Question 1

I would like to know as an international investor if the company will withhold taxes directly from the payments, in order to not be subject to double taxation foreign investors can present a W-8 BEN form. I was convinced the form had to be presented to the intermediary but Wef...

Accepted Answer

Hi Diego, Thanks a lot for asking. It's a great question and as we have a global community, you're probably not the only one needing a clarification here. Wefunder just confirmed to me that they are transferring the entirety of our repayments back to your Wefunder cash wallet every quarter without withholding any taxes. And then, you can wire your Wefunder cash back to your bank account at your convenience. PS: Thanks a lot for our call this morning, it was great meeting you!

Question 2

As you mention a target repayment, does this mean it is not a guaranteed return on my investment if I choose to make one? Could it be possible that I would invest, but subsequently get the same or less money returned from my investment?

Accepted Answer

Thanks, Meredith. That's a great question. The target repayment only refers to the time to repay, not to the multiple. Every quarter, the company repays a fixed % of the previous quarter's revenue. Based on the provided revenue forecast, it will be repaid in 3 years. If we have much better revenue than expected, we will end up repaying 2.25x your investment in less than 3 years. If we make less revenue than expected, we will still repay 2.25x your investment but it may take more than 3 years.

Question 3

With $24m in revenue, why do you need to campaign the general public to join as investors? Surely the business isn’t running at a $4.8m per year operating cost, is it? In order to consider investing I would love to understand why this is the route you’ve chosen to take instead...

Accepted Answer

Hi Ernie, Thanks for asking! We have been reinvesting our revenue in the company since its inception. The Lovebox Color & Photo, Lovebox Everyday, Collaborations with licenses, the Favily app, Lovebox Channels, and now Happy Loop. It is still the early days of all those projects we invest in, they have not all generated a return yet, the last two have been developed but not even launched. The campaign with the community aims to both communicate about all those new initiatives and gather f...

Question 4

You mentioned "I AM" app has a $400k monthly reoccurring revenue model. How did you validate this?

Accepted Answer

Thanks for your question, Ramez. As it's not a public company, we can only rely on third-party estimates. There are several sources confirming a $400K+ monthly revenue for I AM. One of them is available here: https://www.statista.com/statistics/1239670/top-health-and-meditation-apps-by-revenue/

Question 5

Can you break down all the different costs that go into making a lovebox? What is the net profit per unit sold after all expenses?

Accepted Answer

Hi Ramez, as any information here is public and can be accessed by competitors, we don't communicate on a precise breakdown. But as mentioned on the campaign page, we have 50% gross profit after all manufacturing, logistics, duties, taxes, shipping, storage, returns, payment processing fees, and discount costs. This is an overall gross profit across all sales channels (the gross profit is obviously much higher in direct e-commerce, something in between for Amazon sales, and lower for B2B or w...

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