# EDGAR Filing Document

**Accession Number:** 0001865085
**File Stem:** 0001669191-23-000228
**Filing Date:** 2023-3
**Character Count:** 158540
**Document Hash:** 4c5e689bfbeb6c70009a6b7d7645ea6b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001669191-23-000228.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0001669191-23-000228

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 9

**FILED AS OF DATE**: 20230306

**DATE AS OF CHANGE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Adaptive Holdings, LLC
- **CENTRAL INDEX KEY:** 0001865085
- **IRS NUMBER:** 862470102
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31591
- **FILM NUMBER:** 23709841

**BUSINESS ADDRESS:**
- **STREET 1:** 4581 WESTON ROAD, SUITE 191
- **CITY:** WESTON
- **STATE:** FL
- **ZIP:** 33331
- **BUSINESS PHONE:** 9542588311

**MAIL ADDRESS:**
- **STREET 1:** 4581 WESTON ROAD
- **STREET 2:** SUITE 191
- **CITY:** WESTON
- **STATE:** FL
- **ZIP:** 33331

## Ex-99

html![](offeringpage.jpg)

### Attached PDF Documents

**Attachment 1:** `offeringstatement.pdf`

# Offering Statement for Adaptive Holdings, LLC## (“Protein Quick,” “we,” “our,” or the “Company”)

This document is generated by a website that is operated by Netcapital Systems LLC (“Netcapital”), which is not a registered broker-dealer. Netcapital does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included in this document are the responsibility of, the applicable issuer of such securities. Netcapital has not taken any steps to verify the adequacy, accuracy or completeness of any information. Neither Netcapital nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information in this document or the use of information in this document.

All Regulation CF offerings are conducted through Netcapital Funding Portal Inc. (“Portal”), an affiliate of Netcapital, and a FINRA/SEC registered funding-portal. For inquiries related to Regulation CF securities activity, contact Netcapital Funding Portal Inc.:

**Paul Riss:**

paul@netcapital.com

Netcapital and Portal do not make investment recommendations and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Equity crowdfunding investments in private placements, Regulation A, D and CF offerings, and start-up investments in particular are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investments through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Additionally, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for start-up investing, start-ups should only be part of your overall investment portfolio. Further, the start-up portion of your portfolio may include a balanced portfolio of different start-ups. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

## The Company

**1. What is the name of the issuer?**

Adaptive Holdings, LLC

4581 Weston Road
Suite 191
Weston, FL 33331

## Eligibility

**2. The following are true for Adaptive Holdings, LLC:**

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding. (For more information about these disqualifications, see Question 30 of this Question and Answer format).
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

**3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding?**

No.

## Directors, Officers and Promoters of the Company

**4. The following individuals (or entities) represent the company as a director, officer or promoter of the offering:**

*Name*

Kevin Harrington

*Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates*

| Start Date | End Date | Company | Position / Title |
| --- | --- | --- | --- |

| 02/25/2021 | Present | Adaptive Holdings, LLC | Partner |
| --- | --- | --- | --- |

| 01/01/2018 | Present | Harrington Enterprises | President |
| --- | --- | --- | --- |

Short bio: An original “Shark” on the hit TV show Shark Tank, the creator of the infomercial, pioneer of the As Seen on TV brand, and co-founding board member of the Entrepreneur’s Organization-Kevin

Harrington has pushed past all the questions and excuses to repeatedly enjoy 100X success. His legendary work behind-the-scenes of business ventures has produced well over $5 billion in global sales, the launch of more than 500 products, and the making of dozens of millionaires. Twenty of his companies have each topped $100 million in revenue. For the past 3 years, Kevin has assisted in the development of Protein Quick and served as Owner of Harrington Enterprises.

# **Name**

Gerry David

# ***Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates***

| Start Date | End Date | Company | Position / Title |
| --- | --- | --- | --- |
| 03/17/2021 | Present | Adaptive Holdings, LLC | Partner |
| 01/01/2018 | Present | Gerry David & Associates, LLC | President |

Short bio: Gerry is the former CEO of Celsius Holdings, Inc. (NASDAQ: CELH) a leading fitness drink company. During his tenure, Gerry took Celsius from the 'pink sheets' to NASDAQ by increasing revenues 350% and the share price by 1,800%. He expanded sales internationally in Singapore, Hong Kong, Brazil, Finland, and the Middle East and manufacturing in Germany, China, and the United States. Gerry has management experience in public and private companies ranging from startup to turnaround to growth. He has launched companies and products spanning 70+ countries. For the past 3 years, Gerry has served as President of Gerry David & Associates, LLC

# **Name**

Scott Kauffman

# ***Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates***

## Principal Security Holders

5. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power. To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being 'beneficially owned.' You should include an explanation of these circumstances in a footnote to the 'Number of and Class of Securities Now Held.' To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

### Scott Kauffman via Potter Road Consulting, Inc.

| Securities: | 4,215,000 |
| --- | --- |
| Class: | Class A units |

Voting Power: 49.3%

## **Kevin Harrington via KBHS, LLC**

Securities: 4,215,000  
Class: Class A units  
Voting Power: 49.3%

# Business and Anticipated Business Plan

### **6. Describe in detail the business of the issuer and the anticipated business plan of the issuer.**

Protein Quick provides up to 20 grams of protein in 2 ounces of liquid with zero fat, zero sugar, zero caffeine and zero carbs. It's ready to drink - requiring no mixing or refrigeration. Protein Quick is a proprietary triple blend of collagen, pea and whey proteins. We have partnered with Kevin Harrington - an original Shark on ABC's 'Shark Tank' which gives us access to his extensive distribution network. Protein Quick can be reduced to 10 grams and sold in dollar stores - increased to 15 or 20 grams for direct-to-consumer and retail offerings - new flavors can be added to provide an exclusive to HSN/QVC. Stevia and monk fruit can also be used which opens distribution possibilities for Whole Foods and similar outlets. We plan to market Protein Quick to medical patient groups such as Chron's, colitis, chemotherapy, bariatrics - any group that needs protein but can't tolerate large quantities of liquid. Since Protein Quick is ready to drink and requires no mixing or refrigeration, it will also be marketed for disaster relief, humanitarian, and military uses. We believe Protein Quick has access to the influencers and micro-influencers necessary to gain traction on social media. We plan to aggressively market Protein Quick as a great solution to a common problem - how to get protein without consuming products loaded in fat, sugar, carbs, and caffeine - or consuming hundreds of calories and large quantities of liquid. Protein is also one of the dominant messages in nutrition today as evidenced by the highlighting of protein content on consumer packaging. We intend to monetize that awareness with a product that is widely available, convenient, and a 'better mousetrap' than what is currently available.

Protein Quick currently has 2 employees.

## Risk Factors

*A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.*

*In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.*

*The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.*

*These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.*

7. Material factors that make an investment in Adaptive Holdings, LLC speculative or risky:

1. Risks from Pandemics. We face risks related to health epidemics and other outbreaks, which could significantly disrupt the Company's operations and could have a material adverse impact on us. The outbreak of pandemics and epidemics could materially and adversely affect the Company's business, financial condition, and results of operations. If a pandemic occurs in areas in which we have material operations or sales, the Company's business activities originating from affected areas, including sales, materials, and supply chain related activities, could be adversely affected. Disruptive activities could include the temporary closure of facilities used in the Company's supply chain processes, restrictions on the export or shipment of products necessary to run the Company's business, business closures in impacted areas, and restrictions on the Company's employees' or consultants' ability to travel and to meet with customers, vendors or other business relationships. The extent to which a pandemic or other health outbreak impacts the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of a virus and the actions to contain it or treat its impact, among others. Pandemics can also result in social, economic, and labor instability which may adversely impact the Company's business. If the Company's employees or employees of any of the Company's vendors, suppliers or customers become ill or are quarantined and in either or both events are therefore unable to work, the Company's operations could be subject to disruption. The extent to which a pandemic affects the Company's results will depend on future developments that are highly uncertain and cannot be predicted.
2. The failure to attract and retain key employees could hurt our business. Our success also depends upon our ability to attract and retain numerous highly qualified employees. Our failure to attract and retain skilled management and employees may prevent or delay us from pursuing certain opportunities. If we fail to successfully fill many management roles, fail to fully integrate new members of our management team, lose the services of key personnel, or fail to attract additional qualified personnel, it will be significantly more difficult for us to achieve our growth strategies and success.
3. We are highly dependent on the services of our founder. Our future business and results of operations depend in significant part upon the continued contributions of our CEO and founder. If we lose those services or if he fails to perform in his current position, or if we are not able to attract and retain skilled employees in addition to our CEO and the current team, this could adversely affect the development of our business plan and harm our business. In addition, the loss of any other member of the board of directors or executive officers could harm the Company's business, financial condition, cash flow and results of operations.
4. Start-up investing is risky. Investing in early-stage companies is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company.
5. Your units are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these units and the company does not have any plans to list these units on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
6. You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events - through continuing disclosure that you can use to evaluate the status of your investment.

1. 7. Our future growth depends on our ability to develop and retain customers. Our future growth depends to a large extent on our ability to effectively anticipate and adapt to customer requirements and offer services that meet customer demands. If we are unable to attract customers and/or retain customers, our business, results of operations and financial condition may be materially adversely affected.
2. 8. We have broad discretion over the use of proceeds. The Company's management will have broad discretion with respect to the application of net proceeds received by the Company from the sale of securities and may spend such proceeds in ways that do not improve the Company's results of operations or enhance the value of the Company's other issued and outstanding securities from time to time. Any failure by management to apply these funds effectively could result in financial losses that could have a material adverse effect on the Company's business or cause the price of the Company's issued and outstanding securities to decline.
3. 9. The Company may never receive a future equity financing or undergo a liquidity event such as a sale of the Company or an initial public offering, and you may not be able to sell any shares that you purchase in this offering. The Company may never receive a future equity financing, or undergo a liquidity event such as a sale of the Company or an initial public offering (IPO). If a liquidity event does not occur, such as a sale of the Company or an IPO, the purchasers could be left holding Company securities in perpetuity. The Company's securities have numerous transfer restrictions and will likely be highly illiquid, with potentially no secondary market on which to sell them. The securities have only a minority of voting rights and do not provide the ability to direct the Company or its actions.
4. 10. Future fundraising may affect the rights of investors. In order to expand, the Company is raising funds, and may raise additional funds in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the Company.
5. 11. Our ability to succeed depends on how successful we will be in our fundraising efforts. We rely on investment funds in order to use resources to build the necessary tech and business infrastructure to be successful in the long-term. In the event of competitors being better capitalized than we are, that would give them a significant advantage in marketing and operations.
6. 12. We are dependent on general economic conditions. Potential customers may be less willing to invest in innovation and forward-looking improvements if they are facing an economic downturn. This may temporarily reduce our market size. Furthermore, a global crisis might make it harder to diversify.
7. 13. We may be unable to generate significant revenues and may never become profitable. We generated no revenue for the years ended December 31, 2021 and do not currently have any material recurring sources of revenues, making it difficult to predict when we will be profitable. We expect to incur additional research and development costs for the foreseeable future. We may not be able to successfully market our products and services in the future that will generate significant revenues. In addition, any revenues that we may generate may be insufficient for us to become profitable.
8. 14. Investor Risks - Early Bird Discount: Investors who participate in the Offering on or before February 7, 2023, will receive an early bird discount and be able to invest at a purchase price of \$1.06 per share, which equates to a \$10.06 million pre money valuation; and investors who participate in the Offering after February 7, 2023, will invest at a purchase price of \$1.27 per share, which equates to \$12.05 million pre money valuation.
9. 15. *The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.*

You should not rely on the fact that our Form C, and if applicable Form D is accessible through the U.S. Securities and Exchange Commission's EDGAR filing system as an approval, endorsement or guarantee of compliance as it relates to this Offering.

16. *Neither the Offering nor the Securities have been registered under federal or state securities laws, leading to an absence of certain regulation applicable to the Company.*

The securities being offered have not been registered under the Securities Act of 1933 (the 'Securities Act'), in reliance on exemptive provisions of the Securities Act. Similar reliance has been placed on apparently available exemptions from securities registration or qualification requirements under applicable state securities laws. No assurance can be given that any offering currently qualifies or will continue to qualify under one or more of such exemptive provisions due to, among other things, the adequacy of disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change of any securities law or regulation that has retroactive effect. If, and to the extent that, claims or suits for rescission are brought and successfully concluded for failure to register any offering or other offerings or for acts or omissions constituting offenses under the Securities Act, the Securities Exchange Act of 1934, or applicable state securities laws, the Company could be materially adversely affected, jeopardizing the Company's ability to operate successfully. Furthermore, the human and capital resources of the Company could be adversely affected by the need to defend actions under these laws, even if the Company is ultimately successful in its defense.

17. *The Company has the right to extend the Offering Deadline, conduct multiple closings, or end the Offering early.*

The Company may extend the Offering Deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the Minimum Amount even after the Offering Deadline stated herein is reached. While you have the right to cancel your investment up to 48 hours before an Offering Deadline, if you choose to not cancel your investment, your investment will not be accruing interest during this time and will simply be held until such time as the new Offering Deadline is reached without the Company receiving the Minimum Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Minimum Amount, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you. If the Company reaches the target offering amount prior to the Offering Deadline, they may conduct the first of multiple closings of the Offering prior to the Offering Deadline, provided that the Company gives notice to the investors of the closing at least five business days prior to the closing (absent a material change that would require an extension of the Offering and reconfirmation of the investment commitment). Thereafter, the Company may conduct additional closings until the Offering Deadline. The Company may also end the Offering early; if the Offering reaches its target offering amount after 21-calendar days but before the deadline, the Company can end the Offering with 5 business days' notice. This means your failure to participate in the Offering in a timely manner, may prevent you from being able to participate - it also means the Company may limit the amount of capital it can raise during the Offering by ending it early.

