# EDGAR Filing Document

**Accession Number:** 0001944218
**File Stem:** 0001493152-23-001058
**Filing Date:** 2023-1
**Character Count:** 6530
**Document Hash:** d929da59755b02da138c1ab574df29c5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-001058.hdr.sgml**: 20230110

**ACCESSION NUMBER**: 0001493152-23-001058

**CONFORMED SUBMISSION TYPE**: 1-U

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20230110

**ITEM INFORMATION**: Other Events

**FILED AS OF DATE**: 20230110

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Masterworks 178, LLC
- **CENTRAL INDEX KEY:** 0001944218
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-RETAIL STORES, NEC [5990]
- **IRS NUMBER:** 883717046
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-U
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00745
- **FILM NUMBER:** 23520703

**BUSINESS ADDRESS:**
- **STREET 1:** 225 LIBERTY STREET
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10281
- **BUSINESS PHONE:** 2035185172

**MAIL ADDRESS:**
- **STREET 1:** 225 LIBERTY STREET
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10281

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 1-U**

**CURRENT REPORT**

Pursuant to Regulation A of the Securities Act of 1933

**January 10, 2023**

Date of Report: (Date of earliest event reported)

**MASTERWORKS 178, LLC**

(Exact name of issuer as specified in its charter)

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| | |
|:---|:---|
| **Delaware** | **88-3717046** |
| State of other jurisdiction of | (I.R.S. Employer |
| incorporation or organization | Identification No.) |

---

**225 Liberty Street, 29th Floor, New York, NY 10281**

(Full mailing address of principal executive offices)

**(203) 518-5172**

(Issuer's telephone number, including area code)

**www.masterworks.com**

(Issuer's website)

**Class A Ordinary Shares**

(Securities issued pursuant to Regulation A)

**Item 9. Other Events**

A copy of materials used on www.masterworks.com relating to the Issuer's ongoing offering of Class A Ordinary Shares pursuant to Regulation A of the Securities Act of 1933, as amended, is attached to the Form 1-U as Exhibit 15(b) and a copy of the transcript of the promotional video embedded in such materials is attached to the Form 1-U as Exhibit 99.1.

**Safe Harbor Statement**

This Current Report on Form 1-U contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in our most recent Offering Circular filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic filings and offering circular supplements filed with the SEC, which are accessible on the SEC's EDGAR website. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

**Exhibit Index**

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| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 15(b) | [Website materials.](ex15b.htm) |
| 99.1 | [Promotional video transcript.](ex99-1.htm) |

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**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | MASTERWORKS 178, LLC | MASTERWORKS 178, LLC |
|  | By: | */s/ Joshua B. Goldstein* |
|  | Name: | Joshua B. Goldstein |
|  | Title: | General Counsel |
| Date: January 10, 2023 |  |  |

---

## Add

**Exhibit 15(b)**

![](ex15b_001.jpg)

![](ex15b_002.jpg)

![](ex15b_003.jpg)

![](ex15b_004.jpg)

![](ex15b_005.jpg)

![](ex15b_006.jpg)

![](ex15b_007.jpg)

## Add

**Exhibit 99.1**

Hi everyone,

My name is Michael Jerch and I am a Specialist here at Masterworks.

I am pleased to announce our newest offering, a painting by the hugely influential abstract expressionist artist, Helen Frankenthaler. In April 2022, the Kunsthalle Krems in Austria and the Museum Folkwang in Essen, Germany co-organized a solo exhibition titled "Helen Frankenthaler: Painterly Constellations," which features 74 works and will run through March 2023. In recent years, the artist has seen significant increases in prices realized at auction and eight of her top ten auction records have been set in the previous two years.

To provide investment quality offerings by the artist, our acquisitions team has reviewed over 120 examples of Frankenthaler's works from around the world, many of which are priced in excess of $2 million. Of these examples, this is the fourth we have selected to be offered on the Masterworks platform.

The offering is entitled "xBxrxixdxex'xsx xDxoxoxrx" and was completed by the artist in 1967. The Painting is an example of Helen Frankenthaler's mature abstract practice, which experimented with material and emphasized color, bridging the gap between Abstract Expressionism and Color Field Painting. The year prior to the Painting's creation, Frankenthaler was selected to represent the United States at the Venice Biennale, along with Ellsworth Kelly, Roy Lichtenstein and Jules Olitsky.

As of December 2022, examples similar in period, scale and composition to the Painting have achieved prices at auction in excess of $2.5 million. These include: "Head of the Meadow" (1967), which sold for $3 million in an online sale through Phillips in July of 2020, "Yellow Crater" (1963-64), which sold for $2.8 million at Christie's, New York in November of 2022, and "Yellow Canyon" (1968), which sold for $2.7 million at Sotheby's, New York in May of 2022.

Between December 2010 to November 2022, auction sales of similar works to our offering have increased at an estimated annualized appreciation rate of 14.4%.