# EDGAR Filing Document

**Accession Number:** 0001966780
**File Stem:** 0001665160-23-000295
**Filing Date:** 2023-2
**Character Count:** 49049
**Document Hash:** ac38c0cd820b9be41e3f9a64db312638
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001665160-23-000295.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001665160-23-000295

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Earth Robotics Inc.
- **CENTRAL INDEX KEY:** 0001966780
- **IRS NUMBER:** 856292771
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31868
- **FILM NUMBER:** 23665444

**BUSINESS ADDRESS:**
- **STREET 1:** 6355 NW 36TH ST
- **STREET 2:** STE 307
- **CITY:** VIRGINIA GARDENS
- **STATE:** FL
- **ZIP:** 33166
- **BUSINESS PHONE:** 305-799-8612

**MAIL ADDRESS:**
- **STREET 1:** 6355 NW 36TH ST
- **STREET 2:** STE 307
- **CITY:** VIRGINIA GARDENS
- **STATE:** FL
- **ZIP:** 33166

### Attached PDF Documents

**Attachment 1:** `offeringmemoformc.pdf`

- Specializes in last-mile package delivery inside the buildings and in urban areas using robotics technology and our MicroHub.
- Our technology is in-house built.
- Our MicroHub is an urban logistic center that receives packages from all carriers and them delivers directly to residents, providing an efficient and streamlined delivery process
- Emphasizes security and privacy in package delivery and personalizes customer service for delivery tracking and satisfying customer needs.
- Affordable prices compared to other delivery services in the market
- Develops its own in-house level 5 autonomous technology, which sets it apart from other companies that may not have the same level of technology or expertise

### **Value of IP & Assets**

Earth Robotics has a patent plan which includes an analysis, development, review, and introduction of the initial portfolio of patents and trade secrets by Earth Robotics Inc.

Currently, our portfolio includes our patent filed with the USPTO (application #17/864,350, issued 01/19/2023), proprietary source code, and trade secrets. With capital funding to cover further development costs and future filings, we plan to obtain additional IP protections covering our product's Motion, Navigation, Power, and Wireless Communication Systems, as well as for our User App and Cloud infrastructure.

### **Success of Management**

Developing software applications, as well as hardware for companies that hire us for past outside projects, has allowed us to generate our own income that contributes to maintaining the operation and financing of the Company in the last year.

We plan to create a complete App for our users to allow them to schedule packages and delivery time frames all in one MicroHub, a logistics app that will control the robotic system. This backend system which we have a robust team to manage the logistic app. Our team members have deep industry qualifications, which include mechanical engineering experience for creating a robot structure, 4 wheel drive system, & an automatic roller door.

### **Current Traction & Future Roadmap**

Given the opportunity for the business model and the need for the service offered, our product can easily fit the market, and all the operational, technical, and economic phases of the project as well.

### **Conclusion**

Based on its evaluation of the above, the Company believes its pre-money valuation of $17,128,668.25 is accurate.

# *Disclaimers*

*The Company set its valuation internally, without a formal-third party independent evaluation.*

*The pre-money valuation has been calculated on a fully diluted basis. In making this calculation, we have assumed: (i) all preferred stock is converted to common stock; (ii) all outstanding options, warrants, and other securities with a right to acquire shares are exercised; and (iii) any shares reserved for issuance under a stock plan are issued.*

*The pre-money valuation does not take into account any convertible securities currently outstanding. The Company currently has $335,000.00 in Simple Agreements for Future Equity (SAFEs) outstanding. Please refer to the Company Securities section of the Offering Memorandum for further details regarding current outstanding convertible securities which may affect your ownership in the future.*

## **Use of Proceeds**

If we raise the Target Offering Amount of $14,997.70 we plan to use these proceeds as follows:

- *StartEngine Platform Fees*  
  5.5%
- *StartEngine Service Fees*  
  94.5%  
  StartEngine Service Fees

If we raise the over allotment amount of $1,234,997.85, we plan to use these proceeds as follows:

- *StartEngine Platform Fees*  
  5.5%
- *Research & Development*  
  13.0%  
  We will use 13.45% of the funds raised for market and customer research, new product development and market testing.
- *Inventory*  
  26.0%  
  We will use 26% of the funds raised to open 1 central receiver to handle up to 6000 units (avg of 20 buildings) for the Company's first location and one building with robot to handle the expected package in preparation of the expansion of the company having into our forecast more than 5 central receiver in the next

months of operations.