18. *The Company's management may have broad discretion in how the Company uses the net proceeds of the Offering.*

Despite that the Company has agreed to a specific use of the proceeds from the Offering, the Company's management will have considerable discretion over the allocation of proceeds from the Offering. You may not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.

19. *The Securities issued by the Company will not be freely tradable until one year from the initial purchase date. Although the Securities may be tradable under federal securities law, state securities regulations may apply, and each Investor should consult with his or her attorney.*

You should be aware of the long-term nature of this investment. There is not now and likely will not be a public market for the Securities. Because the Securities offered in this Offering have not been registered under the Securities Act or under the securities laws of any state or non-United States jurisdiction, the Securities have transfer restrictions and cannot be resold in the United States except pursuant to Rule 501 of Regulation CF. It is not currently contemplated that registration under the

Securities Act or other securities laws will be affected. Limitations on the transfer of the shares of Securities may also adversely affect the price that you might be able to obtain for the shares of Securities in a private sale. Investors should be aware of the long-term nature of their investment in the Company. Investors in this Offering will be required to represent that they are purchasing the Securities for their own account, for investment purposes and not with a view to resale or distribution thereof.

20. *Investors will not be entitled to any inspection or information rights other than those required by Regulation CF.*

Investors will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information - there are numerous methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Investors. This lack of information could put Investors at a disadvantage in general and with respect to other security holders.

21. *The shares of Securities acquired upon the Offering may be significantly diluted as a consequence of subsequent financings.*

Company equity securities will be subject to dilution. Company intends to issue additional equity to future employees and third-party financing sources in amounts that are uncertain at this time, and as a consequence, holders of Securities will be subject to dilution in an unpredictable amount. Such dilution may reduce the purchaser’s economic interests in the Company.

22. The amount of additional financing needed by Company will depend upon several contingencies not foreseen at the time of this Offering. Each such round of financing (whether from the Company or other investors) is typically intended to provide the Company with enough capital to reach the next major corporate milestone. If the funds are not sufficient, Company may have to raise additional capital at a price unfavorable to the existing investors. The availability of capital is at least partially a function of capital market conditions that are beyond the control of the Company. There can be no assurance that the Company will be able to predict accurately the future capital requirements necessary for success or that additional funds will be available from any source. Failure to obtain such financing on favorable terms could dilute or otherwise severely impair the value of the investor’s Company securities.

23. *There is no present public market for these Securities and we have arbitrarily set the price.*

The offering price was not established in a competitive market. We have arbitrarily set the price of the Securities with reference to the general status of the securities market and other relevant factors. The Offering price for the Securities should not be considered an indication of the actual value of the Securities and is not based on our net worth or prior earnings. We cannot assure you that the Securities could be resold by you at the Offering price or at any other price.

24. In addition to the risks listed above, businesses are often subject to risks not foreseen or fully appreciated by the management. It is not possible to foresee all risks that may affect us. Moreover, the Company cannot predict whether the Company will successfully effectuate the Company’s current business plan. Each prospective Investor is encouraged to carefully analyze the risks and merits of an investment in the Securities and should take into consideration when making such analysis, among other, the Risk Factors discussed above.

25. THE SECURITIES OFFERED INVOLVE A HIGH DEGREE OF RISK AND MAY RESULT IN THE LOSS OF YOUR ENTIRE INVESTMENT. ANY PERSON CONSIDERING THE PURCHASE

OF THESE SECURITIES SHOULD BE AWARE OF THESE AND OTHER FACTORS SET FORTH IN THIS OFFERING STATEMENT AND SHOULD CONSULT WITH HIS OR HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN THE SECURITIES. THE SECURITIES SHOULD ONLY BE PURCHASED BY PERSONS WHO CAN AFFORD TO LOSE ALL OF THEIR INVESTMENT.

## The Offering

Adaptive Holdings, LLC (“Company”) is offering securities under Regulation CF, through Netcapital Funding Portal Inc. (“Portal”). Portal is a FINRA/SEC registered funding portal and will receive cash compensation equal to 4.9% of the value of the securities sold through Regulation CF. Investments made under Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.

The Company plans to raise between $10,000 and $375,359 through an offering under Regulation CF. Specifically, if we reach the target offering amount of $10,000, we may conduct the first of multiple or rolling closings of the offering early if we provide notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

In the event The Company fails to reach the offering target of $10,000, any investments made under the offering will be cancelled and the investment funds will be returned to the investor.

### 8. What is the purpose of this offering?

With this raise the Company plans to use the proceeds of the offering to finance the purchase of inventory, focus on customer acquisition, SG&A and preparing product samples.

### 9. How does the issuer intend to use the proceeds of this offering?

| Uses | If Target Offering Amount Sold | If Maximum Amount Sold |
| --- | --- | --- |
| Intermediary Fees | $490 | $18,393 |
| Inventory | $4,510 | $90,000 |
| Customer Acquisition | $5,000 | $191,967 |
| Selling, General and Administrative | $0 | $50,000 |
| Product Samples | $0 | $25,000 |
| Total Use of Proceeds | $10,000 | $375,359 |

### 10. How will the issuer complete the transaction and deliver securities to the investors?

In entering into an agreement on the Netcapital Funding Portal to purchase securities, both investors and Adaptive Holdings, LLC must agree that a transfer agent, which keeps records of our outstanding Class C units (the “Securities”), will issue digital Securities in the investor’s name (a paper certificate will not be printed). Similar to other online investment accounts, the transfer agent will give investors access to a web site to see the number of Securities that they own in our company. These Securities will be issued to investors after the deadline date for investing has passed, as long as the targeted offering amount has been

reached. The transfer agent will record the issuance when we have received the purchase proceeds from the escrow agent who is holding your investment commitment.

#### **11. How can an investor cancel an investment commitment?**

You may cancel an investment commitment for any reason until 48 hours prior to the deadline identified in the offering by logging in to your account with Netcapital, browsing to the Investments screen, and clicking to cancel your investment commitment. Netcapital will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment. If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

#### **12. Can the Company perform multiple closings or rolling closings for the offering?**

If we reach the target offering amount prior to the offering deadline, we may conduct the first of multiple closings of the offering early, if we provide notice about the new offering deadline at least five business days prior (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Thereafter, we may conduct additional closings until the offering deadline. We will issue Securities in connection with each closing. Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

## Ownership and Capital Structure

### The Offering

#### **13. Describe the terms of the securities being offered.**

We are issuing Securities at an offering price of $1.27 per share.

#### **14. Do the securities offered have voting rights?**

The Securities are being issued with voting rights. However, so that the crowdfunding community has the opportunity to act together and cast a vote as a group when a voting matter arises, a record owner will cast your vote for you. Please refer to the record owner agreement that you sign before your purchase is complete.

#### **15. Are there any limitations on any voting or other rights identified above?**

You are giving your voting rights to the record owner, who will vote the Securities on behalf of all investors who purchased Securities on the Netcapital crowdfunding portal.

#### **16. How may the terms of the securities being offered be modified?**

Any provision of the terms of the Securities being offered may be amended, waived or modified by written consent of the majority owner(s) of the Company. We may choose to modify the terms of the Securities before the offering is completed. However, if the terms are modified, and we deem it to be a material change, we need to contact you and you will be given the opportunity to reconfirm your investment. Your

reconfirmation must be completed within five business days of receipt of the notice of a material change, and if you do not reconfirm, your investment will be canceled and your money will be returned to you.

## Restrictions on Transfer of the Securities Offered

The securities being offered may not be transferred by any purchaser of such securities during the one-year period beginning when the securities were issued, unless such securities are transferred:

- to the issuer;
- to an accredited investor;
- as part of an offering registered with the U.S. Securities and Exchange Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

The term “accredited investor” means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term “member of the family of the purchaser or the equivalent” includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships.

The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.

## Description of Issuer’s Securities

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

### Securities

| Class of Security | Amount Authorized | Amount Outstanding | Voting Rights | Other Rights |
| --- | --- | --- | --- | --- |
| Class A units | 8,430,000 | 8,430,000 | Yes | Class A shall carry 4 Votes per unit. |
| Class B units | 500,000 | 500,000 | Yes | Class B shall carry 1 Vote per unit. |
| Class C units | 515,565 | 128,565 | Yes | Class C shall carry 1 Vote per unit. |
| Class D units | 554,435 | 431,978 | Yes | Class D shall carry 1 Vote per unit. |

### Options, Warrants and Other Rights

| Type | Description | Reserved Securities |
| --- | --- | --- |
| Reserved Class D units |  | 122,456 |

**18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of securities?**

The Company has no debt, options, warrants or any convertible securities outstanding. The Company has 122,456 Class D units reserved for issuance, if those securities are issued your ownership in the company will be diluted.

**19. Are there any differences not reflected above between the securities being offered and each other class of security of the issuer?**

The Company has granted a perpetual waiver of the transfer restrictions listed in the Company's Operating Agreement for all Securities sold in this Offering.

**20. How could the exercise of rights held by the principal owners identified in Question 5 above affect the purchasers of Securities being offered?**

The Company's Operating Agreement can be amended by the holders of the Member Units. As minority owners, you are subject to the decisions made by the majority owners. The issued and outstanding membership interest units give management voting control of the company. As a minority owner, you may be outvoted on issues that impact your investment, such as the issuance of new units, or the sale of debt, convertible debt or assets of the company.

**21. How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.**

The price of the Securities was determined solely by the management and bears no relation to traditional measures of valuation such as book value or price-to-earnings ratios. We expect that any future valuation will take the same approach.

**22. What are the risks to purchasers of the securities relating to minority ownership in the issuer?**

As the holder of a majority of the voting rights in the company, our Members may make decisions with which you disagree, or that negatively affect the value of your investment in the company, and you will have no recourse to change those decisions. Your interests may conflict with the interests of other investors, and there is no guarantee that the company will develop in a way that is advantageous to you. For example, the majority of members may decide to issue additional membership interest units to new investors, sell convertible debt instruments with beneficial conversion features, or make decisions that affect the tax treatment of the company in ways that may be unfavorable to you. Based on the risks described above, you may lose all or part of your investment in the securities that you purchase, and you may never see positive returns.

**23. What are the risks to purchasers associated with corporate actions including:**

- additional issuances of securities,
- issuer repurchases of securities,
- a sale of the issuer or of assets of the issuer or
- transactions with related parties?

The issuance of additional common units will dilute your ownership. As a result, if we achieve profitable operations in the future, our net income per share will be reduced because of dilution, and the market price of our common units, if there is a market price, could decline as a result of the additional issuances of securities. If we repurchase securities, so that the above risk is mitigated, and there are fewer shares of common units outstanding, we may not have enough cash available for marketing expenses, growth, or

operating expenses to reach our goals. If we do not have enough cash to operate and grow, we anticipate the market price of our units would decline. A sale of our company or of the assets of our company may result in an entire loss of your investment. We cannot predict the market value of our company or our assets, and the proceeds of a sale may not be cash, but instead, unmarketable securities, or an assumption of liabilities. In addition to the payment of wages and expense reimbursements, we may need to engage in transactions with officers, directors, or affiliates. By acquiring an interest in the Company, you will be deemed to have acknowledged the existence of any such actual or potential related party transactions and waived any claim with respect to any liability arising from a perceived or actual conflict of interest. In some instances, we may deem it necessary to seek a loan from related parties. Such financing may not be available when needed. Even if such financing is available, it may be on terms that are materially averse to your interests with respect to dilution of book value, dividend preferences, liquidation preferences, or other terms. No assurance can be given that such funds will be available or, if available, will be on commercially reasonable terms satisfactory to us. If we are unable to obtain financing on reasonable terms, we could be forced to discontinue our operations. We anticipate that any transactions with related parties will be vetted and approved by executives(s) unaffiliated with the related parties.

# **24. Describe the material terms of any indebtedness of the issuer:**

Not applicable.

# **25. What other exempt offerings has Adaptive Holdings, LLC conducted within the past three years?**

| Date of Offering: | 06/2021 |
| --- | --- |
| Exemption: | Reg. CF (Crowdfunding, Title III of JOBS Act, Section 4(a)(6)) |
| Securities Offered: | Membership Units |
| Amount Sold: | $119,818 |
| Use of Proceeds: | Gross proceeds used for inventory, customer acquisition, selling, general & administrative, product samples. |
| Date of Offering: | 12/2021 |
| Exemption: | Section 4(a)(2) |
| Securities Offered: | Membership Units |
| Amount Sold: | $240,000 |
| Use of Proceeds: | Inventory, customer acquisition, selling, general & administrative, product samples. |
| Date of Offering: | 04/2022 |
| Exemption: | Reg. CF (Crowdfunding, Title III of JOBS Act, Section 4(a)(6)) |
| Securities Offered: | Membership Units |
| Amount Sold: | $27,747 |
| Use of Proceeds: | Gross proceeds used for inventory, customer acquisition, selling, general & administrative, product samples. |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:
1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer; or
4. any immediate family member of any of the foregoing persons.

No.

## Financial Condition of the Issuer

27. Does the issuer have an operating history?

Yes.

28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.

