# EDGAR Filing Document

**Accession Number:** 0001957669
**File Stem:** 0001670254-23-000045
**Filing Date:** 2023-1
**Character Count:** 239394
**Document Hash:** f059057c14077d4e1a6a4499094c5301
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000045.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0001670254-23-000045

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Circle Optics, Inc.
- **CENTRAL INDEX KEY:** 0001957669
- **IRS NUMBER:** 833131426

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31672
- **FILM NUMBER:** 23549496

**BUSINESS ADDRESS:**
- **STREET 1:** 260 E. MAIN ST STE 6106
- **CITY:** ROCHESTER
- **STATE:** NY
- **ZIP:** 14604
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 260 E. MAIN ST STE 6106
- **CITY:** ROCHESTER
- **STATE:** NY
- **ZIP:** 14604

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Circle Optics, Inc.

Legal status of issuer:

Form: Other
Other (specify): Public Benefit Corporation
Jurisdiction of Incorporation/Organization: DE
Date of organization: 12/1/2017

Physical address of issuer:

200 E. Main St
Ste 4106
Rochester NY 14604

Website of issuer:

https://www.circleoptics.com/

Name of intermediary through which the offering will be conducted:

Weifunder Portal LLC

CIA number of intermediary:

0004670254

SEC file number of intermediary:

007-00003

CRO number, if applicable, of intermediary:

200003

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 interest and any other fees associated with the offering.

5.0% of the offering amount upon a successful fundraiser, 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
☐ Cube
☐ Other

If Other, describe the security offered:

Target number of securities to be offered:

103,064

Price:

$1.02000

Method for determining price:

Dividend pre-receipt valuation $20,000,740.74 (or $10,000,730.23 for investors in the first 3149,995.35) by number of shares outstanding on fully diluted basis.

Target offering amount:

$150,000.00

Overreimbursements accepted:

☑ Yes
☐ No

If yes, describe how overreimbursements will be allocated:

☐ Pro-rata basis
☐ First-carrel, first-served basis
☐ Other

If other, describe how overreimbursements will be allocated:

As determined by the issuer

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

$1,000,000.00

Deadline to reach the target offering amount:

4/30/2023

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:

II

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $221,430.00 | $104,335.00 |
| Cash & Cash Equivalents | $159,746.00 | $50,599.00 |
| Provision for Receivables | $24,800.00 | $46,041.00 |
| Short-term Debt | $904,479.00 | $736,447.00 |
| Long-term Debt | $822,101.00 | $616,405.00 |
| Retained/Sales | $424,484.00 | $238,966.00 |
| Cash of Issuance (loss) | $355,090.00 | $153,561.00 |
| Taxes Paid | $0.00 | $0.00 |
| Net Income | ($584,308.00) | ($440,825.00) |

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, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI,

# Offering Statement

By special in such questions in such paragraph of this post, the funds each question and any notes, has not any limitations thereto, do that entirely. If disclosure is required to any question is expressed in text 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 letter to previous disclosure, or omit the question or series of questions.

Do very careful and precise in executing 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 reasonable limits. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to someone based on that information.

# THE COMPANY

1. Name of Issuer

Circle Optics, 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 the reports pursuant to Section 14 or Section 1016 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.
- No failure of the Commission and provided to investors, to the extent required, the amounts 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 to specify business plan or (b) has indicated that its business plan is in engage in a merger of acquisitions 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 503 of Regulation Crowdfunding?

☐ Yes ☑ No

# DIRECTORS OF THE COMPANY

4. Provide the following information about each officer (and any persons occupying a similar status or performing a similar function) of the issuer:

| Director | Principal Occupation | Main Employer | Not Attended Director |
| --- | --- | --- | --- |
| Zakartya Nissi | CEO, Founder | Circle Optics | 2017 |

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 | Business field | Year (since) |
| --- | --- | --- |
| Zakartya Nissi | CEO | 2017 |
| Zakartya Nissi | Founder | 2017 |
| Ian Steager | Vice President | 2018 |
| Ian Steager | COO | 2019 |

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

INSTRUCTION TO QUESTION 5. For purposes of this Question 2, the form (from above) is provided. Any possible, or other, in order to be a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or a general, or

# PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, where the identified 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 New York | % of Voting Power Flow to Offering |
| --- | --- | --- |
| Zakartya Nissi | 750000E.O. Common Stock | 76.0 |

INSTRUCTION TO QUESTION 6. The above information must be provided as if a date that is not more than 10 days prior to the date of filing of this offering statement.

Do not share such voting power in detail of securities, but with the person directly or indirectly, has or where the voting power which includes the person to vote or to absorb the voting of such securities. If the person has the right to acquire voting power or such securities, a time for legal, including through the exercise of any option, someone is right, the securities you usually, or other companies, or if no better are held in a member of the family through commissions or partnerships, or otherwise in a member that could all be registered in shares or owned the voting rights common law that is such activities or interest. You, for example, must become due to and the limited law being "ineligible owned." The detail includes compensation of those circumstances in a member of the "Member of and Class of Securities New York." In particular, noncontrolling voting rights to entities, a series of outstanding options are received and all outstanding, convertible securities, securities.

# 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. Estimate each person's name or address in the following specific or applicable (Appendix A) to the issuer's initial terms. The information will include all (a) business and "investors" data in an anticipated format. All values will be measured.

This notice shall not be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind, or otherwise, or is not to be construed as a product or a product of any kind.

# 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 operating lease application, 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 speculation or risky.

Our company is built around a core IP Portfolio. There is the potential of a large competitor to challenge our portfolio.

Potential of a major break through in stichting or computing technology which increases the viability of our competitors.

Hardware projects are known to run over. A delay in product delivery could lead to expense overruns.

We have a capital intensive design and manufacturing process. With the extraction of the economy, an inability to raise future round would hinder growth.

From time to time cash balances, held at a major financial institution may exceed federally insured limits of $250,000. Management believes that the financial institution is financially sound and the risk of loss is low.

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.

INVESTMENT AGREEMENT 9. Send general statements and/or lists with these items that are made in the most. Please see the following table for the year's business and the offering and should not be used for the company's performance. No specific version of the business is required to be included.

# 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 15 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 the 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 you issue $150,000

Use of Proceeds 95% towards hiring a full-time engineer, 5% towards WeH under fees.

If you issue $500,000

Use of Proceeds 65% towards hiring two full-time engineers, 35% towards hiring a full-time sales / development employee, 5% towards WeH under fees.

If you issue $1,000,000

Use of Proceeds 45% towards hiring three full-time engineers, 25% towards amortizing engineers, 10% towards hiring a full-time sales / development employee, 7% towards marketing, 5% towards WeH under fees.

INVESTMENT AGREEMENT 10. Invoices must provide a reasonable description of the material and material use of proceeds, and the Company will provide a complete statement of information to the Company's financial and financial. If the issuer has already made a report of the performance of its assets, the Company will provide a complete statement of the Company's financial and financial. If the issuer has been made a report of the performance of its assets, the Company will provide a complete statement of the Company's financial and financial. If the issuer has been made a report of the performance of its assets, the Company will provide a complete statement of the Company's financial and financial.

## DELIVERY & CANCELLATIONS

11. How will the issuer complete the transaction and deliver securities in 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 WeH under 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 senior 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.

Priced Round: $20,000,740.74 pre-money valuation

See exact security attached as Appendix B, Investor Contracts

Circle Optics, Inc. is offering up to 628,097 shares of stocks, at a price per share of $1.67/1

Investors in the first $149,999.35 of the offering will receive Series Seed I Preferred Stock at a price per share of $1.455A, and a pre-money valuation of $18,000,790.35

The campaign maximum is $1,000,000 and the campaign minimum is $750,000.00

## 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-owner 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 expenses, 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 set aside and with full power of substitution, on behalf of the Investor to: (i) sets 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 revised 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 this 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?

This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by all parties.

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 restricted by any purchase of such securities during the one year period beginning when the securities were issued unless such securities are transferred.

1. as the issuer:

2. as an accredited investor:

3. as part of an offering registered with the U.S. Securities and Exchange Commission; or

4. the number of the family of the purchaser or the equivalent, in which case called by the purchaser, the term expired for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or illness of the purchaser or other similar circumstances.

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, cigarette, grandchild, parent, stepparent, grandparent, spouse or spouse 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 consultant occupying a relationship generally equivalent to that of a spouse.

## DESCRIPTION OF ISSUED'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Seed Preferred | 3600974 | 1500000 | Yes |

| Common | 15600000 | 312000 | Yes | ☑ |
| --- | --- | --- | --- | --- |
| Class F | 7500000 | 7500000 | Yes | ☑ |

Securities Reserved for

Class of Security Issuance upon Exercise or Conversion

Warrants: 394000

Options: 1100000

Describe any other rights.

The Company has authorized 8,500,000 of common shares with a par value of $0.00001 per share. 8,422,500 shares were issued and outstanding as of 2020 and 2021.

Voting: Common stockholders are entitled to one vote per share. Class F Common and Series Seed Preferred Stockholders are entitled to two votes per share. Series Seed I Preferred Stockholders (being sold this round) are entitled to one vote per share.

Dividends: All stockholders are entitled to receive dividends on a pro-rata basis when declared by the Board of Directors. As of November 14, 2020, no dividends have been declared.

The Company has authorized 3,600,874 of preferred shares with a par value of $0.00001 per share. 1,500,000 shares were issued and outstanding as of 2020, and 2021.

Conversion: Preferred shareholders have the right to convert shares into common stock at a rate of 1 to 1 at the discretion of the shareholder or automatically in charge of control assets. Preferred shareholders receive dividends at the discretion of the board of directors on a par pass basis according to the number of shares of Common Stock held by such holders. For this purpose, each holder of shares of Preferred Stock will be treated as holding the greatest whole number of shares of Common Stock then issuable upon conversion of all shares of Preferred Stock held by such holder. Liquidation: In the event of any liquidation, dissolution or eroding up of the Company, the holders of the Series Seed Preferred Stock are entitled to receive prior to, and in preference to, any distribution to the common stockholders.

The only difference is the voting rights, the original Series Seed Preferred from 2020 tied 3 for 1 voting rights.

19. 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 hold the Investor's rights in a material way. For example, those interest holders could refer to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering).

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

To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority in interest of holders of securities with voting rights cause the Company to issue additional equity, an Investor's interest will typically also be diluted.

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

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

20. 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 as question 8 above affect the purchases 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 those decisions. The Investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor.

For example, the shareholders may change the terms of the Articles of Incorporation for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The shareholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the Investor owes. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns. The shareholders have the right to redeem their securities at any time. Shareholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its volatility. In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority in interest of holders of securities with voting rights cause the Company to issue additional stock, an Investor's interest will typically also be diluted.

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

21. How are the securities being offered being issued? Include examples of methods for how such securities may be issued 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.

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

1. unvested third party valuations of our common stock.

2. the price at which we sell other securities, such as convertible debt or uninferred Stock, in light of the rights, preferences and privileges of these securities relative to those of our common stock.

3. our equity of operations, financial position and capital ownership.

4. current business conditions and projections;
5. the lack of marketability of our common stock;
6. the hiring of key personnel and the experience of our management;
7. the introduction of new products;
8. the risk inherent in the development and expansion of our products;
9. our stage of development and material risks related to our business;
10. 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;
11. industry trends and competitive environment;
12. trends in consumer spending, including consumer confidence;
13. overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
14. 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 commence 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 likely hold a minority position in the Company, and thus be limited as to its ability to control or influence the governance and operations of the Company.

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

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

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

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

Additional insurance of securities. Following the investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the investor in the Company. The investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the investor's interest in the Company.

Issuer repurchases of securities. The Company may have authority to repurchase its securities from shareholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interest held by other similarly situated investors to the investor, and create pressure on the investor to sell its securities to the Company concurrently.

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

Transactions with related parties. The investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management and Board of Directors of the Company will be guided by their good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not semi-sought, but will be in all cases consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

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

Loan

Lender Small Business Administration

Issue date 04/09/20

Amount $10,000.00

Outstanding principal plus interest $10,338.49 as of 12/31/22

Interest rate 3.75% per annum

Maturity date 10/31/27

Current with payments Yes

Loan (Maturity to an AMAP/USA)

Loan

Lender ANZY Management

Issue date 12/20/21

Amount $9,750.00

Outstanding principal plus interest $9,751.25 as of 12/31/22

Interest rate 0.0% per annum

Current with payments Yes

Payments received on company's behalf to be reported to the Junior.

INSTRUCTIONS ON QUESTION 24: have the credits current and, because not, maturity date and any other material terms.

