|1||A certified, safe alternative to unregulated natural products & questionable chemical sunscreens|
|2||Google searches for mineral sunscreen have increased 100% since 2018|
|3||+47% revenue YOY from Q2 2018 - 2019, on trend to beat Y2 (despite COVID) only 5 months into Y3|
|4||Despite 65% retail store closure for 4 months, sales YTD (5 mos) are more than 50% of last year|
|5||Ramping up digital, e-commerce sales growing 100% MOM and up 30% to last year, with July up 600% YOY|
|6||International IP on revolutionary sunscreen applicator targeting $1.3B spray sunscreen market|
|7||Able to capitalize on $20B clean beauty biz with our new certified Cosmos Natural skincare & makeup|
|8||Expanding to Europe, #1 market for natural products with $3.6B sunscreen market|
FINALLY, a company that invented the most safe and healthy mineral sunscreen formula on earth, for all ages!
LoveSunBody has great new mineral sunscreen and face moisturizer products!
There’s no better mineral sunscreen out there healthier for Your skin and safer for Our planet! LoveSunBody hit a home run with their new anti-aging natural face moisturizer-sunscreen. The raspberry seed oil enables quicker drying when applied to your face.
It is always refreshing to recommend healthy products like LoveSunBody to all of my patients. Especially, because I use them.
I’ve been a practicing chiropractor for 28 years. I really enjoy the fact that Dr. Terry Zickerman not only has a veteran financial NYC background, but, he is also a licensed chiropractor. Dr. Zickerman is a terrific CEO and understands the global health-conscious demand. Our world has an insatiable appetite to become greener. Dr. Zickerman will lead this vision with his passion about the LoveSunBody company products. He is continually innovative, creating new awesome healthy and safe products. He has the correct and determined vision for all of his LoveSunBody investors! That’s why I’m investing in LoveSunBody company!
People don’t realize most sunscreens are full of chemicals and pesticides which are harmful to our human bodies and our ocean reefs. States in America are already banning chemical sunscreens because of those toxic active ingredients destroying our planet. The LoveSunBody mineral sunscreen products will excel to the forefront on every beach globally because of this growing toxic sunscreen banning popularity.
I enjoy the all natural LoveSunBody unscented mineral sunscreen which doesn’t sting your eyes when applied. Especially great for babies. Their scented vanilla bean mineral sunscreen is terrific for your body. Their new face moisturizer doesn’t sting your eyes either when applied.
If you are too tired to shower after a long day at the beach with your family, no worries. The LoveSunBody mineral sunscreen can stay on your body as long as you like. The almond oil is great for Your skin! You truly don’t have to rinse it off at all.
For everything I mentioned above, I’m excited to invest in the LoveSunBody company! I’m just as excited about their future products for myself and my patients!
Dr. John Liaci
Sunscreen & Skincare that is Safe for Your Body & the Planet
I'm Dr. Terry Zickerman and I founded Love Sun Body over a simple conversation with my family about sunscreen while visiting Point Pleasant, NJ.
We were discussing how difficult it was to find a natural sunscreen that actually worked and was safe to use because so many could not deliver sufficient protection and others were still incorporating potentially harmful synthetic chemicals.
Also, as a doctor, I was already familiar with studies showing sunscreen chemicals may be absorbed into our bodies and the health risk that they may pose (not to mention how bad they can be for the environment). So, we asked ourselves – what if we could create something natural that really worked, that was safe, that people would find easy to use and would be more eco-friendly? We spent the next 7 years working on it and that’s how Love Sun Body was born!
Love Sun Body is the only Cosmos Natural certified 100% natural origin mineral sunscreen in the U.S. We like to think that this makes us the most honest, trustworthy, cleanest and safest sunscreen available -- but it's not just us saying it -- the Cosmos Natural certification validates it.
Given the lack of global regulation on natural cosmetics and the misleading marketing from many companies, Love Sun Body has pursued Cosmos Natural Certification as a way of proving to consumers and retailers that our products are truly 100% natural and environmentally responsible.
Many companies use the phrase “natural” even when chemical ingredients co-exist with natural ingredients in a formula. The unregulated use of “all-natural” devalues the notion that a product is completely natural. Having Cosmos Natural certify that our formula is of 100% natural origin – may prompt explanation – but it gives us an opportunity to educate consumers and ensure they know that our product is sourced and produced responsibly, with an understanding of where our ingredients come from and are truly 100% natural and free of any harmful chemicals.
Cosmos Natural certification is one of the toughest set of requirements for natural cosmetics in the world. A certified 100% natural origin sunscreen means:
This is why we say Love Sun Body is safe for your body & the planet.
