Company Update – June 21, 2023

Hello all, My name is Sieva Kozinsky, co-founder at Enduring Ventures. Enduring Ventures is a long term holding company, which means we look for and buy beautiful businesses that we want to hold forever. As many of you know, Scribe has faced challenging times in the last few months. Over the past 7 years, Scribe has written or published books for over 1,000 authors. Yet today, Scribe is perilously close to going out of business. I want to prevent that from happening because Scribe is an amazing service with an important mission. Today, I am announcing that Enduring Ventures has signed a Letter of Intent outlining the principal terms to acquire the assets of Scribe. How did we get here? In its first 5 years, Scribe built an incredible company. I've spoken with dozens of authors who have worked with Scribe, and they absolutely love the services and people. The concept is simple: Scribe exists to help people share their wisdom. There are millions of people out there who want to put their stories and knowledge into a book. They know that a book is the best resume, the best business card, the best way to establish themselves as a thought leader, and the best way to leave behind their story for loved ones. However, the publishing industry is traditionally run by gatekeepers, making this endeavor impossible for most people. That's where Scribe comes in. They provide a full end-to-end service to help people go from idea to a published book. Authors are supported by ghostwriters, editors, designers, and marketers, allowing them to focus on being the "idea person." Rather than acting as gatekeepers, Scribe charges a fixed fee, and authors keep all their royalties. The model is brilliant and necessary, as demonstrated by the 1,000+ authors they've worked with. But having a great business model means nothing without proper execution and integrity. That's where we come in—a fresh company with the same core concept. What's the plan? I plan to step in as interim CEO of the newly created business operated by Enduring Ventures, which is designed to continue serving Scribe's existing customers. You might be wondering why we would choose to take on the challenge of solving this issue... Because I believe in a few things:

1. Scribe must continue to exist in this world. Helping people share their message is too important of a mission to let it die.
2. Scribe offers the best product in the industry and is a great business.
3. Scribe's authors, freelancers, and employees are among the best we've ever seen. We have been amazed by the enthusiasm, resilience, talent, and dedication across the board. Together, we can achieve anything.
4. Scribe's ownership made mistakes and bad decisions. While we can't undo the harm caused by those decisions, we believe that the mistakes holding the company back can be rectified.

I am determined to bring this new business to the world, but it will be a major challenge. Many people are currently angry at Scribe (rightfully so). There has been little to no communication, and when there has been communication, it has been vague. Due to the company's financial situation, we will have to lay off 10 people today, which will leave us with the team necessary to run this business profitably while meeting the needs of our authors. We will notify those impacted by the end of today. Everyone else will receive an employment offer from the newly created business acquiring Scribe’s assets, which will be owned and operated by Enduring Ventures. Dear Authors, I ask you to forget any commitments that were made to you in the last two months. Those commitments were likely made with good intent but without leadership. I cannot stand by commitments I didn't make to you. However, I will stand by commitments that I do make. Here's what I can commit to you (if/when we close):

1. Scribe will continue to be the best place to have your book written and published.
2. You will receive clear and regular communication from me and the newly created business acquiring Scribe’s assets, which will be owned and operated by Enduring Ventures.
3. This will be difficult, and we are open to feedback and help from everyone involved.
4. Unfortunately, we don't have a magic wand to solve all the problems. Scribe's liabilities exceed its assets by a significant margin.
5. With your help, we may be able to prevent the closure of the business.

A few simple requests: It's a stressful and uncertain time for all authors, employees, and freelancers. I ask only a few things from you: 1.Please be kind to the Scribe staff and freelancers in their new roles. These are the core team members from Scribe that you've known and loved. They have worked incredibly hard, and they are here because they care deeply about you. The past issues with Scribe are not their fault. 2. If you need to direct your anger at someone, direct it at me. I didn't cause the issues, but perhaps I can help solve them with enough time. If you have constructive suggestions, let me know. We all need to work together to achieve our shared goal of publishing a book you can be proud of, and I, along with the entire team, am committed to doing our absolute best. 3. Please inform me if you'd like to get more involved. I will be forming an author advisory team. This team will consist of 2-3 people chosen from the author community who are currently in the process of having their book created. They will sign an NDA and receive a full update on the financials and constraints under which we are operating. They will advise us on how to address some of the more challenging issues and decisions we will face while balancing the company's survival and author needs. 4. Work with us on your customized go-forward plan. We will need to create a new plan going forward because our small team cannot handle the volume of books in progress. We will tailor a plan for each author and reach out to you directly to discuss it. I can't promise an effortless journey as we rebuild this business. However, I have spent time with the team, and they are incredible. They deeply care about helping you deliver the best books in the world. They also care deeply about each other and this company. I am confident that the new company we are building can be even stronger than the Scribe you knew in the past. Final Note: While we are under contract, it doesn't mean we have completed an acquisition yet. In the business buying world, a lot can happen between where we are today and completing the transaction. We still need approval from the SBA/Bank and support from authors and shareholders for this to work. We will provide updates as these steps progress, ensuring all stakeholders know where they stand. I am excited to rebuild this great company with all of you. Sincerely, Sieva Kozinsky (For a bit more information about me, please see here and here.)