# EDGAR Filing Document

**Accession Number:** 0001914565
**File Stem:** 0001670254-23-000182
**Filing Date:** 2023-2
**Character Count:** 228356
**Document Hash:** 5b374228277141cb70005f7a732b6d08
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000182.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001670254-23-000182

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 15

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Swell Financial, Inc.
- **CENTRAL INDEX KEY:** 0001914565
- **IRS NUMBER:** 874027407
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31888
- **FILM NUMBER:** 23677164

**BUSINESS ADDRESS:**
- **STREET 1:** 2101 PEARL STREET
- **CITY:** BOULDER
- **STATE:** CO
- **ZIP:** 80302
- **BUSINESS PHONE:** 213-437-5495

**MAIL ADDRESS:**
- **STREET 1:** 2101 PEARL STREET
- **CITY:** BOULDER
- **STATE:** CO
- **ZIP:** 80302

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Swell Financial, Inc.

Legal status of issuer:

Form: Corporation

Jurisdiction of Incorporation/Organization: DE

Date of organization: 12/16/2021

Physical address of issuer:

2101 Pearl Street

Boulder CO 80302

Website of issuer:

http://www.swellmoney.com

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CIK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the offering, including the amount of referral and any other fees associated with the offering:

5.0% of the offering amount upon a successful

fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:

No

Type of security offered:

☐ Common Stock
☐ Preferred Stock
☐ Debt
☑ Other

If Other, describe the security offered:

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered:

400,000

Price:

$1.00000

Method for determining price:

Pro-rated portion of the total principal value of $400,000; interests will be sold in increments of $1; each investment is convertible to one share of stock as described under Item 13.

Target offering amount:

$400,000.00

Oversubscriptions accepted:

☑ Yes
☐ No

If yes, disclose how oversubscriptions will be allocated:

☐ Pro-rata basis
☐ First-come, first-served basis
☑ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

Maximum offering amount (if different from target offering amount):

$5,000,000.00

Deadline to reach the target offering amount:

3/31/2023

NOTE: If the sum of the investment commitments does not equal or exceed the target offering amount at the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

Current number of employees:

11

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $9,908,025.00 | $0.00 |
| Cash & Cash Equivalents: | $5,682,775.00 | $0.00 |
| Accounts Receivable: | $165,472.00 | $0.00 |
| Short-term Debt: | $0.00 | $0.00 |
| Long-term Debt: | $0.00 | $0.00 |
| Revenues/Sales: | $151,894.00 | $0.00 |
| Cost of Goods Sold: | $287,323.00 | $0.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($4,325,320.00) | $0.00 |

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, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, BS, GU, PR, VI, 1V

## 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:

Swell Financial, Inc.

## COMPANY ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer.

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

INSTRUCTION TO QUESTION 2: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

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 persons occupying a similar status or performing a similar function) of the issuer.

Principal

Main

Year Joined

| Director | Occupation | Employer | as Director |
| --- | --- | --- | --- |
| Kevin Dahlstrom | CEO & President of Swell Financial, Inc. | Swell Financial, Inc. | 2022 |
| Jay Bray | Chairman and CEO | Mr. Cooper Group Inc. (f/k/a Nationstar Mortgage) | 2022 |
| Alex Dunev | Managing Director of Park Cities Advisors, LLC | Park Cities Advisors, LLC | 2022 |
| Chris Lutes | Chief Strategy Officer of Elevate Credit, Inc. | Elevate Credit, Inc. | 2022 |
| Jason Harvison | CEO of Elevate Credit, Inc. | Elevate Credit, Inc. | 2022 |
| Paul Yonamine | CEO and Chairman of Central Pacific Financial Corp. | Central Pacific Bank/Central Pacific Financial Corp | 2022 |

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 |
| --- | --- | --- |
| Kevin Dahlstrom | President | 2022 |
| Kevin Dahlstrom | CEO | 2022 |
| Carrie E. Carbone | Secretary | 2022 |
| Carrie E. Carbone | General Counsel | 2022 |

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

INSTRUCTION TO QUESTION 5: For purposes of this Question 5, the term officer means a president, vice president, secretary, treasurer or principal financial officer, comptroller or principal accounting officer, and any person that routinely 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 |
| --- | --- | --- |
| Alex Dunev and Andy Thomas | 2202000.0 Series A Preferred | 29.39 |
| Elevate Credit, Inc. | 3800000.0 Voting Common and Series A Preferred | 50.72 |

INSTRUCTION TO QUESTION 6: The above information must be provided as of a date that is no 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 or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

# 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 TO QUESTION 7: Wefunder will provide your company's Wefunder profile as an appendix (Appendix A) to the Form C in PDF format. The submission will include all Q&A items and "read more" links in an un-collapsed format. All videos will be transcribed.

This means that any information provided in your Wefunder profile will be provided to the SEC in response to this question. As a result, your company will be potentially 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 Wefunder profile carefully to ensure it provides all material information, is not false or misleading, and does not omit any information that would cause the information included to be false or misleading.

# RISK FACTORS

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

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

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

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

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

The Company has a limited operating history and, thus, prospective investors have limited operating and financial data upon which to base an evaluation of our performance and the investment offered hereby. The Company has limited insight into trends that may emerge and affect our business. The Company's potential future performance must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies in their early stage of development, particularly early stage companies in the financial technology sector.

The Company's mobile application that has only recently launched in a limited market. The products the Company promotes and supports through the Swell mobile application also have recently launched in a limited market. As a result, the Company has limited real-world testing of and customer feedback on our mobile application and the products we promote and support. Accordingly, the Company can give no assurances that our mobile application and the products and services the Company currently supports or may support in the future will be successful in the market or that they will be profitable for the Company.

Some of the products the Company is promoting have not yet been developed or launched. Some or all of these products may not be successfully developed or successfully launched, it at all.

The Company's future growth and profitability depend on the successful marketing to acquire customers and for the customers to use the products promoted on the Swell mobile application. If the Company is not able to successfully acquire customers and get them to use Company promoted and supported products

consistently, then any or all of the Company's business, prospects, results of operations, financial condition and cash flows may be materially harmed.

The Company's business is dependent on the Company's sponsor bank and on key third-party service providers who perform key roles and tasks within the overall Swell program. If any of these business partners do not deliver on their respective products and services to the Company's specifications and requirements, the Company may be unable to provide the Swell mobile application and Company promoted and supported products to customers. If this happens, the Company's ability to continue as a going concern could be jeopardized.

The Swell mobile application and the products the Company supports and promotes using the Swell mobile application rely on many different pieces of software and third-party data resources working together properly. Failure of one of those pieces of software or a key data resource could impact the Swell mobile application and consumer access to the application and their accounts. This would have an adverse impact on the Company's financial performance, which could be material.

The Company's sponsor bank, key third-party service providers, and the Company each operate within and are subject to complex federal, state and local banking and consumer financial services, and consumer protection laws and regulations. Such laws and regulations are subject to evolving regulatory and judicial interpretations, which further complicate real-time compliance. Furthermore, compliance with these laws is costly and time-consuming and can limit operational flexibility. If the Company, the sponsor bank, or key third-party service providers (or any of them) fail to comply with applicable laws, regulations, rules and guidance, the Company's business could be adversely affected and the Company could be subject to fines and other penalties for non-compliance.

The Company's sponsor bank is subject to supervision by the Federal Deposit Insurance Corporation (FDIC) and the Hawaii Department of Financial Institutions. As a service provider to an insured depository institution, the Company is subject to certain oversight and attention from the sponsor bank's federal and state regulators, and the Company also subject to potential enforcement from the Consumer Financial Protection Bureau, the Federal Trade Commission, and the Securities and Exchange Commission. Any of these authorities may take supervisory or enforcement action, as applicable, that could impact the sponsor bank, the products the Company promotes and supports, and

other aspects of the Company's business in a manner that could produce material adverse impacts on the Company and, therefore, your investment.

The Company is highly dependent on our Chief Executive Officer, Mr. Kevin Dahlstrom. Our success also depends on our other executives and key employees. If the Company is not able to attract and retain qualified executives and key employees, or if such executives or employees are temporarily unable to fully contribute to the Company's operations, the Company's business and financial performance also could be materially adversely affected. In addition, the loss of any of the Company's executives or key employees could materially adversely affect the Company's ability to execute the Company's business plan and strategy, and the Company may not be able to find adequate replacements on a timely basis, or at all. Qualified individuals are in high demand, and the Company may incur significant costs to attract and retain them. The Company cannot ensure that the Company will be able retain the services of any of the Company's executives or other key employees. If Mr. Dahlstrom or one or more of the Company's other executives and key employees were no longer providing services to the Company, the Company could suffer materially adverse financial and business consequences.

The Company's business involves the storage and transmission of consumers' proprietary information, and security breaches could expose the Company to a risk of loss or misuse of this information, litigation and potential liability. The success of the Company's business is entirely dependent on the secure operation of the Swell mobile application, the Company's internal systems, and those systems of key third-party service providers and strategic partners, as well as the operation of the internet generally. While the Company has incurred no losses from cyber-attacks or security breaches to date, a number of other companies have disclosed significant cyber-attacks and security breaches, some of which have involved intentional attacks. Attacks may be targeted at the Company, customers, key third-party service providers and strategic partners, or all of them. Although the Company devotes what the Company believes are significant resources to maintain and regularly upgrade the Company's systems and processes that are designed to protect the security of the Swell mobile application as well as the Company's computer systems, software, networks and other technology assets, as well as the confidentiality, integrity and availability of information belonging to the Company and customers, the Company's security measures may not provide absolute security and could be breached. A successful

penetration or circumvention of the security of the Company's systems could cause serious negative consequences, including significant disruption of the Company's operations, misappropriation of confidential information of the Company of customers, or damage to the Company's computers or systems or those of the Company's customers and counterparties, and could result in violations of applicable privacy and other laws, financial loss to the Company or to the Company's customers, loss of confidence in the Company's security measures, customer dissatisfaction, significant litigation exposure, and harm to the Company's reputation, all of which could have a material adverse effect on the Company. Any of these events alone could have a material adverse effect on the Company's business, prospects, results of operations, financial condition or cash flows.

The Company operates in a highly competitive industry and faces competition from a variety of traditional and new financial institutions, including other online lending companies, neo banks, and other financial technology companies. Such competition could adversely affect the Company's business, prospects, results of operations, financial condition and/or cash flows.

Fluctuations in the economy may negatively impact the Company's business operations or ability to raise capital. Rising interest rates, decreased capital deployment, and changes in consumer behavior could all adversely affect the profitability of the Company's business.

Central Pacific Financial Corp. ("CPF") is the parent company of Company's sponsor bank, Central Pacific Bank ("CPB"), and a stockholder of the Company. Elevate Credit, Inc. ("Elevate"), is also a principal stockholder of the Company. Those stockholders and the Company's primary Series A investor, Park Cities Equity Fund II LP ("Park Cities"), have the right to appoint one or more members to serve on the Company's board of directors.

CPB, subsidiaries of Elevate, and the Company are party to strategic agreements with each other in respect of the Swell program. The Company's business is dependent on these strategic relationships with CPB and the Elevate subsidiaries. Representatives of CPF and Elevate would be expected to take positions in connection with these strategic relationships that are in the best interests of CPF/CPB and Elevate, respectively, and not in the best interests of the Company or their best interests as shareholders.

Furthermore, an affiliate of Park Cities is in the process of completing the acquisition of Elevate, pending

shareholder approval. Assuming that transaction is consummated, the individuals identified as the Company's principal shareholders will control (on a fully diluted basis) over 60% of the Company's equity and over 80% of the shareholders' voting power. In light of that change, those two individuals (Alex Dunev and Andy Thomas, as the ultimate principals of Park Cities) will share voting control of the Company's stock and could approve or refuse to approve matters on which shareholders vote to a result that is favorable to them and disfavorable to the other shareholders.

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.

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

*INSTRUCTION TO QUESTION 8: Avoid generalized statements 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 legends set forth above. No specific number of risk factors is required to be identified.*

## The Offering

### USE OF FUNDS

9. What is the purpose of this offering?

The Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which includes the specific items listed in Item 10 below. While the Company expects to use the net proceeds from the Offering in the manner described above, it cannot specify with certainty the particular uses of the net proceeds that it will receive from this Offering. Accordingly, the Company will have broad discretion in using these proceeds.