Love Sun Body 100% Natural Mineral Sunscreens
Within 6 months of our launch, the sunscreen industry experienced two major shakeups -- and we were perfectly positioned to capitalize on both of them.
First, studies revealed that up to 10 chemical sunscreen ingredients were harming the coral reefs around the globe. It was reported that it takes only 1 drop of these chemicals in an Olympic size swimming pool to affect the toxicity levels. Studies also indicated these chemicals may harm marine life such as disrupting reproductive systems of fish.
Ultimately, several countries, the state of Hawaii and cities like Key West voted to ban chemical sunscreen ingredients for harming the coral reefs. I even had the honor of attending and speaking at the the meeting in Key West.
Since early 2019, searches for reef safe sunscreen and oxybenzone-free sunscreen have only grown.
The second development came from the FDA. After multiple studies revealed potential health risks from active chemical sunscreen ingredients, the FDA no longer considered these active chemical ingredients as GRASE (or generally regarded as safe and effective) and state more research is needed to confirm their safety.
The FDA has declared minerals like zinc oxide and titanium dioxide as the only safe sunscreen filters. As a result, Google searches for mineral sunscreen have increased 100%.
A Green, Sustainable Company
At Love Sun Body, we are united by our sustainability strategy that is built around pillars that put health and a green initiative at the heart of our work, "Safe for your body and the planet".
Sustainability and Traceability is no longer an option. It is a necessity.
When it comes to sustainability and traceability, all aspects of our operations come into play: sourcing ingredients, packaging, labeling, manufacturing and waste reduction … all in the name of protecting the climate, the forest, waters and people.
All of our products are biodegradable, all of our packaging is recyclable, minimized and is environmentally friendly. We are actively sourcing new, even more environmentally-friendly packaging for our future product development.
Our manufacturing incorporates natural cleaning ingredients.
At Love Sun Body, we seek to leverage our reach, scale and expertise to effect real change in sustainability issues. Our green activities and initiatives include recycling, manufacturing, socially responsible investments (SRI) that focus on conservation of natural resources, manufacturing, implementation of clean air, and other environmentally conscious business practices.
Research & Development and Intellectual Property
Our accredited independent contract research organization (CRO) and contract development and manufacturing organization (CDMO) collaborator has assisted Love Sun Body with all product development and intellectual property.
Our contract manufacturer is a world leader in cosmetics R&D and manufacturing, with a state of the art CGMP (Current Good Manufacturing Practice regulations enforced by the FDA) facility. The facility has the most advanced technology and exceptional quality control. The facilities team of accomplished scientists’ test and manufacture all Love Sun Body’s revolutionary formulas.
We were proud to launch with the leader in the clean beauty movement, Credo Beauty, but throughout 2019, we added many other top clean beauty retailers to our list of distribution partners including: Pharmaca, Follain and Detox Market in the U.S and Canada. This year we added Macy's to our list of retailers.
Four months ago, we entered our 3rd year and despite 65% of all of our retail stores being closed during this period due to COVID (and 2 months during our peak season) we are still on trend to outperform Year 2.
Partners and Sponsors of the Melanoma Action Coalition and Member Organizations
This summer, we established a partnership with the Melanoma Action Coalition and are proud to be their official sunscreen partner. We will be supporting the fundraiser and awareness events and programs of their members with samples and marketing support. See a complete list of members here: https://www.melanomaactioncoalition.org/about-our-members.html
The Global Sun Care Market
The sunscreen industry is forecast for double digit growth annually for the next decade. Consumers are realizing the benefits of proper sun protection.
Furthermore, doctors and physicians are also advising sun care to protect skin against harmful damages caused by UV rays. Spurred by these factors, the global sun care market will witness significant prospects for growth between 2018 and 2024, driven by a shift towards new product development to create healthier, natural alternatives by companies that will ascertain the market’s growth in the coming years.
Our future product development will further expand our brand into clean beauty skincare and cosmetics, with products that are designed for use 365 days/year. The global natural cosmetics market is projected to hit $47B by 2024.
Product Line Extensions and Expansion into Skincare & Cosmetics: Our mission is to be the first and only Cosmos Natural certified skincare and cosmetics in the US. We also have additional sunscreen products in development to expand and complete our assortment. These projects are targeted for launch in 2021.
