FINANCIAL FORECAST

Our financial forecast is available for download here.

disclosure of available risk factors

This disclosure is available for download here.

investor rate of return

Internal Rate of Return (IRR) is a formula used to evaluate the returns of a potential investment. IRR calculates the projected annual growth rate of a specific investment over time. Investors are estimated to make a 28.9% return on their capital by year 5.

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IRR CALULATION

The calculation above uses inputs from the financial forecast. The sum of distributions to Series A Preferred Unitholders plus the Series A share of the proceeds from a hypothetical sale of the business at the end of year 5 would result in a 31.22% IRR for organizers.

The valuation of the Company in this hypothetical sale is a multiple of the operating income at the end of year 5. We are using a multiple of 4x in this calculation. Industry transaction data shows that bars and taprooms trade for 3x to 5x trailing 12-month EBITDA, while breweries and contract beer brands have traded in a wide range of 3x to 22x EBITDA.

EBITDA is another financial metric that adds interest, taxes, depreciation, and amortization to operating income. Had we used EBITDA, the IRR would have been higher. This calculation is provided for illustrative purposes only, a sale at the end of year 5 is hypothetical as there are no plans to sell the business at any specific time.

Investors will retain 50% of the company while the remaining 50% is retained by founders and key employees.