# EDGAR Filing Document

**Accession Number:** 0001947048
**File Stem:** 0001670254-23-000107
**Filing Date:** 2023-2
**Character Count:** 265860
**Document Hash:** 04d3cee85432ca30dad39016e48ebd59
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000107.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0001670254-23-000107

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bit Body, Inc.
- **CENTRAL INDEX KEY:** 0001947048
- **IRS NUMBER:** 460974437
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31015
- **FILM NUMBER:** 23617687

**BUSINESS ADDRESS:**
- **STREET 1:** 548 MARKET ST PMB 80182
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 548 MARKET ST
- **STREET 2:** PMB 80182
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Bill Brady, Inc.

Legal status of issuer:

Form: Corporations
Jurisdiction of Incorporation/Organization: DE
Date of organization: 9/9/2013

Personal address of issuer:

548 Market St
PMB 40382
San Francisco CA 94104

Website of issuer:

https://www.mballor.com/

Name of intermediary through which the offering will be conducted:

WePunker Portal LLC

CIN number of intermediary:

0009870054

CCC file number of intermediary:

007-00055

CIN number, if applicable, of intermediary:

263855

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

5.5% of the offering amount upon a successful fundraiser, and be entitled to reimbursement for use of product third party, expenses it pays or incurs on behalf of the issuer in connection with the offering.

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

No

Type of security offered:

☐ Common Stock
☐ Preferred Stock
☐ Credit
☐ Other

If Other, describe the security offered:

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered:

90,000

Price:

$100,000

Method for determining price:

Pre-rated portion of the total principal value of $50,000. Interests will be paid in increments of $1 each investment is convertible to one share of stock as described under Item 13.

Target offering amount:

$90,000.00

Oversubscriptions accepted:

☐ Yes
☐ No

If you disclose how oversubscriptions will be allocated:

☐ Pre-ratio basis
☐ Print-come, first-served basis
☐ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

Maximum offering amount of different from target offering amounts:

$1,000,000.00

Disability to reach the target offering amount:

4/30/2022

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

Current number of employees:

8

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $1,420,134.00 | $1,215,103.00 |
| Cash & Cash Equivalents | $457,486.00 | $324,933.00 |
| Accounts Receivable | $0.00 | $0.00 |
| Short-term Debt | $606,933.00 | $687,967.00 |
| Long-term Debt | $126,628.00 | $100,000.00 |
| Non-Short-term Debt | $1,106,803.00 | $6,062,903.00 |
| Cost of Goods Sold | $1,080,537.00 | $2,476,000.00 |
| Taxes Sold | $0.00 | $0.00 |
| Net Income | $42,628.00 | ($1,078,633.00) |

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

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

## Offering Statement

Required to each question in each paragraph of this plan. Set forth each question and any notes, but not any instructions (books, in fact) or any. If disclosure is required in any question in a specific format or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the form, either side, that is inapplicable, include a cross-reference to the response to disclosure, or with the question or series of questions.

By very careful and precise in answering all questions, these bill and complete answers to that they are not outstanding under the circumstances involved. Do not discuss any future performance or other anticipated event claims you have; it is not necessary to believe that it will actually occur within the reasonable time. If any answer requiring significant information is materially inaccurate, incomplete or misleading, for Company, its management and principal shareholders may be liable to answer. Read on the information.

### THE COMPANY

1. Name of issuer
Bill Bundy, Inc.

### COMPANY ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer:
- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 10(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not complete to rely on this exemption under Section 10(d)(3) of the Securities Act as a result of a disqualification specified in Rule 1(2)(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has to acquire business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unqualified company or companies.

INSTRUCTION TO QUESTION 2: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 10(d)(3) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 2(6) of Regulation Crowdfunding?

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year joined in Director |
| --- | --- | --- | --- |
| Mike Perez | CEO | Bill Bundy, Inc. | 2012 |
| Mark Perez | CEO | Superval | 2012 |
| Robert Wilkes | Engineering Manager | Arman | 2012 |
| Ter Sheehan | CEO | Infiniti Conves | 2020 |

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

### OFFICERS OF THE COMPANY

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

| Officer | Position held | Year joined |
| --- | --- | --- |
| Mike Perez | CEO | 2012 |
| Mike Perez | Secretary | 2012 |
| Mike Perez | President | 2012 |
| Mike Perez | Treasurer | 2012 |

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

INSTRUCTION TO QUESTION 1: For purposes under Question 1, there are three issues: a problem, one problem, another, a reason or a not just financial effect, a reason for or a non-interesting effect, a reason for or a non-interesting effect, a reason for or a non-interesting effect.

### PRINCIPAL SECURITY HOLDERS

6. Provide the same and ownership level of each person, or of the most recent graduation date, who is the beneficial owner of (it) present or more of the issuer's outstanding voting security securities, calculated on the basis of voting power:

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Robert Wilkes | 1000000.0 Common Shares | 24.0 |
| Khuda Varttun | 504454.0 Preferred Shares | 24.7 |
| Mike Perez | 510000.0 Common Shares | 24.97 |

INSTRUCTION TO QUESTION 4: The above information must be presented as of a date that is no more than 100 days prior to the date of filing of this offering statement.

The information must be presented in detail and are not to be used for any other person who is not a member of the company. The information is not to be used for any other person who is not a member of the company. The information is not to be used for any other person who is not a member of the company.

### BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer.
For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan.

INSTRUCTION TO QUESTION 7: If you have a business plan, please refer to the attached Appendix A, Business Description & Plan.

### RISK FACTORS

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

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved.

These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

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

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

8. Discuss the material factors that make an investment in the issuer (preparation or risk):

Our business model resides squarely on our abilities to innovate and develop a variety of information technologies. Our industry is a highly competitive space. We need both the funding and team to continue building a product that delivers extreme value and is defensive.

We are a startup that aims to serve large retailers. There is risk that the product is not able to support the ever growing needs of a large organization which creates client and chain risk.

Our use of assumptions and estimates, though are conservative and reasonable at time of preparation, may be materially different than estimates used in forward-looking financial forecasts.

Our ecommerce business requires marketing and nurturing new customer loads and cloud deteriorate.

Our ecommerce business requires physical logistics and manufacturing that is forbidden to global markets in a variety of ways.

As we pursue an enterprise SaaS business model, our company may require additional funding as we develop.

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

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

INDIVIDUAL REQUISITION 9. And general performance and timetable will then be reached on a separate basis. An accurate report to the Company's business and the offering may detail and report the business and results to the expected and final action. No specific number of U.S. business is required to be identified.

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

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

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

If not US$50,000

Use of $0.5% Technology R&D (salaries of people on the team plus outsourced consultants), 6.5% Wefunder Fees

If not US$5,000,000

Use of 48% Technology R&D, 36% Sales and Marketing, 36% Operational Admin, Inventory, Engineering, Finance, Legal, 6.5% Wefunder Fees, 5.5% Working Capital

INDIVIDUAL REQUISITION 11. An issuer must provide a reasonable description of the items of an investment in the securities mentioned in item 10. The issuer may provide a complete description of the items of an investment in the securities mentioned in item 10. The issuer may provide a complete description of the items of an investment in the securities mentioned in item 10. The issuer may provide a complete description of the items of an investment in the securities mentioned in item 10. The issuer may provide a complete description of the items of an investment in the securities mentioned in item 10. The issuer may provide a complete description of the items of an investment in the securities mentioned in item 10.

## DELIVERY & CANCELLATIONS

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

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

12. How can an investor cancel an investment commitment?

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

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

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

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

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

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

Investor is required to receive. If a material change occurs within five business days of the maximum number of days the offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm.

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

Within five business days of cancellation of an offering by the Company, the Company will give each investor notification of the cancellation, disclose the reason for the cancellation, identify the refund amount the investor will receive, and refund the investor's funds.

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

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

## Ownership and Capital Structure

### THE OFFERING

Q. Describe the terms of the securities being offered.

To view a copy of the SAFE you will purchase, please see Appendix B, Investor Contracts.
The main terms of the SAFE are provided below.

The SAFE, the are offering securities in the form of a Simple Agreement for Future Equity ("SAFE"), which provides investors the right to preferred stock in the Company ("Preferred Stock"), when and if the Company sponsors an equity offering that involves Preferred Stock, on the standard terms offered to other investors.

Common to Preferred Equity. Based on our SAFE, when we engage in an offering of equity interests involving preferred stock, investors will receive a number of shares of preferred stock calculated using this method that results in the greater number of preferred stock:

1. the total value of the investor's investment, divided by:
   1. the price of preferred stock issued to new investors excluded by, or
   2. if the valuation for the company is more than $33,000,000.00 (the Valuation Cap), the amount invested by the investor divided by the quotient of
   3. the Valuation Cap divided by
   4. the total amount of the Company's capitalization at that time
2. for investors up to the first $1,000,000.00 of the securities, investors will receive a valuation cap of $27,000,000.00.

Additional Notes of the Preferred Cap

"Company Capitalization" means the sum, as of immediately prior to the Equity Financing, of (1) all shares of Capital Stock (on an unconverted basis) issued and outstanding, assuming revenue or conversion of all outstanding related and unvested options, warrants and other convertible securities, but excluding (4) this instrument, (5) all other Selle, and (6) convertible promissory notes; and (7) all shares of Common Stock reserved and available for future good under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

Capital Event. If there is a Liquidity Event before the expiration or termination of this instrument, the investor will, at its option, either (i) receive a cash payment equal to the Purchase Amount (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price, if the investor fails to select the cash option. "Liquidity Event" means a Change of Control or an Initial Public Offering.

Capital Profit. In a Liquidity Event or Dissolution Event, this Safe is intended to operate the standard nonparticipating Preferred Stock. The Investor's right to receive its Cash Out Amount is:

1. Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or not locally converted into Capital Stock);
2. On par with payments for other Selle and/or Preferred Stock, and if the applicable Preceds are insufficient to permit full payments to the Investor and such other Selle and/or Preferred Stock, the applicable Preceds will be distributed pro rata to the Investor and such other Selle and/or Preferred Stock in proportion to the full payments that would otherwise be due; and
3. Senior to payments for Common Stock.

### Securities Issued by the SPV

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by Wefunder Admin, LLC and is a co-owner with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result in any additional fees being charged to investors.

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

### Voting Rights

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

### Proxy to the Lead Investor

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

### Restriction on Transferability

The SPV securities are subject to restrictions on transfer, as set forth in the

Subscription Agreement and the Limited Liability Company Agreement of Wefunder SP/L LLC, and may not be transferred without the prior approval of the Company, on behalf of the SP/L.

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

See the above description at the Entry to the Lead Invoice.

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

Any provision of this instrument may be amended, waived or modified only upon the written consent of the Company and the investor.

Pursuant to authorization in the Investor Agreement between each investor and Wefunder Portal, Wefunder Portal is authorized to take the following actions with respect to the investment contract between the Company and an investor:

1. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is over-submitted.

# RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

The securities being offered may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred.

1. In the event:

2. In an accredited manner:

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

4. In a number of the family of the purchaser or the equivalent, in a case controlled by the purchaser, it is not covered by the benefit of a member of the family of the purchaser or the equivalent, or is covered with the funds in absence of the purchaser or other similar circumstances.

