Recur Outdoors: Disrupting the fishing industry through creative monthly subscriptions

Brian - I LOVE the Postfly Box every month! It gets me excited about fishing even when I am a long way from it...

Jimmy Kimmel

Host of Jimmy Kimmel Live! and 2X Oscar Host

It’s kind of like Blue Apron, but instead of shipping you recipes and ingredients for meals, the company sends you fly recipes and materials for fish ... the real perks of a Postfly subscription are convenience and inspiration. It really has prompted me to shake off the cobwebs and learn some new patterns, which I can always revisit and tie more of, if I like how they work.

Kirk Deeter

Editor-at-Large, Field & Stream Magazine

Offering educational tools alongside products has helped separate Postfly from other fishing supply subscription companies — including larger players like Lucky Tackle Box — but tips and tricks are only part of the company’s game plan. To get subscribers hooked on its products, Postfly also works to offer them as much choice as possible.

PYMNTS

Online coverage of payments news and top industry trends. Insight and reporting on payments, commerce, FinTech and innovation

Investor Q&A

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What does your company do?

We started with Postfly, the 1st subscription-based monthly flybox, to help new fishermen break into the sport. By curating flies, fishing accessories, and fun branding products in one monthly box, we built Postfly to a more than $120k per month business. We now have four digitally-native vertical brands in the fishing industry, all of which focus on a recurring revenue model. Together, the monthly subscription possibilities could re-define the gear industry and bring thousands more to fishing.

Where will your company be in 5 years?

We started with a subscription box for flies and educational material and have expanded into rods and reels. This push puts our subscription model into every step of the gear-buying process, making fishing more accessible to anglers of any skill level. Considering more Americans fish (46M) than play golf (21M) and tennis (13M) combined, this is a huge market opportunity. Our ambition is to become the top e-commerce destination for anglers, especially those new to fishing.

Who are you and what is Recur Outdoors?

My name's Brian Runnals and I'm the founder of Recur Outdoors. We started out as Postfly, which I started in my basement about six years ago. Quite honestly, it was never supposed to become a business. It was a side hustle I started because I was looking for a little bit of inspiration outside of my day job in software sales. Around that time, a lot of subscription box services like Birchbox, Harry's, and Dollar Shave Club were becoming very popular. I thought to myself, "You know what? There might be something here.” I stitched together an extremely loose-knit business plan. At the time, it was essentially a plan on a cocktail napkin. I built myself a little website on Shopify and just rock and rolled. For my first shipment of fishing products, I just walked into an Orvis store and bought everything retail. It was a hilarious exercise, but it was enough for me to prove that there were people that would buy this stuff in this way. And so away we went. Today, we've got a little over 7,000 active subscribers across our different brands. There have been several knockoffs, but I would argue that we certainly do it the best. We put a lot of time into the products that we source and we understand our customers and what's going to be an excellent experience for them month in and month out.

How has the business changed in the past six years?

We now operate four separate brands. About a year and a half ago, we saw a big opportunity to get into the durable fishing supply market, which includes the more expensive equipment that is going to last a significant period of time -- rods, reels, waders, and the types of things that are a significant investment, especially for someone new to the sport. We saw a gap that wasn't really being filled. Someone who is new to the sports wants nice equipment, but a younger person likely doesn’t have $800 on hand to drop on a fishing rod. So we started producing high-end gear and selling it directly to customers at a fraction of the price you’d normally see in the market. We completely buried the entry-level to mid-market offerings that are out there, which are widely described as junk. There wasn't anyone trying to make a really nice product at an entry-level to mid-market price. We're about to launch a fishing reel brand to coincide with the rod company. That will give us all sorts of bundling opportunities. Today, we operate Postfly, Wade Rod Company, and the new brand called Pelican Reels. We've also acquired GuideHire, a platform to discover and book fishing guides all over the U.S. that we're planning to re-launch in April 2019. As we go along, we're always going to be looking for new opportunities to expand into underserved fishing segments and potentially other outdoor segments like hunting.

What was wrong in the recreational fishing industry that you were trying to solve?