A Breakthrough Invention: We also have a revolutionary invention for self-application and easy delivery of sunscreen that we believe will be not only disruptive to the sunscreen spray industry (worth over $7m) but also present licensing opportunities with major sunscreen manufacturers given our IP protection in over 10 countries. This product is in development, but capital from this raise will help us bring the product to market. Early market research indicates consumer interest:
Expansion into Europe: Europe is projected to be the largest consumer market for natural cosmetics and they also represent over 30% of the global sunscreen market. We see expansion into Europe in 2021 as an essential to our growth strategy. We are seeking capital for inventory and marketing support of a European roll-out.
Build on Digital Success: We are seeking to invest more in the digital activities that are driving sales while expanding our resources and team to strengthen and optimize our digital marketing and e-commerce business.
As CEO, my undergraduate studies focused on biology, chemistry, physics and business. After receiving my doctorate and practicing for several months, I decided to work in finance in New York City. For the next 23 years, I worked as a Senior President for over 10 years at Gruntal, Prudential, UBS and Smith Barney. My career than transitioned to work in institutional sales and research for Citi Smith Barney and Morgan Stanley. While working on Wall Street for 18 years, Love Sun Body was founded upon a conversation on sunscreen application, protection and toxicity. After 6 years of research and development, we created the world's safest and highest quality sunscreens, with no compromise on efficacy and safety, using 100% natural ingredients that are certified to ensure traceability and sustainability. Love Sun Body's products are safe for your body & the planet.
Our board member Dr. Brian Brazzo is graduate of the Harvard Medical School and University of Pennsylvania. Dr. Brazzo is a board-certified ophthalmologist and a fellowship-trained plastic surgeon. His practice is devoted to the most advanced techniques in ophthalmic plastic surgery. Our board member Kevin Gallagher was the President of Croda’s Global Personal Care & Actives business. In this capacity, he had P&L responsibility for Croda’s Global Personal Care & Actives businesses around the world. In addition, he was President Croda Inc. He also served as a member of the Executive Committee of Croda International Plc. Throughout his 37-year career at Croda, Mr. Gallagher has held diverse roles in R&D and Quality Management, Sales and Marketing.
Our shareholders include UBS and Morgan Stanley executives, a fund manager, medical doctors specializing in plastic surgery, anesthesiology, gastroenterology and private domestic and international investors.
We have an experienced team of beauty industry experts and business leaders shaping and building the future of Love Sun Body. We have had tremendous support and partnership from our award-winning PR agency, RED PR. We have top notch accounting and legal partners -- including one firm focused on protecting our intellectual property. Our head of retail sales began her career at Nordstrom and brings over 20 years expertise selling, marketing and merchandising products to retail customers. Our head of marketing has over 12 years experience driving growth and profitability amongst several industry start ups and emerging brands like T3, Temptu, Living Proof and BIOEFFECT. She has over 10 years experience building multi-million dollar businesses within the world of home shopping at HSN and QVC. She also has a strong track record in product development, having conceived and launched over 10 best-sellers and award-winners, including at least 6 Allure Beauty Breakthroughs.
Love Sun Body has financial statements ending December 31 2019. Our cash in hand is $35,000, as of August 2020. Over the three months prior, revenues averaged $20,284/month, cost of goods sold has averaged $12,881/month, and operational expenses have averaged $42,914/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.
We invent, manufacture and sell innovative natural sunscreen and skincare that is certified 100% natural origin to the Cosmos Natural standard. Cosmos Natural is one of the world’s most rigorous certification processes for natural cosmetics. Amidst a confusing, unregulated natural beauty marketplace, our certification gives customers transparency about our product, ingredients and more – as well ensuring they can trust that our formula is safe for humans and non-toxic to the environment.
In next 5 years, our goal is to be a profitable business that is one of the top 5 natural sunscreen brands in the U.S. and one of the top 10 skincare brands in the clean beauty space.
Love Sun Body LLC was incorporated in the State of Delaware in September 2012. All patents are owned by Love Sun Body LLC.
Since then, we have:
Historical Results of Operations
Related Party Transaction
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 $300,000 in debt and $1,975,673 in equity.
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
Love Sun Body LLC cash in hand is $35,000, as of August 2020. Over the last three months, revenues have averaged $20,284/month, cost of goods sold has averaged $12,881/month, and operational expenses have averaged $42,914/month, for an average burn rate of $35,511 per month. Our intent is to be profitable in 12 months.
Due to our retail partners brick and mortar stores being closed from March through April, our retail partners sold only by online commerce. Vacation travel was down due to Covid-19, affecting our online and Amazon sales..
