# EDGAR Filing Document

**Accession Number:** 0001742162
**File Stem:** 0001742162-23-000006
**Filing Date:** 2023-3
**Character Count:** 138232
**Document Hash:** 49f7c770250152bb96ab112d14041f3b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001742162-23-000006.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001742162-23-000006

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Consumer Cooperative Group Inc
- **CENTRAL INDEX KEY:** 0001742162
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **IRS NUMBER:** 815127931
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31908
- **FILM NUMBER:** 23694544

**BUSINESS ADDRESS:**
- **STREET 1:** 5305 RIVER RD N, STE B
- **CITY:** KEIZER
- **STATE:** OR
- **ZIP:** 97303
- **BUSINESS PHONE:** 9724630463

**MAIL ADDRESS:**
- **STREET 1:** 6713 AMESBURY LANE
- **STREET 2:** STE 100
- **CITY:** ROWLETT
- **STATE:** TX
- **ZIP:** 75089

### Attached PDF Documents

**Attachment 1:** `offeringMemorandum.pdf`

# OFFERING MEMORANDUM

## PART II OF THE OFFERING STATEMENT (EXHIBIT A TO FORM C)

February 28, 2023

### Up to $5,000,000 Class A Common Stock

# **Minimum Target Amount: \$5,000  
Up to 20,000,000 Shares at \$0.25 Per Share  
\$500 minimum investment (2,000 shares) per Purchaser**

Consumer Cooperative Group, Inc (the “Company,” “we,” “us”, or “our”), is offering up to $5,000,000 worth of Class A Common Stocks of the Company (the “Shares”). Purchasers of Shares are sometimes referred to herein as “Purchasers”. The minimum target offering is $5,000. (the “Target Amount”). This offering is being conducted on a best-efforts basis and the Company must reach its Target Amount of $5,000 by March 5, 2024. Unless the Company raises at least the Target Amount of $5,000. (the “Closing Amount”) by March 5, 2024, no Shares will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned. The Company will accept oversubscriptions in excess of the Target Amount up to $5,000,000 (the “Maximum Amount”) on a first come, first served basis.

Prospective purchasers of the Securities are referred to herein as “investors” or “you”. The rights and obligations of Investors with respect to the Securities are set forth below in the section titled “Exempt Offering and description of Securities”. In order to purchase the Securities, you must complete the purchase process through our intermediary, Rialto Markets LLC (the “Intermediary”). All committed funds will be held in escrow with Thread Bank (the “Escrow Agent”) until the Target Offering Amount has been met or exceeded and one or more closings occur. After the Target Offering amount is met and the Offering has been active for 21 days, the Company may choose to close the Offering to access the funds held in escrow (the “Escrow Close”) from subscribed investors. Each time the Company may access invested funds held in the Escrow Account, all new investors who have subscribed since the prior Escrow Close will be notified by the Intermediary that subscribed investors will have until 48 hours prior to the next scheduled Escrow Close to cancel or reconfirm their investment. Investors will only be asked once to reconfirm or cancel their investment subscription. Investment commitments will be represented by an issuance of shares of Common Stock, as further described below. Securities sold in this Offering will be deposited into an escrow account maintained by Wilmington Trust, who will serve as the Escrow Agent (the “Escrow Agent”) for this Offering. Securities sold in this Offering will be issued electronically, there will be no certificates issued for Shares. Records of ownership for the securities issued will be recorded at the registered Transfer Agent, KoreConX, Inc. Investors may log into the KoreConX platform to view their holdings in the Company. Investment subscriptions may be accepted or rejected by us, in our sole and absolute discretion. We have the right to cancel or rescind our offer to sell the Securities at any time and for any reason. The Intermediary has the ability to reject any investment subscription and may cancel or rescind our offer to sell the Securities at any time for any reason. The minimum number of Class A Common Stocks that can be purchased is two thousand (2000), representing a $500 minimum investment (2,000 shares) per Purchaser (which may be waived by the Company, in its sole and absolute discretion). The offer made hereby is subject to modification, prior sale, and withdrawal at any time.

## LEGEND

A crowdfunding investment involves risk. You should not invest any funds in this Offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the Offering, including the merits and risks involved. These Preferred Shares have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any Preferred Shares offered or the terms of the Offering, nor does it pass upon the accuracy or completeness of any Offering document or literature. These Preferred Shares are offered under an exemption from registration; however, neither the U.S. Securities and Exchange Commission nor any state securities authority has made an independent determination that these Preferred Shares are exempt from registration. The Company filing this Form C for an Offering in reliance on Section 4(a)(6) of the Securities Act and pursuant to Regulation CF (§227.100 et seq.) must file a report with the Commission annually and post the report on its website at ccg.coop no later than 120 days after the end of each fiscal year covered by the report.

The Company has certified that all of the following statements are TRUE for the Company in connection with this Offering. The Company:

(1) Is organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia;

(2) Is not subject to the requirement to file reports pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d));

(3) Is not an investment company, as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3) (the "Company Act"), or excluded from the definition of investment company by section 3(b) or section 3(c) of that Act (15 U.S.C. 80a-3(b) or 80a-3(c));

(4) Is not ineligible to offer or sell securities in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) as a result of a disqualification as specified in § 227.503(a);

(5) Has filed with the Commission and provided to investors, to the extent required, any ongoing annual reports required by law during the two years immediately preceding the filing of this Form C; and

(6) Has a specific business plan, which is not to engage in a merger or acquisition with an unidentified company or companies.

THERE ARE SIGNIFICANT RISKS AND UNCERTAINTIES ASSOCIATED WITH AN INVESTMENT IN THE COMPANY AND THE SECURITIES. THE SECURITIES OFFERED HEREBY ARE NOT PUBLICLY TRADED AND ARE SUBJECT TO TRANSFER RESTRICTIONS. THERE IS NO PUBLIC MARKET FOR THE SECURITIES AND ONE MAY NEVER DEVELOP. AN INVESTMENT IN THE COMPANY IS HIGHLY SPECULATIVE. THE SECURITIES SHOULD NOT BE PURCHASED BY ANYONE WHO CANNOT BEAR THE FINANCIAL RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME AND WHO CANNOT AFFORD THE LOSS OF THEIR ENTIRE INVESTMENT. SEE THE SECTION OF THIS FORM C ENTITLED "RISK FACTORS."

THESE SECURITIES INVOLVE A HIGH DEGREE OF RISK THAT MAY NOT BE APPROPRIATE FOR ALL INVESTORS.

THIS FORM C DOES NOT CONSTITUTE AN OFFER IN ANY JURISDICTION IN WHICH AN OFFER IS NOT PERMITTED.

PRIOR TO CONSUMMATION OF THE PURCHASE AND SALE OF ANY SECURITY THE COMPANY WILL AFFORD PROSPECTIVE INVESTORS AN OPPORTUNITY TO ASK QUESTIONS OF AND RECEIVE ANSWERS FROM THE COMPANY AND ITS MANAGEMENT CONCERNING THE TERMS AND CONDITIONS OF THIS OFFERING AND THE COMPANY. NO SOURCE OTHER THAN THE INTERMEDIARY HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS FORM C, AND IF GIVEN OR MADE BY ANY OTHER SUCH PERSON OR ENTITY, SUCH INFORMATION MUST NOT BE RELIED ON AS HAVING BEEN AUTHORIZED BY THE COMPANY.

PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS FORM C AS LEGAL, ACCOUNTING OR TAX ADVICE OR AS INFORMATION NECESSARILY

APPLICABLE TO EACH PROSPECTIVE INVESTOR'S PARTICULAR FINANCIAL SITUATION. EACH INVESTOR SHOULD CONSULT HIS OR HER OWN FINANCIAL ADVISER, COUNSEL AND ACCOUNTANT AS TO LEGAL, TAX AND RELATED MATTERS CONCERNING HIS OR HER INVESTMENT.

THE SECURITIES OFFERED WILL HAVE TRANSFER RESTRICTIONS. NO SECURITIES MAY BE PLEDGED, TRANSFERRED, OTHERWISE DISPOSED OF BY ANY PURCHASER EXCEPT PURSUANT TO RULE 501 OF REGULATION CF. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

#### **NASAA UNIFORM LEGEND**

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.

THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

#### **SPECIAL NOTICE TO FOREIGN INVESTORS**

IF THE PURCHASER LIVES OUTSIDE THE UNITED STATES, IT IS THE PURCHASER'S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN PURCHASER.

## **FORWARD LOOKING STATEMENT DISCLOSURE**

This Form C and any documents incorporated by reference herein or therein contain forward-looking statements and are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this Form C are forward-looking statements. Forward-looking statements give the Company's current reasonable expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements contained in this Form C and any documents incorporated by reference herein or therein are based on reasonable assumptions the Company has made in light of its industry experience, perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this Form C, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond the Company's control), and assumptions Should one or more of these risks or uncertainties materialize or should any of these assumptions prove incorrect or change, the Company's actual operating, and financial performance may vary in material respects from the performance projected in these forward-looking statements.

Any forward-looking statement made by the Company in this Form C, or any documents incorporated by reference herein or therein speaks only as of the date of this Form C. Factors or events that could cause our actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

## **ONGOING REPORTING**

The Company is required to file a report electronically with the Securities & Exchange Commission annually and post the report on its website, the next annual report (form C-AR) will become due on or before April 30, 2023.

Once posted, the annual report may be found on the Company's website at: ccg.coop The Company must continue to comply with the ongoing reporting requirements until:

(1) the Company is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;

(2) the Company has filed at least three annual reports pursuant to Regulation CF and has total assets that do not exceed $10,000,000;

(3) the Company has filed at least one annual report pursuant to Regulation CF and has fewer than 300 holders of record;

(4) the Company or another party repurchases all of the Preferred Shares issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete

redemption of redeemable securities; or

(5) the Company liquidates or dissolves its business in accordance with state law.

#### About this Form C

You should rely only on the information contained in this Form C. We have not authorized anyone to provide you with information different from that contained in this Form C. We are offering to sell and seeking offers to buy the Preferred Shares only in jurisdictions where offers and sales are permitted. You should assume that the information contained in this Form C is accurate only as of the date of this Form C, regardless of the time of delivery of this Form C or of any sale of Preferred Shares. Our business, financial condition, results of operations, and prospects may have changed since that date.

Statements contained herein as to the content of any agreements or other document are summaries and, therefore, are necessarily selective and incomplete and are qualified in their entirety by the actual agreements or other documents. The Company will provide the opportunity to ask questions of and receive answers from the Company's management concerning terms and conditions of the Offering, the Company or any other relevant matters and any additional reasonable information to any prospective Purchaser prior to the consummation of the sale of the Preferred Shares.

This Form C does not purport to contain all of the information that may be required to evaluate the Offering and any recipient hereof should conduct its own independent analysis. The statements of the Company contained herein are based on information believed to be reliable. No warranty can be made as to the accuracy of such information or that circumstances have not changed since the date of this Form C. The Company does not expect to update or otherwise revise this Form C or other materials supplied herewith. The delivery of this Form C at any time does not imply that the information contained herein is correct as of any time subsequent to the date of this Form C. This Form C is submitted in connection with the Offering described herein and may not be reproduced or used for any other purpose.

**We are and may continue to be significantly impacted by the worldwide economic downturn due to the COVID-19 pandemic.**

In December 2019, a novel strain of coronavirus, or COVID-19, was reported to have surfaced in Wuhan, China. COVID-19 has spread to many countries, including the United States, and was declared to be a pandemic by the World Health Organization. Efforts to contain the spread of COVID-19 have intensified and the U.S., Europe and Asia have implemented severe travel restrictions and social distancing. The impacts of the outbreak are unknown and rapidly evolving. A widespread health crisis has adversely affected and could continue to affect the global

economy, resulting in an economic downturn that could negatively impact the value of the Company's shares and investor demand for shares generally.

