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Confidential © 2014 Home Town Farms, LLC
®
Leading the revolution in urban farming, profitably
providing high quality, organic, ultra-locally grown food
through application of efficient technology, a radically
streamlined supply chain and a direct business model.
CONFIDENTIAL INVESTMENT MEMORANDUM
Contact: Dan Gibbs, CEO
858-248-9369
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Confidential © 2014 Home Town Farms, LLC
Table of Contents
Home Town Farms Overview…………………………………3
Broken Food System…………………………………………..4
Home Town Farms Solution…………………………………..5
Streamlined Model Benefits…………………………………..7
Market Potential……………………………………………….9
Experienced Management…………………………………….11
Use of Proceeds……………………………………………….24
Funding and Build out Timeline……………………………...26
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Confidential © 2014 Home Town Farms, LLC
Home Town Farms Overview
Home Town Farms™ is a vertically integrated food growing and retailing system for
urban and city markets. The Home Town Farms model combines proven and profitable
vertical growing technologies with a restructured supply chain that eliminates middle-
men and transportation to capture high margins while drastically reducing the resources
needed to grow and sell organic produce. These growing and distribution efficiencies
create a cost structure that is 50% less than conventional non-organic farms and
traditional distribution systems, using on average 85% less water, 80% less fertilizer,
70% less land and reduces fuel consumption and carbon output by about 90%, compared
to conventional farming. An on-site retail store serves as a permanent farmers market,
providing a fresh and fun consumer experience with the convenience of an urban
neighborhood location. Home Town Farms vertical integration from seed to shelf
provides high margins while offering customers the highest quality healthy, fresh organic
produce at price points they can afford.
The rise of farmer’s markets, which are temporary and inconvenient, is a strong
indication of latent demand for wholesome, farm-fresh produce. Home Town Farms’
model changes the economics of how we grow and distribute high-value produce to
urban consumers. Combining highly efficient growing systems already deployed in arid
regions around the world and the management team’s deep experience at greenhouse
farming, Home Town Farms eliminates most of the inefficiencies of the current farming
and distribution systems, including the costs associated with transporting produce
hundreds or even thousands of miles from farm to consumer. Home Town Farms will
also provide wholesale sales to local farmers markets, restaurants and grocery stores with
a business model that is cash flow rich and highly profitable.
Home Town Farms seeks to establish a chain of Retail Farms in Southern California and
then leverage our brand and market leadership to rapidly develop a national footprint.
While there are over 185 certified farmers’ markets held each week in Los Angles,
Orange and San Diego counties. There are currently no other Retail Farms in the United
States that have this business model. By being the first to combine vertical growing in
densely populated areas with local distribution, we will secure key locations, build brand
recognition and develop critical municipal and distribution relationships in each local
market. The type of produce grown at each location could consist of 28 varieties of high
margin, high-value mainstream vegetables and berries, along with select specialty
vegetables that are specific to the local population needs. Providing high quality, local
food at a savings to the consumer is a recession-proof business proposition.
Each Home Town Farms location is forecasted to be profitable within its first full year of
operation. Even the initial pilot Retail Farm, with approximately 53,000 square feet of
indoor growing area is forecasted to produce $1.05M in revenue and $311k in operating
cash flow in the first full year, and grow from there, resulting in a 48 month return of
capital, and an unlevered 10.5% IRR. Future Retail Farms, ~2 acres in size are expected
to produce $2.2 million in revenue and $1.1 million in operating cash flow, for a 64.7%
IRR at the operating level.
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Broken Food System
Home Town Farms brings a practical and economically compelling solution to well
known intransigent problems with our current food production and distribution systems.
Concerns for the long term viability of our food production system center on three key
issues: increasing population, shifting of weather patterns and shrinking fresh water
supplies.
Population
According to the United Nations, there are currently 7 billion people on the planet, up
from 2.5 billion in 1900. World population is expected to grow to 9.0 billion by 2050.
That’s a 200,000+ net new people added to the earth every day. Compounded with rising
caloric intakes and more tastes for resource-intensive foods such as meats in the
developing world, feeding this burgeoning population represents a significant challenge.
Weather
Weather patterns are changing, which means that crops that grew in certain areas will no
longer grow as well, producing lower yields. These crops will find new locations but this
will take time and crop harvests will be less while populations are growing. Weather
patterns are also becoming more extreme, shortening growing seasons and moving
rainfall distributions and intensity in ways unproductive to agriculture.
Water
Fresh drinking water is becoming less available in larger areas due to changing weather
patterns and increased demand from a growing population. Growing our crops under the
current farming system uses 70% of the fresh water consumed in the United States.
Farming as we know it will not totally change but where we grow certain crops must
change. Home Town Farms will show that high-value; highly perishable produce
(vegetables, berries, herbs and leafy plants) should be grown in the city. Traditional urban
farming can grow 20,000 to 40,000 pounds of produce per acre, vertical urban farming
can grow more than 500,000 pounds per acre. Produce grown in the city provides the
healthiest, lowest cost and is the most environmentally friendly way to grow food for the
masses. Most other crops (Tree, Stalk and Root crops) will continue to be grown out side
the city where large areas of land are required to grow the required quantities needed. The
current food distribution will continue to deliver these commodities but will slowly
transition away from perishable produce.
Why Vertical Farming?
The key to urban farming is utilizing the air space above the ground, to compensate for
the costs of urban land and labor. Vertical farming uses this air space by employing
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highly efficient growing systems, covered growing areas and drip irrigation to maximize
yields and dramatically increases land use efficiency by minimizing the amount of natural
resources needed to grow produce.
The Home Town Farms Solution
The Home Town Farms solution combines highly efficient vertical farming equipment
and facilities (already in use in arid locations worldwide for over 10 years), a limited
distribution footprint and direct to consumer sales to radically streamline the inefficient
conventional supply chain for produce.
Farming Equipment
The high efficient vertical farming operation allows us to yield the volume needed for the
expensive city land and labor costs. This equipment drastically reduces the amount of
resources needed to grow plants, therefore reducing our operational costs, e.g. Home
Town Farms with high efficient growing systems should save approximately $62,000 a
year in water costs and $56,000 a year in fertilizer, pest management and diseases control.
Vertical Farming Knowhow
Home Town Farms management has decades of experience installing and operating these
high efficient growing systems, drastically reduced farming execution risks.
Mike Castro, co-founder and COO of Home Town Farms. Mr. Castro started his first
hydroponic greenhouse in the late 1970’s. Mike was on the initial fact finding tour of
greenhouse operations in Spain, in the early 1990, for a group of Mexican producers that
led to the implementation of high efficient growing systems and greenhouses in Mexico
that now have become the industry standard. Mike has decades of real world experience
and knowledge of these high efficient growing systems plus his relationships in the
industry brings additional knowledge and experience to Home Town Farms.
