# EDGAR Filing Document

**Accession Number:** 0001873072
**File Stem:** 0001670254-23-000018
**Filing Date:** 2023-1
**Character Count:** 129179
**Document Hash:** 8e37f422e4f728493c403b804ab205ae
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000018.hdr.sgml**: 20230117

**ACCESSION NUMBER**: 0001670254-23-000018

**CONFORMED SUBMISSION TYPE**: C-AR

**PUBLIC DOCUMENT COUNT**: 11

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230117

**DATE AS OF CHANGE**: 20230113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Swopblock LLC
- **CENTRAL INDEX KEY:** 0001873072
- **IRS NUMBER:** 862431858
- **STATE OF INCORPORATION:** PA

**FILING VALUES:**
- **FORM TYPE:** C-AR
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-28452
- **FILM NUMBER:** 23529904

**BUSINESS ADDRESS:**
- **STREET 1:** 1684 HENRIETTA MOUNTAIN RD
- **CITY:** MARTINSBURG
- **STATE:** PA
- **ZIP:** 16662
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 1684 HENRIETTA MOUNTAIN RD
- **CITY:** MARTINSBURG
- **STATE:** PA
- **ZIP:** 16662

## Ex-99

### Attached PDF Documents

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

# Annual Report

## Cover Page

Name of issuer:

Swopblock LLC

Legal status of issuer:

Form: Limited Liability Company
Jurisdiction of Incorporation/Organization: PA
Date of organization: 3/4/2021

Physical address of issuer:

1684 Henrietta Mountain Rd
Martinsburg PA 16662

Website of issuer:

https://swopblock.org

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

OK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

Current number of employees:

2

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets | $76,199.00 | $0.00 |
| Cash & Cash Equivalents | $40,926.00 | $0.00 |
| Accounts Receivable | $0.00 | $0.00 |
| Short-term Debt | $5,051.00 | $0.00 |
| Long-term Debt | $136,316.00 | $0.00 |
| Revenues/Sales | $0.00 | $0.00 |
| Cost of Goods Sold | $0.00 | $0.00 |
| Taxes Paid | $0.00 | $0.00 |
| Net Income | ($54,944.00) | $0.00 |

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

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

## Offering Statement

Respond to each question in each paragraph of this part. Set forth each question and any notes, but not any instructions thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to report 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:

Swopblock LLC

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

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Jeff Hilde | Engineer | Swopblock | 2021 |
| Austin Hilde | Communications | Swopblock | 2021 |

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 |
| --- | --- | --- |
| Jeff Hilde | CEO | 2021 |
| Jeff Hilde | Founder & Inventor | 2021 |
| Austin Hilde | Chief Creative Officer | 2021 |
| Austin Hilde | Communications | 2021 |

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

INSTRUCTION REQUESTION 5. For purposes of this Question 5, the term officer means a president, vice president, secretary, insurance or principal financial officer, competitive or principal accounting officer, and any person that controls performing similar functions.

## PRINCIPAL SECURITY HOLDERS

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

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Austin Hilde | Membership Interests | 50.0 |
| Jeff Hilde | Membership Interests | 50.0 |

INSTRUCTION REQUESTION 6. The above information must be provided as of a date that is not more than 120 days prior to the date of filing of this offering statement.

To calculate total voting power include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrants or rights, the conversion of a security, or other arrangement or of securities are held to a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or those in such direction or control - as, for example, a co-owner may should be included as being 'beneficially owned'). But should include an explanation of these circumstances in a footnote to the 'Number of and Class of Securities Now Held', to calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

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

For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan.

INSTRUCTION REQUESTION 7. Weynder will provide your company's Weynder profile as an appendix (Appendix A) to the Form C to PDF format. The references will include all Q&A terms and 'total more' links to an uncollapsed format. All values will be transcribed.

This means that any information provided in your Weynder profile will be provided in the SEC in response to this question. As a result, your company will be personally liable for misstatements and omissions in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Weynder profile carefully to ensure it provides all material information, is not false or misleading, and does not omit any information that would cause the information included to be false or misleading.

## RISK FACTORS

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

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

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

The company may be adversely affected by money transmitter regulations or other government regulations that restrict or prohibit its customer transaction activity.

The company may be adversely affected by Internet regulations that restrict or prohibit its business or customer communication activity.

The company may be adversely affected by app store restrictions that limit or prohibit customer access to the company software apps.

The company may be adversely affected by cryptographic regulations that restrict or prohibit its use of necessary software development tools and source code.

The company may be adversely affected by intellectual property that may exist that would restrict or prohibit some aspect of its business or customer activity.

The company may be adversely affected by a disrupted competitor using strategies that seek to void our efforts to promote, develop and deploy our software.

The company may face user community rejection and abandonment of our software due to many of different types of failures in software promotion, development, deployment and function.

Our future success depends on the efforts of a small development team. The loss of services of the members of the development team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining personnel we require to successfully code, build, test and deploy our software.

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

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.

INSTRUCTION IN QUESTION 9. Local personnel and customers and include only those factors that are unique to the issues. Discussion should be tailored to the issuer's business and the offering and should not repeat the factors addressed in the agenda set forth above. For specific number of risk factors is required to be identified.

## Ownership and Capital Structure

### 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 |
| --- | --- | --- | --- |
| This is an LLC with no issued units. |  |  |  |

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

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

None.

INSTRUCTION IN QUESTION 24. Name the creditor, amount owed, interest rate, maturity date, and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| No exempt offerings. |  |  |  |  |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(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 (4) any immediate family member of any of the foregoing persons.

☐ Yes
☑ No

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

Beneficial ownership for purposes of paragraph (2) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same calculation described in Question 8 of the Questions and Answer format.

The term 'number of the funds' includes any child, dependant, grandchild, parent, acquaint, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes adoptive relationships. The term 'spreaded operation' means a retribution accepting a relationship generally equivalent to that of a spouse.

Compare the amount of a related party's interest in any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to raise the approximate amount of the interest, also how the approximate amount involved in the transaction.

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☐ Yes
☑ No

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

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

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

#### Overview

Introducing autonomous crypto trading between peers. Never trust anyone with your crypto ever again.

I've been interested in and have researched digital currencies and blockchain technologies for many years. When cryptocurrencies emerged I recognized that blockchain technology would be the ideal platform for the implementation of my currency exchange innovation, we now call Swopblock.

Swopblock is developing decentralized crypto software that enables users to securely trade cryptos in realtime.

Swopblock will become the standard for autonomous cross-blockchain exchange. We see developers understanding the Swopblock protocol potential and joining us in attempting to integrate all cryptos onto the Swopblock Network.

#### Milestones

Swopblock LLC was organized in the State of Pennsylvania in March 2021. All patents are owned by Swopblock LLC.

Since then, we have:

- Self-custodial crypto trading powered by 100% distributed liquidity
- Positioned to disrupt a U.S. Market of $7.8 billion / U.S. Market CAGR 28.3%
- Over 18 million $SWOBL (cryptos) have been certified for over 700 investors
- We raised over $600k from crowdfunding on Wefunder in 2022
- Patent pending on our Consensus Mechanism and Liquidity Stream
- Planning to launch Swopblock beta by end of 2023, 1.0 by end of 2024

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

#### Historical Results of Operations

Our company was organized in March 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

- **Between & Green Margin.** For the period ended December 31, 2022, the Company had revenues of $0 compared to the year ended December 31, 2021, when the Company had revenues of $0. Our gross margin was 1% in fiscal year 2022, compared to 1% in 2021.
- **Assets.** As of December 31, 2022, the Company had total assets of $77,634, including $40,926 in cash. As of December 31, 2021, the Company had $0 in total assets, including $0 in cash.
- **Net Loss.** The Company has had net losses of $53,509 and net income of $0 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
- **Liabilities.** The Company's liabilities totaled $141,367 for the fiscal year ended December 31, 2022 and $0 for the fiscal year ended December 31, 2021.

#### Liquidity & Capital Resources

To-date, the Company has been financed with $592,595 in SAREs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 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 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Swopblock LLC cash in hand is $13,000, as of December 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $40,000/month, for an average burn rate of $40,000 per month. Our intent is to be profitable in 24 months.

Since the date of our financials, we attended 2 conferences which put a bump in our spending. Otherwise, we have a monthly payroll of about $38K that has run since early this year.

Our expenses are driven by funding as we are in a software development cycle that will last for about $10M. Our current expenses run about $40k per month. It will take $10M in software development to become revenue-generating. I expect to reach that point with a $10M 24-month investment in software development.

We expect to need to raise a total of $10M in order to eventually reach profitability in 2-3 years, but it really depends on a number of variables.

Outside of the funds raised in this Wefunder offering, we can rely on the founders bootstrapping to an extent.

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

INSTRUCTIONS TO QUESTION 29: The discussion must cover each year for which financial statements are provided. For issuers with no gross operating history, the discussion should focus on financial milestones and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether historical results and cash flows are representative of what business trends expect in the future. This has no cover the proceeds of this offering and any other known or pending sources of capital. This not true the proceeds from the offering will affect liquidity, whether involving these funds and any other additional funds is necessary to the inability of the business, and how quickly the issuer anticipates using its available cash. However the other available sources of capital in the business, such as those of credit or required contributions by shareholders. References to the issuer in this Question 29 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

29. Include financial statements covering the two most recently completed fiscal years or the

www.law.law.com

Refer to Appendix C, Financial Statements

1. Jeff Hilde, certify that

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

## OTHER MATERIAL INFORMATION

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

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

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

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

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

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

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

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

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

INSTRUCTIONS TO QUESTION 31: If information is presented to investors in a format, media or other means available to be reflected in text or possible document format, the issuer should include:

(a) a description of the material content of each information;
(b) a description of the format in which such disclosure is presented; and
(c) in the case of disclosure in token, order or other dynamic media or format, a transcript or description of such disclosure.

## ONGOING REPORTING

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

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

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

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

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 15(d);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(6), including any payment in full of debt securities or any complete redemption of redeemable securities, or the issuer liquidates or dissolves in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Austin Hilde

Austin Hilde

Jeff Hilde

Jeff Hilde

Appendix E: Supporting Documents

Scanned_Swopblock_Operating_Agreement.pdf

## Signatures

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

The following documents will be filed with the SEC.

