2023 Report Eskala
Filed on April 19, 2024

Dear investors,
Over the past 3 years, Eskala has invested and lent over $8M to under resourced communities with a default rate of <3%. We remain committed to our goal of serving 30,000 clients across 1,000 community partners over the next 5 years. Our microinvestment model of blending equity and debt financing has continued to be fruitful and the growth of our clients has reflected that. We still have a 100% survival rate of all the community banks that we helped establish.
We need your help!
Spread the word about Eskala! We intend to open a new equity round at the end of 2024. We welcome anyone who is interested in making a $100k investment to join us in Panama to tour our operations and experience their impact first hand. Another way to get involved is to make loans to community banking partners and cooperatives in Honduras through Eskala's Kiva partnership. Anyone can find these loan profiles on Kiva.org.
Sincerely,
How did we do this year?
☺ The Good
- We were able to raise almost $1M through an equity financing round.
- The Company was able to negotiate an investment into a regulated financial lender in Panama, known as a "financiera."
- The Company was able to realize operational efficiencies and achieved profitability for several months in 2023.
☹ The Bad
- Political uncertainty in Nicaragua created a strain on Eskala operations in that country.
- Interest rates continue to climb making debt more expensive and narrowing our margins.
- Our iniative to convert some of our loans in Honduras into profit share arrangements went slower than anticipated.
2023 At a Glance
January 1 to December 31

$427,032 +51%
Revenue

$112,995 [56%]
Net Profit

$499,851 +1%
Short Term Debt

$1,175,580
Raised in 2023

$599,346
Cash on Hand
As of 03/15/24
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.
Overview
Alleviating poverty in Latin America through community-owned banks
Eskala is a spin off of the non-profit Global Brigades (GB). Founded in 2003, GB's mission is to inspire, mobilize and collaborate with communities to achieve their own health and economic goals. Through 18 years of work, GB discovered that access to financial services were vital for a community to break the cycle of poverty - thus Eskala was born.
Eskala lends and invests in community-owned banks in Latin America to keep funds circulating and create self-sustaining economies.
Eskala endeavors to serve 20,000 communities with 18 million people living in poverty in the next 5 years.
Milestones
Eskala, Inc. was incorporated in the State of Delaware in October 2020.
Since then, we have:
- Join Eskala's preferred debt partner, Nicolet National Bank, committed $20k to this loan
- Eskala has deployed $3m+ of impact investment to transform banking in under resourced communities
- We aim to empower 18M people living in poverty with financial services by 2025
- We have issued $1M in loans so far, serves the capital needs of 2,500+ micro-enterprises
- 0% default rate to date
- Featured in Forbes, American Banker, and Milwaukee Business Journal
- Partners include Kiva, World Bank, Whole Planet Foundation, Inter-American Development Bank
Our company was organized in October 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
- Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $427,032 compared to the year ended December 31, 2022, when the Company had revenues of $283,663. Our gross margin was 100.0% in fiscal year 2023, compared to 100.0% in 2022.
- Assets. As of December 31, 2023, the Company had total assets of $3,273,392, including $198,803 in cash. As of December 31, 2022, the Company had $2,935,166 in total assets, including $389,310 in cash.
- Net Income. The Company has had net income of $112,995 and net income of $254,687 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
- Liabilities. The Company's liabilities totaled $1,038,390 for the fiscal year ended December 31, 2023 and $1,254,404 for the fiscal year ended December 31, 2022.
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 $1,301,002 in debt and $3,011,123 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 36 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 3 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
Eskala, Inc. cash in hand is $599,346.09, as of March 2024. Over the last three months, revenues have averaged $54,942/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $5,331.67/month, for an average net margin of $49,610.33 per month. Our intent is to be profitable in 6 months.
Since January 2024, we have secured additional short-term debt funding ($500,000) which will enable to us to continue scaling our loan and investment portfolio to the end of 2024. As such, we are looking to achieve more months of profitability this year.
We expect revenue to grow by ~15% in the next three to six months, and expect to maintain low overhead expenses. We expect that the loan and investment portfolio to increase over the next six months resulting in increased revenue from interest and profit-share arrangements. We expect our default rate to remain near zero. We have been able to successfully convert some outstanding loan capital into an asset acquisition of a coffee processing center in Honduras, which we expect to bring in additional revenue over the next 12 months.
With the additional loan capital we have secured this year, in addition to the line of credit we we are working to secure, we believe we will be able to make enough micro-investments to achieve profitability this year.
In addition to the aforementioned short-term debt we have been able to secure, we are also looking to close on $500,000 line of credit by mid-2024 that will cover short-term burn as well as fulfill our loan/investment targets for this year.
All projections in the above narrative are forward-looking and not guaranteed.
- Net Margin: 26%
- Gross Margin: 0%
- Return on Assets: 3%
- Earnings per Share: $0.03
- Revenue per Employee: $61,005
- Cash to Assets: 6%
- Revenue to Receivables: 14
- Debt Ratio: 32%
We Our 39 Investors
Thank You For Believing In Us
Thank You!
From the Eskala Team