Our revenues are expected to be between $60,000 and $100,000 over the next three to 6 months. Our expenses are expected to be between $90,000 and $180,000 over the next three to 6 months. We expect a revenue lift this fall by the continued ramping up digital, e-commerce sales that stated this summer and the moisturizing mineral face sunscreen, that will continue with the launch of the four tinted sunscreens launching this winter.
We can apply for a commercial loan, funding from unitholders, corporate credit card and vendor financing and an equity line of credit.
The Company can offer no guarantee that future results will conform to the projections. Our operations are subject to all risks inherent in an early stage business enterprise operating in a competitive market. Our financial projections represent our expectations of future performance based on assumptions, estimates and judgments; however, actual future Company performance may be significantly different and will depend on future conditions and events which cannot be reliably forecast. Accordingly, these projections should be considered solely illustrative and should not be relied upon for the purpose of making investment decisions.
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.
The likelihood of the success of the Company must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with an early stage business and the competitive environment in which we will operate.
A variety of factors may cause our operating results to fluctuate significantly. Many of these factors are outside of our control. They include: the effectiveness of our new product launch and sales and marketing campaign; market acceptance of our products; our ability to develop new products; the amount and timing of operating costs and capital expenditures; introduction by competitors of new or enhanced products; price competition; and fluctuations in general economic conditions as well as economic conditions specific to our industry. One or more of these factors could materially and adversely affect our operating results in future periods. These factors could have a material adverse impact on our ability to implement our business plan, achieve our financial projections or achieve profitability.
Although we believe that our business goals are achievable, there can be no assurance that our business model will be an accurate representation of future events or that the business goals will be achieved. If such goals are not achieved, we may suffer severe financial hardship.
The Company’s summary financial projections have been developed by Management based on assumptions, estimates and judgments regarding future events. They represent our expectations of future Company performance based on such assumptions, estimates and judgments; however, actual future Company performance may be significantly different and will depend on future conditions and events which cannot be reliably forecast. Accordingly, these projections should be considered solely illustrative and should not be relied upon for the purpose of making investment decisions.
The Company was formed in 2012 and has never been profitable. Our operating history may not provide a meaningful basis on which to evaluate our business. There can be no assurance that we will reach or maintain profitability or generate sufficient funds from operations to meet our cash commitments. We anticipate that our operating expenses will increase as we grow. However, any significant failure to realize anticipated revenue growth could result in significant operating losses. We will continue to encounter risks and difficulties frequently experienced by companies at a similar stage of development, including our potential failure to:
The Company's development and sales have been delayed and adversely impacted by the worldwide Corona-19 epidemic. We are unable to provide any assurances or estimates regarding the affect that the continuation or exacerbation of the pandemic will have on our business.
Although the Company believes that our business goals are achievable, there can be no assurance that our business model will be an accurate representation of future events or that the business goals will be achieved. If such goals are not achieved, we may suffer severe financial hardship.
The securities the Company is offering are highly speculative and involve a high degree of risk. There can be no guarantee that you will realize a substantial return on your investment, or any return at all, or that you will not lose your entire investment. For this reason, you should read all information provided carefully and should consult with you own legal counsel, accountant(s) or business advisor(s) prior to making any investment decision.
We believe that if we are successful in raising at least $1,070,000 from this offering, the net proceeds will be sufficient to meet our current working capital needs for at least the next 12 months, and that thereafter we will have sufficient revenue from our operations to fund our working capital needs. However, there can be no assurance that we will be able to raise the full $1,070,000, or that our operations will produce sufficient revenues to fund our working capital needs. Furthermore, there can be no assurance that we will not need additional capital to carry out our business plan and fund our operations or that such additional capital will be available to us, or be available on terms as beneficial as the terms of this offering. Such additional capital may result in dilution to our members. Our failure to secure adequate funding necessary to implement our business plan could have a material adverse effect on the Company.
The offering price for the Units the Company is offering was arbitrarily determined and bears no relationship to the Company’s assets, book value, earnings or other established criteria of value. In determining the offering price such factors as our operating results to date, limited financial resources, the nature of our assets, estimates of our business potential, estimates of the value of our patents, the amount of equity and management control desired to be retained by our founders and the general condition of the market in which we intend to operate were considered.
The Company plans to expand distribution through premium retail stores and on-line sales, with a goal of establishing nationwide distribution. There can be no assurance that we will be successful in our efforts to expand distribution through these channels or that any retail stores will provide sufficient business, sales and distribution support to us in the appropriate market for our products.
Our business plan also includes the expansion of sales of our products into international markets, primarily through distributors. There can be no assurance that we will be able to obtain required regulatory approvals for the sale of our products in international markets, that we will be able to contract with international distributors on favorable terms, or that our products will obtain acceptance in the international markets.
