Details
1 | Grew 600% in Q1 (and still growing through the pandemic) |
2 | Serial entrepreneur founder with 4 lucrative exits |
3 | 50 products across 6 product families with grown margins above 75% |
4 | Self-manufacturer, made by us in Denver Co! |
5 | Multiple sales channels including Amazon, Wayfair, Office Depot, direct to consumer, and dealer relationships |
6 | Exit opportunities include Private Equity, Strategic Partners and Public Markets |
7 | Strong Patent Portfolio and material exclusivity |
Revenues are growing very fast and we are still growing through the pandemic!
Anthony Franco is a serial entrepreneur with 4 lucrative exits, 2 to public companies.
At mcSquares®, we’ve taken the traditional whiteboard and reimagined it into a family of eco-friendly products that foster creativity, productivity, and collaboration in offices and learning environments around the globe. Our customers are quickly discovering that our products are critical for work and learning at home. What we do is not rocket science, it’s social science—creating sustainable tools that boost innovation and productivity.
The digital revolution is transforming the globe at an unprecedented pace, enabling learning and working anywhere. But the basics still apply—people need flexible, sustainable ways to organize themselves and their teams.
Whiteboarding is not just simply using dry-erase products, it is the definition of how we effectively capture our thoughts, manage our schedules, and interact with our teams. What does Whiteboarding mean? It means visual thinking and working through a problem; it means community enlightenment, encouragement, and creativity without fear of judgment. Whiteboarding isn’t new, but the way we are doing it is. mcSquares:
mcSquares is at the intersection of several markets:
We have already experienced tremendous growth, success and excitement over our innovative products. In Q1 and Q2 of 2019, we experienced 45% month over month growth. People are talking about mcSquares and for good reason.
● Well Established: $2M in lifetime sales.
● Strong Brand: We are not a single product company; over 50 SKUs in 6 product categories (and growing).
● Made in America: We have mitigated our supply-chain risks by bringing manufacturing in-house.
● We Are Growing: $300k revenue in first quarter of 2020 (an increase of 600% over Q1 2019).
● Unfair Competitive Advantages: 3 trademarks issued, 2 pending; and 3 patents issued with 6 pending.
We make money through myriad outlets:
mcSquares are purposefully designed for the way people work in real life. We have a strong brand and strong IP with 4 registered trademarks and 3 issued patents with 6 more pending.
Material Exclusivity
Our ‘rocket-ship’ product line ‘mcSquares Stickies’ is made with a proprietary material we call ‘BubbleBond’—BubbleBond is used commercially in aerospace by Boeing, JPL, and NASA. We have global retail exclusivity on this material into perpetuity (as long as we meet minimum thresholds.)
Vertically Integrated
From a business perspective, we stand apart because of our vertical integration. We spent most of 2017 and all of 2018 tooling our own manufacturing facility. Because we own our manufacturing, we can launch new SKUs based on customer demand very quickly. What takes most large companies months to do, we can turn around in weeks (and sometimes days).
As we continue to scale, we will find new methods of getting our products to the public. Next, we are selling to Big Box retailers, which boosts our continued growth to new audiences.
mcSquares are being used everywhere—from businesses, to households, to homeschooling. We already have tremendous success and know we’ll continue that trajectory. Crowdfunding is the perfect realm for us because we are a company built around the idea that everything is done better through teamwork. We want to take on investors who will be a part of our team. We couldn’t be more excited to continue building out this world.
mcSquares has financial statements ending December 31 2018. Our cash in hand is $200,000, as of February 2020. Over the three months prior, revenues averaged $100,000/month, cost of goods sold has averaged $18,000/month, and operational expenses have averaged $120,000/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.
Overview
Our mission is to infuse the art of whiteboarding into every creative, collaborative, and learning environment.
We make whiteboarding tools that help people think, that inspire team creativity, that foster learning, and that cultivate organizational collaboration.
Our vision is to create meaningful human connections in a time of increasing separation caused by technology.
We are building an ecosystem of collaboration tools that empower face-to-face communication, discovery, and innovation.
Milestones
Comsero, Inc. was incorporated in the State of Delaware in April 2013. The company owns the brand mcSquares, as well as the associated patents.
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 $600,000 in debt and $1,655,959 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 120 months before we need to raise further capital, given that we hope to reach profitability in 2020.
