# EDGAR Filing Document

**Accession Number:** 0001880364
**File Stem:** 0001670254-23-000206
**Filing Date:** 2023-3
**Character Count:** 99376
**Document Hash:** 9488a0a4b0c1c38e388b5d9ec2ed4b3b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000206.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001670254-23-000206

**CONFORMED SUBMISSION TYPE**: C-AR

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Doorvest Inc.
- **CENTRAL INDEX KEY:** 0001880364
- **IRS NUMBER:** 842539407
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** C-AR
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-29204
- **FILM NUMBER:** 23710892

**BUSINESS ADDRESS:**
- **STREET 1:** 577 HOWARD ST
- **STREET 2:** FL 3
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 577 HOWARD ST
- **STREET 2:** FL 3
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105

## Ex-99

### Attached PDF Documents

**Attachment 1:** `document_1.pdf`

WEFUNDER

# Annual Report

## Cover Page

Name of issuer:
Deornet Inc.

Legal status of issuer:

Name: Corporation

Jurisdiction of Investment/Organization: OK

Date of organization: 2/26/2009

Physical address of issuer:
555 Market Street
Suite 200
San Francisco CA 94104

Website of issuer:
http://deornet.com

Name of intermediary through which the offering will be conducted:
Wefunder Portal LLC

CIA number of intermediary:
0009000054

ISO file number of intermediary:
0007000031

CFO number of publication of intermediary:
285505

Current number of newspaper:
37

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total assets | $25,000,000.00 | $4,223,106.00 |
| Cash & Cash Equivalents | $5,777,000.00 | $7,003,000.00 |
| Accounts Receivable | $13,763.00 | $0.00 |
| Short-term Debt | $11,365,000.00 | $1,076,200.00 |
| Long-term Debt | $137,007.00 | $33,944.00 |
| Short-term Debt | $19,666,500.00 | $1,835,784.00 |
| Cost of Goods Sold | $10,978,540.00 | $1,904,500.00 |
| Tax on Sale | $17,500.00 | $1,600.00 |
| Net Income | ($2,910,410.00) | ($479,977.00) |

Select the jurisdiction in which the issuer intends to offer the securities:
AL, AA, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NM, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI

## Offering Statement

Request to each question in each paragraph of this part. Set forth each question and any notes that are notwithstanding herein, at this capacity. If disclosure is required to any question is requested to issue an unsecured question, it is not necessary to report the disclosure. If a question in order of questions is inapplicable to the response is available elsewhere in the form, either case that it is inapplicable, include written reference to the response to disclosure, or with the question or material questions.

By very much and precise in answering all questions, there will not be a complete answer on that day, we can be willing to take the announcement described. Do not discuss any future performance or other anticipated events where you have a reasonable basis to believe that it will actually occur within the reasonable limits. If any answer requiring significant information is necessary, may cross, incomplete or misleading. The Company, its management and principal shareholders may be liable to an answer based on that information.

### THE COMPANY

1. Name of issuer:
Deornet Inc.

2. Has the issuer or any of its subsidiaries or previously listed to comply with the ongoing reporting requirements of Rule 102 of Regulation C (see Section 2)?
☑ Yes ☐ No

Reason for failure to comply:
-igniting annual report later/pm

### DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any person) managing a similar status or performing a similar function of the issuer:

| Director | Principal Occupation | New Employee | Year Ended as Director |
| --- | --- | --- | --- |
| Will May | Welfare Control Partner | Michael Capital | 2019 |
| Brent Muni | Principal | HRS | 2020 |
| Justin Kewell | CTO | Deornet | 2019 |
| Andrew Luong | CEO | Deornet | 2019 |

For three years of business experience, refer to Appendix D: Director & Officer Work History

### OFFICERS OF THE COMPANY

5. Provide the following information about each officer (and any person) managing a similar status or performing a similar function of the issuer:

| Officer | Position/Head | Year Ended |
| --- | --- | --- |
| Andrew Luong | President | 2019 |
| Andrew Luong | CEO | 2019 |
| Andrew Luong | CFO | 2019 |
| Andrew Luong | Secretary | 2019 |
| Andrew Luong | Treasurer | 2019 |

For three years of business experience, refer to Appendix D: Director & Officer Work History

NOTE: The following information is the purpose of this document. It is not a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor a representation of the company's position, nor

### PRINCIPAL SECURITY HOLDERS

6. Provide the name and name of the issuer, as of the most recent publication.

state, who is the sometime owner of (a) present as most of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

Name of Holder: Mr. Jack Cates
of Securities: 4-6-1 Series
Sole/SAS: 0 Series 1 Series
H: 1 Series Seed: 2 Series Seed: 01-122
3

MEMBER OF ISSUE: 1. The issuer represents the position of the issuer and is not a member of the issuer's shareholding structure.

A member of the issuer's shareholding structure is a member of the issuer's shareholding structure. The issuer is a member of the issuer's shareholding structure. The issuer is a member of the issuer's shareholding structure.

# BUSINESS AND ANTICIPATED BUSINESS PLAN

1. Securities is based on the business of the issuer and the anticipated business plan of the issuer. For a description of our business and our business plan, above refer to the attached Appendix A, Business Description & Plan.

The issuer's shareholding structure is a member of the issuer's shareholding structure. The issuer is a member of the issuer's shareholding structure. The issuer is a member of the issuer's shareholding structure.

# RISK FACTORS

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.

2. Securities is based on the business of the issuer's shareholding structure. Investment in the Company involves high uncertainty and a broad variety of significant risks. Any investment in the Company (and sometimes referred to herein as 'net', 'net', 'net', or 'Company') involves a high degree of risk and should only be considered by those who can afford the risk of their entire investment. This risk relates to the various risk factors described below, among others. Each potential investor should consider all of the information provided regarding the Company as well as the following risk factors, in addition to the other information listed in the Company's Form C. The following risk factors are not intended, and shall not be deemed to be a complete description of the commercial and other risks inherent in any investment in the Securities.

Any valuation at this stage is difficult to assess and may be significantly inaccurate. The valuation for the offering was established by the Company. Unlike publicly listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially perhaps and pre-commercial enterprises, is not a risk. Company is difficult to assess and you need to be overhauled for your investment. Any projections or forward-looking statements regarding our anticipated financial or operational performance are hypothetical only and are based on management's estimate of the likely results of our operations and will not have been reviewed by our independent accountants. These projections will be based on assumptions which management believes are reasonable, but which may be largely inaccurate. Some assumptions invariably will not materialize exactly as predicted (or at all) due to serious reasons, such as unanticipated events and circumstances. Therefore, actual results of operations are virtually certain to vary from such projections, and such variations may be material. Any projected results cannot be guaranteed.

Meaning supply - Deemed, requires rental homes one by one via wholesalers, which as someone not in the space here has a wouldn't state very well or provide unique differentiation. However, this is basically the strategy that Invitation Homes look at the way to a valuation of $100. Their supply approach is two-pronged: 1) Deemed/PLS assisted by internal leasing that analyses 250 homes per day and plugs into an Internal 500 that surfaces only those that meet customer criteria, and 2) wholesalers that are such via partnerships and other than their network.

Low-frequency marketplace - No guarantee of trading supply quickly enough to account for the fact that people are unlikely to use this service often. This is mitigated by Deemed's reasonable high takeaway and providing a strong user experience through quickly buying inventory from wholesalers, making highly on S&S, and allowing buyers enough agency to follow through in the purchasing decision.

Lack of customer lack in - As of now, there's no market reason why a customer interested in rental property investing couldn't buy a property from PLS + this a property manager. It will take a very long time to build a durable brand, but it is a fact on people being too busy to want to do this extra work, not forcing a strong enough user experience that they might become repeat buyers (and sellers) through Deemed in the future.

Competition - There are platforms out there like Oneflick and Purchase that play in this space. For simply, we think this market is gigantic enough that there can be multiple winners. Rootback comes a need for rootbubbles like Invitation Homes and American Homes. I think to have a platform to buy an old large books at homes. We like that business model as well, but it's a button signal that the founders of Invitation Homes have invested in Deemed, seeing also a significant opportunity to provide a fully-managed service to individuals with rented real estate knowledge. Investors should however keep an eye on the market value for this type of service as near-to-backs spring up.

The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. A neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly dilated, with no secondary market on which to sell them. The Securities are not legally intended, have no ownership rights, have no rights to the Company's assets or profits and have no voting rights or ability to invest the Company in its actions.

Our future success depends on the efforts of a small management team. The loss of concerns of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we respect to successfully grow our business.

MEMBER OF ISSUE: 1. The issuer's shareholding structure is a member of the issuer's shareholding structure. The issuer is a member of the issuer's shareholding structure.

