# EDGAR Filing Document

**Accession Number:** 0001966761
**File Stem:** 0001966761-23-000001
**Filing Date:** 2023-2
**Character Count:** 46612
**Document Hash:** b3d11e1be9b6637105e45be8ffee6f3c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001966761-23-000001.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001966761-23-000001

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 6

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ACK Chocolate Industries LLC
- **CENTRAL INDEX KEY:** 0001966761
- **IRS NUMBER:** 823003543
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31887
- **FILM NUMBER:** 23676913

**BUSINESS ADDRESS:**
- **STREET 1:** 1280 4 ST. NE
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20002
- **BUSINESS PHONE:** 2399618695

**MAIL ADDRESS:**
- **STREET 1:** 10836 ANTIGUA TERRACE
- **STREET 2:** 202
- **CITY:** ROCKVILLE
- **STATE:** MD
- **ZIP:** 20852

### Attached PDF Documents

**Attachment 1:** `formcrcay.pdf`

DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

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

# FORM C

| Name of Issuer | ACK Chocolate Industries LLC |
| --- | --- |
| DBA | Arcay Chocolates |
| Form of Entity | Limited Liability Company |
| Jurisdiction of Incorporation / Organization | Maryland |
| Date of Organization | October 10, 2017 |
| Physical Address of Issuer | 1280 4th St. NE Washington, DC 20002 |
| Website of Issuer | arcaychocolates.com |
| Intermediary Name | SMBX, LLC |
| Intermediary CIK | 0001707214 |
| Intermediary SEC File Number | 007-00129 |
| Intermediary CRD Number | 290186 |

1. 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:

SMBX will not be charging a capital raise fee as these bonds are part of the DC Rebuild program

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

N/A

3. Type of security offered:

☐ Common Stock
☐ Preferred Stock

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

☑ Debt
☐ Other

If Other, describe the security offered: N/A

4. Target number of securities to be offered: Up to 12,400 units
5. Price (or method for determining price): $10.00 per unit
6. Minimum Target offering amount: $40,000

Maximum Target offering amount: $124,000

7. Oversubscriptions accepted (only during offering, but not after offering has closed):

☑ 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: N/A

8. Maximum offering amount (if different from target offering amount): $124,000
9. Deadline to reach the target offering amount: April 17, 2023

NOTE: If the sum of the investment commitments does not equal to or reach the minimum target offering amount at the offering deadline, then either 1) an issuer accepts a lower fund raised amount and investors invested in the bonds also confirm this change to the offering, at which case, the offering will be finalized and processed through accordingly, 2) an issuer extends the offering deadline to a future date and investors invested in the bonds also confirm this change to the offering or 3) no securities will be sold in the offering and investment commitments will be cancelled and committed funds will be credited back to investors' bank accounts or credit cards.

10. Current number of employees: 2
11. Financial Summary of Issuer:

Fiscal year-end is December 31

| Financial Overview | FY21 | FY22 |
| --- | --- | --- |
| Total Assets | $151,281 | $127,764 |
| Cash and Cash Equivalents | $55,254 | $18,820 |
| Accounts Receivable | $0 | $0 |
| Short-Term Debt | $45,174 | $9,566 |
| Long-Term Debt | $80,098 | $61,326 |
| Revenue | $253,694 | $273,558 |
| Cost of Goods Sold | $45,964 | $31,583 |
| Taxes | $0 | $0 |
| Net Income | -$15,674 | $33,531 |

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

☑ AL
☑ CA

☑ AK
☑ CO

☑ AZ
☑ CT

☑ AR

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

☑ 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: ACK Chocolate Industries LLC

# COMPANY ELIGIBILITY

NOTE: If any of the following statements is not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

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.

