producers and other creative and technical personnel and production financing, all of which are
essential to the success of our businesses.
In addition, our video
content competes for media outlet and audience acceptance with video content produced and distributed by other companies. As a
result, the success of any of our video content is dependent not only on the quality and acceptance of a particular production,
but also on the quality and acceptance of other competing video content available in the marketplace at or near the same time.
Given such competition,
and our stage of development, we emphasize a lower cost structure, risk mitigation, reliance on financial partnerships and innovative
financial strategies. We rely on our flexibility and agility as well as the entrepreneurial spirit of our employees, partners and
affiliates, in order to provide creative, desirable video content.
Intellectual Property
We are party to a
License Agreement with CSS ("CSS License Agreement") through which we have been granted the perpetual, exclusive,
worldwide license by CSS to produce and distribute video content using the Brand and related content, such as stories
published in the Chicken Soup for the Soul books. Chicken Soup for the Soul and related names are trademarks owned by CSS. We
have the proprietary rights (including copyrights) in all Company-produced content. As a result of the acquisitions of Screen
Media, Pivotshare, Crackle, and other smaller libraries and companies, we now own copyrights or global long-term distribution
rights to approximately
78,000 hours of content.
3
We rely on a combination
of copyright, trademark, trade secret laws, confidentiality procedures, contractual provisions and other similar measures to protect
our proprietary information and intellectual property rights. Our ability to protect and enforce our intellectual property rights
is subject to certain risks and from time to time we encounter disputes over rights and obligations concerning intellectual property,
which are described more fully in the section titled "
Risk Factors
."
Employees
As of June 15, 2020,
we had 98 direct employees. The services of certain personnel, including our chairman and chief executive officer, vice chairman
and chief strategy officer, our senior brand advisor and director, and chief financial officer, among others, are provided to us
under a management services agreement between the Company and CSS. We also utilize many consultants in the ordinary course of our
business and hire additional personnel on a project-by-project basis. We believe that our employee and labor relations are good,
and we are committed to inclusion and strict policies and procedures to maintain a safe work environment.
Implications of Being an Emerging Growth
Company
We are an "emerging
growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As long as we
are an emerging growth company, we are eligible to take advantage of certain exemptions from various reporting requirements that
are applicable to other public companies that are not emerging growth companies. These include, but are not limited to:
·
Not being required to comply with the auditor attestation requirements in the assessment of our
internal control over financial reporting;
·
Not being required to comply with any requirement that may be adopted by the Public Company Accounting
Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors' report providing additional information
about the audit and the financial statements;
·
Reduced disclosure obligations regarding executive compensation; and
·
Exemptions from the requirements of holding a nonbinding advisory vote on executive compensation
and stockholder approval of any golden parachute payments not previously approved.
We may remain an "emerging
growth company" until as late as December 31, 2022, the fiscal year-end following the fifth anniversary of the completion
of our initial public offering, though we may cease to be an emerging growth company earlier under certain circumstances, including
if (a) we have more than $1.07 billion in annual gross revenue in any fiscal year, (b) the market value of our common
stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal
quarter, or (c) we issue more than $1 billion of non-convertible debt over a three-year period.
Summary Risk Factors
An investment in our securities involves
various risks that you should consider carefully before investing in us. Many of these risks are discussed in this prospectus under
the heading "
Risk Factors
" beginning on page 11. If any of these risks occur, our business, financial condition,
liquidity, results of operations, prospects and ability to make interest payments to our noteholders and distributions to our shareholders
could be materially and adversely affected. In that case, the trading price of our securities could decline, and you may lose a
portion or your entire investment. These risks include:
·
The Notes will be unsecured and therefore are effectively subordinated to any secured indebtedness we have incurred or may
incur in the future.
·
The Notes will be structurally subordinated to the indebtedness and other liabilities of our subsidiaries.
·
The indenture under which the Notes are issued contains limited protection for holders of the Notes.
·
An increase in market interest rates could result in a decrease in the value of the Notes.
4
·
There is no existing trading market for the Notes, and, even if Nasdaq approves the listing of the Notes, an active trading
market for the Notes may not develop, which could limit your ability to sell the Notes and/or the market price of the Notes.
·
We may choose to redeem the Notes when prevailing interest rates are relatively low.
·
If we default on our obligations to pay our other indebtedness, we may not be able to make payments on the Notes.
·
We will use a substantial portion of the proceeds of this offering to repay our existing indebtedness under our credit facility
with Patriot Bank, N.A., may use a portion to pay certain obligations to redeem equity owned by CPE Holdings, Inc. (an affiliate
of Sony Pictures Television Inc.) in Crackle Plus, and will have broad discretion with respect to the use of the remaining proceeds
of this offering.
·
We are not obligated to contribute to a sinking fund to retire the Notes and the Notes are not guaranteed by a third-party.
·
We have and may continue to incur losses in the operation of our business.
·
Difficult conditions in the economy generally and our industry specifically resulting from the COVID-19 pandemic may cause
interruptions in our operations, a slow-down in the production or acquisition of new content, and changes in demand for our products
and services.
·
Competition could have a material adverse effect on our business, financial condition and results of operations.
·
Interruptions in our ability to provide our video on demand products and our service to our customers could damage our reputation,
which could have a material adverse effect on us.
·
The occurrence of cyber-incidents, or a deficiency in our cybersecurity or in those of any of our third party service providers,
could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential
information or damage to our business relationships or reputation, all of which could negatively impact our business and results
of operations.
·
The loss of key personnel, including our executive officers, could have a material adverse effect on us.
·
Our inability to recruit or retain qualified personnel, or maintain access to key third-party service providers and software
developers, could have a material adverse effect on us.
·
The market price and trading volume of our securities may be volatile.
Corporate Information
We are a Delaware corporation
formed on May 4, 2016. CSS Productions, our predecessor and immediate parent company, was formed in December 2014 by CSS, and initiated
operations in January 2015. We were formed to create a discrete entity focused on video content opportunities using the Brand.
In May 2016, pursuant to the terms of the contribution agreement among CSS, CSS Productions and the Company, all video content
assets owned by CSS, CSS Productions and their CSS subsidiaries were transferred to the Company in consideration for its issuance
to CSS Productions of 8,600,568 shares of the Company's Class B Common Stock (the "Class B Common Stock"). Thereafter,
CSS Productions' operating activities ceased, and the Company continued the business operations of producing and distributing
the video content.
Our
address is 132 East Putnam Avenue, Floor 2W, Cos Cob, CT 06807. Our telephone number is (855) 398-0443, and our website address
is https://www.cssentertainment.com. The information contained on, or that can be accessed through, our website is not part of
this prospectus.
5
SPECIFIC TERMS OF THE NOTES AND THE
OFFERING
Issuer
Chicken Soup for the Soul Entertainment, Inc.
Title of the Securities
[*]% Notes due 2025
Initial Aggregate Principal Amount Being Offered
$25.0 million
Option to Purchase Additional Notes
The underwriters may also purchase from us up to an additional $3.75 million aggregate principal amount of Notes within 30 days of the date of this prospectus (the "Option Notes").
Public Offering Price
100% of the aggregate principal amount of the Notes.
Principal Payable at Maturity
The principal amount of each Note will be payable on its stated maturity
    date at the corporate trust office of the Trustee, Paying Agent, Registrar and Transfer Agent for the Notes or at such other
    office in New York, New York as we may designate.
Type of Note
Fixed rate note.
Listing
There is no public market for the Notes. We intend to list the Notes on the Nasdaq Global Market under the trading symbol "[*]" and expect trading to commence within 30 days of the Original Issue Date. We cannot assure you, however, that the Notes will be approved for listing on the Nasdaq Global Market or any market.
Rating of the Notes
BBB from Egan-Jones Ratings Company. An explanation of the significance
of ratings may be obtained from the rating agency. Generally, rating agencies base their ratings on such material and information,
and such of their own investigations, studies and assumptions, as they deem appropriate. The rating of the Notes should be evaluated
independently from similar ratings of other securities. A credit rating of a security is paid for by the issuer and is not a recommendation
to buy, sell or hold securities and may be subject to review, revision, suspension, reduction or withdrawal at any time by the
assigning rating agency. See "
Risk Factors — A downgrade, suspension or withdrawal of the credit rating assigned
by a rating agency to us or the Notes, if any, could cause the liquidity or market value of the Notes to decline significantly
."
Interest Rate
[*]% per year
Day Count Basis
360-day year of twelve 30-day months
Original Issue Date
[*], 2020 (except in the case of the Option Notes, in which case the Original Issue Date will be the date the Option Notes are actually issued).
Stated Maturity Date
[*], 2025
Date Interest Starts to Accrue
Original Issue Date
Interest Payment Dates
Every March 30, June 30, September 30, and December 30, beginning September 30, 2020. If an interest payment date falls on a non-business day, the applicable interest payment will be made on the next business day and no additional interest will accrue as a result of such delayed payment.
Interest Periods
The initial interest period will be the period from and including the Original Issue Date to, but excluding, the initial interest payment date, and the subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest payment date or the stated maturity date, as the case may be.
6
Regular Record Dates for Interest
March 15, June 15, September 15, and December 15, beginning September 15, 2020.
Specified Currency
U.S. Dollars
Place of Payment
New York City
Ranking of Notes
The Notes will be our direct unsecured obligations
        and will rank:
·
Pari passu with, which means equal to, all of our currently
outstanding unsecured unsubordinated indebtedness issued by us. The Notes will also rank pari passu with our general liabilities,
which consist of trade and other payables, including any outstanding dividends payable on our 9.75% Series A Cumulative Redeemable
Perpetual Preferred Stock ("Series A Preferred Stock"), interest and debt fees payable, vendor payables, film acquisition
and programming obligations, and accrued participation costs and other expenses such as auditor fees, legal fees, director fees,
etc. In total, these general liabilities were approximately $59.2 million as of March 31, 2020. We will have the ability to issue
from time to time other debt securities with terms different from the Notes, including terms providing for seniority of such new
debt securities, without the consent of the holders of the Notes, as further described below under
"—Further Issuances.
"
·
Senior to any of our future indebtedness that expressly provides it is subordinated to the Notes. We currently do not have
        outstanding debt that is subordinated to the Notes and do not currently intend to issue indebtedness that expressly provides that
        it is subordinated to the Notes. Therefore, the Notes, as currently contemplated, will not be senior to any indebtedness or obligations.
·
Effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is initially
unsecured to which we subsequently grant a security interest), to the extent of the value of the assets securing such indebtedness,
as well as any secured indebtedness that we may incur in the future, such as a new loan facility, or any new indebtedness that
is initially unsecured to which we subsequently grant a security interest, to the extent of the value of the assets securing such
indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future
secured indebtedness may assert rights against the assets pledged to secure that indebtedness in order to receive full payment
of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes, and any assets
of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Notes.
·
Structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries and
financing vehicles, including the unsecured $5,000,000 revolving credit facility between Landmark Studio Group, as borrower, and
Cole Investments VII LLC, as lender, since the Notes are obligations exclusively of Chicken Soup for the Soul Entertainment, Inc.,
and not of any of our subsidiaries. Structural subordination means that creditors of a parent entity are subordinate to creditors
of a subsidiary entity with respect to the subsidiary's assets.
Except as described under the captions "
Description
        of the Notes — Events of Default
" and "
— Merger or Consolidation
" in
        this prospectus, the indenture does not contain any provisions that give you protection in the event we issue a large amount of
        debt or we are acquired by another entity.
7
Denominations
We will issue the Notes in denominations of  $25.00 and integral multiples of  $25.00 in excess thereof.
Business Day
Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City are authorized or required by law or executive order to close.
Optional Redemptions
The Notes may be redeemed in whole or in part at any time or
from time to time at our option on or after [*], 2022 upon not less than 30 days nor more than 60 days written notice by mail prior
to the date fixed for redemption thereof. The redemption price shall include (i) 100% of the outstanding principal amount of the
Notes called for redemption on the date fixed for redemption plus (ii) all accrued and unpaid interest payments otherwise payable
thereon through the date fixed for redemption. In addition, in the event of a merger or sale of the Company or substantially all
of its assets or a majority of the Company's equity (on an after issued basis) in one or a series of related transactions,
we will have the right to redeem the Notes prior to [*], 2022 in connection with the consummation of such transactions on the foregoing
terms.
You may be prevented from exchanging or transferring
        the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice will provide
        that, upon surrender of such Note, you will receive, without charge, a new Note or Notes of authorized denominations representing
        the principal amount of your remaining unredeemed Notes.
If we redeem only some of the Notes, the Trustee
        will determine the method for selection of the particular Notes to be redeemed, in accordance with the indenture, and in accordance
        with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default in payment
        of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for redemption.
8
Sinking Fund
The Notes will not be subject to any sinking fund (
i.e.,
no amounts will be set aside by us to ensure repayment of the Notes at maturity). As a result, our ability to repay the Notes at maturity will depend on our financial condition on the date that we are required to repay the Notes.
No Repayment at Option of Holders
Holders will not have the option to have the Notes repaid prior to the stated maturity date.
Defeasance
The Notes are subject to defeasance by us. "Defeasance" means that, by depositing with a trustee an amount of cash and/or government securities sufficient to pay all principal and interest, if any, on the Notes when due and satisfying any additional conditions required under the indenture relating to the Notes, we will be deemed to have been discharged from our obligations under the Notes.
Covenant Defeasance
The Notes are subject to covenant defeasance by us. In the event of a "covenant defeasance," upon depositing such funds and satisfying similar conditions discussed below we would be released from the restrictive covenants under the indenture relating to the Notes. The consequences to the holders of the Notes is that, while they no longer benefit from the restrictive covenants under the indenture, and while the Notes may not be accelerated for any reason, the holders of Notes nonetheless could look to us for repayment of the Notes if there were a shortfall in the funds deposited with the trustee or the trustee is prevented from making the payment.
Form of Notes
The Notes will be represented by global securities that will be deposited and registered in the name of The Depository Trust Company ("DTC") or its nominee. This means that, except in limited circumstances, you will not receive certificates for the Notes. Beneficial interests in the Notes will be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC. Investors may elect to hold interests in the Notes through either DTC, if they are a participant, or indirectly through organizations that are participants in DTC.
Trustee, Paying Agent, Registrar, and Transfer Agent
U.S. Bank National Association
Limitation on Restricted Payments
Upon (i) the failure to pay interest on any
        Note when such interest is due and payable or (ii) the occurrence of an Event of Default and while any such interest payment remains
        unpaid or such Event of Default is ongoing, the indenture prohibits us from taking the following actions:
·
Declaring or paying any dividend, making any distribution on or in respect of our capital stock or making any similar payment
        to the direct or indirect holders of our capital stock in their capacity as such;
·
Purchasing, repurchasing, redeeming, retiring or otherwise acquiring for value any of our capital stock held by any person
        (other than by us or a subsidiary of ours) or any capital stock of a subsidiary held by any of our affiliates;
·
Purchasing for value, prior to scheduled maturity, any scheduled repayment of any subordinated obligations; or
·
Making any investment in any person.
9
Events of Default
You will have rights if an Event of Default
        occurs with respect to the Notes.
The term "Event of Default" in
        respect of the Notes means any of the following:
·
We do not pay the principal (or premium, if any) of any Note when due.
·
We do not pay interest on any Note when due, and such default is not cured within 30 days.
·
We remain in breach of any other covenant with respect to the Notes for 60 days after we receive a written notice of default
        stating we are in breach. The notice must be sent by either the Trustee or holders of at least 25.0% of the principal amount of
        the Notes.
·
We file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and in the case of certain
        orders or decrees entered against us under any bankruptcy law, such order or decree remains undischarged or unstayed for a period
        of 60 days.
Further Issuances
We have the ability to issue from time to time other debt securities with terms different from the Notes and, without consent of the holders thereof, as well as the ability to reopen the Notes and issue additional Notes. If we issue additional debt securities, these additional debt securities could rank higher in priority of payment or have a lien or other security interest greater than that accorded to the holders of the Notes.
Global Clearance and Settlement Procedures
Interests in the Notes will trade in DTC's Same Day Funds Settlement System, and any permitted secondary market trading activity in such Notes will, therefore, be required by DTC to be settled in immediately available funds. None of the Trustee, the Paying Agent or us will have any responsibility for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures governing their operations.
Risk Factors
Investing in the Notes involves risks. You should carefully consider the risks described under "
Risk Factors
" in this prospectus, our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q as well as the other information contained or incorporated by reference in this prospectus before deciding to invest in the Notes.
Use of Proceeds
We intend to use a substantial portion of the net proceeds from
the sale of the Notes offered under this prospectus to repay the approximately $13.9 million of outstanding principal and interest
owed by us under our commercial loan facility with Patriot Bank, N.A. and will have broad discretion with respect to the use of
the remaining proceeds of this offering, which may include using of some or all of such remaining proceeds to pay certain obligations
to Sony Pictures Television Inc. or its affiliates that may otherwise be payable in shares of our Series A Preferred Stock.
10
RISK FACTORS
Any investment in
our securities involves a high degree of risk. Potential investors are urged to read and consider the risks and uncertainties relating
to an investment in the Company as set forth in this prospectus and in the documents we incorporate by reference herein. Potential
investors also should read and consider the risks and uncertainties discussed under the item "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2019,
our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020,
and our subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K, all of which are incorporated herein
by reference, and may be amended, supplemented, or superseded from time to time by other reports we file with the SEC in the future.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business
and results of operations. If any of these risks actually occur, our business, financial condition, or results of operations could
be seriously harmed. In that event, the market price for our securities could decline and you may lose all or part of your investment.
