πŸ“ˆ HelloWoofy.com, Smart Marketing 😍

πŸ”₯ HELLOWOOFY.COM, SMART MARKETING AUTOMATION. ~$1M SALES. 22K USERS/MEMBERS. πŸ“ˆ

Last Funded April 2023

$855,922

raised from 903 investors
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Investment Terms

You will be investing in πŸ“ˆ HelloWoofy.com, Smart Marketing 😍 through an SPV. This means that when you invest, you will be signing the SPV Subscription Agreement, not the direct investment contract. For more information on SPVs, see here.

Financials

We have financial statements ending December 31, 2021. Our cash in hand is $21,152, as of October 2022. Over the three months prior, revenues averaged $19,000/month, cost of goods sold has averaged $3,401/month, and operational expenses have averaged $77,246/month.

At a Glance

Jan 1 – Dec 31, 2021
$175,238
+124%
Revenue
-$532,500
Net Loss
$1,253,265
+56%
Short-Term Debt
$395,496
Raised in 2021
$21,152
+124%
Cash on Hand
Created with Highcharts 9.1.2$77,965​$77,965$175,238​$175,238-$533,855​-$533,855-$532,500​-$532,500RevenuesProfit20202021
Net Margin:
-304%
Gross Margin:
0%
Return on Assets:
-304%
Earnings per Share:
-$0.48
Revenue per Employee:
$11,682.53
Cash to Assets:
14%
Revenue to Receivables:
~
Debt Ratio:
716%
Woofy Inc. 2021-2020 Audited Financials v3.pdf

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.

Overview

πŸ† Smart marketing for underdogs aka small businesses at the price point of a cup of coffee. Manage using data science social media marketing, content marketing, optimizing any form of writing, creating graphical content and smart speaker marketing. Learn more at HelloWoofy.com! πŸš€

πŸ’° We hope to be a multi billion dollar enterprise supporting smallest of small businesses with a cutting edge marketing focused platform worldwide. πŸŒŽ These projections cannot be guaranteed.

Milestones

Woofy, Inc. was incorporated in the State of Delaware in September 2016.

Since then, we have:

  • Proven market validation with traction in a $50+ Billion dollar total addressable market πŸš€
  • ~$1.8M invested + ~$1M sales (invest as low as $249 w/ TOP investors eg Tim Draper etc). πŸŽ‰
  • Total sales to date ~$1M and growing πŸ†
  • 22,000+ members and users on HelloWoofy.com and Content Masters group. βœ…
  • Multiple fully patented data science tech and algorithms πŸ”¬
  • 70M+ content recommendations generated on by members when creating marketing content. πŸ“Š
  • 149% Growth Year over Year. 2X Business models combining SaaS metrics with Reg CF (see below). πŸ“ˆ
  • Small business owners save over 10 hours a week with marketing and networking automation. β˜•

Historical Results of Operations

  • Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $175,238 compared to the year ended December 31, 2020, when the Company had revenues of $77,965.
  • Assets. As of December 31, 2021, the Company had total assets of $175,016, including $24,171 in cash. As of December 31, 2020, the Company had $202,034 in total assets, including $110,512 in cash.
  • Net Loss. The Company has had net losses of $532,500 and net losses of $533,855 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
  • Liabilities. The Company's liabilities totaled $1,253,265 for the fiscal year ended December 31, 2021 and $804,787 for the fiscal year ended December 31, 2020.

Liquidity & Capital Resources

To-date, the company has been financed with $1,278,091 in convertible notes, $467,500 in debt, and $667,375 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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

Woofy, Inc. cash in hand is $21,152, as of October 2022. Over the last three months, revenues have averaged $19,000/month, cost of goods sold has averaged $3,401/month, and operational expenses have averaged $77,246/month, for an average burn rate of $61,647 per month. Our intent is to be profitable in 6 months.

We've experienced that facebook ads became harder to work with and cost of advertising increased as well across the industry. In order to mitigate, we invested more into organic marketing efforts to circumvent this trend. We are also making more investment into affiliate marketing allowing our customers to become revenue centers vs. our marketing efforts bringing in customers, our customers can then be incentivized to bring in their friends or fellow business owners to HelloWoofy.com. 

We are not yet profitable, but believe we could be with improved marketing, sales and funnels.  We hope to be profitable soon but our priority is building a scalable world class platform with investment into engineering and meeting our customer needs. We expect to be requiring $500k-$1m in funding to become profitable over the next 6-12 months allowing for greater investment into engineering, marketing and sales. 

We have credit cards, loans and other angels we are in touch with for future rounds of investment allowing us to access capital easily. Through these sources of capital, we can cover short term burn. 

The projections herein are forward looking and cannot be guaranteed.