25. What other common offerings have the issuer construction authorities good times given?

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 3/2020 | Section 4(a)(2) | Preferred stock | $750,000 | General operations |
| 3/2020 | Section 4(a)(2) | SAFE | $350,000 | General |

| 8/2021 | Section A(a)(2) | SAFE | $100,000 | General operations |
| --- | --- | --- | --- | --- |
| 10/2021 | Other |  | $500,000 | General operations |

26. Who 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 received exceeds the percent of the aggregate amount of capital raised by the issuer in relation to Section 10(a)(2) of the Securities Act during the preceding 10 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 provision or offer 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 assets 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. In which 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 | ANZY Management |
| --- | --- |
| Amount invested | $150,000.00 |
| Transaction type | Priced round |
| Issue date | 05/17/20 |
| Relationship | Company owned by family member of founder |

| Name | Zakariya Nasti |
| --- | --- |
| Amount invested | $15,000.00 |
| Transaction type | Loan |
| Issue date | 12/14/21 |
| Outstanding principal plus interest | $0.00 as of 05/25/22 |
| Interest rate | 0.0% per annum |
| Relationship | Loan from Founder/CEO |

| Name | ANZY Management |
| --- | --- |
| Amount invested | $3,781.00 |
| Transaction type | Loan |
| Issue date | 12/20/21 |
| Outstanding principal plus interest | $3,781.25 as of 12/31/22 |
| Interest rate | 0.0% per annum |
| Current with payments | Yes |
| Relationship | Company owned by family member of founder |

INSTRUCTIONS TO QUESTION 26: The issuer's transaction has been reviewed by any financial institution, management or relationship including any contributions or provisions of related securities or any terms of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of principal (1) shall be determined as of a date that is no more than 10 days prior to the date of filing of the offering, payment and using the same calculation described in the context of the derivative and finance interest.

The issuer's "member of the family" includes any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other, any other

Company has a member of a related family, a member of the institution, a member of the group of the members of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization, a member of the organization

## 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

Circle Optics is the world's only stitch-free panoramic multi-camera system. One click & done. We work on 360° imaging that impacts safety and demonstrating experience!!!

Circle Optics technology upon inception was based on the premise that technology has the power to enhance the human experience for the better. We are dedicated to the pursuit of 360° immersive experiences giving people more access to the past, present and future along with igniting the human capacity to imagine and create.

Within the next five years, Circle Optics believes we will be positioned as the premier brand robotics, aerospace, and entertainment industries go to when incorporating panoramic video-like their applications. Forward-looking projections can't be guaranteed.

#### Milestones

Circle Optics, Inc. was incorporated in the State of Delaware in December 2007.

Since then, we have:

- We use a world where panoramic cameras make robots more autonomous and aerospace safer
- Our technology provides increased autonomy for uncrewed terrestrial and airborne systems - $108 T&N
- Our systems will improve aircraft navigation & prevent collisions for safer operation - $200M Market
- We have been validated by 13 PM in contracts with NASA, Space Force, Air Force, NSF and more

- Circle Optics received Silver recognition in Pepperdines' Host Fundable Company® List 2022

- Circle Optics has 12 Patents awarded & pending on their method of aligning fields-of-view

- Our team has bench strength of over 200 patents in the imaging vertical from IMAX, Kodak, and Xerox

### Historical Results of Operations

- Business & Growth Margin. For the period ended December 31, 2021, the Company had revenues of $424,464 compared to the year ended December 31, 2020, when the Company had revenues of $235,998. Our gross margin was 16.16% in fiscal year 2021, compared to 33.74% in 2020.

- Assets. As of December 31, 2021, the Company had total assets of $371,688, including $155,748 in cash. As of December 31, 2020, the Company had $100,255 in total assets, including $50,599 in cash.

- Net Loss. The Company has had net losses of $564,368 and net losses of $46,825 for the fiscal years ended December 31, 2020 and December 31, 2020, respectively.

- Liabilities. The Company's liabilities totaled $1,196,730 for the fiscal year ended December 31, 2021 and $1,196,862 for the fiscal year ended December 31, 2020.

### Related Party Transaction

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

### Liquidity & Capital Resources

Towards, the company has been financed with $76,727 in debt, $753,000 in equity, $925,000 in SATCs, and $500s via the sale of warrants.

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

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

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 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

Circle Optics, Inc. cash in hand is $100,173.33 as of December 2023. Over the last three months, revenues have averaged $143,000/month, cost of goods sold has averaged $110,000/month, and operational expenses have averaged $67,500/month, for an average burn rate of $35,500 per month. Our stand is to be profitable in 12 months.

Since the end of 2021, we signed $3.7M in new contracts and increased our monthly burn rate with new films. Our revenue increased monthly, due to signing additional contracts with NASA and the US Air Force.

We anticipate average revenues in the next 6 months to grow to nearly $300,000/month. In this timeframe we anticipate our COGS to increase slightly, by about 14%, and our non-COGS expenses to remain stable, for a anticipated average of $371,000 per month.

We are currently not profitable. Beyond this WePunder raise we anticipate needing to raise another $5M via a Series A before we are fully profitable. We could likely reach profitability for less than $5M but because we are trying to accelerate time to market for our shares (assess no before) $5M will be needed to get us there in the shortest amount of time. We plan to reach profitability in late 2023 through closing of additional contracts and beginning sales of a commercial system.

Outside of funds raised on WePunder, we have a healthy bank balance of more than a quarter million dollars, access to a $100k credit line, and nearly $1M in accounts receivable anticipated on current contracts over the next 12 months.

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

INSTRUCTIONS TO QUESTION 26: We do not want to return or work out the information contained in this form. For more information regarding these, do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form. We do not want to return or work out the information contained in this form.

## FINANCIAL INFORMATION

26. Include financial statements covering the two most recently completed fiscal years or the periodic close-formation, if desired.

Refer to Appendix C, Financial Statements

1. Zakariya Nuzi, notify him:

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

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

Zakariya Nuzi

CEO, Headline

## STAKEHOLDER ELIGIBILITY

26. With respect to the issues, any involvement 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, including or indirectly remuneration for solicitation of purchases. In connection with each sale of securities, or any general partner, director, officer or managing member of any such solicitation prior to May 30, 2014.

(1) Has any such person been connected, within 12 years (or five years, in the case of issuers, their predecessors, and affiliates) issued before the filing of this offering statement, of any foreign or indebtedness.

i. In connection with the purchase or sale of any security (1) Yes (2) No

ii. Investing the market of any false filing with the Commission (1) Yes (2) No

iii. arising out of the conduct of the business of an independent, limited, private, municipal securities dealer, investment adviser, funding portal or joint solicitor of purchasers of

Innovations? Yes No

(2) In 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 4(2)(b) of the Securities Act that, at the time of filing of this offering statement, partners or anyone 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. Writing out of the conduct of the business of an underwriter, broker, owner, municipal insurance dealer, investment advisor, funding portal or post collector of purchases of securities? ☐ Yes ☑ No

(3) In any such person subject to a final order of a duly issued commission (or an agency or officer of a duly performing like functions), a duly authority that supersizes or examines terms, foreign associations or credit unions, a duly issued commission (or an agency or officer of a duly performing like functions), an appropriate federal seeking agency, the U.S. Community Futures Trading Commission, or the National Credit Union Administration that:

i. At the time of the filing of this offering statement have the person from:

A. association with security required by such commission, authority, agency or official? ☐ Yes ☑ No

B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No

C. engaging in foreign associations or credit unions activities? ☐ Yes ☑ No

ii. constitutes a final order issued on a violation of any law or regulation that prohibits fraudulent, manipulative or incomplete conduct and for which the order was entered within the 15-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) In any such person subject to an order of the Commission entered pursuant to Section 1(1)(b) or 1(4)(c) of the Exchange Act or Section 3(1)(c) or (d) of the Investment Advisors Act of 1976 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, broker, municipal securities dealer, investment advisor or funding portal? ☐ Yes ☑ No

ii. prefers limitations on the activities, functions or operations of such person?

☐ Yes ☑ No

iii. bans such person from party associated with any entity or from participation in the offering of any party stock? ☐ Yes ☑ No

(5) In 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, enters the person to cause and assist from committing or causing a violation or future violation of:

i. any violation based with fraud provision of the federal securities laws, including without limitation Section 7(3)(c)(1) of the Securities Act, Section 1(4)(c) of the Exchange Act, Section 1(1)(c)(3) of the Exchange Act and Section 1(4)(c) of the Investment Advisors Act of 1976 or any other rule or regulation thereunder? ☐ Yes ☑ No

ii. Section 6 of the Securities Act? ☐ Yes ☑ No

(6) In any such person suspended or expelled from membership in, or suspended or blamed 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 fraud:

☐ Yes ☑ No

(7) Has any such person filed (as a supplement or issuer), or was any such person or was any such person named as or a member of, 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) In any such person subject to a limited States Postal Service false representation order issued within five years before the filing of the information required by Section 1(1)(b) of the Securities Act, or in any such person, at the time of filing of this offering statement, subject to a temporary remittance order or preliminary injunction with respect to conduct alleged by the United States Postal Service to substitute a scheme or source 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 tax occurred or been issued after May 15, 2016, then you are NOT eligible to rely on this exemption under Section 4(2)(b) of the Securities Act.

INSTRUCTIONS TO QUESTION 8: Final order requires written decision in accordance with the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of the United States, and the rules of

The number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of

## OTHER MATERIAL INFORMATION

If, 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, to 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 No (1) calendar day period to receive 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 stop 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 SPX. 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 circumstances, 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 invests in 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 6 above.

Investors that wish to purchase securities related to the Company through Wefunder Part I 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 (re)own identification number ("RN") to a social security number or employee identification number. To the extent they have not already done so, each investor will be required to provide their TIN within the order of (1) two (2) years of making their investment or (3) 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.

DISTRIBUTION: All applications for the above mentioned information is subject to the terms of the SPV Subscription Agreement. All other information is subject to the terms of the SPV Subscription Agreement. All other information is subject to the terms of the SPV Subscription Agreement. All other information is subject to the terms of the SPV Subscription Agreement.

## ONGOING REPORTING

1. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website. In other than:

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

2. Upon posted, the annual report may be found on the issuer's website at: https://www.circleoptics.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 1361 or 1362;
2. the issuer has filed at least one annual report and has fewer than 100 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(2)(b) including any payment in full of debt securities or any complete redemption of unfavorable securities in the issuer's liquidated or divested in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird Circle Optics Subscription Agreement
SPV Subscription Agreement
Circle Optics Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Ian Gauger
Zakariya Niazi

Appendix E: Supporting Documents

the_communications_61080_145719.pdf

# Signatures

Statistical measurements or omissions of pure constitute judicial 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 - Early Bird

Early Bird Circle Optics Subscription Agreement

SPV Subscription Agreement

Circle Optics Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Ian Gauger

Zakariya Niazi

Appendix E: Supporting Documents

the_communications_61080_145719.pdf

Pursuant to the requirements of Sections 4(2)(b) and 4(c) 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.

Circle Optics, Inc.

By

Zakariya Niazi

Founder, Inventor & CEO

Pursuant to the requirements of Sections 4(2)(b) and 4(c) of the Securities Act of 1933 and Regulation Crowdfunding

1) 227.00 in avg. (the Form C and Detailed Agent Agreement has been signed by the following persons in the existence and on the dates indicated.

Ian Gauger

Chief Operating Officer
1/24/2023

Zakariya Niazi

Founder, Inventor & CEO
1/24/2023

The Form C must be signed by the issuer, its principal investor officer or officers, its principal dean of officer, its controller or principal accounting officer and is from 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 or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

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

INVEST IN CIRCLE OPTICS, INC.

World's only stitch-free panoramic multi-camera system. One click.

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

circlcoptics.com

Technology 10C Monthly Process Innovation

# LATE INVESTOR

# Mag Let

Circle Optics' camera is an industry revolutionizing technology that completely changes the way 360 imaging is done. Saying that the Hydro. Circle Optics' patented 360 degree camera, is a camera in the course that the 8-10 in a question of the longer than 4 you don't know about your home or car even from these researchers might not sound important but unless you're both below, they have probably played a huge role in your life. Even however he is based on surveillance to the screening, the market discussion potential cannot be anticipated. You can have a long position on Circle optics both for its ability to change the world or will as to improve future growth potential. I haven't even found on how 360 and his best are literally amongst the best in the world in front of optical engineering.

Instilled $25,000 this round

# Highlights

1 We see a world where panoramic cameras make robots more autonomous and aerospace safer
2 Our technology provides increased autonomy for uncrewed terrestrial and airborne systems - $10B TAM
3 Our systems will improve aircraft navigation & prevent collisions for safer operation -$200M Market*
4 We have been validated by $3.7M in contracts with NASA, Space Force, Air Force, NSF and more
5 Circle Optics received Silver recognition in Pepperdines' Most Fundable Company* List 2022
6 Circle Optics has 12 Patents awarded & pending on their method of aligning fields-of-view
7 Our team has bench strength of over 200 patents in the imaging vertical from IMAX, Kodak, and Xerox
8 You can be a part of making robots and drones more autonomous and aerospace safer - JOIN OUR MISSION

# Our Team

Zak Niazi Founder, Inventor & CEO

We can access any information we want, but I think that people are mystery curious about the world. I want to build technology that opens up experiences for as many people as possible.

Our founder was trying to figure out how to enhance Google Street View's capabilities. Processing the parallax out of 360-degree video requires a person to spend 5+ hours of time for every minute of content. The entire medium is not scalable. Creating the world's first seamless 360° camera was our intention.

Ian Gauger Chief Operations Officer

I have always considered myself a builder. I like to envision new things, think them through, and get them up and running.

Andy Kurtz Chief Research Officer

At Circle Optics there is an opportunity to not only succeed technically, but succeed in terms of business growth. Our space is unique - sparsely occupied.

Allen Krisiloff Chief Technology Officer

I am inspired by the development of new things that can change some aspect of the world. What that aspect is in this case is capturing views of the world in an inspiring way.

Jennifer Sertl Director of Marketing

Even before there were words, there were caraman paintings. I feel that imagery gets to the human experience more than any other medium.