# Ownership and Capital Structure

# DESCRIPTION OF ISSUER'S SECURITIES

1. What other securities as sources of securities of the issuer are outstanding? Based on the material terms of any other outstanding securities in the case of securities of the issuer.

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Preferred Stock | 16,234,125 | 16,234,125 | Yes |
| Common Stock | 29,800,000 | 8,818,868 | Yes |

Securities Reserved for
Issuance upon Exercise or Conversion

*Discounted*

Options: 4,172,000

20. Describe the impact of some of any modifications of the issues.

June

Lender Fire Asset Management
Issue date 05/06/21
Amount $25,000,000.00
Outstanding principal plus interest 30.00 as of 03/26/22
Interest rate 15.0% per annum
Maturity rate 05/10/20
Current with payments Yes

June

Lender Pollen Street Capital
Issue date 06/22/22
Amount $50,000,000.00
Outstanding principal plus interest $15,000,000.00 as of 02/26/22
Interest rate 10.0% per annum
Maturity rate 06/23/24
Current with payments Yes

Actual $200 basis 01 - 175 insurance - Subsequent $200 basis 01 - 175 insurance

RECOMMENDATIONS: If you do not have any questions about the issue, please call us at the address below.

20. What other exempt offerings has the issue, constitutes within the next three years?

| Offering Date | Exception | Security Type | Amount Sold | Use of Deposits |
| --- | --- | --- | --- | --- |
| 2/2020 | Other | SAFE | $50,000 | General operations |
| 2/2020 | Other | Conversion Note | $235,000 | General operations |
| 2/2020 | Other | SAFE | $648,222 | General operations |
| 12/2020 | Other | Preferred stock | $2,000,000 | General operations |
| 1/2021 | Section 4(a)(2) | SAFE | $1,000,000 | General operations |
| 6/2021 | Other | Preferred stock | $10,000,000 | General operations |
| 2/2022 | Other | SAFE | $50,000 | General operations |
| 5/2022 | Section 4(a)(3) | SAFE | $5,000,000 | General operations |

20. Also in the issue of any entries, constitutes, or under common control, with the request party to any transaction I may be beginning at the issue's last fiscal year, or any currently processed transaction, when the amount received exceeds the amount of the aggregate amount of capital issued by the issuer. If not above as Section 4(a)(3) of the Securities Act during the preceding 12 month period, including the amount the issuer seeks to retire to the current offering, to which any of the following amounts that it is to have a direct or indirect interest interest:

1. any investment offered at the issuer.
2. any person who is, or of the most recent construction site, the immediate owner of 20 percent or more of the security outstanding voting assets available, calculated on the basis of voting power.
3. If the issuer was incorporated or organized within the past three years, any provision of this issuer.
4. In any immediate family member of any of the following persons:

☐ Yes
☑ No

RECOMMENDATIONS: 20. Do not assume responsibility for the issue, nor have any other or other information contained in this issue, nor with the consent of the issuer or any other person, whether or not available.

Required meaning to process a paragraph 2, which is intended only for the issue and 15 days prior to the date of the issue, and the date of the issue is not to be used in the case of the issue.

We are "women of the body" which can only use the published, patent, commercial, production, and/or production, using, without, and other, and not to, be given to the following: or equivalent of the price, not to be fully paid or otherwise. Please "proved" (growth) "more or further, or giving a company's share of the company's share."

Copies to the subject of the issue are not to be used in the case of the issue. The issue is not to be used in the case of the issue.

## FINANCIAL CONDITION OF THE ISSUER

21. Does the issuer have an operating history?

☐ Yes
☑ No

20. Describe the financial condition of the issuer, including, in the event material, liquidity, capital, and other financial conditions of operation.

### Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations. Insofar with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review this "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

#### Overview

Advancing financial security through investment homeownership.

We are advancing financial security through investment homeownership.

Our market is wealth management, not estate is just the start. We aim to move forward to natural advantages like mortgage lending, title services, and homeowners insurance. As we scale, we plan to invest financial services, adiponesses like rental income lending, renovation insurance and banking services.

#### Milestones

Deemed Inc. was incorporated in the State of Delaware in July 2015.

Since then, we have:

- 70% of customers are first-time homeowners, 10% have already purchased a subsequent home.
- 50% VAP growth
- Identify 8 purchase an investment home-elderly online
- 4% of American real estate is owned by Millennials & 85% asset at
- $4.07 immediately additional to market
- $2.99+ equity & $7.04 debt saved

#### Historical Results of Operations

Our company was organized in July 2015 and has limited operations upon which prospective investors may have an evaluation of its performance.

- Revenue at time shown: For the period ended December 31, 2021, the Company had received a $1,000,000 compared to the year ended December 31, 2020, when the Company had interests of $3,633,724. Our gross margin was 7.26% in fiscal year 2021 compared to 5.68% in 2020.

- Sales: As of December 31, 2021, the Company had total assets of $20,506,024, including $9,771,362 in cash. As of December 31, 2020, the Company had $4,277,786 in total assets, including $2,990,755 in cash.

- Income: The Company has had net losses of $2,910,450 and net losses of $479,577 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.

- Interest: The Company's liabilities totaled $15,527,478 for the fiscal year ended December 31, 2021 and $174,979 for the fiscal year ended December 31, 2020.

### Liquidity & Capital Resources

To date, the company has been financed with $15,008,465 in debt, $15,550,000 in equity, $235,000 in convertibles, and $5,739,722 in SAMEs.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don't have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

### Borneay & Short/Not Term Expenses

Deemed Inc. (sub-its fund) is $0. as of October 2021. Over the last three months, reserves have averaged $4,000,000/month, cost of goods sold has averaged $3,600,000/month, and operational expenses have averaged $10,000/month. For an average turn rate of $10,000 per month. Our intent is to be profitable in 3 months.

We have decreased expenses in the short term to extend our runway. We are aiming to reach profitability in the next 18 - 24 months. Our expectation is that we can reach that point prior to taking additional funds, or we'll need to raise additional funds for before that point. To reach profitability we are planning to increase our gross margin and top line revenue.

Doing interest rates equates the sense of homes that we're able to go after. That means that we need to put more effort into finding more homes for customers.

We are not currently profitable.

If needed we could raise additional funds from equal investors, VCs, as lines of credit.

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

MADE IN USA 2015 (A) 2016 (A). The company has been a major business and a major business in the United States. The company has been a major business and a major business in the United States. The company has been a major business and a major business in the United States.

## FINANCIAL INFORMATION

As a future financial instrument, covering the two short monthly completed fiscal years or the remaining three months, it is for:

Refer to Appendix C, Financial Statements

1. Andrew Luey, certify that

(1) the financial statements of Deemed Inc. included in this Form are true and complete in all material respects; and

(2) the financial information of Deemed Inc. included in this Form reflects accurately the information reported on the tax return for Deemed Inc. filed for the most recently completed fiscal year.

Andrew Luey
CEO

## OTHER MATERIAL INFORMATION

It is addition to the information expressly required to be included in this Form, include:

- (1) any other material that is not presented to investors; and

- (2) such further material information, if any, is may be necessary to assist the expected statements in the right of the circumstances under which they are made non-marketing.

The Lead Investor. As described above, each investor that has entered into the Investor Agreement will reject a power of attorney to make voting decisions on behalf of that investor to the Lead Investor (the "Proxy"). The Proxy is irrevocable unless and until a Customer Lead Investor takes the place of the Lead Investor, in which case, the Investor has a full (X) calendar day period to revoke the Proxy. Pursuant to the Proxy, the Lead Investor or his or her customers will make voting decisions and take any other actions in connection with the voting on investors' behalf.

The Lead Investor is an experienced investor that is chosen to act in the role of Lead Investor on behalf of investors that have a Proxy in effect. The Lead Investor will be chosen by the Company and approved by Wefunder Inc. and the identity of the initial Lead Investor will be disclosed to investors before investors make a final assessment decision to purchase the securities entered in the Company.

The Lead Investor can quit at any time or can be removed by Wefunder Inc. for review or pursuant to a vote of investors as detailed in the Lead Investor Agreement. In the event the Lead Investor quits or is removed, the Company will choose a Successer Lead Investor who must be approved by Wefunder Inc. The identity of the Successer Lead Investor will be disclosed to investors, and those that have a Proxy in effect can choose to either leave such Proxy in place or revoke such Proxy during a 5-day period beginning with notice of the replacement of the Lead Investor.

The Lead Investor will not receive any compensation for his or her services to the SPV. The Lead Investor may receive compensation if, in the future, Wefunder Advisors LLC forms a fund ("Fund") for accredited investors for the purpose of investing in a non-Registration Crowdfunding offering of the Company, in such an circumstance, the Lead Investor may act as a portfolio manager for that Fund (and as a separated person of Wefunder Advisors) and may be compensated through that vote.