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

If we raise: $400,000

Use of 5% toward Wefunder fees, 95% for future
Proceeds: customer acquisition (including marketing) and
onboarding expenses

If we raise: $5,000,000

Use of 5% toward Wefunder fees, 50% for future
Proceeds: customer acquisition (including marketing) and
onboarding expenses, 35% towards more rapid
hiring for product development, 10% towards
extending runway

INSTRUCTION TO QUESTION 10: An issuer must provide a reasonably detailed
description of any intended use of proceeds, such that investors are provided with an
adequate amount of information to understand how the offering proceeds will be used.
If an issuer has identified a range of possible uses, the issuer should identify and
describe each probable use and the factors the issuer may consider in allocating
proceeds among the potential uses. If the issuer will accept proceeds in excess of the
target offering amount, the issuer must describe the purpose, method for allocating
oversubscriptions, and intended use of the excess proceeds with similar specificity.
Please include all potential uses of the proceeds of the offering, including any that
may apply only in the case of oversubscriptions. If you do not do so, you may later be
required to amend your Form C. Wefunder is not responsible for any failure by you to
describe a potential use of offering proceeds.

## DELIVERY & CANCELLATIONS

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

Book Entry and Investment in the Co-Issuer. Investors
will make their investments by investing in interests
issued by one or more co-issuers, each of which is a
special purpose vehicle ("SPV"). The SPV will invest all
amounts it receives from investors in securities issued
by the Company. Interests issued to investors by the
SPV will be in book entry form. This means that the
investor will not receive a certificate representing his or
her investment. Each investment will be recorded in the
books and records of the SPV. In addition, investors'
interests in the investments will be recorded in each
investor's "Portfolio" page on the Wefunder platform. All
references in this Form C to an Investor's investment in
the Company (or similar phrases) should be interpreted
to include investments in a SPV.

12. How can an investor cancel an investment commitment?

NOTE: Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials.

The intermediary will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).

If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.

If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

An Investor's right to cancel. An Investor may cancel his or her investment commitment at any time until 48 hours prior to the offering deadline.

If there is a material change to the terms of the offering or the information provided to the Investor about the offering and/or the Company, the Investor will be provided notice of the change and must re-confirm his or her investment commitment within five business days of receipt of the notice. If the Investor does not reconfirm, he or she will receive notifications disclosing that the commitment was cancelled, the reason for the cancellation, and the refund amount that the investor is required to receive. If a material change occurs within five business days of the maximum number of days the offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm.

If the Investor cancels his or her investment commitment during the period when cancellation is permissible, or does not reconfirm a commitment in the case of a material change to the investment, or the offering does not close, all of the Investor's funds will be returned within five business days.

Within five business days of cancellation of an offering by the Company, the Company will give each investor notification of the cancellation, disclose the reason for the cancellation, identify the refund amount the Investor will receive, and refund the Investor's funds.

**The Company's right to cancel.** The Investment Agreement you will execute with us provides the Company the right to cancel for any reason before the offering deadline.

If the sum of the investment commitments from all investors does not equal or exceed the target offering amount at the time of the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered.

To view a copy of the SAFE you will purchase, please see Appendix B, Investor Contracts. The main terms of the SAFEs are provided below.

The SAFEs. We are offering securities in the form of a Simple Agreement for Future Equity ("SAFE"), which provides Investors the right to **preferred stock** in the Company ("**Preferred Stock**"), when and if the Company sponsors an equity offering that involves **Preferred Stock**, on the standard terms offered to other Investors.

*Conversion to Preferred Equity.* Based on our SAFEs, when we engage in an offering of equity interests involving **preferred stock**, **Investors will receive a number of shares of preferred stock** calculated using the method that results in the greater number of **preferred stock**:

i. the total value of the Investor's investment, divided by
  a. the price of **preferred stock** issued to new Investors multiplied by
  b. the **discount rate** (80%), or
ii. if the valuation for the company is more than **$100,000,000.00** (the "Valuation Cap"), the amount invested by the Investor divided by the quotient of
  a. the Valuation Cap divided by
  b. the total amount of the Company's capitalization at that time.

*Additional Terms of the Valuation Cap.* For purposes of option (ii) above, the Company's capitalization calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated on an as-converted to Common Stock basis):

- Includes all shares of Capital Stock issued and

outstanding;

- Includes all Converting Securities;
- Includes all (i) issued and outstanding Options and (ii) Promised Options; and
- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing shall only be included to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

Liquidity Events. If the Company has an initial public offering or is acquired by, merged with, or otherwise taken over by another company or new owners prior to Investors in the SAFEs receiving preferred stock, Investors will receive

- proceeds equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount")

Liquidity Priority. In a Liquidity Event or Dissolution Event, this Safe is intended to operate like standard nonparticipating Preferred Stock. The Investor's right to receive its Cash-Out Amount is:

i. Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Capital Stock);
ii. On par with payments for other Safes and/or Preferred Stock, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Stock, the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Stock in proportion to the full payments that would otherwise be due; and
iii. Senior to payments for Common Stock.

# Securities Issued by the SPV

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by Wefunder Admin, LLC and is a co-issuer with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result

in any additional fees being charged to investors.

The SPV has been organized and will be operated for the sole purpose of directly acquiring, holding and disposing of the Company's securities, will not borrow money and will use all of the proceeds from the sale of its securities solely to purchase a single class of securities of the Company. As a result, an investor investing in the Company through the SPV will have the same relationship to the Company's securities, in terms of number, denomination, type and rights, as if the investor invested directly in the Company.

### **Voting Rights**

If the securities offered by the Company and those offered by the SPV have voting rights, those voting rights may be exercised by the investor or his or her proxy. The applicable proxy is the Lead Investor, if the Proxy (described below) is in effect.

### **Proxy to the Lead Investor**

The SPV securities have voting rights. With respect to those voting rights, the investor and his, her, or its transferees or assignees (collectively, the 'Investor'), through a power of attorney granted by Investor in the Investor Agreement, has appointed or will appoint the Lead Investor as the Investor's true and lawful proxy and attorney (the 'Proxy') with the power to act alone and with full power of substitution, on behalf of the Investor to: (i) vote all securities related to the Company purchased in an offering hosted by Wefunder Portal, and (ii) execute, in connection with such voting power, any instrument or document that the Lead Investor determines is necessary and appropriate in the exercise of his or her authority. Such Proxy will be irrevocable by the Investor unless and until a successor lead investor ('Replacement Lead Investor') takes the place of the Lead Investor. Upon notice that a Replacement Lead Investor has taken the place of the Lead Investor, the Investor will have five (5) calendar days to revoke the Proxy. If the Proxy is not revoked within the 5-day time period, it shall remain in effect.

### **Restriction on Transferability**

The SPV securities are subject to restrictions on transfer, as set forth in the Subscription Agreement and the Limited Liability Company Agreement of Wefunder SPV, LLC, and may not be transferred without the prior approval of the Company, on behalf of the SPV.

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

See the above description of the Proxy to the Lead Investor.

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

Any provision of this Safe may be amended, waived or modified by written consent of the Company and either:

i. the Investor or
ii. the majority-in-interest of all then-outstanding Safes with the same "Post-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii):

A. the Purchase Amount may not be amended, waived or modified in this manner,
B. the consent of the Investor and each holder of such Safes must be solicited (even if not obtained), and
C. such amendment, waiver or modification treats all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

Pursuant to authorization in the Investor Agreement between each Investor and Wefunder Portal, Wefunder Portal is authorized to take the following actions with respect to the investment contract between the Company and an investor:

A. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and
B. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

## RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

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

1. to the issuer;
2. to an accredited investor;
3. as part of an offering registered with the U.S. Securities and Exchange Commission; or
4. 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.

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

The term "member of the family of the purchaser or the equivalent" includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

## DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Series A Preferred | 4000000 | 4000000 | Yes |
| Non-voting Common | 2000000 | 1800000 | No |
| Common | 10200000 | 2900000 | Yes |

| Class of Security | Securities Reserved for Issuance upon Exercise or Conversion |
| --- | --- |
| Warrants: | 0 |
| Options: | 1300000 |

Describe any other rights:

Holders of Series A Preferred Stock have a dividend and liquidation preference. Investors in the SAFE, if converted as part of a qualified financing, will receive preferred stock.

18. How may the rights of the securities being offered be

materially limited, diluted or qualified by the rights of any other class of security identified above?

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 Company's certificate of incorporation 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.

Additional risks related to the rights of other security holders are discussed below, in Question 20.

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

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 6 above affect the purchasers of the securities being offered?

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, if the Company's Board of Directors submits such a matter to the shareholders for a vote, the shareholders may approve a change to the terms of the Certificate of Incorporation of the Company, change the terms of securities issued by the Company, or approve a reverse stock split that would result in minority holders of securities having their interests in the Company as shareholders eliminated. Shareholders may also vote to approve 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 may vote to sell majority control of the Company to a third party without including any Investors.

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 would be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which would also diminish proportionally the Investor's voting and/or economic rights. In addition, as discussed above, if holders of a majority of the Company's voting securities approve of the Company to issuing additional stock, an Investor's ownership interest likewise would be diluted.

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

The 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 SAFE is determined by the investor, and we do not guarantee that the SAFE will be converted into any particular number of shares of

Preferred Stock, if at all.

As discussed in Question 13, when we engage in an offering of equity interests involving Preferred Stock, Investors may receive a number of shares of Preferred Stock calculated as either (i) the total value of the Investor’s investment, divided by the price of the Preferred Stock being issued to new Investors, or (ii) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company’s capitalization at that time.

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 Preferred Stock that Investors will receive, and/or the total value of the Company’s capitalization, will be determined by the Company’s Board of Directors. Among the factors the Board may consider in determining the price of Preferred 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, negotiations with the lead investor in an offering of Preferred Stock and other factors deemed relevant.

In the future, we may perform valuations of our stock (including both common stock and Preferred Stock) 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 securities;

· 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 prevailing market conditions and the nature and history of our business;
- industry trends and competitive environment;
- trends in consumer spending, including consumer confidence;
- overall economic indicators, including 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.

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

An Investor in the Company will hold a minority position in the Company, and, thus, have limited 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. The Investor will have no independent right to name or remove a member of the Board of Directors.

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 growth and success of meeting 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.

23. What are the risks to purchasers associated with corporate actions, including additional issuances of securities, issuer repurchases of securities, a sale of the issuer or of assets of the issuer or transactions with related parties?

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 growth and success meeting 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, increase 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 if obligated or given the opportunity to have its securities repurchased.

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

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 the Company may encounter potential conflicts of interest in its management 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 has engaged and may in the future 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. Potential conflicts of interest with shareholders and other related parties are further discussed in the Risk Factors section.

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

None.

*INSTRUCTION TO QUESTION 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 | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 12/2021 | Section 4(a)(2) | Common stock | $70 | General operations |
| 1/2022 | Section 4(a)(2) |  | $1,833,333 | General operations |
| 1/2022 | Section 4(a)(2) |  | $1,500,000 | General operations |
| 2/2022 | Section 4(a)(2) | Preferred stock | $10,000,000 | 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

For each transaction specify the person, relationship to issuer, nature of interest in transaction, and amount of interest.

| Name | Kevin Dahlstrom |
| --- | --- |
| Amount Invested | $70.00 |
| Transaction type | Priced round |
| Issue date | 12/15/21 |
| Relationship | CEO, President and Director |

*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 (2) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same calculation described in Question 6 of this Question and Answer format.*

*The term “member of the family” includes any child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes adoptive relationships. The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.*

*Compute 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 state 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

We're building a new financial app built for Strivers - the millions of working Americans who want to build wealth.

### Milestones

Swell Financial, Inc. was incorporated in the State of Delaware in December 2021.

Since then, we have:

- Raised $10 million in capital from investors and strategic partners
- A new financial app built for Strivers - millions of working Americans who want to build wealth
- A $1 trillion consumer banking market and an underserved consumer segment
- A leadership team with decades of experience in financial services & a track record of prior success
- Built a community of nearly 4,000 Strivers
- Unique opportunity to be both an investor and a customer
- Swell's founder and executive team are personally investing in this financing

### Historical Results of Operations

Our company was organized in December 2021 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, and the six months ending June 30, 2022 the Company had revenues of $0 and $0 respectively.

- *Assets*. As of December 31, 2021, the Company had total assets of $0, including $0 in cash. As of June 30, 2022, the Company had total assets of $11,805,532, including $7,899,286 in cash.

- *Net Income*. The Company had net income of $0 for the period ended December 31, 2021, and $(1,656,840) for the six months ending June 30, 2022.

- *Liabilities*. The Company’s liabilities totaled $0 as of December 31, 2021 and $124,441 as of June 30, 2022.

## Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

## Liquidity & Capital Resources

To-date, the company has been financed with $10,000,070 in equity and $3,333,333 in intellectual property.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 13 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 10 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

Swell Financial, Inc. cash in hand is $5,682,775, as of December 2022. Over the last three months, revenues

December 2022. Over the last three months, revenues have averaged $39,661/month, cost of goods sold has averaged $95,774/month, and operational expenses have averaged $488,854/month, for an average burn rate of $544,967 per month. Our intent is to be profitable in 27 months.

We are launching the Swell Cash and Swell Credit products to non-friends/family customers and are initiating a direct mail marketing campaign in late February/early March of 2023. The product launch will produce revenue for Swell but also expenses in the form of marketing and other customer acquisition costs. Cash burn for operating expenses is expected to remain stable.

We are expecting approximately $400 thousand in revenues from January 2023 to June 2023, and we estimate expense for cost of sales of $625 thousand and operating expenses of $2.7 million over the same period.

Swell is not yet profitable as of 12.31.22. We expect to be profitable by Q2 2025. With the launch of Swell Cash and Swell Credit to the marketplace beginning in February 2023, by June 2023 we will start receiving product usage data and associated revenue/expense details that will support more accurate financial forecasting. We will use that data to fine tune our current forecast estimates and hope to move profitability into Q3 2024.

We did a capital raise of $10 million in February 2022 and as of 12.31.22 we have cash on hand of approximately $5.7 million, which will more than cover expenses through the campaign and after.

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

*INSTRUCTIONS TO QUESTION 28: 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 milestones 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. Take into account the proceeds of the offering and any other known or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether receiving these funds and any other additional funds is necessary to the viability of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital to the business, such as lines of credit or required contributions by shareholders. References to the issuer in this Question 28 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

I, Kevin Dahlstrom, certify that:

(1) the financial statements of Swell Financial, Inc. included in this Form are true and complete in all material respects ; and
(2) the financial information of Swell Financial, Inc. included in this Form reflects accurately the information reported on the tax return for Swell Financial, Inc. filed for the most recently completed fiscal year.

Kevin Dahlstrom

CEO & President of Swell Financial, Inc.

# STAKEHOLDER ELIGIBILITY

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

(1) Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:

i. in connection with the purchase or sale of any security?
☐ Yes ☑ No

ii. involving the making of any false filing with the Commission? ☐ Yes ☑ No

iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering

statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

i. in connection with the purchase or sale of any security?
☐ Yes ☑ No
ii. involving the making of any false filing with the Commission? ☐ Yes ☑ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(3) Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:

i. at the time of the filing of this offering statement bars the person from:
A. association with an entity regulated by such commission, authority, agency or officer?
☐ Yes ☑ No
B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No
C. engaging in savings association or credit union activities? ☐ Yes ☑ No
ii. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☑ No
ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No
iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

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

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No

ii. Section 5 of the Securities Act? ☐ Yes ☑ No

(6) Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?

☐ Yes ☑ No

(7) Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

☐ Yes ☑ No

**If you would have answered “Yes” to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.**

*INSTRUCTIONS TO QUESTION 30: Final order means a written directive or declaratory statement issued by a federal or state agency, described in Rule 503(a)(3) of Regulation Crowdfunding, under applicable statutory authority that provides for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.*

*No matters are required to be disclosed with respect to events relating to any affiliated issuer that occurred before the affiliation arose if the affiliated entity is not (i) in control of the issuer or (ii) under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.*

## 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.

The Lead Investor. As described above, each Investor that has entered into the Investor Agreement will grant a power of attorney to make voting decisions on behalf of that Investor to the Lead Investor (the “Proxy”). The Proxy is irrevocable unless and until a Successor Lead Investor takes the place of the Lead Investor, in which case, the Investor has a five (5) calendar day period to revoke the Proxy. Pursuant to the Proxy, the Lead Investor or his or her successor will make voting decisions and take any other actions in connection with the voting on Investors’ behalf.

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

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

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

Although the Lead Investor may act in multiple roles with respect to the Company’s offerings and may potentially be compensated for some of its services, the Lead Investor’s goal is to maximize the value of the

Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of Investors. It is, however, possible that in some limited circumstances the Lead Investor's interests could diverge from the interests of Investors, as discussed in section 8 above.

Investors that wish to purchase securities related to the Company through Wefunder Portal must agree to give the Proxy described above to the Lead Investor, provided that if the Lead Investor is replaced, the Investor will have a 5-day period during which he or she may revoke the Proxy. If the Proxy is not revoked during this 5-day period, it will remain in effect.

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

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 portable 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 video, audio 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.swellmoney.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 15(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 Section 4(a)(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 B: Investor Contracts

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Alex Dunev

Carrie E. Carbone

Chris Lutes

Jason Harvison

Jay Bray

Kevin Dahlstrom

Paul Yonamine

Appendix E: Supporting Documents

ttw_communications_102700_225056.pdf

# 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

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Alex Dunev

Carrie E. Carbone

Chris Lutes

Jason Harvison

Jay Bray

Kevin Dahlstrom

Paul Yonamine

Appendix E: Supporting Documents

ttw_communications_102700_225056.pdf

*Pursuant to the requirements of Sections 4(a)(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 Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.*

Swell Financial, Inc.

By

# Kevin Dahlstrom

Founder & CEO

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

# Jason Harvison

Director
2/24/2023

# Christopher Lutes

Director
2/24/2023

# Alexander Dunev

Investor
2/24/2023

# Kevin Dahlstrom

Founder & CEO
2/24/2023

The Form C 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 Form C 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 Form C 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

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`

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

# INVEST IN SWELL FINANCIAL

# Let's Make Bank Together!

LEAD INVESTOR

Jason Harvison

Having spent 20+ in the financial technology space, I believe Swell represents a vast opportunity to serve the growing population of working Americans that are overlooked by traditional banks. I am excited to be a part of the Swell story as both a Board member and an investor. I have previously had the chance to work alongside Kevin and many other Swell team members - and I can attest firsthand to their ability to innovate and execute. Swell represents a full platform of new and promising ways for everyday Americans to take control of their finances and take control of their money.

Invested $5,000 this round

swellmoney.com

Boulder CO

Technology

Fintech & Finance

B2C

Highlights

1 Raised $10 million in capital from investors and strategic partners
2 A new financial app built for Strivers - millions of working Americans who want to build wealth
3 A $1 trillion consumer banking market and an underserved consumer segment
4 A leadership team with decades of experience in financial services & a track record of prior success
5 Built a community of nearly 4,000 Strivers
6 Unique opportunity to be both an investor and a customer
7 Swell's founder and executive team are personally investing in this financing

## Our Team

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

**Kevin Dahlstrom** Founder & CEO

Proven entrepreneur with 17 years in financial services. Founder/early exec in multiple companies & CMO for 2 public companies. Acquired over 1M customers in previous ventures. Personal finance & investing influencer with 30k+ twitter followers.

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

**Ryan LaMountain** Chief Technology and Product Officer

Over 10 years of experience in financial services leading product, technology and design teams at Central Pacific Bank, BOK Financial, Mr. Cooper Group Inc., and Elevate Credit, Inc.

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

**Carrie E. Carbone** General Counsel, Chief Compliance Officer

Experienced attorney with a broad-based corporate background and a clientele that primarily includes non-bank financial services companies, financial institutions, and closely-held corporations. Combines business acumen, pragmatism and a deep understanding of

the law with pride in being part of a passionate, focused team of Strivers. Let's Make Bank Together!

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

Tyler Staebell Chief Operating Officer

Accomplished leader with experience growing and scaling businesses (from 1bn to startup). Diverse background in Finance and Operations working at Technology & Payment Processing companies. Results-driven with a passion for Finance and Technology.

## Pitch

*Update: Watch Swell's Webcast for Wefunder Investors. Watch now.

It's no secret that banking is broken for most Americans. Wealthy customers get access to the best loans, investments, & services, while regular, hard-working customers are ignored.

Last year the Big Four banks recorded record profits of nearly $124 billion, but 98% of people we surveyed said that their banks do nothing to get them ahead financially.(1)

You give your bank your hard-earned money... but what does your bank do to help YOU get ahead?

98%

of people surveyed say their bank doesn't help

# them get ahead.

Swell was founded to bring the best of banking - the smartest money moves - to everyone.(2) The Swell app is based on 3 simple, time-tested wealth-building principles:

1. Spend less than you make
2. Minimize debt (except for your home)
3. Own assets that grow in value (compound) over time

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

Swell is built for Strivers BY Strivers. We’ve already built a growing community of nearly 4,000 Strivers-working Americans who want to build wealth and make the same money moves as the rich.(3)

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

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

Every member of our team is part of the Swell community.

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

Our tagline is, “Let’s Make Bank Together” and we mean it, both literally (we’re building something to replace traditional banks) and figuratively (we’re focused

on making money and building wealth together).

## The Swell App

Like traditional bank accounts, the Swell Cash bank account is FDIC insured through Swell’s sponsor bank, Central Pacific Bank (CPB has over $7 billion in assets and its parent company, Central Pacific Financial Corp., is publicly traded - NYSE:CPF).(4)

But Swell isn’t a bank-we do things differently and start with our customers’ needs. The Swell app is an integrated financial app with products designed to work together:

| Swell Cash • Get your paycheck up to 2 days early 5 • No hidden fees, no overdraft charges 6 • More great features coming soon | Swell Credit • Access extra cash instantly with 1-click • Can replace your higher rate credit card balances | Swell Compound • Access to exclusive real estate investments • Start with as little as $1,000 |
| --- | --- | --- |

Swell Credit can provide a better option for the 25 million consumers who are credit-constrained or pay a higher rate on their credit cards.(7)

Swell Compound is designed to help consumers build wealth by offering access to private market real estate deals-investments that normally require a $100,000+ minimum investment-with as little as $1,000.(8)

And Swell Cash ties everything together, helping consumers control spend and more.

The Swell app is live in app stores but we're rolling Swell Cash and Swell Credit by invitation only until the official public launch in 2022.(9)

Investors in Swell will get early access plus special perks (coming soon 😊).

## The Swell Leadership Team

Consumer banking is a trillion dollar industry with plenty of opportunities for new competitors. But it's a difficult industry to disrupt, because it's complicated and highly regulated. Swell's executive team and Board of Directors has decades of experience in consumer financial services and proven track records. Many of Swell's executive leaders and board members have worked together previously to build successful companies in financial services.

Our Founder, Kevin Dahlstrom, is a serial entrepreneur and personal finance influencer with 17 years experience across both startups & multi-billion public companies.

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

## Why Invest in Swell?

Community is at the core of Swell. We are building Swell with our community of

Strivers and we encourage every customer to be an owner, whether they invest $500 or $100,000. Why? Because owners will be our best customers-and together can influence Swell’s future as a company.

Swell is reimagining banking and turning traditional banking on its head and in previous ventures the Swell Executive Team and Board of Directors have successfully acquired over 1 million customers using the same marketing tactics Swell will utilize.

**Swell moves fast** - since the company was formed less than a year ago, we have:

- Hired one of the best teams in the industry
- Signed strategic partnerships that create a competitive advantage
- Built a Founding Member community of nearly 4,000 Strivers.
- Raised $10 million from strategic partners - including the parent company of Swell’s bank sponsor, Central Pacific Bank
- Developed the Swell App and launched Swell Cash and Swell Credit(4)
- Ran a successful pilot for Swell Compound(8)

**Swell puts its money where its mouth is:**

**Swell’s executive team is investing in Swell.**

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

1. (1) Combined 2021 net income as reported by Citigroup, J.P. Morgan Chase, Wells Fargo, and Bank of America. Swell Community survey from October 2021 with over 700 respondents.
2. (2) Swell Financial, Inc. is a technology company, not a bank. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance.
3. (3) Photos of Swell Community members are used with permission but do not constitute an endorsement of this offering by any such member.
4. (4) Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to \$250,000 per depositor.
5. (5) Early paycheck depends on the timing of the submission of the payment file from the payer.
6. (6) See swellmoney.com/fee-schedule for the latest fee schedule.  
   Automated overdraft functionality likely will not be available until January 1, 2023.  
   Credit approval and availability on your Swell Credit line required.
7. (7) Based on research data provided by Transunion as of 5/31/2019. Total credit limit, may include multiple credit cards (does not include retail cards).
8. (8) Swell Compound will not be available until 2023. Investments made available via Swell Compound are not FDIC-insured and are not sponsored by or offered by Central Pacific Bank or any other insured depository institution.
9. (9) Swell Cash and Swell Credit are not available in all states. Visit swellmoney.com/qualifications for more details. Investors will be eligible to apply for Swell Cash and Swell Credit if they reside in an eligible state.

