# EDGAR Filing Document

**Accession Number:** 0001822697
**File Stem:** 0001746059-23-000071
**Filing Date:** 2023-3
**Character Count:** 235554
**Document Hash:** a29c8a8653b9f8b6743a777ff2283189
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001746059-23-000071.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001746059-23-000071

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DEBELLATION BREWING CO.
- **CENTRAL INDEX KEY:** 0001822697
- **IRS NUMBER:** 834656836
- **STATE OF INCORPORATION:** GA

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-32046
- **FILM NUMBER:** 23760648

**BUSINESS ADDRESS:**
- **STREET 1:** 822 LONGWOOD DR
- **CITY:** RICHMOND HILL
- **STATE:** GA
- **ZIP:** 31324
- **BUSINESS PHONE:** (912) 321-9166

**MAIL ADDRESS:**
- **STREET 1:** 822 LONGWOOD DR
- **CITY:** RICHMOND HILL
- **STATE:** GA
- **ZIP:** 31324

### Attached PDF Documents

**Attachment 1:** `debellation5_offmo.pdf`

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

## OFFERING MEMORANDUM

facilitated by

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

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# DEBELLATION BREWING CO.

## FORM C

### OFFERING MEMORANDUM

#### Purpose of This Form

A company that wants to raise money using Regulation Crowdfunding must give certain information to prospective investors, so investors will have a basis for making an informed decision. The Securities and Exchange Commission, or SEC, has issued regulations at 17 CFR §227.201 listing the information companies must provide. This form - Form C - is the form used to provide that information.

Each heading below corresponds to a section of the SEC's regulations under 17 CFR §227.201.

#### (A) The Company

| Name of Company | DEBELLATION BREWING CO. |
| --- | --- |
| State of Organization | GA |
| Date of Formation | 04/28/2019 |
| Entity Type | Corporation |
| Street Address | 822 Longwood Dr, Richmond Hill GA, 31324 |
| Website Address | https://www.debellationbrewing.com/ |

#### (B) Directors and Officers of the Company

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| Key Person | Teresa Goodell |
| --- | --- |
| Position with the Company | Title First Year Treasurer 2019 |
| Other business experience (last three years) | List any other titles and dates of positions held (with this business or other employers) during the past three years with an indication of job responsibilities. For example: Owner - Restaurant - Bought a struggling tiny Irish Pub of 1100sf with $220k in gross revenue in 2017 and expanded it later that year to almost 4000sf with $1.25 million in gross revenue by the end of 2019. Duties included hiring/firing, payroll, inventory management, accounts receivables/payables, and of course filling in positions wherever needed when we had no replacements or call-ins. Hands on ensures success! |

| Key Person | David Goodell |
| --- | --- |
| Position with the Company | Title First Year CEO 2019 |
| Other business experience (last three years) | List any other titles and dates of positions held (with this business or other employers) during the past three years with an indication of job responsibilities. For example: Owner - Restaurant - Bought a struggling tiny Irish Pub of 1100sf with $220k in gross revenue in 2017 and expanded it later that year to almost 4000sf with $1.25 million in gross revenue by the end of 2019. Sold it to pursue the passion of brewing beer in a real brewery! We had awards after awards culminating with Bryan County's Best Chef! That Irish pub continues |

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to do well under the new ownership! Duties included all marketing and advertising, hiring/firing and training of all staff (35-40 employees), payroll, inventory management, accounts receivables/payables, filing of all state and federal forms and tax payments, and of course filling in positions wherever needed when we had no replacements or call-ins. You name it, I did it along with help from my wife. I had my hands in every aspect of the business on a daily basis. Hands on ensures success!

- Started as homebrewer back in 2013 and created a brewing club in 2015 consisting of locals and other interested people. Taught others the fine art of brewing on a 1/2BBL pro-series Blichmann hybrid setup. We met monthly and also with other breweries in the area for feedback and mentoring. David Goodell has since won back to back competitions in the annual Domras Cup for 2019 and 2020.

# **(C) Each Person Who Owns 20% or More of the Voting Power**

| Name of Holder | % of Voting Power (Prior to Offering) |
| --- | --- |
| Teresa Goodell | 43% |
| David Goodell | 44% |

# **(D) The Company's Business and Business Plan**

The Team

David Goodell, CEO and Brewer

Mr. Goodell is a retired Army Commissioned Officer turned brewer and has experience-based knowledge; he has always been a self-motivator and accomplished every goal he set out to pursue throughout his career. His professional interests focus on building a successful business through the production of high-quality craft beer, where he has over six years of hands-on experience.

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Mr. Goodell has won back to back 1st place awards in the annual Domras Cup Beer Homebrewers Beer Competition for 2019 and 2020. His knowledge of brewing, restaurant ownership, marketing, I.T. and military leadership experience allow him to be successful at any business he chooses to run and operate.

Teresa Goodell, General Manager

Mrs. Goodell is the General Manager of Debellation Brewing Co. Teresa is also a military Veteran! She is a highly motivated individual who excels at whatever she does. She has been preparing and researching for this venture for the past few years co-running their prior restaurant, learning HR, staffing and payroll. Her strategic planning and execution make her well suited to lead the Company as 2nd in command!

Business Overview

"Like the Norse Vikings before us and in our family lineage, Debellation Brewing Co wants to leave its mark on the world with our beers. Discovering new styles and flavors of beer that people truly enjoy is what we strive to accomplish." Debellation Brewing Co will be the only craft beer brewery based in the city of Richmond Hill, Georgia with no other brewery within a 20 minute drive. We are situated in full view of Interstate 95 off exit 90 where millions of cars drive by every month. Come drink beer worthy of the Gods! SKOL!

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Intended Use of Funds

We are currently seeking investment to build an upper observation deck above the bar inside the taproom to accommodate more guests and to give them the bird's eye views of the brewery and taproom. We are also looking to add another Fermenter to keep up with the growing demands of our beers. Later this year, we will possibly offer another investment opportunity to expand our patio and close it in for usable space.

- Exceeded sale projections each year since opening
- Additional space for guests needed
- Sales outpacing beer production

Debellation Brewing Co. is the only craft beer brewery based in the city of Richmond Hill, Georgia. The Company specializes in producing delicious new-styled Craft Beer. Debellation Brewing is offering a range of craft beers with unique flavors that are in demand among consumers. The Company's management is extensively experienced with expert craft beer making knowledge, understanding consumer preferences and working with a particular goal to satisfy their customers by introducing innovative flavors in the Craft beer industry. We also have food trucks here daily!

Like the Norse Vikings before us and in our family lineage, Debellation Brewing wants to leave its mark on the world with our beers. Discovering new styles and flavors of beer that people truly enjoy is what we strive to accomplish.

Why Debellation Brewing Co?

- No local brewery in the city of Richmond Hill
- Extremely experienced owners with proven experience of over nine years. Their prior knowledge of restaurant ownership is also an asset when they bought a struggling 1100sf

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Irish Pub in 2016 with $220k in annual gross revenue and transformed it into a 4000 square feet Irish pub with roughly $1.25 million in annual gross revenue by 2019. This additional local business will also allow Debellation Brewing Co. to take benefit of their built-in customer base right from the start, an advantage over many other brewery start-ups.

- The community of loyal customers is desperately waiting for the launch of Debellation Brewing
- Debellation Brewing Co strongly believes in unique flavor combinations and aims to introduce unique products to exceed the expectations of beer consumers.
- Prime Location with several hotels, motels and gas stations in the immediate vicinity.

Business Model: Debellation Brewing Co. will be operating as a producer and retailer. The Company's activities will involve the following:

- Production: As a producer of top-notch craft beers, Debellation Brewing Co. will work with external suppliers to buy quality raw material to produce premium craft beers.
- Distribution: The Company anticipates that 90% of its sales will occur through a retail location with sales of craft beer, growlers, canned beer and merchandise. The remaining 10% will be the distribution of kegs to retail locations. These numbers will undoubtedly change as the production brewery expands in the future.

In addition to that, Debellation Brewing Co. aims to generate strong demand through exceptional marketing strategies and through the introduction of unique products in the industry.

Phases:

Phase I: Debellation Brewing Company will initially start operations as a small microbrewery that will have a three-barrel brewhouse with an average of 200-500 barrels a year produced. It will sell beer flights to its guests, pints, growlers and growler fills, cans of beer to purchase for home consumption and merchandise for gifts or souvenirs.

Phase II: In the second phase, Debellation Brewing will expand into a 7-10 barrel brewhouse utilizing open space adjacent to it within 3-5 years.

For more information, please refer to the Page View included with this filing.

(E) Number of Employees

The Company currently has 2 employees. The Company may hire or discharge employees in the future to meet its objectives.

(F) Risks of Investing

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. Please review the Educational Materials for risks that are common to many of the companies on the MainVest platform.

THESE SECURITIES ARE OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER FEDERAL LAW. THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE "SEC") HAS NOT

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MADE AN INDEPENDENT DETERMINATION THAT THESE SECURITIES ARE EXEMPT FROM REGISTRATION. THE SEC HAS NOT PASSED UPON THE MERITS OF THE SECURITIES OR THE TERMS OF THE OFFERING, AND HAS NOT PASSED UPON THE ACCURACY OR COMPLETENESS OF THE OFFERING DOCUMENTS OR LITERATURE.

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.

Please refer to Appendix A for additional risks to consider when investing in this offering.

# **(G) Target Offering Amount and Offering Deadline**

| Target Offering Amount | $25,000 |
| --- | --- |
| Offering Deadline | May 27, 2022 |

If the sum of the investment commitments does not equal or exceed the Target Offering Amount as of the Offering Deadline, no securities will be sold in the offering, investment commitments will be canceled, and all committed funds will be returned. The Company may extend the Offering Deadline and shall treat such an extension as a material change to the original offer and provide Investors with notice and opportunity to reconfirm their investment in accordance with Section (K) of this Memorandum.

# **(H) Commitments that Exceed the Target Offering Amount**

| Will the Company accept commitments that exceed the Target Offering Amount? | Yes |
| --- | --- |
| What is the maximum you will accept in this Offering? | $35,000 |
| If Yes, how will the Company deal with the oversubscriptions? | We will accept subscriptions on a first-come, first-served basis. |

# **(I) How the Company Intends to Use the Money Raised in the Offering**

The Company is reasonably sure it will use the money raised in the offering as follows:

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| Use | Amount (Minimum) | Amount (Maximum) |
| --- | --- | --- |
| Build out of upper deck | $9,112 | $15,737 |
| Electrical parts and labor | $4,950 | $5,050 |
| Misc build out (furniture, Tv's, etc) | $1,000 | $3,600 |
| Fermentation tank | $8,250 | $8,250 |
| Mainvest Compensation | $1,687.5 | $2,362.5 |
| TOTAL | $24,999.5 | $34,999.5 |

The amounts listed estimates and are not intended to be exact description of the Company's expenditures. Exact allocation and use of funds may vary based upon legitimate business expenditures and economic factors.

#### (J) The Investment Process

##### To Invest

- Review this Form C and the Campaign Page
- If you decide to invest, enter an amount and press the Invest button
- Follow the instructions

##### TO CANCEL YOUR INVESTMENT

Send an email to info@mainvest.com no later than 48 hours before the Offering Deadline or go to the dashboard for your user account to cancel manually. In your email, include your name and the name of the Company.

##### Other Information on the Investment Process

- Investors may cancel an investment commitment until 48 hours prior to the Offering Deadline.
- MainVest will notify investors when and if the Target Offering Amount has been raised.
- If the Company reaches the Target Offering Amount before the Offering Deadline, it may close the offering early if it provides notice about the new Offering Deadline at least five business days before 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 before the Offering Deadline, the funds will be released to the Company upon closing of the offering and the investor will receive securities in exchange for his or her investment.

For additional information about the investment and cancellation process, see the Educational Materials.

#### (K) Material Changes

In the event the issuer undergoes a material change, the Investor will be notified of such change. The investor will have five (5) business days from the receipt of such notice to reconfirm their

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investment. IF AN INVESTOR DOES NOT RECONFIRM HIS OR HER INVESTMENT COMMITMENT WITHIN FIVE (5) DAYS OF THE NOTICE OF MATERIAL CHANGE BEING SENT, THE INVESTOR'S INVESTMENT COMMITMENT WILL BE CANCELLED, THE COMMITTED FUNDS WILL BE RETURNED, AND THE INVESTOR WILL NOT BE ISSUED ANY OF THE SECURITIES REFERENCED IN THIS OFFERING.

#### Explanation

A 'material change' means a change that an average, careful investor would want to know about before making an investment decision. If a material change occurs after you make an investment commitment but before the Offering closes, then the Company will notify you and ask whether you want to invest anyway. If you do not affirmatively choose to invest, then your commitment will be cancelled, your funds will be returned to you, and you will not receive any securities.

#### (L) Price of the Securities

The Company is offering 'securities' in the form of revenue sharing notes, which we refer to as 'Notes.' The Notes are being offered at their face amount. For example, you will pay $1,000 for a Note with a face amount of $1,000.

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## (M) Terms of the Securities

### Overview

The Company is offering “securities” in the form of revenue sharing notes, which we refer to as the “Notes.” The Terms of the Notes are set forth in the Revenue Share Agreement accompanying this Form C in Appendix A. Copies of the Note and Revenue Sharing Agreement are attached to this Form C.

### Summary of Terms

| Revenue Percentage 1 | 0.7 - 1.0% 2 |
| --- | --- |
| Payment Deadline | 2028-12-31 |
| Maximum Payment Multiple 3 - Early Investors - All Other Investors | 1.5 x 1.2 x |
| Sharing Start Date | The first day after disbursement that the company has revenues greater than one ($1) dollar |
| First Payment Date | The last day of the calendar quarter ending not less than 90 days after the Sharing Start Date |
| Seniority | Subordinated |
| Securitization | Unsecured |
| Accrual Rate | 3.65% |

$^{1}$ as defined in the note agreement included in Appendix A

$^{2}$ The rate of revenue sharing is calculated on a linear scale with a minimum rate of 0.7% and a maximum rate of 1.0% and is rounded to the nearest 1/10th percent. The final rate is based on the amount raised and is calculated after the offering has successfully closed. As the amount raised in the offering increases, the rate of revenue sharing increases. For example, a hypothetical offering could result in the following revenue sharing percentages, depending on the amount raised:

| Amount Raised | Revenue Sharing Percentage |
| --- | --- |
| $25,000 | 0.7% |
| $27,500 | 0.8% |
| $30,000 | 0.8% |
| $32,500 | 0.9% |
| $35,000 | 1.0% |

$^{3}$ To reward early participation, the investors who contribute the first $10,000.0 raised in the offering will receive a 1.5x cap. Investors who contribute after $10,000.0 has been raised in the offering will receive a 1.2x cap.

### Your Right to Payments under the Note

Your right to payments under the Note is set forth in the Note, together with a separate document

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called the Revenue Sharing Agreement. Copies of the Note and Revenue Sharing Agreement are attached to this Form C. Additionally, general terms are outlined below and in the Company's offering page.

# Obligation to Contribute Capital

Once you pay for your Note, you will have no obligation to contribute more money to the Company, and you will not be personally obligated for any debts of the Company. However, under some circumstances you could be required by law to return some or all of a distribution you receive from the Company.

# No Right to Transfer

You should plan to hold the Notes until maturity. The Notes will be illiquid (meaning you might not be able to sell them) for at least four reasons:

- The Revenue Sharing Agreement prohibits the sale or other transfer of Notes without the Company's consent.
- If you want to sell your Note the Company will have the first right of refusal to buy it, which could make it harder to find a buyer.
- Even if a sale were permitted, there is no ready market for Notes, as there would be for a publicly-traded stock.
- By law, for a period of one year you won't be allowed to transfer the Investor Shares except (i) to the Company itself, (ii) to an "accredited" investor, (iii) to a family or trust, or (iii) in a public offering of the Company's shares.

# Security

The Notes are not secured by any assets of the Company or any assets of persons associated with the Company.

# Modification of Terms of Notes

The terms of the Notes and the Revenue Sharing Agreement may be modified or amended with the consent of Investors holding 50% of the Notes, measured by the total amount outstanding under each Note.

# Other Classes of Securities

| Name of Security | Common Stock |
| --- | --- |
| Number of Shares Outstanding | 1500 |
| Describe Voting Rights of These Securities, Including Any Limitations on Voting Rights | Common Stock has Voting Rights |
| How these securities differ from the revenue sharing notes being offered to investors | Common stock is an equity security with voting rights, whereas, the Revenue Sharing Notes are debt securities without voting rights. |

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## Dilution of Rights

The Company has the right to create additional classes of securities, both equity securities and debt securities (e.g., other classes of promissory notes). Some of these additional classes of securities could have rights that are superior to those of the Notes. For example, the Company could issue promissory notes that are secured by specific property of the Company.

## The People Who Control the Company

Each of these people owns 20% or more of the total voting power of the Company:

| Name of Holder | % of Voting Power (Prior to Offering) |
| --- | --- |
| Teresa Goodell | 43% |
| David Goodell | 44% |

## How the Exercise of Voting Rights Could Affect You

You will receive payments with respect to your Note only if the Company makes enough money to pay you, or, if the Company does not make enough money to pay you, if there is enough value in the collateral the Company pledged as security for the Notes.

The people with voting rights control the Company and make all the decisions about running its business. If they make good business decisions, it is more likely you will be paid. If they make poor business decisions, it is less likely you will be paid. For example, if they hire too many people and/or try to expand too quickly, the business could be harmed. The people with voting rights could also decide to file for bankruptcy protection, making it more difficult for you to be paid.

## How the Notes are Being Valued

The Notes are being valued at their face value. We don't anticipate that we'll ever need to place a value on the Notes in the future.

## (N) The Funding Portal

The Company is offering its securities through MainVest, Inc., which is a 'Funding Portal' licensed by the Securities and Exchange Commission and FINRA. MainVest Inc.'s Central Index Key (CIK) number is 0001746059, their SEC File number is 007-00162, and their Central Registration Depository (CRD) number is 298384.

## (O) Compensation of the Funding Portal

Upon successful funding of the Offering, the Funding Portal will receive as the 'Revenue Securement Fee'; 4.5% of the amount of the Offering raised by In-Network Users of the Platform plus 9.0% of the amount of the Offering raised by all other investors. 'In-Network Users' means a user of Mainvest.com who who have utilized the Company's specified in-network link on the Site.

## (P) Indebtedness of the Company

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| Creditor | Amount | Interest Rate | Maturity Date | Other Important Terms |
| --- | --- | --- | --- | --- |
| eLease Funding Inc | $100,232 | % | 04/30/2023 | $1 buyout at maturity. Term started AUG 30, 2019 |
| Mainvest Revenue Share Note | $65,500 | % | 01/01/2028 | 2.4% of revenue until 1.6x investment multiple (1.8x early investor bonus) is achieved. |
| Mainvest Revenue Share Note | $35,600 | % | 01/01/2028 | Additional 1.28% of revenue until 1.6x investment multiple is achieved. |
| Mainvest Revenue Share Note | $30,000 | % | 01/01/2028 | Additional 1.08% of revenue until 1.6x investment multiple is achieved. |
| eLease Funding | $19,740 | % | 12/02/2027 | $1 buyout at maturity. Term started DEC 2022, 2022 |
| eLease Funding | $25,668 | % | 03/24/2024 | $1 buyout at maturity. Term started MAR 24, 2021 |
| eLease | $11,484 | % | 03/04/2024 | $1 buyout at maturity. Term started MAR 4, 2021 |
| Mainvest Revenue Share Note | $13,700 | % | 01/01/2028 | Additional 0.49% of revenue until 1.6x investment multiple is achieved. |

#### (Q) Other Offerings of Securities within the Last Three Years

August 2020 Rule 17CFR 227 (Regulation Crowdfunding) Revenue Sharing Notes $67,700 Please refer to the company's Form C/U dated November 12th, 2020 for additional disclosures.

November 2020 Rule 17CFR 227 (Regulation Crowdfunding) Revenue Sharing Notes $36,600 Please refer to the company's Form C/U dated January 21st, 2021 for additional disclosures.

January 2021 Rule 17CFR 227 (Regulation Crowdfunding) Revenue Sharing Notes $30,000 Please refer to the company's Form C/U dated February 26th, 2021 for additional disclosures.

March 2021 Rule 17CFR 227 (Regulation Crowdfunding) Revenue Sharing Notes $13,700 Please refer to the company's Form C/U dated April 12th, 2021 for additional disclosures.

#### (R) Transactions Between the Company and 'Insiders'

The Company has not entered into any business transactions, including stock Purchases, salaries, property rentals, consulting arrangements, guaranties, or other agreements with any individual identified in Section 227.201 (r)(1)-(4) of Regulation Crowdfunding during the 12 months preceding this Offering.

#### (S) The Company's Financial Condition

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# Forecasted milestones

Debellation Brewing Co. forecasts the following milestones:

- Achieve $391k revenue in first 12 months. We did that and surpassed our first year projections by $117,924 in our first 12 months of operation during the pandemic.
- Achieve $516,868 in 2022. We surpassed that goal by $52,866 despite the economy.

Historical financial performance is not necessarily predictive of future performance.

# Other challenges

Debellation Brewing Co. has had the following other challenges that are not otherwise captured in the Financial Condition Section, the Risks Section, or the Financial Statements:

- Glycol Chiller failed in late 2022 causing us to purchase another bigger chiller. However, this provides capacity for future expansion with more fermentation vessels.
- Continued glycol chiller issues in 2022 slowed down beer production
- We are at taproom capacity and in order to sell more beer, we are building an upper deck/loft and later in 2023, an enclosed patio to serve even more guests.
- With only 4 fermentation tanks, we are brewing at capacity. More tanks will be purchased to increase volume in 2023.

# (T) The Company's Financial Statements

Please see Appendix B for historical financial statements.

# Pro Forma Income Statement

In order to illustrate its future earning potential, the Company has provided a summary of its - year financial forecast. The forecast has been developed by the Company using reasonable best efforts based on their understanding of the industry and market they wish to enter. Please refer to Section (F) of this Offering Memorandum for a list of the risks associated with an investment in the Company and utilizing any pro forma provided by the Company for making investment decisions.

|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Gross Sales | $567,000 | $781,893 | $923,416 | $1,090,486 | $1,280,868 |
| Cost of Goods Sold | $88,000 | $116,000 | $159,000 | $189,000 | $221,000 |
| Gross Profit | $479,000 | $665,893 | $764,416 | $901,486 | $1,059,868 |
| EXPENSES |  |  |  |  |  |
| Operating Expenses | $282,000 | $361,000 | $491,000 | $549,000 | $629,000 |
| Operating Profit | $197,000 | $304,893 | $273,416 | $352,486 | $430,868 |

# (U) Disqualification Events

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Neither The Company nor any individual identified by Section 227.503(a) of Regulation Crowdfunding is the subject of a disqualifying event as defined by Section 227.503 of Regulation Crowdfunding.

#### Explanation

A company is not allowed to raise money using Regulation Crowdfunding if certain designated people associated with the Company (including its directors or executive officers) committed certain prohibited acts (mainly concerned with violations of the securities laws) on or after May 16, 2016. (You can read more about these rules in the Educational Materials.) This item requires a company to disclose whether any of those designated people committed any of those prohibited acts before May 16, 2016.

#### (V) Updates on the Progress of the Offering

To track the investment commitments we’ve received in this Offering, click to see the Progress Bar.

#### (W) Annual Reports for the Company

The Company will file a report with the Securities and Exchange Commission annually and post the report on our website no later than 120 days after the end of each fiscal year. It’s possible that at some point, the Company will not be required to file any more annual reports. We will notify you if that happens.

#### (X) Our Compliance with Reporting Obligations

The Company has never raised money using Regulation Crowdfunding before, and therefore has never been required to file any reports.

#### (Y) Other Information Prospective Investors Should Know About

The Issuer may offer “Perks” as a means of showing appreciation to investors for supporting small community businesses. The offering of “Perks” by issuers is done purely on a voluntary basis and have no influence upon the terms of the Offering. As such, Investor “Perks” are not contractual conditions governed by “the Note” and are not enforceable under “the Note”.

Additional Information Included in the Form C

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|  | Most recent fiscal year-end (tax returns) | Prior fiscal year-end (tax returns) |
| --- | --- | --- |
| Total Assets | $367,928.00 | $0 |
| Cash & Cash Equivalents | $6,487.00 | $0 |
| Accounts Receivable | $0 | $0 |
| Short-term Debt | $46,493.00 | $0 |
| Long-term Debt | $227,227.00 | $0 |
| Revenues/Sales | $267,116.00 | $0 |
| Cost of Goods Sold | $37,371.00 | $0 |
| Taxes Paid | $0 | $0 |
| Net Income | $-34,506.00 | $0 |

Jurisdictions in which the Company intends to offer the securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, B5, GU, PR, VI, 1V

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**Attachment 2:** `debellation5_appxa.pdf`

# APPENDIX A: INVESTMENT RISKS

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## YOU MIGHT LOSE YOUR MONEY

When you buy a certificate of deposit from a bank, the Federal government (through the FDIC) guarantees you will get your money back. Buying a Note is not like that at all. The ability of Debellation Brewing Co. to make the payments you expect, and ultimately to give you your money back, depends on a number of factors, including many beyond our control.