NOTE: The term "accredited investor" means any person who comes within any of the categories set forth in Rule 601(a) of Regulation S, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

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

# DESCRIPTION OF ISSUER'S SECURITIES

17. When other securities or classes of securities of the issuer are outstanding, describe the material terms of any other outstanding securities or classes of securities of the issuer.

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Common Stock | 2,450,000 | 1,127,798 | Yes |
| Preferred Stock | 904,971 | 904,473 | Yes |

| Class of Security | Securities Reserved for Issuance upon Exercise or Conversion |
| --- | --- |
| Warrants: |  |
| Options: | 165,522 |

Describe any other rights.

Preferred Stock has liquidation preferences over common stock. Investors in the SAFE, IFX consents, will receive Preferred Stock.

The holders of preferred stock are entitled to receive dividends when and if declared by the Board of Directors.

The holder of each share of Common Stock shall have the right to one vote for each such share, and shall be entitled to notice of any stockholders' meeting in accordance with the Bylaws of this corporation, and shall be entitled to vote upon such matters and in such manner as may be provided by law.

The holder of each share of Preferred Stock shall have the right to one vote for each share of Common Stock into which such Preferred Stock could then be converted, and with respect to such vote, such holder shall have full voting rights and powers equal to the voting rights and powers of the holders of Common Stock, and shall be entitled, notwithstanding any provision hereof, to notice of any stockholders' meeting in accordance with the Bylaws of this corporation.

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

The holders of a majority-in-interest of voting rights in the Company could limit the investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations, or cause the Company to engage in additional offerings (including potentially a public offering).

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

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

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

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

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

No.

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

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

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

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

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

21. Here are the securities being offered being issued include examples of methods for how such securities may be valued by the issuer in the future, including money investment and public options.

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

The initial amount invested in a SAPE is determined by the investor, and we do not guarantee that the SAPE will be converted into any particular number of shares of Preferred Stock. As discussed in Question 12, when we engage in an offering of equity representing Preferred Stock, investors may receive a number of shares of Preferred Stock calculated on either (1) the total value of the investor's investment, divided by the price of the Preferred Stock being issued to new investors, or (2) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company's capitalization at that time.

Because there will likely be no public market for our securities prior to an initial public offering or similar liquidity event, the price of the Preferred Stock that investors will receive, and/or the total value of the Company's capitalization, will be determined by our board of directors. Among the factors we may consider in determining the price of Preferred Stock are prevailing market conditions, our financial information, market valuations of other companies that are before to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant.

In the future, we will perform valuations of our stock (including both common stock and Preferred Stock) that take into account, as applicable, factors such as the following:

- unrelated third party valuations;

- the price at which we sell other securities in light of the relative rights, preferences and privileges of those securities;

- our results of operations, financial position and capital resources;

- current business conditions and projections;

- the marketability or lack thereof of the securities;

- the hiring of key personnel and the experience of our management;

- the introduction of new products;

- the risk inherent in the development and expansion of our products;

- our stage of development and material risks related to our business;

- the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;

- industry trends and competitive environment;

- trends in consumer spending, including consumer confidence;

- overall economic indicators, including gross domestic product, employment, inflation and interest rates; and

- the general economic outlook.

We will allocate factors such as those described above using a combination of no financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will share similar characteristics and that the Company's value will correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

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

An investor in the Company will likely hold a minority position in the Company, and thus be limited as to its ability to control or enhance the governance and operations of the Company.

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

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

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

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

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

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

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the investor will have limited or no ability to influence a potential sale of the Company's substantial position of its assets. Thus, the investor will also

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

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

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

Funds

Lender EIDL

Issue date 09/30/20

Amount 9/99,000.00

Outstanding principal plus interest 9/99,000.00 as of 09/16/22

Interest rate 3.75% per annum

Maturity date 07/22/20

Current with payments Yes

Agreements are expected in start to last 2023.

Funds

Lender Mark Penn

Issue date 09/21/22

Amount 5200,000.00

Outstanding principal plus interest 5200,000.00 as of 09/21/22

Interest rate 10.0% per annum

Maturity date 09/22/24

Current with payments Yes

If the Company retains at least $10,000 in a financing, excluding from Miles Penn, the Company shall use

7% of each fund raised to repay the principal balance outstanding and the interest as stated in this Note.

The Company covered a line of credit and had a total payable balance related to inventory purchased on the line of credit in the amount of $103,783 as of December 31st, 2021. The inventory amounts are payable within 2022 and the Company does not have any intention of closing the line of credit in the future.

In June of 2023, the Company entered into a revenue sharing agreement with another entity in exchange for an advance of $500,000. The total specified amount of $567,500 is due 5 months after the date of the agreement.

INVOICE ONLY REQUESTED: In case the credit amount must, interest rate, interest date, and any other material terms.

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

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

26. How is the issuer of any entities connected by or under contract carried with the issuer's party to any transaction does the beginning of the issuer's last fiscal year, or any currently processed transaction, where the amount received exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to close to the current offering. In which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.
3. If the issuer was incorporated or organized within the past three years, any provision of the issuer.
4. or any immediate family member of any of the foregoing persons

☑ Yes
☐ No

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

Name Mark Penn

Amount invested $100,000.00

Transaction type Proud-round

Issue date 09/06/12

Relationship Father of Founder

Name Mark Penn

Amount invested 5200,000.00

Transaction type Loan

Issue date 09/29/22

Outstanding principal plus interest 5200,000.00 as of 09/29/22

Interest rate 10.0% per annum

Maturity date 09/22/24

Current with payments Yes

Relationship Father of Founder

Adequate upon agreement

A director of the Company started a separate company called MedTaylor for which the Company agreed to supply production, measurement technology, and customer support for this new brand. The Company recognized $10,000 in deferred revenue as well as $100,000 in long-term deferred revenue.

INVOICE ONLY REQUESTED: 25. This note represents the schedule, but is not limited to any financial connection arrangement or related obligation (other than indebtedness or guarantee of).

Should not be cancelled the payment of paragraph 25, shall be determined by any other party to waive their offering given on the date of these action offering statement indicating the value calculated on which the Company is of the directors and directors thereof.

The term "investor of the funds" includes any initial, separate, period, and, parent, employees, producers, agents or

The financial condition of the issuer, including the financial condition of the issuer's common stock, is subject to the approval of the issuer's directors. The issuer's directors' equity is subject to the approval of the issuer's directors' equity.

Company is a member of a board of directors. The issuer is not a member of a board of directors. The issuer is not a member of a board of directors.

## FINANCIAL CONDITION OF THE ISSUER

01. Does the issuer have an operating history?

☐ Yes
☐ No

02. Describe the financial condition of the issuer, including, in the extent, financial, liquidity, capital, resources and historical results of operations.

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

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

#### Overview

What would the world look like if everyone could know the clothing they are buying will fit accurately before they place their order? And not just accurate, but perfect - using AI and advanced software algorithms, our patented technology scans measurement features of consumers and creates an identical digital clone of their body - all using the phone is their hands?

Our larger vision is to become the sizing and visualization standard for every online business selling apparel. This projection cannot be guaranteed.

#### Milestones

Bill Body, Inc. was incorporated in the State of Delaware in September 2012. All patents are held by Bill Body, Inc.

Since then, we have:

- • Ecommerce business is profitable with $5M+ in annual revenue
- • Backed by Y Combinator and Khosla Ventures
- • Utilizing 7+ years of data gathered to launch sizing and visualization as a service ($aaS)
- • All + computer graphics and online returns w/ the largest commercially tested fit database worldwide
- • Over 20% more accurate measurements than a professional tailor - goal to become the sizing platform for all online entities
- • Makewise implications by scanning your body and face to make ones appropriate contact

#### Historical Results of Operations

- • *American & Cross Major*. For the period ended December 31, 2021, the Company had revenues of $5,106,805 compared to the year ended December 31, 2020, when the Company had revenues of $4,983,806. Our gross margin was 43.0% in fiscal year 2021, compared to 43.4% in 2020.
- • *Swiss*. As of December 31, 2021, the Company had total assets of $1,430,594, including $437,416 in cash. As of December 31, 2020, the Company had $1,318,153 in total assets, including $524,555 in cash.
- • *Not Distributive*. The Company has had net income of $42,638 and net losses of $1,076,633 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- • *Lebanon*. The Company's liabilities totaled $1,153,833 for the fiscal year ended December 31, 2021 and $67,067 for the fiscal year ended December 31, 2020.

#### Related Party Transaction

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

#### Liquidity & Capital Resources

To date, the company has been financed with $3,400,000 in equity. $1,585,553 in debt and revenue share agreements and $2,089,995 in S&P's.

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

We will likely require additional financing in excess of the proceeds from the offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 18 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for extra-state companies, there is no guarantee that the Company will receive any investments from investors.

#### Norway & Short/Mid Term Expenses

Bill Body, Inc. cash in hand is $604,554.92, as of January 2013. Over the last three months, revenues have averaged 5,150,000/month, cost of goods sold has averaged $373,000/month, and operational expenses have averaged $300,000/month, for an average burn rate of $23,000 per month. Our intent is to be break-even in 24 - 36 months.

Our revenues fell from 2020 to 2021 largely because of COVID, we used that time to focus on market efficiency rather than scale.

Our business is investing around break even at the moment. Our plan, if we are able to successfully raise money, is to increase our overhead as we build our technology and sales for the SaaS offering.

In the mid to long term, we plan to sell our software to other companies as a SaaS product (Measurable). That product is built and we have our first customer for it, but we'll use some of these proceeds to improve it to hopefully make it more suitable.

If we raised our Bay CF maximum, we would probably do a future raise. We believe we need $3M - $5M total to get our SaaS product fully built out.

If we were to raise $3M, we would expect monthly expense to increase by about $50k / mo. In the short term (3 - 6 months), we would expect revenues to remain relatively flat.

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

FINANCIAL CONDITION OF THE ISSUER

All Body, Inc. cash in hand is $604,554.92, as of January 2013. Over the last three months, revenues have averaged 5,150,000/month, cost of goods sold has averaged $373,000/month, and operational expenses have averaged $300,000/month, for an average burn rate of $23,000 per month. Our intent is to be break-even in 24 - 36 months.

where the following: The words of the word, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result of the words, and the words of the word, are not to be a result

# FINANCIAL INFORMATION

(2) include financial statements covering the two most recently completed fiscal years on the period(s) of the year, if it is true.

Refer to Appendix C. Financial Statements

1. Miles From a daily list

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

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

Miles From
CEO

# STAKEHOLDER ELIGIBILITY

10. With respect to the issue, any predecessor of the issue, any affiliated issue, any director officer, general auditor or managing member of the issue, any beneficial owner of 20 percent or more of the issue's outstanding voting equity securities, any promoter connection with the issue in any capacity at the time of such sale, any person that has been or will be paid directly or indirectly (remuneration for solicitation of purchases in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016).

