# EDGAR Filing Document

**Accession Number:** 0001807577
**File Stem:** 0001670254-23-000134
**Filing Date:** 2023-2
**Character Count:** 137217
**Document Hash:** 53cc461d35078a1e614f50833be659ca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000134.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001670254-23-000134

**CONFORMED SUBMISSION TYPE**: C-AR

**PUBLIC DOCUMENT COUNT**: 9

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cornbread CBD, PBC
- **CENTRAL INDEX KEY:** 0001807577
- **IRS NUMBER:** 832734432
- **STATE OF INCORPORATION:** KY

**FILING VALUES:**
- **FORM TYPE:** C-AR
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-26291
- **FILM NUMBER:** 23641810

**BUSINESS ADDRESS:**
- **STREET 1:** 2517 DATA DRIVE
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40299
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 1819 BROWNSBORO RD
- **STREET 2:** SUITE 203
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40206

## Ex-99

### Attached PDF Documents

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

# Annual Report

## Cover Page

Name of issuer:

Cornbread CBD, PBC

Legal status of issuer:

Firm: Other
Other (specify): Public Benefit Corporation
Jurisdiction of incorporation/Organization: KY
Date of organization: 1/31/2019

Physical address of issuer:

2517 Data Drive
Louisville KY 40299

Website of issuer:

https://www.cornbreadbomp.com

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

OK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

Current number of employees:

27

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $608,450.00 | $536,549.00 |
| Cash & Cash Equivalents: | $253,583.00 | $401,142.00 |
| Accounts Receivable: | $6,409.00 | $3,948.00 |
| Short-term Debt: | $692,518.00 | $25,312.00 |
| Long-term Debt: | $98,763.00 | $446,441.00 |
| Revenues/Sales: | $1,855,863.00 | $429,871.00 |
| Cost of Goods Sold: | $609,590.00 | $177,363.00 |
| Taxes Paid: | $175.00 | $0.00 |
| Net Income: | ($147,807.00) | ($9,022.00) |

Select the jurisdictions in which the issuer intends to offer the securities:

AL, AK, 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, NH, NJ, NM, NV, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, BS, GU, PR, VI, TV

## Offering Statement

Respond to each question in each paragraph of this part. Set forth each question and any notes, but not any instructions thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the form, either state that it is inapplicable, include a cross-reference to the responsive disclosure, or omit the question or series of questions.

Be very careful and precise in answering all questions. Give full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis to believe that it will actually occur within the foreseeable future. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

### THE COMPANY

1. Name of issuer:

Cornbread CBD, PBC

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

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any person) or company's similar

status or performing a similar function) of the issuer.

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Jim Higdon | vice-president | Combread CBD, PBC | 2019 |
| Eric J Zipperle | President | Combread CBD, PBC | 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 persons occupying a similar status or performing a similar function) of the issuer:

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Jim Higdon | Vice President | 2019 |
| Eric Zipperle | President | 2019 |

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

INSTRUCTION REQUESTION 5. For purposes of this Question 5, the term officer means a president, vice president, secretary, successor or principal financial officer, competitor or principal accounting officer, and any person that authority performing similar functions.

## PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Eric J Zipperle | 287712.0 Common | 28.9 |
| James C Higdon | 287712.0 Common | 28.9 |

INSTRUCTION REQUESTION 6. The above information must be provided as of a date that is not more than 120 days prior to the date of filing of this offering statement.

To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family through corporations or partnerships, or otherwise in a manner that would allow a person to direct an amount the voting of the securities (or funds in such direction or control - i.e., for example, a co-industry they should be included as being "beneficially owned") has should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held". To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer. For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan.

INSTRUCTION REQUESTION 7. Wefender will provide your company's Wefender profile as an appendix (Appendix A) to the Form C in PDF format. The submission will include all 8 of 8 items and "total items" links to an un-anticipated format. All values will be transmitted.

This means that any information provided in your Wefender profile will be provided in the SEC or response to this question. As a result, your company will be personally liable for misstatements and omissions in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Wefender profile carefully to ensure it provides all material information, it not false or misleading, and does not omit any information that would cause the information included to be false or misleading.

## 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.

8. Discuss the material factors that make an investment in the issuer speculative or risky.

Reliance on Third Party Growers. The Corporation will not grow hemp, and therefore the Corporation will rely upon licensed farmers to grow and provide the hemp. There can be no assurance that these farmers will be able to produce hemp in any given season, that they will comply with applicable laws, that they will be able to produce consistent, high quality hemp, or that they will sell an adequate supply of hemp to the Corporation's processors. Farmland availability, farmer availability, weather conditions, insects, human error, and government regulation and intervention are among many factors that could limit the production of hemp. Excessive demand for hemp by competitors, exclusive supply contracts with competitors, and high crop prices are among many factors that could impact the ability of the Corporation's processors to obtain the hemp raw material they need to produce their products. Furthermore, every hemp plant is different, and therefore every batch of hemp CBD products will be different. Thus, consistency in quality of both the hemp and the CBD product could be a problem.

Reliance on Third Party Processors. The Corporation will not process any green hemp materials, and therefore the Corporation will rely on one or more third parties to process the hemp. As such, there can be no assurance that these processors will be able to produce consistent, top of the line products that customers will purchase, or that the processors will sell to the Corporation. CBD generally remains a Schedule I controlled substance. There is a narrow exception for CBD produced in a manner consistent with the 2018 federal Farm Bill, associated federal regulations, and associated state regulations. There is no assurance that the Corporation's third-party processors will comply with applicable laws and regulations.

Reliance on the Management Team. The Corporation will be managed by Eric J. Zipperle, as President, and James Cecil Higdon, III, as Vice President (the "Management Team"). The Corporation's future profitability will depend largely upon the business acumen of the Management Team generally, and the President specifically. The President has the power to fill any vacancies caused by the death, disability, or resignation of a member of the Management Team. Although

additional persons may join the Corporation's Management Team, the Corporation's success is dependent in part on the continued availability to the Corporation of the services of the President. Likewise, the Corporation's success will depend, to a great extent, on the judgment and ability of the Management Team and its key personnel. The loss of the services of a member of the Management Team could have a materially adverse effect on the ability of the Management Team to successfully manage the Corporation's business.

Marketing Risks. To date, CBD companies have been unable to take advantage of certain marketing tools like Google Adwords and Facebook Ads. Because of the nature of business of hemp companies, large corporations like Facebook and Google have refused to allow the marketing of such products. As such, there can be no assurance that the rules related to the current marketing model (Instagram) will not change. As the market changes every day, new rules and regulations are being implemented that could have a negative effect on the Corporation and its profitability.

Restrictions on Promoting CBD Products. The FDA and the pharmaceutical industry have grown increasingly concerned at the proliferation of CBD products claiming to treat or cure certain diseases or conditions. Existing and future restrictions and controversies over what legally can and cannot be said about a CBD product could have a chilling effect on sales and could expose the Corporation to litigation.

Hemp Industry Risks Generally. The Corporation's business will be subject to the risks inherent in the ownership and operation of hemp-related business. These risks include, but are not limited to, those associated with the burdens of ownership of a hemp related business; general and local economic conditions; changes in supply of and demand for hemp and hemp CBD products (as a result, for instance, of a market collapse); the financial resources of consumers; changes in hemp policy, environmental and other laws; supply shortages; various uninsured or uninsurable risks; natural disasters; changes in government regulations (such as shipping hemp products across state lines); changes in hemp related taxes; negative developments in the economy that depress buying activity; environmental liabilities; terrorist attacks; war; and other factors that are beyond the control of the Corporation's board of directors and officers ("Company Management").

Potential Regulation of the Hemp Industry. There has not been any significant discussion recently regarding enhanced governmental scrutiny and/or increased regulation of the hemp industry. However, it is uncertain what form and in what jurisdictions such enhanced scrutiny, if any, ultimately may take. As a result, there can be no assurance that the foregoing will not have an adverse impact on the Corporation or otherwise impede the Corporation's ability to effectively achieve its business objectives.

Problems with Shared State-Federal Regulatory Power. The Farm Bill contemplates the ability of a state government and the federal government to cooperate and effectively work together to facilitate the growth and maintenance of the CBD industry. Delays and breakdowns at the federal level, state level or both could adversely affect the Corporation.

Backlash from the Healthcare Industry. Existing players in the U.S. health care system who could lose sales volume or revenues due to increased sales of CBD products pose a continuing short-term and long-term threat to the CBD industry because of their tremendous financial resources and lobbying capabilities.

General Economic and Market Conditions. The hemp industry generally and the success of the Corporation's business activities both will be affected by general economic and market conditions, as well as by changes in laws and national, international and state political and socioeconomic circumstances. A sustained downturn in the United States or global economy (or any particular segment thereof) could adversely affect the Corporation's profitability or impede the Corporation's ability to maintain or continue any growth in sales.

Market Conditions. The Corporation's strategy may be based, in part, upon the premise that qualifying hemp will be available for purchase by the Corporation at a price that the Corporation considers favorable. Further, the Corporation's strategy relies, in part, upon local hemp farmers outperforming other geographical areas. No assurance can be given that hemp CBD will always be obtainable at favorable prices or that the market for such hemp will hold in value, as the case may be, since this will depend, in part, upon events and factors outside the control of the Corporation.

Highly Competitive Market. The activity of buying a large amount of hemp CBD inventory for resale is highly competitive and involves a high degree of uncertainty. The Corporation will be competing for customers with other local and national hemp CBD brands, as well as the numerous large players that continue to enter the market every day. Hemp CBD is a limited commodity, and there can be no assurance that a large scale retailer will not buy the entire supply, leaving small businesses out of business. There can be no assurance that governmental intervention into the market will not have a negative impact on the profitability and success of the Corporation.

Taxation and Other Causes of Price Increases. Federal, state and local governments may create and assess new forms of taxes on the sale, processing and/or storage of hemp and CBD products, thereby making the cost to the consumer prohibitive. As witnessed in the domestic tobacco industry, these taxes could substantially decrease the demand for the Corporation's products. Furthermore, because the Corporation anticipates selling a substantial portion of retail products to millennials, any factor that adversely impacts a millennial's disposable income could adversely impact the Corporation.

No Assurance of Investment Return. The Corporation cannot provide assurance that the Corporation will be profitable, that it will be able to generate returns for its Shareholders, or that the returns will be commensurate with the risks of investing in the Stock. There can be no assurance that any Shareholder will receive any distribution from the Corporation. Accordingly, an investment in the Corporation should only be considered by persons who can afford a loss of their entire investment.

Public Benefit Corporation Risks. The Corporation is a public benefit corporation, meaning the Corporation takes into account the interest of all stakeholders, not just shareholders. As such, the Corporation will make decisions based on the morality and efficacy of the issue at hand, and not necessarily the profitability of such decision. Therefore, there can be no assurance that the Corporation will continue to remain profitable after its social initiatives are accounted for and realized.

Dilution from Issuances of Additional Stock. If the Corporation issues additional shares of its stock other than in accordance with existing ownership percentages, a Shareholder's ownership interest in the Corporation will be diluted.

No Market for Stock; Restrictions on Transfers. Stock in the Corporation has not been registered under the 1933 Act, the securities laws of any U.S. state or the securities laws of any other jurisdiction and, therefore, cannot be sold unless they

are subsequently registered under the 1933 Act and other applicable securities laws, or an exemption from registration is available. The Corporation does not contemplate making a registration under the 1933 Act or other securities laws. There is no public market for Stock in the Corporation, and one is not expected to develop. A Shareholder will not be permitted to assign, sell, exchange or transfer any of the Shareholder Stock, except as provided in the Shareholder Agreement. Shareholders must be prepared to bear the risks of owning Stock for an extended period of time.

Insolvency and Lack of Liquidity. For a variety of reasons, it is possible that the Corporation may run out of cash prior to reaching a sales volume that yields sufficient cash inflow to pay the Corporation's debts and expenses as they come due in the ordinary course of business.