The continued spread of COVID-19 has also led to severe disruption and volatility in the global capital markets, which could increase our cost of capital and adversely affect our ability to access the capital markets in the future. It is possible that the continued spread of COVID-19 could cause further economic slowdown or recession or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

The extent to which COVID-19 affects our financial results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the COVID-19 outbreak and the actions to contain the outbreak or treat

its impact, among others. Moreover, the COVID-19 outbreak has had and may continue to have indeterminable adverse effects on general commercial activity and the world economy, and our business and results of operations could be adversely affected to the extent that COVID- 19 or any other pandemic harms the global economy generally.

(Remainder of page left intentionally blank)

# Summary

*The following summary highlights selected information contained in this Offering Circular. This summary does not contain all the information that may be important to you. You should read the more detailed information contained in this Offering Circular, including, but not limited to, the risk factors within this Item 3.*

*Additionally, the risk factors described within this Item 3 are those that we believe are currently material to the business, prospects, operating results, and/or financial condition of the Company. Investors need to be aware there may be other risk factors that may become material in the future, or there may be risks that we have not yet identified that could adversely affect the condition of our business and cause the market price of our stock to decline resulting. For these reasons, and the risks described below, investors should be prepared to withstand a complete, or significant, loss of their investment in the Company.*

*Unless we state otherwise, the terms “we,” “us,” “our,” “Company,” “management,” or similar terms collectively refer to Consumer Cooperative Group, Inc., an Oregon cooperative.*

*Some of the statements in this Offering Circular are forward-looking statements. See the section entitled “Special Note Regarding Forward-Looking Statements” on page 7 herein below.*

Consumer Cooperative Group, Inc. is a development stage company formed in the State of Oregon on January 27, 2017, as a cooperative with a fiscal year end date of December 31, 2017. The Company was formed as a cooperative to provide an array of affordable real estate investments to acquire & hold, large, turnkey and cash-flowing multi-family complexes across the United States as well as other tax lien/deed certificates secured by real estate. We believe that moving away from the traditional way of investing in real estate will allow an underserved market of investors to participate in large real estate investment opportunities, with limited to no red-tape as a cooperative group. Addressing this financial barrier as a cooperative group, we plan on expanding this cooperative model in hopes that it will be adopted by each individual investor on a personal level.

The Company’s corporate offices are located at 5900 Balcones Street, Suite 100, Austin, Texas 78731. The Company believes that the space currently available will be sufficient to accommodate its operations as described herein and for the foreseeable future.

The Company is offering, through this Offering Circular, a limited number of shares of Common Stock in the Company to a select group of qualified investors (the “Investors”) as described herein. The Company is authorized to issue additional classes of Common Stock from time to time pursuant to other offering materials containing financial terms and conditions that may differ from those set forth herein. As of the date set forth hereof, the Company is offering Common Stock in one (1) class only. The Company’s investment objective and strategy regarding the Securities are set forth below, and investors are directed to such materials. The Company may, from time to time, refine or change the Company’s strategy without prior notice to, or approval by, the Shareholders.

All dollar amounts refer to US dollars unless otherwise indicated.

The Company has 10,000,000,000 shares of Class A Common Stock authorized with 893,724,520 shares

of Class A Common Stock issued and outstanding as of the date of this Offering Circular. Through this offering, we intend to issue 20,000,000 shares of Common Stock for offering to the public, which represents additional shares of our Class A Common Stock. We may endeavor to sell all 20,000,000 shares of Class A Common Stock. The price at which we offer these shares is fixed at $0.25 per share for the duration of the offering. There is no arrangement to address the possible effect of the offering on the price of the stock. The Company will receive all proceeds from the sale of the stock.

## **THE OFFERING**

### **Company**

Consumer Cooperative Group, Inc, an Oregon. Cooperative formed on January 27, 2017. The Company's website URL is https://www.ccg.coop

### **Corporate Address**

5900 Balcones St STE 100, Austin, Texas 78731

### **Description of Business**

Consumer Cooperative Group, Inc an Oregon Cooperative

### **Type of Security Offering**

Class A Common Stock

### **Offering Price**

$0.25 per Share

### **Target Amount of Offering**

20,000 Class A Common Stocks ($5,000)

### **Maximum Amount of Offering**

20,000,000 Class A Common Stocks ($5,000,000)

### **Minimum Investment per Investor**

$500 (2,000 shares)

### **Offering Costs**

We estimate that the costs of this offering will be approximately two thousand dollars ($200,000), including costs for attorney's and accounting fees.

### **Term of Offering**

Subject to earlier termination described below, this offering will terminate not later than March 3, 2024, unless extended by us for up to an additional 30 days and may be terminated by us earlier without prior, notice and before all of the Shares are sold.

### **Escrow of Proceeds**

Proceeds from this offering will be placed in escrow with Thread Bank. If for any reason the minimum proceeds are not deposited into escrow on or before March 3, 2024, this offering will terminate with no Shares being sold, investment commitments will be cancelled, and the funds will be returned to investors, without interest and without deduction therefrom.

### **Selling Commissions**

The Shares will be sold by management who will receive no selling commissions or remuneration for sale of the Shares.

### **Closings**

If we reach the target offering amount ($5,000) prior to the offering deadline, we will continue to sell the Shares on a first come first served basis up to the maximum offering and will conduct the first of multiple closings of the offering early, if we provide notice about the new offering deadline at least five business days prior (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).

### **Use of Proceeds**

Net proceeds from this offering will be allocated as needed to prepare to commence operations.

### **Risk Factors**

The Shares offered hereby are speculative and involve a high degree of risk and immediate dilution and should not be purchased by investors who cannot afford the loss of their entire investment. Each prospective investor should carefully consider the significant risk factors inherent in and affecting our business and this offering, including those set forth under the heading “RISK FACTORS” below.

### **Cautionary Statement Regarding Forward-Looking Statements**

This Offering Circular contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements may be identified by the use of words such as 'will,' 'believes,' 'plans,' 'estimates,' 'anticipates,' 'expects,' 'intends,' 'hope,' 'aim,' 'aspire,' or words of similar import. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under Item 3 'Summary and Risk Factors' in this Offering Circular. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or results of operations.

The forward-looking statements speak only as of the date on which they are made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Consequently, you should not place undue reliance on forward-looking statements.

## RISK FACTORS

An investment in our shares of Common Stock involves a high degree of risk and many uncertainties. You should carefully consider the specific factors listed below, together with the cautionary statement that follows this section and the other information included in this Offering Circular, before purchasing our shares in this offering. If one or more of the possibilities described as risks below actually occur, our operating results and financial condition would likely suffer and the trading price, if any, of our shares could fall, causing you to lose some or all of your investment. The following is a description of what we consider the key challenges and material risks to our business and an investment in our securities.

### Development Stage Business

Consumer Cooperative Group, Inc. was incorporated on January 27, 2017, in the State of Oregon and commenced operations on January 27, 2017. Accordingly, the Company has only a limited history upon which an evaluation of its prospects and future performance can be made. Furthermore, some Directors, Officers and Key Employees have little to no operating experience or history. Past performance of any Director, Officer or Key Employee or the success of the President in any similar venture is no assurance of future success.

The Company’s proposed operations are subject to all business risks associated with new enterprises. The likelihood of the Company’s success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the expansion of a business, operation in a competitive industry, and the continued development of advertising, promotions, and a corresponding customer base. There is a possibility that the Company could sustain losses in the future or fail to even operate profitably.

### Limited Operating History and Capital

The Company has a limited operating history upon which investors may base an evaluation of its performance; therefore, the Company is still subject to all of the risk’s incident to the creation and development of a new business. The Company plans to conduct closings of sales of shares of its Common Stock as subscriptions are received. If less than $5,000,000 is received from the sale of its

Common Stock, the Company may have insufficient cash to implement its business plans and investors who purchase shares of its Common Stock shall be at heightened risk of loss of their investments.

### General Economic Conditions

The financial success of the Company may be sensitive to adverse changes in general economic conditions in the United States, such as recession, inflation, unemployment, and interest rates, and overseas, such as currency fluctuations. Such changing conditions could reduce demand in the

marketplace for the Company's products. Management believes that the impending growth of the market, mainstream market acceptance and the targeted product line of the Company will insulate the Company from excessive reduced demand. Nevertheless, the Company has no control over these changes.

Adverse changes in global and domestic economic conditions or a worsening of the United States economy could materially adversely affect us. Our sales and performance depend significantly on consumer confidence and discretionary spending, which are still under pressure from United States and global economic conditions. A worsening of the economic downturn and decrease in consumer spending, especially discretionary spending for nonessential products and services, may adversely impact our sales, ability to market our services and products, build customer loyalty, or otherwise implement our business strategy and further diversify the geographical concentration of our operations.

The Company has not established significant revenues or operations that provides financial stability in the long term and without significant revenues the Company will not realize its plans on the projected timetable in order to reach sustainable or profitable operations. Any material deviation from the Company's timetable could require that the Company seek additional capital. Additional capital may not be available at reasonable cost or that it would not materially dilute the investment of investors in this Offering if additional capital were obtained.

### Managing Growth

The Company expects to expand its operations by setting up a financial cooperative network throughout the United States. The anticipated growth could place a significant strain on the Company's management and operational and financial resources. Effective management of the anticipated growth shall require expanding the Company's management and financial controls, hiring additional appropriate personnel as required and developing additional expertise by existing management personnel. However, Consumer Cooperative Group, Inc. may not be able to effectively implement these, or other measures designed to increase the Company's capabilities to manage such anticipated growth or to do so in a timely and cost-effective manner. Moreover, management of growth is especially challenging for a Company with a short operating history and limited financial resources and the failure to effectively manage growth could have a material adverse effect on the Company's operations.

### Dependence on Key Personnel and Management

In the early stages of development, the Company's business will be significantly dependent on the Company's management team. The Company's success will be particularly dependent upon its CEO & President on an individual and or collective basis. The loss of any one of these individuals could have a material adverse effect on the Company. Although the Company does not currently maintain a key- man life insurance policy insuring the life of its key executives, the Company intends to apply for such a life insurance policy upon the qualification of this Offering Circular. See Item 10 Directors, Executive Officers, and Significant Employees, contained herein.

### Inadequacy of Funds

Gross offering proceeds of $5,000,000 may be realized. Management believes that such proceeds will capitalize and sustain the Company sufficiently to allow for the implementation of the Company's business plans. If only a fraction of this Offering is sold, or if certain assumptions contained in management's business plans prove to be incorrect, the Company may have inadequate funds to fully develop its business and may need additional financing or other capital investment to fully implement the Company's business plans.

# Risks Associated with Expansion

The Company plans on expanding its business through the introduction of a cooperative real estate investment pooling portal web and mobile application. Any expansion of operations the Company may undertake will entail risks. Such actions may involve specific operational activities, which may negatively impact the profitability of the Company. Consequently, Shareholders must assume the risk that (i) such expansion may ultimately involve expenditures of funds beyond the resources available to the Company at that time, and (ii) management of such expanded operations may divert management's attention and resources away from its existing operations, all of which factors may have a material adverse effect on the Company's present and prospective business activities.

# Customer Base and Market Acceptance

The Company's customer base for this cooperative model is, the underserved investors class, which include middle-class workers and low-income workers. The early adopters of this will be families with young kids, teenage kids, young adults, and college students which will allow them to get an early start in real estate investing at an affordable option. This profile meets the description of small communities around the world and is nowhere near exhausted. Business opportunities are usually unreachable for the majority of our communities mainly for the lack funds, opportunity misrepresentation in the real estate industry or even legislative restrictions such as it being mandatory to being a qualified investor. The rules have changed, and access is now available, and this access has opened a new market for what the society defines as least savvy or retail investors. The cooperative business will seek out these individuals and through careful training and education will be able get these individual up to speed on the basics of investing. This method will allow the cooperative business to target each demographic and one by one start the process of leveling the playing field in the real estate and financial industries. The distribution method via the cooperative's website and mobile application will serve as a valuable resource for financial education and other tools to maintain market acceptance. While the Company believes it can further develop the existing customer base and develop a new customer base through the marketing and promotion of its web application, the inability of the Company to further develop such a customer base could have a material adverse effect on the Company. Although the Company believes that its product matrix and its interactive e-commerce website offer advantages over competitive companies and products, the Company's products and e-commerce website may not attain a degree of market acceptance on a sustained basis or generate revenues sufficient for sustained profitable operations.