There were two big problems. One was that fly shops, which is somewhere you go to learn and find out about all these things that you need, are geographically sparse. I was living in Boston at the time and the closest fly shop was an hour and a half drive. I was willing to bet that I wasn’t the only person who felt like that was too much of a commitment to go get information. And if you turn online to try to learn what you need to know, that’s even worse. At the time, there was really nothing online to help someone that was new to fly fishing learn without being intimidated by all the stuff you need and all the crazy prices. There are retailers like Bass Pro Shops, Cabela's, and Dick's Sporting Goods. You can walk in there and ask simple questions like, "Where can I find this thing," and they'll point you to the right aisle. But they're generally not going to be able to a specific question about a specific product. We really tried to recreate the experience of going into a small specialty store and learning about the sport through the delivery service every month.

Who is your ideal customer?

We definitely skew more towards the beginner to intermediate-level fly fishermen. As you progress through the sport, you really dial-in on how to approach the sport and exactly what products you need. You can eventually reach a point where you're like, "I know exactly what I need. I've studied the bug science of these rivers or coastal area that I'm fishing, and I know what I need." For us, there's less less of a connection with those fishermen because education is a big part of what we offer. I think our customers would say the same thing. It's not just getting a kit of products from us every month, but it’s also being educated on the sport. Over time, we will find opportunities to grow with our customers as they progress into the sort of advanced level of the sport.

What’s the experience like of getting a Postfly subscription box?

In each box, we curate a kit of fishing flies, accessories, and ancillary products like beer koozies and sunglass holders, or more utility-like products for fishing, like fishing line and flies. You tell us what you like to fish for -- trout fishing, saltwater fishing, bass fishing in a golf course pond near your house, whatever it is -- and we find the right products for you. We offer two levels. You can think of it as a small and a large or a beginner and a more advanced. The beginner box is $19.99 and has a kit of flies, accessories, fishing line, and another bonus product. They always rotate, but it could be a beer koozie, sunglass retainers, a stream thermometer, or line cutters. We do a new sticker in the box every month because fishermen are universally sticker junkies. They put them on cars, refrigerators, whatever. We also print an actual newspaper that goes in the box. That's really the educational piece. There are several articles related to the products in the box to teach people how to fish them. So if there are things in the box that you like, you can come back to us and buy more of them. It’s meant to inspire our fan base to get out and go fish. We run contests and all sorts of fun stuff that go into the newspaper. We also do what we call our Guide Series box, which is more of a premium-level offering. We are trying to figure out how to grow with our customers as they grow, and this is one approach that we're taking. You get more products, you get more flies, and you get some higher priced items. Obviously, you're paying a little bit more, but for $39.95, you’re typically getting about $80 in retail value inside that box.

Do you promote the service around saving money or about discovering new products?

We sell on discovery more so than saving money. Painting a value picture with customers in a niche industry like this is very challenging. It’s worked out much better for us to use it as a discovery platform. That’s not to say that some customers don't look at the value of it, I'm sure they do, but it's all about finding new stuff and moving out of your comfort zone as fishermen.

How have you been measuring success up until now?

The big metric for us always has been subscriber growth, but we now also look at overall revenue growth and the raw number of new customers, whether they are a subscriber or buying products as more of a one-time e-commerce purchase. Retention is also important. We do all of this work to go out and find these customers. We spend a lot of money to do it. Once we have them, our main priority is keeping them. What that boils down to is shipping them a kick-ass product every month without fail. We've definitely had months where we've had hiccups. If we repeat a product, for example, that's like mutiny for a business like us. It’s always been about focusing on what can we do to deliver an awesome experience all the time. If we do that, we keep our customers.

How many subscribers do you have?

We have just over 7,000 active subscribers right now between Postfly and The Wade Rod Co.

Is the rate of growth increasing?

In an average month, we’ll see 600 or 700 new subscribers. We're trying to figure out what the next marketing horizon is for us, because we've gone so long by just running Facebook ads, Instagram ads, and doing direct-to-customer email marketing. That's one big area of opportunity for us to figure out. We're at a point where we're going to need to start finding some new places to find new customers, specifically for the Postfly side. We’re in a really good spot with the rods and reels. That’s growing well and will continue to as we go along.

Why are you taking this new jump into rod and reels and other hardware?

