# EDGAR Filing Document

**Accession Number:** 0001758302
**File Stem:** 0001670254-23-000224
**Filing Date:** 2023-3
**Character Count:** 410998
**Document Hash:** f22cddf951873ecaeae464380e06ac4c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000224.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001670254-23-000224

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230309

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Doofus Corp
- **CENTRAL INDEX KEY:** 0001758302
- **IRS NUMBER:** 371836035
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-30256
- **FILM NUMBER:** 23721271

**BUSINESS ADDRESS:**
- **STREET 1:** HARDTURMSTRASSE 161
- **CITY:** ZURICH
- **STATE:** V8
- **ZIP:** 8005
- **BUSINESS PHONE:** 0041445510005

**MAIL ADDRESS:**
- **STREET 1:** 108 WEST 13TH STREET
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19801

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Deofus Corporation

Legal status of issuer:

Form: Corporation

Jurisdiction of incorporation/Organization: DE

Date of organization: 8/29/2016

Physical address of issuer:

108 West 13th Street

Wilmington DE 19801

Website of issuer:

https://www.deofus.xyz

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CM number of intermediary:

0001870254

SEC file number of intermediary:

007-00033

CBD number, if applicable, of intermediary:

283503

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

75% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the issuer in connection with the offering.

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

No

Type of security offered:

☐ Common Stock
☐ Preferred Stock
☐ Debt
☐ Other

If Other, describe the security offered:

Target number of securities to be offered:

10,000,000

Price:

$0.01000

Method for determining price:

Dividing pre-money valuation $5,243,750.00 by number of shares outstanding on fully diluted basis.

Target offering amount:

$100,000.00

Oversubscriptions accepted:

☑ Yes
☐ No

If yes, disclose how oversubscriptions will be allocated:

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

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

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

$250,000.00

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:

1

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $58,020.00 | $2,479.00 |
| Cash & Cash Equivalents: | $715.00 | $225.00 |
| Accounts Receivable: | $0.00 | $0.00 |
| Short-term Debt: | $186,992.00 | $78,238.00 |
| Long-term Debt: | $0.00 | ($29,325.00) |
| Reserves/Sales: | $0.00 | $0.00 |
| Cost of Goods Sold: | $0.00 | $0.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($121,789.00) | ($122,345.00) |

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

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NV, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, BS, DU, PR, VI, IV

## Offering Statement

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

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

### THE COMPANY

1. Name of issuer:

Doofus Corporation

### COMPANY ELIGIBILITY

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

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 10(a) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

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

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 2(b) of Regulation Crowdfunding?

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Jacques Fourie | Technology Entrepreneur | Doofus Corporation | 2018 |

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

### OFFICERS OF THE COMPANY

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

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Lars Li | Legal Counsel / Acting Corporate Secretary | 2019 |
| Dominic Wardell | Vice President of Sales and Marketing | 2021 |
| David Nguyen | COO | 2021 |
| Jacques Fourie | President | 2016 |
| Jacques Fourie | CEO | 2016 |
| Jacques Fourie | Treasurer | 2016 |

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

INSTRUCTION TO QUESTION 2: For purposes of this Question 2, the same officer means a president, vice president, secretary, treasurer or principal financial officer, competitor or principal accounting officer, and any person that must rely performing similar functions.

### PRINCIPAL SECURITY HOLDERS

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

Name of Holder

Jacques Fourie

No. and Class

of Securities Now Held

500000000.0 Common Stock 97.42

% of Voting Power

Prior to Offering

RESTRICTIONS REQUISITION: The above information must be provided as of a date that is no more than 120 days prior to the date of filing of this offering statement.

To calculate total voting power, include all members, for which the person directly or indirectly has or claims the voting power, which includes the power to vote or to direct the voting of such members. If the person has the right to acquire voting power of such members within 60 days, including through the exercise of any option, warrants or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities on share in such direct or control - so, for example, as to maintain they should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To calculate outstanding voting rights securities, assume all outstanding options are expected and all outstanding convertible securities recovered.

## 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.

RESTRICTIONS REQUISITION: "Refresher will provide your company's Refresher profile as an appendix (appendix A) to the Form C on PDF format. The submission will include all Q&A items and "most more" links to an un-assigned format. All values will be transcribed."

This means that any information provided in your Refresher profile will be provided to the SEC in response to this question. As a result, your company will be personally liable for measurements and estimates in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plans. Please return your Refresher profile carefully to explain a provision of material information, is not false or misleading, and does not omit any information that would cause the information included in the false or misleading.

## RISK FACTORS

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

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

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

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

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

We are first movers with our product and service, and may fail to attract and increase customers and content partners, or compete effectively, which will affect our revenue, business and operating results.

Our prioritization of the long-term health of our products and services, and on product innovation, may adversely impact our short-term operating results.

We depend on highly skilled personnel to operate and grow our business. As a technology startup with limited resources and operating in a highly competitive environment, we may be unable to hire, retain and motivate our personnel, and therefor may not be able to grow effectively.

Our products, services, and customer retention and growth depend upon the availability of a variety of third-party services and systems and the effective interoperation with operating systems, networks, devices, web browsers and standards. We do not control all of these systems and cannot guarantee their availability, and we cannot guarantee that third parties will not take actions that harm our products or profitability.

Our products may contain errors, or our security measures may be breached, resulting in the exposure of private information. Our products and services may be subject to attacks that degrade or deny the ability of users to access our products and services. These issues may result in the perception that our products and services are not secure, and users may curtail or stop using our products and services and our business and operating results could be harmed.

We may incur significant operating losses, or we may not be able to maintain profitability or accurately predict fluctuations in our operating results.

Our business is subject to the risks of natural disasters such as diseases, earthquakes, fire, power outages, floods, and other catastrophic events, and to interruption by man-made problems such as terrorism.

Our products and services contain open-source software, and we may license some of our software through open-source projects, which may pose particular risks to our proprietary software, products and services, in a manner that could adversely impact our business.

We may face lawsuits or incur liability as a result of content published or made available through our products and services.

Our business is subject to complex and evolving US and foreign laws and regulations. These laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, increased cost of operations or declines in user growth, user engagement, or otherwise harm our business.

Regulatory investigations and settlements could cause us to incur additional expenses or change our business practices in a manner material and adverse to our business.

We expect to be in the future, party to intellectual property rights claims that are expensive and time consuming to defend, and, if resolved unfavorably, would adversely impact our business, financial condition and operating results.

The perceived value of our common stock may be volatile, and you could lose all or part of your investment.

A complete risk factor summary can be found in our third quarter 2021 and 2020 annual report.

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.

Lois L. Dominic Wardall and David Nguyen are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.

INSTRUCTION TO QUESTION 9. Avoid generalized statements and include only three factors that are unique to the issues. This reason should be outlined in the issuer's balance and the offering and should not reject the factors addressed to the layman or funds above. No specific number of risk factors is required to be identified.

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

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

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

If we raise $100,000

Use of
Proceeds: We use a variable budget methodology to manage and
contain operational costs: 32.5% is allocated to administration
which include salaries (24%), office expenses (6%) and sundries (2.5%);
30% to software development salaries; 30% to sales and marketing
salaries (30%); and 7.5% to the Wefunder fundraising. We will continue
to explore other fundraising options should our Wefunder campaign fail
to raise the minimum amount. We will use the $30,000 balance of our
revolving credit facility to cover short-term expenses while fundraising.

If we raise $250,000

Use of
Proceeds: We use a variable budget methodology to manage and
contain operational costs: 32.5% is allocated to administration
which include salaries (24%), office expenses (6%) and sundries (2.5%);
30% to software development salaries; 30% to sales and marketing
salaries (30%); and 7.5% to the Wefunder fundraising.

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

## DELIVERY & CANCELLATIONS

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

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

12. How can an investor cancel an investment commitment?

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

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

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

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

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

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

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

Within five business days of cancellation of an offering by the Company, the
Company will give each investor notification of the cancellation, disclose the

reason for the cancellation, identify the refund amount the investor will receive, and refund the investor's funds.

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

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

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered.

Priced Round: $5,245,750 pre-money valuation

See exact security attached as Appendix B, Investor Contracts

Doofus Corporation is offering up to 25,000,000 shares of stocks, at a price per share of $0.01.

The campaign maximum is $250,000.00 and the campaign minimum is $100,000.00.

### 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-issuer with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result in any additional fees being charged to investors.

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

### Voting Rights

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

### Proxy to the Lead Investor

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

### Restriction on Transferability

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

14. Do the securities offered have voting rights?

☑ Yes
☐ No

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

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

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

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 transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:

1. to the issuer;

2. to an accredited investor;

3. as part of an offer not registered with the U.S. Securities and Exchange Commission; or

4. In a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or to committee with the death or divorce of the purchaser or other similar circumstance.

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

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

# DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Common | 1,000,000.0 |  |  |
| Stock | 00 | $24,375,000 | Yes |

Securities Reserved for
Issuance upon Exercise or Conversion

Warrants:

Options:

Describe any other rights:

There is only one class of security authorized by the Certificate of Incorporation, common stock.

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of security identified above?

The holders of a majority-in-interest of voting rights in the Company could limit the investor's rights in a material way. For example, those interest holders could vote to change the terms of the 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.

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

No.

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

As holders of a majority-in-interest of voting rights in the Company, the shareholders may make decisions with which the investor disagrees, or that negatively affect the value of the investor's securities in the Company, and the investor will have no recourse to change these decisions. The investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the investor.

For example, the shareholders may change the terms of the articles of incorporation for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The shareholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the investor owns. Other holders of securities of the Company may also have access to more information than the investor, leaving the investor at a disadvantage with respect to any decisions regarding the securities he or she owns.

The shareholders have the right to redeem their securities at any time. Shareholders could decide to force the Company to redeem their securities at a time that is not favorable to the investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability.

In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the investor's securities will decrease, which could also diminish the investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional stock, an investor's interest will typically also be diluted. 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 valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

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

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

1. unrelated third party valuations of our common stock;
2. the price at which we sell other securities, such as convertible debt or preferred Stock, in light of the rights, preferences and privileges of our those securities relative to those of our common stock;
3. our results of operations, financial position and capital resources;
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 correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

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

An investor in the Company will 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 additional issuances of securities, issuer repurchases of securities, a sale of the issuer or of assets of the issuer or transactions with related parties?

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

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

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

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

Interest.

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

Loan

Lender

Jacques Fourie

Issue date

08/28/16

Amount

$50,000.00

Outstanding principal plus interest

$20,000.00 as of 09/22/22

Interest rate

0.0% per annum

Maturity date

08/28/22

Current with payments

Yes

There is no interest payable on this loan.

None.

DISTRIBUTION: For each position (if more than one person) amount owed, interest rate, maturity date, and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 7/2019 | Other | Common stock | $5,000 | General operations |
| 9/2019 | Other | Common stock | $10,000 | General operations |
| 8/2020 | Other | Common stock | $10,000 | General operations |
| 11/2020 | Other | Common stock | $10,000 | General operations |
| 12/2020 | Other | Common stock | $40,000 | General operations |
| 3/2021 | Other | Common stock | $10,000 | General operations |
| 6/2021 | Other | Common stock | $10,000 | General operations |
| 7/2021 | Other | Common stock | $10,000 | General operations |
| 8/2021 | Other | Common stock | $2,500 | General operations |
| 8/2021 | Other | Common stock | $5,000 | General operations |
| 9/2021 | Other | Common stock | $2,500 | General operations |
| 9/2021 | Other | Common stock | $10,000 | General operations |
| 10/2021 | Other | Common stock | $2,500 | General operations |
| 12/2021 | Other | Common stock | $5,000 | General operations |
| 12/2021 | Other | Common stock | $10,000 | General operations |
| 1/2022 | Other | Common stock | $2,500 | General operations |
| 3/2022 | Other | Common stock | $10,000 | General operations |
| 5/2022 | Other | Common stock | $3,000 | General operations |
| 5/2022 | Section 4(a)(2) | Common stock | $10,000 | General operations |
| 6/2022 | Section 4(a)(2) | Common stock | $56,250 | General operations |
| 8/2022 | Section 4(a)(2) | Common stock | $10,000 | General operations |
| 9/2022 | Section 4(a)(2) | Common stock | $13,875 | General operations |
| 12/2022 | Section 4(a)(2) | Common stock | $20,125 | 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 involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(5) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer;

2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;

3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer;

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

☑ Yes

☐ No

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

Name

Jacques Fourie

Amount invested $100.00

Transaction type Priced round

Issue date

08/28/16

Relationship

Founder and President

Name

Jacques Fourie

Amount invested

$50,000.00

Transaction type

Loan

| Issue date | 06/28/16 |
| --- | --- |
| Outstanding principal plus interest | $20,000.00 as of 05/22/22 |
| Interest rate | 0.6% per annum |
| Maturity date | 06/28/22 |
| Current with payments | Yes |
| Relationship | Founder and President |
| Name | Jacques Fourie |
| Amount invested | $400.00 |
| Transaction type | Priced round |
| Issue date | 02/28/18 |
| Relationship | Founder and President |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $40,000.00 |
| Transaction type | Priced round |
| Issue date | 12/30/20 |
| Relationship | Independent Directors |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $10,000.00 |
| Transaction type | Priced round |
| Issue date | 03/31/21 |
| Relationship | Independent Directors |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $10,000.00 |
| Transaction type | Priced round |
| Issue date | 06/30/21 |
| Relationship | Independent Directors |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $10,000.00 |
| Transaction type | Priced round |
| Issue date | 09/30/21 |
| Relationship | Independent Directors |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $10,000.00 |
| Transaction type | Priced round |
| Issue date | 12/31/21 |
| Relationship | Independent Directors |
| Name | Johannes C Joubert and Timothy James O'Donnell |
| Amount invested | $10,000.00 |
| Transaction type | Priced round |
| Issue date | 03/31/22 |
| Relationship | Independent Directors |

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

Beneficial ownership for purposes of paragraph (2) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same information described in Questions 6 of the Questions and Answer format.

The term "member of the family" includes any child, stepchild, grandchild, parent, neighbours, grandparents, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes adequate relationships. The term "spousal equivalent" means a substitute occupying a relationship generally equivalent to that of a spouse.

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

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☑ Yes
☐ No

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

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

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

Overview

The Roguehog APP collects user-specific data from multiple sources on traffic violations, reckless, dangerous and distracted driving, and vehicle accidents. This data is then sold to relevant parties such as auto insurers to use for their risk assessment purposes.

Our aim is to generate revenue of at least $5 million, be profitable and cash flow positive by 2026.

Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

## Milestones

Doofus Corporation was incorporated in the State of Delaware in August 2016.

Since then, we have:

- Innovative product with excellent prospects.
- First to market for third-party behavioral data on individual drivers and vehicles.
- Significant market size and potential.
- Our Roguehog APP could replace existing risk assessment models and methods, at a lower cost.
- Experienced and competent management team.
- $65,000 in pre-seed funding already raised.

## Historical Results of Operations

- Revenues & Gross Margin: For the period ended December 31, 2021, the Company had revenues of $0 compared to the year ended December 31, 2020, when the Company had revenues of $0.
- Assets: As of December 31, 2021, the Company had total assets of $58,020, including $715 in cash. As of December 31, 2020, the Company had $2,479 in total assets, including $225 in cash.
- Net Loss: The Company has had net losses of $121,789 and net losses of $122,345 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- Liabilities: The Company's liabilities totaled $186,892 for the fiscal year ended December 31, 2021 and $48,913 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

To-date, the company has been financed with $50,000 in debt and $250,750 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 4 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 protect 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

Doofus Corporation cash in hand is $540, as of May 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $10,717/month, for an average burn rate of $10.717 per month. Our intent is to be profitable in 60 months.

No other material changes or trends in our finances or operations have occurred since the dates our financials cover.

We do not expect to generate any revenue in the next 3 to 6 months. Our average monthly expenses should average $15,500 over the next 6 months. We will require ~$300,000 total to become revenue-generating.

We are not profitable, but we expect to become profitable at the end of 2026. We will require ~$5 million capital total to reach that point.

Outside of funds raised through Wefunder, we have a $80,000 receiving loan agreement with the founder, Jacques Fourie. At September 30, 2021, approximately $20,000 had been drawn against this facility.

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

DISTRIBUTIONS PROPOSED ON 25. The discussion must cover each year for which financial statements are provided. For issuers with no prior operating history, the discussion should focus on financial risk factors and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether historical results and cash flows are representative of what investors should expect in the future. Take into account the proceeds of the offering and any other known or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether receiving these funds and any other additional funds in necessary to the visibility of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital in the business, such as lines of credit or required contributions by shareholders. References to the issuer in this Question 25 and these instructions refer to the issuer and its predecessors, if any.

# FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

L. Jacques Faurie, certify that:

(1) the financial statements of Doofus Corporation included in this Form are true and complete in all material respects; and

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

Jacques Faurie

Technology Entrepreneur

# STAKEHOLDER ELIGIBILITY

10. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding selling equity securities, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 15, 2016.

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

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

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

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

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 44(b) of the Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

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

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

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

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

i. at the time of the filing of this offering statement bars the person from:

A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No

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

C. engaging in savings association or credit union activities? ☐ Yes ☑ No

ii. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15(b)(1) of the Exchange Act or Section 20(b)(1) or (2) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

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

ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No

iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

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

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 10(a)(3) of the Securities Act, Section 10(b) of the Exchange Act, Section 10(c)(3) of the Exchange Act and Section 20(1) of the Investment Advisers Act of 1940 or any other sale or regulation thereunder? ☐ Yes ☑ No

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

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

☐ Yes ☑ No

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

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 44(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

☐ Yes ☑ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or fee occurred or been issued after May 15, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

DISTRICT INFO REQUISITION 14. Final order issues are often directed or disbursed, determined by a federal or state agency, identified in Rule 20(a)(3) of the Federal Code of Ethics, under applicable statutes, authority that provides for notice and/or opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

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

# OTHER MATERIAL INFORMATION

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

- (1) any other material information presented to investors; and

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

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

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

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

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

Although the Lead Investor may act in multiple roles with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to maximize the value of the Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of Investors. It is, however, possible that in some limited circumstances the Lead Investor's interests could diverge from the interests of investors, as discussed in section 8 above.

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

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

AUSTIN/IDAHO REQUISITION 10. If information is presented to investors in a format, media or other means not able to be reflected in any or periodic document format, the issuer should include:

(a) a description of the intended content of such information;

(b) a description of the format in which such disclosure is presented; and

(c) in the case of disclosure in order, under or other dynamic media or format, or in any or description of such disclosure.

# ONGOING REPORTING

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

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

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

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

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 13(b);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 8(a)(b), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or dissolves in accordance with state law.

# APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement
doofus.sub agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

David Nguyen
Dominic Wardall
Jacques Fourie
Lois Li

Appendix E: Supporting Documents

ttw_communications_97709_221403.pdf
doofus_corporation_wefunder_subscriber_stock_purchase_and_shareholder_rights_agreement_2022-02-14_1.pdf

## Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

doofus sub agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

David Nguyen

Dominic Wardall

Jacques Fourie

Lois Li

Appendix E: Supporting Documents

ttw_communications_97709_221403.pdf
doofus_corporation_wefunder_subscriber_stock_purchase_and_shareholder_rights_agreement_2022-02-14_1.pdf

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

Doofus Corporation

By

Jacques Fourie

President and Chief Executive
Officer

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

Jacques Fourie

President and Chief Executive Officer
2/26/2023

Timothy O'Donnell

Independent Director
5/27/2022

Johannes Joubert

Management Consultant
5/27/2022

Jacques Fourie

President and Chief Executive Officer
5/26/2022

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

I authorize Wefunder Portal to submit a Form C to the SEC based on the information I provided through this online form and my company's Wefunder profile.

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact, in the company's name, place and stead to make, execute, sign, acknowledge, swear to and file a Form C on the company's behalf. This power of attorney is coupled with an interest and is irrevocable. The company hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

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

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

INVEST IN DOOFUS CORPORATION

## Our Roguehog APP introduces a new level of risk assessment for auto insurers

LEAD INVESTOR

Partha Debnath

There are quite a few reasons which attracted me to become Lead Investor for Doofus Corporation. To mention briefly, Excellent Product quality, Huge Global market size, Enormous Growth Potential, Led by Competent Team with Past Track records. In addition, there will be reward for every good nature driver by paying less insurance premium which will touch every one of us driving our own vehicle. My interaction with Jacques, Founder and President of Doofus Corporation has been extremely encouraging. He is a true Business Leader in every aspect. The company has clear vision, robust business plan and revenue projection which are benchmarks for any investor looking for investment opportunities. I have no hesitation to become Lead investor for Doofus Corporation as I am confident of decent ROI in near future because early birds are likely to be more successful than the Night Owls.

Invested $1,000 this round & $2,500 previously

doofus.xyz

Wilmington DE

Technology

B2B

Transportation

# Highlights

1. Innovative product with excellent prospects.
2. First to market for third-party behavioral data on individual drivers and vehicles.
3. Significant market size and potential.
4. Our Roguehog APP could replace existing risk assessment models and methods, at a lower cost.
5. Experienced and competent management team.
6. $105,500 in pre-seed funding already raised.

# Our Team

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

**Jacques Fourie** President and Chief Executive Officer

Jacques has extensive knowledge and experience in finance, technology and trends, and general business management.

Too many drivers get away with irresponsible and dangerous behavior on our road. The best way to reduce this behavior is to hold individual drivers responsible and to penalize them financially or otherwise for their unsafe behavior on the road.

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

**David Nguyen** Chief Operating Officer

David is a seasoned Chief Technical Officer and Product Manager, having worked with a

David is a seasoned Chief Technical Officer and Product Manager, having worked with a range of tech companies over the last 26 years.

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

## Dominic Wardall Vice President of Sales and Marketing

Dominic is a communications, marketing and sales professional, with twenty-plus years' experience.

## Pitch

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

## Problem

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

Vehicles have become more

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

Traditional risk assessment

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

Even telematics, the most

sophisticated and expensive to repair, resulting in mounting underwriting losses for auto insurers

dcofus

tools are discriminatory, generalized, and backward-looking

recent development, is unable to provide information on pain points such as reckless, dangerous and distracted driving, and fraudulent accident claims

roguehøg

## Solution

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

Crowdsourced collection of the actual observable, real-time driving behaviors of all drivers and vehicles on the road

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

AI-generated reports identifying vehicles driven recklessly, while distracted, or committing traffic violations

Discoverable records of vehicle accidents would help settle accident claims

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

Replace outdated statistical models, claims histories and GPS trackers with smart, data-driven analytics of individualized driving behaviors

dcofus

roguehøg

## Roguehog APP

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

Our Roguehog insurtech APP collects auto processes used, specific data, from multiple sources, on traffic violations, reckless, dangerous and distracted driving, and vehicle accidents

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

Auto insurers can purchase our data on their current site, prospective clients to improve the accuracy and effectiveness of their risk assessments

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

Auto insurers will have the ability to purchase evidence pertaining to accidents, road up to better access claims

# Core Features

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

Complements existing risk assessment models and methods, at a substantially lower cost

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

Processed data is sold to auto insurers, providing recurring income streams

Financial rewards paid to independent data providers

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

Leverages internet of things, web3, and peer-to-peer networks

dcofus

roguehog

# Competition and Competitive Advantages

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

First to market for comprehensive and personalized behavioral data on drivers and vehicles

Continuous data updates

Pay-as-you-use model

Easy to use with no prohibitive implementation or training costs for users

Incentives paid to data providers

dcofus

roguehog

# Market Validation

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

Auto insurers use telematics and other resources to collect

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

Auto insurers use social media to try and connect the data

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

Untapped user-generated data which is growing at an

their current clients

To identify fraudulent claims

warehouses

## Market Size

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

Our **Total Available Market** or **TAM** is calculated on the total number of insurable vehicles globally, multiplied by our data rates based on expected pricing power

Our **Serviceable Available Market** or **SAM** is calculated on the total number of insurable vehicles in the US alone, multiplied by our data rates based on expected pricing power

Our **Serviceable Obtainable Market** or **SOM** is calculated on 30 percent of our SAM

dcofus

roguehøg

## Business Model

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

We aim to sell **120 million** reports to US auto insurers in 2031

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

We charge auto insurers **$10** per data report

![img-24.jpeg](img-24.jpeg)

We project revenue of **$1,2** billion in 2031

dcofus

roguehøg

## Upside Potential

![img-25.jpeg](img-25.jpeg)

Data collection could be automated and provided by passers at a continually reducing cost

![img-26.jpeg](img-26.jpeg)

Additional revenue streams receive other risk markers, traffic and planning automation and fleet operators

![img-27.jpeg](img-27.jpeg)

Our Roguehog APP can be scaled internationally and lawy cost

## Traction

![img-28.jpeg](img-28.jpeg)

Beta version launched in March 2022, laying the foundation for the latest APP parameters

![img-29.jpeg](img-29.jpeg)

Partnership discussions with auto insurers initiated

![img-30.jpeg](img-30.jpeg)

A strong and experienced team in place

dcofus

roguehog

## Go-to-Market Strategy

![img-31.jpeg](img-31.jpeg)

Build solid partnerships with auto insurers and data providers to establish and secure a dominant market

![img-32.jpeg](img-32.jpeg)

Official launch, public roll-out of Roguehog APP, and mass data generation drive

![img-33.jpeg](img-33.jpeg)

Expand our sales and marketing team to efficiently grow and manage customer relationships

position

dcofus

roguehøg

# Our Team

![img-34.jpeg](img-34.jpeg)

Jacques Fourie
Founder, Chief Executive Officer

Jacques has extensive knowledge and experience in finance, technology and trends, and general business management

![img-35.jpeg](img-35.jpeg)

David Nguyen
Chief Operating Officer

David is a seasoned Chief Technical Officer and Product Manager, having worked with a range of tech companies over the last 20 years

![img-36.jpeg](img-36.jpeg)

Dominic Wardall
VP of Sales and Marketing

Dominic is a communications marketing and sales professional, with twenty-plus years' experience

# Financials

Projected Financials
(in millions)

![img-37.jpeg](img-37.jpeg)

Our projected financials are based on the following assumptions:

- a successful funding round in 2022/2023
- successful subsequent funding rounds beyond 2023 if required
- a 10 percent month-on-month revenue growth from July 2022 to achieve our SOM in 2031

dcofus

roguehøg

# Fundraising

Use of Funds

![img-38.jpeg](img-38.jpeg)

Administration Engineering

Marketing Fundraising

doofus

We are looking to raise $100,000 to $250,000 in funding for 6 to 12 months' runway to:

- build a talented technology team
- launch our fully-fledged APP
- build a motivated sales team
- build partnerships with auto insurers and data providers

At a pre-money valuation of $5.28 million we are offering 10 to 25 million shares or 1.89% to 4.74% equity at $0.01 per share

roguehøg

# Contact Details

Doofus Corporation

Hardturmstrasse 161

8005 Zurich

Switzerland

Jacques Fourie

E: jacques.fourie@doofuscorporation.com

T: +41 79 911 86 18

W: https://doofus.xyz

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

# **Subscription Agreement**

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Doofus Corporation 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 **Doofus Corporation** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

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

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

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

Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

A. This agreement ("Agreement") applies to each investment in a series ("SPV") of Wefunder SPV, LLC (the "LLC"). Each series is a separate pool of assets from every other series. Each SPV will invest all of its assets in securities issued by a single company ("Company") as set forth in the applicable series appendix ("Series Appendix") to the Wefunder SPV, LLC limited liability company agreement ("LLC Agreement"). The terms of the Company securities to be purchased by the SPV are summarized in an appendix ("Terms Appendix") attached to this Agreement.

