# EDGAR Filing Document

**Accession Number:** 0001945654
**File Stem:** 0001665160-23-000013
**Filing Date:** 2023-1
**Character Count:** 74380
**Document Hash:** b23ccb7047c92f3d60295a866b462585
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001665160-23-000013.hdr.sgml**: 20230104

**ACCESSION NUMBER**: 0001665160-23-000013

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230104

**DATE AS OF CHANGE**: 20230104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Nipyata, Inc.
- **CENTRAL INDEX KEY:** 0001945654
- **IRS NUMBER:** 471072830
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31568
- **FILM NUMBER:** 23505258

**BUSINESS ADDRESS:**
- **STREET 1:** 308 CATALINA BOULEVARD
- **CITY:** SAN RAFAEL
- **STATE:** CA
- **ZIP:** 94901
- **BUSINESS PHONE:** 1-800-691-9127

**MAIL ADDRESS:**
- **STREET 1:** 308 CATALINA BOULEVARD
- **CITY:** SAN RAFAEL
- **STATE:** CA
- **ZIP:** 94901

### Attached PDF Documents

**Attachment 1:** `offeringmemoformc.pdf`

## **Offering Memorandum: Part II of Offering Document (Exhibit A to Form C)**

Nipyata, Inc.
308 Catalina Boulevard
San Rafael, CA 94901
nipyata.com

Up to $1,234,999.56 in Common Stock at $2.13
Minimum Target Amount: $9,998.22

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

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

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

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

# Company:

Company: Nipyata, Inc.

Address: 308 Catalina Boulevard, San Rafael, CA 94901

State of Incorporation: DE

Date Incorporated: March 16, 2021

# Terms:

## Equity

Offering Minimum: $9,998.22 | 4,694 shares of Common Stock

Offering Maximum: $1,234,999.56 | 579,812 shares of Common Stock

Type of Security Offered: Common Stock

Purchase Price of Security Offered: $2.13

Minimum Investment Amount (per investor): $249.21

*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.*

## Voting Rights of Securities Sold in this Offering

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the 'CEO'), or his or her successor, as the Subscriber's true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

## Time-Based:

### Friends and Family Early Birds

Invest within the first 72 hours and receive 20% bonus shares.

### Super Early Bird Bonus

Invest within the first week and receive 15% bonus shares.

### **Early Bird Bonus**

Invest within the first two weeks and receive 10% bonus shares.

#### **Amount-Based:**

##### **\$249+ | The Stay Classy**

Receive a 12-pack of our Drinkable Greeting Cards to share with your favorite boozy friends, family and co-workers, plus 10% off NIPYATA! orders for one year. Stay Classy you boozy beauty.

##### **\$500+ | The Stay Bougie**

Receive a FREE Stay Classy Burrito (includes 10 of our favorite nips) with your investment. Celebrate perhaps the smartest investment you’ve ever made by smashing the original booze-filled piñata. Cheers to you, Mr. Warren Buffet, you boozy beaut!

##### **\$1,000+ | The Dirty Bird**

Receive a FREE \$100 Sampler Pack from our favorite Beverage Alcohol Brands including BakeSale, SodaJerk, Hecho Tequila & Soda, VIVA Tequila Seltzer and Celaya Tequila! This investment is going to be the talk of the town at your next social soiree.

##### **\$2,500+ | El Toro Loco**

Receive a FREE \$150 Sampler Pack as detailed in Tier 3. The Crazy Bull once said you’d be crazy not to invest into NIPYATA! Start Engine Round. Then you realized you didn’t invest nearly enough. Double down with the El Toro Loco and thank us later.

##### **\$5,000+ | The Peen**

Receive a FREE \$250 Sampler Pack as detailed in Tier 3. The Peen-Yata! put NIPYATA! on the map for the ultimate Bachelorette Party Enhancement Gift - and this investment might just put you on the Midas List. Includes 5% additional bonus shares.

##### **\$10,000+ | The Sugar Mama**

15% Off All Nipyata Purchases For 2 Years. Receive a FREE \$500 Sampler Pack as detailed in Tier 3! If you’ve always wanted to become a Sugar Mama, this perhaps could be just the right investment for you. Includes 10% additional bonus shares.

##### **\$25,000+ | The Big Hitter**

20% Off All Nipyata Purchases For 2 Years. Receive a FREE \$1,000 Sampler Pack as detailed in Tier 3. You’re a Big Hitter and now it’s time to get back on your yacht and enjoy some tasty beverages, you beauty! Includes 15% additional bonus shares.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.*

## StartEngine 10% Owners' Bonus

Nipyata, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $2.13 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $213. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors' eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner's Bonus in addition to the aforementioned bonus.

## The Company and its Business

### Company Overview

Niptaya, Inc. is building the go-to online platform for beverage alcohol. Brands leverage our platform to create unique products, compliant e-commerce activation, and effective digital marketing campaigns to grow sales, customer engagement, and brand awareness. We've partnered with Bud Light, Angry Orchard, Captain Morgan, SVEDKA, Skrewball Whiskey, and other beverage brands to help them stand out in the market.

NIPYATA! provides a platform for brands to create branded 'Drinkable Greeting Cards' 'Booze-filled Piñatas' and 'Booze-filled Advent Calendars' - we generate revenue on the production and design of the products, selling the products into retailers, selling paid media deals and consumer sales online on our e-comm store nipyata.com

Niptaya, Inc. is a C Corporation that was organized under the laws of Delaware on March 16, 2021.

On March 24, 2021, Nipyata, Inc., a Delaware corporation (surviving company) merged with Nipyata, Inc., a New Jersey corporation with Nipyata, Inc. becoming the lone surviving entity.