If you're a beginner, brick and mortar stores want to sell you junk. I don’t know why. Maybe it's so you grow out of it and want to buy the next level of something. Then you grow out of that one, and you buy the next thing. There just wasn't a lot of good products on the market for someone who was new to the sport. We were like, well, all of our customers are new and we've got this massive customer base with Postfly. They're asking us for recommendations all of the time. We were selling other people's rods, reels, and waders, and so we had an opportunity. Once we learned more about the manufacturing process and unit economics, it just made a ton of sense. We've got incredible margins on the rods with little marketing costs or any sort of acquisition cost, so this has created a meaningful business for us and a gigantic opportunity to grow into.

How are you designing and producing these new products to make them better than what’s already out there?

We essentially design and spec everything here. There are a few different ways we do this. If we're thinking about the fly side, we tie the appropriate flies for the Postfly box and then we source everything from one commercial operation in Thailand. We're actually partners with them. We have ownership in that business as well. I go over there about four times a year to check in and make sure everything's running the way it should. It’s the same thing for the rods. We design and spec everything here. We have local rod builders build the rods that we're looking to make so that we can see what it is that we're trying to achieve before we put in a production run. When we're happy with the design and performance, we work with probably the preeminent contract rod manufacturer, which is in China. They do a wonderful job for us. And it’s the same thing with the reels. We work with someone locally to machine cut a reel for us to spec, build it, made sure it does what we want, and then we send that to one of the operations doing these types of products at extremely high levels.

How are you able to produce them so affordably?

There's so much traditional keystone sales operation that happens in this business. Everyone was getting the rods made from the same manufacturer. All the shampoo in the world comes from the same two or three shampoo factories, and it’s been the same with this equipment unless there's someone making rods here in the United States, which is a little bit of a different story because they're extremely expensive. For any of the major brands that mass produce rods overseas, they come from the same two or three factories. Everyone's paying the same price. The problem is that everything is keystone, so when the manufacturers get them, they sell them to the distributor. Now a rod that cost that manufacturer $60 to make is $120. He gives them to a wholesaler, and that's another $40. Now that guy puts them into a retailer, and it’s suddenly a $400 or $500 rod for the customer. And the manufacturer made that for $60. That is what we're going up against. We're going directly to the factory. Since I don't have to sell it twice before it gets to a customer, I can sell it for half the price of anything else on the market. I don't need to sell it for $400 or $500 because we have a tremendous margin already. We're at about $275 ASP on each rod that we sell.

How will you sell this larger fishing equipment?

We have a bit of a hypothesis that we're in the process of testing out. We have come up with this kiosk design. Think soda vending machines for how it works, not necessarily the design of it. You can place them anywhere. If someone comes up and wants a soda, they put a buck in, they get a soda. We have a similar concept with a kiosk that can hold the rods, which can be tech-enabled so a customer can learn about the rods. In an environment, for example, like a Bass Pro Shops, where a sales guy is not really going to know a lot about anything in that store, we could provide an opportunity for a customer to actually learn about it and actually purchase the rods from the kiosk. One of the big things we do with the rods, in addition to having them at a ridiculous price already, is that customers can essentially wrap it in a subscription. Instead of having to pay the $250 upfront, they can pay over six months and still get the rod right away. If you already have a rod subscription, you can demo another rod in our lineup for a week for free. That’s a feature people love. So there are all sorts of things they can do there. We've got a few people willing to pilot the kiosks, and I think it could be pretty huge. It could give us an opportunity to actually be in a more distributed model outside of finding these customers ourselves. An upside for the retailer is that there's no inventory cost for them. By us placing the kiosk in there, they're not having to buy anything, and they'll make a commission on everything sold. If we prove that this concept does work, any funds that we raise from Wefunder would probably be allocated to manufacturing inventory to go into that, because we'll need a lot of it.

Have you placed any of these kiosks?

Not yet. We have our first prototype of the actual kiosk itself on its way to us right now. For now, we only have fly-specific retailers that have agreed to place a kiosk. The big opportunity is in more of these big-box stores like Bass Pro/Cabela's and Dick's Sporting Goods. However, I'd like to prove it first before we even go to them, which is why we're going to work with these few fly retailers and iron out the kinks. All in they will cost us just under $1,000. Four rods sold off of a kiosk would pay for the whole thing. So we don't have too much break-even time on them. But we’re still in full-on prototype zone with this, so I'm sure that we're going to run into some glitches.