# Changes in Consumer Behavior Could Reduce Profitability

The Company's customers could change their behavior and purchase patterns in unpredictable ways. The Company's success therefore depends on its ability to successfully predict and adapt to changing consumer behavior outside, as well as inside the United States. Moreover, the Company must often invest substantial amounts in product research and development before the Company learns the extent to which products will earn consumer acceptance. If the Company's products and services do not achieve sufficient consumer acceptance, the Company's revenue may decline and adversely affect the profitability of the business.

# Competition

The Company's cooperative model faces many competitors such as RealtyShares.com and other like companies. This website in particular is the base model of all the other similar competitors with the minimum investment being different across each site. RealtyShares.com is made up of a Senior leadership team, an Advisory Board, Board Members, and Investors. The firm is supported by a world- class of investors which they fall under the classification of accredited investors. They are addressing some of the

social, cultural, legal, political, economic, and technological needs based on the current legislative changes with Securities and Exchange Commission. As for the ability to impact laws or legislation I did not find anything to support other than them providing a platform to solicit investment funds for real estate acquisitions. We believe there is no significant competitive advantage because even though their market is addressing both accredited and non-accredited investors their minimum investment is $5k which will not appeal or is reachable for some non-accredited investors. They possess the buying power by leveraging the amount investors looking to participate along with the high dollar amount minimum and this gives them an edge in the market regarding the investment goal of the project. Their set-up is based on diversification, cash-flow and transparency and state that owning real estate will and has outperformed the stock market 2:1 since 2000. To date they have funded over 550 projects, returned over $59.7 million of principal back to investors and currently have over 92,000 investors registered and of the registered investors there is no distinction between the accredited and non-accredited classification of its investors. Overall, they offer the investor the ability to optimize their portfolio with diversified real estate offerings by choosing the asset type, offering type, geographical location, and targeted returns goals. While there does exist some current competition, Management believes that the Company's services are demographically well positioned, top quality and unique in nature while offering greater value for the public. The expertise of management combined with the innovative nature of its marketing approach, set the Company apart from its competitors. However, there is the possibility that new competitors could seize upon the Company's business model and produce competing products or services with similar focus. Likewise, these new competitors could be better capitalized than the Company, which could give them a significant advantage. There is the possibility that the competitors could capture significant market share of the Company's intended market.

## Trends in Consumer Preferences and Spending

The Company's operating results may fluctuate significantly from period to period as a result of a variety of factors, including purchasing patterns of customers, competitive pricing, debt service and principal reduction payments and general economic conditions. The Company may not be successful in marketing any of its services or that the revenues from the sale of such services will be significant. Consequently, the Company's revenues may vary by quarter and the Company's operating results may experience fluctuations that will impede appreciation and slow the Company's growth.

## Potential Fluctuations in Quarterly Revenue

Significant annual and quarterly fluctuations in the Company's revenue may be caused by, among other factors, the volume of revenues generated by the Company, the timing of new product or service announcements and releases by the Company and its competitors in the marketplace, and general economic conditions. The Company's level of revenues and profits, in any fiscal period, may be significantly higher or lower than in other fiscal periods, including comparable fiscal periods. The Company's expense levels are based, in part, on its expectations as to future revenues.

As a result, if future revenues are below expectations, net income or loss may be disproportionately affected by a reduction in revenues, as any corresponding reduction in expenses may not be proportionate to the reduction in revenues. As a result, the Company believes that period-to-period comparisons of its results of operations may not necessarily be meaningful and should not be relied upon as indications of future performance.

## Risks of Borrowing

If the Company incurs indebtedness, a portion of its cash flow will have to be dedicated to the payment of principal and interest on such indebtedness. Typical loan agreements also might contain restrictive

covenants, which may impair the Company’s operating flexibility. Such loan agreements would also provide for default under certain circumstances, such as failure to meet certain financial covenants. A default under a loan agreement could result in the loan becoming immediately due and payable and, if unpaid, a judgment in favor of such lender which would be senior to the rights of the shareholders of the Company. A judgment creditor would have the right to foreclose on any of the Company’s assets resulting in a material adverse effect on the Company’s business, operating results, or financial condition.

### **Unanticipated Obstacles to Execution of the Business Plan**

The Company’s business plans may change significantly. Many of the Company’s potential business endeavors are capital intensive and may be subject to statutory or regulatory requirements. Management believes that the Company’s chosen activities and strategies are achievable considering current economic and legal conditions with the skills, background, and knowledge of the Company’s principals and advisors. Management reserves the right to make significant modifications to the Company’s stated strategies depending on future events.

### **Management Discretion as to Use of Proceeds**

The net proceeds from this Offering will be used for the purposes described under Item 6 “Use of Proceeds to Issuer.” The Company reserves the right to use the funds obtained from this Offering for other similar purposes not presently contemplated which it deems to be in the best interests of the Company and its shareholders in order to address changed circumstances or opportunities. As a result of the foregoing, the success of the Company will be substantially dependent upon the discretion and judgment of Management with respect to application and allocation of the net proceeds of this Offering. Investors for the Securities offered hereby will be entrusting their funds to the Company’s Management, upon whose judgment and discretion the investors must depend.

### **Lack of Management Control by Investors**

As of December 31, 2022, the Company’s principal Shareholders owned approximately 97.71% of the Company’s outstanding Common Stock. Upon completion of this Offering, the Company’s principal Shareholders will own approximately 96.96% of the issued and outstanding Common Stock and will be able to continue to control the Company. Investors will become Shareholders of the Company but cannot take part in the management or control of the Company. The Company, CEO, President, and Officers have wide latitude in making investment decisions. The Investors do not have such rights. However, Investors will have the ability to control the Company’s Board of Directors by a Shareholder vote. The Company may require any Shareholder, at any time, to withdraw, in whole or in part, from the Company.

### **Return of Profits**

The Company intends to retain any initial future earnings to fund operations and expand the Company’s business. A Shareholder will be entitled to receive profits proportionate to the amount of shares of Common Stock held by that Shareholder. The Company’s Board of Directors will determine a profit distribution plan based upon the Company’s results of operations, financial condition, capital requirements and other circumstances.

### **No Assurances of Protection for Proprietary Rights; Reliance on Trade Secrets**

In certain cases, the Company may rely on trade secrets to protect intellectual property, proprietary

technology, and processes, which the Company has acquired, developed, or may develop in the future. There is a risk that secrecy obligations may not be honored or that others will not independently develop similar or superior products or technology. The protection of intellectual property and/or proprietary technology through claims of trade secret status has been the subject of increasing claims and litigation by various companies both in order to protect proprietary rights as well as for competitive reasons even where proprietary claims are unsubstantiated. The prosecution of proprietary claims or the defense of such claims is costly and uncertain given the uncertainty and rapid development of the principles of law pertaining to this area. The Company, in common with other firms, may also be subject to claims by other parties regarding the use of intellectual property, technology information and data, which may be deemed proprietary to others.

## Legal and Regulatory Compliance

Failure to comply with applicable laws and regulations could harm our business and financial results. The Company intends to develop and implement policies and procedures designed to comply with all applicable federal and state laws, accounting and reporting requirements, tax rules and other regulations and requirements, including but not limited to those imposed by the SEC.

In addition to potential damage to our reputation and brand, failure to comply with the various laws and regulations, as well as changes in laws and regulations or the way they are interpreted or applied, may result in civil and criminal liability, damages, fines and penalties, increased cost of regulatory compliance and restatements of our financial statements. Future laws or regulations, or the cost of complying with such laws, regulations, or requirements, could also adversely affect our business and results of operations.

## Projections: Forward Looking Information

Management has prepared projections regarding the Company's anticipated financial performance. The Company's projections are hypothetical and based upon a presumed financial performance of the Company, the addition of a sophisticated and well-funded marketing plan, and other factors influencing the business of the Company. The projections are based on Management's best estimate of the probable results of operations of the Company, based on present circumstances, and have not been reviewed by the Company's independent accountants or auditors. These projections are based on several assumptions, set forth therein, which Management believes are reasonable. Some assumptions, upon which the projections are based, however, invariably will not materialize due the inevitable occurrence of unanticipated events and circumstances beyond Management's control. Therefore, actual results of operations will vary from the projections, and such variances may be material. Assumptions regarding future changes in sales and revenues are necessarily speculative in nature. In addition, projections do not and cannot consider such factors as general economic conditions, unforeseen regulatory changes, the entry into the Company's market of additional competitors, the terms and conditions of future capitalization, and other risks inherent to the Company's business. While Management believes that the projections accurately reflect possible future results of the Company's operations, those results cannot be guaranteed.

## Technology Risks

### Rapid Technological Changes May Adversely Affect the Company's Business

The ability of the Company to remain competitive may depend in part upon its ability to develop new and enhanced new products, services, or distribution and to introduce these products or services in a timely and cost-effective manner. In addition, product and service introductions or enhancements by the Company's competitors, or the use of other technologies could cause a decline in sales or loss of market acceptance of the Company's existing products and services.

The success of the Company in developing, introducing, selling, and supporting new and enhanced products or services depends upon a variety of factors, including timely and efficient completion of service and product design and development, as well as timely and efficient implementation of product and service offerings. Because new product and service commitments may be made well in advance of sales, new product, or service decisions must anticipate changes in the industries served. The Company may not be successful in selecting, developing, and marketing new products and services or in enhancing its existing products or services. Failure to do so successfully may adversely affect the Company's business, financial condition, and results of operations.

## Dependence on Computer Infrastructure

The Company relies on Internet and computer technology to market and sell its products and services. Therefore, an Internet or major computer failure would adversely affect the performance of the Company. The Company presently has limited redundancy systems, relies on third party back up facilities and only a limited disaster recovery plan. Despite the implementation of network security measures by the Company, its servers may be vulnerable to computer viruses, physical or electronic break-ins and similar disruptive problems which could lead to interruptions, delays, or stoppages in service to users of the Company's services and products which could cause a material adverse effect on the Company's business, operations, and financial condition.

## Website Security Risks

If the security measures the Company plans to use to protect the personal information of its website users, such as credit card numbers, are ineffective it could result in a reduction in revenues from decrease customer confidence, an increase in operating expenses, as well as possible liability and compliance costs.

Any breach in the Company's website security, whether intentional or unintentional, could cause our users to lose their confidence in our website and as a result stop using the website. This would result in reduced revenues and increased operating expenses, which would impair the Company from achieving profitability. Additionally, breaches of our users' personal information could expose the Company to possible liability as any involved user, or users may choose to sue the Company. Breaches resulting in disclosure of users' personal information may also result in regulatory fines for noncompliance with online privacy rules and regulations.

The Company plans to rely on encryption and authentication technology licensed from third parties whose area of expertise is to provide secure transmission of confidential information.

We believe that as a result of advances in computer capabilities, new discoveries in the field of cryptography and other developments, a compromise or breach of our security precautions may occur. A compromise in the Company's proposed security for its computer systems could severely harm our business because a party who is able to circumvent our proposed security measures could misappropriate proprietary information, including customer credit card information, or cause interruptions in the operation of our website. The Company may be required to spend significant funds and other resources to protect against the threat of security breaches or to alleviate problems caused by these breaches. However, protection may not be available at a reasonable price, or at all. Concerns regarding the security of e-commerce and the privacy of users may also inhibit the growth of the Internet as a means of conducting commercial transactions in general. The Company's users may have these concerns as well and this may result in a reduction in revenues and increase in our operating expenses, which would prevent us from achieving profitability.

# Website Functionality

If the software on the Company's website contains undetected errors, the Company could lose the confidence of users, resulting in loss of customers and a reduction of revenue.

The Company's online systems, including but not limited to its websites, software applications and online sales for services and products, could contain undetected errors or 'bugs' that could adversely affect their performance. The Company plans to regularly update and enhance all sales, websites and other online systems, as well as introduce new versions of our software products and applications. The occurrence of errors in any of these may cause the Company to lose market share, damage our reputation and brand name, and reduce our revenues.

