We are seeking to raise up to $1,069,992.00 in this offering through Regulation Crowdfunding, with a minimum target raise under Regulation Crowdfunding of $10,010.00. We have agreed to pay Start Engine Capital LLC (“Start Engine”), which owns the intermediary funding portal StartEngine.com, a fee of 6.0% on all funds raised. The net proceeds of this offering, whether the minimum target amount or the maximum amount is reached, will be used for
Research and Development (5%): R&D activities will focus on developing future generations of our primary product, the GeoOrbital wheel, as well as developing alternative electric vehicles based on the GeoOrbital platform.
Funding Inventory (40%): Inventory funding includes the costs of developing methods and tooling for larger scale production and cost reduction as well as funding physical inventory of our products that we would sell to the end user
Sales and Marketing (24%): Sales and Marketing consist primarily of social media marketing as well as sponsoring and attending relevant events and showcases to promote GeoOrbital.
and Operating Expenses (including compensation) (15%): Operating expenses include payments to employees and contractors as well lease and other operating expenses.
Repayment of convertible notes: In 2016 we issued $150,000 in principal number of convertible notes which are immediately due and payable. However, as expected, a majority of holders of the notes are electing to convert these notes into shares of Common Voting Shares. In addition, we have another $565,000 in principal number of convertible notes coming due in December 2018. Although, we expect convertible note holders to convert to Common Voting Shares, some might elect not to convert and if are unable to extend the maturity of these notes we might choose to use a portion of this raise to repay these convertible notes and retain the associated Common Voting Shares.