Why not try to get into big box stores right away with the kiosk concept?

I like to put my best foot forward and I've been running this business now for six years. We have a small team, and I'd be lying if I told you we haven't made mistakes. We've made plenty of mistakes. But we usually don't make the same mistake twice, which is something that's pretty important to me. We try a lot of things, and we've screwed up. We’ve had to fix them and move on. That’s how I want to approach this. Let's really prove that the retailers that will host it will see value in it and that consumers are going to buy from it. With consumer behavior the way it is and how things work in retail, I have to believe that someone would buy from a kiosk. We could probably do a little focus group on it to further flesh that out, but first, let’s prove that those two things can coexist, and then I think Bass Pro Shops, Dick's, and Cabela's would dig it. We could potentially get into all sorts of other products. There's no reason to believe why it would have to be limited to one set of products and we couldn't recreate it for anything into the store to give the customer a different experience. As we're designing them right now, they couldn't stand alone outside of the retail store, but they're not going to be locked behind bulletproof glass. We certainly could work on the design of the kiosk and truly make it a vending machine. It’s going to be more of a showpiece, as it's really visually appealing and customers can touch and feel the products.

In the last 12 months, how much revenue have you made from subscription and how much have you made from direct-to-consumer hardware sales?

In the past 12 months, we've done probably $1.3 million. The vast majority of that, $1.1 million, is from the Postfly subscriptions, and probably just under $200,000 is from the hard goods side and any other one-time transactional things. We launched the rod brand in September of last year, so we're now just into about one year of running it.

Give us a sense of how saturated you think the market is. What's the total investable market here?

According to fishing license statistics that get published every year, there are about four million fly fisherman, or people who register when they buy a fishing license and indicate that they are going to go fly fishing. We certainly have quite an opportunity. The question for us, as we exist today, is how many of those folks are truly on the beginning to middle of the learning curve? That is really our market right now. The big opportunity is with the folks who are really dialed-in on fishing already and creating products and services for those guys and gals. It’s not something we really focus on today because we're limited in what we can focus on.

Paint a picture of the next year. Where will you see the most growth?

Launching Pelican Reels, our fishing reel brand, is going to be huge. Right now, we're selling you a fishing rod without a reel, so you still have to go complete the other half of that cumbersome transaction elsewhere. We’re going to be able to bundle roughly $500 in fishing product into the offering, instead of just $250 and make you go spend the other $250 elsewhere. It's a huge focus for us. There's going to be a huge inventory need. It’s going to wind up tying up a lot of our capital, but we've seen that as we do new stuff, it has fueled some of the growth with Postfly. We've also taken a look at some of the crossover opportunities that we have. A lot of our customers aren't the just ride-or-die fly fishermen. Some of them also go conventional bass fishing. Some of them go spin fishing here in the ocean. We have some opportunities to launch similar services using all the resources and the things that we've learned.

Think back two years to when you envisioned the end game, what do you think about Postfly and its maturity?

That's a good question. Where I thought we were going five years ago and where I think we’re going now are two completely different things. The business has certainly evolved over time. I see us now as being able to build high-value brands for outdoor consumers. In three to five years, I see us operating as many as eight of these brands and pick off these individual fishing segments, like we've done with fly fishing. I don't necessarily want to attack the fishing industry as a whole because it's a big pond.

Do you only sell in the U.S. right now?

We do sell internationally, but we don't market internationally. We're pretty dialed-in on the U.S., but we do get a trickle of Canadian and European customers. There are huge opportunities overseas. We just haven't been in a position where we can handle it. Canada is a huge fishing market, so are the Scandinavian countries and other parts of Europe. Asia's huge with fishing. We have a solid knowledge base on the right products to fish with in Canada, but aside from that, we would have to find people that understand these different fisheries, because as you can imagine, fishing in China is going to be a heck of a lot different than what’s going on here.

What is your competition like?

