|1||Unique prison-style workout experience with over 50k satisfied clients.|
|2||Monthly revenue increased by ~75% from January 2020 to May 2020.|
|3||Snapchat Accelerator Graduate with a $150K investment from Snap Inc.|
|4||Social & Economic Impact: Provide training & job opportunities to formerly incarcerated individuals.|
|5||CONBODY has a 0% recidivism rate.|
|6||Featured in 200+ media outlets including CNN, NYTimes, WSJ, CNBD, Men’s Fitness and Complex.|
|7||The fitness & wellness market is massive and growing ($600bn global fitness / wellness spend).|
I believe in what conbody stands for and what they have been doing in the community and the platform Conbody has. They also have a great track record and an amazing network. I am excited to see where conbody goes in the future. Conbody has a great management team and a great track record and it seems like each day they move ahead. They have also developed a great app to use and it is very user friendly and has many bells and whistles.
CONBODY is a prison style bootcamp that hires formerly incarcerated individuals to teach fitness classes. CONBODY, developed by former inmate Coss Marte, is the ultimate no-equipment, hardcore workout program.
Social Impact & Mission: CONBODY's real message is about prison reform. Our mission is to bridge a gap between two communities: young professionals and formerly incarcerated individuals. We partner with non-profit organizations to provide resources (educational, housing, employment, and mentorship) to former inmates. CONBODY has hired over 40 former inmates and has a 0% recidivism rate.
Products: CONBODY offers the following products: group fitness classes in a studio setting, live stream at-home classes, on-demand workout videos, and apparel. The CONBODY workout is a 45-minute bodyweight workout that is designed to target the entire body and burn maximum calories.
CONBODY has been featured in 200+ media outlets. We've created a platform that leverages our social mission to drive customer traffic to our business.
CONBODY has made a lot of progress over the past several years.
CONBODY is building a more robust digital fitness platform where you can access live stream at-home classes and on-demand workouts anytime, anywhere. We plan on increasing our library of classes, adding new fitness verticals (running, boxing, yoga, and beginner classes), and updating features and functionality. The goal is to make our content available on all platforms (including apple TV & Roku), and deliver the same amazing CONBODY experience in your home.
COVID has created a world where our unique Livestream/VOD model (no equipment necessary & inspiring instructors) is uniquely positioned to become the next BeachBody billion dollar movement in the fitness world. We will use the funds we raise to double down on our online strategy.
CONBODY is a place to discover prison-style workouts taught by formerly incarcerated individuals. Our social impact and mission allows you to tap into an authentic community of members and trainers all around the world.
We launched a prototype and have strong traction so far. We currently offer on-demand workout videos for $9 per month. We currently have ~800 subscribers. Our user growth was 50% last month. We also offer live stream at-home classes for $20 per class.
Check out our on-demand promo video!
Check out our live stream at-home promo video!
We participate in the massive and growing global health and wellness industry. The total global spend on the wellness industry in 2017 was $4.2 trillion, of which the global fitness and certain categories of wellness, including meditation and yoga, spend represented nearly $600 billion.
62 million people had gym memberships in the U.S., as of 2018. The U.S. Fitness Center / Health Club industry revenue was $32.3bn in 2018.
*Note: Salaries include the cost of (i) a part time growth manager who will help us acquire new users, (ii) a developer who will help us build a more robust on-demand and live stream at-home platform, and (iii) a part time operations manager.
Debra Granik, an Academy Award nominated film director, has been documenting Coss Marte’s personal journey and struggles in opening up CONBODY with limited resources for the last 5 years. Debra is in the process of pitching the documentary to different networks including Netflix.
Check out our brand video!
Check out our Coss' story!
CONBODY has financial statements ending December 31 2019. Our cash in hand is $22,824.39, as of July 2020. Over the three months prior, revenues averaged $27,910/month, cost of goods sold has averaged $275/month, and operational expenses have averaged $22,602/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.
CONBODY is a prison style fitness bootcamp that hires formerly incarcerated individuals to teach fitness classes.
Products: (i) group fitness classes in a studio setting, (ii) live stream at-home classes, (iii) on-demand workout videos, and (iv) apparel.
Mission: To bridge a gap between two communities: young professionals and formerly incarcerated individuals.
The Workout: 45-minute bodyweight workout that combines cardio, HIIT, strength training, and metabolic conditioning.
In five years our goal is to have sales in excess of $12-million and obtain 100,000+ subscribers on our online platform.
Our monthly revenue for May 2020 was $30,500, which was our best month in terms of revenue. From January 2020 to May 2020, monthly revenue has increased by ~75%. We opened our fitness studio in 2016 and moved to a larger studio in January 2019.
Conbody Inc. was incorporated in the State of Delaware in November 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in November 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $200,000 in debt and $269,792 in equity.
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 12 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
Conbody Inc. cash in hand is $22,824.39, as of July 2020. Over the last three months, revenues have averaged $27,910/month, cost of goods sold has averaged $275/month, and operational expenses have averaged $22,602/month, for an average net margin of $5,033 per month.
Since the date of our financials, we pivoted our business model and now we are focused on live stream and on-demand classes.
We expect monthly revenues to grow by 10-15% over the next 3 months. Expenses will remain the same unless until we raise funds.
We are currently relying on profit. We have no other sources of capital on which to rely.
CONBODY, as are all companies, is operating in unprecedented times with the onset of COVID-19. The impact that COVID-19 will have on the operations of the business, its financial performance, and its ability to attract and maintain customers and users are all performance factors that, at this time, are uncertain.
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.
If CONBODY runs out of cash and is not able to successfully monetize the platform and/or raise additional capital, it may need to liquidate the business.
CONBODY's success depends on its ability to continue to attract users to its platform and enhance their engagement with CONBODY's products and services. Furthermore, we may have to incur significantly higher and more sustained advertising and promotional expenditures or offer more incentives than we currently anticipate in order to attract additional consumers to the CONBODY platform.
We may be unable to attract and retain subscribers, which could have an adverse effect on our business and rate of growth. Our efforts to acquire or retain consumers may not be successful, which could prevent us from maintaining or increasing our sales. If we do not promote and sustain our brand and platform through marketing and other tools, we may fail to build and maintain the critical mass of consumers required to increase our sales.
An investment in CONBODY is speculative and may involve substantial investment and other risks. No representation is made that your CONBODY investment will achieve certain performance goals or that any investment in CONBODY will make any profit or will not sustain losses. Past performance is no indication of future results. There may be no secondary market for the CONBODY stock and it may be subject to substantial transfer restrictions.
We have incurred operating losses in the past, and may not maintain profitability in the future.
Forward looking statements and projections are subject to a number of assumptions, risks and uncertainties which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements and projections.
These and other factors could adversely affect the outcome and financial effects of the plans and events of CONBODY and may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.
No statement is intended to be nor may be construed as a profit forecast. Prospective investors are cautioned not to invest based on these forward-looking statements and projections.
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 cannot assure you that we will generate sufficient revenue to offset the cost of maintaining our platform and maintaining and growing our business.
The market for our products and services is still in the early stages of growth and if it does not continue to grow, grows more slowly than we expect, or fails to grow as large as we expect, our business, financial condition, and operating results may be adversely affected. We operate in a highly competitive market and we may be unable to compete successfully against existing and future competitors.
Some of our team is part-time or being contracted, so if having the entire team committed full-time is a concern, CONBODY doesn't currently meet that obligation.
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