|1||Get in on the ground floor of an exciting commercial space co. that has already had 3 successful spaceflights|
|2||Solstar demonstrated the first commercial WiFi hotspot in space and Tweet from space.|
|3||Be able to watch future rocket launches with Solstar WiFi on-board, knowing you helped Solstar achieve its goals|
|4||Be a part of a company that is building a Space Wide Web that helps humanity become a multi-planetary species|
|5||Solstar has a Space Act Agreement with NASA to test internet, voice, and WiFi technologies in space|
|6||Founder has 30+ years of experience in the commercial space and satellite industries, including six years at NASA|
|7||Solstar has proprietary space communications technology|
|8||If the stars align as we intend, Solstar and its investors will prosper greatly together|
We flew our Schmitt Space Communicator SC-1x prototype onboard Blue Origin’s rocket ‘New Shepard’ on April 29th, and again on July 18, 2018. On the rocket's ascent, a Tweet sent via the onboard Solstar WiFi equipment connected to our satellites and became the first commercial Tweet posted from space.
Both times we were able to demonstrate our WiFi hot spot service inside the crew capsule that can be used by WiFi-enabled payloads and payload specialists. We made history, and our Schmitt Space Communicator has been accessioned into the Smithsonian’s National Air and Space Museum’s collection.
Private researchers and companies on earth can’t communicate with space
assets in a modern, convenient manner (like with their smartphones, tablets
Solstar’s high-speed, reliable, and easy-to-use space communications platform leverages the latest commercial satellite networks. The company's routers, WiFi hotspots, and satellite space communicators deliver internet to your desktop with 24/7 customer care.
The only place in space with Internet is on the International Space Station and can only
be used by a few people using government-owned satellites (TDRSS). NASA is retiring its own satellites and wants to purchase commercial satellite communications services. Solstar is in the prime position to provide these services to NASA.
There's a reason why none of the new commercial space companies have developed their own onboard WiFi yet - the technology is really complex. It's not just the functionality of the equipment, but also the calibrations necessary to connect a rapidly-moving rocket to satellites.
No company has the billion-dollar infrastructure of NASA that allows them to easily communicate with Earth. But this technology is massively important for the future of commercial space travel. It will make experiments, planning, and basic travel infinitely easier. As space travel becomes more popular, this communication will be vital to safe, widespread interstellar trips.
This is where our founder, Brian Barnett, comes in. As a 30-year veteran of the commercial space industry who started his career at NASA, he's one of the few people on the planet qualified to lead the charge on this ambitious technology. This photo is of Brian on the Space Shuttle in 1991.
Because there are only a few commercial space companies in the U.S., this experience is crucial to our success. Brian has built the relationships necessary to get in the door with these companies -- plus the technical expertise to deliver on those relationships.
We at Solstar are very enthused to offer this opportunity to raise further investment on Wefunder. We had a successful raise in 2018-2019, and we have made tremendous progress because of your investment. With your generous support, in 2019 we achieved many of the goals we set out to accomplish. We filled in our management team, we continued to grow our business relationships with NASA, suppliers, and commercial space customers, we had a very extensive social media and marketing campaign, and we extended our market presence internationally. Recently, we have had an overwhelming number of requests from people like you who share our vision, and want to be a part of our journey to build a Space Wide Web. So, we have decided to pursue another raise.
We are at an inflection point in the history of commercial space industry. Billions of dollars or private investment are flowing into the commercial space industry because of the vast opportunities to develop space resources. To do this, communications is key. That is why Solstar is leading the effort to provide commercial space communications, and there is no other company with the experience, know-how, and international network to make this happen.
I, like many of you, have dreamed of being an astronaut since I was a boy watching the Apollo moon landings on black and white TV with my Mom and Dad. Well, I have done my best to follow my dream. I began trying to get a job at NASA starting in college. This was during the space shuttle days in the 1980s, and I wanted to be a commercial astronaut at NASA when this idea was just happening. During spring break my senior year, I went to see Deke Slayton, one of the original Mercury astronauts (The Right Stuff) who had his own rocket company at that time. His small company was not needing people, but he was so gracious and made some calls to his comrades at NASA Houston that day. No jobs to be had in Houston that trip.
Then I moved to Huntsville, Alabama not knowing anyone, but with a graduate scholarship in hand and the will to find a NASA job. I was really feeling discouraged-- I needed to somehow get on base to interview at NASA but knew nobody there. So, one day, I called Deke Slayton back in Houston from a payphone in the university library. I asked him if he had any friends at NASA Marshall Space Flight Center (MFSC) that I could call to at least get on base and start a dialogue. He gave me a couple of managers' names, so I got on the phone and called them and was able to score some interviews. Five months later, I received that most beautiful call from Jim Downey at the Payload Projects Office welcoming me aboard at NASA. That was one of the best days of my life! I am forever grateful to Deke Slayton and Jim Downey! Rest in peace, both of you.