Adaptive Holdings, LLC (the "Company") was incorporated in the State of Florida on February 25, 2021. The Company plans to market a protein beverage that provides up to 20 grams of protein in a 2-ounce bottle. The Company has not recorded any revenues. Since Inception, the Company has relied on funds from units issued to fund its operations. Under the operating agreement, the Company has the authority to issue a total of 10,000,000 Units; 8,430,000 of Class A units (which carry four votes per unit), 500,000 of Class B units (which carry one vote per unit), and 1,070,000 of Class C units (which carry one vote per unit). In March 2022, the Company created Class D units, which carry one vote per unit. The Company transferred 941,435 of the remaining Class C units into their newly created Class D units. Concurrently, the Company issued 288,611 Class D units in exchange for prepaid capital contributions. Between March 1 and October 17, 2022, the Company issued an additional 143,367 of Class D units. Additionally, the Company received approximately $26,000 in member contributions and moved 387,000 unissued Class D units back into Class C units, which are being offered for sale in this crowdfunding offering. In April 2022, the Company closed a crowdfunding round and issued 27,747 additional Class C units, in exchange for $27,747 raised. During the same year, the Company retired 19,000 Class C units, lowering the total number of Class C units outstanding to 128,565 units. During 2021 the Company raised $119,818 via its crowdfunding round. During 2021, the Company took in $240,000 in prepaid capital contributions. The units were issued in 2022. During the period from inception, on February 25, 2021, to December 31, 2021, the Company did not generate any revenues. During the same period, the total operating expenses amounted to $119,557 which resulted in a net operating loss of $119,557. The Company also incurred non-operating expenses related to a crowdfunding campaign amounting to a total of $54,395, resulting in a net loss of $173,952. With this raise, the Company plans to allocate money towards inventory, customer acquisition, selling, general and administrative activities as well as making product samples. We believe these activities will result in the traction we will need to court venture capital funding.

## Financial Information

29. Include the financial information specified by regulation, covering the two most recently completed fiscal years or the period(s) since inception if shorter.

See attachments:

CPA Review Report: reviewletter.pdf

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated in the same form as described in Question 6 of this Question and Answer format, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016:

1. Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:
1. in connection with the purchase or sale of any security?
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

2. Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:
1. in connection with the purchase or sale of any security?;
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

3. Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:
1. at the time of the filing of this offering statement bars the person from:
1. association with an entity regulated by such commission, authority, agency or officer?
2. engaging in the business of securities, insurance or banking?
3. engaging in savings association or credit union activities?

2. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement?

4. Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:
1. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal?
2. places limitations on the activities, functions or operations of such person?
3. bars such person from being associated with any entity or from participating in the offering of any penny stock?

If Yes to any of the above, explain:

5. Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

1. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder?
2. Section 5 of the Securities Act?
6. Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?
7. Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?
8. Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

Adaptive Holdings, LLC answers 'NO' to all of the above questions.

## Other Material Information

31. In addition to the information expressly required to be included in this Form, include: any other material information presented to investors; and such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

The following is a transcript of the video shown on the Company's offering: Hi, I'm Kevin Harrington - an original Shark from Shark Tank and Protein Quick Partner. On behalf of all of us at Protein Quick, a big THANK YOU! to the hundreds of Netcapital investors who came aboard during our initial raise last year. We were able to use the terrific feedback we received to make our product even better. We're back on Netcapital to announce the improvements and are very excited to make this incredible opportunity available again. Protein Quick provides up to 20 grams of protein in 2 ounces of liquid with zero fat, zero sugar, and zero carbs - all in 90 calories or less. It's ready to drink - requiring no mixing or refrigeration. Protein Quick provides all of this in a bottle the same size as 5 Hour Energy - making it available to anyone, anywhere, at any time. Our original version contained only whey protein. During our initial time on Netcapital, we kept hearing "can collagen and pea proteins be added?" After an intense period of research and development, I am happy to announce that Protein Quick is now a proprietary blend of all 3 proteins - whey, collagen, and pea. You heard me correctly - Protein Quick delivers the benefits of all 3 leading proteins in a 2 ounce bottle - still the same size as 5 Hour Energy. I haven't seen another product with all 3. And, as I can personally attest, it tastes great! As you can imagine, I've seen thousands and thousands of early-stage companies. What is it about Protein Quick that allowed it to become one of the select few I've chosen to join as a partner? Protein Quick is a classic case of providing a very simple solution to a common and widespread problem. This is the exact type of opportunity I looked for on Shark Tank and throughout my career - trust me when I say they don't come along very often. When they do - I seize them. I'm encouraging you to do the same by participating in this raise. We are going to monetize the awareness of protein that already exists. It's hard to pick up a box of just about anything at the grocery and not see the

protein content prominently displayed. Like many of you, I look to add protein to my diet through products such as bars and shakes. But, have you ever taken a good look at the ingredients? They tend to be loaded with fat, sugar, carbs, and calories. Protein Quick asks a very simple question - why? Why must we accept unnecessary amounts of fat, sugar, carbs and calories when we just want protein? My regular diet already gets its share - so why do I need to “double up” on these items just to add extra protein? The answer is we don’t - and the reason why is Protein Quick. Protein Quick just delivers the protein - with zero fat, zero sugar, zero carbs, and zero high fructose corn syrup all in 90 calories or less. Do what I did and compare Protein Quick to your favorite protein source. There is no comparison. As the head-to-head comparison table in our offering page shows, Protein Quick is unparalleled in delivering just the protein. I love how easy Protein Quick can balance any meal at any time. I can grab a banana, pair it with the protein or grab a bag of chips and pair it with the protein. I can use it before, during or after a workout. It’s always available and ready to go for anyone - especially those just trying to be a little healthier each day. As you can surely imagine, the markets for this product are virtually endless. Traditional retail and direct to consumer are both big targets - but just the beginning. Unlike most products, Protein Quick is not solely reliant on these markets. The medical opportunities are significant across a wide range of patient groups - Chron’s, colitis, chemotherapy, nephrology and bariatrics - just to name a few. Patient groups that can’t tolerate large quantities of liquid or calories are perfect for Protein Quick. Since the product is only 2 ounces and ready to drink - humanitarian, disaster relief and military are all markets that can benefit from and need this product. We’ve added Board-certified medical doctors to our team to help guide our understanding of the medical needs in all our markets. The last time I joined a promising beverage opportunity in the early stages, it was for a company you are probably now aware of - Celsius Energy Drink. I brought in Gerry David, an old buddy of mine. Together we helped launch what would become a staggering success story in the ultra-competitive energy drink space. After joining the Protein Quick team, my first phone call was to Gerry and we are very fortunate to have him on the team. We have the distribution connections to get Protein Quick where it needs to be - everywhere. This is the type of product that pops on social media. New, fresh, easy to understand - and needed. We have relationships with the influencers and micro-influencers necessary to quickly gain traction on social media. Since Protein Quick can be used every day, it’s a perfect product for a potentially recurring revenue stream as a monthly online subscription. Protein Quick is a perfect crowdsourcing opportunity - every potential investor is also a potential consumer. We intend to provide investor-only discounts along with discounts you can provide to your network. Protein Quick has the characteristics of my biggest successes - an easy-to-understand solution to a common problem, a huge market opportunity, and a terrific management team. I’ll say it again - these opportunities don’t come along very often and I’m thrilled that crowdsourcing makes it easy for you to join us. We plan to have several Q&A zoom sessions during the course of this campaign. I look forward to seeing you there. I encourage you to review our offering on Netcapital!

The following documents are being submitted as part of this offering:

# **Governance:**

| Certificate of Formation: | certificateofformation.pdf |
| --- | --- |
| Operating Agreement: | operatingagreement.pdf |

# **Opportunity:**

| Offering Page JPG: | offeringpage.jpg |
| --- | --- |
| Pitch Deck: | pitchdeck.pdf |

# **Financials:**

| Additional Information: | otherfinancial.pdf |
| --- | --- |

## Ongoing Reporting

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its web site, no later than 120 days after the end of each fiscal year covered by the report:

Once posted, the annual report may be found on the issuer's web site at: http://www.proteinquick.com

The issuer must continue to comply with the ongoing reporting requirements until:

- the issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
- the issuer has filed at least one annual report pursuant to Regulation Crowdfunding and has fewer than 300 holders of record and has total assets that do not exceed $10,000,000;
- the issuer has filed at least three annual reports pursuant to Regulation Crowdfunding;
- the issuer or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
- the issuer liquidates or dissolves its business in accordance with state law.

**Attachment 2:** `reviewletter.pdf`

# ADAPTIVE HOLDINGS, LLC
FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021

WITH INDEPENDENT ACCOUNTANT'S REVIEW REPORT

# TABLE OF CONTENTS

| Independent Accountant's Review Report | 2 |
| --- | --- |
| Balance Sheet | 3 |
| Statement of Income | 4 |
| Statement of Equity | 5 |
| Statement of Cash Flows | 6 |
| Notes to the Financial Statements | 7 |

# Belle Business Services

Certified Public Accountants

# INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Members
Adaptive Holdings, LLC
Weston, Florida

We have reviewed the accompanying financial statements of Adaptive Holdings, LLC, which comprise the balance sheet as of December 31, 2021, and the related statement of income, statement of equity and statement of cash flows for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

# Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement whether due to fraud or error.

# Accountant's Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. We are required to be independent of Adaptive Holdings, LLC and to meet our ethical responsibilities, in accordance with relevant ethical requirements related to our review.

# Accountant's Conclusion

Based on our review, we are not aware of any material modification that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

# Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 4, certain conditions raise an uncertainty about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our conclusion is not modified with respect to this matter.

Belle Business Services, LLC
October 17, 2022

275 HILL STREET, SUITE 260 • RENO, NV 89501 • 775.525.ITAX (1829) • WWW.BELLE.CPA

- 2 -

# **ADAPTIVE HOLDINGS, LLC**
**BALANCE SHEET**
**DECEMBER 31, 2021**
**(unaudited)**

# **ASSETS**

# **CURRENT ASSETS**

| Cash and cash equivalents | $151,471 |
| --- | --- |
| Prepaid expenses and other current assets | 22,917 |
| TOTAL CURRENT ASSETS | 174,388 |

| TOTAL ASSETS | $174,388 |
| --- | --- |

# **LIABILITIES AND MEMBERS' EQUITY**

# **CURRENT LIABILITIES**

| Accounts payable | $7,500 |
| --- | --- |
| TOTAL CURRENT LIABILITIES | 7,500 |
| TOTAL LIABILITIES | 7,500 |

# **MEMBERS' EQUITY**

| Capital contributions | 100,840 |
| --- | --- |
| Prepaid capital contributions | 240,000 |
| Accumulated deficit | (173,952) |
| TOTAL MEMBERS' EQUITY | 166,888 |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | $174,388 |

See independent accountant's review report and accompanying notes to financial statements.

- 3 -

# **ADAPTIVE HOLDINGS, LLC**  
**STATEMENT OF INCOME**  
**DECEMBER 31, 2021**  
(unaudited)

| REVENUES | $ - |
| --- | --- |
| COST OF GOODS SOLD | - |
| GROSS PROFIT | - |
| OPERATING EXPENSES |  |
| General and administrative | 10,834 |
| Professional fees | 41,581 |
| Research and development | 67,142 |
| TOTAL OPERATING EXPENSES | 119,557 |
| NET OPERATING LOSS | (119,557) |
| OTHER INCOME/(EXPENSES) |  |
| Crowdfunding marketing | (42,275) |
| Crowdfunding fees | (12,120) |
| TOTAL OTHER INCOME/(EXPENSES) | (54,395) |
| NET LOSS | $(173,952) |

See independent accountant's review report and accompanying notes to financial statements.

- 4 -

# **ADAPTIVE HOLDINGS, LLC**  
 **STATEMENT OF EQUITY**  
 **DECEMBER 31, 2021**  
 (unaudited)

|  | Capital Contributions | Prepaid Capital Contributions | Retained Earnings/ (Accumulated Deficit) | Total |
| --- | --- | --- | --- | --- |
| BEGINNING BALANCE, FEBRUARY 25, 2021 (INCEPTION) | $ - | $ - | $ - | $ - |
| Capital contributions | 100,840 | 240,000 | - | $340,840 |
| Net loss | - | - | (173,952) | $(173,952) |
| ENDING BALANCE, DECEMBER 31, 2021 | $100,840 | $240,000 | $(173,952) | $166,888 |

See independent accountant's review report and accompanying notes to financial statements.

- 5 -

# **ADAPTIVE HOLDINGS, LLC**
**STATEMENT OF CASH FLOWS**
**DECEMBER 31, 2021**
**(unaudited)**

# **CASH FLOWS FROM OPERATING ACTIVITIES**

| Net income (loss) | $(173,952) |
| --- | --- |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |
| (Increase) decrease in assets: |  |
| Prepaid expenses and other current assets | (22,917) |
| Increase (decrease) in liabilities: |  |
| Accounts payable | 7,500 |

**CASH USED FOR OPERATING ACTIVITIES** (189,369)

# **CASH FLOWS FROM FINANCING ACTIVITIES**

| Capital contributions | 340,840 |
| --- | --- |

**CASH PROVIDED BY FINANCING ACTIVITIES** 340,840

**NET INCREASE IN CASH** 151,471

**CASH AT INCEPTION** -

**CASH AT END OF YEAR** $151,471

# **CASH PAID DURING THE YEAR FOR:**

**INTEREST** $ -

**INCOME TAXES** $ -

See independent accountant's review report and accompanying notes to financial statements.

- 6 -

# **ADAPTIVE HOLDINGS, LLC**  
**NOTES TO THE FINANCIAL STATEMENTS**  
**DECEMBER 31, 2021**  
**(unaudited)**

# **1. Summary of Significant Accounting Policies**

# ***The Company***

Adaptive Holdings, LLC (the “Company”) was incorporated in the State of Florida on February 25, 2021. The Company will market a protein beverage that provides up to 20 grams of protein in a 2-ounce bottle.

# ***Going Concern***

Since Inception, the Company has relied on funds from units issued to fund its operations. As of December 31, 2021, the Company will likely incur losses prior to generating positive working capital. These matters raise substantial concern about the Company’s ability to continue as a going concern. As of December 31, 2021, the Company is still mostly in the developmental process, with very limited revenue. The Company’s ability to continue as a going concern is dependent on the Company’s ability to raise short term capital, as well as the Company’s ability to generate funds through revenue producing activities.

# ***Fiscal Year***

The Company operates on a December 31st year-end.

# ***Basis of Presentation***

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP). In the opinion of management, all adjustments considered necessary for the fair presentation of the financial statements for the year presented have been included.