## LIMITED SERVICES

Debellation Brewing Co. operates with a very limited scope, offering only particular services to potential clients, making them vulnerable to changes in customer preferences.

## LACK OF ACCOUNTING CONTROLS

Larger companies typically have in place strict accounting controls. Smaller companies typically lack these controls, exposing themselves to additional risk.

## COMPETITION

The market in which we operate is highly competitive and could become increasingly competitive with new entrants in the market. Debellation Brewing Co. competes with many other businesses, both large and small, on the basis of quality, price, location, and customer experience. Changes in customer preference away from Debellation Brewing Co.'s core business or the inability to compete successfully against the with other competitors could negatively affect Debellation Brewing Co.'s financial performance.

## RELIANCE ON MANAGEMENT

As a securities holder, you will not be able to participate in Debellation Brewing Co.'s management or vote on and/or influence any managerial decisions regarding Debellation Brewing Co.. Furthermore, if the founders or other key personnel of Debellation Brewing Co. were to leave Debellation Brewing Co. or become unable to work, Debellation Brewing Co. (and your investment) could suffer substantially.

## FINANCIAL FORECASTS RISKS

The financial forecasts provided by us herein are reasonable forecasts by us based upon assumption of stable economic conditions and other various assumptions regarding operations. The validity and accuracy of these assumptions will depend in large part on future events over which Debellation Brewing Co. and the key persons will have no control. Changes in assumptions or their underlying facts could significantly affect the forecasts. To the extent that the assumed events do not occur, the outcome may vary significantly from the projected outcomes. Consequently, there can be no assurance that the actual operating results will correspond to the forecasts provided herein. Additionally, Debellation Brewing Co. is a newly established entity and therefore has no operating history from which forecasts could be projected with.

## INABILITY TO SELL YOUR INVESTMENT

The law prohibits you from selling your securities (except in certain very limited circumstances) for 12 months after you acquire them. Even after that one-year period, a host of Federal and State securities laws may limit or restrict your ability to sell your securities. Even if you are permitted to sell, you will likely have difficulty finding a buyer because there will be no established market. Given these factors, you should be prepared to hold your investment for its

2

full term.

#### THE COMPANY MIGHT NEED MORE CAPITAL

Debellation Brewing Co. might need to raise more capital in the future to fund/expand operations, buy property and equipment, hire new team members, market its services, pay overhead and general administrative expenses, or a variety of other reasons. There is no assurance that additional capital will be available when needed, or that it will be available on terms that are not adverse to your interests as an investor. If Debellation Brewing Co. is unable to obtain additional funding when needed, it could be forced to delay its business plan or even cease operations altogether.

#### CHANGES IN ECONOMIC CONDITIONS COULD HURT DEBELLATION BREWING CO.

Factors like global or national economic recessions, changes in interest rates, changes in credit markets, changes in capital market conditions, declining employment, changes in real estate values, changes in tax policy, changes in political conditions, and wars and other crises, among other factors are unpredictable and could negatively affect Debellation Brewing Co.'s financial performance or ability to continue to operate. In the event Debellation Brewing Co. ceases operations due to the foregoing factors, it can not guarantee that it will be able to resume operations or generate revenue in the future.

#### NO REGISTRATION UNDER SECURITIES LAWS

The Notes will not be registered with the SEC or the securities regulator of any State. Hence, neither Debellation Brewing Co. nor the Notes will be subject to the same degree of regulation and scrutiny as if they were registered.

#### INCOMPLETE OFFERING INFORMATION

Title III does not require us to provide you with all the information that would be required in some other kinds of securities offerings, such as a public offering of shares (for example, publicly-traded firms must generally provide investors with quarterly and annual financial statements that have been audited by an independent accounting firm). Although Title III does require extensive information, it is possible that you would make a different decision if you had more information.

#### LACK OF ONGOING INFORMATION

Debellation Brewing Co. will be required to provide some information to investors for at least 12 months following the offering. However, this information is far more limited than the information that would be required of a publicly-reporting company; and Debellation Brewing Co. is allowed to stop providing annual information in certain circumstances.

#### UNINSURED LOSSES

Although Debellation Brewing Co. will carry some insurance, Debellation Brewing Co. may not carry enough insurance to protect against all risks to the business. Additionally, there are some kinds of risks that are very difficult or impossible to insure against, at least at a reasonable cost. Therefore, Debellation Brewing Co. could incur an uninsured loss that could damage its business.

#### CHANGES IN LAWS

3

Changes in laws or regulations, including but not limited to zoning laws, environmental laws, tax laws, consumer protection laws, securities laws, antitrust laws, and health care laws, could negatively affect Debellation Brewing Co.'s financial performance or ability to continue to operate. Specifically, any additional regulation on the industry could significantly negatively affect the business.

#### CONFLICT OF INTEREST WITH COMPANIES AND THEIR MANAGEMENT

In many ways, your interests and the interests of Debellation Brewing Co.'s management will coincide: you both want Debellation Brewing Co. to be as successful as possible. However, your interests might be in conflict in other important areas, including these: You might want Debellation Brewing Co. to act conservative to make sure they are best equipped to repay the Note obligations, while Debellation Brewing Co. might prefer to spend aggressively to invest in the business. You would like to keep the compensation of managers low, while managers want to make as much as they can.

#### FUTURE INVESTORS MIGHT HAVE SUPERIOR RIGHTS

If Debellation Brewing Co. needs more capital in the future and takes on additional debt or other sources of financing, the new investors might have rights superior to yours. For example, they might have the right to be paid before you are, to receive larger distributions, to have a greater voice in management, or otherwise.

#### THE COMPANY IS NOT SUBJECT TO THE CORPORATE GOVERNANCE REQUIREMENTS OF THE NATIONAL SECURITIES EXCHANGES

Any company whose securities are listed on a national stock exchange (for example, the New York Stock Exchange) is subject to a number of rules about corporate governance that are intended to protect investors. For example, the major U.S. stock exchanges require listed companies to have an audit committee made up entirely of independent members of the board of directors (i.e., directors with no material outside relationships with Debellation Brewing Co. or management), which is responsible for monitoring Debellation Brewing Co.'s compliance with the law. Debellation Brewing Co. will not be required to implement these and other investor protections.

#### YOU HAVE A LIMITED UPSIDE

Notes include a maximum amount you can receive. You cannot receive more than that even if Debellation Brewing Co. is significantly more successful than your initial expectations.

#### YOU DO HAVE A DOWNSIDE

Conversely, if Debellation Brewing Co. fails to generate enough revenue, you could lose some or all of your money.

#### PAYMENTS AND RETURN ARE UNPREDICTABLE

Because your payments are based on the revenue of Debellation Brewing Co., and the revenue of Debellation Brewing Co. can go up or down (or even disappear altogether) unpredictably, it is impossible to predict how much you will receive and when. And because the payments are unpredictable, so is your ultimate return.

#### THE NOTES ARE UNSECURED AND UNINSURED

4

The Notes are not secured by any collateral, nor are they guaranteed or insured by the FDIC or any other entity.

#### SUBORDINATION

The Notes shall be subordinated to all indebtedness of Debellation Brewing Co. to banks, commercial finance lenders, leasing and equipment financing institutions, and/or other institutions regularly engaged in the business of lending money.

#### LACK OF GUARANTY

The Notes are not personally guaranteed by any of the founders or any other person.

#### LIMITATION OF INDIVIDUAL RIGHTS IN EVENT OF DEFAULT

In the event of a default under the Notes, you will not be able to enforce your rights individually (for example, by bringing a lawsuit). Instead, a representative will be appointed according to the procedures set forth in the Note Indenture. It's possible that you will not like the representative, or that the representative will do things you believe are wrong or misguided. If an event of default has occurred and a representative has been appointed, all of the representative's reasonable expenses must be paid before any further payments are made with respect to the Notes.

#### COVID-19 IMPACT

The ongoing COVID-19 pandemic may impact the Company's ability to generate revenue and/or continue operations. If operations are ceased due to COVID-19 restrictions, the Company can not guarantee that it will resume operations in the future.

5

**Attachment 3:** `debellation5_appxb.pdf`

# APPENDIX B:
FINANCIAL STATEMENTS
(Unaudited)

1

# Debellation Brewing Co.

## Profit and Loss

January - December 2021

|  | TOTAL |
| --- | --- |
| Income |  |
| Sales | 76,329.21 |
| Total Income | $76,329.21 |
| Cost of Goods Sold |  |
| Shipping | 32.00 |
| Total Cost of Goods Sold | $32.00 |
| GROSS PROFIT | $76,297.21 |
| Expenses |  |
| Advertising & marketing | 7,452.99 |
| Business licenses | 2,560.00 |
| Contract labor | 2,000.00 |
| Entertainment | 3,595.00 |
| General business expenses |  |
| Bank fees & service charges | 284.69 |
| Equipment | 101.47 |
| Grounds Maintenance | 1,000.00 |
| Memberships & subscriptions | 375.00 |
| Total General business expenses | 1,761.16 |
| Insurance | 1,082.38 |
| Meals | 603.05 |
| Office expenses | 77.38 |
| Merchant account fees | 652.89 |
| Shipping & postage | 11.15 |
| Small tools & equipment | 143.62 |
| Software & apps | 204.49 |
| Total Office expenses | 1,089.53 |
| Payroll expenses | 2,974.02 |
| Salaries & wages | 13,717.35 |
| Total Payroll expenses | 16,691.37 |
| Rent |  |
| Building & land rent | 13,150.00 |
| Equipment rental | 1,621.00 |
| Total Rent | 14,771.00 |
| Repairs & maintenance | 3,292.25 |
| Supplies | 10.80 |
| Apparel | 2,784.85 |
| Brewing Ingredients | 6,078.87 |
| Food Inventory | 2,776.19 |
| Merchandise | 749.73 |

Accrual Basis Sunday, March 12, 2023 04:32 PM GMT-04:00

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# Debellation Brewing Co.

## Profit and Loss

January - December 2021

|  | TOTAL |
| --- | --- |
| Supplies & materials | 4,347.69 |
| Total Supplies | 16,748.13 |
| Taxes paid | 2,774.97 |
| Uncategorized Expense | 338.83 |
| Utilities | 4,590.01 |
| Electricity | 124.00 |
| Internet & TV services | 1,185.39 |
| Water & sewer | 213.00 |
| Total Utilities | 6,112.40 |
| Total Expenses | $80,873.06 |
| NET OPERATING INCOME | $ -4,575.85 |
| Other Income |  |
| Sale of investments | 22,180.85 |
| Total Other Income | $22,180.85 |
| Other Expenses |  |
| Vehicle expenses | 14.55 |
| Vehicle gas & fuel | 27.97 |
| Total Vehicle expenses | 42.52 |
| Total Other Expenses | $42.52 |
| NET OTHER INCOME | $22,138.33 |
| NET INCOME | $17,562.48 |

Accrual Basis Sunday, March 12, 2023 04:32 PM GMT-04:00

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# Debellation Brewing Co.

## Balance Sheet

As of December 31, 2021

|  | TOTAL |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Bank Accounts |  |
| Cash | 8,000.00 |
| SIMPLY FREE BUSINESS | -68,217.38 |
| SMALL BUSINESS CHECKING | 4,791.18 |
| Total Bank Accounts | $ -55,426.20 |
| Total Current Assets | $ -55,426.20 |
| Fixed Assets |  |
| Furniture & fixtures | 838.19 |
| Improvements | 60,000.00 |
| Tools, machinery, and equipment | 11,497.49 |
| Total Fixed Assets | $72,335.68 |
| Other Assets |  |
| Licenses held | 250.00 |
| Total Other Assets | $250.00 |
| TOTAL ASSETS | $17,159.48 |
| LIABILITIES AND EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Other Current Liabilities |  |
| Lines of credit | -403.00 |
| Total Other Current Liabilities | $ -403.00 |
| Total Current Liabilities | $ -403.00 |
| Total Liabilities | $ -403.00 |
| Equity |  |
| Retained Earnings |  |
| Net Income | 17,562.48 |
| Total Equity | $17,562.48 |
| TOTAL LIABILITIES AND EQUITY | $17,159.48 |

Accrual Basis Sunday, March 12, 2023 04:28 PM GMT-04:00

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# Debellation Brewing Co.

## Statement of Cash Flows

January - December 2021

|  | TOTAL |
| --- | --- |
| OPERATING ACTIVITIES |  |
| Net Income | 17,562.48 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |
| Lines of credit | -403.00 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | -403.00 |
| Net cash provided by operating activities | $17,159.48 |
| INVESTING ACTIVITIES |  |
| Furniture & fixtures | -838.19 |
| Improvements | -60,000.00 |
| Tools, machinery, and equipment | -11,497.49 |
| Licenses held | -250.00 |
| Net cash provided by investing activities | $ -72,585.68 |
| NET CASH INCREASE FOR PERIOD | $ -55,426.20 |
| CASH AT END OF PERIOD | $ -55,426.20 |

Sunday, March 12, 2023 04:36 PM GMT-04:00

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# Debellation Brewing Co.

## Profit and Loss

January - December 2022

|  | TOTAL |
| --- | --- |
| Income |  |
| Sales | 573,935.62 |
| Total Income | $573,935.62 |
| Cost of Goods Sold |  |
| Cost of goods sold |  |
| Equipment rental - COGS | 690.20 |
| Supplies & materials - COGS | 1,400.01 |
| Total Cost of goods sold | 2,090.21 |
| Shipping | 102.79 |
| Total Cost of Goods Sold | $2,193.00 |
| GROSS PROFIT | $571,742.62 |
| Expenses |  |
| Advertising & marketing | 29,460.06 |
| Business licenses | 1,025.33 |
| Contract labor | 500.00 |
| Contributions to charities | 390.00 |
| Charity | 2,111.80 |
| Total Contributions to charities | 2,501.80 |
| Entertainment | 27,643.00 |
| General business expenses |  |
| Bank fees & service charges | 520.39 |
| Catering | 5,832.79 |
| Equipment | 700.00 |
| Grounds Maintenance | 1,000.00 |
| Health Dept | 650.00 |
| Memberships & subscriptions | 3,071.07 |
| Uniforms | 134.94 |
| Total General business expenses | 11,909.19 |
| Insurance | 5,014.02 |
| Legal & accounting services |  |
| Accounting fees | 1,600.00 |
| Legal Fees | 518.00 |
| Total Legal & accounting services | 2,118.00 |
| Meals | 3,100.60 |
| Office expenses | 218.58 |
| Merchant account fees | 15,034.90 |
| Office supplies | 74.33 |
| Shipping & postage | 266.14 |
| Software & apps | 867.79 |
| Total Office expenses | 16,461.74 |

Accrual Basis Wednesday, February 8, 2023 10:02 PM GMT-05:00

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# Debellation Brewing Co.

## Profit and Loss

January - December 2022

|  | TOTAL |
| --- | --- |
| Payroll expenses | 10,570.97 |
| Officers' salaries | 800.00 |
| Salaries & wages | 124,422.85 |
| Total Payroll expenses | 135,793.82 |
| Rent | 31.40 |
| Building & land rent | 48,000.00 |
| Equipment rental | 2,259.76 |
| Total Rent | 50,291.16 |
| Repairs & maintenance | 10,144.28 |
| Supplies | 7,486.72 |
| Apparel | 5,183.10 |
| Brewing Ingredients | 33,716.48 |
| Food Inventory | 28,437.78 |
| Merchandise | 15,926.37 |
| Supplies & materials | 9,804.37 |
| Total Supplies | 100,554.82 |
| Taxes paid | 38,501.52 |
| Payroll taxes | 31,845.49 |
| Total Taxes paid | 70,347.01 |
| Travel | 10.00 |
| Utilities | 32,255.43 |
| Total Expenses | $499,130.26 |
| NET OPERATING INCOME | $72,612.36 |
| Other Expenses |  |
| Vehicle expenses | 368.26 |
| Vehicle gas & fuel | 2,583.87 |
| Total Vehicle expenses | 2,952.13 |
| Total Other Expenses | $2,952.13 |
| NET OTHER INCOME | $ -2,952.13 |
| NET INCOME | $69,660.23 |

Accrual Basis Wednesday, February 8, 2023 10:02 PM GMT-05:00

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# Debellation Brewing Co.

## Balance Sheet

As of December 31, 2022

|  | TOTAL |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Bank Accounts |  |
| Cash | 75.00 |
| SMALL BUSINESS CHECKING | 4,893.17 |
| Total Bank Accounts | $4,968.17 |
| Other Current Assets |  |
| Employee cash advances | 532.30 |
| Total Other Current Assets | $532.30 |
| Total Current Assets | $5,500.47 |
| Fixed Assets |  |
| Improvements | 5,161.15 |
| Tools, machinery, and equipment | 46,245.62 |
| Total Fixed Assets | $51,406.77 |
| TOTAL ASSETS | $56,907.24 |
| LIABILITIES AND EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Other Current Liabilities |  |
| Customer prepayments | 970.13 |
| Lines of credit | -499.82 |
| Total Other Current Liabilities | $470.31 |
| Total Current Liabilities | $470.31 |
| Long-Term Liabilities |  |
| Long-term loans from shareholders | -22,117.32 |
| Total Long-Term Liabilities | $ -22,117.32 |
| Total Liabilities | $ -21,647.01 |
| Equity |  |
| Opening balance equity | 8,894.02 |
| Retained Earnings |  |
| Net Income | 69,660.23 |
| Total Equity | $78,554.25 |
| TOTAL LIABILITIES AND EQUITY | $56,907.24 |

Cash Basis Wednesday, February 8, 2023 10:07 PM GMT-05:00

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# Debellation Brewing Co.

## Statement of Cash Flows

January - December 2022

|  | TOTAL |
| --- | --- |
| OPERATING ACTIVITIES |  |
| Net Income | 69,699.23 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |
| Employee cash advances | -532.30 |
| Customer prepayments | 970.13 |
| Lines of credit | -499.82 |
| Long-term loans from shareholders | -22,117.32 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | -22,179.31 |
| Net cash provided by operating activities | $47,519.92 |
| INVESTING ACTIVITIES |  |
| Improvements | -5,161.15 |
| Tools, machinery, and equipment | -46,245.62 |
| Net cash provided by investing activities | $ -51,406.77 |
| FINANCING ACTIVITIES |  |
| Opening balance equity | 8,894.02 |
| Net cash provided by financing activities | $8,894.02 |
| NET CASH INCREASE FOR PERIOD | $5,007.17 |
| Cash at beginning of period | -55,426.20 |
| CASH AT END OF PERIOD | $ -50,419.03 |

Sunday, March 12, 2023 04:38 PM GMT-04:00

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I, David Guy Goodell, certify that:

1. The financial statements of DEBELLATION BREWING CO. included in this Form are true and complete in all material respects; and
2. The tax return information of DEBELLATION BREWING CO. included in this Form reflects accurately the information reported on the tax return for DEBELLATION BREWING CO. for the fiscal years ended 2020 and 2021 (most recently available as of the Date of this Form C).

Signature David Guy Goodell

Name: David Guy Goodell

Title: CEO/Owner

1

**Attachment 4:** `debellation5_rsn.pdf`

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

## INVESTMENT AGREEMENT

facilitated by

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

1

# INVESTMENT AGREEMENT

This is an Investment Agreement, by and between **DEBELLATION BREWING CO.** (the “Company”) and the purchaser identified on the Investor Information Sheet (“Purchaser”).

## BACKGROUND

Purchaser wishes to purchase a Revenue Sharing Note issued by the Company through www.Mainvest.com (the “Site”). NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties hereby agree as follows:

### 1. Defined Terms

Capitalized terms that are not otherwise defined in this Investment Agreement have the meanings given to them in the Company’s Form C and its attachments, all available at the Site. In this Investment Agreement, we refer to the Form C and its attachments as the “Disclosure Document.” We sometimes refer to the Company using terms like “we” or “us,” and to Purchaser using terms like “you” or “your.”

### 2. Purchase of Note

Subject to the terms and conditions of this Investment Agreement, the Company hereby agrees to sell to you, and you hereby agree to purchase from the Company, a promissory note as described in the Disclosure Document, in the amount set forth on the Investor Information Sheet. We refer to your promissory note as the “Note.”

### 3. No Right to Cancel

You do not have the right to cancel your subscription or change your mind. Once you sign this Investment Agreement, you are obligated to purchase the Note, no matter what, even if the Offering is over-subscribed and the amount of your Note is reduced.

### 4. Our Right to Reject Investment

In contrast, we have the right to reject your subscription for any reason or for no reason, in our sole discretion. If we reject your subscription, any money you have given us will be returned to you.

### 5. Your Promises

You promise that:

#### 5.1. Accuracy of Information

All of the information you have given to us, whether in this Investment Agreement, at the Site, or otherwise, is accurate and we may rely on it. If any of the information you have given to us changes before we accept your subscription, you will notify us immediately. If any of the information you have given to us is inaccurate and we are harmed as a result, you will indemnify us, meaning you will pay any damages.

#### 5.2. Review of Information

You have read and understand the Disclosure Document. Without limiting that sentence, you have read and understand the Note and the Revenue Sharing Agreement.

#### 5.3. Risks

2

You understand all the risks of investing, including the risk that you could lose all your money. Without limiting that statement, you have reviewed and understand all the risks listed in the Educational Materials at the Site and in the Disclosure Document.

#### 5.4. No Representations

Nobody has made any promises or representations to you, except the information in the Disclosure Document. Nobody has guaranteed any financial outcome of your investment.

#### 5.5. Opportunity to Ask Questions

You have had the opportunity to ask questions about the Company and the investment. All your questions have been answered to your satisfaction.

#### 5.6. Your Legal Power to Sign and Invest

You have the legal power to sign this Investment Agreement and purchase the Note.

#### 5.7. No Government Approval

You understand that no state or federal authority has reviewed this Investment Agreement or the Note or made any finding relating to the value or fairness of the investment.

#### 5.8. No Transfer

You understand that under the terms of the Revenue Sharing Agreement, the Note may not be transferred without our consent. Also, securities laws limit transfer of the Note. Finally, there is currently no market for the Note, meaning it might be hard to find a buyer. As a result, you should be prepared to hold the Note through its maturity.

#### 5.9. No Advice

We have not provided you with any investment, financial, or tax advice. Instead, we have advised you to consult with your own legal and financial advisors and tax experts.

#### 5.10. Tax Treatment

We have not promised you any particular tax outcome from buying or holding the Note.

#### 5.11. Acting On Your Own Behalf

You are acting on your own behalf in purchasing the Note, not on behalf of anyone else.

#### 5.12. Investment Purpose

You are purchasing the Note solely as an investment, not with an intent to re-sell or “distribute” any part of it.

#### 5.13. Anti-Money Laundering Laws

Your investment will not, by itself, cause the Company to be in violation of any “anti-money laundering” laws, including, without limitation, the United States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, and the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

#### 5.14. Additional Information

3

At our request, you will provide further documentation verifying the source of the money used to purchase the Note.

#### 5.15. Disclosure

You understand that we may release confidential information about you to government authorities if we determine, in our sole discretion after consultation with our lawyer, that releasing such information is in the best interest of the Company or if we are required to do so by such government authorities.

#### 5.16. Additional Documents

You will execute any additional documents we request if we reasonably believe those documents are necessary or appropriate and explain why.

#### 5.17. No Violations

Your purchase of the Note will not violate any law or conflict with any contract to which you are a party.

#### 5.18. Enforceability

This Investment Agreement is enforceable against you in accordance with its terms.

#### 5.19. No Inconsistent Statements

No person has made any oral or written statements or representations to you that are inconsistent with the information in this Investment Agreement and the Disclosure Materials.

#### 5.20. Financial Forecasts

You understand that any financial forecasts or projections are based on estimates and assumptions we believe to be reasonable but are highly speculative. Given the industry, our actual results may vary from any forecasts or projections.

#### 5.21. Notification

If you discover at any time that any of the promises in this section 5 are untrue, you will notify us right away.

#### 5.22. Additional Promises by Individuals

If you are a natural person (not an entity), you also promise that:

##### 5.22.1. U.S. Citizen or Resident

You are a citizen or permanent resident (green card) of the United States.