# Risks Related to The Offering Limited Transferability and Liquidity

To satisfy the requirements of certain exemptions from registration under the Securities Act, and to conform with applicable state securities laws, each investor must acquire his/her/its Securities for investment purposes only and not with a view towards distribution. Consequently, certain conditions of the Securities Act may need to be satisfied prior to any sale, transfer, or other disposition of the Securities. Some of these conditions may include a minimum holding period, availability of certain reports, including financial statements from the Company, limitations on the percentage of Securities sold and the way they are sold. The Company can prohibit any sale, transfer, or disposition unless it receives an opinion of counsel provided at the holder's expense, in a form satisfactory to the Company, stating that the proposed sale, transfer or other disposition will not result in a violation of applicable federal or state securities laws and regulations. No public market exists for the Securities and no market is expected to develop. Consequently, owners of the Securities may have to hold their investment indefinitely and may not be able to liquidate their investments in the Company or pledge them as collateral for a loan in the event of an emergency.

# Broker - Dealer Sales of Securities

The Company's Securities are not presently included for trading on any exchange, and there can be no assurances that the Company will ultimately be registered on any exchange. The NASDAQ Stock Market, Inc. has recently enacted certain changes to the entry and maintenance criteria for listing eligibility on the NASDAQ Small Cap Market. The entry standards require at least $4 million in net tangible assets or $750,000 net income in two of the last three years. The proposed entry standards would also require a public float of at least 1 million shares, $5 million value of public float, a minimum bid price of $2.00 per share, at least three market makers, and at least 300 shareholders. The maintenance standards (as opposed to entry standards) require at least $2 million in net tangible assets or $500,000 in net income in two of the last three years, a public float of at least 500,000 shares, a $1 million market value of public float, a minimum bid price of $1.00 per share, at least two market makers, and at least 300 shareholders.

The Company may never qualify for inclusion on the NASDAQ System or any other trading market until such time as the principal holders of Common Stock deem it necessary. As a result, the Company's Common Stock are covered by a Securities and Exchange Commission rule that opposes additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors. For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser's written agreement to the transaction prior to the sale. Consequently, the rule may affect the ability of broker-dealers to sell the Company's Securities and will also affect the ability of holders of the Securities to sell their Securities in the secondary market.

# The Requirements of Being a Public Entity

The requirements of being a public entity and sustaining our growth may strain our resources. As a public entity, we will be subject to an ongoing reporting regime including reports required by the Exchange Act of 1934. These reporting requirements may place a strain on our systems and resources. We will be implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. In addition, sustaining our growth will also require us to commit additional management, operational and financial resources to identify new professionals to join our firm and to maintain appropriate operational and financial systems to adequately support expansion. These activities may divert management's attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We expect to incur significant additional annual expenses related to these steps and, among other things, additional Directors' and Officers' liability insurance, director fees, reporting requirements of the SEC, transfer agent fees, hiring additional accounting, legal and administrative personnel, increased auditing and legal fees and similar expenses.

## Long Term Nature of the Investment

An investment in the Securities may be long term and illiquid. As discussed above, the offer and sale of the Securities will not be registered under the Securities Act or any foreign or state securities laws by reason of exemptions from such registration, which depends in part on the investment intent of the investors. Prospective investors will be required to represent in writing that they are purchasing the Securities for their own account for long-term investment and not with a view towards resale or distribution. Accordingly, purchasers of Securities must be willing and able to bear the economic risk of their investment for an indefinite period. It is likely that investors will not be able to liquidate their investment in the event of an emergency.

## Compliance with Securities Laws

The Securities are being offered for sale in reliance upon certain exemptions from the registration requirements of the Securities Act, applicable Oregon State Securities Laws, and other applicable securities laws. If the sale of Securities were to fail to qualify for these exemptions, purchasers may seek rescission of their purchases of Securities. If several purchasers were to obtain rescission, the Company would face significant financial demands, which could adversely affect the Company as a whole, as well as any non-rescinding purchasers.

## Determination of the Offering Price

The offering price of the Common Stock has been arbitrarily established by the Company, considering such matters as the state of the Company's business development, the general condition of the industry in which the Company operates, the amount of funds sought from this Offering and the number of shares the Board of Directors is willing to issue in order to raise such funds. Accordingly, there is no relationship between the price of the Offering and the assets, earnings or book value of the Company, the market value of the Company's Common Stock or any other recognized criteria of value. As such, the price does not necessarily indicate the current value of the Company's Common Stock and should not be regarded as an indication of any future market price of the Company's stock.

## Lack of Firm Underwriter

The Securities are offered on a 'best efforts' basis by the Company without compensation. The Company

may, in the future, engage the services of certain FINRA registered broker-dealers to market the securities on a “best efforts” basis which enter into Participating Broker-Dealer Agreements with the Company; however, the Company has not entered into any agreement with any FINRA registered broker-dealer. Accordingly, there is no assurance that the Company, or any FINRA broker-dealer, will sell the maximum Securities offered or any lesser amount.

Because there is no public trading market for our Common Stock, you may not be able to resell your shares.

We intend to register all shares sold though this offering. We intend to apply to have our Class A Common Stock quoted on the OTC Markets or like service. This process takes at least 60 days, and the application must be made on our behalf by a market maker. Our stock may be listed or traded only to the extent that there is interest by broker-dealers in acting as a market maker. Despite our best efforts, it may not be able to convince any broker/dealers to act as market-makers and make quotations on the OTC Markets or like service. We may consider pursuing a listing on the OTC Markets or like service after this registration becomes effective and we have completed our offering.

If our Class A Common Stock becomes listed and a market for the stock develops, the actual price of our shares will be determined by prevailing market prices at the time of the sale.

A market for our Class A Common Stock may not develop. Even if a market develops for our Common Stock, the trading of securities on the OTC Markets or like service is often sporadic and investors may have difficulty buying and selling our shares or obtaining market quotations for them, which may have a negative effect on the market price of our Common Stock. You may not be able to sell your shares at their purchase price or at any price at all. Accordingly, you may have difficulty reselling any shares you purchase from the selling security holders.

Investing in our company is highly speculative and could result in the entire loss of your investment.

Purchasing the offered shares is highly speculative and involves significant risk. The offered shares should not be purchased by any person who cannot afford to lose their entire investment. Our business objectives are also speculative, and it is possible that we would be unable to accomplish them. Our shareholders may be unable to realize a substantial or any return on their purchase of the offered shares and may lose their entire investment. For this reason, each prospective purchaser of the offered shares should read this prospectus and all its exhibits carefully and consult with their attorney, business and/or investment advisor.

Investing in our company may result in an immediate loss because buyers will pay more for our Common Stock than what the pro rata portion of the assets are worth.

We have only been recently formed and have only a limited operating history with limited earnings; therefore, the price of the offered shares is not based on any data. The offering price and other terms and conditions regarding our shares have been arbitrarily determined and do not bear any relationship to assets, earnings, book value or any other objective criteria of value. No investment banker, appraiser or other independent third party has been consulted concerning the offering price for the shares or the fairness of the offering price used for the shares.

The arbitrary offering price of $0.25 per share as determined herein is substantially higher than the net tangible book value per share of our Class A Common Stock. Our assets do not substantiate a share price of $0.25. This premium in share price applies to the terms of this offering. The offering price will not change for the duration of the offering even if we obtain a listing on any exchange or become quoted on

the OTC Markets.

We have 10,000,000,000 Class A Common Shares authorized of which only 893,724,520 shares are currently issued and outstanding and only maximum of 913,724,520 shares will be issued and outstanding after this offering terminates. Our management could, with the consent of the existing shareholders, issue substantially more shares, causing a large dilution in the equity position of our current shareholders.

We do not anticipate paying dividends in the foreseeable future, so there will be less ways in which you can make a gain on any investment in us.

We have never paid dividends and do not intend to pay any dividends for the foreseeable future. To the extent that we may require additional funding currently not provided for in our financing plan, our funding sources may prohibit the declaration of dividends. Because we do not intend to pay dividends, any gain on your investment will need to result from an appreciation in the price of our Common Stock. There will therefore be fewer ways in which you are able to make a gain on your investment.

#### **You may face significant restriction on the resale of your shares due to state “Blue Sky” laws.**

Each state has its own securities laws, often called “blue sky” laws, which (1) limit sales of securities to a state’s residents unless the securities are registered in that state or qualify for an exemption from registration, and (2) govern the reporting requirements for broker-dealers doing business directly or indirectly in the state. Before a security is sold in a state, there must be a registration in place to cover the transaction, or it must be exempt from registration. The applicable broker-dealer must also be registered in that state.

We do not know whether our securities will be registered or exempt from registration under the laws of any state. A determination regarding registration will be made by those broker-dealers, if any, who agree to serve as market makers for our Common Stock. We have not yet applied to have our securities registered in any state and will not do so until we receive expressions of interest from investors resident in specific states after they have viewed this Prospectus. We will initially focus our offering within the state of TEXAS and will rely on exemptions found under TEXAS Law. There may be significant state blue-sky law restrictions on the ability of investors to sell, and on purchasers to buy, our securities. You should therefore consider the resale market for our Common Stock to be limited, as you may be unable to resell your shares without the significant expense of state registration or qualification.

#### **Need for Additional Financing**

Assuming all shares are sold in this Offering Subscription, we believe that the net proceeds from this agreement, together with its projected cash flow from operations, shall be sufficient to fund the operations of the Company as currently conducted for up to 18 months. Such belief, however, cannot give rise to an assumption that the Company’s cost estimates are accurate or that unforeseen events would not occur that would require the Company to seek additional funding to meet its operational needs. In addition, the Company may not generate sufficient cash flow from operations to implement the Company’s business objectives. As a result, the Company may require substantial additional financing in order to implement its business objectives.

The Company may not be able to obtain additional funding when needed, or that such funding, if available, shall be available on terms acceptable to the Company. In the event that the Company’s operations do not generate sufficient cash flow, or the Company cannot acquire additional funds if and when needed, the Company may be forced to curtail or cease its activities which would likely result in the loss to investors of all or a substantial portion of their investments.

### Corporate profit

Business confidence, reflected by the level of corporate profit in the United States, affects businesses' demand for rental space. Rental space contracts for office and other commercial purposes generally span several years. When corporate profit increases, businesses are more confident in their ability to service long-term contracts and are thus more likely to demand additional commercial real estate. Corporate profit is expected to decrease in 2020.

### Office rental vacancy

The office rental vacancy rate measures the amount of available office units that are not occupied in a given year. As the Commercial Leasing industry derives revenue from those that rent the units from operators, the lower the office rental vacancy rate, the better it is for operators. The office rental vacancy rate is expected to rise in 2020.

### Management & Organizational Plan

The business will be fully managed and maintained by the founder, Mr. Tanen Andrews. The company will at times call upon various contractors or consultants for marketing, accounting, maintenance, repair, consulting, legal matters, and any other professional tasks. Under his direction, the company has planned the following organization plan:

A good team that truly adds value is not just a group of high performing individuals but a balanced team with complementary skill sets and a culture that allows them to work together to make the most effective decisions for our organization. While the leadership from the top is crucial, the participation of every team member is also essential for effectiveness. We are confident that the team we will attract will continue to execute in a timely manner the business plan presented.