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

1. In connection with the purchase or sale of any security? ☐ Yes ☐ No
2. Involving the making of any false filing with the Commission? ☐ Yes ☐ No
3. In the case of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment advisor, funding portal or card collector of purchases of securities? ☐ Yes ☐ No

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4(4)(b) of the Securities Act (the), at the time of filing of this offering statement, warrants or rejects such person from engaging or contributing to engage in any conduct or position:

1. In connection with the purchase or sale of any security? ☐ Yes ☐ No
2. Involving the making of any false filing with the Commission? ☐ Yes ☐ No
3. In the case of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment advisor, funding portal or card collector of purchases of securities? ☐ Yes ☐ No

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

1. at the time of the filing of this offering statement bars the person from:
   1. association with an entity required by such commission, authority, agency or officer? ☐ Yes ☐ No
   2. engaging in the business of securities, insurance or banking? ☐ Yes ☐ No
   3. engaging in savings associations or credit unions activities? ☐ Yes ☐ No
2. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, nonresident or discipline conduct and for which the order was entered within the 10 year period ending on the date of the filing of this offering statement? ☐ Yes ☐ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 7(2)(a) or 7(2)(b) of the Exchange Act or Section 7(2)(a) or (b) of the Investment Advisors Act of 1940 that, at the time of the filing of this offering statement:

1. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment advisor or funding portal? ☐ Yes ☐ No
2. places (behaviors) on the activities, functions or operations of such person? ☐ Yes ☐ No
3. Is any such person from being associated with any entity or from participating in the offering of any policy, stock? ☐ Yes ☐ No

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

1. any retention based with legal provisions of the federal securities laws, including: without limitation Section 7(2)(a) of the Securities Act; Section 7(2)(b) of the Exchange Act; Section 7(2)(c) of the Exchange Act and Section 7(4)(c) of the Investment Advisors Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☐ No
2. Section 8 of the Securities Act? ☐ Yes ☐ No

(6) Is any such person suspended or expelled from membership in, or suspended or banned from association with a member of, a registered federal securities exchange or a registered solicitor or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of fraud?

☐ Yes ☐ No

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

☐ Yes ☐ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4(2)(b) of the Securities Act, or to any such person, at the time of filing of this offering statement, subject to a temporary marketing order or proprietary regulation with respect to conduct tampering the United States Postal Service to constitute a scheme of service for obtaining money or property through the mail by means of false representations?

☐ Yes ☐ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2016, then you are NOT eligible to rely on this exemption under Section 4(2)(b) of the Securities Act.

PRODUCTION TO BE A PART OF A 1 and 2 other means or terms directly or indirectly, to be made by a related or non-agency, also that a 1 and 2 of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of the Department of

In addition, we may refer to the first time of the first time of the second time of the third time of the fourth time of the fifth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time of the eighth time of the sixth time of the seventh time

OTHER MATERIAL INFORMATION

25. In addition to the information normally required to be included in this Form, include:
- (1) any other means of information presented to investors, and
- (2) such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are ready, not misleading

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

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

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

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

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

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

Tax Filings. In order to complete necessary tax filings, the SPV is required to include information about each investor who holds an interest in the SPV, including each investor's taxpayer identification number ("TIN") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIN within the center of (1) two (2) years of making their investment or (3) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIN within this time, the SPV reserves the right to withhold from any proceeds otherwise payable to the investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIN. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

AN AGREEMENT TO BE SIGNED BY: If information is provided in accordance with the terms of the SPV Subscription Agreement, the SPV will be held responsible for the payment of the investment. The SPV will be held responsible for the payment of the investment.

## ONGOING REPORTING

52. The issuer will file a report conformously with the Securities & Exchange Commission of the SEC and such the report on its website, no later than 120 days after the end of each fiscal year covered by the report.

53. Since posted, the actual report may be found on the issuer's website at: https://www.mtailer.com/roset

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

1. the issuer is required to file reports under Exchange Act Sections 1341 or 1342;
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has read more than 20 not exceed 500 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(1), including any payment in full of debt securities or any complete redemption of redeemable securities, or the issuer liquidates or discloses in accordance with such law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird MTailor SAFE Early Bird
SPV Subscription Agreement
MTailor SAFE

Appendix C: Financial Statements

Financials

Appendix D: Director & Officer Work History

Mark Penn
Miles Penn
Rafael Witten
Tol Shachar

Appendix E: Supporting Documents

Address: Penn, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100

Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird

Early Bird MTailor SAFE Early Bird

SPV Subscription Agreement

MTailor SAFE

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Mark Penn

Miles Penn

Rafael Witten

Tal Shachar

Appendix E: Supporting Documents

Pursuant to the requirements of Sections 4(a)(8) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

Bit Body, Inc.

By

Miles Penn

Founder

Pursuant to the requirements of Sections 4(a)(8) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Tal Shachar

Director
2/13/2023

Rafael Witten

Board member
2/12/2023

Miles Penn

Founder
2/12/2023

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

MTAILOR (YC S14)

## A master tailor in your phone

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

mtailor.com San Francisco CA

Software Technology Fashion Mobile

LEAD INVESTOR

**Sebastian Gil Engineer**

I'm investing in MTailor because of Miles. I've known Miles for a long time and he's one of the most intelligent and tenacious people I know. Miles is someone who won't ever give up once he's set his mind on something, which he's demonstrated in his dedication to MTailor. As for MeasureUP, it's a product that will exist. It solves a huge problem for both retailers and customers, and has the potential to expand the TAM of not just online clothing retail, but clothing retail as a whole. I believe that Miles and team can build a compelling product with the data that they've collected from their users along with their years of dedication to this problem.

Invested $25,000 this round

## Highlights

1. Profitable Ecommerce business with $5M+ in annual revenue
2. Backed by Y Combinator and Khosla Ventures
3. Utilizing 7+ years of data gathered to launch sizing and visualization as a service (SaaS)
2. Backed by Y Combinator and Khosla Ventures
3. Utilizing 7+ years of data gathered to launch sizing and visualization as a service (SaaS)
4. AI + computer graphics end online returns w/ the largest commercially tested fit database worldwide
5. 20% more accurate than a tailor - goal to become the sizing platform for all online retail
6. Metaverse implications by scanning your body and face to make ones appearance realistic
7. Industry / Marketsize
8. Founder recognized on Forbes 30 under 30 list

## Our Founder

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

Miles Penn Founder

Fashion and AI entrepreneur and YC founder with a deep analytic/AI/big data background. Stanford grad. Turned down largest Shark Tank deal ever.

The Total Addressable market for online retail is currently $15B per year, a massive number. As we integrate into mainstream, we expect a transition of consumers demanding the technology - once they've experienced the convenience of buying clothing that fits properly the first time, their expectations are raised.

## Why MeasureUp?

We've perfected the technology that retail companies need -- to create a significantly more profitable and better user experience.

## Retailers Need MeasureUP

Online clothing returns represent a $13.5B per year problem for retail sales. A significant justification for these returns is poor sizing, which makes up 70% of the data. Compare this to just 6% return rate for sizing for clothing bought in-person and it's obvious there is a problem to solve.

What would the world look like if everyone could know the clothing they are buying will fit accurately before they place their order? And not just accurate, but perfect - using AI and advanced software algorithms, our patented technology scans measurement features of consumers and creates an identical digital clone of their body -- all using the phone in their hands?

In developing this technology for mass retail distribution, we wanted to be sure it worked effectively and that we had enough data to perfect our technology.

We used our own technology solution to launch a custom clothing brand to great success. While our end vision has always been to become a major component for all online retail, our own direct to consumer brand has had its own success.

Since launching, MTailor has already fit more than 100,000 customers creating the largest commercially tested fit dataset in the world. More importantly, we're generating $5.5M annual revenue with this 'trojan horse' brand.

The Total Addressable market for online retail is currently $15B per year, a massive number. As we integrate into mainstream, we expect a transition of consumers demanding the technology - once they've experienced the convenience of buying clothing that fits properly the first time, their expectations are raised.

Companies utilizing MeasureUp will see a significant reduction in returns and happier customers, creating additional demand for MeasureUp to integrate into more and more companies as we become the standard for online clothing purchases.

# **ECOMMERCE SIZING IS AWFUL AND EXPENSIVE**

# **Returns: a $13.5bn Problem**

- Apparel ecom returns in the US alone cost retailers $13.5bn in 2021; 70% of returns are for fit
- 6% of clothing purchased in-person is returned vs. 30% online is returned

# **In-Store to Online: a $224bn Opportunity**

- Only 30% of clothing is currently purchased online; $224bn is still sold in-person in the US
- 48% of people "hate" trying on clothes in a fitting room, but 67% of people end up trying on clothing in-store

MEASUREUP

# **THERE IS A BIG GRAVEYARD OF COMPANIES THAT HAVE TRIED TO SOLVE THIS**

- ZOZO
- UPcload
- Metail
- Avametric
- Etc...

MEASUREUP

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

# **TLDR: NONE OF THEM EVER ACHIEVED A COOL, EASY, AND ACCURATE EXPERIENCE (MOSTLY VAPORWARE)**

- ZOZO: $6bn public company spent $100mm+ making the "zozosuit" - required a physical suit (expensive) and fit at launch was so bad, CEO sold ZOZO to Yahoo Japan and left
- UPcload: tech never worked, pivoted to survey sizing, eventually sold to Snap
- Metail: raised $15mm+, had 3 TC articles, never launched their "lauded" virtual fitting room (now do B2B stuff)
- Avametric: raised $15mm on the promise of a mobile fitting room that never launched, eventually merged as software arm of Gerber
- Etc...

MEASUREUP

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

# **MEASUREUP: ACCURATE VIRTUAL TRY-ON VIA PHONE SCAN**

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

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

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

MEASUREUP

30 preview of MeasureUP CEO trying on new clothes, Body and Face measured via phone; physics-based rendering / preview of clothing (realistic sizing, fit, and draping).

See brief video of the 3D model from www.angles.ovlib

# OUR VISUALIZATION IS PHYSICALLY ACCURATE, AND OUR TECH ACTUALLY WORKS

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

"State of the Art" from Amazon
"A previously 'suited art' view project"

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

MeasureUP Looks Believable
"Extremely Positive"
Medium Signing
Face-to-backing skills huge dimension of realism

# MTAILOR: THE TROJAN HORSE FOR MEASUREUP R&D

MTailor, our owned DTC custom clothing brand, was always the trojan horse to collect data and iterate on the tech and UX for MeasureUP.

We have been able to measure and receive feedback from over 100,000 paying customers through MTailor. This includes 1⁄2 inch or smaller size adjustments on dozens of measurements.

MeasureUP is built on the largest commercially tested fit dataset in the world.