Unavailability of Insurance against Certain Catastrophic Losses. The Corporation intends to maintain property, commercial general liability and workers compensation insurance with limits and policy specifications that Company Management believes are customary for this industry. However, certain losses of a catastrophic nature, such as wars, natural disasters, terrorist attacks or other similar events, may be either uninsurable or, insurable at such high rates that to maintain such coverage would cause an adverse impact on the related investments. In general, losses related to terrorism are becoming harder and more expensive to insure. Most insurers are excluding terrorism coverage from their all-risk policies. In some cases, the insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can increase greatly the total costs of casualty insurance for a property. As a result, the Corporation's business and properties may not be insured against terrorism.

Environmental Liabilities. The Corporation may be exposed to substantial risk of loss arising from the selling CBD products having undisclosed or unknown environmental, health or occupational safety issues, or arising from inadequate reserves, insurance or insurance proceeds for such matters that have been previously identified. Under various federal, state and local laws, ordinances and regulations, an owner of a hemp related business potentially may be liable to consumers purchasing products made from affected hemp. Such laws may now or hereafter impose joint and several liability, which can result in a party being obligated to pay for greater than its share, or even all, of the liability involved. Such liability also potentially could be imposed without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances may adversely affect the owner's ability to sell hemp products or to borrow funds using inventory as collateral, which could have an adverse effect on the Corporation's returns. The Corporation is also at risk of any catastrophic environmental event that may lead to a shortage of Kentucky grown hemp that would be detrimental to the availability of Cornbread CBD products.

Banking Risks. There have been many stories of certain banks suddenly shutting down and freezing certain accounts. A financial event may occur that will negatively impact the operation of the Corporation and its profitability. Such risks include having funds frozen by the Corporation's bank, shutting down the payment processor so that transactions fail to process, and charging higher prices to provide banking and financing services that may be out of the realm of profitability for the Corporation.

Because the investor holds no voting rights, the holders of a majority-in-interest of voting rights in the Company could limit the investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering).

These changes could result in further limitations on the voting rights the investor will have as an owner of equity in the Company, for example by diluting those rights or limiting them to certain types of events or consents.

To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata 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 equity, an Investor's interest will typically also be diluted.

Based on the risk that an Investor's rights could be limited, diluted or otherwise qualified, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

FDA could never issue regulations, which prevents major retailers from stocking CBD, which causes the CBD market to shrewd on the vine.

Coronavirus's effect on the economy causes the CBD industry irreparable harm due to a sharp dip in consumer spending.

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

INSTRUCTION REQUESTED: A brief, generalised statement and include only those factors that are unique to the issuer. Discussion should be tailored to the issuer's business and the offering and should not repeat the factors addressed in the issuer's or both above. No specific number of risk factors as required to be identified.

# Ownership and Capital Structure

## DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Common Stock | 1000000 | 755727 | Yes |
| Preferred | 1000000 | 234131 | No |

Securities Reserved for

Class of Security

Class of Security Issuance Upon Exercise or Conversion

Warrants:

Options: 83415
Common
Stock Shares

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

Loan

| Lender | U.S. Small Business Administration |
| --- | --- |
| Issue date | 06/08/20 |
| Amount | $54,200.00 |
| Outstanding principal plus interest | $52,690.90 as of 01/01/23 |
| Interest rate | 3.75% per annum |
| Maturity date | 06/09/50 |
| Current with payments | Yes |

On June 9, 2020, the Company executed the standard loan documents required for securing a loan (the "EDIL loan") from the United States Small Business Administration ("the SBA") under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the EDIL loan is $54,000, with proceeds to be used for working capital purposes. Interest on the EDIL loan accrues at the rate of 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twenty-four months from the date of the EDIL loan to the amount of $250. The balance of principal and interest is payable thirty years from the date of the promissory note. In connection with the EDIL loan, the Company executed the EDIL loan documents, which include the SBA Second Disaster Loan Note, dated June 9, 2020, and the Security Agreement, dated June 9, 2020, each between the SBA and the Company. This loan is secured by the assets of the Company.

Loan

| Lender | Lawrence Doyle |
| --- | --- |
| Issue date | 04/14/21 |
| Amount | $100,000.00 |
| Outstanding principal plus interest | $50,000.00 as of 01/01/23 |
| Interest rate | 0.0% per annum |
| Maturity date | 04/15/24 |
| Current with payments | Yes |

During 2021, the Company purchased from Lawrence Doyle, a shareholder 71.92% shares common stock placed in treasury, payable in four annual installments of $25,000 with the first payment beginning in 2021. A non-interest bearing promissory note has been issued for the portion of the amount unpaid. This loan is unsecured.

Loan

| Lender | Gill Holland |
| --- | --- |
| Issue date | 09/19/22 |
| Amount | $300,000.00 |
| Outstanding principal plus interest | $300,000.00 as of 01/01/23 |
| Interest rate | 7.0% per annum |
| Maturity date | 09/30/25 |
| Current with payments | Yes |

Gill Holland, an investor, loaned the Company $300,000 in September 2022 to facilitate the down payment of the seller-financed acquisition of the assets of the Company's processing partner.

Loan

| Lender | Henry Scott Bassler |
| --- | --- |
| Issue date | 10/03/22 |
| Amount | $900,000.00 |
| Outstanding principal plus interest | $830,862.01 as of 01/06/23 |
| Interest rate | 6.0% per annum |
| Maturity date | 09/30/25 |
| Current with payments | Yes |

This is the seller-financed portion of the acquisition of our processing partner. In October 2022, we purchased the assets of our processor for $1.2mm, paid for with $300,000 in cash and another $300,000 borrowed from investor Gill Holland for a $600,000 down payment, with the remaining $600,000 in this seller-financed instrument.

None.

INSTRUCTION REQUISITION 24: name the creditor, amount owed, interest rate, maturity date, and any other material terms.

25. What other exempt offerings has the issuer conducted within the past three years?

| Offering Date | Exemption Section 4(a)(2) | Security Type Common stock | Amount Sold $100,000 | Use of Proceeds General operations |
| --- | --- | --- | --- | --- |
| 1/2019 |  |  |  |  |
| 12/2022 | Regulation D, Rule 506(b) | Preferred stock | $1,675,000 | General operations |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering. In which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. If the issuer was incorporated or organized within the past three years, any promoter of the issuer;

4. or any immediate family member of any of the foregoing persons.

☐ Yes
☑ No

INSTRUCTIONS TO QUESTION 26. The term transaction includes, but is not limited to, any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of paragraph (1) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering, and using the same information described in Question 6 of this Question and Answer format.

The term "member of the family" includes any child, unqualified, grandchild, parent, acquaintance, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes adoptive relationships. The term "spiritual equivalent" means a validation or copying a relationship generally equivalent to that of a spouse.

Complete the amount of a related party's interest in any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to meet the approximate amount of the interest, disclose the approximate amount involved in the transaction.

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☑ Yes
☐ No

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

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

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

#### Overview

One of the fastest growing CBD brands in America (to our knowledge), shipped nationwide from Kentucky.

Before Cornbread Hemp, there were no CBD brands (to our knowledge) that embraced the full history of cannabis in America. To solve this problem, Cornbread Hemp builds on Kentucky's 250-year cannabis tradition, even when it wasn't legal.

Our mission is to improve the quality of life of our customers. We do this by providing the highest quality USDA organic CBD products made from Kentucky-grown hemp flowers, with the highest legal level of THC.

In five years, we see Cornbread Hemp is a nationally recognized CBD brand available in major retailers nationwide.

#### Milestones

Cornbread CBD, PBC was incorporated in the State of Kentucky in January 2019.

Since then, we have:

- 300% YoY Growth
- $6.5M gross revenue in 2022
- Raised $392K on Wefunder in 2020 from 900 investors; then raised $1.675M in 2022 in Reg D.
- 5.3 LTV/CAC and 90% gross margins
- Acquired our processing and manufacturing partner in October of 2022 to be vertically integrated.
- USDA organic, GMP certified, third-party lab tested, FDA registered.
- Monthly automatic order subscribers tripled in 2022 and is growing more than 20% MoM.

#### Historical Results of Operations

Our company was organized in January 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

- *Revenues & Gross Margin.* For the period ended December 31, 2021, the Company had revenues of $1,855,863 compared to the year ended December 31, 2020, when the Company had revenues of $429,871. Our gross margin was 67.15% in fiscal year 2021, compared to 58.74% in 2020.
- *Assets.* As of December 31, 2021, the Company had total assets of $608,450, including $253,583 in cash. As of December 31, 2020, the Company had $536,549 in total assets, including $401,142 in cash.
- *Net Loss.* The Company has had net losses of $147,807 and net losses of $9,022 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- *Liabilities.* The Company's liabilities totaled $791,281 for the fiscal year ended December 31, 2021 and $471,753 for the fiscal year ended December 31, 2020.

#### Liquidity & Capital Resources

To-date, the company has been financed with $1,708,637 in debt and $1,775,000 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We

don't have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Cornbread CBD, PBC cash in hand is $799,569.11, as of January 2023. Over the last three months, revenues have averaged $1,260,317/month, cost of goods sold has averaged $116,331/month, and operational expenses have averaged $573,110/month, for an average net margin of $570,876 per month. Our intent is to be profitable in 12 months.

Since 12/31/22, we have made significant progress in ramping up production to meet demand from our D2C channel and our growing retail program.

For the next two quarters, we expect our revenues to grow along with our expenses, as we continue to deploy resources to acquire customers. We project our average monthly revenue will be $1,575.00, with $145,413 in average monthly COGS.

We are not yet profitable. We have raised $1,675mm in Reg D in 2022 and preparing a Wefunder campaign for an additional $325,000 on the same terms. Our projections indicate we should hit profitability in 2024. (Forward-looking statements cannot be guaranteed.)

We rely on our revenue generated from e-commerce, wholesale, and Amazon sales, in addition to some short-term financing.

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

INSTRUCTIONS TO QUESTION 29: The discussion must cover each year for which financial statements are provided. For issuers with no prior operating history, the discussion should focus on financial statements and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether historical results and cash flows are representative of what investors should expect in the future. This may account for the proceeds of the offering and any other known or pending sources of capital. However, the proceeds from the offering will affect liquidity, whether resulting from funds and any other additional funds is necessary to the inability of the business, and how quickly the issuer anticipates entry to available cash. Due to the other available sources of capital or the business, such as lines of credit or required contributions by shareholders. References to the issuer in this Question 29 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

1. Jim Higden, certify that:

(1) the financial statements of Cornbread CBD, PBC included in this Form are true and complete in all material respects; and

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

Jim Higden
vice-president

## OTHER MATERIAL INFORMATION

31. In addition to the information expressly required to be included in this Form, include:

- (1) any other material information presented to investors; and
- (2) such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

All information presented to investors hosted on Wefunder.com is available in Appendix A: Business Description & Plan.

INSTRUCTIONS TO QUESTION 30: If information is presented to investors in a format, media or other means not able to be reflected in text or possible document format, the issuer should include:

- (a) a description of the material content of such information;
- (b) a description of the format in which such disclosure is presented; and
- (c) in the case of disclosure in token, order or other dynamic media or format, a transcript or description of such disclosure.

## ONGOING REPORTING

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website, no later than:

120 days after the end of each fiscal year covered by the report.

33. Once posted, the annual report may be found on the issuer's website at:
https://www.cornbreadbemp.com/invest

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

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 13(d);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;

3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Sections 4(c)(6), including any payment in full of debt securities or any complete redemption of redeemable securities, or the issuer liquidates or dissolves in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eric J Zipperle

Eric Zipperle

Jim Higdon

Appendix E: Supporting Documents

## Signatures

*Intentional misstatements or omissions of facts constitute federal criminal violations. See 18 U.S.C. 1001.*

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

Cornbread Hemp Early Bird Convertible Note

Cornbread Hemp Convertible Note

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eric J Zipperle

Eric Zipperle

Jim Higdon

Appendix E: Supporting Documents

*Pursuant to the requirements of Sections 4(c)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Annual Report and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.*

Cornbread CBD, PBC

By

Jim Higdon

Co-founder & CCO

*Pursuant to the requirements of Sections 4(c)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Annual Report and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.*

Eric Zipperle

CEO and Co-founder

1/30/2023

Jim Higdon

Co-founder & CCO

1/30/2023

*The Annual Report must be signed by the issuer, its principal executive officer or officers, its principal financial officer, its controller or principal accounting officer and at least a majority of the board of directors or persons performing similar functions.*

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`

# CORNBREAD HEMP®
2022 Report

Dear investors,

The end of 2022 marked a turning point in the growth of Cornbread Hemp as a company. In the fourth quarter, we closed on the acquisition of our processing partner in October, had our first $1M revenue month in November, and in December, we closed the Reg D portion of our seed round with $1,675,000 in the bank. We finished 2022 with $5,500,000 in net revenue (after discounts), after doing $1,900,000 in net revenue in 2021. Cornbread Hemp is in the process of growing out of a startup and into a growth-stage company as we continue to acquire new customers at an exponential rate.