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

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED IN THIS SAFE AND UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

Swell Financial, Inc.

# **SAFE**
(Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [INVESTOR NAME] (the "Investor") of [INVESTMENT AMOUNT] (the "Purchase Amount") on or about [EFFECTIVE DATE], Swell Financial, Inc., a Delaware corporation (the "Company"), hereby issues to the Investor the right to certain shares of the Company's capital stock, subject to the terms described below.

This Safe is one of the forms available at http://ycombinator.com/documents and the Company and the Investor agree that neither one has modified the form, except to fill in blanks and bracketed terms, and remove the requirement to be accredited investor.

The "Post-Money Valuation Cap" is $100,000,000

The "Discount Rate" is 60%

See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing before the termination of this Safe, on the initial closing of such Equity Financing, this Safe will automatically convert into the number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Conversion Price.

In connection with the automatic conversion of this Safe into shares of Safe Preferred Stock, the Investor will execute and deliver to the Company all of the transaction documents related to the Equity Financing, provided, that such documents (i) are the same documents to be entered into with the purchasers of Standard Preferred Stock, with appropriate variations for the Safe Preferred Stock if applicable, and (ii) have customary exceptions to any drag-along applicable to the Investor, including (without limitation) limited representations, warranties, liability and indemnification obligations for the Investor.

(b) Liquidity Event. If there is a Liquidity Event before the termination of this Safe, this Safe will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds, due and payable to the Investor immediately prior to, or concurrent with, the consummation of such Liquidity Event, equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount"). If any of the Company's securityholders are given a choice as to the form and amount of Proceeds to be received in a Liquidity Event, the Investor will be given the same choice, provided that the Investor may not choose to receive a form of consideration that the Investor would be ineligible to receive as a result of the Investor's failure to satisfy any requirement or limitation generally applicable to the Company's securityholders, or under any applicable laws.

Notwithstanding the foregoing, in connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce the cash portion of Proceeds payable to the Investor by the amount determined by its board of directors in good faith for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, provided that such reduction (A) does not reduce the total Proceeds payable to such Investor and (B) is applied in the same manner and on a pro rata basis to all securityholders who have equal priority to the Investor under Section 1(d).

In connection with Section 1(b)(i), the Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event. If there are not enough funds to pay (i) holders of shares of any series of Preferred Stock issued before the date of this instrument ("Senior Preferred Holders") and (ii) 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 (i) first to the Senior Preferred Holders and (ii) second 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 the Board 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 the termination of this Safe, the Investor will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds equal to the Cash-Out Amount, due and payable to the Investor immediately prior to the consummation of the Dissolution Event.

(d) Liquidation Priority. In a Liquidity Event or Dissolution Event, this Safe is intended to operate like standard non-participating Preferred Stock. The Investor's right to receive its Cash-Out Amount is:

(i) Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Capital Stock);

(ii) On par with payments for other Safes and/or Preferred Stock, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Stock, the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Stock in proportion to the full payments that would otherwise be due; and

(iii) Senior to payments for Common Stock.

The Investor's right to receive its Conversion Amount is (A) on par with payments for Common Stock and other Safes and/or Preferred Stock who are also receiving Conversion Amounts or Proceeds on a similar as-converted to Common Stock basis, and (B) junior to payments described in clauses (i) and (ii) above (in the latter case, to the extent such payments are Cash-Out Amounts or similar liquidation preferences).

(e) Termination. This Safe will automatically terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this Safe) immediately following the earliest to occur of: (i) the issuance of Capital Stock to the Investor pursuant to the automatic conversion of this Safe under Section 1(a); or (ii) the payment, or settling aside for payment, of amounts due the Investor pursuant to Section 1(b) or Section 1(c).

2. Definitions

"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" is calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated on an as-converted to Common Stock basis):

- Includes all shares of Capital Stock issued and outstanding;
- Includes all Converting Securities;
- Includes all (i) issued and outstanding Options and (ii) Promised Options; and
- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing shall only be included to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

"Conversion Price" means either: (1) the Safe Price or (2) the Discount Price, whichever calculation results in a greater number of shares of Safe Preferred Stock.

"Converting Securities" includes this Safe and other convertible securities issued by the Company, including but not limited to: (i) other Safes; (ii) convertible promissory notes and other convertible debt instruments; and (iii) convertible securities that have the right to convert into shares of Capital Stock.

"Direct Listing" means the Company's initial listing of its Common Stock (other than shares of Common Stock not eligible for resale under Rule 144 under the Securities Act) on a national securities exchange by means of an effective registration statement on Form S-1 filed by the Company with the SEC that registers shares of existing capital stock of the Company for resale, as approved by the Company's board of directors. For the avoidance of doubt, a Direct Listing shall not be deemed to be an underwritten offering and shall not involve any underwriting services.

"Discount Price" means the price per shares of the Standard Preferred Stock sold in the Equity Financing multiplied by the Discount Rate.

"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.

"Dividend Amount" means, with respect to any date on which the Company pays a dividend on its outstanding Common Stock, the amount of such dividend that is paid per share of Common Stock multiplied by (x) the Purchase Amount divided by (y) the Liquidity Price (treating the dividend date as a Liquidity Event solely for purposes of calculating such Liquidity Price).

"Equity Financing" means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed valuation, including but not limited to, a pre-money or post-money valuation.

"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" is calculated as of immediately prior to the Liquidity Event, and (without double-counting, in each case calculated on an as-converted to Common Stock basis):

- Includes all shares of Capital Stock issued and outstanding;
- Includes all (i) issued and outstanding Options and (ii) to the extent receiving Proceeds, Promised Options;
- Includes all Converting Securities, other than any Safes and other convertible securities (including without limitation shares of Preferred Stock) where the holders of such securities are receiving Cash-Out Amounts or similar liquidation preference payments in lieu of Conversion Amounts or similar "as-converted" payments; and
- Excludes the Unissued Option Pool.

"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.

"Options" includes options, restricted stock awards or purchases, RSUs, SARs, warrants or similar securities, vested or unvested.

"Proceeds" means cash and other assets (including without limitation stock consideration) that are proceeds from the Liquidity Event or the Dissolution Event, as applicable, and legally available for distribution.

"Promised Options" means promised but ungranted Options that are the greater of those (i) promised

pursuant to agreements or understandings made prior to the execution of, or in connection with, the term sheet or letter of intent for the Equity Financing or Liquidity Event, as applicable (or the initial closing of the Equity Financing or consummation of the Liquidity Event, if there is no term sheet or letter of intent), (ii) in the case of an Equity Financing, treated as outstanding Options in the calculation of the Standard Preferred Share's price per share, or (iii) in the case of a Liquidity Event, treated as outstanding Options in the calculation of the distribution of the Proceeds.

'Safe' means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company's business operations. References to 'this Safe' mean this specific instrument.

'Safe Preferred Stock' means the shares of the series of Preferred Stock issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the shares of Standard Preferred Stock, other than with respect to: (i) the per share liquidation preference and the initial conversion price for purposes of price-based anti-dilution protection, which will equal the Conversion Price; and (ii) the basis for any dividend rights, which will be based on the Conversion Price.

'Safe Price' means the price per share equal to the Post-Money Valuation Cap divided by the Company Capitalization.

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

'Unissued Option Pool' means all shares of Capital Stock that are reserved, available for future grant and not subject to any outstanding Options or Promised Options (but in the case of a Liquidity Event, only to the extent Proceeds are payable on such Promised Options) under any equity incentive or similar Company plan.

### 3. Company Representations

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of its state of corporation (the 'Company'), hereby issues to the Investor the right to certain incorporation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

(b) The execution, delivery and performance by the Company of this Safe is within the power of the Company and has been duly authorized by all necessary actions on the part of the Company (subject to section 3(d)). This Safe constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its current certificate of incorporation of bylaws, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this Safe do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No consents or approvals are required in connection with the performance of this Safe, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Capital Stock issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

### 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this Safe and to perform its obligations hereunder. This Safe constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) The Investor has been advised that this Safe and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this Safe and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

### 5. Miscellaneous

(a) Any provision of this Safe may be amended, waived or modified by written consent of the Company and either (i) the Investor or (ii) the majority-in-interest of all then-outstanding Safes with the same 'Post-Money Valuation Cap' and 'Discount Rate' as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii): (A) the Purchase Amount may not be amended, waived or modified in this manner; (B) the consent of the Investor and each holder of such Safes must be solicited (even if not obtained); and (C) such amendment, waiver or modification treats all such holders in the same manner. 'Majority-in-interest' refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

(b) Any notice required or permitted by this Safe will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on their Wefunder account, or 48 hours after being deposited

in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on their Wefunder account, as subsequently modified by written notice.

(c) The Investor is not entitled, as a holder of this Safe, to vote or be deemed a holder of Capital Stock for any purpose other than tax purposes, nor will anything in this Safe be construed to confer on the Investor, as such, any rights of a Company stockholder or rights to vote for the election of directors or on any matter submitted to Company stockholders, or to give or withhold consent to any corporate action or to receive notice of meetings, until shares have been issued on the terms described in Section 1. However, if the Company pays a dividend on outstanding shares of Common Stock (that is not payable in shares of Common Stock) while this Safe is outstanding, the Company will pay the Dividend Amount to the Investor at the same time.

(d) Neither this Safe nor the rights in this Safe are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other; provided, however, that this Safe and/or its rights may be assigned without the Company's consent by the Investor (i) to the Investor's estate, heirs, executors, administrators, guardians and/or successors in the event of Investor's death or disability, or (ii) to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor; and provided, further, that the Company may assign this Safe in whole, without the consent of the Investor, in connection with a reincorporation to change the Company's domicile.

(e) In the event any one or more of the provisions of this Safe is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Safe operate or would prospectively operate to invalidate this Safe, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this Safe and the remaining provisions of this Safe will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.

(f) All rights and obligations hereunder will be governed by the laws of the State of Delaware, without regard to the conflicts of law provisions of such jurisdiction.

(g) The parties acknowledge and agree that for United States federal and state income tax purposes this Safe is, and at all times has been, intended to be characterized as stock, and more particularly as common stock for purposes of Sections 304, 305, 306, 354, 368, 1036 and 1202 of the Internal Revenue Code of 1986, as amended. Accordingly, the parties agree to treat this Safe consistent with the foregoing intent for all United States federal and state income tax purposes (including, without limitation, on their respective tax returns or other informational statements).

*(Signature page follows)*

IN WITNESS WHEREOF, the undersigned have caused this instrument to be duly executed and delivered.

**COMPANY:**

Swell Financial, Inc.

By: *Founder Signature*

Name:

Title:

**INVESTOR:**

[INVESTOR NAME]

By: *Investor Signature*

Name: [INVESTOR NAME]

Title:

☐ Accredited Investor
☐ Unaccredited Investor

**Read and Approved (for IRA use only)**

By:

Name:

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

# Swell I (THE "SPV"),

a series of Wefunder SPV, LLC, a Delaware limited

liability company (the "LLC")

# Subscription Agreement

[INVESTMENT AMOUNT]

[INVESTMENT DATE]

Swell I (the "SPV"), a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by Swell Financial, Inc. (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

I have reviewed the following information and documents in connection with this Subscription Agreement:

1. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that none of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC, nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
2. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
3. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
4. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
5. The LLC Agreement, which sets forth other terms applicable to each SPV;
6. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
7. The Wefunder Investor Agreement; and
8. The Wefunder Terms of Service.

By making an investment in the SPV through the Wefunder website, I agree to be bound by this Subscription Agreement and the terms of the other agreements listed above with respect to my investment in the SPV.

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

A. This agreement ("Agreement") applies to each investment in a series ("SPV") of Wefunder SPV, LLC (the "LLC"). Each series is a separate pool of assets from every other series. Each SPV will invest all of its assets in securities issued by a single company ("Company") as set forth in the applicable series appendix ("Series Appendix") to the Wefunder SPV, LLC limited liability company agreement (LLC Agreement). The terms of the Company securities to be purchased by the SPV are summarized in an appendix ("Terms Appendix") attached to this Agreement.
B. Each SPV is formed by and operated by Wefunder Admin, LLC on behalf of the Company in whose securities that SPV invests.
C. Important information about the Company, about the related SPV, and more generally about investments through the Wefunder website, is available through the Wefunder website. The Investor should review that information, and all relevant Company Information (as defined below), carefully before making an investment in any SPV.
D. Each SPV will offer membership interests ("Interests") in that SPV pursuant to Regulation Crowdfunding under the U.S. Securities Act of 1933, as amended (the "Securities Act").
E. You hereby agree that each time you make an investment in any SPV, you will be deemed to have entered into this Agreement, and will be deemed to have made each representation and covenant contained in this Agreement.
F. Except as the context otherwise requires, any reference in this Subscription Agreement to:

1. a "SPV" shall mean "The LLC acting solely on behalf of and for the account of the SPV";
2. "Investor" and "you" shall mean a person (whether individually, jointly with another person, or through his or her individual retirement account) who has agreed to invest, or has invested, in any SPV; and
3. "Company Information" means:

a. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC (together, the "Wefunder entities," nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
b. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
c. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
d. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
e. The LLC Agreement, which sets forth other terms applicable to each SPV;
f. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
g. The Wefunder Investor Agreement; and
h. The Wefunder Terms of Service.