# ***Use of Estimates***

The preparation of the financial statement in conformity with accounting principles generally accepted in the United States of America requires the use of management’s estimates. These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at fiscal year-end. Actual results could differ from those estimates.

# ***Cash and Cash Equivalents***

The Company considers all highly liquid financial instruments purchased with maturities of three months or less to be cash equivalents. As of December 31, 2021, the Company held no cash equivalents.

# ***Risks and Uncertainties***

The Company has a limited operating history. The Company’s business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company’s control could cause fluctuations in these conditions.

The Coronavirus Disease of 2019 (COVID-19) has recently affected global markets, supply chains, employees of companies, and our communities. Specific to the Company, COVID-19 may impact various parts of its 2022 operations and financial results including shelter in place orders, material supply chain interruption, economic hardships affecting funding for the Company’s operations, and affects the Company’s workforce. Management believes the Company is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as of December 31, 2021.

*See independent accountant’s review report.*

- 7 -

# **ADAPTIVE HOLDINGS, LLC**  
**NOTES TO THE FINANCIAL STATEMENTS**  
**DECEMBER 31, 2021**  
**(unaudited)**

# **1. Summary of Significant Accounting Policies (continued)**

# ***Accounts Receivable***

The Company's trade receivables are recorded when billed and represent claims against third parties that will be settled in cash. The carrying value of the Company's receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value.

The Company evaluates the collectability of accounts receivable on a customer-by-customer basis. The Company records a reserve for bad debts against amounts due to reduce the net recognized receivable to an amount the Company believes will be reasonably collected. The reserve is a discretionary amount determined from the analysis of the aging of the accounts receivables, historical experience and knowledge of specific customers. As of December 31, 2021, the Company had no accounts receivable.

# ***Income Taxes***

The Company is taxed as a partnership for federal income tax purposes. Therefore, the Company's earnings are included on the members' personal income tax returns and taxed depending on their personal tax situations. Accordingly, no provision has been made for Federal income taxes.

The Company complies with FASB ASC 740 for accounting for uncertainty in income taxes recognized in a company's financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. FASB ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

The Company is subject to tax filing requirements as a corporation in the federal jurisdiction of the United States. The Company sustained net operating losses since inception. Net operating losses will be carried forward to reduce taxable income in future years. Due to management's uncertainty as to the timing and valuation of any benefits associated with the net operating loss carryforwards, the Company has elected to recognize an allowance to account for them in the financial statements but has fully reserved it. Under current law, net operating losses may be carried forward indefinitely.

# ***Fair Value of Financial Instruments***

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would

*See independent accountant's review report.*

- 8 -

# **ADAPTIVE HOLDINGS, LLC**
**NOTES TO THE FINANCIAL STATEMENTS**
**DECEMBER 31, 2021**
**(unaudited)**

# **1. Summary of Significant Accounting Policies (continued)**

# ***Fair Value of Financial Instruments (continued)***

use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

- Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
- Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.
- Level 3 - Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Fair-value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of Inception. Fair values were assumed to approximate carrying values because of their short term in nature or they are payable on demand.

# ***Concentrations of Credit Risk***

From time-to-time cash balances, held at a major financial institution may exceed federally insured limits of $250,000. Management believes that the financial institution is financially sound, and the risk of loss is low.

# ***Revenue Recognition***

The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Revenue is recognized when performance obligations under the terms of the contracts with our customers are satisfied. The Company will generate revenue by selling a protein drink. The Company's payments are generally collected upfront. For the year ending December 31, 2021 the Company recognized nil in revenue.

# ***Research and Development***

In compliance with ASC 730-10-25, all research and development costs are expensed as incurred. As of December 31, 2021, the Company expensed a total of $67,142 related to the development of the protein beverage.

# ***Advertising Expenses***

The Company expenses advertising costs as they are incurred.

# ***Organizational Costs***

In accordance with FASB ASC 720, organizational costs, including accounting fees, legal fee, and costs of incorporation, are expensed as incurred.

# ***New Accounting Pronouncements***

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

*See independent accountant's review report.*

- 9 -

# **ADAPTIVE HOLDINGS, LLC**  
**NOTES TO THE FINANCIAL STATEMENTS**  
**DECEMBER 31, 2021**  
**(unaudited)**

# **1. Summary of Significant Accounting Policies (continued)**

# **New Accounting Pronouncements (continued)**

In August 2020, the FASB issued ASU 2020 - 06, *Debt, Debt with conversion and other options (Subtopic 470-20) and derivatives and hedging - contracts in an entity’s own equity (Subtopic 815-40: Accounting for convertible instruments and contracts in an entity’s own equity*. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. ASU 2020 - 06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020.

In August 2018, amendments to existing accounting guidance were issued through Accounting Standards Update 2018-15 to clarify the accounting for implementation costs for cloud computing arrangements. The amendments specify that existing guidance for capitalizing implementation costs incurred to develop or obtain internal-use software also applies to implementation costs incurred in a hosting arrangement that is a service contract. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, and early application is permitted. The adoption of ASU 2018-15 had no material impact on the Company’s financial statements and related disclosures.

# **2. Commitments and Contingencies**

The Company is not currently involved with and does not know of any pending or threatening litigation against the Company or its members.

# **3. Equity**

# **Units**

Under the operating agreement, the Company has the authority to issue a total of 10,000,000 Units; 8,430,000 of Class A units (which carry four votes per unit), 500,000 of Class B units (which carry one vote per unit), and 1,070,000 of Class C units (which carry one vote per unit).

As of December 31, 2021, the total number of units issued and outstanding are as follows:

| Class A units: | 8,430,000 |
| --- | --- |
| Class B units: | 500,000 |
| Class C units: | 100,818 |

# **Prepaid Capital Contributions**

During 2021, the Company took in $240,000 in prepaid capital contributions. The units were issued in 2022. See Note 6.

# **4. Going Concern**

These financial statements are prepared on a going concern basis. The Company registered on February 25, 2021 and has established a presence and operations in the United States. The Company’s ability to continue is dependent upon management’s plan to raise additional funds and achieve and sustain profitable operations. The financial statements do not include any adjustments that might be necessary if the Company is not able to continue as a going concern.

*See independent accountant’s review report.*

- 10 -

# **ADAPTIVE HOLDINGS, LLC**  
**NOTES TO THE FINANCIAL STATEMENTS**  
**DECEMBER 31, 2021**  
**(unaudited)**

# **5. Subsequent Events**

# ***Equity***

In February 2022, the Company closed its crowdfunding round and issued 27,747 additional Class C units, in exchange for $27,747 raised.

In March 2022, the Company created Class D units, which carry one vote per unit. The Company transferred 941,435 of the remaining Class C units into their newly created Class D units. Concurrently, the Company issued 288,611 of Class D units in exchange for the prepaid capital contributions, discussed in Note 3.

Between March 1 and October 17, the Company issued an additional 143,367 of Class D units. Additionally, the Company moved 387,000 of unissued Class D units back into Class C units, for their upcoming crowdfunding offering, discussed below.

As of October 17, 2022, the Company has the following shares authorized, issued and outstanding:

|  | Authorized | Issued/Outstanding |
| --- | --- | --- |
| Class A | 8,430,000 | 8,430,000 |
| Class B | 500,000 | 500,000 |
| Class C | 515,565 | 128,565 |
| Class D | 554,435 | 431,978 |

# ***Crowdfunding Offering***

The Company is offering (the “Crowdfunded Offering”) up to $387,000 in common stock in the Company. The Company is attempting to raise a minimum amount of $10,000 in this offering and up to $387,000 maximum. The Company must receive commitments from investors totaling the minimum amount by the offering deadline listed in the Form C, as amended in order to receive any funds.

The Crowdfunded Offering is being made through NetCapital Funding Portal, Inc. (the “Intermediary” aka “NetCapital”). The Intermediary will be entitled to receive a 4.9% commission fee and a $5,000 listing fee.

# ***Managements Evaluation***

The Company has evaluated subsequent events through October 17, 2022, the date through which the financial statement was available to be issued. It has been determined that no events require additional disclosure.

*See independent accountant’s review report.*

- 11 -

**Attachment 3:** `certificateofformation.pdf`

# **Electronic Articles of Organization  
For  
Florida Limited Liability Company**

L21000094678  
FILED 8:00 AM  
February 25, 2021  
Sec. Of State  
mtmoon

## Article I

The name of the Limited Liability Company is:

ADAPTIVE HOLDINGS, LLC

## Article II

The street address of the principal office of the Limited Liability Company is:

4581 WESTON ROAD  
SUITE 191  
WESTON, FL. US 33331

The mailing address of the Limited Liability Company is:

4581 WESTON ROAD  
SUITE 191  
WESTON, FL. US 33331

## Article III

The name and Florida street address of the registered agent is:

SCOTT KAUFFMAN  
4581 WESTON ROAD  
SUITE 191  
WESTON, FL. 33331

Having been named as registered agent and to accept service of process for the above stated limited liability company at the place designated in this certificate, I hereby accept the appointment as registered agent and agree to act in this capacity. I further agree to comply with the provisions of all statutes relating to the proper and complete performance of my duties, and I am familiar with and accept the obligations of my position as registered agent.

Registered Agent Signature: SCOTT KAUFFMAN

# Article IV

The name and address of person(s) authorized to manage LLC:

Title: MGR

SCOTT KAUFFMAN

4581 WESTON ROAD SUITE 191

WESTON, FL. 33331 US

L21000094678

FILED 8:00 AM

February 25, 2021

Sec. Of State

mtmoon

Signature of member or an authorized representative

Electronic Signature: SCOTT KAUFFMAN

I am the member or authorized representative submitting these Articles of Organization and affirm that the facts stated herein are true. I am aware that false information submitted in a document to the Department of State constitutes a third degree felony as provided for in s.817.155, F.S. I understand the requirement to file an annual report between January 1st and May 1st in the calendar year following formation of the LLC and every year thereafter to maintain "active" status.

**Attachment 4:** `operatingagreement.pdf`

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

# ADAPTIVE HOLDINGS, LLC OPERATING AGREEMENT

THIS OPERATING AGREEMENT is made and entered into effective February 25, 2021, by and among: Potter Road Consulting, Inc. and KBHS, LLC (collectively referred to in this agreement as the 'Members').

### THE LIMITED LIABILITY COMPANY

**1.1 Formation.** The Members form a limited liability company under the name Adaptive Holdings, LLC (the 'Company') on the terms and conditions set forth in this Operating Agreement (the 'Agreement') and pursuant to the Limited Liability Company Act of the State of Florida (the 'Act'). The Members filed on February 25, 2021 with the Florida Secretary of State all documentation required for the formation of the Company, FL Division of Corporations document number L21000094678. The rights and obligations of the parties are as provided in the Act except as otherwise expressly provided in this Agreement.

**1.2 Name.** The business of the Company will be conducted under the name Adaptive Holdings, LLC.

**1.3 Purpose.** The purpose of the Company is to engage in any lawful act or activity for which a Limited Liability Company may be formed within the State of Florida.

**1.4 Office.** The Company will maintain its principal business office within the State of Florida at the following address: 4581 Weston Road, Suite 191, Weston, FL 33331.

**1.5 Registered Agent.** Scott Kauffman is the Company's initial registered agent in the State of Florida, and the registered office is 4581 Weston Road, Suite 191, Weston, FL 33331.

**1.6 Term.** The term of the Company commences on February 25, 2021 and shall continue perpetually unless sooner terminated as provided in this Agreement.

**1.7 Decisions by Members.** Whenever in this Agreement reference is made to the decision, consent, approval, judgment, or action of the Members, unless otherwise expressly provided in this Agreement, such decision, consent, approval, judgment, or action shall mean an affirmative vote of a Seventy Five percent (75%) majority of the Unit Votes for Units held by Members.

## SECTION 2

**2.1 Authorization and Issuance of Units.** The Interests of a Member shall be represented by Units as set forth in Schedule A, as it may be amended from time to time by the Manager. The Company may issue certificates for Units issued. The Company shall be authorized to issue a total of Ten Million (10,000,000) Units in the following Classes with corresponding voting rights:

- Class B Units shall have one (1) Vote per Unit; and

The Company shall not issue additional classes of Units or issue Units in excess of the authorized number without the written consent of the Manager.

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

2.2 Current Members. The name and address of the Members of the Company are set forth in Schedule A, as it may be amended from time to time by the Manager. Schedule A shall set forth the initial amount of Capital Contribution made by the Members, the number and class of Units.

2.3 Assignment or Transfer of Interests. No Member may sell, transfer, assign, pledge mortgage or otherwise dispose of its Interest in the Company without the approval of the Manager. Except that in the event that any part of the Member's interest in the Company is transferred by operation of law, the transferee of the Interest who is not approved by the Manager shall obtain rights in the Company with respect to the distribution and Net Income and Net Losses attributable to the transferee Units, but otherwise shall have NO rights as a Member under this Agreement or the Act, and shall have NO rights to vote or otherwise participate in the management of the Company. The Units of the transferee shall be subject to the restrictions contained in this Agreement applicable to Units held by a Member. Any transfer of a Member's Interest that is not made in accordance with the terms of this Agreement shall be null and void.

2.4 Termination of Member's Interest. A Member will cease to be a member of the Company upon the Member's death, incompetency, or bankruptcy if a natural person; dissolution or bankruptcy if an entity; or upon assignment or transfer of any Member's entire membership interest. Unless there are one or more other members of the Company, the person who is the holder of the Member's limited liability company interest immediately after the Member ceases to be a member will become a member concurrently to ensure continuity of the Company. If there are one or more other members of the Company at the time the Member ceases to be a member, the individual or entity who is the holder of the Member's limited liability company interest immediately after the Member ceases to be a member will become a member only with the consent of the other member or members.

