|1||Graduated from The Batchery and 2020 Startups Accelerators|
|2||Gained 1000 users through word of mouth over a 3-month span.|
|3||Real-time alerts - get event invites, discounts, specials as your travel past local businesses throughout the day.|
|4||Our location-based chatrooms are pinned on our map allowing you to finally connect with people in that specific location.|
|5||Received multiple Letter of Intents from multiple businesses. Want to advertise with us by using our real-time alerts.|
|6||founder working full time, 4 employees working part-time.|
We started in January 2018, there have been many ups and downs throughout this journey and we've learned so much along the way.
We decided to change our name in June 2019 from Chad to Clava. Our team felt that Clava related more to our brand. The word Clava means "club" in Latin and users will be creating their own "clubs" inside of Clava through our chatrooms.
We graduated from two accelerators 2020 Startups & The Batchery. The Batchery & 2020 Startups helped our team develop our pitch deck and narrow down our streams of revenue.
We released the first version of Chad in the App & Google Play stores. The goal was to see if we could drive a small number of users into the app and see if they were interested in what we were trying to do.
Our team was able to get 800+ users into Chad through word of mouth over a 3-month span. The users provided so much feedback that we had to put it all in an excel spreadsheet!
With the release of this update our name has officially been changed to Clava.
With the release of update 180, we've been able to get our first paying customers. The best part about these customers is that we were able to bring these companies on board before we even released our update.
They're even helping us by promoting Clava in their businesses to increase their ROI for using our platform.
What are Real-time alerts?
Let's say a Brewery wants to spread awareness about their happy hour every Friday at 5 PM.
Our team can create a geofence around their Brewery and add a promotional message that might something like "Hey! We're having a happy hour this Friday and we're offering 50% off all drinks."
As Clava users travel past this Brewery they will collect this "real-time" alert and it will get placed in their Alerts page. Users can open their alert page throughout the day to see what they've collected, these alerts will contain event/party invites, discounts, specials and more.
When a user taps an alert they enter that businesses chatroom where they can connect directly with the business, learn more about the business and get directions to where the business is located.
We're raising funds because we need help getting to the next level of scalability. We've bootstrapped a large chunk of our own funds into Clava over the past two years.
Now that we have the traction and an app that is built to scale we want to use these funds to market Clava, bring another member on board full-time and help support server costs.
With the funds, we raise our team is confident we can hit at least 50,000 daily active users. The more active users we have the quicker we grow as a social network.
We believe we're offering a platform/service people don't even know they need yet. This idea started sitting in the King of Prussia Mall food court in King of Prussia, PA. I was asking myself why can't I connect with people in this same exact food court as
With our location-based chatrooms, it allows people to hone in on a location and connect with people in that specific area.
We're aware that there are things similar to what we're doing with real-time alerts, the difference is we're building an ecosystem and they're just a service. Clava is a social network that is meant to help you connect with people in a specific location and to discover things to do around you.
Our goal is to be one of the biggest location-focused social media apps in the world. We plan on doing this by creating a beautifully designed product and features that can help the user connect with others no matter where they're located.
Clava has financial statements ending June 17 2019. Our cash in hand is $2,500, as of June 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,500/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.
Clava is a social network that is focused on bringing value to its users. The main goal is to help people discover what's going on around them through location-based chatrooms pinned on our map and with Real-time alerts. Our chatrooms will represent events, cafes/bars, locals looking to connect and more. Real-time alerts offer you the opportunity to gain perks from businesses you travel past throughout the day, these perks will contain discounts, specials, event/party invites and more.
We want to be viewed as the social network that not only changed the way society looks at social media but how we view it. We plan on doing this by providing value to our users with the features we have to offer. When it comes to where a user is located we want to be the first platform that provides insight about their location so they can get the most out of their experience in that location.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Chad App Inc was incorporated in the State of Maryland in June 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in June 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
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. We plan to raise capital in 6 months. 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
Chad App Inc cash in hand is $2,500, as of June 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,500/month, for an average burn rate of $1,500 per month. Our intent is to be profitable in 3 months.
We recently registered Clava as a corporation located in Maryland since we moved from Pennsylvania.
With the release of update 180, it's provided us a platform that allows us to build a community inside of Clava. As we gain more users it gives the upper hand when we go to sell our product to bigger companies/events. If we have the audience can we start increasing the price of our real-time alerts. With a bigger audience brings more customers as well, it will be a lot easier to get more customers on board if they see their ROI. Over the next 3-6 months we expect our revenue to jump drastically since our early access customers have agreed to promote Clava in their businesses to help us gain even more users.
I expect the burn rate to jump to around $1,500 after we release this update due to server costs. We’re going to fund it through the revenue we’re bringing in and the remaining cash. The founder also have a family member who can invest some funds to help the short-term operations of the company. We hope to begin generating revenue after our next release (in 3 - 6 months).
Our team is currently working both part-time and full time. This is causing us to move slower than normal, this can effect how fast we grow. Some competitors may have greater financial, research and development, operational and marketing resources than Clava and might be able to bring competing products to market. Greater financial, research and development, operational and marketing resources and experience may allow Clava's competitors to respond more quickly with new, alternative or emerging technologies. The Company's quarterly and annual operating results may fluctuate widely, and be negatively affected by efforts to build volume or react to competition.
The Company relies on Firebase for hosting. Any interruption in the availability of these services could have material negative impact on our ability to deliver service to users, as well as the profitability of these operations. Interruptions could occur due to both Internet outages as well as policy changes or terms violations according to these third parties. The prospect of increased regulation and/or Internet censorship may create access challenges to our users and service offerings. Our long-term vision is to extract all third-party hosting requirements in order to become independently sustainable.
There is the risk of the users not wanting to use the platform we're creating, which is a risk every new app has to face. It's an ongoing battle fighting against the competition for user attention. We do feel confident with the features + benefits we have to offer that users are going to use Clava and based on our small but loyal 1000+ early access users we believe we're creating a platform that people are going to want to use.
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.
Startups often depend on raising multiple rounds of capital until they’re profitable. There can be no assurance that we will be able to successfully raise operating capital. The Company may not be profitable for many years as most of its revenue and investment capital will be dedicated to growth. The failure to successfully raise operating capital could result in our bankruptcy or other events which would have a material adverse effect on us and our stockholders. We have no significant assets or financial resources, so the failure to raise sufficient operating capital could put your investment dollars at significant risk.
Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer. 100% security cannot be guaranteed even after taking every security precaution possible. Cyber-crimes are becoming increasingly common and aggressive which brings a parallel increase in risk.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
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