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

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

Yes  
  No

If yes, please explain: N/A

# **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. List all positions and offices with the issuer held and the period of time in which the director served in the position or office:

| Name of Director | Dates of Board Service | Principal Occupation | Employer | Dates of Service | Title / Position | Principal Business |
| --- | --- | --- | --- | --- | --- | --- |
| Rafael Dario Berti | 2017 - Present | Director | ACK Chocolate Industries LLC | 2017 - Present | Director | Chocolate Manufacturing |
| Anabella Arcay de Berti | 2017 - Present | Director | ACK Chocolate Industries LLC | 2017 - Present | Director | Chocolate Manufacturing |

# **OFFICERS OF THE COMPANY**

NOTE: The term officer means a president, vice president, secretary, treasurer or principal financial officer, comptroller or principal accounting officer, and any person routinely performing similar functions.

| Name of Officer | Title / Position | Dates of Service | Responsibilities |
| --- | --- | --- | --- |
| Rafael Dario Berti | Director | 2017 - Present | Director |
| Anabella Arcay de Berti | Director | 2017 - Present | Director |

5. Provide the following information about each officer (and any persons occupying a similar status or performing a similar function) of the issuer. List any prior positions and offices with the issuer and the period of time in which the officer served in the position or office:

N/A

# **PRINCIPAL SECURITY HOLDERS**

NOTE: The following 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.

6. Provide the name of 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 | % of Voting Power Prior to Offering |
| --- | --- |
| Rafael Dario Berti | 50% |
| Anabella Arcay de Berti | 50% |

# **BUSINESS AND ANTICIPATED BUSINESS PLAN**

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

**ACK Chocolate Industries LLC** (NAICS 311351) is a family-owned chocolate business in Washington D.C. that creates piece of art you can eat. Each chocolate bonbons box is filled with a variety of exquisite flavors from their award-winning collection. All of their products are handmade in small batches at their chocolate studio in La Cosecha, a Latin American gastronomic hub in the heart of D.C.'s Union Market District.

# **RISK FACTORS**

4

![SMB logo]()

DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

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:**

Investment in the Issuer is a purchase of a debt security, specifically, a debt security that pays principal plus interest monthly for the duration of the outstanding debt. The primary material factor that makes investment in a debt security and in this issuer speculative or risky is the Issuer's ability to service the debt through cash generated by revenue. Therefore, any material changes to revenue will impact the Issuer's capacity to service the debt. These factors may include but are not limited to a sufficient decline in sales of its products and/or services, unforeseeable extraordinary expenses incurred in its operations, and/or taking on more debt than is viable for the business to service. Please see the financial condition of the issuer on page 14 for a more detail breakdown of how material changes to its revenue generating capacity and net income could impact its' ability to service this debt and thus create risk to you and your investment.

NOTE: 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 above. No specific number of risk factors is required to be identified.

**USE OF FUNDS**

**1. What is the purpose of this offering?**

The purpose of this offering is to raise up to $124,000. **ACK Chocolate Industries LLC** intends to use offering net proceeds towards equipment purchases and construction costs.

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

NOTE: 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.

If minimum raise is met:

- $20,000 (50.00%) of the proceeds will go towards equipment purchases
- $20,000 (50.00%) of the proceeds will go towards construction costs

If the maximum raise is met:

- $62,000 (50.00%) of the proceeds will go towards equipment purchases
- $62,000 (50.00%) of the proceeds will go towards construction costs

**DELIVERY & CANCELLATIONS**

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

The following describes the method and the process to invest in the Issuer/Company's debt securities, including how the Issuer/Company will complete an investor's transaction(s) and deliver securities to the investor.