B. Each SPV is formed by and operated by Wefunder Admin, LLC on behalf of the Company in whose securities that SPV invests.

C. Important information about the Company, about the related SPV, and more generally about investments through the Wefunder website, is available through the Wefunder website. The Investor should review that information, and all relevant Company Information (as defined below), carefully before making an investment in any SPV.

D. Each SPV will offer membership interests ("Interests") in that SPV pursuant to Regulation Crowdfunding under the U.S. Securities Act of 1933, as amended (the "Securities Act").

E. You hereby agree that each time you make an investment in any SPV, you will be deemed to have entered into this Agreement, and will be deemed to have made each representation and covenant contained in this Agreement.

F. Except as the context otherwise requires, any reference in this Subscription Agreement to:

1. a "SPV" shall mean "The LLC acting solely on behalf of and for the account of the SPV";

2. "Investor" and "you" shall mean a person (whether individually, jointly with another person, or through his or her individual retirement account) who has agreed to invest, or has invested, in any SPV; and

3. "Company Information" means:

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.

2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.

2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.

2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The

Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action take upon any notice, consent, request, instructions or other instrument believed in good faith to be genuine or to be signed by properly authorized persons of the Investor.

2.5. Pursuant to the requirements of Treas. Reg. § 301.6109-1(c), the Investor has provided, or agrees to provide upon the earlier of (i) two years of an acquisition of an Interest or (ii) twenty (20) days before any distribution is to be made from the SPV, his, her or its taxpayer identification number (e.g., social security number or employer identification number) under penalties of perjury and has or will attest that the Internal Revenue Service has not notified the Investor that he, she or it is subject to backup withholding.

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

3.1. The Investor understands that the SPV will not register as an investment company under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), nor will it make a public offering of its securities within the United States.

3.2. The Investor understands that the value of all investments in any SPV made through individual retirement accounts ("IRAs") must be less than 25% of the value of the SPV's assets.

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

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

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

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

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

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

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

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

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

SPV.

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

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

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

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

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

a. to facilitate the acceptance, management and administration of the Investor's subscription for an interest on an on-going basis;

b. for any other specific purposes where the Investor has given specific consent to do so;

c. to carry out statistical analysis, market research, and tracking of investment performance over time;

d. to comply with legal or regulatory requirements applicable to the SPV and any Administrator or the Investor, including, but not limited to, in connection with anti-money laundering and similar laws;

e. for disclosure or transfer to third parties including the Investor's financial adviser (where appropriate), regulatory bodies, auditors, technology providers or to the SPV, any Administrator, any Lead Investor, and their delegates or their duly appointed agents and any of their respective related, associated or affiliated companies for the purposes specified above;

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.

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

**SPV**

**Doofus Corporation 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 Doofus
Corporation SECURITIES BY Doofus Corporation I, A
SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED
LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $0.01 per share and a $5.13M 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%3D0001758302&first=2016

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

# DOOFUS CORPORATION

# SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS 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.

This SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT (this "Agreement") is made effective as of [EFFECTIVE DATE] ("Effective Date") by and between Doofus Corporation, a Delaware corporation (the "Corporation"), and the "Subscriber").

WHEREAS, the Subscriber desires to purchase and the Corporation desires to issue and sell shares of its common stock, par value of $0.000001 per share ("Common Stock") on the terms set forth herein.

NOW, THEREFORE, in consideration for mutual covenants made in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, the Corporation and Subscriber hereby agree as follows:

1. Sale of Stock. The Corporation hereby agrees to sell to the Subscriber and the Subscriber hereby agrees to purchase an aggregate of [SHARES] shares of the Corporation's Common Stock ("Shares") at a purchase price of $0.01 per share for a purchase amount of $[AMOUNT]. The payment of the purchase amount shall be made on the Effective Date in cash via the Wefunder platform. The Shares will be issued upon consummation of the purchase transaction contemplated hereby.

2. Restrictions on Transfer.

2.1. Right of First Refusal. Before any Shares held by Subscriber or any transferee ("Proposed

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Transferee") of Subscriber (either being sometimes referred to herein as the "Holder") may be sold or otherwise transferred (including transfer by gift or operation of law), the Corporation or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions set forth in this Section 2.1 (the "Right of First Refusal").

2.1.1. Notice of a Proposed Transfer. In the event that a Subscriber desires at any time to transfer all or any part of such Subscriber's Shares (a "Transferring Subscriber"), the Transferring Subscriber first shall give written notice ("Notice") to the Corporation of such Transferring Subscriber's intention to make such transfer. Such Notice shall state the number of Shares which the Transferring Subscriber proposes to transfer (the "Offered Shares"), the price ("Offered Price") and the terms at which the proposed transfer is to be made and the name and address of the proposed transferee.
2.1.2. Exercise of Right of First Refusal. At any time within thirty (30) days after receipt of the Notice, the Corporation and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the proposed transferees, at the purchase price determined in accordance with Section 2.1.3 below.
2.1.3. Purchase Price. The purchase price ("Purchase Price") for the Shares purchased by the Corporation or its assignee(s) under this Section 2.1.3 shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the noncash consideration shall be determined by the Board of Directors of the Corporation in good faith.
2.1.4. Payment. Payment of the Purchase Price shall be made, at the option of the Corporation or its assignee(s), in cash (by certified or official bank check or by wire transfer), by cancellation of all or a portion of any outstanding indebtedness, or by any combination thereof within thirty (30) days after receipt of the Notice or in the manner and at the times set forth in the notice.
2.1.5. Holder's Right to Transfer. If all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Corporation and/or its assignee(s) as provided in this Section 2.1.5, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within sixty (60) days after the date of the Notice and provided further that any such sale or other transfer is effected in

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accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section 2 shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, or if the Holder proposes to change the price or other terms to make them more favorable to the Proposed Transferee, a new Notice shall be given to the Corporation, and the Corporation and/or its assignee(s) shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

**2.1.6. Exception for Certain Family Transfers.** Anything to the contrary contained in this Section 2 notwithstanding, the transfer of any or all of the Shares during Subscriber's lifetime or on Subscriber's death by will or intestacy to Subscriber's Immediate Family or a trust for the benefit of Subscriber or Subscriber's Immediate Family shall be exempt from the provisions of this Section 2. "Immediate Family" as used herein shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, or any person sharing the Subscriber's household (other than a tenant or an employee). In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section 2, and there shall be no further transfer of such Shares except in accordance with the terms of this Section 2.1.6.

**2.2. Corporation's Right to Purchase upon Involuntary Transfer.** In the event, at any time after the date of this Agreement, of any transfer by operation of law or other involuntary transfer (including divorce or death, but excluding in the event of death a transfer to Immediate Family as set forth in Section 2.1.6 above) of all or a portion of the Shares by the record holder thereof, the Corporation shall have the right to purchase all of the Shares transferred at the greater of the purchase price paid by Subscriber pursuant to this Agreement or the fair market value of the Shares on the date of transfer (as determined by the Board of Directors of the Corporation). Upon such a transfer, the person acquiring the Shares shall promptly notify the Secretary of the Corporation of such transfer. The right to purchase such Shares shall be provided to the Corporation for a period of thirty (30) days following receipt by the Corporation of written notice by the person acquiring the Shares.

**2.3. Assignment.** The right of the Corporation to purchase any part of the Shares may be assigned in whole or in part to any holder or holders of capital stock of the Corporation or other persons or organizations.

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2.4. Restrictions Binding on Transferees. All transferees of Shares or any interest therein shall receive and hold such Shares or interest subject to the provisions of this Agreement. In the event of any purchase by the Corporation hereunder where the Shares or interest are held by a transferee, the transferee shall be obligated, if requested by the Corporation, to transfer the Shares or interest to the Subscriber for consideration equal to the amount to be paid by the Corporation hereunder. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied.

2.5. Termination of Rights. The Right of First Refusal and the Corporation's right to repurchase the Shares in the event of an involuntary transfer pursuant to Section 2.2 above shall terminate upon the first sale of Common Stock of the Corporation to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act").

3. Investment Representations. In connection with the purchase of the Shares, the Subscriber represents to the Corporation the following:

3.1. Requisite Investment Knowledge. The Subscriber represents, warrants and acknowledges that the Subscriber: (i) is aware of the Corporation's business affairs and financial condition and has acquired sufficient information about the Corporation to reach an informed and knowledgeable decision to acquire the Shares, (ii) has had an opportunity to ask questions of and receive answers from a Corporation representative concerning the terms and conditions of this investment; (iii) is acquiring the Shares with the Subscriber's own funds, for the Subscriber's own account for the purpose of investment, and not with a view to any resale or other distribution thereof in violation of the Securities Act; (iv) is a sophisticated investor with such knowledge and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the Shares and that the Subscriber is able to and must bear the economic risk of the investment in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act, and therefore, cannot be offered or sold unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Furthermore, the Corporation may place legends on any stock certificate representing the Shares with the securities laws and contractual restrictions thereon and issue related stop transfer instructions.

3.2. Unregistered Securities. The Subscriber acknowledges and understands that the Shares have not been registered under the Securities Act, nor registered pursuant to the provisions of the securities laws or other laws of any other applicable jurisdictions, in reliance on exemptions for private offerings contained in Section 4(2) of the Securities Act and in the laws of such jurisdictions. The

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Subscriber further understands that the Corporation has no intention and is under no obligation to register the Shares under the Securities Act or to comply with the requirements for any exemption that might otherwise be available, or to supply the Subscriber with any information necessary to enable the Subscriber to make routine sales of the Shares under Rule 144 or any other rule of the SEC.

### 3.3. Foreign Subscriber Representations.

3.3.1. To the extent that Subscriber is not a United States person, as such term is defined in Rule 902 promulgated under the Securities Act (a "Non-US Subscriber"), which by such Non-US Subscriber's execution of this Agreement such Non-US Subscriber hereby confirms, that the Shares shall be acquired for investment for such Non-US Subscriber's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof in the United States or to a United States resident, and that such Non-US Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, such Non-US Subscriber further represents that such Non-US Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person in the United States or to a United States resident, with respect to any of the Shares.
3.3.2. If Subscriber is an individual, then the Subscriber resides in the state or province identified in the address of Subscriber set forth in Section 12.4 of this Agreement; if the Subscriber is a partnership, corporation, limited liability company or other entity, then the office or offices of the Subscriber in which its investment decision was made is located at the address or addresses of the Subscriber set forth in Section 12.4 of this Agreement.
3.3.3. If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents 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 government or other consents that may need to be 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. Subscriber's subscription and payment for and continued beneficial ownership of the Shares shall not violate any applicable securities or other laws of Subscriber's

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jurisdiction.

4. **Stock Certificate Legends.** The share certificate evidencing the Shares issued hereunder shall be endorsed with the following legends and any legend required by any applicable state securities laws:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

“THE SALE OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT BY AND BETWEEN THE REGISTERED SUBSCRIBER HEREOF AND THE CORPORATION THAT PROVIDES FOR A RIGHT OF REPURCHASE. SUCH RESTRICTIONS ARE BINDING UPON TRANSFEREES OF THESE SHARES. COPIES OF THE SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL OPTION IN FAVOR OF THE CORPORATION, AS PROVIDED IN THE BYLAWS OF THE CORPORATION.”

5. **Changes in Corporation Capital Stock.**

5.1. **Mergers and Other Events.** If, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Corporation’s capital stock, the outstanding shares of Common Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Corporation, or additional shares or new or different shares or other securities of the Corporation or other non-cash assets are distributed with respect to such shares of Common Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets of the Corporation, the outstanding shares of Common Stock are converted into or exchanged for a different number or kind of securities of the Corporation or any successor entity (or a parent or subsidiary thereof), the Board of Directors shall make an appropriate or proportionate adjustment in the number and kind

6

of Shares subject to this Agreement. The adjustment by the Board of Directors shall be final, binding and conclusive. No fractional Shares shall be issued under this provision resulting from any such adjustment, but the Board of Directors in its discretion may make a cash payment in lieu of fractional shares. Upon the occurrence of any merger or consolidation of the Corporation with or into another entity as a result of which the Common Stock is converted into or exchanged for the right to receive cash, securities or other property, or any exchange of the Common Stock for cash, securities or other property pursuant to a share exchange transaction, the restrictions on transfer and the other provisions of this Agreement shall inure to the benefit of the Corporation's successor.

**5.2. Board Action.** The Board of Directors may also adjust the number of Shares subject this Agreement and the terms of this Agreement to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock or property or any other event if it is determined by the Board of Directors that such adjustment is appropriate to avoid distortion in the operation of this Agreement.

**6. Stockholder Rights.** Subject to certain provisions of this Agreement, until such time as the Corporation actually exercises its repurchase rights under this Agreement, the Subscriber (or any successor in interest) shall have all the rights of a stockholder (including voting and dividend rights) with respect to the Shares.

**7. Liquidation Preference.** In the event of a Dissolution, the Subscriber shall have the right to receive a return of its purchase amount based on the priority ('Liquidation Priority') below.

**7.1.** Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into shares of the Corporation).

**7.2.** Junior to payments for Preferred Stock (if any).

**7.3.** Senior to payments for Common Stock held by holders who do not have the Liquidation Priority rights outlined under this Agreement, and at par to Common Stock holders with the same Liquidation Priority right, and if liquidation proceeds are insufficient to permit full payments to the Subscriber and such other holders of Common Stock with the same Liquidation Priority right, the applicable liquidation proceeds will be distributed pro rata to the Subscriber and such other holders of Common Stock with the same Liquidation Priority right in proportion to the full payments that would otherwise be due.

7

“Dissolution” shall mean (i) a voluntary termination of the Corporation’s operations; (ii) a general assignment for the benefit of the Corporation’s creditors; or (iii) a liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary.

**8. Market Stand-Off Agreement.** The Subscriber hereby agrees, if so requested by the managing underwriters or the Corporation in connection with the initial public offering of the Corporation’s Common Stock, that, without the prior written consent of such managing underwriters, the Subscriber shall not offer, sell, contract to sell, grant any option to purchase, make any short sale or otherwise dispose of, assign any legal or beneficial interest in or make a distribution of any capital stock of the Corporation held by or on behalf of the Subscriber or beneficially owned by the Subscriber in accordance with the rules and regulations of the SEC for a period of up to one hundred and eighty (180) days after the date of the final prospectus relating to the Corporation’s initial public offering (or such longer period of time as may be required to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2241, as applicable, (or any successor rules or amendments thereto)) (the “Lock Up Period”).

**9. Certain Tax Matters.** If the Corporation in its discretion determines that it is obligated to withhold any tax in connection with the transfer of the Shares, the Subscriber hereby agrees that the Corporation may withhold from the Subscriber the appropriate amount of tax. At the discretion of the Corporation, the amount required to be withheld may be withheld in cash from the Subscriber. The Subscriber further agrees that, if the Corporation does not withhold an amount from the Subscriber sufficient to satisfy the withholding obligation of the Corporation, the Subscriber shall make reimbursement on demand, in cash, for the amount underwithheld. The Subscriber represents that it has received tax advice from its own personal tax advisor on the tax consequences of a purchase of the Shares.

**10. Failure to Deliver Shares.** If the Subscriber (or its legal representative) who sell Shares hereunder shall fail to deliver such Shares to the Corporation in accordance with the terms of this Agreement, the Corporation may, at its option, in addition to all other remedies it may have, pay (by certified or official bank check or by wire transfer) to the Subscriber the purchase price for such Shares as is herein specified. Thereupon, the Corporation (i) shall cancel on its books the certificate or certificates representing such Shares to be sold; and (ii) shall issue, in lieu thereof, a new certificate or certificates in the name of the Corporation representing such Shares (or cancel such Shares), and thereupon all of such Subscriber’s rights in and to such Shares shall terminate.

8

## 11. Representations and Warranties of the Corporation.

11.1. The Corporation has all requisite authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly authorized, executed and delivered by the Corporation and this Agreement constitutes the legal, valid and binding obligations of the Corporation enforceable against the Corporation in accordance with its terms.

11.2. The execution and delivery by the Corporation of this Agreement, and the performance by it of its obligations hereunder, does not and will not (i) violate any provision of any applicable law or any provision of any order, arbitration award, judgment or decree to which it is subject; or (ii) (a) require a consent, approval or waiver from, or notice to, any party to a contract to which the Corporation is a party, (b) result in a breach of, cause a default or constitute an event that, with or without notice or lapse of time or both, constitute a default under, or give rise to any right of termination by the other party, cancellation of any right of the Corporation, acceleration of any obligation of the Corporation under, or the loss of any benefit to which the Corporation is entitled under, any provision of any contract; or (c) result in the creation or imposition of any liens, charges, encumbrances, security interests, restrictive agreements or assessments on any asset of the Corporation.

## 12. General Provisions.

12.1. **Governing Law.** This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed by the laws of the State of Delaware, without giving effect to principles of conflicts of law. Venue shall be in the state and federal courts situated in New Castle County, Delaware.

12.2. **Dispute Resolutions.** The parties agree that any and all disputes, claims or controversies arising out of or relating to this Agreement shall be submitted to JAMS, or its successor, for mediation, and if the matter is not resolved through mediation, then it shall be submitted to JAMS, or its successor, for final and binding arbitration pursuant to the below.

12.2.1. Either party may commence mediation by providing to JAMS and the other party a written request for mediation, setting forth the subject of the dispute and the relief requested. The parties will cooperate with JAMS and with one another in selecting a mediator from the JAMS panel of neutrals and in scheduling the mediation proceedings. The parties agree that they will participate in the mediation in good faith and that they will share equally in its costs.

9

12.2.2. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the parties, their agents, employees, experts and attorneys, and by the mediator or any JAMS employees, are confidential, privileged and inadmissible for any purpose, including impeachment, in any arbitration or other proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

12.2.3. Either party may initiate arbitration with respect to the matters submitted to mediation by ling a written demand for arbitration at any time following the initial mediation session or at any time following forty-five (45) days from the date of ling the written request for mediation, whichever occurs first (“Earliest Initiation Date”). The mediation may continue after the commencement of arbitration if the parties so desire.

12.2.4. At no time prior to the Earliest Initiation Date shall either side initiate an arbitration or litigation related to this Agreement except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties. However, this limitation is inapplicable to a party if the other party refuses to comply with the requirements of Section 12.2.3 above.

12.2.5. All applicable statutes of limitation and defenses based upon the passage of time shall be tolled until fifteen (15) days after the Earliest Initiation Date. The parties will take such action, if any, required to effectuate such tolling.

12.3. Entire Agreement. This Agreement sets forth the entire agreement between the parties with respect to the purchase of Shares by the Subscriber and merges all prior discussions between them.

12.4. Notice. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery, sent by electronic mail, telegram or by registered mail, with postage prepaid, return receipt requested; to:

If to the Corporation:

Doofus Corporation

108 West 13th Street

Wilmington, Delaware 19801

United States

Email: president@doofus.xyz

Attention: President

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If to the Subscriber:

The address provided in the Wefunder platform:

Email:

Attention:

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 12.4.

12.5. Successors and Assigns. The rights and benefits of the Corporation under this Agreement shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Corporation's successors and assigns. The rights and obligations of the Subscriber under this Agreement may only be assigned with the prior written consent of the Corporation and any purported transfer otherwise shall be null and void.
12.6. Amendment; Enforcement of Rights. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. Either party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and shall not constitute a waiver of either party's right to assert all other legal remedies available to it under the circumstances.
12.7. Cooperation. The Subscriber agrees upon request to execute any further documents or instruments necessary or desirable to carry out the purposes or intent of this Agreement.
12.8. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.
12.9. Electronic Signatures. Any signature page delivered electronically (including without limitation transmission by PDF) shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any amendment thereto. Any party

11

who delivers such a signature page agrees to later deliver an original counterpart to the other party if so requested.

12.10. Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms.

12.11. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs, and disbursements in addition to any other relief to which such party may be entitled. The Corporation and the Subscriber shall bear their own expenses and legal fees incurred on their behalf with respect to this Agreement and the transactions contemplated hereby.

12.12. Cancellation of Shares. If the Corporation (or its assignee(s)) shall make available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such Shares are to be repurchased shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement), and such Shares shall be deemed purchased in accordance with the applicable provisions hereof and the Corporation (or its assignee(s)) shall be deemed the owner and holder of such Shares, whether or not the certificates therefor have been delivered as required by this Agreement.

12.13. Acknowledgement. The Subscriber has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement.

12.14. Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

IN WITNESS WHEREOF, the Corporation has caused this SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT to be executed by authority of its Board of Directors, and the Subscriber has hereunto set its hand, on the day and year first above written.

[Signatures on Next Page]

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

Number of Shares: [SHARES]

Aggregate Purchase Price: $[AMOUNT]

COMPANY:

Doofus Corporation

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

SUBSCRIBER:

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

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

# **ANNUAL REPORT**

**For the fiscal year ended December 31, 2021**

[LOGO]

**Doofus Corporation**

**021-344061**

(Securities and Exchange Commission File Number)

**Delaware**

(State of Incorporation or Organization)

**37-1836035**

(I.R.S. Employer Identification Number)

**Hardturmstrasse 161, 8005 Zurich  
Switzerland**

(Address of Principal Executive Offices)

**+41 44 551 00 05**

(Telephone Number)

The number of shares of common stock outstanding as of December 31, 2021 was 513,250,000.

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# TABLE OF CONTENTS

|  | Page |
| --- | --- |
| PART I |  |
| Item 1. Business | 4 |
| Item 1A. Risk Factors | 6 |
| Item 1B. Unresolved Staff Comments | 18 |
| Item 2. Properties | 18 |
| Item 3. Legal Proceedings | 18 |
| Item 4. Mine Safety Disclosures | 18 |
| PART II |  |
| Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities | 19 |
| Item 6. Selected Financial Data | 19 |
| Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | 20 |
| Item 7A. Quantitative and Qualitative Disclosures about Market Risk | 25 |
| Item 8. Financial Statements and Supplementary Data | 26 |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 42 |
| Item 9A. Controls and Procedures | 42 |
| Item 9B. Other Information | 42 |
| PART III |  |
| Item 10. Directors, Executive Officers and Corporate Governance | 43 |
| Item 11. Executive Compensation | 43 |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 43 |
| Item 13. Certain Relationships and Related Transactions, and Director Independence | 44 |
| Item 14. Principal Accounting Fees and Services | 44 |
| PART IV |  |
| Item 15. Exhibits, Financial Statement Schedules | 45 |
| Item 16. Annual Report Summary | 45 |
| Signatures | 46 |

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## SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Annual Report include, but are not limited to, statements about:

- • the ability of our products to attract and retain users and increase their level of engagement;
- • our plans regarding health and safety and our other top priorities, including our expectations regarding the impact on our reporting metrics, policies and enforcement;
- • our ability to develop new products, product features and services, improve our existing products and services, and increase the value of our products and services;
- • our business strategies, plans and priorities, including our plans for growth and hiring, investment in our research and development efforts, and our plans to scale capacity and enhance capability and reliability of our infrastructure, including capital expenditures relating to infrastructure;
- • our work to increase the stability, performance, development velocity and scale of our products;
- • our ability to provide content from third parties, including our ability to secure content on terms that are acceptable to us;
- • our expectations regarding our user growth and growth rates and related opportunities;
- • our ability to increase our revenue and our revenue growth rate;
- • our ability to monetize and improve monetization of our products and services;
- • our future financial performance, including revenue, cost of revenue, operating expenses, including stock-based compensation and income taxes;
- • our expectations regarding certain deferred tax assets and fluctuations in our tax expense and cash taxes;
- • the impact of privacy and data protection laws and regulations;
- • the impact of content-related legislation or regulation;
- • our expectations on future litigation or the decisions of the courts;
- • the effects of trends on our results of operations;
- • the impact of our future transactions and corporate structuring on our income and other taxes;
- • the sufficiency of our cash, cash equivalents and short-term investments together with cash generated from operations to meet our working capital and capital expenditure requirements;
- • our ability to timely and effectively develop, invest in, scale and adapt our existing technology and network infrastructure;
- • our ability to successfully acquire and integrate companies and assets; and
- • our expectations regarding international operations and foreign exchange gains and losses.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Annual Report.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Annual Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, cash flows or prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled 'Risk Factors' and elsewhere in this Annual Report. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Annual Report. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Annual Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Annual Report to reflect events or circumstances after the date of this Annual Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

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PART I

Item 1. Business

*Overview*

Doofus is a technology company.

*Products and Services*

We are a multinational business that builds and operates technology-related products and services, which include content distribution and sharing, digital assets, fintech, risk management, search, and online verification.