We've had a few carbon copy companies. It’s literally, "Let's copy and paste everything on their website, give it a different name, and try to have our own business." They usually don't last very long. No one right now is doing what we're doing with rods and reels. Two years from now, when we're in a few new segments and doing some different things that aren't so heavily reliant on fly fishing, there could be competition from Catch Co. They operate a business called Mystery Tackle box, which is a similar fishing subscription box. Bass fishing is their big thing. I'd love to see them continue to grow, and raise money, and do great things.

Who is on your team and why are you the people to make this business a success?

I moved to San Francisco after college with my girlfriend, who is now my wife. I wound up getting hired by a startup to do tech sales. It was the ride of a lifetime. I was their eighth employee and the company grew tremendously and was acquired by Intuit after about four years. I had stock options, the dream that is so frequently sold in Silicon Valley, and I just got this bug about startups. I bounced around to a few other tech companies and never really found my thing.My co-founder Maciej Labinski is a perfectionist (and I am the exact opposite), so we work well together. He's created the true brand of everything we’ve done - everything from logos to websites to color palettes to photo filters, and really does a bang up job on everything. We have an AMAZING team, and everyone treats the business like they own it. Which they actually do because they all have stock options! I think stock options are an absolute must to incentivize your team to always do the right thing for the business.I didn't necessarily intend for Postfly to be what is today. I'm sure glad it's turned out this way though. I'm very driven by just doing things differently, trying to innovate things and break things. If there's a way that people are used to doing it, I want to make it better. If we hear the same complaints from our customers, I want to fix those things.

What do you plan to do with the money you raise?

I want to do a few different things. Inventory is the single most important thing that keeps us going. If we were ever to find ourselves in a situation without inventory, or being late on getting inventory, obviously that trickles down to our customers and is a huge problem. We need to create a situation where we're about three months ahead on inventory. That's really specific to the subscription box side of it. We also are going to have a huge need for inventory on the durable side. The challenge with the hard goods is that it's a huge capital commitment. To manufacture what we would need for six months is going to cost us somewhere in the universe of $60,000 to $75,000. Hiring is the other thing. We're now in a position where the job functions here are fairly dialed-in, but we find ourselves in situations where people are doing a little bit of everything because we just need things to get done. We definitely need to find a buyer. We spend so much time and energy getting products made overseas and dealing with all the communication, or lack of communication sometimes. I also want to hire a chief technology officer. That's been on the docket for a while now. Everything we do is run through technology, and we're all pretty good at it, but we're not the right people to be doing this at this level of the company.

1	Over $3.5MM revenue to date, $1.3MM in 2017.
2	We currently have over 7,000 paying monthly subscribers between Postfly and The Wade Rod Co.
3	Monthly subscriber retention rate averages 94%.
4	180K+ shipments made to our customers.
5	More than 200K combined followers for our social media channels.
6	Tech-enabled kiosks to sell our high price point/high margin gear from Wade Rods and Pelican Reels expected rollout early 2019.
7	Raised $550k in earlier seed rounds.