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird

Early Bird SAFE (Simple Agreement for Future Equity)

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Austin Hilde

Austin Hilde

Jeff Hilde

Jeff Hilde

Appendix E: Supporting Documents

Scanned_Swopblock_Operating_Agreement.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 an Annual Report and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.*

Swopblock LLC

By

Jeff Hilde

CEO / Inventor & Founder

*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 Annual Report and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.*

Austin Hilde

CCO / Communications

1/13/2023

Jeff Hilde

CEO / Inventor & Founder

1/13/2023

*The Annual Report 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 Annual Report 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 Annual Report 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`

# SWOPBLOCK
2022 Report

## *Dear investors,*

A huge thank you to our investors who understand the key problem currently gripping the crypto market and who have long-lift the need for Swopblock's exchange solution. Our mission is to give the power of crypto back to the people. We want to extend Satoshi's original vision of a peer-to-peer electronic cash system by offering autonomous crypto trading between peers. We are committed to bring you SWOBL (Swopblock's medium of exchange) which empowers you to now own your trade: finally eliminating the middle-man.

### **We need your help!**

Wefunder supporters can continue to invest generously and engage frequently as we crowdfund for our 2023-2024 operating budget of $4.4mil on Wefunder. We hope investors will continue to stay involved as we develop Swopblock's software and make it available in beta form for supporters to download, give feedback, report bugs and suggest new features. Ultimately we'll need our investors to claim their crypto and help us test the world's first self-custodial crypto trading app.

*Sincerely,*

## **Our Mission**

Swopblock will become the standard for autonomous cross-blockchain exchange. We see developers understanding the Swopblock protocol potential and joining us in attempting to integrate all cryptos onto the Swopblock Network.

See our full profile

## **How did we do this year?**

*Report Card*

## The Good

SACBIL, genesis was surveyed and recorded and 205 certificates of RUSIL500 SACBIL, were sent out to investors.

Patent application for Swopblock's exchange proband was written, illustrated and was filed on December 27th.

Software simulation hosted for developer download, found key Swopblock team members, and updated Swopblock's white paper.

## The Bad

Issued only $492,595 of our $1,079M crowdfunding goal.

A late 2022 crowdfunding start due to mismanaged expectations.

A marketing strategy restart honed by tweaking insights while rewarding current crypto market trends.

## 2022 At a Glance

January 1 to December 31

**$0**
Revenue

**-$54,944**
Net Loss

**$5,051**
Short Term Debt

**$592,595**
Reused in 2022

**$346**
Cash on Hand
As of 01/12/23

## We Our 948 Investors

### Thank You For Believing In Us

| Craig J. Van Lalle | Joshua Liguori | By Shivaji | Esther Fenton | Jan La Velle | Jeff Schwalker | Joseph Graffetta |
| --- | --- | --- | --- | --- | --- | --- |
| Nathan Mowry | Donny Mather | Connie David | Monica Kourianathan | Mike Wright | Thomas Joseph Langer | Herman G. Grath |
| La Manna Wayne Peters | Jerry Dalton | Christine Mowry | Jennie Mates | Chris McClelland | Stanley Kourianathan | Jean Buehler |
| Fred England | David Schmitt | Tom Lippincott | Tim Kaye | Wesley Brockins | Na Shane Gassner | Christopher Gamble |
| Teresa Kothari | Bradley M. Jones | Anton Chakraborty | Richard Payne | Mike Ford | William Elton | James Cowen |
| Andrew Cooper | La Manna Wayne Peters | Nicky Sarkar | Jean Jannell | Jennifer Cooper | Walter Fater | Henry Savage |
| Toby Gadsman | Clara Kempworth | Shane Inland | Matt Neill | Jean Kramer | Michael Kippa | Justin Schaefer |
| John Eric Yates | David Bissahunter | Barney M. Kozak | Gloria Kramer | Susan Faglan | Jean Jannell | Craig Vanniger |
| Christine Goss | Henry M. Priton | Peter Sallaguna | Jeff Sallaguna | Thomas Kuhakaym | Lynne Kiefer | Elizabeth S. Marquet |
| Jake Burds | Bradford | Barbara N. Kuehling, M. | John Larkin | Brian Blevins | Anthony M. Goss | Monika Kaplan |
| Jonathan Moll | Victor Jones | Harold Kagan Saberi | Chris and Chandra Procer | Karen E. Mace | Monika Lujos | Matthias Mowry |
| James Burds Jr. | Robert Barrett | David Breen | Barbara Kellway | Chris and Chandra Procer | Jerry Cindy Young | Denise Loma |
| Wes Kessler | Robert Buehling | Paul M. Kessler | Richard Buehling | Mike Ford | Andrew Washington | Denise Buehling |
| Shane Wilson | Harold Kagan Saberi | Leonard Wong | Jayne Kramer | Mark Wright | Zhemour Mose | Harold HIGGINS |
| Joshua Kuntz | Lee Kuntz | Bradford Kuntz | Keith Thompson | Jayne Kuntz | John Don Snyder | Juan Edward M. LUJAR |
| Mark Perlmutter | Jean Jannell | Keith S. Kuntz | Bobby Vives Robinson | Jordan Hopplington | Luke Bowman Connolly | Sylvonne Kagan |
| Joe Kuntz | Mike Kuntz | Jillian Kuntz | Linda Kuntz | Jordan Hopplington | Mike Kuntz | Margaret Kessler |
| Harold Kagan Saberi | Joshua M. Kuntz | Henry J. K. | Richard Payne | Beverly Pocockwell | Thomas Kuntz | David Marquet |
| Kimberly May Young | Barney M. Kuntz | La Manna Wayne Peters | Chris and Chandra Procer | Jordan Hopplington | Bobby Dunn Robinson | Denise Buehling |
| Addis Hennett | Barney M. Kuntz | Kimberly May Young | Jayne Kuntz | Zhemour Mose | Lee Kuntz | Beverly Pocockwell |
| Mark Perlmutter | Jean Edward WILLIAMS | Joe Kuntz | David Kagan | Jean Kuntz | Richard Brown | Brina Tannarama-Priton |
| Billie Simeon | Terence Smith II | James Kuntz | Terence McDonald | Jordan Hopplington | Leonard Wong | Keith S. Kuntz |
| Adrian Kuntz | Wesley Kuntz | Michael Kuntz | Henry Luth | Richard Payne | Mike Kuntz | Anthony M. Goss |
| Keith Thompson | Luke Bowman Connolly | Harold Kuntz | Mark Wright | Harold Kuntz | Joshua M. Kuntz | Wesley Kuntz |
| Olye Kidd | Kenneth Kagan | Harold Kuntz | Barney M. Kuntz | Anthony May Young | Kim Hensh | Nicky Sarkar |
| Richard Kuntz | Keith Thompson | Harold Kuntz | Harold Kuntz | Keith Thompson | Anthony May Young | Barney M. Kuntz |
| Barney M. Kuntz | Jeff Schmalz | David Shum | Harold Kuntz | Richard Payne | Debra Parker | Ernie Lammert |
| Keith Schmalz | John Eric Yates | Harold Kuntz | Mark Wright | David Schmalz | Mike Kuntz | Shane Lujos |
| Matthias Mose | Chris Kessler | Martin Kuntz | Mike Kuntz | Eric M. Kuntz | David Kuntz | Mike Kuntz |
| Sean Kuntz | Shane Kuntz | David Kuntz | David Kuntz | Shane Kuntz | Jeff Kuntz | Mike Kuntz |
| Denise Kuntz | Elise Kuntz | David Kuntz | David Kuntz | John Kuntz | Paul Chakraborty | Denise Kuntz |
| Alison Kuntz | Elise Kuntz | David Kuntz | David Kuntz | John Kuntz | Paul Chakraborty | John Kuntz |
| Marvin Kuntz | Elise Kuntz | David Kuntz | David Kuntz | John Kuntz | Paul Chakraborty | John Kuntz |
| Alison Kuntz | Elise Kuntz | David Kuntz | David Kuntz | John Kuntz | Paul Chakraborty | John Kuntz |
| Alison Kuntz | Elise Kuntz | David Kuntz | David Kuntz | John Kuntz | Paul Chakraborty | John Kuntz |

| Judith Cody, Edwina | Wendy Susan Dingle | Peter Southworth | Adam Bogenheim | Richard Doma | Don Thins | William Lang |
| --- | --- | --- | --- | --- | --- | --- |
| Paul Doma | Brendan Wood | Isabelle & SASSINHALLI | Christine H. Cargent | James Hampel | James Hance | Claudia Doherty |
| David Churchill | Jasualit Doherty | Michael Lee | John Doman | Myrmannie Bair | David Ruckman | Scott Gossman |
| Christopher Miller | Steve CAMACHO | Steven Dolemiller | Annie E. Rose | Jessie Stewart | Frank Paul | Michael Borden |
| Yaris D'Urquere | Stephen R. Harris | Jon S. Smith | Jeff S. Smith | Ted S. SMITH | Jay Day | Randy Hamilton |
| Wilfred Callaway | Tom H. H. H. | Steven S. Smith | Clinton Jackson | Brad Kelle | Patrick Jones | Justin Dunn |
| Jeff J. J. J. | Terry J. J. J. | Robert S. Smith | Jonathan D. D. | Don J. J. J. | John M. Johnson | Jessica Cadame |
| Richard D. D. | Raymond K. Moore | Robert Henry, GOODMAN | Patricia F. F. F. | David C. D. | Matthew Christensen | David D. D. |
| Jerry J. J. J. | Alexandra H. J. J. | Peter Jones | Kimberly J. J. | George J. J. J. | Michael J. J. J. | Katee J. J. J. |
| Brian J. J. J. | Virginia & Maria H. J. J. | Javier Carter, D. D. | Keith L. L. L. | Ron Hyatt | Robert H. J. J. | Joseph J. J. J. |
| David Johnson | Justin D. D. | William D. D. | Keith L. L. L. | William D. D. | William D. D. | Tommy Johnson |
| Don Johnson | J. J. J. J. | James T. J. J. | Thomas J. J. J. | George J. J. J. | Michael J. J. J. | James T. J. J. J. |
| William J. B. B. B. B. | Mary L. B. B. B. | John B. B. B. | Mary W. B. B. B. | David C. D. | Tom H. J. J. | David C. D. |
| William D. D. | Richard Campbell | James D. D. | Tony B. B. B. | Edward J. D. | Tom H. J. J. | David C. D. |
| William D. D. | Robert F. F. F. | Jeff H. F. F. | Kenneth D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| John D. D. | Jeffrey H. F. F. | Adrienne D. D. | Laura D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Joe D. D. | J. D. D. | Carl D. D. | Thomas D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Donna J. D. | Michael J. D. | Rodney D. D. | Dana L. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Adelaide A. D. | Frank D. D. | Robert F. F. F. | Robert F. F. F. | Edward J. D. | Tom H. J. J. | David C. D. |
| Adrienne D. D. | John F. F. F. | David D. D. | Paul D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Adrienne D. D. | Michael J. D. | David D. D. | Paul D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Tommy D. D. | Jeff H. F. F. | Joseph M. F. F. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Sam D. D. | David D. D. | David D. D. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| David F. D. | Christine F. F. F. | David D. D. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| David F. D. | Sam D. D. | David D. D. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Edward F. D. | Tom H. J. J. | David D. D. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Edward F. D. | Tom H. J. J. | David D. D. | William D. D. | Edward J. D. | Tom H. J. J. | David C. D. |
| Edward F. D. | Tom H. J. J. | David D. D. |  |  |  |  |

