Invest in LockedBrands: Smart Lockbox Systems that Make Communities and Households Safer

The application of this technology goes far beyond safeguarding valuables from those in and around our lives. It extends to a variety of verticals where a voice activated lockbox system can be the key to children's safety and to the safety of our community's elderly, in the home environment and the work environment. The founder imagines a world where the elderly are reminded to take their medications once and only once per day, where curious teenagers are not at risk of taking pills that may have terrible effects on them, and where an electronic lockbox could be tied to lifesaving medical monitoring devices that could inhibit the taking of medications when they are not necessary. Working in concert with a variety of governmental agencies and independent companies wishing to create assisting living protocols that can ensure the correct people get the correct medications, LockedBrands can help take the health and welfare of our communities to the next level. I believe in the vision of the founder and I believe in the founder's ability to create success. I'm 100% behind LockedBrands, LLC.

Jeff Mahony
Lead Investor Investing $75,000 this round & $146,250 previously

Hello my fellow American's I'm glad that we could connect and forge the future of Cannabis , etc.... Sincerely yours truly believe that MR.Christopher Daniel Jennings one love.

Mr. Christopher Daniel Jennings

Hello my fellow American's I'm glad that we could connect and forge the future of Cannabis .

As a physician, I have seen first-hand the problems that occur when medication of all types (especially opioids) get into the wrong hands - and that often includes children and pets! I think LockBrands is working on promising potential solution.

Sajad Zalzala

I am a Physician and Entrepreneur looking to make a difference anyway I can. Plus, I think startup investing is cool.

Investor Q&A

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What does your company do?

We make communities safer by creating solutions for the opioid and prescription drug abuse problem in this country.

Where will your company be in 5 years?

We anticipate selling in the 2024/2025 time-frame to a competitor, strategic partner or a new player in the Home Automation or Health Care industry (this cannot be guaranteed).

Why did you choose this idea?

My wife and I both have siblings that have suffered with drug addiction issues for their entire adult life. We have experienced first hand the devastating effects this has on families and the addicts themselves. LockedBrands was created in order to develop real solutions for the opioid epidemic through secure storage and management devices.

How far along are you? What's your biggest obstacle?

The Pillar, our Gen 1 product, is in production now and making sales. It is the technology demonstrator for the Secure Med Manager. We have proven we can set up the cloud and app infrastructure. We have established a manufacturer that can ramp up to 50,000 units per month with quality and testing metrics in place. The Secure Med Manager, our Gen 2 product is set for trials in Q1 2021. We have a proof of concept prototype in the lab. We have a SaaS business model with target cost that puts us well ahead the competition. Biggest Obstacle - Choosing the right Secure Med Manager marketing partner and reimbursement strategy for quick market penetration.

Who competes with you? What do you understand that they don't?

We have one direct competitor that is also a startup. They are ahead of us in terms of having beta test underway. Their product is more complex and requires significant touch labor by the pharmacies and/or caregivers. Thus, it is likely higher cost. Further, it is less attractive to pharmacies as they must manually load up the pills every month. There are several other indirect competitors with large (ie non-portable), expensive, devices with limited or no security that are high maintenance. Our Insight: Give the customers a secure, portable, low cost, very low maintenance med management system, while ensuring a high industry acceptance rate by using existing ubiquitous pill pack formats.

How will you make money?

For the existing Pillar product, it is a pure hardware sale with good margins. For the Secure Med Manager, there are moderate margins on dispenser hardware sales and significant recurring SaaS revenue for cloud services. There is a third, longer term revenue stream for med compliance data sales to third parties once a large number of subscribers has been achieved.

What are the biggest risks? If you fail, what would be the reason? What has to go right for you to succeed?

