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Invest in Trace

First farm-to-body tampon with hemp fiber - leading innovation for period care

FIRST GOAL HIT (You can still invest)

$292,940

raised from 118 investors
INVESTMENT TERMS
$7M valuation cap Future Equity
$100, $500, $1K, $10K
LEAD INVESTOR
I met the founders of Trace Femcare over a year ago and their mission and vision are something that I felt strongly about. They are offering a solution to the feminine hygiene market that provides environmental stewardship for the person and the planet. The team continually has demonstrated to me they understands what it will take to create a successful enterprise. Through my own work regarding industrial hemp uses, Trace Femcare is one of the companies farthest along on regarding the commercialization of the use of hemp. They will likely be the key that unlocks the doors for the entire textile space as the quality of material required exceeds other end market requirements. I have been providing financial and strategy advisory work to them. Being able to spend this amount time with the founders has greatly increased my belief that Trace Femcare can become a very successful company both financially and meet all its climate beneficial goals.

Financials

We have financial statements ending December 31, 2021. Our cash in hand is $45,186, as of September 2022. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $32,257/month.

At a Glance

Jan 1 – Dec 31, 2021
$0
Revenue
-$186,112
Net Loss
$0
Short-Term Debt
$200,000
Raised in 2021
$45,186
Cash on Hand
Net Margin:
N/A
Gross Margin:
N/A
Return on Assets:
-861%
Earnings per Share:
-$0.09
Revenue per Employee:
$0
Cash to Assets:
100%
Revenue to Receivables:
~
Debt Ratio:
786%
Trace Femcare Inc. 12-31-2021 FS 2 .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

Trace brings the world’s first hemp fiber and Climate Beneficial (™) cotton tampon because we want better materials for our bodies and the earth.

Trace will grow a full portfolio of period care products made from regenerative fibers like hemp. We will expand into Whole Foods and Target as well as into foreign markets, and we also see manufacturing and fiber distribution services in our future!

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Trace Femcare, Inc. (the “Company”) was formed as a limited liability company on August 14, 2020 in the State of Tennessee. The Company was converted to a C-Corporation on May 18, 2021. 

Since then, we have:

  • The first tampon made with hemp fiber and Climate Beneficial™ cotton
  • Founded and backed by female healthcare professionals
  • Successful commercial production trials complete
  • Patent-pending technology
  • Vertically-integrated, traceable supply chain with fibers grown in the USA
  • Raw materials inventory acquired for production through Q1 2024
  • Partnered with Carhartt, Reformation, Outerknown, etc. in the California Cotton Climate Coalition

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, 2021, the Company had revenues of $0 compared to the year ended December 31, 2020, when the Company had revenues of $0. 
  • Assets. As of December 31, 2021, the Company had total assets of $21,626, including $21,626 in cash. As of December 31, 2020, the Company had $2,434 in total assets, including $2,434 in cash.
  • Net Loss. The Company has had net losses of $186,112 and net losses of $7,566 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
  • Liabilities. The Company's liabilities totaled $170,000 for the fiscal year ended December 31, 2021 and $0 for the fiscal year ended December 31, 2020.

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 $200,000 in convertibles, $120,000 in equity from founding team, and $250,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 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

Trace Femcare, Inc. cash in hand is $45,186.40, as of September 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $32,257.76/month, for an average burn rate of $32,257.76 per month. Our intent is to be profitable in 20 months.

Since the date our financials cover the CEO has deferred her salary to reduce expenses and extend runway while our expenditures on our regulatory requirements have increased as we planned.

We expect (but cannot guarantee) to be generating revenues 5 - 6 months following the raise, and need $550,000 raised to reach that point.  Once we begin selling we expect to generate $50k of revenue per month, and $100k - $150k of expenses.  Our monthly expenses will vary monthly because of supply costs.

We believe we will need an additional $1.5M in financing to get through second quarter of product inventory and marketing plan; additionally, we will need $2-3M in working capital to cover swings in our inventory and raw materials costs, for which we plan to seek as much non-dilutive financing as possible. We forecast profitability in month 14 of actual sales, so May of 2024.  Those projections cannot be guaranteed.  

We have angel and other institutional investors we may approach for additional financing.  

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

Risks

1

Regulatory requirement of 510K premarket notification submission by the FDA as a Class II medical device could be rejected or delayed, preventing sales of our product in its current formulation. If the FDA rejects our application or requires us to go through clinical trials, the launch of our product could be delayed and/or require more capital up front.

2

One of our team members could become incapacitated or die; since we are a small team with unique expertise, these events would disrupt operations and threaten the success of the company. 

3

Supply chain insufficiencies or interruptions or acts of god could delay or destroy raw materials and/or final product production and reduce sales volumes or create stock outs. 


Other Disclosures

The Board of Directors

Director Occupation Joined
Claire Crunk CEO @ Trace Femcare, Inc. 2020
Megan Galaske Brand Director @ Trace Femcare, Inc. 2022
Olaf Isele Strategic Product Development Director @ Trace Femcare, Inc. 2022

Officers

Officer Title Joined
Claire Crunk CEO 2020
Megan Galaske Brand Director 2022
Olaf Isele Strategic Product Development Director 2022

Voting Power

Holder Securities Held Power
Claire Crunk 1,602,857 Common Stock 75.2%

Past Fundraises

Date Security Amount
Current SAFE $34,340
11/2022 SAFE $250,000
6/2022 SAFE $250,000
2/2022 Other $120,000
5/2021 Convertible Note $35,000
5/2021 Convertible Note $165,000

Convertible Notes Outstanding

Issued Amount Valuation Cap
5/12/21
$165,000
$5,000,000
5/12/21
$35,000
$5,000,000

Outstanding Debts

None.

Related Party Transactions

Use of Funds

$50,000 93.5% towards Inventory (production run and raw materials); 6.5% towards Wefunder intermediary fee

$550,000 4% towards Research and Development; 32% towards Inventory; 39% towards General and Administrative (legal, team, rents, software, etc.); 15% towards Regulatory Filings (FDA requirements); 3.5% towards Marketing (design, content, PR, etc.), 6.5% towards Wefunder intermediary fee

Capital Structure

Class of Security Securities (or Amount) Authorized Securities (or Amount) Outstanding
Common Stock 5,000,000 2,131,429

The Funding Portal

Trace is conducting a Regulation Crowdfunding offering via Wefunder Portal LLC. CRD Number: #283503.

Form C Filing on EDGAR

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

Details