Although the Lead Investor may act in multiple roles with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to maximize the value of the Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of investors. It is, however, unpublished in some limited circumstances the Lead Investor's interests could diverge from the interests of investors, as discussed in section 6 above.

Investors that wish to purchase securities related to the Company through Wefunder Parlor must agree to give the Proxy described above to the Lead Investor, provided that if the Lead Investor is not listed, the Investor will have a

day period during which he or she may revoke the Pray. If the Pray is not revoked during this Friday period, it will remain in effect.

The Pray is under to complete necessary fee. When the SPV is required for include information about such investor who funds are offered to the SPV, including each investor's taxpayer identification number ("PAA") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIA within the author of (i) two (2) years of making their investment or (ii) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIA within this time, the SPV reserves the right to withdraw from any proceeds otherwise payable to the investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIA. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about the Pray.

This is a 1st of the last year. It is a 2nd of the last year. It is a 3rd of the last year.

## ONGOING REPORTING

1. The issuer will file a report electronically within the Securities & Exchange Commission annually and grant the report on its website, no later than 100 days after the end of each fiscal year covered by the report.

2. Upon request, the date of report may be found on the issuer's website at: http://disinvest.com/investor

The issuer must contain it comply with the ongoing reporting requirements until:

1. the issuer is required to file reports under Exchange Act Section 13(a) or 13(b).
2. the issuer has filed at least one annual report and has lower than 300 holders of record.
3. the issuer has filed at least three annual reports and has total errors that do not exceed 500 million.
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(c)(4), including any payment or refund date securities or any complete estimation of a favorable securities or the issuer liquidated or classified as unrealized with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix C: Financial Statements

Financials

Appendix D: Director & Officer Work History

Andrew Luong
Brent Murr
Justin Kasad
Will Hsu

Appendix E: Supporting Documents

All in Form C on the basis of this order

## Signatures

Informal statements or omissions of facts constitute federal criminal violation. See M.V.S.C. 1988.

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Disinvest Stock Purchase Agreement

Appendix C: Financial Statements

Financials

Appendix D: Director & Officer Work History

Andrew Luong

Brent Murr

Justin Kasad

Will Hsu

Appendix E: Supporting Documents

Persons in the requirements of Sections 4(c)(4) and 4A of the Securities Act of 1933 and Regulation Commissions (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing an Annual Report and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

Disinvest Inc.

By

Andrew Luong

Co-Founder & CEO

Persons in the requirements of Sections 4(c)(4) and 4A of the Securities Act of 1933 and Regulation Commissions (§ 227.100 et seq.), the Issued Report and Transfer Agent Agreement has been signed by the following persons in the capacities and on the basis of this order.

Brent Murr

Partner
3/6/2023

Justin Kasad

CTO
3/6/2023

Andrew Luong

Co-Founder & CEO  
5/2/2023

The Annual Statement on Goodwill is to be used to provide information on the financial and financial position of the company. The company is a member of the company's business and is not a member of the company's business.

I authorize Wefunder Portal to submit a Annual Report to the SEC based on the information I provided through this online form and my company's Wefunder profile.

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact, in the company's name, place and stead to make, execute, sign, acknowledge, swear to and file a Annual Report on the company's behalf. This power of attorney is coupled with an interest and is irrevocable. The company hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

**Attachment 2:** `document_2.pdf`

INVEST IN DOORVEST

## Advancing financial security through investment homeownership

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

## Highlights

- 1 A 70% of customers are first-time homeowners. 18% have already purchased a subsequent home.
- 2 a 10.8x YoY growth
- 3 a Identify & purchase an investment home entirely online
- 4 a 4% of American real estate is owned by Millennials & 85% want rel
- 5 a $4.2T immediately addressable market
- 6 a $22M+ equity & $75M debt raised

## Our Team

**Andrew Luong** Co-Founder & CEO

Andrew is a passionate real estate investor and Business Development expert. He has worked to serve tech companies such as M&M (acquired), Dango (acquired), Indeed, and Human Interest before growing his own.

**Justin Kasad** Co-Founder & CTO

Justin is a full stock software developer and entrepreneur taking ideas from concept to market. His work with Swappan (acquired), Health Tap, and Healthline Media (acquired) led him to the creation of Doorvest.

## We're changing the real estate game

In 2014, Andrew and Justin were both working in the tech industry while starting to explore options for long-term financial security. They turned to real estate - particularly single-family rental homes - a proven way to generate passive income and build long-term wealth. Working together, they passively built a portfolio of over a dozen homes in under 5 years.

Recognizing the challenges of getting started in real estate, Andrew and Justin wanted to lower the barrier to entry for first-time investors. Motivated to improve the overall experience, they created a full-service real estate investing platform to help others make their way towards financial independence. Doorvest was born.

Doorvest is backed by top-tier venture capitalists like M&I, Murder Capital, and founders and executives from Wealthfront, Opendoor, BiggerProStem and Invitation Homes. We have been scrappy as we found our product-market fit, and now we're going places.

## The Friction Problem

90% of the world's millionaires have attributed their wealth to real estate investing, yet homeownership rates have declined to all-time lows. This unfortunate reality is due to the time commitment and friction of the traditional process along with the capital barrier due to rising home values, stagnant wages and mounting student loan debt.

Similar to other high-quality assets, everyday investors have been locked out to the #1 most favored investment asset class, real estate. This is why we built Doorvest.

INVESTMENT SUPPLY

Without Doorvest, getting started is painful.
Building wealth is even tougher.

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

## Our Solution

We live at the intersection between technology and real estate by providing an all-in-one solution, eliminating the most painful steps for the end customer. We mitigate risk from the customer's perspective by providing extensive renovations to deliver a new home. We've aligned our pricing with our customers to ensure we're both working towards the same goal: a long-term and successful investment property with a series of guarantees that fosters a stress-free and happy customer.

In traditional real estate investing, the end-to-end timeline is 6 months with at least 26 steps for a customer to comb through. Doorvest does it in 12 steps in half the time, simplifying the process for homeowners old and new.

In the end, a customer receives a completely renovated home with an average cap rate of 6% while still capturing tan and equity advantages that generate passive income from day 1.

Doorvest Empowers
buyers to invest in a
rental home in less
time with less risk.

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

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

## Technology

Doorvest is more than a clever business model - we get our competitive advantage by being able to fully integrate the home acquisition process, renovation, home sale, and long term management for all our properties through tech. Having end-to-end control over this information means that we can create robust features and tools for both our customers and internal team.

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

Currently, Doorvest has tools to quickly underwrite and estimate homes as soon as they hit our funnel. When our system detects a newly available property, it automatically underwrites the home to ensure it meets our criteria and dispatches a nearby general contractor to estimate the renovation cost. The resulting information goes back into our database and alerts our team of the highest possible bid we can make on the home. The home information is continuously updated as the home goes through contract, renovations, inspection, closing, and finally property management.

Given the full scope of data available to us, our team is alerted when timelines are off, budgets are exceeded, and when any discrepancies arise. We've developed tools to hone our pricing strategy and maintain our margins as renovations play out. For homes under management, we've integrated with multiple leasing partners and maintenance companies to seamlessly communicate with our success team. We're continuing to develop our relationships with technology partners to improve our banking, maintenance, resident communication, renovations, and operations.

Creating product tooling with our technology partners is only part of the equation, as we also focus on creating tech-enabled products that streamline processes that are unique to Doorvest. We match homes to deposit holders based on their preset criteria, notify them in our portal, and allow the customer to sign legally binding documents to reserve and purchase the home via Hollistige's integration. We've already integrated with data warehouses like HouseCanary to provide up-to-date information on the homes, GreatSchools to provide details on nearby schools, as well as built our own financial calculators to give the customer everything they need to make an informed investment decision.

Ultimately, we are building a tech-enabled business, whose advantages are unique to our vertically integrated model. As we perfect our data collection and implementation, our tools continue to grow more sophisticated to match the needs of our business and stay ahead of the competition.

## Opportunity

Doorvest officially launched in April 2020 and despite a global pandemic, has grown exponentially. In 2021, Doorvest grew 10x+.

In addition, we've found a product-market fit with industry-leading demand characteristics. Doorvest customers submit a deposit prior to purchasing homes and as of this writing, we have a backlog of deposits with more than enough demand to fulfill the remainder of 2022 revenue targets.

All of this has been accomplished with a team of less than 50.