Co-Founder & Chief Strategy Officer
Social entrepreneur for emerging economies. Co-Founder & CSO of Global Brigades, the largest movement for global health and holistic development.

Co-Founder & VP of Legal
Legal professional with 10+ years experience in international development and operations.


Luis Quan
Co-Founder & VP, Honduras
Latin American banking and operations expert.

Pablo Garron
VP, Panama
Microfinance thought leader in Latin America.



Juan David Villegas
VP of Programs
Rural micro-enterprise consultant.
Details
The Board of Directors
Director | Occupation | Joined |
---|---|---|
Katherine Burgess | CEO/Founder @ Elevate97 | 2021 |
Carlos Garces | Retired @ Retired | 2021 |
Colleen O'Brien | Impact Investor & Volunteer @ Eskala (volunteer) | 2021 |
James Stollberg | President @ Gemini Global Advisors | 2021 |
Charles Ries | Senior Director Development Design and Innovation @ Marquette University | 2021 |
James Sartori | Chairman @ Sartori Cheese | 2021 |
Steve Nooyen | Chairman @ Home Instead | 2021 |
Steven Atamian | Chief Strategy Officer @ Global Brigades | 2020 |
Officers
Officer | Title | Joined |
---|---|---|
Colleen O'Brien | Co-founder | 2021 |
Pallav Vora | VP. Legal Affairs | 2020 |
Steven Atamian | Co-founder, Chief Strategy Officer | 2020 |
Holder | Securities Held | Voting Power |
---|---|---|
Global Brigades, Inc. (non-profit with no Owners) | 2,647,594 Common stock | 59.0% |
Past Equity & Loan Fundraises
Date | Amount | Security | Exemption |
---|---|---|---|
12/2020 | $615,000 | Common Stock | Section 4(a)(2) |
01/2021 | $100,000 | Common Stock | Section 4(a)(2) |
01/2021 | $100,000 | Common Stock | Section 4(a)(2) |
01/2021 | $100,000 | Common Stock | Section 4(a)(2) |
02/2021 | $100,000 | Common Stock | Section 4(a)(2) |
04/2021 | $250,000 | Common Stock | Section 4(a)(2) |
05/2021 | $25,000 | Common Stock | Section 4(a)(2) |
10/2021 | $9,945 | Other | |
11/2021 | $100,000 | Common Stock | Section 4(a)(2) |
11/2021 | $100,000 | Common Stock | Section 4(a)(2) |
12/2021 | $100,000 | Common Stock | Section 4(a)(2) |
12/2021 | $250,300 | Other | |
12/2021 | $100,000 | Common Stock | Section 4(a)(2) |
12/2021 | $276,000 | Common Stock | Section 4(a)(2) |
12/2021 | $100,000 | Common Stock | Section 4(a)(2) |
12/2021 | $100,000 | Common Stock | Section 4(a)(2) |
12/2021 | $4,372 | Other | |
12/2021 | $22,466 | Other | |
12/2021 | $14,469 | Other | |
12/2021 | $80,702 | Other | |
01/2022 | $100,000 | Common Stock | Section 4(a)(2) |
03/2022 | $100,000 | Common Stock | Section 4(a)(2) |
05/2022 | $100,000 | Common Stock | Section 4(a)(2) |
08/2022 | $100,000 | Section 4(a)(2) | |
09/2022 | $200,000 | Other | |
12/2022 | $40,000 | Section 4(a)(2) | |
12/2022 | $30,000 | Section 4(a)(2) | |
12/2022 | $100,000 | Section 4(a)(2) | |
12/2022 | $100,000 | Section 4(a)(2) | |
12/2022 | $499,387 | Other | |
05/2023 | $131,070 | 4(a)(6) | |
08/2023 | $100,000 | Common Stock | Section 4(a)(2) |
10/2023 | $50,001 | Common Stock | Section 4(a)(2) |
10/2023 | $94,499 | Common Stock | Section 4(a)(2) |
10/2023 | $100,000 | Common Stock | Section 4(a)(2) |
11/2023 | $50,001 | Common Stock | Section 4(a)(2) |
11/2023 | $150,622 | Common Stock | Section 4(a)(2) |
02/2024 | $400,000 | Section 4(a)(2) |
Outstanding Debts
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
Beneficial State Bank {:data=>{:popover_target=>"content"}} |
12/13/2021 | $250,300 | $201,000 {:data=>{:popover_target=>"content"}} |
3.25% | Yes | |
Global Brigades, Inc. {:data=>{:popover_target=>"content"}} |
12/31/2021 | $80,702 | $25,768 {:data=>{:popover_target=>"content"}} |
0.0% | Yes | |
Silicon Valley Community Foundation {:data=>{:popover_target=>"content"}} |
08/11/2022 | $100,000 | $101,664 {:data=>{:popover_target=>"content"}} |
3.0% | 08/10/2024 | Yes |
Kiva Microfunds {:data=>{:popover_target=>"content"}} |
09/21/2022 | $200,000 | $70,327 {:data=>{:popover_target=>"content"}} |
0.0% | 09/21/2025 | Yes |
Atamian Family Trust {:data=>{:popover_target=>"content"}} |
12/23/2022 | $40,000 | $40,570 {:data=>{:popover_target=>"content"}} |
7.5% | 06/22/2024 | Yes |
Tom Voell Living Trust {:data=>{:popover_target=>"content"}} |
12/23/2022 | $30,000 | $30,427 {:data=>{:popover_target=>"content"}} |
7.5% | 06/22/2024 | Yes |
MFI, LLC {:data=>{:popover_target=>"content"}} |
12/27/2022 | $100,000 | $101,424 {:data=>{:popover_target=>"content"}} |
7.5% | 06/27/2024 | Yes |
JCRS, LLC {:data=>{:popover_target=>"content"}} |
12/29/2022 | $100,000 | $101,424 {:data=>{:popover_target=>"content"}} |
7.5% | 06/29/2024 | Yes |