2.5 Additional Members. Except for the holder of a Member's limited liability company's interest who becomes a member under the provisions of the section of this Agreement relating to termination of member's interest, additional members of the Company may be admitted subject to the terms and conditions as determined by the Manager and accepted by the Manager. Any new Member must agree to and execute this Agreement, as may be modified, or an Amended and Restated Operating Agreement, as agreed by the Manager. The Manager shall update Schedule A from time to time to reflect any changes, including transfer of Units, issuance of additional Units to Members, withdrawal of Members or adding Additional Members. Admission of Additional Members shall not cause the dissolution of the Company.

2.6 Members Representations and Warranties. Each Member hereby represents and warrants to the Company and each Member as follows:

- (a) the Member has duly executed and delivered this Agreement, and it constitutes the legal, valid, and binding obligation of that Member enforceable against it in accordance with its terms except as limited by law;
- (b) the Member's authorization, execution, delivery, and performance of this Agreement does not and will not (i) conflict with, or result in a breach, default, or violation of any contract or agreement, law, order, judgment, decree, writ, injunction, or arbitral award to which that Member is subject; or (ii) require any consent, approval, or authorization from,

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

filing or registration with, or notice, any Governmental Authority or other Person, unless such requirement has already been satisfied; and

(c) the Member is familiar with the existing or proposed business, financial condition, properties, operations, and prospects of the Company; conducted due diligence to the Member’s satisfaction concerning acquisition of the Units; has such knowledge and experience in financial and business matters that Member is capable of evaluating the merits and risks of an investment in the Company; Member understands that owning the Units involves various risks, including the restrictions on transfer set forth in this Agreement or under applicable law, the lack of any public market for the Units, the risk of owning the Units for an indefinite period of time and the risk of losing the entire investment in the Company; Member is able to bear the economic risk of such investment; Member is acquiring its Units for investment, solely for Member’s own beneficial account and not with a view to or intention of directly or indirectly selling, offering, offering to sell or transfer, participating in any distribution, or otherwise transferring all or a portion of Member’s Units; and Member acknowledges that the Units have not been registered under the Securities Act or any other applicable federal or state securities laws, and that the Company has no intention, and shall not have any obligation, to register or to obtain exemption from registration for the Units or to take action so as to permit sales pursuant to the Securities Act.

**2.7 Members Are Not Employees, Reimbursements.** Members, unless duly appointed under this Agreement and actively serving as a Manager or appointed as an Officer or Consultant by the Manager, shall have no management authority, duty, or responsibility, and shall not be considered an employee of the Company for any purpose. Members are not entitled to the payment of any salary, wages, or other compensation for services as a Member. Members are, however, entitled to reimbursement from the Company for reasonable expenses incurred on behalf of the Company, including expenses incurred in the formation, dissolution, and liquidation of the Company, and such reimbursements shall not be considered wages, salary or other compensation or distribution.

**2.8 Withdrawal by a Member.** A Member has no power to withdraw from the Company, except as otherwise provided in Section 9.

**2.9 Protection of Trade Secrets.** Each Member acknowledges that the customer lists, trade secrets, processes, methods and technical information of the Company and any other matters designated by the Manager are the Company’s assets. Each Member agrees not to disclose any of these assets to anyone outside the Company, except with written consent by the Manager, even if the Member withdraws from the Company.

**2.10 Transactions between the Company and the Members.** Any Member may enter a contract or transaction with the Company with the approval of the Manager. If there is a potential conflict of interest, this approval must be in writing.

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

### CAPITAL CONTRIBUTIONS

3.1 *Initial Contributions.* The Members initial capital contribution to the Company is set forth in Schedule A, attached to this Agreement.

3.2 *Additional Contributions.* The Members may agree to make additional contributions as needed with issuance of corresponding number of Units based on a valuation determined by the Manager. Any additional contribution to the Company's capital requires the prior written consent of the Manager. No Member is required to make an addition contribution.

3.3 *No Interest on Capital Contributions.* Members are not entitled to interest or other compensation for or on account of their capital contributions to the Company except to the extent, if any, expressly provided in this Agreement.

### ALLOCATION OF PROFITS AND LOSSES; DISTRIBUTIONS

4.1 *Profits/Losses.* For financial accounting and tax purposes, the Company's net profits, or net losses shall be determined on an annual basis and shall be allocated to the Members in proportion to each Member's relative capital interest in the Company as set forth in Schedule 2 as amended from time to time in accordance with U.S. Department of the Treasury Regulation 1.704-1.

4.2 *Distributions.* The Manager shall determine and distribute available funds annually or at more frequent intervals as they see fit. Available funds, as referred to herein, shall mean the net cash of the Company available after appropriate provision for expenses and liabilities, as determined by the Manager. Distributions in liquidation of the Company or in liquidation of a Member's interest shall be made in accordance with the positive capital account balances pursuant to U.S. Department of the Treasury Regulation 1.704.1(b)(2)(ii)(b)(2). To the extent a Member shall have a negative capital account balance, there shall be a qualified income offset, as set forth in U.S. Department of the Treasury Regulation 1.704.1(b)(2)(ii)(d).

4.3 *No Right to Demand Return of Capital.* No Member has any right to any return of capital or other distribution except as expressly provided in this Agreement. No Member has any drawing account in the Company.

### INDEMNIFICATION

The Company shall indemnify any person who was or is a party defendant or is threatened to be made a party defendant, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the Company) by reason of the fact that he is or was a Member, Manager, employee or agent of the Company, or is or was serving at the request of the Company, against expenses (including attorney's fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if the Members determine that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interest of the Company, and with respect to any criminal action proceeding, has no reasonable cause to believe their

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of 'no lo Contendere' or its equivalent, shall not in itself create a presumption that the person did or did not act in good faith and in a manner which he reasonably believed to be in the best interest of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his/her conduct was lawful.

### **SECTION 6** **POWERS AND DUTIES OF MANAGER**

**6.1 Management of Company.** The Company will be Manager Managed within the authority granted by the Act and the terms of this Agreement shall have the complete power and authority to manage and operate the Company and make all decisions affecting its business and affairs.

**6.2 Manager.** The initial Manager shall be Scott Kauffman. He shall continue to act as Manager until he resigns or is physically unable to perform the Manager duties for more than 90 due to illness or disability, or in the event of the Manager's death. In the event, a Manager resigns or is physically unable to perform the Manager duties for more than 90 days due to illness or disability, or in the event of the Manager's death, the Members shall appoint a replacement Manager based on a Seventy Five percent (75%) majority of the Unit Votes for Units held by Members.

**6.3 Powers of the Manager.** The Manager will make decisions as to (a) the sale, development lease or other disposition of the Company's assets; (b) the purchase or other acquisition of other assets of all kinds; (c) the management of all or any part of the Company's assets; (d) the borrowing of money and the granting of security interests in the Company's assets; (e) the pre-payment, refinancing or extension of any loan affecting the Company's assets; (f) the compromise or release of any of the Company's claims or debts; and, (g) the employment of persons, firms or corporations for the operation and management of the company's business. In the exercise of their management powers, the Managers are authorized to execute and deliver (a) all contracts, conveyances, assignments leases, sub-leases, franchise agreements, licensing agreements, management contracts and maintenance contracts covering or affecting the Company's assets; (b) all checks, drafts and other orders for the payment of the Company's funds; (c) all promissory notes, loans, security agreements and other similar documents; and, (d) all other instruments of any other kind relating to the Company's affairs, whether like or unlike the foregoing.

**6.4 Decisions by Manager.** Except as otherwise provided in this Agreement, all decisions and documents relating to the management and operation of the Company shall be made and executed by the Manager. In the event of any tie in a vote by Members, the Manager shall have the tie breaking vote.

**6.5 Authority of Manager.** Third parties dealing with the Company shall be entitled to rely conclusively upon the power and authority of Manager to manage and operate the business and affairs of the Company.

**6.6 Member Approval.** The Manager shall determine any matter that requires a Member vote and approval. The 'vote' or 'approval' of the Members shall mean approval by Seventy Five percent (75%) majority of the Unit Votes for Units held by Members. Members shall vote or approve by their total votes per Unit as shown on Exhibit A of this Agreement. No annual or

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

regular meetings of the Members are required, unless called by the Manager. If the Manager calls a meeting of the Members, the meeting shall be noticed and conducted pursuant to the Act.

## SECTION 7

### SALARIES, REIMBURSEMENT, AND PAYMENT OF EXPENSES

7.1 *Organization Expenses.* All expenses incurred in connection with organization of the Company will be paid by the Company.

7.2 *Legal, Accounting and Professional Services.* The Company may obtain legal, accounting, and professional services to the extent reasonably necessary for the conduct of the Company's business.

7.3 *No Employees.* The Company shall not hire employees without the approval of the Manager. The Members shall provide their advice, services and expertise as required and agreed.

## SECTION 8

### BOOKS OF ACCOUNT, ACCOUNTING REPORTS, TAX RETURNS, FISCAL YEAR, BANKING

8.1 *Method of Accounting.* The Company will use the method of accounting determined by the Manager for financial reporting and tax purposes. The Company will file required election forms with the IRS for tax treatment as a partnership. The Company will provide financial and accounting reports in accordance with GAAP by March 15 every year.

8.2 *Fiscal Year; Taxable Year.* The fiscal year and the taxable year of the Company is the calendar year.

8.3 *Capital Accounts.* The Company will maintain a Capital Account for each Member on a cumulative basis in accordance with federal income tax accounting principles.

8.4 *Banking.* All funds of the Company will be deposited in a separate bank account or in an account or accounts of a savings and loan association in the name of the Company as determined by the Manager. Company funds will be invested or deposited with an institution, the accounts, or deposits of which are insured or guaranteed by an agency of the United States government. The Manager shall be authorized to open accounts and be authorized signatory on all accounts.

8.5 *Bookkeeping.* The Company may utilize a third-party bookkeeper for maintaining the Company's internal financial records and independent accountant/CPA for all tax returns and financial statements and reports.

8.6 Tax Matters for the Company. Scott Kauffman is designated as 'Tax Matters Partner' to represent the Company (at the Company's expense) in connection with all tax authorities. The Tax Matters Partner may spend Company funds for associated professional services and costs.

## SECTION 9

### TRANSFER OF MEMBERSHIP INTEREST

9.1 *Sale or Encumbrance Prohibited.* Except as otherwise permitted in this Agreement, no Member may voluntarily or involuntarily transfer, sell, convey, encumber, pledge, assign, or otherwise dispose of (collectively, 'Transfer') an interest in the Company without the prior

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

written consent of Seventy Five percent (75%) majority of the Unit Votes for Units held by Members.

9.2 *Right of First Refusal.* Notwithstanding Section 9.1, a Member may transfer all or any part of the Member's interest in the Company (the 'Interest') as follows:

(a) The Member desiring to transfer its Interest first must provide written notice (the 'Notice') to the other Members, specifying the price and terms on which the Member is prepared to sell the Interest (the 'Offer').

(b) For a period of 30 days after receipt of the Notice, the Members may acquire all, but not less than all, of the Interest at the price and under the terms specified in the Offer. If the other Members desiring to acquire the Interest cannot agree among themselves on the allocation of the Interest among them, the allocation will be proportional to the Ownership Interests of those Members desiring to acquire the Interest.

(c) Closing of the sale of the Interest will occur as stated in the Offer; provided, however, that the closing will not be less than 45 days after expiration of the 30-day notice period.

(d) If the other Members fail or refuse to notify the transferring Member of their desire to acquire all of the Interest proposed to be transferred within the 30-day period following receipt of the Notice, then the Members will be deemed to have waived their right to acquire the Interest on the terms described in the Offer, and the transferring Member may sell and convey the Interest consistent with the Offer to any other person or entity; provided, however, that notwithstanding anything in Section 9.2 to the contrary, should the sale to a third person be at a price or on terms that are more favorable to the purchaser than stated in the Offer, then the transferring Member must reoffer the sale of the Interest to the remaining Members at that other price or other terms; provided, further, that if the sale to a third person is not closed within six months after the expiration of the 30-day period describe above, then the provisions of Section 9.2 will again apply to the Interest proposed to be sold or conveyed.

(e) Notwithstanding the foregoing provisions of Section 9.2, should the sole remaining Member be entitled to and elect to acquire all the Interests of the other Members of the Company in accordance with the provisions of Section 9.2, the acquiring Member may assign the right to acquire the Interests to a spouse, lineal descendant, or an affiliated entity if the assignment is reasonably believed to be necessary to continue the existence of the Company as a limited liability company.

9.3 *Substituted Parties.* Any transfer in which the Transferee becomes a fully substituted Member is not permitted unless and until:

(a) The transferor and assignee execute and deliver to the Company the documents and instruments of conveyance necessary or appropriate in the opinion of counsel to the Company to affect the transfer and to confirm the agreement of the permitted assignee to be bound by the provisions of this Agreement; and

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

(b) The transferor furnishes to the Company an opinion of counsel, satisfactory to the Company, that the transfer will not cause the Company to terminate for federal income tax purposes or that any termination is not averse to the Company or the other Members.

9.4 *Death, Incompetency, Dissolution, or Bankruptcy of Member.* On the death or incompetency of a Member (who is a natural person), any personal representative, guardian, trustee, or other successor in interest of such deceased or incompetent Member shall have the rights, duties and obligations of a Substitute Member as defined in Section 9.3. If the Member is an Entity and is dissolved or terminated, the Member's legal representatives or successors in interest shall have the same rights duties and obligations as a Substitute Member as provided in Section 9.3. On the death, adjudicated incompetence, dissolution or bankruptcy of a Member, unless the Company exercises its rights under Section 9.2, the successor in interest to the Member (whether an estate, bankruptcy trustee, or otherwise) will receive only the economic right to receive distributions whenever made by the Company and the Member's allocable share of taxable income, gain, loss, deduction, and credit (the 'Economic Rights') unless and until a majority of the other Members determined on a per capita basis admit the transferee as a fully substituted Member in accordance with the provisions of Section 9.3.

