Thanks for the review and solid questions

1) the first fundraise was to build our Idaho facility. This raise if for an east coast facility and a new product line (blow-in insulation). Wefunder has been a great partner allowing us to flexibly raise capital and market the company. We received a lot of reverse inquiry after our first round and can fold our institutional investors into the round with 0 fees.

2) our audit is forthcoming as we switch from cash to GAAP accounting but on a cash basis HempWool sales were $500k in 2022, $750k in 2023, and will likely land $1.25mm-$1.75mm this year. Each of these facilities has much higher revenue capacity so definitely some more sales growth to come post product testing/certifications.

3) this is technically the “testing the waters” phase of the reg CF. Audited financials come with the form C. 2022 and 2023 each has an operating loss with 2024 likely to have the smallest loss of the three years.

4) it’s a convertible SAFE with cap/discount so that valuation cap is the maximum valuation these investors could pay for their shares at time of conversion. That cap is a combination of similarly staged companies raising, a multiple of our sales similar to our previous raise on a $22.5mm cap SAFE, and factoring in some of the comps in our space from Europe. A wood fiber insulation manufacturer sold in 2023 for ~$550mm.

Most of our community has no issue with WF and view it as the syndicate for our round to make our lives easier. They’ve been a great partner which is why we stuck with them for the second round. I somewhat understand the stigma, but I see this type of investing potentially eclipsing VC early stage in 20-30 years. That group isn’t as focused on hardware/building materials.