Funds raised will be strategically allocated to fuel our growth and impact. We will enhance our advertising and marketing efforts to increase brand awareness and reach more customers, highlighting our mission and premium offerings. Additionally, we will increase production of our current products to meet growing demand and introduce exciting new products to the market, expanding our portfolio. Furthermore, a portion of the funds will be used as working capital, ensuring smooth operations and allowing us to maintain our commitment to quality and customer satisfaction. Through these initiatives, we aim to strengthen our position in the market and further our mission to support veteran and first responder mental health and suicide prevention. 

Main Street Bond Platform Expenses:

As intermediary, Community Bond, LLC shall receive 5% of the amount raised in the Offering, a $5,000.00 onboarding fee, and will be reimbursed for all expenses incurred by the Intermediary on behalf of the Company, including a $5 per Investor processing fee charged the Intermediary’s technology provider, Escrow Fees, and all fees associated with the use of any credit card or alternative considerations processors. The Company is charging each investor an Investment Fee of 2.85% to partially cover Offering Costs associated with each investment. The Investment Fee for credit card transactions is increased to 6.00% to cover the higher cost the Company incurs when such transactions are processed.

The table below lists the beneficial owners of twenty percent (20%) or more of the Company’s outstanding voting equity securities as of the date of this Form C, calculated on the basis of voting power, as well as the ownership .

The Company is offering Revenue Sharing Bonds, which we refer to as “Bonds” or “Securities”. The rights and obligations of the investors in this offering are governed by the Revenue Sharing Bond Agreement, which each prospective investor agrees to by signing the Subscription Agreement, attached hereto as Exhibit E. Below are summaries of the Revenue Sharing Bond Agreement, which are qualified by the actual terms of the Revenue Sharing Bond Agreement.

Summary of Terms.

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, Investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These Securities have not been recommended or approved by any federal or state securities commission or regulatory authority. The Securities should only be purchased by persons who can afford to lose all their investment.

Before making an investment decision with respect to the Securities, we urge you to carefully consider the risk factors described set forth in the Section entitled “Risk Factors” in our Form C.

For example, the Company’s business model involves manufacturing of spirits and coffee, which creates substantial supply chain challenges due to various regulations that the Company may not be able to overcome. These products are at an unusually high risk of being stolen, set on fire, lost in transit, or held indefinitely. Products which are destroyed or held up cannot be sold, which may negatively impact the profitability of the Company and may also restrict the Company’s ability to purchase new products from its manufacturers, resulting in fewer products for sale, higher manufacturing costs, and longer wait times for consumers, all of which would negatively impact the Company, and which could cause an Investor to lose all or a portion of their investment.

The Company is closely held by its five owners, each of whom play a role in its business, and each of whom received their Membership Interests from the Company in December 2021 (at the time of its formation) or via one off transfers from the Company’s three original founders. All securities transferred from the issuer to the original founders were transferred pursuant to Section 4(a)(2) of the Securities Act.

Other than the above referenced Membership Interests, the Company has not sold any securities within the last three years.

As a spirits and coffee retailer, we review Key Performance Indicators (KPIs) daily and weekly to assess business health. These KPIs contribute to overall business health, measured by revenue, expenses, and profit/loss, reviewed weekly and finalized monthly which include:
 

Revenue Growth Rate: Assess the percentage increase in revenue over specific timeframes to evaluate the company’s expansion. Tracking this metric helps identify growth trends and informs strategic decisions.

Gross Margin: Calculate the percentage of revenue left after subtracting the cost of goods sold. A higher gross margin indicates stronger profitability and more efficient cost control, contributing to overall financial health.

Distribution Reach: Monitor the expansion of new distribution channels and geographic locations where products are available. Widening distribution reach enhances market access, increases sales opportunities, and supports brand visibility.

Market Penetration: Evaluate the company’s market share within target segments or regions. Boosting market penetration through strategic advertising and in-store demonstrations attracts new customers, stimulates sales, and strengthens brand presence.

Brand Awareness: Measure how well consumers recognize and are familiar with 22 Salute. Increasing brand awareness fosters customer loyalty, encourages repeat purchases, and enhances competitive positioning in the market.

Sales Velocity: Analyze the rate at which products move through distribution channels and generate sales. Faster sales velocity signifies strong consumer demand and effective market acceptance, driving revenue growth.

Return on Investment (ROI): Assess the financial returns generated from marketing and promotional efforts relative to the investments made. A high ROI indicates successful marketing strategies and efficient use of resources.

Cash Burn Rate: Track the rate of cash expenditure over time. Maintaining a controlled cash burn rate ensures the company can sustain operations and pursue growth opportunities without financial strain.

Charitable Contributions Impact: Measure the percentage of sales donated to The Veterans Connection and other veteran or first responder charities. This metric reflects the company’s commitment to social responsibility, enhances brand reputation, and fosters customer loyalty by supporting meaningful causes.