Peter Stubler Director of Imaging Science

I was attracted to Circle Optics because of the opportunity to work in a small focused team to help develop a new technology. I believe that my diverse background allows me to contribute in many different ways.

Phil McMillen Senior Project Manager

There are jobs that were just jobs, but they didn't connect with my passion. Circle does that for me. It is because there is a connection to Circle in that I believe in what we are trying to achieve.

John Bowron Senior Optical Engineer

Circle Optics is a good fit for me because I've been able to do really cool optical design. The concept and the ideas are inspiring.

Robert Metzger Senior Optical Systems Engineer

I am here to make something that has never been made before. And to take that creation and grow the business. It's just so exciting.

Bob Stanchus Senior Mechanical Engineer

I like conceptual work and I like getting concepts delivered. You are presented with the challenge, come up a bunch of ways to do it, and figure it out. It is a really cool thing to use those skills and make something happen.

Carlos Terrero Senior Mechanical Systems Engineer

It evolves me that in the near future there will be even better ways to connect and share experiences with others around the world.

Cody Hatch Mechanical Engineer

I am an early adopter and someone always looking for that unique experience.

Thomas Bidwell Mechanical Design Engineer at Circle Optics, Inc

## The Future of 360 Immersive Experiences is in Your Hands

Circle Optics, Inc. is a B-Corp. This choice is a signal in how we value our ecosystem, including the planet, shareholders, investors, innovators and engineers across the globe. We are dedicated to the pursuit of experience that gives more people access to the past, present and future and ignites the human capacity to imagine and create.

- Circle Optics has massive growth potential and is 100% focused on developing and scaling technology that will allow you to have the capability to share your visual experiences with your friends, family, community and the world.

Do you remember the first time you used Google Street View?

What if you could share YOUR OWN live virtual experiences in real-time?

That is what we are working on!

We are raising up to $1,000,000 to make this a reality and we want YOU be part of it!

Get in early on this Circle Optics community offering and help us shape the future of immersive experiences.

Positioning

360° imaging is already part of everyday life. From accelerating the delivery of life saving resources, to ensuring aerospace safety, to enhancing surveillance capabilities for protection, to increasing immersive experiences participation, Circle Optics technology will work for you. Different from other cameras on the market which work by overlapping fields-of-view, creating perspective errors, Circle Optics works by aligning fields-of-view to produce a seamless 360° image instantly. No distortion. One click and done.

Solution

Circle Optics' method of aligning fields-of-view produces no distortion and requires no stitching, enabling your field-of-view to be accurately captured in real time. Our solution is protected by a dozen patents.

Circle Optics Technology is Different

Those requiring a wide field-of-view image have long been forced to choose between one of two flawed methods, a distortion-filled fisheye lens with resolution sacrifices or a paraflex-laden multi-camera rig that requires a time-intensive and expensive post-production process. The concept of a real-time, high-fidelity camera rig was thought to be impossible due to the insurmountable problem of paraflex distortion. This is fundamentally wrong! Other cameras rely on overlapping circular fields-of-view which contain

parallax (perspective distortion) where they meet.

Circle Optics uses polygonal (non-circular) lenses with polygonal fields-of-view that align along their edges without overlap or parallax distortion, and therefore produce a perfect video capable of being live-streamed without corrective software.

This fundamental breakthrough in the way optical systems work provides benefits in any field currently relying on wide field-of-view imaging.

#### **ROBOTICS / DRONES \$10B**

The drone industry is hampered by an inability to meet regulations to fly beyond line of sight of a human operator. Circle Optics is miniaturizing its novel camera technology under contract with NASA and NSF to enable drones to meet FAA regulations. 15 million drones are expected to fly beyond line of sight by the end of the decade, and they will need this solution to meet regulatory requirements.

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

Circle Optics' work in aerospace has been adapted to enhance autonomous systems, such as drones. From this, customer discovery has shown the significant benefits our technology provides for the increased autonomy of both terrestrial and aerial uncrewed systems. Circle Optics is miniaturizing its novel camera technology to provide emerging capabilities to both terrestrial and airborne uncrewed systems. With the ability to enhance a wide range of autonomous imaging capabilities for robots, Circle Optics will enable better self-localization and navigation allowing these systems to operate beyond line-of-sight in GPS-denied environments. Furthermore, this technology can be deployed to collect higher quality visual data for autonomous platforms. This same technology can be adapted for future use in self-driving vehicles for navigation and collision avoidance purposes.

#### **AEROSPACE / DEFENSE \$200M**

Persistent ground surveillance solutions scan our skies for threats including missiles, aircraft and UAVs to secure United States' borders, but solutions today have narrow fields-of-view that operators describe as 'looking through a straw.' Circle Optics is working with the Space Force to eliminate the straw-like view, giving full hemispheric coverage of the sky with resolution never before possible with our distortion-free optics.

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

Circle Optics' optimized camera technology will enhance situational awareness capabilities for small aircraft with its ability to produce a unified image of the surroundings instantly. These systems will improve aircraft navigation and prevent potential collisions for safer operation.

#### **IMMERSIVE EXPERIENCES / MEDIA \$122M**

Capturing content for the immersive entertainment industry costs an average \$10k per finished minute of video for stitching. Circle Optics' Hydra camera system eliminates this cost and hassle. In an instant, content is ready for the big screen and live events can be streamed in 8k resolution and with 12-bit color to dome theaters and VR headsets.

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

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

Circle Optics' Hydra camera system will make capturing content for the entertainment industry more advanced, faster, and less expensive. Hydra is the only camera that can create content at the resolution needed for dome theaters-the next generation of cinema. Hydra's unique architecture offers the ability to capture captivating and real-time 360° video that will thrive in virtual reality and dome theaters. In an instant, content is ready for the big screen and live events can be streamed in 8k resolution with 12-bit color.

## THE PROBLEM - Stitching is expensive & time-consuming

### THE SOLUTION - Aligning fields-of-view

We made the world's first seamless 360° camera!

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

We want you to be part of the Circle Optics story!

*This is a projection and can't be guaranteed.

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

Circle Optics, Inc. I (THE "SPV"),
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

[INVESTMENT AMOUNT]

[INVESTMENT DATE]

Circle Optics, Inc. 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 Circle Optics, 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 taken 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;
f. 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**

**Circle Optics, Inc. 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 Circle Optics, Inc. SECURITIES BY Circle Optics, Inc. I, A SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $1.62 per share and a $20M pre-money valuation

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%3D0001957669&first=2016

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

_No text found in this document._

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

# CIRCLE OPTICS, INC.
## SUBSCRIPTION AGREEMENT

THE SECURITIES ARE BEING OFFERED PURSUANT TO SECTION 4(A)(6) AND REGULATION CROWDFUNDING OF THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. NO FEDERAL OR STATE SECURITIES ADMINISTRATOR HAS REVIEWED OR PASSED ON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS FOR THESE SECURITIES. THERE ARE SIGNIFICANT RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN AND NO RESALE MARKET MAY BE AVAILABLE AFTER RESTRICTIONS EXPIRE. THE PURCHASE OF THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT WITHOUT A CHANGE IN THEIR LIFESTYLE.

The Board of Directors of:

Circle Optics, Inc.
260 E Main Street, Suite 6106
Rochester NY 14604

Ladies and Gentlemen:

1. Background. The undersigned understands that Circle Optics, Inc., a Delaware public benefit corporation (the "Company"), is conducting an offering (the "Offering") under Section 4(a)(6) of the Securities Act of 1933, as amended (the "Securities Act") and Regulation Crowdfunding promulgated thereunder ("Regulation Crowdfunding"). This Offering is made pursuant to the Form C of the Company that has been filed by the Company with the Securities and Exchange Commission (the "SEC") and is being made available on the Portal (as defined below), as the same may be amended from time to time (the "Form C") and the Offering Statement, which is included therein (the "Offering Statement"). The Company is offering:

- (a) to both accredited and non-accredited investors who subscribe before the Company has raised $150,000 in the Offering (such investors, the "Seed-1 Investors") up to 103,064 shares of its Series Seed-1 Preferred Stock, $0.0001 par value per share (the "Seed-1 Shares"), at a purchase price of $1.4554 per Seed-1 Share (the "Seed-1 Purchase Price"); and
- (b) to both accredited and non-accredited investors who subscribe after the Company has raised $150,000 in the Offering (such investors, the "Seed-2 Investors", and together with the Seed-1 Investors, the "Investors") up to 525,633 shares of its Series Seed-2 Preferred Stock, $0.0001 par value per share (the "Seed-2 Shares" and together with the Seed-1 Shares, the "Shares"), at a purchase price of $1.6171 per Seed-2 Share (the "Seed-2 Purchase Price" and together with the Seed-1 Purchase Price, as applicable, the "Purchase Price").

The minimum amount or target amount to be raised in the Offering is $150,000 (the "Target Offering Amount") and the maximum amount to be raised in the offering is $1,000,000 (the "Maximum Offering Amount"). If the Offering is oversubscribed beyond the Target Offering Amount, the Company will sell Shares on a basis to be determined by the Company's management. The Company is offering the Shares to prospective investors through the Wefunder crowdfunding portal (the "Portal"). The Portal is registered with the SEC, as a funding portal and is a founding portal member of the Financial Industry Regulatory Authority. The Company will pay the Portal a commission equal to 5.0% of the gross monies

4340129.10 031070-0002-000

raised in the Offering. Investors should carefully review the Form C and the accompanying Offering Statement, which are available on the website of the Portal at www.wefunder.com.

2. Subscription. Subject to the terms of this Subscription Agreement (this "Agreement"), the Form C and the related Offering Statement, the undersigned hereby subscribes to purchase the number of Shares equal to the quotient of the undersigned's subscription amount as indicated through the Portal's platform divided by the Purchase Price and shall pay the aggregate Purchase Price in the manner specified in the Form C and Offering Statement and as per the directions of the Portal through the Portal's website. Such subscription shall be deemed to be accepted by the Company only when this Agreement is countersigned on the Company's behalf. No investor may subscribe for a Share in the Offering after the Offering campaign deadline as specified in the Offering Statement and on the Portal's website (the "Offering Deadline").

# 3. Closing.

(a) Closing. Subject to Section 3(b), the closing of the sale and purchase of the Shares pursuant to this Agreement (the "Closing") shall take place through the Portal within five business days after the Offering Deadline (the "Closing Date").
(b) Closing Conditions. The Closing is conditioned upon satisfaction of all the following conditions:

(i) prior to the Offering Deadline, the Company shall have received aggregate subscriptions for Shares in an aggregate investment amount of at least the Target Offering Amount;
(ii) at the time of the Closing, the Company shall have received into the escrow account established with the Portal and the escrow agent in cleared funds, and is accepting, subscriptions for Shares having an aggregate investment amount of at least the Target Offering Amount;
(iii) the undersigned shall have agreed to become a party to, adopted and bound by, the Company's Stockholders Agreement attached hereto as Exhibit A (the "Stockholders Agreement") by executing and delivering a Joinder Agreement substantially in the form attached hereto as Exhibit B; and
(iv) the representations and warranties of the Company contained in Section 7 hereof and of the undersigned contained in Section 5 hereof shall be true and correct as of the Closing in all respects with the same effect as though such representations and warranties had been made as of the Closing.

4. Termination of the Offering; Other Offerings. The undersigned understands that the Company may terminate the Offering at any time. The undersigned further understands that during and following termination of the Offering, the Company may undertake offerings of other securities, which may or may not be on terms more favorable to an investor than the terms of this Offering.
5. Representations. The undersigned represents and warrants to the Company and the Company's agents as follows:

(a) The undersigned understands and accepts that the purchase of the Shares involves various risks, including the risks outlined in the Form C, the accompanying Offering Statement,

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and in this Agreement. The undersigned can bear the economic risk of this investment and can afford a complete loss thereof; the undersigned has sufficient liquid assets to pay the full purchase price for the Shares; and the undersigned has adequate means of providing for its current needs and possible contingencies and has no present need for liquidity of the undersigned's investment in the Company.

(b) The undersigned acknowledges that at no time has it been expressly or implicitly represented, guaranteed or warranted to the undersigned by the Company or any other person that a percentage of profit and/or amount or type of gain or other consideration will be realized because of the purchase of the Shares.

(c) If the undersigned is not an "accredited investor" as defined in Rule 501(a) of Regulation D under the Securities Act, then including the amount set forth on the signature page hereto, in the past 12-month period, the undersigned has not exceeded the investment limit as set forth in Rule 100(a)(2) of Regulation Crowdfunding.

(d) The undersigned has received and reviewed a copy of the Form C and accompanying Offering Statement. With respect to information provided by the Company, the undersigned has relied solely on the information contained in the Form C and accompanying Offering Statement to make the decision to purchase the Shares.

(e) The undersigned confirms that it is not relying and will not rely on any communication (written or oral) of the Company, the Portal, or any of their respective affiliates, as investment advice or as a recommendation to purchase the Shares. It is understood that information and explanations related to the terms and conditions of the Shares provided in the Form C and accompanying Offering Statement or otherwise by the Company, the Portal or any of their respective affiliates shall not be considered investment advice or a recommendation to purchase the Shares, and that neither the Company, the Portal nor any of their respective affiliates is acting or has acted as an advisor to the undersigned in deciding to invest in the Shares. The undersigned acknowledges that neither the Company, the Portal nor any of their respective affiliates have made any representation regarding the proper characterization of the Shares for purposes of determining the undersigned's authority or suitability to invest in the Shares.

