|1||Company revenue growing at 400% per year and accelerating.|
|2||Restaurant's app-generated revenue growing at 20% monthly on average.|
|3||26,000 students already downloaded app in the eight Universities where app is available.|
|4||Experienced management team with deep expertise in consumer, retail and mobile industries.|
|5||Monthly Active Users percentage on par with well known social apps.|
|6||Greater than 4.5 out of 5 stars rating across iOS and Android with hundreds of positive reviews.|
We as founders (Saj, Ash) remember our time at University primarily via the restaurants we visited with our friends. At school reunions, years later, the same friends always meet at the same restaurants we used to go to together. This spurred us to create the OodlesDeals mobile app, with a mission for our company of enabling people to establish and strengthen personal relationships throughout their lives.
On average, this is growing 20% month-over-month.
Students love us because they save money on great food. What's even better, when they go to restaurants with their friends, they save even more and have a great time.
College students are busy. Still, they want to spend time with friends and create memories that last a lifetime. Going out to eat with friends is the #1 aspirational activity. Students already eat out 1-2x times per week on average.
With this said, money is always tight— as evidenced by the trillions dollar student debt crisis confronting millennials in the US.
So, we made Oodles to solve both problems — we incentivize students to invite their friends to go together to the restaurants they love around campus, and when they do go together, they get the best value.
We charge a monthly marketing services fee, and per transaction charge for deals redeemed in the restaurant. We also charge for events we execute on our vendor's behalf.
Once critical mass of users on a campus is established, $45,000 revenue on average at each University is achievable, and with 4,400 universities, our total addressable market is about $200 MM.
Phase I - University of Oregon 1st University [Completed since 1st Wefunder Raise]
Established minimum viable proposition of app. Determined student acquisition methodologies. Signed first paying customer.
Phase II - Revenue Generation [Completed since 2nd Wefunder Raise]
Released v2 of app, simplified transaction process. Established new University launch six-week process.
Phase III - Revenue Acceleration [Completed since Seed round Raise]
Released v3 of app, expecting significant growth in engagement via app. Revenue growth >400% Y-O-Y and accelerating.
Scale nationwide. Grow from University students to other consumer target groups. Extend revenue from vendor focused to consumer advertising focused. Extend app usage from Restaurants to all Social Retail activities (movies, put-put golf, etc). Grow Internationally.
Oodles Corporation has financial statements ending December 31 2019. Our cash in hand is $187,683, as of December 2019. Over the three months prior, revenues averaged $5,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $36,000/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 promote enticing offers from food, drink and entertainment vendors in college towns. Our patent-pending process (patent to be owned by Oodles Corporation) incentivizes students to go to these retail outlets together, and the more they share and do together, the more value they get. Because everything on our app is geared toward helping consumers spend more time together, we've created a win-win scenario for both our vendor partners and users.
After opening our first account at the University of Oregon in April 2017, we've now grown to eight total college campuses. We have a rapidly growing user base (currently more than 25,000 students) and bring real value to our vendor partners, so our goal is to grow nationwide. There are around 4,400 college campuses around the United States and we want to establish a vendor & user base in every one.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
OODLES CORPORATION was incorporated in the State of California in February 2017.
Since then, we have achieved the following:
Historical Results of Operations
Our company was organized in February 2017 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $217,689 in SAFEs and $429,500 equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 8 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. If the minimum WeFunder threshold is achieved, we plan to raise capital within 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
OODLES CORPORATION cash in hand is $187,683, as of December 2019. Over the last three months, revenues have averaged $5,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $36,000/month, for an average burn rate of $31,000 per month. Our intent is to be profitable in 24 months.
We started receiving revenue from our vendor-partners in November 2017. As the number of vendors-partners at each University grows, and the number of students transacting via our app grows, this revenue will correspondingly increase. Expenses should average $30,000/month thru the end of this school year, i.e. May 2019. Over the summer time, both revenue and expense will decrease as students will no longer be in school. Please note that currently none of the employees of the company are currently taking salary, the expectation is that a minimum salary will be taken by each employee once this next round of funding is achieved. In addition to the funds raised from this Offering, we can rely on revenues generated for additional capital.
Intellectual property — It can take years for the USPTO to approve a patent, and we cannot accurately predict the outcome. During this time, the USPTO might revert with further questions regarding enforceability, permissibility or other concerns. The patent submission builds from the original provisional patent and a full patent search of other companies. We developed a very unique and specific submission building from this data, and the USPTO might also have further questions or concerns regarding our approach and suggest alternative paths, if any.
User growth — Student Ambassadors are full-time students. Competing priorities from school might hinder their ability to deliver the per hour new user growth we expect. Viral growth also is important for long-term acquisition cost to go down. Students might have a conservative usage of deal oriented promotions, which may have an impact on the number of students exposed to the app via sharing from their friends.
User engagement — Student users might not use all tiers of the process. This might have an impact on the planned ARPU. Students also might not utilize deals at the frequency we expect, further impacting ARPU. Lastly, being notified of deals via notifications and emails at the frequency being planned might dissuade students from using the app, vs exciting them of the value being provided.
Vendor relationships — New user growth and/or engagement might not suffice to keep vendors interested in the app. Also, the vendors might not react favorably to the revenue approach we’ve planned. The types of deals they want to put on the app, because of expected financial margins, might compete with student desires of more attractive options.
Product design — The user interface especially as relates to sharing might be difficult for students to engage with. The app might not provide enough incentive for students to open and use on a repeated basis. Relying on text as a medium to share might be too limiting, given that students utilize multiple other social networks to communicate with their peers.
Finances — Revenue growth might take longer than planned, further affecting the ability of the company to invest in accelerating growth. Lastly, unplanned expenses, such as the need to further enhance product features might further reduce the capacity of the company to invest in growth.
At a future date we will have to amend the Certificate of Incorporation for the authorization and creation of Preferred Stock, beyond the Seed Preferred Stock already created, for the Series A and subsequent investment rounds. Investors, investing in a SAFE agreement must be aware of this.
The majority of the Common Stock is held by Company insiders, as such they have the majority voting rights and will determine the direction of the company.
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 Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
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