## *Competitors and Industry*

Drizly - the largest online marketplace for beverage alcohol - no unique gifting options

ReserveBar - luxury online marketplace for spirits - limited and expensive gift options

SpeakEasy - e-comm platform for bev alc focused on logistics and shipping.

Thirstie - niche e-comm platform for bev alc

Saucey - niche e-comm platform for bev alc

We are differentiated in that we are creating unique branded products unavailable on any other online stores, a marketing SaaS platform, and compliant e-comm activation.

The US online gifting market is worth $131 billion. E-commerce alcoholic beverage sales grew by 43% in 2020 and are expected to increase by 66% between 2022 and 2025 (https://www.beveragedaily.com/Article/2021/12/07/Beverage-alcohol-ecommerce-set-to-grow-66-in-2020-2025).

## *Current Stage and Roadmap*

### **CURRENT STAGE**

We have bootstrapped to over $2MM in revenue and we now want to scale our partnerships, accelerate in-store availability and build out a technology platform for brands to create products, launch marketing campaigns, and better manage their online gifting. We want to build the go-to platform for beverage alcohol gifting for big and small beer, wine, champagne, RTD, and spirits brands across the globe.

### **FUTURE ROADMAP**

#### **Launching new products**

We will be building out a new line of products every 2 - 3 months including gifting solutions, subscriptions, full-size wine, champagne, beer, and spirits. We plan to onboard new brands and offer a SaaS platform to help new brands launch online.

#### **Expanding distribution channels**

We are expanding our distribution channels by working on a wholesale expansion to get our branded products into retail liquor stores and big box retailers that sell beverage alcohol. Part of our raise is to have funds available to hire wholesale salespeople to help us expand. This will allow us to list our products on additional e-comm marketplaces such as Drizly and GoPuff.

#### **Increase certain marketing efforts**

We will be investing in larger partnerships and national pr campaigns to amplify the brand.

Any major works in the development in the upcoming year.

We have a plan for over 30,000 units of our NIPYATA! Cinco de Mayo Gift Pack to be available for same-day delivery on Cinco de Mayo in over 20 major markets via NIPYATA!, GoPuff and Drizly.

## The Team

### Officers and Directors

**Name:** William Hench

William Hench's current primary role is with the Issuer.

Positions and offices currently held with the issuer:

- **Position:** CEO, Co-Founder, Director
  **Dates of Service:** January, 2019 - Present
  **Responsibilities:** Hiring, Sales, Marketing, Brand, Funding - William Hench has an annual salary of $48,000 and equity compensation of 3,200,000 shares

**Name:** Dan Cedrone

Dan Cedrone's current primary role is with the Issuer.

Positions and offices currently held with the issuer:

- **Position:** COO, Co-Founder, Director
  **Dates of Service:** January, 2019 - Present
  **Responsibilities:** Financials, Reporting, Product Development, Manufacturing, Inventory Dan Cedrone has an annual salary of $0.00 and equity compensation of 3,200,000 shares. Dan works 50 hours per week at Nipyata.

Other business experience in the past three years:

- **Employer:** Street Account
  **Title:** Analyst
  **Dates of Service:** January, 2012 - Present
  **Responsibilities:** Research and Analysis for Financial Companies. Dan works 40 hours per week at Street Account.

**Name:** Andrew Hench

Andrew Hench's current primary role is with the Issuer.

Positions and offices currently held with the issuer:

• Position: CRO, Co-Founder, Director
Dates of Service: January, 2019 - Present
Responsibilities: Sales, B2B Sales, Retail Expansion, Customer Success, Customer Service Andrew Hench has an annual, monthly salary of $0.00 and equity compensation of 1,600,000 shares. Andrew works 40 hours per week at the Company.

Other business experience in the past three years:

• Employer: Amazon
Title: Manager
Dates of Service: January, 2021 - Present
Responsibilities: Operations. Andrew works 40 hours per week at Amazon.

## Risk Factors

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

These are the risks that relate to the Company:

### *Uncertain Risk*

An investment in the Company (also referred to as “we”, “us”, “our”, or “Company”) involves a high degree of risk and should only be considered by those who can afford the loss of their entire investment. Furthermore, the purchase of any of the equity should only be undertaken by persons whose financial resources are sufficient to enable them to indefinitely retain an illiquid investment. Each investor in the Company should consider all of the information provided to such potential investor regarding the Company as well as the following risk factors, in addition to the other information listed in the Company’s Form C. The following risk factors are not intended, and shall not be deemed to be, a complete description of the commercial and other risks inherent in the investment in the Company.

### *Our business projections are only projections*

There can be no assurance that the Company will meet our projections. There can be no assurance that the Company will be able to find sufficient demand for our product, that people think it’s a better option than a competing product, or that we will able to provide the service at a level that allows the Company to make a profit and still attract business.

### ***Any valuation at this stage is difficult to assess***

The valuation for the offering was established by the Company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment.

### ***The transferability of the Securities you are buying is limited***

Any equity purchased through this crowdfunding campaign is subject to SEC limitations of transfer. This means that the stock/note that you purchase cannot be resold for a period of one year. The exception to this rule is if you are transferring the stock back to the Company, to an 'accredited investor,' as part of an offering registered with the Commission, to a member of your family, trust created for the benefit of your family, or in connection with your death or divorce.

### ***Your investment could be illiquid for a long time***

You should be prepared to hold this investment for several years or longer. For the 12 months following your investment there will be restrictions on how you can resell the securities you receive. More importantly, there is no established market for these securities and there may never be one. As a result, if you decide to sell these securities in the future, you may not be able to find a buyer. The Company may be acquired by an existing player in the educational software development industry. However, that may never happen or it may happen at a price that results in you losing money on this investment.