We need your help!

In 2023, we will need help with CFO duties, including managing our financial reporting, maintaining our projections and budgets, and supporting our financial infrastructure. We will need HR help, including recruiting new marketing talent and defining our compensation and benefits packages. We also need help with warm introductions to the key buyers at multi-state retailers that carry CBD products.

Sincerely,

CBO and Co-founder

Co-founder & CCO

# Our Mission

In five years, we see Cornbread Hemp is a nationally recognized CBD brand available in major retailers nationwide.

See our full profile

How did we do this year?

Report Card

### The Good

Closed a Bag 0 record with $1,075,000 raised.

Acquired our processing partner to become vertically integrated.

Ended 2022 with $6,500,000 in net revenue (before discounts).

### The Bad

Our 828 sales team did not achieve our growth goals for the year.

A postcard that we sponsored about the 'Combined Hate' was pulled from the internet for reasons beyond our control.

The FDA did not issue regulations in 2022 to categorize C&D as a dietary supplement.

## 2022 At a Glance

January 1 to December 31

**$1,855,863 +332%**  
Revenue

**-$147,807**  
Net Loss

**$692,518 +26%**  
Short Term Debt

**$3,025,000**  
Raised in 2022

**$799,569**  
Cash on Hand  
As of 01/26/23

INCOME

BALANCE

NARRATIVE

● Revenues ● Profit

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

Net Margin: -0% Gross Margin: 67% Return on Assets: -24% Earnings per Share: -$0.15 Revenue per Employee: $68,735 Cash to Assets: 42% Revenue to Receivables: 28,957% Debt Ratio: 130%

CSH\_20\_21\_Financials.pdf

## We ♥ Our 827 Investors

### Thank You For Believing In Us

| Sarjane Capital Investment | SB Locklear | David Moran | Johan C. Edwards | Olay Mowb | Gene Steynm | Prior Value |
| --- | --- | --- | --- | --- | --- | --- |
| Toronto Mard | Craig Beltsky | Oleks Aronah | Craig J. Van Loon | Terence Montgomery | Raymond Brown (Dentist) | Henry Hamer |
| Linda Jordan | Robert Kudson | Douglas Cole Kessler | Keith Nairn | Joe Scott (FORTALE) | Ann Agde | Arist Jacobson |
| Mid Bed Carter | Lyle Bates | Charles Meissner | Jack Pannell | Oliver Peacock (TERM) | Travis Vondar | Curt Brackenridge |
| Carolyn Meringer | Anthony Mills | David Moran | Shirley Atkinson | David Carr | Maggie Hughes | Sharonita Reed |
| Michael Sancus | Michael Kessler | Michael L. Lumsden Chs. | Brian Slutka | Joseph Klinger | Sam Moore | Christopher J. Reed |
| Tawuma Dole | Scott White | Sharon Johnson | Andrew Truphinski | Bernie Forsythe | Buddha Nairn | Lynn Davis |
| Jose Aranda | Craig Hamer | Donald Cunningham | Thomas Tisdale | Jayal Whitehead | Jean Jemison | Wendy Cushman |
| Andrew Newton | James David Shire | Tim Sauer | Michael Yatesworth | Paula E. Colonna | Jared Brakes | Tom Holt |
| J. Douglas Williams | Sharpeva P. Maguire | Mark Rodger Glass | Chris McKay | Jesse Santiago | Erica Swartz-Sarrington | Lance R. Ryan |
| Peter De Wolf-Daniel | James Kessler | Jayda A. Spitz | Michael Kates | Salvador Skrzynski | Lee Jervis | Charles Ellis |
| Lara Robison | Katrin Bock | Sam Murray | Park Mann | Jerome Zhu | Yakima Nicholson | Philip Wood |
| Philip Hatton | Ricky Bass | David Bine | Lyndon Wynn Carter | Douglas Andrew Keating | Tony Wilkins | Daniel Williamson |

| Patrick Harshaw | Alan Lynn Halsted | Alan Fugler | Vincent Scott | Jesper Davis | Leonardo Mayan | Douglas Cole Paredes |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Terri D'Arcen | Jason M. Henry III | Thomas D. Ryan | Regan Thomas | Christopher D. Ryan | Walter Russell | J. D. Dunn |  |
| Johnson Hon | Dr. Paul A. Madura-Druller | Wendy D. Jeffery | Justin Navarro | Luke Williams | Landon Ainstead | Tony Guillory |  |
| Peter Drenke | Jean A. Kelley | Jim K813 | Bruce Turnipard | Lu Ronca Mitchell | Neil Howard Levin | Larry Hutchinson |  |
| Michael T. Kudsmann | Kevin Guy King-Vick | Zachary Homan | Michael Phillips | Paula Radical | Frank Kallarda | David Ross Russell III |  |
| Emmanuel O'Brien | Jack Hensman | Mary Marie Ayres | Jordan Leach | Kateen David Williams | Chloe Skurmeyer | Monika Zachary |  |
| Gene O'Dell | Andrew Gerson | Heggie Hayden | Travis Oertner | Denise Kellermann | Craig Hensel | Veronica Montgomery |  |
| Udo Handa-Garrington | Ken Hughes Boyle | Anthony Autan | Joseph Sutton | Jeffrey Tottwich | William Britton | Lara Seder |  |
| Paul D. Green | Chris Highton | Christopher Keadell | Lee Sasse | Barry O'Byrne | Debbie Saechee | Suzannele Gordon |  |
| Everette SPENNER | Michael Alexander | Andrew Swartz | Luise Lopez | Ryan Madden | Joseph CHRISTY | Barbara Walker |  |
| Matthew J. Vines | Jerry D. Bryche | Greg Breisch | David Peasley | Patricia Lewis | Debra Bryant | Chad Pryor |  |
| Jay Tannenbaum | Jonathan Baker | Bob Spitz | Steve Sullivan | Steven Bly, Walker | Sharon M. Jones | Joan Rodriguez |  |
| Jennifer Eaton-Jackson | James Parley | Inferior Tumulakis | Jimmy Woods | Rose Lopez | Monika Sandelbrink | Philip B. Bader |  |
| Winston Fleming | Nate McCoy | Newman Lipowicz | Brad Coleman | Jamie Lee Watkins | Adrian Harris | Larry Atkins |  |
| Alex Aldred | Ny Yoruba Mose | Harold King | Harry Hennington | Dean K. Nutman | Tommy Noddy | Florence Henry, Miltus |  |
| Ed D'Jouck | Wendy D'Zarda | Neville George | Michael Fischer | Shane Drenner | Dr. Blackmoor | Gordon Lemond |  |
| Gene Rachmanney | Zach Thomasian | Theron Charles | Francis Hansen-Barnes | Bill Dunn | Robert Carina | Frank Howard |  |
| James DeCoss | Stewart Williams, Jr. | Nathaniel L. Macdon | Harold Belayan | Timothy Davenport | Juan P. Jones | Elizabeth Hatton |  |
| Omar A. Mishra | Michael Mooney | Jose Mishra-Lemna | Annapathy D'Elman | Brittany Kuchuk | Philip Blackford | Francis Kuchuk |  |
| Alana Gonzalez | Edson Keenan | James D'Andrews | Tammy Koon | Thomas Maynard-Goldwyn | Leon Blanderson | Ken Moshon |  |
| Michael Klesges | Natalie Lyons | Samuel Kuntze-Hansdunn | Paul Simon | Florence Kessler | Bob Silver | John R. Mason |  |
| Vincent Frazier | Justin Jemison | Heidi Schering | Angela Perry | Joseph E. MacKusky | Edward Absentor | Ken Young |  |
| Travis Mather | William Jackson | Jason Kildare | Ben Fox | Keith Guenn | Shannon Jirwin | Craig Mody |  |
| Alan Kelley | Michael Bates | Ananda Hong | Leonard Kessler | John King-Baldwin | Ken Hader | Karl Heaton |  |
| Susan Whitteman | Dean Glyn Jones | John H. Jones | John Jay-Blancrum | John Loudon | Robert Loudon | John Loudon |  |
| Conny Johnson | Charmont Eudy | Donna Armstrong | Kevin W. Brown | Felix Ainshower | Michael Azzio | Donald E. Purging |  |
| Michael Hatton | Jon Bumler | Kylin Curtis | Kevin Inge | Judy Beckman | Samuel All | Chris Kingsman |  |
| Michael Kohn | David Burns | Jason Kohn | Oliver James-Barnes | Yann-Ann Hwang | David Flanagan | Rosalie Kohn |  |
| J. Sanner | Mark Jaehnger | Bridget Jankensen | Jules Berry | Jason Guthrie-Cassette | Jared Koder A. Charnock | Jesse Langer |  |
| Jo. Hennemann | Jill C. Coleman | Kate Meyer-Carlfield | Deborah Gherrich | Eric H. Chiles | Sandra Chiles | Shane Meyer |  |
| Felix Clark | Andrew Muir | Lamy David | Dylan Barnhardt | Glenn M. Browne | Neil H. Kollman | Jim Hopper |  |
| Jana Bachner | Adrian C. Moore | Ken Nandi | Bob Silver | Len Epple | De Blackmoor | Anita Kessler |  |
| Jeff Herrmann | Jeff Goggins | Henry Johnson | Mike Benson | Morris Gerson | James W. Burke | James W. Burke |  |
| Arthur Ibadillo | Everett H. Bonnett | Regan Shankhugh | Rosemont Durham | Josh Veling | Dean Hobson | Jonathan Arndt |  |
| John E. Bunn | Justin H. Bunn | Jon J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. | Dale Kessler | Norman Arnold | David M. Kohn | Jonathan A. Gorman |  |
| Matthew Brown | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J | Tyler Johnson | Jerome J. Brown | Jon Brown | Susan Robbie Fenn |  |
| James H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. | Jenny H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H |  |  |  |  |  |  |
| Jana Bachner | Jana B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B. B |  |  |  |  |  |  |
| Jeff Herrmann | Jeff Goggins | Henry Johnson | Mike Benson | Morris Gerson | James W. Burke | James W. Burke |  |
| Arthur Ibadillo | Everett H. Bonnett | Regan Shankhugh | Rosemont Durham | Josh Veling | Debra Hobson | Jonathan Arndt |  |
| John E. Bunn | Justin H. Bunn | Jon J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J | Dale Kessler | Norman Arnold | David M. Kohn | Jonathan A. Gorman |  |
| Matthew Brown | Jerry Macmillan | Jon J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. |  |  |  |  |  |
| James H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |
| Jama B. Brown | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. |  |  |  |  |  |
| James H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |
| James H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |
| James H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |
| David H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |
| David H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H. H | Jerry Macmillan | John J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J. J |  |  |  |  |  |

# Thank You!

# From the Cornbread Hemp® Team

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

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

**Eric Zipperle**
Co-founder & CEO

**Jim Higdon**
Co-founder & CCO

**Jon Katz**
Marketing Board Advisor
*As the Chief Marketing Officer of
Fresher, Jon receives the agency's
youth firm $1000 in $1000 over three
years before his end in 2019. He is now
VP of marketing at NIA, the advisor
Combined on our marketing efforts.*

**Dr. Leslie Mudd**
Pharmaceutical & Medical
Research Board Advisor
*Dr. Mudd led the oncology pharmacy
team at the Brown Cancer Center at the
University of Louisville Hospital. She
advises the Combined leadership team
and our customers on CBD drug
connections, as well as consulting on
product development.*

**Tanya Hahn**
Wholesale Manager
*Tanya's move to Combined with
organizing launching new products
into Kroger and Whole Foods. To drive
her biggest accomplishment at
Combined is getting Combined Many
products into the Dorothy Lane stores in
Ohio.*

**Melissa Ryan
Chipman**
Customer Service and
Community Engagement
*With experience in value James Reit-based
manager, Melissa has taken the lead in
our company leading customer service
demonstrators and community engagement
through social media management.*