(f) The undersigned is familiar with the business and financial condition and operations of the Company, all as generally described in the Form C and accompanying Offering Statement. The undersigned has had access to such information concerning the Company and the Shares as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Shares.

(g) The undersigned understands that, unless the undersigned notifies the Company in writing to the contrary at or before the Closing, each of the undersigned's representations and warranties contained in this Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by the undersigned.

(h) The undersigned acknowledges that the Company has the right in its sole and absolute discretion to abandon this Offering at any time prior to the completion of the Offering. This Agreement shall thereafter have no force or effect and the Company shall return any previously paid subscription price of the Shares, without interest thereon, to the undersigned.

(i) The undersigned understands that no federal or state agency has passed upon the merits or risks of an investment in the Shares or made any finding or determination concerning the fairness or advisability of this investment.

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(j) The undersigned has up to 48 hours before the Offering Deadline to cancel the purchase and get a full refund.

(k) The undersigned confirms that the Company has not (i) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) and of investment in the Shares or (ii) made any representation to the undersigned regarding the legality of an investment in the Shares under applicable legal investment or similar laws or regulations. In deciding to purchase the Shares, the undersigned is not relying on the advice or recommendations of the Company and the undersigned has made its own independent decision, alone or in consultation with its investment advisors, that the investment in the Shares is suitable and appropriate for the undersigned.

(l) The undersigned has such knowledge, skill and experience in business, financial and investment matters that the undersigned is capable of evaluating the merits and risks of an investment in the Shares. With the assistance of the undersigned's own professional advisors, to the extent that the undersigned has deemed appropriate, the undersigned has made its own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Shares and the consequences of this Agreement. The undersigned has considered the suitability of the Shares as an investment in light of its own circumstances and financial condition and the undersigned is able to bear the risks associated with an investment in the Shares and its authority to invest in the Shares.

(m) The undersigned is acquiring the Shares solely for the undersigned's own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Shares. The undersigned understands that the Shares have not been registered under the Securities Act or any state securities laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of the undersigned and of the other representations made by the undersigned in this Agreement. The undersigned understands that the Company is relying upon the representations and agreements contained in this Agreement (and any supplemental information provided by the undersigned to the Company or the Portal) for the purpose of determining whether this transaction meets the requirements for such exemptions.

(n) The undersigned understands that the Shares are restricted from transfer for a period of time under applicable federal securities laws and that the Securities Act and the rules of the SEC provide in substance that the undersigned may dispose of the Shares only pursuant to an effective registration statement under the Securities Act, or as described in Section 227.501 of Regulation Crowdfunding, after which certain state restrictions may apply. The undersigned understands that the Company has no obligation or intention to register any of the Shares, or to take action so as to permit sales pursuant to the Securities Act. Even if and when the Shares become freely transferable, a secondary market in the Shares may not develop. Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Shares for an indefinite period of time.

(o) The undersigned agrees that the undersigned will not sell, assign, pledge, give, transfer or otherwise dispose of the Shares or any interest therein or make any offer or attempt to do any of the foregoing, except pursuant to Section 227.501 of Regulation Crowdfunding.

(p) If the undersigned is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the undersigned hereby represents and warrants to the Company that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be

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obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The undersigned's subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the undersigned's jurisdiction.

6. HIGH RISK INVESTMENT. THE UNDERSIGNED UNDERSTANDS THAT AN INVESTMENT IN THE SHARES INVOLVES A HIGH DEGREE OF RISK. The undersigned acknowledges that (a) any projections, forecasts or estimates as may have been provided to the undersigned are purely speculative and cannot be relied upon to indicate actual results that may be obtained through this investment; any such projections, forecasts and estimates are based upon assumptions which are subject to change and which are beyond the control of the Company or its management; (b) the tax effects which may be expected by this investment are not susceptible to absolute prediction, and new developments and rules of the Internal Revenue Service (the "IRS"), audit adjustment, court decisions or legislative changes may have an adverse effect on one or more of the tax consequences of this investment; and (c) the undersigned has been advised to consult with his/her/its own advisor regarding legal matters and tax consequences involving this investment.

7. Company Representations. The undersigned understands that upon issuance of to the undersigned of any Shares, the Company will be deemed to have made following representations and warranties to the undersigned as of the date of such issuance:

(a) Corporate Power. The Company has been duly incorporated as corporation under the laws of the State of Delaware and, has all requisite legal and corporate power and authority to conduct its business as currently being conducted and to issue and sell the Shares to the undersigned pursuant to this Agreement.

(b) Enforceability. This Agreement, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

(c) Valid Issuance. The Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement and the Form C, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer arising under this Agreement, the Stockholders Agreement, the Second Amended and Restated Certificate of Incorporation of the Company, as the same may be amended from time to time (the "Restated Charter") and the Bylaws of the Company, as amended (the "Bylaws"), the Form C or under applicable state and federal securities laws and liens or encumbrances created by or imposed by a subscriber.

(d) No Conflict. The execution, delivery and performance of and compliance with this Agreement and the issuance of the Shares will not result in any violation of, or conflict with, or constitute a default under, the Restated Charter and Bylaws, and will not result in any violation of, or conflict with, or constitute a default under, any agreements to which the Company is a party or by which it is bound, or any statute, rule or regulation, or any decree of any court or governmental agency or body having jurisdiction over the Company, except for such violations, conflicts, or defaults which would not individually or in the aggregate, have a material adverse effect on the business, assets, properties, financial condition or results of operations of the Company.

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8. Indemnification. The undersigned agrees to indemnify and hold harmless the Company and its directors, officers and agents (including legal counsel) from any and all damages, losses, costs and expenses (including reasonable attorneys' fees) that they, or any of them, may incur by reason of the undersigned's failure, or alleged failure, to fulfill any of the terms and conditions of this subscription or by reason of the undersigned's breach of any of the undersigned's representations and warranties contained herein or any obligations under the Stockholders Agreement.

9. Obligations Irrevocable. Following the Closing, the obligations of the undersigned shall be irrevocable.

10. Legend. The certificates, book entry or other form of notation representing the Shares sold pursuant to this Agreement will be notated with a legend or designation, which communicates in some manner that the Shares were issued pursuant to Section 4(a)(6) of the Securities Act and may only be resold pursuant to Rule 501 of Regulation Crowdfunding.

11. Notices.

(a) All notices or other communications given or made hereunder shall be in writing and shall be sent by electronic mail, registered or certified mail (return receipt requested, postage prepaid) or otherwise actually delivered, to the undersigned's address provided to the Portal or to the Company at the address set forth at the beginning of this Agreement, or such other place as the undersigned or the Company from time to time designate in writing.

(b) The undersigned consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "DGCL"), as amended or superseded from time to time, by electronic transmission pursuant to Section 232 of the DGCL (or any successor thereto) at the e-mail address set forth in Section 13(a). To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected e-mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. The undersigned agrees to promptly notify the Company of any change in its e-mail address, provided that failure to do so shall not affect the foregoing.

12. Governing Law. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of Delaware without regard to the principles of conflicts of laws.

13. Submission to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Shares by the undersigned ("Proceedings"), the undersigned irrevocably submits to the jurisdiction of the federal or state courts located in the State of Delaware, which submission shall be exclusive unless none of such courts has lawful jurisdiction over such Proceedings.

14. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by all parties.

15. Waiver; Amendment. Neither this Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

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16. Waiver of Jury Trial. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

17. Invalidity of Specific Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under the present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement.

18. Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

20. Electronic Execution and Delivery. A digital reproduction, portable document format (".pdf") or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by electronic signature (including signature via DocuSign or similar services), electronic mail or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes.

21. Binding Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.

22. Survival. All representations, warranties and covenants contained in this Agreement shall survive (i) the acceptance of the subscription by the Company, (ii) changes in the transactions, documents and instruments described in the Form C which are not material or which are to the benefit of the undersigned and (iii) the death or disability of the undersigned.

23. Notification of Changes. The undersigned hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the closing of the purchase of the Shares pursuant to this Agreement, which would cause any representation, warranty, or covenant of the undersigned contained in this Agreement to be false or incorrect.

[End of Page]

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7

IN WITNESS WHEREOF, the parties have executed this agreement as of [EFFECTIVE DATE].

Number of Shares: [SHARES]

Aggregate Purchase Price: $[AMOUNT]

COMPANY:

Circle Optics, Inc.

Founder Signature

Name: [FOUNDER NAME]

Title: [FOUNDER TITLE]

Read and Approved (For IRA Use Only):

SUBSCRIBER:

[ENTITY NAME]

By:

Investor Signature

By:

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

The Subscriber is an “accredited investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☐ Not Accredited

SIGNATURE PAGE

TO

SUBSCRIPTION AGREEMENT

## EXHIBIT A

### Form of Stockholders Agreement

(See Attached)

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# CIRCLE OPTICS, INC.

# STOCKHOLDERS AGREEMENT

THIS STOCKHOLDERS AGREEMENT (this "Agreement") is entered into as of January 24, 2023 (the "Effective Date"), by and among CIRCLE OPTICS, INC., a Delaware public benefit corporation (the "Company"), the Common Holders (as defined below) listed on the Schedule A attached hereto and the Investors (as defined below) listed on Schedule B attached hereto.

# RECITALS

WHEREAS, the Common Holders are the beneficial owners of the shares of the Common Stock (as defined below) and/ or the Class F Stock (as defined below) set forth opposite such Common Holder's name on Schedule A attached hereto;

WHEREAS, the Company has issued to certain of the Investors shares of Preferred Stock (as defined below) (the "Equity Financing") pursuant Subscription Agreements under which each such Investor has subscribed for and purchased the number of shares of Preferred Stock set forth opposite such Investor's name on Schedule B attached hereto;

WHEREAS, in connection with the Equity Financing, the Company has issued to certain of the Investors shares of Preferred Stock upon the conversion of SAFEs previously issued by the Company pursuant to which each such Investor has received the number of shares of Preferred Stock set forth opposite such Investor's name on Schedule B attached hereto; and

WHEREAS, the parties desire to enter into this Agreement in order to promote their general interests and those of the Company by making provisions in this Agreement relating to the management, control and operation of the Company, to restrict the transfer of shares of the Company, and to provide for sales of shares of the Company under certain circumstances.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the parties hereto agree as follows:

1. Definitions. As used in this Agreement, the following terms will have the following meanings:

"Affiliate" means, with respect to any specified Investor, any other Investor who directly or indirectly, controls, is controlled by or is under common control with such Investor, including, without limitation, any general partner, managing member, officer, director or trustee of such Investor, or any venture capital fund or other investment fund now or hereafter existing which is controlled by 1 or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Investor. For the avoidance of doubt, any Investor who is party to a voting trust or who issues a proxy to another Person shall not be deemed an Affiliate of any other Investor who is party to such voting trust or who has also issued a proxy to such Person.

"Board" means the Company's Board of Directors.

"Class F Stock" means the Class F Stock, par value par value $0.0001 per share, of the Company.

"Common Holder" means the persons named on Schedule A attached hereto, each person to whom the rights of a Common Holder are assigned pursuant to Section 9(a) and in accordance with Section 3,

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each person who hereafter becomes a party to this Agreement pursuant to Section 9(c) and any one of them, as the context may require.

“Common Stock” means the Common Stock, par value $0.0001 per share, of the Company.

“Investor” means the persons named on Schedule B attached hereto, each person to whom the rights of an Investor are assigned pursuant to Section 9(a) and in accordance with Section 3, each person who hereafter becomes a party to this Agreement pursuant to Section 9(b) and any one of them, as the context may require.

“Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds at least 300,000 shares of Preferred Stock (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

“Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.

“Preferred Stock” means, collectively, (i) the Series Seed Preferred Stock, $0.0001 par value per share, of the Company, (ii) the Series Seed-1 Preferred Stock, $0.0001 par value per share, of the Company, (iii) the Series Seed-2 Preferred Stock, $0.0001 par value per share, of the Company, (iv) the Series Seed-3 Preferred Stock, $0.0001 par value per share, of the Company, (v) the Series Seed-4 Preferred Stock, $0.0001 par value per share, of the Company, and (vi) the Series Seed-5 Preferred Stock, $0.0001 par value per share, of the Company.

“Restated Certificate” means the Second Amended and Restated Certificate of Incorporation of the Company filed with Secretary of State of the State of Delaware on January 24, 2023, as the same may hereafter be amended.

“Securities Act” means the Securities Act of 1933, as amended.

“Shares” means all shares of Common Stock, Class F Stock and Preferred Stock, and any other share of capital stock of the Company issued hereinafter.

“Stockholder” means each Common Holder and Investor, and any transferee thereof.

“Transfer” means any sale, transfer, assignment, pledge or other disposition, directly or indirectly, of any interest in any Shares (whether with or without consideration and whether voluntarily or involuntarily or by operation of law).

## 2. Information Rights.

(a) Financial Information. The Company will furnish to each Major Investor (i) annual unaudited financial statements for each fiscal year of the Company, including an unaudited balance sheet as of the end of such fiscal year, an unaudited statement of operations and an unaudited statement of cash flows of the Company for such year, all prepared in accordance with generally accepted accounting principles and practices; and (ii) quarterly unaudited financial statements for each fiscal quarter of the Company (except the last quarter of the Company’s fiscal year), including an unaudited balance sheet as of the end of such fiscal quarter, an unaudited statement of operations and an unaudited statement of cash flows of the Company for such fiscal quarter, all prepared in accordance with generally accepted accounting principles and practices, subject to changes resulting from normal year-end audit adjustments. If the Company has audited records of any of the foregoing, it shall provide those in lieu of the unaudited versions.