Risks 1. Selecting the right marketing partner and market sub-segment for launch that will provide significant, fast market penetration. 2. Must be able to scale up from one state or region to the next, while accounting for different reimbursement strategies from one region to the next. 3. If the current trade/tariff war with China is not settled, we may have to execute a strategy to move enough content out of China so tariffs are not an issue. (Our factories in China are Taiwanese owned). However, this could result in a temporary hit to our margins as we move some operations out of China. 4. LockedBrands is in the early stage of a multi-year growth plan. Macroeconomic changes could slow sales growth. 5. LockedBrands has protected some of its core intellectual property with United States patents (Utility patents filed, owned by LockedBrands, LLC). If these patents are challenged or overturned, this could aversely effect the company. 6. For LockedBrands to execute on its multi-year growth plan, it needs to add key people in target geographies to build sales channels and drive sales growth. If we are unable to hire these key people, it can potentially slow sales growth and could adversely effect the company. 7. COVID-19 has had an impact on our business. Beginning in March, shortly after a successful launch with a major distributor, stores were shuttered or were handling curbside delivery only. Selling a new innovative product like the StashCan through a car window was certainly a challenge. As a result, we made a conscious decision to offer special introductory pricing and sales incentives in order to get the product out there and generate the buzz. This tactic proved successful with another large order being placed in July. However, as expected, our margins in the near term have been sub-optimal. So, while the pandemic has hurt our margins in the near term, we have been able to drive sales and mitigate the risk of no revenue. Given that, the extent and duration of the effects of the COVID-19 pandemic and economic downturn are difficult to predict, which makes our future performance more difficult to predict. If the COVID-19 pandemic and economic downturn persist, or if they worsen, we expect that our business will continue to be adversely affected, resulting in a further negative impact on our business, financial condition, results of operations and cash flows. 8. We are a growth startup company and are not currently profitable. We expect to need to raise additional capital to enter full scale production of the Secure Med Manager. We can give no assurance that we will successfully negotiate or obtain additional financing on terms favorable or acceptable to us, or at all. We do not have any commitments for additional financing. Our ability to obtain additional capital will depend on market conditions, the U.S. 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 continue our operations would be significantly limited. If we are not able to sell all of the securities offered in this financing, or complete such additional equity or debt financing, we may not have the funds necessary to fully execute our objectives. Our failure to secure necessary financing on a timely basis when needed (including the maximum offering amount hereunder) could have a material adverse effect on our business, prospects, financial condition and results of operations. Reasons for Failure 1. Entry into and share of market. If we enter the market too late or cannot remain competitive within the market it would lead to difficulty establishing significant market share. 2. A massive change in health care insurance, eg. single payer system, would put a multi-year delay into the introduction of new, innovative health care related technologies, including the Secure Med Manager. What has to go right 1. Complete development of the Secure Med Manager followed by market penetration into the target sub-segment. 2. Successful execution of the direct to consumer (DTC) e-commerce effort for the Pillar.

Why is the difference between Cost-of-Goods-Sold (COGS) in 2020 vs the revenue for that period so small? How will you make money with such small margins?

The formal launch of the StashCan with our distributor began in late January 2020. Shortly after that, the pandemic hit and we made a conscious decision to “seed” the market in order to get the product out there and in to the hands of the users. This meant offering special introductory pricing and sales incentives now, in order to generate demand and excitement in the middle of the Covid-19 pandemic. Since signing up this distributor in January we have: • Sold over 1000 StashCans • Signed up over 60 Authorized Retailers • Provided point-of-sale kits to drive sell-through We believe this tactic will pay off in the not too distant future as we move out of the pandemic and into a more stable sales environment where we anticipate our ongoing wholesale margins to be 40%+.