**James Reid**
Brand Director
*James is a Gold Class and winning
product, whose expertise ranges from
future characteristics to brand
development in commercials for global
towards including AT&T, Novart, Real
Light, Honda, and Salesforce.*

**Donald C Freytag**
Advisor and EOS
consultant
*Don helps the Combined leadership
team implement the Georgetown
Operating System as designed by Glen
Wollaston's Creative team.*

## Details

### The Board of Directors

| DIRECTOR | OCCUPATION | ADMISS |
| --- | --- | --- |
| Jim Higdon | Vice-president @ Combined CBD, PBC | 2019 |
| Eric J Zipperle | President @ Combined CBD, PBC | 2019 |

### Officers

| OFFICER | TITLE | ADMISS |
| --- | --- | --- |
| Jim Higdon | Vice President | 2019 |
| Eric Zipperle | President | 2019 |

### Voting Power

| REVIEW | SECURITIES HELD | VOTING POWER |
| --- | --- | --- |
| Eric J Zipperle | 287,712 Common | 28.9% |
| James C Higdon | 287,712 Common | 28.9% |

### Past Equity Fundraises

| DATE | AMOUNT | SECURITY | EXCEPTION |
| --- | --- | --- | --- |
| 05/2019 | $100,000 | Common Stock | Section 4(a)(2) |
| 05/2020 | $4,437 |  | Other |
| 06/2020 | $54,200 |  | Other |
| 10/2020 | $392,871 |  | 4(a)(6) |
| 04/2021 | $100,000 |  | Other |
| 12/2021 | $369,650 |  | Other |
| 06/2022 | $150,000 |  | Other |
| 09/2022 | $300,000 |  | Other |
| 10/2022 | $900,000 |  | Other |
| 12/2022 | $1,675,000 | Preferred Stock | Regulation D, Rule 509(b) |

For use of proceeds to a third ground operations.

### Outstanding Debts

| LENDER | ISSUED | AMOUNT | EXCEPTIONS | INTEREST | MATURITY | CU |
| --- | --- | --- | --- | --- | --- | --- |
| U.S. Treasury | 05/01/2020 | $4,437 | $0 | 0.0% | 03/12/2021 |  |
| U.S. Small Business Administration | 06/09/2020 | $54,200 | $52,691 | 3.76% | 06/09/2050 | Ye |
| Lawrence Doyle | 04/15/2021 | $100,000 | $50,000 | 0.0% | 04/15/2024 | Ye |
| Wayflyer | 12/20/2021 | $369,650 | $0 | 3.25% |  |  |
| Lawrence Doyle | 06/30/2022 | $150,000 | $0 | 10.0% | 06/30/2023 |  |
| Gill Holland | 09/20/2022 | $300,000 | $300,000 | 7.0% | 09/30/2025 | Ye |
| Henry Scott Boeder | 10/04/2022 | $900,000 | $830,862 | 6.0% | 09/30/2025 | Ye |

### Related Party Transactions

None.

### Capital Structure

| CLASS OF SECURITY | SECURITIES (OR AMOUNT) AUTHORIZED | SECURITIES (OR AMOUNT) OUTSTANDING | VOTING WANTS |
| --- | --- | --- | --- |
| Common Stock | 1,000,000 | 755,727 | Yes |
| Preferred | 1,000,000 | 214,131 | No |
| SECURITIES OBSERVED FOR ISSUANCE UPON EXERCISE OR CONVERSION |  |  |  |
| Warrants: | 0 |  |  |
| Options: | 83415 Common Stock Shares |  |  |

# Risks

Coronavirus's effect on the economy causes the CBD industry irreparable harm due to a sharp dip in consumer spending.

FDA could never issue regulations, which prevents major retailers from stocking CBD, which causes the CBD market to shrivel on the vine.

Because the investor holds no voting rights, the holders of a majority-in-interest of voting rights in the Company could limit the investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering).

These changes could result in further limitations on the voting rights the investor will have as an owner of equity in the Company, for example by diluting those rights or limiting them to certain types of events or consents.

To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an investor's interests in the Company may be diluted. This means that the pro-rata 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 equity, an investor's interest will typically also be diluted.

Based on the risk that an investor's rights could be limited, diluted or otherwise qualified, the investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

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

Banking Risks. There have been many stories of certain banks suddenly shutting down and freezing certain accounts. A financial event may occur that will negatively impact the operation of the Corporation and its profitability. Such risks include having funds frozen by the Corporation's bank, shutting down the payment processor so that transactions fail to process, and charging higher prices to provide banking and financing services that may be out of the realm of profitability for the Corporation.

Environmental Liabilities. The Corporation may be exposed to substantial risk of loss arising from the selling CBD products having undisclosed or unknown environmental, health or occupational safety issues, or arising from inadequate reserves, insurance or insurance proceeds for such matters that have been previously identified. Under various federal, state and local laws, ordinances and regulations, an owner of a hemp-related business potentially may be liable to consumers purchasing products made from affected hemp. Such laws may now or hereafter impose joint and several liability, which can result in a party being obligated to pay for greater than its share, or even all, of the liability involved. Such liability also potentially could be imposed without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances may adversely affect the owner's ability to sell hemp products or to borrow funds using inventory as collateral, which could have an adverse effect on the Corporation's returns. The Corporation is also at risk of any catastrophic environmental event that may lead to a shortage of Kentucky grown hemp that would be detrimental to the availability of Condensed CBD products.

Unavailability of Insurance against Certain Catastrophic Losses. The Corporation intends to maintain property, commercial general liability and workers compensation insurance with limits and policy specifications that Company Management believes are customary for this industry. However, certain losses of a catastrophic nature, such as wars, natural disasters, terrorist attacks or other similar events, may be either uninsurable or, insurable at such high rates that to maintain such coverage would cause an adverse impact on the related investments. In general, losses related to terrorism are becoming harder and more expensive to insure. Most insurers are excluding terrorism coverage from their all-risk policies. In some cases, the insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can increase greatly the total costs of casualty insurance for a property. As a result, the Corporation's business and properties may not be insured against terrorism.

Insolvency and Lack of Liquidity. For a variety of reasons, it is possible that the Corporation may run out of cash prior to reaching a sales volume that yields sufficient cash inflow to pay the Corporation's debts and expenses as they come due in the ordinary course of business.

No Market for Stock; Restrictions on Transfers, Stock in the Corporation has not been registered under the 1933 Act, the securities laws of any U.S. state or the securities laws of any other jurisdiction and, therefore, cannot be sold unless they are subsequently registered under the 1933 Act and other applicable securities laws, or an exemption from registration is available. The Corporation does not contemplate making a registration under the 1933 Act or other securities laws. There is no public market for Stock in the Corporation, and one is not expected to develop. A Shareholder will not be permitted to assign, sell, exchange or transfer any of the Shareholder' Stock, except as provided in the Shareholder Agreement. Shareholders must be prepared to bear the risks of owning Stock for an extended period of time.

Dilution from Issuances of Additional Stock. If the Corporation issues additional shares of its stock other than in accordance with existing ownership percentages, a Shareholder's ownership interest in the Corporation will be diluted.

Public Benefit Corporation Risks. The Corporation is a public benefit corporation, meaning the Corporation takes into account the interest of all stakeholders, not just shareholders. As such, the Corporation will make decisions based on the morality and efficacy of the issue at hand, and not necessarily the profitability of such decision. Therefore, there can be no assurance that the Corporation will continue to remain profitable after its social initiatives are accounted for and realized.

No Assurance of Investment Return. The Corporation cannot provide assurance that the Corporation will be profitable, that it will be able to generate returns for its Shareholders, or that the returns will be commensurate with the risks of investing in the Stock. There can be no assurance that any Shareholder will receive any distribution from the Corporation. Accordingly, an investment in the Corporation should only be considered by persons who can afford a loss of their entire investment.

Taxation and Other Causes of Price Increases. Federal, state and local governments may create and assess new forms of taxes on the sale, processing and/or storage of hemp and CBD products, thereby making the cost to the consumer prohibitive. As witnessed in the domestic tobacco industry, these taxes could substantially decrease the demand for the Corporation's products. Furthermore, because the Corporation anticipates selling a substantial portion of retail products to millennials, any factor that adversely impacts a millennial's disposable income could adversely impact the Corporation.

**Highly Competitive Market.** The activity of buying a large amount of hemp CBD inventory for resale is highly competitive and involves a high degree of uncertainty. The Corporation will be competing for customers with other local and national hemp CBD brands, as well as the numerous large players that continue to enter the market every day. Hemp CBD is a limited commodity, and there can be no assurance that a large scale retailer will not buy the entire supply, leaving small businesses out of business. There can be no assurance that governmental intervention into the market will not have a negative impact on the profitability and success of the Corporation.

**Market Conditions.** The Corporation's strategy may be based, in part, upon the premise that qualifying hemp will be available for purchase by the Corporation at a price that the Corporation considers favorable. Further, the Corporation's strategy relies, in part, upon local hemp farmers outperforming other geographical areas. No assurance can be given that hemp CBD will always be obtainable at favorable prices or that the market for such hemp will hold in value, as the case may be, since this will depend, in part, upon events and factors outside the control of the Corporation.

**Reliance on Third Party Processors.** The Corporation will not process any green hemp materials, and therefore the Corporation will rely on one or more third parties to process the hemp. As such, there can be no assurance that these processors will be able to produce consistent, top of the line products that customers will purchase, or that the processors will sell to the Corporation. CBD generally remains a Schedule I controlled substance. There is a narrow exception for CBD produced in a manner consistent with the 2018 federal Farm Bill, associated federal regulations, and associated state regulations. There is no assurance that the Corporation's third-party processors will comply with applicable laws and regulations.

**Potential Regulation of the Hemp Industry.** There has not been any significant discussion recently regarding enhanced governmental scrutiny and/or increased regulation of the hemp industry. However, it is uncertain what form and in what jurisdictions such enhanced scrutiny, if any, ultimately may take. As a result, there can be no assurance that the foregoing will not have an adverse impact on the Corporation or otherwise impede the Corporation's ability to effectively achieve its business objectives.

**Reliance on the Management Team.** The Corporation will be managed by Eric J. Zipperle, as President, and James Cecil Higdon, III, as Vice President (the 'Management Team'). The Corporation's future profitability will depend largely upon the business acumen of the Management Team generally, and the President specifically. The President has the power to fill any vacancies caused by the death, disability, or resignation of a member of the Management Team. Although additional persons may join the Corporation's Management Team, the Corporation's success is dependent in part on the continued availability to the Corporation of the services of the President. Likewise, the Corporation's success will depend, to a great extent, on the judgment and ability of the Management Team and its key personnel. The loss of the services of a member of the Management Team could have a materially adverse effect on the ability of the Management Team to successfully manage the Corporation's business.

**Backlash from the Healthcare Industry.** Existing players in the U.S. health care system who could lose sales volume or revenues due to increased sales of CBD products pose a continuing short-term and long-term threat to the CBD industry because of their tremendous financial resources and lobbying capabilities.

**Problems with Shared State-Federal Regulatory Power.** The Farm Bill contemplates the ability of a state government and the federal government to cooperate and effectively work together to facilitate the growth and maintenance of the CBD industry. Delays and breakdowns at the federal level, state level or both could adversely affect the Corporation.

**Restrictions on Promoting CBD Products.** The FDA and the pharmaceutical industry have grown increasingly concerned at the proliferation of CBD products claiming to treat or cure certain diseases or conditions. Existing and future restrictions and controversies over what legally can and cannot be said about a CBD product could have a chilling effect on sales and could expose the Corporation to litigation.

**Marketing Risks.** To date, CBD companies have been unable to take advantage of certain marketing tools like Google Adwords and Facebook Ads. Because of the nature of business of hemp companies, large corporations like Facebook and Google have refused to allow the marketing of such products. As such, there can be no assurance that the rules related to the current marketing model (Instagram) will not change. As the market changes every day, new rules and regulations are being implemented that could have a negative effect on the Corporation and its profitability.