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

- • **Offering Process.** The offering will use a first come first serve/pro-rata method to issue and sell bonds to investors. All bonds pay a fixed rate interest as per the terms of the offering.
- • **Investor Commitment.** The Investor will place order(s) through the SMBX mobile app, the SMBX Investment Center web client, or the SMBX Investment Center mobile web client by inputting the total amount they would like to invest at a preset value of \$10.00 per bond and at the fixed interest rate per the terms of the offering. Bond orders are processed through immediately and an investor has up to 48 hours before the close of an offering to cancel their order(s).
- • **Investor Transfer of Funds.** The initiation for a Transfer of Funds will happen simultaneously when an order is placed (payment for bonds are upfront). The order(s) will sit in the investor's portfolio as pending until the transfer of funds / payment is completed. The funds will sit in an escrow account on behalf of the issuer until the close of a successful offering. Only those orders that have fully settled will be allocated bonds on a first come first serve / pro-rate basis at the end of the offering.
- • **Progress of the Offering.** The Investor will receive periodic email updates on the progress of the offering, including how much has been raised so far and how many days remain until the end of the offering.
- • **Closing of an Offering. Original Date -** At the close of the offering, investors will receive an email notifying that they have been allocated a number of bonds or whether their order(s) have been cancelled and returned due to oversubscription. The investor may also be asked to reconfirm their order(s) within 5 business days by clicking on a link included in the email in the event of a material change to an offering (material changes may include a change to the offering's deadline date, a change to the offering amount, etc.). Orders not reconfirmed within 5 business days will be cancelled and refunded to investor's bank account or credit card.
- • **Early Closing.** In the event an offering has met its 21-day minimum open requirement and has been fully subscribed before the offering's original close date, the Company may choose to close the offering early. The offering will then be settled at the issuer's direction by the SMBX. An email notification will be sent to all investors and those who have been allocated bonds will proceed to either receive their bond certificates or asked to reconfirm their bonds in the event of a material change to the offering. All investors who are not allocated bonds will receive a notification that funds will be refunded to their bank accounts or credit cards due to oversubscription. The decision for an early closing and the email notifications will be sent at least 5 business days prior to the original close date.
- • **Securities Transfer(s). Bond Certificates -** After an offering has closed and all investors who were allocated bonds have reconfirmed their orders in the event of a material change to the offering, the Company will direct SMBX to issue on their behalf, the electronically signed bond certificates in pdf format to investors via email. The bond certificates will be the investor's authoritative copy of ownership of the bonds. All bond certificates have unique identification codes that the Company and the SMBX have records of. If you misplace or lose your bond certificate(s), please contact support@thesmbx.com and notify them that you need a replacement certificate. SMBX and the Company will then update and void your old certificate(s) on our records and issue you new certificate(s) via email.
- • **Portfolio Entry.** On the same day investors receive their bond certificate(s) via email, they will see the bonds registered in their portfolio under Bonds. That bond issuance date will also be the first day their bond securities will start accruing interest for the month. Investors will then start receiving principal + interest (earnings) on their bond securities exactly 1 month on the same day of the bond issuance date (except if the day lands on a holiday or weekend or on a day that a particular month may not have the same day, i.e. the 31$^{st}$, then repayments will be recorded and credited the following business day).

#### 4. How can an investor cancel an investment commitment?

NOTE: An investor may cancel his or her investment commitment at any time until 48 hours prior to the offering deadline.

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 and the investor has been allocated bonds, post the closing process including a possible reconfirmation of the investment commitments by investors in the event of a material change to the offering, the funds will be released to the issuer upon the closing of the offering and the investor will receive securities in exchange for his or her investment(s).

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.

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 reconfirm his or her investment commitment within

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

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.

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

# OWNERSHIP AND CAPITAL STRUCTURE

Describe the terms of the securities being offered.

1. Do the securities offered have voting rights?

☐ Yes
☑ No

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

☐ Yes
☑ No

If yes, please explain: N/A

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

The Issuer has the right to amend the terms on the securities being offered during the life of the offering before they are issued and finalized on the bond issuance date. 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 reconfirm 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.

# 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:

A. To the issuer;
B. To an accredited investor;
C. As part of an offering registered with the U.S. Securities and Exchange Commission; or
D. 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 (same methodology for Regulation Crowdfunding), or who the issuer 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

4. 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.

N/A

Describe any other rights, if applicable: N/A

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DocuSign Envelope ID: BE268E8C-D5AF-495B-AD59-ED6D0414F986

5. 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?

N/A

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

☐ Yes
☑ No

If yes, please explain the following:

7. How could the exercise of rights held by the principal shareholders identified above affect the purchasers of the securities being offered?

N/A

8. 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?

N/A

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

N/A

10. 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?

A. Additional Issuances of Securities
B. Issuer Repurchases of Securities
C. A Sale of the Issuer or of Assets of the Issuer
D. Transactions with Related Parties

N/A for all. This is a debt product.