*Competition*

Our business environment is characterized by rapid technological changes, frequent product innovation and the continuously evolving preferences and expectations of internet users. We face significant competition in every aspect of our business, including from content providers and content platforms. We also compete to attract, engage and retain the users of such content. We have seen escalating competition for engaging content and expect this trend to continue. We also compete to attract and retain talented employees, especially software engineers, designers, marketers and product managers. We will continue to compete with the following companies for users' attention:

- Companies that offer products that enable people to create and share ideas, videos and other content and information. These offerings include, for example, Alphabet (including Google and YouTube), Facebook (including Instagram and WhatsApp), Microsoft (including LinkedIn), Snapchat, TikTok, and Verizon Media Group, as well as largely regional social media and messaging companies that have strong positions in particular countries (including WeChat, Kakao, and Line). Although we often seek differentiated content, we face competition for content rights from other digital distributors and traditional providers, which may limit our ability to secure such content on economic and other terms that are acceptable to us in the future.
- Companies that offer advertising inventory and opportunities to advertisers.
- Companies that develop applications, particularly mobile applications, that create, syndicate and distribute content across internet properties.
- Traditional, online, and mobile businesses that enable people to consume content.

As we introduce new products and services, as our existing products and services evolve, or as other companies introduce new products and services, we may become subject to additional competition.

Our industry is evolving rapidly and is highly competitive. See the sections titled "Risk Factors - If we are unable to compete effectively, our business and operating results could be harmed." and "Risk Factors - We depend on highly skilled personnel to operate and grow our business. If we are unable to hire, retain and motivate our personnel, we may not be able to grow effectively."

*Technology, Research and Development*

Doofus will be composed of a collection of core, scalable and distributed products and services that will be built from proprietary and open-source technologies. These systems will be capable of delivering information, including images and video, to millions of people a day in an efficient and reliable way. We will continue to invest in our existing products and services, as well as develop new products and services through research and product development. We will also continue to invest in protecting the safety, security, and integrity of our products and services by investing in both people and technology, including artificial intelligence.

*Sales and Marketing*

We use marketing campaigns to help drive audiences to our platforms and we will continue to highlight our value propositions for users across all our brands.

*Intellectual Property*

We seek to protect our intellectual property rights by relying on federal, state and common law rights in the US and other countries, as well as contractual restrictions. We enter into confidentiality and intellectual property assignment agreements with all our directors, officers, employees and consultants, and confidentiality agreements with other third parties, in order to limit access to, and disclosure and use of, our confidential information and proprietary technology. In addition to these contractual arrangements, we may also rely on a combination of trademarks, trade dress, domain names, copyrights, trade secrets and patents to help protect our brand and our other intellectual property.

*Government Regulation*

We are subject to a number of US federal and state and foreign laws and regulations that involve matters central to our business. These laws and regulations may involve privacy, data protection, security, rights of publicity, content regulation, data localization, intellectual property, competition, protection of minors, consumer protection, credit card processing, taxation, or other subjects. Many laws and regulations impacting our business are being proposed, are still evolving or are being tested in courts and could be interpreted and applied in a manner that is inconsistent from country to country and inconsistent with our current policies and practices and in ways that could harm our business. In addition, the application and interpretation of these laws and regulations often are uncertain, particularly in the new and rapidly evolving industry in which we operate.

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With regard to privacy, data protection and security, we are subject to a variety of federal, state and foreign laws and regulations. For example, the California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020, requires covered companies to, among other things, provide new disclosures to California consumers, and afford such consumers new abilities to opt-out of certain sales of personal information. Similar legislation has been proposed or adopted in other states. Additionally, a new California ballot initiative, the California Privacy Rights Act (CPRA), was passed in November 2020. The CPRA creates obligations relating to consumer data beginning on January 1, 2022, with implementing regulations expected on or before July 1, 2022, and enforcement beginning July 1, 2023. Aspects of the CCPA, the CPRA and these other state laws and regulations, as well as their interpretation and enforcement, remain unclear, and we may be required to modify our practices in an effort to comply with them. Foreign data protection, privacy, security, consumer protection, content regulation and other laws and regulations are often more restrictive or burdensome than those in the US. For example, the General Data Protection Regulation, or the GDPR, imposes stringent operational requirements for entities processing personal information and significant penalties for non-compliance. There are also a number of legislative proposals pending before the US Congress, various state legislative bodies and foreign governments concerning content regulation and data protection that could affect us.

People may be restricted from accessing our products and services from certain countries, and other countries may have intermittently restricted access to our products and services. For example, our products and services may not be directly accessible in some countries or may be blocked, and some content may be blocked. It is possible that governments may seek to restrict access to or block our products and services, censor content available through our products and services, or impose other restrictions that may affect the accessibility or usability of our products and services for an extended period of time or indefinitely, including because of our decisions with respect to the enforcement of our guidelines. For instance, some countries have enacted laws that allow websites to be blocked for hosting certain types of content.

For additional information, see the section titled 'Risk Factors - Our business is subject to complex and evolving US and foreign laws and regulations. These laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, increased cost of operations or declines in user growth, user engagement, or otherwise harm our business.'

### Seasonality

Spending is traditionally strongest in the fourth quarter of each year. Historically, this seasonality in spending will affect our quarterly results, with higher sequential revenue growth from the third quarter to the fourth quarter compared to sequential revenue from the fourth quarter to the subsequent first quarter.

### Human Capital

We believe the depth of our workforce is critical to our success as we strive to become a leading technology company. Our key human capital management objectives are to attract, retain, and develop the talent we need to deliver on our commitment to assist the public in a fair, safe and responsible way by offering outstanding products and services. Examples of our key programs and initiatives that are focused to achieve these objectives include:

- a flexible and decentralized work environment;

### Corporate Information

We were incorporated in Delaware on August 29, 2016. Our principal executive offices are located at Hardturmstrasse 161, 8005 Zurich, Switzerland, and our telephone number is +41 44 551 00 05.

### Available Information

Our website is located at https://www.doofus.xyz. Copies of our annual and quarterly reports are available, free of charge, on our website as soon as reasonably practicable. The SEC also maintains a website that contains our SEC filings at https://www.sec.gov. Additionally, we provide notifications of news or announcements regarding our financial performance, including SEC filings and press and earnings releases, on our website. We have used, and intend to continue to use, our website as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Further corporate governance information, including our certificate of incorporation, bylaws, corporate governance guidelines, board committee charters, and code of ethics and business conduct, is also available on our website under the heading 'Documents.' The contents of our website are not intended to be incorporated by reference into this Annual Report or in any report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

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## Item 1A. Risk Factors

Investing in our shares of common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes, before making a decision to invest in our common stock. The risks and uncertainties described below may not be the only ones we face. If any of the risks occurs, our business, financial condition, operating results, cash flows and prospects could be materially and adversely affected. In that event, the perceived value of our common stock could decline, and you could lose part or all of your investment.

### Risk Factor Summary

Our business operations are subject to numerous risks and uncertainties, including those outside of our control, that could cause our business, financial condition, or operating results to be harmed, including risks regarding the following:

#### *Business and Operational Factors*

- failure to attract, retain and increase customers and content partners;
- competition in our industry;
- our prioritization of the long-term health of our service and product innovation;
- our ability to establish, maintain and promote our products and brands;
- our ability to attract new users or generate revenue with new products, product features, services and initiatives and changes to existing products, services and initiatives;
- our ability to hire, retain and motivate highly skilled personnel;
- the interoperability of our products and services across third-party services and systems;
- actual or perceived security breaches, as well as errors, vulnerabilities or defects in our software and in products of third-party providers;
- our international operations;
- our past operating losses and any inability to maintain profitability or accurately predict fluctuations in the future;
- our reliance on assumptions and estimates to calculate certain key metrics;
- catastrophic events and interruptions by man-made problems;

#### *Intellectual Property and Technology*

- our ability to scale our existing technology and infrastructure;
- our failure to protect our intellectual property rights;
- our use of open-source software;
- future litigation related to intellectual property rights;

#### *Regulatory and Legal*

- complex and evolving United States ("US") and foreign laws and regulations;
- regulatory investigations and adverse settlements;
- lawsuits or liability as a result of content published through our products and services;
- our ability to maintain an effective system of disclosure controls and internal control over financial reporting;

#### *Financial and Transactional Risks*

- our ability to make and successfully integrate acquisitions and investments or complete divestitures;
- our debt obligations;
- our tax liabilities;
- our ability to use our net operating loss carryforwards;
- the impairment of our goodwill or intangible assets;

#### *Governance Risks and Risks Related to Ownership of our Capital Stock*

- provisions of Delaware law and our certificate of incorporation and bylaws could impair a takeover attempt if deemed undesirable by our board of directors;
- the perceived value of our common stock;
- failure to return capital to our stockholders; and
- securities or industry analysts' recommendations regarding our common stock.

### Business and Operational Factors

*If we fail to attract and increase customers and content partners ("users"), our revenue, business and operating results may be harmed.*

Our users and their level of engagement are critical to our success and our long-term financial performance will be significantly determined by our success in increasing the growth rate of our customer base. Our customer growth rate may fluctuate over time, and it may slow or decline. We will generate a substantial majority of our revenue based upon subscriptions. A number of factors may affect and could potentially negatively affect customer growth, including if:

6

- we are unable to convince users of the value and usefulness of our products and services;
- there is a decrease in the perceived quality, usefulness, trustworthiness or relevance of the content generated by users;
- there are concerns related to communication, privacy, data protection, safety, security, spam, manipulation or other hostile or inappropriate usage or other factors;
- our users terminate their relationships with us or do not renew their subscriptions or agreements on economic or other terms that are favorable to us;
- we fail to introduce new and improved products or services or if we introduce new or improved products or services that are not favorably received or that negatively affect user engagement;
- technical or other problems prevent us from delivering our products or services in a rapid and reliable manner or otherwise affect users' experiences on our products or with our services;
- users have difficulty installing, updating, or otherwise accessing our products or services on mobile and other devices as a result of actions by us or third parties that we rely on to distribute our products and deliver our services;
- changes in our products or services that are mandated by, or that we elect to make or to address, laws (such as the General Data Protection Regulations (GDPR)) or legislation, inquiries from legislative bodies, regulatory authorities or litigation (including settlements or consent decrees) adversely affect our products or services;
- we fail to provide adequate customer service; or
- we do not maintain our brand image or reputation.

If we are unable to increase our user base or engagement, or if these metrics decline, our products and services could be less attractive to users, which would have a material and adverse impact on our business, financial condition, and operating results.

***If we are unable to compete effectively, our business and operating results could be harmed.***

We may face intense competition for users to use our products and services. We may compete for users against a variety of social content and networking platforms, messaging companies, media companies and other companies, some of which have greater financial resources, larger audiences or more established relationships and reputations. New or existing competitors may draw users towards their products or services and away from ours by introducing new products or product features, including products or product features similar to those we offer, investing their greater resources in customer acquisition efforts, or otherwise developing products or services that users choose to engage with rather than ours, any of which could decrease customer acquisition and growth, and negatively affect our business.

We may also compete with respect to content generated by our users. We may not establish and maintain relationships with users or our users may choose to publish content on other platforms, and if they cease to utilize our platforms or decrease their use of our platforms, then our customer base and subscription revenue may decline.

We believe that our ability to compete effectively for users depends upon many factors both within and beyond our control, including:

- the popularity, usefulness, ease of use, performance and reliability of our products and services compared to those of our competitors, as well as our reputation and brands, and our ability to adapt to continuously evolving preferences and expectations of users;
- the volume, quality and timeliness of content generated on our platforms;
- the timing and market acceptance of our products and services;
- the prominence of our applications in application marketplaces and of our content in search engine results, as well as those of our competitors;
- our ability, in and of itself, and in comparison to the ability of our competitors, to develop new products and services and enhancements to existing products and services, and to maintain the reliability and security of our products and services as usage increases globally;
- changes mandated by, or that we elect to make to address legislation, regulatory authorities or litigation, including settlements, antitrust matters, consent decrees and privacy regulations, some of which may have a disproportionate effect on us compared to our competitors; and
- the adoption and monetization of our products and services in the US and internationally.

Additionally, in recent years, there have been significant acquisitions and consolidation by and among our actual and potential competitors. We anticipate this trend of consolidation will continue, which will present heightened competitive challenges for our business. Acquisitions by our competitors may result in reduced functionality of our products and services.

If we are not able to compete effectively for users, our business and operating results would be materially and adversely impacted.

***Our prioritization on the long-term health of our products and services, and on product innovation may adversely impact our short-term operating results.***

We believe that our long-term success depends on our ability to attract, maintain and improve the content offered on our platforms. We have made this one of our top priorities and will focus our efforts on the quality of such content, including by devoting substantial internal resources to our strategy.

We may make active decisions to prioritize long-term initiatives over near-term product innovations and improvements that may affect our short-term health. These decisions may not be consistent with the short-term expectations of our users or investors and may not produce the long-term benefits that we anticipate, in which case our customer base and our relationships with users, and our business and operating results, could be harmed.

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We encourage our employees to swiftly develop and launch new and innovative products, product features and services. We focus on improving the experience for users using our products and services, which includes protecting their privacy, and on developing new and improved products and services for users on our platforms. We prioritize innovation and the experience for users on our platforms over short-term operating results. We may frequently make product, product feature and service decisions that could reduce our short-term operating results if we believe that the decisions are consistent with our goals to improve the experience for users, which we believe will improve our operating results over the long term. Our decisions to invest in the long-term health of our services and on product innovation rather than short-term results may not produce the long-term benefits that we expect, in which case our customer base and our relationships with users, and our business and operating results, could be adversely impacted and may not be consistent with the expectations of investors, which could have a negative effect on the perceived value of our common stock.

If we are unable to establish, maintain and promote our brands, our business and operating results may be harmed.

We believe that promoting and growing our brands is critical to increasing users. Maintaining and promoting our brands will depend largely on our ability to continue to provide timely, useful, reliable and innovative products and services with a focus on a positive experience on our platforms, which we may not do successfully. We may introduce new products, features, services, or terms of service that users do not like, which may negatively affect our brands. Additionally, the actions of users may affect our brands if users do not have a positive experience using our platforms' content. We may also experience media, legislative or regulatory scrutiny of our decisions regarding privacy, data protection, security, content and other issues, which may adversely affect our reputation and brands. Our brands may also be negatively affected by third parties obtaining control over users' accounts or by other security or cybersecurity incidents. Maintaining and enhancing our brands may require us to make substantial investments which may not achieve the desired goals.

Additionally, we and our executive leadership may receive unavoidable media coverage. Negative publicity about our Corporation or executives, including about the quality and reliability of our products or of content provided on our platforms, changes to our products, policies and services, our privacy, data protection, policy enforcement and security practices (including actions taken or not taken with respect to certain content or reports regarding government surveillance), litigation, regulatory activity, the actions of certain users (including actions taken by users on our platforms or the dissemination of information that may be viewed as undesirable, misleading or manipulative), even if inaccurate, could adversely affect our reputation. Such negative publicity and reputational harm could adversely affect users and their confidence in, and loyalty to, our platforms and result in decreased revenue or increased costs to restore our brands, which would adversely impact our business, financial condition and operating results.

Our new products, product features, services and initiatives and changes to existing products, services and initiatives could fail to attract new users or generate revenue.

Our industry is subject to rapid and frequent changes in technology, evolving user demands and the frequent introduction by our competitors of new and enhanced offerings. We must constantly assess the environment in which we operate and determine whether we need to improve or re-allocate resources amongst our existing products and services or create new ones (independently or in conjunction with third parties). Our ability to attract users and increase our user base and generate revenue will depend on those decisions. We may introduce significant changes to our existing products and services or develop and introduce new and unproven products and services, including technologies with which we have little or no prior development or operating experience. If new or enhanced products, product features or services fail to engage users, we may fail to attract or retain users or to generate sufficient revenue or operating profit to justify our investments, and our business, financial condition and operating results would be adversely impacted.

We depend on highly skilled personnel to operate and grow our business. If we are unable to hire, retain and motivate our personnel, we may not be able to grow effectively.

Our future success and strategy will depend upon our continued ability to identify, hire, develop, motivate and retain highly skilled personnel, including senior management, engineers, designers, product managers and marketers. We depend on contributions from our employees and, in particular, our senior management team, to execute efficiently and effectively. We have employment agreements with all members of our senior management and other employees. We do not maintain key person life insurance for any employee. We also face significant competition for employees in Zurich, Switzerland (where our headquarters are located) for engineers, designers, product managers and marketers from other technology startups and high-growth companies, which include both publicly traded and privately held companies. As a result, we may not be able to retain our existing employees or hire new employees fast enough to meet our needs.

From time to time, we may experience high voluntary erosion, and in those times the resulting influx of new leaders and other employees will require us to expend time, attention and resources to recruit and retain talent, restructure parts of our organization and train and integrate new employees. In addition, to attract and retain skilled personnel, we have to offer, and believe we will need to continue to offer, highly competitive compensation packages. We may need to invest significant amounts of cash and equity to attract and retain new employees and we may not realize sufficient return on these investments. In addition, changes to immigration and work authorization laws and regulations can be significantly affected by political forces and levels of economic activity. Our business may be materially adversely affected if legislative or administrative changes to immigration or visa or permit laws, and regulations impair our hiring processes or projects involving personnel who are not citizens of the country where the work is to be performed. If we are not able to effectively attract and retain employees, we may not be able to innovate or execute quickly on our strategy and our ability to achieve our strategic objectives will be adversely impacted, and our business will be harmed.

We also believe that our culture and core values will be a key contributor to our success and our ability to foster the innovation, creativity and teamwork we believe we need to support and grow our operations. If we fail to effectively manage our hiring needs and successfully integrate our new hires, our efficiency and ability to meet our forecasts, our culture, employee morale, productivity and retention could suffer, and our business and operating results would be adversely impacted.

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*Our products, services, and customer retention and growth depend upon the availability of a variety of third-party services and systems and the effective interoperation with operating systems, networks, devices, web browsers and standards. We do not control all of these systems and cannot guarantee their availability, and we cannot guarantee that third parties will not take actions that harm our products or profitability.*

Our products and the success of our business is dependent upon the ability of people to access the Internet and the proper functioning of the various operating systems, platforms and services upon which we rely. These systems are provided and controlled by factors outside of our control, including nation-state actors who may suppress or censor our products, and broadband and Internet access marketplace, including incumbent telephone companies, cable companies, mobile communications companies, government-owned service providers, device manufacturers and operating system providers. Any of these actors could take actions that degrade, disrupt, or increase the cost of access to our products or services, which would in turn, negatively impact our business. The adoption or repeal of any laws or regulations that adversely affect the growth, popularity or use of the Internet, including laws or practices limiting Internet neutrality, could decrease the demand for, or the usage of, our products and services, increase our cost of doing business and adversely affect our operating results. For example, access to our products and services may be blocked in certain countries.

We also rely on other service providers to maintain reliable network systems that provide adequate speed, data capacity and security. We utilize third-party cloud computing services in connection with certain aspects of our business and operations, and any disruption of, or interference with, our use of such cloud services could adversely impact our business and operations. As the Internet continues to experience growth in the number of consumers, frequency of use and amount of data transmitted, the Internet infrastructure that we rely on may be unable to support the demands placed upon it. The failure of the Internet infrastructure that we rely on, even for a short period of time, could undermine our operations and harm our operating results.

Furthermore, these systems, devices or software or services may experience changes, bugs, or technical issues that may affect the availability of services or the accessibility of our products. We may experience service disruptions, outages, and other performance problems due to a variety of factors, including infrastructure changes, human or software errors, hardware failure, capacity constraints due to an overwhelming number of users accessing our products and services simultaneously, computer viruses and denial of service or fraud or security attacks. We may experience brief service outages as a result, in part, of software misconfigurations. Additionally, although we may invest significantly to improve the capacity, capability, and reliability of our infrastructure, we may not serve traffic equally through co-located data centers that support our products and services. Accordingly, in the event of a significant issue at a data center supporting our network traffic, some of our products and services may become inaccessible to our users or our users may experience difficulties accessing our products and services. Any disruption or failure in our infrastructure could hinder our ability to handle existing or increased traffic on our platforms, which could significantly harm our business.

The availability of these services is also dependent upon our relationships with third parties, which may change, including if they change their terms of service or policies that diminish the functionality of our products and services, make it difficult for users to access our products and services, impose fees related to our products or services or give preferential treatment to competitive products or services, could adversely affect usage of our products and services. Additionally, some mobile carriers may experience infrastructure issues due to natural disasters, which may cause deliverability errors or poor quality communications with our products. Because most users may access our products and services through mobile devices, we are particularly dependent on the interoperability of our products and services with mobile devices and operating systems in order to deliver our products and services. We also may not be successful in developing relationships with key participants in the mobile industry or in developing products or services that operate effectively with these operating systems, networks, devices, web browsers and standards. Furthermore, if the number of platforms for which we develop our product expands, it will result in an increase in our operating expenses. In order to deliver high quality products and services, it is important that our products and services work well with a range of operating systems, networks, devices, web browsers and standards that we do not control. Any such errors, regardless of whether caused by our infrastructure or that of the service provider, may result in the loss of our users or may make it difficult to attract new users to our platforms. In the event that it is difficult for users to access and use our products and services, particularly on their mobile devices, our customer growth could be harmed, and our business and operating results could be adversely impacted.

*Our products may contain errors, or our security measures may be breached, resulting in the exposure of private information. Our products and services may be subject to attacks that degrade or deny the ability of users to access our products and services. These issues may result in the perception that our products and services are not secure, and users may curtail or stop using our products and services and our business and operating results could be harmed.*

Our products and services involve the storage and transmission of users' information, and security incidents, including those caused by unintentional errors and those intentionally caused by third parties, may expose us to a risk of loss of this information, litigation, increased security costs and potential liability. We and our third-party service providers may experience cyber-attacks of varying degrees on a regular basis. We expect to incur significant costs in an effort to detect and prevent security breaches and other security-related incidents, and we may face increased costs in the event of an actual or perceived security breach or other security-related incident. If an actual or perceived breach of our security occurs, the market perception of the effectiveness of our security measures could be harmed, our users may be harmed, lose trust and confidence in us, decrease the use of our products and services, or stop using our products and services in their entirety. We may also incur significant legal and financial exposure, including legal claims, higher transaction fees and regulatory fines and penalties. Any of these actions could have a material and adverse effect on our business, reputation, and operating results. While our insurance policies may include liability coverage for certain of these matters, if we experienced a significant security incident, we could be subject to liability or other damages that exceed our insurance coverage.

Our products and services incorporate complex software, and we encourage employees to quickly develop and help us launch new and innovative features. Our software, including any open-source software that is incorporated into our code, may now or in the future, contain errors, bugs, or vulnerabilities that may only be discovered after the product or service has been released. Errors, vulnerabilities, or other design defects within the software on which we rely may result in a negative experience for users who use

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our products, delay product introductions or enhancements, result in targeting, measurement, or billing errors, compromise our ability to protect the data of our users and our intellectual property, or lead to reductions in our ability to provide some or all of our services. Any errors, bugs or vulnerabilities discovered in our code after release could result in damage to our reputation, loss of users and revenue, or liability for damages or other relief sought in lawsuits, regulatory inquiries, or other proceedings, any of which could adversely impact our business and operating results.

Our products operate in conjunction with, and we are dependent upon, third-party products and components across a broad ecosystem. If there is a security vulnerability, error, or other bug in one of these third-party products or components, and if there is a security exploit targeting them, we could face increased costs, liability claims, reduced revenue, or harm to our reputation or competitive position. The natural sunsetting of third-party products and operating systems that we use requires that our infrastructure teams reallocate time and attention to migration and updates, during which period potential security vulnerabilities could be exploited. We may also work with third-party vendors to process credit card payments by our users and are subject to payment card association operating rules.

Unauthorized parties may also gain access to passwords without attacking our platforms directly and, instead, access users' accounts by using credential information from other recent breaches, using malware on victim devices that are stealing passwords for all sites, or a combination of both. In addition, some of our developers or other partners, such as third-party applications to which people have given permission to access on their behalf, may receive or store information provided by us or by users on our platforms through mobile or web applications integrated with us. If these third parties or developers fail to adopt or adhere to adequate data security practices, or in the event of a breach of their networks, our data or data of users on our platforms may be improperly accessed, used, or disclosed. Unauthorized parties may in the future obtain access to our data and data of users on our platforms. Any systems failure or actual or perceived compromise of our security that results in the unauthorized access to or release of data of users on our platforms, such as credit card data, could significantly limit the adoption of our products and services, as well as harm our reputation and brands and, therefore, our business.

Our security measures may also be breached due to employee error, malfeasance or otherwise. Additionally, outside parties may attempt to fraudulently induce employees or users to disclose sensitive information in order to gain access to our data or data of users on our platforms, or may otherwise obtain access to such data or accounts. Since users may use our platforms to establish and maintain online identities, unauthorized communications from our users' accounts that have been compromised may damage their personal security, reputations and brand, as well as our reputation and brands. Because the techniques used to obtain unauthorized access, disable, or degrade service or sabotage systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.