Midland Trust Company as Custodian FBO Michael Ketter {:data=>{:popover_target=>"content"}} |
02/28/2024 | $400,000 | $400,000 {:data=>{:popover_target=>"content"}} |
6.5% | 02/28/2026 |
Related Party Transactions
None.Capital Structure
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Common | 10,000,000 | 4,490,344 | Yes |
Securities Reserved for Issuance upon Exercise or Conversion |
|
---|---|
Warrants: | 13 |
Options: | 146 |
Form C Risks:
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.
Although we conduct due diligence on potential community-bank partners, and continue to monitor their operations once we make loans to these partners, we are nevertheless dependent on our community-bank partners’ ability to identify, underwrite and service borrowers in their respective segments. We cannot control their operations once loans are made. While it has historically never happened, it is possible that community-bank partners could become insolvent, shut down or otherwise cease their operations. In these events, our ability to collect on these loans will be compromised.
We could incur substantial losses and our business operations could be disrupted if we are unable to effectively identify, manage, monitor, and mitigate financial risks such as credit risk, interest rate risk, liquidity risk and other market-related risks, as well as operational risks related to our business, assets, and liabilities. To the extent our models used to assess the fiscal performance and performance of our community-bank partners do not adequately identify potential risks, the risk profile of such partners could be higher than anticipated. Our risk management policies, procedures, and techniques may not be sufficient to identify all of the risks we are exposed to, mitigate the risks that we have identified, or identify concentrations of risk or additional risks to which we may become subject in the future.
We operate our business globally and plan to continue to expand our international presence. Operating internationally exposes us to a number of risks, including unstable local economic conditions, volatile local political conditions, potential changes in duties and taxes, including changing interpretations of existing tax and banking laws and regulations, required compliance with additional laws and policies affecting banking, microfinance, or financial businesses or governing the operations of foreign-based companies, currency fluctuations, interest rate movements, difficulties in operating under local business environments, U.S. and global anti-bribery laws or regulations, and restrictions on repatriation of earnings. If we are unable to address these risks adequately, our financial position and results of operations could be adversely affected, including potentially impairing the value of our trademark, goodwill and other assets.
Operating globally also exposes us to numerous and sometimes conflicting legal and regulatory requirements. In many parts of the world, including countries in which we operate, practices in the local business communities might not conform to international business standards. We must adhere to policies designed to promote legal and regulatory compliance as well as applicable laws and regulations. However we might not be successful in ensuring that our employees, agents, representatives and other third parties with whom we associate throughout the world properly adhere to them.
Failure by us, our employees or any of these third parties to adhere to our policies or applicable laws or regulations could result in penalties, sanctions, damage to our reputation and related costs which in turn could negatively affect our results of operations and cash flows.
Changes in laws or regulations or the regulatory application or judicial interpretation of the laws and regulations applicable to us could adversely affect our ability to operate in the manner in which we currently conduct business or make it more difficult or costly for us to originate or otherwise make investments or loans or for us to collect dividends or payments on loans by subjecting us to additional licensing, registration or other regulatory requirements in the future or otherwise. A material failure to comply with any such laws or regulations could result in regulatory actions, lawsuits, and damages to our reputation, which could have a material adverse effect on our business and financial condition and our ability to originate or make investments or loans and perform our obligations to investors and other constituents.
