Question

1 Approved Answer

Posted on Jun 23, 2024

shares Ownership Value shares Ownership Value shares Ownership Value shares Ownership Value Number of shares Ownership Value Common (Founders, Memt & 5,000,000 55.6% $5,000,000 5,000,000

shares Ownership Value shares Ownership Value shares Ownership Value shares Ownership Value Number of shares Ownership Value Common (Founders, Memt & 5,000,000 55.6% $5,000,000 5,000,000 38.5% $7,500,000 5,000,000 30.6% $7,500,000 5,000,000 20.4% $15,306,122 5,000,000 17.0% $35,714,286 option pool) Series A1 Investors Ware Street Capital 1,500,000 16.7% $1,500,000 1,500,000 11.5% $2,250,000 1,500,000 9.2% $2,250,000 1,500,000 6.1% $4,591,837 1,500,000 5.1% $10,714,286 Franconia Ventures 1,500,000 16.7% $1,500,000 1,500,000 11.5% $2,250,000 1,500,000 9.2% $2,250,000 1,500,000 6.1% $4,591,837 1,500,000 5.1% $10,714,286 Bluelock Ventures 1,000.000 11.1% $1,000,000 1,000,000 7.7% $1,500,000 1,000,000 5.1% $1,500,000 1,000,000 4.1% $3,061,224 1,000,000 3.49 $7,142,857 Series A2 Investors Ware Street Capital 1,500,000 11.5% $2,250,000 1,500,000 9.2% $2,250,000 1,500,000 6.1% $4,591,837 1,500,000 5.1%% $10,714,286 Franconia Ventures 1,500,000 11.5% $2,250,000 1,500,000 9.2% $2,250,000 1,500,000 6.1% $4,591,837 1,500,000 5.1% $10,714,286 Bluelock Ventures 1,000,000 7.7 $1,500,000 1,000,000 6.1% $1,500,000 1,000,000 4.1% $3,061,224 1,000,000 3.4% $7,142,857 Bridge Round Ware Street Capital 1,666,667 10.2% $2,500,000 1,666,667 5.8% $5,102,041 1,666,667 5.7% $11,904,762 Franconia Ventures 1,666.667 10.2% $2,500,000 1,666,667 $5,102,041 1,666,667 5.7% $11,904,762 Series B Investors (assumption: WSC and Franconia pro-rate Bluelock B and C investments) Ware Street Capital 1,633,333 6.7% $5,000,000 1,633,333 5.0% $11,666,667 Franconia Ventures 1,633,333 6.7% $5,000,000 1,633,333 5.6% $11,666,667 Series B Investor 4,900,000 20.0% $15,000,000 4,900,000 16.7% $35,000,000 Series C Investors (assumption: WSC and Franconia pro-rate Bluelock B and C investments) Ware Street Capital sum of new 700,000 2.4% $5,000,000 Franconia Ventures ownership 33.3% 700,000 2.4% $5,000,000 Series B Investor must stay equal to base case in all 700,000 2.4% $5,000,000 Series C Investor scenerios 2,800,000 9.5% $20,000,000 Total Shares Outstanding/ Total Investment 9,000,000 100.0% $9,000,000 13,000,000 100.0% $19,500,000 16,333,333 100.0% $24,500,000 24,500,000 100.0% $75,000,000 29,400,000 100.0% $210,000,000 Cumulative Shares Ownership Investment Shares Ownership Investment Shares Ownership Investment Shares Ownership Investment Shares Ownership Investment Common 5,000,000 55.6% 5,000,000 38.5% 5,000,000 30.6% 5,000,000 20.4% 5,000,000 17.0% Ware Street Capital 1,500,000 16.7% $1,500,000 3,000,000 23.1% $3,750,000 4,666,667 28.6% $6,250,000 6,300,000 25.7% $11,250,000 7,000,000 23.8% $16,250,000 Franconia Ventures 1,500,000 16.7% $1,500,000 3,000,000 23.1% $3,750,000 4,666,667 28.6% $6,250,000 6,300,000 25.7% $11,250,000 7,000,000 23.8% $16,250,000 Bluelock Ventures 1,000,000 11.1% $1,000,000 2,000,000 15.4% $2,500,000 2,000,000 12.2% $2,500,000 2,000,000 8.2% $2,500,000 2,000,000 6.8% $2,500,000 Series B Investor 0.0% SC 0.0% 0.0% $0 4,900,000 20.0% $15,000,000 5,600,000 19.0% $20,000,000 Series C Investor 0.0% 0.0% 0.0% 2,800.000 9.59% $20.000.000 Total 9,000,000 100.0% $4,000,000 13,000,000 100.0% $10,000,000 16,333,333 100.0% $15,000,000 24,500,000 100.0% $40,000,000 29,400,000 100.0% $75,000,000