|1||Investors will receive 100% of our profits and 6% interest until repaid 1.5x their principal.|
|2||After 1.5x return on investment, investors will get their ownership % of our profits for the life of the company, plus cool perks.|
|3||7 years of revenue growth, grossing $3.7 million in 2019.|
|4||2,000 barrels produced annually. Purchasing a former bakery in the under-developed Lemon Grove market to scale production by more than 5x.|
|5||The Lemon Grove facility will be our 3rd beer garden, hosting live music and food trucks to create a community-centric environment.|
|6||International medals for the best "American Lager," "American Wheat Ale," "Vienna Lager," and "Barrel-Aged Stout."|
|7||Created 12+ collaborations with local and touring bands, designing original artwork to coincide with the release of a new album or tour.|
|8||Future canning line amplifies growth of collaboration beer releases.|
In the mid-2000s, California natives Alex Pierson and J.C. Hill bonded over their shared love of surfing, live music, and craft beer during their cold winters at Cornell University. In 2012, the two friends created San Diego's musical hub for its vibrant community.
Over the years, we've won international medals for both traditional and more progressive styles— including a gold medal at the 2016 World Beer Cup for our Whammy Bar Wheat and Silver or Bronze for our "American Lager," "American Wheat Ale," "Vienna Lager," and "Barrel-Aged Stout."
Amplified currently has over $3.6 million in annual revenue from sales at its two Amplified
Kitchen + Beer Garden locations (Pacific Beach and East Village), select outside sales
accounts, & Miramar tasting room (to be closed with the opening of the Lemon Grove
We have hit our natural growth limitations at our Miramar brewery as we are currently brewing at full capacity. Also, the lease structure for our turn-key facility isn’t a sustainable solution and prohibitively expensive to remain long-term. We also want to expand into new, untapped markets and Lemon Grove provides the unique opportunity to achieve both of these goals.
Our various lagers have been increasing in market share as well and will be an out-sized proportion of our production growth in the immediate future. We believe there is still a huge opportunity for us to capture market share from regional and macro-beer drinkers, particularly as we establish our brand in Lemon Grove and the surrounding area.
We are currently in escrow for the former Lemon Grove Bakery at 3308 Main St in Lemon Grove. The 5,000 sq ft building is well-suited for a brewery and will also allow us to develop an outdoor, 1,500 sq ft beer garden on a portion of the existing parking lot.
The 15-barrel brew house and additional fermentation capacity will allow us to grow our current 2,000 barrels to 10,000 barrels annually, a sufficient amount to supply 3-5 more future Amplified beer garden locations.
This hub and spoke model, focusing on getting fresh beer directly to the consumer, foregoes traditional distribution models and allows us to not only control the condition of the beer from grain to glass, but also maximize our revenue per barrel of beer produced. We have our eyes set on Vegas, LA, Phoenix, and Orange County as future markets ripe for Amplified's growth.
We’re an institution for numerous craft beer fans, dog lovers, outdoor groups, and an exciting growing music and arts scene. We operate under the auspices of “Don’t bore us, get to the chorus!”. We don’t have time for solos. We’re building these harmonies together. Open auditions to join the band. Invest today and help us grow!
Amplified Ale Works has financial statements ending December 31 2018. Our cash in hand is $85,000, as of January 2020. Over the three months prior, revenues averaged $311,000/month, cost of goods sold has averaged $100,000/month, and operational expenses have averaged $200,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Amplified creates world-class beer and serves it in a communal beer garden environment beside thoughtfully prepared Mediterranean cuisine, all while focusing our support on local musicians and the live music experience.
Once our Lemon Grove production facility is established in 2020, we intend to set our sights on selectively developing Amplified beer garden & music venues in Las Vegas, Phoenix, LA, Orange County, & north county San Diego. Our East Village San Diego location (opened Aug 2018) provides the ideal template for this business model.
California Kebab PB Restaurant LLC was incorporated in the State of California in April 2011.
Since then, we have:
Historical Results of Operations
Liquidity & Capital Resources
To-date, the company has been financed with $925,000 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
California Kebab PB Restaurant LLC cash in hand is $85,000, as of January 2020. Over the last three months, revenues have averaged $311,000/month, cost of goods sold has averaged $100,000/month, and operational expenses have averaged $200,000/month, for an average net margin of $11,000 per month. Our intent is to be profitable in 6 months.
We generate greater revenues in the summer. Once we finalize our books for 2019, we believe we'll be slightly profitable for the year, but tend to be profitable in the summer and lose money in the winter.
We opened our second brewpub in August of 2018. During the ramp-up, we operated at a loss, and during the winter of 2019 we operated at a loss. Because of our revenues in the summer, we expect to be profitable for 2019 (but our end of year books have yet to be finalized). We have no plans to raise further capital immediately.
We are planning to add another tasting room and beer garden in 6 - 8 months, which we hope to generate about ~$20k of additional monthly revenue for the business next year. We also hope that our downtown location will continue to generate accelerating revenues (it's increased in revenue 25% from last year). We also hope to increase our off premise sales and distribution in the coming year.
A slow down of the craft beer market has coincided with an increase of competition. Our competitors may be better funded and have more brand recognition than we do.
General expenses increase, and could continue to increase unexpectedly. Rent and labor costs may rise, and may rise especially in San Diego.
We are subject to governmental regulations affecting our business. The production and distribution of beer is a business that is highly regulated at the federal, state and local levels. Our operations may be subject to more restrictive regulations and increased taxation than are those of non-alcohol related businesses. For example, the distribution and sale of beer requires various federal, state and local licenses, permits and approvals. If one or more regulatory authorities determines that we have not complied with applicable licensing or permitting regulations or have not maintained approvals necessary for us to conduct our business within their jurisdiction, our business and results of operations could be materially adversely affected. Similarly, the loss or revocation of any existing licenses, permits or approvals, or the failure to timely obtain any additional licenses, permits or approvals when required, could have a material adverse effect on our ability to conduct our business. In addition, if any taxes or fees imposed on our business by applicable regulatory authorities are increased, our profit margins could be negatively affected.
Our product may not be well received in the sub markets that we expand into. If any one of our locations under perform that may impact the entire business.
An increase in the cost of raw materials or energy could affect the Company’s profitability. Commodity and other price changes may result in unexpected increases in the cost of raw materials, glass bottles and other packaging materials used by the Company. The Company may also be adversely affected by shortages of raw materials or packaging materials. In addition, energy cost increases could result in higher transportation, freight and other operating costs. The Company may not be able to increase its prices to offset these increased costs without suffering reduced volume, sales and operating profit, and this could have an adverse effect on your investment.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We operate a seasonal business that can be negatively impacted by weather. Both of our existing locations have large outdoor areas, so extreme weather significantly cuts into our revenue.
COVID-19 may have material impacts on our business. Customers may be less willing to visit our location, and / or be less willing to spend money on our products.
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