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

| Creditor | Issue Date | Original Amount | Outstanding Principal | Interest Rate | Maturity Date | Current with Payments |
| --- | --- | --- | --- | --- | --- | --- |
| M&T Bank | December 2020 | $64,000 | $38,197 | 11% | December 2020 | Yes |
| SBA | May 2022 | $23,400 | $23,285 | 3.75% | May 2052 | Yes |
| Wells Fargo | May 2019 | $13,000 | $10,976 | 14% | Line of Credit | Yes |

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

N/A

13. 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 in which the issuer is 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:

A. any director or officer of the issuer;
B. 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;

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C. if the issuer was incorporated or organized within the past three years, any promoter of the issuer;
D. or any immediate family member of any of the foregoing persons.

☑ Yes
☐ No

If yes, for each such transaction, specify the person, relationship to issuer, nature of interest in transaction, and amount of interest.

| Name | RK Chocolates LLC |
| --- | --- |
| Amount Invested | N/A |
| Transaction Type | Intercompany Transfer Account |
| Issue Date | N/A |
| Outstanding Principal plus Interest | $28,788 |
| Interest Rate | N/A |
| Relationship | Common Control |
| Additional Comment | N/A |

NOTE: 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 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 the above Offering Statement.

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.

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**Attachment 2:** `bondprcay.pdf`

_No text found in this document._

**Attachment 3:** `combinedfinancials2021.pdf`

# ACK Chocolate Industries LLC

## Profit and Loss

January - December 2021

|  | TOTAL |
| --- | --- |
| Income |  |
| Sales | 253,456.74 |
| Square Income | 236.80 |
| Total Income | $253,693.54 |
| Cost of Goods Sold |  |
| Cost of Goods Sold | 35,282.15 |
| Shipping | 10,681.95 |
| Total Cost of Goods Sold | $45,964.10 |
| GROSS PROFIT | $207,729.44 |
| Expenses |  |
| Advertising & Marketing | 2,727.64 |
| Bank Charges & Fees | 1,176.35 |
| Car & Truck | 5,896.24 |
| Gasoline | 67.27 |
| Total Car & Truck | 5,963.51 |
| Casual Labor | 9,366.60 |
| Delivery Services | 428.00 |
| Insurance | 1,779.55 |
| Interest Paid | 5,588.42 |
| Legal & Professional Services | 4,453.00 |
| Office Supplies & Software | 6,763.71 |
| Other Business Expenses | 36.70 |
| Packaging Materials | 20,466.41 |
| Payroll Expenses |  |
| Taxes | 16,716.00 |
| Wages | 200,000.00 |
| Total Payroll Expenses | 216,716.00 |
| Profit Sharing | 50,000.00 |
| Rent & Lease | 26,824.47 |
| Repairs & Maintenance | 1,366.68 |
| Small Equipment | 6,251.17 |
| Square Fees | 8.94 |
| Supplies | 6,848.70 |
| Taxes & Licenses | 788.34 |
| DC Taxes | 1,261.00 |
| Total Taxes & Licenses | 2,049.34 |
| Telephone and Communications | 2,726.42 |
| Travel | 729.13 |
| Total Expenses | $372,270.74 |
| NET OPERATING INCOME | $ -164,541.30 |

Accrual Basis Friday, January 20, 2023 04:41 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Profit and Loss

January - December 2021

|  | TOTAL |
| --- | --- |
| Other Income |  |
| Grant | 71,465.17 |
| SBA Grant | 117,078.00 |
| Total Grant | 188,543.17 |
| Total Other Income | $188,543.17 |
| Other Expenses |  |
| Amortization | 248.00 |
| Depreciation | 39,428.00 |
| Total Other Expenses | $39,676.00 |
| NET OTHER INCOME | $148,867.17 |
| NET INCOME | $ -15,674.13 |

Accrual Basis Friday, January 20, 2023 04:41 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Balance Sheet