Based on our customer base of aspiring real estate investors and individuals targeting reliable income for retirement, we see ourselves operating at the intersection of single-family rental homes and the retirement market. Non-institutional, 'very small investors' (1-10 homes) make up 88% of the market share resulting in a $3.71 market. Alternatively, the US retirement market amounts to $34.91.

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

## The Investment

Homes aren't built in a day. Doorvest won't be either. We want to advance financial security for all, and here's how we plan to lower the barrier to entry, step-by-step.

Real estate is just the start. We aim to move forward to natural adjacencies like mortgage lending, title services, and homeowners insurance. As we scale, we plan to target financial services adjacencies like rental income lending, renovation insurance and banking services.

We're raising funds to deepen our technology moats, capture demand, accelerate scale and expand to new markets. Depending on strategic initiatives, we have a path to achieve free cashflow positive in 2023, and with a successful raise, we believe we'll get there.

If advancing financial security for all sounds like something you'd like to be a part of, we'd love to have you join us!

**Attachment 3:** `document_3.pdf`

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

## Dear investors,

Hey Tune,

Thank you again for supporting our journey! As you can imagine, 2022 was a reference to this and was our toughest year to date (out of 3 total years). However, I believe we've missed 2023 with a most resilient team, product and business.

Excited to share some brief highlights below:

- 2.25+ YoY growth
- Proved we could be a national brand by expanding into AUL, IGA to Q1 and further into UK and OH
- Closed-out second debt-facility
- Closed, Oil-borne under management
...and more

### We need your help!

We'd love any and all customer introductions - don't think this will change as we continue to grow and mature as a bit. Our belief is opening up Community Brands's strategically helps us drive more customers from our limited industries - that's you all! We would appreciate customer introductions (even those that are not immediately ready) and will make sure they and you are well taken care of.

Sincerely,

Brent Murri

Director

Justin Kasad

CEO

Andrew Luong

CO-PHONE IN CEO

## Our Mission

Our market is world management, real estate is just the start. We also to move forward to mutual adjacencies like mortgage lending, debt services, and homeowners insurance. As we scale, we plan to target financial services adjacencies like bond income, lending, conversion insurance and banking services.

See our full profile

## How did we do this year?

Report Card

The Good

Our experience and of TV

Common - best ever

Strong and strong

The Bad

Our long-term is no one

Lower than expected growth in a few years

# 2022 At a Glance

January 1st November 31

**$19,666,531 +ETH**
Thousands

**-$2,910,410**
Thousands

**$15,369,581 +OIL**
Oils in the land

**$55,050,000**
Based in 2022

Cash on hand

INCOME BALANCE MARKETING

Business Profit

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

Net Margin: 10% Gross Margin: 5% Return on Assets: -10% Earnings per Share - $57,207.68 Reserves per Structure: $19,118 Cash to Assets: 20% Reserves to Nonvested: 104,800% Sold to the 20%

2. Decrease, Decrease, and CAGR, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000

# We ♥ Our
557 Investors

# Thank You For Believing In Us

| David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. |
| --- | --- | --- | --- | --- | --- | --- |
| David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. |
| David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. | David B. B. B. |
| David B. B. B. | David B. B. B. | David B. B. B. |  |  |  |  |
| David B. B. B. | David B. B. B. | David B. B. B. |  |  |  |  |
| David B. B. B. | David B. B. B. | David B. B. B. |  |  |  |  |
| David B. B. B. | David B. B. B. | David B. B. B. |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |
| David B. B. B. | David B. B. B. |  |  |  |  |  |

# Thank You!

From the Doorvest Team

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

Co-Founder & CEO

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

Co-Founder & CTO

## Details

### The Board of Directors

| Member | Accounting | Date |
| --- | --- | --- |
| WIB Inc. | Verizon Capital Partner & Master Capital | 2009 |
| Brent More | President & WIB | 2009 |
| Justin Kasad | CTO & Deceased | 2010 |
| Andrew Luong | CEO & Deceased | 2010 |

### Officers

| Member | Title | Date |
| --- | --- | --- |
| Andrew Luong | President CEO CTO Secretary Treasurer | 2010 |

### Voting Power $^{1)}$

| Member | Accounting | Voting Power |
| --- | --- | --- |
| Master Capital | 9,941,142 Series South 1, Series A-1, Series South 2, Series South 3 | $4.70 |

### Past Equity Purchases

| Date | Amount | Activity | Description |
| --- | --- | --- | --- |
| 03/2009 | $225,000 |  | Other |
| 03/2009 | $83,000 | Sale | Other |
| 03/2009 | $5,400 |  | Other |
| 03/2009 | $424,700 | Sale | Other |
| 12/2009 | $2,950,000 | Preferred Stock | Other |
| 03/2009 | $25,000,000 |  | Section 4(a)(2) |
| 03/2009 | $5,000,000 | Sale | Section 4(a)(2) |
| 03/2009 | $5,000,000 | Preferred Stock | Other |
| 12/2009 | $88,400 |  | Asset |
| 03/2009 | $10,000,000 |  | Other |
| 03/2009 | $50,000 | Sale | Other |
| 03/2009 | $5,000,000 | Sale | Section 4(a)(2) |

$^{1)}$ This is not a member of a joint group of members

### Convertible Notes Outstanding

| Date | Amount | Activity | Description | Valuation Cap | Activity |
| --- | --- | --- | --- | --- | --- |
| 03/09/2009 | $225,000 2) | 0.0% | 0.0% | $2,950,000 | $2,950,000 2) |

### Outstanding Debits

| Member | Date | Amount | Quantity | Amount | Total |
| --- | --- | --- | --- | --- | --- |
| John M. Ross 3) | 03/03/2009 | $5,400 | 30 3) | 0.0% |  |
| Pat. Asad Management 3) | 03/07/2009 | $25,000,000 | 30 3) | 12.0% | 03/07/2009 |
| Peter Green Capital 3) | 06/01/2009 | $50,000,000 | $5,000,000 | 10.0% | 06/01/2009 |

### Related Party Transactions

Notes:

### Capital Structure

| Date of Issue | Amount | Valuation Cap | Notes |
| --- | --- | --- | --- |
| Preferred Stock | 10,234,105 | 10,234,105 | Yes |
| Common Stock | 20,000,000 | 4,000,000 | Yes |

| Markets | 0 |
| --- | --- |
| Options | 4,171,000 |

### Risks

Consolidate - There are platforms just there like Rootstock and Fundate that play in this space, not always, as there the market is gigantic enough that there are no multiple winners. Rootstock serves a need for mechanisms like limitation frames and American frames. A Rent to have a platform to buy or challenge blocks of homes. We like that business model as well, but it's a facility signal that the foundation of Inclusion frames. Also involved in Demand, saving also a significant opportunity to provide a fully managed service to individuals with limited net losses knowledge. Investors should however keep an age on the market need for the topic of service as new financial spring set.

Loss of customer care is - as of now, there's no explicit reason why a customer interested in rental property investing couldn't buy a property from PLS - it is a property manager. It will take a very long time to build a durable brand, but it is a but an people being too busy to work to do this extra work, and having a strong enough cost experience that they might become repeat buyers (and extend) through Demand to the future.

Less frequency marketplace - the guarantee of scaling supply quickly enough to account for the fact that people are unlikely to use this service often. This is obligated by Demand's reasonably high takeaway and providing a strong user experience through quality buying inventory from unnecessary, solving highly on S&S, and allowing buyers enough agency to follow through in the purchasing machine.

Our future success depends on the efforts of a small management team. The lack of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.

Hearing supply - Does not acquire major homes and by one via wholesalers, which in someone not in this space help the 3 wouldn't quite very well at one-site service differentiation. However, this is basically the strategy that limitation frames, such as the rest to a valuation of $100. Their supply approach is inextricated. 3 DimeNetCPLS decided by internal trading that analyses 200 homes per day and plugs into an internal (W) that surfaces only those that meet customer criteria, and 2) wholesalers that are built via partnerships and more from their network.

Any valuation of this issue is difficult to assess and may be used fairly reasonably. The

valuation for the offering was established by the Company. Unlike public-affiliated companies that are valued publicly through modern-return stock prices, the valuation of private companies, especially startups and environmental enterprises, such as the Company, is difficult to assess and you may risk reweeping for your investment. Any promotions or forward-looking statements regarding our anticipated finance or operational performance are hypothetical only and are based on management's estimate of the body results of our operations and will not have been reviewed by our independent agency itself. These promotions will be based on assumptions which management believes are reasonable, but which may be largely inaccurate. Some assumptions invalidity will not materialize exactly as predicted for at any time to written reports, such as unanticipated events and disbursements. Therefore, actual results of operations are actually certain to vary from such propositions, and such variances may be material; any projected results cannot be guaranteed.

