|1||💰 $4M+ in revenue. 35,000+ happy guests. 4.5/5 stars on Tripadvisor.|
|2||💸 Raised $1.5M+ from industry-leading angel investors.|
|3||💪 Team experience includes $230M+ of real estate development.|
|4||🏕 25% Return on Cost in our pilot location proves the profitability of our business model.|
|5||🗞 Featured in Vogue, the NYT, the WSJ, Forbes, Architectural Digest, Curbed, Thrillist, Jetsetter.|
|6||📈 40M+ Americans go camping each year; glamping is projected to grow at 12.5% annually through 2026 to $5B+.|
|7||👩🍳 Co-founder’s cookbook “Feast by Firelight” nationally distributed in Target, REI, L.L.Bean, Orvis.|
|8||📊 2020 revenues up 31% over same period in 2019 in times of COVID-19.|
I see an investment in Firelight Camps as an incredible opportunity to partner with an experienced leadership team in a rapidly expanding market segment. The founders' passion for ecotourism, coupled with the team’s deep hospitality roots, delivers an authentic, luxurious camping adventure that creates an unforgettable experience for guests. The team delivers consistent returns on its flagship site and has developed a rich pipeline of attractive projects just outside of major market metros where elevated camping is in high demand. The last several months have reconnected many of us with nature, and Firelight delivers an experience where we can unplug and enjoy the world around us without sacrificing luxury or convenience. I believe in this company and am truly excited and privileged to be the lead investor in this round of financing.
Traditional camping is uncomfortable and a hassle. Firelight meets the enormous demand for an easy, luxurious way to spend the night outside in nature. We've proven our model with $4M+ in revenue at our pilot location and are poised for rapid growth.
We have generated a 25% Return on Cost in our pilot camp in Ithaca, proving the exciting economics of our low development costs, strong rates, and robust demand.
There is magic in waking up to birdsong and wind in the trees while snuggled in a plush bed. Our huge safari tents are perched atop hardwood platforms and set back in the woods around a central common area. Nightly campfires, a full bar program, locally-sourced breakfast, and onsite activities like wild foraging and yoga create an immersive, social experience.
Now more than ever, Americans want to escape to the outdoors—and that isn’t changing any time soon. The glamping industry is projected to grow at 12.5% annually through 2026 to $5B+, and we’re poised for success in this growing market.
Our executive team has deep experience in real estate development, the glamping industry, hotel operations, and F&B. More importantly, we're passionate about what we do.
Firelight has been featured by press outlets including the New York Times, the Wall Street Journal, Forbes, Vogue Magazine, and more.
We get more people outside, encourage reverence for nature, and serve as an example of light-footprint development. Our camps pioneer low-impact infrastructure and natural landscaping that helps sustain rural and wild properties while providing guests with opportunities to explore the natural beauty of their surroundings.
We believe there is a place for a firelight camp in the weekend getaway markets of nearly every major city in the USA. We’ve proven our model with 25% Return on Cost in our pilot location, and we’re confident that we can continue to grow and make Firelight Camps a household name.
Our second location, Firelight Phoenicia in New York state, is already in the planning stages! And your investment will help us make it a reality. Take a look:
Everyone should experience the timeless traditions of gathering around a campfire and sleeping under the stars… and truly connect with themselves, each other, and nature. Help us make this possible!
Firelight Camps has financial statements ending December 31 2019. Our cash in hand is $422,398, as of September 2020. Over the three months prior, revenues averaged $192,366.38/month, cost of goods sold has averaged $4,781.96/month, and operational expenses have averaged $63,901.21/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.
Firelight Camps develops and operates luxury campgrounds that combine the best elements of a boutique hotel and a campground with plush beds, tended campfires, and resort amenities. Our pilot location in Ithaca has operated successfully for over six years and our second location, planned for 80 tents, is under contract in New York’s Catskill Mountains. Firelight has been featured in 75+ press outlets including the New York Times, the Wall Street Journal, and Vogue Magazine.
We are dedicated to making Firelight Camps the premier outdoor hospitality brand in the United States. Our 5-year goal is to have eight Firelight luxury campgrounds in operation, including both internally-developed properties and Firelight-branded camps we manage for others, and a growth pipeline of adding two to four campgrounds per year. These projections cannot be guaranteed.
Luxury Camping Inc. was incorporated in the State of Delaware in March 2014.