- *Company Employment*

43.0%

We will use 43% of the funds to hire key personnel for daily operations, including the following roles: Office Administration, Sales and Marketing, Customer service, etc. Wages to be commensurate with training, experience and position.

- *Working Capital*

12.5%

We will use 18.04% of the funds for working capital to cover expenses for the initial launch, product expansion, etc. as well as ongoing day-to-day operations of the Company.

The Company may change the intended use of proceeds if our officers believe it is in the best interests of the company.

## Regulatory Information

### Disqualification

No disqualifying event has been recorded in respect to the company or its officers or directors.

### Compliance Failure

The company has not previously failed to comply with the requirements of Regulation Crowdfunding.

### Ongoing Reporting

The Company will file a report electronically with the SEC annually and post the report on its website no later than April 29 (120 days after Fiscal Year End). Once posted, the annual report may be found on the Company's website at https://www.earthrobotics.co/ (test).

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

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

(2) it has filed at least one (1) annual report pursuant to Regulation Crowdfunding and has fewer than three hundred (300) holders of record and has total assets that do not exceed $10,000,000;

(3) it has filed at least three (3) annual reports pursuant to Regulation Crowdfunding;

(4) it or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or

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

## Updates

Updates on the status of this Offering may be found at:
www.startengine.com/earthrobotics

## Investing Process

See Exhibit E to the Offering Statement of which this Offering Memorandum forms a part.

# **EXHIBIT B TO FORM C**

FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANT'S REVIEW FOR Earth Robotics Inc.

*[See attached]*

# EARTH ROBOTICS, INC.

# FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021 AND 2020
(Unaudited)

# INDEX TO FINANCIAL STATEMENTS

(UNAUDITED)

|  | Page |
| --- | --- |
| INDEPENDENT ACCOUNTANT'S REVIEW REPORT | 1 |
| FINANCIAL STATEMENTS: |  |
| Balance Sheet | 2 |
| Statement of Operations | 3 |
| Statement of Changes in Stockholders' Equity | 4 |
| Statement of Cash Flows | 5 |
| Notes to Financial Statements | 6 |

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Board of Directors
Earth Robotics, Inc.
Miami, Florida

We have reviewed the accompanying financial statements of Earth Robotics, Inc. (the "Company,"), which comprise the balance sheet as of December 31, 2021 and December 31, 2020, and the related statement of operations, statement of shareholders' equity (deficit), and cash flows for the year ending December 31, 2021 and December 31, 2020, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

### Management's Responsibility for the Financial Statements

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

### Accountant's Responsibility

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

### Accountant's Conclusion

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

### Going Concern

As discussed in Note 11, 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.

November 25, 2022
Los Angeles, California

- 1 -

# EARTH ROBOTICS INC.

# BALANCE SHEET

# (UNAUDITED)

| As of December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| ASSETS |  |  |
| Current Assets: |  |  |
| Cash & Cash Equivalents | $3,807 | $885 |
| Total Current Assets | 3,807 | 885 |
| Property and Equipment, net | 127,510 | 33,539 |
| Intangible Assets | 40,169 | 2,187 |
| Total Assets | $171,486 | $36,610 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Simple Agreement for Future Equity (SAFEs) | 335,000 | - |
| Total Liabilities | 335,000 | - |
| STOCKHOLDERS EQUITY |  |  |
| Common Stock | 100 | 100 |
| Additional Paid in Capital | 601,490 | 187,628 |
| Retained Earnings/(Accumulated Deficit) | (765,105) | (151,118) |
| Total Stockholders' Equity | (163,514) | 36,610 |
| Total Liabilities and Stockholders' Equity | $171,486 | $36,610 |

See accompanying notes to financial statements.