##### 5.22.2. Financial Wherewithal

You can afford this investment, even if you lose your money. You don't rely on this money for your current needs, like rent or utilities.

##### 5.22.3. Anti-Terrorism and Money Laundering Laws

None of the money used to purchase the Note was derived from or related to any activity

4

that is illegal under United States law, and you are not on any list of “Specially Designated Nationals” or known or suspected terrorists that has been generated by the Office of Foreign Assets Control of the United States Department of Treasury (“OFAC”), nor are you a citizen or resident of any country that is subject to embargo or trade sanctions enforced by OFAC.

## 6. Confidentiality

The information we have provided to you about the Company, including the information in the Disclosure Document, is confidential. You will not reveal such information to anyone or use such information for your own benefit, except to purchase the Note.

## 7. Re-Purchase of Note

If we decide that you provided us with inaccurate information or have otherwise violated your obligations, or if required by any applicable law or regulation related to terrorism, money laundering, and similar activities, we may (but shall not be required to) repurchase your Note for an amount equal to the principal amount outstanding.

## 8. Governing Law

Your relationship with us shall be governed by Massachusetts law, without taking into account principles of conflicts of law.

## 9. Arbitration

### 9.1. Right to Arbitrate Claims

If any kind of legal claim arises between us as a result of your purchase of the Note, either of us will have the right to arbitrate the claim, rather than use the courts. There are only three exceptions to this rule. First, we will not invoke our right to arbitrate a claim you bring in Small Claims Court or an equivalent court, if any, so long as the claim is pending only in that court. Second, we have the right to seek an injunction in court if you violate or threaten to violate your obligations. Third, disputes arising under the Note or the Revenue Sharing Agreement will be handled in the manner described in the Revenue Sharing Agreement.

### 9.2. Place of Arbitration; Rules

All arbitration will be conducted in Massachusetts unless we agree otherwise in writing in a specific case. All arbitration will be conducted before a single arbitrator in accordance with the rules of the American Arbitration Association.

### 9.3. Appeal of Award

Within thirty (30) days of a final award by the single arbitrator, you or we may appeal the award for reconsideration by a three-arbitrator panel. If you or we appeal, the other party may cross-appeal within thirty (30) days after notice of the appeal. The panel will reconsider all aspects of the initial award that are appealed, including related findings of fact.

### 9.4. Effect of Award

Any award by the individual arbitrator that is not subject to appeal, and any panel award on appeal, shall be final and binding, except for any appeal right under the Federal Arbitration Act, and may be entered as a judgment in any court of competent jurisdiction.

5

### 9.5. No Class Action Claims

NO ARBITRATION SHALL PROCEED ON A CLASS, REPRESENTATIVE, OR COLLECTIVE BASIS. No party may join, consolidate, or otherwise bring claims for or on behalf of two or more individuals or unrelated corporate entities in the same arbitration unless those persons are parties to a single transaction. An award in arbitration shall determine the rights and obligations of the named parties only, and only with respect to the claims in arbitration, and shall not (i) determine the rights, obligations, or interests of anyone other than a named party, or resolve any claim of anyone other than a named party, or (ii) make an award for the benefit of, or against, anyone other than a named party. No administrator or arbitrator shall have the power or authority to waive, modify, or fail to enforce this paragraph, and any attempt to do so, whether by rule, policy, arbitration decision or otherwise, shall be invalid and unenforceable. Any challenge to the validity of this paragraph shall be determined exclusively by a court and not by the administrator or any arbitrator. If this paragraph shall be deemed unenforceable, then any proceeding in the nature of a class action shall be handled in court, not in arbitration.

### 10. Consent to Electronic Delivery

You agree that we may deliver all notices, tax reports and other documents and information to you by email or another electronic delivery method we choose. You agree to tell us right away if you change your email address or home mailing address so we can send information to the new address.

### 11. Notices

All notices between us will be electronic. You will contact us by email at the address indicated on the Company Signature Page below. We will contact you by email at the email address below. Either of us may change our email address by notifying the other (by email). Any notice will be considered to have been received on the day it was sent by email, unless the recipient can demonstrate that a problem occurred with delivery. You should designate our email address as a “safe sender” so our emails do not get trapped in your spam filter.

### 12. Limitations on Damages

WE WILL NOT BE LIABLE TO YOU FOR ANY LOST PROFITS OR SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, EVEN IF YOU TELL US YOU MIGHT INCUR THOSE DAMAGES. This means that at most, you can sue us for the amount of your investment. You can’t sue us for anything else.

### 13. Waiver of Jury Rights

IN ANY DISPUTE WITH US, YOU AGREE TO WAIVE YOUR RIGHT TO A TRIAL BY JURY. This means that any dispute will be heard by an arbitrator or a judge, not a jury.

### 14. Miscellaneous Provisions

#### 14.1. No Transfer

You may not transfer your rights or obligations.

#### 14.2. Right to Legal Fees

If we have a legal dispute with you, the losing party will pay the costs of the winning party, including reasonable legal fees.

#### 14.3. Headings

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The headings used in this Investment Agreement (e.g., the word “Headings” in this paragraph), are used only for convenience and have no legal significance.

#### 14.4. No Other Agreements

This Investment Agreement and the Exhibits attached hereto are the only agreements between us.

#### 14.5 Electronic Signature

You will sign this Investment Agreement electronically, rather than physically.

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# COMPANY SIGNATURE PAGE

Intending to be bound by this Investment Agreement and the Exhibits attached hereto, the Company has executed this document:

Signature: David Guy Goodell
Name: David Guy Goodell
Title: CEO/Owner
Date: 03/24/2023
Email Address: debellationbrewing@gmail.com

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# INVESTOR INFORMATION SHEET

*If Purchaser is an entity*

Name of Purchaser: ____________________ Name of Affiliated Person: ____________________

Email Address: ____________________ Title: ____________________

Mailing Address: ____________________ State of Organization: ____________________

____________________
____________________

# ADDITIONAL TERMS

Investment Amount: ____________________

Revenue Percentage: ____________________

Principal Amount: ____________________

Purchaser Percentage: ____________________

# INVESTOR SIGNATURE

Signature: ____________________

Date: ____________________

9

# EXHIBIT A

## REVENUE SHARING NOTE

THIS REVENUE SHARING NOTE (THE “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT THE CONSENT OF THE COMPANY AND COMPLYING WITH SECURITIES LAWS.

THIS NOTE REPRESENTS THE OBLIGATION OF **DEBELLATION BREWING CO.** (THE “COMPANY”) AND WAS ISSUED PURSUANT TO (i) AN OFFERING MEMORANDUM FILED WITH THE SEC IN CONJUNCTION WITH THE COMPANY’S FORM C, AND (ii) THE INVESTMENT AGREEMENT, WHICH ARE AVAILABLE FOR REVIEW AT WWW.MAINVEST.COM (THE “SITE”).

CAPITALIZED TERMS THAT ARE NOT OTHERWISE DEFINED IN THIS NOTE HAVE THE MEANINGS GIVEN TO THEM IN THOSE DOCUMENTS.

| Issuer | DEBELLATION BREWING CO. |
| --- | --- |
| Maximum Payment Multiple 2 - Early Investors - All Other Investors | 1.5 x 1.2 x |
| Revenue Percentage 1 | 0.7 - 1.0% |
| Payment Frequency | Quarterly |
| Sharing Start Date | The first day after disbursement that the company has revenues greater than one ($1) dollar |
| First Payment Date | The last day of the calendar quarter ending not less than 90 days after the Sharing Start Date |
| Seniority | Subordinated |
| Securitization | Unsecured |
| Maturity Date | 12/31/2028 |
| Accrual Rate | 3.65% |

$^{1}$ The rate of revenue sharing is calculated on a linear scale with a minimum rate of 0.7% and a maximum rate of 1.0% and is rounded to the nearest 1/10th percent. The final rate is based on the amount raised and is calculated after the offering has successfully closed. As the amount raised in the offering increases, the rate of revenue sharing increases.

$^{2}$ To reward early participation, the investors who contribute the first $10,000.0 raised in the offering will receive a 1.5x cap. Investors who contribute after $10,000.0 has been raised in the offering will receive a 1.2x cap.

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## 1. Revenue Sharing Agreement

This Note is subject to the Company's Revenue Sharing Agreement attached hereto as Exhibit B as if all the terms of the Revenue Sharing Agreement were set forth in this Note.

## 2 Payment Obligation

### 2.1 First Payment

On the First Payment Date, the Company shall pay to Purchaser an amount equal to (i) the Purchaser Percentage (as defined in the Investor Information Sheet above), multiplied by (ii) the Revenue Percentage, multiplied by (iii) the Total Revenue of the Company for the period beginning on the Sharing Start Date and ending on the last day of the month before the First Payment Date.

### 2.2. Subsequent Quarterly Payments

On the date three (3) months following the First Payment Date, and on each three (3) month anniversary thereafter, the Company shall pay to Purchaser an amount equal to (i) the Purchaser Percentage, multiplied by (ii) the Revenue Percentage, multiplied by (iii) the Total Revenue of the Company for the period of three (3) months beginning immediately on the day after the previous calculation.

### 2.3. Prepayment

At any time, without notice to Purchaser, The Company may pay to Purchaser any amount in excess of the payments required by sections 2.1 and 2.2.

### 2.4. Termination of Payments

Notwithstanding section 2.2, no payments shall be due to Purchaser after Purchaser has received an aggregate amount under this Note, including payments made by the Company pursuant to section 2.3, equal to (i) the Principal Amount (as defined in the Investor Information Sheet above), multiplied by (ii) the Maximum Payment Multiple. We refer to the result of this multiplication as the 'Maximum Payment Amount.'

### 2.5. Payment on Maturity Date

Unless payments have already terminated as a result of section 2.4, on the Maturity Date the Company shall pay to Purchaser an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3.

### 2.6. Payment on Change of Control

#### 2.6.1. General Rule

If the Company experiences a Change of Control, then the Company shall promptly pay to Purchaser an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3.

#### 2.6.2 Change of Control Defined

For purposes of this Note, the term 'Change of Control' means (i) the sale, transfer

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or other disposition of all or substantially all of the Company's assets and business; or (ii) the sale, transfer or other disposition of outstanding securities of the Company representing at least Fifty Percent (50%) of the voting power of the Company; or (iii) a merger or consolidation of the Company with or into another entity, such as another limited liability or corporation, except a merger or consolidation in which the owners of the Company's equity securities immediately before such merger or consolidation continue to own securities representing more than Fifty Percent (50%) of the voting power of the Company or the surviving or acquiring entity; or (iv) the liquidation, dissolution or winding up of the Company. It does not mean a change in the corporate form of the Company, e.g., a change from a limited liability company to a corporation, or a change in the jurisdiction of the Company's organization.

### 2.7. Total Revenue Defined

The 'Total Revenue' of the Company for any period means the gross sales price of all merchandise, gift or merchandise certificates, or services sold by the Company during the period, using the same method of accounting used for Federal income tax purposes, reduced by (i) the sales price of all merchandise returned by customers and accepted for full credit or the amount of discounts and allowances made on such merchandise to the extent previously included in revenue; (ii) the amount of any sales taxes, so-called luxury taxes, consumers' excise taxes, gross receipts taxes, and other similar taxes imposed upon the sale of merchandise or services, but only if collected separately from the selling price of merchandise or services and collected from customers and paid to the taxing authority; (iii) the amount of any sales of fixtures, equipment, or other property which are not stock in trade of the Company; (iv) the amount of any sales of gift or merchandise certificates until converted to a sale by redemption for actual merchandise or services; (v) any cash or credit discount, allowance, or refund made upon any sales; and (vi) tips or gratuities paid by customers to or for the benefit of the Company's employees which are retained by the Company's employees.

### 3. Nature of Obligation

For all purposes, including but limited to Federal and State tax purposes, this Note shall be treated as a debt and not as an equity interest.

### 4) Treatment of Interest

For Federal and State tax purposes (i) interest shall accrue at the Accrual Rate, and (ii) payments made pursuant to section 2 shall first be treated as interest, up to the amount of interest so accrued, then shall be treated as principal, until Purchaser has received, as principal, the entire Principal Amount, and then shall be treated as interest.

### 5) No Violation of Usury Laws

If any payment required under this Note would otherwise violate any law limiting the amount of interest that may be charged (i.e., 'usury' laws), then, notwithstanding section 3, the amount in excess of the allowable interest payment shall be deemed to be a direct interest in the Company's income, and not as interest.

### 6) Consequences of Default

Upon the occurrence of any Event of Default, as defined in the Revenue Sharing Agreement:

6.1 Any unpaid amounts under section 2 shall bear interest at one and one-quarter percent (1.25%) per month;

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6.2. Purchaser may immediately demand from Company an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3; and

6.3. Purchaser may exercise any other remedy available in the Revenue Sharing Agreement or by law.

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# EXHIBIT B

## REVENUE SHARING AGREEMENT

This Revenue Sharing Agreement is entered into by **DEBELLATION BREWING CO.** (the “Company”) and each person who acquires a Revenue Sharing Note referencing this Revenue Sharing Agreement (a “Holder”). Background A. The Company sold Revenue Sharing Notes (the “Notes”) to the Holders through Mainvest, Inc. (the “Portal”) at www.Mainvest.com (the “Site”). B. This Revenue Sharing Agreement sets forth certain terms applicable to the Notes that are not set forth in the Notes themselves. NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties hereby agree as follows:

#### 1. Application of this Revenue Sharing Agreement to Notes

The terms of this Revenue Sharing Agreement shall apply to each Note as if the terms of this Revenue Sharing Agreement were fully set forth in each Note.

#### 2. Pro Rata Payments

Payments to the Holders shall be pro rata with other Holders who purchased Notes in the same offering, based on the Principal Amount of each such Note. If a Holder receives a payment in excess of his, her, or its pro rata share, the excess shall be deemed to be held in trust for the benefit of other Holders.

#### 3. Form of Payments

All payments to Holders will be made as Automated Clearing House (ACH) deposits into an account designated by each Holder at the Site.

#### 4. Withholding

If any withholding tax is imposed on any payment made by the Company to a Holder pursuant to a Note, such tax shall reduce the amount otherwise payable with respect to such payment. Upon request of the Company, the Holder shall provide the Company with an Internal Revenue Service Form W-9 or other similar withholding certificate of a State, local or foreign governmental authority such that the Company may make payments under the Note without deduction for, or at a reduced rate of deduction for, any tax.

#### 5. Voting Rights

Ownership of a Note does not give the Holder the right to vote or otherwise participate in the management of the Company.

#### 6. Restrictions on Holders

No Holder may, under any circumstances (i) take any action to collect a Note, except as provided in this Revenue Sharing Agreement; or (ii) record, or try to record, a Note or any other instrument relating to a Note.

#### 7. Transfers of Notes

##### 7.1. Conditions on Permitted Transfers

In the event a Holder proposes to sell or transfer a Note, the Company may, but shall not be required to, impose reasonable conditions on such sale or transfer including, but not limited,

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to: (i) Notes may be transferred only in whole units, i.e., fractions of Notes may not be transferred; (ii) the transferee shall agree in writing to be bound by this Revenue Sharing Agreement; (iii) the transferor shall provide the Company with an opinion of counsel, satisfactory in form and substance to the Company's counsel, stating that the transfer is exempt from registration under the Securities Act of 1933 and other applicable securities laws; and (iv) the transferor and transferee shall together pay in advance for any reasonable expenses the Company expects to incur in connection with the transfer, including attorneys' fees.

## 7.2. First Right of Refusal

### 7.2.1. In General

In the event a Holder (the 'Selling Holder') desires to sell or otherwise transfer one or more Notes (the 'Transfer Notes') to a third party, he, she, or it shall notify the Company, specifying the Note(s) to be transferred, the purchase price, the form of consideration, and all other material terms, as well as a copy of the legally-binding, non-contingent agreement setting forth such terms (the 'Sales Notice'). Within thirty (30) days after receipt of the Sales Notice, the Company shall notify the Selling Holder whether the Company or a person designated by the Company elects to purchase all (but not less than all) of the Transfer Notes. If the Company has not elected to purchase all of the Transfer Notes within the thirty (30) day period described above, the Selling Holder may proceed with the sale to the proposed purchaser, subject to section 5.1. If the Company does not elect to purchase the Transfer Notes within the thirty (30) day period described above, and the Selling Holder and the purchaser subsequently agree to a reduction of the purchase price, a change in the consideration from cash or readily tradeable securities to deferred payment obligations or non-tradeable securities, or any other material change to the terms set forth in the Sales Notice, such agreement between the Selling Holder and the purchaser shall be treated as a new offer and shall again be subject to this section.

### 7.2.2. Exception

This section 7.2 (the Company's first right of refusal) will not apply to a transfer by a Holder to or for the benefit of the Holder's spouse, child, or grandchild, or to a trust for their exclusive benefit. However, the transferee must sign a document agreeing to be bound by all of the terms and conditions of this Revenue Sharing Agreement, and the transferee may not transfer the Note under this section 7.2.2.

## 8. No Security Interest

Holders shall have no security interest in any of the Company's assets or other collateral. Nothing in this Revenue Sharing Agreement or in the Notes, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, now in effect or hereafter enacted and made effective, in any jurisdiction.

## 9. Subordination

Each Note shall be subordinated to all indebtedness of the Company to banks, commercial finance lenders, leasing and equipment financing institutions and/or other institutions regularly engaged in the business of lending money.

## 10. Amendment

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Each Note and this Revenue Sharing Agreement may be amended with the written consent of (i) the Company, and (ii) Holders who own more than fifty percent (50%) of all such Notes issued in the same offering.

#### 11. No Pre-Emptive Rights

If the Company raises more capital following the offering in which the Notes were issued, the Company might offer to Holders the opportunity to invest, but will not be required to do so. This means the Holders do not have 'pre-emptive rights' to invest.

#### 12. Waivers

The Company hereby waives presentment for payment, demand, notice of dishonor, protest and notice of protest of this Note and all other notices in connection with delivery, acceptance, performance, default or enforcement of the payment of this Note. Liability hereunder shall be unconditional and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver, or modification consented to by Holders.

#### 13. Defaults and Remedies

##### 13.1 Events of Default

An 'Event of Default' shall be deemed to have occurred for purposes of this Revenue Sharing Agreement if (and only if):

13.1.1. The Company fails to pay to a Holder any amount due and such failure continues for fifteen (15) days following written notice to the Company; or

13.1.2. The Company files (i) a voluntary petition in bankruptcy; or (ii) a petition or an answer seeking reorganization or an arrangement with creditors, or to take advantage of any insolvency, readjustment of loan, dissolution or liquidation law or statute; or (iii) an answer admitting the material allegations of a petition filed against the Company in any proceeding under any such law; or

13.1.3. An order, judgment, or decree is entered, without the consent of the Company, by any court of competent jurisdiction, appointing a receiver, trustee, or liquidator for the Company, if such order, judgment or decree shall continue unstayed and in effect for a period of sixty (60) days; or

13.1.4. The Company is in default with respect to any other of its debt obligations; or

13.1.5. The Company becomes unable to pay its debts as they become due; or

13.1.6. The Company breaches any of its obligations under this Revenue Sharing Agreement and such breach remains uncured for ninety (90) days following written notice.

##### 13.2 Force Majeure

An Event of Default shall not be deemed to have occurred as a result of a breach or failure by the Company in such breach or failure is caused by Acts of God, government restrictions (including the denial or cancellation of any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the Company; provided that the Company shall give Holders written notice explaining the cause and its effect in reasonable detail. Dates by which performance obligations are scheduled to be met will be

16

extended for a period of time equal to the time lost due to any delay so caused.

### 13.3. Consequences of Default

#### 13.3.1. Notice

Upon the occurrence of an Event of Default, the Company shall provide written notice to all Holders (a “Notice of Default”). The Notice of Default shall (i) describe the circumstances surrounding the Event of Default, (ii) reference the need for the Holders to appoint a Representative pursuant to section 13.3.2 below, and (iii) be accompanied by (A) a copy of this Revenue Sharing Agreement, and (B) a list of all of the Holders, the email address of each Holder on file with the Company, and the original Principal Amount with respect to each Holder’s Note.

#### 13.3.2. Appointment of Representative

##### (a) Selection

Upon the occurrence of an Event of Default, a single representative shall be appointed to represent all of the Holders (the “Representative”). The Representative (i) may, but need not, be a Holder; (ii) shall not be affiliated with or related to the Company; and (iii) shall be selected by the Holders as follows:

1. For a period of up to twenty (20) business days following the Notice of Default, the Holders shall confer among themselves as to the appointment of a Representative.
2. If at any time during such twenty (20) day period, the Holders of a majority of the Notes, measured by the original Principal Amount of each such Note (a “Majority”), agree as to the appointment of a Representative, that person shall be the Representative.
3. (3) If, at the conclusion of such twenty (20) day period, no Representative has been appointed by a Majority, each Holder shall submit the name of up to three (3) persons such Holder would accept as the Representative.
4. (4) With each name appearing on any Holder’s list there shall be associated a number equal to the total principal amount outstanding of all Notes held by Holders whose lists included such name.
5. (5) The person whose name is associated with the largest number shall be appointed as the Representative.

##### (b) Authority of Representative

The Representative shall have the power, on behalf of each Holder, to pursue such remedies as may be available by law and pursuant to this Revenue Sharing Agreement, for the purpose of maximizing the return to the Holders as a group, and to settle the claims of each Holder on such terms as the Representative may determine in its sole and unlimited discretion, subject to the other provisions of this Revenue Sharing Agreement. The Representative may pursue such remedies notwithstanding that the Representative does not have physical possession of the Notes and without naming the Holders as parties.

17

#### (c) Power of Attorney

Upon the appointment of a Representative, each Holder shall be deemed to have granted to the Representative a limited Power of Attorney for the purpose of carrying out such Representative's responsibilities under this Revenue Sharing Agreement. Each Holder shall, upon the request of the Representative, execute such additional documents and instruments as may be reasonably necessary to confirm such limited Power of Attorney and otherwise carry out the purposes of this Revenue Sharing Agreement.

#### (d) No Separate Claims

No Holder may bring any claim against the Company to enforce the payment obligation evidenced by a Note. All such claims may be brought only by the Representative, acting on behalf of, and in the name of, each Holder, in accordance with the provisions of this Revenue Sharing Agreement.

#### (e) Release of Claims by Holders

Each Holder hereby releases the Representative for all claims arising from the Representative's performance of its services pursuant to this Revenue Sharing Agreement, except and to the extent that a Holder can demonstrate by clear and convincing evidence that such act or omission constituted gross negligence or intentional misconduct.

#### (f) Fees and Expenses of Representative

The reasonable fees and costs of the Representative, including but not limited to reasonable attorneys' fees, shall be the obligation of the Company, and shall be added on to the amount otherwise payable with respect to the Notes, and no Holder shall be obligated to pay such fees or costs directly; provided, however, that following an Event of Default, any further payments made by the Company shall first be used to pay the reasonable fees and costs of the Representative, and not to make any payments with respect to the Notes, and if any Holder shall receive any payment with respect to his, her, or its Note before all of the reasonable fees and costs of the Representative have been paid, such Holder shall promptly pay such amount to the Representative.

#### (g) Resignation of Representative

A Representative may resign at any time by giving notice to the Company and all of the Holders of the Notes at least thirty (30) days before such resignation is to become effective. Upon the resignation of a Representative, a replacement shall be selected by the affirmative vote of Holders holding a majority of the Notes, measured by outstanding principal amount. If such Holders have not selected a replacement Representative within sixty (60) days following the effective date of the resignation, then Portal may, at any time, by giving notice to the Company and all of the Holders, designate a replacement Representative who shall not be related to or affiliated with Portal or the Company.

#### (h) Termination of Representative

The services of a Representative may be terminated at any time by the affirmative vote of Holders holding a majority of the Notes, measured by the outstanding

18

principal amount with respect to each such Note, but only if they simultaneously appoint a replacement Representative.

#### 13.4. Remedies

Upon the occurrence of an Event of Default, the Holders shall be entitled to any remedy that may be available by law and as set forth in the Note itself. However, the Representative shall not, without the affirmative written consent of a Majority, exercise the remedy set forth in section 6.2 of the Notes (an “Acceleration”)

#### 13.5. Payments Deemed Held in Trust

Any Holder who receives a payment on a Note while an Event of Default remains in effect with respect to such Note in excess of the amount such Holder should have received shall be deemed to be holding such excess in trust for the benefit of other Holders and the Representative, and shall return such excess on demand.

#### 13.6. Forbearance Not a Waiver

If a Holder or the Representative delays in exercising or fails to exercise any of its rights under a Note or this Revenue Sharing Agreement, that delay or failure shall not constitute a waiver of any rights or of any breach or default. No waiver by a Holder or the Representative shall be effective unless the waiver is expressly stated in a writing signed by the Holder or the Representative, as the case may be.