# Our international operations may be subject to increased challenges and risks.

We may establish offices around the world and our products and services may be available in multiple languages. However, our ability to manage our business, monetize our products and services and conduct our operations internationally requires considerable management attention and resources and is subject to the particular challenges of supporting a business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems and commercial markets. Our international operations may require and may continue to require us to invest significant funds and other resources. Operating internationally may subject us to new risks and may increase risks that we currently face, including risks associated with:

recruiting and retaining talented and capable employees in foreign countries and maintaining our corporate culture across all of our offices;
- providing our products and services and operating across a significant distance, in different languages and among different cultures, including the potential need to modify our products, services, content and features to ensure that they are culturally relevant in different countries;
- competition from regional platforms, mobile applications and services that provide content and have strong positions in particular countries, which have expanded and may continue to expand their geographic footprint;
- differing and potentially lower levels of user growth and engagement in new and emerging geographies;
greater difficulty in monetizing our products and services, including costs to adapt our products and services in light of the manner in which users access our platforms in such jurisdictions, such as the use of feature phones in certain emerging markets, and challenges related to different levels of Internet access or mobile device adoption in different jurisdictions;
- compliance with applicable foreign laws and regulations, including laws and regulations with respect to privacy, data protection, data localization, data security, taxation, consumer protection, copyright, spam and content, and the risk of penalties to users of our products and services and individual members of management if our practices are deemed to be out of compliance;
- actions by governments or others to restrict access to our platforms, whether these actions are taken for political reasons, in response to decisions we make regarding governmental requests or content generated by users on our platforms, or otherwise;
longer payment cycles in some countries;
credit risk and higher levels of payment fraud;
operating in jurisdictions that do not protect intellectual property rights to the same extent as the US;
- compliance with anti-bribery laws including, without limitation, compliance with the Foreign Corrupt Practices Act and the United Kingdom ("UK") Bribery Act, including by our business partners;
- currency exchange rate fluctuations, as we conduct business in currencies other than US dollars but report our operating results in US dollars and any foreign currency forward contracts into which we enter may not mitigate the impact of exchange rate fluctuations;
- foreign exchange controls that might require significant lead time in setting up operations in certain geographic territories and might prevent us from repatriating cash earned outside of the US;
political and economic instability in some countries;
- double taxation of our international earnings and potentially adverse tax consequences due to changes in the tax laws of the US or the foreign jurisdictions in which we operate, and
- higher costs of doing business internationally, including increased accounting, travel, infrastructure, and legal compliance costs.

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If our revenue from our international operations, and particularly from our operations in the countries and regions where we have focused our spending, does not exceed the expense of establishing and maintaining these operations, our business and operating results will suffer. In addition, users may grow more rapidly than revenue in international regions where the monetization of our products and services is not as developed. Our inability to successfully expand our business, manage the complexity of our global operations, or monetize our products and services internationally, could adversely impact our business, financial condition and operating results.

# ***We may incur significant operating losses, or we may not be able to maintain profitability or accurately predict fluctuations in our operating results from quarter to quarter.***

Our annual operating results may fluctuate and as a result, our past annual operating results may not necessarily be indicators of future performance. Our operating results in any given quarter can be influenced by numerous factors, many of which we are unable to predict or are outside of our control, including:

- • our ability to attract and retain users;
- • the occurrence of unplanned significant events, such as natural disasters and political revolutions, as well as seasonality which may differ from our expectations;
- • the pricing of our products and services, and our ability to maintain or improve revenue and margins;
- • the development and introduction of new products or services, changes in features of existing products or services or de-emphasis or termination of existing products, product features or services;
- • the actions of our competitors;
- • increases in research and development, sales and marketing, and other operating expenses that we may incur to grow and expand our operations and to remain competitive, including stock-based compensation expense and costs related to our technology infrastructure;
- • costs related to the acquisition of businesses, talent, technologies or intellectual property, including potentially significant amortization costs;
- • system failures resulting in the inaccessibility of our products and services;
- • actual or perceived breaches of security or privacy, and the costs associated with remediating any such breaches;
- • adverse litigation judgments, settlements or other litigation-related costs, and the fees associated with investigating and defending claims;
- • changes in the legislative or regulatory environment, including with respect to security, tax, privacy, data protection or content, or enforcement by government regulators, including fines, orders or consent decrees;
- • changes in reserves or other non-cash credits or charges, such as releases of deferred tax assets valuation allowance, impairment charges or purchase accounting adjustments;
- • changes in our expected estimated useful life of property and equipment and intangible assets;
- • fluctuations in currency exchange rates and changes in the proportion of our revenue and expenses denominated in foreign currencies;
- • changes in US generally-accepted accounting principles; and
- • changes in global or regional business or macroeconomic conditions.

Given the rapidly evolving markets in which we compete, our historical operating results may not be useful to you in predicting our future operating results. Additionally, certain new revenue products or product features may carry higher costs relative to our other products, which may decrease our margins, and we may incur increased costs to scale our operations if users and engagement on our platforms increase. If we are unable to generate adequate revenue growth and to manage our expenses, we may incur significant losses in future periods and may not be able to achieve profitability.

# ***We rely on assumptions and estimates to calculate certain of our key metrics, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.***

We may calculate our number of users using internal company data that has not been independently verified. While these numbers may be based on what we believe to be reasonable calculations for the applicable period of measurement, there are inherent challenges in measuring number of users and user engagement. For example, there may be a number of false or spam accounts in existence on our platforms. We may estimate that the average of false or spam accounts during a quarter represent a certain percentage of our users during that quarter. However, this estimate may be based on an internal review of a sample of accounts, and we may apply significant judgment in making this determination. As such, our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we may have estimated. We will continually seek to improve our ability to estimate the total number of false or spam accounts and eliminate them from the calculation of our number of users, but we may otherwise treat multiple accounts held by a single user or organization as multiple accounts for purposes of calculating our number of users because we permit users and organizations to have more than one account. Additionally, some accounts used by organizations may be used by many users within the organization. As such, the calculations of our number of users may not accurately reflect the actual number of users or organizations using our platforms. We will regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy. Our measures of user growth and engagement may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. If users or investors do not perceive our metrics to be accurate representations of our total accounts or user engagement, or if we discover material inaccuracies in our metrics, our reputation may be harmed and users may be less willing to allocate their resources to our products and services, which could negatively affect our business and operating results. Furthermore, as our business develops, we may revise or cease reporting metrics if we determine that such metrics are no longer accurate or appropriate measures of our performance. For example, we may believe that our number of users, and its related growth, are not the best ways to measure our success against our objectives going forward. If investors, analysts, or users do not believe our reported measures, such as number of users, are sufficient, or accurately reflect our business, we may receive negative publicity and our operating results may be adversely impacted.

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*Our business is subject to the risks of natural disasters such as diseases, earthquakes, fire, power outages, floods, and other catastrophic events, and to interruption by man-made problems such as terrorism.*

A significant natural disaster, such as a pandemic or an earthquake, fire, flood, or significant power outage, could have a material adverse impact on our business, operating results and financial condition. Despite any precautions we may take, the occurrence of a natural disaster or other unanticipated problems at our data centers could result in lengthy interruptions in our services. In addition, acts of terrorism and other geo-political unrest could cause disruptions in our business. All of the aforementioned risks may be further increased if our disaster recovery plans prove to be inadequate. We have implemented disaster recovery programs, which allows us to move production to back-up data centers in the event of a catastrophe. Although these programs are functional, we may not serve network traffic equally from each data center, so if our primary data center shuts down, there may be a period of time that our products or services, or certain of our products or services, will remain inaccessible or people may experience severe issues accessing our products and services. We may not carry business interruption insurance sufficient to compensate us for the potentially significant losses, including the potential harm to our business that may result from interruptions in our ability to provide our products and services. Any such natural disaster or man-made drawback could adversely impact our business, financial condition, and operating results.

### **Intellectual Property and Technology**

*Our business and operating results may be harmed by our failure to timely and effectively scale and adapt our existing technology and infrastructure.*

As users generate more content, including text, photos and videos hosted by our platforms, we may be required to expand and adapt our technology and infrastructure to continue to reliably store, serve and analyze this content. It may become increasingly difficult to maintain and improve the performance of our products and services, especially during peak usage times, as our products and services become more complex and our platforms' traffic increases. In addition, because we may lease our data center facilities, we cannot be assured that we will be able to expand our data center infrastructure to meet demand in a timely manner, or on favorable economic terms. If users are unable to access our platforms or we are not able to make content available rapidly on our platforms, users may seek other channels to obtain the information, and may not return to our platforms or use our platforms as often in the future, or at all. This would negatively impact our ability to attract new users to our platforms and decrease the frequency of users returning to our platforms. We expect to make significant investments to improve the capacity, capability and reliability of our infrastructure. To the extent that we do not effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and infrastructure to accommodate actual and anticipated changes in technology, our business and operating results may be harmed.

We will scale the capacity of, and enhance the capability and reliability of, our infrastructure to support user growth and increased activity on our platforms. We expect that investments and expenses associated with our infrastructure will continue to grow, including the expansion and improvement of our data center operations and related operating costs, additional servers and networking equipment to increase the capacity of our infrastructure, increased utilization of third-party cloud computing and associated costs thereof, increased bandwidth costs, and costs to secure our users' data. The improvement of our infrastructure will require a significant investment of our management's time and our financial resources. If we fail to efficiently scale and manage our infrastructure, our business, financial condition, and operating results would be adversely impacted.

*Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services and brands.*

Intellectual property rights are important assets of our business and we seek protection for such rights as appropriate. To establish and protect our trade secrets, trademarks, copyrights and patents, we license and enter into confidentiality and intellectual property assignment agreement with our directors, officers, employees and consultants. Various circumstances and events outside of our control, however, pose threats to our intellectual property rights. We may fail to obtain effective intellectual property protection, effective intellectual property protection may not be available in every country in which our products and services are available, or such laws may provide only limited protection. Also, the efforts we have taken to protect our intellectual property rights may not be sufficient or effective and any of our intellectual property rights may be challenged, circumvented, infringed, or misappropriated which could result in them being narrowed in scope or declared invalid or unenforceable. There can be no assurance our intellectual property rights will be sufficient to protect against others offering products or services that are substantially similar to ours and compete with our business.

We rely on restrictions on the use and disclosure of our trade secrets and other proprietary information contained in agreements we sign with our directors, officers, employees and consultants to limit and control access to, and disclosure of, our trade secrets and confidential information. These agreements may be breached, or this intellectual property may otherwise be disclosed or become known to our competitors, including through hacking or theft, which could cause us to lose any competitive advantage resulting from these trade secrets and proprietary information.

We may pursue registration of trademarks and domain names in the US and in certain jurisdictions outside of the US. Effective protection of trademarks and domain names is expensive and difficult to maintain, both in terms of application and registration costs, as well as the costs of defending and enforcing those rights. We may be required to protect our rights in an increasing number of countries, a process that is expensive and may not be successful, or which we may not pursue in every country in which our products and services are distributed or made available.

We may be party to agreements that grant licenses to third parties to use our intellectual property. For example, third parties may distribute their content through our platforms, or embed our content in their applications or on their platforms and make use of our trademarks in connection with their services. We have a policy intended to assist third parties in the proper use of our trademarks, and resources dedicated to enforcing this policy and protecting our brands. We will review reports of improper and unauthorized use of our brands or trademarks and may issue takedown notices or initiate discussions with the third parties to correct

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the issues. However, there can be no assurance that we will be able to protect against the unauthorized use of our brands or trademarks. If the licensees of our brands or trademarks are not using our brands or trademarks appropriately and we fail to maintain and enforce our brand or trademark rights, we may limit our ability to protect our trademarks which could result in diminishing the value of our brands or in our trademarks being declared invalid or unenforceable. There is also a risk that one or more of our trademarks could become generic, which could result in such trademark being declared invalid or unenforceable.

We may also seek to obtain patent protection for some of our technologies. We may be unable to obtain patent protection for our technologies. Even if patents are issued from our patent applications, which is not certain, our patents, and any patents that may be issued in the future, may not provide us with competitive advantages or distinguish our products and services from those of our competitors. In addition, any patents may be contested, circumvented, or found unenforceable or invalid, and we may not be able to prevent third parties from infringing or otherwise violating them. Effective protection of patent rights is expensive and difficult to maintain, both in terms of application and maintenance costs, as well as the costs of defending and enforcing those rights.

Significant impairments of our intellectual property rights, and limitations on our ability to assert our intellectual property rights against others, could harm our business and our ability to compete.

Also, obtaining, maintaining, and enforcing our intellectual property rights is costly and time consuming. Any increase in the unauthorized use of our intellectual property would adversely impact our business, financial condition, and operating results.

*Many of our products and services contain open-source software, and we may license some of our software through open-source projects, which may pose particular risks to our proprietary software, products and services, in a manner that could adversely impact our business.*

We use open-source software in our products and services and will continue to use open-source software in the future. In addition, we may contribute software source code to open-source projects under open-source licenses or release internal software projects under open-source licenses in the future. The terms of many open-source licenses to which we may be subject have not been interpreted by US or foreign courts, and there is a risk that open-source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide or distribute our products or services. Additionally, under some open-source licenses, if we combine our proprietary software with open-source software in a certain manner, third parties may claim ownership of, or demand release of, the open-source software or derivative works that we developed using such software, which could include our proprietary source code. Such third parties may also seek to enforce the terms of the applicable open-source license through litigation which, if successful, could require us to make our proprietary software source code freely available, purchase a costly license or cease offering the implicated products or services unless and until we can re-engineer them to avoid infringement. This re-engineering process could require significant additional research and development resources, and we may not be able to complete it successfully. In addition to risks related to open-source license requirements, use of certain open-source software may pose greater risks than use of third-party commercial software, since open-source licensors generally do not provide warranties or controls on the origin of software. Any of these risks could be difficult to eliminate or manage, and, if not addressed, could adversely impact our business, financial condition and operating results.

*We may face lawsuits or incur liability as a result of content published or made available through our products and services.*

We may face claims relating to content that is published or made available through our products and services or third-party products or services. In particular, the nature of our business may expose us to claims related to defamation, intellectual property rights, rights of publicity and privacy, illegal content, misinformation, content regulation and personal injury offenses. The laws relating to the liability of providers of online products or services for activities of the people who use them remains somewhat unsettled, both within the US and internationally. This risk may be enhanced in certain jurisdictions outside the US where we may be less protected under local laws than we are in the US. For example, we may be subject to legislation in Germany that may impose significant fines for failure to comply with certain content removal and disclosure obligations. Other countries, including Singapore, India, Australia, and the UK, have implemented or are considering similar legislation imposing penalties for failure to remove certain types of content. We could incur significant costs investigating and defending these claims. If we incur material costs or liability as a result of these occurrences, our business, financial condition and operating results would be adversely impacted.

### **Regulatory and Legal**

*Our business is subject to complex and evolving US and foreign laws and regulations. These laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, increased cost of operations or declines in user growth, user engagement, or otherwise harm our business.*

We are subject to a variety of laws and regulations in the US and abroad that involve matters central to our business, including privacy, data protection, security, rights of publicity, content regulation, intellectual property, competition, protection of minors, consumer protection, credit card processing and taxation. Many of these laws and regulations are still evolving and being tested in courts. As a result, it is possible that these laws and regulations may be interpreted and applied in a manner that is inconsistent from country to country and inconsistent with our current policies and practices and in ways that could harm our business, particularly in the new and rapidly evolving industry in which we operate. Additionally, the introduction of new products or services may subject us to additional laws and regulations.

From time to time, governments, regulators and others may express concerns about whether our products, services, or practices compromise the privacy or data protection rights of the users on our platforms, and others. While we endeavor to comply with applicable privacy and data protection laws and regulations, our privacy policies, and other obligations we may have with respect to privacy and data protection, the failure or perceived failure to comply, may result in inquiries and other proceedings or actions against us by governments, regulators, or others. A number of proposals have recently been adopted or are currently pending before federal, state and foreign legislative and regulatory bodies that could significantly affect our business. Moreover,

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foreign data protection, privacy, consumer protection, content regulation and other laws and regulations are often more restrictive or burdensome than those in the US. For example, the General Data Protection Regulation ("GDPR") in the European Union and the European Economic Area ("EU") imposes stringent operational requirements for entities processing personal information and significant penalties for non-compliance, including fines of up to €20 million or four percent of total worldwide revenue, whichever is higher. Additionally, we rely on a variety of legal bases to transfer certain personal information outside of the EU, including the EU-US Privacy Shield Framework, the Swiss-US Privacy Shield Framework, and EU Standard Contractual Clauses, or SCCs. These legal bases all have been, and may be, the subject of legal challenges and they may be modified or invalidated. This could result in us being required to implement duplicative, and potentially expensive, information technology infrastructure and business operations in Europe or could limit our ability to collect or process personal information in Europe. Any of these changes with respect to EU data protection law could disrupt our business.

Further, the UK officially left the EU in 2020 (often referred to as "Brexit"). The effect of Brexit will depend on agreements, if any, the UK makes to retain access to EU markets. Brexit creates economic and legal uncertainty in the region and could adversely affect the tax, currency, operational, legal and regulatory regimes to which our business may be subject, including with respect to privacy and data protection. Brexit may adversely affect our revenues and subject us to new regulatory costs and challenges, in addition to other adverse effects that we are unable effectively to anticipate. The UK implemented a Data Protection Act, effective in May 2018 and statutorily amended in 2019, that substantially implements the GDPR, with penalties for noncompliance of up to the greater of £17.5 million or four percent of total worldwide revenues. Brexit has, however, created uncertainty with regard to the future regulation of data protection in the UK and requirements for data transfers between the UK and the EU and other jurisdictions. For example, the EU-UK Trade and Cooperation Agreement provides for a transition period of four months, subject to a potential two-month extension, in which the European Commission will, subject to certain exceptions that may result in termination of such transition period, continue to treat the UK as if it remained an EU member state with respect to personal data transfers. The UK may thereafter be considered a "third country" under the GDPR, with transfers of personal data from the EU to the UK needing to be made pursuant to GDPR-compliant safeguards unless the European Commission adopts an adequacy decision with respect to the UK. With substantial uncertainty over the interpretation and application of how the UK will approach and address the GDPR following the transition period, we may face challenges in addressing applicable requirements and making necessary changes to our policies and practices and may incur significant costs and expenses in an effort to do so.

Legislative changes in the US, at both the federal and state level, that could impose new obligations in areas such as privacy and liability for copyright infringement or content by third parties such as various Congressional efforts to restrict the scope of the protections available to online platforms under Section 230 of the Communications Decency Act, and our protections from liability for third-party content in the US could decrease or change. Additionally, recent amendments to US patent laws may affect the ability of companies, including us, to protect their innovations and defend against claims of patent infringement.

In April 2019, the EU passed the Directive on Copyright in the Digital Single Market (the EU Copyright Directive), which expands the liability of online platforms for user-generated content. Each EU member state has two years to implement it. The EU Copyright Directive may increase our costs of operations, our liability for user-generated content, and our litigation costs.

Additionally, we may have relationships with third parties that perform a variety of functions such as payments processing, tokenization, vaulting, currency conversion, fraud prevention and data security audits. The laws and regulations related to online payments and other activities of these third parties, including those relating to the processing of data, are complex, subject to change, and vary across different jurisdictions in the US and internationally. As a result, we may be required to spend significant time, effort and expense to comply with applicable laws and regulations. Any failure or claim of our failure to comply, or any failure or claim of failure by the above-mentioned third parties to comply, could increase our costs or could result in liabilities. Additionally, because we may accept payment via payment cards, we are subject to global payments industry operating rules and certification requirements governed by PCI Security Standards Council, including the Payment Card Industry Data Security Standard. Any failure by us to comply with these operating rules and certification requirements also may result in costs and liabilities and may result in us losing our ability to accept certain payment cards.

The US and foreign laws and regulations described above, as well as any associated inquiries or investigations or any other regulatory actions, may be costly to comply with and may delay or impede the development of new products and services, result in negative publicity, increase our operating costs, require significant management time and attention, and subject us to remedies that may result in a loss of users and otherwise harm our business, including fines or demands or orders that we modify or cease existing business practices.

We may allow the use of our platforms without the collection of extensive personal information. We may experience additional pressure to expand our collection of personal information in order to comply with new and additional legal or regulatory demands or we may independently decide to do so. If we obtain such additional personal information, we may be subject to additional legal or regulatory obligations.

**Regulatory investigations and settlements could cause us to incur additional expenses or change our business practices in a manner material and adverse to our business.**

From time to time, we may notify regulators of certain personal data breaches and privacy or data protection issues and may be subject to inquiries and investigations regarding various aspects of our regulatory compliance. We expect to be subject to regulatory scrutiny as our business grows and awareness of our brands increases.

It is possible that a regulatory inquiry, investigation, or audit could cause us to incur substantial fines and costs, result in reputational harm, prevent us from offering certain products, services, features, or functionalities, require us to change our policies or practices, divert management and other resources from our business, or otherwise adversely impact our business. Violation of existing or future regulatory orders, settlements or consent decrees could subject us to substantial fines and other penalties that would adversely impact our financial condition and operating results.

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**We expect to be in the future, party to intellectual property rights claims that are expensive and time consuming to defend, and, if resolved unfavorably, would adversely impact our business, financial condition and operating results.**

Companies in the Internet, technology and media industries are subject to litigation based on allegations of infringement, misappropriation, or other violations of intellectual property rights. Many companies in these industries, including many of our competitors, may have substantially larger patent and intellectual property portfolios than we do, which could make us a target for litigation as we may not be able to assert counterclaims against parties that sue us for patent, or other intellectual property infringement. In addition, various "non-practicing entities" that own patents and other intellectual property rights often attempt to assert claims in order to extract value from technology companies. From time to time, we may receive claims from third parties which allege that we have infringed upon their intellectual property rights. Further, from time to time we may introduce new products, product features and services, including in areas where we currently do not have an offering, which could increase our exposure to patent and other intellectual property claims from competitors and non-practicing entities. In addition, our standard terms and conditions for our Application Programming Interfaces may provide users with indemnification for intellectual property claims against them and require us to indemnify them for certain intellectual property claims against them, which could require us to incur considerable costs in defending such claims and may require us to pay significant damages in the event of an adverse ruling. Users may also discontinue the use of our products, services, and technologies as a result of injunctions or otherwise, which could result in loss of revenue and adversely impact our business.

We may become involved in intellectual property lawsuits, and as we face increasing competition and develop new products, we expect the number of patent and other intellectual property claims against us may grow. There may be intellectual property or other rights held by others, including issued or pending patents, that cover significant aspects of our products and services, and we cannot be sure that we are not infringing or violating, and have not infringed or violated, any third-party intellectual property rights or that we will not be held to have done so or be accused of doing so in the future. Any claim or litigation alleging that we have infringed or otherwise violated intellectual property or other rights of third parties, with or without merit, and whether or not settled out of court or determined in our favor, could be time-consuming and costly to address and resolve, and could divert the time and attention of our management and technical personnel. Some of our competitors have substantially greater resources than we do and are able to sustain the costs of complex intellectual property litigation to a greater degree and for longer periods of time than we could. The outcome of any litigation is inherently uncertain, and there can be no assurances that favorable final outcomes will be obtained in all cases. In addition, plaintiffs may seek, and we may become subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary injunctions requiring us to cease some or all of our operations. We may decide to settle such lawsuits and disputes on terms that are unfavorable to us. Similarly, if any litigation to which we are a party is resolved adversely, we may be subject to an unfavorable judgment that may not be reversed upon appeal. The terms of such a settlement or judgment may require us to cease some or all of our operations or pay substantial amounts to the other party. In addition, we may have to seek a license to continue practices found to be in violation of a third-party's rights. If we are required, or choose to enter into royalty or licensing arrangements, such arrangements may not be available on reasonable terms, or at all, and may significantly increase our operating costs and expenses. As a result, we may also be required to develop or procure alternative non-infringing technology, which could require significant effort and expense or discontinue use of the technology. An unfavorable resolution of the disputes and litigation referred to above would adversely impact our business, financial condition, and operating results.

**If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.**

As a corporation, we may be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), and the listing standards of any securities exchange on which our securities may be listed or quoted for trading. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended and anticipate that we will continue to expend, significant resources, including accounting-related costs and significant management oversight.

Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could cause us to be subject to one or more investigations or enforcement actions by state or federal regulatory agencies, stockholder lawsuits or other adverse actions requiring us to incur defense costs, pay fines, settlements, or judgments. Any such failures could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the perceived value of our common stock.

## **Financial and Transactional Risks**

**Acquisitions, divestitures, and investments could disrupt our business and harm our financial condition and operating results.**

Our success will depend, in part, on our ability to expand our products, product features and services, and grow our business in response to changing technologies, demands of users on our platforms and competitive pressures. In some circumstances, we may determine to do so through the acquisition of complementary businesses and technologies rather than through internal development. The identification of suitable acquisition candidates can be difficult, time-consuming, and costly, and we may not be able to successfully complete identified acquisitions. The risks we face in connection with acquisitions include:

- diversion of management time and focus from operating our business to addressing acquisition integration challenges;
- retention of key employees from the acquired business;
- cultural challenges associated with integrating employees from the acquired business into our organization;
- integration of the acquired business' accounting, management information, human resources and other administrative systems and processes;
- the need to implement or improve controls, procedures and policies at a business that prior to the acquisition may have lacked effective controls, procedures and policies;

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- liability for activities of the acquired business before the acquisition, including intellectual property infringement claims or violations of laws;
- commercial disputes, tax liabilities and other known and unknown liabilities;
- unanticipated write-offs or charges; and
- litigation or other claims in connection with the acquired business, including claims from terminated employees, former stockholders or other third parties.

Our failure to address these risks or other problems encountered in connection with our future acquisitions and investments could cause us to fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities, and harm our business generally. Future acquisitions could also result in dilutive issuances of our equity securities, the incurrence of debt, contingent liabilities, amortization expenses, incremental operating expenses, or the impairment of goodwill, any of which could adversely impact our financial condition and operating results.

We may also make investments in privately held businesses in furtherance of our strategic objectives. The instruments in which we invest may be nonmarketable at the time of our initial investment and we may not realize a return and may recognize a loss on such investments.

In certain cases, we may have to divest or stop investing in certain products, including products that we may have acquired. In these cases, we may need to restructure operations, terminate employees, and/or incur other expenses. We may not realize the expected benefits and cost savings of these actions and our operating results may be adversely impacted.

Our debt obligations could adversely affect our financial condition.

As of September 2016, we had an unsecured revolving credit facility with certain directors and stockholders providing for loans in the aggregate principal amount of $50,000.

Our debt obligations could adversely impact us. For example, these obligations could:

- require us to use a substantial portion of our cash flow from operations to pay principal and interest on debt when required upon the occurrence of certain change of control events or otherwise pursuant to the terms thereof, which will reduce the amount of cash flow available to fund working capital, capital expenditures, acquisitions, and other business activities;
- adversely impact our credit rating, which could increase future borrowing costs;
- limit our future ability to raise funds for capital expenditures, strategic acquisitions or business opportunities, and other general corporate requirements;
- restrict our ability to create or incur liens and enter into sale-leaseback financing transactions;
- increase our vulnerability to adverse economic and industry conditions;
- increase our exposure to interest rate risk from variable rate indebtedness;
- dilute our earnings per share as a result of the conversion provisions in debt instruments; and
- place us at a competitive disadvantage compared to our less leveraged competitors.