- 2 -

# **EARTH ROBOTICS INC.**  
 **STATEMENTS OF OPERATIONS**  
 **(UNAUDITED)**---

| For Fiscal Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| Net Revenue | $ - | $ - |
| Cost of Goods Sold | - | - |
| Gross profit | - | - |
| Operating expenses |  |  |
| General and Administrative | 171,323 | 51,068 |
| Research and Development | 412,151 | 92,830 |
| Sales and Marketing | 30,512 | 7,220 |
| Total operating expenses | 613,987 | 151,118 |
| Operating Income/(Loss) | (613,987) | (151,118) |
| Interest Expense | - | - |
| Other Loss/(Income) | - | - |
| Income/(Loss) before provision for income taxes | (613,987) | (151,118) |
| Provision/(Benefit) for income taxes | - | - |
| Net Income/(Net Loss) | $(613,987) | $(151,118) |

*See accompanying notes to financial statements.*

---- 3 -

# **EARTH ROBOTICS INC.**  
 **STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**  
 **(UNAUDITED)**---

| (in , $US) | Common Stock |  | Additional Paid In Capital | Retained earnings/ (Accumulated Deficit) | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- |
|  | Shares | Amount |  |  |  |
| Balance-August 20, 2020 |  |  |  |  |  |
| Issuance of Stock | 100,000 | $100 | $187,628 |  | $187,728 |
| Net income/(loss) |  |  |  | $(151,118) | (151,118) |
| Balance-December 31, 2020 | 100,000 | 100 | 187,628 | $(151,118) | $36,610 |
| Capital Contribution | - | - | 413,862 |  | 413,862 |
| Net income/(loss) |  |  |  | (613,987) | (613,987) |
| Balance-December 31, 2021 | 100,000 | $100 | $601,490 | $(765,105) | $(163,514) |

*See accompanying notes to financial statements.*

---- 4 -

# **EARTH ROBOTICS INC.**  
 **STATEMENTS OF CASH FLOWS**  
 **(UNAUDITED)**---

| For Fiscal Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| CASH FLOW FROM OPERATING ACTIVITIES |  |  |
| Net income/(loss) | $(613,987) | $(151,118) |
| Adjustments to reconcile net income to net cash provided/(used) by operating activities: |  |  |
| Depreciation of Property | 33,974 | 8,385 |
| Amortization of Intangibles | 4,490 | 243 |
| Changes in operating assets and liabilities: |  |  |
| Net cash provided/(used) by operating activities | (575,523) | (142,490) |
| CASH FLOW FROM INVESTING ACTIVITIES |  |  |
| Purchases of Property and Equipment | (127,945) | (41,923) |
| Purchases of Intangible Assets | (42,472) | (2,430) |
| Net cash provided/(used) in investing activities | (170,418) | (44,353) |
| CASH FLOW FROM FINANCING ACTIVITIES |  |  |
| Capital Contribution | 413,862 | 187,728 |
| Borrowing on SAFEs | 335,000 | - |
| Net cash provided/(used) by financing activities | 748,862 | 187,728 |
| Change in Cash | 2,922 | 885 |
| Cash-beginning of year | 885 | - |
| Cash-end of year | $3,807 | $885 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |  |
| Cash paid during the year for interest | $ - | $ - |
| Cash paid during the year for income taxes | $ - | $ - |
| OTHER NONCASH INVESTING AND FINANCING ACTIVITIES AND SUPPLEMENTAL DISCLOSURES |  |  |
| Purchase of property and equipment not yet paid for | $ - | $ - |
| Issuance of equity in return for note | - | - |
| Issuance of equity in return for accrued payroll and other liabilities | - | - |

*See accompanying notes to financial statements.*

---- 5 -

# EARTH ROBOTICS INC.

## NOTES TO FINANCIAL STATEMENTS

**FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

### 1. NATURE OF OPERATIONS

Earth Robotics Inc. was incorporated on August 20, 2020, in the state of Delaware. The financial statements of Earth Robotics Inc. (which may be referred to as the “Company”, “we”, “us”, or “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s headquarters are located in Miami, Florida.