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(b) Inspection Rights. The Company shall permit each Major Investor to visit and inspect the Company's properties, to examine its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such reasonable times as may be requested by such Major Investor. Each Stockholder who is not a Major Investor hereby waives any rights such Stockholder may otherwise have to receive, review or inspect, directly or indirectly, any other Stockholder's information set forth in the books and records of the Company, including as set forth on Schedule A or Schedule B attached hereto.

(c) Confidentiality. Each Major Investor agrees that such Major Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement other than to any of the Major Investor's attorneys, accountants, consultants, and other professionals, to the extent necessary to obtain their services in connection with monitoring the Major Investor's investment in the Company. Notwithstanding anything to the contrary set forth in this Agreement, (i) no Major Investor by reason of this Agreement shall have access to any trade secrets or confidential information of the Company and (ii) the Company shall not be required to comply with any information rights in respect of any Major Investor whom the Company reasonably determines to be a competitor or an officer, employee, director or holder of ten percent (10%) or more of a competitor.

### 3. Restrictions on Transfer.

(a) Joinder Agreement. Prior to consummation of any Transfer by any Stockholder of any Shares, such Stockholder shall

(i) notify the Company of the proposed Transfer and furnish the Company with a statement of the circumstances surrounding the proposed Transfer, and, at the expense of such Stockholder or its transferee, with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such securities under the Securities Act; and

(ii) cause the transferee thereof to execute and deliver to the Company a Joinder Agreement in substantially the form attached to this Agreement as Exhibit A (a "Joinder Agreement") and agree to be bound by the terms and conditions of this Agreement. Upon any Transfer by any Stockholder of any Shares, in accordance with the terms of this Agreement, the transferee thereof shall be substituted for, and shall assume all the rights and obligations under this Agreement of, the transferor thereof.

(b) Compliance with Laws. Notwithstanding any other provision of this Agreement, each Stockholder agrees that such Stockholder will not, directly or indirectly, consummate any Transfer of Shares except as permitted under the Securities Act and other applicable federal or state securities laws, and only in compliance with this Agreement.

(c) Failure to Comply. Any purported or attempted Transfer of Shares by a Stockholder in violation of, or without substantial compliance with, the terms and conditions of this Agreement shall be deemed for all purposes to be without legal effect and void ab initio and shall not be recognized by the Company nor recorded in the stock ownership ledger or records of the Company.

(d) Market Stand-Off. If so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any underwritten or Regulation A+ offering of securities of the Company under the Securities Act, no Stockholder shall Transfer any Shares or other securities of the Company during the 180-day period following the effective date of a registration

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or offering statement of the Company filed under the Securities Act for such public offering or Regulation A+ offering or underwriting (or such shorter period as may be requested by the Managing Underwriter and agreed to by the Company) (the "Market Standoff Period"), provided, however, that, if during the last 17 days of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs, or before the expiration of the restricted period the Company announces that it will release earnings results during the 16-day period beginning on the last day of the restricted period, and if the Company's securities are listed on the Nasdaq Stock Market and Rule 2711 thereof applies, then the Market Standoff Period shall extend until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event; and provided, further, that such automatic extension will not apply to the extent that the Financial Industry Regulatory Authority has amended or repealed NASD Rule 2711(f)(4), or has otherwise provided written interpretive guidance regarding such rule, in each case, so as to eliminate the prohibition of any broker, dealer, or member of a national securities association from publishing or distributing any research report, with respect to the securities of an "emerging growth company" (as defined in the Jumpstart Our Business Startups Act of 2012) before or after the expiration of any agreement between the broker, dealer, or member of a national securities association and the emerging growth company or its stockholders that restricts or prohibits the sale of securities held by the emerging growth company or its stockholders after the initial public offering date. In no event will the Market Standoff Period extend beyond 215 days after the effective date of the registration statement. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

### 4. Drag Along Right.

(a) Actions to be Taken. If a Deemed Liquidation Event (as defined in the Restated Certificate) is approved by each of (i) the holders of a majority of the then outstanding shares of Common Stock (other than those issued or issuable upon conversion of the shares of Preferred Stock) and Class F stock, voting together as a single class, (ii) the holders of a majority of the shares of Common Stock then issued or issuable upon conversion of the shares of Preferred Stock then-outstanding, and (iii) the Board, then each Stockholder shall vote (in person, by proxy or by action by written consent, as applicable) all Shares now or hereafter directly or indirectly owned of record or beneficially by such Stockholder in favor of, and adopt, such Deemed Liquidation Event and to execute and deliver all related documentation and take such other action in support of the Deemed Liquidation Event as may reasonably be requested by the Company to carry out the terms and provision of this Section 4(a), including executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents. The obligation of any party to take the actions required by this Section 4(a) will not apply to a Deemed Liquidation Event if the other party involved in such Deemed Liquidation Event is an affiliate or stockholder of the Company holding more than ten percent (10%) of the voting power of the Company.

(b) Exceptions to Drag Along Right. Notwithstanding the foregoing, a Stockholder will not be required to comply with Section 4(a) above in connection with any proposed sale of the Company that would be a Deemed Liquidation Event (a "Proposed Sale") unless:

(i) any representations and warranties to be made by the Stockholder in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including representations and warranties that (w) the Stockholder holds all right, title and interest in and to the Shares the Stockholder purports to hold, free and clear of all liens and encumbrances, (x) the obligations of the Stockholder in connection with the transaction have been duly authorized, if applicable, (y) the documents to be entered into by the Stockholder have been duly executed by the Stockholder and delivered to

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the acquirer and are enforceable against the Stockholder in accordance with their respective terms and, (z) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Stockholder's obligations thereunder, will cause a breach or violation of the terms of any agreement, law, or judgment, order, or decree of any court or governmental agency;

(ii) the Stockholder will not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Proposed Sale, other than the Company (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties, and covenants of the Company as well as breach by any stockholder of any identical representations, warranties and covenants provided by all stockholders);
(iii) the liability for indemnification, if any, of the Stockholder in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Stockholders in connection with such Proposed Sale, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any identical representations, warranties, and covenants provided by all stockholders), and except as required to satisfy the liquidation preference of the Preferred Stock as set forth in the Restated Certificate, if any, is pro rata in proportion to, and does not exceed, the amount of consideration paid to such Stockholder in connection with such Proposed Sale;
(iv) liability will be limited to the Stockholder's applicable share (determined based on the respective proceeds payable to each Stockholder in connection with the Proposed Sale in accordance with the provisions of the Restated Certificate) of a negotiated aggregate indemnification amount that applies equally to all Stockholders but that in no event exceeds the amount of consideration otherwise payable to the Stockholder in connection with the Proposed Sale, except with respect to claims related to fraud by the Stockholder, the liability for which need not be limited as to the Stockholder;
(v) upon the consummation of the Proposed Sale, (i) each holder of each class or series of Shares will receive the same form of consideration for his/her/its shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock unless the holders of at least a majority of Preferred Stock elect otherwise, (ii) each holder of a series of Preferred Stock will receive the same amount of consideration per share of such series of Preferred Stock as is received by other holders in respect of their shares of such same series, (iii) each holder of Common Stock or Class F Stock will receive the same amount of consideration per share of Common Stock or Class F Stock, as applicable, as is received by other holders in respect of their shares of Common Stock or Class F Stock, and (iv) unless the holders of at least a majority of the Preferred Stock elect to receive a lesser amount, the aggregate consideration receivable by all holders of the Preferred Stock, Common Stock and Class F Stock shall be allocated among the holders of Preferred Stock, Common Stock and Class F Stock on the basis of the relative liquidation preferences to which the holders of each respective series of Preferred Stock and the holders of Common Stock and Class F Stock are entitled in a Deemed Liquidation Event (assuming for this purpose that the Proposed Sale is a Deemed Liquidation Event) in accordance with the Restated Certificate in effect immediately prior to the Proposed Sale.

# 5. Participation Right.

(a) General. Each Major Investor has the right of first refusal to purchase such Major Investor's Pro Rata Share (as defined below) of any New Securities (as defined below) that the Company may from

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time to time issue after the date of this Agreement, provided, however, a Major Investor will have no right to purchase any such New Securities if the Major Investor cannot demonstrate to the Company's reasonable satisfaction that such Major Investor is at the time of the proposed issuance of such New Securities an "accredited investor" as such term is defined in Regulation D promulgated under the Securities Act. A Major Investor's "Pro Rata Share" means the ratio of (i) the number of shares of Common Stock issued or issuable upon conversion of the Shares owned by such Major Investor, to (ii) the sum of (x) the total number of Shares (on an as-converted basis) then issued and outstanding, assuming exercise or conversion of all options, warrants and other convertible securities and (y) all Shares reserved and available for future issuance under any equity incentive or similar plan.

(b) New Securities. For the purposes hereof, the term "New Securities" means any Common Stock, Class F Stock or Preferred Stock, whether now authorized or not, and rights, options or warrants to purchase Common Stock, Class F Stock or Preferred Stock, and securities of any type whatsoever that are, or may become, convertible or exchangeable into Common Stock, Class F Stock or Preferred Stock; provided, however, that the term "New Securities" does not include: (i) shares of Common Stock or Class F Stock issued or issuable upon conversion of any outstanding shares of Preferred Stock; (ii) shares of Common Stock, Class F Stock or Preferred Stock issuable upon exercise of any options, warrants or rights to purchase any securities of the Company outstanding as of the Effective Date and any securities issuable upon the conversion thereof; (iii) shares of Common Stock, Class F Stock or Preferred Stock issued in connection with any stock split or stock dividend or recapitalization; (iv) shares of Common Stock or Class F Stock (or options, warrants or rights therefor) granted or issued hereafter to employees, officers, directors, contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the Board; (e) any other Shares (and/or options or warrants therefor) issued or issuable primarily for other than equity financing purposes and approved by the Board; and (f) shares of Common Stock issued or issuable by the Company to the public pursuant to a registration statement or offering statement (under Regulation A) filed under the Securities Act.

(c) Procedures. If the Company proposes to undertake an issuance of New Securities, it shall give to each Major Investor a written notice of its intention to issue New Securities (the "Notice"), describing the type of New Securities and the price and the general terms upon which the Company proposes to issue such New Securities given in accordance with Section 9(d). Each Major Investor shall have ten (10) days from the date such Notice is effective, as determined pursuant to Section 9(d) based upon the manner or method of notice, to agree in writing to purchase such Major Investor's Pro Rata Share of such New Securities for the price and upon the general terms specified in the Notice by giving written notice to the Company and stating therein the quantity of New Securities to be purchased (not to exceed such Major Investor's Pro Rata Share).

(d) Failure to Exercise. If one or more Major Investors fail to exercise in full the right of first refusal within such 10 day period (or if such right of first refusal is duly waived on behalf of all Major Investors in accordance with the terms hereof), then the Company shall have 150 days thereafter to sell the New Securities with respect to which the Major Investors' rights of first refusal hereunder were not exercised, at a price and upon general terms not materially more favorable to the purchasers thereof than specified in the Company's Notice to the Major Investors. If the Company has not issued and sold the New Securities within such 150-day period, then the Company shall not thereafter issue or sell any New Securities without again first offering such New Securities to the Major Investors pursuant to this Section 5(d).

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6. Legend. Each certificate, instrument, or book entry representing Shares held by the Stockholders shall be notated with the following legend:

THE SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN STOCKHOLDERS AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

Each Stockholder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this Section 6 above to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement at the request of the holder.

7. Term and Termination. Unless terminated earlier pursuant to the terms of this Agreement, the rights, duties and obligations hereunder will terminate immediately prior to the closing of the Company's initial public offering of Common Stock pursuant to an effective registration statement filed under the Securities Act or a Deemed Liquidation Event. Notwithstanding anything to the contrary set forth in this Agreement, Section 2(c) and this Section 7 will survive any termination of this Agreement.

8. Amendments and Waivers. Any term of this Agreement may be amended, terminated or waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company, the Common Holders holding a majority of the then-outstanding shares of Common Stock (other than shares of Common Stock issued on conversion of Preferred Stock) and Class F Stock (voting as a single class) and the Investors holding a majority of the then-outstanding shares of Preferred Stock (or Common Stock issued on conversion thereof). Notwithstanding the foregoing, the addition of a party to this Agreement pursuant to the Transfer of Shares in accordance with Section 3 or pursuant to Section 9(b) or (c) will not require any further consent. Any amendment or waiver effected in accordance with this Section 8 will be binding upon the Investors, the Common Holders, each transferee of the shares of Preferred Stock (or the Common Stock issuable upon conversion thereof), Class F Stock or Common Stock from an Investor or Common Holder, as applicable, and each future holder of all such securities, and the Company. It is specifically intended that entering into the Next Financing Agreements in a form substantially similar to the form agreements set as forth as Model Legal Documents on http://www.nvca.org shall be considered an amendment to this Agreement, provided that it is done in accordance with this Section 8.

### 9. General Provisions.

(a) Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties to this Agreement or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

(b) Additional Investors. In the event that after the date of this Agreement, the Company issues additional shares of Preferred Stock, as a condition to the issuance of such shares the Company shall require that any purchaser of such shares become a party to this Agreement by executing and delivering (i) a Joinder Agreement in the form attached to this Agreement as Exhibit A, or (ii) a counterpart signature page hereto

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as an Investor hereunder. In either event, each such person shall thereafter be deemed an Investor and Stockholder for all purposes under this Agreement.