Risks Relating to COVID-19
Our business, results of operations,
and financial condition has been and may continue to be impacted by the recent coronavirus (COVID-19) outbreak.
The global spread of
the coronavirus (COVID-19) and the various attempts to contain it have created significant volatility, uncertainty and economic
disruption. In response to government mandates, health care advisories and otherwise responding to employee and vendor concerns,
we have altered certain aspects of our operations. Our workforce has had to spend a significant amount of time working from home,
which impacts productivity and our ability to exercise proper internal controls over our operations. All of our productions are
paused, as are productions of third-parties who supply us with content. Other operating partners have similarly had their operations
altered or temporarily suspended, including those partners that we use for our Crackle Plus operations as well as development,
production and post-production of content. To the extent the resulting economic disruption continues for an extended period or
worsens, we could see some vendors go out of business, resulting in supply constraints and increased costs or delays to our operations.
Such pauses may cause us temporarily to have less new content available on our services in subsequent quarters, which could negatively
impact consumer demand for and user retention to our service. Temporary operation pauses or permanent shutdowns in production could
result in content asset impairments or other charges and will change the timing and amount of cash outflows associated with operating
activity.
The full extent to
which the COVID-19 pandemic and the various responses to it continue to impact our business, operations and financial results will
depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic;
governmental, business and individuals' actions that have been and continue to be taken in response to the pandemic; the
availability and cost to access the capital markets; the effect on our customers and customer demand for our services; disruptions
or restrictions on our employees' ability to work and travel; interruptions or restrictions related to the provision of streaming
services over the internet, including impacts on content delivery networks and streaming quality; and any stoppages, disruptions
or increased costs associated with our development, production, post-production, marketing and distribution of original programming.
Furthermore, given increased government expenditures associated with their COVID-19 response, we could see increased government
obligations which could negatively impact our results of operations. If we need to further access the capital markets, there can
be no assurance that financing may be available on attractive terms, if at all. We will continue to actively monitor the issues
raised by the COVID-19 pandemic and may take further actions that alter our business operations, including content production,
as may be required by federal, state, local or foreign authorities, or that we determine are in the best interests of our employees,
customers, partners and stockholders. It is not clear what the potential effects any such alterations or modifications may have
on our business, including the effects on our customers, suppliers or vendors, or on our financial results.
The COVID-19
pandemic has also led to an increase in our Crackle Plus users relative to our quarterly forecast and historic trends. These
results, as well as those of other metrics such as revenues, operating margins, net income and other financial and operating
data, may not be indicative of results for future periods. Our increase in user additions may reflect the acceleration of
growth that we would have seen in subsequent periods, and user growth may slow or reverse, due to slower acquisition and/or
higher cancellations, as government and other restrictions are relaxed. In addition to the potential direct impacts to our
business, the global economy is likely to be significantly weakened as a result of the actions taken in response to COVID-19.
To the extent that such a weakened global economy impacts advertisers' ability or willingness to pay for advertisements
on our service or vendors' ability to provide services to us, we could see our business and results of operations
negatively impacted. In addition, a weakened global economy could impact our ability to collect our outstanding accounts
receivable which would have a negative impact on our results of operations.
11
Risks Related to Our Operations
We have incurred operating losses in the past, may incur
operating losses in the future and may never achieve or maintain profitability.
As of December 31, 2019 and March 31, 2020, we had an accumulated
deficit of approximately $32.7 million and $44.1 million, respectively, and for the year ended December 31, 2019 and the three
months ended March 31, 2019 and 2020, we had a net loss of approximately $3.4 million and $11.4 million, respectively. We expect
our operating expenses to increase in the future as we continue to expand our operations. If our revenue and gross profit do not
grow at a greater rate than our operating expenses, we will not be able to achieve and maintain profitability. Our indebtedness
could limit our flexibility in planning for, or reacting to, changes in the market in which we compete. Although we believe we
have adequate sources of liquidity to meet our anticipated requirements for working capital, debt service, capital expenditures
and cash dividend payments on our Series A Preferred Stock, there can be no assurance that our cash flow from operations will be
sufficient to service our debt, which may require us to borrow additional funds for that purpose, restructure or otherwise refinance
our debt. Additionally, we may encounter unforeseen operating or legal expenses, difficulties, complications, delays and other
factors that may result in losses in future periods. If our expenses exceed our revenue, we may never achieve or maintain profitability
and some or all aspects of our business operations may need to be modified or curtailed.
We may not be able to generate sufficient cash to service
our debt and other obligations.
Our ability to make payments on our debt,
including our Notes, and our other obligations will depend on our financial and operating performance, which is subject to prevailing
economic and competitive conditions and to certain financial, business and other factors beyond our control. We may be unable to
attain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest
on our debt, including the Notes, and other obligations, including the cash dividend payments on our Series A Preferred Stock.
If we are unable to service our debt and
other obligations from cash flows, we may need to refinance or restructure all or a portion of such obligations prior to maturity.
Our ability to refinance or restructure our debt and other obligations will depend upon the condition of the capital markets and
our financial condition at such time. Any refinancing or restructuring could be at higher interest rates and may require us to
comply with more onerous covenants, which could further restrict our business operations. If our cash flows are insufficient to
service our debt and other obligations, we may not be able to refinance or restructure any of these obligations on commercially
reasonable terms or at all and any refinancing or restructuring could have a material adverse effect on our business, results of
operations, or financial condition.
If our cash flows are insufficient to fund
our debt and other obligations and we are unable to refinance or restructure these obligations, we may be forced to reduce or delay
investments or to sell material assets or operations to meet our debt and other obligations. We cannot assure you that we would
be able to implement any of these alternative measures on satisfactory terms or at all or that the proceeds from such alternatives
would be adequate to meet any debt or other obligations then due. If it becomes necessary to implement any of these alternative
measures, our business, results of operations, or financial condition could be materially and adversely affected.
We do not have a long operating history on which to evaluate
our company.
Our predecessor, CSS
Productions, was formed in December 2014 and we were formed in May 2016 to acquire CSS Productions' assets in order to create
a discrete, focused entity to pursue video content opportunities using the Chicken Soup for the Soul brand. We focused our company
in the area of video on demand in 2017 and have a limited history in operating commercial video on demand offerings. A significant
portion of our video on demand operations assets was acquired by us from CPE Holdings, Inc in May 2019, and we have only a limited
history in controlling and operating such assets. We face all the risks faced by newer companies in the media industry, including
significant competition from existing and emerging media producers and distributors, many of which are significantly more established,
larger and better financed than our Company.
12
We may not realize the advantages we expect from Crackle
Plus
In May 2019, we consummated
a contribution agreement with CPE Holdings, Inc. ("CPEH"), an affiliate of Sony Pictures Television Inc., pursuant
to which we and CPEH contributed certain assets relating to our respective VOD businesses to our newly formed majority owned subsidiary,
Crackle Plus.
Our quarterly and annual
operating results may fluctuate due to the costs and expenses of acquiring and managing the Crackle Plus business. We may require
additional debt or equity financing for the Crackle Plus business, resulting in additional leverage or dilution of ownership therein.
Additionally, CPEH
has certain protective voting rights in Crackle Plus. Certain actions require supermajority approval of the board of managers of
Crackle Plus, including the managers appointed by CPEH. As a result, our investment in Crackle Plus involves risks that are different
from the risks involved in our independent operations. These risks include the possibility that CPEH has economic or business interests
or goals that are or become inconsistent with our overall economic or business interests or goals.
The operating agreement
between us and CPEH provides CPEH the right to either convert its membership interests in Crackle Plus into common units of Crackle
Plus or put its membership interests in Crackle Plus to us at certain times and on the terms specified in the operating agreement.
If CPEH elects to convert its membership interest in Crackle Plus into common units of Crackle Plus, our ownership interest will
be reduced to a 51% interest. If CPEH exercises its put right, we may pay the purchase price for CPEH's membership interests
in cash or in shares of our Series A Preferred Stock, at our option. Subject to certain limitations, if CPEH has not exercised
its put or conversion right by the end of the exercise period, CPEH will be deemed to have automatically exercised the put right
on the last day of the exercise period. If we are required to purchase CPEH's membership interests, we may use a portion
of the proceeds of this offering to pay for such membership interests in cash, rather than issuing a significant number of shares
of our Series A Preferred Stock to CPEH.
All of our tangible and intangible property is pledged
to secure existing indebtedness.
All of our tangible
and intangible property, including accounts receivable and intellectual property, is pledged under a first priority security interest
to secure our repayment obligations under indebtedness owed to Patriot Bank, N.A. under our Commercial Loan, as described under
 "
Management's Discussion and Analysis of Operating and Financial Condition – Liquidity and Capital Resources
- "Commercial Loan
" in our Quarterly Report on Form 10-Q for the three months ended March 31, 2020. We intend to
repay all obligations under this commercial loan facility using proceed from this offering.
If our efforts to attract and retain
VOD viewers are not successful, our business may be adversely affected.
Our success depends
in part on attracting viewers, retaining them on our VOD service and ultimately monetizing our VOD services and content offerings. As
such, we are seeking to expand our viewer base and increase the number of hours that are streamed across our platforms to create
additional revenue opportunities. To attract and retain viewers, we need to be able to respond efficiently to changes in consumer
tastes and preferences and to offer our viewers access to the content they enjoy on terms that they accept. Effective monetization
may require us to continue to update the features and functionality of our VOD offerings for viewers and advertisers.
Our ability to attract
viewers will depend in part on our ability to effectively market our services, as well as provide a quality experience for selecting
and viewing TV series and movies. Furthermore, the relative service levels, content offerings, pricing and related features of
competitors as compared to our service will determine our ability to attract and retain viewers. Competitors include other streaming
entertainment providers, including those that provide AVOD and SVOD offerings, and other direct-to-consumer video distributors
and more broadly other sources of entertainment that our viewers could choose in their moments of free time. If consumers do not
perceive our service offerings to be of value, including if we introduce new or adjust existing features or service offerings,
or change the mix of content in a manner that is not favorably received by them, we may not be able to attract and retain consumers.
In addition, many of our consumers originate from word-of-mouth advertising from existing viewers. If we do not grow as expected,
we may not be able to adjust our expenditures or increase our revenues commensurate with the lowered growth rate such that our
margins, liquidity and results of operation may be adversely impacted. If we are unable to successfully compete with current and
new competitors in both retaining our existing viewers and attracting new viewers, our business may be adversely affected.
Changes in competitive offerings
for entertainment video could adversely impact our business.
The market for
entertainment video is subject to rapid change. Through new and existing distribution channels, consumers have increasing
options to access entertainment video. The various economic models underlying these channels include subscription,
transactional, and ad-supported models. All of these have the potential to capture meaningful segments of the entertainment
video market. Traditional providers of entertainment video, including broadcasters and cable network operators, as well as
internet-based e-commerce or entertainment video providers are increasing their streaming video offerings. Several of these
competitors have long operating histories, large customer bases, strong brand recognition, exclusive rights to certain
content and significant financial, marketing and other resources. Competitors may secure better terms from content suppliers
and devote more resources to product development, technology, infrastructure, content acquisitions and marketing. New
entrants may enter the market or existing providers may adjust their services with unique offerings or approaches to
providing entertainment video. Our competitors also may enter into business combinations or alliances that strengthen their
competitive positions. If we are unable to successfully or profitably compete with current and new competitors, our business
may be adversely affected, and we may not be able to increase or maintain market share, revenues or profitability.
13
Our long-term results of operations are difficult to predict
and depend on the commercial success of our VOD platforms as well as successful monetization of our video content in other ways
and the continued strength of the Chicken Soup for the Soul brand.
Video streaming is
a rapidly evolving industry, making our business and prospects difficult to evaluate. The growth and profitability of this industry
and the level of demand and market acceptance for our VOD platforms and content offerings are subject to a high degree of uncertainty.
We believe that the continued growth of streaming as an entertainment alternative will depend on the availability and growth of
cost-effective broadband internet access, the quality of broadband content delivery, the quality and reliability of new devices
and technology, the cost for viewers relative to other sources of content, as well as the quality and breadth of content that is
delivered across streaming platforms. These technologies, products and content offerings continue to emerge and evolve. In addition,
many advertisers continue to devote a substantial portion of their advertising budgets to traditional advertising, such as linear
TV, radio and print. The future growth of our business depends on the growth of digital advertising, and on advertisers increasing
their spend on such advertising. We cannot be certain that they will do so. If advertisers do not perceive meaningful benefits
of digital advertising, the market may develop more slowly than we expect, which could adversely impact our operating results and
our ability to grow our business.
In addition, monetization
of content that we produce and acquire from sources other than our AVOD network is an essential element of our strategy.  Our
ability in the long-term to obtain sponsorships, licensing arrangements, co-productions and tax credits and to distribute our original
programming and acquired video content will depend, in part, upon the commercial success of the content that we initially produce
and distribute and, in part, on the continued strength of the
Chicken Soup for the Soul
brand.  We cannot
ensure that we will produce, acquire, and distribute successful content.  The continued strength of the brand will be
affected in large part by the operations of CSS and its other business operations, none of which we control. CSS utilizes the brand
through its other subsidiaries for various commercial purposes, including the sale of books (including educational curriculum products),
pet foods and other consumer products. Negative publicity relating to CSS or its other subsidiaries or the brand, or any diminution
in the perception of the brand could have a material adverse effect on our business, financial condition, operating results, liquidity
and prospects. We cannot assure you that we will manage the production and distribution of all of our video content successfully,
that all or any portion of our video content will be met with critical acclaim or will be embraced by audiences on a one-time or
repeated basis, or that the strength of the
Chicken Soup for the Soul
brand will not diminish over time.
We may not be successful in our efforts
to further monetize our VOD services
Our AVOD platforms
generate revenue primarily from digital advertising and audience development campaigns that run across our streaming platform and
from content distribution services. Our ability to deliver more relevant advertisements to our viewers and to increase our platform's
value to advertisers and content publishers depends on the collection of user engagement data, which may be restricted or prevented
by a number of factors. Viewers may decide to opt out or restrict our ability to collect personal viewing data or to provide them
with more relevant advertisements.
W
hile we have experienced,
and expect to continue to experience, growth in our revenue from advertising, our efforts to monetize our streaming platform through
the distribution of AVOD content are still developing and our advertising revenue may not grow as we expect. This means of monetization
will require us to continue to attract advertising dollars to our streaming platform as well as deliver AVOD content that appeals
to viewers. Accordingly, there can be no assurance that we will be successful in monetizing our streaming platform through the
distribution of ad-supported content.
In addition, with the
recent spread of the coronavirus throughout the United States and the rest of the world, companies advertising plans and amounts
available for advertising may be significantly restricted or discontinued which could also impact our ability to monetize our AVOD
platform.
14
Our reliance on third parties for content, production
and distribution could limit our control over the quality of the finished video content.
We currently have limited
production capabilities and are reliant on relationships with third parties for much of these capabilities. Working with third
parties is an integral part of our strategy to produce video content on a cost-efficient basis, and our reliance on such third
parties could lessen the control we have over the projects. Should the third-party producers we rely upon not produce completed
projects to the standards we expect and desire, critical and audience acceptance of such projects could suffer, which could have
an adverse effect on our ability to produce and distribute future projects. In particular, due to the global spread of COVID-19,
and in response to government mandates and healthcare advisories, certain of our vendors and partners have had their operations
altered or temporarily suspended, including vendors that supply us with our streaming content and partners that we use for the
development and production of content. Any such production pauses could cause us to have less new content available on our service,
which could negatively impact consumer demand for our service, which may in turn adversely impact our advertising revenue. A limited
number of content publishers account for a significant portion of the hours streamed on our Crackle Plus and other streaming platforms.  If,
for any reason, these publishers fail to provide us with content, whether due to the COVID-19 pandemic or otherwise, our streaming
hours, active viewers, and advertising revenue may be adversely affected, and our business may be harmed. Further, either during
the COVID-19 pandemic or after it subsides, we cannot be assured of entering into favorable agreements with third-party content
producers on economically favorable terms or on terms that provide us with satisfactory intellectual property rights in the completed
projects.
An integral part of our strategy is to initially minimize
our production, content acquisition and distribution costs by utilizing funding sources provided by others, however, such sources
may not be readily available.
The production acquisition
and distribution of video content can require a significant amount of capital. As part of our strategy, we seek to fund the production,
content acquisition, and distribution of our video content through co-productions, tax credits, upfront fees from sponsors, licensors,
broadcasters, cable and satellite outlets and other producers and distributors, as well as through other initiatives. Such funding
from the aforementioned sources or other sources may not be available on attractive terms or at all, as and when we need such funding.
To the extent we are not able to secure agreements of this sort, we may need to curtail the amount of video content being produced
or acquired by us or use our operating or other funds to pay for such video content, which could have a material adverse effect
on our business, financial condition, operating results, liquidity and prospects.
Due to the effect of
the coronavirus, the interest and ability of sponsors to enter into and invest in co-production agreements may not be attractive
or considered at this time.
As we grow, we may seek to fund and produce more of our
video content directly, subjecting us to significant additional risks.