As of December 31, 2021

|  | TOTAL |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Bank Accounts |  |
| ACKBusiness | 40,978.71 |
| M&T BUSINESS | 14,275.56 |
| Petty Cash | 0.00 |
| Total Bank Accounts | $55,254.27 |
| Accounts Receivable |  |
| Accounts Receivable (A/R) | 0.00 |
| Total Accounts Receivable | $0.00 |
| Other Current Assets |  |
| Inventory | 5,500.00 |
| Inventory Asset | 0.00 |
| Security Deposit | 2,100.00 |
| Undeposited Funds-1 | 0.00 |
| Total Other Current Assets | $7,600.00 |
| Total Current Assets | $62,854.27 |
| Fixed Assets |  |
| Accumulated Depreciation | -40,362.00 |
| Furniture & Fixtures | 9,990.20 |
| Machinery & Equipment | 35,798.56 |
| New Store - Improvements | 74,077.07 |
| Total Fixed Assets | $79,503.83 |
| Other Assets |  |
| Accumulated Amortization | -268.67 |
| Loan Origination Cost | 1,240.00 |
| Loan Receivable | 7,951.76 |
| Total Other Assets | $8,923.09 |
| TOTAL ASSETS | $151,281.19 |

Accrual Basis Friday, January 20, 2023 04:44 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Balance Sheet

As of December 31, 2021

|  | TOTAL |
| --- | --- |
| LIABILITIES AND EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Credit Cards |  |
| ACK MC Business Line of Credit | 1,375.84 |
| Total Credit Cards | $1,375.84 |
| Other Current Liabilities |  |
| Direct Deposit Payable | 0.00 |
| District of Columbia Treasurer Payable | 5,099.47 |
| Maryland Department of Revenue Payable | 297.03 |
| Out Of Scope Agency Payable | 5.94 |
| Payroll Liabilities |  |
| 401(k) Catch-Up | 0.00 |
| DC Paid Family Leave | 0.00 |
| DC Unemployment Tax | 0.00 |
| Federal Taxes (941/944) | 34,543.20 |
| Federal Unemployment (940) | 84.00 |
| MD Income Tax | 3,768.80 |
| Total Payroll Liabilities | 38,396.00 |
| Sales Tax Payable | 0.00 |
| Total Other Current Liabilities | $43,798.44 |
| Total Current Liabilities | $45,174.28 |
| Long-Term Liabilities |  |
| EID LOAN | 23,208.81 |
| LOAN | 56,888.86 |
| Paycheck Protection Program | 0.00 |
| Total Long-Term Liabilities | $80,097.67 |
| Total Liabilities | $125,271.95 |
| Equity |  |
| Partner Contributions | 0.00 |
| Partner Distribution | 0.00 |
| Retained Earnings | 41,683.37 |
| Net Income | -15,674.13 |
| Total Equity | $26,009.24 |
| TOTAL LIABILITIES AND EQUITY | $151,281.19 |

Accrual Basis Friday, January 20, 2023 04:44 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Statement of Cash Flows

January - December 2021

|  | TOTAL |
| --- | --- |
| OPERATING ACTIVITIES |  |
| Net Income | -15,674.13 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |
| Accounts Receivable (A/R) | 0.00 |
| Inventory | -3,244.90 |
| Accumulated Depreciation | 39,428.00 |
| Accumulated Amortization | 248.00 |
| ACK MC Business Line of Credit | -8,103.85 |
| Direct Deposit Payable | 0.00 |
| District of Columbia Treasurer Payable | 2,714.24 |
| Maryland Department of Revenue Payable | 159.84 |
| Payroll Liabilities:401(k) Catch-Up | 0.00 |
| Payroll Liabilities:DC Paid Family Leave | 0.00 |
| Payroll Liabilities:DC Unemployment Tax | 0.00 |
| Payroll Liabilities:Federal Taxes (941/944) | 34,543.20 |
| Payroll Liabilities:Federal Unemployment (940) | 84.00 |
| Payroll Liabilities:MD Income Tax | 3,768.80 |
| Sales Tax Payable | 0.00 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | 69,597.33 |
| Net cash provided by operating activities | $53,923.20 |
| INVESTING ACTIVITIES |  |
| Furniture & Fixtures | -2,567.32 |
| Machinery & Equipment | -26,848.56 |
| New Store - Improvements | -56,385.98 |
| Loan Receivable | -7,951.76 |
| Net cash provided by investing activities | $ -93,753.62 |
| FINANCING ACTIVITIES |  |
| EID LOAN | 0.00 |
| LOAN | -7,111.14 |
| Partner Contributions | -20,678.00 |
| Partner Distribution | 41,409.36 |
| Retained Earnings | -20,731.36 |
| Net cash provided by financing activities | $ -7,111.14 |
| NET CASH INCREASE FOR PERIOD | $ -46,941.56 |
| Cash at beginning of period | 102,195.83 |
| CASH AT END OF PERIOD | $55,254.27 |