### ***We may not have enough capital as needed and may be required to raise more capital.***

We anticipate needing access to credit in order to support our working capital requirements as we grow. Although interest rates are low, it is still a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity may require bringing on additional investors. Securing these additional investors could require pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced lower, your ownership percentage would be decreased with the addition of more investors. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your investment.

### ***Terms of subsequent financings may adversely impact your investment***

We will likely need to engage in common equity, debt, or preferred stock financings in the future, which may reduce the value of your investment in the Common Stock. Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms

of preferred stock could be more advantageous to those investors than to the holders of Common Stock. In addition, if we need to raise more equity capital from the sale of Common Stock, institutional or other investors may negotiate terms that are likely to be more favorable than the terms of your investment, and possibly a lower purchase price per share.

### ***Management Discretion as to Use of Proceeds***

Our success will be substantially dependent upon the discretion and judgment of our management team with respect to the application and allocation of the proceeds of this Offering. The use of proceeds described below is an estimate based on our current business plan. We, however, may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category to another, and we will have broad discretion in doing so.

### ***Projections: Forward Looking Information***

Any projections or forward looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management's best estimate of the probable results of our operations and will not have been reviewed by our independent accountants. These projections will be based on assumptions which management believes are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Therefore, actual results of operations will vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.

### ***The amount raised in this offering may include investments from company insiders or immediate family members***

Officers, directors, executives, and existing owners with a controlling stake in the company (or their immediate family members) may make investments in this offering. Any such investments will be included in the raised amount reflected on the campaign page.

### ***We may never have an operational product or service***

It is possible that there may never be an operational e-commerce platform or that the product may never be used to engage in transactions. It is possible that the failure to release the product is the result of a change in business model upon Company's making a determination that the business model, or some other factor, will not be in the best interest of Company and its stockholders/members/creditors.

### ***Some of our products are still in prototype phase and might never be operational products***

It is possible that there may never be an operational product or that the product may never be used to engage in transactions. It is possible that the failure to release the product is the result of a change in business model upon the Company's making a determination that the business model, or some other factor, will not be in the best interest of the Company and its stockholders.

### ***Developing new products and technologies entails significant risks and uncertainties***

We are currently in the research and development stage and have only manufactured a

prototype for our SaaS E-Comm platform. Delays or cost overruns in the development of our SaaS E-comm platform and failure of the product to meet our performance estimates may be caused by, among other things, unanticipated technological hurdles, difficulties in manufacturing, changes to design and regulatory hurdles. Any of these events could materially and adversely affect our operating performance and results of operations.

### ***Minority Holder; Securities with Voting Rights***

The Common Stock that an investor is buying has voting rights attached to them. However, you will be part of the minority shareholders of the Company and have agreed to appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as your voting proxy. You are trusting in management discretion in making good business decisions that will grow your investments. Furthermore, in the event of a liquidation of our Company, you will only be paid out if there is any cash remaining after all of the creditors of our Company have been paid out.

### ***You are trusting that management will make the best decision for the company***

You are trusting in management discretion. You are buying securities as a minority holder, and therefore must trust the management of the Company to make good business decisions that grow your investment.

### ***Insufficient Funds***

The company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case it will cease operating and you will get nothing. Even if we sell all the common stock we are offering now, the Company will (possibly) need to raise more funds in the future, and if it can’t get them, we will fail. Even if we do make a successful offering in the future, the terms of that offering might result in your investment in the company being worth less, because later investors might get better terms.

### ***This offering involves “rolling closings,” which may mean that earlier investors may not have the benefit of information that later investors have.***

Once we meet our target amount for this offering, we may request that StartEngine instruct the escrow agent to disburse offering funds to us. At that point, investors whose subscription agreements have been accepted will become our investors. All early-stage companies are subject to a number of risks and uncertainties, and it is not uncommon for material changes to be made to the offering terms, or to companies’ businesses, plans or prospects, sometimes on short notice. When such changes happen during the course of an offering, we must file an amended to our Form C with the SEC, and investors whose subscriptions have not yet been accepted will have the right to withdraw their subscriptions and get their money back. Investors whose subscriptions have already been accepted, however, will already be our investors and will have no such right.

### ***Our new product could fail to achieve the sales projections we expected***

Our growth projections are based on an assumption that with an increased advertising and marketing budget our products will be able to gain traction in the marketplace at

a faster rate than our current products have. It is possible that our new products will fail to gain market acceptance for any number of reasons. If the new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

#### ***We face significant market competition***

We will compete with larger, established companies who currently have products on the market and/or various respective product development programs. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or superior products than those developed by us. There can be no assurance that competitors will render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.

#### ***We are an early stage company and have not yet generated any profits***

Nipyata Inc. was formed on 6/11/2014. Accordingly, the Company has a limited history upon which an evaluation of its performance and future prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. Nipyata Inc. has incurred a net loss and has had limited revenues generated since inception. There is no assurance that we will be profitable in the next 3 years or generate sufficient revenues to pay dividends to the holders of the shares.

#### ***We are an early stage company and have limited revenue and operating history***

The Company has a short history, few customers, and effectively no revenue. If you are investing in this company, it's because you think that Beverage Alcohol Digital Commerce is a good idea, that the team will be able to successfully market, and sell the product or service, that we can price them right and sell them to enough peoples so that the Company will succeed. Further, we have never turned a profit and there is no assurance that we will ever be profitable.

#### ***We have pending patent approval's that might be vulnerable***

One of the Company's most valuable assets is its intellectual property. The Company's intellectual property such as patents, trademarks, copyrights, Internet domain names, and trade secrets may not be registered with the proper authorities. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company due to its unregistered intellectual property.

*Our trademarks, copyrights and other intellectual property could be unenforceable or*

### ***ineffective***

Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company's value will be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company.