(a) Any transfer of Economic Rights pursuant to Section 9.4 will not include any right to participate in management of the Company, including any right to vote, consent to, and will not include any right to information on the Company or its operations or financial condition. Following any transfer of only the Economic Rights of a Member's Interest in the Company, the transferring Member's power and right to vote or consent to any matter submitted to the Members will be eliminated, and the Ownership Interests of the remaining Members, for purposes only of such votes, consents, and participation in management, will be proportionately increased until such time, if any, as the transferee of the Economic Rights becomes a fully substituted Member.

### **DISSOLUTION AND WINDING UP OF THE COMPANY**

10.1 *Dissolution.* The Company will be dissolved on the happening of any of the following events:

(a) Sale, transfer, or other disposition of all or substantially all the property of the Company;

(b) By operation of law; or

(c) The expulsion or bankruptcy of a Member, or the occurrence of any event that terminates the continued membership of a Member in the Company, unless there are then remaining at least the minimum number of Members required by law and all the remaining Members, within 120 days after the date of the event, elect to continue the business of the Company.

10.2 *Winding Up.* On the dissolution of the Company (if the Company is not continued), the Manager must take full account of the Company's assets and liabilities, and the assets will be liquidated as promptly as is consistent with obtaining their fair value, and the proceeds, to the extent sufficient to pay the Company's obligations with respect to the liquidation, will be applied and distributed, after any gain or loss realized in connection with the liquidation has been

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

allocated in accordance with Section 3 of this Agreement, and the Members' Capital Accounts have been adjusted to reflect the allocation and all other transactions through the date of the distribution, in the following order:

- (a) To payment and discharge of the expenses of liquidation and of all the Company's debts and liabilities to persons or organizations other than Members;
- (b) To the payment and discharge of any Company debts and liabilities owed to Members; and
- (c) To Members in the amount of their respective adjusted Capital Account balances on the date of distribution; provided, however, that any then-outstanding Default Advances (with interest and costs of collection) first must be repaid from distributions otherwise allocable to the Defaulting Member.

## SECTION 11
### GENERAL PROVISIONS

**11.1 Amendments.** Amendments to this Agreement may be proposed to the Manager by any Member. The Manager shall determine whether to present a proposed Amendment to the Members for a vote. A proposed amendment will be adopted and become effective as an amendment only on the written approval of an affirmative vote of Eighty percent (80%) majority of the Unit Votes for Units held by Members.

**11.2 Governing Law.** This Agreement and the rights and obligations of the parties under it are governed by and interpreted in accordance with the laws of the State of Florida without regard to principles of conflicts of law.

**11.3 Entire Agreement; Modification.** This Agreement constitutes the entire understanding and agreement between the Members with respect to the subject matter of this Agreement and supersedes all previous written, oral, or implied agreements between the Members and the Company. No agreements, understandings, restrictions, representations, or warranties exist between or among the members other than those in this Agreement or referred to or provided for in this Agreement.

**11.4 Resolution of Controversies.**

- (a) Intent. It is the intention of the Members to bring all disputes between or among any of them to an early, efficient, and final resolution. Therefore, it is agreed that all disputes and claims, including without limitation, management, contract, quasi-contract, equitable claims, tort claims, statutory claims, or any other kind of controversy, claim or dispute shall be resolved by mediation and arbitration as provided in this section. Nothing herein shall preclude any party from applying to a court of competent jurisdiction for preliminary injunctive relief or a temporary restraining order or other preliminary relief as may be required. Each Member hereby consents to the exclusive jurisdiction of mediators, arbitrators, or any state and federal courts sitting in Florida in any action on a claim arising out of, under or in connection with this Agreement.
- (b) Mediation. Members agree to first attempt to resolve all disputes with respect to Company matters by mediation in the following manner. Mediation shall be initiated by any

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

Member by written request to Members for selection of a mediator which request (the “Mediation Request”) shall identify the matters to be mediated. Any mediation shall occur in Broward County, Florida, unless the parties agree to another location. The mediator shall be an individual selected by the Manager. Costs and expenses of mediator shall be borne by the party that initiates the mediation.

(c) Arbitration. If the Members cannot agree to mediation within sixty (60) days of the date of the Mediation Request, or if the Members are unable to reach agreement through mediation, then such dispute arising among the Members shall be resolved by arbitration in the following manner. Such arbitration shall occur in accordance with the Commercial Rules of the American Arbitration Association then in effect, in Broward County, FL unless the parties agree to another location. The arbitration panel shall consist of one (1) individual selected by the Manager. The determination of the arbitrator shall be binding upon all parties in accordance with the procedures of the Commercial Rules of the American Arbitration Association. The prevailing party shall be entitled to attorney’s fees and costs including the expense of arbitration.

11.5 *Further Effect.* The parties agree to execute other documents reasonably necessary to further effect and evidence the terms of this Agreement if the terms and provisions of the other documents are fully consistent with the terms of this Agreement.

11.6 *Severability.* If any term or provision of this Agreement is held to be void or unenforceable, that term or provision will be severed from this Agreement, the balance of the Agreement will survive, and the balance of this Agreement will be reasonably construed to carry out the intent of the parties as evidenced by the terms of this Agreement.

11.7 *Captions.* The captions used in this Agreement are for the convenience of the parties only and will not be interpreted to enlarge, contract, or alter the terms and provisions of this Agreement.

11.8 *Notices.* All notices required to be given by this Agreement will be in writing and will be effective when delivered or, if mailed, when deposited as certified mail, postage prepaid, directed to the addresses first shown above for each Member or to such other address as a Member may specify by notice given in conformance with these provisions to the other Members.

11.9 The parties acknowledge that Robert G. Schrader, Esq. has prepared this Agreement in his capacity as counsel to the Company, and each Member was advised of their right to and provided the opportunity to retain separate legal counsel of their choice to represent the Member in connection with this Agreement and any related transactions. Each Member acknowledges their right to retain separate legal counsel, and the fees and expenses of their separate counsel shall be at the expense of each Member.

*[This Space Intentionally Blank - Signature Page Follows.]*

DocuSign Envelope ID: 9E9E02D1-D8F0-4A9F-AA1F-84D3E6D4215D

IN WITNESS WHEREOF, the parties to this Agreement execute this Operating Agreement as of the date first above written.

MEMBERS:

Potter Road Consulting, Inc.

DocuSigned by:
By: Scott Kauffman
A7272CB7738446E
Scott Kauffman, President

Dated: 2/25/21

KBHS, LLC

DocuSigned by:
By: Kevin Harrington
81F1137EC335487
Kevin Harrington, Manager

Dated: 2/25/21

# **SCHEDULE A**  
 **CAPITAL CONTRIBUTIONS, NUMBER OF UNITS AND VOTING RIGHTS OF MEMBERS**  
 **(LAST UPDATED OCTOBER 14, 2022)**

| Member's Name | Member's Capital Contribution (if any) | Number of Units & Class |
| --- | --- | --- |
| Potter Road Consulting, Inc. | In kind services and other valuable consideration | 4,215,000 Class A Units |
| KBHS, LLC | In kind services and other valuable consideration | 4,215,000 Class A Units |
| Gerry David & Associates | In kind services and other valuable consideration | 500,000 Class B Units |
| MG Teixeira, Inc | $128,565 | 128,565 Class C Units |
| Reserved Netcapital Crowdfunding |  | 387,000 Class C Units |
| Neosotiz Alvarado Urena | In kind services and other valuable consideration | 35,589 Class D Units |
| Blue Coast Advisors, Inc. | In kind services and other valuable consideration | 75,000 Class D Units |
| Peter Amato | In kind services and other valuable consideration | 5,000 Class D Units |
| RLT IRA, LLC | $60,000 | 80,000 Class D Units |

| Robert Tankel | $70,000 | 87,500 Class D Units |
| --- | --- | --- |
| David Wall | $50,000 | 55,556 Class D Units |
| Dale's Coin Shop | $10,000 | 10,000 Class D Units |
| Mukesh Patel | $12,000 | 13,333 Class D Units |
| Trisha Waller | $38,000 | 42,222 Class D Units |
| Margi Patel | $25,000 | 27,778 Class D Units |
| Reserved Class D Shares |  | 122,457 Class D Units |
| Total Units (All Classes) |  | 10,000,000 |

DocuSign Envelope ID: 49A9B4FD-98D0-4D56-9D1E-621422A768D1

# **ADAPTIVE HOLDINGS, LLC**
**RESOLUTION IN LIEU OF MEETING**

The undersigned Manager of Adaptive Holdings, LLC, a Florida limited liability company (the “**Company**”) in accordance with the authority contained in the Florida Revised Limited Liability Company Act (the “**Act**”) and Section 2.1 of the Adaptive Holdings, LLC Operating Agreement (as amended, restated or otherwise modified from time to time, the “**Operating Agreement**”), hereby adopts and ratifies the following resolutions and the actions:

Whereas, the Company entered a crowdfunding agreement with NetCapital and previously created 1,070,000 Class C Units solely for the purpose of Crowdfunding on the NetCapital platform as required by NetCapital. The Crowdfunding round formally closed on February 28, 2022, with the 128,565 Units purchased and 941,435 Class C Units unissued on completion of the crowdfunding.

Whereas, the Company now wishes to create Class D units for investment and convert the unissued Class C units to Class D units. The Company entered Memoranda of Understanding with investors. The Company desires to issue the Class D Units pursuant to the Memoranda of Understanding.

The Manager having fully considered the foregoing has determined it is the best interest of the Company to adopt the following Resolutions:

1. Resolved, the Manager shall create a new class of Units to be designated Class D, with one vote per unit, for additional fundraising.
2. Resolved, the 941,435 authorized but unissued Class C Units shall be immediately converted to Class D Units and available for issuance as of March 1, 2022.
3. Resolved, the Manager is authorized to take all steps and execute all necessary documents to issue the Class D Units pursuant to the Memoranda of Understanding.
4. Resolved, that any remaining Class D Units shall remain as ‘treasury’ units for future investment.
5. Resolved, the Manager shall update Schedule A of the Operating Agreement to reflect the current Members of the Company.
6. Omnibus Resolution. The Manager is authorized to take all actions and to execute and deliver all documents as may be necessary or advisable to carry out the intent and accomplish the purposes of the foregoing resolutions and to effect any transactions contemplated thereby, and the performance of such actions and the execution and delivery of such documents shall be conclusive evidence of the approval of the Members.

DocuSigned by:

A7272CB7738446E

Date: March 1, 2022

Scott Kauffman, Managing Member

DocuSign Envelope ID: 97FEBBB4-4E74-40E7-98BC-BC5E3545655E

# **ADAPTIVE HOLDINGS, LLC**
**RESOLUTION IN LIEU OF MEETING**

The undersigned Manager of Adaptive Holdings, LLC, a Florida limited liability company (the “**Company**”) in accordance with the authority contained in the Florida Revised Limited Liability Company Act (the “**Act**”) and Section 2.1 of the Adaptive Holdings, LLC Operating Agreement (as amended, restated or otherwise modified from time to time, the “**Operating Agreement**”), hereby adopts and ratifies the following resolutions and the actions:

Whereas, the Company entered into a second crowdfunding agreement with NetCapital in September 2022 and previously created Class C Units solely for the purpose of crowdfunding, units need to be specified to accommodate the second crowdsource.

The Manager having fully considered the foregoing has determined it is the best interest of the Company to adopt the following Resolutions:

1. Resolved, that 387,000 authorized but unissued Class D Units shall be immediately converted to Class C Units and available for Netcapital crowdsource investors as of October 1, 2022.
2. Omnibus Resolution. The Manager is authorized to take all actions and to execute and deliver all documents as may be necessary or advisable to carry out the intent and accomplish the purposes of the foregoing resolution and to effect any transactions contemplated thereby, and the performance of such actions and the execution and delivery of such documents shall be conclusive evidence of the approval of the Members.

DocuSigned by:  
A7272CB7738440E...  
Scott Kauffman, Managing Member

Date: October 1, 2022

**Attachment 5:** `pitchdeck.pdf`

# PROTEIN QUICK

ALL PROTEIN...NO SHAKE

![img-0.jpeg](img-0.jpeg)

3 ET 0X 168 MI

3 ET 0X 168-3

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

ALL PROTEIN...NO SHAKE

**THE OPPORTUNITY**

*With plenty of fat, sugar, carbs and calories available within the typical diet, then why - when we want to add protein - do we have to “double up” on these items when we reach for a protein bar, shake, or yogurt?*

*Why can’t we just have the protein?*

**Now we can - the answer is Protein Quick.**

![img-3.jpeg](img-3.jpeg)

ALL PROTEIN...NO SHAKE

# WHAT IS PROTEIN QUICK?

![img-4.jpeg](img-4.jpeg)

Protein Quick:

- Provides up to 20 grams of a proprietary blend of collagen, whey and pea proteins in 2 ounces of liquid
- Zero fat, zero sugar, zero caffeine, and zero carbohydrates
- Ready to drink - requires no mixing or refrigeration
- Minimal ingredients - only 90 calories for 20 grams of protein
- Packaged in a 5-Hour Energy size 2 ounce bottle
- Convenient, portable, and ready
- Available to anyone, anywhere, anytime

It's Just the Protein.

