2. Our Story
This is an offering for investment. Please understand all the risks before an investment decision is made.
We were strapping our youngest son into his car seat one day when
he accidentally dropped his pacifier in a puddle, just outside the car
door. It was foul with all kinds of yucky germs and dirt. The 10-
second rule did not apply. We didn't have time to run back into the
house to wash it. And even if we did, what would we clean it with?
Just water? That’s not enough. Bleach or soapy dish washing
liquid? No way! Not for something that goes in our baby’s mouth.
So, we did what any savvy parent would do: wiped it off on
Mommy’s jeans and kept going. Don't worry, we didn't give it back
to our son but we did have an “Ah ha!" moment. We realized the
need for a child-friendly, naturally based cleaner that would kill
bacteria and be safe for our “kids-on-the-go.” So Sprounce was
born. All Earthaby products offer the same level of convenience and
safety as Sprounce to you and your beautiful family.
3/19/2011 Earthaby Inc. Copyright 2011
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3. This is an offering for investment. Please understand all the risks before an investment decision is made.
• Safe natural cleaner for kids’ stuff
• Perfect for use on mouthing toys, high chairs, strollers, toys
• Contains botanicals proven to kill bacteria
• Non-toxic; safe to use on hands
• Alcohol free, Bleach free, Paraben free, Toxin Free, Worry Free
• Travel friendly 4 oz. on-the-go size
• 100% PCR PET bottle
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4. Earthaby, Inc. Team
This is an offering for investment. Please understand all the risks before an investment decision is made.
• Founders - Brock Christoval, Ashli Christoval
• Production- Miles Kaegi, Brock Christoval
• Financial- Kaufman Business Solutions
• Marketing – Vital Design
• Sales – Independent Reps
• Legal- Eric Goodman
• Advisors – Bocchi Labs, Ross Organics, SCORE
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5. Strategic Relationships
This is an offering for investment. Please understand all the risks before an investment decision is made.
PACKAGING ON DEMAND
BOCCHI LABS ROSS
ORGANICS
CONTRACT
LABELING LABELTRONIX
3/19/2011 Earthaby Inc. Copyright 2011
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6. IP
This is an offering for investment. Please understand all the risks before an investment decision is made.
• Formulation is a Trade Secret
• Sprounce is our Trademark
• Letter-mark for Sprounce planned
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7. Testing
• Conducted in 2009 by Micro Quality Labs
This is an offering for investment. Please understand all the risks before an investment decision is made.
“Based on the results, the preservative is
effective in exerting its antimicrobial
effectiveness.”
• Kill rate testing planned for May 2011
• Repeat Insult Patch Test (RIPT) test
planned for June 2011 by Cantor
Research Labs
• Acute Oral toxicity test planned for July
2011 by Product Safety Labs
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8. Series B Seed Funding Areas
$10k ~ $25k
This is an offering for investment. Please understand all the risks before an investment decision is made.
0-6 months
• Sales/Marketing • Production
– Sales Team – Labels
– ABC Show – Bottles
– Award recognition – Caps
– Marketing on blogs – Ingredients
and on select – PoP Display
magazines – Testing
– New Product
• Working Capital
Development
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9. Known Risks
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• Minimum Order Quantities
• Distribution/Shelf Space
• Building a Trusted Brand
• Competition from lesser quality brands
3/19/2011 Earthaby Inc. Copyright 2011
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10. Unknown Risks
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• New Product Development
• Supply Chain Interruption
• Legal
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11. Market Size
This is an offering for investment. Please understand all the risks before an investment decision is made.
• Baby Products
$30 Billion1
• Baby Toiletries
$645 Million2
• Green products
$2.5 – 3.1 Billion3
1 By Jaclyn Giovis, South Florida Sun-Sentinel
2 Euro Monitor Report
3
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12. Target Markets
This is an offering for investment. Please understand all the risks before an investment decision is made.
Young “Stacy” –
“Jill” –The “Green/Organic” Baby Boomer The savvy
Adult
busy Mom Parents Grandparents metro-mom
Parents
26-45 20-34 20-45 47+ 33-50
8/18/2010 Earthaby Inc. Copyright 2011
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13. Market Validation
This is an offering for investment. Please understand all the risks before an investment decision is made.
•Currently in 5 Stores
•Toy Town, Ladera Ranch
•Milkalicious, Aliso Viejo
•Belly Sprout, Fullerton
•Kissui, Redlands
•Green Life, Santa Monica
•Interest from
•Diapers.com
•Bergstrom’s
3/19/2011 •Right Start Earthaby Inc. Copyright 2011
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14. Financial Projections
This is an offering for investment. Please understand all the risks before an investment decision is made.
600000
500000
400000
Dollars
300000
200000
100000
0
2009 2010 2011 2012 2013
-100000
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15. This is an offering for investment. Please understand all the risks before an investment decision is made.
NATURAL NATURAL NATURAL NATURAL CHEMICAL NATURAL NATURAL
BASED BASED BASED BASED BASED BASED BASED
TOY TOY TOY SAFE
CLEANER MULTI- MULTI- MULTI-PUR MULTI-
CLEANER CLEANER PURPOSE PURPOSE POSE PURPOSE
CLEANER WIPE CLEANER CLEANER
SURFACE SURFACE HARD
CLEANER CLEANER SURFACE
CLEANER
TRUSTED TRUSTED EXCITING NEW TRUSTED PROVEN TRUSTED TRUSTED
BRAND BRAND BRAND BRAND BRAND BRAND BRAND
NICHE
NICHE NICHE OPEN MARKET MARKET
MARKET MARKET
LIMITED LIMITED LIMITED MASS MASS WIDE LIMITED
DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION
HOME USE HOME USE TRAVEL/HOM HOME USE HOME USE HOME USE HOME USE
E USE
KILLS
SAFE ON SKIN EVERYTHING
NO RINSE
NEEDED
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17. This is an offering for investment. Please understand all the risks before an investment decision is made.