We are a robotics company working to solve the current problem of the package overflow buildings are facing these days. We have recently launched an autonomous package delivery ecosystem, made up of an autonomous bot, elevator control system, user app, ground-level package storage, and charging center. The system can be deployed in both multi-dwelling residential buildings and commercial office campuses. Earth Robotics offers the possibility of making people’s lives easier by bringing our robots into residential complexes, taking all package deliveries to a new level. Health and safety are the primary focus.

### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”). The Company has adopted the calendar year as its basis of reporting.

#### Use of Estimates

The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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 in banks. The Company’s cash is deposited in demand accounts at financial institutions that management believes are creditworthy. The Company’s cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of December 31, 2021, and December 31, 2020, the Company’s cash and cash equivalents did not exceed FDIC insured limits.

#### Property and Equipment

Property and equipment are stated at cost. Normal repairs and maintenance costs are charged to earnings as incurred and additions and major improvements are capitalized. The cost of assets retired or otherwise disposed of, and the related depreciation are eliminated from the accounts in the period of disposal and the resulting gain or loss is credited or charged to earnings.

---- 6 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

Depreciation is computed over the estimated useful lives of the related asset type or term of the operating lease using the straight-line method for financial statement purposes. The estimated service lives for property and equipment are as follows:

| Category | Useful Life |
| --- | --- |
| Hardware | 5 years |
| Equipment | 5 years |
| Office equipment | 5 years |

# **Impairment of Long-lived Assets**

Long-lived assets, such as property and equipment and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We look for indicators of a trigger event for asset impairment and pay special attention to any adverse change in the extent or manner in which the asset is being used or in its physical condition. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a location level. Assets are reviewed using factors including, but not limited to, our future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to the assets, compared to the carrying value of the assets. If the sum of the undiscounted future cash flows of the assets does not exceed the carrying value of the assets, full or partial impairment may exist. If the asset carrying amount exceeds its fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is determined using an income approach, which requires discounting the estimated future cash flows associated with the asset.

# **Intangible Assets**

The Company capitalizes its software development costs which will be amortized over the expected period to be benefitted, which may be as long as ten years.

# **Income Taxes**

Earth Robotics Inc. is a C corporation for income tax purposes. The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense. The Company records tax positions taken or expected to be taken in a tax return based upon the amount that is more likely than not to be realized or paid, including in connection with the resolution of any related appeals or other legal processes. Accordingly, the Company recognizes liabilities for certain unrecognized tax benefits based on the amounts that are more likely than not to be settled with the relevant taxing authority. The Company recognizes interest and/or penalties related to unrecognized tax benefits as a component of income tax expense.

---- 7 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

# *Concentration of Credit Risk*

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be creditworthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

# **Revenue Recognition**

The Company is currently pre-revenue and will follow the provisions and the disclosure requirements described in ASU 2014-09 also referred to as Topic 606. Revenue recognition, according to Topic 606, is determined using the following steps: Recognition of revenue when, or how, a performance obligation is met: revenues are recognized when or as control of the promised goods or services is transferred to customers.

Revenue recognition, according to Topic 606, is determined using the following steps:

1) Identification of the contract, or contracts, with the customer: the Company determines the existence of a contract with a customer when the contract is mutually approved; the rights of each party in relation to the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the capacity and intention to pay, and the contract has commercial substance.

2) Identification of performance obligations in the contract: performance obligations consist of a promised in a contract (written or oral) with a customer to transfer to the customer either a good or service (or a bundle of goods or services) that is distinct or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

3) Recognition of revenue when, or how, a performance obligation is met: revenues are recognized when or as control of the promised goods or services is transferred to customers.

The Company will earn revenues from an autonomous package delivery ecosystem. The system can be deployed in both multi-dwelling residential buildings and commercial office campuses.

# **Advertising and Promotion**

Advertising and promotional costs are expensed as incurred. Advertising and promotional expenses for the years ended December 31, 2021, and December 31, 2020, amounted to $30,512 and $7,220, respectively, which is included in sales and marketing expenses.