The Company, as a distributor of sun protection products, may be exposed to significant product liability claims by consumers, insurance carriers and other third parties. We believe that our liability insurance coverage is sufficient to protect our business against these risks. However, there can be no assurance that such insurance will be sufficient to cover all possible liabilities. In the event a successful suit is brought against the Company, insufficiency of insurance coverage could have a material adverse effect on us. Moreover, any adverse publicity arising from claims made against us, even if such claims are not successful, could adversely affect the reputation and sales of our products. Furthermore no assurance can be given that we will continue to be able to obtain adequate insurance coverage on terms that are at least as favorable as those currently available to us.
The Company's management will have broad discretion in the application of the net proceeds of this offering.
The Company's Limited Liability Company Agreement provides for indemnification of the Managers and officers to the fullest extent permitted by the laws of the State of Delaware. In addition, under the Limited Liability Company Agreement, no Manager will be personally liable to the Company or its members for monetary damages for breach of fiduciary duty as a Manager other than for liability resulting from (i) any breach of the Manager’s duty of loyalty to the Company or its members; (ii) acts or omissions not taken in good faith or which involve intentional misconduct or a knowing violation of law; or (iii) any transaction from which a manager derives an improper personal benefit. As a result of such provisions in the Limited Liability Company Agreement, Members may be unable to recover damages against the Managers and officers of the Company for actions taken by them which constitute negligence, gross negligence or a violation of their fiduciary duties, which may reduce the likelihood of members instituting derivative litigation against the Managers and officers and may discourage or deter members from suing the Managers, officers, employees or agents of the Company for breaches of their duty of care, even though such an action, if successful, might otherwise benefit the Company or its Members.
This document contains various forward-looking statements that are based on the Company’s beliefs, as well as assumptions made by and information currently available to us. When used in this Memorandum, the words “believe”, “anticipate”, “expect”, “intend” and similar expressions are intended to identify forward-looking statements. The accuracy of forward-looking statements is subject to certain risks, uncertainties and assumptions, including those identified under “RISK FACTORS”. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you not to place undue reliance on any such forward-looking statements.
Purchasers of the Units the Company is offering must be aware of the potential long-term nature of their investment and be able to bear the economic risks of their investment for an indefinite period of time. The Units are being offered for investment purposes only and not with a view to resale. No trading market currently exists for any securities of the Company, and there can be no assurance that such market will develop after an investment in the Company. The Units offered hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state. The Units are being offered and sold pursuant to exemptions from applicable federal and state registration requirements, allowing for transactions which do not involve a “public offering”. We have no obligation to register the Units in the future. Any subsequent sales of the Units by investors may only be permissible if an exemption from the applicable federal and state registration provisions is available at the time of the proposed sale. We cannot guarantee that such an exemption will be available. We are not presently subject to the periodic reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934 and may or may not choose to make available to the public, in the foreseeable future, information with respect to our affairs sufficient to permit the use of Rule 144 under the Securities Act as a means of disposing of an investment in the Company. Consequently, you may not be able to liquidate your investment in the event of any emergency.
If the proceeds of this offering and/or the revenues generated by the Company from its operations are insufficient to implement our business plans, as they may be modified from time to time, it may be necessary for us to seek additional capital. We may also issue securities in connection with strategic transactions. Furthermore, as part of our business strategy, we may issue options or warrants to purchase membership interests to management, employees, consultants and business partners. Such future issuances may result in significant dilution to investors in this offering. In addition the terms of the securities issued in connection with any of the foregoing may provide for rights and privileges that are superior to those associated with the Units.
We intend to make annual distributions of the profits allocated to Members out of our liquid assets in order to provide Members with the liquidity to pay taxes due on their profit allocation, if any. In addition, our Limited Liability Company Agreement authorizes the payment of guaranteed distributions to Members who perform services for the Company. We are not required to make any other discretionary distributions to Members. In addition, our Limited Liability Company Agreement contains limitations on Members’ abilities to make withdrawals from their capital accounts. Members may not be able to access the cash in their capital accounts for emergencies or otherwise.
Neither the Company, nor anyone on our behalf, has knowingly made any misleading or untrue statements of a material fact, or omitted statements of a material fact necessary to make the statements made not misleading. Notwithstanding the foregoing, this document does not purport to be a complete summary of all material information relevant to an investment decision and should not be relied upon by you without adequate due diligence (including requests for additional information if you feel it necessary in order to make an informed investment decision), and complete reading of all documents provided to you and full understanding of the contents.
Brian M. Hand is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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