#### 13.7. Termination of Default

An Event of Default shall be deemed to have been terminated upon the earliest to occur of:

13.7.1. The date the Representative and the Company enter into a settlement of all claims; or

13.7.2. If an Acceleration has not been authorized by the Holders, the date the Company has paid (i) to the Holders, all payments due through such date; and (ii) to the Representative, all the fees and expenses described in section 12.3.2(f); or

13.7.3. If an Acceleration has been authorized by the Holders, the date the Company has paid (i) to the Holders all payments due through such date; and (ii) to the Representative, all the expenses described in section 12.3.2(f); but only if a Majority agrees to annul the demand for Acceleration.

#### 13.8 Waiver of Past Defaults

A Majority may, by notice to the Representative, waive an existing Event of Default and its consequence. When an Event of Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Event of Default or impair any consequent right.

### 14. Miscellaneous

#### 14.1. Electronic Delivery

All communications from the Company to Holders, including but not limited to all tax forms, shall be via electronic delivery.

#### 14.2. Notice

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Any notice or document required or permitted to be given under this Revenue Sharing Agreement may be given by a party or by its legal counsel and shall be deemed to be given on the date transmitted by overnight delivery service or by email with written confirmation of receipt, to the address of the Company set forth in the Company's Form C, to the address of a Holder provided by the Holder at the Site, or such other address as a party may designated by notice complying with this section.

#### 14.3. Payments

All payments of principal and interest on the Notes will be made in U.S. dollars as Automated Clearing House (ACH) deposits into an account designated by each Holder at the Site.

#### 14.4. Governing Law

This Revenue Sharing Agreement and each Note shall be governed by the internal laws of Massachusetts without giving effect to the principles of conflicts of laws. Each Holder hereby (i) consents to the personal jurisdiction of the Massachusetts courts or the Federal courts located in or most geographically convenient to Essex County, Massachusetts, (ii) agrees that all disputes arising from this Agreement shall be prosecuted in such courts, (iii) agrees that any such court shall have in personam jurisdiction over such Holder, (iv) consents to service of process by notice sent by regular mail to the address used by the Holder to register at the Site and/or by any means authorized by Massachusetts law, and (v) if such Holder is not otherwise subject to service of process in Massachusetts, agrees to appoint and maintain an agent in Massachusetts to accept service, and to notify the Company of the name and address of such agent.

#### 14.5. Titles and Captions

All article, section and paragraph titles and captions contained in this Revenue Sharing Agreement (like 'Titles and Captions' in this section) are for convenience only and are not deemed a part of the context hereof.

#### 14.6. Days

Unless specified otherwise, any period of days mandated under a Note or this Revenue Sharing Agreement shall be determined by reference to calendar days, not business days, except that any payments, notices, or other performance falling due on a Saturday, Sunday, or federal government holiday shall be considered timely if paid, given, or performed on the next succeeding business day.

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**Attachment 5:** `debellation5_deck.pdf`

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

Business Plan

Contact Information
Name: David Goodell
Phone: 912-321-9166

Email: debellationbrewing@gmail.com
Web: www.debellationbrewing.com

# Confidentiality Statement

This document (the 'Business Plan') contains confidential information proprietary to Debellation Brewing Co., from now on referred to as the 'Company' (the 'Company'). This information and related conversations are submitted solely to introduce selected parties to the Company's Business Plan. The Company's disclosure of information contained herein and in related conversations does not constitute authorization for the recipient of the Business Plan to use the information, ideas, or concepts contained herein for any purpose other than the evaluation of the Company, or to disclose any information to any other parties. The Company retains ownership of this Business Plan, including any and all concepts and ideas described herein.

Each recipient of this document agrees to treat the information in a strictly confidential manner. The recipient may not disclose, directly or indirectly, or permit any agent or affiliate to disclose any information contained herein, or reproduce this document in whole or part without the prior written consent of the Company, unless otherwise required by applicable law.

Any party who accepts delivery of this Business Plan, or any other document(s) or verbal communication(s) of confidential information from the Company, agrees to be bound by the terms of this Confidentiality Statement and further agrees to promptly return any such documents and materials to the Company upon request.

# Securities Statement

This Business Plan does not constitute an offer to sell or the solicitation of an offer to buy any securities, or an offer to sell or the solicitation of an offer to buy such securities in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this Business Plan nor any sale of the Company's securities shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since the date hereof, or that information contained herein is correct as of any time after its date.

# Disclaimer Statement

The market analysis and financial projections presented herein represent the Company's best judgment and reasonable assumptions of future events and circumstances; all other information contained herein has been obtained from sources deemed reliable. However, no warranty or representation, expressed or implied, is made as to the accuracy or completeness of any information contained herein, and same is submitted subject to errors and omissions, and no representations or warranties of future company performance or market trends are intended, and such are expressly disclaimed.

2

## Mission Statement

'Like the Norse Vikings before us and in our family lineage, Debellation Brewing wants to leave its mark on the world with our beers. Discovering new styles and flavors of beer that people truly enjoy is what we strive to accomplish.'

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

3

# Table of Contents

| Confidentiality Statement | 2 |
| --- | --- |
| Securities Statement | 2 |
| Disclaimer Statement | 2 |
| Mission Statement | 3 |
| Table Of Contents | 4 |
| Executive Summary | 5 |
| Objective | 7 |
| Financial Objectives | 8 |
| Start-Up Summary | 9 |
| Total Funds Allocated | 9 |
| Debellation Brewing Co. | 10 |
| Products And Services | 10 |
| Market Analysis Summary: Craft Beer Production In The Usa | 11 |
| Georgia Beer Industry | 12 |
| Products And Services Segmentation | 13 |
| Georgia Craft Beer Market Size | 15 |
| Market Segmentation | 15 |
| Operational Strategy | 16 |
| Legal Structure | 16 |
| Location: Richmond Hill, Georgia | 16 |
| Location: Demographics | 16 |
| Target Market | 17 |
| Business Model | 18 |
| Business Hours | 18 |
| Market Needs | 18 |
| Branding And Marketing | 19 |
| Objectives | 19 |
| Keys To Success | 19 |
| Marketing Strategies | 20 |
| Local Competitive Analysis | 21 |
| Major Industry Players | 23 |
| Competitive Advantages | 24 |
| Barriers To Entry | 24 |
| Swot Analysis | 25 |
| Risk Analysis | 25 |
| Milestones | 26 |
| Management | 27 |
| About The Owners | 27 |
| Key Management | 27 |
| Management Team Gaps | 27 |
| Organizational Chart | 27 |
| Personnel Forecast | 28 |
| Financial Indicators | 29 |
| Revenue Forecast | 30 |
| Break-Even Analysis | 32 |
| Projected Income Statement | 33 |
| Projected Cash Flow | 35 |
| Projected Balance Sheet | 36 |
| Sensitivity Analysis | 37 |
| Financial Assumptions | 38 |
| Appendix: Year One Financials | 39 |

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

4

# Executive Summary

Debellation Brewing Co. is registered in the state of Georgia and headquartered in Richmond Hill. Ownership is held privately.

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

Debellation Brewing Co. (also referred to as "the Company") is the only craft beer brewery based in the city of Richmond Hill, Georgia. The Company specializes in producing delicious

new-styled Craft Beer. Debellation Brewing is offering a range of craft beers with twelve unique flavors that are in demand among consumers. The Company's management is extensively experienced with expert craft beer making knowledge, understanding consumer preferences and working with a particular goal to satisfy their customers by introducing innovative flavors in the Craft beer industry. The management believes with the introduction of new unique flavors, the Company would attract a larger target market segment. The management is seeking $75,000-$100,000 as a bank loan to achieve the objective of this business project.

## Why Debellation Brewing Co?

- No local brewery in the city of Richmond Hill or anywhere within a 30-minute drive
- Extremely experienced owners with proven experience of over five years. Their prior knowledge of restaurant ownership is also an asset when they bought a struggling 1100sf Irish Pub in 2016 with $220k in annual gross revenue and transformed it into a 4000 square feet Irish pub with roughly $1.4 million in annual gross revenue by 2019. This additional local business will also allow Debellation Brewing Co. to take benefit of their built-in customer base right from the start, an advantage over many other brewery start-ups.
- The community of loyal customers is desperately waiting for the launch of Debellation Brewing Co.
- Debellation Brewing Co strongly believes in unique flavor combinations and aims to introduce unique products to exceed the expectations of beer consumers.
- Prime Location with several hotels, motels and gas stations in the immediate vicinity.

Business Model: Debellation Brewing Co. will be operating as a wholesaler and retailer both. The Company's activities will involve the following:

- Production: As a producer of top-notch craft beers, Debellation Brewing Co. will work with external suppliers to buy quality raw material to produce premium craft beers.
- Distribution: The Company anticipates that 90% of its sales will occur through a retail location with sales of craft beer, growlers, canned beer and merchandise. The remaining 10% will be the distribution of kegs to retail locations. These numbers will undoubtedly change as the production brewery expands in the future. The distribution will be done through the following channels:

- Retail: The Company's retail sales will mostly be from on-site sales at the brewery itself, but sales of kegs through a distributor to other local businesses will be the remainder. Sales of canned beer will also be looked at for grocery and liquor stores as the business expands with increased production output based on consumer demand.

- Wholesale: Debellation Brewing Co. will also use third party distributors as the owner has knowledge of several distributors in the local area. Negotiations to choose a distributor will begin as the opening of the brewery draws near.

5

In addition to that, Debellation Brewing Co. aims to generate strong demand through exceptional marketing strategies and through the introduction of unique products in the industry.

Phases:

- Phase I: Debellation Brewing Company will initially start operations as a small microbrewery that will have a three-barrel brewhouse with an average of 500-700 barrels a year produced. It will sell beer flights to its guests, pints, growlers and growler fills, cans of beer to purchase for home consumption and merchandise for gifts or souvenirs.
- Phase II: In the second phase, Debellation Brewing will expand into a 7-10 barrel brewhouse utilizing open space adjacent to it within 3-5 years.

Market Opportunity: The growth of craft beer brewing in the last decade across America has been explosive, with the number of breweries in the US tripling, from just over 2,000 back in 2012 to a point where there are now close to 8,000 today.1 Beer consumers are shifting from national labels to local favorites. The outlook for this industry appears to be strong, especially in Georgia and the Southeastern U.S. because analysis by IBISWorld shows that the Southeastern states account for about one-quarter of the U.S. population, but only 15 percent of the craft brewers are located within this region.2

Market Size: The Company is entering the market at a time when the industry in which it operates is experiencing exponential growth. According to market research firm IBISWorld, the Craft Beer Production Industry has seen an average annual growth rate of 11.8% over the last five years, positioning industry revenue to be around $6.8 billion in 2018. The Craft Beer Production industry is projected to see an average annual growth rate of 1.5% over the next five years, placing industry revenue at $7.2 billion in 2023. These trends bode extremely well for organizations as Debellation Brewing Co, as they show the long-term potential that the market and industry in general hold.

Marketing and Distribution: To reach the goals, marketing for Debellation Brewing Co will be done through a variety of mediums with the Internet being the primary driver.

- Website: The Company will develop a user-friendly, SEO customized portal (www.debellationbrewing.com) that outlines all of the products that are being offered.
- Social Media: The Company will also have a social media presence through leading social media portals to drive a strong word of mouth, authentic marketing message.
- Influencer Marketing: An average of 70% of people trust brand or product recommendations from someone they trust.
- Events: Attendance in trade shows and events such as Richmond Hill Rotary Craft Beer Festival will allow the Company to showcase its flavors and learn the market trends.
- Direct Sales: Debellation Brewing Co. will employ a dedicated sales team to enact precise sales and promotional efforts.

Target Market: Debellation Brewing Co anticipates that the primary customers of its products will be restaurants, bars and liquor stores, as well as to supermarkets, warehouse clubs, convenience stores and drug stores. The Company will also sell their products directly to consumers through the retail location. Thus, the major markets for beer can be segmented by consumer age group.

- Consumers aged 21 to 34: As a share of the US population, younger people are a lot more likely to drink beer than middle-aged consumers. This segment of the population was expected to account for 40.5% of industry revenue in 2018.
- Consumers aged 35 to 54: Middle-aged consumers ranging from 35 to 54 represent a substantial market for craft beer. In 2018, consumers aged 35 to 44 were expected to account for 21.2% of revenue.

1 https://bigseventravel.com/2019/03/the-50-best-craft-breweries-in-america/

2 https://www.georgiasbdc.org/small-business-in-the-craft-beer-industry/

6

While persons in the above segments will be the primary target, the secondary target will be:

- Consumers aged 55 and older: The industry's oldest consumers aged 55 and older have not demonstrated a substantial new interest in craft beer. As a result, this segment is expected to account for 18.2% of industry revenue in 2018.

# Management:

- David Goodell is the owner and CEO of Debellation Brewing Co. Mr. Goodell is a retired Captain and seasoned business professional who is well connected and attuned to the needs of his targeted market. His brewing experience, work ethic and business acumen will be the key drivers that propel this venture towards a position of lasting success.
- Teresa Goodell is the co-owner and General Manager of the Company. She will be overseeing the back office and will manage HR, payroll, scheduling, billing, accounts receivables/payables and inventory of the Company.

**Financial Overview:** The Company expects steady growth over the first five years of operation and projects the following revenue to be generated:

|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Revenue | $391,567 | $516,868 | $713,278 | $841,668 | $984,751 |
| Units | 50,443 | 66,585 | 91,887 | 108,427 | 126,860 |

# Objective

The purpose of this plan is to provide financial institutions with the information necessary to evaluate the scope and future growth of Debellation Brewing Co. in the marketplace. In addition to serving as a roadmap for management, the plan will show that:

1) A significant market opportunity exists when analyzing the current market demands and competitive landscape;
2) The management team set in place is qualified to execute on a well-thought-out operational, marketing and sales strategy, and
3) The correct capital structure will allow for a long-lasting, profitable business.

To achieve the Company's objectives, Debellation Brewing Co. is seeking $75,000-$100,000 in total funding. The funding will be allocated in a variety of ways, including staffing, operations, marketing initiatives and the brewery build-out-cost. The investment risk is minimal based on the management experience and industry growth rates. Debellation Brewing Co's financial model shows consistent growth for the brand over the next five years. By year five, plans call for the Company to achieve $988K in annual gross revenue with a net profit of $107K or approximately 10.9%.

7

# Financial Objectives

The following table and graphs illustrate the financial goals of Debellation Brewing Co. during the next five years. The financials are explained in detail throughout the duration of the plan.

| Financial Highlights ($1,000's) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | Y1 | Y2 | Y3 | Y4 | Y5 |
| Revenue | 12 | 20 | 23 | 31 | 35 | 35 | 35 | 35 | 39 | 39 | 43 | 43 | 392 | 517 | 713 | 842 | 989 |
| Gross Margin | 9 | 15 | 18 | 24 | 27 | 27 | 27 | 27 | 30 | 30 | 33 | 33 | 304 | 401 | 554 | 653 | 768 |
| Operating Expenses | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 24 | 282 | 361 | 491 | 549 | 629 |
| EBITDA | -14 | -8 | -5 | 2 | 5 | 5 | 5 | 5 | 8 | 8 | 11 | 11 | 31 | 49 | 72 | 113 | 147 |
| Net Profit | -15 | -9 | -6 | 0 | 3 | 3 | 3 | 3 | 6 | 6 | 7 | 7 | 12 | 28 | 46 | 80 | 107 |
| Gross Margin/Revenue | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% | 78% |
| EBITDA/Revenue | -116% | -39% | -19% | 5% | 13% | 13% | 13% | 13% | 19% | 19% | 25% | 25% | 8% | 9% | 10% | 13% | 15% |
| Net Profit/Revenue | -127% | -45% | -25% | 1% | 9% | 9% | 10% | 10% | 16% | 16% | 17% | 17% | 3% | 5% | 7% | 9% | 11% |
| Net Cash Flow | 55 | -7 | -5 | 2 | 4 | 3 | 3 | 3 | 7 | 6 | 10 | 7 | 91 | 23 | 44 | 82 | 102 |
| Cash Balance - Ending | 55 | 48 | 43 | 45 | 50 | 53 | 56 | 60 | 67 | 74 | 84 | 91 | 91 | 114 | 159 | 241 | 343 |

Projected Operating Highlights By Year
($1,000's)

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

Projected Revenue By Year ($1,000's)

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

Projected Cash Flow By Year ($1,000's)

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

Projected Net Income By Year ($1,000's)

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

8

# Start-Up Summary

The following tables and graphs detail the funding the business will need to bring the vision to reality. Start-up funding includes all the expenditures, both start-up assets and start-up expenses, incurred before the Company starts earning revenue. The working capital element of the asset table represents the balance of cash at the beginning of Month 1 of the financial projections.

| Use of Start-up Funding |  |
| --- | --- |
| Expenses |  |
| Grand Opening Advertising | $1,500 |
| Website Development | $1,000 |
| Initial Office Supplies | $200 |
| Build-Out-cost | $50,000 |
| Total Start-up Expenses | $52,700 |

| Long-term Assets |  |
| --- | --- |
| Furniture | $10,000 |
| Computer & Accessories | $1,500 |
| Contingency | $20,000 |
| Total Long-Term Assets | $31,500 |

| Short-Term Assets |  |
| --- | --- |
| Working Capital | $53,800 |
| Inventory | $7,000 |
| Total Short-Term Assets | $60,800 |

| Total Expenses & Assets |  |
| --- | --- |
| Total Start-up Expenses | $52,700 |
| Total Start-up Assets | $92,300 |
| Total Funding Requirements | $145,000 |

| Total Start-up Funding |  |
| --- | --- |
| Total Amount Being Requested | $105,000 |
| Total Funds Already Received | $40,000 |
| Total Funding | $145,000 |

| New Start-up Funding Being Requested |  |
| --- | --- |
| Bank Amount Being Requested | $75,000 |
| Investor Amount Being Requested | $30,000 |
| Total Amount Being Requested | $105,000 |

| Start-up Funding Already Received |  |
| --- | --- |
| Owner Contribution | $40,000 |
| Total Funding Already Received | $40,000 |

| Start-up Capital and Liabilities |  |
| --- | --- |
| Loss at Start-up (Start-up Expenses) | ($52,700) |
| Total Funds Received & Requested | $145,000 |
| Cash Balance on Starting Date | $60,800 |

As shown in the charts above and the graph below, the total start-up funding needed to successfully implement this venture is $105K. To date, the owner has invested $40K in personal funds to create the Company's brand. As depicted above, $52,700 will be used for start-up expenses; $31,500 will be used to purchase long-term assets, and $7K will be used for purchasing inventory. The remaining balance of $53,800 will be used for working capital.

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

9

# Debellation Brewing Co.

## Products And Services

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

Debellation Brewing Co. will provide state of the art new-styled Craft beer for beer lovers. Products are available in twelve different delicious flavors creatively designed by the experts. Half of them will be flagships, and the others will constantly rotate based on seasons, holidays and events. The following is a listing of the types of products that are available through Debellation Brewing Co.

| Products | Benefits | Description |
| --- | --- | --- |
| Draft Beer Flights and pints | Ability to sample delicious beers being offered | Four choices per flight can be chosen |
| Canned Beer for purchase | Ability to sample delicious beers being offered | canned beer available in singles or 6-packs |
| Growlers | Can fill up a growler for home consumption | A growler you can purchase to fill or bring your own |
| Merchandise | Items can be purchased for gifts or souvenirs | Shirts, hats, growlers, glasses, etc. |
| Private beer brewing sessions | Ability to learn the brewing process and to taste what they brewed | Private batch brew sessions |

10

# Market Analysis Summary: Craft Beer Production In The USA

**Key Statistics**
**Snapshot**

Revenue

**$6.8bn**

Profit

**$310.9m**

Annual Growth 13-18

**11.8%**

Exports

**$145.2m**

Annual Growth 18-23

**1.5%**

Business

**6,813**

The Craft Beer Production industry has transformed into one of the fastest-growing and most popular alcoholic beverage segments in the United States. The industry has experienced significant revenue growth over the five years to 2018, increasing at an annualized rate of 11.8% to reach an estimated $6.8 billion, including estimated growth of 2.0% in 2018 alone. As consumers increasingly demand a greater variety of beers, including pale ales, lagers, seasonal beers, Belgian witbiers, stouts and saisons, craft brewers have captured a significant portion of drinkers that had traditionally purchased light and premium brand beers. Since many of the industry's craft brewers are microbrewers, local brewpubs and regional producers, consumers have gravitated toward the industry's products for the attention to detail, range of beer styles, quality ingredients, a high degree of expertise and overall freshness that craft brewers offer.

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

Although the industry comprises many small-sized players, there has been increasing consolidation and expansion activity among some of the industry's largest brewers. Brewers such as MagicHat Brewing Company, Ballast Point Brewing Company and Lagunitas Brewing Company, once significant craft brewers, have been acquired by major beer companies and are no longer classified as brewers of craft beer by the Brewers Association. Other companies, such as Sierra Nevada Brewing Co., have constructed massive secondary brewing locations to facilitate wider distribution. In response to the rapid growth of craft beer, international beer manufacturing company Anheuser-Busch InBev acquired rival SABMiller plc in November 2015. The purchase, valued at $107.0 billion, represents the largest merger of alcoholic beverage companies in history.

Although both craft brewers and their competitors have speculated that the rapid revenue growth among industry brewers is poised to plateau due to market saturation, consumer demand for craft beer remains robust, although profit margins have declined. Still, over the five years to 2023, IBISWorld projects the industry to grow at a significantly slower annualized rate of 1.5% to $7.3 billion. Overwhelming consumer support for craft beer, alongside various legislative changes for interstate beer distribution, has transformed this industry from the small collection of brewpubs and microbreweries it was two decades ago to an industry that represents the strongest segment of the US alcoholic beverages market.

These growth trends bode extremely well for Debellation Brewing Co. as it establishes its brand in the marketplace.3

3 Ibid.

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# Georgia Beer Industry

Per capita consumption of beer, wine, and distilled spirits in Georgia from 1994 to 2011 (in gallons)

This timeline shows the per capita consumption of beer, wine, and distilled spirits in Georgia from 1994 to 2011. In 2010, Georgia's per capita beer consumption amounted to 18.5 gallons; it's per capita wine consumption to 1.5 gallons. 4

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

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

4 https://www.statista.com/statistics/224328/per-capita-beer-and-wine-consumption-in-georgia-since-1994/

12

# Products And Services Segmentation

The Craft Beer Production industry brews virtually all styles of beer and regularly experiments with different ingredients to create variant styles of beer. As a result, the industry's range of products is diverse. There are, however, several styles of beer that remain perennial favorites among craft beer enthusiasts and casual drinkers alike. India pale ales (commonly referred to as IPAs), traditional pale ales and seasonal varieties that feature limited time ingredients and unique flavors are the most popular types of beer.

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

## India Pale Ale (IPA)

While technically a style that exists within the broader category of pale ales, IPA brands are the most popular type of beer among craft beer drinkers. In 2018, IPAs were expected to account for 25.2% of industry revenue. IPAs rate well with craft beer enthusiasts and casual drinkers alike, due to the style's moderate body, floral aroma, agreeable pale golden color and its markedly bitter finish. The beer does not share any direct links to India or Indian-style alcohol but is often said to have earned its name due to the highly hopped pale ales that were frequently exported from the East India Company to England's colonies in India throughout the 18th and 19th centuries.

## Belgian witbier (Belgian white)

Often referred to as 'white beers' or 'Belgian whites,' Belgian witbier have spiked in popularity over the past five years, becoming a quintessential summer beer for many craft beer enthusiasts. Belgian witbier are known for their light, fluffy complexion and are often offered to consumers new to beer, as they generally tout a subtle, unobtrusive flavor, especially when compared with stronger, more distinct beer varieties, such as ultra-hoppy IPAs or a sour gose. In 2018, Belgian witbier were expected to account for 20.6% of industry revenue and are expected to continue growing in popularity over the next five years.

## Seasonal

Seasonal beers are limited-edition beers that are typically distributed at the start of a new season. These special beers often come in variety packs, feature new flavors, include additional ingredients or have slightly stronger alcohol content. Once considered to be revenue-generating promotional tools for craft brewers to expand brand recognition, experimenting with new seasonal beers and advertising the return of limited-edition seasonal brands have become significant revenue-generating activities for craft brewers.

13

Seasonal beers vary substantially depending on the season and may include unfiltered fruit and citrus flavors during the spring and summer months. Conversely, fall and winter beers tend to be darker-colored beers featuring higher alcohol content, roasted and caramelized malts, higher grain bills and additional flavors that include cinnamon, nutmeg, clove, pumpkin and peppermint. Seasonal beers represent 13.6% of industry revenue and are especially popular among casual drinkers.