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 24 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
Comsero, Inc. cash in hand is $200,000, as of February 2020. Over the last three months, revenues have averaged $100,000/month, cost of goods sold has averaged $18,000/month, and operational expenses have averaged $120,000/month, for an average burn rate of $38,000 per month. Our intent is to be profitable in 9 months.
We have some debt that we can draw down if needed. We've raised a $500k seed round in 2019. In 2019, June and July our revenues are about $80k / month and then dropped to $50k / month in August and September because we ran out of inventory (we could not keep up with the unexpected growth in Q3). We've re-stocked and invested in production capacity and have seen our revenue grow to $100k per month through January of 2020. We now have enough produced inventory and raw material in-house to produce $800k of sales.
We're hoping to hit profitability in Q3 of 2020. We're currently in growth mode. If we hit our maximum on Wefunder, we do not have plans to raise capital in the immediate future. We plan (although cannot guarantee) to reach $20,000,000 of revenue with the proceeds from this raise.
2017 and 2018 were bad revenue years for the business as we transitioned from importing the product to manufacturing it ourselves. That caused us an 18-month hit of revenue. In the first six months of 2019, we've grown 45% month over month.
We could operate the business profitably very quickly if we scaled back our growth efforts.
1 | We face competition from large brands that may be better financed than we are. If our competitors decide to produce products like ours, we may lose our market share. |
2 | Our manufacturing facility may face disruptions to production. Interruptions to production or changes to quality will impact our business operations. |
3 | People may not be willing to adopt our new product lines. Each of the products that we currently produce are less than a year old, so their market adoption is uncertain. |
4 | 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. |
5 | We may not be able to establish a footprint in big box stores. If we're unable to establish ourselves in those places, our future sales may be impacted. |
6 | Continuing trade wars may impact some of our product lines that are produced over seas. Changing government regulation can be unpredictable and may impact our sales. |
7 | The company is expecting positive network media coverage that may materially impact the company revenue. The media coverage mentioned has not been guaranteed to the company. Additionally, there are other risks associated with anticipated coverage including but not limited to: media cancelation, rescheduling causing stagnant inventory, interruption by breaking news, poor or negative positioning of the founder, producer edits that misrepresent the company in an unintentional manner. |
Director | Occupation | Joined |
---|---|---|
Anthony Franco | CEO @ Comsero, Inc. | 2016 |
Officer | Title | Joined |
---|---|---|
Anthony Franco | CEO | 2016 |
Holder | Securities Held | Voting Power |
---|---|---|
Anthony Franco | 6,449,399 Common Stock | 79.8% |
Date | Amount | Security |
---|---|---|
$227,907 | SAFE | |
01/2020 | $150,000 | Loan |
09/2018 | $200,000 | Loan |
10/2018 | $594,999 | Priced Round |
08/2019 | $250,000 | Loan |
10/2017 | $565,061 | Priced Round |
10/2019 | $495,899 | Priced Round |
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
EVPI INVESTMENTS I LP | 09/01/2018 | $200,000 | $0 | 12.0% | 11/01/2019 | |
Grand Avenue Investments | 08/30/2019 | $250,000 | $223,000 | 12.0% | 03/01/2022 | Yes |
Grand Avenue Investments | 01/01/2020 | $150,000 | $147,000 | 12.0% | 06/01/2022 |
Name | Anthony Franco |
Amount Invested | $955,900 |
Transaction type | Priced Round |
Issued | 10/31/2019 |
Relationship | CEO, Founder |
Founder led investments in rounds listed above | |
$200,000 | 74.5% -- Marketing (hire marketing position, storyteller position, and start digital ads)
10% -- Trade shows
10% -- Continue IP filings
5.5% -- Wefunder intermediary fee |
$1,070,000 | 64.5% -- Marketing (hire marketing position, storyteller position, and start digital ads)
20% -- Invest in equipment, materials, and staff to increase production
2.5% -- Trade shows
7.5% -- New product development and IP filings
5.5% -- Wefunder intermediary fee
|
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Series 2019 Preferred Stock | 1,200,000 | 751,916 | Yes |
Series 2018 Preferred Stock | 1,200,000 | 902,177 | Yes |
Series Seed Preferred Stock | 900,000 | 856,785 | Yes |
Common Stock | 11,00,0000 | 5,573,200 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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