Risks

1

We depend on certain key personnel, including senior executives. Our future success depends on the efforts of key personnel. Arjun Rai is our founder and CEO managing many aspects of the business from product to tech to fundraising etc. The loss of his services would have a materially adverse effect on us. We expect to face intense competition to be able to attract and retain additional qualified personnel, and it cannot be assumed we will be able to attract or retain qualified personnel. There can be no guarantee of our future performance and you may lose your entire investment.

2

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.

3

Our business could be negatively impacted by cyber security threats, attacks and other disruptions. Like others in our industry, we continue to face advanced and persistent attacks on our information infrastructure where we manage and store various proprietary information and sensitive/confidential data relating to our operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack our products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of our customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including β€œbugs” and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of our information infrastructure systems or any of our data centers as a result of software or hardware malfunctions, computer viruses, cyber-attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect our business.


Other Disclosures

The Board of Directors

Director Occupation Joined
Arjun Rai Founder and CEO @ Woofy, Inc. 2016
Glenn Argenbright Board of Director @ Quake Capital 2022
Lane Campbell Board of Director @ Abstraction, Inc. 2022

Officers

Officer Title Joined
Arjun Rai CEO 2016

Voting Power

Holder Securities Held Power
Arjun Rai 800,000 Class E 72.6%

Past Fundraises

Date Security Amount
Convertible Note $127,903
12/2022 Convertible Note $50,097
11/2022 Loan $10,000
9/2022 Loan $59,400
7/2022 Convertible Note $50,000
7/2022 Convertible Note $100,000
7/2022 Convertible Note $50,000
5/2022 Convertible Note $444,595
3/2022 Loan $108,100
2/2022 Loan $20,000
1/2022 Loan $10,250
10/2021 Loan $79,000
10/2021 Loan $25,000
6/2021 Loan $75,500
5/2021 Convertible Note $15,000
5/2021 Convertible Note $200,996
12/2020 SAFE $183,558
10/2020 Convertible Note $20,000
10/2020 Loan $25,000
8/2020 Convertible Note $100,000
5/2020 Convertible Note $5,000
4/2020 SAFE $383,817
1/2020 Convertible Note $20,000
12/2019 Convertible Note $25,000
12/2019 Convertible Note $25,000
12/2019 Convertible Note $15,000
11/2019 Convertible Note $10,000
5/2019 Convertible Note $25,000
5/2018 Convertible Note $15,000
12/2017 Convertible Note $5,000
11/2017 Convertible Note $100,000
10/2017 SAFE $50,000
9/2017 SAFE $50,000
4/2017 Convertible Note $50,000
9/2016 Convertible Note $2,500

Convertible Notes Outstanding

Issued Amount Valuation Cap
9/17/16
$2,500
$3,000,000
4/10/17
$50,000
$3,000,000
11/2/17
$100,000
$3,000,000
12/17/17
$5,000
$5,000,000
5/9/18
$15,000
$3,000,000
5/17/19
$25,000
$3,000,000
11/6/19
$10,000
$2,000,000
12/6/19
$25,000
$3,000,000
12/6/19
$15,000
$3,000,000
12/14/19
$25,000
$3,000,000
1/17/20
$20,000
$2,000,000
5/1/20
$5,000
$5,000,000
8/6/20
$100,000
$5,000,000
10/15/20
$20,000
$9,000,000
5/10/21
$15,000
$9,000,000
7/13/22
$50,000
$18,000,000
7/14/22
$100,000
$18,000,000
7/21/22
$50,000
$18,000,000
12/21/22
$50,097
$18,000,000

Outstanding Debts

Issued Lender Outstanding
10/9/20 PRASHANT RAI
$25,000
1/18/22 arjun rai
$6,926
2/23/22 AMERICAN EXPRESS
$10,409
3/3/22 STRIPE
$38,071
9/9/22 PAYPAL
$58,951
11/8/22 Preshant Rai
$10,000

Related Party Transactions

Use of Funds

$50,000 Engineering/Product /PM Talent (19%), General Working Capital/Misc. (27%), Estimated Accounting Related Fees (8%), Estimated Marketing Related Fees (12%), Estimated Sales Related Fees (3%), Estimated Operations Fees (12%), Estimated Office Rental (11%), Reserve Capital (0.5%), Intermediary Fees (7.5%)

$1,500,000 If we reach the Maximum Fundraise Target, we expect to hire more engineering and marketing talent and to accelerate our product development and marketing initiatives significantly.  We plan to deploy the proceeds as follows if we reach the Maximum Fundraise Target:  Engineering/Product /PM Talent (16%), General Working Capital/Misc. (30%), Estimated Accounting Related Fees (8%), Estimated Marketing Related Fees (14%), Estimated Sales Related Fees (2%), Estimated Operations Fees (12%), Estimated Office Rental (10%), Reserve Capital (0.5%), Intermediary Fees (7.5%)

Capital Structure

Class of Security Securities (or Amount) Authorized Securities (or Amount) Outstanding
Preferred 500,000 0
Class E Common 900,000 900,000
Class A Common 1,600,000 201,800

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.

Details