### **Lager**

A lager is a type of beer that is fermented and conditioned at low temperatures using select bottom-fermenting yeast strains. The broadest categorizations of the industry's products typically separate beers into two groups of cold-fermented lagers and warm-fermented ales. Pale lager is historically the most popular and readily available style of beer in the world. In particular, the pilsner style of lagers, which features a very light golden color, mild alcohol content, high carbonation and a crisp but not dominant hop flavor, has widely become the industry standard beer style among major US-based, international macro breweries such as AnheuserBusch InBev and Molson Coors (IBISWorld report C1121-GL Global Beer Manufacturing). The style still performs moderately well in the Craft Beer Production industry, generating 11.1% of revenue. Much like pale ales, lagers can be made in different varieties. However, the varieties of lagers are limited and generally consist of pale, amber and dark lager variants. American pilsners typically incorporate rice and corn during the mashing process to create a straw yellow color and crisp, refreshing taste. Bock beers are traditionally the darkest and strongest lagers, while amber lagers offer a moderate malt flavor.

### **Pale ale**

Traditional pale ales account for 7.7% of craft beer sales and feature a wide range of variants, styles and sub-categories. Generally speaking, pale ales are made using a high proportion of two-row pale malt, which gives the beer a light color. Different brewing processes, grain bills and hop varieties make pale ale one of the most complex and diverse beer categories. Popular types of pale ale beers include blonde ales, English ales, Irish ales, Scotch ales and American ales, all of which feature slight regional differences to the standard pale ale formula, particularly concerning hop additions. Although still popular among consumers who are unfamiliar with the industry's more complex or esoteric flavors, traditional forms of pale ale have contracted slightly over the past five years as the industry's rapid growth has led many brewers to continually 'one-up' their competitors with a greater range of unconventional styles. Amber ales, a variant of pale ales, are made with a proportion of caramelized and amber-hued malt that has been kilned longer to give the beer an accentuated, richer flavor and to produce a deeper, copper tinge. The Brewers Association describes amber ales as having flavors determined primarily by the hops but focusing mainly on achieving a balance of toasty malt flavors to complement the bitterness of the hops. Amber ales represent 8.8% of the industry's revenue.

### **Wheat beers, fruit beers, stouts, porter and others**

As the industry continues to expand, many craft beer producers have attempted to separate their products through beer styles that offer heavily roasted grains, high alcohol content, fruit adjuncts and wheat-based malts. This has led to an increasingly large 'other' category, which is expected to comprise 14.5% of industry revenue in 2018. As consumers have become increasingly interested in the brewing process, new beer styles often focus on making the malt the primary focus of the beer, unlike hop-centric pale ales. Stouts and porters, for example, are often heavy-bodied, due in part to unique ingredients like oatmeal, coffee, chocolate malt, lactose and other novel flavors. The greater popularity of once uncommon regional styles such as Saisons, barleywines, lambics, tripels, altbiers and gluten-free sorghum beers will represent a major source of growth for craft breweries over the next five years.

14

# Georgia Craft Beer Market Size5

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

## Market Segmentation

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

5 https://www.brewersassociation.org/statistics-and-data/state-craft-beer-stats/

15

# Operational Strategy

## Legal Structure

Debellation Brewing Co. will be registered as S-Corp in the state of Georgia and headquartered in Richmond Hill. Ownership is held by David Goodell and Teresa Goodell.

## Location: Richmond Hill, Georgia

The Company will be located at 822 Longwood Dr Richmond Hill, GA 31324. It is uniquely situated right off exit 90 of I-95 and in clear view of the cars passing by as they exit. The property is 4,000 square feet and located in a light industrial zone right off exit 90 of I-95. The building is a metal structure with six garage doors on 1.5 acres, which butts up to interstate I-95 and in clear view of the cars passing by as they exit. Perfect setup for any microbrewery of up to 20BBL capacity. Debellation Brewing Company has a Viking/Celt theme to it heralding back to its founder's lineage in Norway.

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

## Location: Demographics

| Statistic | Richmond Hill | Georgia | National |
| --- | --- | --- | --- |
| Population | 11,501 | 10,099,320 | 318,558,162 |
| Population density (sq. mi) | 725 | 167 | 91 |
| Median age | 31 | 36.2 | 37.7 |
| Male/Female ratio | 1.0:1 | 1.0:1 | 1.0:1 |
| Married (15yrs & older) | 64% | 54% | 55% |
| Families w/ Kids under 18 | 62% | 45% | 43% |
| Speak English | 88% | 86% | 79% |
| Speak Spanish | 7% | 8% | 13% |

16

# Target Market

The primary target market for the products that are being offered by Debellation Brewing Co will be consumers aged 21 to 54. Persons in this age group have shown a much stronger inclination to be actively involved in the consumption of Craft beer.

- **Consumers aged 21 to 34:** As a share of the US population, younger people are a lot more likely to drink beer than middle-aged consumers, many of whom prefer wine and more traditionally popular brands of light beer. The largest growth segment for beer during the past five years has been the youngest portion of the population of drinking age, namely, those aged 21 to 34. College students and young professionals have spent an increasing amount on craft beer in the past five years, as the age group has increasingly been willing to explore a range of alternatives to the standard macrobrew. This segment of the population is expected to account for 40.5% of industry revenue in 2018.
- **Consumers aged 35 to 54:** Middle-aged consumers ranging from 35 to 54 represent a substantial market for craft beer. These consumer segments have historically represented the major consumer base for craft beers, particularly among male beer hobbyists and homebrewers. This age group has also gravitated toward wine and other spirits. As a result, in 2018, consumers aged 35 to 44 are expected to account for 21.2% of revenue, while consumers aged 45 to 55 are expected to account for 18.0% of industry revenue. Over the next five years, the younger demographic will continue to be the main growth segment for craft beer, but as they continue to age, consumers aged 35 to 54 are expected to account for a growing share of industry revenue.

While persons in the above segments will be the primary target, the secondary target will be:

- **Consumers aged 55 and older:** The industry's oldest consumers aged 55 and older have not demonstrated a substantial new interest in craft beer. As a result, this segment is expected to account for 18.2% of industry revenue in 2018. Many consumers in this demographic segment either prefer other alcoholic beverages such as wine and spirits, while most beer drinkers in this segment continue to drink premium beer brands from major domestic beer manufacturers. The growth of the Craft Beer Production industry is a relatively new phenomenon, and many consumers in this demographic segment have shown less willingness to shift their beer purchases away from standard macro breweries.

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

17

# Business Model

Debellation Brewing Co. will be operating as a wholesaler and retailer both. The Company's activities will involve the following:

- Production: As a producer of top-notch craft beers, Debellation Brewing Co. will work with external suppliers to buy quality raw material to produce premium craft beers.
- Distribution: The Company anticipates that 90% of its sales will occur through a retail location with sales of draft beer, growlers, canned beer and merchandise. The remaining 10% will be the distribution of kegs to retail locations. These numbers will undoubtedly change as the production brewery expands in the future. The distribution will be done through the following channels:
  - Retail: The Company will initially start operating with retail location but plans to expand to other areas of the City as well. Mr. Goodell's other business (Irish Pub) is in the same town and is currently being transformed into a brewpub, with a smaller 1BBL nano brewhouse. This additional local business will allow Debellation Brewing to take advantage of the existing customer base right from the start, an advantage over many other brewery start-ups. The Irish Pub and Debellation Brewing are roughly two miles apart. The Company will be brewing at both locations.
  - Wholesale: Debellation Brewing Co. will also use a third-party distributor as the owner has knowledge of several distributors in the local area. Negotiations to choose a distributor will begin as the opening of the brewery draws near.

In addition to that, Debellation Brewing Co. aims to generate strong demand through exceptional marketing strategies and through the introduction of unique products in the industry.

## Phases:

- Phase I: Debellation Brewing Company will initially start operations as a small microbrewery that will have a three-barrel brewhouse with an average of 500-700 barrels a year produced. It will sell beer flights to its guests, pints, growlers and growler fills, cans of beer to purchase for home consumption and merchandise for gifts or souvenirs.
- Phase II: In the second phase, Debellation Brewing will expand into a 7-10 barrel brewhouse utilizing open space adjacent to it within 3-5 years.

## Business Hours

Debellation Brewing will be operating daily from early afternoon to early evening, which is 12:00 pm to 8:00 pm. Production and brewing operations will be done before and after those hours.

## Market Needs

The market is craving for the product line that is being offered by Debellation Brewing Co. The Company will be the pride of Richmond Hill as its only local brewery in the city and Entire County. The local Irish Pub was owned by Debellation Brewing's owner, is also a staple of the community and has gained a reputation as having Bryan County's Best Chef voted by the people in 2019, among other awards. Their patrons eagerly await the opening of Debellation Brewing. With this industry projected to have strong growth trends over the course of the next several years, the need for products that keep the consumer satisfied will rise exponentially. Market demand is precisely the area that Debellation Brewing Co. will address and one that will allow the Company to remain relevant well into the future.

18

# Branding And Marketing

To raise brand awareness among its intended audiences, the Company will emphasize a logo and company colors on all marketing materials. The Company's branding, values, and mission will aid in fueling word-of-mouth buzz and building a loyal customer following.

By upholding a positive corporate image in addition to providing its top-quality craft beer, Debellation Brewing Co. will increase its market share, stand out among its competitors, and become a dominant player in the market. The Company will also fervently track any direct or indirect competition in the marketplace to ensure it stays on top of cutting-edge industry trends and opportunities. Moving forward, Debellation Brewing Co. will strive to meet the following objectives as it accomplishes specific keys to success:

## Objectives

- Become a recognized market leader in the craft beer production industry
- Develop a strong customer service model
- Remain flexible in product offerings
- Remain attuned to the marketplace and integrate products into the business mix that meet the needs of the targeted audience

## Keys To Success6

- Establishment of brand names
  Successful branding through logo design, labeling and advertising is critical to success in a brand competitive market.
- Control of distribution networks
  New entrants must have access to distribution networks, including wholesale distributors, to get their beer sold at restaurants, bars and other retail locations.
- Marketing of products
  Innovative and offbeat branding, packaging and marketing help operators differentiate their craft beer from corporate brands.
- Effective quality control
  Quality and taste are important competitive factors among craft breweries. Operators need to keep flavors consistent batch after batch and ensure high quality.
- Management of seasonal production
  In addition to year-round brewing flavors, producers must continually rotate several additional beer styles every few months to take advantage of increasingly popular seasonal drinking trends.

6 "Craft Beer Production in the US" IBISWorld.

19

# Marketing Strategies

Marketing for Debellation Brewing Co. will be done through a variety of channels including the internet, print, television, email marketing, video blogging, social media, press releases, trade shows and word of mouth as detailed below:

## Social Media

- Generate brand awareness and maintain a presence on social media websites such as Facebook, Twitter, and LinkedIn.
- Google+, when a customer searches for delicious craft beers, Google's Knowledge Graph provides the business's details in the sidebar. Google's Knowledge Graph gathers a large chunk of its info from Google+, so having your business set up on Google+ is a huge bonus.
- Facebook has its pay-per-click network that is also cost-effective and can be targeted to the company's demographic.

## Influencer Marketing

Using celebrities for promotion is hardly new, and Influencer marketing is a rising strategy that utilizes key leaders to drive the brand's message. An average of 70% of people trusts brand or product recommendations from someone they trust, according to Mashable. Pepsi gained over 46 million impressions by incorporating highly influential creators and asking them to share content featuring the redesigned beverage, which would have cost them 5x as much without the use of influencer marketing, according to Shorty Awards.

## Launching and Networking

Launching extended advertising will involve the following:

- Sales discount/deal to distributors mainly, it may also include a discounted offer to retailers.
- Banners display at shopping malls, parks, and other public places

## Trade Shows

Attendance in trade shows and events such as Richmond Hill Rotary Craft Beer Festival will allow the Company to showcase its latest products and learn about recent market trends and opportunities.

## Direct Sales

Debellation Brewing Co. will employ a dedicated sales team to enact precise sales and promotional efforts. Potential clients will be contacted directly, and all sales efforts will involve informational discussions and presentations.

## Word of Mouth

Word of mouth will round out the marketing model and has the potential of providing the most marketing push as it will allow the Debellation Brewing Co. to deliver an authentic, trusted marketing message among the target market.

## Website

A well-optimized website with proper site structure, page layout, and clear and easy navigation, along with targeted keywords embedded throughout the site will be constructed and will ensure proper search engine placement and saturation. The Company's website www.debellationbrewing.com is an important marketing asset. Along with SEO, the website is easily navigable, highly informative and will serve as a platform to generate new business.

20

# Local Competitive Analysis

Debellation Brewing Co. is keenly aware that it must consistently analyze the local competitive landscape to accelerate its position in the marketplace. Currently, there is no local brewery in the city of Richmond Hill or anywhere within a 30-minute drive. If there were competition, those would be other breweries in nearby Savannah, Georgia. All of them are very supportive of Debellation Brewing and each other. Small craft breweries, for the most part, do not consider themselves in competition with others in unsaturated markets such as ours. Each of these has been supportive in mentoring, advice and support to us, particularly Coastal Empire Beer Company. The identified breweries are described below:

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

## Service Brewing Co

Phone: +1 912-358-1002

Address: 574 Indian Street Savannah, GA 31401

Email: info@servicebrewing.com

Facebook: www.facebook.com/servicebrewing

Web: www.servicebrewing.com

Service Brewing Co. is a veteran-owned craft brewery based in Savannah, Georgia, United States. The Company was established in 2013 and incorporated in GA. The owner of the company is Mr. Kevin Rogers Ryan. They craft American-made beers for the curious and experienced consumer, focusing on high quality and local ingredients. They claim to brew their large scale beers year-round while maintaining a busy Research and Development division that produces small batches of innovative, experimental brews. Service Brewing Co. is dedicated to honoring those that have put their lives at risk and their country and community first.

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

## Southbound Brewing Co

Address: 107 E Lathrop Ave Savannah, Georgia

Phone: +1 912-335-1737

Email: info@southboundbrewingco.com

Facebook: www.facebook.com/southboundbrewingco/

Web: www.southboundbrewingco.com

Southbound Brewing Company is the first production microbrewery located in Savannah, Georgia. It is a privately owned brewery with six craft-beer labels, offering visitor tours, musical events & tastings. Southbound released its first brew on May 15, 2013, and aspire to become the most innovative and exciting yet. The two founding members, Smith Mathews and Carly Wiggins, have been lifelong friends. Both attended the Georgia Institute of Technology and have almost ten years of combined industry experience. Southbound offers a variety of beers focusing heavily on IPA's and sours. According to Owler.com, they have estimated annual revenue of 7.8 million dollars.7

7 https://www.owler.com/company/southboundbrewingco

21

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

### Coastal Empire Beer Co

Phone: +1 912-335-2804

Address: 79 Ross Road Savannah, Georgia

Email: contact@coastalempirebeer.com

Website: www.coastalempirebeer.com

Facebook: www.facebook.com/CEBC.Beer/

Coastal Empire Beer Co. is a privately owned craft brewery based in Savannah, Georgia, United States. The Company was founded in 2010 by Kevin Haborak. They have 16 beers on tap in the tasting room, which includes their five year-round beers, seasonals, and taproom only small-batch beers. They claim to pet-friendly and welcome outside food on their premises.

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

22

# Major Industry Players$^{8}$

| Company | Market Share | Description |
| --- | --- | --- |
| Boston Beer Company | 11.0% | The Boston Beer Company was founded in 1984 in Boston and has historically been the most prominent craft brewing company in the United States. The Boston Beer Company's signature brand is the Samuel Adams line of beers, which includes the flagship Boston Lager; Sam Adams Light; Rebel IPA; its lineup of seasonal beers; the Barrel Room Collection of barrel-aged and high-ABV beverages; its small-batch beer lineup; many limited-release beers; and its Brewmasters Collection of lagers, wheat beers, ales, IPAs, pilsner and fruit beers. The company produces about 4.0 million barrels of beer per year and employs more than 1,500 people. Over the five years to 2018, the Boston Beer Company's industry-relevant revenue experienced strong growth, particularly early on and later in the period. Thus, over the five years to 2018, IBISWorld expects industry-relevant revenue to increase at an annualized rate of 5.7% to $740.5 million. The company's biggest declines came in 2016 and 2017. However, the company is expected to experience significant revenue gains in 2018, resulting from renewed interest in some of its most popular brands. Still, the company's market share has been consistently declining over the past five years, as the industry has become inundated with small, local craft brewers, and consumers have increasingly sought out burgeoning varieties. |
| D.G. Yuengling & Son Inc. | 9.0% | D.G. Yuengling & Son Inc. (Yuengling) is the oldest brewery in the United States and represents one of the largest breweries in the country in terms of total barrel volume. Founded in 1829 by German brewer David Gottlob Jüngling in Pottsville, PA, Yuengling has grown into one of the premier family-owned breweries in the country. Through its two Pennsylvania breweries and its new Tampa, FL, plant, the company produces an estimated 5.7 million barrels of beer each year. Unlike many of the industry's largest craft breweries that are capable of negotiating national distribution contracts throughout most of the United States, Yuengling predominantly distributes its products across the East Coast. While it is a staple at many bars and retail stores throughout New York, Pennsylvania and the southern states of Georgia, Tennessee and elsewhere, the company does not have any current plans to expand its sales into all of New England or elsewhere. Yuengling is a private, family-owned brewery and does not disclose financial data to the public. However, the company's projected barrel volume is anticipated to have exceeded 5.0 million barrels over the five years to 2018, making the company one of the largest in the industry. IBISWorld anticipates Yuengling's industry-relevant revenue will remain relatively stagnant over the five years to 2018, declining an annualized 0.1% to $610.3 million. Additionally, Yuengling bolstered its total revenue growth in recent years by constructing a museum and gift shop at its flagship location in Pottsville. The 40,000 square-foot building, which was once used to manufacture the company's brand of ice cream, will also offer a tasting room. Sales of gifts and ice cream are not included in the company's craft beer production revenue. |
| New Belgium Brewing Company | 3.6% | New Belgium Brewing Company was established in 1991 in Fort Collins, CO, and currently produces more than 1.0 million barrels of New Belgium branded beer annually. Much like many of the industry's emerging major players, the company started as homebrew by founder and hobbyist Jeff Lebesch, who enjoyed brewing in his basement and sharing his homemade product with his family and friends. With some help from their neighbors, Lebesch and his wife (and current CEO) Kim Jordan grew the business to its current distribution across all 50 states. The company has completed its 100,000 square-foot distribution center in Asheville, NC, which is anticipated to boost the company's capacity to ship an additional 500,000 barrels of beer per year. IBISWorld estimates that the New Belgium Brewing Company will generate $243.6 million in revenue in 2018. |

$^{8}$ Ibid.

23

# Competitive Advantages

The following is a listing of the primary competitive advantages of the Company upon entering the market.

- Excellent Customer service
- No local brewery in the city of Richmond Hill or anywhere within a 30-minute drive
- The prime location of the business
- Owners of Debellation Brewing have gained an excellent reputation in the local market as their other business (Irish Pub) is quite successful and has won several awards, including Bryan County's Best Chef voted by the people in 2019.
- The community of loyal customers is desperately waiting for the launch of Debellation Brewing Co.
- Creativity and innovation in the market
- Unique Products with unpredictable flavor combinations
- Superior knowledge of craft beers
- The volume of quality products
- Delicious Taste
- Niche industry with amazing growth potential

## Barriers To Entry

The barriers to entry into the Craft Beer Production industry are moderate. Basic brewing equipment can be purchased at a relatively low cost, provided that the brewery aims to produce and sell their product locally. Many operators can access small business loans to launch microbreweries, although larger initial investment will enable brewers to produce in higher volumes at a lower per-unit cost. In many cases, some of the industry's most successful craft beer brands started from hobbyists, homebrewers and brewpubs that chose to expand their production and sell their products to a larger audience. Gaining access to raw material inputs such as malted barley, hops, yeast, sugar and other optional adjuncts is relatively easy, and many small-scale producers may choose to sell their products to consumers directly from the facility into glass bottles, large growlers or served from the tap at the establishment. Aspiring craft brewers often prefer to operate their facility as both a brewery and a taproom, since bottling and distribution activities reduce profit margins. Smaller producers will be at a competitive disadvantage; however, since raw materials and ingredients often are more expensive to purchase per unit when acquired in small quantities. Smaller breweries are also disproportionately exposed to fluctuations in input costs and may be forced to charge higher prices for their products.

New entrants into the industry who wish to distribute their products immediately will need to secure distribution agreements and purchase branding, marketing and promotional materials. Gaining access to distribution channels may be a significant barrier to entry, partly due to the costly nature of negotiating distribution contracts with major beer wholesalers. The three-tier alcohol distribution system prohibits producers of beer from distributing alcohol to the retail level without negotiating a distribution agreement with commercial or state wholesalers. Wholesalers will stock the shelves of liquor outlets, supermarkets, convenience stores and restaurants with the beers they distribute, but limited shelf space will ultimately leave some craft beer producers unable to retail their products if larger beer manufacturers can successfully negotiate more lucrative deals. Many major beer manufacturing companies, such as Anheuser-Busch InBev, have diversified their brand portfolios by producing craft-style flavors and acquiring craft brewers. This not only makes it increasingly difficult for craft beer producers to compete against major brewers, but these major beer manufacturers often possess the cash on hand to negotiate substantial distribution deals that command a high percentage of supermarket shelf space.

Barriers to Entry checklist

| Competition | High |
| --- | --- |
| Concentration | Low |
| Life Cycle Stage | Growth |
| Capital Intensity | High |
| Technology Change | Low |
| Regulation and Policy | Heavy |
| Industry Assistance | Low |

SOURCE: WWW.BEWARDS.COM

24

# Swot Analysis

The following is a listing of the key strengths and weaknesses of Debellation Brewing Co., as well as the opportunities and threats that exist within the marketplace.

## Strengths

- Knowledge of the owners
- Customer service commitment
- Scope and quality of products
- No local brewery in the city of Richmond Hill or anywhere within a 30-minute drive
- Owners of Debellation Brewing have gained an excellent reputation in the local market as their other business (Irish Pub) is quite successful and has won several awards, including Bryan County's Best Chef voted by the people in 2019.
- The community of loyal customers is desperately waiting for the launch of Debellation Brewing Co.
- Aim to bolster Richmond Hill's economy with needed tax revenue
- The prime location of the business
- Creativity and innovation in the market
- Unique Products with unpredictable flavor combinations
- The volume of quality products
- Delicious Taste
- Niche industry with amazing growth potential

## Weaknesses

- The company needs funding and working capital for a successful launch
- As a new business, the Company must build its credibility

## Opportunities

- The increasing popularity of the industry
- Growth among demographic segments

## Threats

- Instability of the US economy leads to unpredictable market activity
- Larger companies that have more resources and the ability to reach deeper into the market

## Risk Analysis

The risks involved with Debellation Brewing Co. will be minimal. The business operates with little overhead; a vital factor that bodes well for long-term sustainability and the creation of a durable business model. However, relatively high barriers to entry have fostered a competitive landscape with a vast range of available products and services. In order to face the risks as a new business in the marketplace, the Company must implement a highly effective marketing campaign, build industry connections and communicate its value to potential customers while focusing on how it uniquely fills a market need. With that being said, the Company stands as a viable business opportunity that has the potential to deliver significant returns to any investor or lending institution.

25

# Milestones

The tentative milestones are shown below. Management reserves the right to make changes to this schedule as needed.

| Milestones |  |  |
| --- | --- | --- |
|  | Start Date | Duration (days) |
| Secure Location | 07/01/2020 | 14.00 |
| Obtain Funding | 07/15/2020 | 0.00 |
| Build-out | 07/15/2020 | 31.00 |
| Purchase Furnishing and Décor | 08/15/2020 | 17.00 |
| Hire Staff | 09/01/2020 | 30.00 |
| Grand Opening | 10/01/2020 | 75.00 |
| Achieve $391k in Gross Sales | 10/01/2020 | 365.00 |

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

26

# Management

## About The Owners

David Goodell is the owner and CEO of Debellation Brewing Co. Mr. Goodell has experience-based knowledge; he has always been a self-motivator and accomplished every goal he set out to pursue throughout his career. His professional interests focus on building a successful business through the production of high-quality craft beer, where he has over five years of hands-on experience. Mr. Goodell has won back to back 1st place awards in the annual Domras Cup Beer Homebrewers Beer Competition for 2019 and 2020. David Goodell has been brewing for five years, starting as a homebrewer and creating a homebrew club for others in the local area. Over the years, David has refined and gained advanced brewing techniques and working knowledge of crafting many styles of beer. In addition, he has excellent communication skills, time-management skills, and overall organizational skills.