Roy Peleg, Advisory Board member, was the Chief Agronomist for Netafim Ltd, one of
the world’s largest and most respected companies that specialize in all aspects of high
efficiency growing systems and greenhouses. Mr. Peleg was responsible for the scope
and agronomic planning of TKP (Turn Key Projects) and upgrades world wide,
agronomic support for greenhouse support for all territories; Mr. Peleg also collaborated
with research bodies on crop growing technologies, soil substrates, irrigation in
greenhouses and farm management. Mr. Peleg currently owns two high efficient
greenhouse farms in China.
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Farm Foot Print
Home Town Farms will build Retail Farms to match the demand of each community. The
size of the Retail Farm should be between 1 and 3 acres, scaled to supply a consumer
base residing within a 5-mile radius. When one Retail Farm sells out that Retail Farm
will not be expanded; another Retail Farm will be built 10 to 12 miles away, repeated as
demand requires The single largest cost in the price of produce is the cost and waste
required to deliver the produce from the farm to the store, so by limiting that distance,
Home Town Farms should significantly reduce the end cost of the produce, while earning
superior margins.
Supply Chain value expected to be captured by Home Town Farms
Retail and Wholesale Sales
Home Town Farms has selected locations for its operations which have a minimum of
30,000 people with average household incomes of $40,000 within a five-mile radius of
the site. Retail sales are expected to come from our prime locations that have 10,000+
car views a day. These locations are planned to have a retail store attached to the
greenhouse where the plants are grown, allowing for customers to come into the grocery
store, look through windows in the back of the store to actually see how their produce is
grown. Wholesale sales are expected to come from delivery and pickup services that
Home Town Farms plans to offer to businesses with in a five mile radius of the Retail
Farm. By reducing the distribution radius, we also eliminate the need for brokers and
distributors, further improving the efficiency of the supply chain reducing the end cost of
the produce.
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Streamlined Model Benefits
The Home Town Farms approach reduces cost while providing a healthier, fresher, more
nutritious and better tasting product.
Home Town Farms eliminates all the middlemen typically involved in distribution of
foodstuffs. For produce products, distribution costs and its associated waste can account
for as much as $0.60 of every dollar spent on a piece of produce. Home Town farms
distribution cost for the same produce is expected to be around $0.10 of every dollar
spent.
Under our current farming and distribution system produce must be picked one to two
weeks early so it can ripen on its way to the market. Most of the nutrients in produce are
formed in the last week or two of ripening on the vine. Under the current system produce
is picked early and starts with a lower nutrient content than fully vine ripened produce. A
study done by UC Davis found that most produce loses 35 to 75% of its nutrients with in
1 week of picking. When you combine early picking with time to market you are
providing people with produce that has far less nutrients than it should but all of the
calories, an un healthy combination.
Proven Technologies
Home Town Farms plans to purchase equipment and materials from Netafim and other
well respected companies, therefore leveraging Netafim’s and other’s over 46 years of
experience and knowledge to ensure we are the most efficient Vertical Urban Farming
business in the world.
The types of growing systems Home Town Farms plans to use are available
commercially. Home Town Farms plans to use a combination of 3 types of growing
systems at one location. The three systems will allow maximum yield per sq ft of leafy,
bush and vining plants. The large varieties make it worthwhile for people and businesses
to add our produce to their food purchasing routine. This is especially important in
attracting wholesale customers.
What causes higher yields per acre?
The growing systems produce higher yields per sq ft because they utilize vertical air
space normally unexploited by traditional growing methods. The growing systems
combined with a controlled growing environment allows for more plants per square foot
and increased yields from each plant compared to field farming.
Production comparison; Field vs. High Efficient Greenhouse Greenhouse hydro-organic / hydroponic growing is the most advanced form of farming.
This form of growing allows for large crop sizes on small areas, combining that with our
direct to consumer model plus a small distribution radius, offers the most efficient supply
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chain of fresh produce from farm to consumer. The unusually high return per square foot
is a direct effect of Home Town Farms owning the entire supply chain; farmer, distributor
and retailer. Revenue calculations are a simple equation of taking USDA published data
of greenhouse grown produce volumes and multiplying that by established USDA
published pricing.
Example: Almond farmers will produce ~2,230 pounds of almonds per acre and receive
an average $1.65 a pound (2010 USDA published data) which would give the almond
farmer grosses revenue of $3,680 per acre. If that same farmer could get the public to
come to their farm and sell the almonds direct to the consumer the farmer could of made
$9 a pound, which would of given the farmer gross revenue of $20,070 per acre. If the
almond grower could use growing equipment like the ones that are used for vegetables,
berries and leafy plants then the almond farmer would be able to fit 6 trees in the same
space that one tree currently takes up, then that farmer would be able to produce 6 times
more almonds per sq ft giving the farmer potential revenue of $120,420 per acre. This
demonstrates that vertical growing systems combined with direct to consumer model
offer margins and revenues superior than the current system allows.
Retail Store Comparison
Home Town Farms plans to build retail locations attached to our farms that are located in
high traffic areas. These stores will average 1,200 sq. ft. per acre. Home Town Farms will
average $651 in sales per sq ft annually. This is mid ranged compared to various other
retailers, e.g. Trader Joes $1,000, Whole Foods $757, Safeway $510 and Natural Food
Store at $410.
These sales numbers are based on selling locally grown vine ripened organic produce at
Von’s or Safeway non-organic conventional pricing. There are three models developed
for Home Town Farms to ensure success in the urban and city environment. The three
models are blended, retail only and wholesale only.
Blended Model:
The blended Retail Farm model will be located in or near shopping centers or other high
traffic locations. This model combines retail and wholesale sales from the same Home
Town Farms’ location. Retail sales will come from the store that is attached to the farm.
Wholesale sales will come from delivery and pick up services offered to local small and
medium sized businesses. The first one-acre Home Town Farm will be a blended model.
Retail only:
Retail only stores are best suited for downtown or other densely populated areas, and will
be pursued in a later stage of the Company’s development. The retail locations will
support a small growing area that allows people to see exactly how the food is grown.
The majority of the produce will be supplied by a Home Town Farms’ farm located
within 5 miles of the retail store. This allows us to stay true to our mission and at the
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same time utilize lower cost land maintaining the margins needed to maintain expensive
downtown retail property.