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

# VIRTUALLY TRY ON CLOTHES ON YOUR 3D BODY MODEL, LAUNCHING H1 2022

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

John Tanskey
The top part of the 3D model is the 3D in the custom fashion of the 3D model. It is a 3D model that has been used to
The MeasureUP

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

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

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

Physics-based rendering of clothing (accurate sizing, fit, and draping); 3D face visualization will be ready for launch in H1 2021

$1.5T
greater apparel
market

x

20%
brought online by
MeasureUP

x

5%
average MeasureUP
platform fee

TAM of $15BN

• Apparel ecom returns in the US alone cost retailers $13.5bn in 2021

MESAUREUP

- 70% of apparel ecom returns are due to fit
- 53% of electronics in the US are currently sold online, while only 38% of apparel is sold online

# MEASUREUP HAS THE BEST TECHNOLOGY AND DATA

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

MESAUREUP

# STRONG INTEREST FROM APPLE FOR THEIR
ECOM APP PARTNERS

"Unofficially" worked with
Apple to design v1 UX of our 3D
visualization

They have already introduced
us to one multibillion dollar
company and want to introduce
us to more once our tech is
public

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

MESAUREUP

# RAISING $5MM TO BUILD OUT SALES AND CONTINUE ADVANCING OUR
TECHNOLOGY

- Business Model: free for consumers, B2B SaaS for companies that want 3D visualization and advanced sizing recommendations. Become the global sizing platform for all ecommerce stores
- R&D: launch v2 previews (faces), expand overall tech lead
- Platform Build Out: build out APIs, SDKs, and onboarding systems for partners
- Sales & Partnerships: build out a team for attracting, onboarding, and retaining partners

MESAUREUP

# APPENDIX

MEASUREUP

# COMPANIES KEEP APPROACHING US FOR MEASUREMENTS AS A SERVICE

- Custom firefighter apparel
  5200m+ revenue company
- Custom police body armor
  500m+ revenue company
- Hair wig fitting
  3000+ person company
- 3D foot scanning
  top 5 sneaker maker
- Ping Golf custom clubs
  700 person company

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

MEASUREUP

# MEASUREUP WILL KEEP EXPANDING ITS BREADTH OF TECHNOLOGY

- Foot
  Scan feet and make shoe size and style recommendations
- Hanks
  Fit engagement rings and supply All processes
- Head
  Scan heads for big jaw and hair system sizing and all processes
- Face
  Scan faces for gaseous sizing and adjustments
- Butt
  Pressy feet system to supply accurate tire size and style recommendations
- Health Metrics
  Estimate body fat percentage, muscle mass, waist size changes, etc.

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

MEASUREUP

# OUR FIRST MEASUREMENTS AS A SERVICE CUSTOMERS

- University of Utah bookstore apparel sizing
- MedTailor (custom fit healthcare scrubs)
- Made to Fit (custom clothing in Denmark)

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

MEASUREUP

GET MEASURED <15 SECONDS

1. Put Phone Down

2. Step Back 6 Feet

3. Turn Around Once

- A user can go from a download to placing an order in minutes
- Tailor-level accuracy for a true custom fit
- Remeasuring yourself (in 3 months, 1 year, 3 years) is easy and convenient, since the app (no hardware) is the only thing you need

MILLIMETER

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

# **Subscription Agreement**

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**MTailor I** (the "SPV"), a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by **Bit Body, Inc.** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

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

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

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

Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

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

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

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

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

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

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

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

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

3. "Company Information" means:

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV.

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

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

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

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

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

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

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

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

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

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

f. if the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;

g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.

5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.

5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure

of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.

6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the Investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

# 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.
7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").
7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.
7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.
7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.
7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.
7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

# 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.
8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.
8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.
8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions,

Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

# 9. Miscellaneous Provisions

# 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. Limitation of Liability. The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "Delaware Act"). Accordingly, the Investor hereby

agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. Counsel. The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. Power of Attorney. The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

# 9.5. Confidentiality.

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an Interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").
9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.
9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. **Amendments.** Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. **Assignability and Transferability.** This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. **Repurchase.** In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ('Exchange Act'), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. **Governing Law.** Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. **Severability.** If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. **Headings.** The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. **General.** This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

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

**SPV**

**MTailor I, as series of Wefunder SPV, LLC**
**By: Wefunder Admin, LLC, its Manager**

By: *Founder Signature*

Date:

Name: **Nicholas Tommarello**

Title: **Chief Executive Officer**

**Investor**

**[INVESTOR NAME]**

By: *Investor Signature*

Date:

CONTACT INFORMATION:

Name: **[INVESTOR NAME]**

Mailing Address:

City:

Country:

E-mail:

TERMS APPENDIX FOR THE PURCHASE OF Bit Body, Inc.
SECURITIES BY MTailor I. A SERIES OF WEFUNDER SPV,
LLC, A DELAWARE LIMITED LIABILITY COMPANY

**Type of Security:** Future Equity

**Terms** $33M valuation cap

To view a copy of the contract, please see **Appendix B, Investor Contracts** of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/browse-edgar?company=&match=&filenum=020-
31015&State=&Country=&SIC=&myowner=exclude&action=getcompany

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

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

# BIT BODY, INC

# SAFE

# (Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [ENTITY NAME] (the "Investor") of $[AMOUNT] (the "Purchase Amount") on or about [EFFECTIVE DATE] Bit Body, Inc., a Delaware corporation (the "Company"), hereby issues to the Investor the right to certain shares of the Company's capital stock, subject to the terms set forth below.

The "Valuation Cap" is $33,000,000. See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing before the expiration or termination of this instrument, the Company will automatically issue to the Investor either: (1) a number of shares of Standard Preferred Stock equal to the Purchase Amount divided by the price per share of the Standard Preferred Stock, if the pre-money valuation is less than or equal to the Valuation Cap; or (2) a number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Safe Price, if the pre-money valuation is greater than the Valuation Cap.

In connection with the issuance of Standard Preferred Stock or Safe Preferred Stock, as applicable, by the Company to the Investor pursuant to this Section 1(a):

(i) The Investor will execute and deliver to the Company all transaction documents related to the Equity Financing; provided, that such documents are the same documents to be entered into with the purchasers of Standard Preferred Stock, with appropriate variations for the Safe Preferred Stock if applicable, and provided further, that such documents have customary exceptions to any drag-along applicable to the Investor, including, without limitation, limited representations and warranties and limited liability and indemnification obligations on the part of the Investor; and
(ii) The Investor and the Company will execute a Pro Rata Rights Agreement, unless the Investor is already included in such rights in the transaction documents related to the Equity Financing.
(b) Liquidity Event. If there is a Liquidity Event before the expiration or termination of this instrument, the Investor will, at its option, either (i) receive a cash payment equal to the Purchase Amount (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

In connection with Section (b)(i), this Safe is intended to operate like standard nonparticipating Preferred Stock. The Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event. If there are not enough funds to pay the Investor and holders of other Safes, and holders of Preferred Shares (collectively, the "Cash-Out Investors") in full, then all of the Company's available funds will be distributed with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts, and the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce, pro rata, the Purchase Amounts payable to the Cash-Out

Investors by the amount determined by its board of directors in good faith to be advisable for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

(c) Dissolution Event. If there is a Dissolution Event before this instrument expires or terminates, the Company will pay an amount equal to the Purchase Amount, due and payable to the Investor immediately prior to, or concurrent with, the consummation of the Dissolution Event. The Purchase Amount will be paid prior and in preference to any Distribution of any of the assets of the Company to holders of outstanding Capital Stock by reason of their ownership thereof. If immediately prior to the consummation of the Dissolution Event, the assets of the Company legally available for distribution to the Investor and all holders of all other Safes (the "Dissolving Investors"), as determined in good faith by the Company's board of directors, are insufficient to permit the payment to the Dissolving Investors of their respective Purchase Amounts, then the entire assets of the Company legally available for distribution will be distributed with equal priority and pro rata among the Dissolving Investors in proportion to the Purchase Amounts they would otherwise be entitled to receive pursuant to this Section 1(c).

(d) Termination. This instrument will expire and terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this instrument) upon either (i) the issuance of stock to the Investor pursuant to Section 1(a) or Section 1(b)(ii); or (ii) the payment, or setting aside for payment, of amounts due the Investor pursuant to Section 1(b)(i) or Section 1(c).

## 2. Definitions

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Stock" and the "Preferred Stock."

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

"Company Capitalization" means the sum, as of immediately prior to the Equity Financing, of: (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding (A) this instrument, (B) all other Safes, and (C) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

"Distribution" means the transfer to holders of Capital Stock by reason of their ownership thereof of cash or other property without consideration whether by way of dividend or otherwise, other than dividends on Common Stock payable in Common Stock, or the purchase or redemption of Capital Stock by the Company or its subsidiaries for cash or property other than: (i) repurchases of Common Stock held by employees, officers, directors or consultants of the Company or its subsidiaries pursuant to an agreement providing, as applicable, a right of first refusal or a right to repurchase shares

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upon termination of such service provider’s employment or services; or (ii) repurchases of Capital Stock in connection with the settlement of disputes with any stockholder.

“**Dissolution Event**” means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company’s creditors or (iii) any other liquidation, dissolution or winding up of the Company (**excluding** a Liquidity Event), whether voluntary or involuntary.

“**Equity Financing**” means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed pre-money valuation.

“**Initial Public Offering**” means the closing of the Company’s first firm commitment underwritten initial public offering of Common Stock pursuant to a registration statement filed under the Securities Act.

Capital**” means the number, as of immediately prior to the Liquidity Event, of shares of Capital Stock (on an as-converted basis) outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but **excluding**: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan; (ii) this instrument; (iii) other Safes; and (iv) convertible promissory notes.

“**Liquidity Event**” means a Change of Control or an Initial Public Offering.

“**Liquidity Price**” means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization.

“**Pro Rata Rights Agreement**” means a written agreement between the Company and the Investor (and holders of other Safes, as appropriate) giving the Investor a right to purchase its *pro rata* share of private placements of securities by the Company **occurring after the Equity Financing**, subject to customary exceptions. *Pro rata* for purposes of the Pro Rata Rights Agreement will be calculated based on the ratio of (1) the number of shares of Capital Stock owned by the Investor immediately prior to the issuance of the securities to (2) the total number of shares of outstanding Capital Stock on a fully diluted basis, calculated as of immediately prior to the issuance of the securities.

“**Safe**” means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company’s business operations.

“**Safe Preferred Stock**” means the shares of a series of Preferred Stock issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the shares of Standard Preferred Stock, other than with respect to: (i) the per share liquidation preference and the conversion price for purposes of price-based anti-dilution protection, which will equal the Safe Price; and (ii) the basis for any dividend rights, which will be based on the Safe Price.

“**Safe Price**” means the price per share equal to the Valuation Cap divided by the Company Capitalization.

“**Standard Preferred Stock**” means the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

### 3. *Company Representations*

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

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(b) The execution, delivery and performance by the Company of this instrument is within the power of the Company and, other than with respect to the actions to be taken when equity is to be issued to the Investor, has been duly authorized by all necessary actions on the part of the Company. This instrument constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To the knowledge of the Company, it is not in violation of (i) its current certificate of incorporation or bylaws, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material indenture or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this instrument do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material indenture or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien upon any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No consents or approvals are required in connection with the performance of this instrument, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Capital Stock issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

### 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this instrument and to perform its obligations hereunder. This instrument constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) The Investor has been advised that this instrument and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this instrument and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

### 5. Miscellaneous

(a) Any provision of this instrument may be amended, waived or modified only upon the written consent of the Company and the Investor.

(b) Any notice required or permitted by this instrument will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on the signature page, or 48 hours after being deposited

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in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on the signature page, as subsequently modified by written notice.