# **Research and Development Costs**

Costs incurred in the research and development of the Company’s products are expensed as incurred.

# **Fair Value of Financial Instruments**

The carrying value of the Company’s financial instruments included in current assets and current liabilities (such as cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term nature of such instruments).

---- 8 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

The inputs used to measure fair value are based on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to lowest priority, are described below:

**Level 1**-Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

**Level 2**-Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

**Level 3**-Unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

# **COVID-19**

In March 2020, the outbreak and spread of the COVID-19 virus was classified as a global pandemic by the World Health Organization. This widespread disease impacted the Company’s business operations, including its employees, customers, vendors, and communities. The COVID-19 pandemic may continue to impact the Company’s business operations and financial operating results, and there is substantial uncertainty in the nature and degree of its continued effects over time. The extent to which the pandemic impacts the business going forward will depend on numerous evolving factors management cannot reliably predict, including the duration and scope of the pandemic; governmental, business, and individuals’ actions in response to the pandemic; and the impact on economic activity including the possibility of recession or financial market instability. These factors may adversely impact consumer and business spending on products as well as customers’ ability to pay for products and services on an ongoing basis. This uncertainty also affects management’s accounting estimates and assumptions, which could result in greater variability in a variety of areas that depend on these estimates and assumptions, including investments, receivables, and forward-looking guidance.

# **Subsequent Events**

The Company considers events or transactions that occur after the balance sheet date, but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through November 25, 2022, which is the date the financial statements were issued.

# **Recently Issued and Adopted Accounting Pronouncements**

FASB issued ASU No. 2019-02, leases, that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than twelve months. ASU 2019-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard for nonpublic entities will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and early application is permitted. We are currently evaluating the effect that the updated standard will have on financial statements and related disclosures.

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide

---- 9 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

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.

# **3. PROPERTY AND EQUIPMENT**

As of December 31, 2021, and December 31, 2020, property and equipment consists of:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Hardware | $141,570 | $17,677 |
| Equipment | 15,589 | 6,256 |
| Office equipment | 12,709 | 17,991 |
| Property and Equipment, at Cost | 169,868 | 41,923 |
| Accumulated depreciation | (42,358) | (8,385) |
| Property and Equipment, Net | $127,510 | $33,539 |

Depreciation expenses for property and equipment for the fiscal year ended December 31, 2021, and 2020 were in the amount of $33,974 and $8,385, respectively.

# **4. INTANGIBLE ASSETS**

As of December 31, 2021, and December 31, 2020, intangible asset consists of:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Software | $44,902 | $2,430 |
| Intangible assets, at cost | 44,902 | 2,430 |
| Accumulated amortization | (4,733) | (243) |
| Intangible assets, Net | $40,169 | $2,187 |

Entire intangible assets have been amortized. Amortization expenses for intangible assets for the fiscal year ended December 31, 2021, and 2020 were in the amount of $4,490 and $243, respectively.

The following table summarizes the estimated amortization expense relating to the Company's intangible assets as of December 31, 2021:

| Period | Expense |
| --- | --- |
| 2022 | $(4,490) |
| 2023 | (4,490) |
| 2024 | (4,490) |
| 2025 | (4,490) |
| Thereafter | (22,208) |
| Total | $(40,169) |

- 10 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

# **5. CAPITALIZATION AND EQUITY TRANSACTIONS**

# **Common Stock**

The Company is authorized to issue 400,000 shares of Common Stock with a par value of $0.001. As of December 31, 2021, and December 31, 2020, 100,000 Common Stock have been issued and are outstanding.