### ***The cost of enforcing our trademarks and copyrights could prevent us from enforcing them***

Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

### ***The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business***

To be successful, the Company requires capable people to run its day to day operations. As the Company grows, it will need to attract and hire additional employees in sales, marketing, design, development, operations, finance, legal, human resources and other areas. Depending on the economic environment and the Company's performance, we may not be able to locate or attract qualified individuals for such positions when we need them. We may also make hiring mistakes, which can be costly in terms of resources spent in recruiting, hiring and investing in the incorrect individual and in the time delay in locating the right employee fit. If we are unable to attract, hire and retain the right talent or make too many hiring mistakes, it is likely our business will suffer from not having the right employees in the right positions at the right time. This would likely adversely impact the value of your investment.

### ***Our ability to sell our product or service is dependent on outside government regulation which can be subject to change at any time***

Our ability to sell product is dependent on the outside government regulation such as the FDA (Food and Drug Administration), FTC (Federal Trade Commission) and other relevant government laws and regulations. The laws and regulations concerning the

selling of product may be subject to change and if they do then the selling of product may no longer be in the best interest of the Company. At such point the Company may no longer want to sell product and therefore your investment in the Company may be affected.

# ***We rely on third parties to provide services essential to the success of our business***

We rely on third parties to provide a variety of essential business functions for us, including manufacturing, shipping, accounting, legal work, public relations, advertising, retailing, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other suppliers' operations could materially and adversely affect our business. As a result, your investment could be adversely impacted by our reliance on third parties and their performance.

# ***The Company is vulnerable to hackers and cyber-attacks***

As an internet-based business, we may be vulnerable to hackers who may access the data of our investors and the issuer companies that utilize our platform. Further, any significant disruption in service on Nipyata.com or in its computer systems could reduce the attractiveness of the platform and result in a loss of investors and companies interested in using our platform. Further, we rely on a third-party technology provider to provide some of our back-up technology. Any disruptions of services or cyber-attacks either on our technology provider or on Nipyata.com could harm our reputation and materially negatively impact our financial condition and business.

# Ownership and Capital Structure; Rights of the Securities

## Ownership

The following table sets forth information regarding beneficial ownership of the company's holders of 20% or more of any class of voting securities as of the date of this Offering Statement filing.

| Stockholder Name | Number of Securities Owned | Type of Security Owned | Percentage |
| --- | --- | --- | --- |
| William Hench | 3,200,000 | Common Stock | 40.0% |
| Dan Cedrone | 3,200,000 | Common Stock | 40.0% |
| Andrew Hench | 1,600,000 | Common Stock | 20.0% |

## The Company's Securities

The Company has authorized SAFE, and Common Stock. As part of the Regulation Crowdfunding raise, the Company will be offering up to 579,812 of Common Stock.

### *SAFE*

The security will convert into Preferred stock or common stock (see below for additional information) and the terms of the SAFE are outlined below:

**Amount outstanding:** $1,908,000.00

**Interest Rate:** %

**Discount Rate:** 0.0%

**Valuation Cap:** $15,000,000.00

**Conversion Trigger:** an Equity financing, Liquidation Event or a Dissolution Event (see below for additional information)

### *Material Rights*

Equity Financing. If there is an Equity Financing before the expiration or termination of this instrument, the Company will automatically issue to the Investor a number of shares of Capital Stock equal to the Purchase Amount divided by the Conversion Price (the 'Total Number of Shares'); provided, however, that, the Total Number of Shares shall consist of (i) that number of shares of Standard Preferred Stock issued in the Equity Financing obtained by dividing (A) the entire Purchase Amount by (B) the Equity Financing Price (the 'Number of Preferred Stock') and (ii) that number of shares of Common Stock equal to the Total Number of Shares minus the Number of Preferred Stock.

In connection with the issuance of Capital Stock by the Company to the Investor pursuant to this Section 1(a), the Investor will execute and deliver to the Company all transaction documents related to the Equity Financing; provided, that such documents are the same documents to be entered into with the purchasers of Standard Preferred Stock in connection with the Equity Financing.

(b) Liquidity Event. If there is a Liquidity Event before the expiration or termination of this instrument, the Investor will, at its option, either (i) receive a cash payment (or equivalent consideration in the event of a Change of Control in which the sole consideration received by the Company’s equity holders is in a form other than cash) equal to the Purchase Amount (the “Cash-Out Amount”) (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

In connection with Section 1(b)(i), the Cash-Out Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event, and shall be in respect of all obligations of the Company pursuant to this instrument. If there are not enough funds to pay the Investor and holders of other SAFEs (collectively, the “Cash-Out Investors”) in full, then all of the Company’s available funds will be distributed with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts, and the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce, pro rata, the Purchase Amounts payable to the Cash-Out Investors by the amount determined by its board of directors in good faith to be advisable for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

(c) Dissolution Event. If there is a Dissolution Event before this instrument expires or terminates, the Company will pay an amount equal to the Purchase Amount, due and payable to the Investor immediately prior to, or concurrent with, the consummation of the Dissolution Event. The Purchase Amount will be paid prior and in preference to any Distribution of any of the assets of the Company to holders of outstanding Capital Stock by reason of their ownership thereof. If immediately prior to the consummation of the Dissolution Event, the assets of the Company legally available for distribution to the Investor and all holders of all other SAFEs (the “Dissolving Investors”), as determined in good faith by the Company’s board of directors, are insufficient to permit the payment to the Dissolving Investors of their respective Purchase Amounts, then the entire assets of the Company legally available for distribution will be distributed with equal priority and pro rata among the Dissolving Investors in proportion to the Purchase Amounts they would otherwise be entitled to receive pursuant to this Section 1(c).