(c) Additional Common Holders. In the event that after the date of this Agreement, the Company issues shares of Common Stock or Class F Stock, or options to purchase Common Stock or Class F Stock, to any employee or consultant, which shares or options would collectively constitute with respect to such employee or consultant (taking into account all shares of Common Stock, Class F Stock, options and other purchase rights held by such employee or consultant) two percent (2%) or more of the then outstanding Shares (treating for this purpose all Shares issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised or converted), the Company shall, as a condition to such issuance, require that any such employee or consultant become a party to this Agreement by executing and delivering (i) a Joinder Agreement in the form attached hereto as Exhibit A or (ii) a counterpart signature page hereto as a Common Holder. In either event, each such person shall thereafter be deemed a Common Holder and Stockholder for all purposes under this Agreement.

(d) Notices.

(i) All notices and other communications given or made pursuant to this Agreement must be in writing and will be deemed to have been given upon the earlier of actual receipt or: (w) personal delivery to the party to be notified, (x) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (y) 5 days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (z) 1 business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications must be sent to the respective parties at their address as set forth on the signature page or Schedule A or Schedule B, as applicable, or to such address or electronic mail address as subsequently modified by written notice given in accordance with this Section 9(d).

(ii) Subject to the limitations set forth in Delaware General Corporation Law §232(e), each Stockholder consents to the delivery of any notice to stockholders given by the Company under the Delaware General Corporation Law or the Restated Certificate or the Company's bylaws by (x) electronic mail to the electronic mail address for each Investor set forth on Schedule A or Schedule B, as applicable (or to any other electronic mail address for the Investor in the Company's records), (y) posting on an electronic network together with separate notice to the Investor of such specific posting or (z) any other form of electronic transmission (as defined in the Delaware General Corporation Law) directed to the Investor. This consent may be revoked by an Investor by written notice to the Company and may be deemed revoked in the circumstances specified in Delaware General Corporation Law §232.

(e) Governing Law. This Agreement shall be construed, governed by, interpreted, and applied according to the law of the State of Delaware, without regard to the conflict of laws principles of any jurisdiction.

(f) Dispute Resolution. Each party (i) hereby irrevocably and unconditionally submits to the personal jurisdiction of the State of Delaware for the purpose of any suit, action, or other proceeding arising out of or based upon this Agreement; (ii) shall not commence any suit, action or other proceeding arising out of or based upon this Agreement except in the State of Delaware; and (iii) hereby waives, and shall not assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject to the personal jurisdiction of the State of Delaware, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that

4348511.3 031070-0002-000

the venue of the suit, action or proceeding is improper or that this Agreement, or the subject matter hereof and thereof may not be enforced in or by the State of Delaware.

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

(g) Aggregation of Stock. All Shares held or acquired by Affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

(h) Indemnification; Offset; Specific Enforcement. Each Stockholder hereby agrees to indemnify and hold the Company harmless from and against any and all damages and expenses (including reasonable attorneys' fees and expenses) suffered or incurred by the Company as a result of such Stockholder's breach of any provision of this Agreement. In the event of any such breach by a Stockholder, the Company shall be entitled, in addition to any other remedies available to it under this Agreement, at law or in equity, to deduct or collect such damages and expenses from any amounts otherwise due to such Stockholder from the Company, including, without limitation, dividend, tax and other distributions owed with respect to the Shares. Each Stockholder recognizes and agrees that a breach of any of the provisions of this Agreement would cause irreparable injury to the Company, which could not be fully measured or compensated by money damages and for which there would be no other adequate remedy at law, and, therefore, hereby agrees that, in the event of such a breach, the Company shall be entitled to obtain temporary restraining orders and temporary and permanent injunctions restraining further violations of and/or requiring compliance with this Agreement, in addition to such other legal and/or equitable relief as may be appropriate.

(i) Entire Agreement. This Agreement constitute the entire agreement between the parties with respect to the subject matter contained herein and therein and supersedes all prior agreements and understandings between the parties with respect to such subject matter.

(j) Severability. If any provision of this Agreement, or the application of any provision of this Agreement is, or shall be, unenforceable, the rights and obligations of the parties shall be construed and enforced with that provision limited so as to make it enforceable to the greatest extent allowed by law or, if it is totally unenforceable, as if this Agreement did not contain that particular provision.

(k) No Waiver. No waiver or failure by either party hereto to exercise any option, right or privilege under the terms of this Agreement on any occasion or occasions shall be construed to be a waiver of the same on any other occasion or of any other option, right or privilege.

4348511.3 031070-0002-000

(l) Interpretation. The division of this Agreement into sections and the use of captions and headings in connection therewith are solely for convenience and shall have no legal effect in construing the provisions of this Agreement. When the context in which the words are used in this Agreement that such is the intent, words in the singular shall include the plural and vice versa, and words of the masculine gender shall include the feminine and neuter genders and vice versa.

(m) Representation by Counsel. The language used in this Agreement will be deemed to be the language chosen by the Stockholders and the Company to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty a provision should be construed against the draftsman will be applied against any party hereto. Each party hereto acknowledges that (i) the Agreement was initially prepared by Davis+Gilbert LLP ("Davis+Gilbert"), legal counsel representing the Company; (ii) Davis+Gilbert was acting solely on behalf of the Company and not any other Stockholder, individually or collectively; (iii) each Stockholder has been advised to seek independent legal and financial counsel with respect to his/her/its execution of the Agreement, has had the opportunity to do so and has freely executed this Agreement after full and careful consideration of its terms; (iv) the statements made in this Section 9(m) may be relied upon by the Company and by Davis+Gilbert, or their respective successors in interest; (v) each party hereto has been advised of the conflict of interest and has agreed to waive any conflict of interest that may arise as a result of the involvement of Davis+Gilbert; and (vi) Davis+Gilbert is permitted to represent the Company after the date of this Agreement without the need for additional consent or waiver by any Stockholder.

(n) Counterparts. This Agreement and the signature pages hereto may be executed in any number of counterparts, each of which shall for all purposes constitute one agreement that is binding on the parties hereto. This Agreement may also be executed by the use of counterpart signature pages and all executed PDF, facsimile or photocopies of any counterpart signature page shall be deemed to be an original.

[END OF AGREEMENT. SIGNATURE PAGE FOLLOWS.]

4348511.3 031070-0002-000

IN WITNESS WHEREOF, the undersigned has executed this Stockholders Agreement as of the date set forth below.

# **CIRCLE OPTICS, INC.**

By: Founder Signature

Name: [FOUNDER NAME]

Title: [FOUNDER TITLE]

Date: [EFFECTIVE DATE]

SIGNATURE PAGE TO CIRCLE OPTICS INC.
STOCKHOLDERS AGREEMENT

4348511.3 031070-0002-000

# SCHEDULE A

# COMMON HOLDERS

| Stockholder | Shares of Common Stock | Shares of Class F Stock |
| --- | --- | --- |

4348511.3 031070-0002-000

# SCHEDULE B

# INVESTORS

| Stockholder | Shares of Preferred Stock |
| --- | --- |

4348511.3 031070-0002-000

## EXHIBIT B

### Form of Joinder Agreement

(See Attached)

4340129.9 031070-0002-000

# **Exhibit A**

# **FORM OF JOINDER AGREEMENT**

The undersigned is executing and delivering this Joinder Agreement pursuant to the terms of that certain Stockholders Agreement of Circle Optics, Inc., a Delaware public benefit corporation (the "Company"), dated as of January 24, 2023 (the "Stockholders Agreement"), by and among the Company and the stockholders party thereto. Capitalized terms used but not defined in this Joinder Agreement shall have the respective meanings ascribed to such terms in the Stockholders Agreement. By the execution of this Joinder Agreement, the Holder agrees as follows:

1. Acknowledgement. The undersigned acknowledges that the undersigned has acquired certain Shares or options, warrants, or other rights to purchase such Shares (the "Options"), by reason of one of the following (Check the correct box):

☐ As a transferee of Shares from a party in such party's capacity as an "Investor", and after such transfer, the undersigned shall be considered an "Investor" for all purposes of the Agreement.
☐ As a transferee of Shares from a party in such party's capacity as a "Common Holder", and after such transfer, the undersigned shall be considered a "Common Holder" for all purposes of the Agreement.
☑ As a new "Investor" in accordance with Section 9(b) of the Stockholders Agreement, in which case the undersigned will be an "Investor" for all purposes of the Agreement.
☐ As a new "Common Holder" in accordance with Section 9(c) of the Stockholders Agreement, in which case the undersigned will be a "Common Holder" for all purposes of the Agreement.

2. Agreement. The undersigned hereby (a) agrees that the Shares, Options, and any other shares of capital stock or securities required by the Stockholders Agreement to be bound thereby, shall be bound by and subject to the terms of the Stockholders Agreement and (b) adopts the Stockholders Agreement with the same force and effect as if the Undersigned were originally a party thereto.

3. Notice. Any notice required or permitted by the Stockholders Agreement shall be given to the undersigned at the address or listed below the undersigned's signature hereto.

Accordingly, the undersigned has executed and delivered this Joinder Agreement as of [EFFECTIVE DATE] .

*Investor Signature*

Signature of Stockholder

[INVESTOR NAME]

Name of Stockholder

4348511.3 031070-0002-000

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

# **Circle Optics Inc.** (the “Company”) a Delaware Corporation

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

Years ended December 31, 2020 & 2021

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

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

Circle Optics, Inc.

We have reviewed the accompanying financial statements of the Company which comprise the statement of financial position as of December 31, 2020 & 2021 and the related statements of operations, statement of changes in shareholder equity, and statement of cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of Company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

### Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

### Accountant's Responsibility

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

### Accountant's Conclusion

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

### Going Concern

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

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 159,746 | 50,599 |
| Accounts Receivable | 24,800 | 46,041 |
| Deposits | 21,496 | - |
| Parts Inventory | 53,892 | - |
| Other Current Assets | 5,255 | 1,200 |
| Total Current Assets | 265,190 | 97,840 |
| Non-current Assets |  |  |
| Equipment, net of Accumulated Depreciation | 6,301 | 2,395 |
| Total Non-Current Assets | 6,301 | 2,395 |
| TOTAL ASSETS | 271,490 | 100,235 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 103,571 | 196,129 |
| Credit Cards Payable | 15,940 | 2,701 |
| Accrued Bonuses | 431,950 | 360,524 |
| Related Party - Loan Payable | 24,751 | 6,682 |
| Economic Injury Disaster Loan - Current Portion | 588 | - |
| Accrued Interest | 618 | - |
| Other Accrued Expenses | 37,000 | 128,434 |
| Convertible Notes | 350,000 | - |
| Payment Protection Program Loan | - | 41,976 |
| Total Current Liabilities | 964,419 | 736,447 |
| Long-term Liabilities |  |  |
| Economic Injury Disaster Loan - Non-current Portion | 9,118 | 10,000 |
| Future Equity Obligations | 575,000 | 275,000 |
| Convertible Notes | - | 350,000 |
| Accrued Interest | 44,905 | 20,405 |
| Other Long Term Liabilities | 193,287 | - |
| Total Long-Term Liabilities | 822,311 | 655,405 |
| TOTAL LIABILITIES | 1,786,730 | 1,391,853 |
| EQUITY |  |  |
| Common Stock | 779 | 768 |
| Preferred Stock | 150 | 150 |
| Additional Paid in Capital | 1,133,008 | 772,333 |
| Accumulated Deficit | (2,649,176) | (2,064,869) |
| Total Equity | (1,515,240) | (1,291,618) |
| TOTAL LIABILITIES AND EQUITY | 271,490 | 100,235 |

# **Circle Optics, Inc.**  
 **Statement of Operations**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 424,484 | 238,966 |
| Cost of Revenue | 335,890 | 153,561 |
| Gross Profit | 88,594 | 85,405 |
| Operating Expenses |  |  |
| Sales and Marketing | 52,571 | 74,808 |
| Research and Development | 597,319 | 448,793 |
| General and Administrative | 106,110 | 197,787 |
| Patents | 75,065 | 87,940 |
| Depreciation Expense | 2,090 | 1,071 |
| Total Operating Expenses | 833,155 | 810,399 |
| Operating Income (loss) | (744,561) | (724,995) |
| Other Income |  |  |
| Other | 185,371 | 84,575 |
| Total Other Income | 185,371 | 84,575 |
| Other Expense |  |  |
| Interest Expense | 25,118 | 20,405 |
| Total Other Expense | 25,118 | 20,405 |
| Net Income (loss) | (584,308) | (660,825) |