Our ability to meet our payment obligations under our debt instruments depends on our ability to generate significant cash flows in the future. This, to some extent, is subject to market, economic, financial, competitive, legislative and regulatory factors, as well as other factors that are beyond our control. There can be no assurance that our business will generate cash flow from operations, or that additional capital will be available to us, in amounts sufficient to enable us to meet our debt payment obligations and to fund other liquidity needs. Additionally, events and circumstances may occur which would cause us to not be able to satisfy applicable draw-down conditions and utilize our revolving credit facility. If we are unable to generate sufficient cash flows to service our debt payment obligations, we may need to refinance or restructure our debt, sell assets, reduce, or delay capital investments, or seek to raise additional capital. If we are unable to implement one or more of these alternatives on commercially reasonable terms or at all, we may be unable to meet our debt payment obligations, which would materially and adversely impact our business, financial condition and operating results.

We may have exposure to greater than anticipated tax liabilities, which could adversely impact our operating results.

Our income tax obligations are based in part on our corporate operating structure, including the manner in which we may develop, value and use our intellectual property and the scope of our international operations. We may be subject to review and audit by tax authorities in the US (federal and state), and other foreign jurisdictions and the laws in those jurisdictions are subject to interpretation. Tax authorities may disagree with and challenge some of the positions we have taken and any adverse outcome of such an audit could have a negative effect on our financial position and operating results. In addition, our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, by changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws, regulations, or accounting principles, as well as certain discrete items. For example, the legislation commonly referred to as the 2017 Tax Cuts and Jobs Act significantly affected US tax law by changing how US income tax is assessed on multinational corporations. The US Department of Treasury has issued and will continue to issue regulations and interpretive guidance that may significantly impact how we will apply the law and impact our results of operations.

In addition, the Organization for Economic Cooperation and Development (OECD) has published proposals covering a number of issues, including country-by-country reporting, permanent establishment rules, transfer pricing rules, tax treaties and taxation of the digital economy. Future tax reform resulting from this development may result in changes to long-standing tax principles, which could adversely affect our effective tax rate or result in higher cash tax liabilities. In 2018, the European Commission proposed a series of measures aimed at ensuring a fair and efficient taxation of digital businesses operating within the EU. Some countries, in the EU and beyond, have unilaterally moved to introduce their own digital services tax to capture tax revenue on digital services more immediately. Notably, France, Italy, Austria, the UK, Turkey, India and Indonesia have enacted, or will soon enact, a digital tax. Such laws would increase our tax obligations in those countries or change the manner in which we may operate our business.

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Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.

As of December 31, 2020, we had US federal net operating loss carryforwards of approximately $18,333. Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "ownership change," the Corporation's ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research tax credits, to offset its post-change income and taxes, may be limited. In general, an "ownership change" occurs if there is a cumulative change in our ownership by "5% shareholders" that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under state tax laws. In the event that we have experienced an ownership change, or if we experience one or more ownership changes in the future, then we may be limited in our ability to use our net operating loss carryforwards and other tax assets to reduce taxes owed on the net taxable income that we earn. Any such limitations on the ability to use our net operating loss carry forwards and other tax assets could adversely impact our business, financial condition, and operating results.

If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.

Under generally accepted accounting principles in the US, or US GAAP, we review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is required to be tested for impairment at least annually. An adverse change in market conditions or financial results, particularly if such change has the effect of changing one of our critical assumptions or estimates, could result in a change to the estimation of fair value that could result in an impairment charge to our goodwill or intangible assets. Any such material charges may have a material and adverse impact on our operating results.

# Governance Risks and Risks Related to Ownership of our Capital Stock

Our bylaws, as well as provisions of Delaware law, could impair a takeover attempt.

Our bylaws and Delaware law contain provisions which could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by our board of directors. Among other things, our bylaws include provisions:

- limiting the liability of, and providing indemnification to, our directors and officers;
- limiting the ability of our stockholders to call and bring business before special meetings;
- requiring advance notice of stockholder proposals for business to be conducted at meetings of our stockholders and for nominations of candidates for election to our board of directors; and
- controlling the procedures for the conduct and scheduling of stockholder meetings.

These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management.

As a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the Delaware General Corporation Law, which prevents certain stockholders holding more than 15% of our outstanding common stock from engaging in certain business combinations without approval of the holders of at least two-thirds of our outstanding common stock not held by such 15% or greater stockholder.

Any provision of our bylaws or Delaware law that has the effect of delaying, preventing or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our common stock.

The perceived value of our common stock may be volatile, and you could lose all or part of your investment.

The perceived value of our common stock may be highly volatile in response to various factors, some of which are beyond our control. In addition to the factors discussed in this "Risk Factors" section and elsewhere in this Annual Report, factors that could cause fluctuations in the perceived value of our common stock include the following:

- price and volume fluctuations in the overall stock market from time to time, including fluctuations due to general economic uncertainty or negative market sentiment;
- volatility in the market prices and trading volumes of technology stocks;
- changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;
- sales of shares of our common stock by us or our stockholders;
- rumors and market speculation involving us or other companies in our industry;
- failure of securities analysts to cover or maintain coverage of us, changes in financial estimates by securities analysts who follow us, or our failure to meet these estimates or the expectations of investors;
- the financial or non-financial metric projections we may provide to the public; any changes in those projections or our failure to meet those projections;
- announcements by us or our competitors of new products or services;
- the public's reaction to our press releases, other public announcements and filings with the SEC;
- actual or anticipated changes in our operating results or fluctuations in our operating results;
- actual or anticipated developments in our business, our competitors' businesses or the competitive landscape generally;
- our issuance of shares of our common stock, whether in connection with an acquisition or upon conversion of some or all of our debt instruments;
- litigation or regulatory action involving us, our industry or both, or investigations by regulators into our operations or those of our competitors;
- developments or disputes concerning our intellectual property or other proprietary rights;

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- announced or completed acquisitions of businesses or technologies by us or our competitors;
- new laws or regulations or new interpretations of existing laws or regulations applicable to our business;
- changes in accounting standards, policies, guidelines, interpretations or principles;
- any significant change in our management; and
- general economic conditions and slow or negative growth of our markets.

In addition, in the past, following periods of volatility in the overall market and the market price of a particular company's securities, securities class action litigation has often been instituted against these companies. Any securities litigation can result in substantial costs and a diversion of our management's attention and resources. We may experience such litigation following any future periods of volatility.

Our failure to return capital to our stockholders could have a material adverse effect on our perceived stock value.

We may announce that our board of directors authorized the repurchase of our common stock from time to time. Any failure to meet our commitment to return capital to our stockholders could have a material adverse effect on our stock price.

If securities or industry analysts change their recommendations regarding our common stock adversely, the price of our common stock and trading volume could decline.

The trading market for our common stock may be influenced, to some extent, by the research and reports that securities or industry analysts publish about us, our business, our industry, our market, or our competitors. If any of the analysts who cover us change their recommendation regarding our common stock adversely, or provide more favorable relative recommendations about our competitors, the perceived value of our common stock would likely decline.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Our headquarters are located in Zurich, Switzerland. We also have a representative office in New York. We believe our existing facilities are in good condition and suitable for the conduct of our business and are sufficient to accommodate anticipated future growth.

Item 3. Legal Proceedings

We are not currently involved in, but may in the future be involved in, legal proceedings, claims, investigations, and government inquiries and investigations arising in the ordinary course of business. These proceedings, which may include both individual and class action litigation and administrative proceedings, may also include but may not be limited to, matters involving content on our platforms, intellectual property, privacy, data protection, consumer protection, securities, employment and contractual rights. Legal risk may be enhanced in jurisdictions outside the US where our protection from liability for content published on our platforms by third parties may be unclear and where we may be less protected under local laws than we are in the US. Future litigation may be necessary, among other things, to defend ourselves and the users of our platforms, or to establish our rights. Refer to "Legal Proceedings" in Note 13 of the Notes to Financial Statements included in Part II, Item 8 of this Annual Report, which is incorporated herein by reference.

Although the results of the legal proceedings, claims, investigations, and government inquiries and investigations in which we may be involved cannot be predicted with certainty, and until there is final resolution on any such matter that we may be required to accrue for, we may be exposed to loss in excess of the amount accrued. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

Item 4. Mine Safety Disclosure

Not applicable.

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## PART II

### Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

#### *Market Information for Common Stock*

Not applicable.

#### *Holders of Record*

As of April 30, 2022, there were 21 holders of record of our common stock.

#### *Dividend Policy*

We have never declared or paid any cash dividends on our capital stock. We intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. Any future determination to declare cash dividends will be made at the discretion of our board of directors, subject to applicable laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors may deem relevant. In addition, credit facility may contain restrictions on payments including cash payments of dividends.

#### *Purchases of Equity Securities by the Issuer and Affiliated Purchasers*

Not applicable.

#### *Sales or Issues of Unregistered Equity Securities*

During the twelve months ended December 31, 2021, we issued a total of 2,750,000 shares of our common stock for cash.

The foregoing transaction did not involve any underwriters, any underwriting discounts or commissions, or any public offering. We believe the offer, sale, and issuance of the above securities was exempt from registration under the Securities Act of 1933, as amended (the Act) by virtue of Section 4(a)(2) of the Act, because the issuance of securities to the recipients did not involve a public offering. The recipients of these securities acquire the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends are placed upon the stock certificates issued in these transactions. All recipients have adequate access, through their relationships with us or otherwise, to information about the Corporation. The issuance of these securities is made without any general solicitation or advertising.

### Item 6. Selected Financial Data

This item is no longer required as we have elected to early adopt the changes to Item 301 of Regulation S-K contained in SEC Release No. 33-10890.

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## Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes thereto included in Item 8. Financial Statements and Supplementary Data in this Annual Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section titled 'Risk Factors' included elsewhere in this Annual Report.

### Overview and Highlights of Annual Results

The Corporation was pre-revenue for the fiscal year ended December 31, 2021 and for the fiscal year ended December 31, 2020, respectively.

Net loss was $121,789 for the fiscal year ended December 31, 2021 compared to net loss of $122,345 for the fiscal year ended December 31, 2020.

Loss from operations was $145,038 for the fiscal year ended December 31, 2021 compared to loss from operations of $147,588 for the fiscal year ended December 31, 2020, respectively.

Cash, cash equivalents and restricted cash totaled $715 as of December 31, 2021.

### FY 2021 Overview

Our past results may not be indicative of our future performance, and historical trends in loss from operations, net loss, and net loss per share may differ materially.

### Results of Operations

The following table set forth our statement of operations data for each of the periods presented:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Revenue | $ - | $ - | $ - |
| Costs and Expenses (1) |  |  |  |
| Cost of Revenue | - | - | - |
| Research and Development | - | - | - |
| Sales and Marketing | 18,035 | - | - |
| General and Administrative | 127,003 | 147,588 | 15,704 |
| Total Costs and Expenses | 145,038 | 147,588 | 15,704 |
| Loss from Operations | (145,038) | (147,588) | (15,704) |
| Interest Expense | (282) | (3) | - |
| Interest Income | - | - | - |
| Other (Expense) Income, Net | (447) | 471 | (13) |
| Income Before Income Taxes | (145,767) | (147,120) | (15,717) |
| Benefit for Income Taxes (2) | 23,978 | 24,775 | 2,651 |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |

$^{(1)}$ Costs and expenses include stock-based compensation expense as follows:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Cost of Revenue | $ - | $ - | $ - |
| Research and Development | - | - | - |
| Sales and Marketing | - | - | - |
| General and Administrative | 10,000 | 60,000 | - |
| Total Stock-Based Compensation Expense | $10,000 | $60,000 | $ - |

$^{(2)}$ In 2021, we recorded an income tax benefit of $23,978 related to income before income taxes. In 2020, we recorded an income tax benefit of $24,775 related to income before income taxes. In 2019, we recorded an income tax benefit of $2,651 related to

20

income before income taxes. Refer to Note 13 of the Notes to Financial Statements included in Part II, Item 8 of this Annual Report for further information.

### Revenue

We will derive the substantial majority of our revenues from subscription fees, which are comprised of once off and recurring subscription fees for products and services. We may also generate revenue by licensing our software to third parties and other arrangements.

|  | Year Ended December 31, |  |  | 2020 to 2021 | 2019 to 2020 |
| --- | --- | --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 | % Change | % Change |
| Revenue | $ - | $ - | $ - | - % | - % |

*2021 Compared to 2020.* The Corporation was pre-revenue in 2021 and 2020.

### Cost of Revenue

Cost of revenue include costs of acquiring content, other direct costs including infrastructure costs, amortization of acquired intangible assets and amortization of capitalized labor costs for internally developed software, allocated facilities costs, as well as user acquisition costs, or UAC. Infrastructure costs consist primarily of data center costs related to our co-located facilities, which include lease and hosting costs, related support and maintenance costs and energy and bandwidth costs, public cloud hosting costs, as well as depreciation of servers and networking equipment; and personnel-related costs, including salaries, benefits, and stock-based compensation for our employees. UAC consist of costs we may incur with advertising our products on third-party websites and applications, or other offerings collectively resulting from acquisitions. Certain elements of our cost of revenue may be fixed and cannot be reduced in the near term.

|  | Year Ended December 31, |  |  | 2020 to 2021 | 2019 to 2020 |
| --- | --- | --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 | % Change | % Change |
| Cost of Revenue | $ - | $ - | $ - | - % | - % |
| Cost of Revenue as a Percentage of Revenue | - % | - % | - % |  |  |

*2021 Compared to 2020.* No cost of revenue was incurred for 2021 and 2020, respectively.

### Research and Development

Research and development expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation for our engineers and other employees engaged in the research and development of our products and services. In addition, research and development expenses include amortization of acquired intangible assets, allocated facilities costs and other supporting overhead costs.

|  | Year Ended December 31, |  |  | 2020 to 2021 | 2019 to 2020 |
| --- | --- | --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 | % Change | % Change |
| Research and Development | $ - | $ - | $ - | - % | - % |
| Research and Development as a Percentage of Revenue | - % | - % | - % |  |  |

*2021 Compared to 2020.* No research and development costs were incurred for 2021 and 2020, respectively.

### Sales and Marketing

Sales and marketing expenses consist primarily of personnel-related costs, including salaries, commissions, benefits and stock-based compensation for our employees engaged in sales, sales support, business development and media, marketing, corporate communications and customer service functions. In addition, marketing and sales-related expenses also include advertising costs, market research, trade shows, branding, marketing, public relations costs, amortization of acquired intangible assets, allocated facilities costs and other supporting overhead costs.

|  | Year Ended December 31, |  |  | 2020 to 2021 | 2019 to 2020 |
| --- | --- | --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 | % Change | % Change |
| Sales and Marketing | $18,035 | $ - | $ - | 100% | - % |
| Sales and Marketing as a Percentage of Revenue | - % | - % | - % |  |  |

*2021 Compared to 2020.* In 2021, sales and marketing expenses increased by $18,035 compared to 2020. The increase was attributable to a $18,035 increase in personnel-related costs mainly driven by an increase in employee headcount. No sales and marketing costs were incurred for 2020.

21

### General and Administrative

General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation for our executive, finance, legal, information technology, human resources and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services and facilities costs and other supporting overhead costs that are not allocated to other departments.

|  | Year Ended December 31, |  |  | 2020 to 2021 | 2019 to 2020 |
| --- | --- | --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 | % Change | % Change |
| General and Administrative | $127,003 | $147,588 | $15,704 | -14% | 840% |
| General and Administrative as a Percentage of Revenue | - % | - % | - % |  |  |

*2021 Compared to 2020.* In 2021, general and administrative expenses decreased by $20,585 compared to 2020. The decrease was mainly attributable to a $20,000 decrease in directors' compensation fees, and $585 other administrative expenses.

We plan to continue to invest in general and administrative functions to ensure we have an appropriate level of support for our key objectives. We expect that general and administrative expenses will increase in absolute US dollar amounts and vary as a percentage of revenue.

### Interest Expense

Interest expense consists primarily of interest expense incurred in connection with financing facilities.

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Interest Expense | $282 | $3 | $ - |

*2021 Compared to 2020.* In 2021, interest expense increased by $279 compared to 2020 primarily due to an increase in financing.

### Interest Income

Interest income is generated from our cash equivalents and short-term investments.

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Interest Income | $ - | $ - | $ - |

*2021 Compared to 2020.* No Interest income was generated for 2021 and 2020, respectively.

### Other (Expense) Income, Net

Other (expense) income, net, consists primarily of unrealized foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies and realized foreign exchange gains and losses on foreign exchange transactions. We expect our foreign exchange gains and losses will vary depending upon movements in the underlying exchange rates.

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Other (Expense) Income, Net | $(447) | $471 | $(13) |

*2021 Compared to 2020.* In 2021, other expense, net, was $447 compared to other income, net, of $471 in 2020. The change was attributable to a foreign exchange loss of $447 in 2021 and a foreign exchange gain of $471 in 2020.

22

### **Benefit for Income Taxes**

Our benefit for income taxes consists of federal and state income taxes in the US and income taxes in certain foreign jurisdictions.

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Benefit for Income Taxes | $23,978 | $24,775 | $2,651 |

*2021 Compared to 2020.* In 2021, our net benefit for income taxes was $23,978, compared to a net benefit from income taxes of $24,775 in 2020. The change was primarily due to the decrease in loss before tax.

We reassessed the ability to realize deferred tax assets by considering the available positive and negative evidence.

### **Comparison of Fiscal Years Ended December 31, 2020 and 2019**

No discussion of results of operations were prepared for the fiscal years ended December 31, 2020 and 2019.

### **Supplementary Financial Information**

There are no retrospective changes to the statements of operations for any of the quarters within the two most recent fiscal years that individually or in the aggregate are material.

### **Liquidity and Capital Resources**

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Statements of Cash Flows Data: |  |  |  |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Net Cash Used in Operating Activities | $(12,460) | $(87,767) | $(15,193) |
| Net Cash Used in Investing Activities | $ | $(1,673) | $ |
| Net Cash Provided by Financing Activities | $12,734 | $90,828 | $15,304 |

Our principal sources of liquidity are our cash, cash equivalents, and revolving credit facility.

As of December 31, 2021, we had $715 of cash and cash equivalents, of which $482 was held by our Swiss branch. We believe that our existing cash and cash equivalents, cash provided by our financing activities, and our credit facility will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months.

### **Credit Facility**

We have a revolving credit agreement with certain directors and stockholders which provides for a $50,000 revolving unsecured credit facility maturing on August 28, 2022. We are not obligated to pay interest on loans under the credit facility or other customary fees for a credit facility of this size and type, including an upfront fee and an unused commitment fee. As of December 31, 2021, $18,402 had been drawn under the credit facility compared to $13,540 on December 31, 2020.

### **Operating Activities**

Cash used in operating activities consists of net loss adjusted for certain non-cash items including depreciation and amortization, deferred income taxes, as well as the effect of changes in working capital and other activities. We expect that cash provided by operating activities will fluctuate in future periods as a result of a number of factors, including fluctuations in our revenue, increases in operating expenses and costs related to acquisitions. For additional discussion, see Part I, Item 1A. Risk Factors.

Cash used in operating activities in 2021 was $12,460, a decrease in cash outflow of $75,307 compared to 2020. Cash used in operating activities was driven by net loss of $121,789, as adjusted for the exclusion of non-cash expenses and other adjustments totaling $109,329, including a $25,880 deferred tax asset, $271 of depreciation and amortization expense, and the effect of changes in working capital and other carrying balances that resulted in cash outflows of $134,938.

Cash used in operating activities in 2020 was $87,767, an increase in cash outflow of $72,574 compared to 2019. Cash used in operating activities was driven by net loss of $122,345, as adjusted for the exclusion of non-cash expenses and other adjustments totaling $34,578, including a $25,448 deferred tax asset, $618 of depreciation and amortization expense, and the effect of changes in working capital and other carrying balances that resulted in cash outflows of $59,408.

### **Investing Activities**

Our primary investing activities consist of purchases of property and equipment, particularly computer and related equipment, and other activities.

23

There was no cash outflow in investing activities in 2021 compared to $1,673 in 2020.

No cash flow from investing activities was recorded for the fiscal year ended December 31, 2019.

### ***Financing Activities***

Our primary financing activities consist of loans from directors and stockholders and the issuances of common stock.

Cash provided by financing activities in 2021 was $12,734, compared to $90,828 cash provided by financing activities in 2020. The change was due to a decrease in loans from directors and stockholders and $37,500 in proceeds from the issuance of shares of common stock.

Cash provided by financing activities in 2020 was $90,828, compared to $15,304 cash provided by financing activities in 2019. The change was due to an increase in loans from directors and stockholders and bank overdraft totaling $10,828, and $80,000 in proceeds from the issuance of shares of common stock.

### ***Off Balance Sheet Arrangements***

We do not have any off-balance sheet arrangements and did not have any such arrangements in 2021, 2020, or 2019.

### ***Contractual Obligations***

Our principal commitment consists of obligations under the revolving unsecured credit facility maturing on August 28, 2022. Refer to Note 14, Commitments and Contingencies, of the Notes to Financial Statements under Part II, Item 8 of this Annual Report for more details.

### ***Critical Accounting Policies and Estimates***

We prepare our financial statements and related notes in accordance with US GAAP. In doing so, we have to make estimates and assumptions that affect our reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results would be affected. We base our estimates on experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We refer to accounting estimates of this type as critical accounting policies and estimates, which we discuss further below.

#### ***Revenue Recognition***

We will generate the substantial majority of our revenues from subscription fees, which are comprised of once off and recurring subscription fees. We may also generate revenue by software licensing and other arrangements.

#### ***Income Taxes***

We are subject to income taxes in the US and Switzerland. Significant judgment is required in determining our provision or benefit for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

We record a provision or benefit for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized.

We recognize tax benefits from uncertain tax positions if we believe that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Although we believe we have adequately reserved for our uncertain tax positions (including net interest and penalties), we can provide no assurance that the final tax outcome of these matters will not be different. We make adjustments to these reserves in accordance with income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences may impact the provision or benefit for income taxes in the period in which such determination is made. We record interest and penalties related to our uncertain tax positions in our provision or benefit for income taxes.

#### ***Loss Contingencies***

We are not currently involved in, but may in the future be involved in, legal proceedings, claims, investigations, and government inquiries and investigations arising in the ordinary course of business. Certain of these matters may include speculative claims for substantial or indeterminate amounts of damages. We will record a liability when we believe that it is both probable that a loss has been incurred and the amount or range can be reasonably estimated. If we determine there is a reasonable possibility that we may incur a loss and the loss or range of loss can be estimated, we will disclose the possible loss to the extent material. Significant judgment is required to determine both probability and the estimated amount. We will review these provisions on a quarterly basis and adjust these provisions accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and updated information.

24

The outcome of litigation is inherently uncertain. Therefore, if one or more of these legal matters were resolved against us for amounts in excess of management's expectations, our results of operations and financial condition, including in a particular reporting period, could be materially adversely affected.

#### *Business Combinations*

We allocate the purchase price of the acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition dates. The excess of the purchase price over those fair values is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the statements of operations.

Accounting for business combinations requires our management to make significant estimates and assumptions at the acquisition date, including estimated fair value of acquired intangible assets, estimated fair value of stock awards assumed from the acquirees that are included in the purchase price, estimated income tax assets and liabilities assumed from the acquirees, and determination of the fair value of contractual obligations, where applicable. The estimates of fair value require management to also make estimates of, among other things, future expected cash flows, discount rates or expected costs to reproduce an asset. Although we believe the assumptions and estimates we made at the time were reasonable and appropriate, these estimates are based on historical experience and information obtained from the management of the acquired companies and are inherently uncertain.

#### *Impact of Recently Issued Accounting Standards*

The impact of recently issued accounting standards is set forth in Note 2, Summary of Significant Accounting Policies, of the Notes to Financial Statements under Part II, Item 8 of this Annual Report.

### **Item 7A. Quantitative and Qualitative Disclosures about Market Risk**

We have operations both within the US and Switzerland, and we are exposed to market risks in the ordinary course of our business. These risks include primarily foreign exchange risks.

#### **Foreign Currency Exchange Risk**

##### *Transaction Exposure*

We transact business in foreign currencies, as well as costs denominated in foreign currencies, primarily the Swiss franc. This exposes us to the risk of fluctuations in foreign currency exchange rates. Accordingly, changes in exchange rates, and in particular a continuing strengthening of the Swiss franc, would negatively affect our operating expenses as expressed in US dollars.

We have experienced and will continue to experience fluctuations in our net loss as a result of transaction gains or losses related to revaluing and ultimately settling certain asset and liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded. Foreign currency gains and losses were immaterial for 2021 and 2020.

##### *Translation Exposure*

We are also exposed to foreign exchange rate fluctuations as we translate the financial statements of our foreign branch into US dollars. If there is a change in foreign currency exchange rates, the translating adjustments resulting from the conversion of our foreign branch's financial statements into US dollars would result in a gain or loss recorded as a component of accumulated other comprehensive loss which is part of stockholders' equity.

25

**Item 8. Financial Statements and Supplementary Data**

**INDEX TO FINANCIAL STATEMENTS**

|  | Page |
| --- | --- |
| Balance Sheets | 27 |
| Statements of Operations | 28 |
| Statements of Comprehensive Loss | 29 |
| Statements of Stockholders' Equity | 30 |
| Statements of Cash Flows | 31 |
| Notes to Financial Statements | 32 |

26

# DOOFUS CORPORATION

# BALANCE SHEETS  
(Unaudited)

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Assets |  |  |
| Current Assets: |  |  |
| Cash, Cash Equivalents and Short-term Investments | $715 | $225 |
| Prepaid Expenses and Other Current Assets | 1,286 | 871 |
| Total Current Assets | 2,001 | 1,096 |
| Property and Equipment, Net | 814 | 1,113 |
| Deferred Tax Assets, Net | 55,205 | - |
| Other Assets | - | 270 |
| Total Assets | $58,020 | $2,479 |
| Liabilities and Stockholders' Equity |  |  |
| Current Liabilities: |  |  |
| Accounts Payable | $27,180 | $5,780 |
| Accrued and Other Current Liabilities | 170,989 | 58,918 |
| Due to Directors and Stockholders | (11,277) | 13,540 |
| Total Current Liabilities | 186,892 | 78,238 |
| Deferred and Other Long-Term Tax Liabilities, Net | - | (29,325) |
| Total Liabilities | 186,892 | 48,913 |
| Commitments and Contingencies (Note 14) |  |  |
| Stockholders' Equity: |  |  |
| Common Stock, $0.000001 Par Value - 1,000,000,000 Shares Authorized; 513,250,000 Shares Issued and Outstanding | 514 | 510 |
| Additional Paid-In Capital | 132,486 | 94,990 |
| Accumulated Other Comprehensive Loss | (3,069) | (4,920) |
| Accumulated Deficit | (258,803) | (137,014) |
| Total Stockholders' Equity | (128,872) | (46,434) |
| Total Liabilities and Stockholders' Equity | $58,020 | $2,479 |

The accompanying notes are an integral part of these financial statements.