(c) The Investor is not entitled, as a holder of this instrument, to vote or receive dividends or be deemed the holder of Capital Stock for any purpose, nor will anything contained herein be construed to confer on the Investor, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action or to receive notice of meetings, or to receive subscription rights or otherwise until shares have been issued upon the terms described herein.
(d) Neither this instrument nor the rights contained herein may be assigned, by operation of law or otherwise, by either party without the prior written consent of the other; provided, however, that this instrument and/or the rights contained herein may be assigned without the Company's consent by the Investor to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor; and provided, further, that the Company may assign this instrument in whole, without the consent of the Investor, in connection with a reincorporation to change the Company's domicile.
(e) In the event any one or more of the provisions of this instrument is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this instrument operate or would prospectively operate to invalidate this instrument, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this instrument and the remaining provisions of this instrument will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.
(f) All rights and obligations hereunder will be governed by the laws of the State of [Governing Law Jurisdiction], without regard to the conflicts of law provisions of such jurisdiction.

(Signature page follows)

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

COMPANY:
Bit Body, Inc.

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

INVESTOR:

[ENTITY NAME]

By: ____________

Investor Signature

By: ____________

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

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

Please indicate Yes or No by checking the appropriate box:

[ ] Accredited

[ X ] Not Accredited

SIGNATURE PAGE

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

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

# BIT BODY, INC

# SAFE

# (Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [ENTITY NAME] (the "Investor") of $[AMOUNT] (the "Purchase Amount") on or about [EFFECTIVE DATE], Bit Body, Inc., a Delaware corporation (the "Company"), hereby issues to the Investor the right to certain shares of the Company's capital stock, subject to the terms set forth below.

The "Valuation Cap" is $27,000,000. See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing before the expiration or termination of this instrument, the Company will automatically issue to the Investor either: (1) a number of shares of Standard Preferred Stock equal to the Purchase Amount divided by the price per share of the Standard Preferred Stock, if the pre-money valuation is less than or equal to the Valuation Cap; or (2) a number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Safe Price, if the pre-money valuation is greater than the Valuation Cap.

In connection with the issuance of Standard Preferred Stock or Safe Preferred Stock, as applicable, by the Company to the Investor pursuant to this Section 1(a):

(i) The Investor will execute and deliver to the Company all transaction documents related to the Equity Financing; provided, that such documents are the same documents to be entered into with the purchasers of Standard Preferred Stock, with appropriate variations for the Safe Preferred Stock if applicable, and provided further, that such documents have customary exceptions to any drag-along applicable to the Investor, including, without limitation, limited representations and warranties and limited liability and indemnification obligations on the part of the Investor; and
(ii) The Investor and the Company will execute a Pro Rata Rights Agreement, unless the Investor is already included in such rights in the transaction documents related to the Equity Financing.
(b) Liquidity Event. If there is a Liquidity Event before the expiration or termination of this instrument, the Investor will, at its option, either (i) receive a cash payment equal to the Purchase Amount (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

In connection with Section (b)(i), this Safe is intended to operate like standard nonparticipating Preferred Stock. The Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event. If there are not enough funds to pay the Investor and holders of other Safes, and holders of Preferred Shares (collectively, the "Cash-Out Investors") in full, then all of the Company's available funds will be distributed with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts, and the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce, pro rata, the Purchase Amounts payable to the Cash-Out

Investors by the amount determined by its board of directors in good faith to be advisable for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

(c) Dissolution Event. If there is a Dissolution Event before this instrument expires or terminates, the Company will pay an amount equal to the Purchase Amount, due and payable to the Investor immediately prior to, or concurrent with, the consummation of the Dissolution Event. The Purchase Amount will be paid prior and in preference to any Distribution of any of the assets of the Company to holders of outstanding Capital Stock by reason of their ownership thereof. If immediately prior to the consummation of the Dissolution Event, the assets of the Company legally available for distribution to the Investor and all holders of all other Safes (the "Dissolving Investors"), as determined in good faith by the Company's board of directors, are insufficient to permit the payment to the Dissolving Investors of their respective Purchase Amounts, then the entire assets of the Company legally available for distribution will be distributed with equal priority and pro rata among the Dissolving Investors in proportion to the Purchase Amounts they would otherwise be entitled to receive pursuant to this Section 1(c).

(d) Termination. This instrument will expire and terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this instrument) upon either (i) the issuance of stock to the Investor pursuant to Section 1(a) or Section 1(b)(ii); or (ii) the payment, or setting aside for payment, of amounts due the Investor pursuant to Section 1(b)(i) or Section 1(c).

## 2. Definitions

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Stock" and the "Preferred Stock."

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

"Company Capitalization" means the sum, as of immediately prior to the Equity Financing, of: (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding (A) this instrument, (B) all other Safes, and (C) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

"Distribution" means the transfer to holders of Capital Stock by reason of their ownership thereof of cash or other property without consideration whether by way of dividend or otherwise, other than dividends on Common Stock payable in Common Stock, or the purchase or redemption of Capital Stock by the Company or its subsidiaries for cash or property other than: (i) repurchases of Common Stock held by employees, officers, directors or consultants of the Company or its subsidiaries pursuant to an agreement providing, as applicable, a right of first refusal or a right to repurchase shares

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upon termination of such service provider’s employment or services; or (ii) repurchases of Capital Stock in connection with the settlement of disputes with any stockholder.

“**Dissolution Event**” means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company’s creditors or (iii) any other liquidation, dissolution or winding up of the Company (**excluding** a Liquidity Event), whether voluntary or involuntary.

“**Equity Financing**” means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed pre-money valuation.

“**Initial Public Offering**” means the closing of the Company’s first firm commitment underwritten initial public offering of Common Stock pursuant to a registration statement filed under the Securities Act.

Capital**” means the number, as of immediately prior to the Liquidity Event, of shares of Capital Stock (on an as-converted basis) outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but **excluding**: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan; (ii) this instrument; (iii) other Safes; and (iv) convertible promissory notes.

“**Liquidity Event**” means a Change of Control or an Initial Public Offering.

“**Liquidity Price**” means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization.

“**Pro Rata Rights Agreement**” means a written agreement between the Company and the Investor (and holders of other Safes, as appropriate) giving the Investor a right to purchase its *pro rata* share of private placements of securities by the Company **occurring after the Equity Financing**, subject to customary exceptions. *Pro rata* for purposes of the Pro Rata Rights Agreement will be calculated based on the ratio of (1) the number of shares of Capital Stock owned by the Investor immediately prior to the issuance of the securities to (2) the total number of shares of outstanding Capital Stock on a fully diluted basis, calculated as of immediately prior to the issuance of the securities.

“**Safe**” means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company’s business operations.

“**Safe Preferred Stock**” means the shares of a series of Preferred Stock issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the shares of Standard Preferred Stock, other than with respect to: (i) the per share liquidation preference and the conversion price for purposes of price-based anti-dilution protection, which will equal the Safe Price; and (ii) the basis for any dividend rights, which will be based on the Safe Price.

“**Safe Price**” means the price per share equal to the Valuation Cap divided by the Company Capitalization.

“**Standard Preferred Stock**” means the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

### 3. *Company Representations*

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

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(b) The execution, delivery and performance by the Company of this instrument is within the power of the Company and, other than with respect to the actions to be taken when equity is to be issued to the Investor, has been duly authorized by all necessary actions on the part of the Company. This instrument constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To the knowledge of the Company, it is not in violation of (i) its current certificate of incorporation or bylaws, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material indenture or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this instrument do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material indenture or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien upon any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No consents or approvals are required in connection with the performance of this instrument, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Capital Stock issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

### 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this instrument and to perform its obligations hereunder. This instrument constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) The Investor has been advised that this instrument and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this instrument and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

### 5. Miscellaneous

(a) Any provision of this instrument may be amended, waived or modified only upon the written consent of the Company and the Investor.

(b) Any notice required or permitted by this instrument will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on the signature page, or 48 hours after being deposited

-4-

in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on the signature page, as subsequently modified by written notice.

(c) The Investor is not entitled, as a holder of this instrument, to vote or receive dividends or be deemed the holder of Capital Stock for any purpose, nor will anything contained herein be construed to confer on the Investor, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action or to receive notice of meetings, or to receive subscription rights or otherwise until shares have been issued upon the terms described herein.
(d) Neither this instrument nor the rights contained herein may be assigned, by operation of law or otherwise, by either party without the prior written consent of the other; provided, however, that this instrument and/or the rights contained herein may be assigned without the Company's consent by the Investor to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor; and provided, further, that the Company may assign this instrument in whole, without the consent of the Investor, in connection with a reincorporation to change the Company's domicile.
(e) In the event any one or more of the provisions of this instrument is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this instrument operate or would prospectively operate to invalidate this instrument, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this instrument and the remaining provisions of this instrument will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.
(f) All rights and obligations hereunder will be governed by the laws of the State of [Governing Law Jurisdiction], without regard to the conflicts of law provisions of such jurisdiction.

(Signature page follows)

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

COMPANY:
Bit Body, Inc.

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

INVESTOR:

[ENTITY NAME]

By: ____________

Investor Signature

By: ____________

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

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

Please indicate Yes or No by checking the appropriate box:

[ ] Accredited

[ X ] Not Accredited

SIGNATURE PAGE

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

# **Subscription Agreement**

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**MTailor I EB** (the "SPV"), a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by **Bit Body, Inc.** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

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

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

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

Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

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

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

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

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

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

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

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

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

3. "Company Information" means:

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV.

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

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

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

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

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

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

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

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

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

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

f. if the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;

g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.

5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.

5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure

of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.

6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the Investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

# 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.
7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").
7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.
7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.
7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.
7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.
7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

# 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.
8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.
8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.
8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions,

Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

# 9. Miscellaneous Provisions

# 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. Limitation of Liability. The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "Delaware Act"). Accordingly, the Investor hereby

agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. Counsel. The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. Power of Attorney. The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

# 9.5. Confidentiality.

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an Interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").
9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.
9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. **Amendments.** Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. **Assignability and Transferability.** This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. **Repurchase.** In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ('Exchange Act'), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. **Governing Law.** Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. **Severability.** If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. **Headings.** The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. **General.** This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

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

**SPV**

**MTailor I EB, as series of Wefunder SPV, LLC**
**By: Wefunder Admin, LLC, its Manager**

By: *Founder Signature*

Date:

Name: **Nicholas Tommarello**

Title: **Chief Executive Officer**

**Investor**

**[INVESTOR NAME]**

By: *Investor Signature*

Date:

CONTACT INFORMATION:

Name: **[INVESTOR NAME]**

Mailing Address:

City:

Country:

E-mail:

TERMS APPENDIX FOR THE PURCHASE OF Bit Body, Inc.
SECURITIES BY MTailor | EB, A SERIES OF WEFUNDER
SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

**Type of Security:** Future Equity

**Terms** $27M valuation cap

To view a copy of the contract, please see **Appendix B, Investor Contracts** of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001947048&first=2016

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

# **Bit Body, Inc.** (the “Company”) a Delaware Corporation and Subsidiary

Consolidated Financial Statements and
Independent Accountant’s Audit Report

Years ended December 31, 2020 & 2021

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

## INDEPENDENT ACCOUNTANT'S AUDIT REPORT

To Management Bit Body, Inc.

We have audited the accompanying consolidated statements of financial position of Bit Body, Inc as of December 31, 2020 and 2021 and the related statement of operations, statement of cash flows, and the statement of changes in stockholder equity for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of Bit Body, Inc as of December 31, 2020 and 2021 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

### Going Concern

As discussed in Note 9, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs.