# **6. DEBT**

# **SAFE(s)**

The details of the Company’s Simple Agreements for Future Equity (“SAFE”) and the terms are as follows:

| SAFE(s) | Borrowing Period | Valuation Cap | Discount | As of Year Ended December 31, |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  | 2021 | 2020 |
| Safes 2021 | Fiscal Year 2021 | Not set | 20% | $335,000 |  |
| Total SAFE(s) |  |  |  | $335,000 | $ - |

If there is an Equity Financing before the termination of this SAFE, on the initial closing of such Equity Financing, this SAFE will automatically convert into the number of shares of SAFE Preferred Stock equal to the purchase amount divided by the Discount Price. If there is a Liquidity Event before the termination of this SAFE, this SAFE will automatically be entitled to receive a portion of proceeds, due and payable to the Investor immediately prior to, or concurrent with, the consummation of such Liquidity Event, equal to the greater of (i) the purchase amount (the “Cash-Out Amount”) or (ii) the amount payable on the number of shares of Common Stock equal to the purchase amount divided by the Liquidity Price (the “Conversion Amount”). If there is a Dissolution Event before the termination of this Safe, the Investor will automatically be entitled to receive a portion of proceeds equal to the Cash-Out Amount, due and payable to the investor immediately prior to the consummation of the Dissolution Event. In a Liquidity Event or Dissolution Event, this SAFE is intended to operate like standard non-participating Preferred Stock. The Investor’s right to receive its Cash-Out Amount is: (i) Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Capital Stock); (ii) On par with payments for other SAFEs and/or Preferred Stock, and if the applicable proceeds are insufficient to permit full payments to the investor and such other SAFEs and/or Preferred Stock, the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Stock in proportion to the full payments that would otherwise be due; and (iii) Senior to payments for Common Stock. Since the SAFEs are potentially settleable in cash, the Company has decided to classify them as a liability.

---- 11 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

# **7. INCOME TAXES**

The provision for income taxes for the year ended December 31, 2021, and December 31, 2020 consists of the following:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Net Operating Loss | $(94,807) | $(1,720) |
| Valuation Allowance | 94,807 | 1,720 |
| Net Provision for income tax | $ - | $ - |

Significant components of the Company's deferred tax assets and liabilities on December 31, 2021, and December 31, 2020 are as follows:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Net Operating Loss | $(96,528) | $(1,720) |
| Valuation Allowance | 96,528 | 1,720 |
| Total Deferred Tax Asset | $ - | $ - |

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, the Company has determined that it is more likely than not that the Company will not recognize the benefits of the federal and state net deferred tax assets, and, as a result, full valuation allowance has been set against its net deferred tax assets as of December 31, 2021, and December 31, 2020. The amount of the deferred tax asset to be realized could be adjusted if estimates of future taxable income during the carry-forward period are reduced or increased.

For the fiscal year ending December 31, 2021, the Company had federal cumulative net operating loss ('NOL') carryforwards of $379,164, and the Company had state net operating loss ('NOL') carryforwards of approximately $379,164. Utilization of some of the federal and state NOL carryforwards to reduce future income taxes will depend on the Company's ability to generate sufficient taxable income prior to the expiration of the carryforwards. The federal net operating loss carryforward is subject to an 80% limitation on taxable income, does not expire, and will carry on indefinitely.

The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not to be sustained on a tax return upon examination by the relevant taxing authority, based on the technical merits of the position. As of December 31, 2021, and December 31, 2020, the Company had no unrecognized tax benefits.

The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2021, and December 31, 2020, the Company had no accrued interest and penalties related to uncertain tax positions.

# **8. RELATED PARTY**

During 2022, the related parties Friendots LLC (a company fully owned by one of the major shareholders of Earth Robotics) performed software services for Earth Robotics in the amount of $48,000.

---- 12 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

During 2022, the related parties Fix Computer LLC (a company fully owned by one of the major shareholder of Earth Robotics) performed software services for Earth Robotics in the amount of $30,800.

# **9. COMMITMENTS AND CONTINGENCIES**

# **Contingencies**

The Company's operations are subject to a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations.

# **Litigation and Claims**

From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of December 31, 2021, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company's operations.

# **10. SUBSEQUENT EVENTS**

The Company has evaluated subsequent events for the period from December 31, 2021, through November 24, 2022, which is the date the financial statements were available to be issued.

In May of 2022, the company entered into a lease agreement with Las Mercedes Holding III, LLC for renting of premises located in Virginia Gardens, Florida. The lease commenced June 1st, 2022 and ends on May 31st, 2027 with base rent of $32,500 per annum.