Wholesale only:
Wholesale only stores will be located on low cost land within 5 miles of major wholesale
customers. The farms would be designed around these customers allowing Home Town
Farms to produce specific items needed to ensure satisfied customers. The farms retail
store would be replaced with a mini processing area that could convert the harvested
produce into their desired packaging forms for resale.
Market Potential
The retail sales market of fresh produce and berries are over $35+ billion a year in the
United States, according to PMA (Produce Marketing Association). The market potential
for the types of produce Home Town Farms will grow is over $11 billion. The market
potential described above does not include wholesale and food service, which are each
multi-billion dollar markets. Home Town Farms will capture parts of these markets too.
According to USDA the average American eats $5 a week in produce, which equals $250
annually. Home Town Farms one-acre Retail Farm will provide $1,050,000 in annual
sales. A one-acre Retail Farm will provide the produce needs of approximately 3,200
people. The top 100 cities in the United States have a minimum population of over
50,000 and some over 200,000 people with median annual income of $72,168. These
cities could handle dozens of Retail Farms each. Home Town Farms goal would be to
secure 235 locations or average 2.35 Retail Farms per city. If built as corporate-owned
locations, these 2.35 Retail Farms would have annual sales potential of ~$600 million
with ~$200 million contribution to margin. This does not include the potential Retail
Farms in the other 1,100 cities across the United States.
Home Town Farms’ model changes the economics and creates a lower cost structure
(estimated at 60% of traditional farming and transportation cost) and a more cost-
competitive product offering that has the potential to grow the organic market by
attracting new urban and city consumers. This will be accomplished by selling locally
grown vine ripened organic produce at prices comparable to conventional non-organic
produce.
Consumer demand for fresh locally grown food is growing. Currently 70% of consumers
have expressed a preference for local grown food and 8% prefer organic food. Home
Town Farms produces locally grown organic food providing a potential to capture 78%
of the consumers. The success of Whole Foods and the growing popularity of farmer
markets are a great indication of the increasing market demand for high quality locally
grown organic food.
Strategy for Expansion
Home Town Farms has built important relationships throughout the United States but
especially in Southern California. These relationships give Home Town Farms a
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competitive advantage in both branding and potential sales. Home Town Farms’ strategy
for growth is to build out the Southern California market as corporate owned stores and
expand nationally through licensing/franchising arrangements. Global expansion is also
planned
Corporate Owned Stores
Prior to further expansion, a one-acre pilot Retail Farm will be built in San Diego,
California. In phase 2 of its business plan, Home Town Farms expects to build and
operate 40 corporate owned Retail Farms throughout Southern California, the majority as
2.2 -acre Retail Farms which are expected to generate a combined $85 million revenue
and $38.7 million in EBITDA by the seventh year of operation. This will establish a
strong and profitable base of operation and create an expandable brand to position Home
Town Farms as the national local food solution.
Real Estate Home Town Farms will lease land for its primary business of farming operations. During
its rollout phase, Home Town Farms will organize a separate real estate enterprise that
will consist of the current Unit holders of Home Town Farms LLC, for the purpose of
buying certain desirable properties and leasing them to Home Town Farms LLC for
operations. Home Town Farms’ goal is to purchase or have an option to purchase key
locations. Home Town Farms has the option to purchase the first location in Vista.
Licensing and Franchising Home Town Farms will use a licensing and franchising strategy to expand the brand
across the United States. Licensing and franchising will generate revenue with very little
capital requirements.
Key Customers
Home Town Farms has the support of large Wholesale Customers, City Officials,
Universities, School Districts, Hospitals and Community Groups.
Each one of these large wholesale customers represents a vertical market that can be
duplicated across the United States.
Home Town Farms has received letters of commitment to purchase from:
o Whole Foods – Customer for Retail Farm 1
o Encinitas School District – Customer for Retail Farm 1
o Palomar Pomerado Health System including their hospitals – Customer for Retail
Farm1
o San Diego Zoo Safari Park– Customer for Retail Farm1
o Barona Resort and Casino –Customer for Retail Farm 2 (distance, not demand)
o San Diego Zoo. Customer Retail Farm 2 (distance, not demand)
City Support Home Town Farms has received letters of support from:
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o City of San Diego, by the Clean Tech manager of San Diego, Jacques Chirazi.
Jacques is in charge of all green and renewable energy projects for the City of San
Diego and answers directly to the Mayor.
o County of San Diego, by Ron Roberts, the current San Diego County Supervisor.
Community Support
The following organizations have expressed a high level of interest in working with
Home Town Farms
o Urban League of San Diego
o Boys and Girls Club of San Diego
o Partnerships of Industry San Diego
o California Center of Sustainable Energy
o Food Bank of San Diego
o San Diego Red Cross Women, Infants and Children’s program
o San Diego County Child Obesity Program
University Acknowledgement All are interested in their students learning more about high efficient vertical urban
farming.
o San Diego State University (SDSU) Dan Gibbs CEO of Home Town Farms is a
Advisory Board member of their Advisory Committee for Water and Land Use.
SDSU is developing curriculum for certificate and education programs. SDSU
believes that Vertical Urban Farming is an important part of urban water and land use
and wanted Dan’s input regarding vertical urban farming.
o UCLA, Dan participated as a panelist and speaker at UCLA’s Food 2.0 conference.
o UCSD, Dan as requested by the Director of Sustainability lectured to numerous
classes of Master Students.
o USD, Dan presented at USD Masters of Science in Executive Leadership (MSEL)
conference.
City Planning and Zoning Acknowledgement
o Top San Diego city officials in the planning and zoning departments called upon Dan
Gibbs for input on vertical urban farming to update the San Diego city codes. Home
Town Farms criteria were one of the sources used to update the city codes opening
more areas and opportunities for Home Town Farms.
o San Diego City Council requested Dan present Vertical Urban Farming information
to the Land Use Committee
o Dan Gibbs input and Home Town Farms criteria lead to a new San Diego city code
called “Retail Farm”
Experienced Management
The management team is lead by the two Founders Daniel Gibbs, CEO and Michael
Castro, COO. The management team and Advisory Board members where hand picked
because each person’s expertise represents a specific area needed to create a successful
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vertical urban farming company. We believe we will have no problem recruiting the best
people to complete our management team. Complete team Biography’s follows the
Execution of Strategic Categories section below.
Execution of Strategic Categories
The team members below bring years of hands on experience plus their relationships with
other industry experts.
