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From 1984 until April 1989, Mr. Mitchell served as president
of JPMS; Mr. DeJoria served as chairman of the board, chief
executive officer, chief financial officer, and secretary.
JPMS adopted a fiscal year ending July 31. Beginning with the
fiscal year ended July 31, 1984, the corporation elected subchapter
S status for Federal income tax purposes.
As of April 21, 1989, the stock in JPMS had not been
registered under any securities law; moreover, neither Mr. DeJoria
nor Mr. Mitchell had ever contemplated such a registration or a
public offering of JPMS’s common stock.
JPMS products were sold only through professional salons. Mr.
Mitchell was the heart of JPMS’s connection to hair stylists, who
were the foundation for JPMS’s marketing strategy of promoting and
selling products that Mr. Mitchell developed. Mr. Mitchell was
JPMS’s creative trendsetter, and his hair sculpting technique
revolutionized hair styling. Mr. Mitchell was the focal point of
JPMS’s advertising. In 1986, JPMS began using photographs of Mr.
Mitchell in its advertising.
Mr. DeJoria ran the daily operations at JPMS, making all
management decisions and having all managers reporting directly to
him. Mr. Mitchell, however, had the last word on all policy
matters.
JPMS was known for its styling products. Over the years, JPMS
developed into a major force in the hair care industry, with brand
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Last modified: May 25, 2011