**General Economic and Market Conditions.** The hemp industry generally and the success of the Corporation's business activities both will be affected by general economic and market conditions, as well as by changes in laws and national, international and state political and socioeconomic circumstances. A sustained downturn in the United States or global economy (or any particular segment thereof) could adversely affect the Corporation's profitability or impede the Corporation's ability to maintain or continue any growth in sales.

**Hemp Industry Risks Generally.** The Corporation's business will be subject to the risks inherent in the ownership and operation of hemp-related business. These risks include, but are not limited to, those associated with the burdens of ownership of a hemp-related business; general and local economic conditions; changes in supply of and demand for hemp and hemp CBD products (as a result, for instance, of a market collapse); the financial resources of consumers; changes in hemp policy, environmental and other laws; supply shortages; various uninsured or uninsurable risks; natural disasters; changes in government regulations (such as shipping hemp products across state lines); changes in hemp related taxes; negative developments in the economy that depress buying activity; environmental liabilities; terrorist attacks; war; and other factors that are beyond the control of the Corporation's board of directors and officers ('Company Management').

**Reliance on Third Party Growers.** The Corporation will not grow hemp, and therefore the Corporation will rely upon licensed farmers to grow and provide the hemp. There can be no assurance that these farmers will be able to produce hemp in any given season, that they will comply with applicable laws, that they will be able to produce consistent, high quality hemp, or that they will sell an adequate supply of hemp to the Corporation's processors. Farmland availability, farmer availability, weather conditions, insects, human error, and government regulation and intervention are among many factors that could limit the production of hemp. Excessive demand for hemp by competitors, exclusive supply contracts with competitors, and high crop prices are among many factors that could impact the ability of the Corporation's processors to obtain the hemp raw material they need to produce their products. Furthermore, every hemp plant is different, and therefore every batch of hemp CBD products will be different. Thus, consistency in quality of both the hemp and the CBD product could be a problem.

#### **Description of Securities for Prior Reg CF Raise**

**Additional Issuances of Securities.** 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 assured. The amount of additional financing needed 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 follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the investor's interest in the Company.

**Issuer repurchases of securities.** The Company may have authority to repurchase its securities from shareholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated 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 so as to maximize value for shareholders. Accordingly, the success of the investor's investment in the Company will depend in large part upon the skill and expertise 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 disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the investor, together with the fair 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.

**Transactions 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 good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm's-length, but will be in all cases consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the investor will be deemed to have acknowledged 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.

#### **Moody's Ownership**

An investor in the Company will likely hold a minority position in the Company, and thus be limited as to 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 name 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 assured.

The amount of additional financing needed 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 follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the investor's interest in the Company.

#### **Exercise of Rights Held 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 disagrees, or that negatively affect the value of the investor's securities in the Company, and the investor will have no recourse 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 advantageous 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 holders of securities. The shareholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the investor owns. Other holders 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 decisions regarding the securities he or she owns. The shareholders have the right to redeem their securities at any time. Shareholders could decide to force the Company to redeem their securities at a time that is not favorable to the investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability. In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an investor's interests in the Company may be diluted. This means that the pro-rata 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 stock, an investor's interest will typically also be diluted.

#### **Restrictions on Transfer**

The securities offered via Regulation Crowdfunding 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 a member of the family of the purchaser or the equivalent; to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

#### **Valuation Methodology for Prior Reg CF Raise**

The offering price for the securities offered pursuant to this Form C has been determined arbitrarily by the Company, and does not necessarily bear any relationship to the Company's book value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

The initial amount invested in a Convertible Note is determined by the investor, and we do not guarantee that the Convertible Note will be converted into any particular number of shares.

As discussed in Question 13, when we engage in an offering of equity involving Stock, investors may receive a number of shares of Preferred Stock calculated as either the conversion price equal to the lesser of (i) 88% of the price paid per share for Equity Securities by the investors in the Qualified Financing or (ii) the price equal to the quotient of the valuation cap of $4,000,000.00 (the "Valuation Cap") divided by the aggregate number of outstanding shares of the Company's stock as of immediately prior to the initial closing of the Qualified Financing (assuming full conversion or exercise of all convertible and exercisable securities then outstanding, but excluding the shares of equity securities of the Company issuable upon the conversion of the Notes or any other debt).

Because there will likely be no public market for our securities prior to an initial public offering or similar liquidity event, the price of the Stock that investors will receive, and/or the total value of the Company's capitalization, will be determined by our board of directors. Among the factors we may consider in determining the price of Stock are prevailing market conditions, our financial information, market valuations of other companies that we believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant. In the future, we will perform valuations of our units that take into account, as applicable, factors such as the following:

- unrelated third party valuations;
- the price at which we sell other securities in light of the relative rights, preferences and privileges of those
- our results of operations, financial position and capital resources;
- current business conditions and projections;
- the marketability or lack thereof of the securities;
- 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 sale of our company given the
- 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 gross domestic product, employment, inflation and interest rates; and
- the general 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 correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

# Company

Combread CBD, PBC

- Kentucky Public Benefit Corporation
- Organized January 2019
- 27 employees

2517 Data Drive

Louisville KY 40299

https://www.combreadhemp.com

# Business Description

Refer to the Combread Hemp® profile.

# EDGAR Filing

The Securities and Exchange Commission hosts the official version of this annual report on their EDGAR web site. It looks like it was built in 1989.

# Compliance with Prior Annual Reports

Combread Hemp® is current with all reporting requirements under Rule 202 of Regulation Crowdfunding.

# All prior investor updates

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

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

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

CORNBREAD HEMP®

## The fastest growing CBD brand in America, shipped nationwide from Kentucky

cornbreadhemp.com

Louisville KY

Ecommerce

Consumer Goods

Retail

## Highlights

1. 300% YoY Growth

2. $6.5M gross revenue in 2022

3. Raised $392K on Wefunder in 2020 from 900 investors; then raised $1.675M in 2022 in

Reg D.

4 5.3 LTV:CAC and 90% gross margins
5 Acquired our processing and manufacturing partner in October of 2022 to be vertically integrated.
6 USDA organic, GMP certified, third-party lab tested, FDA registered.
7 Monthly automatic order subscribers tripled in 2022 and is growing more than 20% MoM.

## Our Team

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

Eric Zipperle Co-founder & CEO

As co-founder and CEO of Cornbread Hemp, Eric wears many hats, including chief financial officer and chief marketing officer. Before Cornbread, Eric launched two e-commerce startups, with an MBA and bachelors in accounting from Bellarmine University.

Before Cornbread Hemp, there were no CBD brands (to our knowledge) that embraced the full history of cannabis in America. To solve this problem, Cornbread Hemp builds on Kentucky's 250-year cannabis tradition, even when it wasn't legal.

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

Jim Higdon Co-founder & CCO

As co-founder and chief communications officer, Jim uses his reporting background to expand Cornbread Hemp's reach through PR, affiliate marketing, and fundraising. He holds degrees from Centre College, Brown, and Columbia.

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

Jon Katz Marketing Board Advisor

As the Chief Marketing Officer of Fanchest, Jon oversaw the startup's growth from $100K to $10M over three years before his exit in 2019. He is now VP of marketing at Billd. He advises Cornbread on our marketing efforts.

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

# **Dr. Leslie Mudd** Pharmaceutical & Medical Research Board Advisor

Dr. Mudd led the oncology pharmacy team at the Brown Cancer Center at the University of Louisville Hospital. She advises the Cornbread leadership team and our customers on CBD-drug interactions, as well as consulting on product development.

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

# **Tanya Hahn** Wholesale Manager

Tanya comes to Cornbread with experiencing launching new products into Kroger and Whole Foods. To date, her biggest accomplishment at Cornbread is getting Cornbread Hemp products into the Dorothy Lane stores in Ohio.

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

# **Melissa Ryan Chipman** Customer Service and Community Engagement

With experience in other Louisville-based start-ups, Melissa has taken the lead in our category-leading customer service department and community engagement through social media management.

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

# **Kait Flora** E-Commerce Manager

Kait covers a wide range of IT duties at Cornbread, from e-commerce platform maintenance to SEO optimization to customer experience.

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

# **Frida Gonzalez May** Graphic Designer

Frida is Cornbread Hemp's rock star graphic designer, responsible for too much to list here. Check out the hero image on the Cornbread Hemp homepage for an example of Frida's work.

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

# **Karson Theobald** Inventory/Merchandising Manager

Karson came to Cornbread with a wealth of experience working in the legal cannabis market in Oregon, where she learned unique systems of managing cannabis inventory.

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

# **Dan Aziz** Advisory Board

Dan is the founder and CEO of a CPG, DTC focussed brand, for the past 10 years. There he raised over $13 million from Angels, PE and VC. He has extensive experience in retail, DTC and Amazon, where he has built 7-figure business in each channel.

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

# **James Reid** Brand Director

James is a Gold Clio award-winning producer, whose expertise ranges from feature

documentaries to brand development to commercials for global brands including AT&T, Nissan, Bud Light, Honda, and Salesforce.

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

### **Donald C Freytag** Advisor and EOS consultant

Don helps the Cornbread leadership team implement the Entrepreneur Operating System as designed by Gino Wickman's Traction book.

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

### **Mandy Bliss** Advisor and Nurse Practitioner

Mandy Bliss is a board-certified nurse practitioner who advises the leadership team on trends in nursing practices related to cannabinoid therapy. She is also spear-heading Cornbread Hemp's outreach to medical professionals.

## The Story of Cornbread Hemp

Cornbread Hemp is the fastest growing CBD brand in America, shipped nationwide from a single USDA organic farm in Kentucky. Family-owned and operated, Cornbread Hemp has quickly become one of America's most recognized and revered CBD brands.

Cornbread Hemp co-founder Jim Higdon grew up in the small town where the Cornbread Mafia was headquartered, which is where the name 'cornbread' comes from. In 2012, Jim published the official nonfiction account of his hometown, 'The Cornbread Mafia: A Homegrown Code of Silence and the Biggest Marijuana Bust in American History.' The book's success launched Jim into a journalism career, where he covered cannabis for POLITICO, Washington Post, and more.

While reporting on the 2018 Farm Bill that would re-legalize hemp, Jim realized that there were no companies making authentic, high quality CBD products that embraced America's deep history of hemp. That's when he approached his cousin, Eric Zipperle, to start a cannabis company to deliver that higher quality product, while also representing the 250-year tradition of Kentucky cannabis.

In 2019, Eric and Jim co-founded Cornbread Hemp with $100,000 in angel investment.

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

## More than 1,000% growth since 2019

We shipped our first CBD products in April 2019, and by the end of that year we were gaining momentum. But when the COVID lockdown started in early 2020, we turned to Wefunder to support our growth and raised nearly $400,000 from 900 investors.

In 2021, we grew rapidly thanks to the funds we deployed from our Wefunder investors into the digital marketing landscape, ending the year at nearly $2M in net revenue (after discounts).

In 2022, we continued our aggressive growth and ended the year with $5.5M in net revenue. We acquired our processor to become vertically integrated and improve our margins, which are now above 90%. And, we raised $1,675,000 in a

Reg D raise from 12 investors on the exact same terms that we are offering Wefunder investors.

## Our proven metrics

Fueling our impressive growth is a 5.3 LTV-to-CAC ratio and better than 90% product margins that allow us to quickly recycle acquisition dollars, reinvesting positive cash flows into further marketing efforts that allow for quicker market expansion.

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

## Market growth and future outlook

The market for Cornbread Hemp products is growing in a number of ways. For starters, the CBD market is poised to grow into a $55.8 billion industry by 2028. Of course, this is a forward-looking statement that cannot be guaranteed.

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

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

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

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

in Billion USD
Source: Fortune Business Insights

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

## Our market position

According to a recent study, only 5 percent of CBD brands are USDA certified organic. That puts Cornbread Hemp in a very elite group, and inside this group, none of the other brands (to our knowledge) offer Flower-OnlyTM extraction with up to 2mg of THC per serving.

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

### SUPERIOR QUALITY

All major brands are sacrificing quality for price, ignoring consumers searching for premium CBD products.

### INDUSTRY LEADERSHIP

We build credibility and brand awareness by sharing our singular expertise through unique media relationships.

### LEANING INTO THC

While the competition focuses on THC-free, our customers value the most effective CBD products, which contain the highest legal level of THC.

To learn more about our product quality, visit the USP Slide in the appendix.

