|1||165% average growth Year-Over-Year for the last 5 years.|
|2||Over $1.6M in direct to consumer sales in 2019.|
|4||Created a worldwide lifestyle brand with no outside investment.|
|5||Over $4.5M sold since 2014.|
|6||Very loyal customer base with over 364,000 social media followers.|
|7||Donate a percentage of sales to national parks.|
In 2013 Ben Campbell was working for Mike Sperry at a local screen printing shop in the customer service department. Ben always had an eye for creativity and decided to design some unique graphic shirts for his wife Courtney. They were different than anything else on the market. A lot of his inspiration came from nature, and the beauty all around us, including music and travels around the world. He got a great reaction from friends and family so he decided to start selling them on the side.
That’s when he approached Mike and asked him what he thought of the designs and if he would have any interest in partnering with him because of Mike’s business background. Mike was busy at the time growing his screen printing company and didn’t give much thought to the idea. But Ben asked a few more times and Mike finally showed the designs to his wife Kelly. She loved them and said why not! They got Courtney involved and that’s when Indy Brand Clothing was formed.
At first, it was a part-time gig with no real thoughts of it growing into a big brand. In the first 2 years, we put all the profits back into the company and literally paid ourselves no more than a couple of thousand dollars total. Then in 2016, the third full year, we grew a ton allowing Ben to go full time at the end of the year and Mike soon following a few months later in 2017, after selling his other business.
Since that third year, we have continued to set the trends for the modern outdoorsy brands, creating unique one-of-a-kind graphics for women, men, and children. We have not only created a clothing brand, but also a lifestyle that appeals to the wild at heart, the adventurer, and anyone who wants to live life at their fullest. Our brand promotes a love for the outdoors in a feel-good all-inclusive way. In 2018, we expanded our marketing efforts into Canada and Europe, and in 2019 went global. In 2020 we will continue to grow our worldwide distribution.
Our Instagram following has been one of our biggest growth factors with a following of more than 263,000. We also have over 105,000 on Facebook. We love the interaction and connection we have gained through our social media channels. It has allowed us build a strong brand community and create relationships with our customers all over the world.
In 2018 we launched a “National Park Rocker” line, and donate 10% of the proceeds from that line back to the national parks. We love being able to give back and help sustain the beauty that our national parks provide and inspire us with.
We are constantly selling out of products and receive requests every week to sell wholesale to large and small retailers, but are lacking the necessary capital to fulfill everything to make that happen. The investments we receive would allow us to get costs down, purchase higher quantities, and spread Indy Brand to retailers worldwide. We would also like to increase our marketing efforts to grow our brand awareness.
Active lifestyles and the trend to wear more casual leisurewear is continuing to increase the outdoor retail market revenues. While the retail clothes market is declining, the outdoor apparel market is growing by an average of 5% per year and is expected to reach 19.4 billion by 2026 compared to 12.7 billion in 2018. People are looking for new brands that speak to them in a unique and personal way.
Our sales from 2014 to 2019 continue to increase.
Indy Brand Clothing has financial statements ending December 31 2019. Our cash in hand is $3,616, as of February 2020. Over the three months prior, revenues averaged $98,569/month, cost of goods sold has averaged $48,429/month, and operational expenses have averaged $53,389/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We design clothing for the wild at heart.
In five years, we hope to have expanded our wholesale and our distribution worldwide by increasing our digital and physical footprints and brand recognition. We hope (but cannot guarantee) that this will bring our revenue to 10-20 million dollars a year.
Indy Brand Clothing, LLC was incorporated in the State of Utah in February 2014.
Since then, we have:
Historical Results of Operations
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $219,000 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Indy Brand Clothing, LLC cash in hand is $3,616, as of February 2020. Over the last three months, revenues have averaged $98,569/month, cost of goods sold has averaged $48,429/month, and operational expenses have averaged $53,389/month, for an average burn rate of $3,249 per month. Our intent is to be profitable in 3 months.
We hope that our revenues will start to see an even steeper up curve in the next few months especially with the new capital from this raise. 6 months following the raise we expect our revenues to be about 150K-250K per month. We expect expenses to be about equal to that during that time. We do have access to other sources of capital if we need them (personal sources and or loans offered by shopify, quickbooks and others). If needed, those can be used to fund short-term operations.
There is a risk that the products we develop will not sell as well as hoped in the marketplace.
We are reliant on consumers' tastes and therefore our ability to predict those tastes and changes in the market is key.
There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Costs of intrinsic materials needed in creating our products that are out of our control can go up.
Marketing costs to acquire new customers are constantly changing and can increase and offset profits and sales.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Investors are granting a proxy to vote their Units to the Board of Managers of the Company and, thus, will not have the right to vote on any matters coming before the members of the Company for a vote. By granting this proxy you are giving up your right to vote on important matters, including significant corporate actions like mergers, amendments to our operating agreement and articles of organization, a liquidation of our company and the election of our directors.
At the closing of this Offering, you will sign a proxy that gives our board of managers the right to vote the units that you are acquiring in this Offering on all matters coming before the holders of the units for a vote. The Board does not have any fiduciary duty to you to vote your units in a manner that is in your best interests. Accordingly, the Board may vote its proxy in a manner that may not be in the best interests of the holders of the Units. For example, the Board may vote the proxy in favor of an amendment to our operating agreement that adversely affects the rights of the holders of the units in order to allow for a new investment to occur where the new investor requires senior rights. By granting a proxy to the Board, you will not have the right to vote your units on any matters, including the protective provisions contained in our operating agreement. As a result, you will have no say in any major corporate actions such as amendments to our operating agreement, the creation of securities that are senior to our the Units, mergers, the sale of all or substantially all of our assets, the election of board members, the liquidation or dissolution of our company and all other major corporate events.
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