# **Circle Optics, Inc.**  
 **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | (584,308) | (660,825) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Accounts Receivable | 21,241 | (46,041) |
| Deposits | (21,496) | 2,000 |
| Parts Inventory | (53,892) | - |
| Other Current Assets | (4,055) | 38,800 |
| Depreciation | 2,090 | 1,071 |
| Accounts Payable | (92,558) | 8,620 |
| Credit Cards Payable | 13,239 | 2,701 |
| Accrued Bonuses | 71,426 | 139,795 |
| Other Long Term Liabilities | 193,287 | - |
| Accrued Interest | 25,118 | 20,405 |
| Other Accrued Expenses | (91,434) | 22,439 |
| Equity-based Compensation | 60,675 | 14,993 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | 123,641 | 204,782 |
| Net Cash provided by (used in) Operating Activities | (460,666) | (456,043) |
| INVESTING ACTIVITIES |  |  |
| Equipment | (5,996) | (1,263) |
| Other | - | # |
| Net Cash provided by (used by) Investing Activities | (5,996) | (1,263) |
| FINANCING ACTIVITIES |  |  |
| Debt Issuance | - | - |
| Debt Payments | (24,201) | - |
| Additional Paid in capital | 300,000 | - |
| SAFE Note Proceeds | 300,000 | - |
| Convertible Notes Issuance | - | 350,000 |
| Loan Proceeds | - | 50,000 |
| Issuance of Preferred Stock | - | 150 |
| Issuance of Common Stock | 11 | 750 |
| EIDL Loan Proceeds | - | 10,000 |
| PPP Loan Proceeds | - | 41,846 |
| Net Cash provided by (used in) Financing Activities | 575,810 | 452,746 |
| Cash at the beginning of period | 50,599 | 55,158 |
| Net Cash increase (decrease) for period | 109,147 | (4,560) |
| Cash at end of period | 159,746 | 50,599 |
| Cash Paid for Interest | - | - |
| Cash Paid for Income Taxes | - | - |

# **Circle Optics, Inc.**  
 **Statement of Changes in Shareholder Equity**

|  | Common Stock |  | Preferred Stock |  | APIC | Accumulated Deficit | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount |  |  |  |
| Beginning Balance at 1/1/20 | 7,500,000 | 760 | - | - | 7,491 | (1,404,043) | (1,395,793) |
| Issuance of Common Stock | 922,500 | 8 | - | - | - | - | 8 |
| Conversion of Notes | - | - | 1,500,000 | 150 | 749,850 | - | 750,000 |
| Equity-based Compensation | - | - | - | - | 14,993 | - | 14,993 |
| Net Income (Loss) | - | - | - | - | - | (660,825) | (660,825) |
| Ending Balance 12/31/2020 | 8,422,500 | 768 | 1,500,000 | 150 | 772,333 | (2,064,869) | (1,291,618) |
| Issuance of Common Stock | - | 11 | - | - | - | - | 11 |
| Additional Paid in Capital | - | - | - | - | 300,000 | - | 300,000 |
| Equity-based Compensation | - | - | - | - | 60,675 | - | 60,675 |
| Net Income (Loss) | - | - | - | - | - | (584,308) | (584,308) |
| Ending Balance 12/31/2021 | 8,422,500 | 779 | 1,500,000 | 150 | 1,133,008 | (2,649,176) | (1,515,240) |

# **Circles Optics, Inc**  
**Notes to the Unaudited Financial Statements**  
**December 31st, 2021**  
**SUSD**

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

Circle Optics, Inc. ('the Company') was formed in Delaware on December 1, 2017. The Company earns revenue through the development and eventual sale of novel panoramic imaging systems for Defense, Aerospace, Robotics, and Immersive Media. The company is headquartered in Rochester, NY, and all customers are located in the United States.

The Company will conduct a crowdfunding campaign under regulation CF which will start in 2022 and run into 2023 to raise operating capital.

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

# Basis of Presentation

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

# Use of Estimates and Assumptions

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

# Cash and Cash Equivalents

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

# Fair Value of Financial Instruments

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

These tiers include:

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

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

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

# Concentrations of Credit Risks

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

## Revenue Recognition

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

- Step 1: Identify the contract(s) with customers
- Step 2: Identify the performance obligations in the contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to performance obligations
- Step 5: Recognize revenue when or as performance obligations are satisfied

To date, the Company’s revenues have come from service oriented, NRE (non-recurring engineering) contracts which will often come with a series of tranchched milestone payments. Revenue is recognized as over the life of the contract as services are performed and milestones achieved. Money received ahead of a service or milestone are shown as deferred revenue until the time the service is performed, or the milestone achieved. As of December 31, 2020, and 2021, the company had no deferred revenue on the books.

## Property and Equipment

Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided using the straight-line method, based on useful lives of the assets.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment there was no impairment for December 31, 2021.

A summary of the Company’s property and equipment is below.

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- |
| Office Equipment | 3 | 7,503 | 3,022 | - | 4,481 |
| Lab Equipment | 5 | 2,022 | 202 | - | 1,820 |
| Grand Total | - | 9,525 | 3,224 | - | 6,301 |

## Accounts Receivable

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

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

### Advertising Costs

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

### Concentrations

The Company has concentrations that exist as 96.7% of revenue in 2020 and 100% of revenue in 2021 was received on multiple contracts with various government agencies.

### General and Administrative

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

### Equity based compensation

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

The following is an analysis of options to purchase shares of the Company’s stock issued and outstanding:

|  | Total Options | Weighted Average Exercise Price | Weighted Average Intrinsic Value |
| --- | --- | --- | --- |
| Total options outstanding, January 1, 2020 | - | $ - | $ - |
| Granted | 475,500 | $0.489 | $ - |
| Exercised | - | $ - | $ - |
| Expired/cancelled | - |  |  |
| Total options outstanding, December 31, 2020 | 475,500 | $0.489 | $ - |
| Granted | 161,000 | $0.833 | $ - |
| Exercised | - | $ - | $ - |
| Expired/cancelled | - |  |  |
| Total options outstanding, December 31, 2021 | 636,500 | $0.576 | $ - |
| Options exercisable, December 31, 2021 | 332,333 | $0.584 | $ - |

|  | Nonvested Options | Weighted Average Fair Value |
| --- | --- | --- |
| Nonvested options, January 1, 2020 |  |  |
| Granted | 475,500 | - |
| Vested | 245,083 | - |
| Forfeited | - | - |
| Nonvested options, December 31, 2020 | 230,417 | - |
| Granted | 161,000 | - |
| Vested | 87,250 | - |
| Forfeited | - | - |
| Nonvested options, December 31, 2021 | 304,167 | - |

There is not a viable market for the Company's common stock to determine its fair value, therefore management is required to estimate the fair value to be utilized in the determining stock-based compensation costs. In estimating the fair value, management considers recent sales of its common stock to independent qualified investors, placement agents' assessments of the underlying common shares relating to our sale of preferred stock and validation by independent fair value experts. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management's estimates. The Company recorded $60,675 and $14,993 in stock-based compensation in 2021 and 2020, respectively.

**Warrants** - The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. The Warrants below do not have cash settlement provisions or down round protection; therefore, the Company classifies them as equity. The Company has a single warrant outstanding in exchange for a total of $500,000; of which $300,000 has been received and classified on the balance sheet as Additional Paid-In Capital. $200,000 of this warrant was contingent upon the Company achieving agreed upon milestones; this amount has been collected since then; see Note 7 - Subsequent Events. The warrant allows the holder to purchase from the Company duly authorized, validly issued fully paid and non-assessable shares of common stock equal to (4%) of the common stock of the Company on a fully-diluted and as converted to common stock basis outstanding on the date of issuance of this Warrant at a purchase price of $1.00. The warrant expires in 2032.

Management considers the equity-based compensation for warrants expense for 2020 and 2021 to be negligible.

#### Income Taxes

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

as a result of NOLs have not been recognized due to the uncertainty of future positive taxable income to utilize the NOL.

#### Recent accounting pronouncements

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

### NOTE 3 - RELATED PARTY TRANSACTIONS

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

The Company received a $750,000 investment from a related party in exchange for 1,500,000 shares of preferred stock. See Note 6 - Equity for the terms of the stock agreement.

The Company received short term loans from a related party to help pay for expenses; these loans are due on demand and bear no interest. The balance for the related party loan as of December 31, 2021, and 2020 were $24,751 and $6,812, respectively.

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

We are currently not involved with or know of any pending or threatening litigation against the Company or any of its officers. Further, the Company is currently complying with all relevant laws and regulations. The Company does not have any long-term commitments or guarantees.

### NOTE 5 - DEBT

Convertible Notes - On March 26th, 2020, the Company entered a convertible note for $350,000. This note had an interest rate of 7% and a term of 2 years. Upon maturity in 2022, this note will be restructured into a SAFE Note.

In April of 2020 the Company received a Paycheck Protection Program Loan for $41,976 with an interest rate of 1% and a maturity of April 2022. As of December 31, 2021, and 2020 the balance on this loan was $0 and $41,976, respectively.

Economic Injury Disaster Loan - In July of 2020 the Company received an EIDL in the amount of $10,000 with an interest rate of 3.75% and a maturity of July of 2050. The balance on this loan as of December 31, 2021 and 2020, was $9,706 and $10,000 respectively.

Loan Payable - See Note 3 - Related Party Transactions

#### *Debt Summary*

| Debt Instrument Name | Principal Amount | Interest Rate | Maturity Date | For the Year Ended December 2021 |  |  |  | For the Year Ended December 2020 |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Current Portion | Non-Current Portion | Total Indebtedness | Accrued Interest | Current Portion | Non-Current Portion | Total Indebtedness | Accrued Interest |
| Convertible Notes Payable | 350,000 | 7.00% | 2022 | 350,000 | - | 350,000 | 44,905 | - | 350,000 | 350,000 | 20,405 |
| EIDL | 10,000 | 3.75% | 2050 | 588 | 9,118 | 9,706 | 618 | - | 10,000 | 10,000 | - |
| Related Party - Loans Payable | 24,751 | - | On Demand | 24,751 | - | 24,751 | - | 6,812 | - | 6,812 | - |
| PPP Loan | 41,846 | 1.00% | N/A | 0 | - | 0 | - | 41,846 | - | 41,846 | - |
| Total |  |  |  | 375,339 | 9,118 | 384,457 | 45,523 | 48,658 | 360,000 | 408,658 | 20,405 |

Simple Agreements for Future Equity (SAFE) - During the periods ending December 31, 2019, 2020, and 2021 the Company entered into numerous SAFE agreements (Simple Agreement for Future Equity) with third parties for $575,000. The SAFE agreements have no maturity date and bear no interest. The agreements provide the right of the investor to future equity in the Company during a qualified financing or change of control event at a 20% discount. Each agreement is subject to a valuation cap. The valuation caps of the agreements entered were $5M - 8.5M.

# **Debt Principal Maturities 5  
Years Subsequent to 2021**

| Year | Amount |
| --- | --- |
| 2022 | 375,339 |
| 2023 | 588 |
| 2024 | 588 |
| 2025 | 588 |
| 2026 | 588 |
| Thereafter | 6,178 |

# **NOTE 6 - EQUITY**

The Company has authorized 8,500,000 of common shares with a par value of $0.00001 per share. 8,422,500 shares were issued and outstanding as of 2020 and 2021.

Voting: Common stockholders are entitled to one vote per share. Class F Common and Preferred Stockholders are entitled to two votes per share.

Dividends: All stockholders are entitled to receive dividends on a pro rata basis when declared by the Board of Directors. As of November 14, 2022, no dividends have been declared.

The Company has authorized 1,500,000 of preferred shares with a par value of $0.00001 per share. 1,500,000 shares were issued and outstanding as of 2020, and 2021.

Conversion: Preferred shareholders have the right to convert shares into common stock at a rate of 1 to 1 at the discretion of the shareholder or automatically in change of control events. Preferred shareholders receive dividends at the discretion of the board of directors on a pari passu basis according to the number of shares of Common Stock held by such holders. For this purpose, each holder of shares of Preferred Stock will be treated as holding the greatest whole number of shares of Common Stock then issuable upon conversion of all shares of Preferred Stock held by such holder.

Liquidation: In the event of any liquidation, dissolution or winding up of the Company, the holders of the Series Seed Preferred Stock are entitled to receive prior to, and in preference to, any distribution to the common stockholders.

# **NOTE 7 - SUBSEQUENT EVENTS**

The Company has evaluated events subsequent to December 31, 2021, to assess the need for potential recognition or disclosure in this report. Such events were evaluated through December 21, 2022, the date these financial statements were available to be issued.

Subsequent to year end the Company received $200,000 from the contingent portion of the Warrant outstanding, see Note 2.

# **NOTE 8 - GOING CONCERN**

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity has commenced principal operations and has realized losses in operating cash flows for both years under review and will likely realize losses prior to generating positive working capital for an unknown period of time. During the next twelve months, the

Company intends to finance its operations with funds from a crowdfunding campaign and revenue producing activities. The Company’s ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. No assurance can be given that the Company will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

## NOTE 9 - RISKS AND UNCERTAINTIES

### *COVID-19*

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

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

Contact

www.linkedin.com/in/ian-gauger
(LinkedIn)

Top Skills

Problem Solving
Customer Service
Employee Management

Languages

German (Limited Working)
American Sign Language
(Elementary)

Certifications

LEED Green Associate

Honors-Awards

Design Leadership
Design Leadership

Publications

Adaptive Reuse as a Means
for Socially Sustainable
(Re)Development: How Reuse
of Existing Buildings Can Help to
Establish Community Identity and
Foster Local Pride

# Ian Gauger

Innovator. Team Builder. Leader.
Rochester, New York, United States

Summary

Experienced personnel and project manager.