Our current strategy
of funding the production, acquisition, and distribution of our video content through the payment of upfront fees by third parties
may limit the backend return to us. If we should determine to use our own funds to produce, acquire, and distribute more of our
video content in order to capture greater backend returns, we would face significant additional risks, such as the need to internally
advance funds ahead of revenue generation and cost recoupment and the need to divert some of our resources and efforts away from
other operations. In order to reduce these risks, we may determine to raise additional equity or incur additional indebtedness.
In such event, our stockholders and our company will be subjected to the risks associated with issuing more equity or increasing
our debt obligations.
If studios, content providers or other rights holders
are unable or refuse to license content or other rights upon terms acceptable to us, our business could be adversely affected.
Our ability to provide
content depends on studios, content providers and other rights holders licensing rights to distribute such content and certain
related elements thereof, such as the public performance of music contained within the content we distribute. If studios, content
providers and other rights holders are not or are no longer willing or able to license us content upon terms acceptable to us,
our ability to provide content will be adversely affected and/or our costs could increase.
Certain conflicts of interest may arise between us and
our affiliated companies and we have waived certain rights with respect thereto.
Our certificate of
incorporation includes a provision stating that we renounce any interest or expectancy in any business opportunities that are
presented to us or our officers, directors or stockholders or affiliates thereof, including but not limited to CSS Productions
and its affiliates (collectively, the "CSS Companies"), except as may be set forth in any written agreement between
us and any of the CSS Companies (such as the CSS License Agreement under which CSS has agreed that all video content operations
shall be conducted only through CSS Entertainment). This provision also states that, to the fullest extent permitted by Delaware
law, our officers, directors and employees shall not be liable to us or our stockholders for monetary damages for breach of any
fiduciary duty by reason of any of our activities or any activities of any of the CSS Companies. As a result of these provisions,
there may be conflicts of interest among us and our officers, directors, stockholders or their affiliates, including the CSS Companies,
relating to business opportunities, and we have waived our right to monetary damages in the event of any such conflict.
15
We are required to make continuing payments to our affiliates,
which may reduce our cash flow and profits.
We are required to
make significant payments to our affiliates as described under "
Management's Discussion and Analysis of Financial
Condition and Results of Operations — Affiliate Resources and Obligations — CSS Management Agreement",
 "CSS License Agreement"
and described under "
Management's Discussion and Analysis of Financial
Condition and Results of Operations — Liquidity and Capital Resources"
in our Quarterly Report on Form
10-Q for the three months ended March 31, 2020. Accordingly, in the aggregate, 10% of our net revenue will be paid to our affiliates
on a continuous basis and will not be otherwise available to us.
If a project we are producing incurs substantial budget
overruns, we may have to seek additional financing from outside sources to complete production or fund the overrun ourselves.
If a production we
are funding incurs substantial budget overruns, we may have to seek additional financing from outside sources to complete production
or fund the overrun ourselves. We cannot be certain that any required financing will be available to us on commercially reasonable
terms or at all, or that we will be able to recoup the costs of overruns. Increased costs incurred with respect to a project may
result in the production not being ready for release at the intended time, which could cause a decline in the commercial performance
of the project. Budget overruns could also prevent a project from being completed or released at all and adversely affect our operating
results.
We are subject to risks associated with possible acquisitions,
business combinations, or joint ventures.
We are actively pursuing
discussions and activities with respect to possible acquisitions, sale of assets, business combinations, or joint ventures intended
to complement or expand our business, some of which may be significant transactions for us. We may not realize the anticipated
benefit from any of the transactions we pursue. Regardless of whether we consummate any such transaction, the negotiation of a
potential transaction could require us to incur significant costs and cause diversion of management's time and resources.
Integrating any business
that we acquire may be distracting to our management and disruptive to our business and may result in significant costs to us.
We could face several challenges in the consolidation and integration of information technology, accounting systems, personnel
and operations. Any such transaction could also result in impairment of goodwill and other intangibles, development write-offs
and other related expenses. Any of the foregoing could have a material adverse effect on our business, financial condition, operating
results, liquidity and prospects.
Our operating results may fluctuate.
Our operating results
are dependent, in part, on management's estimates of revenue to be earned over the life of a project. We will regularly review
and revise our revenue estimates. This review may result in a change in the rate of amortization and/or a write-down of the video
content asset to its estimated realizable value. Results of operations in future years depend upon our amortization of our video
content costs. Periodic adjustments in amortization rates may significantly affect these results. Further, as many of our third-party
relationships will be on a project-by-project basis, the profits, if any, generated from various projects will fluctuate based
on the terms of the agreements between us and our third-party producers and distributors.
Variations in our quarterly
and year-end operating results are difficult to predict and our income and cash flows may fluctuate significantly from period to
period, which may impact our board of directors' willingness or legal ability to declare a monthly dividend. If our operating
results fall below the expectations of investors or securities analysts, the price of our Common Stock and our Series A preferred
stock could decline substantially. Specific factors that may cause fluctuations in our operating results include:
·
demand and pricing for our products and services;
·
introduction of competing products;
·
our operating expenses which fluctuate due to growth of our business;
16
·
timing and popularity of new video content offerings and changes in viewing habits or the emergence
of new content distribution platforms;
·
variable sales cycle and implementation periods for content and services; and
·
the continuing effects of the COVID-19 pandemic and governmental responses thereto.
As a result of the
foregoing and other factors, our results of operations may fluctuate significantly from period to period, and the results of any
one period may not be indicative of the results for any future period.
Distributors' failure to promote our video content
could adversely affect our revenue and could adversely affect our business results.
We will not always
control the timing and way in which our licensed distributors distribute our video content offerings. However, their decisions
regarding the timing of release and promotional support are important in determining our success. Any decision by those distributors
not to distribute or promote our video content or to promote our competitors' video content to a greater extent than they
promote our content could adversely affect our business, financial condition, operating results, liquidity and prospects.
We are smaller and less diversified than many of our competitors.
Many of the producers
and studios with which we compete are part of large diversified corporate groups with a variety of other operations, including
television networks, cable channels and other diversified companies such as Amazon, which can provide both the means of distributing
their products and stable sources of earnings that may allow them to better offset fluctuations in the financial performance of
their operations. In addition, the major studios have more resources with which to compete for ideas, storylines and scripts created
by third parties as well as for actors, and other personnel required for production. The resources of the major producers and studios
may also give them an advantage in acquiring other businesses or assets, including video content libraries, that we might also
be interested in acquiring.
We face risks from doing business
internationally.
We intend to increase
the distribution of our video content outside the U.S. and thereby derive significant revenue in foreign jurisdictions. As a result,
our business is subject to certain risks inherent in international business, many of which are beyond our control. These risks
include:
·
laws and policies affecting trade, investment and taxes, including laws and policies relating to
the repatriation of funds and withholding taxes, and changes in these laws;
·
the Foreign Corrupt Practices Act and similar laws regulating interactions and dealings with foreign
government officials;
·
changes in local regulatory requirements, including restrictions on video content;
·
differing cultural tastes and attitudes;
·
differing and more stringent user protection, data protection, privacy and other laws;
·
differing degrees of protection for intellectual property;
·
financial instability and increased market concentration of buyers in foreign television markets;
·
the instability of foreign economies and governments;
·
fluctuating foreign exchange rates;
·
the spread of communicable diseases in such jurisdictions, which may impact business in such jurisdictions;
and
·
war and acts of terrorism.
17
Events or developments
related to these and other risks associated with international trade could adversely affect our revenue from non-U.S. sources,
which could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.
Protecting and defending against intellectual property
claims may have a material adverse effect on our business.
Our ability to compete
depends, in part, upon successful protection of our intellectual property relating to our video content and the protection of the
Chicken
Soup for the Soul
brand. We protect proprietary and intellectual property rights to our productions through available
copyright and trademark laws and licensing and distribution arrangements with reputable international companies in specific territories
and media. Under the terms of the CSS License Agreement, CSS has the primary right to take actions to protect the Brand, and, if
it does not, and we reasonably deem any infringement thereof is materially harmful to our business, we may elect to seek action
to protect the Brand ourselves. Although in the former case, we would equitably share in any recovery, and in the latter case,
we would retain the entirety of any recovery, should CSS determine not to prosecute infringement of the Brand, we could be materially
harmed and could incur substantial cost in prosecuting an infringement of the
Chicken Soup for the Soul
brand.
Others may assert intellectual property infringement claims
against us.
It is possible that
others may claim from time to time that our productions and production techniques misappropriate or infringe the intellectual property
rights of third parties with respect to their previously developed content, stories, characters and other entertainment or intellectual
property. Although CSS is obligated to indemnify us for claims related to our use of the
Chicken Soup for the Soul
brand
in accordance with the CSS License Agreement, we could face lawsuits with respect to claims relating thereto. Irrespective of the
validity or the successful assertion of any such claims, we could incur significant costs and diversion of resources in defending
against them, which could have a material adverse effect on our business, financial condition, operating results, liquidity and
prospects.
Our business involves risks of liability claims for video
content, which could adversely affect our results of operations and financial condition.
As a producer and distributor
of video content, we may face potential liability for defamation, invasion of privacy, negligence and other claims based on the
nature and content of the materials distributed. These types of claims have been brought, sometimes successfully, against producers
and distributors of video content. Any imposition of liability that is not covered by insurance or is in excess of insurance coverage
could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.
Piracy of video content may harm our business.
Video content piracy
is extensive in many parts of the world, including South America, Asia, and certain Eastern European countries, and is made easier
by technological advances and the conversion of video content into digital formats. This trend facilitates the creation, transmission
and sharing of high-quality unauthorized copies of video content on DVDs, Blu-ray discs, from pay-per-view through set-top boxes
and other devices and through unlicensed broadcasts on free television and the internet. The proliferation of unauthorized copies
of our video content could have an adverse effect on our business.
Any significant disruption in the computer systems of
third parties that we utilize in our operations could result in a loss or degradation of service and could adversely impact our
business.
Our reputation and
ability to attract, retain and serve our viewers is dependent upon the reliable performance of the computer systems of third parties
that we utilize in our operations. These systems may be subject to damage or interruption from earthquakes, adverse weather conditions,
other natural disasters, terrorist attacks, power loss, telecommunications failures, computer viruses, computer denial of service
attacks or other attempts to harm these systems. Interruptions in these systems or to the internet in general, could make our content
unavailable or impair our ability to deliver such content.
Our online activities are subject to a variety of laws
and regulations relating to privacy, which, if violated, could subject us to an increased risk of litigation and regulatory actions.
In addition to our
websites, we use third-party applications, websites, and social media platforms to promote our video content offerings and engage
consumers, as well as monitor and collect certain information about consumers. There are a variety of laws and regulations governing
individual privacy and the protection and use of information collected from such individuals, particularly in relation to an individual's
personally identifiable information. The United States is seeing the adoption of state-level laws governing individual privacy.
This includes the California Consumer Protection Act ("CCPA"). Many foreign countries have adopted similar laws governing
individual privacy, such as the recent adoption of the EU's General Data Protection Regulation ("GDPR") and
some of which are more restrictive than similar United States laws. If our online activities were to violate any applicable current
or future laws and regulations that limit our ability to collect, transfer, and use data, we could be subject to litigation from
both private rights of action, class action lawsuits, and regulatory actions, including fines and other penalties. Internationally,
we may become subject to evolving, additional and/or more stringent legal obligations concerning our treatment of customer and
other personal information, such as laws regarding data localization and/or restrictions on data export. Failure to comply with
these obligations could subject us to liability, and to the extent that we need to alter our business model or practices to adapt
to these obligations, we could incur additional expenses.
18
If government regulations relating to the internet or
other areas of our business change, we may need to alter the way we conduct our business or incur greater operating expenses.
The adoption or modification
of laws or regulations relating to the internet or other areas of our business could limit or otherwise adversely affect the way
we currently conduct our business. In addition, the continued growth and development of the market for online commerce may lead
to more stringent consumer protection laws, which may impose additional burdens on us such as recent adoption of the European Union's
General Data Protection Regulation. If we are required to comply with new regulations or legislation or new interpretations of
existing regulations or legislation, this compliance could cause us to incur additional expenses or alter our operations.
If we experience rapid growth, we may not manage our growth
effectively, execute our business plan as proposed or adequately address competitive challenges.
We anticipate continuing
to grow our business and operations rapidly. Our growth strategy includes organic initiatives and acquisitions. Such growth could
place a significant strain on the management, administrative, operational and financial infrastructure we utilize, a portion of
which is made available to us by our affiliates under the Management Agreement between us and CSS ("CSS Management Agreement").
Our long-term success will depend, in part, on our ability to manage this growth effectively, obtain the necessary support and
resources under the CSS Management Agreement and grow our own internal resources as required, including internal management and
staff personnel. To manage the expected growth of our operations and personnel, we also will need to increase our internal operational,
financial and management controls, and our reporting systems and procedures. Failure to effectively manage growth could result
in difficulty or delays in producing our video content, declines in overall project quality and increases in costs. Any of these
difficulties could adversely impact our business financial condition, operating results, liquidity and prospects.
Our exclusive license to use the Chicken Soup for the
Soul brand could be terminated in certain circumstances.
We do not own the Chicken
Soup for the Soul brand or any other Chicken Soup for the Soul-related assets (including books), other than those assets transferred
to us under the CSS Contribution Agreement. The Brand is licensed to us by CSS under the terms of the CSS License Agreement. CSS
controls the Brand, and the continued integrity and strength of the Chicken Soup for the Soul brand will depend in large part on
the efforts and businesses of CSS and how the brand is used, promoted and protected by CSS, which will be outside of the immediate
control of our company. Although the license granted to us under the CSS License Agreement is perpetual, it may be terminated by
CSS upon the cessation of our business, our bankruptcy, liquidation, or insolvency, or if we fail to pay any sums due or otherwise
fail to perform under the License Agreement within 30 days following delivery of a second written notice by CSS.
We may not be able to realize the
entire book value of goodwill and other intangible assets from the formation of Crackle Plus and other acquisitions.
As of December 31, 2019 and March 31, 2020, we had approximately
$21.4 million of goodwill and approximately $47.6 million and $42.4 million, respectively, of net intangible assets, primarily
related to the formation of Crackle Plus and other acquisitions. We assess goodwill and other intangible assets for impairment
at least annually and more frequently if certain events or circumstances warrant. If the book value of goodwill or other intangible
assets is impaired, any such impairment would be charged to earnings in the period of impairment. If we determine that goodwill
and other intangible assets are impaired in the future, it could have a material adverse effect on our business, financial condition
and results of operations.
Claims against us relating to any acquisition or business
combination may necessitate our seeking claims against the seller for which the seller may not indemnify us or that may exceed
the seller's indemnification obligations.
There may be liabilities
assumed in any acquisition or business combination that we did not discover or that we underestimated in the course of performing
our due diligence. Although a seller generally may have indemnification obligations to us under an acquisition or merger agreement,
these obligations usually will be subject to financial limitations, such as general deductibles and maximum recovery amounts, as
well as time limitations. We cannot assure you that our right to indemnification from any seller will be enforceable, collectible
or sufficient in amount, scope or duration to fully offset the amount of any undiscovered or underestimated liabilities that we
may incur. Any such liabilities, individually or in the aggregate, could have a material adverse effect on our business, financial
condition, operating results, liquidity and prospects.
19
We may require and not be able to obtain additional funding
to meet increased capital needs after an acquisition.
Our ability to grow
through acquisitions, business combinations and joint ventures and our ability to fund our operating expenses after one or more
acquisitions may depend upon our ability to obtain funds through equity financing, debt financing (including credit facilities)
or the sale or syndication of some or all of our interests in certain projects or other assets or businesses. If we do not have
access to such financing arrangements, and if other funds do not become available on terms acceptable to us, there could be a material
adverse effect on our business, financial condition, operating results, liquidity and prospects.
Our success depends on our management and relationships
with our affiliated companies.
Our success depends
to a significant extent on the performance of our management personnel and key employees, including production and creative personnel,
made available to us through the CSS Management Agreement. The loss of the services of such persons or the resources supplied to
us by our affiliated companies could have a material adverse effect on our business, financial condition, operating results, liquidity
and prospects.
To be successful, we need to attract and retain qualified
personnel.
Our success will depend
to a significant extent on our ability to identify, attract, hire, train and retain qualified professional, creative, technical
and managerial personnel. Competition for the caliber of talent required to produce and distribute our video content continues
to increase. We cannot assure you that we will be successful in identifying, attracting, hiring, training and retaining such personnel
in the future. If we were unable to hire, assimilate and retain qualified personnel in the future, such inability could have a
material adverse effect on our business, financial condition, operating results, liquidity and prospects.
We are an "emerging growth company" under
the JOBS Act of 2012 and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will
make our Class A common stock less attractive to investors.
We are an "emerging
growth company", as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"), and we may take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not
 "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation
requirements of section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic
reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation
and shareholder approval of any golden parachute payments not previously approved. We cannot predict if investors will find our
Class A common stock less attractive because we may rely on these exemptions. If some investors find our Class A common stock less
attractive as a result, there may be a less active trading market for our Class A common stock and our stock price may be more
volatile.
In addition, Section
107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an
 "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised
accounting standards.
We will remain an "emerging
growth company" for up to five years, although we will lose that status sooner if our revenue exceeds $1.07 billion, if we
issue more than $1 billion in non-convertible debt in a three-year period, or if the market value of our common stock that is held
by non-affiliates exceeds $700 million as of June 30 of any year.