#### Definitions.

“Capital Stock” means the capital stock of the Company, including, without limitation, the “Common Stock” and the “Preferred Stock.”

“Change of Control” means (i) a transaction or series of related transactions in which

any “person” or “group” (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company’s board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

“Company Capitalization” means the sum, as of immediately prior to the Equity Financing, of: (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding (A) this instrument, (B) all other SAFEs, and (C) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

“Conversion Price” means either (1) the SAFE Price or (2) the Equity Financing Price, whichever calculation results in a greater Total Number of Shares.

“Distribution” means the transfer to holders of Capital Stock by reason of their ownership thereof of cash or other property without consideration whether by way of dividend or otherwise, other than dividends on Common Stock payable in Common Stock, or the purchase or redemption of Capital Stock by the Company or its subsidiaries for cash or property other than: (i) repurchases of Common Stock held by employees, officers, directors or consultants of the Company or its subsidiaries pursuant to an agreement providing, as applicable, a right of first refusal or a right to repurchase shares upon termination of such service provider’s employment or services; or (ii) repurchases of Capital Stock in connection with the settlement of disputes with any stockholder.

“Dissolution Event” means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company’s creditors or (iii) any other liquidation, dissolution or winding up of the Company (excluding a Liquidity Event), whether voluntary or involuntary.

“Equity Financing” means a bona fide transaction or series transaction with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed pre-money valuation.

“Equity Financing Price” means the price per share of the Standard Preferred Stock sold in the Equity Financing.

“Initial Public Offering” means the closing of the Company’s first firm commitment underwritten initial public offering of Common Stock pursuant to a registration statement filed under the Securities Act.

“Liquidity Capitalization” means the number, as of immediately prior to the Liquidity Event, of shares of Capital Stock (on an as-converted basis) outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan; (ii) this instrument; (iii) other SAFEs; and (iv) convertible promissory notes.

“Liquidity Event” means a Change of Control or an Initial Public Offering.

“Liquidity Price” means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization.

“SAFE” means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors (“SAFE Investors”) for the purpose of funding the Company’s business operations.

“SAFE Price” means the price per share equal to the Valuation Cap divided by the Company Capitalization.

“Standard Preferred Stock” means the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

### *Common Stock*

The amount of security authorized is 10,000,000 with a total of 9,246,244 outstanding.

### *Voting Rights*

1 vote per share. Please see Voting Rights of Securities Sold in this Offering below for additional information.

### *Material Rights*

*The total amount outstanding of Common Stock includes 1,246,244 shares to be issued pursuant to stock options, reserved but unissued.*

## **Voting Rights of Securities Sold in this Offering**

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in

the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

## Restrictions on Transfer

11.1.1 No holder (“Stockholder”) of shares of capital stock of the Corporation (“Shares”) may transfer, sell, assign, pledge, enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of, or otherwise in any manner dispose of or encumber, whether voluntarily or by operation of law, or by gift or otherwise (“transfer”), Shares or any right or interest therein without the prior written consent of the Corporation, in its sole discretion, and such holder otherwise complying with the requirements of this Article XI.

11.1.2 The restriction contained in subsection 11.1.1 shall not apply to the following transactions (each, a “Permitted Transfer”): (i) any transfer during the Stockholder’s lifetime by gift or pursuant to domestic relations orders to the Stockholder’s immediate family or a trust for the benefit of Stockholder or Stockholder’s immediate family, where “immediate family” as used herein shall mean spouse, Spousal Equivalent, lineal descendant or antecedent, parent, sibling, stepchild, stepparent, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law (and for avoidance of doubt shall include adoptive relationships), and where a person is deemed to be a “Spousal Equivalent” provided the following circumstances are true: (a) irrespective of whether or not the relevant person and the Spousal Equivalent are the same sex, they are the sole spousal equivalent of the other for the last twelve (12) months, (b) they intend to remain so indefinitely, (c) neither are married to anyone else, (d) both are at least 18 years of age and mentally competent to consent to contract, (e) they are not related by blood to a degree of closeness that which would prohibit legal marriage in the state in which they legally reside, (f) they are jointly responsible for each other’s common welfare and financial obligations, and (g) they reside together in the same residence for the last twelve (12) months and intend to do so indefinitely; (ii) any transfer or deemed transfer effected pursuant to the Stockholder’s will or the laws of intestate succession; (iii) any transfer by an entity Stockholder to an Affiliate (as defined below) of such Stockholder, where, for purposes of this Article XI, (a) an “Affiliate” of an entity Stockholder shall include any individual, firm, corporation, partnership, association, limited liability company, trust or other entity who, directly or indirectly, controls, is controlled by or is under common control with such entity Stockholder or such entity Stockholder’s principal,

including, without limitation, any general partner, managing member, managing partner, officer or director of such entity Stockholder, such entity Stockholder's principal or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such entity Stockholder or such entity Stockholder's principal, and (b) the terms 'controlling,' 'controlled by,' or 'under common control with' shall mean the possession, directly or indirectly, of (x) the power to direct or cause the direction of the management and policies of an entity Stockholder, whether through the ownership of voting securities, by contract, or otherwise, or (y) the power to elect or appoint at least 50% of the directors, managers, general partners, or persons exercising similar authority with respect to such entity Stockholder; (iv) a corporate Stockholder's transfer of all of its shares to a single transferee pursuant to and in accordance with the terms of any bona fide merger, consolidation, reclassification of shares or capital reorganization of the corporate Stockholder, or pursuant to a bona fide sale of all or substantially all of the stock or assets of a corporate Stockholder, provided in each case that such transfer is not essentially simply a transfer of the Shares without substantial additional assets other than cash or cash equivalents being transferred; (v) any repurchase or redemption of Shares by the Corporation: (a) at or below cost, upon the occurrence of certain events, such as the termination of employment or services; or (b) at any price pursuant to the Corporation's exercise of a right of first refusal to repurchase such Shares (including the purchase of such Shares by the Corporation's assignee); and/or (vi) any transfer or deemed transfer approved by a majority of the disinterested members of the Board, even though the disinterested directors are less than a quorum; provided, however, that notwithstanding the foregoing, if a transfer or deemed transfer is approved pursuant to this clause (vi) and the Shares of the transferring Stockholder are subject to co-sale rights (the 'Co-Sale Rights'), the persons and/or entities entitled to the Co-Sale Rights shall be permitted to exercise their respective Co-Sale Rights in conjunction with such approved transfer or deemed transfer without any additional approval of the Board. provided, however, that each transferee, assignee, or other recipient of any interest in the Shares shall, as a condition to the transfer, agree to be bound by all of the restrictions set forth in these Bylaws.