27

# **DOOFUS CORPORATION**  
 **STATEMENTS OF OPERATIONS**  
 (Unaudited)

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Revenue | $ - | $ - | $ - |
| Costs and Expenses |  |  |  |
| Cost of Revenue | - | - | - |
| Research and Development | - | - | - |
| Sales and Marketing | 18,035 | - | - |
| General and Administrative | 127,003 | 147,588 | 15,704 |
| Total Costs and Expenses | 145,038 | 147,588 | 15,704 |
| Loss from Operations | (145,038) | (147,588) | (15,704) |
| Interest Expense | (282) | (3) | - |
| Interest Income | - | - | - |
| Other (Expense) Income, Net | (447) | 471 | (13) |
| Income Before Income Taxes | (145,767) | (147,120) | (15,717) |
| Benefit for Income Taxes | 23,978 | 24,775 | 2,651 |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Net Loss per Share Attributable to Common Stockholders: |  |  |  |
| Basic | $(0.0002) | $(0.0002) | $(0.00003) |
| Diluted | $(0.0002) | $(0.0002) | $(0.00003) |
| Weighted-Average Shares Used to Compute Net Loss per Share Attributable to Common Stockholders: |  |  |  |
| Basic | 510,945,055 | 502,284,153 | 500,604,110 |
| Diluted | 510,945,055 | 502,284,153 | 500,604,110 |

The accompanying notes are an integral part of these financial statements.

28

# DOOFUS CORPORATION

# STATEMENTS OF COMPREHENSIVE LOSS  
(Unaudited)

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Other Comprehensive Income (Loss), Net of Tax: |  |  |  |
| Change in Foreign Currency Translation Adjustment | 1,851 | (4,886) | (34) |
| Net Change in Accumulated Other Comprehensive Income (Loss) | 1,851 | (4,886) | (34) |
| Comprehensive Loss | $(119,938) | $(127,231) | $(13,100) |

The accompanying notes are an integral part of these financial statements.

29

# **DOOFUS CORPORATION**  
 **STATEMENTS OF STOCKHOLDERS' EQUITY**  
 (Unaudited)

|  | Year Ended December 31, |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 2021 |  | 2020 |  | 2019 |  |
|  | Shares | Amount | Shares | Amount | Shares | Amount |
| Common Stock |  |  |  |  |  |  |
| Balance, Beginning of Period | 509,500,000 | $510 | 501,500,000 | $502 | 500,000,000 | $500 |
| Issuance of Common Stock for Cash | 2,750,000 | 3 | 2,000,000 | 2 | 1,500,000 | 2 |
| Issuance of Common Stock for Stock-Based Compensation | 1,000,000 | 1 | 6,000,000 | 6 | - | - |
| Balance, End of Period | 513,250,000 | 514 | 509,500,000 | 510 | 501,500,000 | 502 |
| Additional Paid-In Capital |  |  |  |  |  |  |
| Balance, Beginning of Period | - | 94,990 | - | 14,998 | - | - |
| Issuance of Common Stock for Cash | - | 27,497 | - | 19,998 | - | 14,998 |
| Issuance of Common Stock for Stock-Based Compensation | - | 9,999 | - | 59,994 | - | - |
| Balance, End of Period | - | 132,486 | - | 94,990 | - | 14,998 |
| Accumulated Other Comprehensive Loss |  |  |  |  |  |  |
| Balance, Beginning of Period | - | (4,920) | - | (34) | - | - |
| Other Comprehensive Income (Loss) | - | 1,851 | - | (4,886) | - | (34) |
| Balance, End of Period | - | (3,069) | - | (4,920) | - | (34) |
| Accumulated Deficit |  |  |  |  |  |  |
| Balance, Beginning of Period | - | (137,014) | - | (14,669) | - | (1,603) |
| Net Loss | - | (121,789) | - | (122,345) | - | (13,066) |
| Balance, End of Period | - | (258,803) | - | (137,014) | - | (14,669) |
| Total Stockholders' Equity | 513,250,000 | $(128,872) | 509,500,000 | $(46,434) | 501,500,000 | $797 |

The accompanying notes are an integral part of these financial statements.

30

# **DOOFUS CORPORATION**  
 **STATEMENTS OF CASH FLOWS**  
 (Unaudited)

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Cash Flows from Operating Activities |  |  |  |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |  |  |
| Depreciation and Amortization Expense | 271 | 618 | - |
| Deferred Income Taxes | (25,880) | (25,448) | (2,651) |
| Changes in Assets and Liabilities: |  |  |  |
| Prepaid Expenses and Other Assets | (436) | (900) | (184) |
| Accounts Payable | 21,536 | 4,750 | 708 |
| Accrued and Other Liabilities | 113,838 | 55,558 | - |
| Net Cash Used in Operating Activities | (12,460) | (87,767) | (15,193) |
| Cash Flows from Investing Activities |  |  |  |
| Purchases of Property and Equipment | - | (1,673) | - |
| Net Cash Used in Investing Activities | - | (1,673) | - |
| Cash Flows from Financing Activities |  |  |  |
| (Repayment) Proceeds from Debt | (24,766) | 10,828 | 304 |
| Proceeds from Issuances of Common Stock | 37,500 | 80,000 | 15,000 |
| Net Cash Provided by Financing Activities | 12,734 | 90,828 | 15,304 |
| Net Increase in Cash, Cash Equivalents and Restricted Cash | 274 | 1,388 | 111 |
| Foreign Exchange Effect on Cash, Cash Equivalents and Restricted Cash | 216 | (1,532) | (28) |
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 225 | 369 | 286 |
| Cash, Cash Equivalents and Restricted Cash at End of Period | $715 | $225 | $369 |
| Supplemental Cash Flow Data |  |  |  |
| Interest Paid in Cash | $282 | $3 | $ - |
| Supplemental Disclosures of Non-Cash Investing and Financing Activities |  |  |  |
| Changes in Accrued Property and Equipment Purchases | $ - | $1,673 | $ - |
| Common Stock Issued in Connection with Stock-Based Compensation | $10,000 | $60,000 | $ - |
| Reconciliation of Cash, Cash Equivalents and Restricted Cash as Shown in the Statements of Cash Flows |  |  |  |
| Cash and Cash Equivalents | $715 | $225 | $369 |
| Restricted Cash Included in Prepaid Expenses and Other Current Assets | - | - | - |
| Restricted Cash Included in Other Assets | - | - | - |
| Total Cash, Cash Equivalents and Restricted Cash | $715 | $225 | $369 |

The accompanying notes are an integral part of these financial statements.

31

# DOOFUS CORPORATION

## NOTES TO FINANCIAL STATEMENTS

### Note 1. The Corporation

Doofus Corporation (the 'Corporation') was incorporated in Delaware on August 29, 2016 and is headquartered in Zurich, Switzerland. The Corporation is engaged in the business of computer and software services.

### Note 2. Summary of Significant Accounting Policies

##### *Principles of Consolidation*

Not applicable.

##### *Prior Period Reclassifications*

Certain prior period amounts have been reclassified to conform to the current period presentation.

##### *Prior Period Restatements*

The Corporation's financial statements for 2019 have been restated for the effect of foreign currency translation adjustments that were made in the conversion of its Zurich branch's financial statements from Swiss francs. As the financial statements are not determined to be materially misstated, the Corporation is not required to issue restated financial statements for 2019.

##### *Use of Estimates*

The preparation of the Corporation's financial statements in conformity with generally accepted accounting principles in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ materially from the Corporation's estimates. To the extent that there are material differences between these estimates and actual results, the Corporation's financial condition or operating results will be affected. The Corporation bases its estimates on past experience and other assumptions that the Corporation believes are reasonable under the circumstances, and the Corporation evaluates these estimates on an ongoing basis.

##### *Revenue Recognition*

The Corporation will generate the substantial majority of its revenue from subscription fees for products and services, with the remaining balance from software licensing and other arrangements.

##### *Cost of Revenue*

Cost of revenue include costs of acquiring content, other direct costs including infrastructure costs, amortization of acquired intangible assets and amortization of capitalized labor costs for internally developed software, allocated facilities costs, as well as user acquisition costs, or UAC. Infrastructure costs consist primarily of data center costs related to our co-located facilities, which include lease and hosting costs, related support and maintenance costs and energy and bandwidth costs, public cloud hosting costs, as well as depreciation of servers and networking equipment, and personnel-related costs, including salaries, benefits, and stock-based compensation, for our employees. UAC consist of costs we may incur with advertising our products on third-party websites and applications, or other offerings collectively resulting from acquisitions. Certain elements of our cost of revenue may be fixed and cannot be reduced in the near term.

##### *Stock-Based Compensation Expense*

The Corporation accounts for stock-based compensation expense under the fair value recognition and measurement provisions of US GAAP. Stock-based awards granted to directors, officers, employees and consultants are measured based on the grant-date fair value.

For service-based restricted stock awards and performance-based restricted stock awards, the Corporation recognizes the compensation expense only for those awards expected to meet the performance and service vesting conditions. For service-based restricted stock awards, expense is recognized on a straight-line basis over the requisite service period. The service condition for restricted stock awards is generally satisfied over five years but may be reduced or increased in certain circumstances. For performance-based restricted stock awards, expense is recognized on a graded basis over the requisite service period. For market-based restricted stock awards, the Corporation recognizes the compensation expense on a graded basis over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The requisite service period for performance-based and market-based restricted stock awards is generally up to five years. The Corporation accounts for forfeitures as they occur.

The value of restricted stock awards is determined using fair market value to estimate the grant date fair value.

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### ***Business Combinations***

The Corporation allocates the purchase price of the acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition dates. The excess of the purchase price over those fair values is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Corporation may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the statements of operations.

### ***Loss Contingencies***

The Corporation is not currently involved in, but may in the future be involved in, legal proceedings, claims, investigations, and government inquiries and investigations arising in the ordinary course of business. The Corporation records a liability when it believes that it is both probable that a loss has been incurred and the amount or range can be reasonably estimated. If the Corporation determines there is a reasonable possibility that it may incur a loss and the loss or range of loss can be estimated, it discloses the possible loss to the extent material. Significant judgment is required to determine both probability and the estimated amount. The Corporation will review these provisions on a quarterly basis and adjusts these provisions accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and updated information.

### ***Operating and Finance Leases***

The Corporation has operating leases primarily for office space. The determination of whether an arrangement is a lease or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Corporation obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Corporation's balance sheets.

Certain lease agreements may contain options for the Corporation to renew or early terminate a lease. The Corporation considers these options, which may be elected at the Corporation's sole discretion, in determining the lease term on a lease-by-lease basis. Leases with an initial term of twelve months or less are not recognized on the balance sheets. The Corporation recognizes lease expense for these leases on a straight-line basis over the term of the lease.

The Corporation's lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Certain of the Corporation's leases contain free or escalating rent payment terms. Additionally, certain lease agreements contain lease components (for example, fixed payments such as rent) and non-lease components such as common-area maintenance costs. For each asset class of the Corporation's leases-real estate offices and equipment-the Corporation has elected to account for both of these provisions as a single lease component. For arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. These variable lease payments, which are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Corporation, are recognized in operating expenses in the period in which the obligation for those payments was incurred. The Corporation recognizes lease expense for its operating leases in operating expenses on a straight-line basis over the term of the lease.

### ***Cash, Cash Equivalents, and Investments***

The Corporation may invest its excess cash in short-term fixed income securities, including government and investment-grade debt securities and money market funds. The Corporation classifies all liquid investments with stated maturities of three months or less from date of purchase as cash equivalents. The Corporation classifies all marketable securities for use in current operations, even if the security matures beyond 12 months, and presents them as short-term investments in the balance sheets.

The Corporation had no restricted cash balances as of December 31, 2021 and 2020.

Restricted cash balances are primarily cash deposits to back letters of credit related to certain property leases. The Corporation determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Corporation classifies and account for its marketable securities as available-for-sale. After considering the Corporation's capital preservation objectives, as well as its liquidity requirements, the Corporation may sell securities prior to their stated maturities. The Corporation carries its available-for-sale securities at fair value. The Corporation reports the unrealized gains and losses, net of taxes, as a component of stockholders' equity, except for unrealized losses determined to be credit-related, which are recorded as other income or expense, net in the statements of operations and reports an allowance for credit losses in short-term investments on the balance sheet, if any. The Corporation determines any realized gains or losses on the sale of marketable securities on a specific identification method and records such gains and losses as a component of other income or expense, net. Interest earned on cash, cash equivalents, and marketable securities are recorded in interest income in the statements of operations.

The Corporation's investment policy only allows purchases of investment-grade notes and provides guidelines on concentrations to ensure minimum risk of loss. The Corporation evaluates whether the unrealized loss on available-for-sale debt securities is the result of the credit worthiness of the corporate notes it held, or other non-credit-related factors such as liquidity by reviewing a number of factors such as the implied yield of the corporate note based on the market price, the nature of the invested entity's business or industry, market capitalization relative to debt, changes in credit ratings, and the market prices of the corporate notes subsequent to period end.

33

## Concentration of Credit Risk

Financial instruments that potentially subject the Corporation to significant concentration of credit risk may consist of cash, cash equivalents, short-term investments, and accounts receivable. The primary focus of the Corporation's investment strategy is to preserve capital and meet liquidity requirements. The Corporation's investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, the Corporation may invest cash equivalents and short-term investments in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Corporation places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.

## Property and Equipment, Net

Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life. The estimated useful lives of property and equipment are described below:

| Property and Equipment | Estimated Useful Life |
| --- | --- |
| Computer Hardware, Networking, and Office Equipment | Three to Five Years |
| Computer Software | Up to Five Years |
| Furniture and Fixtures | Five Years |
| Leasehold Improvements | Lesser of Estimated Useful Life or Remaining Lease Term |

The Corporation reviews the remaining estimated useful lives of its property and equipment on an ongoing basis. Management is required to use judgment in determining the estimated useful lives of such assets. Changes in circumstances such as technological advances, changes to the Corporation's business model, changes in the Corporation's business strategy, or changes in the planned use of property and equipment could result in the actual useful lives differing from the Corporation's current estimates. In cases where the Corporation determines that the estimated useful life of property and equipment should be shortened or extended, the Corporation would apply the new estimated useful life prospectively.

The Corporation reviews property and equipment for impairment when events or circumstances indicate the carrying amount may not be recoverable.

Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses.

## Capitalization of Interest

Interest costs are capitalized for assets that are constructed for the Corporation's own internal use, including internally developed software and property and equipment, for the period of time to get them ready for their intended use. No interest expense was capitalized in any of the periods presented in the accompanying financial statements.

## Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Corporation's impairment tests are based on a single operating segment and reporting unit structure. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized for the excess of the carrying value of the reporting unit over its fair value.

The Corporation conducts its annual goodwill impairment test during the fourth quarter and determined if the fair value of the reporting unit significantly exceeded its carrying value. As such, goodwill is impaired. No impairment charge was recorded in any of the periods presented in the accompanying financial statements.

## Intangible Assets

Intangible assets are carried at cost and amortized on a straight-line basis over their estimated useful lives of up to eleven years. The Corporation reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in any of the periods presented in the accompanying financial statements.

## Fair Value Measurements

The Corporation classifies and discloses assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market

34

participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

### Internal Use Software and Website Development Costs

The Corporation capitalizes certain costs incurred in developing software programs or websites for internal use. The Corporation capitalizes these costs once the preliminary project stage is complete, and it is probable that the project will be completed, and the software will be used to perform the function intended. No capitalization cost was recorded in any of the periods presented in the accompanying financial statements. Capitalized internal use software development costs are included in property and equipment, net.

The estimated useful life of costs capitalized is evaluated for each specific project and is up to five years.

### Income Taxes

The Corporation is subject to income taxes in the US and Switzerland. Significant judgment is required in determining its provision or benefit for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

The Corporation records a provision or benefit for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Corporation recognizes deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Corporation recognizes the deferred income tax effects of a change in tax rates in the period of the enactment. The Corporation records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized.

The Corporation recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although the Corporation believes it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be different. The Corporation makes adjustments to these reserves in accordance with income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences may impact the provision or benefit for income taxes in the period in which such determination is made. The Corporation records interest and penalties related to its uncertain tax positions in the provision or benefit for income taxes.

The establishment of deferred tax assets from intra-entity transfers of intangible assets requires management to make significant estimates and assumptions to determine the fair value of such intangible assets. Critical estimates in valuing the intangible assets include, but are not limited to, internal revenue and expense forecasts, the estimated life of the intangible assets, and discount rates. The discount rates used in the income method to discount expected future cash flows to present value are adjusted to reflect the inherent risks related to the cash flow. Although the Corporation believes the assumptions and estimates it has made are reasonable and appropriate, they are based, in part, on historical experience and are inherently uncertain. Unanticipated events and circumstances may occur that could affect either the accuracy or validity of such assumptions, estimates or actual results.

### Foreign Currency

The functional currency of the Corporation's foreign branches and subsidiaries is generally the local currency. The financial statements of these branches and subsidiaries are translated into US dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of stockholders' equity. Unrealized foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies as well as realized foreign exchange gains and losses on foreign exchange transactions are recorded in other income or expense, net in the accompanying statements of operations.

### Advertising Costs

Advertising costs are expensed when incurred and are included in sales and marketing expense in the statements of operations. No advertising expense was incurred in any of the periods presented in the accompanying financial statements.

### Comprehensive Income or Loss

Comprehensive income or loss consists of two components, net income or loss and other comprehensive income or loss. Other comprehensive income or loss refers to gains and losses that are recorded as an element of stockholders' equity and are excluded

35

from net income or loss. The Corporation's other comprehensive income or loss is comprised of unrealized gains or losses on available-for-sale securities, net of tax, and foreign currency translation adjustments.

### ***Recent Accounting Pronouncements***

#### ***Recently Adopted Accounting Pronouncements***

In August 2020, the FASB issued a new accounting standard update to simplify the accounting for convertible debt and other equity-linked instruments. The new guidance simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Instead, the entity will account for the convertible debt or convertible preferred stock securities as a single unit of account, unless the conversion feature requires bifurcation and recognition as derivatives. Additionally, the guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, using a modified or full retrospective transition method. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Corporation will early adopt this new guidance using the modified retrospective method as of January 1, 2021.

#### ***Recently Issued Accounting Pronouncements Not Yet Adopted***

In October 2021, the FASB issued a new accounting standard requiring contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with the accounting standard for revenue recognition for contracts with customers, as if it had originated the contracts. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Corporation will adopt the guidance prospectively to business combinations after the date of adoption.

### **Note 3. Revenue**

#### ***Revenue Recognition***

Revenue is recognized when the control of promised goods or services is transferred to customers at an amount that reflects the consideration to which the Corporation expects to be entitled to in exchange for those products or services. The Corporation identifies its contracts with customers and all performance obligations within those contracts. The Corporation then determines the transaction price and allocates the transaction price to the performance obligations within the Corporation's contracts with customers, recognizing revenue when, or as the Corporation satisfies its performance obligations. While the majority of the Corporation's revenue transactions are based on standard business terms and conditions, the Corporation may also enter into sales agreements that sometimes involve multiple performance obligations and occasionally include non-standard terms or conditions.

The Corporation is pre-revenue, and no revenue was generated in any of the periods presented in the accompanying financial statements.

### **Note 4. Cash, Cash Equivalents and Short-term Investments**

Cash, cash equivalents and short-term investments consist of the following:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Cash | $715 | $225 |
| Total | $715 | $225 |

### **Note 5. Fair Value Measurements**

The Corporation measures its cash and cash equivalents at fair value. The Corporation classifies its cash equivalents, short-term investments and derivative financial instruments within Level 1 or Level 2 because the Corporation values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Corporation's Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Corporation's Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily available pricing sources for the identical underlying security that may not be actively traded.

### **Note 6. Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets consist of the following:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Prepaid Expenses | $1,286 | $871 |
| Total | $1,286 | $871 |

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# **Note 7. Property and Equipment, Net**

The following tables set forth property and equipment, net by type and by geographic area for the periods presented:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Property and Equipment, Net |  |  |
| Equipment | $1,721 | $1,765 |
| Total | 1,721 | 1,765 |
| Less: Accumulated Depreciation and Amortization | (907) | (652) |
| Property and Equipment, Net | $814 | $1,113 |

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Property and Equipment, Net |  |  |
| Switzerland | $814 | $1,113 |
| United States | - | - |
| Total Property and Equipment, Net | $814 | $1,113 |

Depreciation expense totaled $907 and $652 for the years ended December 31, 2021 and 2020 respectively. No depreciation expense was incurred in 2019.

# **Note 8. Deferred Tax Assets, Net**

The following table presents the detail of deferred tax assets for the periods presented:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Security Deposits | $55,205 | $ - |
| Total | $55,205 | $ - |

# **Note 9. Other Assets**

The following table presents the detail of other assets for the periods presented:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Security Deposits | $ - | $270 |
| Total | $ - | $270 |

# **Note 10. Accrued and Other Current Liabilities**

The following table presents the detail of accrued and other current liabilities for the periods presented:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Accrued Compensation | $162,245 | $49,292 |
| Accrued Social Security | 6,248 | 9,088 |
| Accrued Tax Liabilities | 2,496 | 230 |
| Bank Overdraft | - | 308 |
| Total | $170,989 | $58,918 |

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#### Note 11. Net Loss per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. The weighted-average common shares outstanding is adjusted for shares subject to repurchase such as unvested restricted stock granted to employees in connection with acquisitions, contingently returnable shares and escrowed shares supporting indemnification obligations that are issued in connection with acquisitions.

Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potential dilutive common stock instruments.

The following table presents the calculation of basic and diluted net loss per share for periods presented:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Basic Net Loss per Share: |  |  |  |
| Numerator |  |  |  |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Denominator |  |  |  |
| Weighted-Average Common Shares Outstanding | 510,945,055 | 502,284,153 | 500,604,110 |
| Weighted-Average Shares Used to Compute Basic Net Loss per Share | 510,945,055 | 502,284,153 | 502,284,153 |
| Basic Net Loss per Share Attributable to Common Stockholders | $(0.0002) | $(0.0002) | $(0.00003) |
| Diluted Net Loss per Share: |  |  |  |
| Numerator |  |  |  |
| Net Loss | $(121,789) | $(122,345) | $(13,066) |
| Denominator |  |  |  |
| Number of Shares Used in Basic Computation | 510,945,055 | 502,284,153 | 500,604,110 |
| Weighted-Average Shares Used to Compute Diluted Net Loss per Share | 510,945,055 | 502,284,153 | 502,284,153 |
| Diluted Net Loss per Share Attributable to Common Stockholders | $(0.0002) | $(0.0002) | $(0.00003) |

#### Note 12. Stockholders' Equity

##### *Common Stock*

As of December 31, 2021, the Corporation is authorized to issue 1.0 billion shares of $0.000001 par value common stock in accordance with the Certificate of Incorporation.

Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding. As of December 31, 2021, no dividends have been declared.

##### *Equity Incentive Plan*

The Corporation's 2020 Equity Incentive Plan was adopted by the board of directors on May 15, 2020 and approved by shareholders on June 24, 2020. The number of shares of the Corporation's common stock available for issuance under the 2020 Equity Incentive Plan is 100,000,000. Under the 2020 Equity Incentive Plan the Corporation may grant incentive stock options, non-statutory stock options and restricted stock to directors, officers, employees, and consultants.

##### *Stock-Based Compensation Expense*

Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. Total stock-based compensation expense by function is as follows:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Cost of Revenue | $ - | $ - | $ - |
| Research and Development | - | - | - |
| Sales and Marketing | - | - | - |
| General and Administrative | 10,000 | 60,000 | - |
| Total Stock-Based Compensation Expense | $10,000 | $60,000 | $ - |

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The Corporation capitalized $10,000 and $60,000 of stock-based compensation expense associated with directors' compensation in the years ended December 31, 2021 and 2020, respectively. No stock-based compensation expense was incurred 2019.

#### Note 13. Income Taxes

The domestic and foreign components of loss before income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Domestic | $(25,316) | $(65,883) | $(11,803) |
| Foreign | (120,451) | (81,237) | (3,914) |
| Income Before Income Taxes | $(145,767) | $(147,120) | $(15,717) |

The components of the benefit for income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Current: |  |  |  |
| Federal | $ - | $ - | $ - |
| State | - | - | - |
| Foreign | 1,902 | 1,381 | - |
| Total Current Provision for Income Taxes | 1,902 | 1,381 | - |
| Deferred: |  |  |  |
| Federal | (25,880) | (26,156) | (1,983) |
| State | - | - | - |
| Foreign | - | - | (668) |
| Total Deferred Benefit for Income Taxes | (25,880) | (26,156) | (2,651) |
| Benefit for Income Taxes | $(23,978) | $(24,775) | $(2,651) |

The following is a reconciliation of the income tax at the federal statutory rate to the Corporation's benefit for income taxes for the years ended December 31, 2021, 2020 and 2019:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Income Tax at Federal Statutory Rate | $(25,880) | $(26,156) | $(2,651) |
| State Taxes, Net of Federal Benefit | - | - | - |
| Stock-Based Compensation | - | - | - |
| Foreign Rate Differential | 1,902 | 1,381 | - |
| Benefit for Income Taxes | $(23,978) | $(24,775) | $(2,651) |

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The tax effects of temporary differences and related deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows:

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Deferred Tax Assets: |  |  |
| Net Operating Loss Carryforwards | $116,614 | $117,696 |
| Fixed Assets and Intangible Assets | 814 | 1,113 |
| Total Deferred Tax Assets | 117,428 | 118,809 |
| Valuation Allowance | - | - |
| Total Deferred Tax Assets, Net of Valuation Allowance | 117,428 | 118,809 |
| Deferred Tax Liabilities: |  |  |
| Total Deferred Tax Liabilities | - | - |
| Net Deferred Tax Assets | $117,428 | $118,809 |

As of December 31, 2021, the Corporation had $55,205 of deferred tax assets for which it has not established a valuation allowance, related to the US federal carryforwards. The Corporation completed its reassessment of the ability to realize these assets and concluded that a valuation allowance was not required.