My first day at NASA was January 5, 1987, and I will always remember that day. I finally was given my big break.
Solstar Space Company represents a culmination of my 30-year career at NASA, the mobile satellite services industry, and in the commercial space industry. Because of that experience, I think I’m the most qualified person on the planet to make the Solstar vision happen.
In November last year, Solstar Space Company's Schmitt Space Communicator was accessioned into the Smithsonian's National Air and Space Museum's collection. Dr. Martin Collins, curator of the museum's civilian application satellites collection, presented us with the official deed of gift accepting the donation in Washington, D.C. I'm proud of our accomplishments so far, but know we have a long way to go and with your help, we can make this happen.
Thank you for taking the time to
evaluate the Solstar investment opportunity and for having the confidence in me and our team. I can assure you that if you invest, this will be an exciting ride as we help create commercial communications for the commercial space industry of the future together.
Very Truly Yours,
M. Brian Barnett
President and CEO
We have proven our technology on three successful spaceflights. With a successful Wefunder raise, we'll dedicate most of the investment dollars to the product development of our software app, small satellite space communicators, flight communicators, and routers for space agencies and commercial space stations and spacecraft. We'll also be able to increase our sales and marketing efforts, allowing us to open more accounts with more commercial space companies.
Solstar wouldn't have been possible even 10 years ago. But with the rise of private commercial space companies like Blue Origin, Space X, and Virgin Galactic, there's a new need for specialized services within space travel. As a service company, our revenue model will be either wholesale contracts or charging by usage, similar to the WiFi services provided on airplanes. This way, we'll be able to work with multiple contracts and bring in consistent recurring revenue.
Solstar Space Company has financial statements ending December 31 2019. Our cash in hand is $10,509.33, as of May 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,000/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.
Solstar Space Company is pioneering the technology to create a 'space wide web'. We enable 24/7 secure, economical, convenient, two-way, internet-based communications with every “thing” in space that incorporates our satellite transceivers. Solstar’s two-way data communications also enable earth-based customers 24/7 direct access to experiments, SmallSats, machines, and colleagues located in space, via their smartphones, or any other internet-connected device.
Solstar aims to be the ISP of choice in Earth Orbit and beyond. Our purpose is to make communication, experiments, and travel easier. We aim to prove our effectiveness to multiple commercial space companies to build Solstar into an internationally recognized brand that will be an attractive acquisition for the rapidly-growing private space race.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future if any.
Solstar Space Company was incorporated in the State of Delaware in March 2017. Any patents will be held by the company.
Since then, we have achieved the following:
Historical Results of Operations
Our company was organized in March 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 $10,000 in debt, $6,000 in equity, and $120,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 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
Solstar Space Company cash in hand is $10,509.33, as of May 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,000/month, for an average burn rate of $20,000 per month. Our intent is to be profitable in 12 months.
No material changes or trends in our finances or operations have occurred since December 31, 2019
Over the next 3-6 months our revenues and expenses are expected (but not guaranteed) to rise as we win government and commercial contracts and government grants. We hope to begin generating revenue by 2021, and believe we need a minimum of $100k - $200k to reach that point.
During the calendar year 2020, we are planning to raise additional capital from outside investors. The founder can also continue to contribute capital to the business to fund short-term operations.
The commercial spaceflight industry is in its early stages. A spacecraft accident resulting in the death of a paying commercial customer too early after commercial flights have begun could have negative impact on Solstar's ability to sell its services. The federal government may stop commercial flights while the accident is investigated.
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.
Not all proposals to NASA and the DoD will convert into contracts. The company has already made proposals that have been and have not been converted into contracts.
Changes in political climate can have impacts on the space industry and funding. These factors may be outside of the company's control but affect it's operations. As up to 60% of Solstars early revenues will come from budget contracts, government budgets may have a large affect on their business.
The company's success depends on the efforts of a small management team, namely the founder. The loss of services of him may have an adverse effect on the company. There can be no assurance that the company will be successful in attracting and retaining other personnel they require to successfully grow our business.
The company relies heavily on their technology and intellectual property, but may be unable to adequately or cost-effectively protect or enforce their intellectual property rights, thereby weakening their competitive position and increasing operating costs.
The Company may face competition with respect to our key products that we seek to develop or commercialize in the future. These competitors may also in the future compete with us in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, our competitors may commercialize products more rapidly or effectively than we are able to, which would adversely affect our competitive position, the likelihood that our products will achieve initial market acceptance and our ability to generate meaningful additional revenues from our products.
The Company’s business model is dependent on relationships with other companies and organizations without the space industry. Should those relationships be damaged or removed entirely, the company could have difficulty generating revenue and ultimately operating.
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.
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