Farming / Farming Technology
Mike Castro
o Produce Specialists of San Diego went public and became Fresh Choice
part of Dalgety PLC London (9 Years)
Grower procurement and production supervisor - over 20,000 acres
in Mexico went private again and is now called "New Star"
o Rancho Los Pinos, San Quintin Baja Mexico, largest grower in Northwest
Mexico and now the largest hothouse grower (6 Years)
Manager Technical Dept / Grower
o Bruce Church - Guadalupe, California, one of the largest lettuce
companies in the US (2 Years)
(Assistant Manager)
o Mexam Fruit Company - National City, CA. with operations in Latin
America, Oldest Certified Organic Banana producer in the world. (4
Years)
International Operations Manager.
o San Diego Organic Supply (3 Years)
President
Roy Peleg
o Netafim Ltd., World leader in smart irrigation and greenhouse solutions (7
years)
Chief Agronomist Corporate Greenhouse Division , Greenhouse
Division Director and Regional Manager
o Fertilizers & Chemicals Ltd. (5 years)
Agronomist and Regional Manager
o Kibbutz Masada (6 years)
Farm Manager
Roy Wilburn
o Agricola La Canapana SA dc C.V (15 Years)
Grower and Farm Manager
o Island Horticulture Specialist, Inc. (3 years)
Owner, Grower and Farm Manager
o Herb Thyme Farms, Inc. (2 years)
Grower and Farm Manager
o Bandy Canyon Ranch (3 years)
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Agriculture Manager
o Sunshine Care (current)
Director of Horticultural Operations
Tosh Nishiguchi
o Circle Farms (17 years)
Production Manager
o Sea Breeze Farms (5 years)
General Manager
o Vener Farms (2 Years)
Production Manager
Retail / Wholesale
Bruce Peterson
o Wal-Mart Stores (16 years)
Senior Vice President Perishables ( Grocery included)
Tosh Nishiguchi
o Alpha Beta Grocery Stores (7 years)
Produce Manager
Mike Miller
o Wild Oats (1 year)
Chief Financial Officer – Chain of Natural food grocery stores
o Jeltex Holdings (7 years)
Chief Operating Officer - Vertically intergraded food and food
Products Company; essentially a farm, manufacturing to retail
business.
o Thomas Village Market (6 Years)
Co-Owner – Gourmet Grocery Store
Dan Gibbs
o Gold Mine Natural Foods (1 Year)
CEO
o OnTech / Ontro (13.5 Years)
Vice President Business development
Marketing and Branding
Rowland Hanson
o Microsoft Corporation
Vice President of Corporate Communications
o Neutrogena Corporation
Vice President of Worldwide Marketing
o The Nautilus Group (NYSE: NLS)
Business development consultant, branding consultant, and Board
Member
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Team Biographies
Daniel Gibbs, CEO – Founder
Dan brings more than 30 years of experience as an Entrepreneur, Board member, CEO
and VP. Dan was a Co-Inventor of the Self Heating Container technology and served as
Vice President of Business Development for OnTech Inc. Dan played a leading role in
negotiating and closing product development contracts with Procter & Gamble, Kraft and
other multi-national corporations and closed the first $300 million in sales for the
company. While Dan was Vice President of OnTech Inc., Fortune magazine picked
OnTech as one of the top 25 breakout companies of the year. Dan is also named on
numerous utility patent claims issued in over 35 countries.
As CEO of Gold Mine Natural Foods, Dan developed strategic relationships and
implemented and created growth initiatives that lead to the fastest growth in the
Company's 21 year history. Dan was also the Co-Founder and Board member of Predict
Power LLC. Predict power offered real-time energy price and consumption forecast
information systems, specifically-designed for commercial and industrial (C&I) facilities.
Dan is a current Advisory Board member of San Diego State University (SDSU) Water
Conservation Advisory Board, Provide industry expertise in the best use of water and
land in urban and city areas. SDSU will use this information to create new learning
curriculum and certificate programs for college students. Dan is a current Advisory Board
member of Compass Auto Finder LLC. The Compass Auto Finder is a revolutionary
patented product made up of the world's smallest directional antenna. Dan is a past Vice-
Chairman and Board Member of the San Diego Renewable Energy Society, which is the
local chapter of American Solar Energy Society, one of the largest and oldest solar
groups in the US. Dan has been involved in raising over $35 million dollars for various
companies.
Michael Castro, COO – Founder
With over 30 years Agricultural experience, Michael Castro a native of Coachella Valley,
California, has extensive practical and management experience in both conventional and
organic farming, as a Grower and Grower Supervisor. As a winner of the Bank of
America Agricultural Scholarship, he studied Crop Science with a concentration in
Vegetables and graduated with a B.S. from California Polytechnic State University in San
Luis Obispo. Following his graduation he spent 25 years as an owner and manager of
various private, public and multinational produce operations, some as large as 20,000
acres.
His experiences have taken place not only in the USA, but he has also had extensive
program development experience in Mexico, Central America, South America and the
Dominican Republic, in both Organic and Conventional agriculture. He has held all 7
Pest Control Advisor's Licenses in the State of California and is also a Certified Organic
Inspector. His extensive skills as related to this business include Real Estate development,
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Human Resources, Team Building, Budgeting and Tracking, Procurement, Harvesting
and Packaging, Produce Sales and Purchasing, International Import/Export, and
transportation. He has been instrumental in the turn around of various operations by
bringing new technological ideas to these businesses that made them more competitive in
the International marketplace. The initial operation Mike was associated with in Mexico
became very successful and was purchased by an International public company and Mike
was retained as the Growing Operations Supervisor responsible for Contracts, Crop
Scheduling, Quality Control and Operations. He supervised a $20M budget that
generated over $100M in annual sales.
Mike was on the initial fact finding tour of greenhouse operations in Spain for a group of
Mexican producers that led to the implementation of greenhouse growing techniques that
are fast becoming the standard of the industry in Mexico. He has worked with some of
the pioneers of Organic growing, and is a researcher and developer himself, of innovative
organic products for Agriculture and the Home Gardener.
Roy H. Wilburn, Farm Manager/Grower
Mr. Wilburn has more than 20 years, of experience managing and operating vegetable
and berry farms. Immediately after college he became an agriculturalist in the San
Quintin Valley of Baja California Norte. For the next twenty years he was a hands-on
grower and eventually owner of ranches up and down the Baja Peninsula. Mr. Wilburn
has managed over 1000 acres of tomatoes, all types of peppers, peas, beans, cucumbers,
squashes, asparagus, strawberries and other produce annually. All aspects of production
were his responsibility including seed acquisition and varietal selections, greenhouse
growing of all transplants, ground prep, MBr and plastic mulch application, macro and
micro irrigation design and installation, planting, cultural practices, fertilization and pest
control, harvest, hauling, packing and shipping and working daily with the sales team.