The initiation of a proceeding relating to one or more allegations or findings of any violation of such laws could result in modifications in our methods of doing business that could impair our ability to collect loan payments or receive dividends or could result in the requirement that we pay damages and/or cancel the balance or other amount owing under loans associated with such violation. We cannot assure you that such claims will not be asserted against us in the future.
We are an early stage company. Accordingly, we have a limited operating history on which to base an evaluation of our business and prospects. Our business and prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets. We cannot assure you that we will succeed in addressing these risks, and our failure to do so could have a material adverse effect on our business, prospects, financial condition and results of operations.
Our success depends, to a significant extent, upon the efforts and abilities of our management team. The key officers of the Company have either other employment, other business or time restrictions placed on them and, accordingly, key officers of the Company will only be able to devote part of their time to the affairs of the Company. Further, there are potential conflicts of interest to which the key officers of the Company may be subject to in connection with their professional commitments outside of the Company. Key officers of the Company may be involved in managerial or director positions with other enterprises whose operations may, from time to time, be in direct conflict with those of the Company. For example, the majority of the interim managers of Eskala are simultaneously holding various officer and management positions at Global Brigades, Inc., the majority shareholder of Eskala.
Information provided concerning Eskala’s offering, Eskala and its business, may contain forward-looking statements, which reflect management’s current view with respect to future events and Eskala’s performance. Such forward-looking statements include projections with respect to the development, market size and acceptance of Eskala’s capital investments, services, and loan products, and Eskala’s future revenues and earnings, marketing strategies and business operations. These forward-looking statements are subject to certain risks and uncertainties, including, but not limited to, acceptance of Eskala’s capital investments, services, and loan products, ability to compete with existing and new products and services competitively, our ability to attract additional capital, and the other risks identified herein. Due to such uncertainties and the risk factors set forth herein, you are cautioned not to place undue reliance upon such forward-looking statements.
Eskala is registered in the State of Delaware as a Public Benefit Corporation. Pursuant to Delaware law, Eskala’s Directors must balance the goals of (i) providing a competitive return to stockholders, (ii) having a net positive impact on society and the environment, and (iii) creating a net positive impact with respect to the benefits specified in the corporate charter. Under Delaware law, directors are shielded from liability when they make informed and disinterested decisions that serve a rational purpose.
We anticipate that we may require additional financing in order to expand our business. We cannot assure you that we will be able to successfully negotiate or obtain additional financing, or that we will obtain financing on terms favorable or acceptable to us. We do not have any commitments for additional financing. Our ability to obtain additional capital depends on market conditions, the global economy and other factors outside our control. If we do not obtain adequate financing or such financing is not available on acceptable terms, our ability to finance our expansion, develop or enhance services or products or respond to competitive pressures would be significantly limited. Our failure to secure necessary financing could have a material adverse effect on our business, prospects, financial condition and results of operations.
Description of Securities for Prior Reg CF Raise