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 457,416 | 524,925 |
| Restricted Cash | 139,010 | 29,007 |
| Inventory | 335,163 | 352,713 |
| Prepaid Expenses | 22,885 | 77,857 |
| Total Current Assets | 954,474 | 984,503 |
| Non-current Assets | - | - |
| Property, Plant and Equipment, Net of Depreciation | 114,986 | 130,914 |
| Intangible Assets, Net of Amortization | 71,226 | 79,923 |
| Security Deposits | 11,103 | 19,763 |
| Right of Use Asset | 278,344 | - |
| Total Non-Current Assets | 475,659 | 230,600 |
| TOTAL ASSETS | 1,430,134 | 1,215,103 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities | - | - |
| Accounts Payable | 16,286 | 11,490 |
| Gift Card Liability | 73,476 | 118,106 |
| Deferred Revenue | 139,428 | 35,475 |
| Accrued Interest | 12,685 | 4,018 |
| Accrued Payroll | 47,297 | 92,776 |
| Line of Credit | 50,428 | 34,579 |
| Lease Liability - Short Term | 46,019 | - |
| Short-Term Debt | 23,438 | 228,518 |
| Other Current Liabilities | 197,875 | 163,005 |
| Total Current Liabilities | 606,931 | 687,967 |
| Long-term Liabilities |  |  |
| Long Term Deferred Revenue | 100,000 | - |
| Lease Liability - Long Term | 226,628 | - |
| Long-Term Debt | 200,000 | 150,000 |
| Total Long-Term Liabilities | 526,628 | 150,000 |
| TOTAL LIABILITIES | 1,133,559 | 837,967 |
| EQUITY |  |  |
| Common Stock | 36,157 | 36,157 |
| Preferred Stock | 400,000 | 400,000 |
| Additional Paid-in-Capital, Net of Offering Costs | 5,156,865 | 5,156,865 |
| Accumulated Other Comprehensive Income/Loss | (229,140) | (105,948) |
| Accumulated Deficit | (5,067,308) | (5,109,937) |
| Total Equity | 296,573 | 377,137 |
| TOTAL LIABILITIES AND EQUITY | 1,430,134 | 1,215,103 |

# **Statement of Operations**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 5,106,805 | 6,582,505 |
| Cost of Revenue | 1,980,937 | 2,474,360 |
| Gross Profit | 3,125,868 | 4,108,145 |
| Operating Expenses |  |  |
| Advertising and Marketing | 951,527 | 2,443,644 |
| General and Administrative | 767,096 | 746,041 |
| Legal and Professional Fees | 248,527 | 299,308 |
| Payroll and Benefits Expenses | 1,711,831 | 1,682,202 |
| Repairs and Maintenance | 17,866 | 26,837 |
| Total Operating Expenses | 3,696,847 | 5,198,032 |
| Operating Income (loss) | (570,979) | (1,089,887) |
| Depreciation | (552) | (1,491) |
| Amortization | (8,698) | (7,206) |
| Other Income | 635,339 | 17,443 |
| Interest Expense | (12,849) | (4,018) |
| Total Other Income | 613,241 | 4,728 |
| Provision for Income Tax | - | - |
| Net Income (loss) | 42,262 | (1,085,159) |
| Other Comprehensive Income/Loss from Foreign Exchange Translation | 366 | 6,526 |
| Comprehensive Income | 42,628 | (1,078,633) |

# **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | 42,628 | (1,078,633) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Depreciation | 26,645 | 30,069 |
| Amortization of Intangible Assets | 8,698 | 7,206 |
| Payments Made for Operating Lease | (5,697) | - |
| Accounts Payable | 4,795 | 5,563 |
| Gift Card Liability | (44,630) | (94,491) |
| Deferred Revenue | 203,953 | (53,644) |
| Accrued Interest | 8,667 | 4,018 |
| Payroll Liabilities | (45,479) | 23,928 |
| Other Current Liabilities | 34,870 | (445,450) |
| Prepaid Expenses | 54,972 | (49,211) |
| Inventory | 17,550 | 124,956 |
| Security Deposits | 8,660 | 107 |
| Forgiveness of PPP Loans | (457,034) | - |
| Effect of Foreign Currency Translation | (123,192) | 135,735 |
| Other | - | - |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | (307,223) | (311,214) |
| Net Cash provided by (used in) Operating Activities | (264,594) | (1,389,847) |
| INVESTING ACTIVITIES |  |  |
| Furniture, Equipment, and Leasehold Improvements, net of Accumulated Depreciation | (10,718) | (8,581) |
| Net Cash provided by (used by) Investing Activities | (10,718) | (8,581) |
| FINANCING ACTIVITIES |  |  |
| Additional Paid-in-Capital | - | 19,921 |
| Proceeds from PPP Loan | 251,956 | 228,518 |
| Line of Credit | 15,849 | (51,501) |
| Debt Issuances/Payments | 50,000 | 150,000 |
| Net Cash provided by (used in) Financing Activities | 317,805 | 346,938 |
| Cash at the beginning of period | 553,932 | 1,605,422 |
| Net Cash increase (decrease) for period | 42,493 | (1,051,490) |
| Cash at end of period | 596,426 | 553,932 |

# Statement of Changes in Shareholder Equity

|  | Common Stock (Par $0.000001) |  | Series Seed Preferred Stock (Par $0.000001) |  | Series A Preferred Stock (Par $0.000001) |  | Series A-1 Preferred Stock (Par $0.000001) |  | Series A-2 Preferred Stock (Par $0.000001) |  | Series A-3 Preferred Stock (Par $0.000001) |  | Series A-4 Preferred Stock (Par $0.000001) |  | APIC | Accumulated Other Comprehensive Income/Loss | Accumulated Deficit | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount | # of Shares Amount | $ Amount |  |  |  |  |
| Beginning Balance at 1/1/2020 | 1,124,117 | 1 | 222,220 | - | 321,992 | - | 4,576 | - | 209,831 | - | 14,791 | - | 131,063 | - | 5,573,099 | (241,683) | (4,031,304) | 1,300,114 |
| Effect of Foreign Currency Translation | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 135,735 | - | 135,735 |
| Cancellation of Convertible Debt into Series A Preferred Stock | - | - | - | - | 7,885 | - | - | - | - | - | - | - | - | - | 19,921 | - | - | 19,921 |
| Net Income (Loss) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (1,078,633) | (1,078,633) |
| Ending Balance 12/31/2020 | 1,124,117 | 1 | 222,220 | - | 329,877 | - | 4,576 | - | 209,831 | - | 14,791 | - | 131,063 | - | 5,593,021 | (105,948) | (5,109,937) | 377,137 |
| Effect of Foreign Currency Translation | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (123,192) | - | (123,192) |
| Net Income (Loss) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 42,628 | 42,628 |
| Ending Balance 12/31/2021 | 1,124,117 | 1 | 222,220 | - | 329,877 | - | 4,576 | - | 209,831 | - | 14,791 | - | 131,063 | - | 5,593,021 | (229,140) | (5,067,308) | 296,573 |

# Bit Body, Inc
Notes to the Consolidated Audited Financial Statements
December 31st, 2021
$USD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

Bit Body, Inc (“the Company”) was formed in Delaware on September 6th, 2012. The Company runs MTailor, an ecommerce custom clothing business that measures you with the camera on your phone. The Company has created and will continue to create new technology for clothing and body measurements and visualization. The Company is developing a new SAAS business to deliver measurements and visualization technology to consumers and retailers. The Company’s HQ is in San Francisco, CA. The Company’s customers are predominantly in the United States.

The Company is a majority owner of 99.9% of the shares of Bit Body Bangladesh, Ltd (“BBBL”), which is a Bangladesh based manufacturing company that produces custom made garments on demand. BBBL produces 100% of the Company’s orders and ships completed products to customers in the United States. The financial statements for this subsidiary are consolidated with the Company’s.

The Company will conduct a crowdfunding campaign under regulation CF in 2023 to raise operating capital.

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of Presentation

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

# Basis of Consolidation

The financials of the Company include its majority-owned subsidiary, Bit Body Bangladesh Limited.

# Use of Estimates and Assumptions

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

# Cash and Cash Equivalents

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

# Fair Value of Financial Instruments

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

These tiers include:

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

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

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

## Concentrations of Credit Risks

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

## Revenue Recognition

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

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

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

The Company's primary performance obligation is the delivery of products. Revenue is recognized at a point in time and that has been determined as the time of shipment of customer orders. Until the time of shipment, all money received in advance is recorded as deferred revenue. Shipments are reconciled against deferred revenue amounts on a monthly basis and revenue is recognized accordingly. During 2020 and 2021, revenue was recognized from the sale of clothing in the amount of $6,390,043 and $5,024,387, respectively.

The Company also sells gift card directly to customers and manages those balances by monitoring the usage of gift cards in customer orders and recognizing revenue from the use of those gift card balances at the time of shipment of the respective order. All gift cards that have been outstanding and unused for at least six months are removed from the gift card liability account and recognized as revenue in the month in which they have aged six months. During 2020 and 2021, the Company recognized revenue from unused gift cards in the amount of $192,462 and $82,418, respectively.

## 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 determined using the straight-line and declining balance methods, based on useful lives of the assets.

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

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

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- |
| Computer Equipment | 5 | 29,876 | 12,471 | 17,405 |
| Electrical Items | 5 | 21,501 | 13,205 | 8,296 |
| Fire Safety Equipment | 5 | 7,763 | 4,937 | 2,826 |
| Furniture & Fixtures | 5 | 30,641 | 10,045 | 20,596 |
| Machinery | 5 | 120,956 | 72,638 | 48,319 |
| Office Equipment | 5 | 39,526 | 22,087 | 17,439 |
| Computers | 3 | 12,134 | 12,029 | 105 |
| Grand Total | - | 262,397 | 147,412 | 114,986 |

### Intangible Assets

In developing assumptions about the renewal or extension used to determine the useful life of intangible assets, the Company first considers its own historical experience in renewing or extending similar arrangements. These assumptions are adjusted for entity-specific factors. In the absence of that experience, the Company considers the assumptions that market participants would use about renewal or extension, adjusted for entity-specific factors.

### Capitalized Internal-Use Software Costs

We are required to follow the guidance of Accounting Standards Codification 350 ('ASC 350'), Intangibles-Goodwill and Other in accounting for the cost of computer software developed for internal-use and the accounting for web-based product development costs. ASC 350 requires companies to capitalize qualifying computer software costs, which are incurred during the application development stage, and amortize these costs on a straight-line basis over the estimated useful life of the respective asset. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life which is determined to be five years.

A summary of the Company's intangible assets is below.

| Property Type | Useful Life in Years | Cost | Accumulated Amortization | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- |
| Software | 5 | 28,420 | 26,626 | 1,794 |
| Patent | 20 | 51,138 | - | 51,138 |
| Trademark | 15 | 22,828 | 3,044 | 19,784 |
| Grand Total | - | 102,386 | 29,670 | 72,716 |

### Inventory

The Company's inventory consists primarily of fabrics and goods in transit for chinos, denim, polos, scrubs, shirts, suits, blazers, pants, t-shirts and manufacturing trim for its products. Inventory is mainly housed at the Company's production facility in Bangladesh and it is accounted for using the average cost method of accounting.