Over two million boxes were produced annually and distributed from their sales facilities
in the Otay Valley of Chula Vista, California.
After his Mexico experience, he worked for HerbThyme Farms in Oceanside California
as Grower/Manager of all sixteen herbs, both conventional and organic; again, all aspects
of growing were his responsibility. Besides growing, Organic Registration, Primus
Certification, all audits, Kosher registration and complying with all state, county and
federal regulations were also his responsibility. GAP, food safety regulations, fertilizer
and pesticide application logs were kept daily. No violation of any kind was allowed
under his watch.
Mr. Wilburn worked closely with University of California system, farm advisors all over
the nation, seed companies, irrigation companies, and chemical companies to stay on the
cutting edge of all technological aspects of agriculture. His outfit was the first to bring
drip irrigation and the use of plastic mulch to Baja. He worked with Sun World
International to become the first grower, in Baja, of the LSL tomatoes and seedless
watermelons, galia melons and the now popular La Mouye type of Spanish red pepper.
During his second year of growing strawberries, he received national recognition at the
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United Fresh Fruit and Vegetable Association Convention for the first ever, pre-print
strawberry box.
His research and education led him to many growing areas in the USA, Mexico, Spain,
Israel and the Netherlands. Always looking for an advantage in latest technologies,
varieties and growing practices were crucial to stay on top. He was a member of the
California Tomato Advisory Board; he was an Executive Board member at Peninsula
Vegetable Exchange, Inc. and resident of Island Horticultural Specialists, Inc. Mr.
Wilburn has certificates in Post Harvest Handling and Completion of Vineyard Series
from UC Davis and is a Licensed Private Applicator of Pesticides in California.
Advisory Board Members
Mike Miller
Mr. Miller has held positions as CFO, COO, and CEO of public and private companies.
The range of companies has varied from a Cleantech start-up to a turnaround of a public
company, and in diverse industries from fresh and processed food to aerospace. Mr.
Miller was Chief Operating Officer of Jeltex Holdings, Inc. a vertically integrated fresh
produce and food Ingredients Company. While at Jeltex Mr. Miller was responsible for 6
acquisitions of growing partners in Mexico and California, Import operations, large scale
production of Green Chile and sales to industrial food manufacturers and direct sales to
major retailers such as Kroger, Albertsons and Safeway.
He formerly served as Chief Financial Officer of Wild Oats Markets, Inc. Mr. Miller is a
CPA, spending his formative years with KPMG, and previously held membership to the
New Mexico Bar.
Bruce Peterson
Bruce is the founder and president of Peterson Insights, Inc., a consulting company
specializing in helping fresh food companies successfully navigate through a wide variety
of complex challenges.
Bruce is a 39 year veteran of the produce industry, who began his food career bagging
groceries for a supermarket chain in his hometown of Detroit, Michigan in 1970. Bruce
worked for several notable supermarket chains, as well as owned and operated a
wholesale produce company.
But Bruce is best known for the time he spent as Senior Vice President of Perishables for
Wal-Mart Stores, Inc. Bruce joined Wal-Mart as the Produce Director in 1991 after being
interviewed by none other than Sam Walton himself. During his 17 year career at Wal-
Mart, Bruce saw the company grow from 6 Supercenters to over 2300 Supercenters, 117
Neighborhood Markets, and established 42 food distribution centers. He became Vice
President of Produce/Floral in 1994, and in 1998 was made Senior Vice President of
Perishables. In addition to his Merchandising and Procurement responsibilities, Bruce
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was the Chairman of the WalPac Advisory Group, which is Wal-Mart's Political Action
Committee (P.A.C). Bruce actively represented Wal-Mart in Washington and lobbied on
a wide variety of agricultural issues. Bruce was a driving force in several industry
changing initiatives including Reusable Plastic Containers ( RPC's), Radio Frequency
Identification ( RFID), Vendor Co-Managed Replenishment, Category Management,
Food Safety/Traceability, and Case Ready Meat, just to name a few.
Bruce retired from Wal-Mart in 2007, and later joined Naturipe Foods LLC as its
President and CEO, where he applied his retail perspective and business acumen to a
grower shipper organization.
During his career, Bruce has been active and recognized in a wide variety of industry
roles.
In 1997, Bruce was honored as Produce Marketer of the Year by "The Packer".
In 2001, he was named Perishable Executive of the Year by "Grocery Business"
magazine.
In 2002, he served as Chairman of the Produce Marketing Association. In that
same year, he was appointed by the Secretary of Agriculture to serve on the
USDA Produce Advisory Committee.
Bruce is a guest lecturer at 6 major Universities, is frequently asked to comment on
timely and relevant industry issues, and is asked to speak at a wide variety of industry
events. He brings a seasoned perspective to virtually every aspect of the supply chain
from the producer straight through to the consumer. He serves as a Board member for
several companies dealing in supply chain logistics, grower/shipping, and Information
Systems.
Bruce's experience and wisdom will help Home Town Farms build the most efficient
retail outlets. Home Town Farms believes that Bruce will also be a great help in
developing strategies for successful growth.
Roy Peleg, M.Sc, Agriculture Science
Mr. Peleg is CEO and partner in AraZim; an Israeli consulting company emphasizing in
Ag-business services. Mr. Peleg was the Greenhouse Division Director, Regional
Manager and Marketing Director for Netafim Ltd. a world leader in smart irrigation and
greenhouse solutions (http://www.netafim.com). Mr. Peleg also served as the Chief
Agronomist Corporate Greenhouse Division. As Chief Agronomist he was responsible
for the scope and agronomic planning of TKP (Turn Key Projects) and upgrades
worldwide, Agronomics support for greenhouse projects for all territories; Mr. Peleg also
collaborated with research bodies on crop growing technologies, soil substrates, irrigation
in greenhouses and farm management.
While Mr. Peleg was Greenhouse Division Director he was responsible for establishing
the greenhouse divisions across; Japan, India, China, Vietnam, Thailand, Philippines,
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Indonesia and Australia-NZ. He managed the greenhouse division manager in each
country as well as the agronomic work force, Conducted the education and training
programs for Netafim in the field of greenhouse engineering, agronomy, sales and
marketing.
As Regional Manager Mr. Peleg managed the day to day business operations, including
agronomy and business development in several countries including; Saudi Arabia, UAE,
Bahrain, Oman and Qatar. While Marketing Director at Netafim Mr. Peleg was involved
in the development of the Greenhouse solution for Japan and Korean national agriculture
reconstruction (2009) and he was also involved with the development of the regional co-
services company to deliver agronomic and technical services to farmers.
