Internal Report: Q1 Risk and Warranty Summary for the Nostalgia Capsule
internal documentation from the product risk and analysis division
May Season Studio Archives
by Gintare O
Nostalgia Capsule
Q1 Warranty and Risk Analysis Summary
This internal report outlines warranty claims, anomaly trends, risk posture, and fiscal impact for the Nostalgia Capsule program. While the device continues to perform well in early markets, several operational concerns have been recorded and addressed through standard corrective processes.
The information below is confidential and intended for internal review only.
1. Production Volume and Allocation
Units produced YTD: 148,200
Units shipped: 132,940
Units in retailer pipeline: 11,300
Internal and employee units: 3,960
Budget allocation approved for FY25: $32.4M
Projected full-year spend: $36.1M
Variance is tied to scent module updates and expanded corrective coverage.
2. Warranty Claims Overview
Filed Claims (Q1)
Functional irregularities: 1,842
Scent deviation or over-dispersion: 739
Non-harmful environmental distortion: 102
Unverified memory projection reports: 37
Unexpected emotional response: 514
Total claim rate: 2.43 percent, within predicted operational range (2–4 percent).
3. Category 3 Incidents
Category 3 refers to situations where the Nostalgia Capsule contributes to short-lived environmental or sensory irregularities outside the intended use case.
Incidents logged: 11
Examples include:
faint spatial echoing
partial outlines forming in low light
temporary recurrence of workplace scent profiles in residential areas
shallow impressions in soil or flooring
repetition of user routines
All Category 3 cases were resolved by corrective teams. No injuries. No escalation.
4. Litigation Exposure Assessment
Current legal filings: 2
Case 25-447C: claim of psychological over-familiarity
Case 25-451A: claim regarding environmental duplication
Projected filings through Q4: 4 to 6
All expected to settle below materiality thresholds.
No indicators of coordinated legal activity.
5. Financial Outlook
Revenue YTD: $18.9M
Projected full-year revenue: $64M to $71M
Gross margin: 38 percent
Litigation reserve: $4.8M, no change recommended.
6. Program Recommendations
Continue distribution at current scale.
Expand corrective response teams to nationwide coverage by end of Q2, with potential Canadian integration in Q4 pending regulatory review.
Maintain scent calibration without modification.
Avoid public discussion of Category 3 anomalies.
Advance funding for the Q2 Emotional Clarity Expansion Set.
Proceed with packaging updates to include clarified guidance and environmental placement language.
Program trajectory remains favorable.
Exposure manageable.
ADDENDUM A: Legal Commentary
Office of Corporate Counsel
Confidential review, not for staff distribution
Corporate Counsel has evaluated recent field data and the overall risk posture of the Nostalgia Capsule program. Current exposure is low, provided recommended messaging and packaging updates are implemented without deviation.
Key Points
Litigation
Existing claims appear isolated.
Settlements expected to remain contained and confidential.
Regulatory Considerations
Nationwide corrective response expansion should be framed as a service enhancement.
Canadian regulatory review requires discreet classification as a sensory support device.
Avoid any terminology implying environmental influence or perceptual alteration.
Internal Messaging
Approved phrases for communication materials include:
“Enhanced guidance for optimal use.”
“Clarified operational expectations.”
“Improved sensory alignment.”
“Routine-focused calibration.”
Warnings to avoid:
projection, artifacting, duplication, independent behavior.
Prepared by:
Corporate Counsel
May Season Studio
ADDENDUM B: Packaging Update Notice
Product Design and Compliance
Internal release
Packaging for the Nostalgia Capsule will be updated beginning with the next production cycle. Revisions are classified as clarity enhancements and are not to be described as safety modifications.
Additions include:
A “For Best Results” section
Icons reinforcing stable placement
Language on normal variations in sensory output
Guidance to pause use during periods of emotional strain
Clarification that the device is not intended to recreate workplace environments
Hardware and scent dispersal remain unchanged.
Proofs expected within two weeks.
Author’s Note
At May Season Studio, we document the operational realities behind products that appear simple on the surface. This report reflects internal review processes and the quiet work required to keep a system running.
written and designed by gintare okrzesik, creator of may season studio, a fictional corporation exploring beauty, bureaucracy, and quiet corruption through narrative design.