There have been no other events or transactions during this time which would have a material effect on these financial statements.

# **11. GOING CONCERN**

The accompanying financial statements have 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 Company has a net operating loss of $613,987, an operating cash flow loss of $170,418, and liquid assets in cash of $3,807, which is less than a year's worth of cash reserves as of December 31, 2021. These factors normally raise doubt about the Company's ability to continue as a going concern.

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. During the next twelve months, the Company intends to fund its operations through debt and/or equity financing.

---- 13 -

# **EARTH ROBOTICS INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

There are no assurances that management will be able to raise capital on terms acceptable to the Company. If it is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned development, which could harm its business, financial condition, and operating results. The accompanying financial statements do not include any adjustments that might result from these uncertainties.

- 14 -

# **EXHIBIT C TO FORM C**

# **PROFILE SCREENSHOTS**

*[See attached]*

|  | 2017 | 2016 |
| --- | --- | --- |
| Cost of sales | $3.4 | $3.5 |
| Gross margin | 1.9% | 1.8% |

# EXHIBIT D TO FORM C

## VIDEO TRANSCRIPT

E-commerce ballooned by 50% to 870 billion dollars from 2019 to 2022, a boom that’s created a massive problem for more than 17,000 upscale urban buildings around the country.

Buildings from New York to Los Angeles are now drowning in as many as 300 packages and 120 food deliveries every single day.

It’s been a logistical nightmare for building owners and tenants that’s snowballed into lost or stolen packages, overworked staff, and unhappy residents

Earth Robotics is solving this problem with Lu-an indoor delivery robot that automates the final 500 feet of a delivery journey for 95% of packages, freeing up a building’s limited manpower to focus on real issues like repairs and security.

Here’s how it works:

In two simple steps, delivery drivers notify tenants that their package has arrived using our app, and tenants can confirm they’re available or reschedule. Then, Lu takes the package from there, navigating the building to deliver it directly to the tenant.

Automating this simple 5-minute journey, repeated hundreds of times over the course of the day, frees up building staff to focus on residents and manage high-priority building needs. Luxury high-rise HOAs can offer a sleek new amenity that increases rent revenue, and tenants receive on-demand deliveries that reduce theft of important packages.

We make money through a subscription fee of $3500/month payment to the building HOAs plus $15 per unit, in addition to installation and initiation fees. For example, a building with 300 units will generate $8,000/month, while a building with 400 will generate $9,500.

Lu is just the tip of a patented robotic ecosystem that works with kiosks, network communication, elevator controls, and a secure cloud platform.

We have our sights set on expanding this even further in the 1.2 billion dollars robotic indoor delivery market to automate building security, janitorial, and guest access services.

Our first pilot program in Miami is already proving what’s possible, earning the spotlight with Mayor Francis Suarez on Cafecito Talk. To date, we’ve signed customer LOIs representing 20 buildings and secured a contract with one of the largest property management companies in the US.

We plan to complete fully-operational building installations for 5 out of those 20 properties and jumpstart our production to meet the demand.

The way we see it, one small step for the delivery man can be one giant leap for Earth Robotics.

Own a stake in the company that’s bringing robotic innovation to your front door. Invest today.

# STARTENGINE SUBSCRIPTION PROCESS (Exhibit E)

# Platform Compensation

- As compensation for the services provided by StartEngine Capital, the issuer is required to pay to StartEngine Capital a fee consisting of a 5.5-13% (five and one-half to thirteen) commission based on the dollar amount of securities sold in the Offering and paid upon disbursement of funds from escrow at the time of a closing. The commission is paid in cash and in securities of the Issuer identical to those offered to the public in the Offering at the sole discretion of StartEngine Capital. Additionally, the issuer must reimburse certain expenses related to the Offering. The securities issued to StartEngine Capital, if any, will be of the same class and have the same terms, conditions and rights as the securities being offered and sold by the issuer on StartEngine Capital's website.
- As compensation for the services provided by StartEngine Capital, investors are also required to pay StartEngine Capital a fee consisting of a 0-3.5% (zero to three and a half percent) service fee based on the dollar amount of securities purchased in each investment.