## Creating customer loyalty

More than 50% of our monthly revenues come from return customers, including $300,000 in MRR from subscribers. Our customer reviews speak for themselves:

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

### YOU FOUND THE BEST

'Stop looking for another brand to try, these are the best, I tried over 6 different brands, these are awesome. And they taste great, and their customer service is top notch. Also I love their lotion!'

★ ★ ★ ★ ★

John G. 10/8/21

### IT IS AUTHENTIC!

'I tried other brands who offered steep discounts and gimmicks like flavors and Combread remains the grown-up choice. After six visits the long term results are like yoga in a bottle: better sleep, more presentness, and greater equanimity. There is an authenticity to this brand that I admire.'

★ ★ ★ ★ ★

Lorrin K. 9/22/21

### BETTER THAN BIG CBD

'I have tried several different CBD oils, Charlotte's Web and MedTerra among them. They worked ok, but Combread exceeded my expectations.'

★ ★ ★ ★ ★

Kathy K - 06/01

## Go-to-market strategy

We are finding new customers every day by scaling our PR and affiliate marketing, increasing our social media ad spend, partnering with influencers and radio hosts, and geo-targeting our marketing resources for maximum impact. As a result of our increased awareness, retail expansion will begin in 2023.

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

### AFFILIATE & PR

Leveraging Jim's industry expertise and media relationships for PR and affiliate partnerships, which drive brand credibility and Google search results.

### REGIONAL TARGETING

Leveraging our unique brand identity to build awareness in regional markets that offer little to no competition.

### TRADITIONAL ADVERTISING

We have developed strategic partnerships that allow us unique access to advertise on Facebook, Google, & SnapChat, in addition to CTV and radio.

### RETAIL EXPANSION

We are partnering with the best natural foods broker in the country, Presence Marketing, to enter top-tier retailers like Fresh Thyme, Earth Fare, & Sprouts.

We're just getting started

## We're just getting started

At the peak of the market in 2019, there were thousands of CBD brands clamoring for customers. Today, only the strong brands have survived and Cornbread Hemp is experiencing rapid growth - 300% year over year.

Cornbread Hemp is now positioned to own a sizable share of the CBD market by being an authentic brand from Kentucky with a scalable supply chain of the highest quality organic hemp on Earth, according to us.

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

## Here's the plan

To meet our projections, we acquired our processing partner in October 2022. This acquisition will pay for itself in 3 years with reduced COGS and increased margins, and it has made Cornbread Hemp a vertically integrated company with a scalable supply chain.

In 2022, we launched a seed round with a goal of raising $1.5M. As the round gained steam, we received permission from our investors to oversubscribe the round with a new goal of $2M. We closed the Reg D portion of the round in December with a total amount raised of $1,675,000 from 12 investors.

Now, we are coming to Wefunder to raise the remaining $325,000 on the exact

same terms as our Reg D investors to get us to our goal of $2M raised.

For the $325,000 we are raising on Wefunder, we plan to put the first $50K raised directly into our digital ads budget. Of the remaining $275,000, we plan to put $100K towards inventory, $75K towards growth consultants, $50K towards our trade show budget; and another $50K towards digital ad spend.

## Downloads

Cornbread Seed Deck Wefunder.pdf

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

# CORNBREAD CBD, PBC  
FINANCIAL STATEMENTS  
AND SUPPLEMENTARY INFORMATION  
YEARS ENDED DECEMBER 31, 2021 AND 2020

# CONTENTS

|  | Page |
| --- | --- |
| Independent accountants' review report | 1 |
| Balance sheets | 3 |
| Statements of income | 4 |
| Statements of shareholders' equity (deficit) | 5 |
| Statements of cash flows | 6 |
| Notes to financial statements | 7 |
| Supplementary information: |  |
| Schedule 1, Operating expenses | 15 |

b

W

BOWDEN & WOOD

CERTIFIED PUBLIC ACCOUNTANTS

MARK A. SCHAEFFER, CPA
NICHOLAS M. SCHAEFER, CPA
BRIAN E. MOSS, CPA
PHILIP J. AMSHOFF, CPA
JOHN D. ERB, CPA
JESSICA N. ENGLER, CPA
JOSEPH J. O'CONNOR

ASSOCIATES

JUDY L. GIBSON, CPA

KIMBERLY M. STILLWELL, CPA

JOHN L. BUNTON, CPA

September 28, 2022

# INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Shareholders
Cornbread CBD, PBC
Louisville, Kentucky

We have reviewed the accompanying financial statements of Cornbread CBD, PBC (a Kentucky public benefit corporation), which comprise the balance sheets as of December 31, 2021 and 2020 and the related statements of income and shareholders' equity and 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 control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

# Accountants' Responsibility

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

We are required to be independent of Cornbread CBD, PBC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

304 MIDDLETOWN PARK PLACE

LOUISVILLE, KENTUCKY 40243-2555

(502) 583-0262

FAX (502) 583-0230

www.bowdenandwood.com

1

Page 2

September 28, 2022

## Accountants' Conclusion

Based on our reviews, 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.

## Supplementary Information

The supplementary information included in Schedule 1 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. We have not audited or reviewed such information and we do not express an opinion, a conclusion, nor provide any assurance on it.

Respectfully submitted,

Bowden & Wood

Bowden & Wood, PLLC

Certified Public Accountants

2

# CORNBREAD CBD, PBC  
BALANCE SHEETS  
DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $253 583 | $401 142 |
| Accounts receivable | 6 409 | 3 948 |
| Prepaid expenses and deposits | 115 362 | 700 |
| Inventory | 181 657 | 35 514 |
| Materials in process | -0- | 30 125 |
| Total current assets | 557 011 | 471 429 |
| Property and equipment, net (note B) | 20 643 | 34 111 |
| Other noncurrent assets: |  |  |
| Amortization intangibles, net (note B) | 30 796 | 31 009 |
| Total other noncurrent assets | 30 796 | 31 009 |
| Total assets | 608 450 | 536 549 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable | 9 748 | -0- |
| Credit cards payable | 40 125 | 23 948 |
| Accrued expenses | 1 013 | -0- |
| Accrued wages payable | 6 241 | -0- |
| Accrued sales and use taxes | 10 262 | 379 |
| Provision for income taxes | 175 | 175 |
| Current portion of notes payable | 624 954 | 630 |
| Total current liabilities | 692 518 | 25 132 |
| Noncurrent liabilities: |  |  |
| Notes payable (notes C and D) | 98 763 | 446 441 |
| Total noncurrent liabilities | 98 763 | 446 441 |
| Shareholders' equity (deficit): |  |  |
| Common stock, no par value - 1,000,000 shares authorized, 755,727 shares issued and 71,928 outstanding | 100 100 | 100 100 |
| Convertible debt issuance costs (note D) | (25 728) | (25 728) |
| Treasury stock - 71,928 shares at cost | (100 000) | -0- |
| Accumulated deficit | (157 203) | (9 396) |
| Total shareholders' equity (deficit) | (182 831) | 64 976 |
| Total liabilities and shareholders' equity | 608 450 | 536 549 |

See independent accountants' review report and notes to financial statements.

3

# CORNBREAD CBD, PBC  
STATEMENTS OF INCOME  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Sales | $1 855 863 | $429 871 |
| Cost of sales | 609 590 | 177 363 |
| Gross profit | 1 246 273 | 252 508 |
| Operating expenses | 1 399 805 | 258 223 |
| Operating loss | (153 532) | (5 715) |
| Other income (expenses): |  |  |
| PPP loan forgiven | 4 437 | -0- |
| Grants | 6 000 | -0- |
| Interest expense | (2 048) | (991) |
| Amortization expense | (2 489) | (2 316) |
| Total other income (expense) | 5 900 | 3 307 |
| Loss before income taxes | (147 632) | (9 022) |
| Income tax expense | 175 | -0- |
| Net loss | (147 807) | (9 022) |

See independent accountants' review report and notes to financial statements.

4

# CORNBREAD CBD, PBC  
STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)  
FOR THE YEARS ENDED DECEMBER 31,

|  | Capital stock | Convertible debt issuance costs | Treasury stock | Accumulated deficit | Total |
| --- | --- | --- | --- | --- | --- |
| Balance, December 31, 2019 | $100 100 | $ -0- | $ -0- | $(374) | $99 726 |
| Convertible debt issuance costs | -0- | (25 728) | -0- | -0- | (25 728) |
| Net loss | -0- | -0- | -0- | (9 022) | (9 022) |
| Balance, December 31, 2020 | 100 100 | (25 728) | -0- | (9 396) | 64 976 |
| Cost of 71,928 shares of common stock in treasury | -0- | -0- | (100 000) | -0- | (100 000) |
| Net loss | -0- | -0- | -0- | (147 807) | (147 807) |
| Balance, December 31, 2021 | 100 100 | (25 728) | (100 000) | (157 203) | (182 831) |

See independent accountants' review report and notes to financial statements.

5

# CORNBREAD CBD, PBC  
STATEMENTS OF CASH FLOWS  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss | $(147 807) | $(9 022) |
| Adjustments to reconcile net loss to net cash (used) provided by operating activities: |  |  |
| Depreciation and amortization | 15 958 | 9 315 |
| Changes in assets and liabilities: |  |  |
| (Increase) decrease in assets: |  |  |
| Accounts receivable | (2 461) | 6 053 |
| Prepaid expenses and deposits | (114 662) | (700) |
| Inventories | (146 143) | 17 156 |
| Materials in process | 30 125 | (25 257) |
| Increase (decrease) in liabilities: |  |  |
| Accounts payable | 9 748 | -0- |
| Credit cards payable | 16 177 | 3 538 |
| Accrued expenses | 1 013 | -0- |
| Accrued wages payable | 6 241 | -0- |
| Accrued sales and use taxes | 9 883 | 262 |
| Net cash (used) provided by operating activities | (321 928) | 1 345 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| Purchase of fixed assets | -0- | (38 819) |
| Purchase of organizational and start up costs | (2 277) | (3 849) |
| Net cash used by investing activities | (2 277) | (42 668) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Proceeds from notes payable | 276 646 | 447 071 |
| Payment of convertible debt issuance costs | -0- | (25 728) |
| Purchase of common stock to treasury | (100 000) | -0- |
| Net cash provided by financing activities | 176 646 | 421 343 |
| NET (DECREASE) INCREASE IN CASH | (147 559) | 380 020 |
| CASH AT BEGINNING OF YEAR | 401 142 | 21 122 |
| CASH AT END OF YEAR | 253 583 | 401 142 |
| SUPPLEMENTAL CASH FLOW DATA |  |  |
| Interest paid | 2 048 | 991 |
| Income tax paid | 175 | -0- |

See independent accountants' review report and notes to financial statements.

6

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS

# A ACCOUNTING POLICIES

# CORPORATE INFORMATION

Cornbread CBD, PBC ('the Company') is a corporation formed under the laws of the Commonwealth of Kentucky as a Public Benefit Corporation (B Corporation) with purpose to engage in the sale of hemp products and to provide a positive effect and make healthy and environmentally safe products.

# NATURE OF OPERATIONS

The Company derives revenue from the formulation and resale of USDA organic CBD products across multiple distribution channels including retail and online sales.

# BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

# USE OF ESTIMATES

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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

# ADVERTISING

The Company expenses advertising costs as incurred. Advertising expense amounted to $1,026,622 and $170,688 for the years ended December 31, 2021 and 2020, respectively.

# MAJOR SUPPLIER

Substantially all raw product and supplies are supported by purchases from two suppliers. These products however, are available from many other sources.

# CASH AND CASH EQUIVALENTS

The Company considers monetary instruments with original maturity of three months or less to be cash equivalents.

# CONCENTRATION OF CREDIT RISK

The Company maintains its cash in bank deposit accounts at a high quality financial institution. The balances, at times, may exceed federally insured limits.

# ACCOUNTS RECEIVABLE

Accounts receivable consist of amounts billed to customers for inventory shipped or work completed for which payments has not yet been received. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. An allowance for doubtful accounts is not presented since management believes that all receivables are collectible.

Receivables balance at January 1, 2020 was $10,001.

7

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# A ACCOUNTING POLICIES (continued)

# INCOME TAXES

The Company follows the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions.

The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines 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, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authorities.