11.1.3 As a condition to any transfer, the Corporation may, in its sole discretion, (i) require in connection with such transfer of Shares delivery to the Corporation of a written opinion of legal counsel, in form and substance satisfactory to it or its legal counsel in their respective discretion, that such transfer is exempt from applicable federal, state or other securities laws and regulations (a 'Legal Opinion'), (ii) charge the transferor, transferee or both a transfer fee in such amount as may be reasonably determined by the Corporation's management in order to recoup the Corporation's internal and external costs of processing such transfer, due and payable to the Corporation prior to or upon effectiveness of such transfer, and/or (iii) require such transfer to be effected pursuant to a standard form of transfer agreement in such customary and reasonable form as may be determined by the Corporation's management from time to time in its discretion.

## **Right of First Refusal**

11.2.1 In addition to and without limiting the effect of Section 11.1, if the Stockholder desires to transfer any of his Shares pursuant to Section 11.1.2(vi) above, then the Stockholder shall first give written notice thereof to the Corporation. The notice shall (i) name the proposed transferee, (ii) state (a) the number of Shares to be transferred, (b) the proposed consideration and (c) all other terms and conditions of the proposed transfer, (iii) be signed by such Stockholder and the proposed purchaser or transferee, (iv) must constitute a binding commitment subject to the Corporation's right of first refusal as set forth herein, (v) be accompanied by proof satisfactory to the Corporation or its legal counsel that the proposed sale or transfer will not violate any applicable U.S. federal, state or other securities laws, and (vi) offer the Shares at the same price and upon the same terms (or terms as similar as reasonably possible) to the Corporation or its assignee(s). The notice shall not be deemed delivered for purposes of this Section 11.2 until the later of (i) such time as the transferring Stockholder shall have delivered the foregoing notice to the Corporation, (ii) such time as any Legal Opinion that may be required pursuant to subsection 11.1.3(i) shall have been delivered to the Corporation, (iii) such time as an officer of the Corporation shall have confirmed in writing (including via email) that no such Legal Opinion shall be required with respect to the proposed transfer (or is not required to be delivered until a time reasonably in advance of the consummation of the proposed transfer).

11.2.2 For thirty (30) days following receipt of such notice, the Corporation and/or its assignee shall have the option to purchase all (but not less than all) of the Shares specified in the notice at the price and upon the terms (or terms as similar as reasonably possible) set forth in such notice; provided, however, that, with the consent of the transferring Stockholder, the Corporation shall have the option to purchase a lesser portion of the Shares specified in said notice at the price and upon the terms set forth therein. In the event of a gift, property settlement or other transfer in which the proposed transferee is not paying the full price for the Shares, and that is not otherwise exempted from the provisions of this Section 11.2, the price shall be deemed to be the fair market value of the stock at such time as determined in good faith by the Board. In the event the Corporation elects to purchase all of the Shares or, with consent of the transferring Stockholder, a lesser portion of the Shares, it shall give written notice to the transferring Stockholder of its election and settlement for said Shares shall be made as provided below in the next paragraph.

11.2.3 In the event the Corporation and/or its assignee(s) elect to acquire any of the Shares of the transferring Stockholder as specified in said transferring Stockholder's notice, the Secretary of the Corporation shall so notify the transferring Stockholder and settlement thereof shall be made in cash within sixty (60) days after the Secretary of the Corporation receives said transferring Stockholder's notice; provided that if the terms of payment set forth in said transferring Stockholder's notice were other than cash against delivery, the Corporation and/or its assignee(s) shall pay for said Shares on the same terms and conditions set forth in said transferring Stockholder's notice.

11.2.4 In the event the Corporation and/or its assignees(s) do not elect to acquire all of the Shares specified in the transferring Stockholder's notice, said transferring Stockholder may, within the sixty (60)-day period following the expiration of the

option rights granted to the Corporation and/or its assignees(s) herein, transfer the Shares specified in said transferring Stockholder's notice which were not acquired by the Corporation and/or its assignees(s) as specified in said transferring Stockholder's notice. All Shares so sold by said transferring Stockholder shall continue to be subject to the provisions of these Bylaws in the same manner as before said transfer.

11.2.5 Anything to the contrary contained herein notwithstanding, a Permitted Transfer shall be exempt from the provisions of this Section 11.2.

## What it means to be a minority holder

As a minority holder of Common Stock of this offering, you have granted your votes by proxy to the CEO of the Company. Even if you were to receive control of your voting rights, as a minority holder, you will have limited rights in regards to the corporate actions of the company, including additional issuances of securities, company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties. Further, investors in this offering may have rights less than those of other investors, and will have limited influence on the corporate actions of the company.

## Dilution

Investors should understand the potential for dilution. The investor's stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock. If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

## Transferability of securities

For a year, the securities can only be resold:

- To an accredited investor; and

- 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.