1	A real solution to the opioid and prescription drug abuse epidemic.
2	Reach a market of over 128M Americans.
3	In-production Gen 1 generating sales now.
4	Gen 2 features Software-as-a-Service (SaaS) and compliance data revenue streams.
5	33% manufacturing cost reduction since Q2 2019.
6	Team of senior tech leaders, doctors, entrepreneurs with 120 years combined relevant experience.
7	IP protection: Utility patents and CIPs filed.
8	Marketing plan on schedule and showing strong signs of pandemic recovery

1	Selecting the right marketing partner and market sub-segment for launch that will provide significant, fast market penetration.
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	Must be able to scale up from one state or region to the next, while accounting for different reimbursement strategies from one region to the next.
4	If the current trade/tariff war with China is not settled, we may have to execute a strategy to move enough content out of China so tariffs are not an issue. (Our factories in China are Taiwanese owned). However, this could result in a temporary hit to our margins as we move some operations out of China.
5	LockedBrands is in the early stage of a multi-year growth plan. Macroeconomic changes could slow sales growth.
6	LockedBrands has protected some of its core intellectual property with United States patents (Utility patents filed by LockedBrands, LLC, not yet granted). If these patents are challenged or overturned, this could aversely effect the company.
7	For LockedBrands to execute on its multi-year growth plan, it needs to add key people in target geographies to build sales channels and drive sales growth. If we are unable to hire these key people, it can potentially slow sales growth and could adversely effect the company.
8	COVID-19 has had an impact on our business. Beginning in March, shortly after a successful launch with a major distributor, stores were shuttered. And as of early-July, most remain shuttered, or are drive-through and/or curbside delivery only. However, as stores are slowly reopening across the US, inventory is moving and interest is on the rise. Given that, the extent and duration of the effects of the COVID-19 pandemic and economic downturn are difficult to predict, which makes our future performance more difficult to predict. If the COVID-19 pandemic and economic downturn persist, or if they worsen, we expect that our business will continue to be adversely affected, resulting in a further negative impact on our business, financial condition, results of operations and cash flows.
9	We are a growth startup company and are not currently profitable. We expect to need to raise additional capital to enter full scale production of the Secure Med Manager. We can give no assurance that we will successfully negotiate or obtain additional financing on terms favorable or acceptable to us, or at all. We do not have any commitments for additional financing. Our ability to obtain additional capital will depend on market conditions, the U.S. 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 continue our operations would be significantly limited. If we are not able to sell all of the securities offered in this financing, or complete such additional equity or debt financing, we may not have the funds necessary to fully execute our objectives. Our failure to secure necessary financing on a timely basis when needed (including the maximum offering amount hereunder) could have a material adverse effect on our business, prospects, financial condition and results of operations.
10	Offerings under Section 4(a)(6) of Securities Act of 1933, as amended (the “Securities Act”), are exempt from state and federal registration requirements. Therefore, there is less disclosure of, or publicly available, information contained in this document than would typically be provided in a registered offering. While we have attempted to summarize the risks to the best of our ability, there may in fact be risks associated with participating in this offering, and Company-specific risks that have not been contemplated in this document.
11	Investments in private companies, particularly early stage companies such as us, involve a high degree of risk. Early stage companies are usually comparatively more vulnerable to developments such as rapid changes in technology, fluctuations of demand and prices and to marketing competition from larger, more well established competitors. Therefore, we cannot assure that we will ever achieve or maintain profitability from our operations.
12	The market values of investments in private companies (especially early stage companies such as us) are difficult to determine. They generally are subject to negotiations between company management and prospective investors, and may result in values that are highly arbitrary. Furthermore, a private investment made in our company will be illiquid and likely will be long term in nature and may require years from the date of initial investment before disposition, if ever. The value of your investment may be lost or substantially devalued at liquidity.
13	Neither the Convertible Promissory Notes to be issued in this offering (the “Notes”) nor the securities issuable upon their conversion will be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and will not be subject to resale unless they are subsequently registered under the Securities Act and other applicable securities laws or an exemption from registration is available. Thus, there will no public market for the Notes or the securities issuable upon conversion of the Notes, and no public market is expected to develop.
14	Given the early stage of our company and the rapidly evolving nature of the markets in which we compete, we may experience significant fluctuations in our future operating results due to a variety of factors, many of which are outside our control. Factors that may adversely affect our future operating results include, without limitation, unforeseen development costs, variable operating costs, general economic conditions and market conditions, and the development or introduction of new technological innovations, products or services by our competitors. If we are unable to address the above factors, our operating results may fall below the expectations of management, which could adversely affect our business.
15	The state of US – China relations is a significant risk to price stability and long-term reductions in manufacturing costs of LockedBrands products. Further, there are multiple manufacturers in Asia that can produce LockedBrands products more cost effectively than China, regardless of tariffs. Given that, it would be prudent to mitigate this risk to our long-term competitive price position by developing a plan to move operations out of China. As a result, LockedBrands management has set aside budget within the proceeds of this crowdfunding raise to develop and implement the plan. (See Use of Funds for details.)