Investment in the Company involves high uncertainty and a broad variety of significant risks. Any investment in the Company (also sometimes referred to herein as 'net', 'us', 'our', or 'Company') involves a high degree of risk and should only be considered by those who are afraid to buy or their entire investment. It is not essential to the various risk factors described below, among others, such potential investor should consider all of the information provided regarding the Company as well as the following risk factors. In addition to the other information listed in the Company's Form C, The Revenue risk factors are not released, and shall not be deemed to be, a complete description of the commercial and other risks inherent in any investment in the Securities.

The Company may never receive a future equity financing or elect to convert the Securities under the Future financing, in addition, the Company may never undergo a liquidity event such as a sale of the Company or an IRS. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly dispute, with no secondary interest on which to sell them. The Securities are not equity interests, have no numerical rights, have no rights to the Company's assets or profits and have no money rights or ability to direct the Company or its authors.

#### Description of Securities for Prior Bag CF Rates

**Additional Securities of Securities:** Protecting the investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the investor in the Company. The investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be secured. The amount of additional financing created by the Company if any will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the investor to make a future on investment, or the lack of an opportunity to make such a future on investment, may result in substantial dilution of the investor's interest in the Company.

**Seven repurchases of securities:** The Company may have authority to repurchase its securities from shareholders, which may serve to decrease any liquidity in the interest for such securities. Because the percentage interests held by other entirely insured investors to the investor, and create pressure on the investor to sell its securities to the Company concurrently.

A sale of the issuer or of assets of the issuer, as a minority owner of the Company, the investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the investor will rely upon the executive management of the Company and the Board of Directors of the Company to manage the Company as a to maintain a value for shareholders. Accordingly, the success of the investor's investment in the Company will depend on large and upon the sale and existence of the executive management of the Company and the Board of Directors of the Company. If the Board Of Directors of the Company authorizes a sale of all or a part of the Company, or a discretion of a substantial portion of the Company's assets, there can be no guarantee that the value received by the investor, together with the full market estimate of the value remaining in the Company, will be equal to or exceed the value of the investor's initial investment in the Company.

**Transcursions with related parties:** The investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management and Board of Directors of the Company will be guided by their usual faith agreement as to the Company's best interests. The Company may engage in transactions with directors, subsidiaries or other related parties, which may be on terms which are set forth length, but will not and cause consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the investor will be overexcited, have demonstrated the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

#### Minority Ownership

An investor in the Company will likely hold a minority position in the Company, and that he limited or is its ability to control or influence the governance and operations of the Company.

The marketability and value of the investor's interest in the Company will depend upon many factors outside the control of the investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its Board Of Directors, and the investor will have no independent right to earn or remove an officer or member of the Board Of Directors of the Company.

Following the investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the investor in the Company. The investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be secured.

The amount of additional financing created by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the investor to make a future on investment, or the lack of an opportunity to make such a future on investment, may result in substantial dilution of the investor's interest in the Company.

#### Exercise of States used by Principal Shareholders

As holders of a majority-in-interest of voting rights in the Company, the shareholders may make decisions with which the investor designates, or that maximum, affect the value of the investor's securities in the Company and the investor will have no evidence to change these decisions. The investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or avoid injurious to the investor.

For example, the shareholders may change the terms of the Articles of Incorporation for the Company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority leaders of securities. The shareholders may make changes that affect the tax treatment of the Company in such that are unfavorable to pay but favorable to them. They may also vote to engage in new affiliates and/or to monitor certain of the Company's securities in a way that negatively affects the value of the securities the investor earns. Other leaders of securities of the Company may also have access to more information than the investor, leaving the investor at a disadvantage with respect to any domestic regarding the securities he or she earns. The shareholders have the right to restore their securities at any time. Shareholders must decide to force the Company to restore their securities at a time that is not favorable to the investor and is damaging to the Company. Investors may may affect the value of the Company, which is partially, in cases where the rights of holders of convertible debt, BAFES, or other outstanding options or accounts are exercised, or if new awards are granted under our equity compensation plans, an investor's interests in the Company may be shared. This means that the primary portion of the Company represented by the investor's securities will decrease, which could also diminish the investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional stocks, an investor's interest will typically also be shared.

Based on the risks described above, the investor could look at or part of his or her investment in the securities in this offering, and may never see positive returns.

#### Descriptions on Transfer

The securities offered as Regulation (Insufficient) 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; or
- 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, in 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 disease of the purchaser or other similar circumstance.

#### Valuation Methodology for Prior Bag CF Rates

The offering price for the securities offered pursuant to this Form C has been determined sufficiently by the Company, and does not necessarily bear any relationship to the Company's share value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment.

Working with a clear review of the literature to make an assessment, approval or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

In the future, we will perform solutions of our common stock that take into account factors such as the following:

- unrelated third party valuations of our common stock;
- the price at which we will select securities, such as convertible debt or preferred funds, in light of the rights, preferences and privileges of our those securities relative to those of our common stock;
- our results of operations, financial position and capital resources;
- current business conditions and projections;
- the lack of marketability of our common stock;
- the hiring of key personnel and the experience of our management;
- the introduction of new products;
- the risk inherent in the development and expansion of our products;
- our stage of development and material risks related to our business;
- the likelihood of achieving a liquidity event, such as an initial public offering or a lack of our company, given the prevailing market conditions and the nature and history of our business;
- industry trends and competitive environment;
- trends in consumer spending, including consumer confidence;
- overall economic indicators, including areas domestic product, employment, inflation and interest rates; and
- the generic economic outlook.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will share similar characteristics and that the Company's value will coincide to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

#### **Company**

Deprived, Inc.
- Delaware Corporation
- Registered July 2008
- 37 employees

164 Market Street
Suite 200
San Francisco CA 94104

http://deprived.com

#### **Business Description**

Refer to the Deprived profile.

#### **EGG48 Filing**

The Securities and Exchange Commission holds the official seal of this annual report on their ESG48 web site. It looks like it was built in 1985.

#### **Compliance with Prior Annual Reports**

Deprived has previously not complied with the reporting requirements under Rule 202 of Regulation 62(a)(1)(B) of the Securities and Exchange Commission.

Filing annual report lists

#### **All prior investor updates**

You can refer to the company's updated page to view all updates to date. Updates are for investors only and will require you to log in to the McAllister account used to make the investment.

**Attachment 4:** `document_4.pdf`

**Doorvest, Inc.** (the “Company”) a Delaware Corporation and Subsidiaries

Consolidated Financial Statements (unaudited) and
Independent Accountant’s Review Report

Years ended December 31, 2020 & 2021

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

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To Management Doorvest, Inc.

We have reviewed the accompanying consolidated financial statements of the Company which comprise the statement of financial position as of December 31, 2020 & 2021 and the related statements of operations, statement of changes in shareholder equity, and statement of cash flows for the years 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 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 these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of 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.

### Accountant’s Conclusion

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

### Going Concern

As discussed in Note 8, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs.

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Consolidated Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 9,777,362 | 2,593,155 |
| Restricted Cash | 528,168 | 44,164 |
| Accounts Receivable | 15,783 | - |
| Employee Retention Credit Receivable | 228,817 | - |
| Prepaid Expenses | 99,962 | - |
| Investments in Unconsolidated Entities | 22,784 | 3,244 |
| Installment Receivables | 9,893 | 17,729 |
| Deferred Tax Asset | 72,381 | 15,082 |
| Assignment Fees | 367,720 | - |
| Origination / Point Costs | 93,149 | - |
| Security Deposit | 48,131 | 5,100 |
| Undeposited Funds | 473 | - |
| Appliances | 2,040 | - |
| Total Current Assets | 11,266,664 | 2,678,474 |
| Non-current Assets |  |  |
| Held for Sale Inventory |  |  |
| Appliances | 1,937 | - |
| Rehabilitation | 2,581,081 | - |
| Inventory Asset | 1,866,514 | 1,548,662 |
| Purchase | 13,842,838 | - |
| Property and Equipment net of Accumulated Depreciation | - | - |
| Total Non-Current Assets | 18,292,371 | 1,548,662 |
| TOTAL ASSETS | 29,559,034 | 4,227,136 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 1,209,127 | 27,237 |
| Notes Payable | 14,067,355 | 1,042,020 |
| Construction Draw Holdback | (147,238) | - |
| Net Notes Payable | 13,920,117 | 1,042,020 |
| Other Liabilities | 240,338 | 8,978 |
| Total Current Liabilities | 15,369,581 | 1,078,235 |
| Long-term Liabilities |  |  |
| Rent Liabilities Payable | 30,638 | 26,479 |
| Security Deposits Payable | 127,259 | - |
| SBA- PPP Loan | - | 9,465 |
| Total Long-Term Liabilities | 157,897 | 35,944 |
| TOTAL LIABILITIES | 15,527,478 | 1,114,179 |
| EQUITY |  |  |
| Shareholder's Equity | 17,402,735 | 3,567,359 |
| Accumulated Deficit | (3,371,179) | (454,401) |
| Total Equity | 14,031,556 | 3,112,958 |
| TOTAL LIABILITIES AND EQUITY | 29,559,034 | 4,227,136 |