Our status as an "emerging growth company"
under the JOBS Act of 2012 may make it more difficult to raise capital as and when we need it.
Because of the exemptions
from various reporting requirements provided to us as an "emerging growth company" and because we will have an extended
transition period for complying with new or revised financial accounting standards, we may be less attractive to investors and
it may be difficult for us to raise additional capital as and when we need it. Investors may be unable to compare our business
with other companies in our industry if they believe that our financial accounting is not as transparent as other companies in
our industry. Any inability to raise additional capital as and when we need it, could have a material adverse effect on our business,
financial condition, operating results, liquidity and prospects.
20
Since our content is digitally stored and distributed
online, and we accept online payments for various subscription services, we face numerous cybersecurity risks.
We utilize information
technology systems, including third-party hosted servers and cloud-based servers, to host our digital content, as well as to keep
business, financial, and corporate records, communicate internally and externally, and operate other critical functions. If any
of our internal systems or the systems of our third-party providers are compromised due to computer virus, unauthorized access,
malware, and the like, then sensitive documents could be exposed or deleted, and our ability to conduct business could be impaired.
Cyber incidents can
result from deliberate attacks or unintentional events. These incidents can include, but are not limited to, unauthorized access
to our systems, computer viruses or other malicious code, denial of service attacks, malware, ransomware, phishing, SQL injection
attacks, human error, or other events that result in security breaches or give rise to the manipulation or loss of sensitive information
or assets. Cyber incidents can be caused by various persons or groups, including disgruntled employees and vendors, activists,
organized crime groups, and state-sponsored and individual hackers. Cyber incidents can also be caused or aggravated by natural
events, such as earthquakes, floods, fires, power loss, and telecommunications failures.
To date, we have not
experienced any material losses relating to cyber-attacks, computer viruses, or other systems failures. Although we have taken
steps to protect the security of data maintained in our information systems, it is possible that our security measures will not
be able to prevent the systems' improper functioning or the improper disclosure of personally identifiable information, such
as in the event of cyber-attacks. In addition to operational and business consequences, if our cybersecurity is breached, we could
be held liable to our customers or other parties in regulatory or other actions, and we may be exposed to reputation damages and
loss of trust and business. This could result in costly investigations and litigation, civil or criminal penalties, fines, and
negative publicity.
Certain information
relating to our customers, including personally identifiable information and credit card numbers, is collected and maintained by
us, or by third parties that do business with us or facilitate our business activities. This information is maintained for a period
of time for various business purposes, including maintaining records of customer preferences to enhance our customer service and
for billing, marketing, and promotional purposes. We also maintain personally identifiable information about our employees. The
integrity and protection of our customer, employee and company data is critical to our business. Our customers and our employees
expect that we will adequately protect their personal information, and the regulations applicable to security and privacy are increasingly
demanding. Privacy regulation is an evolving area and compliance with applicable privacy regulations may increase our operating
costs or adversely impact our ability to service our customers and market our properties and services.
The occurrence of natural or man-made
disasters could result in declines in business that could adversely affect our financial condition, results of operations and cash
flows.
We are exposed to various risks arising out of natural disasters,
including earthquakes, hurricanes, fires, floods, landslides, tornadoes, typhoons, tsunamis, hailstorms, explosions, climate events
or weather patterns and pandemic health events (such as the recent pandemic spread of the novel corona virus known as COVID-19
virus, duration and full effects of which are still uncertain), as well as man-made disasters, including acts of terrorism, military
actions, cyber-terrorism, explosions and biological, chemical or radiological events. The continued threat of terrorism and ongoing
military actions may cause significant volatility in global financial markets, and a natural or man-made disaster could trigger
an economic downturn in the areas directly or indirectly affected by the disaster. These consequences could, among other things,
result in a decline in business. Disasters also could disrupt public and private infrastructure, including communications and financial
services, which could disrupt our normal business operations. A natural or man-made disaster also could disrupt the operations
of our partners and counterparties or result in increased prices for the products and services they provide to us.
Our chairman and chief executive officer effectively controls
our company.
We have two
classes of common stock — Class A common stock, each share of which entitles the holder thereof to one vote
on any matter submitted to our stockholders, and Class B common stock, each share of which entitles the holder thereof to ten
votes on any matter submitted to our stockholders. Our chairman and chief executive officer, William J. Rouhana, Jr., has
control over the vast majority of all the outstanding voting power as represented by our outstanding Class B and Class A
common stock and effectively controls CSS Holdings and CSS, which controls CSS Productions, and, in turn, our company.
Further, our bylaws provide that any member of our board may be removed with or without cause by the majority of our
outstanding voting power, thus Mr. Rouhana exerts significant control over our board. This concentration of ownership and
decision making may make it more difficult for other stockholders to effect substantial changes in our company and may also
have the effect of delaying, preventing or expediting, as the case may be, a change in control of our company.
21
Risks Related to the
Offering
The Notes will be unsecured and therefore
are effectively subordinated to any secured indebtedness we have incurred or may incur in the future.
The Notes will not be secured by any of
our assets. As a result, the Notes will be effectively subordinated to all of our existing and future secured indebtedness, such
as any new loan facility or other indebtedness to which we grant a security interest, to the extent of the value of the assets
securing such indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our
existing or future secured indebtedness may assert rights against the assets pledged to secure that indebtedness in order to receive
full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes.
The Notes will be structurally subordinated
to the existing and future indebtedness and other liabilities of our subsidiaries.
The Notes will be obligations exclusively
of Chicken Soup for the Soul Entertainment, Inc., and not any of our subsidiaries. In addition, the Notes will not be guaranteed
by any third-party, whether an affiliate or unrelated to us. None of the assets of our subsidiaries will be directly available
to satisfy the claims of holders of the Notes. Except to the extent we are a creditor with recognized claims against our subsidiaries,
all claims of creditors of our subsidiaries will have priority over our equity interests in such entities (and therefore the claims
of our creditors, including holders of the Notes) with respect to the assets of such entities. Even if we are recognized as a creditor
of one or more of these entities, our claims would still be effectively subordinated to any security interests in the assets of
any such entity and to any indebtedness or other liabilities of any such entity senior to our claims. Consequently, the Notes will
be structurally subordinated to all indebtedness and other liabilities of any of our subsidiaries, including, for example, the
unsecured $5,000,000 revolving credit facility between Landmark Studio Group, as borrower, and Cole Investments VII LLC, as lender.
In addition, our subsidiaries and these entities may incur substantial indebtedness in the future, all of which would be structurally
senior to the Notes.
The indenture under which the Notes
are issued contains limited protection for holders of the Notes.
The indenture under which the Notes are
issued offers limited protection to holders of the Notes. The terms of the indenture and the Notes do not restrict our ability
to engage in, or otherwise be a party to, a variety of corporate transactions, circumstances or events that could have a material
adverse impact on your investment in the Notes. In particular, except in limited circumstances, the terms of the indenture and
the Notes do not restrict our ability to:
·
issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations
that would be equal or senior in right of payment to the Notes, (2) any indebtedness or other obligations that would be secured
and therefore rank effectively senior in right of payment to the Notes to the extent of the values of the assets securing such
debt, (3) indebtedness that we incur that is guaranteed by one or more of our subsidiaries and which therefore is structurally
senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior
to our equity interests in those entities and therefore rank structurally senior to the Notes with respect to the assets of these
entities;
·
pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior
in right of payment to the Notes, including our Series A Preferred Stock or any subordinated indebtedness;
·
sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all
of our assets);
·
enter into transactions with affiliates;
·
create liens or enter into sale and leaseback transactions;
·
make investments; or
·
create restrictions on the payment of dividends or other amounts to us from our subsidiaries.
22
In addition, the indenture does not require
us to offer to purchase the Notes in connection with a change of control or any other event (but does afford us the right to redeem
the Notes prior to the prescribed redemption date upon the consummation of certain transactions).
Similarly, the terms of the indenture and
the Notes do not protect holders of the Notes in the event that we experience changes (including significant adverse changes) in
our financial condition, results of operations or credit ratings, if any.
Our ability to recapitalize, incur additional
debt and take a number of other actions that are not limited by the terms of the Notes may have important consequences for you
as a holder of the Notes, including making it more difficult for us to satisfy our obligations with respect to the Notes or negatively
affecting the trading value of the Notes.
Other debt we issue or incur in the future
could contain more protections for its holders than the indenture and the Notes, including additional covenants and events of default.
For example, the indenture under which the Notes are issued does not contain cross-default provisions. The issuance or incurrence
of any indebtedness with incremental protections could affect the market for and trading levels and prices of the Notes. Additionally,
even if we issue indebtedness that ranks equally with the Notes, the holders of such indebtedness will be entitled to share ratably
with you any proceeds distributed in connection with any insolvency, liquidation, reorganization, or dissolution, which may have
the effect of reducing the amount of proceeds paid to you. Incurrence of additional debt would also further reduce the cash available
to invest in operations, as a result of increased debt service obligations, and may cause a cross-default on our other obligations,
as described elsewhere in these Risk Factors. If new debt is added to our current indebtedness, the related risks that we now face
could be compounded.
An increase in market interest rates
could result in a decrease in the value of the Notes.
In general, as market interest rates rise,
notes bearing interest at a fixed rate decline in value. Consequently, if you purchase the Notes, and the market interest rates
subsequently increase, the market value of your Notes may decline. We cannot predict the future level of market interest rates.
There is no existing trading market
for the Notes, and, even if Nasdaq approves the listing of the Notes, an active trading market for the Notes may not develop, which
could limit your ability to sell the Notes and/or the market price of the Notes.
The Notes will be a new issue of debt securities
for which there initially will not be a trading market. Although we intend to list the Notes on the Nasdaq Global Market under
the symbol "[*]" and expect trading to commence within 30 days of the original issue date, we cannot assure you that
the Notes will be approved for listing on Nasdaq.
Moreover, even if the listing of the Notes
is approved, we cannot provide any assurances that an active trading market will develop or be maintained for the Notes or that
you will be able to sell your Notes. If the Notes are traded after their initial issuance, they may trade at a discount from their
initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, if any, general
economic conditions, our financial condition, performance and prospects and other factors. The underwriters have advised us that
they intend to make a market in the Notes, but they are not obligated to do so. The underwriters may discontinue any market-making
in the Notes at any time at their sole discretion.
We cannot assure you that the Notes will
be approved for listing on Nasdaq, that a liquid trading market will develop for the Notes, that you will be able to sell your
Notes at a particular time or that the price you receive when you sell will be favorable. To the extent an active trading market
does not develop, the liquidity and trading price for the Notes may be harmed. Accordingly, you may be required to bear the financial
risk of an investment in the Notes for an indefinite period of time.
We may choose to redeem the Notes when
prevailing interest rates are relatively low.
On or after [*] 2022, we may choose to redeem
the Notes from time to time, especially when prevailing interest rates are lower than the rate borne by the Notes. If prevailing
rates are lower at the time of redemption, you would not be able to reinvest the redemption proceeds in a comparable security at
an effective interest rate as high as the interest rate on the Notes being redeemed. Our redemption right also may adversely impact
your ability to sell the Notes as the optional redemption date or period approaches.
23
If we default on our obligations to
pay our other indebtedness, we may not be able to make payments on the Notes.
Any default under the agreements governing our existing or future
indebtedness that is not waived by the required lenders, and the remedies sought by the holders of such indebtedness, could make
us unable to pay principal and interest on the Notes and substantially decrease the market value of the Notes. If we are unable
to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal and
interest on our indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants,
in the instruments governing our indebtedness, we could be in default under the terms of the agreements governing such indebtedness,
including the Notes. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed
thereunder to be due and payable, together with accrued and unpaid interest. In addition, the lenders under any loan facility or
other financing that we may obtain in the future could elect to terminate their commitment, cease making further loans and institute
foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. Any such default may constitute
a default under the Notes, which could further limit our ability to repay our indebtedness, including the Notes. If our operating
performance declines, we may in the future need to seek to obtain waivers from our existing lenders at the time to avoid being
in default. If we breach any loan covenants, we may not be able to obtain such a waiver from the lenders. If this occurs, we would
be in default under the credit arrangement that we have, the lender could exercise its rights as described above, and we could
be forced into bankruptcy or liquidation. If we are unable to repay indebtedness, lenders having secured obligations could proceed
against the collateral securing their debt. Because any future credit facilities will likely have, customary cross-default provisions,
if the indebtedness under the Notes, or under any future credit facility is accelerated, we may be unable to repay or finance the
amounts due.
We will use the proceeds of this offering
to repay existing indebtedness and may use a portion of the proceeds to satisfy certain payment obligations to CPE Holdings, and
other affiliates of Sony Pictures Television, Inc., and will have broad discretion with respect to the use of any remaining proceeds.
We will use approximately $13.9 million of the net proceeds
from this offering to repay in its entirety the outstanding principal and interest we owed under our commercial loan facility with
Patriot Bank, N.A. We may also use a portion of the proceeds to fund a portion of our obligation to pay certain obligations to
CPE Holdings, Inc., an affiliate of Sony Pictures Television Inc., and other affiliates thereof. Accordingly, the portion of the
proceeds of this offering used for the foregoing purposes shall not be available to us to fund the operation of our business or
for other purposes. We will use any remaining proceeds for general working capital and will have broad discretion with respect
to the use of such proceeds and you will not have the opportunity as part of your investment decision to determine how such proceeds
will be used. Because of the number and variability of factors that will determine how we use such remaining net proceeds from
this offering, their ultimate use may vary. The failure by us to apply these funds effectively could harm our business.
We are not obligated to contribute to
a sinking fund to retire the Notes and the Notes are not guaranteed by a third-party.
We are not obligated to contribute funds
to a sinking fund to repay principal or interest on the Notes upon maturity or default. The Notes are not certificates of deposit
or similar obligations of, or guaranteed by, any depositary institution. Further, no private party or governmental entity insures
or guarantees payment on the Notes if we do not have enough funds to make principal or interest payments.
A downgrade, suspension or withdrawal
of the credit rating assigned by a rating agency to us or the Notes, if any, could cause the liquidity or market value of the Notes
to decline significantly.
Our credit rating is an assessment by third
parties of our ability to pay our obligations. Consequently, real or anticipated changes in our credit rating will generally affect
the market value of the Notes. Our credit rating, however, may not reflect the potential impact of risks related to market conditions
generally or other factors discussed above on the market value of or trading market for the Notes. Credit ratings are not a recommendation
to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion.
The Notes have received a rating of BBB from Egan-Jones Ratings
Company. An explanation of the significance of ratings may be obtained from the rating agency. Generally, rating agencies base
their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate.
Neither we nor any underwriter undertakes any obligation to maintain our credit rating or to advise holders of the Notes of any
changes in our credit rating. There can be no assurance that our credit rating will remain for any given period of time or that
such credit rating will not be lowered or withdrawn entirely by the rating agency if in their judgment future circumstances relating
to the basis of the credit rating, such as adverse changes in our company, so warrant.
24
USE OF PROCEEDS
We will use a portion of the net proceeds from this offering
to repay in its entirety the outstanding principal and interest we owed under our commercial loan facility with Patriot Bank, N.A.
As of the date of this prospectus the aggregate principal and interest owed by us under such facility was approximately $13.9 million.
We will use any remaining proceeds for general
working capital, which could include the use of some or all of such remaining proceeds to pay certain obligations to CPEH (an affiliate
of Sony Pictures Television) and affiliates thereof that may otherwise be payable in shares of our Series A preferred stock.
We may also use a portion of the proceeds
allocated to general working capital for payments in connection with acquisitions made by us from time to time.
25
CAPITALIZATION
The following table shows our cash and cash
equivalents and capitalization as of March 31, 2020:
·
on an actual basis;
·
on a pro forma basis giving effect to the sale of Notes in this offering and the receipt of net proceeds of approximately $23,400,000
from this offering, after deducting underwriting commissions of $1,250,000 million and estimated offering expenses payable by us
of approximately $350,000 (assuming no exercise of the underwriters' option to purchase additional Notes), and the use of
a portion thereof to repay all outstanding principal and interest owed by us to Patriot Bank, N.A. under our existing commercial
loan facility with such bank.
You should read the data set forth in the
table below in conjunction with "
Use of Proceeds
," appearing elsewhere in this prospectus, as well as our unaudited
financial statements and the accompanying notes and the section entitled "
Management's Discussion and Analysis of
Financial Condition and Results of Operations
," each included in our
Annual Report on Form 10-K for the year ended December 31, 2019
and our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020,
each of which is incorporated by reference
into this prospectus. Any use by us of net proceeds to pay obligations to CPEH (an affiliate of Sony Pictures Television) and its
affiliates in lieu of using our Series A preferred stock would reduce the amount of net proceeds otherwise available to us for
working capital.