The Corporation recognizes interest and/or penalties related to income tax matters as a component of income tax expense. No interest and/or penalties related to income tax matters were recognized in any of the periods presented in the accompanying financial statements.

The Corporation is subject to taxation in the US and Switzerland. Earnings from non-US activities are subject to local country income tax. The material jurisdictions where the Corporation is subject to potential examination by tax authorities include the US and Switzerland. The Corporation does not believe that its unrecognized tax benefits will materially change within the next 12 months.

#### **Note 14. Commitments and Contingencies**

##### ***Credit Facility***

The Corporation has a revolving credit agreement with certain directors and stockholders which provides for a $50,000 unsecured revolving credit facility maturing on August 28, 2022. The Corporation is not obligated to pay interest on loans under this credit facility or other customary fees for a credit facility of this size and type, including an upfront fee and an unused commitment fee. As of December 31, 2021, $18,402 had been drawn under the credit facility compared to $13,540 on December 31, 2020.

##### ***Contractual Obligations***

Our principal commitment consists of obligations under the revolving unsecured credit facility maturing on August 28, 2022.

##### ***Legal Proceedings***

The Corporation was not involved in any legal proceedings, claims, investigations, and government inquiries and investigations for any of the periods presented in the accompanying financial statements.

##### ***Non-Income Taxes***

The Corporation may be under various non-income tax audits by domestic and foreign tax authorities. These audits primarily revolve around routine inquiries, refund requests, and employee benefits. The Corporation accrues non-income taxes that may result from these audits when they are probable and can be reasonably estimated. Due to the complexity and uncertainty of some of these matters, however, as well as the judicial process in certain jurisdictions, the final outcome of these audits may be materially different from the Corporation's expectations.

##### ***Indemnification***

In the ordinary course of business, the Corporation may include standard indemnification provisions in its arrangements with its customers, partners, suppliers, and vendors. Pursuant to these provisions, the Corporation may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement or other claims made against such parties. These provisions may limit the time within which an indemnification claim can be made. It is not possible to determine the maximum potential amount under these indemnification obligations due to no history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Corporation has never incurred expense defending its licensees against third-party claims, nor has it ever incurred expense under its standard service warranties or arrangements with its customers, partners, suppliers, and vendors. Accordingly, the Corporation had no liabilities recorded for these provisions as of December 31, 2021 and 2020.

40

# **Note 15. Related Party Transactions**

No related party transactions, other than the revolving credit agreement with certain directors and stockholders disclosed in Note 14, occurred for any of the periods presented in the accompanying financial statements.

# **Note 16. Employee Benefit Plan**

None.

# **Note 17. Segment Information and Operations by Geographic Area**

The Corporation has a single operating segment and reporting unit structure. The Corporation's chief operating decision-maker is the Chief Executive Officer who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

# ***Revenue***

See Note 3, Revenue for further details.

# ***Property and Equipment, Net***

See Note 7, Property and Equipment, Net for further details.

41

## **Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

Not applicable.

### **Item 9A. Controls and Procedures**

#### ***Evaluation of Disclosure Controls and Procedures***

Our management, with the participation of our Chief Executive Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report. The term 'disclosure controls and procedures,' as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints, and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. Based on such evaluation, our Chief Executive Officer has concluded that, as of December 31, 2021, our disclosure controls and procedures were effective at the reasonable assurance level.

#### ***Changes in Internal Control over Financial Reporting***

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended December 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

#### ***Management's Report on Internal Control over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our management conducted an assessment of the effectiveness of our internal control over financial reporting based on the criteria established in 'Internal Control Integrated Framework' (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2021.

### **Item 9B. Other Information**

None.

42

Part III

# Item 10. Directors, Executive Officers and Corporate Governance

Our board of directors has adopted a code of ethics and business conduct that apply to all of our directors, officers and employees, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. The full text of our code of ethics and business conduct is posted on our website which is located at https://doofus.xyz. We will post any amendments to our code of ethics and business conduct, or waivers of its requirements, on our website.

# Item 11. Executive Compensation

The following table presents executive compensation for periods presented:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2021 | 2020 | 2019 |
| Jacques Fourie - Chief Executive Officer |  |  |  |
| Salary | $85,257 | $62,369 | $ - |
| Bonus | 7,105 | 5,197 | - |
| Non-Equity Incentive Plan Compensation | - | - | - |
| Stock Awards | - | - | - |
| All Other Compensation | - | - | - |
| Total Compensation | 92,362 | 67,566 | - |
| Total Executive Compensation | $92,362 | $67,566 | $ - |

# Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth certain information with respect to the beneficial ownership of shares of our common stock as of December 31, 2021 for:

- each of our directors and nominees for directors;
- each of our named executive officers;
- all of our current directors and executive officers as a group; and
- each person or group who beneficially owned more than 5% of our common stock.

We have determined beneficial ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable.

We have based our calculation of the percentage of beneficial ownership on 513,250,000 shares of our common stock outstanding as of December 31, 2021.

Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Doofus Corporation, Hardturmstrasse 161, 8005 Zurich, Switzerland. The information provided in the table is based on our records and information provided to us, except where otherwise noted.

|  | Number of Shares | Percentage of Shares Beneficially Owned |
| --- | --- | --- |
| Directors: |  |  |
| Johannes Christoffel Joubert | 3,500,000 | 0.7 |
| Timothy James O'Donnell | 3,500,000 | 0.7 |
| Total Shares of Common Stock Owned by Directors | 7,000,000 | 1.4 |
| Executive Officers: |  |  |
| Jacques Fourie | 500,000,000 | 97.4 |
| Total Shares of Common Stock Owned by Executive Officers | 500,000,000 | 97.4 |
| Total Shares of Common Stock Owned by Directors and Executive Officers | 507,000,000 | 98.8 |

43

### **Item 13. Certain Relationships and Related Transactions, and Director Independence**

Since January 1, 2020, we have not entered into any transactions, nor are there any currently proposed transactions, between us and a related person where:

- the amounts involved exceeded or will exceed $120,000; and
- any of our directors, nominees for director, executive officers or holders of more than 5% of our outstanding capital stock, or any immediate family member of, or person sharing the household with, any of these individuals or entities, had or will have a direct or indirect material interest.

#### ***Policies and Procedures for Related Person Transactions***

Our audit committee has the primary responsibility for reviewing and approving or ratifying related person transactions. We have a formal written policy providing that a related person transaction is any transaction between us and an executive officer, director, nominee for director, beneficial owner of more than 5% of any class of our capital stock, or any member of the immediate family of any of the foregoing persons, in which such party has a direct or indirect material interest and the aggregate amount involved exceeds $120,000. In reviewing any related person transaction, our audit committee is to consider the relevant facts and circumstances available to our audit committee, including, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances, and the extent of the related person's interest in the transaction. Our audit committee has determined that certain transactions will be deemed to be pre-approved by our audit committee, including certain executive officer and director compensation, transactions with another company at which a related person's only relationship is as a non-executive employee, director or beneficial owner of less than 10% of that company's shares and the aggregate amount involved does not exceed the greater of $200,000 or 2% of the company's total revenues, transactions where a related person's interest arises solely from the ownership of our common stock and all holders of our common stock received the same benefit on a pro rata basis, and transactions available to all employees generally. If advance approval of a transaction is not feasible, the chairperson of our audit committee may approve the transaction and the transaction may be ratified by our audit committee in accordance with our formal written policy.

### **Item 14. Principal Accounting Fees and Services**

None.

44

## PART IV

### Item 15. Exhibits, Financial Statement Schedules

The following documents are filed as part of this Annual Report:

#### 1. Financial Statements

Our Financial Statements are listed in the 'Index to Financial Statements' under Part II, Item 8 of this Annual Report.

#### 2. Financial Statement Schedules

All financial statement schedules have been omitted because they are not required, not applicable, not present in amounts sufficient to require submission of the schedule, or the required information is shown in our Financial Statements or Notes thereto.

#### 3. Exhibits

None.

### Item 16. Annual Report Summary

None.

45

# **SIGNATURE**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Corporation has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

# **Doofus Corporation**

Date: May 23, 2022

By: /s/ JACQUES FOURIE  
Jacques Fourie  
Chief Executive Officer  
Principal Executive Officer

46

# **CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF  
THE SARBANES-OXLEY ACT OF 2002**

I, Jacques Fourie, certify that:

1. 1. I have reviewed this Annual Report of Doofus Corporation (the 'Corporation');
2. 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Corporation as of, and for, the periods presented in this report;
4. 4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Corporation and have:
   1. (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Corporation is made known to me particularly during the period in which this report is being prepared;
   2. (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   3. (c) Evaluated the effectiveness of the Corporation's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
   4. (d) Disclosed in this report any change in the Corporation's internal control over financial reporting that occurred during the Corporation's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting; and;
5. 5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the audit committee of the Corporation's board of directors (or persons performing the equivalent functions):
   1. (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Corporation's ability to record, process, summarize and report financial information; and
   2. (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Corporation's internal control over financial reporting.

Date: May 23, 2022

/s/ JACQUES FOURIE

Jacques Fourie  
Chief Executive Officer  
Principal Executive Officer

47

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

# DAVID NGUYEN

Chief Technical Officer

## PROFILE

Seasoned Chief Technical Officer and Product Manager having worked with tech companies over the last 25 years, I have built and helped build companies from scratch, developed businesses, and managed large and complex projects in mission-critical environments. With great leadership and business expertise, as well as team-building abilities and decision-making skills, I make thoughtful decisions about the mission and goals of the organizations I work for.
By understanding core business, analyzing transversal needs, apprehending the intricate underlying interactions and defining the technologies that drive the businesses, I have helped many companies thrive and succeed in a wide variety of fields, including IT Infrastructure, Marketing, Sales or Logistics.

## CORE COMPETENCIES

**NATIONALITY**
French (B Permit)

- » Company Management
- » Capital Raising
- » Strategic Oversight
- » Market Insights
- » Risk Management
- » Change Management
- » Leadership
- » Team Building
- » Sales Development
- » Product Development
- » Project Management
- » Research & Development
- » Business Processes
- » Negotiation
- » Communication

## LANGUAGES

English

French

Spanish

German

## TECHNICAL SKILLS

### Development

- » CI/CD, test automation
- » Agile, SCRUM, DevOps
- » .NET, NodeJS, PHP
- » Javascript, HTML, CSS
- » iOS, Android
- » SQL Server, MySQL
- » Postgres, MongoDB

### Server technologies

- » Windows Server
- » Microsoft Exchange
- » Microsoft SharePoint
- » Microsoft Office365
- » Microsoft SQL Server
- » Linux, MacOS

### Networking / Infrastructure

- » Cisco Routing
- » Cisco Security
- » Cisco Switching
- » Cisco Telephony
- » VMWare
- » EMC, Netapp
- » Azure, AWS, Google Cloud

## EMPLOYMENT HISTORY

### DN Consulting

**Independent Consultant**
2013 - Present (7 years)

Basel, Switzerland

Working as a CTO/CSO/CMO for companies ranging from startups to well-established enterprises, I help businesses when they need short to mid-term very high level of expertise in any field dealing with technology.

I advise CEOs when they need to understand the necessity of digital transformation and how it applies to their businesses by translating complex business requirements into technical specifications.

I assist companies when they need a strong project manager capable of handling every phase of product development, from feasibility to implementation including significant rollout to multiple countries and worldwide users.

- » digital product development in all phases of the development life cycle
- » business model definition, ROI, and assisting in capital funding, market analysis and overall business strategy

## HOBBIES

Swim, Bike, Run
(3 times Ironman finisher,
3 times Marathon finisher)
Hiking, Climbing, Alpinism
Music (piano, guitar)

» complex IT architectures and infrastructure design, including disaster recovery, business continuity, cloud computing and advanced security
» sales, marketing, IT and software development teams management, including recruitment and people onboarding and training (internal, near-shore and offshore)

# KEY INDUSTRIES I HAVE WORKED FOR

» Public Safety
» Fashion Industry
» Logistics and Transportation
» Laboratory instrumentation and automation
» Real Estate
» Pharmaceutical
» Retail Industry
» Entertainment Industry
» Automotive Industry
» Press, ...

# HR Net

Mulhouse, France

# Founder and CEO

1995 - 2013 (18 years)

# Internet Service Provider

Founded the first regional ISP in 1995 and grew to one of the largest regional provider in France with over 1 000 business customers.

# Digital Web Agency

Founded in 1999 one of the first truly integrated digital web agencies in France, bringing marketing, advertising, and IT skills into a one-stop solution in an emerging market.

# IT Services

As an extension to its Internet Service Providing services, HR Net helped design, build and maintain complete and complex network infrastructures for business clients, including high availability and business continuity solutions.

- Served as the founder and CEO, overseeing all the day-to-day operations from IT management to sales and marketing as well as all the strategic choices and decisions for all business activities.

- Built the company from scratch. My role was to assist clients in their digital transformation encompassing all aspects of their business to bring them to the digital age.

- Acted as the certified partner with the following vendors/technologies: Cisco, Microsoft, EMC, VMWare, IBM, HP, Altiris (ITIL), and more.

Sold the company in 2013

# Encore Studios

Burbank, USA

# Assistant Engineer

1993 - 1994 (1 year)

- Assisting recording and mixing engineers with live, music, and vocals recording and mixing sessions with world-renowned producers, musicians, and performers.

- Worked with many artists, including Diana Ross, Lionel Richie, Chicago, Bobby Womack, ...

# EDUCATION

# UCLA

Los Angeles, USA

1992 - 1994

# Recording Engineering

Audio production and engineering, studio and live music production, sound design for theater, film, TV, radio, interactive digital media productions.

# Electronic Music

Broad-based musical and artistic education coupled with extensive practical training with a specific focus on electronic music.

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

Prep School, Lycée Massena

Nice, France

1991 - 1992

# SIGNIFICANT PROJECT PORTFOLIO

Client: L'Agence Sentinel

Colmar, France

Industry: Public Safety App

Context

The founder wanted to build an app to improve public safety using a peer-to-peer solution that would enable each user to report any incident, accident, or danger he witnesses. The app would then alert users concerned by the threat and inform the public authorities.

Solution

Created a full-featured mobile app to report danger in real-time, including live chat and video chat. Created a full-featured supervisor app so the control center can monitor situations in real-time with a direct connection to the public authorities.

Skills

Business Development, Marketing Strategy, Product Development, Web Development, Mobile App Development, Agile/Scrum, IOT

Tasks / Achievements

- » Supported the founder from inception to the market release of the service and led a 2M€ fundraising. Defined the business model with the founder and set the market strategy to allow the client to transform his ideas into a marketable product
- » Defined the app features and roadmap over a 3-year cycle
- » Defined the technical specifications and requirements and selected all the tech stacks needed to support a highly secure and scalable service
- » Designed and managed the development of the mobile app for iOS and Android using Swift and Javac
- » Designed and managed the development of the backend app and web app using Node.JS and MongoDB no-SQL servers
- » Defined, build and managed the deployment of the hosting infrastructure with high availability, resiliency and scalability requirements
- » Helped establish the marketing strategy supporting the CMO
- » Defined pricing model and help set the sales strategy supporting the CSO
- » Defined the partnership strategy and led negotiations with highly ranked officials at the Interior Ministry, which allowed the client to be the only app in France to connect directly to the national police
- » Designed a connected device (IoT) able to use the system directly without needing a Smartphone; designed and built the prototype using Raspberry Pi computers coupled with a proprietary circuit board and managed sourcing the industrialization of the build process.

Client: NDA protected

Strasbourg, France

Industry: Proptech - 3D virtual tours

Context

The founder and CEO needed to scale the company as he was in negotiations with one of the largest banks in France that would multiply by five the number of orders they had. The founder also wanted to create a new service to reach the consumer market.

Solution

Defined all the creation and production processes and built an automated solution integrating all the operations with real-time monitoring.

Defined and created a mobile app that allows any user to build a 3D Virtual Tour of his home in less than 2 minutes.

Skills

Business Development, Marketing Strategy, Product Development, Web Development, Mobile App Development, Agile/Scrum, Process Automation

Tasks / Achievements

- » Collected all processes from a single individual working intuitively and with no defined processes
- » Industrialized all the processes to make them more streamlined and reproducible
- » Hired and built a nearshore team to handle all the underlying operations. Created all

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

the training materials so new members of the team could quickly and autonomously perform all tasks, using video tutorials and managing video and sound production and post-production

» Defined all the requirements and features for a web app and the backend to automate the creation process. Designed and managed the development of the apps using Node.js and MongoDB no-SQL server.
» Designed and built an automated server form to render 3D models using Blender
» Integrated all the process and automated most of the tasks to efficiently scale using Zapier and integrated the sales process with the production process using PipeDrive
» Defined a new service for consumers that would enable end-users to build a 3D tour of their own home automatically. Defined the business model and the market strategy. Created marketing videos to promote and pre-launch the service
» Defined all the features and requirements to create a mobile app. Defined the roadmap
» Designed and managed the development of the mobile app using Xamarin and .NET solutions.

### Client: Chlorophyl Vision

Colmar, France

Industry: Software development

Context

The client had developed a sophisticated low code mobile development platform and was looking to expand his client base and partnership. He had a robust solution but no growth strategy or go to market plan.

Solution

Defined a marketing and product strategy better adapted to the market demand. Created marketing materials.

Skills

Business Development, Marketing Strategy, Product Development

Tasks / Achievements

» Helped defined and fine-tune product features to meet the actual market demand better
» Created and redacted marketing material to pitch investors and potential partners
» Defined the growth and marketing strategy that caught the attention of Microsoft
» Led negotiations with Microsoft so they would push the product to their significant clients

### Client: Pointe-à-Pitre Airport

Pointe-à-Pitre, Guadeloupe

Industry: International Airport

Context

The client wanted to migrate his messaging services to make it more secure and more streamlined.

Solution

Migrated and built a new more robust messaging system.

Skills

IT design, Microsoft Server Technology

Tasks / Achievements:

» Collected users' requirements and defined global solution
» Designed and managed the deployment of a messaging solution using Microsoft Exchange

### Client: Endress + Hauser France

Huningue, France

Industry: Measurement Instrumentation

Context

The client needed a solution to track tools that are sent all over the country to technicians and clients. He needed a way to locate each tool and enable users to report any damaged or faulty equipment easily and quickly.

Solution

Created an app that allows planning and monitoring of shipments and real time tracking.

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

Skills

Product Development, Web Development, Mobile App Development, Agile/Scrum

Tasks / Achievements

» Defined the business requirements
» Created an app that allowed users to track each tool by scanning QRCodes. Users could report any issue directly from the app by taking a picture.
» Defined the processes, the logic, and the features
» Designed and managed the development of the web and mobile app
» Created the training material

Context

The client wanted to create an interactive Web TV to publish corporate videos, client interviews, and product news.

Solution

Build an interactive web site where the users can watch presentation videos with dynamic embedded links to other relevant videos and an integrated product catalog detailing products presented in the videos (visible at https://webtv.frendress.com/).

Skills

Product Management, Web Development and Design, Marketing

Tasks / Achievements

Designed and managed the development of an interactive web site

» Supported the client in building the logic inside the first videos to match the interactive process.
» Integration of the raw videos into the web app that was developed

Context

The client wanted to automate his probe temperature calibration process in order to minimize errors and be able to deliver calibration certificates more quickly.

Solution

Create apps that allows the client to collect calibration data automatically through direct connection to high precision meters and automate the calibration process and certification.

Skills

Product Management, Web Development, Desktop App Development, Process Automation, Agile/Scrum

Tasks / Achievements

» Created a desktop app connected to high precision meters that automatically collects and enables the operator to input data manually if needed
» Creates a web app to plan and monitor the calibration processes
» Defined the app features to process all collected data in order to produce a calibration certificate
» Designed and managed the development of the app

Client: Endress + Hauser Germany

Maulburg, Germany

Industry: Measurement Instrumentation

Context

The client wanted to build a videogame used as a training tool for their sales team. Solution Build a videogame through a webapp.

Skills

Web Development, Agile/Scrum

Tasks / Achievements

» Designed and managed the development of the web site and the coding of the videogame
» Managed voice over sound recording and sound editing

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

## Client: Clin Data Management

Rouffach, France

Industry: Pharma - Medical Data Storage

# Context

The client was commissioned by a large pharmaceutical company to build a secure digital storage solution to store and archive clinical trial data with substantial compliance requirements.

# Solution

Build a complete network and server infrastructure that followed strict guidelines and regulatory requirements.

# Skills

IT Design, Microsoft Server, Cisco Networking

# Tasks / Achievements

- » Network and security design
- » Server and storage design
- » Managed the deployment and implementation of the infrastructure

## Client: Love The Brands

Madrid, Spain

Industry: Fashion Industry - Web Portal

# Context

The client wanted to build a fashion portal from scratch that could aggregate hundreds of e-commerce websites and collect statistical data about the content aggregated to determine trends and usage data.

# Solution

Build a global data parser collecting information from different e-commerce websites with a tool to standardize data so it could be globally indexed and searched. Build a web site presenting all the data so users can browse and search the aggregated data. Build an analytical tool to process all collected data and produce significant trends to brands and e-commerce actors.

# Skills

Product Management, Product Development, Web Development, Agile/Scrum

# Tasks / Achievements

- » Defined the business requirements
- » Overall definition of the technical strategies and solutions
- » Designed and managed the development of the backend app and web app using NodeJS and MongoDB no-SQL servers
- » Supported the client in meetings to present the solution to potential investors and partners

## Client: Mac Donald's

Paris, France

Industry: Fast Food

# Context

The client needed an extranet solution to publish data to all the franchisees. Data had to be accessible around the clock and be fully secured as it contained confidential information.

# Solution

Build a secure and reliable server infrastructure to support the hosting of the client's extranet meeting all the feature requirements.

# Skills

IT design, Microsoft Server Technology, VMWare virtualization

# Tasks / Achievements

- » Defined server architecture to match the client's needs
- » Designed and managed end solution deployment using Microsoft SharePoint and VMWare infrastructure

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

Client: SAT France

Bartenheim, France

Industry: Transport and logistics

Context

The client handles continuous processing of customs declarations for high-end international clients in the luxury industry. He needed a solution with minimum downtime and fast recovery time in case of failure.

Solution

Design and build a highly redundant and resilient network operated from multiple locations with a geo-replication system designed to improve the distribution of data across geographically distributed data networks.

Skills

IT design, Microsoft Server Technology, VMWare virtualization, Cisco Networking and Telephony, Data Storage

Tasks / Achievements

» Designed the network, security, server infrastructure
» Managed the deployment of the network using Cisco Firewalls, Switches and Routers
» Managed the implementation of the server and storage environment using Cisco Server, VMware ESXi, and EMC Unity
» Designed and implemented a global and unified telephony solution spreading over 12 locations using Asterisk and Cisco Webex

Context

The client needed a solution to invoicing his customers based on the operations conducted.

Solution

Development of an app that collects data from a database and processes them to automate the invoicing process.

Skills

Process Automation, Web Development

Tasks / Achievements

» Defined the business requirements
» Designed and managed the development of the web app
» Integrated the app with the invoicing software

Client: Carré Eden

Marrakech, Morocco

Industry: High end luxury real estate

Context

The client needed a solution to track and process tenants' complaints and follow issue resolutions. Tenants are high net worth international individuals with high expectations, and the client required a solution both easy to use and able to cover specific needs.

Solution

Created a web app that allows users to report issues with a full tracking solution of each issues and with automated task assignment and extended monitoring.

Skills

Product Management, Product Development, Web Development

Tasks / Achievements

» Defined the business requirements
» Created a three-level app for the tenants, building managers and suppliers allowing complete monitoring of complaints and processes to resolve tenants' issues
» Defined the processes, the logic, and the features
» Designed and managed the development of the web and mobile app
» Created the training material and training of stakeholders

David Nguyen

+41 79 814 01 68

davidnguyen@dnconsulting.ch

**Client: Cryostar**

**Hésingue, France**

**Industry: Cryogenic Equipment**

**Context**

As the client was expanding to more international sites, he needed a secure way to connect all the sites and to provide secure remote access to the network. As the client was scaling quickly, he needed a solution to actively deploy end users' desktop computers.

**Solution**

Build a robust network and implementation of a IT Service Management Solution

**Skills**

IT Design, ITIL, Cisco Networking

**Tasks / Achievements**

» Designed and managed the deployment of security network solution using Cisco firewalls, routers and switches
» Collected requirements, designed and managed the deployment of IT Service Management solution enforcing ITIL standards using Altiris

**Context**

The client wanted a full redesign of his web site that would better suit his industrial identity.

**Solution**

Design and creation of the web site along with the marketing material.

**Skills**

Web Design, Marketing

**Tasks / Achievements**

» Web site design and creation, managing the development
» Created marketing materials

**David Nguyen**

+41 79 814 01 68

davidnguyen@dnconsulting.ch

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

# Dominic Wardall

Profile

Experienced Communications Specialist with a twenty-plus year history as a publisher, journalist and small business owner. Strong media and communication skills, including publishing, journalism, media relations, copywriting, graphic design & layout, advertising sales and social media management.