Mr. Peleg has 24 years of experience in the agriculture business including 5 years with
Fertilizers and Chemical (ICL). Mr. Peleg has significant experience and knowledge in
Greenhouses, Growing substrates, Vegetables, Herbs, Fertilization, Irrigation,
Agriculture Marketing, Agriculture Planning and Business Development.
Mr. Peleg is an agronomist and holds a B.Sc and an M.Sc in Agriculture Science both
from the Hebrew University in Jerusalem.
Mr. Peleg will be a great help to us, he will ensure that we are using the right growing
technologies and methodologies to ensure the production of the highest quality and
quantity of vegetable and berries possible.
Rowland Hanson
Mr. Hanson is CEO of Hanson Maslen Group (www.HansonMaslenGroup.com). Prior to
consulting, he was Vice President of Corporate Communications at Microsoft, where he
developed and executed the company's highly acclaimed branding strategy which
included the market introduction of Microsoft's most popular product—a graphical
interface that he named "Windows." Several books published on the history of Microsoft
document the strategies executed that led to the dominance of the Microsoft and
Windows brands. Prior to Microsoft, he served as Vice President of Worldwide
Marketing for Neutrogena Corporation, a skin care and cosmetics company that
registered phenomenal growth thru new product introductions and global partnering
before being acquired by Johnson & Johnson.
Rowland was also a business development consultant, branding consultant, and board
member of The Nautilus Group (NYSE: NLS), the developer and marketer of such
brands as Bowflex, Nautilus, Schwinn Fitness, and StairMaster. See www.nautilus.com.
Rowland is a Managing Partner at the Santa Barbara Wellness Institute which is a source
for creating and maintaining a lifestyle dedicated to wellness. The Institute, led by
internationally-recognized wellness experts, offers education, online communities, and a
wide array of products that are the building blocks for a healthy mind, body, and spirit.
http://www.sbwi.com. He is also a Partner at Montecito Corporation, the company
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leverages their proprietary Market Intelligence Systems, extensive healthcare industry
experience and capital to help our partners identify and qualify the best sites for medical
and senior living ventures in the country. http://www.montecitocorporation.com
Rowland has a BBA from Loyola University (Jesuit Honors Society) and an MBA from
Wharton School of Business (Director's List). Rowland will be instrumental in forming
our Branding strategy to ensure we are perceived as the leading experts on vertical urban
farms and to brand our vegetables and berries as the most "Eco-Friendly" on earth.
Sanford B. Ehrlich, Ph.D.
Sanford B. Ehrlich is the QUALCOMM Executive Director of Entrepreneurship for the
Entrepreneurial Management Center at San Diego State University within the College of
Business Administration. Under Dr. Ehrlich's leadership, the EMC has been recognized
among the top business schools for entrepreneurship by U.S. News and World Report and
is a NASDAQ Center of Entrepreneurial Excellence. His teaching, research, and
consulting is focused on entrepreneur-investor relations, leadership and organization
design of emerging growth companies, corporate entrepreneurship, and technology
commercialization.
His publications have appeared in the Journal of Business Venturing, Organization
Studies, Administrative Science Quarterly, Leadership Quarterly, Academy of
Management Journal, Journal of Technology Transfer, Family Business Review, and the
International Management Journal. For the past 5 years, Dr. Ehrlich has worked with the
Peres Center for Peace in Israel to establish cross-country collaborations in the
agricultural and food industries to commercialize new products. In this regard, Dr.
Ehrlich has been a featured speaker at several conferences in the agricultural sector. At
AgriTech, Israel's major agricultural technology conference, Dr. Ehrlich has presented a
model for commercializing new food products, borrowing development models from
technology-based companies.
Dr. Ehrlich is a member of the Board of Directors for Deep Sky Software Inc. (privately-
held), and has formerly served as a Director of The Healthy Back Store Inc. and Amistar
Corporation. He also serves on the board of advisors for Accenx Technologies, Confirm
BioSciences, and Sullivan International Group. In addition to his involvement with
entrepreneurial companies, he serves as a director and advisor to the following
organizations that promote entrepreneurial development: San Diego MIT Enterprise
Forum and CONNECT. For his work in entrepreneurship, he has received the 2000 Ernst
& Young Entrepreneur of the Year Award and the 2001 Edwin M. and Gloria W. Appel
Award from the Price-Babson Foundation. In 2007, Dr. Ehrlich was named one of the
Top 18 Professors in Entrepreneurship by Fortune Small Business. He is also a Fellow of
the Beyster Institute in the Rady School at University of California, San Diego.
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Toshio Nishiguchi
Mr. Nishiguchi has over 35 years of experience in agriculture, farming, packaging and
selling produce. Tosh has managed farms that had more than 400 employees and was
responsible for the production, harvesting, packing, shipping and sale of strawberries,
tomatoes, bell peppers, green beans, corn and watermelon. Tosh also has experience as a
produce department manager were he was responsible for the staff, training them,
ordering produce, receiving and preparing the produce, display and inventory
management.
Tosh has extensive knowledge regarding all aspects of growing, propagation, plant and
pest identification. Tosh's expertise and knowledge of farming will help us prevent
typical farming issues and ensure a well run efficient farm to market operation. Tosh
speaks fluent Spanish, Japanese and English. Tosh attended Cal Poly San Luis Obispo in
the field of Agricultural and Horticultural field.
Robert Noble Architect, AIA, LEED AP
Mr. Noble is an architect, environmental designer, industrial designer and environmental
technology entrepreneur, and has been the recipient of numerous regional and national
awards for his industrial and architectural designs, and green technology innovations.
Over his 29 year career, he and/or his work has been awarded Entrepreneur Magazine's
Environmental Innovator of the Year, the Edison Award for Environmental Achievement
and "Best of What's New" – Popular Science 100 Best of 1993, and awards from the
American Institute of Architects, the Urban Land Institute and many others.
He attended UC San Diego, UC Berkeley, Harvard Graduate School of Design, Harvard
Business School, and Cambridge University Graduate Department of Architecture. He is
well known in the San Diego area as the past CEO of Tucker Sadler Architects, having
led the turn-around and rebuilding of the 50 year old firm into the leading sustainable
design firm in the region.
He is Founder and CEO of Envision Solar, which is positioned as the leading firm
worldwide at the convergence of the solar photovoltaic, building/real estate and
transportation industries. Envision Solar designs, engineers and installs photovoltaic solar
parking arrays and other commercial and residential Solar Integrated Infrastructure and
Building Systems worldwide, including LifeVillage™ self-sufficient decentralized power
production facilities for developing nation and other markets.