# **Consolidated Statement of Operations**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenues: |  |  |
| Real Estate Sales | 19,527,947 | 1,810,000 |
| Management Income | 90,910 | 7,357 |
| Rental Income | 47,674 | 18,377 |
| Total Revenue | 19,666,531 | 1,835,734 |
| Costs: |  |  |
| Purchase Price | 14,283,250 | 1,450,670 |
| Purchase Transaction Cost | 520,355 | - |
| Rehab Costs | 2,864,933 | 311,173 |
| Other | 510,406 | 43,066 |
| Total Cost of Sales | 18,178,945 | 1,804,909 |
| Gross Profit: | 1,487,587 | 30,825 |
| General and Administrative | 4,695,022 | 496,275 |
| Sales and Marketing | 129,736 | 56,476 |
| Depreciation | 71,272 | 10,051 |
| Total Operating Expenses | 4,896,030 | 562,802 |
| Operating Income (loss) | (3,408,444) | (531,977) |
| Other Income |  |  |
| Commissions | 1,530 | - |
| Employee Retention Credit | 227,808 | - |
| Employee Retention Credit Interest | 1,009 | - |
| Interest Income | 60 | 905 |
| Other Revenues | 3,568 | 5,913 |
| SBA-PPP Fund | 9,465 | - |
| Social Security Credit - COVID-19 relief | 197,294 | 30,500 |
| Total Other Income | 440,735 | 37,318 |
| Earnings Before Income Taxes | (2,967,709) | (494,659) |
| Provision for Income Tax Expense/(Benefit) | (57,299) | (15,082) |
| Net Income (loss) | (2,910,410) | (479,577) |

# **Consolidated Statement of Cash Flow**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | (2,910,410) | (479,577) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Accounts Payable | 1,181,890 | 27,237 |
| Rent Liabilities Payable | 4,159 | 26,479 |
| Security Deposit Payable | 127,259 | - |
| Inventory |  |  |
| Appliances | (3,977) | - |
| Purchase | (13,842,838) | - |
| Rehabilitation | (2,581,081) | - |
| Inventory Asset | (317,852) | (1,414,610) |
| Accounts Receivable | (15,783) | - |
| Employee Retention Credit Receivable | (228,817) | - |
| Installment Receivables | 7,837 | (17,729) |
| Assignment Fees | (367,720) | - |
| Prepaids | (99,962) | - |
| Origination / Point Costs | (93,149) | - |
| Security Deposit | (43,031) | (5,100) |
| Undeposited Funds | (473) | - |
| SBA PPP Loan Payable | (9,465) | 9,465 |
| Other Liabilities | 231,360 | 8,978 |
| Depreciation | 71,272 | 10,051 |
| Deferred Tax Asset | (57,299) | (15,082) |
| Payroll Taxes | (77,640) | (7,578) |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | (16,115,311) | (1,377,889) |
| Net Cash provided by (used in) Operating Activities | (19,025,721) | (1,857,467) |
| INVESTING ACTIVITIES |  |  |
| Investments in Unconsolidated Entities | (19,540) | (3,244) |
| Net Cash provided by (used by) Investing Activities | (19,540) | (3,244) |
| FINANCING ACTIVITIES |  |  |
| Issuance of Common Stock/Member contributions | 13,835,376 | 3,567,359 |
| Long-term Liabilities | 12,878,097 | 930,670 |
| Net Cash provided by (used in) Financing Activities | 26,713,473 | 4,498,029 |
| Cash at the beginning of period | 2,637,319 | - |
| Net Cash increase (decrease) for period | 7,668,212 | 2,637,319 |
| Cash at end of period | 10,305,530 | 2,637,319 |

# **Statement of Changes in Shareholder Equity**

|  | Common Stock |  | Preferred Stock |  | APIC | Accumulated Deficit | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount |  |  |  |
| Beginning Balance at 1/1/2020 | 8,000,000 | 80 | - | - | - | - | 80 |
| Issuance of Stock | 702,000 | 7 | 9,179,717 | 92 | 3,592,356 |  | 3,592,455 |
| Net Income (Loss) |  |  |  |  | - | (479,577) | (479,577) |
| Ending Balance 12/31/2020 | 8,702,000 | 87 | 9,179,717 | 92 | 3,592,356 | (479,577) | 3,112,958 |
| Issuance of Common Stock | 1,027,943 | 10 | 6,955,614 | 70 | 13,920,783 | - | 13,920,862 |
| Seed Financing Costs | - | - | - | - | (91,854) | - | (91,854) |
| Net Income (Loss) |  |  |  |  | - | (2,910,410) | (2,910,410) |
| Ending Balance 12/31/2021 | 9,729,943 | 97 | 16,135,331 | 161 | 17,421,285 | (3,389,987) | 14,031,556 |

# **Doorvest, Inc**
**Notes to the Unaudited Financial Statements**
**December 31st, 2021**
**$USD**

# **NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES**

Doorvest, Inc (“the Company”) was formed in Delaware on July 26, 2019. The company is a full-service real estate investing platform that helps others make their way toward financial independence. Doorvest generates revenue through home sales, along with other revenue from ancillary real estate services. The Company is headquartered in San Francisco, CA and its customers are in the United States.

The Company will conduct a crowdfunding campaign under regulation CF in 2023 to raise operating capital.

# **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

# Basis of Presentation

Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Our fiscal year ends on December 31. The Company has no interest in variable interest entities and no predecessor entities.

# Basis of Consolidation

The financials of the Company include its wholly owned subsidiaries: Doorvest Communities, Doorvest Holdings, and Doorvest Realty. Doorvest Communities and Doorvest Holdings are Delaware entities formed on September 4, 2020 and March 18, 2021, respectively; while Doorvest Realty was incorporated in Texas on April 30, 2021. All significant intercompany transactions are eliminated.

# Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

# Cash and Cash Equivalents

Cash and cash equivalents include all cash balances and highly liquid investments with maturities of three months or less when purchased.

# Assets Held for Sale

Consistent with its business model (see Note 1), the Company designates its real property as held for sale (HFS). In accordance with ASC 360, “Long-Lived Assets Classified as Held for Sale,” assets are presented separately on the balance sheet and no depreciation or amortization of the assets is recognized. The following six criteria must be met:

- Management commits to a plan to sell the assets
- The asset is available for sale immediately in its present condition
- There is an active program to sell the asset
- It is unlikely that the plan to sell the asset will be changed or withdrawn
- Sale of the asset is likely to occur and should be completed within one year
- The asset is being marketed at a price that is considered reasonable in comparison to its current fair value.

### Fair Value of Financial Instruments

ASC 820 “*Fair Value Measurements and Disclosures*” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

Level 1: defined as observable inputs such as quoted prices in active markets;

Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company’s fair value measurement of assets held for sale follow the Level 2 tier. The assets are carried at cost and sold within one year of acquisition. The fair value of assets held for sale was $18.3M as of December 2021 and $1.5M as of December 2020.

### Concentrations of Credit Risks

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. The Company’s management plans to assess the financial strength and creditworthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

### Revenue Recognition

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when or as performance obligations are satisfied

The Company generates revenue through home sales along with Other Revenue from ancillary real estate investing services. Other Revenue represents an insignificant portion of the Company’s total revenue. The Company recognizes revenue when it satisfies its performance obligations by transferring control of promised goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Home sales revenue consists of selling renovated residential real estate to customers. Revenue is recognized when title to and possession of the property has transferred to the customer and the Company has no continuing involvement with the property, which is generally upon close of escrow. The amount of revenue recognized for each home sale is equal to the sale price of the home net of any concessions. Other Revenue consists primarily of property management fees after homes are sold to investors.

### Accounts Receivable

Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

The Company estimates an allowance for doubtful accounts based upon an evaluation of the status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change.

## Employee Retention Credit

The Company was granted $228K in Employee Retention Credit in 2021. The effect on the Company's financials as a result of the credit was an increase in Other Income and an increase in Employee Retention Credit Receivable. The company does not have any unfulfilled conditions or contingencies attached to this government assistance.

## Advertising Costs

Advertising costs associated with marketing the Company's products and services are generally expensed as costs are incurred.