Experience

Communications & Stakeholder Relations, SEED Africa, Cape Town - 2019 - Present

- Created marketing collateral, including brochures, pitch decks and website content.
- Managed relationships with suppliers, investors and other stakeholders.
- Handled all corporate communications

Publisher/Owner, TTG Southern Africa, Cape Town - 1997 - 2019

- Published South Africa's leading travel trade print and online magazine.
- Managed content, advertising sales and distribution.
- Wrote and edited articles, features, advertising copy and social media posts.

Artist Relations Officer, Sony Music Entertainment, London 1995 - 1996

- Coordinated the in-house concert ticketing and distribution.
- Assisted with the organisation of live showcases and other events.
- Organised the hosting of visiting artists on the label's roster.

Education

University of Guelph, Guelph, Ontario, Canada - BA Psychology 1988 - 1991

Skills

Excellent written and verbal communication, copywriting, sales, stakeholder relations, social media management, software (Adobe Creative Cloud), interpersonal skills, integrity, creativity, dependability.

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

# Jacques Fourie
## Technology entrepreneur

### Profile

Extensive knowledge and experience in investment management and financial markets, technology and trends, and general business management and consulting. **An autodidactic poly-math and self-starter with an avid interest in technological innovation.**

### Experience

President and chief executive officer 2016 - present

#### Doofus Corporation

Doofus Corporation was founded in 2016 with the purpose of developing and operating problem solving internet products with global application and scalability.

#### *Responsibilities:*

- Establishing the Company's headquarters in Zurich
- Getting its first application to market
- Growing Doofus into a fully fledged technology business

Business consultant 2008 - 2016

#### Skills development and training

Consulted and mentored previously-disadvantaged entrepreneurs in Cape Town, South Africa.

#### *Responsibilities:*

- Mentoring prospective entrepreneurs through the business startup process
- Offering continued guidance and mentoring to startup entities
- Consulting on business structures, finance, human resources, marketing and taxation

Director of companies and trustee 1989 - present

#### Private family-owned investment entities

Established and managed a number of private family-owned investment companies and trusts in South Africa and abroad. Due to my growing interest in technology it was decided to transfer the investments portfolios to professional fund managers.

#### *Responsibilities:*

- Managing all operations and **regulatory compliance** including finance, legal and taxation
- Managing all investment and trading portfolios
- Chairman of various boards

Senior equity trader (JSE) 1990 - 1991

#### De Witt Morgan and Company

Junior equity trader (JSE) 1988 - 1990

#### Max Pollak and Freemantle

Rank of gunner (compulsory military service) 1986 - 1987

#### South African Defence Force

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

### Details

Date of birth: March 1, 1968

Nationality: South African

Gender: Male

Marital status: Single

### Education

- Diploma in leadership and management
- Diploma in psychology of sales
- Advanced diploma in digital marketing
- Advanced diploma in web design
- Advanced diploma in web development

### Core competencies

- Communication
- Motivation
- Strategic thinking
- Talent development
- Team building

### Technical competencies

#### Software engineering

- Bootstrap
- CSS
- HTML
- JavaScript
- MariaDB
- MySQL
- PHP
- Python

#### Other

- Artificial intelligence (computer vision, machine learning)
- Digital marketing
- Distributed ledger technology (block chain)
- Mobile application development

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

Contact

www.linkedin.com/in/loisli
(LinkedIn)

Top Skills

Start-ups

Entrepreneurship

Renewable Energy

Languages

Chinese (Mandarin & Cantonese)

English

Certifications

Financial Valuation and Analysis

New York Licensed Attorney

Solicitor & Barrister | Lawyer

Michigan Licensed Attorney

Registered Nurse

# Lois (Nuo Jia) Li

Attorney | RN - Harvard Educated - Specializing in Corporate,
Securities, Contracts, Cryptocurrency, M&A and Healthcare Law
New York

## Summary

Experienced bilingual attorney with a demonstrated history of
working in securities, technology, healthcare, manufacturing, and
financial industries. Skilled in Multinational Establishment and
Operations (US, China, Canada), Tax Strategy, Negotiation, and
Business Planning. Strong operations professional with a Dual US -
Canada Juris Doctor (J.D.) focused in Law from University of Detroit
Mercy School of Law and University of Windsor.

## Experience

Alpine Law PLLC

Managing Attorney

January 2017 - Present (5 years 5 months)

US (California, New York, MI, HI) & China (Shanghai, Nanjing) & Canada (ON,
AL)

Core practice areas: Securities, International Business, Tax, Commercial
and Contracts, Healthcare law, Labor & Employment law, Technology and
Intellectual Property Law, and Finance law; Experienced with multinational
start-ups

With years of experience in assisting clients with legal services and business
operations, I have served as both an outside and an in-house counsel. I have
worked with businesses at various stages, from startup, to small businesses,
to international corporations. With a strong understanding of core business and
the ability to translate business needs into legal requirements, I have helped
many companies with equity financing, IP protection, to establish policies and
procedures, and to draft and negotiate transnational contracts.

As an attorney licensed in two countries and bilingual in English and Chinese, I
am experienced in international establishment and expansion of business and
strategic planning in US, China, and Canada.

StoneShell Medical Corp.

Page 1 of 3

4 years 8 months

General Counsel & VP of Legal

November 2014 - August 2017 (2 years 10 months)

Michigan, US & Ontario, Canada

- Oversaw corporate governance and governmental regulatory compliance
- Established infrastructure for management of contracts
- Drafted and negotiated procurement and vendor contracts
- Negotiated corporate merger and acquisition contract
- Engaged Canadian and US Medical Funding Programs and Governmental Relations

Director of Operations and Legal

January 2013 - November 2014 (1 year 11 months)

Ontario, Canada

- Directed strategic and functional operations of medical supply sales, maintenance and servicing
- Initiated, negotiated and implemented procurement and service contracts, and employment contracts
- Multi Year strategic planning for expansion plans and financial forecasting
- Established quality control policies; Managed logistics and warehousing
- Maintained Provider and Supplier Relations

35th District Court

Judicial Intern

October 2011 - September 2012 (1 year)

Plymouth, Michigan

Interned under Honorable Judge Michael Gerou.

Researched on civil and criminal procedures, and internal court matters.

Provided summaries and recommendations to judge on general complaints and motions

# Education

Harvard Business School

Financial Valuation and Analysis · (2021 - 2021)

University of Detroit Mercy School of Law

Juris Doctor (J.D.), Law · (2011 - 2014)

University of Windsor Law

Page 2 of 3

Juris Doctor (J.D.), Law · (2011 - 2014)

University of Windsor

Bachelor of Science in Nursing, Registered Nurse · (2006 - 2010)

Page 3 of 3

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

# DOOFUS CORPORATION

# SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS 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.

This SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT (this "Agreement") is made effective as of ________________ ("Effective Date") by and between Doofus Corporation, a Delaware corporation (the "Corporation"), and ________________ the "Subscriber").

WHEREAS, the Subscriber desires to purchase and the Corporation desires to issue and sell shares of its common stock, par value of $0.000001 per share ("Common Stock") on the terms set forth herein.

NOW, THEREFORE, in consideration for mutual covenants made in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, the Corporation and Subscriber hereby agree as follows:

1. Sale of Stock. The Corporation hereby agrees to sell to the Subscriber and the Subscriber hereby agrees to purchase an aggregate of ________________ shares of the Corporation's Common Stock ("Shares") at a purchase price of $0.01 per share for a purchase amount of $________________. The payment of the purchase amount shall be made on the Effective Date in cash (by wire transfer) of immediately available funds to the account specified in writing by the Corporation to the Subscriber.
2. Restrictions on Transfer.

2.1. Right of First Refusal. Before any Shares held by Subscriber or any transferee ("Proposed Transferee") of Subscriber (either being sometimes referred to herein as the "Holder") may be

1

sold or otherwise transferred (including transfer by gift or operation of law), the Corporation or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions set forth in this Section 2.1 (the “Right of First Refusal”).

**2.1.1. Notice of a Proposed Transfer.** In the event that a Subscriber desires at any time to transfer all or any part of such Subscriber’s Shares (a “Transferring Subscriber”), the Transferring Subscriber first shall give written notice (“Notice”) to the Corporation of such Transferring Subscriber’s intention to make such transfer. Such Notice shall state the number of Shares which the Transferring Subscriber proposes to transfer (the “Offered Shares”), the price (“Offered Price”) and the terms at which the proposed transfer is to be made and the name and address of the proposed transferee.

**2.1.2. Exercise of Right of First Refusal.** At any time within thirty (30) days after receipt of the Notice, the Corporation and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the proposed transferees, at the purchase price determined in accordance with Section 2.1.3 below.

**2.1.3. Purchase Price.** The purchase price (“Purchase Price”) for the Shares purchased by the Corporation or its assignee(s) under this Section 2.1.3 shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Corporation in good faith.

**2.1.4. Payment.** Payment of the Purchase Price shall be made, at the option of the Corporation or its assignee(s), in cash (by certified or official bank check or by wire transfer), by cancellation of all or a portion of any outstanding indebtedness, or by any combination thereof within thirty (30) days after receipt of the Notice or in the manner and at the times set forth in the notice.

**2.1.5. Holder’s Right to Transfer.** If all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Corporation and/or its assignee(s) as provided in this Section 2.1.5, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within sixty (60) days after the date of the Notice and provided further that any such sale or other transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in

2

writing that the provisions of this Section 2 shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, or if the Holder proposes to change the price or other terms to make them more favorable to the Proposed Transferee, a new Notice shall be given to the Corporation, and the Corporation and/or its assignee(s) shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

**2.1.6. Exception for Certain Family Transfers.** Anything to the contrary contained in this Section 2 notwithstanding, the transfer of any or all of the Shares during Subscriber's lifetime or on Subscriber's death by will or intestacy to Subscriber's Immediate Family or a trust for the benefit of Subscriber or Subscriber's Immediate Family shall be exempt from the provisions of this Section 2. "Immediate Family" as used herein shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, or any person sharing the Subscriber's household (other than a tenant or an employee). In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section 2, and there shall be no further transfer of such Shares except in accordance with the terms of this Section 2.1.6.

**2.2. Corporation's Right to Purchase upon Involuntary Transfer.** In the event, at any time after the date of this Agreement, of any transfer by operation of law or other involuntary transfer (including divorce or death, but excluding in the event of death a transfer to Immediate Family as set forth in Section 2.1.6 above) of all or a portion of the Shares by the record holder thereof, the Corporation shall have the right to purchase all of the Shares transferred at the greater of the purchase price paid by Subscriber pursuant to this Agreement or the fair market value of the Shares on the date of transfer (as determined by the Board of Directors of the Corporation). Upon such a transfer, the person acquiring the Shares shall promptly notify the Secretary of the Corporation of such transfer. The right to purchase such Shares shall be provided to the Corporation for a period of thirty (30) days following receipt by the Corporation of written notice by the person acquiring the Shares.

**2.3. Assignment.** The right of the Corporation to purchase any part of the Shares may be assigned in whole or in part to any holder or holders of capital stock of the Corporation or other persons or organizations.

3

2.4. Restrictions Binding on Transferees. All transferees of Shares or any interest therein shall receive and hold such Shares or interest subject to the provisions of this Agreement. In the event of any purchase by the Corporation hereunder where the Shares or interest are held by a transferee, the transferee shall be obligated, if requested by the Corporation, to transfer the Shares or interest to the Subscriber for consideration equal to the amount to be paid by the Corporation hereunder. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied.

2.5. Termination of Rights. The Right of First Refusal and the Corporation's right to repurchase the Shares in the event of an involuntary transfer pursuant to Section 2.2 above shall terminate upon the first sale of Common Stock of the Corporation to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act").

3. Investment Representations. In connection with the purchase of the Shares, the Subscriber represents to the Corporation the following:

3.1. Requisite Investment Knowledge. The Subscriber represents, warrants and acknowledges that the Subscriber: (i) is aware of the Corporation's business affairs and financial condition and has acquired sufficient information about the Corporation to reach an informed and knowledgeable decision to acquire the Shares, (ii) has had an opportunity to ask questions of and receive answers from a Corporation representative concerning the terms and conditions of this investment; (iii) is acquiring the Shares with the Subscriber's own funds, for the Subscriber's own account for the purpose of investment, and not with a view to any resale or other distribution thereof in violation of the Securities Act; (iv) is a sophisticated investor with such knowledge and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the Shares and that the Subscriber is able to and must bear the economic risk of the investment in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act, and therefore, cannot be offered or sold unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Furthermore, the Corporation may place legends on any stock certificate representing the Shares with the securities laws and contractual restrictions thereon and issue related stop transfer instructions.

3.2. Unregistered Securities. The Subscriber acknowledges and understands that the Shares have not been registered under the Securities Act, nor registered pursuant to the provisions of the securities laws or other laws of any other applicable jurisdictions, in reliance on exemptions for private offerings contained in Section 4(2) of the Securities Act and in the laws of such jurisdictions. The

4

Subscriber further understands that the Corporation has no intention and is under no obligation to register the Shares under the Securities Act or to comply with the requirements for any exemption that might otherwise be available, or to supply the Subscriber with any information necessary to enable the Subscriber to make routine sales of the Shares under Rule 144 or any other rule of the SEC.

### **3.3. Foreign Subscriber Representations.**

**3.3.1.** To the extent that Subscriber is not a United States person, as such term is defined in Rule 902 promulgated under the Securities Act (a “Regulation S Subscriber”), which by such Regulation S Subscriber’s execution of this Agreement such Subscriber hereby confirms, that the Shares shall be acquired for investment for such Regulation S Subscriber’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof in the United States or to a United States resident, and that such Regulation S Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, such Regulation S Subscriber further represents that such Regulation S Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person in the United States or to a United States resident, with respect to any of the Shares.

**3.3.2.** If Subscriber is an individual, then the Subscriber resides in the state or province identified in the address of Subscriber set forth in Section 11.3 of this Agreement; if the Subscriber is a partnership, corporation, limited liability company or other entity, then the office or offices of the Subscriber in which its investment decision was made is located at the address or addresses of the Subscriber set forth in Section 11.3 of this Agreement.

**3.3.3.** If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents 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 government or other consents that may need to be 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. Subscriber’s subscription and payment for and continued beneficial ownership of the Shares shall not violate any applicable securities or other laws of Subscriber’s

5

jurisdiction.

4. **Stock Certificate Legends.** The share certificate evidencing the Shares issued hereunder shall be endorsed with the following legends and any legend required by any applicable state securities laws:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

“THE SALE OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT BY AND BETWEEN THE REGISTERED SUBSCRIBER HEREOF AND THE CORPORATION THAT PROVIDES FOR A RIGHT OF REPURCHASE. SUCH RESTRICTIONS ARE BINDING UPON TRANSFEREES OF THESE SHARES. COPIES OF THE SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL OPTION IN FAVOR OF THE CORPORATION, AS PROVIDED IN THE BYLAWS OF THE CORPORATION.”

5. **Changes in Corporation Capital Stock.**

5.1. **Mergers and Other Events.** If, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Corporation’s capital stock, the outstanding shares of Common Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Corporation, or additional shares or new or different shares or other securities of the Corporation or other non-cash assets are distributed with respect to such shares of Common Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets of the Corporation, the outstanding shares of Common Stock are converted into or exchanged for a different number or kind of securities of the Corporation or any successor entity (or a parent or subsidiary thereof), the Board of Directors shall make an appropriate or proportionate adjustment in the number and kind

6

of Shares subject to this Agreement. The adjustment by the Board of Directors shall be final, binding and conclusive. No fractional Shares shall be issued under this provision resulting from any such adjustment, but the Board of Directors in its discretion may make a cash payment in lieu of fractional shares. Upon the occurrence of any merger or consolidation of the Corporation with or into another entity as a result of which the Common Stock is converted into or exchanged for the right to receive cash, securities or other property, or any exchange of the Common Stock for cash, securities or other property pursuant to a share exchange transaction, the restrictions on transfer and the other provisions of this Agreement shall inure to the benefit of the Corporation's successor.

**5.2. Board Action.** The Board of Directors may also adjust the number of Shares subject this Agreement and the terms of this Agreement to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock or property or any other event if it is determined by the Board of Directors that such adjustment is appropriate to avoid distortion in the operation of this Agreement.

**6. Stockholder Rights.** Subject to certain provisions of this Agreement, until such time as the Corporation actually exercises its repurchase rights under this Agreement, the Subscriber (or any successor in interest) shall have all the rights of a stockholder (including voting and dividend rights) with respect to the Shares.

**7. Liquidation Preference.** In the event of a Dissolution, and such Dissolution entitles the undersigned an amount of liquidation proceeds less than the Subscriber's purchase amount under this Agreement, the Subscriber shall have the right to receive a return of its purchase amount based on the priority ('Liquidation Priority') below.

**7.1.** Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into shares of the Corporation).

**7.2.** Junior to payments for Preferred Stock (if any).

**7.3.** Senior to payments for Common Stock held by holders who do not have the Liquidation Priority rights outlined under this Agreement, and at par to Common Stock holders with the same Liquidation Priority right; and if liquidation proceeds are insufficient to permit full payments to the Subscriber and such other holders of Common Stock with the same Liquidation Priority right, the applicable liquidation proceeds will be distributed pro rata to the Subscriber and such other holders of Common Stock with the same Liquidation Priority right in proportion to the full

7

payments that would otherwise be due.

"Dissolution" shall mean (i) a voluntary termination of the Corporation's operations; (ii) a general assignment for the benefit of the Corporation's creditors; or (iii) a liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary.

8. Market Stand-Off Agreement. The Subscriber hereby agrees, if so requested by the managing underwriters or the Corporation in connection with the initial public offering of the Corporation's Common Stock, that, without the prior written consent of such managing underwriters, the Subscriber shall not offer, sell, contract to sell, grant any option to purchase, make any short sale or otherwise dispose of, assign any legal or beneficial interest in or make a distribution of any capital stock of the Corporation held by or on behalf of the Subscriber or beneficially owned by the Subscriber in accordance with the rules and regulations of the SEC for a period of up to one hundred and eighty (180) days after the date of the final prospectus relating to the Corporation's initial public offering (or such longer period of time as may be required to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2241, as applicable, (or any successor rules or amendments thereto)) (the "Lock Up Period").

9. Certain Tax Matters. If the Corporation in its discretion determines that it is obligated to withhold any tax in connection with the transfer of the Shares, the Subscriber hereby agrees that the Corporation may withhold from the Subscriber the appropriate amount of tax. At the discretion of the Corporation, the amount required to be withheld may be withheld in cash from the Subscriber. The Subscriber further agrees that, if the Corporation does not withhold an amount from the Subscriber sufficient to satisfy the withholding obligation of the Corporation, the Subscriber shall make reimbursement on demand, in cash, for the amount underwithheld. The Subscriber represents that it has received tax advice from its own personal tax advisor on the tax consequences of a purchase of the Shares.

10. Failure to Deliver Shares. If the Subscriber (or its legal representative) who has become obligated to sell Shares hereunder shall fail to deliver such Shares to the Corporation in accordance with the terms of this Agreement, the Corporation may, at its option, in addition to all other remedies it may have, pay (by certified or official bank check or by wire transfer) to the Subscriber the purchase price for such Shares as is herein specified. Thereupon, the Corporation (i) shall cancel on its books the certificate or certificates representing such Shares to be sold; and (ii) shall issue, in lieu thereof, a new certificate or certificates in the name of the Corporation representing such Shares (or cancel such Shares), and thereupon all of such Subscriber's rights in and to such Shares shall terminate.

8

**11. Spousal Consent.** In connection with this transaction, the Subscriber shall complete or cause their spouse to execute a Spousal Consent in the form attached to this Agreement as Exhibit A.

**12. General Provisions.**

**12.1. Governing Law.** This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed by the laws of the State of Delaware, without giving effect to principles of conflicts of law.

**12.2. Entire Agreement.** This Agreement sets forth the entire agreement between the parties with respect to the purchase of Shares by the Subscriber and merges all prior discussions between them.

**12.3. Notice.** Every notice relating to this Agreement shall be in writing and shall be given by personal delivery, sent by electronic mail, telegram or by registered mail, with postage prepaid, return receipt requested; to:

If to the Corporation:

Doofus Corporation
108 West 13th Street
Wilmington, Delaware 19801
United States
Email: president@doofus.xyz
Attention: President

If to the Subscriber:

_________________________
_________________________
_________________________
_________________________

Email: _________________________

Attention: _________________________

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 11.3.

**12.4. Successors and Assigns.** The rights and benefits of the Corporation under this Agreement

9

shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Corporation's successors and assigns. The rights and obligations of the Subscriber under this Agreement may only be assigned with the prior written consent of the Corporation and any purported transfer otherwise shall be null and void.

**12.5. Amendment; Enforcement of Rights.** No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. Either party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and shall not constitute a waiver of either party's right to assert all other legal remedies available to it under the circumstances.

**12.6. Cooperation.** The Subscriber agrees upon request to execute any further documents or instruments necessary or desirable to carry out the purposes or intent of this Agreement.

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

**12.8. Electronic Signatures.** Any signature page delivered electronically (including without limitation transmission by PDF) shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any amendment thereto. Any party who delivers such a signature page agrees to later deliver an original counterpart to the other party if so requested.

**12.9. Severability.** If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms.

**12.10. Attorneys' Fees.** If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs, and disbursements in addition to any other relief to which such party may be entitled. The Corporation and the Subscriber shall bear their own expenses and legal fees incurred on their

10

behalf with respect to this Agreement and the transactions contemplated hereby.

**12.11. Cancellation of Shares.** If the Corporation (or its assignee(s)) shall make available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such Shares are to be repurchased shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement), and such Shares shall be deemed purchased in accordance with the applicable provisions hereof and the Corporation (or its assignee(s)) shall be deemed the owner and holder of such Shares, whether or not the certificates therefor have been delivered as required by this Agreement.

**12.12. Acknowledgement.** The Subscriber has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement.

**12.13. Titles and Subtitles.** The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

IN WITNESS WHEREOF, the Corporation has caused this SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT to be executed by authority of its Board of Directors, and the Subscriber has hereunto set its hand, on the day and year first above written.

[Signatures on Next Page]

11

**Doofus Corporation:**

Signature: _________________________

By: Jacques Fourie

Title: President

AGREED TO AND ACCEPTED

**Subscriber:**

Signature: _________________________

By: _________________________

Title: _________________________

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EXHIBIT A:

# **SPOUSAL CONSENT**

The undersigned does hereby certify that he or she is the spouse of _________________ the individual who executed the above SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT (this "Agreement"). I acknowledge that my spouse's interest in the Shares (as defined in this Agreement) shall be irrevocably subject to the restrictions and bound by the terms of this Agreement. I further understand and agree that my community property interest in such securities, if any, shall similarly be subject to said restrictions and bound by said terms. I agree to execute and deliver such documents as may be necessary to carry out the intent of this Agreement.

Dated: _________________________

Signature of Spouse: _________________________

Name of Spouse: _________________________

-- OR --

I, _________________________, the person who executed the above SUBSCRIBER STOCK PURCHASE AND SHAREHOLDER RIGHTS AGREEMENT, do hereby certify that I am not married.

Dated: _________________________

Signature of Subscriber: _________________________

Name of Subscriber: _________________________

13

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

Can you vouch for Jacques Fourie?

Jacques Fourie, 1840, is a French Civilian Corporation and is a French-American company. He is a French-American businessman and is a French-American businessman. He is a French-American businessman and is a French-American businessman. He is a French-American businessman and is a French-American businessman. He is a French-American businessman and is a French-American businessman. He is a French-American businessman and is a French-American businessman. He is a French-American businessman and is a French-American businessman.

## Can you vouch for John Doe?

John has applied to raise funding for Company Name on Wefunder and provided your name as a personal reference.

Quote goes here

Wefunder has raised hundreds of millions for startups that later went on to raise over $5 billion in follow-on funding from venture capitalists.

Can you vouch for John?

VOUCH FOR JOHN

LEARN MORE

### About Wefunder

We help anyone invest as little as $100 in the startups they believe in. We're also a Public Benefit Corporation with a mission to keep the American dream alive. We aim to help 20,000 founders get off the ground by 2029.

Unsubscribe | About | Education

Wefunder Inc. runs wefunder.com and is the parent company of Wefunder Advisors LLC and Wefunder Portal LLC. Wefunder Advisors is an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder Portal is a funding portal (CRD #283503) that operates sections of wefunder.com where some Reg Crowdfunding offerings are made. Wefunder, Inc. operates sections of wefunder.com where some Reg A offerings are made. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA.

Company Name is testing the waters to evaluate investor interest. No money or other consideration is being solicited; if sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and, then, only through Wefunder. Any indication of interest has no obligation or commitment of any kind.

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Is this an amendment?** Yes

**Nature of Amendment:** Updating cap table and officers.

**Name of Issuer:** Doofus Corporation

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 08-29-2016

**Physical Address:** 108 West 13th Street, Wilmington, DE, 19801

**Issuer Website:** https://www.doofus.xyz

**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:** 7.5% 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:** Common Stock

**Number of Securities Offered:** 10000000

**Price per Security:** $0.01

**Method for Determining Price:** Dividing pre-money valuation $5,243,750.00 by number of shares outstanding on fully diluted basis.

**Target Offering Amount:** $100,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $250,000.00

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1

**Total Assets (Most Recent Fiscal Year):** $58,020.00

**Total Assets (Prior Fiscal Year):** $2,479.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $715.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $225.00

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $186,892.00

**Short-Term Debt (Prior Fiscal Year):** $78,238.00

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

**Long-Term Debt (Prior Fiscal Year):** $-29,325.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

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

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

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

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

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

**Net Income (Most Recent Fiscal Year):** $-121,789.00

**Net Income (Prior Fiscal Year):** $-122,345.00

**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:** Doofus Corporation

**Signature:** Jacques Fourie

**Title:** President and Chief Executive Officer

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**Signature:** Jacques Fourie

**Title:** President and Chief Executive Officer

**Date:** 02-26-2023

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**Signature:** Timothy ODonnell

**Title:** Independent Director

**Date:** 05-27-2022

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**Signature:** Johannes Joubert

**Title:** Management Consultant

**Date:** 05-27-2022

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**Signature:** Jacques Fourie

**Title:** President and Chief Executive Officer

**Date:** 05-26-2022