March 31, 2020
Actual
As Adjusted (1)
(Unaudited)
Cash and cash equivalents
$
7,121,339
$
16,121,339
Total Commercial Loan, Revolving Credit Facility, & Notes
    Payable:
Commercial loan and revolving line of credit, net of
    unamortized deferred finance cost of $179,373 and $0 as adjusted, respectively
14,220,627
-
Revolving Credit Facility
5,000,000
5,000,000
Notes Payable due 2025, net of deferred offering costs of $0 actual and $1,600,000 as adjusted
-
23,400,000
Total Commercial Loan, Revolving Credit Facility, & Notes
Payable
19,220,627
28,400,000
Stockholder's Equity:
Series A cumulative redeemable perpetual preferred stock, $.0001 par value,
    liquidation preference of $25.00 per share, 10,000,000 shares authorized; 1,599,002 shares issued and outstanding, redemption value of $39,975,050
160
160
Class A common stock, $.0001 par value, 70,000,000 shares
    authorized; 4,267,725 shares issued and 4,193,490 outstanding
426
426
Class B common stock, $.0001 par value, 20,000,000
    shares authorized; 7,813,938 issued and outstanding
782
782
Additional paid-in capital
87,854,864
87,854,864
Deficit
(44,123,009
)
(44,123,009
)
Class A common stock held in treasury, at cost (74,235 shares)
(632,729
)
(632,729
)
Total stockholders' equity
43,100,494
43,100,494
Total Capitalization
$
62,321,121
$
71,500,494
(1)
Reflects the full amount of notes offered under this prospectus, for aggregate net proceeds of $23,400,000.
The
table above is based on:
●
4,193,490 shares of Class A Common Stock outstanding as of March 31, 2020, and excludes, as of such date:
o
1,032,500 shares of Class A Common Stock reserved for issuance pursuant to outstanding options and stock awards under our 2017 stock incentive plan ("2017 Plan");
o
an additional 217,500 shares of Class A Common Stock available for issuance under the 2017 Plan;
o
678,822 shares of Class A Common Stock underlying our outstanding Class W warrants with an exercise price of $7.50 per share, 180,618 shares of Class A Common Stock underlying our Class Z warrants with an exercise price of $12.00 per share, 800,000 shares of Class A Common Stock underlying our outstanding Class I Warrants with an exercise price of $8.13 per share, 1,200,000 shares of Class A Common Stock underlying our Class II Warrants with an exercise price of $9.67 per share, 380,000 shares of Class A Common Stock underlying our Class III-A Warrants with an exercise price of $11.61 per share, and 1,620,000 shares of Class A Common Stock underlying our Class III-B Warrants with an exercise price of $11.61 per share.
●
7,813,938 shares of Class B Common Stock outstanding as of March 31, 2020; and
●
1,599,002 shares of Series A Preferred Stock outstanding as of March 31, 2020.
26
DESCRIPTION OF THE NOTES
The Notes will be issued under the indenture
between us and U.S. Bank National Association, as trustee, dated [*], 2020 and a first supplemental indenture thereto to be dated
[*], 2020, the date of issuance of the Notes, between us and U.S. Bank National Association, as trustee. We refer to the indenture
and the first supplemental indenture collectively as the "indenture" and to U.S. Bank National Association as the "trustee."
The Notes are governed by the indenture, as required by federal law for all bonds and notes of companies that are publicly offered.
An indenture is a contract between us and the financial institution acting as trustee on your behalf and is subject to and governed
by the Trust Indenture Act of 1939, as amended. The trustee has two main roles. First, the trustee can enforce your rights against
us if we default. There are some limitations on the extent to which the trustee acts on your behalf, described in the second paragraph
under
"— Events of Default — Remedies if an Event of Default Occurs
." Second,
the trustee performs certain administrative duties for us with respect to the Notes.
This section includes a description of the
material terms of the Notes and the indenture. Because this section is a summary, however, it does not describe every aspect of
the Notes and the indenture. We urge you to read the indenture because it, and not this description, defines your rights as a holder
of the Notes. The indenture is attached as an exhibit to the Registration Statement on Form S-1 to which this prospectus forms
a part.
General
The Notes will mature on [*], 2025. The
principal payable at maturity will be 100% of the aggregate outstanding principal amount. The interest rate of the Notes is [*]%
per year and will be paid every March 30, June 30, September 30, and December 30, beginning September 30,
2020, and the regular record dates for interest payments will be every March 15, June 15, September 15, and December 15,
beginning September 15, 2020. If an interest payment date falls on a non-business day, the applicable interest payment will be
made on the next business day and no additional interest will accrue as a result of such delayed payment. The initial interest
period will be the period from and including September 30, 2020, to, but excluding, the initial interest payment date, and
the subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest
payment date or the stated maturity date, as the case may be.
We will issue the Notes in denominations of $25 and integral
multiples of $25 in excess thereof. The Notes will not be subject to any sinking fund and holders of the Notes will not
have the option to have the Notes repaid prior to the stated maturity date.
Except as described under the captions "
Events
of Default
" and "
Merger or Consolidation
" in this prospectus, the indenture does not contain any provisions
that give you protection in the event we issue a large amount of debt or we are acquired by another entity.
Optional Redemption
The Notes may be redeemed in whole or in part at any time or
from time to time at our option on or after [*], 2022 (two years from the Original Issue Date) upon not less than 30 days
nor more than 60 days written notice by mail prior to the date fixed for redemption thereof. The redemption price shall include
(i) 100% of the outstanding principal amount of the Notes called for redemption on the date fixed for redemption plus (ii)
all accrued and unpaid interest payments otherwise payable thereon through the date fixed for redemption. In addition, in the event
of a merger or sale of the company or substantially all of its assets or a majority of the Company's equity (on an after
issued basis) in one or a series of related transactions, the Company shall have the right to redeem the Notes prior to [*], 2022
in connection with the consummation of such transactions on the foregoing terms.
You may be prevented from exchanging or
transferring the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice
will provide that, upon surrender of such Note, you will receive, without a charge, a new Note or Notes of authorized denominations
representing the principal amount of your remaining unredeemed Notes. Any exercise of our option to redeem the Notes will be done
in accordance with the indenture.
If we redeem only some of the Notes, the
trustee will determine the method for selection of the particular Notes to be redeemed, in accordance with the indenture and in
accordance with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default
in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for
redemption.
27
Rating of the Notes
Our Notes have a credit rating of BBB from Egan-Jones Ratings
Company. An explanation of the significance of ratings may be obtained from the rating agency. Generally, rating agencies base
their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate.
The rating of the Notes should be evaluated independently from similar ratings of other securities. A credit rating of a security
is paid for by the issuer and is not a recommendation to buy, sell or hold securities and maybe subject to review, revision, suspension,
reduction or withdrawal at any time by the assigning rating agency. See "
Risk Factors — A downgrade, suspension
or withdrawal of the credit rating assigned by a rating agency to us or the Notes, if any, could cause the liquidity or market
value of the Notes to decline significantly
."
Global Securities
Each Note will be issued in book-entry form
and represented by a global security that we deposit with and register in the name of The Depository Trust Company, New York, New
York, known as DTC, or its nominee. A global security may not be transferred to or registered in the name of anyone other than
the depositary or its nominee, unless special termination situations arise. As a result of these arrangements, the depositary,
or its nominee, will be the sole registered owner and holder of all the Notes represented by a global security, and investors will
be permitted to own only beneficial interests in a global security. For more information about these arrangements, see "
— Book-Entry
Procedures
" below.
Termination of a Global Security
If a global security is terminated for any
reason, interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange,
the choice of whether to hold the certificated Notes directly or in street name will be up to the investor. Investors must consult
their own banks or brokers to find out how to have their interests in a global security transferred on termination to their own
names, so that they will be holders.
Payment and Paying Agents
We will pay interest to the person listed
in the trustee's records as the owner of the Notes at the close of business on a particular day in advance of each due date
for interest, even if that person no longer owns the Note on the interest due date. That day, usually about two weeks in advance
of the interest due date, is called the "record date." Because we will pay all the interest for an interest period
to the holders on the record date, holders buying and selling the Notes must work out between themselves the appropriate purchase
price. The most common manner is to adjust the sales price of the Notes to prorate interest fairly between buyer and seller based
on their respective ownership periods within the particular interest period. This prorated interest amount is called "accrued
interest."
Payments on Global Securities
We will make payments on the Notes so long
as they are represented by a global security in accordance with the applicable policies of the depositary as in effect from time
to time. Under those policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders
who own beneficial interests in the global security. An indirect holder's right to those payments will be governed by the
rules and practices of the depositary and its participants, as described under "
— Book-Entry Procedures
."
Payments on Certificated Securities
In the event the Notes become represented
by certificated securities, we will make payments on the Notes as follows. We will pay interest that is due on an interest payment
date to the holder of the Notes as shown on the trustee's records as of the close of business on the regular record date
at our office in New York, New York. We will make all payments of principal and premium, if any, by check at the office of the
applicable trustee in New York, New York and/or at other offices that may be specified in the indenture or a notice to holders
against surrender of the Note.
28
Alternatively, at our option, we may pay
any cash interest that becomes due on the Notes by mailing a check to the holder at his, her or its address shown on the trustee's
records as of the close of business on the regular record date or by transfer to an account at a bank in the United States, in
either case, on the due date.
Payment When Offices Are Closed
If any payment is due on the Notes on
a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next
business day in this situation will be treated under the indenture as if they were made on the original due date. Such
payment will not result in a default under the Notes or the indenture, and no interest will accrue on the payment amount from
the original due date to the next day that is a business day.
Book-entry and other indirect holders
should consult their banks or brokers for information on how they will receive payments on the Notes.
Events of Default
You will have rights if an Event of Default
occurs in respect of the Notes, as described later in this subsection.
The term "Event of Default"
in respect of the Notes means any of the following:
•
We do not pay the principal (or premium, if any) of any Note when due.
•
We do not pay interest on any Note when due, and such default is not cured within 30 days.
•
We remain in breach of a covenant in respect of the Notes for 60 days after we receive a written notice of default stating
we are in breach (the notice must be sent by either the trustee or holders of at least 25% of the principal amount of the Notes).
•
We file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and in the case of certain
orders or decrees entered against us under bankruptcy law, such order or decree remains undischarged or unstayed for a period of
60 days.
An Event of Default for the Notes does not
necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other indenture.
The trustee may withhold notice to the holders of the Notes of any default, except in the payment of principal or interest, if
it in good faith considers the withholding of notice to be in the best interests of the holders.
Remedies if an Event of Default Occurs
If an Event of Default has occurred and
is continuing, the trustee or the holders of not less than 25% in principal amount of the Notes may declare the entire principal
amount of all the Notes to be due and immediately payable. This is called a declaration of acceleration of maturity. In certain
circumstances, a declaration of acceleration of maturity may be canceled by the holders of a majority in principal amount of the
Notes if  (1) we have deposited with the trustee all amounts due and owing with respect to the Notes (other than principal
that has become due solely by reason of such acceleration) and certain other amounts, and (2) any other Events of Default
have been cured or waived.
Except in cases of default, where the trustee
has some special duties, the trustee is not required to take any action under the indenture at the request of any holders unless
the holders offer the trustee protection from expenses and liability (called an "indemnity"). If indemnity is provided,
the holders of a majority in principal amount of the Notes may direct the time, method and place of conducting any lawsuit or other
formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances.
No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default.
29
Before you are allowed to bypass the trustee
and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating
to the Notes, the following must occur:
•
you must give the trustee written notice that an Event of Default has occurred and remains uncured;
•
the holders of at least 25% in principal amount of all the Notes must make a written request that the trustee take action because
of the default and must offer indemnity and/or security to the trustee against the cost and other liabilities of taking that action;
•
the trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity and/or security;
and
•
the holders of a majority in principal amount of the Notes must not have given the trustee a direction inconsistent with the
above notice during that 60-day period.
However, you are entitled at any time to
bring a lawsuit for the payment of money due on your Notes on or after the due date.
Book-entry and other indirect holders
should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and
how to declare or cancel an acceleration of maturity.
Each year, we will furnish to the trustee
a written statement of certain of our officers certifying that to their knowledge we are in compliance with the indenture and the
Notes, or else specifying any default.
Waiver of Default
The holders of a majority in principal amount
of the Notes may waive any past defaults other than:
•
the payment of principal or interest; or
•
in respect of a covenant that cannot be modified or amended without the consent of each holder.
Merger or Consolidation
Under the terms of the indenture, we are
generally permitted to consolidate or merge with another entity. We are also permitted to sell all or substantially all of our
assets to another entity. However, we may not take any of these actions unless all the following conditions are met:
•
Where we merge out of existence or convey or transfer our assets substantially as an entirety, the resulting entity must agree
to be legally responsible for our obligations under the Notes.
•
The merger or sale of assets must not cause a default on the Notes and we must not already be in default (unless the merger
or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred
and has not been cured, as described under "Events of Default" above. A default for this purpose would also include
any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist
for a specific period of time were disregarded.
•
We must deliver certain certificates and documents to the trustee.
30
Modification or Waiver
There are three types of changes we can
make to the indenture and the Notes.
Changes Requiring Your Approval
First, there are changes that we cannot
make to the Notes without your specific approval. The following is a list of those types of changes:
•
change the stated maturity of the principal of or interest on the Notes;
•
reduce any amounts due on the Notes;
•
reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;
•
change the place or currency of payment on a Note;
•
impair your right to sue for payment;
•
reduce the percentage of holders of Notes whose consent is needed to modify or amend the indenture; and
•
reduce the percentage of holders of Notes whose consent is needed to waive compliance with certain provisions of the indenture
or to waive certain defaults.
Changes Not Requiring Approval
The second type of change does not require
any vote by the holders of the Notes. This type is limited to clarifications and certain other changes that would not adversely
affect holders of the Notes in any material respect.
Changes Requiring Majority Approval
Any other change to the indenture and the
Notes would require the following approval:
•
if the change affects only the Notes, it must be approved by the holders of a majority in principal amount of the Notes; and
•
if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders
of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one
class for this purpose.
In both cases, the required approval must
be given by written consent.
The holders of a majority in principal amount
of all of the series of debt securities issued under an indenture, voting together as one class for this purpose, may waive our
compliance with some of our covenants in that indenture. However, we cannot obtain a waiver of a payment default or of any of the
matters covered by the bullet points included above under "— Changes Requiring Your Approval."
31
Further Details Concerning Voting
When taking a vote, we will use the following
rules to decide how much principal to attribute to the Notes:
The Notes will not be considered outstanding,
and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption. The Notes
will also not be eligible to vote if they have been fully defeased as described later under "Defeasance — Full
Defeasance."
We will generally be entitled to set any
day as a record date for the purpose of determining the holders of the Notes that are entitled to vote or take other action under
the indenture. However, the record date may not be more than 30 days before the date of the first solicitation of holders
to vote on or take such action. If we set a record date for a vote or other action to be taken by holders of the Notes, that vote
or action may be taken only by persons who are holders of the Notes on the record date and must be taken within eleven months
following the record date.
Book-entry and other indirect holders
should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the indenture
or the Notes or request a waiver.
Defeasance
"Defeasance" means that, by
depositing with a trustee an amount of cash and/or government securities sufficient to pay all principal and interest, if any,
on the Notes when due and satisfying any additional conditions noted below, we will be deemed to have been discharged from our
obligations under the Notes. In the event of a "covenant defeasance," upon depositing such funds and satisfying similar
conditions discussed below we would be released from the restrictive covenants under the indenture relating to the Notes.
The following defeasance provisions will
be applicable to the Notes:
Covenant Defeasance
Under the indenture, we can make the deposit
described below and be released from some of the restrictive covenants in the indenture under which the Notes were issued. This
is called "covenant defeasance." In that event, you would lose the protection of those restrictive covenants but would
gain the protection of having money or money and government securities set aside in trust to repay your Notes. If we achieve covenant
defeasance and your Notes were subordinated as described under "Indenture Provisions — Ranking" below,
such subordination would not prevent the trustee under the indenture from applying the funds available to it from the deposit described
in the first bullet to the payment of amounts due in respect of such debt securities for the benefit of the subordinated debtholders.
In order to achieve covenant defeasance, we must do the following:
•
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes either
cash or a combination of cash and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make
interest, principal and any other payments on the Notes on their various due dates.
•
We must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S. federal income tax law,
we may make the above deposit without causing you to be taxed on the Notes any differently than if we did not make the deposit.
•
We must deliver to the trustee a legal opinion and officers' certificate stating that all conditions precedent to covenant
defeasance have been complied with.
•
Defeasance must not result in a breach or violation of, or result in a default under, the indenture or any of our other material
agreements or instruments.
•
No default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of
default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days.
If we accomplish covenant defeasance, you
can still look to us for repayment of the Notes if there were a shortfall in the trust deposit or the trustee is prevented from
making payment. For example, if one of the remaining Events of Default occurred (such as our bankruptcy) and the Notes became immediately
due and payable, there might be a shortfall. Depending on the event causing the default, you may not be able to obtain payment
of the shortfall.
32
Full Defeasance
We can legally release ourselves from all
payment and other obligations on the Notes (called "full defeasance") if we put in place the following other arrangements
for you to be repaid:
·
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination
of money and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make interest, principal
and any other payments on the Notes on their various due dates.
·
We must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal tax law or an
IRS ruling that allows us to make the above deposit without causing you to be taxed on the Notes any differently than if we did
not make the deposit. Under current U.S. federal tax law the deposit and our legal release from the Notes would be treated as though
we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange
for your Notes and you would recognize gain or loss on the Notes at the time of the deposit.
·
We must deliver to the trustee a legal opinion and officers' certificate stating that all conditions precedent to defeasance
have been complied with.
·
Defeasance must not result in a breach or violation of, or constitute a default under, of the indenture or any of our other
material agreements or instruments;
·
No default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of
default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days.