As of December 31, 2020 and 2021, inventory balances totaled $352,713 and $335,163, respectively. The Company produces custom fitted clothing for individual customers and all finished goods are delivered to customers as soon as produced. Additionally, the process to manufacture clothing for customer orders is relatively short. As such, the Company does not carry finished goods or in-process inventory. Instead, all inventory is classified as raw materials.

### Prepaid Expenses

Prepaid Expenses consisted primarily of prepaid advertising and prepaid wages and salaries. The Company capitalizes prepaid expenses and recognizes the costs to the respective expense account over the life of the service contract or as the services that were prepaid are rendered to the Company.

### Line of Credit

The Company opened a line of credit and had a total payable balance related to inventory purchased on the line of credit in the amount of $103,782 as of December 31st, 2021. The inventory amounts are payable within 2022 and the Company does not have any intention of closing the line of credit in the future.

### Other Payables

Other Payables primarily consist of salary and wages payable as well as audit fees payable.

### Leases

The Company leases certain buildings, equipment, and vehicles. The determination of whether an arrangement is a lease is made at the lease’s inception. The Company has elected to early adopt and account for long-term leases in accordance with ASC 842, “Leases”. As a result, in 2021, the Company recognized a lease liability and right of use asset for a long-term lease that it entered into as of October 2021, for a factory building in Bangladesh. Refer to Note 4. Under ASC 842, a contract is (or contains) a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is defined under the standard as having both the right to obtain substantially all of the economic benefits from use of the asset and the right to direct the use of the asset. Management only reassesses its determination if the terms and conditions of the contract are changed.

Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses the implicit rate when it is readily determinable. Since most of the Company’s leases do not provide an implicit rate, to determine the present value of lease payments, management uses the Company’s incremental borrowing rate based on the information available at lease commencement. Operating lease ROU assets also includes any lease payments made and excludes any lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option.

### Advertising Costs

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

### General and Administrative

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

## Income Taxes

The Company is subject to corporate income and state income taxes in the state it does business. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company does not have any uncertain tax provisions. The Company's primary tax jurisdiction is the United States and Bangladesh. The Company's primary deferred tax assets are its net operating loss (NOL) carryforwards which approximates its retained earnings as of the date of these financials. A deferred tax asset as a result of NOLs have not been recognized due to the uncertainty of future positive taxable income to utilize the NOL. The Company is no longer subject to U.S. federal, state and local, tax examinations by tax authorities for years before 2019.

## Recent accounting pronouncements

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

## NOTE 3 - RELATED PARTY TRANSACTIONS

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

A Director, minority shareholder of the Company, and relative of the CEO started a separate company called MedTailor for which the Company agreed to supply production, measurement technology, and customer support for this new brand. The Company recognized $110,000 in deferred revenue as well as $100,000 in long term deferred revenue.

## NOTE 4 - LEASES

As mentioned in Note 2, the Company has elected to early adopt and account for long-term leases in accordance with ASC 842, 'Leases'. During 2021, Bit Body Bangladesh, Ltd entered into a five-year operating lease agreement with Mr. Abdus Sattar Bhuiyan (lessor) for the use of his factory building ('Sattar Building') at Bogabari Market, Ashulia, Dhaka. The date of commencement for this lease is October 1, 2021 and it is for a total of 33,761 square feet of area to be used by BBBL and will cost the Company a total monthly rental payment of 486,114 Bangladeshi Taka. At December 31, 2021, this was estimated to have a conversion value of $5,696 at a conversion rate of $0.011719 USD per $1 Bangladeshi Taka. This monthly payment will increase by 10% in years four and five, per the lease agreement.

The Company estimated a right of use asset and lease liability in the amount of $285,563 and this was determined using a 9% discount rate. The agreement allows for an extension option of up to five additional years. This was not taken into consideration in the determination of the right of use asset and lease liability as we do not consider the extension to be reasonably certain at this point in time.

During 2021, the Company incurred total operating lease costs of $17,090. As of December 31, 2021, the weighted-average remaining lease term is 57 months and the weighted-average discount rate is 9%.

The maturities of lease liabilities as of December 31, 2021 were as follows:

| Year Ending December 31, | Payment |
| --- | --- |
| 2022 | $46,019 |
| 2023 | $50,336 |
| 2024 | $56,697 |
| 2025 | $67,161 |
| 2026 | $52,434 |
| Thereafter | - |

#### **NOTE 5 - COMMITMENTS, CONTINGENCIES, COMPLIANCE WITH LAWS AND REGULATIONS**

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

#### **NOTE 6 - DEBT**

In July 2020, the Company entered into an Economic Injury Disaster Loan (EIDL) agreement for $150,000 with an interest rate of 3.75% and a maturity date of July 22, 2050. An additional $50,000 loan was secured in June 2021. Monthly payments of $1,023 are required, beginning in July of 2022. The balance of this loan was $150,000 and $200,000 as of December 31, 2020 and 2021, respectively. As of December 31, 2021, there was accrued interest in the amount of $9,437 for this loan.

During the periods under review, the Company entered into two Paycheck Protection Program (PPP) loan agreements in the amount of $228,517 each for a total amount of $457,034. The loans accrued interest at 1%. The loans were both fully forgiven in 2021 and recognized as other income.

In 2021, the Company entered into a working capital loan with a bank in the amount of $23,438. The loan accrues interest at 9% and is due in 2022.

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

| Year | Amount |
| --- | --- |
| 2022 | $23,438 |
| 2023 | $ - |
| 2024 | $280 |
| 2025 | $4,870 |
| 2026 and Beyond | $194,850 |

# NOTE 7 - EQUITY

# Issuance of Stock

The total number of shares that the Company is authorized to issue is 3,434,971. The total number of shares of common stock authorized to be issued is 2,450,000 at a par value of $0.000001 per share. The total number of shares of preferred stock authorized to be issued is 984,971 at a par value of $0.000001 per share, of which 222,220 shares are designated as "Series Seed Preferred Stock", 402,490 shares are designated as "Series A Preferred Stock", 4,576 shares are designated as "Series A-1 Preferred Stock", 209,831 shares are designated as "Series A-2 Preferred Stock", 14,791 shares are designated as "Series A-3 Preferred Stock", and 131,063 shares are designated as "Series A-4 Preferred Stock".

At the end of 2020 and 2021, there were 1,124,117 common shares outstanding and 904,473 preferred shares outstanding.

Dividends: The holders of preferred stock are entitled to receive dividends when and if declared by the Board of Directors.

The holder of each share of Common Stock shall have the right to one vote for each such share, and shall be entitled to notice of any stockholders' meeting in accordance with the Bylaws of this corporation, and shall be entitled to vote upon such matters and in such manner as may be provided by law.

The holder of each share of Preferred Stock shall have the right to one vote for each share of Common Stock into which such Preferred Stock could then be converted, and with respect to such vote, such holder shall have full voting rights and powers equal to the voting rights and powers of the holders of Common Stock, and shall be entitled, notwithstanding any provision hereof, to notice of any stockholders' meeting in accordance with the Bylaws of this corporation.

# Share Based Compensation

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

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505 (Equity). The fair value of the option issued or committed to be issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The fair value is measured at the value of the Company's common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty's performance is complete. The fair value of the equity instrument is charged directly to expense and credited to additional paid- in capital.

It is the policy of the Company to record forfeitures of unvested stock options when they actually occur.

To determine the value of the Company's stock, management has hired a valuation Company, Carta, Inc., to perform 409A valuations at each issuance of stock options. The Company's stock value determinations have not resulted in intrinsic value for grantees of stock options. As such, Management has not recognized stock-based compensation expenses in connection with the issuance and vesting of stock options through December 31, 2021.

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

|  | Total Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (in years) |
| --- | --- | --- | --- | --- |
| Total options outstanding, January 1, 2020 | 109,314 | $1,410 | $ - | 4 |
| Granted | 29,759 | $1,050 | $ - |  |
| Exercised | - | $ - | $ - |  |
| Expired/cancelled | (37,162) | $1,535 | $ - |  |
| Total options outstanding, December 31, 2020 | 101,911 | $1,326 | $ - | 2 |
| Granted | - | $ - | $ - |  |
| Exercised | - | $ - | $ - |  |
| Expired/cancelled | - | $ - | $ - |  |
| Total options outstanding, December 31, 2021 | 101,911 | $1,326 | $ - | 2 |
| Options exercisable, December 31, 2021 | 54,400 | $1,351 | $ - | 1 |

The following is an analysis of nonvested options to purchase shares of the Company's stock:

|  | Nonvested Options | Aggregate Intrinsic Value |
| --- | --- | --- |
| Nonvested options, January 1, 2020 | 113,328 | $ - |
| Granted | 29,759 | $ - |
| Vested | (29,597) | $ - |
| Forfeited | (32,724) | $ - |
| Nonvested options, December 31, 2020 | 80,766 | $ - |
| Granted | - | $ - |
| Vested | (33,255) | $ - |
| Forfeited | - | $ - |
| Nonvested options, December 31, 2021 | 47,511 | $ - |

## NOTE 8 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through February 9, 2023, the date these financial statements were available to be issued.

In January of 2022, the Company entered into business loan agreement with Celtic Bank through the Stripe Capital Program in exchange for $175,000. The total loan cost for this loan is $20,825 and repayment of this loan is made by withholding 6.60% of daily merchant receivables until repayment is made of the loan and loan cost amount. This loan carried a final repayment date of July 19, 2023. The Company repaid this loan during 2022.

In June of 2022, the Company entered into a revenue sharing agreement with CFT Clear Finance Technology Corp. in exchange for an advance of $500,000. The total specified amount of $567,500 is due 9 months after the date of the agreement.

In October of 2022, the Company entered into another business loan agreement with Celtic Bank through the Stripe Capital Program in exchange for $175,000. The total loan cost for this loan is $14,000 and repayment of this loan is

made by withholding 3.90% of daily merchant receivables until repayment is made of the loan and loan cost amount. This loan carries a final repayment date of April 24, 2024.

During 2022, the Company launched a crowdfunding campaign on the WeFunder crowdfunding platform. As of December 31, 2022, the Company raised a total of $959,738 on a SAFE agreement with valuation caps of $27M-$33M. If there is an Equity Financing before the expiration or termination of the SAFE, the Company will automatically issue to the Investor either: (1) a number of shares of Standard Preferred Stock equal to the Purchase Amount divided by the price per share of the Standard Preferred Stock, if the pre-money valuation is less than or equal to the Valuation Cap; or (2) a number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Safe Price, if the pre-money valuation is greater than the valuation cap. If there is a Liquidity Event before the expiration or termination of the SAFE, the Investor will, at its option, either (i) receive a cash payment equal to the Purchase Amount or (ii) automatically receive from the Company a number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

The Safe Price means the price per share equal to the Valuation Cap divided by the Company Capitalization, which means the sum, as of immediately prior to the Equity Financing, of: (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding (A) this instrument, (B) all other Safes, and (C) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

The Liquidity Price means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization, which means the number, as of immediately prior to the Liquidity Event, of shares of Capital Stock (on an as-converted basis) outstanding, assuming exercise or conversion of all outstanding vested and unvested options, warrants and other convertible securities, but excluding: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan; (ii) this instrument; (iii) other Safes; and (iv) convertible promissory notes.