## Thank You!

From the Swopblock Team

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

Jeff Hilde
CEO / Inventor & Founder

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

Austin Hilde
CCO / Communications

## Details

### The Board of Directors

| DIRECTOR | OCCUPATION | ANNEX |
| --- | --- | --- |
| Jeff Hilde | Engineer @ Swopblock | 2021 |
| Austin Hilde | Communications @ Swopblock | 2021 |

### Officers

| OFFICER | TITLE | ANNEX |
| --- | --- | --- |
| Jeff Hilde | Founder & Inventor | 2021 |
| Austin Hilde | Chief Creative Officer, Communications | 2021 |

Voting Power

| MAILER | SECURITIES HELD | WITHIN FURTHER |
| --- | --- | --- |
| Austin Hilde | Membership Interests | $0.0% |
| Jeff Hilde | Membership Interests | $0.0% |

# **Past Equity Fundraises**

| DATE | AMOUNT | SECURITY | EXEMPTION |
| --- | --- | --- | --- |
| 08/2022 | $592,595 |  | 4(c)(6) |

The use of proceeds is in fixed general operations.

# **Outstanding Debts**

None.

# **Related Party Transactions**

None.

# **Capital Structure**

| CLASS BY SECURITY | SECURITIES (OR AMOUNT) AUTHORIZED | SECURITIES (OR AMOUNT) OUTSTANDING | VOTING INSURE |
| --- | --- | --- | --- |

SECURITIES RESERVED FOR
INSURANCE UPON EXERCISE OR CONVERSION

| Warrants: | 0 |
| --- | --- |
| Options: | 0 |

# **Risks**

The company may be adversely affected by Internet regulations that restrict or prohibit its business or customer communication activity.

Our future success depends on the efforts of a small development team. The loss of services of the members of the development team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining personnel we require to successfully code, build, test and deploy our software.

The company may face user community rejection and abandonment of our software due to many of different types of failures in software promotion, development, deployment and function.

The company may be adversely affected by a disrupted competitor using strategies that seek to void our efforts to promote, develop and deploy our software.

The company may be adversely affected by intellectual property that may exist that would restrict or prohibit some aspect of its business or customer activity.

The company may be adversely affected by app store restrictions that limit or prohibit customer access to the company software apps.

The company may be adversely affected by cryptographic regulations that restrict or prohibit its use of necessary software development tools and source code.

Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.

The company may be adversely affected by money transmitter regulations or other government regulations that restrict or prohibit its customer transaction activity.

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

# **Description of Securities for Prior Reg CF Raise**

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 unitholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated investors to the Investor, and create pressure on the Investor to sell its securities to the Company concurrently.

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 to manage the Company so as to maximize value for unitholders. 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. If the Management 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 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 tie 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 unitholders. 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 its have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

#### Minority Ownership

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 Management, and the investor will have no independent right to name or remove an officer or member of the Management 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.

#### Exercise of Rights Held by Principal Shareholders

As holders of a majority-in-interest of voting rights in the Company, the unitholders 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 unitholders may change the terms of the operating agreement 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 unitholders 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 unitholders have the right to redeem their securities at any time. Unitholders 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, SAPES, 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 units, an investor's interest will typically also be diluted.

#### Restrictions on Transfer

The securities offered via Regulation Crowdfunding 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.

- to the issuer;
- to an accredited investor(1);
- as part of an offering registered with the U.S. Securities and Exchange Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

#### Valuation Methodology for Prior Reg CF Raise

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 base value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

The initial amount invested in a SAPE is determined by the investor, and we do not guarantee that the SAPE will be converted into any particular number of units. As discussed in Question 12, when we engage in an offering of equity interests involving Preferred Units, investors may receive a number of Preferred Units calculated as either (i) the total value of the investor's investment, divided by the price of the Preferred Unit being issued to new investors, or (ii) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company's capitalization at that time. Because there will likely be no public market for our securities prior to an initial public offering or similar liquidity event, the price of the Preferred Units that investors will receive, and/or the total value of the Company's capitalization, will be determined by our management. Among the factors we may consider in determining the price of Preferred Units are prevailing market conditions, our financial information, market valuations of other companies that we believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant. In the future, we will perform valuations of our units that take into account, as applicable, factors such as the following:

- unrelated third party valuations;
- the price at which we sell other securities in light of the relative rights, preferences and privileges of those securities;
- our results of operations, financial position and capital resources;
- current business conditions and projections;
- the marketability or lack thereof of the securities;
- the hiring of key personnel and the experience of our management;
- the introduction of new products;
- the risk inherent in the development and expansion of our products;
- our stage of development and material risks related to our business;

- the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
- industry trends and competitive environment;
- trends in consumer spending, including consumer confidence;
- overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
- the general economic outlook.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will share similar characteristics and that the Company's value will correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

# Company

Swopblock LLC

- Pennsylvania Limited Liability Company
- Organized March 2021
- 2 employees

1684 Henrietta Mountain Rd
Martinsburg PA 16662

https://swopblock.org

# Business Description

Refer to the Swopblock profile.

# EDGAR Filing

The Securities and Exchange Commission hosts the official version of this annual report on their EDGAR web site. It looks like it was built in 1989.

# Compliance with Prior Annual Reports

Swopblock is current with all reporting requirements under Rule 202 of Regulation Crowdfunding.

# All prior investor updates

You can refer to the company's updates page to view all updates to date. Updates are for investors only and will require you to log in to the Wefunder account used to make the investment.

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

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

■ PITCH VIDEO ■ INVESTOR PANEL

INVEST IN SWOPBLOCK

Share

Introducing autonomous crypto trading between peers. Never trust anyone with your crypto ever again.

swopblock.org

Martinsburg PA

Technology

Marketplace

Fintech & Finance

SaaS

Blockchain & Web3

OVERVIEW UPDATES WHAT PEOPLE SAY ASK A QUESTION

## Highlights

1

❤ Self-custodial crypto trading powered by 100% distributed liquidity

2 ✱ Positioned to disrupt a U.S. Market of $7.8 billion / U.S. Market CAGR 28.3%
3 🚀 Over 18 million $SWOBL (crypto) have been certified for over 700 investors
4 💶 We raised over $600k from crowdfunding on Wefunder in 2022
5 📍 Patent pending on our Consensus Mechanism and Liquidity Stream
6 🇺🇸 Planning to launch Swopblock beta by end of 2023, 1.0 by end of 2024

## Our Team

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

### Jeff Hilde CEO / Inventor & Founder

Jeff is an accomplished Research Engineer (sole inventor on 11 patents) who has led the research development of AI innovations for lidar sensor technologies providing breakthroughs in capabilities to locate & identify mobile vehicles on land and sea.

I've been interested in and have researched digital currencies and blockchain technologies for many years. When cryptocurrencies emerged I recognized that blockchain technology would be the ideal platform for the implementation of my currency exchange innovation, we now call Swopblock.

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

### Austin Hilde CCO / Communications[{"box_2d": [187, 788, 925, 840], "label": "text", "caption": "While at Amazon's global ad agency Austin lead the launch of new technologies such as Alexa, Echo, Echo Show, FireTV, and more. Throughout his career he has worked with several Fortune 500 companies including Nike and Microsoft."

# Our Pitch

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

# THE PROBLEM

Not your keys.
Not your crypto.
Not your trade.

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

Central exchange trading apps cannot and do not allow you to keep custody of your crypto keys while trading, meaning you have to give up your assets to them. As a result, billions have gone missing (FTX case and point). Because these exchanges have custody of your crypto key, you're at risk of losing it all.

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

## Beware of the Liquidity Pools.

Decentralized exchanges try to solve this problem by using Liquidity Pools.

Liquidity Pools distribute tokens only, piling up the actual cash under the custody of the pool owners, making them incredibly vulnerable and tempting targets for attackers.

Unfortunately this means ownership is again distributed by trust only, not by actual custody of crypto keys.

THE SOLUTION

# Float up the Liquidity Stream.

Self-custodial crypto trading powered by 100% distributed liquidity.

Swopblock is a protocol solution that allows people to keep custody of their crypto keys, even while trading. And distributes liquidity across all users wallets, which means there no tempting pile of cash for hackers to target.

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

## Your keys. Your crypto. Your trade.

Swopblock's Liquidity Stream flows between peers. Now you can bring your own liquidity to your trade. No more middlemen.

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

## Any blockchain can join our Liquidity Stream.

The Swopblock protocol is powered by SWOBL (Swopblock's crypto), which acts as a liquidity adaptor for blockchains such as ETH, BTC, and more - meaning Swopblock's Liquidity Stream is 100% distributed to SWOBL owners.

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

EXCLUSIVE TECH

## Introducing the Liquidity Stream.

Swopblock's exclusive Liquidity Stream technology is a protocol powered by 100% distributed liquidity (SWOBL), utilizing it as a free flowing medium of exchange that provides the market volume equilibrium necessary for autonomous cross-blockchain trading between peers.

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

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

## Fast.
Trade cryptos live.

SWOBL liquifies cryptos for fast cross-blockchain exchange. SWOBL is the liquidity that powers trading volume equilibrium and immediately price locks crypto assets into the flow of the Liquidity Stream enabling live trading between cryptos (flow is the market volume of SWOBL trading within the Swopblock protocol).

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

Bring your own liquidity to your trade, without it leaving the safety of your wallet.

## Secure.
Own your trade.

The SWOBL cash in your wallet is the liquidity needed for trading. In fact 100% of the liquidity used by the Liquidity Stream is distributed in this way, secured across all user's wallets. Using the SWOBL cash already in your wallet means you safely bring your own liquidity to your trade, making you your own middleman.

## Universal.
Bring any crypto.

Swopblock's consensus mechanism proof-of-relay combines proof-of-stake and proof-of-work to relay crypto blocks into a Swopblock, a super block that contains all relay blocks. This enables the sequencing of any kind of blockchain block (BTC, ETH, etc.) into a common consensus for live crypto trading.