1	The Company is an emerging enterprise in a new market without a long term operating history. You should consider the risks and difficulties frequently encountered by early stage companies in new and rapidly evolving markets, particularly those companies whose businesses depend on the Internet. These risks include the ability to (i) increase revenues and manage costs; (ii) increase awareness of their company; (iii) offer compelling content, services and products; (iv) maintain current, and develop new, strategic relationships; (v) respond effectively to competitive pressures; (vi) continue to develop and upgrade their technology; (vii) attract, retain and motivate qualified personnel; and (viii) raise additional capital. Similarly, these companies may rely on equity investments and loans to meet their expenses. There can be no assurance that the Company’s business strategy will be successful or that it will address these risks successfully. Further, the technologies and markets of the Company may not develop as anticipated, even after substantial expenditures of capital.
2	Company management will also have broad discretion over the actual amounts and timing of the expenditures of the proceeds we receive from this Offering and might not apply the proceeds in ways that enhance our operating results or increase the value of your investment. We expect to use the net proceeds from this transaction as working capital and for general corporate purposes as described elsewhere in this Offering Statement. Our management will have broad discretion as to the actual amounts and timing of the expenditures of the resulting net proceeds, and you will be relying on the judgment of our management regarding the application of these proceeds. Our management might not apply the net proceeds of this offering in ways that enhance our operating results or increase the value of your investment.
3	As of this date, our executive officers, director, and significant stockholder of more than twenty percent of our capital stock, Brian Runnals, beneficially owns approximately 70% of the Company’s outstanding stock. Therefore, this stockholder will have the ability to influence the Company through his ownership position after this Offering. This stockholder may be able to determine all matters requiring stockholder approval. For example, this stockholder may be able to control elections of directors, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate transaction. This may prevent or discourage unsolicited acquisition proposals or offers for our common stock that you may feel are in your best interest as one of our stockholders. In addition, the Company does not maintain a life or disability insurance policy on Brian Runnals, and therefore, if he were to die or become disabled, the Company may not receive any compensation to assist in his absence and the material adverse effect that such absence may cause.
4	The Company may not have the internal control infrastructure that would meet the standards of a public company, including the requirements of the Sarbanes Oxley Act of 2002. As a privately-held (non-public) Company, the Company is currently not subject to the Sarbanes Oxley Act of 2002, and its financial and disclosure controls and procedures reflect its status as a development stage, non-public company. There can be no guarantee that there are no significant deficiencies or material weaknesses in the quality of the Company's financial and disclosure controls and procedures. If it were necessary to implement such financial and disclosure controls and procedures, the cost to the Company of such compliance could be substantial and could have a material adverse effect on the Company's results of operations.
5	Many of our products contain wildlife products (ie feathers, fur, etc) that are used in production. Importing/exporting certain wildlife products can be costly and highly regulated. We do our best to adhere to all regulations in regards to these products.
6	The laws and regulations applicable to conducting commerce over the internet are rapidly changing and complex. We strive to be compliant with applicable laws regarding the conduct of our business, but new laws and regulations, as well as presently unknown legal risks, may result in a material adverse effect on our business.
7	The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. Acquiring the securities sold in this Offering requires a long-term commitment with no certainty of financial return. The Company is highly illiquid and its securities have not been registered under the Securities Act of 1933 (the “Securities Act”), and are only permitted to be offered pursuant to exemptions thereto. Accordingly, no assurance can be given that any offering currently qualifies or will continue to qualify under one or more of the foregoing exemption provisions due to, among other things, the adequacy of the disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change in any securities law or regulation that has a retroactive effect. Similarly, no governmental agency has reviewed or passed upon either the adequacy of any disclosure contained herein or the fairness of the terms of any offering and no public or private trading market for these securities currently exists and there can be no assurance that any such market will ever develop. Therefore, there is no assurance that the securities you hold in the Company may not be able to be resold at all, or at any specific price, and could prove to be worthless.
8	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.
9	We are a consumer products company operating in the highly-competitive market and rely on continued consumer demand or preference for our products and services. To generate sales and profits, we must sell products that appeal to retailers and to consumers. Our future success depends on consumer acceptance. There is no guarantee that there will be significant market acceptance of our products or that we will be successful in selling our products on a scale necessary to achieve sustained profitability. The market for fishing related products is evolving rapidly and we may not be able to accurately assess the size of the market or trends that may emerge and affect our business. Consumer preferences can change due to a variety of factors, including social trends, negative publicity and economic changes. If we are unable to convince current and potential customers of the advantages of our products, our ability to sell our fishing products will be limited. Consumer acceptance also will affect, and be affected by, our existing retail partners’ and potential new retail partners’ decision to sell our products and their perception of the likelihood of consumers purchasing our products. Even if customers purchase our products, there is no guarantee we will be successful in selling our products on a scale necessary for us to achieve sustained profitability. Any significant changes in consumer preferences could result in reduced demand for our product and erosion of our competitive and financial position.
10	We are, and will continue to be for the foreseeable future, substantially dependent on independent manufacturers and suppliers to develop, assemble and supply us with the products that we sell to our customers. We do not have our own manufacturing facilities. We are and will continue to be for the foreseeable future, entirely dependent on third parties to supply the materials necessary to operate our business. We can make no assurance that we will be able to maintain these third-party relationships or establish additional relationships as necessary to support growth and profitability of our business on economically viable terms. As independent companies, manufacturers and suppliers make their own business decisions. Suppliers may choose not to do business with us for a variety of reasons, including competition, brand identity, product standards and concerns regarding our economic viability. They may have the right to determine whether, and to what extent, they produce our products, our competitors’ products and their own products. Some of the business for these manufacturers and suppliers comes from producing or selling our competitors’ products. These manufacturers and suppliers may devote more resources to other products or take other actions detrimental to our brands. In addition, their financial condition could also be adversely affected by conditions beyond our control and our business could suffer. In addition, we will face risks associated with any manufacturer’s or supplier’s failure to adhere to quality control and service guidelines we establish or failure to ensure an adequate and timely supply of product and services. Any of these factors could negatively affect our business and financial performance. If we are unable to obtain and maintain a source of products and other materials, our business will be materially and adversely affected.
11	The Company’s intellectual property portfolio, which includes certain trademarks, business processes, trade secrets, and confidential and proprietary information, is being continuously developed to help create a competitive advantage in the marketplace. Because the Company’s business and offerings is, in part, dependent on the competitive advantage created by its intellectual property portfolio, the Company may suffer material adverse affect if the scope of the Company’s intellectual property protection is found to be insufficiently broad so that competitors could develop and commercialize products and technology similar or identical to the Company’s. In addition, we may in the future become party to, or be threatened with, adversarial proceedings or litigation regarding intellectual property rights. Third parties may assert infringement claims against us based on existing patents , patents that may be granted in the future, or other intellectual property rights, regardless of their merit. There is a risk that third parties may choose to engage in litigation with us to enforce or to otherwise assert their patent rights against us. Even if we believe such claims are without merit, a court of competent jurisdiction could find differently, which could materially harm the Company’s performance.
12	The amount of capital the Company is attempting to raise in this Offering may not be enough to sustain the Company’s current business plan. In order to achieve the Company’s near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If we are not able to raise sufficient capital in the future, we will not be able to execute our business plan, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of our remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment
13	The Company intends to use the proceeds from the Offering for unspecified working capital. This means that the Company has ultimate discretion to use the proceeds as it sees fit and has chosen not to set forth any specific uses for you to evaluate. The net proceeds from this Offering will be used for the purposes, which our management deems to be in our best interests in order to address changed circumstances or opportunities. As a result of the foregoing, our success of will be substantially dependent upon our discretion and judgment with respect to application and allocation of the net proceeds of this Offering. The Company may choose to use the proceeds in a manner that you do not agree with and you will have no recourse. A use of proceeds that does not further the Company’s business and goals could harm the Company and its operations and ultimately cause a Purchaser to lose all or a portion of his or her investment.