Vision
Delivering safety, comfort, and convenience to parents through our
products
Credo
Earthaby was created to provide parents with products that are eco-
friendly, safe to all, and highly effective.
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18. Risk Mitigation
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Known Unknown
• MOQ – We have been able to negotiate with • NPD – We will have to innovate quickly
suppliers to get either a discount or to waive the when the competition launches a directly
MOQ competing product or something that
makes our product obsolete
• Distribution – We are submitting applications to
work with Select Nutrition Distributors and
Super Natural Distributors • Supply Chain – We are sourcing oils that
are mostly from Australia which has the
• Branding – We recognize that we need to build potential to be impacted by world events
a trusted brand in this market. Our goal is to and natural disaster. The local distributor
continue working with bloggers, seek may be able to help mitigate some of the
recognition from a trusted source such as a risks by stocking some long lead time oils
doctor or parental seal. We plan to apply to Dr.
Toy green product company
• Legal – We have a $2 million policy
• Competition – We have to emphasize the which should cover most incidents but
premium botanicals in our product to make it there is risk involved when you’re dealing
stand out. Our value proposition is not just with a product that is used on babies.
another “hand sanitizer” but a premium cleaner Our best way to mitigate this risk is to
for baby items and everyday use make genuine claims and communicate
with complaining customers
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19. 3/19/2011
Earthaby Inc. Copyright 2011
$1.30 NET
$2.50 WHS
$1.20 COST
$4.99 MSRP
This is an offering for investment. Please understand all the risks before an investment decision is made.
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20. 3/19/2011
Earthaby Inc. Copyright 2011
BLOGS
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21. Why Now?
This is an offering for investment. Please understand all the risks before an investment decision is made.
• The Natural and Organic product industry is
growing rapidly
• Eco friendly products and businesses are the
new trend
• We see a market gap for this type of product
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22. This is an offering for investment. Please understand all the risks before an investment decision is made.
Growth Model
• Small Scale growth model
– Start small and local
– Take sale data to regional store chains
– Take sale data to national store chains
– Take sale data to international store chains
• Local Distribution
– Boutiques
– Specialty Grocers
– Independent Toy Stores
– Online "Green" Stores
– Hospitals, Health Offices
– Daycares
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23. Packaging
This is an offering for investment. Please understand all the risks before an investment decision is made.
• 100% Post Consumer Resin (PCR) PET
4oz bottle - New industry standard
• 24-410 fine mist sprayer (common item)
• Shipped in boxes made of recycled board
• Point of Purchase (POP) display
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24. This is an offering for investment. Please understand all the risks before an investment decision is made.
$0.30 Formulation
$0.35 Packaging
$0.45 Filling
_____________
$1.10 COST
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25. 3/19/2011
X 2 = 1 Unit
X 12 = 1 box
Earthaby Inc. Copyright 2011
X 100 = 1 Pallet
This is an offering for investment. Please understand all the risks before an investment decision is made.
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26. Process
This is an offering for investment. Please understand all the risks before an investment decision is made.
Sprounce
Purchase
Distribute to stores/fulfill online orders
labels, bottles, sprayers, ingredients, boxes, PoP displays
Labeled bottles sent to Filler - Fill bottles, pack boxes Order labeling service
Bottles, sprayers, & labels sent to labeler
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27. 8/18/2010
Earthaby Inc. Copyright 2010
This is an offering for investment. Please understand all the risks before an investment decision is made.
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28. Pipeline
This is an offering for investment. Please understand all the risks before an investment decision is made.
• Q3 - Larger Size Packaging (8oz)
• Q4 - Clothes Stain Remover
• Q4 - Breast Pump Cleaner
• Personal Fitness Cleaner
3/19/2011 Earthaby Inc. Copyright 2011
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Editor's Notes
Our StorySolutionCompanyExpectations
Founded Earthaby, Inc in Feb. 2009 as a California C corporation
Developed by our contracted bio-chemist that also conformed to Whole Foods standards Designed toMoisturizing botanicalsSafe on toys Safe for babySoothing on skinFortified with mineralsAnti-IrritantAnti-Bacterial
We are looking for a chemist that we can contract with for future product developmentWe have plans to develop a sales team using independent reps Our legal council specializes in trademarks so we may explore finding more council in the area of business structure
We make reasonable effort to ensure the formulation is protected and encrypted at all timesAs recommend by our attorney, we will also file a letter mark for the word SprouncePlanning to register Sprounce with the USPTOLEMA is a patented brand of Coast Biologicals and
Full Challenge Report AvailableWe need to test the new formulation with the Australian Myrtle OilChallenge test and kill rate efficacy will cost $500
12 items per box is common in the industryMOQs can vary depending on store size: Independent store/office – 1 unit Regional Chain – 2 units each store Distributor – 1 pallet National Chain – 4 Units per store
ScalabilityExclusive ContractsExponential Resources on industry trendsRaw Materials Lead times:Shipping Boxes ~ 2 days Labels ~ 1 weekPoP Display ~ 3 weeks Bottles/Sprayers ~ 3 weeksIngredients ~ 3 weeksManufacturing Lead Times:Labeling ~ 3 months (may be shorter with orders <1m)Batching/Filling ~ 2 weeks
The new label will include:Less graphics and more clear areaMore selling pointsSeal of approval from an organizationConcise ingredient declarationSmaller bar code
Personal Fitness Cleaner is a spin off brand that has to be market tested. The