# MARKET OPPORTUNITY

## 28.3%

U.S. Market CAGR
2022 - 2030

## $7.8 billion

U.S. Market Size
2021

U.S. Crypto Exchange Platform Market
size, by crypto type, 2021 - 2030 (USD Billion)

Source: Grand View Research

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

### Global Market

The global cryptocurrency exchange platform market size was valued at USD 30.18 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 27.8% from 2022 to 2030.

### Top Crypto Exchanges

Source: Coin Market Cap

| Name | Volume (24hr) | Avg. Liquidity | No. Markets |
| --- | --- | --- | --- |
| Binance | $14.2B | 878 | 1691 |
| Coinbase | $1.8B | 760 | 595 |
| Kraken | $0.7B | 759 | 713 |

REVENUE MODEL

# Three streams of revenue.

## Freemium Software

The freemium model of software licensing of Swopblock score validation node software will be free to most people but will generate software license revenue for those node operators that want the benefits of premium features.

#1

## Transaction Fees & Royalties

Licensed nodes will profit from a transaction fee-net-reward income that is structured like the merchant fee-net-cashback model of the major credit card companies and a Swopblock royalty will be charged against these fees.

#2

## SWOBL Crypto Appreciation

SWOBL is the medium of exchange within the Swopblock protocol. As trading demand increases SWOBL's value will follow. Investors, traders, and holders of SWOBL (including Swopblock) will be able to capitalize on these gains.

#3

PERKS

# Invest in Swopblock.
Get crypto as a Perk.

The Swopblock protocol is powered by 52.8 million SWOBL (Swopblock's crypto) and we are giving early investors a portion of this SWOBL as a Perk according to your investment size.

INVEST $100

- Get 100 $SWOBL

INVEST $1,000

- Get 1,250 $SWOBL

+ Plus First 100 investors are entered to WIN a bonus 100,000 $SWOBL
+ Plus the lower level perks, equaling 1,350 $SWOBL

INVEST $10,000

- Get 15,000 $SWOBL

+ Plus 1 hour group Q&A meeting with Swopblock Founder & Inventor
+ Plus the lower level perks, equaling 16,350 $SWOBL

INVEST $100,000

- Get 175,000 $SWOBL

+ Plus 1 hour 1 on 1 Q&A meeting with Swopblock Founder & Inventor
+ Plus the lower level perks, equaling 191,350 $SWOBL

THE ULTIMATE PERK

# WIN
100,000
crypto

First 100 investors are entered to win!

SWOBL, Swopblock's crypto, powers our exchange protocol.
Invest $1,000 or more to be entered to win.

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

Own Swopblock's SWOBL. Own the power of trade.

# FINANCIALS

# Swopblock
Income Budget

2023 - 2024 (4.4 mil)

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

# 30%
Software Dev

Developer sponsorship
Hardware and Software tools
Network testing
Feature grants
Security audits
Debugging bounties

# 30%
Marketing

Brand planning/strategy
Website, PR, and social
Content development
Media planning/purchasing

# 25%
App Design

Research
UX Design
Development
Beta release

# 7.5%
Wefunder

Crowdfunding fee

# 6.25%
Crypto

BIT initial purchase
ETH initial purchase

# 1.25%
Startup

Patent fees
Legal fees
Operational costs

# FUNDING GOAL

$4.4 million

2 year expense budget

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

2023 budget breakdown (1.4mil)

App Design $485k

Research $45k
UX Design $105k
Developement $210k
Beta testing & release $125k

Software Dev $526k

Developer sponsorship $220k
Hardware and software tools $52k
Network testing $34k
Feature grants $140k
Debugging bounties $80k

Marketing $420k

Brand planning/strategy $70k
Website, PR, and social $95k

Other Exp $192.5k

Crypto $70k

Content development
Media planning/purchasing

$125k
$140k

Wefunder
Startup

$105k
$17.5k

Forward looking projections cannot be guaranteed.

Forward looking projections cannot be guaranteed.

# TRACTION

# 2022

# TEAM

Found key team members
such as a Financial Director,
and Lead Programers.

# SIMULATION

Github simulation hosted
for developer download.

# PATENT

Filing patent for our Proof or
Relay Consensus Mechanism
and our Liquidity Stream
Execution Mechanism.

# WHITE PAPER

White paper detailing our Proof
or Relay Consensus Mechanism
and our Liquidity Stream
Execution Mechanism.

# CRYPTO CERTIFICATES

18,851,900 SWOBL certificates
have been documented and
sent out to investors.

# 2023

SWOPBLOCK LIVE

USER INTERFACE

BETA LAUNCH

A web-based demo app live for investors and developers to check out.

UX and features complete and ready to plug into Swopblock's engine.

Swopblock APP launch for developers on the Microsoft, Apple, and Google app stores.

Forward looking projections cannot be guaranteed.

Forward looking projections cannot be guaranteed.

# LEADERSHIP

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

## JEFF / Inventor & Founder

Jeff is an accomplished Research Engineer who has led the research development of artificial intelligence innovation for the Office of Naval Research providing advances and breakthroughs in the navy's capability to locate and identify mobile targets with visible, infrared, radar, and laser video sensors. Invention has been the backbone of his career. Receiving over 10 patents to date, he continues to invent in new industries bringing that same breakthrough thinking to new complex problems.

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

## AUSTIN / Communications

While at Amazon's global ad agency Austin lead the development of breakthrough ideas that have launched new technologies such as Alexa, Echo, Echo Show, FireTV, and more. Most recently he has reinvented Amazon's creative approach to event marketing, delivering real results that have increased customer brand recall and purchase intent. Throughout his career he has worked with several Fortune 500 companies including Nike and Microsoft.

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

In 2022 our team has grown 150%.

---

**Swopblock's mission**  
is to give the power of  
crypto back to the people,  
extending crypto's  
original promise of a  
decentralized currency by  
offering a decentralized  
means of exchange.

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

## Downloads

Swopblock Whitepaper 2023.pdf

Swopblock Pitch Deck 2023.pdf

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

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

**Swopblock, LLC.** (the “Company”) a Pennsylvania Limited Liability Corporation

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

Short Year ended December 31, 2021

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

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

Swopblock, LLC.

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

### Management’s Responsibility for the Financial Statements

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

### Accountant’s Responsibility

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

### Accountant’s Conclusion

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

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | Short Year Ended December 31, 2021 |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Cash and Cash Equivalents | 40,926 |
| Payroll Security Deposit | 35,273 |
| Total Current Assets | 76,199 |
| TOTAL ASSETS | 76,199 |
| LIABILITIES AND EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Related Party Payable | 5,051 |
| Total Current Liabilities | 5,051 |
| Long-term Liabilities |  |
| Safe Agreements (Future Equity Obligations) | 136,316 |
| Total Long-Term Liabilities | 136,316 |
| TOTAL LIABILITIES | 141,367 |
| EQUITY |  |
| Accumulated Deficit | (65,168) |
| Total Equity | (65,168) |
| TOTAL LIABILITIES AND EQUITY | 76,199 |

# **Statement of Operations**

|  | Short Year Ended December 31, 2021 |
| --- | --- |
| Revenue | - |
| Cost of Revenue |  |
| Gross Profit | - |
| Operating Expenses |  |
| General and Administrative | 9,080 |
| Owner Guaranteed Payments | 45,864 |
| Total Operating Expenses | 54,944 |
| Net Income (loss) | (54,944) |

# **Statement of Cash Flows**

|  | Short Year Ended December 31, 2021 |
| --- | --- |
| OPERATING ACTIVITIES |  |
| Net Income (Loss) | (54,944) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |
| Payroll Security Deposit | (35,273) |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | (35,273) |
| Net Cash provided by (used in) Operating Activities | (90,217) |
| FINANCING ACTIVITIES |  |
| Proceeds from SAFE Notes, |  |
| Net of $10k in financing costs | 126,092 |
| Related Party Advances | 5,051 |
| Net Cash provided by (used in) Financing Activities | 131,143 |
| Cash at the beginning of period | - |
| Net Cash increase (decrease) for period | 40,926 |
| Cash at end of period | 40,926 |

# **Statement of Changes in Member Equity**

|  | Member Capital |  |  |
| --- | --- | --- | --- |
|  | $ Amount | Accumulated Deficit | Total Member Equity |
| Beginning Balance 3/4/21 (inception) | - | - | - |
| Financing Costs | - | (10,224) | (10,224) |
| Net Income (Loss) | - | (54,944) | (54,944) |
| Ending Balance 12/31/2021 | - | (65,168) | (65,168) |

# Swopblock, LLC

# Notes to the Unaudited Financial Statements

# December 31st, 2021

# $USD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

Swopblock, LLC. (“the Company”) is formed on March 4, 2021 under the laws of the State of Pennsylvania. The primary activities of the Company are to discover and exploit cryptocurrency blockchain technology by the research, development and licensing of software. Such primary activities shall be devoted to the primary purpose of the Company. Such primary purpose of the Company is to establish a cryptocurrency network that transacts across blockchains, is counterparty secure, and excludes the parties of cryptocurrency exchange and their security vulnerabilities.

The Company will continue an equity crowdfunding offering during 2022 for the purposes of raising operating capital.

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of Presentation

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

# Use of Estimates and Assumptions

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

# Cash and Cash Equivalents

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

# Fair Value of Financial Instruments

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

These tiers include:

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

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

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

# Concentrations of Credit Risks

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit

worthiness. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

#### Revenue Recognition

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

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize Revenue When or As Performance Obligations Are Satisfied

The Company will identify and analyze its performance obligations with respect to customer contracts once the first contract is signed.

#### Recent accounting pronouncements

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

### **NOTE 3 - RELATED PARTY TRANSACTIONS**

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

During the year ended December 31st, 2021, the Company paid Guaranteed Payments in the amount of $45,864 to members of the company.

During the year ended December 31st, 2021, the Company received an advance in the amount of $5,050 from a member of the company. The balance is non-interest bearing and due on demand.

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

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

### **NOTE 5 - DEBT**

Simple Agreements for Future Equity (SAFE) -During the period ending December 31, 2021, the Company entered into a SAFE agreement (Simple Agreement for Future Equity) with third parties. The SAFE agreements have no maturity date and bear no interest. The agreements provide the right of the investor to future equity in the Company during a qualified financing or change of control event at an 87.5% discount. Each agreement is subject to a valuation cap. The valuation caps of the agreements entered were $2.5M.