## Recent Offerings of Securities

We have made the following issuances of securities within the last three years:

- Type of security sold: SAFE
  Final amount sold: $1,908,000.00
  Use of proceeds: Inventory, Marketing, Operating Expense
  Date: May 10, 2022
  Offering exemption relied upon: Section 4(a)(2)

## Financial Condition and Results of Operations

### Financial Condition

*You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and related notes appearing at the end of this Offering Memorandum. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled “Risk Factors” and elsewhere in this Offering Memorandum.*

### Results of Operations

Circumstances which led to the performance of financial statements:

#### Financial statements

Our financial statements for the years ending December 31, 2021 and 2020 can be found in Exhibit B to the Form C of which this Offering Memorandum forms a part.

#### Financial condition

The Company generates revenue by selling customized consumer goods packaging, paper goods and innovative consumer gifting products in the United States. The Company also generates revenue through corporate gifting, wholesale, Paid Media Partnerships, SaaS fees and Digital Marketing Services.

#### Results of operations

##### Revenue

2021 was a very successful year for the Company as we experienced record revenues and unit sales. 2021 revenues exceeded $1.89 million, up more than 9% from 2020. This increase in sales was primarily driven by US-based direct-to-consumer sales, which represented over 90% of total 2021 sales. We believe that this performance was primarily driven by three factors: improved Return on Advertising Spend, consumers purchase behavior shifting online and increased demand for consumer gifting.

### **Cost of sales**

Cost of sales in 2021 was $1,214,032, up approximately $700,000 from 2020’s cost of sales of $745,323. The increase in cost of sales was caused by the increase in labor, shipping and supplies.

### **Gross margins**

Gross profit in 2021 was $685,878 down from a 2020 gross profit of $992,935, a decrease of almost $320,000. Gross margins as a percentage of revenue decreased from 57% in 2020 to 36% in 2021. This decreased performance was primarily driven by a significant increase in costs from logistics, shipping and supply chain resulting in higher cost of input goods.

### **Expenses**

2021 expenses were $1,977,000, up almost $830,000 from expenses of $1,175,000 in 2020. Over $450,000 of this increase is from additional marketing spend, primarily related to the 2021 paid digital marketing campaigns which were less effective and more costly due to data privacy rules put in place by social media advertising platforms. The increase in expenses is also primarily related to increased wages of $140,000.

### **Historical results and cash flows:**

Inventory and Marketing were the most cash flow intensive over the past two years

Raising the SAFE note helped generate cash. We will likely raise more equity to generate additional cash and will be able to use revenue as a source of cash.

W believe past financial performance will be indicative of future financial performance as we have been in business for over 2 years and we have been selling products and services in the market.

## **Liquidity and Capital Resources**

**What capital resources are currently available to the Company? (Cash on hand, existing lines of credit, shareholder loans, etc...)**

As of August 15th, the Company has $120,000 in cash on hand and have access to additional funding through our existing angel investors and shareholder loans.

**How do the funds of this campaign factor into your financial resources? (Are these funds critical to your company operations? Or do you have other funds or capital resources available?)**

The funds from this campaign will be used for hiring, inventory and sales and marketing. We have other capital resources available via possible future shareholder loans or additional equity raises

**Are the funds from this campaign necessary to the viability of the company? (Of the total funds that your company has, how much of that will be made up of funds raised from the crowdfunding campaign?)**

We believe the funds from this campaign are not necessary to the viability of the Company. Of the total funds that our Company has, 50% will be made up of funds raised from the crowdfunding campaign, if it raises its maximum funding goal.

**How long will you be able to operate the company if you raise your minimum? What expenses is this estimate based on?**

If the Company raises the minimum offering amount, we anticipate the Company will be able to operate for one year. This is based on a current monthly burn rate of $10K for expenses related to marketing, salaries and inventory

**How long will you be able to operate the company if you raise your maximum funding goal?**

If the Company raises the maximum offering amount, we anticipate the Company will be able to operate for three years. This is based on a current monthly burn rate of $10K for expenses related to marketing, salaries and inventory

**Are there any additional future sources of capital available to your company? (Required capital contributions, lines of credit, contemplated future capital raises, etc...)**

Currently, the Company has contemplated additional future sources of capital including loans, lines of credit and future capital raises.

## **Indebtedness**

- **Creditor:** David Zion
**Amount Owed:** $75,000.00
**Interest Rate:** 5.0%

**Maturity Date:** December 31, 2023

- **Creditor:** David Welch
  **Amount Owed:** $70,000.00
  **Interest Rate:** 5.0%

- **Creditor:** RevUp
  **Amount Owed:** $650,000.00
  **Interest Rate:** 9.0%
  RevUp is entitled to a revenue share of 6% until they receive 2.2x on investment.

- **Creditor:** CFT Clear Finance
  **Amount Owed:** $69,000.00
  **Interest Rate:** 9.0%
  CFT is currently owed $69,000 under a revenue share agreement whereby the company will pay CFT in connection with sales from their business.

## Related Party Transactions

The Company has not conducted any related party transactions

## Valuation

**Pre-Money Valuation:** $17,040,000.00

### Valuation Details:

To date, as a boot-strapped company, we've been able to hit ~$2M in topline revenue. We're building out a SaaS offering that we anticipate will bring in a significant amount of additional annual recurring revenue within one year based on price-to-sales multiples and our growth rate (*See additional projection related information below*).

Our closest competitors are ReserveBar, a luxury online marketplace for spirits, and SpeakEasy, an e-comm platform for beverage alcohol logistics and shipping. What differentiates us is that we create unique branded products that are unavailable at any of our competitors, especially our ancillary competitors such as Drizly and other online alcohol ordering and delivery services, as well as a marketing SaaS platform and three-tier compliant e-comm activation.