Director	Occupation	Joined
Justin Monger	CEO @ LockedBrands, LLC	2019
Bryan Waters	CEO @ Microf	2019
Dr. Jeff Narmi	Emergency Room Physician @ Self-employed	2019
Jeff Mahony	FinTech Company @ SaveDaily.com	2020

Date	Amount	Security
	$0	Convertible Note
05/2020	$25,000	Priced Round
05/2020	$150,000	Loan
08/2019	$49,943	Loan
05/2020	$481,000	Priced Round
04/2019	$50,000	Priced Round
02/2019	$5,000	Priced Round
02/2019	$45,000	Priced Round
01/2019	$25,000	Priced Round
06/2018	$50,000	Priced Round
01/2018	$80,000	Priced Round
02/2017	$40,000	Priced Round

Lender	Issued	Amount	Oustanding	Interest	Maturity	Current?
Justin Monger	08/01/2019	$49,943	$41,038	3.0%	09/01/2023	Yes
US. Small Business Administration	05/13/2020	$150,000	$263,160	3.75%	05/13/2050	Yes

Name	Justin C Monger
Amount Invested	$45,000
Transaction type	Priced Round
Issued	02/28/2019
Valuation cap	$1,858,820
Relationship	Founder and CEO

Name	Justin Monger
Amount Invested	$40,000
Transaction type	Priced Round
Issued	02/24/2017
Valuation cap	$163,000
Relationship	Founder and CEO

Name	Justin Monger
Amount Invested	$49,943
Transaction type	Loan
Issued	08/01/2019
Outstanding principal plus interest	$41,038 as of 07/2020
Interest	3.0 per annum
Maturity	09/01/2023
Outstanding	Yes
Current with payments	Yes
Relationship	Founder and CEO

Name	Justin Monger
Amount Invested	$25,000
Transaction type	Priced Round
Issued	05/20/2020
Valuation cap	$2,000,000
Relationship	Founder and CEO

Class of Security	Securities (or Amount) Authorized	Securities (or Amount) Outstanding	Voting Rights
Class C Employee Pool	646,170	0	No
Class B	2,000,000	2,000,000	Yes
Class A Preferred	7,353,827	7,353,827	Yes

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Why you may want to invest in us...

Why investors us

we've raised $1,155,408 since our founding

Our team

And Our Major Accomplishments

In the news

Downloads

What is the Real Cost of the Opioid Crisis in the US?

Redefining Secure Storage

The Problem & Solution

Investor Testimonials - Hear What our Investors have to say

LockedBrands Board Members are Investors as well

Strategic Advisors

How We Are Making it Happen: Our Growth Story

Market Sizing for the Gen 1 Device

Dual Positioning for Better Market Penetration

The StashCan Story

Market Access To-Date

Better than the Rest

The Secure Med Manager

Market Sizing for the Secure Med Manager (SMM)

Go To Market for the Secure Med Manager

Secure Med Manager Prototype

Competitive Landscape for Secure Med Manager

Primary market - Use Case #2: Americans with chronic pain or opioid misuse disorder.

There is limited competition for the opioid use case.

Secondary Market - Use case #1: Americans with two or more chronic diseases

How Your Investment Will Help

Investor Q&A

Financials

At a Glance

Risks

Details

The Board of Directors

Officers

Voting Power

Past Equity Fundraises

Outstanding Debts

Related Party Transactions

Use of Funds

Capital Structure

The Funding Portal

Form C Filing on EDGAR

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