### **NOTE 6 - EQUITY**

The Company is a multi-member LLC with a single class of ownership interest. Profits and losses are allocated to members in accordance with the operating agreement.

## **NOTE 7 - SUBSEQUENT EVENTS**

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through March 2, 2022, the date these financial statements were available to be issued.

Simple Agreements for Future Equity (SAFE) - On January 21, 2022, the Company entered into multiple SAFE agreement (Simple Agreement for Future Equity) totaling approximately $336k with third parties. The SAFE agreements have no maturity date and bear no interest. The agreements provide the right of the investor to future equity in the Company during a qualified financing or change of control event at an 87.5% and 100% discount. Each agreement is subject to a valuation cap. The valuation caps of the agreements entered were $2.5M and $3.5M respectively.

## **NOTE 8 - GOING CONCERN**

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity has not commenced principal operations and will likely realize losses for an unknown period of time. Management has evaluated these conditions and believes it has raised sufficient capital via the proceeds from SAFE notes to fund operations for the 12 months following the financials statements being available for issue.

## **NOTE 9 - RISKS AND UNCERTAINTIES**

### ***COVID-19***

The spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions.

The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses remains unclear currently. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods. Note: this disclosure assumes there is no significant doubt about the entity's ability to continue as a going concern.

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

7/22/2021

Austin Hilde | LinkedIn

$167,800 Avg. Salary* - An Online MBA Straight From The Nations Tech Capital.

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

Austin Hilde · 3rd

We're launching Swopblock!

Seattle, Washington, United States ·

Contact info

423 connections

Connect

Message

More

Swopblock

Art Center College of Design

Experience

Communications

Swopblock · Self-employed

Jul 2020 - Present · 1 yr 1 mo

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

Swopblock.org

Director / Creative Director

Amazon

Jul 2016 - Jul 2020 · 4 yrs 1 mo

Greater Seattle Area

Art Director

Freelance

Mar 2013 - Jul 2016 · 3 yrs 5 mos

https://www.linkedin.com/in/babyloaf/

1/3

7/22/2021

Austin Hilde | LinkedIn

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

AustinHilde.com

AKQA

Art Director

AKQA

Feb 2015 - Oct 2015 · 9 mos

Portland, Oregon

Nike

Art Director

WONGDOODY

Oct 2013 - Jan 2015 · 1 yr 4 mos

Greater Seattle Area

Amazon and Papa Murphy's

Show 3 more experiences

Education

Art Center College of Design

Bachelor of Arts (BA), Advertising

2004 - 2007

Cerro Coso Community College

Sound Design

2002 - 2004

https://www.linkedin.com/in/babyloaf/

2/3

7/22/2021

Austin Hilde | LinkedIn

https://www.linkedin.com/in/babyloaf/

3/3

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

7/22/2021

Jeff Hilde | LinkedIn

Easy-to-buy projects - Compare projects side by side with Project CatalogTM. Get

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

Jeff Hilde · 3rd

INVENTOR & FOUNDER at
Swopblock

Martinsburg, Pennsylvania, United States

· Contact info

6 connections

Connect

Message

More

Swopblock

Walla Walla University

Featured

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

Lil' autonomous cross-blockchain
swopblock.org

Swopblock real-time counter-party-
free crypto currency exchange.

Experience

INVENTOR & FOUNDER

https://www.linkedin.com/in/jeff-hilde-11581532/

1/3

7/22/2021

Jeff Hilde | LinkedIn

# Swopblock

Jun 2020 - Present · 1 yr 2 mos

Martinsburg, Pennsylvania, United States

Inventor of the Swopblock counter-party-secure exchange-party-free real-time crypto exchange protocol. swopblock.org

# Ai Research Scientist

Robotic Genetics, Inc.

Jun 2018 - Jun 2020 · 2 yrs 1 mo

Altoona, Pennsylvania Area

Inventor of a cryptocurrency distribution interchange for fast secure peer-to-peer cross-blockchain exchange (patent pending).

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

Jeff Hilde's Resume

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

Robotic Genetics, Inc.

# Ai Research Scientist

Office of Naval Research

Jun 1987 - Jun 2018 · 31 yrs 1 mo

Naval Air Warfare Center, China Lake, CA

Accomplished Research Scientist with successful track record of artificial intelligence innovation for Office of Naval Research including research experiments, developments, inventions and 11 patents, providing multiple breakthroughs in

# Education

# Walla Walla University

Bachelor's degree, Engineering

https://www.linkedin.com/in/jeff-hilde-11581532/

2/3

7/22/2021

Jeff Hilde | LinkedIn

https://www.linkedin.com/in/jeff-hilde-11581532/

3/3

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

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

# Your keys.
Your crypto.
Your trade.

Self-custodial crypto trading
powered by 100% distributed liquidity.

swopblock

WHITE PAPER

MORE INFO:

swopblock.org
info@swopblock.org
github.com/swopblock
@swopblock

## LIQUIDITY STREAM SPECIFICATION:
TRANSFER PROTOCOL

### ABSTRACT

The SWOBL Exchange Protocol is a protocol used for storing and transferring
SWOBL as a non-native digital cash on multiple blockchains. SWOBL is
represented by sums of unsigned integers that sum to 52,800,000 in aggregate.

Swopblock will survey and record SWOBL investment perks and implement a
sub-ledger with genesis entries that associate the perk SWOBL with one or more
cryptos at one or more native addresses of the cryptos that then can be transferred
using exchange transactions that preserve the quantity of the SWOBL perks and
preserve self-custody even while changing custody of the crypto.

### INTRODUCTION

In blockchain transaction implementations, outputs represent a quantity of
native crypto. With the SWOBL Exchange Protocol, these outputs can encapsulate a quantity of SWOBL comingled with a native crypto amount for multiple
blockchains to enable cross-blockchain exchange.

swopblock WHITE PAPER

PAGE 1

© 2023 Swopblock LLC. All rights reserved.

## APPLICATIONS

Swopblock is developing software applications that will provide an infrastructure to facilitate autonomous trade and exchange between peers.

A bank could back SWOBL by a cash reserve, then people could withdraw and deposit money in SWOBL, or use it to pay for goods and services. This would allow a system for transaction not only in SWOBL, but in any currency.

Equity could be associated with SWOBL on a new blockchain. Capital fundraising and future dividends and interest could be traded among companies by shareholders to start new companies or expand existing ones.

## OVERVIEW

Inputs using the SWOBL Exchange Protocol to store SWOBL have elements that are explicit (present in output meta-data) or implicit (not present in output meta-data), the elements as follows:

**Asset Id** is an identifying hash of a particular block in a particular blockchain.

**Asset** is an unsigned integer that represents the number of units of native blockchain crypto that are stored on Inputs

**Cash Id** is a hash of the output referenced by the first input of a Swopblock LLC launch transaction that initially issued SWOBL Cash on a particular blockchain as the blockchain genesis of SWOBL for that blockchain. There after any user will be enabled to issue by protocol onto the launched blockchain the SWOBL they own. Swopblock will retain the private key for the Cash Id to issue SWOBL but after the launch transaction the absolute power to issue SWOBL will be disabled permanently by protocol and only the power to issue that all users have by protocol will be retained in Swopblock's private key. This launch protocol will serve as a performance bond to guarantee the initial value of SWOBL on the launch blockchain. Each blockchain will have at least one Cash Id.

**Cash** is an unsigned integer that represents the number of units of SWOBL that are stored on Inputs.

**Uncirculated Cash** is an unsigned integer that represents the number of units of SWOBL that are uncirculated and are available to become circulated.

---

![Swopblock logo]() swopblock WHITE PAPER

PAGE 2

© 2023 Swopblock LLC. All rights reserved.

## OVERVIEW

*(continued)*

**Circulated Asset** is an unsigned integer that represents the number of units of native blockchain crypto that are circulated and have storage on an input.

**Cash Volume** is an unsigned integer that represents the number of units of native blockchain crypto that have been circulated or uncirculated in transfers from one input to another.

## TRANSACTIONS

Transactions relevant to the Liquidity Stream Protocol must have meta data payloads for the explicit elements of the protocol. This allows clients to recognize such transactions. Transactions can then be used to issue remaining SWOBL Cash on new blockchains, or transfer ownership of Cash and Assets.

Transactions that are not recognized as Liquidity Stream transactions are considered as having all their outputs uncirculated and all their inputs remain unchanged with respect to Cash storage.

## PAYLOADS

Outputs are either circulated and have encapsulated SWOBL and have sub elements defined, or uncirculated and have no encapsulated SWOBL and have no sub elements.

Protocol outputs can have a zero or non-zero native crypto value. Protocol outputs are circulated and contain a parsable meta data payload. If multiple valid protocol outputs exist in the same transaction, they are parsed according to output order, and the other outputs are considered as regular uncirculated outputs. If no valid protocol output exists in the transaction, all outputs are considered uncirculated.

The payload is defined by field names and descriptions as follows:

*NAME: DESCRIPTION*

**Mark:** Tag indicating transaction is a Liquidity Stream transaction.

**Version:** Major revision number of the Liquidity Stream Protocol.

---

![Swopblock logo]() swopblock WHITE PAPER

PAGE 5

© 2023 Swapblock LLC. All rights reserved.

## PAYLOADS

(continued)

**Output:** Represents the outputs of a protocol transaction

**Output Count:** Represents the number of outputs in the Output List field.

**Output List:** A list of zero or more outputs representing either a Circulated Output or an Uncirculated Output of the transaction outputs in their order.

The Output List is used to determine the quality and quantity of each output of the protocol transaction. If the protocol output is malformed, it is considered non-parsable. Coinbase transactions and transactions with zero inputs cannot have a valid protocol output, even if it would be otherwise considered valid.

Circulated Output: Represents an intention of a user to place an order involving the circulation of SWOBL cash. If there are less items in the Output List than the number of Outputs, the outputs in excess receive a Cash quantity of zero. If there are more items in the Cash List than the number of circulated outputs, the protocol output is deemed invalid.

*The User Intention is defined by fields that have binary and text renderings as follows:*

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

swopblock WHITE PAPER

PAGE 4

© 2023 Swapblock LLC. All rights reserved.

# PAYLOADS

(continued)

# Contract

::= ('sell' | 'buy' | 'charge' | 'discharge' | 'spend') Asset Terms ' using my ' Signature

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

# Terms

::= 'and the order is good while the market volume is ' Amount

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

# Cash

::= Amount ' SWOBL '

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

# Account

::= Route Number

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

# Asset

::= (' any amount of' | Amount ) Route

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

swopblock WHITE PAPER

PAGE 5

© 2023 Swopblock LLC. All rights reserved.