The US online gifting market is worth $131 billion. E-commerce alcoholic beverage sales grew by 43% in 2020 and are expected to increase by 66% between 2022 and 2025 (https://www.beveragedaily.com/Article/2021/12/07/Beverage-alcohol-e-commerce-set-to-grow-66-in-2020-2025).

Based on the addressable market, our historical growth performance, and projections to increase our annual recurring revenue with a year on top of our legacy products with revenue of around $2M, we see a market valuation of $17M.

Please see risk factors for additional information regarding the use of projections.

*This valuation was calculated internally by the Company without the use of any formal third-party independent evaluation*

*The pre-money valuation has been calculated on a fully diluted basis. The Company only has Common Stock authorized. The company has no outstanding options or warrants. In making this calculation, we have not assumed any shares reserved for issuance under a stock plan are issued.*

*The pre-money valuation does not take into account any convertible securities currently outstanding. The Company currently has $1,908,000.00 in SAFE Notes outstanding. Please refer to the Company Securities section of the Offering Memorandum for further details regarding current outstanding convertible securities which may affect your ownership in the future.*

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

## Use of Proceeds

If we raise the Target Offering Amount of $9,998.22 we plan to use these proceeds as follows:

- *StartEngine Platform Fees*
  5.5%
- *Marketing*
  10.0%
  we will invest into digital marketing
- *Company Employment*

40.0%

we will be using funds to hire full time employees in sales and engineering roles

# - • *Inventory*

20.0%

we'll produce new paper goods products and display units.

# - • *Research & Development*

24.5%

we are working on new product lines and samples for bev alc partner projects

If we raise the over allotment amount of $1,234,999.56, we plan to use these proceeds as follows:

# - • *StartEngine Platform Fees*

5.5%

# - • *Marketing*

30.0%

paid digital marketing campaigns, podcast advertising and tv campaigns.

# - • *Company Employment*

40.0%

we will be hiring to bolster our sales and software engineering teams.

# - • *Inventory*

18.5%

we'll be investing into more paper goods inventory and new product lines.

# - • *Research & Development*

6.0%

we'll need to invest into samples and product development for brand partnerships.

The Company may change the intended use of proceeds if our officers believe it is in the best interests of the company.

## Regulatory Information

### Disqualification

No disqualifying event has been recorded in respect to the company or its officers or directors.

### Compliance Failure

The company has not previously failed to comply with the requirements of Regulation Crowdfunding.

## **Ongoing Reporting**

The Company will file a report electronically with the SEC annually and post the report on its website no later than April 29 (120 days after Fiscal Year End). Once posted, the annual report may be found on the Company's website at nipyata.com (https://nipyata.com/pages/investors).

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

(1) it is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;

(2) it has filed at least one (1) annual report pursuant to Regulation Crowdfunding and has fewer than three hundred (300) holders of record and has total assets that do not exceed $10,000,000;

(3) it has filed at least three (3) annual reports pursuant to Regulation Crowdfunding;

(4) it or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or

(5) it liquidates or dissolves its business in accordance with state law.

## **Updates**

Updates on the status of this Offering may be found at: www.startengine.com/nipyata

## **Investing Process**

See Exhibit E to the Offering Statement of which this Offering Memorandum forms a part.

# **EXHIBIT B TO FORM C**

# **FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANT'S REVIEW FOR Nipyata, Inc.**

*[See attached]*

# NIPYATA, INC.

# FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021 AND 2020
(Unaudited)

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Nipyata, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 03-16-2021

**Physical Address:** 308 Catalina Boulevard, San Rafael, CA, 94901

**Issuer Website:** nipyata.com

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

**Intermediary Name:** StartEngine Capital, LLC

**Intermediary CIK:** 0001665160

**Intermediary File Number:** 007-00007

### Offering Information

**Compensation to Intermediary:** Up to 9% percent

**Financial Interest in Issuer:** We charge 3% commission paid in equity or securities at the same rate as this offering.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 4694

**Price per Security:** $2.13

**Method for Determining Price:** N/A

**Target Offering Amount:** $9,998.22

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** At issuer's discretion, with priority given to StartEngine Owners

**Maximum Offering Amount:** $1,234,999.56

**Deadline to Reach Target Amount:** 04-14-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 3

**Total Assets (Most Recent Fiscal Year):** $470,027.00

**Total Assets (Prior Fiscal Year):** $198,486.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $97,573.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $33,831.00

**Accounts Receivable (Most Recent Fiscal Year):** $18,370.00

**Accounts Receivable (Prior Fiscal Year):** $26,717.00

**Short-Term Debt (Most Recent Fiscal Year):** $791,188.00

**Short-Term Debt (Prior Fiscal Year):** $401,183.00

**Long-Term Debt (Most Recent Fiscal Year):** $1,279,700.00

**Long-Term Debt (Prior Fiscal Year):** $115,000.00

**Revenues/Sales (Most Recent Fiscal Year):** $1,899,910.00

**Revenues/Sales (Prior Fiscal Year):** $1,739,147.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $1,214,032.00

**Cost of Goods Sold (Prior Fiscal Year):** $745,323.00

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

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

**Net Income (Most Recent Fiscal Year):** $-1,285,007.00

**Net Income (Prior Fiscal Year):** $-179,038.00

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** Nipyata, Inc.

**Signature:** William Hench

**Title:** CEO, Co-Founder and Director

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**Signature:** William Hench

**Title:** CEO, Co-Founder and Director

**Date:** 01-04-2023

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**Signature:** Dan Cedrone

**Title:** COO, Co-Founder and Director

**Date:** 01-04-2023