![img-5.jpeg](img-5.jpeg)

ALL PROTEIN...NO SHAKE

**ON THE TEAM**

![img-6.jpeg](img-6.jpeg)

*“Protein Quick has everything my biggest successes have all had - an ingenious solution to a common problem, a huge market, and a fantastic management team. Everybody needs protein everyday and my distribution network can get this product where it needs to be - everywhere.”*

**Kevin Harrington**

Original “Shark Tank” Shark and Protein Quick Partner

![img-7.jpeg](img-7.jpeg)

*“Protein Quick has the same potential I first saw in Celsius Energy Drink. Delivering a great-tasting blend of 3 top proteins in just 2 ounces of liquid is a terrific achievement. Doing all that with no sugar, fat, carbs or high fructose corn syrup is a game-changer. The market opportunities are widespread and significant”.*

**Gerry David**

Former CEO of Celsius Holdings, Inc. (Nasdaq: CELH) and Protein Quick Partner

*(Celsius Energy Holdings Inc. currently has an $8 billion dollar market cap on NASDAQ)*

PROTEIN QUICK

ALL PROTEIN...NO SHAKE

THE PROBLEM

![img-8.jpeg](img-8.jpeg)

Most protein sources such as bars, shakes, powders, yogurts, protein-infused water:

- Contain high amounts of fat, sugar and/or carbs
- Are loaded with calories - making protein synonymous with “meal replacement”
- Require drinking large quantities of liquid
- Require mixing or refrigeration

Using these products is like putting a piece of broccoli into a hot fudge sundae...WHY CAN'T WE JUST HAVE THE PROTEIN??

![img-9.jpeg](img-9.jpeg)

ALL PROTEIN...NO SHAKE

**THE PROBLEM & SOLUTION IN ONE CHART**

## **Ready-to-Drink Protein Comparison**

| BRAND | PACKAGE SIZE | PROTEIN PER 20z | TOTAL CALORIES | TOTAL CARBS (g) | TOTAL SUGAR (g) | TOTAL FAT (g) |
| --- | --- | --- | --- | --- | --- | --- |
| Protein Quick | 20z | 20g | 90 | 0 | 0 | 0 |
| Ensure HP Milk Chocolate | 80z | 4g | 160 | 19 | 4 | 2 |
| Boost High Protein Rich Chocolate | 80z | 5g | 240 | 28 | 15 | 4 |
| Pure Protein Vanilla | 110z | 5.5g | 140 | 6 | <1 | 2 |
| Premier Protein Chocolate | 110z | 5.5g | 160 | 5 | 1 | 3 |
| Muscle Milk Chocolate | 110z | 4.5g | 160 | 8 | 0 | 4.5 |

## **Protein Bar Comparison**

| BRAND | PACKAGE SIZE | TOTAL PROTEIN | TOTAL CALORIES | TOTAL CARBS (g) | TOTAL SUGAR (g) | TOTAL FAT (g) |
| --- | --- | --- | --- | --- | --- | --- |
| Protein Quick | 1 Bottle | 20g | 90 | 0 | 0 | 0 |
| CLIF Chocolate Chip | 1 Bar | 9g | 250 | 45 | 21 | 5 |
| Think Thin Chunky Peanut Butter | 1 Bar | 20g | 240 | 23 | 0 | 10 |
| ONE Chocolate Brownie | 1 Bar | 20g | 230 | 23 | 1 | 8 |
| Quest Chocolate Brownie | 1 Bar | 20g | 180 | 23 | 1 | 6 |
| Pure Protein Chocolate Deluxe | 1 Bar | 21g | 180 | 17 | 3 | 4.5 |

![img-10.jpeg](img-10.jpeg)

ALL PROTEIN...NO SHAKE

**INGREDIENT COMPARISON**

## **Ingredient Comparison**

| BRAND | PACKAGE SIZE | CONTAINS COLLAGEN, WHEY & PEA PROTEIN | NUMBER OF INGREDIENTS IN ADDITION TO WATER AND PROTEIN* |
| --- | --- | --- | --- |
| Protein Quick | 2oz | YES | 8 |
| Ensure HP Milk Chocolate | 8oz | NO | 43 |
| Boost High Protein Rich Chocolate | 8oz | NO | 41 |
| Pure Protein Chocolate Deluxe | 1 Bar | NO | 41 |
| Premier Protein Chocolate | 11oz | NO | 36 |
| Pure Protein Vanilla | 11oz | NO | 35 |
| Muscle Milk Chocolate | 11oz | NO | 25 |
| ONE Chocolate Brownie | 1 Bar | NO | 21 |
| CLIF Chocolate Chip | 1 Bar | NO | 17 |
| Think Thin Chunky Peanut Butter | 1 Bar | NO | 14 |
| Quest Chocolate Brownie | 1 Bar | NO | 9 |

*Includes every ingredient presented on label

![img-11.jpeg](img-11.jpeg)

ALL PROTEIN...NO SHAKE

THE SOLUTION

![img-12.jpeg](img-12.jpeg)

The Solution is Protein Quick:

- Proprietary triple blend of collagen, whey and pea proteins
- Zero fat, zero sugar, zero caffeine & zero carbohydrates
- Minimal Ingredients - only 90 calories in 20 grams of protein
- Only 2 ounces of liquid which allows for easy and quick consumption
- Ready to drink - requires no mixing or refrigeration
- Conveniently ready when you are - available to anyone, anywhere, anytime.
- Instantly adds protein to any meal or snack for better nutritional balance

Protein Quick is JUST THE PROTEIN.

PROTEIN QUICK

ALL PROTEIN...NO SHAKE

INGREDIENTS

![img-13.jpeg](img-13.jpeg)

![img-14.jpeg](img-14.jpeg)

# Nutrition Facts

1 serving per container

Serving size 1 Bottle (2 fl.oz)

Amount per serving

Calories 90

|  | % Daily Value* |
| --- | --- |
| Total Fat 0g | 0% |
| Sodium 80mg | 4% |
| Total Carbohydrate 0g | 0% |
| Total Sugar 0g | 0% |
| Includes 0g Added Sugars | 0% |
| Protein 20g |  |

Not a significant source of saturated fat, trans fat, cholesterol, dietary fiber, vitamin D, calcium, iron and potassium

*The % Daily Value (DV) tells you how much a nutrient in a serving of food contributes to a daily diet. 2,000 calories a day is used for general nutrition advice.

![img-15.jpeg](img-15.jpeg)

ALL PROTEIN...NO SHAKE

# PROTEIN BENEFITS

![img-16.jpeg](img-16.jpeg)

Benefits of Protein:

Whey:

- Enhances muscle growth
- Improves strength
- Promotes recovery

Collagen:

- Good for hair, skin and nails
- Strengthens bone density
- Supports wound healing

Pea:

- Easily digestible
- Anti inflammatory
- Promotes fullness

Protein Quick's proprietary triple blend delivers the benefits of all three proteins in one bottle.

Source: Gerald A. Cox II M.D.
Board Certified in Internal Medicine

![PROTEIN QUICK logo]()

ALL PROTEIN...NO SHAKE

PROTEIN AWARENESS AND DEMAND

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

![img-8.jpeg](img-8.jpeg)

## The protein market is booming:

"The global protein supplements market size was valued at USD 20.47 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2021 to 2030. "The U.S. was the largest market in the North American region for protein supplements, with total revenue of USD 8.44 billion in 2021. Increasing consumers' acceptance toward food supplementation, the availability of world-class athletics and fitness infrastructure, high disposable income, and positive government outlook is expected to augment the demand for protein supplements"

https://www.grandviewresearch.com/industry-analysis/protein-supplements-market

![Protein Quick logo featuring a stylized 'P' and 'P' inside a circle with the word 'PROTEIN' and 'QUICK' below it.]()

# ALL PROTEIN...NO SHAKE

# **MARKET OPPORTUNITY**

![img-9.jpeg](img-9.jpeg)

Widespread knowledge of protein:

- Everybody needs protein everyday
- Protein content highlighted on consumer packaging

Easily relatable common uses:

- Instantly adds protein to any meal or snack for better nutritional balance
- Helps everyone be a little healthier everyday by easily adding protein to their diet anytime, anywhere
- Available before, during, or after a workout or whenever protein is needed

Not solely dependent on consumer markets:

- Medical patient groups who need protein but cannot tolerate large quantities of liquid or calories:
  - A few examples are Chron's, Colitis, Bariatric & Chemotherapy
- Disaster relief / Humanitarian / Military - Product is ready to drink requiring no refrigeration making it available to anyone, anyplace, anywhere

Looks terrific in head-to-head comparisons against other protein sources & is in a market with a large growing demand.

![img-10.jpeg](img-10.jpeg)

ALL PROTEIN...NO SHAKE

# DISTRIBUTION PLAN

![img-11.jpeg](img-11.jpeg)

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

Walgreens Walmart

![img-14.jpeg](img-14.jpeg)

![img-15.jpeg](img-15.jpeg)

![img-16.jpeg](img-16.jpeg)

![img-17.jpeg](img-17.jpeg)

![img-18.jpeg](img-18.jpeg)

![img-19.jpeg](img-19.jpeg)

![img-20.jpeg](img-20.jpeg)

Protein Quick was specifically formulated to maximize distribution

- Reduce to 10 grams and sell in Dollar Stores
- Offer a 15 and 20 gram version for online and retail use
- Use stevia or monk fruit for distribution in Whole Foods and similar outlets

Online

- Perfect product for subscription model as it can be used everyday
- Customer Acquisition Cost amortized over several months of reorders
- Management team has access to influencers & micro-influencers

Retail

- Multiple price points by adjusting amount of protein (10 to 20 grams)
- Ability to offer exclusives such as flavors, protein amount, protein types, and/or ingredients
- Management team has access to buyers and decision makers

Hospital / Medical / Military

- Access to large distribution networks already selling into these channels
- Wide ranging sampling program - product sells itself

Protein Quick will carry an MSRP between $1-$3 per bottle (based on protein content) & will be available everywhere. It will be positioned as an affordable and convenient way to quickly access protein

![Protein Quick logo featuring a stylized 'P' and 'Q' inside a circle with the word 'PROTEIN' and 'QUICK' below it.]()

ALL PROTEIN...NO SHAKE

## **WHY CROWDSOURCING? WHAT IS THE USE OF FUNDS?**

![img-21.jpeg](img-21.jpeg)

### **Protein Quick is Perfect for Crowdsourcing**

- Every potential investor is also a potential customer
- Investor-only product discounts
- Every investor product referral adds value to their investment
- Investors can actively “use” their investment everyday which will promote product awareness and serve as free advertising

### **Use of Funds**

- Advertising, Advertising, Advertising
- Inventory to support online launch
- Customer acquisition campaigns
- Provide samples to targeted distribution channels in online, retail, medical, and military/government

**Protein Quick allows investors to join an original Shark and the former CEO of Celsius Energy Drink right from the beginning.**

![Protein Quick logo featuring a stylized 'P' and 'Q' inside a circle with the word 'PROTEIN' and 'QUICK' below it.]()

ALL PROTEIN...NO SHAKE

PROVEN LEADERSHIP

# Protein Quick Leadership

- Has created billions in revenue with multiple successful product launches
- Has the contacts to secure distribution necessary for growth

![img-22.jpeg](img-22.jpeg)

![img-23.jpeg](img-23.jpeg)

# Kevin Harrington

An original "Shark" on the hit TV show Shark Tank, the creator of the infomercial, pioneer of the As Seen on TV brand, and co-founding board member of the Entrepreneur's Organization-Kevin Harrington has pushed past all the questions and excuses to repeatedly enjoy 100X success. His legendary work behind-the-scenes of business ventures has produced well over $5 billion in global sales, the launch of more than 500 products, and the making dozens of millionaires. Twenty of his companies have each topped $100 million in revenue.

![img-24.jpeg](img-24.jpeg)

# Gerry David

Gerry is the former CEO of Celsius Holdings, Inc. (NASDAQ: CELH) a leading fitness drink company. During his tenure, Gerry took Celsius from the "pink sheets" to NASDAQ by increasing revenues 350% and the share price by 1,800%. He expanded sales internationally in Singapore, Hong Kong, Brazil, Finland, and the Middle East and manufacturing in Germany, China, and the United States. Gerry has management experience in public and private companies ranging from startup to turnaround to growth. He has launched companies and products spanning 70+ countries.

![img-25.jpeg](img-25.jpeg)

# Scott Kauffman

Scott has a strong history of helping launch and scale disruptive companies with very successful exits. TracFone Wireless and Soothe Wellness are two examples. Scott joined TracFone as a startup and helped create and execute the plan which would eventually become a multi-billion dollar business. He assisted with the sale of the company to Carlos Slim - once the world's richest man. Scott was part of the launch and scaling of Soothe Wellness - the largest on-demand provider of wellness services - and assisted in the company's sale to Riverside Capital. Scott is an American Express Company, Inc. alum and has experience in organizations ranging from Fortune 50 to startup.

![img-26.jpeg](img-26.jpeg)

ALL PROTEIN...NO SHAKE

**EXPERIENCED TEAM**

![img-27.jpeg](img-27.jpeg)

**Steve Mandell**

Steve Mandell is an entertainment and sports attorney who specializes in the field of entertainment, media, sponsorship, entrepreneurship, licensing and brand development.

Steve is the founder of Gameplan Enterprises. The company is well known for brand development, product and sales ideation, marketing and distribution. Through direct licensing programs, Steve has developed products for the NFL, MLB, Caesars and others and has had nationwide distribution relationships with big box retailers such as Walmart, Target and specialty retailers.

Steve has served as an Executive Producer on many projects, placing several with well recognized television networks as well as other developments in streaming, podcasts and digital branding. He has structured deals with numerous professional sports teams, media networks and publishing companies. As an expert in licensing and brand and product development, Steve speaks at various entrepreneur conferences and universities and has collaborated with major sports and entertainment celebrities.

![img-28.jpeg](img-28.jpeg)

**Steve McCullough**

Steve is the Vice President of Business Development for BevSource and specializes in scaling and creating operations strategies for his clients. He started his career at Proctor & Gamble trading futures and working in the supply chain of the Food Division. He then was a commercial site manager for a wet and dry dog food operation for MARS. Steve moved to British Columbia and began working at Mission Hill Family Estate Winery and was a member of a small team that developed and launched Mike's Hard Lemonade for the Mark Anthony Group in Canada and the U.S. Steve was Vice President of Operations for North America and oversaw all wine, RTD and beer operations for Mark Anthony Group.