Date	Amount	Security
03/2019	$210,080	SAFE
06/2018	$100,000	Loan
10/2017	$250,000	Priced Round
05/2017	$125,000	Loan
04/2016	$75,000	Accelerator

Lender	Issued	Amount	Oustanding	Interest	Maturity	Current?
Michael Watts	05/10/2017	$125,000	$125,000	8.0%	05/10/2021	Yes
Justin Stuart	06/01/2018	$100,000	$94,000	10.0%	06/01/2021	Yes

Name	Michael Watts
Amount Invested	$125,000
Transaction type	Loan
Issued	05/10/2017
Outstanding principal plus interest	$125,000 as of 08/2018
Interest	8.0 per annum
Discount rate	0.0
Maturity	05/10/2021
Outstanding	Yes
Current with payments	Yes
Valuation cap	$2,500,000
Relationship	Father-in-law
This is a straight promissory note with cash repayment. Mr Watts was also issued a 20% warrant ($25,000) to purchase common or preferred stock (if it exists at the time of exercise) subject a $2.5M valuation cap.

$100,000	95% Used to fund inventory PO's for Wade Rods and Pelican Reels.5% Wefunder Intermediary fees
$1,070,000	95% will go towards accelerating our product development dramatically, build a sales team for our direct-to-guide sales, and begin to open up new verticals in the much larger $45B+ conventional fishing space.5% Wefunder Intermediary fee

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