Since then, we have:
Historical Results of Operations
Liquidity & Capital Resources
Luxury Camping Inc (“LCI”), is not an investment company, and we do not invest in the securities of other companies. Our primary business is the development and operation of luxury glamping campgrounds. For liability protection, we undertake development activities in single-purpose, wholly-owned subsidiary companies; please see attached organizational chart for all of the companies affiliated with LCI. At this time, all of these companies are wholly owned by LCI.
Some of the funds raised will be used by LCI for its direct operating expenses, including ongoing salaries and overhead. The balance of the funds will be used for pre-development costs, including land option payments and design costs, for new Firelight developments, including Firelight Phoenicia. Typically, at the time these pre-development costs are incurred the single-purpose subsidiary involved (e.g. – Firelight III, LLC, in the case of Firelight Phoenicia) will be wholly-owned and controlled by LCI. Once certain project milestones are achieved (e.g. – building permits), LCI intends to raise additional third-party capital into the single-purpose entities to build the project. At that point, those single-purpose entities will no longer be wholly-owned by LCI, but (in most cases) they will remain under its control. We may elect to pursue other fundraising structures as well in the future, as our company evolves.
Luxury Camping Inc. (DBA Firelight Camps) owns the Firelight Camps brand, and employs our Chief Executive Officer, Chief Development Officer, marketing manager, and content manager. It intends to receive management fees in exchange for management and branding services for future Firelight Camps locations.
Ithaca by Firelight, LLC is wholly owned and managed by Luxury Camping Inc. It owns and manages our Firelight Ithaca operation and employs a general manager, as well as seasonal employees in housekeeping, maintenance, and front desk positions. Ithaca by Firelight, LLC is the tenant under a lease with La Tourelle Hotel and Spa for the ~6-acre Firelight Ithaca land. The base term of this lease expires in October of 2022.
Firelight Properties, LLC is a real estate company wholly owned and managed by Luxury Camping Inc. and has no employees at this time. It may receive development fees in exchange for development services in the future.
Firelight II, LLC is wholly owned and managed by Firelight Properties, LLC, (and, by extension, Luxury Camping Inc.). It held the option agreement for our now-abandoned project in Sullivan County, NY. This entity is no longer active.
Firelight III, LLC is wholly owned and managed by Firelight Properties, LLC, (and, by extension, Luxury Camping Inc.). It holds an option agreement to purchase a campground in Phoenicia, NY for our proposed ‘Firelight Phoenicia’ location.
Firelight IV, LLC is wholly owned and managed by Firelight Properties, LLC, (and, by extension, Luxury Camping Inc.). It is pursuing a future Firelight Camps project in the Northeast region of the United States.
To-date, the company has been financed with $88,527 in debt, $976,610 in equity, and $588,992 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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 18 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
Luxury Camping Inc. cash in hand is $422,398, as of September 2020. Over the last three months, revenues have averaged $192,366.38/month, cost of goods sold has averaged $4,781.96/month, and operational expenses have averaged $63,901.21/month, for an average net margin of $123,683.21 per month. We are currently profitable.
Our 2020 season has been our strongest yet with occupancy, rate, and revenues all up compared to our 2019 season. We received a Paycheck Protection Program Loan in early 2020 which we expect to be fully forgiven.
We expect October revenues to be about $145,000. Our Ithaca operation is seasonal and we close down at the end of October, so we will not report revenue again until we open for the 2021 season in May, though our cash flow does continue through the winter from advance deposits. Our monthly operating expenses also significantly drop in the offseason, and average about $23,000 per month in the offseason. We will also be paying our yearly land lease in January which will be around $70,000.
The total estimated project cost of our first phase of Firelight Phoenicia is $6.61million. We have spent or have reserved $250K, so we need an additional $6.36million to build it. Firelight Phoenicia is seeking approvals to construct 80 glamping units, but we only intend to construct ~47 of those units initially. After each season of operation, we will elect whether to add additional units. We believe we will be able to raise the funds for the buildout, but if we are unsuccessful then we will not be able to proceed with the Phoenicia project as envisioned. Our options in that case would include scaling back the development and seeking other deal structures, such as a sale / leaseback of the land or selling the project to another owner but retaining the management contract.
In terms of other forms of capital available, we have a $25,000 line of credit with our bank, M&T Bank. We also have an existing group of 17 private angel investors who have backed the company thus far.
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.
Our business plan includes the purchase and development of real estate. Cost overruns, delays, and/or errors in due diligence, design, permitting, or construction could negatively affect our company.
While outdoor hospitality has seen a significant increase in demand during the COVID-19 disruption, pandemic-related closures, regulations, labor challenges or supply disruptions could have adverse impacts on our company.
