Painterland Sisters

Female farmer-owned organic yogurt making a difference

Last Funded February 2024

$1,235,000

raised from 743 investors

Financials

We have financial statements ending May 31, 2023. Our cash in hand is $84,263, as of June 2023. Over the three months prior, revenues averaged $235,424/month, cost of goods sold has averaged $191,761/month, and operational expenses have averaged $189,143/month.

At a Glance

Jan 1 – May 31, 2023
$653,769
+1,088X
Revenue
-$813,863
Net Loss
$357,240
+452%
Short-Term Debt
$1,816,026
Raised in 2023
$84,263
+1,088X
Cash on Hand
Net Margin:
-124%
Gross Margin:
13%
Return on Assets:
-226%
Earnings per Share:
$0
Revenue per Employee:
$130,753.80
Cash to Assets:
34%
Revenue to Receivables:
396%
Debt Ratio:
314%
Painterland Sisters Financials and CPA Review Report 2021 and 2022.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

Female farmer-owned organic yogurt making a difference.


Milestones

Painterland Sisters LLC was incorporated in the State of Pennsylvania in August 2020.

Since then, we have:

  • Fastest-growing yogurt brand in dollars + units in the natural channel. (SPINS, last 12-wk 4/1/23)
  • Within our first year in business (launch: March 2022), we’ve reached $1.3 million in sales
  • Since launching in March 2022, our yogurt is sold in over 45 states, nearing 1,500 locations
  • Our on-shelf velocity increased from 3 units/per store/per week to 5 units in 4 months
  • We reach an average of 1 million users across all platforms
  • Women-owned, Farmer-owned, Sister-owned, Mother-owned
  • We source our organic milk from our regenerative family farm and others like it in the region

Historical Results of Operations

Our company was organized in August 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

  • Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $653,769 compared to the year ended December 31, 2021, when the Company had revenues of $600. Our gross margin was 13.49% in fiscal year 2022, compared to -1854.33% in 2021.
  • Assets. As of December 31, 2022, the Company had total assets of $359,596, including $123,536 in cash. As of December 31, 2021, the Company had $9,900 in total assets, including $9,206 in cash.
  • Net Loss. The Company has had net losses of $813,863 and net losses of $156,532 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
  • Liabilities. The Company's liabilities totaled $1,129,096 for the fiscal year ended December 31, 2022 and $168,825 for the fiscal year ended December 31, 2021.

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 $1,832,019 in debt.

After the conclusion of this Offering, should we hit our maximum funding target, our projected runway is 7 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 7 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

Painterland Sisters LLC cash in hand is $84,263.69, as of June 2023. Over the last three months, revenues have averaged $235,424/month, cost of goods sold has averaged $191,761/month, and operational expenses have averaged $189,143/month, for an average burn rate of $145,480 per month. Our intent is to be profitable in 30 months.

Since the date our financials cover, both our revenue and expenses have accelerated.  We've did $633,987 of revenue in Q1 2023.

In the next 5 months from August-December 2023 we project to have $1,958,052 in revenue and $2,419,250 in expenses.

We are not currently profitable.  We need a total of $2.7 million to reach profitability including this Wefunder Raise. 

There are no other funds available. We are exploring bridge loans from friends and family and purchase order financing. 

While we partner closely with Painterland Farms for sourcing, we currently have no formal agreement in place with them.

All projections in the above narrative are forward-looking and not guaranteed.

Risks

1

There is no market for the Company’s securities, and Investors will likely be unable to sell or transfer Company’s securities and should be prepared to bear the risk of this investment and lack of liquidity of the Company’s securities for an indefinite period.

There is not and will not be a public market for the Company’s securities.  In addition, the Operating Agreement requires compliance with a right of first refusal process before Company’s securities may be sold.  The Company’s securities may not be resold except in compliance with the registration requirements of the Securities Act of 1933, as amended, or an exemption therefrom.  As a result, it may be difficult to dispose of the Company’s securities at all or at an acceptable price, and an Investor should be prepared to bear the risk of this investment for an indefinite period of time.

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

The Company was formed as a public benefit company; as a result, our goal is not entirely to maximize profit or the value of the Company.  

As a public benefit company, the Company has a primary goal of providing employment opportunities in an economically depressed geographic region, as well as, connecting consumers with the direct source of their food by utilizing regenerative agriculture practices to create nutritious, sustainable products for consumers nationwide. In addition, the Company's goal is to be profitable in order to grow and increase our value. As a result, the Managers may make decisions to advance its stated goals, but which do not maximize, or are even inconsistent with, making a profit or increasing the value of the Company for Investors.


Other Disclosures

The Board of Directors

Director Occupation Joined
Stephanie Painter Co-CEO Painterland Sisters @ Painterland Sisters 2020
Hayley Painter Co-CEO Painterland Sisters @ Painterland Sisters 2020

Officers

Officer Title Joined
Stephanie Painter CO-CEO 2020
Hayley Painter CO-CEO 2020
Jim Hyland Fractional COO 2022

Voting Power

Holder Securities Held Power
Stephanie Painter Membership Interests 50.0%
Hayley Painter Membership Interests 50.0%

Past Fundraises

Date Security Amount
SAFE $17,000
5/2023 Loan $300,000
4/2023 Loan $450,026
2/2023 Loan $66,000
1/2023 Loan $1,000,000
12/2021 Loan $5,993
9/2020 Loan $10,000

Outstanding Debts

Issued Lender Outstanding
12/6/21 Maria Painter
$3,492
1/28/23 First Citizens Community Bank
$994,676
2/15/23 Painterland Farms
$66,000
4/17/23 Lynda Painter
$450,026
5/7/23 First Citizens Community Bank
$300,000

Related Party Transactions

Use of Funds

$150,000 67.5% (inventory purchase, co-packing), 5% staff, 20% trade spend, 7.5% Wefunder intermediary fee 

$1,235,000 We are using these funds to support a national brand rollout. We envision using the funds in the following manner but it may vary as we grow: 27.5% towards (inventory purchase, co-packing), 15% towards marketing (social media advertising), 7.5% towards staff, 7.5% towards Wefunder fees, 15% towards trade spend, 20% towards paying down short term debt, 7.5% Wefunder intermediary fee. We envision prioritizing our uses of funds in a manner that most efficiently propels our growth.

Form C Filing on EDGAR

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

Details