If we ever did accomplish full defeasance,
as described above, you would have to rely solely on the trust deposit for repayment of the Notes. You could not look to us for
repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our
lenders and other creditors if we ever became bankrupt or insolvent. If your Notes were subordinated as described later under "— Indenture
Provisions — Ranking," such subordination would not prevent the trustee under the Indenture from applying
the funds available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts
due in respect of such Notes for the benefit of the subordinated debtholders.
Limitation on Restricted Payments Covenant
In addition to any other covenants described
in this prospectus, as well as standard covenants relating to payment of principal and interest, maintaining an office where payments
may be made or where securities can be surrendered for payment, payment of taxes by us and related matters, upon (i) the failure
to pay interest on any Note when such interest is due and payable or (ii) the occurrence of an Event of Default and while any such
interest payment remains unpaid or such Event of Default is ongoing the indenture prohibits us from:
(1)        declaring
or paying any dividend, making any distribution on or in respect of our capital stock or making any similar payment to the direct
or indirect holders of our capital stock in their capacity as such;
33
(2)        purchasing,
repurchasing, redeeming, retiring or otherwise acquiring ("Purchase") for value any capital stock of the Company held
by any Person (other than capital stock held by the Company or a subsidiary) or any capital stock of a subsidiary held by any Affiliate
of the Company;
(3)        purchasing
for value, prior to scheduled maturity, any scheduled repayment of any subordinated obligations; or
(4)        making any investment in any
Person.
​
Form,
Exchange and Transfer of Certificated Registered Securities
If registered Notes cease to be issued in
book-entry form, they will be issued:
•
only in fully registered certificated form;
•
without interest coupons; and
•
unless we indicate otherwise, in denominations of  $25 and amounts that are multiples of  $25.
Holders may exchange their certificated
securities for Notes of smaller denominations or combined into fewer Notes of larger denominations, as long as the total principal
amount is not changed and as long as the denomination is equal to or greater than $25.
Holders may exchange or transfer their
certificated securities at the corporate trust office of the trustee. We have appointed the trustee to act as our agent for
registering Notes in the names of holders transferring Notes. We may appoint another entity to perform these functions or
perform them ourselves.
Holders will not be required to pay a service
charge to transfer or exchange their certificated securities, but they may be required to pay any tax or other governmental charge
associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the
holder's proof of legal ownership.
We may appoint additional transfer agents
or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer
agent acts.
If any certificated securities of a particular
series are redeemable and we redeem less than all the debt securities of that series, we may block the transfer or exchange of
those debt securities during the period beginning 15 days before the day we mail the notice of redemption and ending on the
day of that mailing, in order to freeze the list of holders to prepare the mailing. We may also refuse to register transfers or
exchanges of any certificated securities selected for redemption, except that we will continue to permit transfers and exchanges
of the unredeemed portion of any debt security that will be partially redeemed.
If a registered debt security is issued
in book-entry form, only the depositary will be entitled to transfer and exchange the debt security as described in this subsection,
since it will be the sole holder of the debt security.
Resignation of Trustee
The trustee may resign or be removed with
respect to the Notes provided that a successor trustee is appointed to act with respect to the Notes. In the event that two or
more persons are acting as trustee with respect to different series of indenture securities under the indenture, each of the trustees
will be a trustee of a trust separate and apart from the trust administered by any other trustee.
Indenture Provisions — Ranking
The Notes will be our direct unsecured obligations
and will rank:
•
Pari passu
with, which means equal to, all of our currently outstanding
unsecured unsubordinated indebtedness issued by us. The Notes will also rank
pari passu
with our general liabilities,
which consist of trade and other payables, including any outstanding dividend payable, interest and debt fees payable, vendor payables
and accrued expenses such as auditor fees, legal fees, director fees, etc. In total, these general liabilities were $59.2 million
as of March 31, 2020. We have the ability to issue from time to time other debt securities with terms different from the Notes
and, without consent of the holders thereof, as well as the ability to reopen the Notes and issue additional Notes. If we issue
additional debt securities, these additional debt securities could rank higher in priority of payment or have a lien or other security
interest greater than that accorded to the holders of the Notes.
34
•
Senior to any of our future indebtedness that expressly provides it is subordinated to the Notes. We currently do not have
outstanding debt that is subordinated to the Notes and do not currently intend to issue indebtedness that expressly provides that
it is subordinated to the Notes. Therefore, the Notes, as currently contemplated, will not be senior to any indebtedness or obligations.
•
Effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is initially unsecured
to which we subsequently a grant security interest), to the extent of the value of the assets securing such indebtedness. Because
the Notes will not be secured by any of our assets, they will be effectively subordinated to any existing secured indebtedness,
any indebtedness that we may incur in the future, such as a new credit facility to replace the commercial line facility we have
with Patriot Bank N.A. (which we intend to repay from the net proceeds of this offering), or any indebtedness that is initially
unsecured to which we subsequently grant a security interest, to the extent of the value of the assets securing such indebtedness.
In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness
may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness
before the assets may be used to pay other creditors, including the holders of the Notes, and any assets of our subsidiaries will
not be directly available to satisfy the claims of our creditors, including holders of the Notes.
•
Structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries and financing
vehicles since the Notes are obligations exclusively of Chicken Soup for the Soul Entertainment, Inc. and not of any of our subsidiaries.
Structural subordination means that creditors of a parent entity are subordinate to creditors of a subsidiary entity with respect
to the subsidiary's assets.
​
Book-Entry
Procedures
The Notes will be represented by global
securities that will be deposited and registered in the name of DTC or its nominee. This means that, except in limited circumstances,
you will not receive certificates for the Notes.
Beneficial interests in the Notes will be
represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect
participants in DTC. Investors may elect to hold interests in the Notes through either DTC, if they are a participant, or indirectly
through organizations that are participants in DTC.
The Notes will be issued as fully registered
securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by
an authorized representative of DTC. One fully-registered certificate will be issued for each issuance of the Notes, in the aggregate
principal amount of such issue, and will be deposited with DTC. Interests in the Notes will trade in DTC's Same Day Funds
Settlement System, and any permitted secondary market trading activity in such Notes will, therefore, be required by DTC to be
settled in immediately available funds. We will not have and neither the Trustee nor the Paying Agent will have any responsibility
for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures
governing their operations.
DTC is a limited-purpose trust company organized
under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and
a "clearing agency" registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds and provides
asset servicing for over 1.3 million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market
instruments from over 131 countries and territories that DTC's participants ("Direct Participants") deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited
securities through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates
the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly owned subsidiary of
The Depository Trust & Clearing Corporation ("DTCC").
35
DTCC is the holding company for DTC,
National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing
agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such
as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through
or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). The DTC Rules applicable to its participants are on file with the SEC. More information about DTC can
be found at
www.dtcc.com
and
www.dtc.org
.
Purchases of the Notes under the DTC system
must be made by or through Direct Participants, which will receive a credit for the Notes on DTC's records. The ownership
interest of each actual purchaser of each security, or the "Beneficial Owner," is in turn to be recorded on the Direct
and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements
of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers
of ownership interests in the Notes are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Notes,
except in the event that use of the book-entry system for the Notes is discontinued.
To facilitate subsequent transfers, all
Notes deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. or
such other name as may be requested by an authorized representative of DTC. The deposit of the Notes with DTC and their registration
in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge
of the actual Beneficial Owners of the Notes; DTC's records reflect only the identity of the Direct Participants to whose
accounts the Notes are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications
by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants
to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be
in effect from time to time.
Redemption notices shall be sent to DTC.
If less than all of the Notes within an issue are being redeemed, DTC's practice is to determine by lot the amount of the
interest of each Direct Participant in such issue to be redeemed.
Redemption proceeds, distributions, and
interest payments on the Notes will be made to Cede & Co., or such other nominee as may be requested by an authorized representative
of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding
detail information from us or the Trustee on the payment date in accordance with their respective holdings shown on DTC's
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is
the case with securities held for the accounts of customers in bearer form or registered in "street name," and will
be the responsibility of such Participant and not of DTC nor its nominee, the Trustee, or us, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and interest payments to Cede
 & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of us or the
Trustee, but disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments
to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services
as securities depository with respect to the Notes at any time by giving reasonable notice to us or to the Trustee. Under such
circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and
delivered. We may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository).
In that event, certificates will be printed and delivered to DTC.
The information in this section concerning
DTC and DTC's book-entry system has been obtained from sources that we believe to be reliable, but we take no responsibility
for the accuracy thereof.
36
CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following discussion is a general summary
of certain U.S. federal income tax considerations (and, in the case of a non-U.S. holder (as defined below), certain U.S. federal
estate tax consequences) applicable to an investment in the Notes. This summary does not purport to be a complete description of
the income and estate tax considerations applicable to such an investment. The discussion is based upon the Internal Revenue Code
of 1986, as amended (the "Code"), Treasury Regulations, and administrative and judicial interpretations, each as of
the date of this prospectus and all of which are subject to change, potentially with retroactive effect. You should consult your
own tax advisor with respect to tax considerations that pertain to your purchase, ownership and disposition of the Notes.
This discussion deals only with Notes held
as capital assets within the meaning of Section 1221 of the Code (generally, property held for investment) and does not purport
to deal with persons in special tax situations, such as financial institutions, insurance companies, controlled foreign corporations,
passive foreign investment companies and regulated investment companies (and shareholders of such corporations), dealers in securities
or currencies, traders in securities, former citizens of the United States, persons holding the Notes as a hedge against currency
risks or as a position in a "straddle," "hedge," "constructive sale transaction" or "conversion
transaction" for tax purposes, entities that are tax-exempt for U.S. federal income tax purposes, retirement plans, individual
retirement accounts, tax-deferred accounts, persons subject to the alternative minimum tax, pass-through entities (including partnerships
and entities and arrangements classified as partnerships for U.S. federal income tax purposes) and beneficial owners of pass-through
entities, or persons whose functional currency is not the U.S. dollar. It does not deal with beneficial owners of the Notes other
than original purchasers of the Notes who acquire the Notes in this offering for a price equal to their original issue price (i.e.,
the first price at which a substantial amount of the notes is sold other than to bond houses, brokers, or similar persons or organizations
acting in the capacity of underwriters, placement agents or wholesalers). It also does not address the U.S. federal income tax
consequences to beneficial owners of the Notes subject to the special tax accounting rules under Section 451(b) of the Code. In
addition, this summary only addresses U.S. federal income tax consequences (and, in the case of a non-U.S. holder certain U.S.
federal estate tax consequences), and, except as otherwise noted below, does not address any U.S. state or local or non-U.S. tax
consequences. If you are considering purchasing the Notes, you should consult your own tax advisor concerning the application of
the U.S. federal tax laws to you in light of your particular situation, as well as any consequences to you of purchasing, owning
and disposing of the Notes under the laws of any other taxing jurisdiction.
For purposes of this discussion, the term
 "U.S. holder" means a beneficial owner of a Note that is, for U.S. federal income tax purposes, (i) an individual citizen
or resident of the United States, (ii) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes),
created or organized in or under the laws of the United States or any State thereof or the District of Columbia, (iii) a trust
(a) subject to the control of one or more U.S. persons and the primary supervision of a court in the United States, or (b) that
existed on August 20, 1996 and has made a valid election (under applicable Treasury Regulations) to be treated as a domestic trust,
or (iv) an estate the income of which is subject to U.S. federal income taxation regardless of its source. The term "non-U.S.
holder" means a beneficial owner of a Note that is neither a U.S. holder nor a partnership (including an entity or arrangement
treated as a partnership for U.S. federal income tax purposes). An individual may, subject to exceptions, be deemed to be a resident
alien, as opposed to a non-resident alien, by, among other ways, being present in the United States (i) on at least 31 days in
the calendar year, and (ii) for an aggregate of at least 183 days during a three-year period ending in the current calendar year,
counting for such purposes all of the days present in the current year, one-third of the days present in the immediately preceding
year, and one-sixth of the days present in the second preceding year. Resident aliens are subject to U.S. federal income tax as
if they were U.S. citizens.
If a partnership (including an entity or
arrangement treated as a partnership for U.S. federal income tax purposes) holds any Notes, the U.S. federal income tax treatment
of a partner of the partnership generally will depend upon the status of the partner, the activities of the partnership and certain
determinations made at the partner level. Partners of partnerships holding Notes should consult their own tax advisors.
Taxation of Note Holders
Under present law, the Notes will constitute
our indebtedness for U.S. federal income tax purposes and this discussion assumes that to be the case. Accordingly, we intend to
treat all payments made with respect to the Notes consistent with this characterization.
37
Taxation of U.S. Holders
.
Payments or accruals of interest on a Note generally will be taxable to a U.S. holder as ordinary interest income at the time they
are received (actually or constructively) or accrued, in accordance with the U.S. holder's regular method of tax accounting.
Upon the sale, exchange, redemption, retirement
or other taxable disposition of a Note, a U.S. holder generally will recognize capital gain or loss equal to the difference between
the amount realized on the sale, exchange, redemption, retirement or other taxable disposition (excluding amounts representing
accrued and unpaid interest, which are treated as ordinary income to the extent not previously included in income) and the U.S.
holder's adjusted tax basis in the Note. A U.S. holder's adjusted tax basis in a Note generally will equal the U.S.
holder's initial investment in the Note. Capital gain or loss generally will be long-term capital gain or loss if the Note
was held for more than one year. Long-term capital gains recognized by certain non-corporate U.S. holders (including individuals)
generally are eligible for reduced rates of taxation. The distinction between capital gain or loss and ordinary income or loss
is also important in other contexts, for example, for purposes of the limitations on a U.S. holder's ability to offset capital
losses against ordinary income.
Unearned Income Medicare Contribution. A
tax of 3.8% will be imposed on certain "net investment income" (or "undistributed net investment income,"
in the case of estates and trusts) received by taxpayers other than corporations with adjusted gross income above certain threshold
amounts. "Net investment income" as defined for U.S. federal Medicare contribution purposes generally includes interest
payments and gain recognized from the sale, exchange, redemption, retirement or other taxable disposition of the Notes. Tax-exempt
trusts, which are not subject to income taxes generally, and foreign individuals will not be subject to this tax. U.S. holders
should consult their own tax advisors regarding the effect, if any, of this tax on their ownership and disposition of the Notes.
Taxation of Non-U.S. Holders
.
A non-U.S. holder generally will not be subject to U.S. federal income or withholding taxes on payments of principal or interest
on a Note provided that (i) income on the Note is not effectively connected with the conduct by the non-U.S. holder of a trade
or business within the United States, (ii) the non-U.S. holder is not a controlled foreign corporation related to the Company through
stock ownership, (iii) the non-U.S. holder is not a bank receiving interest described in Section 881(c)(3)(A) of the Code, (iv)
the non-U.S. holder does not own (directly or indirectly, actually or constructively) 10% or more of the total combined voting
power of all classes of our capital stock of the Company, and (v) the non-U.S. holder has provided a statement prior to the payment
of interest in the year in which a payment occurs or in the preceding three years, on an Internal Revenue Service (the "IRS")
Form W-8BEN, Form W-8BEN-E, or other applicable form signed under penalties of perjury that includes its name and address and certifies
that the non-U.S. holder is the beneficial owner and is not a U.S. person in compliance with applicable requirements, or satisfies
documentary evidence requirements for establishing that it is a non-U.S. holder. These forms may be required to be periodically
updated.
A non-U.S. holder that is not exempt from
tax under these rules generally will be subject to U.S. federal income tax withholding on payments of interest on the Notes at
a rate of 30% unless (i) the income is effectively connected with the conduct of a U.S. trade or business (and, under certain income
tax treaties, is attributable to a permanent establishment maintained in the United States by the non-U.S. holder), so long as
the non-U.S. holder has provided, prior to payment of such interest, an IRS Form W-8ECI or substantially similar substitute form
stating that the interest on the Notes is effectively connected with the non-U.S. holder's conduct of a trade or business
in the U.S. in which case the interest will be subject to U.S. federal income tax on a net income basis as applicable to U.S. holders
generally (unless an applicable income tax treaty provides otherwise), or (ii) an applicable income tax treaty provides for a lower
rate of, or exemption from, withholding tax.
In the case of a non-U.S. holder that is
a corporation and that receives income that is effectively connected with the conduct of a U.S. trade or business, such income
may also be subject to a branch profits tax (which is generally imposed on a non-U.S. corporation on the actual or deemed repatriation
from the United States of earnings and profits attributable to a U.S. trade or business) at a 30% rate. The branch profits tax
may not apply (or may apply at a reduced rate) if the non-U.S. holder is a qualified resident of a country with which the United
States has an income tax treaty.
To claim the benefit of an income tax treaty
or to claim exemption from withholding because income is effectively connected with a U.S. trade or business, the non-U.S. holder
must timely provide the appropriate properly executed IRS forms. The non-U.S. holder must inform the recipient of any changes on
these forms within 30 days of such change. These forms may be required to be periodically updated. Also, a non-U.S. holder who
is claiming the benefits of a treaty may be required to obtain a United States taxpayer identification number and to provide certain
documentary evidence issued by foreign governmental authorities to prove residence in the foreign country.