![img-29.jpeg](img-29.jpeg)

ALL PROTEIN...NO SHAKE

**MEDICAL ADVISORY BOARD**

![img-30.jpeg](img-30.jpeg)

**Conrad A. Cox M.D., FACP, FACG, AGAF**

Dr. Cox is a board certified gastroenterologist practicing in Southern California. Dr. Cox is the recipient of fellowship distinction from the American College of Physicians, American College of Gastroenterology, and the American Gastroenterologic Association, honors bestowed in recognition of significant professional achievement and superior competence within the field of Medicine and Gastroenterology. Dr. Cox is Chairman of the Department of Gastroenterology at Lakewood Regional Medical Center and Assistant Clinical Professor of Medicine at Western University of Health Sciences.

![img-31.jpeg](img-31.jpeg)

**Gerald A. Cox, II, M.D.**

Dr. Cox is board-certified by the American Board of Internal Medicine, American Board of Artificial Intelligence in Medicine, and is a fellow in the Preventative & Lifestyle Medicine program at Loma Linda University Health in Southern California. Dr. Cox joined Loma Linda University where he finished his residency and stayed on as faculty for Chief Resident of Quality Improvement and Patient Safety, earning his Lean Six Sigma Yellow Belt certification. With over fifteen medical publications, Dr. Cox continues to serve his patients while obtaining his Master’s in Public Health at Loma Linda University. His emphasis in population medicine and obesity medicine serves as the bridges for health, wellness, and fitness both domestically and internationally.

![img-32.jpeg](img-32.jpeg)

ALL PROTEIN...NO SHAKE

Proteinquick.com

*No affiliation with the owner of the registered trademark

**Attachment 6:** `otherfinancial.pdf`

# Record Ownership and Voting Agreement

This Record Ownership and Voting Agreement (this “Agreement”) is entered into as of the date of electronic consent by the parties using the website www.netcapital.com (the “Portal”), by and among NetCapital Funding Portal Inc., a Delaware corporation (“NetCapital”), MG Teixeira Inc, a Connecticut corporation (the “Record Owner”), and the undersigned investor (“Investor”).

The Record Owner has agreed to open and maintain the Account (as defined below) for Investor and to provide other services to Investor in connection with the Account. This Agreement sets out, among other things, the terms under which the Record Owner will provide those services to Investor and the arrangements that will apply in connection with those services.

In consideration of the mutual promises herein made and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

## 1. Interpretation

### 1.1 Definitions

In this Agreement:

- • “Account” means the account opened by the Record Owner and consisting of the beneficial interests in any Shares that were offered for sale by the Issuer on the Portal and purchased by Investor.
- • “Account Balance” means, in relation to the Account, the number of Shares of each Issuer beneficially owned by Investor, including all of Investor’s rights to and interest in the balance from time to time on that Account.
- • “Business Day” means a weekday that is not a federal holiday.
- • “Escrow Agent” means Boston Private Bank and Trust Company.
- • “Fees” means the fees and charges referred to in clause 5.1 of this Agreement.
- • “Issuer” means each issuer of the Shares.
- • “Shares” means the beneficial interests in the uncertificated shares of common stock or preferred stock or the units of convertible debt, limited liability company membership interests or limited partnership interests that were beneficially purchased by Investor on the Portal.
- • “Termination Date” means the date on which this Agreement is terminated by the Record Owner or by Investor as permitted hereunder.
- • “Transfer Agent” means Equity Stock Transfer LLC, or a successor transfer agent.
- • “Withdrawal Date” means the date referred to in clause 2.2 of this Agreement.

### 1.2. Headings

The headings in this Agreement do not affect its interpretation.

### 1.3. Singular and plural

References to the singular include the plural and vice versa.

## 2. Account

### 2.1. Opening Account

The Record Owner shall open and maintain the Account for the beneficial interests in the Shares beneficially held by Investor.

### 2.2. Deposits and withdrawals

The balance of Investor's Account shall reflect the Shares beneficially held by Investor. A deposit of Shares is made into Investor's Account when the Escrow Agent sends payment funds to the Issuer or a seller of Shares, as the case may be, and the Record Owner receives a record from the Transfer Agent of the number of Shares that Investor beneficially holds. A withdrawal occurs when the Record Owner receives notice from the Transfer Agent that the Shares have been beneficially sold or transferred.

### 2.3. Reports

Reports relating to deposits into and withdrawals from the Account and the Account Balance will be available to Investor daily by means of a section on the Portal to which Investor may log in.

## 3. Services of the Record Owner

### 3.1. General

Investor and the Record Owner understand and agree that the Record Owner will be the legal but not the beneficial owner of the Shares.

### 3.2. Ownership of Securities

The Record Owner will be the sole holder of legal title to the Shares while Investor will hold beneficial ownership of the Shares. The Record Owner will be the sole record holder of the Shares on the books and records of the Issuer. The sole dispositive record of Investor's beneficial ownership of the Shares will be in the books and records of the Transfer Agent. Investor shall be entitled to all proceeds of the sale of Shares, net of fees and commissions.

### 3.3. Voting of Securities

Prior to the Withdrawal Date, at every meeting of the equity or interest holders of the Issuer called with respect to any matter, and at every adjournment or postponement thereof, and on every action or approval by written consent or resolution of the equity or interest holders of the Issuer, Investor agrees that the Record Owner shall vote Investor's Shares, in the event Investor's Shares contain voting rights, in a manner reasonably determined to be in the best interest of Investor.

### 3.4. Insurance

The Record Owner and Investor understand and agree that the Record Owner may maintain insurance in support of the Record Owner's obligations under this Agreement, including covering any loss of the Shares. In the event that the Record Owner elects to reduce, cancel or not to renew such insurance, the Record Owner may give Investor prior written notice as follows: in the case of a reduction, the Record Owner may endeavor to provide such notice at least 30 days prior to the effective date of the reduction; and in the event of a cancellation or expiration of the insurance without renewal, the Record Owner may provide such notice at least 30 days prior to the last day of insurance coverage. Investor acknowledges that any such insurance is held for the Record Owner's benefit and not for the benefit of Investor, and that Investor may not submit any claim under the terms of such insurance.

### 3.5. Notice of Changes

The Record Owner may notify Investor promptly in writing of the following: (i) the Record Owner receives notice of any claim against the Account other than a claim for payment of safe custody or administration permitted by this Agreement; (ii) the Record Owner otherwise fails to comply with any of the provisions of this Agreement; or (iii) any of the Record Owner's representations and warranties in clause 4 shall cease to be true and correct.

## 4. Obligations of the Portal

NetCapital shall notify or cause to be notified each Issuer of Shares of the identity of the Record Owner of the Shares of such Issuer.

## 5. Representations and Warranties

### 5.1 Investor's representations

Investor represents and warrants that:

- Investor is the beneficial owner of the Shares;
- Investor has all necessary authority, powers, consents, licenses and authorizations and has taken all necessary action to enable Investor lawfully to enter into and perform Investor's duties and obligations under this Agreement; and
- This Agreement and the obligations created under it are binding upon Investor and enforceable against Investor in accordance with its terms (subject to applicable principles of equity) and do not and will not violate the terms of the

rules or any order, charge or agreement by which Investor is bound.

## 5.2 The Record Owner's representations and warranties

The Record Owner represents and warrants to Investor that:

- this Agreement has been duly authorized, executed and delivered on the Record Owner's behalf and constitutes the Record Owner's legal, valid and binding obligation; and
- the execution, delivery and performance of this Agreement by the Record Owner does not and will not violate any agreement by which the Record Owner is bound.

## 6. Fees and Expenses

### 6.1 Fees

The Record Owner's fees will be paid in accordance with the fee agreement that has been executed by the Portal and the Record Owner. There are no fees payable by the Investor.

## 7. Scope of Responsibility

### 7.1 Exclusion of liability

The Record Owner may use reasonable care in the performance of its duties under this Agreement and will only be responsible for any loss or damage suffered by Investor as a direct result of any gross negligence, fraud or willful misconduct on the Record Owner's part in the performance of the Record Owner's duties, and in which case the Record Owner's liability will not exceed the aggregate market value of the Shares at the time of such gross negligence, fraud or willful misconduct.

### 7.2 Force majeure

Neither the Record Owner nor any of the Record Owner's directors, employees, agents or affiliates shall incur any liability to Investor if, by reason of any provision of any present or future law or regulation of any governmental or regulatory authority or stock exchange, or by reason of any act of God or war or terrorism, pandemic or other circumstances beyond the Record Owner's control, the Record Owner is prevented or forbidden from, or would be subject to any civil or criminal penalty on account of, or are delayed in, doing or performing any act or thing which by the terms of this Agreement it is provided shall be done or performed and accordingly the Record Owner does not do that thing or does that thing at a later time than would otherwise be required.

### 7.3 Exculpation in respect of offering documents

The Record Owner and its officers, directors, employees, agents and sub-record owners, if any, shall not be responsible or liable in any manner for any recitals, statements, representations or warranties made by any person other than the Record Owner including, but not limited to, statements contained in any material relating to

the offering and sale of Shares.

## 8. Termination

### 8.1 Method

The Record Owner may terminate this Agreement by giving not less than 60 Business Days' prior written notice to Investor and the Portal, provided that the Record Owner may terminate this Agreement immediately on written notice in the event that any of the statements set out in clause 4.1(a)-(c) become untrue. Clauses 6, 7.2 and 9 shall survive termination of this Agreement.

Investor may terminate this Agreement by giving not less than 60 Business Days' prior written notice to the Record Owner and the Portal in the event that the Record Owner is found, in a final determination not subject to appeal, to have committed an act of gross negligence or willful misconduct in respect of its duties as Record Owner hereunder.

### 8.2 Existing rights

Termination shall not affect rights and obligations then outstanding under this Agreement, which shall continue to be governed by this Agreement until all obligations have been fully performed.

### 8.3 Website

Effective upon the Termination Date, Investor's use of the Website will automatically be terminated and Investor will be permitted no further access to the Website until Investor has purchased other Shares.

## 9. Notices and Recordkeeping

### 9.1 Form

A notice or other communication given to Investor under or in connection with this Agreement may be given using the contact information Investor provided to the Portal.

### 9.2 Method of transmission

Any notice or other communication required to be in writing may be delivered by email, receipt confirmed, to the Portal or the Record Owner at the following email addresses:

If to the Record Owner:

MG Teixeira Inc
mannyteixeria@gmail.com

If to the Portal:

Netcapital Funding Portal Inc

## 10. General

### 10.1 No advice

The Record Owner’s duties and obligations under this Agreement do not include providing Investor with investment advice. In asking the Record Owner to open and maintain the Account, Investor does so in reliance upon Investor’s own judgment and the Record Owner shall not owe to Investor any duty to exercise any judgment on Investor’s behalf as to the merits or suitability of any deposits into, or withdrawals from, an Account.

### 10.2 Assignment

This Agreement is for the benefit of and binding upon the parties and their respective heirs, successors and assigns. Investor may not assign, transfer or encumber, or purport to assign, transfer or encumber, Investor’s right, title or interest in relation to any Account or any right or obligation under this Agreement or any part of any of the foregoing unless the Record Owner otherwise agrees in writing.

### 10.3 Amendments

Any amendment to this Agreement must be agreed in writing and be signed by all parties hereto. Unless otherwise agreed, an amendment will not affect any legal rights or obligations that may already have arisen.

### 10.4 Partial invalidity

If any of the clauses (or part of a clause) of this Agreement becomes invalid or unenforceable in any way, the validity of the remaining clauses (or part of a clause) will not in any way be affected or impaired.

### 10.5 Entire agreement

This document represents the entire agreement of the parties, and supersedes any previous agreements and understandings among the parties relating to the subject matter of this Agreement.

### 10.6 Joint and several liability

Investor’s responsibilities under this Agreement are joint and several if applicable.

### 10.7 Counterparts

This Agreement may be executed in any number of counterparts each of which when

executed and delivered is an original, but all the counterparts together constitute the same agreement.

### 10.8 Governing Law and Jurisdiction

This Agreement is governed by and construed in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles. The parties agree that the United States District Court for the Delaware shall have sole and exclusive jurisdiction to determine any issues arising under this Agreement, and all Parties to this Agreement agree to submit to personal jurisdiction in Wilmington, Delaware, for the purpose of resolving any issue arising under or related to this Agreement.

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Adaptive Holdings, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** FL

**Date of Organization:** 02-25-2021

**Physical Address:** 4581 Weston Road, Weston, FL, 33331

**Issuer Website:** http://www.proteinquick.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** NetCapital Funding Portal Inc.

**Intermediary CIK:** 0001669191

**Intermediary File Number:** 007-00035

**Intermediary CRD Number:** 283596

### Offering Information

**Compensation to Intermediary:** Up to 4.9% of amount raised for a successful offering and a listing fee of up to $10,000

**Financial Interest in Issuer:** None.

**Type of Security Offered:** Other

**Other Description of Security:** Class C units

**Number of Securities Offered:** 7875

**Price per Security:** $1.27

**Method for Determining Price:** The price of the Securities was determined solely by the management and bears no relation to traditional measures of valuation such as book value or price-to-earnings ratios. We expect that any future valuation will take the same approach.

**Target Offering Amount:** $10,001.25

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $375,358.66

**Deadline to Reach Target Amount:** 04-28-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 2

**Total Assets (Most Recent Fiscal Year):** $174,388.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $151,471.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-173,952.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, 1V, PR, VI

### Signatures

**Issuer:** Adaptive Holdings, LLC

**Signature:** Scott Kauffman

**Title:** Principal Executive Officer

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**Signature:** Scott Kauffman

**Title:** Principal Executive Officer

**Date:** 03-06-2023

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**Signature:** Scott Kauffman

**Title:** Principal Financial Officer

**Date:** 03-06-2023

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**Signature:** Scott Kauffman

**Title:** Principal Accounting Officer

**Date:** 03-06-2023

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**Signature:** Scott Kauffman

**Title:** Board Member

**Date:** 03-06-2023