Teresa Goodell is the co-owner and General Manager of Debellation Brewing Co. She is a highly motivated individual who excels at whatever she does. She has been preparing and researching for this venture for the past few years. Her strategic planning and execution make her well suited to lead the Company.

## Key Management

- Brewmaster
- Taproom manager
- Sales Representative
- Assistant brewer

## Management Team Gaps

Every organization utilizes diverse human resources to accomplish company goals and objectives. To accomplish company goals and objectives, Debellation Brewing Co. may need to add more positions in the future, such as CFO, CTO, COO, Finance Manager, Accountant, Sales Manager and Marketing Manager.

## Organizational Chart

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

27

# The Personnel Forecast

The personnel forecast below shows the staffing needs for the next five years.

| Personnel Forecast |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Management Staff |  |  |  |  |  |
| Brewmaster | 1 | 1 | 2 | 2 | 3 |
| Sales Representative | 1 | 2 | 2 | 3 | 3 |
| Assistant Brewer | 2 | 3 | 5 | 5 | 5 |
| Total Personnel | 4 | 6 | 9 | 10 | 11 |
| Management Salaries |  |  |  |  |  |
| Brewmaster | $32,000 | $35,000 | $40,000 | $43,000 | $47,000 |
| Sales Representative | $30,000 | $30,900 | $31,827 | $32,782 | $33,765 |
| Assistant Brewer | $28,000 | $28,840 | $29,705 | $30,596 | $31,514 |
| Management Staff |  |  |  |  |  |
| Brewmaster | $32,000 | $35,000 | $80,000 | $86,000 | $141,000 |
| Sales Representative | $30,000 | $61,800 | $63,654 | $98,345 | $101,296 |
| Assistant Brewer | $56,000 | $86,520 | $148,526 | $152,982 | $157,571 |
| Total Payroll | $118,000 | $183,320 | $292,180 | $337,327 | $399,867 |

**Personnel Assumptions: (1) Costs are based on average wages.**

28

# Financial Indicators

The following table summarizes Debellation Brewing Co.'s projected financial performance with standardized measurement indicators used to evaluate the profitability, leverage, asset turnover and liquidity. As with any long-range projection, accuracy is based on reasonable estimates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary.

| Financial Indicators |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Profitability %'s: |  |  |  |  |  |
| Gross Margin | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% |
| Net Profit Margin | 3.04% | 5.35% | 6.52% | 9.45% | 10.86% |
| EBITDA to Revenue | 7.81% | 9.48% | 10.11% | 13.45% | 14.91% |
| Return on Assets | 6.86% | 14.34% | 19.79% | 25.81% | 26.25% |
| Return on Equity | 14.54% | 25.22% | 29.79% | 33.77% | 31.30% |
| Activity Ratios: |  |  |  |  |  |
| Accounts Payable Turnover | 3.50 | 4.54 | 5.14 | 5.33 | 5.51 |
| Asset Turnover | 2.26 | 2.68 | 3.04 | 2.73 | 2.42 |
| Leverage Ratios: |  |  |  |  |  |
| Debt to Equity | 1.12 | 0.76 | 0.51 | 0.31 | 0.19 |
| Debt to Assets Ratio | 52.82% | 43.15% | 33.59% | 23.56% | 16.14% |
| Interest Coverage Ratio | 5.37 | 9.78 | 16.93 | 32.82 | 57.38 |
| Liquidity Ratios: |  |  |  |  |  |
| Current Ratio | 3.93 | 4.96 | 5.72 | 7.36 | 9.21 |
| Current Debt to Total Assets Ratio | 14.41% | 13.23% | 13.22% | 11.46% | 9.82% |
| Additional Indicators: |  |  |  |  |  |
| Revenue to Equity Ratio | 4.78 | 4.72 | 4.57 | 3.57 | 2.88 |

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

29

# Revenue Forecast

The following is a five-year revenue forecast. Direct costs include all costs that can be directly tied to revenue and include the 'cost of goods/services.'

| Revenue Forecast |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Total |  |  |  |  |  |
| Beer Flights (Four 4oz) | 13,827 | 18,252 | 25,188 | 29,722 | 34,923 |
| Pints 16oz | 18,436 | 24,336 | 33,584 | 39,629 | 46,564 |
| Canned Beer (6 Packs) | 9,218 | 12,168 | 16,792 | 19,814 | 23,282 |
| Growlers | 6,145 | 8,112 | 11,195 | 13,210 | 15,521 |
| Merchandise | 333 | 440 | 607 | 717 | 842 |
| Keg | 83 | 109 | 150 | 178 | 209 |
| Food | 2,400 | 3,168 | 4,372 | 5,159 | 6,062 |
| Price |  |  |  |  |  |
| Beer Flights (Four 4oz) | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 |
| Pints 16oz | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 |
| Canned Beer (6 Packs) | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 |
| Growlers | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 |
| Merchandise | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
| Keg | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 |
| Food | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 |
| Revenue |  |  |  |  |  |
| Beer Flights (Four 4oz) | $96,791 | $127,764 | $176,314 | $208,051 | $244,460 |
| Pints 16oz | $92,182 | $121,680 | $167,918 | $198,144 | $232,819 |
| Canned Beer (6 Packs) | $92,182 | $121,680 | $167,918 | $198,144 | $232,819 |
| Growlers | $87,061 | $114,920 | $158,589 | $187,136 | $219,884 |
| Merchandise | $5,001 | $6,601 | $9,110 | $10,749 | $12,630 |
| Keg | $11,151 | $14,719 | $20,313 | $23,969 | $28,164 |
| Food | $7,200 | $9,504 | $13,116 | $15,476 | $18,185 |
| Total Revenue | $391,567 | $516,868 | $713,278 | $841,668 | $988,960 |
| Direct Cost |  |  |  |  |  |
| Beer Flights (Four 4oz) | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 |
| Pints 16oz | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 |
| Canned Beer (6 Packs) | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 |
| Growlers | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 |
| Merchandise | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 |
| Keg | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 |
| Food | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 |

30

| Direct Cost of Revenue |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Beer Flights (Four 4oz) | $8,296 | $10,951 | $15,113 | $17,833 | $20,954 |
| Pints 16oz | $11,062 | $14,602 | $20,150 | $23,777 | $27,938 |
| Canned Beer (6 Packs) | $33,185 | $43,805 | $60,451 | $71,332 | $83,815 |
| Growlers | $23,762 | $31,366 | $43,286 | $51,077 | $60,015 |
| Merchandise | $2,500 | $3,301 | $4,555 | $5,375 | $6,315 |
| Keg | $7,021 | $9,268 | $12,789 | $15,092 | $17,733 |
| Food | $1,800 | $2,376 | $3,279 | $3,869 | $4,546 |
| Subtotal Cost of Revenue | $87,627 | $115,668 | $159,622 | $188,354 | $221,316 |

Revenue Forecast Assumptions: (1) Revenue and costs are based on averages.

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

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

31

# Break even Analysis

The following break-even analysis shows the revenue necessary to break-even in the first year of operation. Break-even is where revenue equals expenses. As shown below, the Company is expected to incur average monthly fixed costs of $24,005 in Year 1. To cover fixed costs and variable costs, which rise and fall with revenue, the Company must, on average, achieve revenue of $31,335 per month to break-even.

Year 1 Break-even Analysis

| Monthly Revenue Break-even | $31,335 |
| --- | --- |
| Assumptions: |  |
| Average Monthly Revenue | $32,631 |
| Average Monthly Variable Cost | $7,633 |
| Estimated Monthly Fixed Cost | $24,005 |

Year 1 Break-even Analysis

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

32

# Projected Income Statement

Debellation Brewing Co. intends to deploy its funding to maximize growth and profitability. In the Income Statement table below, gross margin equals sales minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation and amortization) equals gross margin minus operating expenses.

| Pro Forma Income Statement |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Revenue | $391,567 | $516,868 | $713,278 | $841,668 | $988,960 |
| Subtotal Cost of Revenue | $87,627 | $115,668 | $159,622 | $188,354 | $221,316 |
| Total Cost of Revenue | $87,627 | $115,668 | $159,622 | $188,354 | $221,316 |
| Gross Margin | $303,939 | $401,200 | $553,656 | $653,314 | $767,644 |
| Gross Margin/Revenue | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% |
| Expenses |  |  |  |  |  |
| Rent | $48,000 | $49,200 | $50,430 | $51,691 | $52,983 |
| General Insurance Liability | $2,100 | $2,153 | $2,206 | $2,261 | $2,318 |
| Telephone/Internet | $1,200 | $1,230 | $1,261 | $1,292 | $1,325 |
| Website Hosting/Updates | $900 | $923 | $946 | $969 | $993 |
| Marketing & Advertising | $12,000 | $15,000 | $20,000 | $25,000 | $32,000 |
| Supplies | $30,000 | $30,750 | $31,519 | $32,307 | $33,114 |
| Utilities | $18,000 | $18,450 | $18,911 | $19,384 | $19,869 |
| Professional Services | $4,800 | $4,920 | $5,043 | $5,169 | $5,298 |
| Travel & Fuel | $4,200 | $4,305 | $4,413 | $4,523 | $4,636 |
| Facility Maintenance | $12,000 | $12,300 | $12,608 | $12,923 | $13,246 |
| Merchant Fees | $9,000 | $9,225 | $9,456 | $9,692 | $9,934 |
| Depreciation & Amortization | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 |
| Payroll Taxes & Benefits | $13,157 | $20,440 | $32,578 | $37,612 | $44,585 |
| Total Personnel | $118,000 | $183,320 | $292,180 | $337,327 | $399,867 |
| Total Operating Expenses | $282,357 | $361,215 | $490,549 | $549,150 | $629,169 |
| Profit Before Interest and Taxes | $21,582 | $39,985 | $63,106 | $104,163 | $138,475 |
| EBITDA | $30,582 | $48,985 | $72,106 | $113,163 | $147,475 |
| Interest Expense | $5,699 | $5,008 | $4,259 | $3,448 | $2,570 |
| Taxes Incurred | $3,970 | $7,345 | $12,358 | $21,150 | $28,540 |
| Net Profit | $11,913 | $27,632 | $46,489 | $79,565 | $107,365 |
| Net Profit/Revenue | 3.04% | 5.35% | 6.52% | 9.45% | 10.86% |

Income Statement Assumptions: (1) Start-up cost is amortized over 3 years; (2) Total payroll taxes are 11.15%; (3) Company taxes are based on 21%.

33

The charts below represent the total revenue monthly and for the next five years. The charts illustrate the percentage of revenue allocated to the cost of goods (COG), operating expenses, taxes and interest. The net income piece represents revenue less the aforementioned expenditures.

# Gross Margin & Profit Monthly

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

# Gross Margin & Profit Yearly

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

34

# Projected Cash Flow

The following depictions of Debellation Brewing Co.'s projected cash flow show that the Company expects to maintain sufficient cash balances over the five years of this plan. The 'pro forma cash flow' table differs from the 'pro forma income statement' table. Pro forma cash flow is intended to represent the actual flow of cash in and out of Debellation Brewing Co. In comparison, the revenue and expense projections on the income statement include 'non-cash' items and exclude funding and investment illustrations.

| Pro Forma Cash Flow |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Cash Received |  |  |  |  |  |
| Revenue | $391,567 | $516,868 | $713,278 | $841,668 | $988,960 |
| Proceeds from Bank Loan | $75,000 | $0 | $0 | $0 | $0 |
| Owner Contribution | $40,000 | $0 | $0 | $0 | $0 |
| Proceeds from Investor | $30,000 | $0 | $0 | $0 | $0 |
| Subtotal Cash Received | $536,567 | $516,868 | $713,278 | $841,668 | $988,960 |
| Expenditures |  |  |  |  |  |
| Expenditures from Operations |  |  |  |  |  |
| Total Personnel | $118,000 | $183,320 | $292,180 | $337,327 | $399,867 |
| Bill Payments | $227,633 | $296,450 | $360,043 | $411,515 | $467,891 |
| Subtotal Spent on Operations | $345,633 | $479,770 | $652,223 | $748,842 | $867,758 |
| Additional Cash Spent |  |  |  |  |  |
| Start-up Costs | $52,700 | $0 | $0 | $0 | $0 |
| Principal Loan Repayment | $8,329 | $9,020 | $9,768 | $10,579 | $11,457 |
| Purchase Inventory | $7,000 | $5,000 | $7,000 | $0 | $8,000 |
| Purchase Long-term Assets | $31,500 | $0 | $0 | $0 | $0 |
| Subtotal Cash Spent | $445,162 | $493,790 | $668,992 | $759,421 | $887,215 |
| Net Cash Flow | $91,405 | $23,078 | $44,286 | $82,246 | $101,744 |
| Cash Balance | $91,405 | $114,483 | $158,769 | $241,015 | $342,760 |

Cash Flow Assumptions: (1) Proceeds from Bank Loan assume funds were received in the amount of $75k; (2) Proceeds from Investor's funds were received in the amount of $30k; (3) Owner Contribution is $40k.

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

35

# Projected Balance Sheet

A balance sheet is a snapshot of Debellation Brewing Co.'s financial condition. The balance sheet has three parts: assets, liabilities and ownership equity.

| Pro Forma Balance Sheet |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Assets |  |  |  |  |  |
| Current Assets |  |  |  |  |  |
| Cash | $91,405 | $114,483 | $158,769 | $241,015 | $342,760 |
| Inventory | $7,000 | $12,000 | $19,000 | $19,000 | $27,000 |
| Total Current Assets | $98,405 | $126,483 | $177,769 | $260,015 | $369,760 |
| Long-term Assets |  |  |  |  |  |
| Long-term Assets | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 |
| Accumulated Depreciation | $9,000 | $18,000 | $27,000 | $36,000 | $45,000 |
| Total Long-term Assets | $75,200 | $66,200 | $57,200 | $48,200 | $39,200 |
| Other Assets |  |  |  |  |  |
| Total Assets | $173,605 | $192,683 | $234,969 | $308,215 | $408,960 |
| Liabilities and Capital |  |  |  |  |  |
| Current Liabilities |  |  |  |  |  |
| Accounts Payable | $25,020 | $25,486 | $31,052 | $35,312 | $40,149 |
| Subtotal Current Liabilities | $25,020 | $25,486 | $31,052 | $35,312 | $40,149 |
| Long-term Liabilities | $66,671 | $57,652 | $47,883 | $37,304 | $25,846 |
| Total Liabilities | $91,692 | $83,138 | $78,935 | $72,616 | $65,996 |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
| Retained Earnings | $0 | $11,913 | $39,545 | $86,034 | $165,599 |
| Earnings | $11,913 | $27,632 | $46,489 | $79,565 | $107,365 |
| Total Capital | $81,913 | $109,545 | $156,034 | $235,599 | $342,964 |
| Total Liabilities and Capital | $173,605 | $192,683 | $234,969 | $308,215 | $408,960 |
| Net Worth | $81,913 | $109,545 | $156,034 | $235,599 | $342,964 |

36

# Sensitivity Analysis

The sensitivity analysis below assumes that revenues are 5% higher or 5% lower than the figures projected earlier in this business plan.

| Best Case Scenario (Revenue Increases by 5%) |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Revenue | $411,145 | $542,711 | $748,942 | $883,751 | $1,038,408 |
| Cost of Goods | $92,009 | $121,452 | $167,603 | $197,772 | $232,382 |
| Gross Margin | $319,136 | $421,260 | $581,338 | $685,979 | $806,026 |
| Gross Margin/Revenue | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% |
| Operating Expenses | $282,357 | $361,215 | $490,549 | $549,150 | $629,169 |
| Net Profit | $17,915 | $42,427 | $67,464 | $104,647 | $137,147 |
| Cash Flow | $97,407 | $37,874 | $65,261 | $107,328 | $131,527 |
| Cash Balance | $97,407 | $135,281 | $200,542 | $307,870 | $439,397 |
| Net Profit/Revenue | 4.36% | 7.82% | 9.01% | 11.84% | 13.21% |

| Worst Case Scenario (Revenue Decreases by 5%) |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Revenue | $371,988 | $491,025 | $677,614 | $799,584 | $939,512 |
| Cost of Goods | $83,246 | $109,885 | $151,641 | $178,936 | $210,250 |
| Gross Margin | $288,742 | $381,140 | $525,973 | $620,648 | $729,261 |
| Gross Margin/Revenue | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% |
| Operating Expenses | $282,357 | $361,215 | $490,549 | $549,150 | $629,169 |
| Net Profit | ($7,080) | $10,733 | $23,725 | $53,035 | $76,503 |
| Cash Flow | $72,412 | $6,179 | $21,522 | $55,716 | $70,883 |
| Cash Balance | $72,412 | $78,591 | $100,113 | $155,829 | $226,712 |
| Net Profit/Revenue | -1.90% | 2.19% | 3.50% | 6.63% | 8.14% |

37

# Financial Assumptions

The assumptions below provide growth rates, cash on hand, and the terms of funding based on an initial loan amount of $75,000.

| Financial Assumptions |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Growth Assumptions |  |  |  |  |  |
| Total Revenue Growth |  | 32% | 38% | 18% | 18% |
| Total Expense Growth |  | 28% | 36% | 12% | 15% |
| Personnel Assumptions |  |  |  |  |  |
| Average Salary Growth |  | 3% | 3% | 3% | 3% |
| Payroll Growth |  | 55% | 59% | 15% | 19% |
| Cash Assumptions |  |  |  |  |  |
| Months of Cash on Hand | 2 | 4 | 4 | 5 | 7 |
| Bill Payment Term (Days) | 32 | 32 | 32 | 32 | 32 |
| Loan Assumptions |  |  |  |  |  |
| LOC Loan (Interest Only) |  |  |  |  |  |
| Fixed-Rate Loan |  |  |  |  |  |
| Loan Term | 7 |  |  |  |  |
| Loan Rate | 8.0% |  |  |  |  |
| Monthly Loan Payment | $1,169 | $1,169 | $1,169 | $1,169 | $1,169 |
| Average Monthly Interest | $475 | $417 | $355 | $287 | $214 |
| Average Monthly Principle | $694 | $752 | $814 | $882 | $955 |

38

# Appendix : Year One Financials

| Year 1 Revenue Forecast |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| Total |  |  |  |  |  |  |  |  |  |  |  |  |
| Beer Flights (Four 4oz) | 415 | 691 | 830 | 1,106 | 1,244 | 1,244 | 1,244 | 1,244 | 1,383 | 1,383 | 1,521 | 1,521 |
| Pints 16oz | 553 | 922 | 1,106 | 1,475 | 1,659 | 1,659 | 1,659 | 1,659 | 1,844 | 1,844 | 2,028 | 2,028 |
| Canned Beer (6 Packs) | 277 | 461 | 553 | 737 | 830 | 830 | 830 | 830 | 922 | 922 | 1,014 | 1,014 |
| Growlers | 184 | 307 | 369 | 492 | 553 | 553 | 553 | 553 | 615 | 615 | 676 | 676 |
| Merchandise | 10 | 17 | 20 | 27 | 30 | 30 | 30 | 30 | 33 | 33 | 37 | 37 |
| Keg | 2 | 4 | 5 | 7 | 7 | 7 | 7 | 7 | 8 | 8 | 9 | 9 |
| Food | 72 | 120 | 144 | 192 | 216 | 216 | 216 | 216 | 240 | 240 | 264 | 264 |
| Price |  |  |  |  |  |  |  |  |  |  |  |  |
| Beer Flights (Four 4oz) | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 |
| Pints 16oz | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 |
| Canned Beer (6 Packs) | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 |
| Growlers | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 | $14.17 |
| Merchandise | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
| Keg | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 |
| Food | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 |
| Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
| Beer Flights (Four 4oz) | $2,904 | $4,840 | $5,807 | $7,743 | $8,711 | $8,711 | $8,711 | $8,711 | $9,679 | $9,679 | $10,647 | $10,647 |
| Pints 16oz | $2,765 | $4,609 | $5,531 | $7,375 | $8,296 | $8,296 | $8,296 | $8,296 | $9,218 | $9,218 | $10,140 | $10,140 |
| Canned Beer (6 Packs) | $2,765 | $4,609 | $5,531 | $7,375 | $8,296 | $8,296 | $8,296 | $8,296 | $9,218 | $9,218 | $10,140 | $10,140 |
| Growlers | $2,612 | $4,353 | $5,224 | $6,965 | $7,835 | $7,835 | $7,835 | $7,835 | $8,706 | $8,706 | $9,577 | $9,577 |
| Merchandise | $150 | $250 | $300 | $400 | $450 | $450 | $450 | $450 | $500 | $500 | $550 | $550 |
| Keg | $335 | $558 | $669 | $892 | $1,004 | $1,004 | $1,004 | $1,004 | $1,115 | $1,115 | $1,227 | $1,227 |
| Food | $216 | $360 | $432 | $576 | $648 | $648 | $648 | $648 | $720 | $720 | $792 | $792 |
| Total Revenue | $11,747 | $19,578 | $23,494 | $31,325 | $35,241 | $35,241 | $35,241 | $35,241 | $39,157 | $39,157 | $43,072 | $43,072 |
| Direct Cost |  |  |  |  |  |  |  |  |  |  |  |  |
| Beer Flights (Four 4oz) | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 |
| Pints 16oz | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 |
| Canned Beer (6 Packs) | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 | $3.60 |
| Growlers | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 | $3.87 |
| Merchandise | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 |
| Keg | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 | $85.00 |
| Food | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 |
| Direct Cost of Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
| Beer Flights (Four 4oz) | $249 | $415 | $498 | $664 | $747 | $747 | $747 | $747 | $830 | $830 | $913 | $913 |
| Pints 16oz | $332 | $553 | $664 | $885 | $996 | $996 | $996 | $996 | $1,106 | $1,106 | $1,217 | $1,217 |
| Canned Beer (6 Packs) | $996 | $1,659 | $1,991 | $2,655 | $2,987 | $2,987 | $2,987 | $2,987 | $3,319 | $3,319 | $3,650 | $3,650 |
| Growlers | $713 | $1,188 | $1,426 | $1,901 | $2,139 | $2,139 | $2,139 | $2,139 | $2,376 | $2,376 | $2,614 | $2,614 |
| Merchandise | $75 | $125 | $150 | $200 | $225 | $225 | $225 | $225 | $250 | $250 | $275 | $275 |
| Keg | $211 | $351 | $421 | $562 | $632 | $632 | $632 | $632 | $702 | $702 | $772 | $772 |
| Food | $54 | $90 | $108 | $144 | $162 | $162 | $162 | $162 | $180 | $180 | $198 | $198 |
| Subtotal Cost of Revenue | $2,629 | $4,381 | $5,258 | $7,010 | $7,886 | $7,886 | $7,886 | $7,886 | $8,763 | $8,763 | $9,639 | $9,639 |

39

# Appendix : Year One Financials

## Year 1 Personnel Forecast

|  | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Management Staff |  |  |  |  |  |  |  |  |  |  |  |  |
| Brewmaster | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Sales Representative | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Assistant Brewer | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Total Personnel | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 |
| Management Salaries |  |  |  |  |  |  |  |  |  |  |  |  |
| Brewmaster | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 |
| Sales Representative | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Assistant Brewer | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 | $2,333 |
| Management Staff |  |  |  |  |  |  |  |  |  |  |  |  |
| Brewmaster | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 | $2,667 |
| Sales Representative | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Assistant Brewer | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 | $4,667 |
| Total Payroll | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 |

40

## Year 1 Income Statement

|  | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | $11,747 | $19,578 | $23,494 | $31,325 | $35,241 | $35,241 | $35,241 | $35,241 | $39,157 | $39,157 | $43,072 | $43,072 |
| Subtotal Cost of Revenue | $2,629 | $4,381 | $5,258 | $7,010 | $7,886 | $7,886 | $7,886 | $7,886 | $8,763 | $8,763 | $9,639 | $9,639 |
| Total Cost of Revenue | $2,629 | $4,381 | $5,258 | $7,010 | $7,886 | $7,886 | $7,886 | $7,886 | $8,763 | $8,763 | $9,639 | $9,639 |
| Gross Margin | $9,118 | $15,197 | $18,236 | $24,315 | $27,355 | $27,355 | $27,355 | $27,355 | $30,394 | $30,394 | $33,433 | $33,433 |
| Gross Margin/Revenue | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% | 77.62% |
| Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
| Rent | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| General Insurance Liability | $175 | $175 | $175 | $175 | $175 | $175 | $175 | $175 | $175 | $175 | $175 | $175 |
| Telephone/Internet | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
| Website Hosting/Updates | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 |
| Marketing & Advertising | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Supplies | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Utilities | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Professional Services | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 |
| Travel & Fuel | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 |
| Facility Maintenance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Merchant Fees | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
| Depreciation & Amortization | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
| Payroll Taxes & Benefits | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 | $1,096 |
| Total Personnel | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 |
| Total Operating Expenses | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 | $23,530 |
| Profit Before Interest and Taxes | ($14,412) | ($8,333) | ($5,293) | $785 | $3,825 | $3,825 | $3,825 | $3,825 | $6,864 | $6,864 | $9,904 | $9,904 |
| Interest on Loan Repayment | $500 | $496 | $491 | $487 | $482 | $477 | $473 | $468 | $463 | $459 | $454 | $449 |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,984 | $1,985 |
| Net Profit | ($14,912) | ($8,828) | ($5,784) | $299 | $3,343 | $3,347 | $3,352 | $3,357 | $6,401 | $6,405 | $7,465 | $7,469 |
| Net Profit/Revenue | -126.94% | -45.09% | -24.62% | 0.95% | 9.49% | 9.50% | 9.51% | 9.52% | 16.35% | 16.36% | 17.33% | 17.34% |