We are in competition with several more-established glamping owners and operators, and we expect increased competition from new entrants should the demand for glamping continue to increase.
We have a limited operating history. We have only been in business since 2014 and there can be no assurance that we will be able to undertake our business plan for the long term, or that we would become consistently profitable, or that our results so far are indicative of the results that we may be able to achieve in the future.
We will be materially affected by conditions in the real estate markets, the financial markets and the economy generally. These conditions may negatively impact our company and cause a decline in the market value of our properties once purchased.
We intend to operate in regions where the lack of sufficient labor could pose an operational challenge.
Our success will be dependent on our ability to acquire new properties and / or enter into new contracts for development, management, or branding services, and there are no assurances we will be able to do so.
Acquiring real estate; developing real estate; and operating real estate as a lodging business, campground, restaurant, event venue, or outdoor recreation facility are often subject to a significant degree of government regulation. The regulations include potentially costly matters, such as requiring improvements to meet building codes and standards, and environmental matters. Any new or increased levels of regulation could adversely impact the profitability of our company.
Extreme weather events may cause damage, decrease occupancy, or have adverse guest impacts.
We could experience increased expenses without a corresponding increase in revenues. There are operational and financing expenses we encounter that are not tied to generating revenue. Should our expenses increase as a result of any of these factors, our financial results could be negatively impacted as we may not experience a corresponding increase in revenues.
The amount of capital we are attempting to raise in this offering under Regulation Crowdfunding may not be enough to sustain our business plan, and we may raise additional capital in the future. In order to achieve our long-term goals, we may need to raise funds in addition to the amount raised in this offering under Regulation Crowdfunding. When it comes time to raise additional funds, there is no guarantee that we will be able to raise such funds on acceptable terms or at all. Or, if we do raise funds from equity offerings, those future investors may receive securities that are on more favorable terms than those offered to investors in this offering. If we are not able to raise sufficient capital in the future, we may not be able to execute on our long-term goals.
Our assets will be inherently illiquid, and such illiquidity could prevent the sale of those assets at a time when it otherwise might be desirable to do so. In addition, illiquid assets may be more difficult to value due to the unavailability of reliable market quotations.
Changes in consumer tastes are hard to forecast, and could result in a lack of demand for glamping in the future.
Even if we meet our goals, we may never distribute any dividends to our shareholders or sell our business to an acquirer. If so, there may be a complete lack of liquidity for the shareholders. It is likely that investors will not be able to liquidate their investment in the event of an emergency.
Purchasers of shares likely will experience dilution through additional shares we issue at a later date.
The sale of the securities will be done pursuant to federal exemptions (and state to the extent available) and the securities will not be registered, so no third party is passing on the quality of the disclosures made by the company.
State and federal securities laws may pose an issue and risk with respect to the Regulation CF offering and potential Regulation D offering. State and federal securities regulators can interpret exemption standards in various ways and even an investigation (without any found violations) can be costly and time consuming.
We may not have audited financial statements nor is it required to provide investors with any annual audited financial statements or quarterly unaudited financial statements, other than as any applicable law may require.
Our management has broad discretion in how we use the net proceeds of the offering, and may significantly influence matters to be voted or acted on by our company even if their interests may differ from or vary from those of the other stockholders.
Our management has prepared the assumptions and analyses that are driving our business plan. If these assumptions prove to be incorrect, or the analyses are applied incorrectly, our financial results may be negatively impacted. Whether actual operating results and business developments will be consistent with our management’s assumptions and analyses depend on a number of factors, many of which are outside our control, including, but not limited to: whether we can obtain sufficient capital to sustain and grow our business; our ability to manage our company’s growth; whether we can manage relationships with key vendors; demand for our products and experiences; the timing and costs of new and existing marketing and promotional efforts; competition; our ability to retain existing key management, to integrate recent hires and to attract, retain and motivate qualified personnel; the overall strength and stability of domestic and international economies; and consumer spending habits.
We, like any business, are exposed to the risk of employee fraud or other misconduct. Misconduct by employees could include intentional or negligent failures to comply with laws or regulations, provide accurate information to regulators, comply with applicable standards, report financial information or data accurately or disclose unauthorized activities to management.
There is no public trading market for the securities, and none may develop. The securities sold in this offering are restricted and not freely transferable. The offering price of the securities offered has been arbitrarily determined and may not be indicative of its actual value or future market prices. The shares sold will be subject to secondary/resale limitations on the federal and/or state levels.
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