### Staffing Plan

| Number of Employees per Position | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Founder | 1 | 3 | 3 | 3 | 3 |
| Accounting | 0 | 2 | 2 | 3 | 3 |
| Legal | 0 | 1 | 1 | 2 | 2 |
| Total Employees | 1 | 6 | 6 | 8 | 8 |

### Staff Wages

| Employees | Yearly | Monthly | Bi Weekly | Weekly |
| --- | --- | --- | --- | --- |
| Founder | $40,000.00 | $3,333.33 | $1,538.46 | $769.23 |
| Sr Accountant | $75,000.00 | $6,250.00 | $2,884.62 | $1,442.31 |
| Legal | $100,000.00 | $8,333.33 | $3,846.15 | $1,923.08 |

### Human Resources Expenditures

| Employees | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Founder | $40,000.00 | $120,000.00 | $120,000.00 | $120,000.00 | $120,000.00 |
| Accounting | $0.00 | $150,000.00 | $150,000.00 | $225,000.00 | $225,000.00 |
| Legal | $0.00 | $100,000.00 | $100,000.00 | $200,000.00 | $200,000.00 |
| TOTALS | $40,000.00 | $370,000.00 | $370,000.00 | $545,000.00 | $545,000.00 |

## Financial Projections

The Company will have expenses as it moves to scale operations. It's important that the company estimate these expenses accurately and then plan on obtaining sufficient capital. Even with the best of research, however, expanding the business has a way of costing more or less than anticipated. The company has made allowances for surprise expenses, called contingencies to account for the unforeseeable. After careful research and talking to others who have started similar businesses to get a good idea of how much to allow for contingencies, and careful market research, the Company projects distribution of capitalization in the amount recorded below to operate and sustain the business for the first years of operations and beyond.

### Use of Proceeds

The company will invest the capital for startup operations in the following manner:

The above represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. The amounts and timing of any expenditure will vary depending on the amount of cash generated by our operations, and the rate of growth of our business. If an unforeseen event occurs or business conditions change, we may use the proceeds of this offering differently than as described in this business plan prospectus.

### Financial Projections

The following is the company's financial revenue and expense projections. Together they constitute a reasonable estimate of our company's financial future. More importantly, the projections through the financial plan will improve our insight into the inner financial workings of our company.

### Financial Projections

| Month | Total Membership Units Sold | Min. Amount Invested Per Investor | Yearly Dues | Total Revenue | Total Amount Invested |
| --- | --- | --- | --- | --- | --- |
| Year 1 |  |  |  |  |  |
| Month 1 | 83 | $4,900.00 | 120 | $2,091.67 | $418,333.33 |
| Month 2 | 83 | $4,900.00 | 120 | $4,183.33 | $836,666.67 |
| Month 3 | 83 | $4,900.00 | 120 | $6,275.00 | $1,255,000.00 |
| Month 4 | 83 | $4,900.00 | 120 | $8,366.67 | $1,673,333.33 |
| Month 5 | 83 | $4,900.00 | 120 | $10,458.33 | $2,091,666.67 |
| Month 6 | 83 | $4,900.00 | 120 | $12,550.00 | $2,510,000.00 |
| Month 7 | 83 | $4,900.00 | 120 | $14,641.67 | $2,928,333.33 |
| Month 8 | 83 | $4,900.00 | 120 | $16,733.33 | $3,346,666.67 |
| Month 9 | 83 | $4,900.00 | 120 | $18,825.00 | $3,765,000.00 |
| Month 10 | 83 | $4,900.00 | 120 | $20,916.67 | $4,183,333.33 |
| Month 11 | 83 | $4,900.00 | 120 | $23,008.33 | $4,601,666.67 |
| Month 12 | 83 | $4,900.00 | 120 | $25,100.00 | $5,020,000.00 |
| Year 2 |  |  |  |  |  |

| Month 13 | 834 | $1,400.00 | 120 | $31,438.40 | $6,287,680.00 |
| --- | --- | --- | --- | --- | --- |
| Month 14 | 834 | $1,400.00 | 120 | $69,215.20 | $7,555,360.00 |
| Month 15 | 834 | $1,400.00 | 120 | $113,330.40 | $8,823,040.00 |
| Month 16 | 834 | $1,400.00 | 120 | $163,784.00 | $10,090,720.00 |
| Month 17 | 834 | $1,400.00 | 120 | $220,576.00 | $11,358,400.00 |
| Month 18 | 834 | $1,400.00 | 120 | $283,706.40 | $12,626,080.00 |
| Month 19 | 834 | $1,400.00 | 120 | $353,175.20 | $13,893,760.00 |
| Month 20 | 834 | $1,400.00 | 120 | $428,982.40 | $15,161,440.00 |
| Month 21 | 834 | $1,400.00 | 120 | $511,128.00 | $16,429,120.00 |
| Month 22 | 834 | $1,400.00 | 120 | $599,612.00 | $17,696,800.00 |
| Month 23 | 834 | $1,400.00 | 120 | $694,434.40 | $18,964,480.00 |
| Month 24 | 834 | $1,400.00 | 120 | $795,595.20 | $20,232,160.00 |

### Year 3

| Month 25 | 8334 | $130.00 | 120 | $111,578.30 | $22,315,660.00 |
| --- | --- | --- | --- | --- | --- |
| Month 26 | 8334 | $130.00 | 120 | $233,574.10 | $24,399,160.00 |
| Month 27 | 8334 | $130.00 | 120 | $365,987.40 | $26,482,660.00 |
| Month 28 | 8334 | $130.00 | 120 | $508,818.20 | $28,566,160.00 |
| Month 29 | 8334 | $130.00 | 120 | $662,066.50 | $30,649,660.00 |
| Month 30 | 8334 | $130.00 | 120 | $825,732.30 | $32,733,160.00 |
| Month 31 | 8334 | $130.00 | 120 | $999,815.60 | $34,816,660.00 |
| Month 32 | 8334 | $130.00 | 120 | $1,184,316.40 | $36,900,160.00 |
| Month 33 | 8334 | $130.00 | 120 | $1,379,234.70 | $38,983,660.00 |
| Month 34 | 8334 | $130.00 | 120 | $1,584,570.50 | $41,067,160.00 |
| Month 35 | 8334 | $130.00 | 120 | $1,800,323.80 | $43,150,660.00 |
| Month 36 | 8334 | $130.00 | 120 | $2,026,494.60 | $45,234,160.00 |

### Year 4

| Month 37 | 13,334 | $100.00 | 120 | $240,838.64 | $48,167,728.00 |
| --- | --- | --- | --- | --- | --- |
| Month 38 | 13,334 | $100.00 | 120 | $496,345.12 | $51,101,296.00 |
| Month 39 | 13,334 | $100.00 | 120 | $766,519.44 | $54,034,864.00 |
| Month 40 | 13,334 | $100.00 | 120 | $1,051,361.60 | $56,968,432.00 |
| Month 41 | 13,334 | $100.00 | 120 | $1,350,871.60 | $59,902,000.00 |
| Month 42 | 13,334 | $100.00 | 120 | $1,665,049.44 | $62,835,568.00 |
| Month 43 | 13,334 | $100.00 | 120 | $1,993,895.12 | $65,769,136.00 |
| Month 44 | 13,334 | $100.00 | 120 | $2,337,408.64 | $68,702,704.00 |
| Month 45 | 13,334 | $100.00 | 120 | $2,695,590.00 | $71,636,272.00 |
| Month 46 | 13,334 | $100.00 | 120 | $3,068,439.20 | $74,569,840.00 |
| Month 47 | 13,334 | $100.00 | 120 | $3,455,956.24 | $77,503,408.00 |
| Month 48 | 13,334 | $100.00 | 120 | $3,858,141.12 | $80,436,976.00 |

### Year 5

| Month 49 | 14,668 | $100.00 | 120 | $418,319.50 | $83,663,900.80 |
| --- | --- | --- | --- | --- | --- |
| Month 50 | 14,668 | $100.00 | 120 | $852,773.63 | $86,890,825.60 |

| Month 51 | 14,668 | $100.00 | 120 | $1,303,362.38 | $90,117,750.40 |
| --- | --- | --- | --- | --- | --- |
| Month 52 | 14,668 | $100.00 | 120 | $1,770,085.76 | $93,344,675.20 |
| Month 53 | 14,668 | $100.00 | 120 | $2,252,943.76 | $96,571,600.00 |
| Month 54 | 14,668 | $100.00 | 120 | $2,751,936.38 | $99,798,524.80 |
| Month 55 | 14,668 | $100.00 | 120 | $3,267,063.63 | $103,025,449.60 |
| Month 56 | 14,668 | $100.00 | 120 | $3,798,325.50 | $106,252,374.40 |
| Month 57 | 14,668 | $100.00 | 120 | $4,345,722.00 | $109,479,299.20 |
| Month 58 | 14,668 | $100.00 | 120 | $4,909,253.12 | $112,706,224.00 |
| Month 59 | 14,668 | $100.00 | 120 | $5,488,918.86 | $115,933,148.80 |
| Month 60 | 14,668 | $100.00 | 120 | $6,084,719.23 | $119,160,073.60 |

## Pro Forma

| Category | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Labor Expenses | $40,000.00 | $370,000.00 | $370,000.00 | $545,000.00 | $545,000.00 |
| Legal / Closing Costs | $4,078.78 | $106,624.47 | $292,062.84 | $574,510.43 | $931,085.62 |
| Payment Processing Fees | $4,078.78 | $106,624.47 | $292,062.84 | $574,510.43 | $931,085.62 |
| Regulatory Expenses | $1,631.51 | $42,649.79 | $116,825.13 | $229,804.17 | $372,434.25 |
| Maintenance, Repairs & Renovations | $40,787.75 | $1,066,244.65 | $2,920,628.35 | $5,745,104.29 | $9,310,856.19 |
| Marketing | $12,236.33 | $319,873.40 | $876,188.51 | $1,723,531.29 | $2,793,256.86 |
| Insurance ($1K / month / $1M in coverage) | $13,000.00 | $130,000.00 | $1,300,000.00 | $1,300,000.00 | $1,300,000.00 |
| Investor Payouts | $12,236.33 | $319,873.40 | $876,188.51 | $1,723,531.29 | $2,793,256.86 |
| TOTAL OPERATING EXPENSES | $128,049.46 | $2,461,890.16 | $7,043,956.16 | $12,415,991.89 | $18,976,975.40 |
| Rental Income | $163,150.00 | $4,264,977.60 | $11,682,512.40 | $22,980,416.16 | $37,243,423.78 |
| TOTAL REVENUE | $163,150.00 | $4,264,977.60 | $11,682,512.40 | $22,980,416.16 | $37,243,423.78 |
| TOTAL EBITDA (WITHOUT INITIAL INVESTMENT) | $35,100.54 | $1,803,087.44 | $4,638,556.24 | $10,564,424.27 | $18,266,448.38 |

| Category | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Labor Expenses AS % OF EXPENSES | 31.24% | 15.03% | 5.25% | 4.39% | 2.87% |
| Legal / Closing Costs AS % OF EXPENSES | 3.19% | 4.33% | 4.15% | 4.63% | 4.91% |
| Payment Processing Fees AS % OF EXPENSES | 3.19% | 4.33% | 4.15% | 4.63% | 4.91% |
| Regulatory Expenses AS % OF EXPENSES | 1.27% | 1.73% | 1.66% | 1.85% | 1.96% |
| Maintenance, Repairs & Renovations AS % OF EXPENSES | 31.85% | 43.31% | 41.46% | 46.27% | 49.06% |
| Marketing AS % OF EXPENSES | 9.56% | 12.99% | 12.44% | 13.88% | 14.72% |
| Insurance ($1K / month / $1M in coverage) AS % OF EXPENSES | 10.15% | 5.28% | 18.46% | 10.47% | 6.85% |
| Investor Payouts AS % OF EXPENSES | 9.56% | 12.99% | 12.44% | 13.88% | 14.72% |

| Category | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Labor Expenses AS % OF REVENUE | 24.52% | 8.68% | 3.17% | 2.37% | 1.46% |
| Legal / Closing Costs AS % OF REVENUE | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |

| Payment Processing Fees AS % OF REVENUE | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| --- | --- | --- | --- | --- | --- |
| Regulatory Expenses AS % OF REVENUE | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
| Maintenance, Repairs & Renovations AS % OF REVENUE | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
| Marketing AS % OF REVENUE | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Insurance ($1K / month / $1M in coverage) AS % OF REVENUE | 7.97% | 3.05% | 11.13% | 5.66% | 3.49% |
| Investor Payouts AS % OF REVENUE | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| TOTAL OPERATING EXPENSES AS % OF REVENUE | 78.49% | 57.72% | 60.29% | 54.03% | 50.95% |
| Rental Income AS % OF REVENUE | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
| NET PROFIT MARGINS (WITHOUT INITIAL INVESTMENT) | 21.51% | 42.28% | 39.71% | 45.97% | 49.05% |

## Conclusion

Consumer Cooperative Group Inc management is confident that the company can achieve its conservative financial projections, generating a gross revenue in excess of $500,000 in year one following the startup of the business. In addition, management has carefully considered its market, potential customer base, and its ability to grow its sales average to capture market share of the total population in our area of business. With our projected numbers, and the total market share and revenue in the industry, we confidently project an over $1 billion (10% cap rate) entity value in year five.