Sunday, February 19, 2023 02:06 PM GMT-05:00

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**Attachment 4:** `combinedfinancials2022.pdf`

# ACK Chocolate Industries LLC

## Profit and Loss

January - December 2022

|  | TOTAL |
| --- | --- |
| Income |  |
| Discount Income | -1.80 |
| Sales | 272,532.44 |
| Square Income | 1,027.84 |
| Total Income | $273,558.48 |
| Cost of Goods Sold |  |
| Cost of Goods Sold | 26,560.78 |
| Shipping | 5,022.22 |
| Total Cost of Goods Sold | $31,583.00 |
| GROSS PROFIT | $241,975.48 |
| Expenses |  |
| Advertising & Marketing | 1,219.57 |
| Bank Charges & Fees | 1,188.26 |
| Car & Truck |  |
| Parking | 2.00 |
| Total Car & Truck | 2.00 |
| Casual Labor | 18,390.16 |
| Continuing Education | 250.00 |
| Insurance | 1,754.00 |
| Legal & Professional Services | 8,680.66 |
| Office Supplies & Software | 1,795.52 |
| Packaging Materials | 17,943.33 |
| Payroll Expenses |  |
| Taxes | 8,310.09 |
| Wages | 90,000.00 |
| Total Payroll Expenses | 98,310.09 |
| Rent & Lease | 29,663.42 |
| Repairs & Maintenance | 441.57 |
| Small Equipment | 1,581.56 |
| Square Fees | 35.15 |
| Supplies | 5,337.05 |
| Taxes & Licenses | 2,710.82 |
| DC Taxes | 4,357.27 |
| Total Taxes & Licenses | 7,068.09 |
| Telephone and Communications | 2,498.52 |
| Travel | 4,275.10 |
| Total Expenses | $200,434.05 |
| NET OPERATING INCOME | $41,541.43 |
| Other Expenses |  |
| Amortization | 186.00 |

Accrual Basis Friday, January 20, 2023 04:35 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Profit and Loss

January - December 2022

|  | TOTAL |
| --- | --- |
| Depreciation | 7,824.00 |
| Total Other Expenses | $8,010.00 |
| NET OTHER INCOME | $ -8,010.00 |
| NET INCOME | $33,531.43 |

Accrual Basis Friday, January 20, 2023 04:35 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Balance Sheet

As of December 31, 2022

|  | TOTAL |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Bank Accounts |  |
| ACKBusiness | 13,199.77 |
| BOFA Business Advance | 1,326.80 |
| M&T BUSINESS | 4,293.16 |
| Petty Cash | 0.00 |
| Total Bank Accounts | $18,819.73 |
| Accounts Receivable |  |
| Accounts Receivable (A/R) | 0.00 |
| Total Accounts Receivable | $0.00 |
| Other Current Assets |  |
| Due To/From RK Chocolate | 28,788.26 |
| Inventory | 5,587.59 |
| Inventory Asset | 0.00 |
| Payroll Corrections | 0.00 |
| Payroll Refunds | 3.30 |
| Security Deposit | 2,100.00 |
| Undeposited Funds-1 | 0.00 |
| Total Other Current Assets | $36,479.15 |
| Total Current Assets | $55,298.88 |
| Fixed Assets |  |
| Accumulated Depreciation | -48,186.00 |
| Furniture & Fixtures | 9,990.20 |
| Machinery & Equipment | 35,798.56 |
| New Store - Improvements | 74,077.07 |
| Total Fixed Assets | $71,679.83 |
| Other Assets |  |
| Accumulated Amortization | -454.67 |
| Loan Origination Cost | 1,240.00 |
| Loan Receivable | 0.00 |
| Total Other Assets | $785.33 |
| TOTAL ASSETS | $127,764.04 |

Accrual Basis Friday, January 20, 2023 04:43 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Balance Sheet