INVESTOR'S REPRESENTATIONS AND COVENANTS

# 1. Investor's Review of Information and Investment Decision

1.1. The Investor has carefully read and understands the Company Information. The Investor acknowledges that it has made an independent decision to invest indirectly in the Company through the SPV and that, in making its decision to invest in a SPV, the Investor has relied solely upon the Company Information, any other relevant information on the Wefunder website, and independent investigations made by the Investor. The Investor understands that no representations or warranties have been made to the Investor by the LLC, the relevant SPV, any administrator appointed from time to time with respect to the SPV (the "Administrator"), any lead investor appointed from time to time with respect to the SPV (the "Lead Investor"), or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them regarding the Company.

1.2. The Investor has been provided an opportunity to request additional information concerning the Company and the offering through the Ask A Question feature on wefunder.com.

1.3. The Investor understands and agrees that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC, any of their affiliates, nor any director, manager, officer, shareholder, member, employee or agent of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or any of their affiliates (each, a "Wefunder Party," and collectively, "Wefunder Parties") shall be liable in connection with any information or omission of information contained in materials prepared or supplied by the Company. Such materials may include, but are not limited to, information provided by the Company in the Form C related to the offering, information available through the Wefunder website, and materials distributed to the Investor by the SPV on behalf of a Company.

1.4. The Investor represents and agrees that no Wefunder Party has recommended or suggested any investment in a SPV, or any investment related to a Company, to the Investor.

1.5. Investor understands that no Wefunder Party is an adviser to Investor, and that Investor is not an advisory or other client of any Wefunder Party.

1.6. The Investor is not relying on any Wefunder Party or any other person or entity with respect to the legal, accounting, business, investment, pension, tax or other economic considerations involved in this investment other than the Investor's own advisers that are not affiliated with any of the foregoing persons.

1.7. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of the Investor's investment in the SPV and is able to bear such risks. The Investor has obtained, in the Investor's judgment, sufficient information to evaluate the merits and risks of such investment. The Investor has evaluated the risks of investing in the SPV, understands there are substantial risks of loss incidental to the purchase of an Interest and has determined that the Interest is a suitable investment for the Investor and consistent with the general investment objectives of the Investor.

# 2. Investor's Representations Related To Investment in a SPV.

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.
2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.
2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.
2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action take upon any notice, consent, request, instructions or other instrument believed in good faith to be genuine or to be signed by properly authorized persons of the Investor.
2.5. Pursuant to the requirements of Treas. Reg. § 301.6109-1(c), the Investor has provided, or agrees to provide upon the earlier of (i) two years of an acquisition of an Interest or (ii) twenty (20) days before any distribution is to be made from the SPV, his, her or its taxpayer identification number (e.g., social security number or employer identification number) under penalties of perjury and has or will attest that the Internal Revenue Service has not notified the Investor that he, she or it is subject to backup withholding.

# 3. The Manager Has The Right To Reject Any Subscription, In Whole Or In Part.

3.1. The Investor understands that the SPV will not register as an investment company under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), nor will it make a public offering of its securities within the United States.
3.2. The Investor understands that the value of all investments in any SPV made through individual retirement accounts ("IRAs") must be less than \(25\%\) of the value of the SPV's assets.

3.3. If the Investor is investing in a SPV through an employee benefit plan of any kind, including an individual retirement account (the "Plan"), and an individual or entity (the "Fiduciary") has entered into this Agreement on behalf of the Plan, the Fiduciary hereby makes the following representations, warranties, and covenants:

i. The Fiduciary is a fiduciary of the Plan who is authorized to invest Plan assets or is acting at the direction of a Plan fiduciary authorized to invest Plan assets. The Fiduciary has determined that an investment in the Fund is consistent with the Fiduciary's responsibilities to the Plan under Employee Retirement Income Security Act of 1974, as amended ("ERISA") or other applicable law, and is qualified to make such investment decision. The Fiduciary is authorized to make all representations, covenants and agreements set forth in this Agreement about and on behalf of the Investor, and the Fiduciary hereby agrees that, except for the representations, covenants and agreements contained in this section 3.3, all representations, covenants and agreements contained in this Agreement are made on behalf of the Investor who is investing through the Plan.

ii. The execution and delivery of this Subscription Agreement, and the investment contemplated hereby has been duly authorized by all appropriate and necessary parties pursuant to the provisions of the instrument or instruments governing the Plan and any related trust; and (B) will not violate, and is not otherwise inconsistent with, the terms of such instrument or instruments.

iii. The Fiduciary acknowledges that the assets of the Fund will be invested in accordance with the Company Information related to that Fund.

iv. The Plan's purchase and holding of an Interest will not constitute a non-exempt transaction prohibited under ERISA, Section 4975 of the Internal Revenue Code (the "Code"), or any similar laws or other federal, state, local, foreign or other laws or regulations applicable to the Plan and its investments. None of the Wefunder entities nor any of their affiliates, agents, or employees: (A) exercises any authority or control with respect to the management or disposition of assets of the Plan used to purchase an Interest; (B) renders investment advice for a fee (pursuant to an agreement or understanding that such advice will serve as a primary basis for investment decisions and that such advice will be based on the particular investment needs of the Plan), with respect to such assets of the Plan, or has the authority to do so, or (C) is an employer maintaining or contributing to, or any of whose employees are covered by, the Plan.

v. The Fiduciary understands and agrees to the fee arrangements described in the Company Information.

vi. The Fiduciary understands and agrees that, to prevent the assets of the SPV from being treated as "plan assets" for purposes of ERISA and Section 4975 of the Code, the Investor may be prohibited from purchasing or acquiring an Interest or may be required to redeem its Interest or a portion thereof.

3.4. The Investor acknowledges that the SPV and any Administrator, on the SPV's behalf, may not accept any investment from an Investor if the Investor cannot truthfully make the representations contained herein.

4. The Correctness And Accuracy Of All Information Provided By Investor To The LLC Or The SPV.

4.1. The Investor confirms that all information and documentation provided to the LLC, the SPV, and any Administrator, including, but not limited to, all information regarding the Investor's identity, taxpayer identification number, the source of the funds to be invested in the SPV, and the Investor's eligibility to invest in offerings under Regulation Crowdfunding, is true, correct and complete. Should any such information change or no longer be accurate, the Investor agrees and covenants that they will promptly notify the Wefunder Parties of such changes via the wefunder.com platform. The Investor agrees and covenants that he, she or it will maintain accurate and up-to-date contact information (including email and mailing address) on the wefunder.com platform and will promptly update such information in the event it changes or is no longer accurate.

4.2. The representations, warranties, agreements, undertakings and acknowledgments made by the Investor in this Subscription Agreement will be relied upon by the LLC, the SPV, and any Administrator in determining the Fund's compliance with federal and state securities laws, and shall survive the Investor's admission as a Member of the SPV.

4.3. All information that the Investor has provided to the LLC, the SPV, and any Administrator concerning the knowledge and experience of financial, tax and business matters of the Investor is correct and complete.

# 5. The Wefunder Parties' Right To Use Investor Information.

5.1. The Investor agrees and consents to the Wefunder Parties, their delegates and their duly authorized agents and any of their respective related, associated or affiliated companies obtaining, holding, using, disclosing and processing the Investor's data:

a. to facilitate the acceptance, management and administration of the Investor's subscription for an Interest on an on-going basis;
b. for any other specific purposes where the Investor has given specific consent to do so;
c. to carry out statistical analysis, market research, and tracking of investment performance over time;
d. to comply with legal or regulatory requirements applicable to the SPV and any Administrator or the Investor, including, but not limited to, in connection with anti-money laundering and similar laws;
e. for disclosure or transfer to third parties including the Investor's financial adviser (where appropriate), regulatory bodies, auditors, technology providers or to the SPV, any Administrator, any Lead Investor, and their delegates or their duly appointed agents and any of their respective related, associated or affiliated companies for the purposes specified above;
1. If the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;
g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.
5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.
5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.
6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

# 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.

7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").

7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.

7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.

7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.

7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.

7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

# 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.

8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.

8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.

8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

# 9. Miscellaneous Provisions

# 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. Limitation of Liability. The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "Delaware Act"). Accordingly, the Investor hereby agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. **Counsel** The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. **Power of Attorney** The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

# 9.5. Confidentiality

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an Interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").

9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.

9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. Amendments. Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. Assignability and Transferability. This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. **Repurchase.** In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ('Exchange Act'), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. **Governing Law.** Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. **Severability.** If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. **Headings.** The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. **General.** This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

*[Remainder of page intentionally left blank. Signature page follows.]*

The undersigned have executed this instrument as of the date first above written.

SPV

Swell I, as series of Wefunder SPV, LLC
By: Wefunder Admin, LLC, its Manager

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Swell Financial, Inc. SECURITIES BY Swell I, A SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

Type of Security: Future Equity

Terms $100M valuation cap and 20% discount

To view a copy of the contract, please see Appendix B, Investor Contracts of the Form C. The latest Form C or C/A filing be found here: https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-TYPE%3DC%2FA+or+FORM-TYPE%3DC%29+and+CIK%3D0001914565&first=2016

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

# Swell Financial, Inc.

Financial Statements

June 30, 2022 and December 31, 2021

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

4401 Dominion Boulevard
Glen Allen, Virginia 23060
Tel: 804.747.0000
www.keitercpa.com

# **SWELL FINANCIAL, INC.**

# Table of Contents

|  | Page |
| --- | --- |
| Independent Auditor's Report | 1 |
| Financial Statements: |  |
| Balance Sheets | 3 |
| Statements of Operations | 4 |
| Statements of Changes in Stockholders' Equity | 5 |
| Statements of Cash Flows | 6 |
| Notes to Financial Statements | 7 |

Keiter
Your Opportunity Advisors

# INDEPENDENT AUDITOR'S REPORT

To the Stockholders
Swell Financial, Inc.
Boulder, Colorado

# Opinion

We have audited the accompanying financial statements of Swell Financial, Inc. (the "Company"), which comprise the balance sheets as of June 30, 2022 and December 31, 2021, and the related statements of operations, changes in stockholders' equity, and cash flows for the periods from January 1, 2022 to June 30, 2022, and December 16, 2021 (inception) to December 31, 2021 and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Swell Financial, Inc. as of June 30, 2022 and December 31, 2021 and the results of its operations, stockholders' equity, and its cash flows for the periods from January 1, 2022 to June 30, 2022 and December 16, 2021 (inception) to December 31, 2021 in accordance with accounting principles generally accepted in the United States.

# Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

# Responsibilities of Management 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, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Certified Public
Accountants & Consultants
4401 Dominion Boulevard
Glen Allen, VA 23060
T:804.747.0000 F:804.747.3632

www.keitercpa.com

## Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audits.

February 2, 2023
Glen Allen, Virginia

# **SWELL FINANCIAL, INC.**

# Balance Sheets  
June 30, 2022 and December 31, 2021

| Assets | 2022 | 2021 |
| --- | --- | --- |
| Current assets: |  |  |
| Cash and cash equivalents | $7,899,286 | $ - |
| Prepaid expenses and other current assets | 194,031 | - |
| Total current assets | 8,093,317 | - |
| Capitalized software | 3,685,501 | - |
| Property and equipment - net | 21,449 | - |
| Other assets | 5,265 | - |
| Total assets | $11,805,532 | $ - |
| Liabilities and Stockholders' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $27,167 | $ - |
| Accrued expenses | 97,274 | - |
| Total current liabilities | 124,441 | - |
| Stockholders' equity: |  |  |
| Common stock; $0.0001 par value; 12,200,000 shares authorized; 4,700,000 shares issued and outstanding as of June 30, 2022 | 470 | - |
| Preferred stock; $0.0001 par value; 4,000,000 shares authorized, issued and outstanding as of June 30, 2022 | 400 | - |
| Additional paid-in capital | 13,337,061 | - |
| Accumulated deficit | (1,656,840) | - |
| Total stockholders' equity | 11,681,091 | - |
| Total liabilities and stockholders' equity | $11,805,532 | $ - |

See accompanying notes to financial statements.