He is Past Chair of the US Green Building Council of San Diego, Past President of the
American Institute of Architects of San Diego, Chairman of the Board of the California
Center for Sustainable Energy, past Chair of the California American Institute of
Architects Committee on the Environment, past Board Member of The Old Globe
Theatre, Advisory Board Member of Clean Tech Institute and past Chairman of the San
Diego Downtown YMCA.
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He and his work have been published extensively, and he has written over 40 articles
regarding sustainable design, USBGC LEED™ Certification, emergency shelter for
disaster relief, renewable energy and many other subjects. He has been a highly
committed and vocal local, regional and national advocate of environmentally
responsible manufacturing, design and planning, and low-cost, emergency and affordable
housing for over 25 years.
Harvard University Graduate School of Design
Cambridge University Graduate Department of Architecture
Harvard University Graduate School of Business Administration
University of California at San Diego and Berkeley, Undergraduate Studies
Bob will be a great help to us in developing vertical roof top farms as well as the
designing of our BIGS project (Building Integrated Growing Systems; multi story
vertical growing). Bob's entrepreneur and business skills will be a great help too.
Mark Juergensen
Mr. Juergensen has over 20 years of experience in developing, building, managing and
commercializing energy projects including renewable and traditional technologies. This
includes proven technologies such as gas turbines and solid fuel projects as will as
product development in advanced solar, engine technology, and energy software. Mr.
Juergensen specializes in power generation, asset management, project finance, venture
capital, start-ups, technology commercialization, product development, mergers and
acquisitions, clean tech, sustainability, renewable energy.
Mr. Juergensen is on the Board of Directors of CleanTech San Diego, a non-profit 501(c)
6 committed to form and foster energy and environmental technology cluster in the San
Diego region. CleanTech membership consists of City and County governments, research
institutions, industry, professional service providers, and capital providers; Board
member of Clean Ventures, Clean Ventures is a clean technology business accelerator
based in San Diego region; Board member Los Angles Power Association, LAPA is a
non-profit association providing a venue for major organization in Southern California to
discuss energy supply issues. Board member Sterling Energy, one of the original
members of this leading power generation management services firm.
Home Town Farms will utilize Mr. Juergensen's extensive experience in renewable and
traditional power generation technologies to ensure that Home Town Farms uses
renewable energy technologies to maximize energy efficiencies and cost savings.
Steven A. Brody, M.D., Ph.D.
Dr. Brody is a Reproductive Endocrinologist and Medical Director of Reproductive
Endocrine Associates in La Jolla, California. He is an internationally-recognized clinical
specialist, lecturer and researcher in nutritional genomics, anti-aging, menopausal
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medicine and neuroendocrinology. He also has a special interest in the role of nutrition in
assistant reproduction and developmental biology.
Dr. Brody received his Bachelor's degree from Brown University in Providence, RI and
his medical degree from Washington U. School of Medicine in St. Louis. He is the only
physician in the U.S. who is Board Certified in the following four specialties: Internal
Medicine, Endocrinology & Metabolism, Obstetrics & Gynecology and Reproductive
Endocrinology & Infertility. He trained at Yale-New Haven Hospital, N.I.H., Stanford
University School of Medicine and Baylor College of Medicine, respectively.
In the past Dr. Brody has served in both leadership and advisory capacities. He was
Associate Director of Reproductive Endocrinology at Baylor, Director of GYN Surgery
at Ben Taub Hospital in Houston, Vice Regent of the International College of Surgeons,
and Medical Director of Reproductive Endocrinology at Alvarado Hospital in San Diego.
Dr. Brody served in the military as a Lieutenant Commander (surgeon) in the U.S. Public
Health Service.
Dr. Brody is President of Phi Beta Kappa Epsilon Association in San Diego. At UCSD
School of Medicine in La Jolla, Dr. Brody is an Assistant Clinical Professor in the
Division of Endocrinology & Metabolism. He is a Staff Physician at Alvarado Hospital
and at Scripps Memorial Hospital in La Jolla. Dr. Brody would like to publish papers
based on vine ripened organic produce that has more nutrients than traditionally grown
produce and its' effect on people's over all health.
Chef Gordon Smith
Gordon Smith has over 35 years combined experience in organic food and farming both
as chef and company owner. A California native, after graduation from Sacramento State
with a B.S. in Communications, he entered the restaurant business, training under
legendary chefs including Michel Stroot of the Golden Door. Chef Gordon became a
respected specialist in spa cuisine and was instrumental in opening Deepak Chopra's
Center for Well Being in La Jolla, California. Afterwards, he served as executive chef for
major resorts in California.
During Los Angeles Olympics, he worked as kitchen manager to help plan, organize and
feed healthy meals to 7,000 athletes in addition to catering presidential and mayoral
events. At the Culinary Olympics in Frankfurt Germany, Smith was part of the American
Natural Food Team which won two Silver Medals. A long time advocate of organics, his
company, Gordon's Specialty Produce, serviced independent markets in San Diego with a
wide variety of gourmet vegetables. He was thrice awarded Best Chef of North County
for his own restaurant, Basil Street Cafe in Encinitas where he also owned a full service
catering business. As an accredited teacher for regional occupations program, he gave
demonstrations on the use of fresh herbs in food preparation and taught cooking to
special education students. He has been a private chef for clients that include First Lady
Betty Ford, Michael Eisner, Saudi Prince Fahad and James Garner.
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For 5 years, Gordon was the backstage kitchen manager for Farm Aid. An early
proponent of Community Sponsored Agriculture, he helped launch a CSA at Seabreeze
Organic Farm with farmer/owner, Stephenie Cauglin. His interest in preserving the small
farmer led him to found Slow Food San Diego. He served a four year term as Governor
of Slow Food Southern California and was twice selected as a delegate at the Slow Food
Terra Madre, an international conference of food communities from 150 countries united
by a mutual goal of global sustainability. Currently, Gordon is co-owner of Vale View
Farm in Vista, California which specializes in vertical growing. Chef Gordon's reputation
as a top Chef and local food advocate will be instrumental to Home Town Farms in
developing relationships with top Restaurants, Resorts, Spas, Wellness Centers and "local
food" community groups.
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Use of Proceeds
Round B Home Town Farms is raising round B funds. Round B is to build a pilot Retail Farm.
Upon completion of Retail Farm 1, round C funding will be triggered. Round C funding
allows for 9 additional Retail Farms to be built in San Diego County.
Home Town Farms is raising $1,575,000 million to complete the pilot Retail Farm in
Vista, CA. These funds will cover all capital and operating costs needed to bring Retail
Farm 1 to profitability.