As of December 31, 2022

|  | TOTAL |
| --- | --- |
| LIABILITIES AND EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Credit Cards |  |
| ACK MC Business Line of Credit | 10,087.51 |
| Total Credit Cards | $10,087.51 |
| Other Current Liabilities |  |
| Direct Deposit Payable | 0.00 |
| District of Columbia Treasurer Payable | -2,620.83 |
| Maryland Department of Revenue Payable | -42.68 |
| Out Of Scope Agency Payable | 5.94 |
| Payroll Liabilities |  |
| 401(k) Catch-Up | 500.00 |
| DC Paid Family Leave | 26.00 |
| DC Unemployment Tax | 0.00 |
| Federal Taxes (941/944) | 1,285.00 |
| Federal Unemployment (940) | 84.00 |
| MD Income Tax | 241.16 |
| Total Payroll Liabilities | 2,136.16 |
| Sales Tax Payable | 0.00 |
| Tips | 0.00 |
| Total Other Current Liabilities | $ -521.41 |
| Total Current Liabilities | $9,566.10 |
| Long-Term Liabilities |  |
| EID LOAN | 23,208.81 |
| LOAN | 38,117.17 |
| Paycheck Protection Program | 0.00 |
| Total Long-Term Liabilities | $61,325.98 |
| Total Liabilities | $70,892.08 |
| Equity |  |
| Partner Contributions | 31,131.05 |
| Partner Distribution | -33,799.76 |
| Retained Earnings | 26,009.24 |
| Net Income | 33,531.43 |
| Total Equity | $56,871.96 |
| TOTAL LIABILITIES AND EQUITY | $127,764.04 |

Accrual Basis Friday, January 20, 2023 04:43 PM GMT-05:00

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# ACK Chocolate Industries LLC

## Statement of Cash Flows

January - December 2022

|  | TOTAL |
| --- | --- |
| OPERATING ACTIVITIES |  |
| Net Income | 33,531.43 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |
| Due To/From RK Chocolate | -28,788.26 |
| Inventory | -87.59 |
| Payroll Corrections | 0.00 |
| Payroll Refunds | -3.30 |
| Accumulated Depreciation | 7,824.00 |
| Accumulated Amortization | 186.00 |
| ACK MC Business Line of Credit | 8,711.67 |
| Direct Deposit Payable | 0.00 |
| District of Columbia Treasurer Payable | -7,720.30 |
| Maryland Department of Revenue Payable | -339.71 |
| Payroll Liabilities:401(k) Catch-Up | 500.00 |
| Payroll Liabilities:DC Paid Family Leave | 26.00 |
| Payroll Liabilities:DC Unemployment Tax | 0.00 |
| Payroll Liabilities:Federal Taxes (941/944) | -33,258.20 |
| Payroll Liabilities:Federal Unemployment (940) | 0.00 |
| Payroll Liabilities:MD Income Tax | -3,527.64 |
| Tips | 0.00 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | -56,477.33 |
| Net cash provided by operating activities | $ -22,945.90 |
| INVESTING ACTIVITIES |  |
| Loan Receivable | 7,951.76 |
| Net cash provided by investing activities | $7,951.76 |
| FINANCING ACTIVITIES |  |
| EID LOAN | 0.00 |
| LOAN | -18,771.69 |
| Partner Contributions | 31,131.05 |
| Partner Distribution | -33,799.76 |
| Net cash provided by financing activities | $ -21,440.40 |
| NET CASH INCREASE FOR PERIOD | $ -36,434.54 |
| Cash at beginning of period | 55,254.27 |
| CASH AT END OF PERIOD | $18,819.73 |

Sunday, February 19, 2023 02:04 PM GMT-05:00

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**Attachment 5:** `offeringsummaryrcay.pdf`

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

R C A Y

## ACK Chocolate Industries LLC
(dba Arcay Chocolates)
Small Business BondTM

### Bond Terms:

Bond Yield: 10.00%

Target Raise Amount: $124,000

Offering End Date: April 17, 2023

Repayment Period: 3 years (36 months)

Minimum Raise Amount: $40,000

### Company Details:

Name: ACK Chocolate Industries LLC

Founded: October 10, 2017

Address: 10836 Antigua Terrace, #202
Rockville, MD 20852

Industry: Chocolate Manufacturing

Employees: 2

Website: arcaychocolates.com

### Use of Funds Allocation:

If the maximum raise is met:

$62,000 (50.00%) - of the proceeds will go towards equipment purchases
$62,000 (50.00%) - of the proceeds will go towards construction costs

### Social:

Instagram: 18,400 Followers

x

S M B

R C A Y

## **Business Metrics:**

|  | FY21 | FY22 |
| --- | --- | --- |
| Total Assets | $151,281 | $127,764 |
| Cash & Cash Equivalents | $55,254 | $18,820 |
| Accounts Receivable | $0 | $0 |
| Short-term Debt | $45,174 | $9,566 |
| Long-term Debt | $80,098 | $61,326 |
| Revenue | $253,694 | $273,558 |
| Cost of Goods Sold | $45,964 | $31,583 |
| Taxes | $0 | $0 |
| Net Income | -$15,674 | $33,531 |

## **Recognition:**

**ACK Chocolate Industries LLC (DBA Arcay Chocolates)** is a family-owned chocolate business in Washington D.C. that creates piece of art you can eat. Each chocolate bonbons box is filled with a variety of exquisite flavors from their award-winning collection. All of their products are handmade in small batches at their chocolate studio in La Cosecha, a Latin American gastronomic hub in the heart of D.C.'s Union Market District.

## **About:**

**ACK Chocolate Industries LLC's (DBA Arcay Chocolates)** master chocolatier, Anabella Arcay, started Arcay Chocolates in a small corner of her family's home in Venezuela in 2006. The business grew quickly and gained international notoriety after receiving 42 medals at the International Chocolate Awards. In 2017, they uprooted the company to the United States with the dream of sharing their mouthwatering creations with the rest of the world. While Anabella is making chocolates, her husband Dario Berti is behind the scenes running operations, delivering orders, and greeting clients. Their daughter Bella is the head of marketing and social media. Meanwhile their son Tomas helps assemble chocolate boxes and organizes workshops. As Hispanic entrepreneurs, it is their pride and joy to represent Venezuela through their confections.

For more information, contact our Customer Support Team at support@thesmbx.com

X

S M B

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** ACK Chocolate Industries LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** MD

**Date of Organization:** 10-10-2017

**Physical Address:** 10836 ANTIGUA TERRACE, ROCKVILLE, MD, 20852

**Issuer Website:** arcaychocolates.com

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

**Intermediary Name:** SMBX, Inc.

**Intermediary CIK:** 0001707214

**Intermediary File Number:** 007-00129

**Intermediary CRD Number:** 290186

### Offering Information

**Compensation to Intermediary:** SMBX will not be charging a capital raise fee as these bonds are part of the DC Rebuild program.

**Financial Interest in Issuer:** N/A

**Type of Security Offered:** Debt

**Price per Security:** $10.00

**Method for Determining Price:** This is a debt security and the yield at which the bonds pay interest is determined by the market rate yield range for similar SBA loans in the market as of February 2023. The yield is fixed and determined upfront at 10.00%.

**Target Offering Amount:** $40,000.00

**Oversubscription Accepted:** Yes

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

**Maximum Offering Amount:** $124,000.00

**Deadline to Reach Target Amount:** 04-17-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 2.00

**Total Assets (Most Recent Fiscal Year):** $127,764.00

**Total Assets (Prior Fiscal Year):** $151,281.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $18,820.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $55,254.00

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $9,566.00

**Short-Term Debt (Prior Fiscal Year):** $45,174.00

**Long-Term Debt (Most Recent Fiscal Year):** $61,326.00

**Long-Term Debt (Prior Fiscal Year):** $80,098.00

**Revenues/Sales (Most Recent Fiscal Year):** $273,558.00

**Revenues/Sales (Prior Fiscal Year):** $253,694.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $31,583.00

**Cost of Goods Sold (Prior Fiscal Year):** $45,964.00

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

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

**Net Income (Most Recent Fiscal Year):** $33,531.00

**Net Income (Prior Fiscal Year):** $-15,674.00

**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, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** ACK Chocolate Industries LLC

**Signature:** Rafael Dario Berti

**Title:** Director

---

**Signature:** Rafael Dario Berti

**Title:** Director

**Date:** 02-27-2023