Experience

Circle Optics, Inc.
4 years

COO
June 2020 - Present (2 years 8 months)
Rochester, New York, United States

Director of Operations
February 2019 - June 2020 (1 year 5 months)
Rochester, New York Area

Sigma Nu Lambda Eta Alumni Association, Housing Corporation &
Endowment Fund
Board Member
February 2019 - Present (4 years)
Rochester, New York, United States

* Raised more than $100,000 to purchase a residential building to house
undergraduate students
* Oversaw the creation of three non-profit organizations (Alumni Association,
Housing Corporation, and Endowment Fund) to manage the property and
associated assets

LaBella Associates
Architectural/Project Technician
June 2017 - February 2019 (1 year 9 months)
Rochester, New York Area

* Participated in the design process from RFP response to construction
document submission.
* Coordinated work between in-house design disciplines and outside
consultants.

Page 1 of 4

* Acted as a liaison between client and contractors during the construction process.
* Communicated with sales representatives in order to determine prices and capabilities of a variety of architectural products.

Rochester Institute of Technology

Sustainable Building Consultant

December 2016 - May 2017 (6 months)

Rochester, New York Area

Developed a green building supplement for current university building guidelines.

Rochester Regional Health

Sustainability Intern

September 2016 - May 2017 (9 months)

Rochester, New York Area

* Developed Green Building Standards for all new construction and renovations, as well as operations and maintenance, of company buildings.
* Completed a lifecycle analysis for LEED credit on a proposed 340,000 square-foot hospital.
* Preformed cost analysis/feasibility studies for use of green alternatives such as LEDs, geothermal, photovoltaics, etc.

Rochester Institute of Technology

2 years 2 months

FoodShare Coordinator

September 2015 - September 2016 (1 year 1 month)

Established all operations at the newly created RIT FoodShare. Grew organization from one donation box in a residential life office to 1,200sf location with a team of volunteers and 16+ tons in annual donations.

Graduate Resident Advisor - Greek Circle

August 2014 - August 2015 (1 year 1 month)

•Directly supervised a staff of 6 undergraduate staff members.
•Assisted in providing comprehensive training, ongoing staff development and evaluation of staff.
•Coordinated goal setting and development in relation to personal and professional interests for undergraduate staff through guidance and mentorship.

Page 2 of 4

- Supported administrative processes (data entry, filing, answering phones & email, etc.).
- Acted as a crisis response resource during emergencies for the apartment community.
- Facilitated the resolution of roommate and neighbor conflicts.
- Acted as an advocate for students who are dealing with a variety of issues and concerns including personal crises, academic underachievement, and fiscal mismanagement.

# University of Rochester

4 years 4 months

# Project Manager for Residential Life

May 2013 - August 2014 (1 year 4 months)

I worked with closely with contractors to coordinate a variety of renovation and construction projects. I managed schedules and budgets totaling in the millions of dollars for these projects.

# Teaching Assistant

January 2013 - May 2013 (5 months)

Rochester, New York Area

Teaching Assistant for Approaches to Conflict Resolution

Worked under the Dean of Students. I graded homework and organized outside of class discussions.

# Assistant to the Operations Manager of Residential Life

May 2010 - May 2013 (3 years 1 month)

I am in charge of 15 student helpers during the summer and 6 during the school year. Over the summer we inspect every residential space on campus for damages and make necessary repairs. I am also responsible for creating work orders, doing ledgers, and correspondence with vendors when ordering supplies and materials.

# Private Homeowner

# Property Manager

May 2013 - September 2013 (5 months)

Rochester, New York Area

Manage a property owned by an out-of-state landlord.

# Sigma Nu Fraternity, Inc.

Lambda Eta Chapter - Various Positions

Page 3 of 4

January 2009 - May 2013 (4 years 5 months)

Rochester, New York Area

Member of a fraternity of 30-45 outstanding young men at the University of Rochester with a focus on developing ethical leaders. During my undergraduate time I held a number of positions including Eminent Commander (President), Philanthropy & Community Service Chairman, and Alumni Relations Chairman. I also was a member of various committees and, in 2012, I was selected to sit on the National Appeals & Grievances Committee.

## Education

Rochester Institute of Technology

Master of Architecture (M.Arch.), Architecture · (2014 - 2017)

University of Rochester

Bachelor of Arts, Archaeology, Technology, and Historical Structures · (2008 - 2013)

Page 4 of 4

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

Contact

www.linkedin.com/in/zak-zakariya-niazi-311b0123 (LinkedIn)

Top Skills

Optics

Web Development

Ruby on Rails

# Zak (Zakariya) Niazi

Founder, Circle Optics

Rochester, New York, United States

## Summary

"I shall pass this way but once; any good that I can do or any kindness I can show to any human being; let me do it now. Let me not defer nor neglect it, for I shall not pass this way again."

## Experience

Circle Optics

Founder

February 2016 - Present (7 years)

Greater New York City Area

Our dream is to enable the technologies that allow a child growing up in Brooklyn, NY to roam the streets of Venice, Italy at night with her friends.

Our 360 camera is the first in the world to solve the issue of parallax: a defect which causes image misalignments in stitched panoramas. This is currently the bottleneck standing between where we are now and a world mapped virtually in 360.

One Zero Capital

Front End Developer

December 2014 - January 2016 (1 year 2 months)

Implement frontend for various financial applications using Node.js, Angular and Ember.

University of New South Wales

Optical System Design

October 2012 - June 2013 (9 months)

Sydney Area, Australia

Designed an interferometric system to assess local aberrations in eyewear and researched accuracy of current clinical devices.

Wellman Center for Photomedicine, Harvard Medical School

Optical Endoscope Design

May 2012 - July 2012 (3 months)

Page 1 of 3

Greater Boston Area

Designed a 1.2 millimeter, 140 degree field of view ultrathin fiber endoscope to image and detect precancerous cells for early diagnosis of cancer.

Sydor Optics

Software Engineer

November 2011 - May 2012 (7 months)

Aided in the design and construction of an instrument used to test optical components for microscopic defects. Wrote program to raster scan a laser beam across the surface of an optic and detect for deformities through measurement of the diffracted beam.

Stella Design

Marketing Development Intern

March 2011 - August 2011 (6 months)

Developed a Strategic Marketing Model for a Brand Management Firm in Sydney, Australia to be implemented in the 2012 Fiscal year. I utilized marketing tactics gained at the Wharton School of Business to develop the model.

University of Sydney

Thulium Fiber Laser Design

March 2011 - August 2011 (6 months)

Aided in the design and construction of a High Powered Tunable Thulium Fiber Laser operating between 1.8 and 2 microns. The Laser will be used to investigate generation of novel mid-infrared light sources in the 2.4 and 2.6 micron wavelength regime.

Transcorp Construction

Paralegal

May 2007 - September 2009 (2 years 5 months)

Worked under construction lawyer Das Velez, met with banks and learned legal dealings of a company.

Transcorp Construction Corp

Engineering Business Assistant

June 2006 - June 2009 (3 years 1 month)

Gained understanding of a construction company through architectural design, engineering, and NYC economic developmental strategies

Page 2 of 3

# Education

University of Rochester

Bachelor of Science (B.S.), Optical Engineering · (2008 - 2012)

Edgemont High School

High School Diploma · (2004 - 2008)

Wharton School of Business

Summer Institute of Business and Technology

Page 3 of 3

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

circle

# We Are Raising A Community Round

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

**HYDRA.**
**The world's first truly seamless 360° camera.**

**$3.7M WON** Contracts | **$2.2M INVESTMENTS** To Date | **12 PATENTS** Awarded & Pending
Winners of Pepperdine Most Fundable Companies® 2022, GENIUS NY 2021, Luminate 2019

**Mission**

Circle Optics technology upon inception was based on the premise that technology has the power to enhance the human experience for the better. We are dedicated to the pursuit of 360° immersive experiences giving people more access to the past, present and future along with igniting the human capacity to imagine and create.

**Positioning**

360° imaging is already part of everyday life. From accelerating the delivery of life saving resources, to ensuring aerospace safety, to enhancing surveillance capabilities for protection, to increasing enabling immersive experiences participation, Circle Optics technology is working for you. Different from other cameras on the market which work by combining overlapping fields-of-view, Hydra works by aligning fields-of-view to produce a seamless 360° image. No distortion. One click and done.

**Solution**

Circle Optics' method of aligning fields-of-view produces no distortion and requires no stitching, enabling your field-of-view to be accurately captured in real time. Our solution is protected by a dozen patents.

**Team**

Zak Niazi - *Inventor, CEO*
Ian Gaugar - *Chief Operating Officer*
Andy Kurtz - *Chief Research Officer*
Allen Krisiloff - *Director of Engineering*
Jennifer Sertl - *Director of Marketing*
**Total of 15 employees and growing!**

**TARGET MARKETS**

**ROBOTICS / DRONES $10B**

The drone industry is hampered by an inability to meet regulations to fly beyond line of sight of a human operator. Circle Optics is miniaturizing its novel camera technology under contract with NASA and NSF to enable drones to meet FAA regulations. 15 million drones are expected to fly beyond line of sight by the end of the decade, and they will need this solution to meet regulatory requirements.

**AEROSPACE / DEFENSE $200M**

Persistent ground surveillance solutions scan our skies for threats including missiles, aircrage and UAVs to secure United States' borders, but solutions today have narrow fields-of-view that operators describe as "looking through a straw." Circle Optics is working with the Space Force to eliminate the straw-like view, giving full hemispheric coverage of the sky with resolution never before possible with our distortion-free optics.

**IMMERSIVE EXPERIENCES / MEDIA $122M**

Capturing content for the immersive entertainment industry costs on average $10k per finished minute of video for stitching. Circle Optics' Hydra camera system eliminates this cost and hassle. In an instant, content is ready for the big screen and live events can be streamed in 8k resolution and with 12-bit color to dome theaters and VR headsets.

**we dream with what if's**

**circle optics, inc.**

260 East Main Street, Suite 6106
Rochester, NY, 14604, United States
info@circleoptics.com

www.circleoptics.com

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

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

Dear ____

Happy New Year!

Thank you for showing your interest in Circle Optics! I see that you started to make a reservation in Wefunder, and I wanted to give you an update and share more about our campaign.

We have finalized perks and terms for the round. Here are the perks below for various funding levels:

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

So far we have raised over $150,000 allowing us to hire a full-time engineer as well as unlocking additional funding from the National Science Foundation.

Achieving our campaign goal will allow us to do the following:

- * design and deploy the commercialization roadmap for our camera system that goes beyond detect and avoid to detect and navigate for UAVs
- * hiring additional full-time engineers
- * hiring full-time sales support

For easy reference:

Circle Optics Story https://youtu.be/zRbwLGJPoCg

Wefunder Campaign https://wefunder.com/circleopticsinc

***We would love you to join us and part of the Circle Optics growth story!  
Please confirm your investment.***

Please let me know if I can answer any questions or support your participation in any way!

Thank you,

Jennifer

Jennifer Sertl

Director of Marketing

C: 585.704.5202

circleoptics.com

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

# WeFunder Community Round Email Template

*[Personalized greeting]*

We just kicked off a Community Round through an investment platform WeFunder. The private portion of this round is open until 11/15 and we would like you to be part of it!

Below are some updates on where we are today:

- Creators of the world's first distortion-free panoramic camera addressing $10B drone sensor market
- Over $3.7M in awarded contracts to date with Space Force, NASA, Air Force, and others
- Selected by NASA as only camera sensor capable of meeting FAA's stringent requirements for the advanced UAM market
- Team of 15 drawing on Rochester NY's expertise in imaging technologies (IMAX, Kodak, Xerox)
- Raising $500k community round (10% early bird discount, closing Nov 18th).

Attached is a one-pager that outlines our current offering in more detail and here is a link to a recent video on the company, please use password "325."

*[Closing]*

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Circle Optics, Inc.

**Legal Status:** Other

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 12-01-2017

**Physical Address:** 260 E. Main St, Rochester, NY, 14604

**Issuer Website:** https://www.circleoptics.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:** Preferred Stock

**Number of Securities Offered:** 103064

**Price per Security:** $1.62

**Method for Determining Price:** Dividing pre-money valuation $20,000,740.74 (or $18,000,790.35 for investors in the first $149,999.35) by number of shares outstanding on fully diluted basis.

**Target Offering Amount:** $150,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $1,000,000.00

**Deadline to Reach Target Amount:** 04-30-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 11

**Total Assets (Most Recent Fiscal Year):** $271,490.00

**Total Assets (Prior Fiscal Year):** $100,235.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $159,746.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $50,599.00

**Accounts Receivable (Most Recent Fiscal Year):** $24,800.00

**Accounts Receivable (Prior Fiscal Year):** $46,041.00

**Short-Term Debt (Most Recent Fiscal Year):** $964,419.00

**Short-Term Debt (Prior Fiscal Year):** $736,447.00

**Long-Term Debt (Most Recent Fiscal Year):** $822,311.00

**Long-Term Debt (Prior Fiscal Year):** $655,405.00

**Revenues/Sales (Most Recent Fiscal Year):** $424,484.00

**Revenues/Sales (Prior Fiscal Year):** $238,966.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $355,890.00

**Cost of Goods Sold (Prior Fiscal Year):** $153,561.00

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

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

**Net Income (Most Recent Fiscal Year):** $-584,308.00

**Net Income (Prior Fiscal Year):** $-660,825.00

**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:** Circle Optics, Inc.

**Signature:** Zakariya Niazi

**Title:** Founder, Inventor & CEO

---

**Signature:** Ian Gauger

**Title:** Chief Operating Officer

**Date:** 01-24-2023

---

**Signature:** Zakariya Niazi

**Title:** Founder, Inventor & CEO

**Date:** 01-24-2023