# PAYLOADS

(continued)

# Amount

::= ('exactly' Number | AtLeast | AtMost | Range)

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

# Route

::= ('BTC' | 'ETH')

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

# AtLeast

::= 'at least' Number

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

# AtMost

::= 'at most' Number

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

# Range

::= AtLeast' and 'AtMost'

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

swopblock WHITE PAPER

PAGE 5

© 2023 Swopblock LLC. All rights reserved.

## PAYLOADS

*(continued)*

The Asset transfer quantity of an output is consistent with the exchange equilibrium equation as follows:

Let **H** denote the amount of the Uncirculated Cash.

Let **increase(H)** denote an increase to the Uncirculated Cash (Offering).

Let **decrease(H)** denote a decrease to the Uncirculated Cash (Contract).

Let **A** denote the amount of the Circulated Asset.

Let **increase(A)** denote an increase to the Circulated Asset (Contract).

Let **decrease(A)** denote a decrease to the Circulated Asset (Offering).

Let **net(A)** be the net Asset transfer quantity (**increase(A) - decrease(A)**) of a circulated output.

Let **net(A)** be the net Cash transfer quantity (**increase(H) - decrease(H)**) of a circulated output.

Then the exchange equilibrium equation is as follows:

$$(H + \text{increase}(H)) * (A - \text{decrease}(A))$$

=

$$(H - \text{decrease}(H)) * (A + \text{increase}(A))$$

## ISSUANCE

All the outputs marked for SWOBL issuance and with a non-zero asset quantity get assigned the Cash ID defined as a hash of the output referenced by the first input of the transaction.

## TRANSFER

All the output orders must be valid before transfers can be valid. This includes Cash and Asset availability for the order in sufficient quantity before the expiration of the order determined by the Terms of the order by comparing the Terms Cash Volume thresholds to the actual Cash Volume needed to lock-in the order as valid for execution.

Inputs are seen as a sequenced flow of both Cash and Asset that is serialized into the Outputs where the Inputs are emptied in order of their index and Outputs are filled in order of their index and any unfilled Outputs are invalid and any left-over Inputs are still available to another transaction of the same account.

swopblock WHITE PAPER

PAGE 7

© 2023 Swapblock LLC. All rights reserved.

## CHARACTERISTICS

The whole cryptographic infrastructure of the blockchains provided for securing the spending of outputs is reused for securing the ability to trade assets. There is a symmetry between “an address + private key” as a way to spend on the blockchains, and “an address + private key” as a way to trade assets.

Issuance is based on the invocation of the exchange equilibrium equation which makes it impossible to issue more than the 52,800,000 SWOBL that is defined in the genesis transactions.

## HAVE QUESTIONS?

Contact jeff@swopblock.org
for further inquiries and questions.

swopblock.org
info@swopblock.org
github.com/swopblock
@swopblock

swopblock WHITE PAPER

PAGE 7

© 2023 Swopblock LLC. All rights reserved.

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

swopblock

# Trade crypto without the middle-man.

Don't trust anyone with your crypto ever again. Introducing autonomous crypto trading between peers.

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

THE PROBLEM

Not your keys.
Not your crypto.
Not your trade.

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

Central exchange trading apps cannot and do not allow you to keep custody of your crypto keys while trading, meaning you have to give up your assets to them. As a result, billions have gone missing (FTX case and point). Because these exchanges have custody of your crypto key, you're at risk of losing it all.

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

## Beware of the Liquidity Pools.

Decentralized exchanges try to solve this problem by using Liquidity Pools.

Liquidity Pools distribute tokens only, piling up the actual cash under the custody of the pool owners, making them incredibly vulnerable and tempting targets for attackers.

Unfortunately this means ownership is again distributed by trust only, not by actual custody of crypto keys.

THE SOLUTION

# Float up the Liquidity Stream.

Self-custodial crypto trading powered by 100% distributed liquidity.

Swopblock is a protocol solution that allows people to keep custody of their crypto keys, even while trading. And distributes liquidity across all users wallets, which means there no tempting pile of cash for hackers to target.

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

# Your keys. Your crypto. **Your trade.**

Swopblock's Liquidity Stream flows between peers. Now you can bring your own liquidity to your trade. No more middlemen.

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

## Any blockchain can join our Liquidity Stream.

The Swopblock protocol is powered by SWOBL (Swopblock's crypto), which acts as a liquidity adaptor for blockchains such as ETH, BTC, and more - meaning Swopblock's Liquidity Stream is 100% distributed to SWOBL owners.

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

EXCLUSIVE TECH

# Introducing the Liquidity Stream.

Swopblock's exclusive Liquidity Stream technology is a protocol powered by 100% distributed liquidity (SWOBL), utilizing it as a free flowing medium of exchange that provides the market volume equilibrium necessary for autonomous cross-blockchain trading between peers.

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

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

## Fast. Trade cryptos live.

SWOBL liquifies cryptos for fast cross-blockchain exchange. SWOBL is the liquidity that powers trading volume equilibrium and immediately price locks crypto assets into the flow of the Liquidity Stream enabling live trading between cryptos (flow is the market volume of SWOBL trading within the Swopblock protocol).

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

Bring your own liquidity to your trade, without it leaving the safety of your wallet.

## Secure. Own your trade.

The SWOBL cash in your wallet is the liquidity needed for trading. In fact 100% of the liquidity used by the Liquidity Stream is distributed in this way, secured across all user's wallets. Using the SWOBL cash already in your wallet means you safely bring your own liquidity to your trade, making you your own middleman.

## Universal. Bring any crypto.

Swopblock's consensus mechanism proof-of-relay combines proof-of-stake and proof-of-work to relay crypto blocks into a Swopblock, a super block that contains all relay blocks. This enables the sequencing of any kind of blockchain block (BTC, ETH, etc.) into a common consensus for live crypto trading.

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

MARKET OPPORTUNITY

28.3%

U.S. Market CAGR

2022 - 2030

$7.8 billion

U.S. Market Size

2021

U.S. Crypto Exchange Platform Market
size, by crypto type, 2021 - 2030 (USD Billion)

Source: Grand View Research

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

Global Market

The global cryptocurrency exchange platform market size was valued at USD 30.18 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 27.8% from 2022 to 2030.

Top Crypto Exchanges

Source: Coin Market Cap

| Name | Volume (24hr) | Avg. Liquidity | No. Markets |
| --- | --- | --- | --- |
| Binance | $14.2B | 878 | 1691 |
| Coinbase | $1.8B | 760 | 595 |
| Kraken | $0.7B | 759 | 713 |

REVENUE MODEL

# Three streams of revenue.

## Freemium Software

The freemium model of software licensing of Swopblock score validation node software will be free to most people but will generate software license revenue for those node operators that want the benefits of premium features.

## Transaction Fees & Royalties

Licensed nodes will profit from a transaction fee-net-reward income that is structured like the merchant fee-net-cashback model of the major credit card companies and a Swopblock royalty will be charged against these fees.

## SWOBL Crypto Appreciation

SWOBL is the medium of exchange within the Swopblock protocol. As trading demand increases SWOBL's value will follow. Investors, traders, and holders of SWOBL (including Swopblock) will be able to capitalize on these gains.

PERKS

# Invest in Swopblock.
Get crypto as a Perk.

The Swopblock protocol is powered by 52.8 million SWOBL (Swopblock's crypto) and we are giving early investors a portion of this SWOBL as a Perk according to your investment size.

INVEST $100

- Get 100 $SWOBL

INVEST $1,000

- Get 1,250 $SWOBL

+ Plus First 100 investors are entered to WIN a bonus 100,000 $SWOBL
+ Plus the lower level perks, equaling 1,350 $SWOBL

INVEST $10,000

- Get 15,000 $SWOBL

+ Plus 1 hour group Q&A meeting with Swopblock Founder & Inventor
+ Plus the lower level perks, equaling 16,350 $SWOBL

INVEST $100,000

- Get 175,000 $SWOBL

+ Plus 1 hour 1 on 1 Q&A meeting with Swopblock Founder & Inventor
+ Plus the lower level perks, equaling 191,350 $SWOBL

THE ULTIMATE PERK

# WIN
100,000
crypto

First 100 investors are entered to win!

SWOBL, Swopblock's crypto, powers our exchange protocol.
Invest $1,000 or more to be entered to win.

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

Own Swopblock's SWOBL. Own the power of trade.

FINANCIALS

# Swopblock
Income Budget

2023 - 2024 (4.4 mil)

30%
Software Dev

Developer sponsorship
Hardware and Software tools
Network testing
Feature grants
Security audits
Debugging bounties

30%
Marketing

Brand planning/strategy
Website, PR, and social
Content development
Media planning/purchasing

25%
App Design

Research
UX Design
Development
Beta release

7.5%
Wefunder

Crowdfunding fee

6.25%
Crypto

BIT initial purchase
ETH initial purchase

1.25%
Startup

Patent fees
Legal fees
Operational costs

FUNDING GOAL

$4.4 million

2 year expense budget

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

2023 budget breakdown (1.4mil)

App Design

Research
UX Design
Development
Beta testing & release

$485k

$45k
$105k
$210k
$125k

Software Dev

Developer sponsorship
Hardware and software tools
Network testing
Feature grants
Debugging bounties

$526k

$220k
$52k
$34k
$140k
$80k

Marketing

Brand planning/strategy
Website, PR, and social
Content development
Media planning/purchasing

$420k

$70k
$95k
$125k
$140k

Other Exp

Crypto
Wefunder
Startup

$192.5k

$70k
$105k
$17.5k

Forward looking projections cannot be guaranteed.

TRACTION

# 2022

# TEAM

Found key team members such as a Financial Director, and Lead Programers.

# SIMULATION

Github simulation hosted for developer download.

# PATENT

Filing patent for our Proof or Relay Consensus Mechanism and our Liquidity Stream Execution Mechanism.

# WHITE PAPER

White paper detailing our Proof or Relay Consensus Mechanism and our Liquidity Stream Execution Mechanism.

# CRYPTO CERTIFICATES

18,851,900 SWOBL certificates have been documented and sent out to investors.

# 2023

# SWOPBLOCK LIVE

A web-based demo app live for investors and developers to check out.

# USER INTERFACE

UX and features complete and ready to plug into Swopblock's engine.

# BETA LAUNCH

Swopblock APP launch for developers on the Microsoft, Apple, and Google app stores.

Forward looking projections cannot be guaranteed.