On September 22, 2022, the Company entered into a promissory note for $200K with a 10% interest rate. The lender is a related party and is a Director, minority shareholder of the Company, and relative of the CEO. This note has a maturity date of two years and is due on September 22, 2024.

## NOTE 9 - GOING CONCERN

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity has realized losses and negative cashflows from operations and may continue to generate losses.

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

# NOTE 10 - RISKS AND UNCERTAINTIES

## *COVID-19*

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

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

Contact

www.linkedin.com/in/markjpenn
(LinkedIn)
www.mdc-partners.com/
(Company)
stagwellgroup.com/ (Company)
markpenn.com/ (Personal)

Top Skills

Strategic Communications
Crisis Communications
Media Relations

# Mark Penn

CEO. Board Member. Author. Professor. Proud leader of Stagwell Inc.

Washington, District of Columbia, United States

## Summary

With a career spanning four decades, Mark Penn is a leader and sought-after expert in public relations, advertising, market research, and polling. He is currently Chairman and CEO of Stagwell Inc., a Nasdaq company, with over 10,000 employees and over $2 billion of annual revenue. Stagwell is the combination of digital-services leader Stagwell Marketing Group and global creative network MDC Partners creating. Today, Stagwell is a top 10 global marketing services firm that brings together the top award-winning creatives in the world with the best in connected technologies to transform marketing.

Prior to founding Stagwell, Penn served in senior executive positions at Microsoft; as Executive Vice President and Chief Strategy Officer, he served on the company's 12-member Senior Leadership Team managing a $2 billion advertising budget and later overall strategy for the world's largest company.

Penn's experience in growing, building, and managing companies is well-documented. As the co-founder and CEO of Penn Schoen Berland -- a market research firm that he built and sold to WPP -- he built up a company from a start-up with two people into a high-tech market-research powerhouse. At WPP, he was also CEO of Burson-Marsteller, one of the world's largest public relations companies with over 70 offices.

For six years, Penn served as White House Pollster to President Bill Clinton and was chief strategist of his 1996 re-election campaign and developed the concept behind "Soccer Moms." Penn later served as chief strategist to Hillary Clinton throughout her Senate campaigns and 2008 presidential bid.

A globally recognized strategist, Penn has advised corporate and political leaders worldwide, advising leaders in Israel, Thailand

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and throughout Latin America with a client base that ranged from Menachim Begin to Tony Blair. He has also managed presidential campaigns in Mexico, Venezuela, Colombia, Brazil, Ecuador and Bolivia.

Penn is a well-known thought leader. Dubbed “The Master of the Message” by Time Magazine, Penn is the author of two best-selling marketing insights books, “Microtrends: The Small Forces Driving the Big Disruptions Today” and “Microtrends Squared: Small Forces Driving Today’s Big Disruptions.”

Mark Penn obtained a bachelor’s degree from Harvard College and frequently returns to his alma mater as a visiting lecturer. He also studied at Columbia Law School.

## Experience

### Stagwell

7 years 1 month

### Chairman and CEO

March 2019 - Present (3 years 7 months)

### Managing Partner and President

September 2015 - Present (7 years 1 month)

Washington DC-Baltimore Area

Manage portfolio of companies in digital marketing and other marketing services from advertising to research.

### Microsoft

3 years 1 month

### EVP and Chief Strategy Officer

February 2014 - August 2015 (1 year 7 months)

### Executive Vice President, Advertising and Strategy

August 2013 - February 2014 (7 months)

DC and Redmond

Global advertising, branding, marketing, research, media

### CVP, Strategic and Special Projects

August 2012 - August 2013 (1 year 1 month)

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Burson-Marsteller

CEO

January 2006 - July 2012 (6 years 7 months)

Penn Schoen Berland

Ceo

1975 - July 2012 (37 years)

## Education

Columbia Law School

· (1976 - 1979)

Harvard University

Ab, Social studies · (1972 - 1976)

Horace Mann School

high school · (1966 - 1972)

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

Contact

www.linkedin.com/in/milespenn
(LinkedIn)

Top Skills

Java

Ruby on Rails

Entrepreneurship

Honors-Awards

Forbes 30 Under 30: Retail &
Ecommerce

# Miles Penn

AI / Deep Learning & Apparel

San Francisco, California, United States

Experience

MTailor

CEO

September 2012 - Present (10 years 1 month)

San Francisco, California

MTailor sells men's custom shirts by measuring you with your phone's camera.

We're 20% more accurate than a professional tailor.

Website: www.MTailor.com

App: https://itunes.apple.com/us/app/mtailor/id816042916?mt=8 | https://
play.google.com/store/apps/details?id=com.mtailor.android&hl=en_US

Goldman Sachs

Summer Analyst

June 2012 - August 2012 (3 months)

New York, NY

Investment Banking in the Technology, Media and Telecom Group

Goldman Sachs

Summer Analyst

June 2011 - August 2011 (3 months)

New York, NY

Investment Banking in the Technology, Media and Telecom Group

Compass Global Investments

Research Analyst

July 2010 - September 2010 (3 months)

New York, NY

Provided deep research and recommendations for equity and credit
investments

Tyndall Management

Research Analyst

July 2009 - September 2009 (3 months)

New York, NY

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Researched potential long and short equity investments

NGP Energy Technology Partners
Summer Research Analyst
2006 - 2007 (1 year)

## Education

Stanford University
Bachelor of Science (BS) with Distinction, Mathematics · (2008 - 2012)

Y Combinator (YC) S14
· (2014 - 2014)

Horace Mann School
· (1995 - 2008)

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

Contact

www.linkedin.com/in/rafiwitten
(LinkedIn)

Top Skills

C++

Python

LaTeX

# Rafi Witten

Navigation Manager at Amazon Scout
Seattle, Washington, United States

## Summary

Engineering leader with 7+ years experience in developing and launching successful ML-powered products. Proven track-record of successfully managing and growing high-performing, multi-disciplinary teams dispersed globally.

## Experience

Amazon

Software Engineering Manager, Amazon Scout

June 2019 - Present (3 years 4 months)

Greater Seattle Area

Managing Planning&Controls, On-Robot Runtime Framework and Autonomy Safety Subsystem.

MTailor

CTO & Co-Founder

June 2012 - March 2019 (6 years 10 months)

San Francisco Bay Area

MTailor makes custom clothing by measuring you with your phone's camera.

MTailor raised $5.6 million led by Khosla Ventures and is profitable.

Engineering Accomplishments:

* Developed a maximum a posteriori generative algorithm to take body measurements; empirically proved generated measurements are 20% more accurate than a professional tailor. This patented technology was the foundation to the business
* Built a bespoke convolutional neural network to predict a customer's preferred fit with greater accuracy. The CNN reduced the internal regret measure by 8%, decreased returns and improved customer satisfaction
* Created pattern generation engine to convert customer's preferred fit to CAD model for easy cutting and sewing; technology allowed manufacturing to be expanded outside of specialized factories in Northern China which paved the way to profitability

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* Built and designed the iOS app that has been downloaded 1M+ times and has a 3.8K reviews and 4.7 star rating

Business Accomplishments:

* Co-founded and grew the business to profitability and $10M+ per year in revenue
* Directly managed $1M+ per year in advertising spend and placed weekly bids to optimize customer acquisition
* Developed statistical models to understand user acquisition and project future revenue. Statistical model drove profit and loss forecasts and guided all major business decisions

Management Accomplishments:

* Recruited, hired, and managed the engineering, operations, performance advertising, and finance teams; team grew to 300 members globally
* Established and managed MTailor's manufacturing subsidiary in Bangladesh from hiring the CEO to achieving economically successful scale
* Recruited and hired U.S. Head of Operations and directly supervised scaling team and moving certain work offshore

Stanford University

Research Assistant (Math Department)

September 2011 - June 2012 (10 months)

Stanford, California

* Proved the first lower bound on the performance of a prominent randomized linear algebra algorithm for efficiently computing approximate SVD and QR decompositions
* First author on paper published in Algorithmica Theoretical Challenges in Machine Learning 2013: https://arxiv.org/abs/1308.5697
* Facebook uses the algorithm and open-sourced their implementation: https://github.com/facebook/fbpca

# Education

Stanford University

Bachelors of Science (double major), Mathematics with Honors; Computer Science with Honors · (2008 - 2012)

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

Contact

www.linkedin.com/in/tal-s-02194557 (LinkedIn)

Top Skills

Financial Modeling
Investment Banking
Mergers & Acquisitions

Languages

Hebrew

# Tal S.

Tech and media and gaming
Los Angeles County, California, United States

# Experience

Infinite Canvas
CEO, Co-Founder
2021 - Present (1 year)

Immortals, LLC
Chief Digital Officer (CDO)
2018 - December 2020 (2 years)

BuzzFeed
Business Strategy and Growth
2017 - 2018 (1 year)

The Chernin Group
Manager and EIR
2014 - 2017 (3 years)

The Chernin Group manages, operates and invests in businesses in the sports, media, entertainment, and technology sectors

McKinsey & Company
Business Analyst
2012 - 2014 (2 years)

# Education

Horace mann

Yale University
Bachelor of Arts (B.A.), Political Economy

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Is this an amendment?** Yes

**Nature of Amendment:** Adding audited financial statements, increasing maximum to $5,000,000, updating cash on hand, increasing Early Bird threshold

**Name of Issuer:** Bit Body, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 09-06-2012

**Physical Address:** 548 Market St, San Francisco, CA, 94104

**Issuer Website:** https://www.mtailor.com/

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Simple Agreement for Future Equity (SAFE)

**Number of Securities Offered:** 50000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $50,000; interests will be sold in increments of $1; each investment is convertible to one share of stock as described under Item 13.

**Target Offering Amount:** $50,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

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

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 8

**Total Assets (Most Recent Fiscal Year):** $1,430,134.00

**Total Assets (Prior Fiscal Year):** $1,215,103.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $457,416.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $524,925.00

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $606,931.00

**Short-Term Debt (Prior Fiscal Year):** $687,967.00

**Long-Term Debt (Most Recent Fiscal Year):** $526,628.00

**Long-Term Debt (Prior Fiscal Year):** $150,000.00

**Revenues/Sales (Most Recent Fiscal Year):** $5,106,805.00

**Revenues/Sales (Prior Fiscal Year):** $6,582,505.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $1,980,937.00

**Cost of Goods Sold (Prior Fiscal Year):** $2,474,360.00

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

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

**Net Income (Most Recent Fiscal Year):** $42,628.00

**Net Income (Prior Fiscal Year):** $-1,078,633.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, PR, VI, 1V

### Signatures

**Issuer:** Bit Body, Inc.

**Signature:** Miles Penn

**Title:** Founder

---

**Signature:** Tal Shachar

**Title:** Director

**Date:** 02-13-2023

---

**Signature:** Rafael wittrn

**Title:** Board member

**Date:** 02-12-2023

---

**Signature:** Miles Penn

**Title:** Founder

**Date:** 02-12-2023