# Information Regarding Length of Time of Offering

- Investment Cancellations: Investors will have up to 48 hours prior to the end of the offering period to change their minds and cancel their investment commitments for any reason. Once within 48 hours of ending, investors will not be able to cancel for any reason, even if they make a commitment during this period.
- Material Changes: Material changes to an offering include but are not limited to: A change in minimum offering amount, change in security price, change in management, material change to financial information, etc. If an issuer makes a material change to the offering terms or other information disclosed, including a change to the offering deadline, investors will be given five business days to reconfirm their investment commitment. If investors do not reconfirm, their investment will be canceled and the funds will be returned.

# Hitting The Target Goal Early & Oversubscriptions

- StartEngine Capital will notify investors by email when the target offering amount has hit 25%, 50% and 100% of the funding goal. If the issuer hits its goal early, the issuer can create a new target deadline at least 5 business days out. Investors will be notified of the new target deadline via email and will then have the opportunity to cancel up to 48 hours before the new deadline.
- Oversubscriptions: We require all issuers to accept oversubscriptions. This may not be possible if: 1) it vaults an issuer into a different category for financial statement requirements (and they do not have the requisite financial statements); or 2) they reach $5M in investments. In the event of an oversubscription, shares will be allocated at the discretion of the issuer.
- 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 canceled and committed funds will be returned.
- If a StartEngine issuer reaches its target offering amount prior to the deadline, it may conduct an initial closing of the offering early if they provide notice of the new offering deadline at least five business days prior to the new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). StartEngine will notify

investors when the issuer meets its target offering amount. Thereafter, the issuer may conduct additional closings until the offering deadline.

# Minimum and Maximum Investment Amounts

- In order to invest, to commit to an investment or to communicate on our platform, users must open an account on StartEngine Capital and provide certain personal and non- personal information including information related to income, net worth, and other investments.
- Investor Limitations: There are no investment limits for investing in crowdfunding offerings for accredited investors. Non-accredited investors are limited in how much they can invest on all crowdfunding offerings during any 12-month period. The limitation on how much they can invest depends on their net worth (excluding the value of their primary residence) and annual income. If either their annual income or net worth is less than $107,000, then during any 12-month period, they can invest either $2,200 or 5% of their annual income or net worth, whichever is greater. If both their annual income and net worth are equal to or more than $107,000, then during any 12-month period, they can invest up to 10% of annual income or net worth, whichever is greater, but their investments cannot exceed $107,000.

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Earth Robotics Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 08-20-2020

**Physical Address:** 6355 NW 36TH ST STE 307, VIRGINIA GARDENS, FL, 33166

**Issuer Website:** https://www.earthrobotics.co/

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

**Intermediary Name:** StartEngine Capital, LLC

**Intermediary CIK:** 0001665160

**Intermediary File Number:** 007-00007

### Offering Information

**Compensation to Intermediary:** up to 9% percent

**Financial Interest in Issuer:** Three percent (3%) of securities of the total amount of investments raised in the offering, along the same terms as investors.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 6382

**Price per Security:** $2.35

**Method for Determining Price:** N/A

**Target Offering Amount:** $14,997.70

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** At issuer's discretion, with priority given to StartEngine Owners

**Maximum Offering Amount:** $1,234,997.85

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 5

**Total Assets (Most Recent Fiscal Year):** $171,486.00

**Total Assets (Prior Fiscal Year):** $36,610.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $3,807.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $885.00

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

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

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

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

**Long-Term Debt (Most Recent Fiscal Year):** $335,000.00

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

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

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

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

**Net Income (Most Recent Fiscal Year):** $-613,987.00

**Net Income (Prior Fiscal Year):** $-151,118.00

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** Earth Robotics Inc.

**Signature:** Ismael Emacha

**Title:** CEO, Director

---

**Signature:** Ismael Emacha

**Title:** CEO, Director

**Date:** 02-24-2023

---

**Signature:** Amir Emacha

**Title:** COO, principal accounting officer, Director

**Date:** 02-24-2023