3

# **SWELL FINANCIAL, INC.**

Statements of Operations
For the periods from January 1, 2022 to June 30, 2022
and from December 16, 2021 (inception) to December 31, 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Revenue | $ - | $ - |
| Operating expenses | 1,667,579 | - |
| Operating loss | (1,667,579) | - |
| Other income: |  |  |
| Interest income | 10,739 | - |
| Net loss | $(1,656,840) | $ - |

See accompanying notes to financial statements.

4

# **SWELL FINANCIAL, INC.**

Statements of Changes in Stockholders' Equity  
 For the periods from January 1, 2022 to June 30, 2022  
 and from December 16, 2021 (inception) to December 31, 2021

|  | Common Stock | Preferred Stock | Additional Paid- in Capital | Accumulated Deficit | Total |
| --- | --- | --- | --- | --- | --- |
| Balance, December 16, 2021 | $ - | $ - | $ - | $ - | $ - |
| Net loss | - | - | - | - | - |
| Balance, December 31, 2021 | - | - | - | - | - |
| Issuance of common stock | 470 | - | 3,332,863 | - | 3,333,333 |
| Issuance of preferred stock | - | 400 | 9,999,600 | - | 10,000,000 |
| Stock compensation | - | - | 4,598 | - | 4,598 |
| Net loss | - | - | - | (1,656,840) | (1,656,840) |
| Balance, June 30, 2022 | $470 | $400 | $13,337,061 | $(1,656,840) | $11,681,091 |

See accompanying notes to financial statements.

5

# **SWELL FINANCIAL, INC.**

# Statements of Cash Flows  
 For the periods from January 1, 2022 to June 30, 2022  
 and from December 16, 2021 (inception) to December 31, 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Cash flows from operating activities: |  |  |
| Net loss | $(1,656,840) | $ - |
| Adjustments to reconcile net loss to net cash from operating activities: |  |  |
| Depreciation | 1,470 | - |
| Stock compensation | 4,598 | - |
| Change in operating assets and liabilities: |  |  |
| Prepaid expenses and other current assets | (194,031) | - |
| Other assets | (5,265) | - |
| Accounts payable | 27,167 | - |
| Accrued expenses | 97,274 | - |
| Net cash used in operating activities | (1,725,627) | - |
| Cash flows from investing activities: |  |  |
| Payments for development of software | (352,168) | - |
| Purchases of property and equipment | (22,919) | - |
| Net cash used in operating activities | (375,087) | - |
| Cash flows provided by financing activities: |  |  |
| Proceeds from issuance of preferred stock | 10,000,000 | - |
| Net change in cash | 7,899,286 | - |
| Cash, beginning of period | - | - |
| Cash, end of period | $7,899,286 | $ - |
| Supplemental disclosure of non-cash financing transactions: |  |  |
| Capitalized software acquired through the issuance of common stock | $3,333,333 | $ - |

See accompanying notes to financial statements.

6

## SWELL FINANCIAL, INC.

### Notes to Financial Statements

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

**Nature of Business:** Swell Financial, Inc. (the “Company”) was incorporated on December 16, 2021 in the State of Delaware and is headquartered in Boulder Colorado. Swell Financial, Inc. is a financial technology company that owns and operates the SwellMoney.com Website and the Swell Mobile App. Through its website and mobile application, the Company provides information about and delivers products and services promoted or supported by the Company and offered by the banks, lenders, investment companies, and other third-party providers with whom the Company works (with such parties and their respective service providers and vendors being referred to herein together as the “Providers”). The products that the Company supports, and the Providers to whom the Company provides services, are subject to many federal and state consumer protection and other laws and regulations. The Company did not begin operations until 2022.

**Management’s Plans:** The Company’s plan for the remainder of 2022 is to use the equity on hand to finish developing and then to launch its first two products into market. Those products are Swell Cash, a bank deposit account, and Swell Credit, a consumer line of credit. Swell’s products use a sponsor bank to provide the banking and line of credit services. Once launched into the market, The Company plans to market to customers to begin to build a customer base and recurring revenue. For 2023, the Company plans to improve its products by adding features and to evaluate launching new products in the platform to support customer and revenue growth. The company believes the execution of its strategic plan will enable it to continue for a reasonable period of time.

**Basis of Accounting:** The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).

**Use of Estimates:** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

**Concentrations and Credit Risk:** Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains its cash in various financial institutions with balances that periodically exceed federally insured limits.

**Software Development Costs:** The Company follows the guidance set forth in ASC 350-40 Intangibles-Goodwill and Other: Internal-Use Software in accounting for the development of its platform. In accordance with the guidance, development costs incurred during the application development stage are capitalized as incurred. As of June 30, 2022, the Company had $352,168 of gross capitalized software development costs. The Company has not begun amortization of the capitalized software as it has not yet been placed into service. During 2022, the Company also acquired externally developed software totaling $3,333,333 through the issuance of common stock.

7

## SWELL FINANCIAL, INC.

### Notes to Financial Statements, Continued

#### 1. Summary of Significant Accounting Policies, Continued:

**Property and Equipment:** Property and equipment are stated at cost. Major repairs and betterments are capitalized and normal maintenance and repairs are charged to expense as incurred. Depreciation of property and equipment is computed using the straight-line method based upon the estimated useful lives of related assets, which is five years. Upon retirement or sale of an asset, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in operations. Property and equipment consisted of $22,919 in computer equipment. Accumulated depreciation and depreciation expense was $1,470 as of and for the period ended June 30, 2022.

**Advertising Costs:** The Company expenses advertising costs as incurred. Advertising and promotional costs was $101,800 for the period from January 1, 2022 to June 30, 2022.

**Income Taxes:** Deferred income taxes are provided on temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax basis. Deferred tax assets are recognized for temporary differences that will be deductible in future years' tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years' tax returns. As the Company has not yet completed a taxable year, no provision for income taxes or estimated net operating loss carryforwards are included in these financial statements.

**Income Tax Uncertainties:** The Company follows FASB guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are 'more-likely-than-not' of being sustained 'when challenged' or 'when examined' by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense and liability in the current year. Management evaluated the Company's tax positions and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. The Company is not currently under audit by any tax jurisdiction.

**Stock-Based Compensation:** The Company follows FASB guidance, related to stock-based payments, which requires that stock-based compensation transactions be accounted for using a fair-value based method and recognized as expense in the statement of operations. Stock-based compensation is recognized and amortized to compensation expense over the applicable service or vesting period.

**Subsequent Events:** Management has evaluated subsequent events through February 2, 2023, the date the financial statements were available for issuance, and has determined there are no subsequent events to be reported in the accompanying financial statements.

8

# **SWELL FINANCIAL, INC.**

# Notes to Financial Statements, Continued

# **2. Stockholders' Equity:**

Pursuant to the Company's amended articles of incorporation, the Company is authorized to issue 16,200,000 shares of stock, consisting of 12,200,000 shares of common stock, $0.0001 par value per share and 4,000,000 shares of preferred stock, $0.0001 par value per share. The Company has issued and outstanding 4,700,000 shares of common stock and 4,000,000 shares of preferred stock at June 30, 2022. Common stock is split into voting and non-voting shares. Holders of each series of preferred stock are entitled to vote together with the holders of common stock as a single class. The voting, dividend, and liquidation rights of the holders of the common stock are subject to and qualified by the rights, powers and preferences of the holders of the preferred stock.

# **3. Stock Option Plan:**

The Company has granted options to certain employees and non-employees pursuant to the terms of its 2022 Equity Incentive Plan. Under this plan, the maximum number of shares available to be granted are 1,300,000 shares of common stock. Options vest 25% after their first-year anniversary and then ratably over a period of 36 months thereafter. The term of the Equity Incentive Plan is ten years.

The Company follows FASB guidance, related to stock -based payments, which requires that stock -based compensation transactions be accounted for using a fair-value-based method and recognized as expenses in the statement of operations. The Company uses the Black-Scholes pricing model to value options.

A summary of the Company's stock options outstanding at June 30, 2022 and changes during the period then ended, is presented below:

|  | Exercise price per share |  |  |
| --- | --- | --- | --- |
|  | Number of Options | Range of Exercise Price | Weighted Average |
| Outstanding, January 1, 2022 | - | $ - | $ - |
| Granted | 592,500 | $0.80 | $0.80 |
| Outstanding, June 30, 2022 | 592,500 | $0.80 | $0.80 |

As of June 30, 2022, there were 707,500 shares available for future issuance.

9

# **SWELL FINANCIAL, INC.**

# Notes to Financial Statements, Continued

# **3. Stock Option Plan, Continued:**

The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2022:

| Range of Exercise Prices | Options Outstanding at June 30, 2022 |  |  | Options Exercisable at June 30, 2022 |  |
| --- | --- | --- | --- | --- | --- |
|  | Shares | Remaining Contractual Life (years) | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price |
| $0.80 | 592,500 | 9.90 | $0.80 | - | $ - |

The of each option was estimated as of the grant date using the Black-Scholes pricing model. The assumptions used in calculating the estimated fair value of stock options granted during the period from January 1, 2022 to June 30, 2022 is as follows:

| Stock price | $0.80 |
| --- | --- |
| Expected life of options (in years) | 2.5 |
| Exercise price | $0.80 |
| Expected stock price volatility | 75.00% |
| Discount rate - bond equivalent yield | 2.75% |

The Company recognized stock compensation expense of $4,598 during the period from January 1, 2022 to June 30, 2022. Unrecognized stock compensation expense totaling $216,126 is expected to be recognized ratably through 2026.

# **4. Membership Agreement:**

The Company has a membership agreement for co-working space that expires in June 2023. Under the agreement, the Company pays a monthly fee of $7,000 for office space and other ancillary services. The Company records this fee to rent expense which totaled $44,232 for the period from January 1, 2022 to June 30, 2022. Under the agreement, the Company will pay $42,000 from July 1, 2022 through December 31, 2022 and $42,000 from January 1, 2023 through June 30, 2023.

# **5. Retirement Plan:**

The Company sponsors a savings and retirement plan qualifies under Section 401(k) of the Internal Revenue Code. The plan is available to all full time employees upon beginning employment with the Company. The Company matches up to 4% of employee contributions. The Company's expenses under this plan were $27,267 for the period from January 1, 2022 to June 30, 2022.

10

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

Contact

www.linkedin.com/in/alex-dunev
(LinkedIn)

Top Skills

Corporate Finance
Mergers
Capital Markets

# Alex Dunev

Co-Founder and Managing Partner of Park Cities Asset Management
Westport, Connecticut, United States

## Summary

Managing Partner of Park Cities Asset Management, an alternative credit manager focused on deploying capital across sectors through direct lending transactions.

## Experience

Swell

Chairman

November 2022 - Present (4 months)

Boulder, Colorado, United States

Park Cities Asset Management

Co-Founder and Managing Partner

January 2018 - Present (5 years 2 months)

Dallas, Texas

Focus on providing flexible capital solutions across the cap stack to companies in the fintech and specialty finance sectors.

Redpoint Capital Group

Managing Partner

May 2017 - Present (5 years 10 months)

Dallas, TX/ Westport, CT

Managing Partner of Redpoint Capital Group, an alternative lender focused on deploying capital into the Specialty Finance and FinTech sectors.

UBS

Managing Director

August 2013 - May 2017 (3 years 10 months)

New York, New York, United States

US Head of Specialty Finance Investment Banking

Tegris LLC

Senior Vice President

Page 1 of 2

December 2011 - August 2013 (1 year 9 months)

New York, NY

Morgan Stanley

Vice President - Investment Banking

July 2009 - December 2011 (2 years 6 months)

Credit Suisse Securities

Associate

June 2006 - July 2009 (3 years 2 months)

TRG

Associate

May 2005 - June 2006 (1 year 2 months)

## Education

Boston College Carroll School of Management

MBA, Finance · (2003 - 2005)

Boston College

BS, Finance · (1996 - 2000)

Page 2 of 2

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

Contact

www.linkedin.com/in/carrie-e-carbone-17442a4 (LinkedIn)
www.thinkfinance.com (Company)

Top Skills

Banking Law
Corporate Law
Consumer Lending

# Carrie E. Carbone

General Counsel and Chief Compliance Officer for Swell Financial, Inc.