Pilot Retail Farm CONFIDENTIAL
2013 2014 2015 2016 2017 2018
Revenues -$ -$ 1,011$ 1,046$ 1,067$ 1,088$
Cost of goods sold - 45 303 311 317 323
Gross profit - (45) 709 735 750 765
% 0% 0% 70% 70% 70% 70%
Farm Overhead
Credit card fees - - 7 9 9 9
Utilities - 2 41 41 42 43
Repair and maintenance - - 6 6 6 6
Rent 20 88 85 85 88 90
Site incidentals - 7 23 23 23 24
Insurance - 4 24 26 27 27
Consulting - 1 1 2 2 2
Advertising and promotion - 1 12 12 12 12
Total Farm Overhead 20 102 199 205 209 214
% of Revenues 0% 0% 20% 20% 20% 20%
Corporate Overhead
Salaries and benefits 52 121 160 160 160 160
Consulting - - 6 6 6 6
Legal and accounting 2 4 14 14 14 14
Office expenses 2 2 3 3 3 3
Telephone/internet 0 1 6 5 6 6
Advertising and promotion 2 3 12 12 12 12
Insurance 2 3 7 7 7 8
Licenses and Permits 1 1 1 1 1 1
Other Misc 1 2 2 2 2 2
Total Corporate Overhea 62 136 211 211 212 213
% of Revenues 0% 0% 21% 20% 20% 20%
EBITDA (82) (283) 298 319 329 338
Depreciation - 16 65 97 97 97
Income taxes - - - - - -
Net income (loss) (82)$ (299)$ 233$ 222$ 232$ 241$
% 0% 0% 23% 21% 22% 22%
Cash flows
Invested capital (700) (76) (1,581) - - - -
Net free cash flows AT - (82) (283) 298 319 329 338
Terminal Value - - - - - - 2,029
(700) (157) (1,864) 298 319 329 2,367
Internal Rate of Return (IRR) 5.03%
Internal Rate of Return (IRR) - Adjusted 9.16%
Adjusted for approximately $400k of expenses incurred while pursuing first potential location of farm. These costs would not be incurred for subsequent farms.
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Confidential © 2014 Home Town Farms, LLC
Invested capital 2,357$
Capital equipment (1,729)
Cash provided by operations 744
Ending cash 1,372$
Home Town Farms plans to raise $11.3 million for round C. Round C will cover all
capital and operating cost needed to bring Retail Farms 2 through 10 to profitability and
implement Home Town Farms license/franchising program.
10 Retail Farm Rollout Model
CONFIDENTIAL
2013 2014 2015 2016 2017 2018
Revenues -$ -$ 1,371$ 9,536$ 20,344$ 20,751$
Cost of goods sold - 45 392 2,433 5,136 5,239
Gross profit - (45) 978 7,103 15,208 15,512
Gross Profit % 0% 0% 71% 74% 75% 75%
Farm Overhead
Credit card fees - - 10 68 144 146
Utilities - 2 49 228 466 479
Repair and maintenance - - 8 49 103 106
Land Lease 20 88 125 1,019 2,199 2,264
Telephones - - 2 42 96 99
Site incidentals - 7 29 167 351 361
Office Expense - - 1 34 77 79
Insurance - 4 28 111 219 226
Consulting - 1 2 15 33 34
Advertising and promotion - 1 34 383 793 816
Total Farm Overhead 20 102 286 2,117 4,479 4,612
% of Revenues 0% 0% 21% 22% 22% 22%
Corporate Overhead
Salaries and benefits 52 121 451 1,194 1,204 1,240
Consulting - - 8 13 13 13
Legal and accounting 2 4 18 30 30 31
Office expenses 2 2 6 11 11 11
Telephone/internet 0 1 9 23 26 27
Advertising and promotion 2 3 10 12 12 12
Insurance 2 3 13 29 32 33
Licenses and Permits 1 1 1 1 1 1
Office Rent - - 15 60 60 62
Research and Development - - - 59 84 87
Other 1 2 2 2 2 2
Total Corporate Overhead 62 136 533 1,435 1,476 1,520
% of Revenues 0% 0% 39% 15% 7% 7%
EBITDA (82) (283) 159 3,551 9,253 9,380
Depreciation and amortization - 16 75 392 803 803
Income taxes - - 12 1,264 3,380 3,431
Net income (loss) (82)$ (299)$ 72$ 1,896$ 5,070$ 5,146$
% 0% 0% 5% 20% 25% 25%
Cash flows
Invested capital (700) (76) (1,581) (3,500) (7,800) - -
Net free cash flows - (82) (283) 147 2,287 5,873 5,949
Terminal Value - - - - - - 56,281
(700) (157) (1,864) (3,353) (5,513) 5,873 62,230
Internal Rate of Return (IRR) 73.40%
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Invested capital 13,657$
Capital equipment (18,528)
Cash provided by operations 13,716
Ending cash 8,844$
Funding and Build-out Timeline
THIS DOCUMENT CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS
WITH RESPECT TO THE FINANCIAL CONDITION, RESULTS OF OPERATIONS
AND BUSINESS OF THE COMPANY, INCLUDING, WITHOUT LIMITATION,
STATEMENTS CONCERNING THE COMPANY’S STRATEGIC PLANS, THE
SCOPE OF THE COMPANY’S INTELLECTUAL PROPERTY PROTECTION,
ANTICIPATED EXPENDITURES, THE NEED FOR ADDITIONAL FUNDS AND
OTHER EVENTS AND CIRCUMSTANCES DESCRIBED IN TERMS OF THE
COMPANY’S EXPECTATIONS OR INTENTIONS. USE OF THE WORDS
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Confidential © 2014 Home Town Farms, LLC
"ANTICIPATES," "BELIEVES," "ESTIMATES," "EXPECTS," "INTENDS," "PLANS"
AND SIMILAR EXPRESSIONS HEREIN ARE INTENDED TO IDENTIFY
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES
AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-
LOOKING STATEMENTS. ALL OF THESE FORWARD-LOOKING STATEMENTS
ARE BASED ON ESTIMATES AND ASSUMPTIONS MADE BY THE COMPANY
WHICH ARE INHERENTLY UNCERTAIN. THEREFORE, RELIANCE SHOULD
NOT BE PLACED UPON SUCH ESTIMATES AND STATEMENTS. NO
ASSURANCE CAN BE GIVEN THAT ANY OF SUCH ESTIMATES OR
STATEMENTS WILL BE REALIZED, AND IT IS LIKELY THAT ACTUAL
RESULTS WILL DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY
SUCH FORWARD-LOOKING STATEMENTS.
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