As owners, the Managers' commitment is to take personal accountabilities for all financial debt. The Company has taken the necessary precautions to ensure the business is fully capitalized and has addressed all financial shortfalls to ensure a successful business expansion.

In all the above we intend to communicate our ability to create a valued real estate investment cooperative business that improves our consumers' lives. All the above promotional tools that we have mentioned throughout the plan shall be well integrated and utilized in tandem so as to maximize their effect.

Entrepreneurs tend to paint any business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. The Company Managers, as business owners, have a vested stake and financial commitment in the success of this business. The Company has taken all precautions to validate the Company business and financial models, focusing on realistic projections. If you have any questions, please contact us directly.

# **PART IV OF OFFERING STATEMENT**  
**SUBSCRIPTION AGREEMENT**

# **CONSUMER COOPERATIVE GROUP INC., A COOPERATIVE  
CLASS A COMMON STOCK  
REGULATION OF SUBSCRIPTION AGREEMENT**

Investing in securities represented by shares of Class A common stock (“**Shares**”) of CONSUMER COOPERATIVE GROUP INC., (the “**Company**”) involves significant risks. This investment is suitable only for persons who can afford to lose their entire investment and such investment could be illiquid for an indefinite period of time. No public market currently exists for the Shares, and if a public market develops following this offering, it may not continue.

The Shares have not been registered under the Securities Act of 1933, as amended (the “**Securities Act**”), or any state securities or blue-sky laws and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and state securities or blue-sky laws. Although an offering statement has been filed with the Securities and Exchange Commission (the “**SEC**”), that offering statement does not include the same information that would be included in a registration statement under the Securities Act. The Shares have not been approved or disapproved by the SEC, any state securities commission or other regulatory authority, nor have any of the foregoing authorities passed upon the merits of this offering or the adequacy or accuracy of the offering circular or any other materials or information made available to subscriber in connection with this offering, through the online website platform https://www.investinccg.com, (the “**Platform**” or “**Portal**”) or the SEC’s EDGAR website at www.sec.gov.

No sale may be made to persons in this offering who are not “accredited investors” if the aggregate purchase price is more than 10% of the greater of such investors’ annual income or net worth. The Company is relying on the representations and warranties set forth by each subscriber in this Subscription Agreement and the other information provided by subscriber in connection with this offering to determine compliance with this requirement.

Prospective investors may not treat the contents of the Subscription Agreement, the offering circular or any of the other materials available (collectively, the “**Offering Materials**”) or any prior or subsequent communications from the Company or any of its affiliates, officers, employees or agents as investment, legal or tax advice. In making an investment decision, investors must rely on their own examination of the Company and the terms of this offering, including the merits and the risks involved. Each prospective investor should consult the investor’s own counsel, accountant and other professional advisor as to investment, legal, tax and other related matters concerning the investor’s proposed investment.

The Company reserves the right in its sole discretion and for any reason whatsoever to modify, amend and/or withdraw all or a portion of the offering and/or accept or reject in whole or in part any prospective investment in the Shares or to allot to any prospective investor less than the amount of Shares such investor desires to purchase.

Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the purchase of the Shares shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

This agreement (“**Subscription Agreement**,” or “**Agreement**”) is made as of the date set forth below by and between the undersigned (“**Subscriber**”) and the Company and is intended to set forth certain representations, covenants and agreements between Subscriber and the Company with respect to the

offering (the “Offering”) for sale by the Company of the Shares as described in the Company’s Offering Circular dated ______________, 2023 (the “Offering Circular”), a copy of which has been delivered to Subscriber. The Shares are also referred to herein as the “Securities.”

## SUBSCRIPTION

1. Subscription. Subject to the terms and conditions hereof, Subscriber hereby irrevocably subscribes for and agrees to purchase from the Company the number of Shares set forth on the Subscription Agreement Signature Page, and the Company agrees to sell such Shares to Subscriber at a purchase price of $0.25 per Share for the total amount set forth on the Subscription Agreement Signature Page (the “Purchase Price”), subject to the Company’s right to sell to Subscriber such lesser number of Shares as the Company may, in its sole discretion, deem necessary or desirable.

2. Delivery of Subscription Amount; Acceptance of Subscription; Delivery of Securities. Subscriber understands and agrees that this Subscription is made subject to the following terms and conditions:

   a. Contemporaneously with the execution and delivery of this Agreement through the Platform, Subscriber shall pay the Purchase Price for the Shares in the form of ACH debit transfer, wire transfer, or credit card. Your subscription is irrevocable. The escrow agent (the “Escrow Agent”) appointed by the Company will maintain all such funds for Subscriber’s benefit until the earliest to occur of: (i) the Closing (as defined below), (ii) the rejection of such subscription or (iii) the termination of the Offering by the Company in its sole discretion;

   b. Payment of the Purchase Price shall be made by Subscriber via the Portal, and shall be held in escrow by the Escrow Agent until Closing, after which time, the funds tendered by Subscriber will be available to the Company;

   c. This subscription shall be deemed to be accepted only when this Agreement has been signed by an authorized officer or agent of the Company (the “Closing”), and the deposit of the payment of the Purchase Price for clearance will not be deemed an acceptance of this Agreement;

   d. The Company shall have the right to reject this subscription, in whole or in part;

   e. The payment of the Purchase Price (or, in the case of rejection of a portion of the Subscriber’s subscription, the part of the payment relating to such rejected portion) will be returned promptly, without interest or deduction, if Subscriber’s subscription is rejected in whole or in part or if the Offering is withdrawn or canceled;

   f. Subscriber shall receive notice and evidence of the digital entry (or other manner of record) of the number of the Shares owned by Subscriber reflected on the books and records of the Company and verified by the company’s transfer agent (the “Transfer Agent”), which books and records shall bear a notation that the Shares were sold in reliance upon Regulation A;

   g. The Offering is described in the Offering Circular, that is available through the online website platform https://www.investincg.com, or the SEC’s EDGAR website at www.sec.gov. Please read this Agreement, the Offering Circular, and the Certificate of

Incorporation of CONSUMER COOPERATIVE GROUP INC. (the “Certificate”). While they are subject to change, as described below, the Company advises you to print and retain a copy of these documents for your records.

## REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER

By executing this Subscription Agreement, Subscriber (and, if Subscriber is purchasing the Securities subscribed for hereby in a fiduciary capacity, the person or persons for whom Subscriber is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of the Closing:

3. Requisite Power and Authority. Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement. All action on Subscriber’s part required for the lawful execution and delivery of this Subscription Agreement has been or will be effectively taken prior to the Closing. Upon execution and delivery, this Subscription Agreement will be a valid and binding obligation of Subscriber, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (b) as limited by general principles of equity that restrict the availability of equitable remedies.

4. Investment Representations. Subscriber understands that the Securities have not been registered under the Securities Act. Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber’s representations contained in this Agreement. Subscriber is purchasing the Shares for Subscriber’s own account. Subscriber has received and reviewed this Agreement, The Offering Circular and the Certificate. Subscriber and/or Subscriber’s advisors, who are not affiliated with and not compensated directly or indirectly by the Company or an affiliate thereof, have such knowledge and experience in business and financial matters as will enable them to utilize the information which they have received in connection with the Offering to evaluate the merits and risks of an investment, to make an informed investment decision and to protect Subscriber’s own interest in connection with an investment in the Shares.

5. Illiquidity and Continued Economic Risk. Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that Subscriber is able to bear the economic risk of losing Subscriber’s entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and has taken full cognizance of and understands all of the risk factors relating to the purchase of Securities.

6. Accredited Investor Status or Investment Limits. Subscriber represents that either:

   a. Subscriber is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act; or

   b. The Purchase Price set out below, on the signature page of this Agreement, together with any other amounts previously used to purchase Securities in this Offering, does not

exceed 10% of the greater of the Subscriber's annual income or net worth. Subscriber represents that to the extent it has any questions with respect to its status as an accredited investor, or the application of the investment limits, it has sought professional advice.

7. Additional Subscriber Information; Payment Information. Subscriber agrees to provide any additional documentation the Company may reasonably request, including documentation as may be required by the Company to form a reasonable basis that the Subscriber qualifies as an "accredited investor" as that term is defined in Rule 501 under Regulation D promulgated under the Act, or otherwise as a "qualified purchaser" as that term is defined in Regulation A promulgated under the Act, or as may be required by the securities administrators or regulators of any state, to confirm that the Subscriber meets any applicable minimum financial suitability standards and has satisfied any applicable maximum investment limits. Subscriber acknowledges that Subscriber's responses to questions on the Platform are true, complete and accurate in all respects. Payment information provided by Subscriber through the Platform is true, accurate and correct and such payment information shall be deemed to be a part of this Agreement as if and to the same extent that such information was set forth herein.

8. Company Information. Subscriber has read the Offering Circular filed with the SEC, including the section titled "Risk Factors." Subscriber understands that the Company is subject to all the risks that apply to early-stage companies, whether or not those risks are explicitly set out in the Offering Circular. Subscriber acknowledges that no representations or warranties have been made to Subscriber, or to Subscriber's advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.

9. Neither the Company nor the Platform is an Investment Advisor. Subscriber understands that neither the Company nor the Platform is registered under the Investment Company Act of 1940 or the Investment Advisers Act of 1940.

10. Valuation. Subscriber acknowledges that the price of the Securities was set by the Company on the basis of the Company's internal valuation and no warranties are made as to value. Subscriber further acknowledges that future offerings of Securities may be made at lower valuations, with the result that the Subscriber's investment will bear a lower valuation.

11. Domicile. Subscriber maintains Subscriber's domicile (and is not a transient or temporary resident) at the address shown on the signature page and provided on the Platform.

12. Power of Attorney. Any power of attorney of the Subscriber granted in favor of the Company has been executed by the Subscriber in compliance with the laws of the state, province or jurisdiction in which such agreements were executed.

13. No Brokerage Fees. Other than commissions payable to Rialto Markets, a licensed broker-dealer, as placement agent, there are no claims for brokerage commission, finders' fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or related documents based on any arrangement or agreement binding upon Subscriber. Subscriber will indemnify and hold the Company harmless against any liability, loss or expense (including, without limitation, reasonable attorneys' fees and out-of-pocket expenses) arising in connection with any such claim.

14. Foreign Investors. If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any

invitation to subscribe for the Securities or any use of this Subscription Agreement, including (a) the legal requirements within its jurisdiction for the purchase of the Securities, (b) any foreign exchange restrictions applicable to such purchase, (c) any governmental or other consents that may need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber's subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

15. Terms and Conditions of the Platform. Subscriber acknowledges that it has read, understands and agrees to the terms and conditions, privacy policy and disclaimers on the Platform.

16. Transfer Restrictions. Subscriber acknowledges and agrees that the Shares may be subject to restrictions on transfer pursuant to applicable federal and state laws, the Company's Certificate, and this Agreement. The Shares may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the Shares under the Securities Act or an opinion of legal counsel satisfactory to the Company that such registration is not required or unless the Shares are sold pursuant to Rule 144 or Rule 144A of the Securities Act. The Shares shall bear a digital or physical restrictive legend in substantially the following form (and a stop transfer order may be placed against transfer of such certificates or instruments):

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND THEY ARE SUBJECT TO SIGNIFICANT RESTRICTIONS ON TRANSFER PURSUANT TO APPLICABLE FEDERAL AND STATE LAWS, THE COMPANY'S ARTICLES OF INCORPORATION AND THE SUBSCRIPTION AGREEMENT PURSUANT TO WHICH THESE SECURITIES WERE ORIGINALLY SOLD. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A OF SUCH ACT.