38
Generally, a non-U.S. holder will not be
subject to U.S. federal income or withholding taxes on any amount that constitutes capital gain upon the sale, exchange, redemption,
retirement or other taxable disposition of a Note, provided that (i) the gain is not effectively connected with the conduct of
a trade or business in the United States by the non-U.S. holder (or, if required by an applicable income tax treaty, is not attributable
to a permanent establishment maintained in the United States by the non-U.S. holder) and (ii) the non-U.S. holder is not an individual
who is present in the United States for 183 days or more in the taxable year of the sale, exchange, redemption, retirement or other
taxable disposition and meets certain other conditions (unless such holder is eligible for relief under an applicable income tax
treaty). Certain other exceptions may be applicable, and a non-U.S. holder should consult its tax advisor in this regard.
A Note that is held by an individual who,
at the time of death, is not a citizen or resident of the United States (as specially defined for U.S. federal estate tax purposes)
generally will not be subject to the U.S. federal estate tax, unless, at the time of death, (i) such individual directly or indirectly,
actually or constructively, owns ten percent (10%) or more of the total combined voting power of all classes of our stock entitled
to vote within the meaning of Section 871(h)(3) of the Code or (ii) such individual's interest in the Notes is effectively
connected with the individual's conduct of a U.S. trade or business.
Information Reporting and Backup Withholding
.
A U.S. holder (other than an "exempt recipient," including a corporation and certain other persons who, when required,
demonstrate their exempt status) may be subject to backup withholding on, and to information reporting requirements with respect
to, payments of principal and interest on, and proceeds from the sale, exchange, redemption, retirement or other taxable disposition
of the Notes. In general, if a non-corporate U.S. holder subject to information reporting fails to furnish a correct taxpayer identification
number or otherwise fails to comply with applicable backup withholding requirements, backup withholding at the applicable rate
may apply.
The amount of interest we pay to a non-U.S.
holder on the Notes will be reported to such non-U.S. holder and to the IRS annually on an IRS Form 1042-S even if the non-U.S.
holder is exempt from the 30% withholding tax described above. Copies of the information returns reporting those payments and the
amounts withheld, if any, may also be made available to the tax authorities in the country where the non-U.S. holder is resident
under provisions of an applicable income tax treaty or agreement.
In addition, backup withholding tax and
certain other information reporting requirements apply to payments of principal and interest on, and proceeds from the sale, exchange,
redemption, retirement or other taxable disposition of the Notes, unless an exemption applies. Backup withholding and information
reporting will not apply to payments we make to a non-U.S. holder if such non-U.S. holder has provided to the applicable withholding
agent under penalties of perjury the required certification of their non-U.S. person status as discussed above (and the applicable
withholding agent does not have actual knowledge or reason to know that they are a U.S. person) or if the non-U.S. holder is an
exempt recipient.
If a non-U.S. holder sells or redeems a
Note through a U.S. broker or the U.S. office of a foreign broker, the proceeds from such sale or redemption will be subject to
information reporting and backup withholding unless such non-U.S. holder provides a withholding certificate or other appropriate
documentary evidence establishing that such non-U.S. holder is not a U.S. person to the broker and such broker does not have actual
knowledge or reason to know that such non-U.S. holder is a U.S. person, or the non-U.S. holder is an exempt recipient eligible
for an exemption from information reporting and backup withholding. If a non-U.S. holder sells or redeems a note through the foreign
office of a broker who is a U.S. person or has certain enumerated connections with the United States, the proceeds from such sale
or redemption will be subject to information reporting unless the non-U.S. holder provides to such broker a withholding certificate
or other appropriate documentary evidence establishing that the non-U.S. holder is not a U.S. person and such broker does not have
actual knowledge or reason to know that such evidence is false, or the non-U.S. holder is an exempt recipient eligible for an exemption
from information reporting. In circumstances where information reporting by the foreign office of such a broker is required, backup
withholding will be required only if the broker has actual knowledge that the non-U.S. holder is a U.S. person.
You should consult your tax advisor regarding
the qualification for an exemption from backup withholding and information reporting and the procedures for obtaining such an exemption,
if applicable. Any amounts withheld under the backup withholding rules from a payment to a beneficial owner generally would be
allowed as a refund or a credit against such beneficial owner's U.S. federal income tax provided the required information
is timely furnished to the IRS.
Foreign Account Tax Compliance Act
Legislation commonly referred to as the
 "Foreign Account Tax Compliance Act," or "FATCA," generally imposes a 30% withholding tax on payments of
certain types of income to foreign financial institutions ("FFIs") unless such FFIs either (i) enter into an agreement
with the U.S. Treasury to report certain required information with respect to accounts held by U.S. persons (or held by foreign
entities that have U.S. persons as substantial owners) or (ii) reside in a jurisdiction that has entered into an intergovernmental
agreement ("IGA") with the United States to collect and share such information and are in compliance with the terms
of such IGA and any enabling legislation or regulations. Under proposed regulations promulgated by the Treasury Department on December
13, 2018, which state that taxpayers may rely on the proposed regulations until final regulations are issued, this withholding
tax will not apply to the gross proceeds from any sale or disposition of the Notes. The information required to be reported includes
the identity and taxpayer identification number of each account holder that is a U.S. person and transaction activity within the
holder's account. In addition, subject to certain exceptions, this legislation also imposes a 30% withholding on payments
to foreign entities that are not FFIs unless the foreign entity certifies that it does not have a greater than 10% U.S. owner or
provides the withholding agent with identifying information on each greater than 10% U.S. owner. Depending on the status of a non-U.S.
holder and the status of the intermediaries through which they hold the Notes, non-U.S. holders could be subject to this 30% withholding
tax with respect to interest paid on the Notes and proceeds from the sale of the Notes. Under certain circumstances, a non-U.S.
holder might be eligible for refunds or credits of such taxes.
You should consult your own tax advisor
with respect to the particular tax consequences to you of an investment in the Notes, including the possible effect of any pending
legislation or proposed regulations.
39
UNDERWRITING
Ladenburg Thalmann is acting as representative
of the underwriters named below. Subject to the terms and conditions stated in the underwriting agreement dated [*] 2020, each
underwriter named below has agreed to purchase, and we have agreed to sell to that underwriter, the aggregate principal amount
of Notes set forth opposite the underwriter's name.
Underwriter
Principal Amount of Notes
Ladenburg Thalmann & Co. Inc.
The underwriting agreement provides that
the obligations of the underwriters to purchase the Notes included in this offering are subject to approval of legal matters by
counsel and to other conditions. The underwriters are obligated to purchase all the Notes (other than those covered by the overallotment
option described below) if they purchase any of the Notes.
The underwriters propose to offer some of
the Notes directly to the public at the public offering price set forth on the cover page of this prospectus and some of the Notes
to dealers at the public offering price less a concession not to exceed $[*], or [*]% of the aggregate principal amount of the
Notes. The underwriting discount of  $[*] per Note is equal to [*]% of the aggregate principal amount of the Notes. If all
of the Notes are not sold at the offering price, the representative may change the public offering price and other selling terms.
Investors must pay for any Notes purchased on or before [*], 2020. The representative has advised us that the underwriters do not
intend to confirm any sales to any accounts over which they exercise discretionary authority.
The underwriters hold an option, exercisable
for 30 days from the date of this prospectus, to purchase up to an additional $3.75 million aggregate principal amount of the Notes
at the public offering price less the underwriting discount. The underwriters may exercise the option solely for the purpose of
covering overallotments, if any, in connection with this offering. To the extent such option is exercised, each underwriter must
purchase a number of additional Notes approximately proportionate to that underwriter's initial purchase commitment.
We have agreed that, for a period of 60
days from the date of this prospectus, we will not, without the prior written consent of Ladenburg, on behalf of the underwriters,
offer, pledge, sell, contract to sell or otherwise dispose of or agree to sell or otherwise dispose of, directly or indirectly
or hedge any debt securities issued or guaranteed by us or any securities convertible into or exercisable or exchangeable for debt
securities issued or guaranteed by us or file any registration statement under the Securities Act with respect to any of the foregoing.
Ladenburg in its sole discretion may release any of the securities subject to these lock-up agreements at any time without notice.
For purposes of clarity, nothing shall prevent the company from incurring bank indebtedness or trade liabilities in the ordinary
course. In addition, our Series A preferred stock or future series of substantively similar preferred stock would not be deemed
debt securities for purposes of this restriction.
The 60-day period in the preceding paragraph
will be extended if  (i) during the last 17 days of the 60-day period we issue an earnings release or material news or a
material event relating to us occurs or (ii) prior to the expiration of the 60-day period, we announce that we will release earnings
results during the 16-day period beginning on the last day of the 60-day period, in which case the restrictions described in the
preceding sentence will continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the announcement of the material news or the occurrence of the material event.
There is presently no public market for
the Notes. We intend to list the Notes on the Nasdaq Global Market under the trading symbol "[*]" and we expect trading
to commence within 30 days of the original issue date, however we cannot guarantee that the Notes will be approved for listing
on the Nasdaq Global Market or any market. The Notes are expected to trade "flat." This means that purchasers will
not pay, and sellers will not receive, any accrued and unpaid interest on the Notes that is not included in the trading price.
40
The following table shows the public offering
price, the underwriting discounts and commissions to be paid to the underwriters and the proceeds, before expenses, to us in connection
with this offering. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase
additional Notes.
​
Per
Note
Without
Option
With
Option
Public offering price
$
25.00
$
25,000,000
$
28,750,000
Underwriting discount (sales load) paid by us
(1)
$
1.25
$
1,250,000
$
1,437,500
Estimated Proceeds to us, before expenses
$
23.75
$
23,750,000
$
27,312,500
(1)
The expenses associated with the offering, including the underwriting discount, are paid by us and are ultimately borne by
our shareholders.
We have agreed to reimburse the underwriters
for all reasonable out-of-pocket expenses incurred by them for travel, fees and disbursements of counsel and other consultants
in connection with this offering and FINRA filings, up to a maximum of $100,000.
We estimate expenses payable by us in connection
with this offering, other than the underwriting discounts and commissions referred to above, will be approximately $350,000.
We and our investment adviser have each
agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, or to
contribute to payments the underwriters may be required to make because of any of those liabilities.
Certain underwriters may make a market in
the Notes. No underwriter is, however, obligated to conduct market-making activities and any such activities may be discontinued
at any time without notice, at the sole discretion of the underwriter. No assurance can be given as to the liquidity of, or the
trading market for, the Notes as a result of any market-making activities undertaken by any underwriter. This prospectus is to
be used by any underwriter in connection with the offering and, during the period in which a prospectus must be delivered, with
offers and sales of the Notes in market-making transactions in the over-the-counter market at negotiated prices related to prevailing
market prices at the time of the sale.
In connection with the offering, Ladenburg
Thalmann & Co. Inc., on behalf of the underwriters, may purchase and sell Notes in the open market. These transactions may
include short sales, syndicate covering transactions and stabilizing transactions. Short sales involve syndicate sales of Notes
in excess of the number of Notes to be purchased by the underwriters in the offering, which creates a syndicate short position.
 "Covered" short sales are sales of Notes made in an amount up to the number of Notes represented by the underwriters'
overallotment option. In determining the source of Notes to close out the covered syndicate short position, the underwriters will
consider, among other things, the price of Notes available for purchase in the open market as compared to the price at which they
may purchase Notes through the overallotment option. Transactions to close out the covered syndicate short position involve either
purchases of Notes in the open market after the distribution has been completed or the exercise of the overallotment option. The
underwriters may also make "naked" short sales of Notes in excess of the overallotment option. The underwriters must
close out any naked short position by purchasing Notes in the open market. A naked short position is more likely to be created
if the underwriters are concerned that there may be downward pressure on the price of Notes in the open market after pricing that
could adversely affect investors who purchase in the offering. Stabilizing transactions consist of bids for or purchases of Notes
in the open market while the offering is in progress.
The underwriters also may impose a penalty
bid. Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when Ladenburg Thalmann &
Co. Inc. repurchases Notes originally sold by that syndicate member in order to cover syndicate short positions or make stabilizing
purchases.
41
Any of these activities may have the effect
of preventing or retarding a decline in the market price of Notes. They may also cause the price of Notes to be higher than the
price that would otherwise exist in the open market in the absence of these transactions. The underwriters may conduct these transactions
on the Nasdaq Global Market, if the Notes are approved for listing on the Nasdaq Global Market, or in the over-the-counter market,
or otherwise. Trading is expected to commence on the Nasdaq Global Market within 30 days after the date of initial delivery of
the Notes. If the underwriters commence any of these transactions, they may discontinue them at any time.
A prospectus in electronic format may be
made available on the websites maintained by one or more of the underwriters. The representative may agree to allocate a number
of Notes to underwriters for sale to their online brokerage account holders. The representative will allocate Notes to underwriters
that may make Internet distributions on the same basis as other allocations. In addition, Notes may be sold by the underwriters
to securities dealers who resell Notes to online brokerage account holders.
Certain underwriters may, from time to time,
engage in transactions with or perform services for us, our investment adviser and our affiliates in the ordinary course of business.
The principal business address of Ladenburg
Thalmann & Co. Inc. is 277 Park Avenue, 26th floor, New York, New York 10172.
Settlement
We expect that delivery of the Notes will
be made against payment therefor on or about               ,
2020, which will be the fifth business day following the date of the pricing of the Notes. Under Rule 15c6-1 under the Exchange
Act, trades in the secondary market generally are required to settle in two business days, unless the parties to any such trade
expressly agree otherwise.
Other Jurisdictions
The Notes offered by this prospectus may
not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection
with the offer and sale of any such Notes be distributed or published in any jurisdiction, except under circumstances that will
result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus
comes are advised to inform themselves about and to observe any restriction relating to the offering and the distribution of this
prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy the Notes offered by this
prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.
Potential Conflicts of Interest
The underwriters and their respective affiliates
are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment
banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage
activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future
perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees
and expenses, including acting as underwriters for our securities offerings. In the ordinary course of their various business activities,
the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity
securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the
accounts of their customers and such investment and securities activities may involve securities and/or instruments of our company.
The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent
research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire,
long and/or short positions in such securities and instruments.
Ladenburg Thalmann acted as the sole book-running
manager of the underwritten offering of an aggregate offering amount of $16,162,425 of our Series A Preferred Stock (including
the partial exercise by the underwriters of their overallotment option), which was completed on June 29, 2018. Ladenburg Thalmann
received an aggregate of $1 million in connection with such offering, consisting of underwriting discounts and commissions and
reimbursement of legal costs and expenses. In addition, Ladenburg Thalmann acted as a financial advisor to the Company in connection
with the creation of Crackle Plus and was paid an aggregate transaction fee of $1,830,954.
42
LEGAL MATTERS
The legality of
the Notes will be passed on for us by our counsel, Graubard Miller, New York, New York. Graubard Miller and certain of its
partners and family members own shares of the Class A Common Stock and Class W Warrants to purchase shares of Class A Common
Stock of CSSE and certain Class B membership interests in Chicken Soup for the Soul Holdings, LLC, our ultimate parent
company. Certain legal matters in connection with this offering will be passed upon for the underwriters by Blank Rome
LLP, New York, New York. Graubard Miller has provided legal services to Ladenburg Thalmann
 & Co. Inc. from time to time.
EXPERTS
The consolidated financial
statements of Chicken Soup for the Soul Entertainment Inc. and subsidiaries as of December 31, 2019 and 2018, and for the years
ended December 31, 2019 and 2018, are incorporated by reference herein to the
Annual Report on Form 10-K for the year ended December 31, 2019,
in reliance upon the report of Rosenfield and Company, PLLC, independent registered public accounting firm, which is
also incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing.
The audited historical
financial statements of Crackle U.S. (a business of Sony Pictures Entertainment) included in Exhibit 99.1 to the Chicken Soup for
the Soul Entertainment, Inc.'s Current Report on Form 8-K/A dated July 30, 2019 have been so incorporated in reliance on the report
of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION;
INCORPORATION BY REFERENCE
The SEC allows us to
incorporate by reference the information we file with it, which means that we can disclose important information to you by referring
you to those documents. The information incorporated by reference is an important part of this prospectus, and information that
we file later with the SEC will automatically update and supersede this information. This prospectus incorporates by reference
the documents listed below, all filings we make under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the initial
filing date of the registration statement of which this prospectus forms a part and prior to effectiveness of such registration
statement, and all filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after effectiveness
of such registration statement and prior to the sale of all of the shares offered hereby, including all documents filed as exhibits
to any of the foregoing:
·
our annual report on Form 10-K for the fiscal
year ended December 31, 2019 filed with the SEC on March 30, 2020;
·
our quarterly report on Form 10-Q for the
quarter ended March 31, 2020, filed with the SEC on May 14, 2020;
·
our current reports on Form 8-K or 8-K/A,
as applicable, filed with the SEC on each of
May 15, 2019,
July 30, 2019,
February 14, 2020,
March 20, 2020,
April 1, 2020,
April 17, 2020,
May 15, 2020,
June 9, 2020,
and
June 12, 2020
;
·
our proxy statement on Schedule 14A filed
with the SEC on April 29, 2020; and
·
our
    registration statement on Form 8-A effective on June 21, 2017, registering our Class A common stock under Section 12(b) of the
    Exchange Act.
Any statement contained
in a document filed before the date of this prospectus and incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this prospectus to the extent that a statement contained herein modifies or supersedes such statement. Any statement
so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus. Any
information that we file after the date of this prospectus with the SEC will automatically update and supersede the information
contained in this prospectus. Notwithstanding the foregoing, we are not incorporating any document or portion thereof or information
deemed to have been furnished and not filed in accordance with SEC rule.