Additional issuances of securities. Following the Investor’s investment in the Company, the Company may sell interests to additional investors. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. Issuer Repurchase of Securities/Prepayment of Notes. The Company has the right to repay principal and interest on the promissory notes at any time prior to the maturity date. If the Company repays principal and interest on the notes early, Investor will receive fewer interest payments than expected at purchase. A sale of the issuer or of assets of the issuer. As a noteholder with no voting rights, the Investor will have no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company and the board of directors of the Company to manage the Company so as to maximize value for shareholders and ensure full payment of noteholders. Accordingly, the success of the Investor’s investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company and the board of directors of the Company. If the board of directors of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company’s assets, there can be no guarantee that the amount received will be sufficient to repay Investor and other noteholders. Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management and board of directors of the Company will be guided by their good faith judgment as to the Company’s best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm’s-length, but will be in all cases consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the Investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.
Minority Ownership
An Investor in the promissory notes will likely hold a minority position in the Company and will have no voting rights in the Company, and thus will be limited as to its ability to control or influence the governance and operations of the Company. The marketability and value of the Investor’s interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its board of directors, and the Investor will have no independent right to name or remove an officer or member of the board of directors of the Company.
Exercise of Rights Held by Principal Shareholders
As holders of a majority-in-interest of voting rights in the Company, the principal shareholder(s) may make decisions with which the Investor disagrees, or that negatively affect the value of the Investor’s securities in the Company, and the Investor will have no recourse to change these decisions. The Investor’s interests may conflict with those of the principal shareholder(s), and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor. For example, the principal shareholder(s) may change the terms of the operating agreement for the Company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The principal shareholder(s) also may force the Company to prepay the promissory notes before their maturity date. The principal shareholder(s) may make changes that affect the tax treatment of the Company in ways that are unfavorable to the Investor but favorable to them. The principal shareholder(s) may also vote to engage in new offerings and/or to register certain of the Company’s securities in a way that negatively affects the value of the securities the Investor owns. The principal shareholder(s) may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns. The principal shareholder(s) have the right to redeem their securities at any time. The principal shareholder(s) could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. The exit of the principal shareholder(s) may affect the value of the Company and/or its viability. Based on the factors described above, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.
The securities offered via Regulation Crowdfunding may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:
- to the issuer;
-
to an accredited investor
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- as part of an offering registered with the U.S. Securities and Exchange Commission; or
-
to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.
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Valuation Methodology for Prior Reg CF Raise
The value of the promissory notes will be determined by the Company’s senior management in accordance with U.S. generally accepted accounting principles. For example, the notes may be valued based on principal plus anticipated interest payments over the course of the term of the note.
Company
Eskala, Inc.- Delaware Public Benefit Corporation
- Organized October 2020
- 7 employees
Forest Park IL 60130 http://www.eskala.org
Business Description
Refer to the Eskala profile.
EDGAR Filing
The Securities and Exchange Commission hosts the official version of this annual report on their EDGAR web site. It looks like it was built in 1989.
Compliance with Prior Annual Reports
Eskala is current with all reporting requirements under Rule 202 of Regulation Crowdfunding.
All prior investor updates
You can refer to the company's updates page to view all updates to date. Updates are for investors only and will require you to log in to the Wefunder account used to make the investment.
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