## General and Administrative

General and administrative expenses consist of payroll and related expenses for employees and independent contractors involved in general corporate functions, including accounting, finance, tax, legal, business development, and other miscellaneous expenses.

## Equity-Based Compensation

The Company accounts for stock options issued to employees under ASC 718 (Stock Compensation). Under ASC 718, share-based compensation cost to employees is measured at the grant date, based on the estimated fair value of the award, and is recognized as an item of expense ratably over the employee's requisite vesting period. The Company has elected early adoption of ASU 2018-07, which permits measurement of stock options at their intrinsic value, instead of their fair value. An option's intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price of an option. In certain cases, this means that option compensation granted by the Company may have an intrinsic value of $0.

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505 (Equity). The fair value of the option issued or committed to be issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The fair value is measured at the value of the Company's common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty's performance is complete. The fair value of the equity instrument is charged directly to expense and credited to additional paid-in capital.

There is not a viable market for the Company's common stock to determine its fair value, therefore management is required to estimate the fair value to be utilized in the determining stock-based compensation costs. In estimating the fair value, management considers recent sales of its common stock to independent qualified investors, placement agents' assessments of the underlying common shares relating to our sale of preferred stock and validation by independent fair value experts. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management's estimates. Management has concluded that the estimated fair value of the Company's stock and corresponding expense is negligible.

The following is an analysis of shares of the Company's common stock issued as compensation:

|  | Nonvested Shares | Weighted Average Fair Value |
| --- | --- | --- |
| Nonvested shares, January 1, 2020 | - | $ - |
| Granted | 915,000 | $ - |
| Vested | (571,602) | $ - |
| Forfeited | - | $ - |
| Nonvested shares, December 31, 2020 | 343,398 | $ - |
| Granted | 1,939,157 | $ - |
| Vested | (597,897) | $ - |
| Forfeited | (769,636) | $ - |
| Nonvested shares, December 31, 2021 | 915,022 | $ - |

#### Income Taxes

The Company is subject to corporate income and state income taxes in the state it does business. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company does not have any uncertain tax provisions. The Company's primary tax jurisdictions are the United States and Delaware. The Company's primary deferred tax assets are its net operating loss (NOL) carryforwards which approximate its retained earnings as of the date of these financials.

#### Recent Accounting Pronouncements

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

### NOTE 3 - RELATED PARTY TRANSACTIONS

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. There were none.

### NOTE 4 - COMMITMENTS, CONTINGENCIES, COMPLIANCE WITH LAWS AND REGULATIONS

We are currently not involved with or know of any pending or threatening litigation against the Company or any of its officers. Further, the Company is currently complying with all relevant laws and regulations.

### NOTE 5 - DEBT

In 2021, the company entered into a term loan financing agreement that allowed it to draw up to $15M at an annual interest rate of 15%. The term loan’s duration was for one year and expired in May 2022, with the balance due six months after expiration, November 2022. The loan was collateralized by all properties and eligible assets owned by the Company. Draws were permitted under the financing agreement for the duration of the loan term, so long as the aggregate outstanding principal amount of the loan did not exceed $15M. The loan balance as of December 31, 2021, was $13.9M.

### NOTE 6 - EQUITY

The Company has authorized 29,800,000 common and 16,234,125 preferred shares, both classes at par values of $0.00001 per share. Shares issued and outstanding as of 2020 and 2021 are shown below.

|  | Issued and Outstanding |  |
| --- | --- | --- |
|  | As of 2020 | As of 2021 |
| Preferred | 9,179,717 | 16,135,331 |
| Common | 8,702,000 | 9,729,943 |

Additionally, the Company designated the preferred shares into eight subcategories as shown below.

| Preferred Shares Designation |  |  |  |
| --- | --- | --- | --- |
| Category Description | # of Shares | Conversion Rate | Collective Class |
| Series Seed-1 Preferred | 4,275,643 | 0.5964 | Seed Series Preferred |
| Series Seed-2 Preferred | 2,414,484 | 0.0973 |  |
| Series Seed-3 Preferred | 1,676,727 | 0.2982 |  |
| Series Seed-4 Preferred | 17,397 | 0.2874 |  |
| Series Seed-5 Preferred | 267,239 | 0.3592 |  |
| Series Seed-6 Preferred | 542,146 | 0.4311 |  |
| Series A-1 Preferred | 6,154,714 | $2.11 | Series A Preferred |
| Series A-2 Preferred | 741,729 | $1.35 |  |
| Series A-3 Preferred | 144,046 | $0.69 |  |
| Total Shares | 16,234,125 |  |  |

**Voting:** Common stockholders are entitled to one vote per share, while preferred stockholders are entitled to cast the number of votes equal to the number of whole shares of common stock into which the shares of preferred stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter.

Further, the holders of record of the shares of Series A Preferred and Series Seed Preferred are each entitled to elect

one director, while holders of common stock are entitled to elect two directors of the Company.

**Redemption:** Preferred Stock is not redeemable at the option of the holder.

**Dividends:** Dividends are distributed when declared by the Board of Directors on a pro-rata basis on the number of shares held by each such holder, treating for this purpose all such securities as if they had been converted to common stock. Additionally, the Company shall not declare, pay, or set aside any dividends on shares of any other class or series of capital stock unless the holders of preferred stock then outstanding first or simultaneously receive, a dividend on each outstanding share of preferred stock in an amount equal to at least 6% of the original issue price.

**Conversion:** Preferred stockholders may convert into shares of Common Stock at any time at the option of the holder at an initial conversion rate of 1:1, subject to broad-based weighted-average anti-dilution and other standard anti-dilution mechanisms. Preferred Stock shall automatically convert into shares of Common Stock upon the earlier to occur of (a) a firm-commitment underwritten offering on the NYSE or NASDAQ, yielding the proceeds to the Company of at least $50M, or (b) upon the affirmative vote or written consent of (i) a majority of all then-outstanding Preferred Stock, voting exclusively and as a single class on an as-converted basis, and (ii) a majority of all then-outstanding Series A-1 Preferred Stock, voting exclusively and as a single class on an as-converted basis.

Preferred stockholders have the right to convert shares into common stock at the rates illustrated in the “Preferred Shares Designation” table above.

**Liquidation preference:** In the event of any liquidation, dissolution or winding up of the Company, the holders of preferred stock are entitled to receive prior to, and in preference to, any distribution to the common stockholders.

## NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through February 21, 2023, the date these financial statements were available to be issued.

The Company formed four new wholly-owned subsidiaries, DVC GA LLC, DVC TX LLC, DVC OH LLC, and DVC OK LLC, under Doorvest Communities on October 14, 2022.

The Company entered into a financing agreement on June 23, 2022, that allows it to draw up to $50M at varying interest rates, as shown below. The term loan’s duration is for two years and expires on June 22, 2024. The loan is collateralized by “Account Collateral,” which is described as all cash, securities, financial assets, investment assets, and other property from time to time deposited or credited thereto and the proceeds thereof. Draws are permitted under the financing agreement for the duration of the loan term.

| Interest Terms |  |  |
| --- | --- | --- |
| Initial $25M | During Draw Down Period | 10% per annum |
|  | During Term Out Period (after 6/22/24) | 11% per annum |
| Subsequent $25M | During Draw Down Period | 9% per annum |
|  | During Term Out Period (after 6/22/24) | 10% per annum |

The company raised $5M in SAFE notes in August 2022. See Note 3 for details.

The company entered into an 18-month lease agreement for office space in 2022. See Note 4 for details.

The Company entered into two SAFE agreements with two partners affiliated with two of its major preferred shareholders in 2022.

|  | Preferred Shares Owned | % of Preferred Shares Owned |  | SAFE Amount(S) | SAFE Date | SAFE Terms |
| --- | --- | --- | --- | --- | --- | --- |
| Investor A | 9,647,143 | 59% | Partner A | $2.5M | August, 2022 | Valuation Cap of $60M Conversion Discount of 15% |
| Investor B | 4,260,960 | 26% | Partner B | $2.5M | August, 2022 | Valuation Cap of $60M Conversion Discount of 15% |

The Company entered into an 18-month lease agreement on January 1, 2022. The lease payments for 2022 are $14,544 per month for an annual total of $174,528 and $14,980 per month for a six-month total of $89,880 in 2023.

## NOTE 8 - GOING CONCERN

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity realized losses and negative cash flows from operations every year since inception and may continue to generate losses. During the next twelve months, the Company intends to finance its operations with funds from a crowdfunding campaign and revenue-producing activities. The Company’s ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. No assurance can be given that the Company will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

## NOTE 9 - RISKS AND UNCERTAINTIES

### *COVID-19*

The spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses remains unclear currently. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods.