In addition to accessing
the above information through the SEC's website at
www.sec.gov
, you may obtain a copy of any or all of the information
that has been incorporated by reference in this prospectus, without charge, upon written or oral request directed to Chicken Soup
for the Soul Entertainment, Inc. 132 E. Putnam Ave., Floor 2W, Cos Cob, Connecticut 06807, telephone number (855) 398-0443.
43
PROSPECTUS
Lead Bookrunner
Ladenburg Thalmann
[*] 2020
​
PART II
INFORMATION NOT REQUIRED
IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution.
The estimated expenses in connection with
the sale of the securities being registered hereby, are as follows:
SEC registration fee
$
3,732
FINRA filing fee
15,000
Nasdaq listing fees and expenses
25,000
Accounting fees and expenses
50,000
Legal fees and expenses
185,000
Printing expenses
25,000
Road show expenses
25,000
Transfer agent fees and expenses
20,000
Miscellaneous (1)
1,268
Total
$
350,000
(1) This amount represents additional expenses
that may be incurred by the Company in connection with the offering, including distribution and mailing costs.
Item 14.
Indemnification of Directors and Officers.
The certificate of incorporation
and by-laws of Chicken Soup for the Soul Entertainment Inc. ("CSSE") provide that all directors and officers shall
be entitled to be indemnified by such company to the fullest extent permitted by law. The certificate of incorporation provides
that CSSE may indemnify to the fullest extent permitted by law all employees. CSSE's by-laws provide that, if authorized
by the Board of Directors, it may indemnify any other person whom it has the power to indemnify under section 145 of the Delaware
General Company Law. Section 145 of the Delaware General Company Law concerning indemnification of officers, directors, employees
and agents is set forth below.
"Section 145. Indemnification
of officers, directors, employees and agents; insurance.
(a)        A corporation shall
have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of
the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted
in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation,
and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person's conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere
or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the
person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal
action or proceeding, had reasonable cause to believe that the person's conduct was unlawful.
(b)        A corporation shall
have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses
(including attorneys' fees) actually and reasonably incurred by the person in connection with the defense or settlement
of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court
of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for
such expenses which the Court of Chancery or such other court shall deem proper.
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1
(c)        To the extent that
a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action,
suit or proceeding referred to in subsections (a) and (b) of this section, or in defense of any claim, issue or matter therein,
such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person
in connection therewith.
(d)        Any
indemnification under subsections (a) and (b) of this section (unless ordered by a court) shall be made by the corporation only
as authorized in the specific case upon a determination that indemnification of the present or former director, officer, employee
or agent is proper in the circumstances because the person has met the applicable standard of conduct set forth in subsections
(a) and (b) of this section. Such determination shall be made, with respect to a person who is a director or officer of the corporation
at the time of such determination, (1) by a majority vote of the directors who are not parties to such action, suit or proceeding,
even though less than a quorum, or (2) by a committee of such directors designated by majority vote of such directors, even though
less than a quorum, or (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written
opinion, or (4) by the stockholders.
(e)        Expenses
(including attorneys' fees) incurred by an officer or director of the corporation in defending any civil, criminal, administrative
or investigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action,
suit or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it shall
ultimately be determined that such person is not entitled to be indemnified by the corporation as authorized in this section. Such
expenses (including attorneys' fees) incurred by former directors and officers or other employees and agents of the corporation
or by persons serving at the request of the corporation as directors, officers, employees or agents of another corporation, partnership,
joint venture, trust or other enterprise may be so paid upon such terms and conditions, if any, as the corporation deems appropriate.
(f)        The
indemnification and advancement of expenses provided by, or granted pursuant to, the other subsections of this section shall not
be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under
any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person's official
capacity and as to action in another capacity while holding such office. A right to indemnification or to advancement of expenses
arising under a provision of the certificate of incorporation or a bylaw shall not be eliminated or impaired by an amendment to
such provision after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative
action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the
time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.
(g)        A
corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee
or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and
incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the corporation
would have the power to indemnify such person against such liability under this section.
(h)        For
purposes of this section, references to "the corporation" shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so
that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at
the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, shall stand in the same position under this section with respect to the resulting or surviving
corporation as such person would have with respect to such constituent corporation if its separate existence had continued.
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2
(i)        For
purposes of this section, references to "other enterprises" shall include employee benefit plans; references to "fines"
shall include any excise taxes assessed on a person with respect to any employee benefit plan; and references to "serving
at the request of the corporation" shall include any service as a director, officer, employee or agent of the corporation
which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to
be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner
 "not opposed to the best interests of the corporation" as referred to in this section.
(j)        The
indemnification and advancement of expenses provided by, or granted pursuant to, this section shall, unless otherwise provided
when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, executors and administrators of such a person.
(k)        The
Court of Chancery is hereby vested with exclusive jurisdiction to hear and determine all actions for advancement of expenses or
indemnification brought under this section or under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise.
The Court of Chancery may summarily determine a corporation's obligation to advance expenses (including attorneys'
fees)."
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons pursuant
to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment of expenses incurred or paid by a director, officer or controlling person in a
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to the court of appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Securities Act and will be governed by the final adjudication of such issue.
Paragraph B of Article
Eight of CSSE's certificate of incorporation provides:
"The Company, to the full extent permitted
by Section 145 of the GCL, as amended from time to time, shall indemnify all persons whom it may indemnify pursuant thereto. Expenses
(including attorneys' fees) incurred by an officer or director in defending any civil, criminal, administrative, or investigative
action, suit or proceeding for which such officer or director may be entitled to indemnification hereunder shall be paid by the
Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of
such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by
the Company as authorized hereby."
Item 15.
Recent Sales of Unregistered Securities
Set forth below is information
regarding shares of capital stock issued by us during the last three years. Also included is the consideration received by us for
such shares and information relating to the section of the Securities Act, or rule of the Securities and Exchange Commission, under
which exemption from registration was claimed.
Share Issuance and
Warrants
On July 23, 2019 we issued
40,000 shares of our Series A Preferred Stock to a single investor in a private placement for $25.00 pursuant to the exemption
from registration under Section 4(a)(2) of the Securities Act and Rule 506 promulgated thereunder. The investor received customary
registration rights.
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3
On June 25, 2019, we
issued 40,000 shares of our Series A Preferred Stock to a single investor in a private placement for $25.00 per share for aggregate
gross proceeds of $1 million. We were required to reimburse the investor's expenses in connection with the sale, including
expenses related to due diligence and legal, equal to 8% of the gross proceeds. The investor received customary registration rights.
Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act and
Regulation D promulgated thereunder.
In May 2019, in connection
with the consummation of our joint venture, Crackle Plus, we issued to CPEH warrants to purchase (a) 800,000 shares of Class A
Common Stock at an exercise price of $8.13 per share; (b)  1,200,000 shares of Class A Common Stock at an exercise price of
$9.67 per share; (c)  380,000 shares of Class A Common Stock at an exercise price of $11.61 per share; and (d) 1,620,000 shares
of Class A Common Stock at an exercise price of $11.61 per share. All of such warrants have a five-year term commencing on the
closing and are exercisable during such term. CPEH has registration rights with respect to the shares of Class A Common Stock underlying
the warrants. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder.
Additionally, we issued
to Crackle (now CPEH) 37,000 units of preferred equity of Crackle Plus and 1,000 units of common equity of Crackle Plus. From May
2020 to October 2020 ("Exercise Period"), CPEH will have the right to either convert its preferred equity into common
equity of Crackle Plus or require us to purchase all, but not less than all, of its interest in Crackle Plus ("Put Option").
We may elect to pay for such interest in cash or through the issuance of Series A Preferred Stock using a price per share of $25.
CPEH has registration rights with respect to any shares of Series A Preferred Stock it may be issued in connection with the Put
Option. Subject to certain limitations, in the event that CPEH has not converted its preferred equity into common equity of Crackle
Plus or exercised its Put Option, CPEH shall be deemed to have automatically exercised the Put Option on the last day of the Exercise
Period.
In December 2018 we completed
our acquisition of all of the capital stock of A Sharp Inc. (dba "A Plus") for an aggregate purchase price of $15,000,000,
paid as follows: (i) a reduction by approximately $3.3 million of advances owed by A Plus to the Company, (ii) the issuance of
350,299 Class A Common Stock at a share price of $8.35 totaling a value of approximately $2,925,000 to the individual sellers and
(iii) the remaining in cash to CSS in consideration of all of its shares of A Plus as an offset to amounts due pursuant to the
intercompany cash management system.
In August 2018, we completed
our acquisition of all the capital stock of Pivotshare for approximately $258,000 in cash, the issuance of 134,000 shares of Series
A Preferred Stock and the issuance of 74,235 shares of Class A Common Stock.
In November 2017, we
completed our acquisition of all the membership interests of Screen Media for approximately $4.9 million in cash and the issuance
of 35,000 shares of our Class A Common Stock and our Class Z Warrants exercisable into 50,000 shares of our Class A Common Stock
at $12 per share.
Between June 2016 and
June 2017, the Company sold a total of an aggregate of approximately $2.5 million of Class A Common Stock and warrants in private
placements. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder, as fewer than 35 investors were non-accredited investors.
Beginning in June 2016
and through November 2016, the Company sold in a separate private placement to accredited investors $1.0 million of units, consisting
of an aggregate of 170,960 shares of Class A Common Stock and Class W Warrants to purchase an aggregate of 51,288 shares of Class
A Common Stock. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder.
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Beginning in December
2016 and through March 2017, the Company sold in a separate private placement to accredited investors approximately $1.0 million
of units, consisting of an aggregate of 150,112 shares of Class A Common Stock and Class W Warrants to purchase an aggregate of
45,034 shares of Class A Common Stock. Such securities were issued pursuant to the exemption from registration contained in Section
4(a)(2) of the Securities Act and Regulation D promulgated thereunder.
During May and June 2017,
the Company sold in two separate equity private placements, a total of an aggregate of 55,000 shares of Class A Common Stock and
Class Z Warrants to purchase an aggregate of 50,000 shares of Class A Common Stock. Such securities were issued pursuant to the
exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.
In June 2017, at the
election of certain holders of the Company's notes payable ("Term Notes"), the Company converted approximately
$0.9 million of Term Notes into 102,060 shares of Class A Common Stock at a conversion price per share of $9 and issued Class Z
Warrants to purchase an aggregate of 30,618 shares of Class A Common Stock at $12 per share, to those noteholders that elected
to convert. The securities issued upon conversion of the Term Notes were issued pursuant to the exemption from registration contained
in Section 3(a)(9) of the Securities Act, as the Term Notes were exchanged for securities exclusively, and no commission or other
remuneration was paid or given directly or indirectly for soliciting such exchange.
Grants of Stock Options
and Restricted Stock
In February 2020 the
Company issued an aggregate of 7,805 shares of its Class A Common stock to five directors pursuant to the Company's non-employee
director compensation policy.
In August 2019 the Company
issued an aggregate of 6,959 shares of its Class A Common Stock to four directors pursuant to the Company's non-employee
director compensation policy.
In May 2019, in connection
with the creation of Crackle Plus and the employment by the Company of certain key employees of Crackle, Inc., the Company granted
five-year options to purchase up to 15,000 shares of the Company's Class A Common Stock to an employee and five year options
to purchase up to 25,000 shares of the Company's Class A Common Stock to two employees. All of the options vest in twelve
equal quarterly installments.
In March 2019 the Company
granted five-year options to purchase up to 75,000 and 100,000 shares of the Company's Class A Common Stock to a non-management
employee and an officer, respectively, that vest in twelve equal quarterly installments.
In February 2019 the
Company granted five-year options to purchase up to 10,000 and 20,000 shares of the Company's Class A Common Stock to two
non-management employees that vest in twelve equal quarterly installments.
In January 2019 the Company
granted five-year options to purchase up to 20,000 shares of the Company's Class A Common Stock to an officer and five year
options to purchase up to 100,000 shares of the Company's Class A Common Stock to two officers. All the options vest in twelve
equal quarterly installments.
In August 2018, in connection
with the Company's acquisition of Pivotshare and the employment by the Company of certain key employees of Pivotshare, the
Company granted five-year options to purchase 7,500 and 15,000 shares of the Company's Class A Common Stock to two employees
that vest in three equal annual installments.
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5
In January 2018
the Company granted a five-year option to purchase up to 10,000 shares of the Company's Class A Common Stock to an employee
that vests in twelve equal quarterly installments.
In December 2017, in
connection with the Company's acquisition of Screen Media Ventures and the employment by the Company of certain key employees
of Screen Media Ventures, the Company granted a five-year option to purchase up to 75,000 shares of the Company's Class A
Common Stock to an employee that vests in twelve quarterly installments and a five-year option to purchase up to 50,000 shares
of the Company's Class A Common Stock to another employee that vests in semi-annual installments over a three year period.
In October 2017 the Company
granted a five-year option to purchase up to 50,000 shares of the Company's Class A Common Stock to an employee that vests
in twelve quarterly installments.
In March 2017 the Company
granted a five-year option to purchase up to 75,000 shares of the Company's Class A Common Stock to an employee that vests
in quarterly installments of 6,250 shares commencing June 30, 2017.
In January 2017, the
Company granted five-year options to purchase up to 100,000 shares of the Company's Class A Common Stock to three officers
that vest in eight equal quarterly installments commencing March 31, 2017 and which are exercisable at $6.50 per share. In 2017,
the Company granted additional options to non-management grantees to purchase up to an aggregate of 390,000 shares at exercise
prices between $6.50 and $9.74. All of these options were granted under the Company's 2017 Long-Term Incentive Plan.
The shares of restricted
stock, and the stock options and Class A Common Stock issuable upon the exercise of such stock options, as described above were
issued pursuant to written compensatory plans or arrangements with our officers, directors, and employees, including the 2017 Long
Term Incentive Plan. Prior to March 2018, such grants were made in reliance on the exemption set forth in Section 4(a)(2) under
the Securities Act. On March 20, 2018, the Company's Registration Statement on Form S-8 to register the shares of Class A
Common Stock issued and issuable pursuant to the Company's 2017 Long Term Incentive Plan.
Item 16.
Exhibits
A list of the exhibits required by Item 601 of Regulation S-K
to be filed as part of this registration statement is set forth in the Exhibit Index on page II-9.
Item 17.
Undertakings
(a)       The
undersigned registrant hereby undertakes:
(1)       To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)       To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)       To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
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6
(iii)       To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
(2)       That,
for the purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3)       To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(6) That for
the purpose of determining any liability under the Securities Act of 1933 in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) any preliminary
prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) any free
writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the
undersigned registrant;
(iii) the portion
of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and
(iv) any other
communication that is an offer in the offering made by the undersigned to the purchaser.
(h)       Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
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7
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Cos Cob, Connecticut, on the 15th day of June, 2020.
CHICKEN SOUP FOR THE SOUL
ENTERTAINMENT INC.
By:
/s/ William J. Rouhana, Jr.
Name:
William J. Rouhana, Jr.
Title:
Chief Executive Officer
Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.
Name
Position
Date
By:
/s/
William J. Rouhana Jr.
Chairman
and Chief Executive
June
15, 2020
William
J. Rouhana Jr.
Officer
(Principal Executive Officer)
By:
/s/
Scott W. Seaton
Vice
Chairman and Director
June
15, 2020
Scott
W. Seaton
By:
/s/
Christopher Mitchell
Chief
Financial Officer (Principal Financial Officer)
June
15, 2020
Christopher
Mitchell
By:
/s/
Daniel Sanchez
Chief
Accounting Officer (Principal Accounting Officer)
June
15, 2020
Daniel
Sanchez
By:
/s/
Amy Newmark
Director
June
15, 2020
Amy
Newmark
By:
/s/
Cosmo DeNicola
Director
June
15, 2020
Cosmo
DeNicola
By:
/s/
Fred Cohen
Director
June
15, 2020
Fred
Cohen
By:
/s/
Christina Weiss Lurie
Director
June
15, 2020
Christina
Weiss Lurie
By:
/s/
Diana Wilkin
Director
June
15, 2020
Diana
Wilkin
By:
/s/
Martin Pompadur
Director
June
15, 2020
Martin
Pompadur
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8
EXHIBIT INDEX
Exhibit No.
Description
1.1
Form of Underwriting Agreement between the Company and Ladenburg Thalmann & Co., Inc., as representative of the several
underwriters named therein (1)
3.1
Certificate of Incorporation (2)
3.2
Bylaws (2)
4.1
Form of Indenture, by and between the Company and U.S. Bank National Association (1)
4.2
Form of Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (1)
4.3
Form of [*]% Notes due 2025 (included as Exhibit A to the Form of Supplemental Indenture
filed as Exhibit 4.2)
5.1
Opinion of Graubard Miller (1)
23.1
Consent of Rosenfield and Company, PLLC (1)
23.2
Consent of PricewaterhouseCoopers LLP (1)
23.3
Consent of Graubard Miller (included in its opinion filed as Exhibit 5.1)
99.1
Unaudited Pro Forma Condensed Consolidated Financial Information as of and for the year ended December 31, 2019 (1)
(1)
Filed herewith.
(2)
Incorporated by reference to the Registrant's Registration Statement on Form 1-A (SEC File No. 024-10704).
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