41

# Appendix : Year One Financials

| Year 1 Cash Flow |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Additional Cash Received | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| Revenue | $11,747 | $19,578 | $23,494 | $31,325 | $35,241 | $35,241 | $35,241 | $35,241 | $39,157 | $39,157 | $43,072 | $43,072 |
| Proceeds from Bank Loan | $75,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Owner Contribution | $40,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Proceeds from Investor | $30,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Cash Received | $156,747 | $19,578 | $23,494 | $31,325 | $35,241 | $35,241 | $35,241 | $35,241 | $39,157 | $39,157 | $43,072 | $43,072 |
| Total Personnel | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 | $9,833 |
| Bill Payments | $0 | $16,075 | $17,823 | $18,695 | $20,443 | $21,315 | $21,310 | $21,306 | $21,301 | $22,173 | $22,168 | $25,024 |
| Additional Cash Spent |  |  |  |  |  |  |  |  |  |  |  |  |
| Investor Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Start-up Costs | $52,700 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Principal Loan Repayment | $669 | $673 | $678 | $682 | $687 | $692 | $696 | $701 | $705 | $710 | $715 | $720 |
| Purchase Inventory | $7,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Purchase Long-term Assets | $31,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Dividends Paid | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Cash Spent | $101,702 | $26,582 | $28,335 | $29,211 | $30,963 | $31,840 | $31,840 | $31,840 | $31,840 | $32,716 | $32,716 | $35,577 |
| Net Cash Flow | $55,045 | ($7,004) | ($4,841) | $2,114 | $4,278 | $3,401 | $3,401 | $3,401 | $7,317 | $6,441 | $10,356 | $7,495 |
| Cash Balance | $55,045 | $48,041 | $43,200 | $45,315 | $49,592 | $52,994 | $56,395 | $59,796 | $67,113 | $73,553 | $83,909 | $91,405 |

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## Year 1 Balance Sheet

|  | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Current Assets |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash | $55,045 | $48,041 | $43,200 | $45,315 | $49,592 | $52,994 | $56,395 | $59,796 | $67,113 | $73,553 | $83,909 | $91,405 |
| Inventory | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Total Current Assets | $62,045 | $55,041 | $50,200 | $52,315 | $56,592 | $59,994 | $63,395 | $66,796 | $74,113 | $80,553 | $90,909 | $98,405 |
| Long-term Assets |  |  |  |  |  |  |  |  |  |  |  |  |
| Long-term Assets | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 | $84,200 |
| Accumulated Depreciation | $750 | $1,500 | $2,250 | $3,000 | $3,750 | $4,500 | $5,250 | $6,000 | $6,750 | $7,500 | $8,250 | $9,000 |
| Total Long-term Assets | $83,450 | $82,700 | $81,950 | $81,200 | $80,450 | $79,700 | $78,950 | $78,200 | $77,450 | $76,700 | $75,950 | $75,200 |
| Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Assets | $145,495 | $137,741 | $132,150 | $133,515 | $137,042 | $139,694 | $142,345 | $144,996 | $151,563 | $157,253 | $166,859 | $173,605 |
| Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
| Accounts Payable | $16,075 | $17,823 | $18,695 | $20,443 | $21,315 | $21,310 | $21,306 | $21,301 | $22,173 | $22,168 | $25,024 | $25,020 |
| Subtotal Current Liabilities | $16,075 | $17,823 | $18,695 | $20,443 | $21,315 | $21,310 | $21,306 | $21,301 | $22,173 | $22,168 | $25,024 | $25,020 |
| Long-term Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
| Long-term Liabilities | $74,331 | $73,658 | $72,980 | $72,297 | $71,610 | $70,919 | $70,223 | $69,522 | $68,816 | $68,106 | $67,391 | $66,671 |
| Total Liabilities | $90,406 | $91,481 | $91,675 | $92,740 | $92,925 | $92,229 | $91,528 | $90,823 | $90,989 | $90,274 | $92,415 | $91,692 |
| Paid-in Capital |  |  |  |  |  |  |  |  |  |  |  |  |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
| Retained Earnings | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Earnings | ($14,912) | ($23,740) | ($29,524) | ($29,225) | ($25,883) | ($22,535) | ($19,183) | ($15,827) | ($9,426) | ($3,021) | $4,445 | $11,913 |
| Total Capital | $55,088 | $46,260 | $40,476 | $40,775 | $44,117 | $47,465 | $50,817 | $54,173 | $60,574 | $66,979 | $74,445 | $81,913 |
| Total Liabilities and Capital | $145,495 | $137,741 | $132,150 | $133,515 | $137,042 | $139,694 | $142,345 | $144,996 | $151,563 | $157,253 | $166,859 | $173,605 |
| Net Worth |  |  |  |  |  |  |  |  |  |  |  |  |
| Net Worth | $55,088 | $46,260 | $40,476 | $40,775 | $44,117 | $47,465 | $50,817 | $54,173 | $60,574 | $66,979 | $74,445 | $81,913 |

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

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**Attachment 6:** `debellation5_page.pdf`

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

Debellation Brewing Co. is not accepting investment.

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Craft Beer

Debellation Brewing Co.

Brewery

822 Longwood Dr

Richmond Hill, GA 31324

Get directions

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Connect with us

Debellation Brewing Co. previously received $147,300 of investment through Mainvest.

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Updates 47

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Early Investor Bonus: The investment multiple is increased to 1.5x for the next $10,000 invested.

This is a preview. It will become public when you start accepting investment.

THE PITCH

Debellation Brewing Co. is seeking investment to obtain operating capital.

BUSINESS OVERVIEW

"Like the Norse Vikings before us and in our family lineage, Debellation Brewing Co wants to leave its mark on the world with our beers. Discovering new styles and flavors of beer that people truly enjoy is what we strive to accomplish." Debellation Brewing Co will be the only craft beer brewery based in the city of Richmond Hill, Georgia with no other brewery within a 20 minute drive. We are situated in full view of Interstate 95 off exit 90 where millions of cars drive by every month. Come drink beer worthy of the Gods! SKOL!

Debellation Brewing Co. will be the only craft beer brewery based in the city of Richmond Hill, Georgia. The Company specializes in producing delicious new-styled Craft Beer. Debellation Brewing is offering a range of craft beers with twelve unique flavors that are in demand among consumers. The Company's management is extensively experienced with expert craft beer making knowledge, understanding consumer preferences and working with a particular goal to satisfy their customers by introducing innovative flavors in the Craft beer industry.

Like the Norse Vikings before us and in our family lineage, Debellation Brewing wants to leave its mark on the world with our beers. Discovering new styles and flavors of beer that people truly enjoy is what we strive to accomplish.

Why Debellation Brewing Co?

No local brewery in the city of Richmond Hill or anywhere within a 30-minute drive

Extremely experienced owners with proven experience of over five years. Their prior knowledge of restaurant ownership is also an asset when they bought a struggling 1100sf Irish Pub in 2016 with $220k in annual gross revenue and transformed it into a 4000 square feet Irish pub with roughly $1.4 million in annual gross revenue by 2019. This additional local business will also allow Debellation Brewing Co. to take benefit of their built-in customer base right from the start, an advantage over many other brewery start-ups.

The community of loyal customers is desperately waiting for the launch of Debellation Brewing

Debellation Brewing Co strongly believes in unique flavor combinations and aims to introduce unique products to exceed the expectations of beer consumers.

Prime Location with several hotels, motels and gas stations in the immediate vicinity.

Business Model: Debellation Brewing Co. will be operating as a wholesaler and retailer both. The Company's activities will involve the following:

Production: As a producer of top-notch craft beers, Debellation Brewing Co. will work with external suppliers to buy quality raw material to produce premium craft beers.

Distribution: The Company anticipates that 90% of its sales will occur through a retail location with sales of craft beer, growlers, canned beer and merchandise. The remaining 10% will be the distribution of kegs to retail locations. These numbers will undoubtedly change as the production brewery expands in the future.

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

In addition to that, Debellation Brewing Co. aims to generate strong demand through exceptional marketing strategies and through the introduction of unique products in the industry.

Phases:

Phase I: Debellation Brewing Company will initially start operations as a small microbrewery that will have a three-barrel brewhouse with an average of 500-700 barrels a year produced. It will sell beer flights to its guests, pints, growlers and growler fills, cans of beer to purchase for home consumption and merchandise for gifts or souvenirs.

Phase II: In the second phase, Debellation Brewing will expand into a 7-10 barrel brewhouse utilizing open space adjacent to it within 3-5 years.

LAYOUT

Previous

Next

INTENDED USE OF FUNDS

We previously received funding which took care of the buildout and cash flow through early March. Due to some delays by contractors and inspections, our opening date is pushed to the end of March to early April. We only await our state license in order to brew which should be in next couple of weeks. Need additional funding to pay employees, leases, utilities and 2nd beer batch order. Grand opening expected by end of March to early April due to delays in licensing and inspections.

Inspections passed

Payroll on hold due to delays

City alcohol license secured

Previous

Next

THE TEAM

David Goodell

CEO and Brewer

Mr. Goodell is a retired Army Commissioned Officer turned brewer and has experience-based knowledge; he has always been a self-motivator and accomplished every goal he set out to pursue throughout his career. His professional interests focus on building a successful business through the production of high-quality craft beer, where he has over six years of hands-on experience. Mr. Goodell has won back to back 1st place awards in the annual Domras Cup Beer Homebrewers Beer Competition for 2019 and 2020. His knowledge of brewing, restaurant ownership, marketing, I.T. and military leadership experience allow him to be successful at any business he chooses to run and operate.

Teresa Goodell

General Manager

Mrs. Goodell is the General Manager of Debellation Brewing Co. Teresa is also a military Veteran! She is a highly motivated individual who excels at whatever she does. She has been preparing and researching for this venture for the past few years co-running their prior restaurant, learning HR, staffing and payroll. Her strategic planning and execution make her well suited to lead the Company as 2nd in command!

Updates

Investor Exclusive

OCTOBER 23RD, 2022

Q3 2022 report

Hello!

This 3Q for 2022 was slightly less than 2Q and we can confidently say that this was in large part due to the economy. Our Harvest Host RV guests dropped off during Q2 and Q3 due to gas prices and the heat. Each of those guests contribute an average of $40 and that was a large chunk of revenue we did not receive. However, it's cooler now and gas prices are lowering so our RV numbers are trending back up as those in the north migrate down to the south. Despite that, we managed to nearly match the 4Q 2021 gross sales in 3Q 2022 which says alot about our success. During the worst economic time of the year in this uncertain economy, the support for Debellation Brewing by locals stayed strong. We estimate nearly $570,000 - $600,000 in gross sales by the end of 2022. Given our last 3 Q's numbers, we are about $430k. If we can manage to eek out $50k in the last 3 months of 2022, we will be close to our goal! If you recall when we were doing our capital raises here on Mainwest, in our business plan posted up, we forecasted a year 2 gross sales of $516k and we will certainly beat that! are certainly on track to exceed that by $60k-$80k! We wish to again thank you all for your trust and support with your investment. On a final note, we have been catching up the perks owed to some of you and hope to finalize that in 60 days. We really do appreciate the patience in this. After our loss of the head brewer, I took that role on in addition to many others so I fell behind on some tasks. The recent hiring of my sister Christine as our admin manager is helping us tie up the loose ends. She has certainly been a valuable asset to our team and we love having her with us! Additionally, we have recently partnered with South Magazine for

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Invest in Debellation Brewing Co | Brewery in Richmond Hill, GA

additional exposure and hope this helps us reach a bigger audience. We also were voted for the 2nd time one of the best breweries in the South and had the #2 bartender! This says alot when we are a brewery and the other contenders were actual bars and restaurants! Our brewery was the only one that made the cut! See the link below for more on that! Until next time, Skal!

https://www.southmag.com/debellation-brewing-co-richmond-hill-ga/

https://www.southmag.com/and-the-meat-grinder-goes-to/

More is posted to our website! Enjoy and thank you for supporting us!

Dave Goodell

Investor Exclusive
APRIL 8TH, 2022
ONE YEAR!

Wow! What a year! First, let's discuss what has been the issues. Perks. These have been slow to get out because in November we lost Dave Greene our head brewer due to Crohn's disease. He reluctantly stepped down and we understood why and we hope he can manage that and get back into the brewing industry. But don't fear, the owner Dave knows how to brew as well and has been doing a terrific job in Greene's absence. That was our second issue. Being a one-man operation isn't easy and involves 7 days a week with no days off constantly brewing, marketing, payables/receivables, payroll and so much more. Other than that, the brewery has been barreling forward which brings us to the good stuff. Each quarter has been better than the previous one since opening. March 2022 set a new record of gross sales of over $65k! That's twice the average of the first few months in 2021. When we set gross sales projections for the first year, we anticipated roughly $390k in gross sales. From April 8th 2021, to today one year later, we grossed approximately $509k! WOW! We are looking to exceed that for the next year to over $600k. We are now looking to purchase 1 or two additional fermenters to increase our production and that should get us to our goal. the 1st QTR of 2022 will be submitted to Mainvest soon so watch for it! Tomorrow, we are finally getting our wood flooring installed, further enhancing our taproom to an ever more gorgeous place to enjoy our ales. Another thing for all of us here to be proud of is our recent rankings in Georgia. Of the 8 breweries in the Savannah area, we were #2! Quite an accomplishment having only been open under a year! They also ranked us #55 of all breweries in the state of Georgia of the 157 now operating. What a great place to be! Better than 2/3rds of all breweries! That said, we are hoping to take home some beer awards this year to further our accomplishments and get us raked even higher and increase traffic to our wonderful brewery. All of this could not have happened without YOU. You trusted your investment with us and we made sure to make good on that. We want you to be proud of this investment and hope you will consider it again in the future should we need it. Again, thanks for trusting us and hanging in there with perks. We haven't forgotten and will make sure those get done ASAP. If you are in the area this weekend, swing by and visit us!

https://brewerystars.com/savannah-georgia-brewery-rankings/?fbclid=IwAR2VzPEiXEidzISvEMhFn43Zl_w6ap7mKznl6pb-WnH_M9wkd12jm1NVuhQ

NOVEMBER 7TH, 2021
Best of Georgia Nominee!

One of our amazing guests apparently nominated us for Best of Georgia Breweries, so if you agree, please click link below and VOTE FOR US! Let's get the WIN! A win will get us more publicity, guests and ultimately, more revenue that is passed on to YOU, our awesome investors! Thanks for your support!

https://www.gbj.com/best-of/vote/food-drink

Investor Exclusive
OCTOBER 18TH, 2021
Thanks for all your support!

Hello!

We had another good quarter! A few things to report are as follows:

1st, we have recently partnered with Harvest Host which allows RV's and travel trailers to stay overnight with us. Having an average of 4-5 each night generates about $30 in revenue for each of them daily with zero cost to us as a brewery. This is great for our bottom line and gets us exposed to tens of thousands of other members in their app and website! They started staying here in September and we had 75 stays. We have already reached that for October! Definitely staying busy here!

2nd, we are gathering up the remainder of perks for those who have not received theirs yet. We really appreciate it as we only have 3 people working here, brewing, bartending and doing everything generally. So we have been crazy busy. But we have recently hired an additional bartender so we look to catch up perks very soon.

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

3rd, in the new edition of the prestigious South magazine, readers have voted us one of the top breweries in the Southeast! That is HUGE for us and an honor to be featured in that magazine. Check it out in link below and you can order a copy from them too. https://www.southmag.com/bar-crawl-2021/

Finally, thanks for believing in us! We are doing well and hope we are making you proud (and some ROI!).

Skal!

The staff at Debellation Brewing!

Investor Exclusive

JULY 6TH, 2021

Hello everyone! Update!

First I want to say thank you all for believing in us! We finally were able to officially open in April on the 9th and have been trucking ever since. We did experience a few hiccups along the way but we were able to adjust and conquer them! One was running out of beer on day 12! The good side was we sold nearly everything we made which was 14BBLs (28 kegs) of beer! The downside was not being able to brew to replace it because our supplier got us our grains 8 days late. Add to that the time it takes to get beer from grain to glass and we were sitting on our hands selling beer without backups. However, we caught up quickly and the demand never stopped.

Over the 3 months in Q2, our sales steadily increased as we had hoped but not quite where we want to be. The main reason was lack of food trucks. Not that there aren't any, but because the city of Richmond Hill requires any food truck doing business in the city to have a food permit and inspection from DPH. When we opened, there was only 1 locally permitted food truck. Now we have a few more. And more are applying. When food trucks are scheduled which has been sporadic since Savannah gobbles them up, our sales skyrocket as you might guess. That said, we now have a taco truck every Thursday and working on more to fill the other days. It's just a matter of getting the trucks inspected and paperwork done. It'll get there. When we do not have food trucks, we do have some limited food to hold people over like pulled pork sandwiches, brats, dogs, nachos and a couple other things. Food is key at breweries if you want people to stay and spend more. We are confident that we will see a dramatic increase in sales directly related to the increase of food trucks. The other great thing as investors are concerned is that it costs us ZERO to have them here. So sales increase at no cost to us. We just keep the beer flowing. With this in mind, we should soon see regular monthly increases of gross sales grossing $40k+, which keeps us on target with our business plan forecasts.

Switching gears, the perks have been a little slow in getting out to you and we apologize. This is because of the unexpected costs along the way during and after buildout. Things like costly cooler issues requiring HVAC repairs, added electrical installs to facilitate the new keg washer, and AC issues plaguing our taproom during the heat. However, we now have those issues worked out. Each week, we get more streamlined and smoother, which equates to increased profits and a very bright future. We have been putting out new beers every week just to keep up with the demand but that's a good thing. If you check us out on Untappd, you will see all of the beers that have been listed. But we digress. The perks should start rolling out soon as we get caught up on volume and accounts payables. We appreciate everyone's patience and thank you for your trust in us!

Finally, looking forward, we hope to acquire 2 more fermenters to increase volume for local distribution and increased volume in the taproom. We are filling all 4 of ours as fast as they are emptying! We will also be installing a small 2BBL system for sours in the coming months. That's another reason to get 2 more fermenters. Smaller 3BBL FV's shouldn't cost that much and won't require a loan or investment. Our cash flow by summer's end should allow us that purchase but we will update you when we know we can. For now, we are just brewing like crazy and are entering 2 beers into the Great American Beer Festival which is the gold standard for breweries to want to win awards at. Winners will be announced in September. Wish us luck!

We will be uploading our docs and numbers this week and we know you will be pleased thus far! Again, thanks so much for believing in us and we won't let you down!

From Dave the owner, his wife Teresa, Dave the Head Brewer, and beertender Loki Lee, we thank you all and hope to meet everyone of you at least once!

Skal!

Dave Goodell

Investor Exclusive

APRIL 16TH, 2021

Ribbon cutting!

The Richmond Hill-Bryan County Chamber of Commerce invites you to attend the Grand Opening and Ribbon Cutting Ceremony for Debellation Brewing on Friday April 16, 2021 at 4:00 p.m. The Ribbon Cutting will take place at Debellation Brewing located at 822 Longwood Dr, Richmond Hill, GA.

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Invest in Debellation Brewing Co | Brewery in Richmond Hill, GA

Chamber members and their guests are invited to enjoy an evening of congratulating

Debellation Brewing on their Grand Opening and Welcoming them to the RHBC Chamber.

"Debellation Brewing is about to open with wonderful, crafted beer in the Low Country, based in Historic Richmond Hill, Georgia. The founders of Debellation Brewing Company are both military veterans, who will always honor the men and women of our military, police, fire departments, and first responders. Why a Viking Theme? The founders trace their name and lineage back to Norway by way of England and Ireland. Like the Norse Vikings before us in our family lineage, Debellation Brewing Company wants to leave its mark on the world with our beers.

Discovering new styles and flavors of beer using locally sourced ingredients when possible, to craft a delicious beer that people truly enjoy, is what we strive to accomplish. When you stop by, Raise your glass, pronounced Say "skål!" (pronounced "skoal") with gusto. The word skål itself has origins made misty over time. Some claim that the term has a root in the skulls of the vanquished, from which Viking warriors would drink to celebrate their victory. But this grisly story, is surrounded in myth with little facts. Historians believe it actually means "CHEERS!"

Debellation Brewing Company is located right off Interstate I-95 at Exit 90 at 822 Longwood Drive in Richmond Hill. Stop by, make our acquaintance and enjoy our craft. We would love to meet you."

Investor Exclusive

APRIL 12TH, 2021

FINALLY OPEN!

We are now OPEN DAILY at noon! Our initial opening last weekend was a HUGE success! If you are in the area or will be, come enjoy some great locally crafted beer and play while you're at it! We have cornhole, foosball, darts, ping pong and even board games! Nintendo and old school video games coming soon!

http://facebook.com/debellationbrewing

APRIL 6TH, 2021

VIP event

Hello!

We have emailed out everyone yesterday but if you did not get it, check your spam box. The email contained the below info:

We finally have our VIP event for shareholders, sponsors and investors scheduled for this Thursday from 5-9pm! There will be live music from Seldom Sober, an Irish duo, as well as food catered for you to enjoy on us and some free tastings of our beer before the general public gets to try it. Additionally, you will be able to pick up your perks while you are here. Most everything is in to give to you but some are still being worked such as the pressurized growlers. The hats, tees, glass growlers and 90% of the skull mugs are completed. If you have a level that gets the bar stool, those are also not quite ready and we hope to get our wall of Vahalla back by then to hang in the brewery. In any case, if there are items not given or ready, we will have that list working and will notify you when completed. For those who live outside this area or in other states, we will be shipping your perks to you soon. If you cannot attend but will be swinging by later, we can hold your perks here until you are ready to pick them up. Therefore, please reply with RSVP for this Thursday by Wednesday at 5pm. This event is closed to the public and you may bring a +1. It will be catered as well.

Otherwise, we will be having a grand opening on Friday, April 9th starting at 4PM. The City of Richmond Hill & Chamber of Commerce will do the ribbon cutting at 4PM and at 6PM, ROCK 106.1 will arrive to do their LIVE broadcasting here followed by live music by the rockabilly band Crooked Pointer from 7-11p with cornhole and other events occurring throughout the evening. We hope to see you at one or both events but that said, WE ARE FINALLY OPENING!

APRIL 3RD, 2021

Opening next week!

Getting closer to opening which will be next week! On Monday we will update with details on the opening and the VIP event. All of you here who are investors are invited to the VIP opening which will be on Thursday from 5:00 to 8:00 but closed to the public. That night will be just for you so you can come in try the beers before everyone else, pick up your perks and hang out and get to know other investors and sponsors. There will be food and live music as well. Look forward to all the details in an email forthcoming later this weekend! We appreciate everyone who has helped us get to the finish line!

MARCH 31ST, 2021

So shiny...

Floors are almost done! So shiny!

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

MARCH 30TH, 2021

Kegging this week- prep for opening

This week we are kegging 14 BBLs of delicious beer in preparation for opening potentially on April 8-9. Although we still have some decor and loose ends to tie up, we should be ready by then. We will announce the official date later this week. This means that all of you investors will have a private event the day prior to receive your perks, check out the digs and sample some beer before the general public gets to! We really appreciate all who have helped us get this far! That said, this final small round will be closing in a little over a week so we hope to reach our goal and get some much needed funds for our next beer batches, payroll (we are working without pay) and to prepare for opening. The delays caused by red tape and bureaucracy stretched us really thin. Should have opened in early March but here we are. In any case, the opening day will be soon and hope to see all of you there or soon after! For those out of the area, we will be shipping your perks to you unless you are picking up. See you soon!

Skal!

MARCH 23RD, 2021

All fermenters are now full!