LEADERSHIP

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

## JEFF / Inventor & Founder

Jeff is an accomplished Research Engineer who has led the research development of artificial intelligence innovation for the Office of Naval Research providing advances and breakthroughs in the navy's capability to locate and identify mobile targets with visible, infrared, radar, and laser video sensors. Invention has been the backbone of his career. Receiving over 10 patents to date, he continues to invent in new industries bringing that same breakthrough thinking to new complex problems.

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

## AUSTIN / Communications

While at Amazon's global ad agency Austin lead the development of breakthrough ideas that have launched new technologies such as Alexa, Echo, Echo Show, FireTV, and more. Most recently he has reinvented Amazon's creative approach to event marketing, delivering real results that have increased customer brand recall and purchase intent. Throughout his career he has worked with several Fortune 500 companies including Nike and Microsoft.

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

In 2022 our team has grown 150%.

## Swopblock's mission

is to give the power of crypto back to the people, extending crypto's original promise of a decentralized currency by offering a decentralized means of exchange.

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

swopblock

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

Swopblock LLC

# OPERATING AGREEMENT

# of
Swopblock LLC

This Operating Agreement (the "Agreement") made and entered into this 4th day of March, 2021 (the "Execution Date"),

# BETWEEN:

Jeff Hilde of Pennsylvania,

and

Austin Hilde of Colorado

(individually the "Member" and collectively the "Members").

# BACKGROUND:

A. The Members wish to associate themselves as members of a limited liability company.
B. The terms and conditions of this Agreement will govern the Members within the limited liability company.

IN CONSIDERATION OF and as a condition of the Members entering into this Agreement and other valuable consideration, the receipt and sufficiency of which is acknowledged, the Members agree as follows:

# Formation

1. By this Agreement, the Members form a Limited Liability Company (the "Company") in accordance with the laws of the Commonwealth of Pennsylvania. The rights and obligations of the Members will be as stated in the Pennsylvania Limited Liability Company Law (the "Act") except as otherwise provided in this agreement.

1

Swopblock LLC

# Name

2. The name of the Company will be Swopblock LLC.

# Purpose

3. The primary activities of the Company are to discover and exploit cryptocurrency blockchain technology by researching, developing and licensing cryptocurrency software. Such primary activities shall be devoted to the primary purpose of the Company. Such primary purpose of the Company is to establish a cryptocurrency network that powers cross-blockchain transactions, is counterparty secure, and excludes any party of cryptocurrency exchange and their security vulnerabilities.

# Term

4. The Company will continue until terminated as provided in this Agreement or may dissolve under conditions provided in the Act.

# Place of Business

5. The Principal Office of the Company will be located at 1684 Henrietta Mountain Rd, Martinsburg, PA 16662 or such other place as the Members may from time to time designate.

# Capital Contributions

6. The following is a list of all Initial Members and their Initial Contributions to the Company. Each of the Initial Members agree to make their Initial Contributions to the Company in full, according to the following terms:

| Member | Contribution Description | Value of Contribution |
| --- | --- | --- |
| Jeff Hilde | There are no Initial Contributions. | $0.00 |
| Austin Hilde | There are no Initial Contributions. | $0.00 |

2

Swopblock LLC

# Allocation of Profits/Losses

7. Subject to the other provisions of this Agreement, the Net Profits or Losses, for both accounting and tax purposes, will accrue to and be borne by the Members in proportion to the Member's Capital Contributions inclusive of any Additional Capital Contributions.
8. Distributions to Members will be made in proportion to the Members' Capital Contributions inclusive of any Additional Capital Contributions.
9. No Member will have priority over any other Member for the distribution of Net Profits or Losses.

# Nature of Interest

10. A Member's Interest in the Company will be considered personal property.

# Withdrawal of Contribution

11. No Member will withdraw any portion of their Capital Contribution without the unanimous consent of the other Members, except, however, each Member may optionally make cash withdrawals of his Capital Contributions in the amount of fifty dollars per hour for each hour devoted in his Duty to Devote Time. These withdrawals are in addition to and not in lieu of any Company guaranteed payments for the same such hours of such devotion.

# Liability for Contribution

12. A Member's obligation to make their required Capital Contribution can only be compromised or released with the consent of all remaining Members or as otherwise provided in this Agreement. If a Member does not make the Capital Contribution when it is due, he is obligated at the option of any remaining Members to contribute cash equal to the agreed value of the Capital Contribution. This option is in addition to and not in lieu of any others rights, including the right to specific performance that the Company may have against the Member.

3

Swopblock LLC

# Additional Contributions

13. Capital Contributions may be amended from time to time, according to the business needs of the Company and may be made up of cash, checks, money orders or credit, or petty amounts of crypto tokens, crypto coins, crypto currency or crypto securities that will be exhausted in software function and security testing. However, if additional capital is determined to be required and an individual Member is unwilling or unable to meet the additional contribution requirement within a reasonable period, the remaining Members may contribute in proportion to their existing Capital Contributions to resolve the amount in default. In such case, the allocation of Net Profits or Losses and the distribution of assets on dissociation or dissolution will be adjusted accordingly.
14. Any advance of money to the Company by any Member in excess of the amounts provided for in this Agreement or subsequently agreed to, will be deemed a debt due from the Company rather than an increase in the Capital Contribution of the Member. This liability will be repaid with interest at such rates and times to be determined by a majority of the Members. This liability will not entitle the lending Member to any increased share of the Company's profits nor to a greater voting power. Repayment of such debts will have priority over any other payments to Members.

# Capital Accounts

15. An individual capital account (the "Capital Account") will be maintained for each Member and their Initial Contributions will be credited to this account. Any Additional Contributions made by any Member will be credited to that Member's individual Capital Account.

# Interest on Capital

16. No borrowing charge or loan interest will be due or payable to any Member on their agreed Capital Contribution inclusive of any agreed Additional Contributions.

# Management

17. Management of this Company is vested in the Members.

4

Swopblock LLC

# Authority to Bind Company

18. Only the following individuals, classes or groups have authority to bind the Company in contract: Contracts must be signed by at least two Members.

# Duty of Loyalty

19. While a person is a Member of the Company, and for a period of at least five years after that person ceases to be a Member, that person will not carry on, or participate in, a similar business to the business of the Company within any market regions that were established or contemplated by the Company before or during that person's tenure as Member.

# Duty to Devote Time

20. Each Member will devote such hours and schedule of time and attention to the business of the Company as the majority of the Members will from time to time reasonably determine for the conduct of the Company's business. Such hours shall be paid at the rate of fifty dollars per devoted hour in Company guaranteed monthly payments. These payments are in addition to and not in lieu of any Member option to make cash withdrawals of his Capital Contributions for the same such hours of such devotion.

# Member Meetings

21. A meeting may be called by any Member providing that reasonable notice has been given to the other Members.
22. Regular meetings of the Members will be held only as required.

# Voting

23. Each Member will be entitled to cast votes on any matter based upon the proportion of that Member's Capital Contributions in the Company.

5

Swopblock LLC

# Admission of New Members

24. A new Member may only be admitted to the Company with a unanimous vote of the existing Members.
25. In addition to the required vote of existing Members to admit a new Member, the following conditions must be satisfied:

- New Members must provide a capital contribution in an amount and on such terms as the Initial Members determine and agree to be appropriate, based upon a net valuation of the Company's assets of at least $3,500,000.00 dollars.

26. The new Member agrees to be bound by all the covenants, terms, and conditions of this Agreement, inclusive of all current and future amendments. Further, a new Member will execute such documents as are needed to affect the admission of the new Member. Any new Member will receive such business interest in the Company as determined by a unanimous decision of the other Members.

# Voluntary Withdrawal of a Member

27. No Member may voluntarily withdraw from the Company for a period of one year from the execution date of this Agreement. Any such unauthorized withdrawal prior to the expiration of this period will be considered a wrongful dissociation and a breach of this Agreement. In the event of any such wrongful dissociation, the withdrawing Member will be liable to the remaining Members for any damages incurred by the remaining Members including but not limited to the loss of future earnings. After the expiration of this period, any Member will have the right to voluntarily withdraw from the Company. Written notice of intention to withdraw must be served upon the remaining Members at least one month prior to withdrawal.
28. The voluntary withdrawal of a Member will have no effect upon the continuance of the Company.
29. It remains incumbent on the withdrawing Member to exercise this dissociation in good faith and to minimize any present or future harm done to the remaining Members as a result of the withdrawal.

6

Swopblock LLC

# Involuntary Withdrawal of a Member

30. Events leading to the involuntary withdrawal of a Member from the Company will include but not be limited to: death of a Member; Member mental incapacity; Member disability preventing reasonable participation in the Company; Member incompetence; breach of fiduciary duties by a Member; criminal conviction of a Member; Operation of Law against a Member or a legal judgment against a Member that can reasonably be expected to bring the business or societal reputation of the Company into disrepute. Expulsion of a Member can also occur on application by the Company or another Member, where it has been judicially determined that the Member: has engaged in wrongful conduct that adversely and materially affected the Company's business; has willfully or persistently committed a material breach of this Agreement or of a duty owed to the Company or to the other Members; or has engaged in conduct relating to the Company's business that makes it not reasonably practicable to carry on the business with the Member.

31. The involuntary withdrawal of a Member will have no effect upon the continuance of the Company.

# Dissociation of a Member

32. In the event of either a voluntary or involuntary withdrawal of a Member, if the remaining Members elect to purchase the interest of the withdrawing Member, the remaining Members will serve written notice of such election, including the purchase price and method and schedule of payment for the withdrawing Member's Interests, upon the withdrawing Member, their executor, administrator, trustee, committee or analogous fiduciary within a reasonable period after acquiring knowledge of the change in circumstance to the affected Member. The purchase amount of any buyout of a Member's Interests will be determined as set out in the Valuation of Interest section of this Agreement.

33. Valuation and distribution will be determined as described in the Valuation of Interest section of this Agreement.

34. The remaining Members retain the right to seek damages from a dissociated Member where the dissociation resulted from a malicious or criminal act by the dissociated

7

Swopblock LLC

Member or where the dissociated Member had breached their fiduciary duty to the Company or was in breach of this Agreement or had acted in a way that could reasonably be foreseen to bring harm or damage to the Company or to the reputation of the Company.

35. A dissociated Member will only have liability for Company obligations that were incurred during their time as a Member. On dissociation of a Member, the Company will prepare, file, serve, and publish all notices required by law to protect the dissociated Member from liability for future Company obligations.