The Company recognizes interest and penalties related to unrecognized tax positions as part of the income tax provision in the accompanying statements of income and statements of shareholders' equity (deficit) and includes accrued interest and penalties in income taxes payable in the balance sheets.

# INVENTORY

The Company's inventory includes raw materials, supplies, and completed products that are held-for-sale. Management's experience suggests that losses due to obsolescence or spoilage to be immaterial. Therefore, no amount has been recognized as a reserve for losses in inventory. Inventory is stated at cost.

# PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Invoices or other individual items that come under consideration for capitalization are generally expensed on a case-by-case basis in order to determine the appropriateness of capitalization or expensing the entire amount currently. Depreciation and amortization of property and equipment are computed by the straight-line method based upon the estimated useful lives of the assets. The cost and accumulated depreciation or amortization are removed from the accounts when assets are disposed of or retired and any resultant gains or losses are included in other income.

# AMORTIZABLE INTANGIBLES

Amounts included in amortizable intangibles are startup and organizational costs. These costs are being amortized over a period of 15 years on a straight-line basis.

# REVENUE RECOGNITION

Sales revenue is recognized upon shipment and of products. Allowances for sales returns and discounts are recorded as a component of net sales in the period the allowances are recognized.

8

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# B PROPERTY AND EQUIPMENT

Property, equipment and intangibles consisted of the following at December 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Property and equipment | $41 463 | $41 462 |
| Accumulated depreciation | 20 820 | 7 351 |
| Property and equipment, net | 20 643 | 34 111 |
| Organizational and startup costs | 37 335 | 35 059 |
| Accumulated amortization | 6 539 | 4 050 |
| Amortizable intangibles, net | 30 796 | 31 009 |
| Depreciation expense | 13 469 | 6 999 |
| Amortization expense | 2 489 | 2 316 |

# C LONG-TERM DEBT

Notes payable consisted of the following at December 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Convertible debt instruments, see note D for detail | $392 871 | $392 871 |
| Note payable to shareholder, see note D for detail | 75 000 | -0- |
| SBA EIDL loan, see note D for detail | 55 846 | 54 200 |
| Wayflyer loan, see note D for detail | 200 000 | -0- |
| Total notes payable | 723 717 | 447 071 |
| Less current maturities | (624 954) | (630) |
| Long term portion | 98 763 | 446 441 |

Maturities of note payable due after one year are:

Year ended December 31,

| 2023 | $26 155 |
| --- | --- |
| 2024 | 26 199 |
| 2025 | 1 245 |
| 2026 | 1 292 |
| Thereafter | 43 872 |
|  | 98 763 |

9

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# D NOTES PAYABLE

# NOTE PAYABLE TO SHAREHOLDER

During 2021, the Company purchased from a shareholder 71,928 shares common stock placed in treasury, payable in four annual installments of $25,000 with the first payment beginning in 2021. A non-interest bearing promissory note has been issued for the portion of the amount unpaid and has been recorded as long-term debt as stated in note C. This loan is unsecured.

# CONVERTIBLE DEBT INSTRUMENTS

During 2020, the Company entered into subordinated note purchase agreements with various investors, whereby the Company borrowed $392,871 and incurred issuance costs of $25,728. Proceeds received by the Company are in consideration for convertible promissory notes issued to the investors, whereby $4.71 invested is convertible to 1 unit of no par value common stock. The maturity dates are in 2022 and are non-interest bearing. The Company anticipates all notes will be converted in 2022 and has presented the issuance costs as a direct reduction of shareholder's equity on the balance sheet. The loans are unsecured.

# EIDL LOAN

On June 9, 2020, the Company executed the standard loan documents required for securing a loan (the 'EIDL loan') from the United States Small Business Administration ('the SBA') under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the EIDL loan is $54,000, with proceeds to be used for working capital purposes. Interest on the EIDL loan accrues at the rate of 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twenty-four months from the date of the EIDL loan in the amount of $265. The balance of principal and interest is payable thirty years from the date of the promissory note. In connection with the EIDL loan, the Company executed the EIDL loan documents, which include the SBA Secured Disaster Loan Note, dated June 9, 2020, and the Security Agreement, dated June 9, 2020, each between the SBA and the Company. This loan is secured by the assets of the Company.

# WAYFLYER LOAN

During 2021, the Company sold $206,500 of future trade receivables to Wayflyer, an unrelated entity with a discount of 3.25%, or $6,500. The Company has recognized the cash received and discount sold on the transfer as a secured borrowing (see note C). This note bears no interest and the transferee of the trade receivables has recourse only on future trade receivables.

# E EQUITY BASED COMPENSATION

In 2020, the Company adopted a shareholder subscription option plan for the purposes of attracting and retaining both qualified employees as well as board advisory members. Options issued under the plan vest at the rate of 50% per year and grant the holder the right to purchase the Company's common stock at an exercise price determined using a value set by an independent appraiser.

10

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# E EQUITY BASED COMPENSATION (continued)

The Company set the value per share for purposes of the Buy and Sell Agreement and for granting stock options at $0.70 per share effective in 2020.

During 2021, the Company redeemed stock under an agreement with one shareholder as separately stated on the Statements of Shareholders' Equity (Deficit) as 'cost of shares of common stock in treasury'. On May 11, 2021, the Company entered into a stock redemption agreement with a shareholder who owned 143,856 shares of common stock and has agreed to allow the Company to redeem 71,928 shares set price per share of $1.39.

The Company granted nonqualified stock options to 2 employees, 1 angel investor, and 5 advisors during 2020 to purchase a total of 744,240 shares of stock at $0.70 per share, the value in effect when the options were authorized by the Company. There were no stock options granted during 2021.

The following is an analysis of options to purchase shares of the Company's stock issued and outstanding as of December 31, 2021 and 2020:

|  | Options Outstanding | Weighted Average Exercise Price |
| --- | --- | --- |
| Options outstanding at January 1, 2020 | - 0 - | $ - 0 - |
| Granted during the year | 744 240 | 0.70 |
| Forfeited during the year | - 0 - | - 0 - |
| Exercised during the year | (143 856) | 0.70 |
| Options outstanding at December 31, 2020 | 600 384 | 0.70 |
| Granted during the year | - 0 - | - 0 - |
| Forfeited during the year | - 0 - | - 0 - |
| Sold during the year | 71 928 | 1.39 |
| Options outstanding at December 31, 2021 | 672 312 | 0.77 |

As of the date of this report, all authorized options were vested and exercisable.

11

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# F COMMITMENTS AND CONTINGENCIES

# LEASE NOTE

In March 2020, the Company signed a month-to-month lease for warehouse space through July 2024 for monthly rent of $700. In 2021, this lease was terminated, and the Company moved to a new location. In April 2021, the Company signed a lease for warehouse space through July 2024 for monthly rent of $1,600. Rent expense was $11,500 and $7,102 for the years ended December 31, 2021 and 2020, respectively.

Future minimum lease payments are as follows for the years ending December 31:

| 2022 | $19 200 |
| --- | --- |
| 2023 | 19 200 |
| 2024 | 11 200 |
|  | 49 600 |

# H LOAN FORGIVENESS

In 2021, the Company received a $4,437 loan from a bank under the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was to be forgiven to the extent loan proceeds were used for eligible expenses such as payroll and other expenses described in the CARES Act. The Company used the loan proceeds for qualifying expenses and the entire loan was forgiven in 2021.

# I RECENT ACCOUNTING PRONOUNCEMENTS

In February 2016, the FASB issued ASU 2016-02, “*Leases (Topic 842)*.” This update includes a lease accounting model that recognizes two types of leases - finance leases and operating leases. The standard requires that a lessee recognize on the balance sheet assets and liabilities relating to leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease. The update is effective for the Company beginning in January 2022. The Company would be required to record a “right of use” asset and a lease liability payable. The Company is currently evaluating the impact of this adoption.

# J COMMON STOCK - NO PAR VALUE

The Company has been authorized to issue 1,000,000 shares. At December 31, 2021 and 2020, 755,727 and 143,856 shares were issued and 71,928 and 143,856 were outstanding, respectively.

# K SUBSEQUENT EVENTS

The Wayflyer note payable for $200,000 as described in note D was paid in full in March 2022. An additional $169,650 was received from the Wayflyer platform in April 2022 and was subsequently paid in full in July 2022.

12

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# L ADDITIONAL SUBSEQUENT EVENT NOTES

The Company intends to perform another crowd funding offering in 2022 for the purpose of raising operating capital.

In 2022, the Company issued 113,359 shares of Series Seed Preferred Stock to qualified investors. Net proceeds received from the Series Seed Preferred Stock issuance totaled approximately $900,000.

In 2022, the Company entered into a purchase agreement to acquire a supplier. As of the date of this report, the purchase agreement has not been finalized.

COVID-19 and its related economic impact on businesses of all sizes began prior to the issuance of these financial statements. While it is too early to determine the full impact of COVID-19 and while no specific detrimental effects have been identified, management anticipates that there will be at least some negative impact on the financial condition of the Company. In response, management is monitoring staffing levels and other operational expenses as circumstances require.

Management has evaluated subsequent events through the date of this report, which is the date the financial statements were available to be issued.

13

Schedule 1

# CORNBREAD CBD, PBC  
OPERATING EXPENSES  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Advertising and marketing | $1 026 622 | $170 688 |
| Blog writing | -0- | 7 732 |
| Booth and event fees | -0- | 1 401 |
| Bank and processing fees | 97 135 | 6 103 |
| Uniforms | -0- | 1 353 |
| Equipment | -0- | 584 |
| Insurance | 9 690 | 5 506 |
| Legal and professional | 20 527 | 4 384 |
| Meals and entertainment | 7 259 | 652 |
| Office supplies | 35 155 | 15 865 |
| Commissions | 152 136 | 21 298 |
| Research and development | 179 | 756 |
| Taxes and licenses | 27 | 3 188 |
| Travel | 5 407 | 558 |
| Utilities | 9 222 | 2 145 |
| Website development | -0- | 1 909 |
| Depreciation expense | 13 469 | 6 999 |
| Rent | 11 500 | 7 102 |
| Contractors | 8 066 | -0- |
| Repairs and maintenance | 175 | -0- |
| Other operating expenses | 3 236 | -0- |
| Total | 1 399 805 | 258 223 |

See independent accountants' review report.

15

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

4/1/2020

(10) Eric Zipperle | LinkedIn

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

Eric Zipperle · 3rd

Co-founder & CEO, Cornbread Hemp

Louisville, Kentucky · 500+ connections · Contact info

Cornbread Hemp

Bellarmine Universit

# Experience

# Co-Founder

Cornbread Hemp

Nov 2018 - Present · 1 yr 6 mos

Louisville, Kentucky Area

Kentucky's first ever USDA certified organic CBD brand, Cornbread Hemp is rooted in Kentuck hemp tradition that dates all the way back to 1775. Co-founded with James Higdon, author the book Cornbread Mafia, Cornbread Hemp operates direct to consumer and partners with top-shelf retailers across the country to provide the highest quality USDA organic CBD products that are made for comfort.

# Education

# Bellarmine University

Master of Business Administration (MBA) + Bachelors of Accounting, Accounting/MBA
2012 - 2016

# Trinity High School

2008 - 2012

https://www.linkedin.com/in/eric-zipperle-65051a83/

1/3

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(10) Eric Zipperle | LinkedIn

## Licenses & Certifications

### Global Commerce and Strategy

World Trade Center Kentucky

## Skills & Endorsements

### Leadership · 15

Endorsed by **Christina Pecha** and 3 others who are highly skilled at this

### Accounting · 8

Endorsed by **Virginia Roby**, who is highly skilled at this

### Time Management · 8

Endorsed by **Christina Pecha**, who is highly skilled at this

Show more ▾

<https://www.linkedin.com/in/eric-zipperle-65051a83/>

2/3

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(10) Eric Zipperle | LinkedIn

https://www.linkedin.com/in/eric-zipperle-65051a83/

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

4/1/2020

(10) Jim Higdon | LinkedIn

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

Jim Higdon · 3rd

Co-founder at Cornbread Hemp Co

Louisville, Kentucky · 500+ connections · Contact info

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

## Featured

Is hemp a vital resource in a time of crisis?
In 1950, Congress envisioned what would...