**Attachment 5:** `document_5.pdf`

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

# DOORVEST

**Andrew Luong** 3rd
Co-founder / CEO at Doorvest - we're hiring!
San Francisco Bay Area - Contact Info

500+ connections

Doorvest
University of San Francisco

## Experience

### Co-founder / CEO

Doorvest

2018 - Present - 2 yrs
San Francisco Bay Area

Doorvest is an end-to-end real estate investing platform that helps busy working people own and invest in passive income rental homes.

I love chatting about personal finance, investing and real estate! Shoot me an email:
andrew@doorvest.com

### Principal

NextGen Capital Ventures LLC
May 2014 - Present - 7 yrs 7 mos
Sacramento, CA & Houston, TX Area

I invest in single family & small multifamily homes across the US - often raising private capital to fund projects.

### Human Interest

1 yr 11 mos

### Partnerships Manager

Aug 2018 - Jul 2019 - 1 yr
San Francisco Bay Area

Human Interest (the Captain401) was founded to help address the #1 financial concern for Americans: not having enough money for retirement.

Specializing in working with startups & small businesses, Human Interest offers the ... see more

### Account Executive

Sep 2017 - Jul 2019 - 1 yr 11 mos
San Francisco Bay Area

### Account Executive

Indeed.com

Jul 2016 - Sep 2017 - 1 yr 3 mos
San Francisco Bay Area

Indeed is the #1 job site worldwide, available in more than 50 countries and 28 languages, and covering 94% of global GDP. With more than 200M unique visitors, Indeed has double the traffic of the next leading job site. According to a recent study, Indeed is the #1 source of external fees for employers.

### Account Executive / Sales Operations

Gengo

Feb 2015 - Jun 2018 - 1 yr 5 mos
San Francisco Bay Area

(Acquired by Lionbridge) Gengo is a global, people-powered translation platform enabling everyone to read and publish across languages with one click.

Show 1 more experience

## Education

University of San Francisco

Finance

## Licenses & certifications

California Licensed Real Estate Salesperson | CalBRE# 01972404

CALIFORNIA ASSOCIATION OF REALTORS®
Issued Mar 2015 - Expires Mar 2023

**Attachment 6:** `document_6.pdf`

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

**Brent Murri** 3rd

Principal at M13

Santa Monica, California, United States - Contact info

500+ connections

M13

Brigham Young University - Marriott School of Management

Experience

Principal

M13

2017 - Present - 4 yrs

Los Angeles, California, United States

M13 is an early-stage venture fund focused on consumer technology. We invest in emerging technologies that will drive change across large consumer verticals such as health & wellness, communications, food, financial services, and housing.

Board Member

Interviewing to

Jul 2021 - Present - 3 mos

Board Member

Passport

Jun 2019 - Present - 2 yrs 6 mos

Battery

Private Equity/Growth Equity

Battery Ventures - Full-time

2019 - 2017 - 1 yr

San Francisco Bay Area

Battery Ventures is a global, technology-focused investment firm pursuing the most promising companies and ideas. Founded in 1983, our firm makes venture-capital and private equity investments from offices in Boston, Silicon Valley and Israel. We work hard, but humbly, and are guided by data-driven processes. We seek out extraordinary businesses in ...use more

Strategy Business Development

Samsung NEXT

2015 - 2016 - 1 yr

San Francisco Bay Area

Business and product strategy for the mobile team.

Transaction experience included Samsung's acquisition of cloud storage provider, Joyent.

Show 3 more experiences

Education

Brigham Young University - Marriott School of Management

Bachelor of Science, Business Management, Strategy emphasis

2009 - 2013

Activities and Societies: VP Marriott Undergraduate Student Association Investment Banking Club

Volunteer experience

Volunteer Representative

The Church of Jesus Christ of Latter-day Saints

2007 - 2009 - 2 yrs

Provided religious education, community outreach, service and support to the people of the Washington D.C. Metro Area.

**Attachment 7:** `document_7.pdf`

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

# DOORVEST

**Justin Kasad** 3rd

Co-founder / CTO at Doorvest

San Francisco, California, United States - Contact info

500+ connections

Doorvest

UC Santa Barbara

## Experience

**Co-founder/CTO**

Doorvest - Full-time

Jul 2019 - Present - 2 yrs 5 mos

San Francisco, California, United States

**Mobile Engineer**

Healthline Media

Jan 2015 - Dec 2019 - 5 yrs

San Francisco Bay Area

(Acquired by Red Ventures) Healthline is the largest and fastest growing consumer health publisher in the world, reaching 85 million people a month.

**Front-end Engineer**

HealthRay

Feb 2012 - Dec 2014 - 2 yrs 11 mos

Palo Alto, CA

Development utilizing HTML5, CSS3, and JavaScript while leveraging the Backbone framework and a Ruby on Rails backend.

UCSF development to create a seamless customer experience on desktop, tablet and mobile using responsive CSS techniques. ... 200 more

**Co-founder, CTO**

3rd Node Inc.

Feb 2011 - Oct 2012 - 1 yr 9 mos

Co-founder of a company that develops software & mobile products as well as offers consulting services for medium to large scale businesses. We turn ideas into projects and find a way to approach the issue and what is required to reach and end-goal solution specifically tailored to our clients.

**Engineering**

Chegg Inc.

Jun 2011 - Dec 2011 - 7 mos

Santa Clara, CA

Assisted with the incorporation of several widgets including developing a dynamic rating widget using jQuery and Ajax to allow students to rate their classes. (Summer 2011)

Lead an Independent Project which piloted between ideas for a marketplace for cc ... 200 more

Show 1 more experience

## Education

**UC Santa Barbara**

Computer Science

2008 - 2011

Activities and Societies: New Venture Competition competitor

**Attachment 8:** `document_8.pdf`

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

**William Hsu** 3rd
Co-Founder, Partner at Mucker Capital
Los Angeles, California, United States - Contact info
500+ connections

Mucker Capital
Stanford University

Experience

**Co-Founder, Partner**
Mucker Capital
2011 - Present - 10 yrs
Greater Los Angeles Area

**SVP, Chief Product Officer**
AT&T Interactive
2008 - 2011 - 3 yrs

Organically doubled revenue to over $18 in 3 years. Established AT&T as a top 10 Internet media company in the U.S. based on revenue

AT&T Interactive is responsible for digital advertising & marketing services revenue ... see more

**Sr. Director of Product Marketing**
Spot Banner
2007 - 2008 - 1 yr
Head of Product Marketing

**Director of Product Management**
Green Dot Corp
2006 - 2007 - 1 yr

Head of Product Management for Green Dot Prepaid Card. Green Dot (NASDAQ:GOOT) is a Sequoia funded venture that provides payments and financial services products to the underbanned.

**Business Unit Manager, Product Marketing**
eBay
2004 - 2006 - 2 yrs
Head of eBay local trading

Show 2 more experiences

Education

**Stanford University**
BS IE, Terman School of Engineering

**The Wharton School**
MSA

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Doorvest Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 07-26-2019

**Physical Address:** 564 Market Street, San Francisco, CA, 94104

**Issuer Website:** http://doorvest.com

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 37

**Total Assets (Most Recent Fiscal Year):** $29,559,034.00

**Total Assets (Prior Fiscal Year):** $4,227,136.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $9,777,362.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $2,593,155.00

**Accounts Receivable (Most Recent Fiscal Year):** $15,783.00

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

**Short-Term Debt (Most Recent Fiscal Year):** $15,369,581.00

**Short-Term Debt (Prior Fiscal Year):** $1,078,235.00

**Long-Term Debt (Most Recent Fiscal Year):** $157,897.00

**Long-Term Debt (Prior Fiscal Year):** $35,944.00

**Revenues/Sales (Most Recent Fiscal Year):** $19,666,531.00

**Revenues/Sales (Prior Fiscal Year):** $1,835,734.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $18,178,945.00

**Cost of Goods Sold (Prior Fiscal Year):** $1,804,909.00

**Taxes Paid (Most Recent Fiscal Year):** $57,299.00

**Taxes Paid (Prior Fiscal Year):** $15,082.00

**Net Income (Most Recent Fiscal Year):** $-2,910,410.00

**Net Income (Prior Fiscal Year):** $-479,577.00

### Signatures

**Issuer:** Doorvest Inc.

**Signature:** Andrew Luong

**Title:** Co-Founder & CEO

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**Signature:** Brent Murri

**Title:** Partner

**Date:** 03-06-2023

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**Signature:** Justin Kasad

**Title:** CTO

**Date:** 03-06-2023

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**Signature:** Andrew Luong

**Title:** Co-Founder & CEO

**Date:** 03-02-2023