We have all fermenters filled! This means we will have 7 beers to offer at our grand opening! But we need your help to get us there! This is our last round for a long time, if we ever do one again. Perhaps with our growth we may consider another to help us grow bigger in the future. Our target is $10k. Our cash flow is critical due to unexpected delays of licensing and inspections. With your help, we can resume payroll, pay upcoming rent and utilities and order next batches ingredients! Thanks to everyone who has invested already!

MARCH 18TH, 2021

We are brewing!!!!

Our first beer is mashed in! It is a Viking recipe called Sahti. Sahti is recognized as one of the oldest continually brewed beer styles in the world. It is an unfiltered, unpasteurized, top fermented beer with a cloudy disposition; brewed with additions of juniper berries and branches. In the 1930's, a sunken Viking ship was discovered off the coast of Norway. In the ship were wooden barrels of a 9th century design, thought to have contained Sahti. This find seems to corroborate earlier barrel remains and Sahti residue found on a Viking burial ship at Oseburg, Norway in 1904. Over the next several days, we will have all the beers into the fermenters! Perfect day to start! 🐟

SK6L!

MARCH 10TH, 2021

Waiting to brew!

We have passed our inspections and are now waiting for our state license to be able to brew and that should be shortly. We have already received our city license. In the meanwhile we are tidying up and getting The tap room ready in preparation for opening sometime at the end of March or early April.

FEBRUARY 21ST, 2021

Today's FB Livestream Update!

Updates on the brewery and Q&A today at 4PM for anyone with questions! Will Live stream, field your questions and and show you in real time what the brewery currently looks like.

https://www.facebook.com/events/962788774254977

FEBRUARY 21ST, 2021

Check out our mural in progress!

Dean Deck has been working on this custom mural we wanted as a backdrop for our brewery! Wow!

FEBRUARY 19TH, 2021

Final inspection passed!

Final city inspection passed! Big thanks to Norwood Construction Savannah Electric & Construction, Platinum Concrete, Atlantic Coastal Equipment, LLC., Grove River Machinery, Jay and his plumbers, City Of Richmond Hill, Rich McGuire (HVAC), and all those individuals who have come in to assist with the build! What happens now? We still need approval from the GA ATF and GA Dept of Agriculture which should be soon. Then we brew beer! Meantime, we are still working on the inside and outside decor in preparation for the opening in March. Details on the opening will come soon!

FEBRUARY 16TH, 2021

Brewhouse installed!

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

The fermenters and kettles have been moved into place! This week we will be setting it up for testing. Almost there!

FEBRUARY 13TH, 2021

Update on brewery!

On February 14th at 4PM, we will host a livestream for everyone to catch up on current state of the brewery! Join us!

https://www.facebook.com/events/148810136976910

FEBRUARY 6TH, 2021

Next Update Livestream!

Updates on the brewery and Q&A for anyone with questions! Will Livestream, field your questions and and show you in real time what the brewery currently looks like. Join us at 4PM EST!

https://www.facebook.com/events/157894485987066

FEBRUARY 4TH, 2021

Perks!

Did you know you get some really awesome perks when you invest with us? Probably the best perks you ever received from an investment here ion Mainvest. To see them all, see our website! If you have already invested but not given us the info for your shirts, hats and engravings, please email us at debellationbrewing@gmail.com. Your investment corresponds with the levels you see there. You can also invest more and we will combine them into one. If you are on the fence and watching, whatcha waiting for? Join our family of Vikings!

SKOL!

http://debellationbrewing.com/join

FEBRUARY 3RD, 2021

More updates

We got the sheetrock people in there now doing the sheetrock since the electrical was pretty much wrapped up and hopefully next week we're going to do our final inspection

FEBRUARY 1ST, 2021

More updates!

Final electrical inspection will be Wednesday and today the parking lot is almost finished. Tomorrow they stripe it. Drywall will be done by week's end too. It's all coming together now...

JANUARY 25TH, 2021

Update!

All electrical will be completed within about 3 days and ready for inspection. The parking lot is being resurfaced and expanded as we speak and will also be ready by Thursday. We have some minor plumbing to be finished at the bar later this week and the AC systems for the cooler and glycol machine will be finished by the weekend. Lots of stuff happening as we are nearing completion of Richmond Hill's first and only brewery! More updates will be posted this week with pics! With that being said, we will be submitting more more small round of investment for those who would like to add to their existing investments or those who have been watching us. A HUGE THANKS to those who have the trust and backing of our brewery. We really appreciate all the love and support from all over the country! For those who have invested, your perks are almost ready! Watch for that email soon on the private event for that with tastings! For those farther out, we will be shipping your stuff to you! Please email us if you have not received the email on that. Email is debellationbrewing@gmail.com or see our website and social media.

JANUARY 15TH, 2021

Livestream update this Sunday!

Updates on the brewery and Q&A for anyone with questions! Will Live stream, field your questions and and show you in real time what the brewery currently looks like.

https://www.facebook.com/events/421212025787554

https://mainvest.com/bidebellation-brewing-co-richmond-hill

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

JANUARY 5TH, 2021

Moving faster now!

Bar is built (minus finished top slab) brewery separation wall done (waiting for glass and drywall) and bathrooms are underway. Paint for ceiling is tomorrow and electric soon after. Getting closer to opening!

JANUARY 2ND, 2021

Livestream Brewery Update!

This Sunday at 3pm, join us for a livestream as we give you updates on the progress of the build and other tidbits!

https://www.facebook.com/events/161720591971706

DECEMBER 28TH, 2020

Like perks?

If you are considering investing, please know we have the best perks you'll ever get with any investment! To see what perks you get, see our link below and the perks correspond to your investment! Cool stuff!

https://www.debellationbrewing.com/join

DECEMBER 27TH, 2020

Plumbing inspection done

Plumbing completed and passed inspection. Tomorrow we pour concrete back into plumbing cuts and prepare for electrical and bathroom renovations.

DECEMBER 16TH, 2020

Next livestream update Dec 20th

Updates on the brewery and Q&A for anyone with questions! Will Live stream, field your questions and and show you in real time what the brewery currently looks like.

JOIN US!

https://www.facebook.com/events/144658637411189

DECEMBER 1ST, 2020

Next Livestream update Dec 6th 3PM

Updates on the brewery and Q&A for anyone with questions! Will Live stream, field your questions and and show you in real time what the brewery currently looks like. Click link below for event details on Facebook.

https://www.facebook.com/events/784124359114715/

NOVEMBER 26TH, 2020

Happy Thanksgiving!

May your feast, family and friends be plentiful! Hope everyone is having a great holiday. Keep those deployed, on call and working elsewhere in your prayers if they are away from you.

NOVEMBER 11TH, 2020

Happy Veterans Day!

Just wanted to say Happy Veterans Day to all of you who had the courage and strength to raise that right hand, swearing the oath to defend this great nation. And let us not forget those who made the ultimate sacrifice in doing so. Honor and cherish them always. Reach out to a lonely veteran and let them know how much we appreciate them. From this veteran to you and yours...thank you.

NOVEMBER 10TH, 2020

Correction

Today was supposedly the last day but in fact you have until Wednesday Nov 11th to invest with us. The perks associated with your investment are also still in play.

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NOVEMBER 9TH, 2020

Last day!

Tuesday November 10th is the last day you can get in on this great investment with perks you won't find on any other business on Mainvest! Just take a look at our website for the perks that go along with your investment! Add to your current investment, or get a friend to join you!
http://debellationbrewing.com/join

NOVEMBER 9TH, 2020

Goal reached!

Thanks to all of you who have chipped in to get us to our minimum of $50k! You still have until tomorrow to add to your investment or share with anyone else who wants to invest! Watch for updates later this week for our livestream!

NOVEMBER 5TH, 2020

6 days left!

We are nearing the end of our offering and if you have been wanting to add more or have been just watching, now is the time! Help this veteran owned and operated brewery get to its goal! We have a couple of larger investors getting ready to chip in so get in on this 1.8X ROI while you still can! a HUGE thanks to each and every one of you who has already trusted us with your money. It's going to pay off nicely for all of us! SKOL!

~Dave and Teresa

NOVEMBER 4TH, 2020

Q&A with DBCO tonight at 6PM!

Tonight is another brewery update livestreamed from our FB page! Watch it to see what's up with us so far! Updates on the brewery and Q&A for anyone with questions! Will Live stream and field your questions about the brewery, our plans going forward, investments and show you in real time what the brewery currently looks like. Starts at 6PM! Join us!

https://www.facebook.com/events/681618516117347/

OCTOBER 30TH, 2020

Brewhouse has arrived!

Big thanks to Adam, Freddie, Brian P, Brian R, Eric and Teresa for all the help with the unloading of the brewery equipment from the truck! Also special thanks to Grove River Machinery down the street for providing the forklift (thanks Marisa!).

OCTOBER 28TH, 2020

ZOOM meeting tonight

anyone attending the ZOOM video tonight at 6PM, link below:

https://us05web.zoom.us/j/86254076392?pwd=TkRLME1aZIV0Tzlpell4OEk1aU44QT09

meeting ID: 862 5407 6392

passcode is skol!

If you do not have the app installed, please do that prior to the meeting. We will discuss the brewery status, show the brewery as it is now and more. Link is also posted on our website and FB page.

OCTOBER 27TH, 2020

Q&A with Debellation Brewing!

Update and view of the brewery before we get started. Will Live stream and field your questions about the brewery, our plans going forward with status updates, remaining investment opportunities and we will show you in real time what the brewery currently looks like. Then we will update the progress as we move forward weekly. Starts tonight on our FB page and for those not on social media, we will have a ZOOM call later this week! For those on FB, see link below for the event tonight! Hope to see you in the livestream!

https://mainvest.com/bdebellation-brewing-co-richmond-hill

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

https://www.facebook.com/events/649655262419855/

SEPTEMBER 28TH, 2020

Final floor plan layout

Architectural drawings completed! Now we will have our contractors pull some permits! Big thanks to Barnard Architects and Blackburn Electrical Engineering! Ready to get building this thing! To see the layout, check out our link below.

https://www.debellationbrewing.com/thats-whats-up/2020/9/25/plans-update

SEPTEMBER 25TH, 2020

Plans update

Our building plans are completed and we are reviewing them over the weekend. Pending changes, we will forward them on to our contractors and pull permits to build! Progress!

SEPTEMBER 11TH, 2020

Architect update

Just wanted to give a shout out to Barnard Architects who are doing our brewery plans along with Blackburn Electrical Engineering. They did our drawings for the last location and will now be revising for our new location. Looking forward to showing you all their professionalism all drawn up! Will post up when we are ready! Once those are done, our contractor will pull permits and the build begins! So pumped!

SEPTEMBER 4TH, 2020

Norwood Construction is our contractor!

Big shout out to Norwood Construction! They are doing the build in our brewery! Once our architect has finished the updated plans, they are pulling our permits and then we are rolling! Looking forward to their expediency to get us up and brewing! Updates to follow!

Skol!

SEPTEMBER 2ND, 2020

Perks!

Did you know you get some really awesome perks when you invest with us? Probably the best perks you ever received from an investment. To see them all, see our website! Join our family of Vikings!

SKOL!

http://debellationbrewing.com/join

SEPTEMBER 2ND, 2020

Lease is SECURED!

We have secured the lease for our building today and now have keys! Norwood Construction will be handling our build once the architect is done with our plans. Looking forward to sharing the drawings with all of you soon! Should be in 2-3 weeks. SKOL!

This is a preview. It will become public when you start accepting investment.

Data Room

Intended Use of Funds

Target Raise

Maximum Raise

Build out of upper deck $9,112

Electrical parts and labor $4,950

Misc build out (furniture, Tv's, etc) $1,000

Fermentation tank $8,250

Mainvest Compensation $1,688

Total $25,000

Financial Forecasts

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales $567,000 $781,893 $923,416 $1,090,486 $1,280,868

Cost of Goods Sold $88,000 $116,000 $159,000 $189,000 $221,000

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

Gross Profit $479,000 $665,893 $764,416 $901,486 $1,059,868

# EXPENSES

Operating Expenses $282,000 $361,000 $491,000 $549,000 $629,000

Operating Profit $197,000 $304,893 $273,416 $352,486 $430,868

This information is provided by Debellation Brewing Co.. Mainvest never predicts or projects performance, and has not reviewed or audited this financial forecast. Please see below for additional risk disclosures.

# Documents

Investor Agreement

2021 Balance Sheet

2021 Income Statement

2022 Balance Sheet

2022 Income Statement

stats-report 2022.pdf

Debellation Bus Plan.pdf

Investment Round Status

Target Raise $25,000

Maximum Raise $35,000

Amount Invested $0

Investors 0

Investment Round Ends May 25th, 2022

Summary of Terms

Legal Business Name DEBELLATION BREWING CO.

Investment Structure Revenue Sharing Note

Early Investor Bonus

Investment multiple for the first $10,000 invested

1.5x

Investment Multiple 1.2x

Business's Revenue Share 0.7%-1%

Minimum Investment Amount $100

Repayment Schedule Quarterly

Securitization None

Maturity Date December 31st, 2028

Financial Condition

Forecasted milestones

Debellation Brewing Co. forecasts the following milestones:

Achieve $391k revenue in first 12 months. We did that and surpassed our first year projections by $117,924 in our first 12 months of operation during the pandemic.

Achieve $516,868 in 2022. We surpassed that goal by $52,866 despite the economy.

Historical financial performance is not necessarily predictive of future performance.

# Other challenges

Debellation Brewing Co. has had the following other challenges that are not otherwise captured in the Financial Condition Section, the Risks Section, or the Financial Statements:

Glycol Chiller failed in late 2022 causing us to purchase another bigger chiller. However, this provides capacity for future expansion with more fermentation vessels.

Continued glycol chiller issues in 2022 slowed down beer production

We are at taproom capacity and in order to sell more beer, we are building an upper deck/loft and later in 2023, an enclosed patio to serve even more guests.

With only 4 fermentation tanks, we are brewing at capacity. More tanks will be purchased to increase volume in 2023.

# Risk Factors

You Might Lose Your Money

https://mainvest.com/bdebellation-brewing-co-richmond-hill

11/41

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

When you buy a certificate of deposit from a bank, the Federal government (through the FDIC) guarantees you will get your money back. Buying a Note is not like that at all. The ability of Debellation Brewing Co. to make the payments you expect, and ultimately to give you your money back, depends on a number of factors, including many beyond our control.

Limited Services

Debellation Brewing Co. operates with a very limited scope, offering only particular services to potential clients, making them vulnerable to changes in customer preferences.

Lack of Accounting Controls

Larger companies typically have in place strict accounting controls. Smaller companies typically lack these controls, exposing themselves to additional risk.

Competition

The market in which we operate is highly competitive and could become increasingly competitive with new entrants in the market. Debellation Brewing Co. competes with many other businesses, both large and small, on the basis of quality, price, location, and customer experience. Changes in customer preference away from Debellation Brewing Co.'s core business or the inability to compete successfully against the with other competitors could negatively affect Debellation Brewing Co.'s financial performance.

Reliance on Management

As a securities holder, you will not be able to participate in Debellation Brewing Co.'s management or vote on and/or influence any managerial decisions regarding Debellation Brewing Co.. Furthermore, if the founders or other key personnel of Debellation Brewing Co. were to leave Debellation Brewing Co. or become unable to work, Debellation Brewing Co. (and your investment) could suffer substantially.

Financial Forecasts Risks

The financial forecasts provided by us herein are reasonable forecasts by us based upon assumption of stable economic conditions and other various assumptions regarding operations. The validity and accuracy of these assumptions will depend in large part on future events over which Debellation Brewing Co. and the key persons will have no control. Changes in assumptions or their underlying facts could significantly affect the forecasts. To the extent that the assumed events do not occur, the outcome may vary significantly from the projected outcomes. Consequently, there can be no assurance that the actual operating results will correspond to the forecasts provided herein. Additionally, Debellation Brewing Co. is a newly established entity and therefore has no operating history from which forecasts could be projected with.

Inability to Sell Your Investment

The law prohibits you from selling your securities (except in certain very limited circumstances) for 12 months after you acquire them. Even after that one-year period, a host of Federal and State securities laws may limit or restrict your ability to sell your securities. Even if you are permitted to sell, you will likely have difficulty finding a buyer because there will be no established market. Given these factors, you should be prepared to hold your investment for its full term.

The Company Might Need More Capital

Debellation Brewing Co. might need to raise more capital in the future to fund/expand operations, buy property and equipment, hire new team members, market its services, pay overhead and general administrative expenses, or a variety of other reasons. There is no assurance that additional capital will be available when needed, or that it will be available on terms that are not adverse to your interests as an investor. If Debellation Brewing Co. is unable to obtain additional funding when needed, it could be forced to delay its business plan or even cease operations altogether.

Changes in Economic Conditions Could Hurt Debellation Brewing Co.

Factors like global or national economic recessions, changes in interest rates, changes in credit markets, changes in capital market conditions, declining employment, changes in real estate values, changes in tax policy, changes in political conditions, and wars and other crises, among other factors are unpredictable and could negatively affect Debellation Brewing Co.'s financial performance or ability to continue to operate. In the event Debellation Brewing Co. ceases operations due to the foregoing factors, it can not guarantee that it will be able to resume operations or generate revenue in the future.

No Registration Under Securities Laws

The Notes will not be registered with the SEC or the securities regulator of any State. Hence, neither Debellation Brewing Co. nor the Notes will be subject to the same degree of regulation and scrutiny as if they were registered.

https://mainvest.com/bdebellation-brewing-co-richmond-hill

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Invest in Debellation Brewing Co. | Brewery in Richmond Hill, GA

## Incomplete Offering Information

Title III does not require us to provide you with all the information that would be required in some other kinds of securities offerings, such as a public offering of shares (for example, publicly-traded firms must generally provide investors with quarterly and annual financial statements that have been audited by an independent accounting firm). Although Title III does require extensive information, it is possible that you would make a different decision if you had more information.

## Lack of Ongoing Information

Debellation Brewing Co. will be required to provide some information to investors for at least 12 months following the offering. However, this information is far more limited than the information that would be required of a publicly-reporting company; and Debellation Brewing Co. is allowed to stop providing annual information in certain circumstances.

## Uninsured Losses

Although Debellation Brewing Co. will carry some insurance, Debellation Brewing Co. may not carry enough insurance to protect against all risks to the business. Additionally, there are some kinds of risks that are very difficult or impossible to insure against, at least at a reasonable cost. Therefore, Debellation Brewing Co. could incur an uninsured loss that could damage its business.

## Changes in Laws

Changes in laws or regulations, including but not limited to zoning laws, environmental laws, tax laws, consumer protection laws, securities laws, antitrust laws, and health care laws, could negatively affect Debellation Brewing Co.'s financial performance or ability to continue to operate. Specifically, any additional regulation on the industry could significantly negatively affect the business.

## Conflict of Interest With Companies and Their Management

In many ways, your interests and the interests of Debellation Brewing Co.'s management will coincide: you both want Debellation Brewing Co. to be as successful as possible. However, your interests might be in conflict in other important areas, including these: You might want Debellation Brewing Co. to act conservatively to make sure they are best equipped to repay the Note obligations, while Debellation Brewing Co. might prefer to spend aggressively to invest in the business. You would like to keep the compensation of managers low, while managers want to make as much as they can.

## Future Investors Might Have Superior Rights

If Debellation Brewing Co. needs more capital in the future and takes on additional debt or other sources of financing, the new investors might have rights superior to yours. For example, they might have the right to be paid before you are, to receive larger distributions, to have a greater voice in management, or otherwise.

## The Company is Not Subject to the Corporate Governance Requirements of the National Securities Exchanges

Any company whose securities are listed on a national stock exchange (for example, the New York Stock Exchange) is subject to a number of rules about corporate governance that are intended to protect investors. For example, the major U.S. stock exchanges require listed companies to have an audit committee made up entirely of independent members of the board of directors (i.e., directors with no material outside relationships with Debellation Brewing Co. or management), which is responsible for monitoring Debellation Brewing Co.'s compliance with the law. Debellation Brewing Co. will not be required to implement these and other investor protections.

## You Have a Limited Upside

Notes include a maximum amount you can receive. You cannot receive more than that even if Debellation Brewing Co. is significantly more successful than your initial expectations.

## You Do Have a Downside

Conversely, if Debellation Brewing Co. fails to generate enough revenue, you could lose some or all of your money.

## Payments and Return Are Unpredictable

Because your payments are based on the revenue of Debellation Brewing Co., and the revenue of Debellation Brewing Co. can go up or down (or even disappear altogether) unpredictably, it is impossible to predict how much you will receive and when. And because the payments are unpredictable, so is your ultimate return.

## The Notes Are Unsecured and Uninsured

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The Notes are not secured by any collateral, nor are they guaranteed or insured by the FDIC or any other entity.

Subordination

The Notes shall be subordinated to all indebtedness of Debellation Brewing Co. to banks, commercial finance lenders, leasing and equipment financing institutions, and/or other institutions regularly engaged in the business of lending money.

Lack of Guaranty

The Notes are not personally guaranteed by any of the founders or any other person.

Limitation of Individual Rights in Event of Default

In the event of a default under the Notes, you will not be able to enforce your rights individually (for example, by bringing a lawsuit). Instead, a representative will be appointed according to the procedures set forth in the Note Indenture. It's possible that you will not like the representative, or that the representative will do things you believe are wrong or misguided. If an event of default has occurred and a representative has been appointed, all of the representative's reasonable expenses must be paid before any further payments are made with respect to the Notes.

COVID-19 Impact

The ongoing COVID-19 pandemic may impact the Company's ability to generate revenue and/or continue operations. If operations are ceased due to COVID-19 restrictions, the Company can not guarantee that it will resume operations in the future.

This information is provided by Debellation Brewing Co., Mainvest never predicts or projects performance, and has not reviewed or audited this information. For additional information, review the official Form C filing with the Securities and Exchange Commission on the EDGAR website. This is a preview. It will become public when you start accepting investment.

Investor Discussion

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This website, Mainvest.com, which we refer to as the "Site," is owned by MainVest, Inc., which we refer to as "Mainvest." Mainvest is a licensed Funding Portal that offers investments under Regulation Crowdfunding, which is also known as Title III Crowdfunding. Our offerings under Regulation Crowdfunding are open for investment from the general public. By using the Site, you are subject to our Terms of Use and our Privacy Policy. Please read these carefully before using the Site. Although our Site offers investors the opportunity to invest in a variety of companies, we do not make recommendations regarding the appropriateness of a particular investment opportunity for any particular investor. We are not investment advisers. Investors must make their own investment decisions, either alone or with their personal advisors. Neither the Securities and Exchange Commission nor any state agency has reviewed the investment opportunities listed on the Site. Mainvest does not provide any legal, tax, or accounting advice with respect to any securities. Thank you for using the Site. If you have questions, please contact us at info@mainvest.com.

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ONLY INVEST IF YOU CAN AFFORD TO LOSE YOUR ENTIRE INVESTMENT.

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** DEBELLATION BREWING CO.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** GA

**Date of Organization:** 04-28-2019

**Physical Address:** 822 LONGWOOD DR, RICHMOND HILL, GA, 31324

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

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

**Intermediary Name:** MainVest, Inc.

**Intermediary CIK:** 0001746059

**Intermediary File Number:** 007-00162

### Offering Information

**Compensation to Intermediary:** MainVest will be paid Four and one half (4.5) Percent of the amount of the Offering raised by "In-Network Users" of the Platform plus Nine (9) Percent of the amount of the Offering raised by all other investors.

**Financial Interest in Issuer:** MainVest, Inc. owns no interest in the Company, directly or indirectly, and will not acquire an interest as part of the Offering, nor is there any arrangement for MainVest, Inc. to acquire an interest.

**Type of Security Offered:** Debt

**Price per Security:** $1.00

**Method for Determining Price:** The Notes are being valued at their face value. We don't anticipate that we'll ever need to place a value on the Notes in the future.

**Target Offering Amount:** $25,000.00

**Oversubscription Accepted:** Yes

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

**Maximum Offering Amount:** $35,000.00

**Deadline to Reach Target Amount:** 05-27-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 2.00

**Total Assets (Most Recent Fiscal Year):** $367,928.00

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

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $6,487.00

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

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $46,493.00

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

**Long-Term Debt (Most Recent Fiscal Year):** $227,227.00

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

**Revenues/Sales (Most Recent Fiscal Year):** $267,116.00

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

**Cost of Goods Sold (Most Recent Fiscal Year):** $37,371.00

**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):** $-34,506.00

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

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** DEBELLATION BREWING CO.

**Signature:** David Goodell

**Title:** Owner and CEO

---

**Signature:** David Goodell

**Title:** Owner and CEO

**Date:** 03-24-2023