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

Is hemp a vital resource in a time of crisis?

cornbreadhemp.com

5 · 2 Comments

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

How is Cornbread Hemp Responding to Coronavirus?

cornbreadhemp.com

6 · 1 Comment

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

9

## Experience

Co-founder
Cornbread Hemp Co

https://www.linkedin.com/in/jameshigdon/

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4/1/2020

(10) Jim Higdon | LinkedIn

Jan 2019 - Present · 1 yr 4 mos
Louisville, Kentucky Area

Visit us at CornbreadHemp.com and follow us on Instagram: @CornbreadHemp.

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

### Author

THE NEARLY FORGOTTEN HISTORY OF PORTLAND, KENTUCKY

Dec 2018 - Present · 1 yr 5 mos
Louisville, Kentucky Area

A narrative history of Louisville's most important neighborhood, starring Daniel Boone, Henry Clay, Lewis & Clark, John James Audubon, Abraham Lincoln, Charles Dickens, and Mark Twain.

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

### President

Brown Alumni Club of Kentucky

Feb 2015 - Present · 5 yrs 3 mos
Louisville, Kentucky Area

As president of the local chapter of the Brown Alumni Club, it's my job to help coordinate with Brown alums in the area, employed in the medical, legal, academic, non-profit and creative fields, to provide them with networking and continued education opportunities.

...see mor

### Freelance Journalist

Self employed

Jan 2014 - Present · 6 yrs 4 mos
Louisville, Kentucky Area

I cover drug policy and Kentucky news for POLITICO Magazine and the Washington Post.

### freelancer

POLITICO

2015 - Present · 5 yrs

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

Show 5 more experiences

https://www.linkedin.com/in/jameshigdon/

2/4

4/1/2020

(10) Jim Higdon | LinkedIn

## Education

### Columbia University - Graduate School of Journalism

MS, book writing and multi-media reporting

2004 - 2005

### Brown University

MFA, Writing

1998 - 2000

### Centre College

BA, English and studio art

1994 - 1998

Activities and Societies: semester abroad: London.

Show 1 more education

<https://www.linkedin.com/in/jameshigdon/>

3/4

4/1/2020

(10) Jim Higdon | LinkedIn

https://www.linkedin.com/in/jameshigdon/

4/4

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

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

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

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

# INVESTMENT OPPORTUNITY

## Cornbread Hemp

Q1, 2023

**ERIC ZIPPERLE**

Chief Executive Officer

eric@cornbreadhemp.com

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

**JIM HIGDON**

Chief Communications Officer

jim@cornbreadhemp.com

PRIVATE & CONFIDENTIAL

# WHY DID WE START CORNBREAD HEMP?

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

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# CBD MARKET
PROJECTIONS
(USA)

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in Billion USD
Source: Fortune Business Insights

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# CORNBREAD GROWTH '19-'22

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# OUR
PROVEN
METRICS

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# 5.3
LTV:CAC

Lifetime Value / Customer Acquisition Cost
(An LTV:CAC ratio of 3:1 is standard, and 4:1 is above average.)

We closed this
acquisition in
October 2022!

85%
Margins

93%
Post Acquisition Margins

(We are acquiring our hemp processor with debt
financing for vertical integration.)

# Our average order value compared with other DTC supplements on Shopify:

## Order metrics

New customer AOV i

**$72** falls in the **top 50%**

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Repeat customer AOV i

**$95** falls in the **top 25%**

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# Our retention compared with other DTC supplements on Shopify:

## Retention

New customer repurchase rate, 90 day i

**36.6%** falls in the **top 25%**

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New customer repurchase rate, 180 day i

**39.7%** falls in the **top 25%**

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# OUR POSITIONING

Filling the premium CBD market gap.

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## SUPERIOR QUALITY

All major brands are sacrificing quality for price, ignoring consumers searching for premium CBD products.

## INDUSTRY LEADERSHIP

We build credibility and brand awareness by sharing our singular expertise through unique media relationships.

## LEANING INTO THC

While the competition focuses on THC-free, our customers value the most effective CBD products, which contain the highest legal level of THC.

To learn more about our product quality, visit the USP Slide in the appendix.

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# OUR DEFENSIBLE POSITION

## KENTUCKY SUPPLY CHAIN

We are acquiring our hemp processing partner with $1.5M of debt financing to increase our margins to 93%.

## AUTHENTIC BRANDING

The “Cornbread” story directly connects our brand to the 250-year history of Kentucky hemp.

## HIGHEST QUALITY PRODUCTS

Full spectrum, Flower-OnlyTM, USDA certified organic CBD with the most THC the law allows.

## THOUGHT LEADERSHIP

Through unique media relationships, we leverage our brand identity to educate and advocate for greater access to both hemp and cannabis.

# GO-TO-MARKET STRATEGY

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## AFFILIATE & PR

Leveraging Jim's industry expertise and media relationships for PR and affiliate partnerships, which drive brand credibility and Google search results.

## REGIONAL TARGETING

Leveraging our unique brand identity to build awareness in regional markets that offer little to no competition.

## TRADITIONAL ADVERTISING

We have developed strategic partnerships that allow us unique access to advertise on Facebook, Google, & SnapChat, in addition to CTV and radio.

## RETAIL EXPANSION

We are partnering with the best natural foods broker in the country, Presence Marketing, to enter top-tier retailers like Fresh Thyme, Earth Fare, & Sprouts.

We are the #1 search result for "full spectrum CBD gummies" on Google!

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# OUR COMPETITION

A fragmented market, with no focus on quality cannabis.

|  | CORNBREAD HEMP | CHARLOTTE'S WEB | MEOTERRA | CBDMO |
| --- | --- | --- | --- | --- |
| HIGHEST LEGAL THC | ☑ | ☐ | ☐ | ☐ |
| USDA ORGANIC | ☑ | ☐ | ☐ | ☐ |
| FLOWER-ONLY | ☑ | ☐ | ☐ | ☐ |
| MARKET SHARE % |  | 3.6 | 1.7 | 1.6 |

The top 20 brands control only 19% of the market. Source: Brightfield Group

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## OUR TIMING

The CBD industry is only 8 years old, and market share is heavily fragmented.

The top 20 brands control only 19% of the market, which is projected to grow 25X by 2028.

The opportunity to lead the US CBD market is ripe for a brand with true authenticity, expertise, and quality.

We believe it is an opportunity to lead not just the CBD market, but the cannabis industry as a whole.

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# CUSTOMER PRAISE

A Sample of 1,700+ Five-Star Reviews

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## YOU FOUND THE BEST

“Stop looking for another brand to try, these are the best, I tried over 6 different brands, these are awesome. And they taste great, and their customer service is top notch. Also I love their lotion!”

John G. 10/8/21

## IT IS AUTHENTIC!

“I tried other brands who offered steep discounts and gimmicks like flavors and Cornbread remains the grown-up choice. After six vials the long term results are like yoga in a bottle: better sleep, more presentness, and greater equanimity. There is an authenticity to this brand that I admire.”

Lorrin K. 9/22/21

## BETTER THAN MEDTERRA

“I have tried several different CBD oils, Charlotte’s Web and MedTerra among them. They worked ok, but Cornbread exceeded my expectations.”

Kathy K - 06/01

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# GENERATING BUZZ

through our proven media & PR strategy:

FOOD&WINE

"I and my colleague, senior editor Kat Kinsman, have made these extra-strength gummies part of our routine."

Chicago Tribune

"A highly potent CBD oil made with superior quality."

BuzzFeed

"perfect to help relax the mind and body"

Health

"it's not easy to stand out in the crowd, but Cornbread Hemp manages to do just that."

mindbodygreen

"a palatable but powerful treat"

NEW YORK

"this CBD is really kind of magical."

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In three years of business, we have professionalized our operating procedures and HR benefits by implementing:

- EOS and weekly L10 meetings
- Health insurance
- 401(k)'s
- Employee share pool
- Paid vacations
- Foundation laid for certified B-Corp
- USDA organic certification

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ONLY $325K
LEFT TO SELL!

# THE OPPORTUNITY:

CORNBREAD HEMP IS RAISING A

# $2 MILLION SEED ROUND

$1,675,000 RAISED UNDER REG D

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$500K IN ANGEL AND CROWDFUND CAPITAL TO DATE.

# USE OF FUNDS
FOR REG CF CAMPAIGN

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THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

## THREE YEAR GOALS

Creating a runway of 24 months to scale.

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2022 ▶

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- ☑ Revenue goal: $4.5M
- ☑ Hiring for marketing
- ☑ Acquire hemp processor
- ☑ Solidify regional market share

2023 ▶

- ☑ Revenue goal: $12M
- ☑ Hiring for operations and sales
- ☑ Establish regional retail
- ☑ Expand regional market share.

2024 ▶

- ☑ Revenue goal: $30M
- ☑ Hiring for leadership
- ☑ Solidify national market share
- ☑ Establish national retail

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# Why did we acquire our processor?

A partnership that produced the first USDA certified organic CBD products from Kentucky.

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## Reduced COGS

Acquiring our processor will increase our margins from 85% to 93%, which saves more than $4M over 3 years.

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## Gummy Manufacturing

Our processor is the only USDA organic CBD gummy manufacturer in the US, which makes Cornbread one of the only companies to offer USDA organic CBD gummies.

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## USDA Organic & Kentucky Based

USDA organic certification takes years to obtain, and only 5% of CBD companies are certified organic. We are one of them.

# FUTURE PROJECTIONS

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THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

## Before we exit...

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The full value of the Cornbread brand won't be realized until the development of the "Cornbread Mafia" book-to-film project. Our projections through 2025 do not include the potential growth from this opportunity.

### The "Cornbread Mafia" book

- Fifteen printings since 2012
- 50,000+ copies sold
- National best-seller

### The "Cornbread Mafia" podcast

- Projected release date: Q1 2023
- Cornbread Hemp is the exclusive sponsor

### The "Cornbread Mafia" TV series

- Currently in discussions with major talent
- Estimated production 2024 - 2025

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# WHAT A RELIEF.TM

Thank you for your consideration.

Office: +1(502) 289-1552

eric@cornbreadhemp.com

jim@cornbreadhemp.com

www.cornbreadhemp.com

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## MEET OUR
CO-FOUNDERS

**JIM HIGDON, CCO**

- › Author of The Cornbread Mafa
- › Cannabis reporter for POLITICO
- › Hemp industry expert

**ERIC ZIPPERLE, CEO**

- › Junior executive, Belle Nobel Entertainment
- › Launched Mint Julep Tours Nashville
- › Accounting degree & MBA, Bellarmine

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Cornbread CBD, PBC

**Legal Status:** Other

**Jurisdiction of Incorporation/Organization:** KY

**Date of Organization:** 01-31-2019

**Physical Address:** 2517 Data Drive, Louisville, KY, 40299

**Issuer Website:** https://www.cornbreadhemp.com

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 27

**Total Assets (Most Recent Fiscal Year):** $608,450.00

**Total Assets (Prior Fiscal Year):** $536,549.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $253,583.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $401,142.00

**Accounts Receivable (Most Recent Fiscal Year):** $6,409.00

**Accounts Receivable (Prior Fiscal Year):** $3,948.00

**Short-Term Debt (Most Recent Fiscal Year):** $692,518.00

**Short-Term Debt (Prior Fiscal Year):** $25,312.00

**Long-Term Debt (Most Recent Fiscal Year):** $98,763.00

**Long-Term Debt (Prior Fiscal Year):** $446,441.00

**Revenues/Sales (Most Recent Fiscal Year):** $1,855,863.00

**Revenues/Sales (Prior Fiscal Year):** $429,871.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $609,590.00

**Cost of Goods Sold (Prior Fiscal Year):** $177,363.00

**Taxes Paid (Most Recent Fiscal Year):** $175.00

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

**Net Income (Most Recent Fiscal Year):** $-147,807.00

**Net Income (Prior Fiscal Year):** $-9,022.00

### Signatures

**Issuer:** Cornbread CBD, PBC

**Signature:** Jim Higdon

**Title:** Co-founder & CCO

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**Signature:** Eric Zipperle

**Title:** CEO and Co-founder

**Date:** 01-30-2023

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**Signature:** Jim Higdon

**Title:** Co-founder & CCO

**Date:** 01-30-2023