Bluffton, South Carolina, United States

## Summary

Carrie E. Carbone is an experienced attorney with a broad-based corporate background and a clientele that primarily includes non-bank financial services companies, financial institutions, and closely-held corporations. Ms. Carbone combines business acumen, pragmatism and a deep understanding of the law with the desire to work on a team that is focused on succeeding while doing things the right way.

## Experience

Swell

General Counsel and Chief Compliance Officer

January 2022 - Present (1 year 2 months)

Boulder, Colorado and Bluffton, South Carolina

Let's Make Bank Together!

As a senior executive team member, Carrie collaborates with other executives and the Swell Board of Directors in establishing and executing corporate and product strategies and objectives. As the head of the Compliance and Legal functions for Swell, she manages the day-to-day operations of the company's legal, compliance and human resources functions, including, specifically, designing and implementing the company's compliance management program, supporting the development and execution of the Swell Program (including the Swell Cash and Swell Credit products), overseeing the vendor management process, and contributing to the company's overall enterprise risk management function, among other legal, compliance, and business activities.

TMX Finance Family of Companies

7 years 2 months

Chief Compliance and Corporate Counsel

November 2021 - January 2022 (3 months)

Savannah, Georgia, United States

Page 1 of 4

As a senior executive team member, collaborates with other executives in establishing and executing compliance, corporate, product, and government relations strategies and objectives. As the head of the recently reorganized Compliance Department, which includes the Compliance, Government Relations and Licensing/Corporate Governance teams, Carrie manages day-to-day department functions with the support of an outstanding team of compliance, GR, and licensing professionals. In addition to executive and department head responsibilities, Ms. Carbone has a particular focus on product development, broader consumer finance compliance matters (including the compliance management program), corporate activities and transactions, government affairs, the consumer finance industry regulatory landscape, and broader risk management functions.

#### Chief Legal Officer

January 2016 - November 2021 (5 years 11 months)

Savannah, Georgia

As a senior executive team member, collaborates with other executives in establishing and executing corporate and product strategies and objectives. As the head of the combined Legal, Compliance, Bankruptcy and Government Relations Department, manages day-to-day department functions with the support of an outstanding team of legal, compliance, bankruptcy and GR leaders. In addition to executive and department head responsibilities, Ms. Carbone has a particular focus on product development, broader consumer finance compliance matters (including the compliance management program), corporate activities and transactions, government affairs, the consumer finance industry regulatory landscape, and broader risk management functions.

#### SVP of Compliance and General Counsel

June 2015 - January 2016 (8 months)

Savannah, Georgia

#### SVP of Compliance and Product General Counsel

December 2014 - June 2015 (7 months)

Savannah, Georgia

#### Think Finance

3 years 1 month

#### General Counsel

May 2014 - November 2014 (7 months)

Fort Worth, Texas

Page 2 of 4

Carrie E. Carbone joined Think Finance in 2011 as Associate General Counsel. As General Counsel, Carrie is now responsible for corporate matters and overseeing the day-to-day operations of the company's third-party lender services operations, as well as supporting government affairs and compliance efforts.

# Associate General Counsel

November 2011 - April 2014 (2 years 6 months)

Fort Worth, Texas

As Associate General Counsel for Think Finance, Ms. Carbone is responsible for overseeing the day-to-day operations of the company's consumer loan programs and third-party lender services, with a particular focus on compliance with federal and state consumer lending and consumer protection laws. She also assists in corporate matters for Think Finance and coordinates with outside counsel on corporate and other matters. Ms. Carbone is admitted to practice law in Texas, Ohio and Massachusetts.

# Bracewell LLP

Senior Bank Regulatory and Financial Institutions Counsel

June 2006 - November 2011 (5 years 6 months)

Dallas, Texas

In her role as senior counsel in the firm's financial institutions practice, Carrie Carbone advises and assists financial institution clients primarily in the areas of mergers and acquisitions and bank regulatory matters. She represents clients in their dealings with regulators, examiners and agencies and works closely with institutions on negotiating and complying with formal and informal enforcement actions. In recent years, Ms. Carbone also has assisted clients in matters related to the Department of Treasury's Small Business Lending Fund (SBLF) and Capital Purchase Program (CPP) under the Troubled Asset Relief Program (TARP), including related executive compensation issues. Ms. Carbone also counsels clients on capital raising and securities-related matters, principally for privately-held companies.

Ms. Carbone's work also covers the spectrum of issues related to the day-to-day operations of financial institutions and their compliance with the complex mix of state and federal regulations that govern them. This includes general issues such as lending limits, insider loans and affiliate transactions, applications for branches and other expansions of activities. Her work also includes matters related to overdraft protection, sweep account disclosures and other consumer-related rules and regulations, as well as back-office operational matters and related contracts. Ms. Carbone has had many years

Page 3 of 4

of experience advising clients on consumer lending programs involving credit services organizations. She also advises and assists financial institutions and consumer finance companies in Truth-in-Lending, Fair Credit Reporting and state licensing and other consumer lending compliance matters.

Chernesky, Heyman & Kress P.L.L.

Associate

August 2003 - June 2006 (2 years 11 months)

Dayton, Ohio, United States

Craig and Macauley Professional Corporation

Associate

September 1999 - June 2002 (2 years 10 months)

Boston, Massachusetts, United States

SEI

Summer Intern

1992 - 1994 (2 years)

Wayne, Pennsylvania, United States

## Education

The Ohio State University Fisher College of Business

B.S.B.A., Marketing · (1992 - 1996)

Boston University School of Law

J.D., Law · (1996 - 1999)

The Ohio State University

B.S., Psychology · (1992 - 1996)

Bellbrook High School

· (1988 - 1992)

Page 4 of 4

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

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

# Chris Lutes

## Chief Strategy Officer

Chris Lutes brings over two decades of finance experience to Elevate. Prior to Elevate, Chris was the CFO for Silicon Valley Bank, a $4 billion commercial bank focused on venture capital-backed technology and life sciences companies. Additionally, Chris has served as CFO for several companies in the technology and financial services sectors.

His career began at Coopers & Lybrand after graduating from Arizona State University with a degree in Accounting. Chris is a die-hard sports fan and ASU season ticket holder.

**Attachment 9:** `document_9.pdf`

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

## Jason Harvison

President and Chief Executive Officer

Jason has been with Elevate since 2003. He has held various senior roles prior to his appointment as COO in 2014. In 2019, he was named CEO. In this role, Jason is focused on operational and financial performance -- including the development and implementation of the firm's strategic priorities. He also oversees Elevate products, customer acquisition and servicing activities. Prior to joining Elevate, Jason managed a $225 million loan portfolio and generated more than $400 million in new loans for Guaranty Bank, a $2 billion consumer and commercial bank.

Jason graduated from Texas A&M University with a degree in Finance. In his free time, Jason is an avid fly fisherman and bleeds maroon.

**Attachment 10:** `document_10.pdf`

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

Jay Bray

Chairman & Chief Executive Officer

Jay Bray serves as the Chairman and Chief Executive Officer of Mr. Cooper Group. Jay has also served in various leadership roles at Nationstar since joining the company in 2000.

Jay has more than 25 years of experience in the mortgage servicing and originations industry. From 1988 to 1994, he worked with Arthur Andersen in Atlanta, Georgia, where he served as an audit manager from 1992 to 1994. From 1994 to 2000, Jay held a variety of leadership roles at Bank of America and predecessor entities, where he managed the asset backed securitization process for mortgage-related products, developed and implemented a secondary execution strategy and profitability plan and managed investment banking relationships, secondary marketing operations and investor relations. Additionally, Jay led the portfolio acquisition, pricing and modeling group at Bank of America.

He holds a B.A.A. in Accounting from Auburn University and is a Certified Public Accountant in the State of Georgia.

**Attachment 11:** `document_11.pdf`

Contact

www.linkedin.com/in/kevind
(LinkedIn)
camp4.wordpress.com (Blog)

Top Skills

Product Management
Marketing Strategy
Direct Marketing

# Kevin Dahlstrom

Founder & CEO, Swell
Boulder, Colorado, United States

## Summary

Senior marketing executive. Experience from startup through public company.

Specialties: Internet, consumer financial services, software, direct marketing, new business ventures, venture capital, marketing strategy, product strategy

## Experience

Swell
Founder & CEO
January 2021 - Present (2 years 2 months)
Boulder, CO

Central Pacific Bank
Chief Marketing Officer
January 2020 - December 2021 (2 years)
Honolulu, HI and Boulder, CO

Mr. Cooper
Chief Marketing Officer
August 2014 - January 2020 (5 years 6 months)
Dallas/Fort Worth Area

Mr. Cooper is the consumer brand for Nationstar Holdings (NYSE: NSM) the largest non-bank residential mortgage services company. We are on a mission to keep the dream of home ownership alive. Learn more at MrCooper.com

Elevate
Chief Marketing Officer
June 2005 - August 2014 (9 years 3 months)
Fort Worth, Texas

Elevate's innovative online credit solutions provide immediate relief to customers today and help them build a brighter financial future. Our products are more responsible and transparent and cost less than the alternatives

Page 1 of 3

available to the millions of consumers not well served by traditional credit providers. Elevate is committed to rewarding borrowers' good financial behavior with features like lower interest rates, free financial training, and free credit monitoring.

Metallect Corp.

VP Marketing

June 2002 - May 2005 (3 years)

Metallect provides a breakthrough enterprise search technology for IT organizations.

Farstar

Founder & Chairman

June 2002 - February 2005 (2 years 9 months)

Farstar provides technology and services to increase the effectiveness of direct marketing programs. Farstar's flagship product, the Lead Machine, automates highly personalized, multi-step campaigns that combine multiple media channels. Farstar builds and operates lead machines for some of the world's leading companies including Intel, Oracle, Sprint, and Nokia.

Learn more at www.FarstarMarketing.com

Claria Corporation

VP Product Strategy

November 2000 - January 2002 (1 year 3 months)

Claria Corporation is the leader in online behavioral marketing, serving over 38 million consumers and more than 900 Advertisers -- including over 80 Fortune 1000 companies.

Page 2 of 3

iChoose
Founder and President
1998 - 2000 (2 years)

# Education

The University of Texas at Austin
BSME (Cum Laude), Mechanical Engineering · (1989 - 1994)

Page 3 of 3

**Attachment 12:** `document_12.pdf`

Contact

www.linkedin.com/in/paul-yonamine-3586bb20 (LinkedIn)
blogs.wsj.com/japanrealtime/2015/01/06/son-of-baseball-legend-yonamine-named-ibm-japan-chief/ (Company)
www.hec.org/about-true/
(Personal)
youtu.be/YzVBcP_733g (Personal)

Top Skills

CPA
Management Consulting
Business Strategy

Languages

Japanese

Certifications

Certified Public Accountant (CPA)

Honors-Awards

CEO of the Year
Legacy Award
Bridge Award

# Paul Yonamine

Chairman Emeritus of Central Pacific Bank and Central Pacific Financial Corporation
Honolulu, Hawaii, United States

# Summary

# Experience

Central Pacific Bank
4 years 5 months

Chairman Emeritus and Board Member of Central Pacific Financial Corp. and Central Pacific Bank
December 2022 - Present (3 months)

Chairman & CEO of Central Pacific Financial Corp. and Executive Chairman of Central Pacific Bank
October 2018 - December 2022 (4 years 3 months)
Honolulu, Hawaii

Sumitomo Mitsui Banking Corporation
Member Board Of Directors
April 2019 - Present (3 years 11 months)
Tokyo, Japan

7-Eleven
Member Board Of Directors
May 2022 - Present (10 months)
Tokyo, Japan
7&i Holdings Co., Ltd., Japan

サークレイス株式会社 (circlace Inc.)
Member Board Of Directors
December 2020 - Present (2 years 3 months)
Tokyo, Japan
SaaS implementation consulting services

GCA
Chairman, GCA Corporation, Japan

Page 1 of 3

January 2017 - February 2019 (2 years 2 months)

Tokyo, Japan

Acquired by Houlihan Lokey

IBM

Country General Manager and President, IBM Japan, Ltd.

April 2010 - March 2017 (7 years)

Tokyo, Japan

HITACHI Consulting Co.,Ltd.

President and CEO

April 2006 - March 2010 (4 years)

Founder of new consulting company for Hitachi, Ltd.

City and County of Honolulu

Senior Advisor to the Mayor

October 2004 - March 2006 (1 year 6 months)

Led City-wide reengineering project for the Mayor of Honolulu, Hawaii.

BearingPoint

Executive Vice President & Chairman, Asia Pacific

April 1999 - September 2004 (5 years 6 months)

Started KPMG Consulting in Asia Pacific which was subsequently rebranded to

BearingPoint.