ANY PURPORTED TRANSFER IN VIOLATION OF SUCH PROVISIONS SHALL BE VOID, AB INITIO.

## SURVIVAL; INDEMNIFICATION

17. Survival; Indemnification. All representations, warranties and covenants contained in this Agreement and the indemnification contained herein shall survive (a) the acceptance of this Agreement by the Company, (b) changes in the transactions, documents and instruments described herein which are not material or which are to the benefit of Subscriber, and (c) the death or disability of Subscriber. Subscriber acknowledges the meaning and legal consequences of the representations, warranties and covenants herein, and that the Company has relied upon such representations, warranties and covenants in determining Subscriber's qualification and suitability to purchase the Securities. Subscriber hereby agrees to indemnify, defend and hold harmless the Company, its officers, directors, employees, agents and controlling persons, from and against any and all losses, claims, damages, liabilities, expenses (including attorneys' fees and disbursements), judgments or amounts paid in settlement of actions arising out of or resulting from the untruth of any representation of Subscriber herein or the breach of any warranty or covenant herein by Subscriber. Notwithstanding the foregoing, however, no representation, warranty, covenant or acknowledgment made herein by Subscriber shall in any manner be deemed to constitute a waiver of any rights granted to it under the Securities Act or state

securities laws.

## MISCELLANEOUS PROVISIONS

1. 18. Caption and Headings. The Article and Section headings throughout this Agreement are for convenience of reference only and shall in no way be deemed to define, limit or add to any provision of this Agreement.
2. 19. Notification of Changes. Subscriber agrees and covenants to notify the Company immediately upon the occurrence of any event prior to the consummation of this Offering that would cause any representation, warranty, covenant or other statement contained in this Agreement to be false or incorrect or of any change in any statement made herein occurring prior to the consummation of this Offering.
3. 20. Assignability. This Agreement is not assignable by Subscriber, and may not be modified, waived or terminated except by an instrument in writing signed by the party against whom enforcement of such modification, waiver or termination is sought.
4. 21. Binding Effect. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns, and the agreements, representations, warranties and acknowledgments contained herein shall be deemed to be made by and be binding upon such heirs, executors, administrators, successors, legal representatives and assigns.
5. 22. Obligations Irrevocable. The obligations of Subscriber shall be irrevocable, except with the consent of the Company, until the consummation or termination of the Offering.
6. 23. Entire Agreement; Amendment. This Agreement states the entire agreement and understanding of the parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written. No amendment of the Agreement shall be made without the express written consent of the parties.
7. 24. Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect any other provision hereof, which shall be construed in all respects as if such invalid or unenforceable provision were omitted.
8. 25. Notices. All notices and communications to be given or otherwise made to the Subscriber shall be deemed to be sufficient if sent by electronic mail to such address as set forth for the Subscriber at the records of the Company (or that you submitted to us via the Platform). You shall send all notices or other communications required to be given hereunder to the Company via email at \_\_\_\_\_ (with a copy to be sent concurrently via prepaid certified mail to: CONSUMER COOPERATIVE GROUP INC, 2355 State Street Ste 101 Salem OR 97301. Any such notice or communication shall be deemed to have been delivered and received on the first business day following that on which the electronic mail has been sent (assuming that there is no error in delivery). As used in this Section, '**business day**' shall mean any day other than a day on which banking institutions in the State of Delaware are legally closed for business.
9. 26. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

27. Digital Signatures. Digital (“electronic”) signatures, often referred to as an “e-signature”, enable paperless contracts and help speed up business transactions. The 2001 E-Sign Act was meant to ease the adoption of electronic signatures. The mechanics of this Subscription Agreement’s electronic signature include your signing this Agreement below by typing in your name, with the underlying software recording your IP address, your browser identification, the timestamp, and a securities hash within an SSL encrypted environment. This electronically signed Subscription Agreement will be available to both you and the Company, as well as any associated brokers, so they can store and access it at any time, and it will be stored and accessible on the Platform and hosting provider, including backups. You and the Company each hereby consents and agrees that electronically signing this Agreement constitutes your signature, acceptance and agreement as if actually signed by you in writing. Further, all parties agree that no certification authority or other third-party verification is necessary to validate any electronic signature; and that the lack of such certification or third-party verification will not in any way affect the enforceability of your signature or resulting contract between you and the Company. You understand and agree that your e-signature executed in conjunction with the electronic submission of this Subscription Agreement shall be legally binding and such transaction shall be considered authorized by you. By signing electronically below, you agree your electronic signature is the legal equivalent of your manual signature on this Subscription Agreement and you consent to be legally bound by this Subscription Agreement’s terms and conditions. Alternatively, you may opt-out of this provision by printing a copy of this Agreement, signing it manually and returning it to the Company and, if your subscription is accepted, the Company will manually countersign it and return a countersigned copy to you via email.

28. Consent to Electronic Delivery of Tax Documents. Please read this disclosure about how the Company will provide certain documents that it is required by the Internal Revenue Service (the “IRS”) to send to you (“Tax Documents”) in connection with your Shares. A Tax Document provides important information you need to complete your tax returns. Tax Documents include Form 1099 and/or Schedule K-1. Occasionally, the Company is required to send you CORRECTED Tax Documents. Additionally, the Company may include inserts with your Tax Documents. The Company is required to send Tax Documents to you in writing, which means in paper form. When you consent to electronic delivery of your Tax Documents, you will be consenting to delivery of Tax Documents, including these corrected Tax Documents and inserts, electronically instead of in paper form. By executing this Agreement on the Platform, you are consenting in the affirmative that the Company may send Tax Documents to you electronically and acknowledging that you are able to access Tax Documents from the site. If you subsequently withdraw consent to receive Tax Documents electronically, a paper copy will be provided. Your consent to receive the Tax Documents electronically continues for every tax year until you withdraw your consent. You can withdraw your consent before the Tax Document is furnished by mailing a letter including your name, mailing address, effective tax year, and indicating your intent to withdraw consent to the electronic delivery of Tax Documents to: CONSUMER COOPERATIVE GROUP INC, 2355 State Street Ste 101 Salem OR 97301. If you withdraw consent to receive Tax Documents electronically, a paper copy will be provided. You Must Keep Your E-mail Address Current with the Company. You must promptly notify the Company of a change of your email address. If your mailing address, email address, telephone number or other contact information changes, you may also provide updated information by contacting the Company at: CONSUMER COOPERATIVE GROUP INC, 2355 State Street Ste 101 Salem OR 97301 or support@ccg.coop.

29. Electronic Delivery of Information. Subscriber and the Company each hereby agrees that all current and future notices, confirmations and other communications regarding this Agreement and future communications in general between the parties, may be made by email, sent to the

email address of record as set forth in this Agreement or as otherwise from time to time changed or updated and disclosed to the other party, without necessity of confirmation of receipt, delivery or reading, and such form of electronic communication is sufficient for all matters regarding the relationship between the parties. If any such electronically sent communication fails to be received for any reason, including but not limited to such communications being diverted to the recipients spam filters by the recipients email service provider, or due to a recipient's change of address, or due to technology issues by the recipients service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and received. No physical, paper documents will be sent to you, and if you desire physical documents then you agree to be satisfied by directly and personally printing, at your own expense, the electronically sent communication(s) and maintaining such physical records in any manner or form that you desire.

[SIGNATURE PAGE TO FOLLOW]

INVESTOR CERTIFIES THAT HE HAS READ THIS ENTIRE SUBSCRIPTION AGREEMENT AND THAT EVERY STATEMENT MADE BY THE INVESTOR HEREIN IS TRUE AND COMPLETE.

THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE. THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED. THE INFORMATION PRESENTED IN THE OFFERING MATERIALS WAS PREPARED BY THE COMPANY SOLELY FOR THE USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THIS OFFERING. NO REPRESENTATIONS OR WARRANTIES ARE MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN ANY OFFERING MATERIALS, AND NOTHING CONTAINED IN THE OFFERING MATERIALS IS OR SHOULD BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY.

THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT, IN WHOLE OR IN PART, FOR ANY REASON OR FOR NO REASON, ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE DOLLAR AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE. EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

IN WITNESS WHEREOF, this Subscription Agreement is executed as of the ______ day of ________, 2023.

Number of Shares Subscribed For:

Total Purchase Price: $

Signature of Investor:

Name of Investor:

Address of Investor:

Electronic Mail Address:

Investor’s SS# or Tax ID#:

ACCEPTED BY: CONSUMER COOPERATIVE GROUP INC

Signature of Authorized Signatory: _________________________

Name of Authorized Signatory: Tanen Andrews

Date of Acceptance: _______________, 2023.

[Signature Page to Subscription Agreement]

**CONSUMER COOPERATIVE GROUP, INC.**

**FINANCIAL STATEMENTS**

**DECEMBER 31, 2021 AND 2020**

# CONSUMER COOPERATIVE GROUP, INC.

DECEMBER 31, 2021 AND 2020

# CONTENTS

|  | PAGE |
| --- | --- |
| Report of Independent Registered Public Accounting Firm | 1 |
| Financial Statements |  |
| Balance Sheets | 2 |
| Statements of Operations | 3 |
| Statements of Stockholders' Equity | 4 |
| Statements of Cash Flows | 5 |
| Notes to Financial Statements | 6 |

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

**Certified Public Accountants and Advisors  
A PCAOB Registered Firm  
817-721-0341 bartoncpafirm.com Cypress, Texas**

# Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders

# ***Opinion on the Financial Statements***

We have audited the accompanying balance sheets of Consumer Cooperative Group, Inc as of December 31, 2021 and 2020, and the related statements of operations, stockholders’ equity, and cash flows for the three ended December 31, 2021 and 2020, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of Consumer Cooperative Group, Inc as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America.

# ***Basis for Opinion***

These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to Consumer Cooperative Group, Inc in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Consumer Cooperative Group, Inc is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

# ***Substantial Doubt About the Entity's Ability to Continue as a Going Concern***

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has yet to generate revenue from intended operations, has a net capital deficiency, and therefore a substantial doubt exists

about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

### **Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters

We have served as Consumer Cooperative Group, Inc's auditor since 2022.

Cypress, Texas
July 29, 2022

# CONSUMER COOPERATIVE GROUP, INC.
BALANCE SHEETS

|  | December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $1,116 | $4,708 |
| Total current assets | 1,116 | 4,708 |
| Property, plant and equipment, net | 2,882 | 62,011 |
| Total assets | $3,998 | $66,719 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities |  |  |
| Note payable | $ - | $60,000 |
| Total current liabilities | - | 60,000 |
| Non-current liabilities |  |  |
| PPP Loans | - | 11,545 |
| Total non-current liabilities | - | 11,545 |
| Commitments and contingencies |  |  |
| Stockholders' equity |  |  |
| Preferred stock, $.001 par value, 50,000,000 authorized, 24,484,860 issued and outstanding December 31, 2021 and 2020, respectively | 24,485 | 24,485 |
| Common stock, $.001 par value, 1,500,000,000 authorized, 938,994,520 issued and outstanding as of December 31, 2021 and 2020, respectively | 938,995 | 938,995 |
| Additional paid-in capital | 173,029 | 128,963 |
| Subscription receivable | (270) | (270) |
| Accumulated deficit | (1,132,241) | (1,096,999) |
| Total stockholders' equity | 3,998 | (4,826) |
| Total liabilities and stockholders' equity | $3,998 | $66,719 |

See accompanying notes to financial statements.

2

# CONSUMER COOPERATIVE GROUP, INC.  
STATEMENTS OF OPERATIONS

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | $ - | $ - |
| Operating cost and expenses |  |  |
| Advertising and marketing | 4,996 | 2,471 |
| General and administrative | 89,400 | 82,899 |
| Total operating expenses | 94,396 | 85,370 |
| Net loss from operations | (94,396) | (85,370) |
| Other income (expense) |  |  |
| Interest expense | - | 75 |
| PPP loan forgiveness | 52,171 | - |
| EIDL forgiveness | - | 10,000 |
| Gain (Loss) on sale of assets | 6,983 | (29,768) |
| Total other expense | 59,154 | (19,693) |
| Net loss | $(35,242) | $(105,063) |

See accompanying notes to financial statements.