36. Where the remaining Members have purchased the interest of a dissociated Member, the purchase amount will be paid in full, but without interest, within 90 days of the date of withdrawal. The Company will retain exclusive rights to use of the trade name and firm name and all related brand and model names of the Company.

# Right of First Purchase

37. In the event that a Member's Interest in the Company is or will be sold, due to any reason, the remaining Members will have a right of first purchase of that Member's Interest. The value of that interest in the Company will be the lower of the value set out in the Valuation of Interest section of this Agreement and any third party offer that the Member wishes to accept.

# Assignment of Interest

38. A Member's financial interest in the Company can only be assigned to another Member and cannot be assigned to a third party except with the unanimous consent of the remaining Members.

39. In the event that a Member's interest in the company is transferred or assigned as the result of a court order or Operation of Law, the trustee in bankruptcy or other person acquiring that Member's Interests in the Company will only acquire that Member's economic rights and interests and will not acquire any other rights of that Member or be admitted as a Member of the Company or have the right to exercise any management or voting interests.

8

Swopblock LLC

# Valuation of Interest

40. A Member's financial interest in the Company will be in proportion to their Capital Contributions, inclusive of any Additional Capital Contributions.

41. In the absence of a written agreement setting a value, the value of the Company will be based on the fair market value appraisal of all Company assets (less liabilities) determined in accordance with generally accepted accounting principles (GAAP). This appraisal will be conducted by an independent accounting firm agreed to by all Members. An appraiser will be appointed within a reasonable period of the date of withdrawal or dissolution. The results of the appraisal will be binding on all Members. The intent of this section is to ensure the survival of the Company despite the withdrawal of any individual Member.

42. No allowance will be made for goodwill, trade name, patents or other intangible assets, except where those assets have been reflected on the Company books immediately prior to valuation.

# Dissolution

43. The Company may be dissolved by a unanimous vote of the Members. The Company will also be dissolved on the occurrence of events specified in the Act.

44. Upon Dissolution of the Company and liquidation of Company property, and after payment of all selling costs and expenses, the liquidator will distribute the Company assets to the following groups according to the following order of priority:

a. in satisfaction of liabilities to creditors except Company obligations to current Members:
b. in satisfaction of Company debt obligations to current Members; and then
c. to the Members based on Member financial interest, as set out in the Valuation of Interest section of this Agreement.

9

Swopblock LLC

# Records

45. The Company will at all times maintain accurate records of the following:

a. Information regarding the status of the business and the financial condition of the Company.
b. A copy of the Company federal, state, and local income taxes for each year, promptly after becoming available.
c. Name and last known business, residential, or mailing address of each Member, as well as the date that person became a Member.
d. A copy of this Agreement and any articles or certificate of formation, as well as all amendments, together with any executed copies of any written powers of attorney pursuant to which this Agreement, articles or certificate, and any amendments have been executed.
e. The cash, property, and services contributed to the Company by each Member, along with a description and value, and any contributions that have been agreed to be made in the future.

46. Each Member has the right to demand, within a reasonable period of time, a copy of any of the above documents for any purpose reasonably related to their interest as a Member of the Company, at their expense.

# Books of Account

47. Accurate and complete books of account of the transactions of the Company will be kept in accordance with generally accepted accounting principles (GAAP) and at all reasonable times will be available and open to inspection and examination by any Member. The books and records of the Company will reflect all the Company's transactions and will be appropriate and adequate for the business conducted by the Company.

10

Swopblock LLC

# Banking and Company Funds

48. The funds of the Company will be placed in such investments and banking accounts as will be designated by the Members. All withdrawals from these accounts will be made by the duly authorized agent or agents of the Company as appointed by unanimous consent of the Members. Company funds will be held in the name of the Company and will not be commingled with those of any other person or entity.

# Audit

49. Any of the Members will have the right to request an audit of the Company books. The cost of the audit will be borne by the Company. The audit will be performed by an accounting firm acceptable to all the Members. Not more than one (1) audit will be required by any or all of the Members for any fiscal year.

# Tax Treatment

50. This Company is intended to be treated as a partnership, for the purposes of Federal and State Income Tax.

# Tax Elections

51. The Company will elect out of the application of Chapter 63 Subchapter C of the Internal Revenue Code of 1986, in each taxable year in which it is eligible to do so in accordance with Section 6221(b), by making that election in a timely filed return for such taxable year disclosing the name and taxpayer identification number of each Member.

# Annual Report

52. As soon as practicable after the close of each fiscal year, the Company will furnish to each Member an annual report showing a full and complete account of the condition of the Company including all information as will be necessary for the preparation of each Member's income or other tax returns. This report will consist of at least:

a. A copy of the Company's federal income tax returns for that fiscal year.
b. Income statement.
c. Balance sheet.
d. Cash flow statement.

11

Swopblock LLC

# Goodwill

53. The goodwill of the Company will be assessed at an amount to be determined by appraisal using generally accepted accounting principles (GAAP).

# Governing Law

54. The Members submit to the jurisdiction of the courts of the Commonwealth of Pennsylvania for the enforcement of this Agreement or any arbitration award or decision arising from this Agreement.

# Force Majeure

55. A Member will be free of liability to the Company where the Member is prevented from executing their obligations under this Agreement in whole or in part due to force majeure, such as earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event where the Member has communicated the circumstance of the event to any and all other Members and where the Member has taken any and all appropriate action to satisfy his duties and obligations to the Company and to mitigate the effects of the event.

# Forbidden Acts

56. No Member may do any act in contravention of this Agreement.
57. No Member may permit, intentionally or unintentionally, the assignment of express, implied or apparent authority to a third party that is not a Member of the Company.
58. No Member may do any act that would make it impossible to carry on the ordinary business of the Company.
59. No Member will have the right or authority to bind or obligate the Company to any extent with regard to any matter outside the intended purpose of the Company.
60. No Member may confess a judgment against the Company.

12

Swopblock LLC

61. Any violation of the above forbidden acts will be deemed an Involuntary Withdrawal and may be treated accordingly by the remaining Members.

# Indemnification

62. All Members will be indemnified and held harmless by the Company from and against any and all claims of any nature, whatsoever, arising out of a Member's participation in Company affairs. A Member will not be entitled to indemnification under this section for liability arising out of gross negligence or willful misconduct of the Member or the breach by the Member of any provisions of this Agreement.

# Liability

63. A Member or any employee will not be liable to the Company or to any other Member for any mistake or error in judgment or for any act or omission believed in good faith to be within the scope of authority conferred or implied by this Agreement or the Company. The Member or employee will be liable only for any and all acts and omissions involving intentional wrongdoing.

# Liability Insurance

64. The Company may acquire insurance on behalf of any Member, employee, agent or other person engaged in the business interest of the Company against any liability asserted against them or incurred by them while acting in good faith on behalf of the Company.

# Life Insurance

65. The Company will have the right to acquire life insurance on the lives of any or all of the Members, whenever it is deemed necessary by the Company. Each Member will cooperate fully with the Company in obtaining any such policies of life insurance.

# Amendment of this Agreement

66. No amendment or modification of this Agreement will be valid or effective unless in writing and signed by all Members.

13

Swopblock LLC

# Title to Company Property

67. Title to all Company property will remain in the name of the Company. No Member or group of Members will have any ownership interest in Company property in whole or in part.

# Miscellaneous

68. Time is of the essence in this Agreement.

69. This Agreement may be executed in counterparts.

70. Headings are inserted for the convenience of the Members only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa. Words in a neutral gender include the masculine gender and the feminine gender and vice versa.

71. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the Members' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.

72. This Agreement contains the entire agreement between the Members. All negotiations and understandings have been included in this Agreement. Agreements, statements or representations that may have been made by any Member during the negotiation stages of this Agreement, may in some way be inconsistent with this final written Agreement. All such other agreements and statements shall have no force or effect in respect to this Agreement. Only the written terms of this final Agreement will bind the Members.

73. This Agreement and the terms and conditions contained in this Agreement apply to and are binding upon each Member's successors, assigns, executors, administrators, beneficiaries, and representatives.

14

Swopblock LLC

74. Any notices or delivery required here will be deemed completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the Members at the addresses contained in this Agreement or as the Members may later designate in writing.

75. All of the rights, remedies and benefits provided by this Agreement will be cumulative and will not be exclusive of any other such rights, remedies and benefits allowed by law.

# Definitions

76. For the purpose of this Agreement, the following terms are defined as follows:

a. "Additional Contribution" means Capital Contributions, other than Initial Contributions, made by Members to the Company.

b. "Capital Contribution" means the total amount of cash, property, or services contributed to the Company by any one Member.

c. "Distributions" means a payment of Company profits to the Members.

d. "Initial Contribution" means the initial Capital Contributions made by any Member to acquire an interest in the Company.

e. "Member's Interests" means the Member's collective rights, including but not limited to, the Member's right to share in profits, Member's right to a share of Company assets on dissolution of the Company, Member's voting rights, and Member's rights to participate in the management of the Company.

f. "Net Profits or Losses" means the net profits or losses of the Company as determined by generally accepted accounting principles (GAAP).

g. "Operation of Law" means rights or duties that are cast upon a party by the law, without any act or agreement on the part of the individual, including, but not limited to, an assignment for the benefit of creditors, a divorce, or a bankruptcy.

h. "Principal Office" means the office whether inside or outside the Commonwealth of Pennsylvania where the executive or management of the Company maintain their primary office.

15

Swopblock LLC

i. "Voting Members" means the Members who belong to a membership class that has voting power. Where there is only one class of Members, then those Members constitute the Voting Members.

IN WITNESS WHEREOF the Members have duly affixed their signatures under hand and seal on this 4th day of March, 2021.

\_\_\_\_\_  
Austin Hilde (Member)

\_\_\_\_\_  
Jeff Hilde (Member)

16

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Swopblock LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** PA

**Date of Organization:** 03-04-2021

**Physical Address:** 1684 Henrietta Mountain Rd, Martinsburg, PA, 16662

**Issuer Website:** https://swopblock.org

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 2

**Total Assets (Most Recent Fiscal Year):** $76,199.00

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

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $40,926.00

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

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $5,051.00

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

**Long-Term Debt (Most Recent Fiscal Year):** $136,316.00

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

**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):** $-54,944.00

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

### Signatures

**Issuer:** Swopblock LLC

**Signature:** Jeff Hilde

**Title:** CEO / Inventor & Founder

---

**Signature:** Austin Hilde

**Title:** CCO / Communications

**Date:** 01-13-2023

---

**Signature:** Jeff Hilde

**Title:** CEO / Inventor & Founder

**Date:** 01-13-2023