KPMG US

Managing Partner

April 1992 - March 2000 (8 years)

Sold ICMG to KPMG.

Partner-in-Charge of The National US Japanese Practice Consulting for KPMG and

Managing Partner of Honolulu

ICMG, INC.

President and Owner

April 1987 - March 1992 (5 years)

Accounting and financial advisory services, real estate development, wind turbine power generation projects and technology advisory services - all involving US and Japanese organizations

Page 2 of 3

Sanki America Corporation

Executive Vice President

May 1983 - March 1987 (3 years 11 months)

Import/export of machine tools and electronic products between Japan and the US

KPMG US

Manager, Japanese Practice

May 1979 - April 1983 (4 years)

Los Angeles

Peat Marwick Mitchell & Co. (KPMG) - Audits, management consulting and acquisitions advisory for Japanese subsidiaries in the U.S.

## Education

University of San Francisco

BS, Accounting · (1975 - 1979)

St. Mary's International School in Japan

· (1964 - 1975)

Page 3 of 3

**Attachment 13:** `document_13.pdf`

Kevin Dahlstrom

Swell

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

Swell Founding Member:

I have some exciting news!

In a recent survey, over 600 Swell Founding Members said that they'd like to invest in Swell (the company itself) and become both a customer and an investor. It's a great way to live our tagline: Let's Make Bank Together!

I'm happy to announce that the Swell Board of Directors has approved our plan so you can just do that! **As a Swell Founding Member, you get early access.**

Swell is partnering with Wefunder, a leading crowdfunding platform, to give individual investors (both accredited and non-accredited) the opportunity to be among the first to invest. To learn more and consider investing, visit Swell's Wefunder Page.

Learn More & Invest

As a Swell Founding member, you can invest before the opportunity is available to the public on the Wefunder platform. Whether you invest $500 (the minimum) or $100,000, I invite you to invest alongside me and the rest of the Swell executive team.

For more details and to make your investment, visit Swell's Wefunder page. We created a short video you might enjoy watching (some of you are featured in it). Again, this opportunity to invest in Swell is available to everyone - you don't need to be an accredited investor to participate.

Let's Make Bank Together!

Kevin 👍

1. Based on a Swell Community survey from August 2022 with over 700 respondents.
2. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://www.wefunder.com/wh/2022/08/08/low-in-wefunder-commercial
3. The investment in Swell is through an instrument called a Simple Agreement for Future Equity (SAFE). To learn more about SAFE's visit: https://wefunder.com/wh/2022/08/08/safe-131 or https://www.wefunder.com/wh/2022/08/08/contract

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depository. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debt cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680
Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

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Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Here's your opportunity to invest in Swell!

Swell Founding Member:

The response to our crowdfunding campaign has been fantastic! In just a few days the Swell Community has invested over $200,000. We're doing this crowdfund to give Founding Members like you the opportunity to be both an investor and customer and we're honored to see so many of you take advantage of that opportunity.

Remember, this opportunity is available to everyone-whether you're accredited or unaccredited. Visit Swell's Wefunder page to learn more and invest.1

A couple of important updates (including Swell swag for anyone who invests):

# We're pitching Swell to you - LIVE!

We'll be doing a live webcast next Tuesday, October 18 at 5pm MT. I'll be talking about Swell's vision and our CTO, Ryan LaMountain, will give a demo of the Swell app and a sneak peek at future features. Don't miss it!

Sign Up for Our Webcast

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

# All investors will get Swell swag!

Many of you have asked if investors get Swell swag. The answer is... of course! Everyone who invests will get a Swell beanie hat (just in time for winter) and sticker pack.

Anyone who invests $5,000 or more also gets a sweet Swell hoodie.

Whether you invest $500 (the minimum) or $100,000, I invite you to invest alongside me and the rest of the Swell executive team and become part of the Swell journey.

Let's Make Bank Together!

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://help.wefunder.com/payment/294969-how-is-wefunder-commercialized.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680
Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

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Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Here's your opportunity to invest in Swell!

Swell Founding Member:

Here's your last chance to invest in Swell before it's available to the public.

Visit Swell's Wefunder page to learn more and invest.1

As a Swell Founding Member you get early access to invest in Swell through Wefunder before the campaign opens to the public on October 19.

# REMINDER: We're pitching Swell to you - LIVE!

We'll be doing a live webcast next Tuesday, October 18 at 5pm MT. I'll be talking about Swell's vision and our CTO, Ryan LaMountain, will give a demo of the Swell app and a sneak peek at future features. Don't miss it!

Sign Up for Our Webcast

I hope you join me on Swell's journey by becoming both a Swell investor and customer!

Let's Make Bank Together!

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://www.wefunder.com/apartment/294969-how-is-wefunder-compensated.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680
Call Swell Member Services at 1-800-806-5220.

©2022 Swell Financial Inc. All Rights Reserved.

Accessibility Terms of Use Privacy
Unsubscribe Marvete Preferences

Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Here's your opportunity to invest in Swell!

Hi Swell Founding Member,

As a Swell Founding Member, you get early access to invest in Swell through Wefunder before the campaign opens to the public on October 19.

Visit Swell's Wefunder page to learn more and invest.1

# REMINDER: We're pitching Swell to you - LIVE!

We'll be doing a live webcast tomorrow, Tuesday, October 18 at 5pm MT. I'll be talking about Swell's vision and our CTO, Ryan LaMountain, will give a demo of the Swell app and a sneak peek at future features. Don't miss it!

Sign Up for Our Webcast

I hope you join me on Swell's journey by becoming both a Swell investor and customer!

Let's Make Bank Together!

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://help.wefunder.com/awment/294869-how-is-wefunder-compensated.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680

Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

Accessibility Terms of Use Privacy

Unsubscribe Massive Preferences

Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Hi Swell Founding Member,

Great news! Swell's crowdfunding campaign is now open to the public at wefunder.com/swell. So now you can share Swell with fellow strivers and friends.

Share on Twitter

Share on LinkedIn

If you missed our recent webcast, the video is now available on Swell's Wefunder page, where you can get a sneak peek of Swell's vision and the app and learn more about the opportunity to invest in Swell.1

Thank you for being part of our community and joining us on this journey.

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://help.wefunder.com/swell/204993-how-is-wefunder-conversated.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debit Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680

Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

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Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Here's your opportunity to invest in Swell!

Hi Swell Founding Member,

It looks like we missed you at Swell's webcast. If you want to get a sneak peek of the app and learn more about Swell's vision, the webcast video is now available on Swell's Wefunder page. You can also learn more about the opportunity and invest.1

Learn More

I hope you join me on Swell's journey by becoming both a Swell investor and customer!

Let's Make Bank Together!

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://hols.wefunder.com/awmert/294969-how-is-wefunder-compensated.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680

Call Swell Member Services at 1-800-806-5220.

©2022 Swell Financial Inc. All Rights Reserved.

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Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Hello fellow investors-and Happy Holidays!

Several of you have asked when your Wefunder investment in Swell will close. Swell will be filing the required paperwork with the SEC in the next 2 weeks and then there is a required 21 day waiting period. So we expect to close in mid January. You'll hear from us before closing.

If you've signed up for the Swell community you received an email update recently. The Swell app is in app stores and we're rolling out Swell Cash and Swell Credit (slowly) right now.

We appreciate your support and will keep you updated on our progress.

Thanks,

Kevin 👍

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefits from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depository. The Swell Debit Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-0680

Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

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Kevin Dahlstrom

Hi Swell Founding Member,

On behalf of the whole Swell team, a heartfelt thank you for reserving your investment in Swell via Wefunder. We're honored that you're joining us on this journey.

And we're also counting on you-to be a great customer and to tell your friends about Swell.

It starts now - by reserving your investment in Swell via Wefunder you get to jump to the front of the line to apply for a Swell account!

Schedule Now

And equally importantly, tell your friends about Swell! Our crowdfunding campaign is now open to the public at wefunder.com/swell.

(P.S. If you didn't catch our recent Swell/Wefunder webcast, check it out here for a sneak peek at Swell's vision and the Swell app.)

Kevin 👍

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depository. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debt cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680
Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

Accessibility Terms of Use Privacy
Unsubscribe Manage Preferences

Kevin Dahlstrom

Swell

Hi Swell Founding Member,

On behalf of the whole Swell team, a heartfelt thank you reserving your investment in Swell. We're honored that you're joining us on this journey.

And we're also counting on you-to be a great customer and to tell your friends about Swell.

By reserving your investment in Swell via Wefunder **you're jumping to the front of the line** to get a Swell account as soon as it's available in your state (hopefully next month!)1.

In the meantime, **tell your friends about Swell!** Our crowdfunding campaign is now open to the public at wefunder.com/swell.

(P.S. If you didn't catch our recent webcast check it out here for a sneak peek at Swell's vision and the Swell app.)

1. Swell Cash and Swell Credit are not available in all states. See www.swellmoney.com/qualifications for more details.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depository. The Swell Debt Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-0680
Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

Accessibility Terms of Use Privacy
Unsubscribe Manuals Preferences

Kevin Dahlstrom

Swell

# Swell + WEFUNDER

Here's your opportunity to invest in Swell!

Hi Swell Founding Member,

Thank you for attending Swell's webcast. We hope you enjoyed learning more about Swell's vision and seeing a sneak peek of the Swell app.

The webcast video is now available on Swell's Wefunder page where you can learn more about the opportunity and invest.1

Learn More

I hope you join me on Swell's journey by becoming both a Swell investor and customer!

Let's Make Bank Together!

Kevin 👍

1. Wefunder charges a fee to invest using the Wefunder investment platform. Swell receives no portion of any fee charged to investors by Wefunder. For more details, visit https://hws.wefunder.com/gawment/294969-how-is-wefunder-compensated.

This is an advertisement.

Swell Financial, Inc. is a technology company, not a bank. Swell is not a member of the FDIC, and not all products and services promoted and supported by Swell benefit from FDIC deposit insurance. Banking services and line of credit services are provided by Central Pacific Bank, Member FDIC. Qualifications to open Swell Cash and Swell Credit accounts are set by Central Pacific Bank. Visit www.swellmoney.com/qualifications for more details on product qualifications.

The Swell Cash deposit account product, for which Central Pacific Bank is the depository, is FDIC-insured for deposits up to $250,000 per depositor. The Swell Debit Mastercard® is issued by Central Pacific Bank pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted. The Swell Credit unsecured line of credit product is not FDIC-insured.

Swell Cash and Swell Credit are not available in all states. Visit www.swellmoney.com/qualifications for more details.

Confidential: This e-mail (including any attachments hereto), is intended only for use by the addressee(s) named herein and may contain confidential information. If you have received this e-mail in error, please immediately email us at contact@swellmoney.com and delete this e-mail. You are hereby notified that any dissemination, distribution or copying of this e-mail and/or any attachments hereto, is strictly prohibited.

Swell Financial, Inc., PO Box 371680, Denver, CO 80237-5680

Call Swell Member Services at 1-800-808-5220.

©2022 Swell Financial Inc. All Rights Reserved.

Accessibility Terms of Use Privacy

Unsubscribe Manuals Preferences

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Swell Financial, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 12-16-2021

**Physical Address:** 2101 Pearl Street, Boulder, CO, 80302

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

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 5.0% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Simple Agreement for Future Equity (SAFE)

**Number of Securities Offered:** 400000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $400,000; interests will be sold in increments of $1; each investment is convertible to one share of stock as described under Item 13.

**Target Offering Amount:** $400,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** As determined by the issuer

**Maximum Offering Amount:** $5,000,000.00

**Deadline to Reach Target Amount:** 03-31-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 11

**Total Assets (Most Recent Fiscal Year):** $9,908,025.00

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

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $5,682,775.00

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

**Accounts Receivable (Most Recent Fiscal Year):** $165,472.00

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

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

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

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

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

**Revenues/Sales (Most Recent Fiscal Year):** $151,894.00

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

**Cost of Goods Sold (Most Recent Fiscal Year):** $287,323.00

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

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

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

**Net Income (Most Recent Fiscal Year):** $-4,325,320.00

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

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** Swell Financial, Inc.

**Signature:** Kevin Dahlstrom

**Title:** Founder & CEO

---

**Signature:** Jason Harvison

**Title:** DIrector

**Date:** 02-24-2023

---

**Signature:** Christopher Lutes

**Title:** Director

**Date:** 02-24-2023

---

**Signature:** Alexander Dunev

**Title:** Investor

**Date:** 02-24-2023

---

**Signature:** Kevin Dahlstrom

**Title:** Founder & CEO

**Date:** 02-24-2023