3

# CONSUMER COOPERATIVE GROUP, INC.  
STATEMENTS OF STOCKHOLDERS' EQUITY

|  | Preferred Stock |  | Common Stock |  | Additional Paid-in Capital | Subscription Receivable | Accumulated Deficit | Stockholders' Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Shares | Amount | Shares | Amount |  |  |  |  |
| Balance at December 31, 2019 | 24,484,860 | $24,485 | 938,725,000 | $938,725 | $33,119 | $ - | $(991,936) | $4,393 |
| Issuance of common stock | - | - | 269,520 | 270 | - | (270) | - | - |
| Contributions | - | - | - | - | 95,844 | - | - | 95,844 |
| Net loss | - | - | - | - | - | - | (105,063) | (105,063) |
| Balance at December 31, 2020 | 24,484,860 | $24,485 | 938,994,520 | $938,995 | $128,963 | $(270) | $(1,096,999) | $(4,826) |
| Contributions | - | - | - | - | 44,066 | - | - | 44,066 |
| Net loss | - | - | - | - | - | - | (35,242) | (35,242) |
| Balance at December 31, 2021 | 24,484,860 | $24,485 | 938,994,520 | $938,995 | $173,029 | $(270) | $(1,132,241) | $3,998 |

See accompanying notes to financial statements.

4

# CONSUMER COOPERATIVE GROUP, INC.  
STATEMENTS OF CASH FLOWS

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Cash flows from operating activities |  |  |
| Net loss | $(35,242) | $(105,063) |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| Depreciation | (871) | 1,586 |
| Loss on sale of property | - | 29,768 |
| Forgiveness of EIDL loans | (51,899) | (10,000) |
| Net cash used in operating activities | (88,012) | (83,709) |
| Cash flows from investing activities |  |  |
| Sale of property and equipment | - | (60,000) |
| Net cash used in investing activities | - | (60,000) |
| Cash flows from financing activities |  |  |
| Proceeds from PPP loan | 40,624 | 11,547 |
| Proceeds from EIDL advance | - | 10,000 |
| Disposal of property | - | (29,768) |
| Principal borrowings on note payable | - | 60,000 |
| Capital contributions | 43,796 | 95,843 |
| Net cash provided by financing activities | 84,420 | 147,622 |
| Net increase in cash and cash equivalents | (3,592) | 3,913 |
| Cash and cash equivalents, beginning of period | 4,708 | 795 |
| Cash and cash equivalents, end of period | $1,116 | $4,708 |
| Non-cash financing activities |  |  |
| PPP loans forgiveness | $51,899 | $10,000 |
| Supplemental cash flow information |  |  |
| Cash paid for interest expense | $ - | $75 |
| Cash paid for taxes | $427 | $349 |
| Non-cash investing and financing activities |  |  |
| Subscription receivable for sale of common stock | $ - | $270 |

See accompanying notes to financial statements.

5

# CONSUMER COOPERATIVE GROUP, INC  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020

# **NOTE 1: Nature of operations**

# Nature of the business

Consumer Cooperative Group, Inc. (the 'Company'), was incorporated in the State of Oregon on January 27, 2017. The Company plans to invest in turn-key, income producing single family, multifamily and mixed multifamily/commercial real estate properties within the United States of America.

# Going concern and management's plan

The financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of the date of this filing the Company has yet to generate a profit from intended operations and requires capital to develop and operate its intended business. These above matters raise substantial doubt about the Company's ability to continue as a going concern.

During the next 12 months, the Company intends to fund its operations through related party advances and debt financing. There are no assurances that management will be able to raise capital on terms acceptable to the Company. If the Company is unable to obtain sufficient amounts of additional capital, they may be required to reduce the scope of their planned development, which could harm their business, financial condition and operating results. The financial statements do not include any adjustments that might result from these uncertainties.

# Risks and uncertainties

The Company's business and operations are sensitive to general business and economic conditions in the U.S. along with local, state, and federal governmental policy decisions. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include: recession, downturn or otherwise, government policy changes, availability of a qualified human capital, consumer trends in the transportation economy, and negative press. These adverse conditions could affect the Company's financial condition and the results of its operations.

# **NOTE 2: Summary of significant accounting policies**

# Basis of presentation

The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ('U.S. GAAP') and the rules and regulations of the Securities and Exchange Commission ('SEC').

# Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.

6

# CONSUMER COOPERATIVE GROUP, INC  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020

# NOTE 2: Summary of significant accounting policies (continued)

# Cash and cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

# Concentration 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.

# Fair value of financial instruments

Certain assets and liabilities of the Company are carried at fair value under GAAP. The Company adopted Financial Accounting Standards Board ('FASB') Accounting Standards Codification ('ASC') Topic 820, Fair Value Measurements. ASC Topic 820 clarifies the definition of fair value Fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying values of the Company's accounts receivable and accounts payable approximate their fair values due to the short-term nature of these assets and liabilities.

The Company did not identify any assets or liabilities that are required to be presented on the balance sheets at fair value in accordance with ASC Topic 820.

Due to the short-term nature of all financial assets and liabilities, their carrying value approximates their fair value as of the balance sheet dates.

7

# CONSUMER COOPERATIVE GROUP, INC  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020

# NOTE 2: Summary of significant accounting policies (continued)

# Revenue recognition

The Company will recognize revenue from income producing real estate properties 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

# Accounts receivable

Accounts receivables are derived from services delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2020, the Company had no accounts receivable and determined there was no allowance for doubtful accounts necessary

# Property and equipment

Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided using the straight-line method, based on useful lives of the assets. Depreciation expense as of December 31, 2021 and 2020, is $1,586, respectively. All fixed assets are fully depreciated.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment there was no impairment as of December 31, 2021 and 2020.

# Advertising costs

Advertising costs are expensed as incurred. Advertising and marketing expenses were $4,996 and $2,471 for the years ended December 31, 2021 and 2020, respectively, which are included in advertising and marketing expenses in the statement of operations.

8

# CONSUMER COOPERATIVE GROUP, INC  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020

# NOTE 2: Summary of significant accounting policies (continued)

# Leases

The Company leases office space under leases agreement. The Company evaluates lease agreements entered into to determine its appropriate classification as an operating or capital lease for financial reporting purposes.

Under Topic 842, there would be no impact related to adoption, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases consisting of office and storage space that are one year or less.

Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered or reassessed after the adoption of Topic 842, we combine the lease and non-lease components in determining the lease liabilities and right of use ('ROU') assets.

# Income Taxes

The Company applies ASC 740 Income Taxes ('ASC 740'). Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax expense for the period, if any and the change during the period in deferred tax assets and liabilities.

ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. A tax benefit from an uncertain position is recognized only if it is 'more likely than not' that the position is sustainable upon examination by the relevant taxing authority based on its technical merit.

The Company is subject to tax in the United States ('U.S.') and files tax returns in the U.S. Federal jurisdiction and state jurisdiction. The Company is subject to U.S. Federal, state and local income tax examinations by tax authorities for all periods since Inception. The Company currently is not under examination by any tax authority.

# Recent accounting pronouncements

The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs to date, including those above, 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.

9

# CONSUMER COOPERATIVE GROUP, INC  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020

# NOTE 2: Summary of significant accounting policies (continued)

# Recent accounting pronouncements

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

# NOTE 3: Commitments and contingencies

The Company is not currently involved with and does not know of any pending or threatening litigation against the Company

# NOTE 4: Paycheck protection program loans

In May 2020, the Company entered into a Paycheck Protection Program ('PPP') loan for $11,547, with an interest rate of 1% and maturity date in May 2022. This loan is not secured. The balance of this loan was $11,547 as of December 31, 2020. On March 29, 2021, the Company received notice that the loan had been forgiven in full.

In March and April 2021, the Company entered into a Paycheck Protection Program ('PPP') loans for $20,312, respectively, with an interest rate of 1% and maturity dates in March and April 2026. This loans are not secured. On August 13 and 23, 2021, the Company received notice that the loans had been forgiven in full.

# NOTE 5: Stockholders' equity

As of December 31, 2020, the Company was authorized to issue 1,000,000,000 shares of stock, which consisted of 950,000,000 shares of par value $0.001 common stock and 50,000,000 shares of par value $0.0001 preferred stock. As of December 31, 2020, 938,994,520 shares of common stock and 24,484,860 shares of preferred stock have been issued and are outstanding.

On April 26, 2021, the Company filed an amendment and restated it's certificate of incorporation with the effect being an increase in the number of authorized shares from 950,000,000 to 1,500,000,000, consisting of 1,400,000,000 shares of common stock and 100,000,000 shares of preferred stock. As of December 31, 2021, 938,994,520 shares of common stock and 24,484,860 shares of preferred stock have been issued and are outstanding.

# NOTE 6: Subsequent events

The Company has evaluated all events that have occurred after the balance sheet date through July 29, 2022, the date these financial statements were available to be issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the accompanying financial statements.

10

# **Exhibit A**

# **Legend:**

| CAJE | Client proposed adjusting entry. |
| --- | --- |
| PAJE | Auditor proposed adjusting entry. |
| RAJE | Auditor proposed reclassifying entry. |

| # | Account | December 31, 2021 |  | Disposition |
| --- | --- | --- | --- | --- |
|  |  | DB | CR |  |
| PAJE 1 | Depreciation expense | 1,586 |  | Book |
|  | Accumulated Depreciation |  | 1,586 |  |
|  | To record annual depreciation |  |  |  |

| # | Account | December 31, 2020 |  | Disposition |
| --- | --- | --- | --- | --- |
|  |  | DB | CR |  |
| PAJE 1 | Retained Earnings | 800,000 |  | Book |
|  | Intellectual Property and Technology |  | 800,000 |  |
|  | To remove internally developed intellectual property |  |  |  |

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Consumer Cooperative Group Inc

**Legal Status:** Other

**Jurisdiction of Incorporation/Organization:** OR

**Date of Organization:** 01-27-2017

**Physical Address:** 6713 AMESBURY LANE, ROWLETT, TX, 75089

**Issuer Website:** https://ccg.coop

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

**Intermediary Name:** RIALTO MARKETS LLC

**Intermediary CIK:** 0001670539

**Intermediary File Number:** 008-69756

**Intermediary CRD Number:** 000283477

### Offering Information

**Compensation to Intermediary:** At the conclusion of the offering, the Issuer shall pay a fee of three percent (3%) of the amount raised in the offering to the intermediary.

**Financial Interest in Issuer:** The intermediary will also receive compensation in the form of securities equal to one percent (1%) of the total number of securities sold through the offering.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 20000000

**Price per Security:** $0.25

**Method for Determining Price:** Scorecard Method, Risk Summation Method, Berkus Method and the Venture Capital Method

**Target Offering Amount:** $5,000.00

**Oversubscription Accepted:** Yes

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

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

**Deadline to Reach Target Amount:** 03-05-2024

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1.00

**Total Assets (Most Recent Fiscal Year):** $3,998.00

**Total Assets (Prior Fiscal Year):** $66,719.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $1,116.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $4,708.00

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

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

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

**Short-Term Debt (Prior Fiscal Year):** $60,000.00

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

**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):** $-35,242.00

**Net Income (Prior Fiscal Year):** $-105,063.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, ALBERTA, BRITISH COLUMBIA, MANITOBA, NEW BRUNSWICK, NEWFOUNDLAND, NOVA SCOTIA, ONTARIO, PRINCE EDWARD ISLAND, QUEBEC, SASKATCHEWAN, YUKON TERRITORY, ISRAEL

### Signatures

**Issuer:** Consumer Cooperative Group Inc

**Signature:** Tanen Andrews

**Title:** Founder/CEO

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**Signature:** Tanen Andrews

**Title:** Founder/CEO

**Date:** 03-01-2023