1. Not your grandfather’s firewood.
Changing lifestyles and environmental regulations mean consumers’ firewood needs have changed.
Firewood USA uses unique processing technology to produce quality boxed firewood meeting the
demands of today’s consumers, including convenience, ease of use and good value. This is an opportunity
to invest in a company with the technology needed to differentiate its product in what has been a
commodity market. This competitive advantage will allow Firewood USA to produce quality boxed
firewood and develop a brand recognized and sought by consumers willing to pay a premium price.
The Numbers
Consumer Needs Fulfilled
Home fireplace market:
• Available in retail stores
• Easy open carton with carrying handle
• No bugs - safe to store indoors
• Lights easily and burns cleanly
• Creates beautiful, crackling fire with
pleasing aroma
• Good value even at premium price
• Carton can be burned or recycled
• Environmentally friendly, renewable
energy source
Camping market:
• Available at campgrounds
• No transport restrictions within the
continental U.S.
• Enough for one to two nights camping
• Easy open carton with carrying handle
• Lights easily
• Burns clean and beautifully
• Carton can be burned or recycled
• More fun and a better camping
experience than sitting around the
Coleman stove
• Environmentally friendly, renewable
energy source
Why invest in Firewood USA?
Reinventing a traditional business to gain
competitive advantage
Firewood USA’s unique production technology allows
lower costs, plus the ability to distribute throughout
continental U.S. without Department of Agriculture
restrictions. It also offers the ability to brand the
product and command premium prices.
Ability to quickly be market leader
The company has first mover advantage in the
premium firewood market as well as scalable
production and distribution capabilities.
Fragmented competition
There are no major producers or brand names in the
firewood business. Traditional suppliers of small
firewood bundles distribute product of uneven quality
in inconvenient and environmentally unfriendly
packaging.
Efficient use of assets
The home fireplace and camping markets have
complementary demand periods permitting year
round production at relatively constant levels.
Helping the Ashland area economy
The company will create jobs and help strengthen the
economy of Ashland, WI and vicinity.
2. Potential Market
Market Demand cf/year Market Share Sales cf/year Sales $/year
Ashland ADI 26,642 20.0% 5,331 $ 17,166
Wisconsin 5,063,998 15.0% 759,600 2.445,912
Midwest 55,078,607 2.2% 1.211,729 3.901,767
U.S. 216,093,431 1.0% 2,213,009 7,125,889
Total 276,262,678 1.5% 4,189,669 $ 13,490,734
Note: cf = cubic feet
Pro Forma Financial Highlights
Income Statement
Year 1 Year 2 Year 3
Revenue $1,419,435 $3,748,943 $5,845,800
Cost of Sales 1,056,398 2,508,538 3,858,350
Gross Profit 363,037 1,240,405 1,995,450
Expenses 261,782 622,035 721,827
Net Profit $ 101,255 $618,370 $1,273,623
Balance Sheet
Year 1 Year 2 Year 3
Assets $2,657,421 $2,988,977 $3,684,229
Liabilities 886,165 815,782 683,178
Equity 1,771,255 2,173,196 3,001,051
Potential Return on $25,000 Investment (2,500 shares)
Year 1 Year 2 Year 3
Investment Amount ($25,000) $0 $0
Cash Distribution1
0 736 4,497
Value of Investment2
7,364 44,972 92,627
ROI3
29% 153% 209%
1
Estimated at 40% of previous year’s earnings, beginning in year 2.
2
Estimated at 4 times earnings. Note that there is a 36-month non-redemption clause on stock.
3
Cash distribution plus change in value of investment from previous year, divided by $25,000 investment
3. “Firewood USA aims to take a commodity product and
transform it into a name brand with real, sustainable
competitive advantages. That transformation – along
with Gary Larson’s innovations repurposing proven
technology to create a highly efficient process – is
what makes the potential of this company so great.”
Rick Moran
Marketing Consultant
“I prepared the pro forma financial information for
Firewood USA based on information provided to me by
Gary J Larson, President. The information provided
appears sound and conservative. The Company will give
Northwestern Wisconsin industry much needed job
creation and support the local logging industry.”
Al Susedik, CPA
Financial Consultant
“A well thought out business using modern technology to
produce a product that is environmentally friendly,
pest free and able to legally be transported to and
used in any campground in the country. Firewood USA is
an excellent idea ready for implementation with an
attractive return on investment.”
Cliff Grand
Experienced Ashland Area
Business Owner
“Firewood USA is a Win-Win-Win! It makes perfect sense.
Make use of abundant firewood resources, make them safe
using sustainable green processes, provide the product
at a great price, and respect our environment in the
process! I am excited by the innovative green natural
resource benefits, and the people behind this company.
You can't go wrong with this winning combination..”
Greg Scholz
Information Technology
Consultant
4. The Business Model
Management
Gary J. Larson is the president and founder of the company.
He has a wide range of experience spanning a combined
44 years in manufacturing, marketing, distribution and
business management. The majority of those years were
spent in the design, operation and sales of high production
hydraulic industrial machinery – experience crucial to the
successful implementation of a cost efficient, highly
automated firewood processing facility. His experience
includes three previous startup firms.
Gary is a life long resident of the Ashland area interested in
both building a successful, profitable business and bringing
new jobs to the area to help grow Ashland’s economy. He is
dedicated to introducing green technology and business
practices as a part of the Firewood USA’s goal of delivering
the highest quality natural boxed firewood on the market.
The company philosophy is to do better for shareholders by
doing good for the environment and community.
Funding Sought
Firewood USA is seeking $825,000 in equity financing with a minimum investment of $25,000 per
investor. New investors will receive one share for every $10 invested. Note that there is a 36-month
non-redemption clause on stock.
2310 Island Lake Road, Barnes, WI 54873 Cell 218 348-2120
Green Business Practices
• USDA certified bug free firewood
• Firewood is renewable resource
• Packaging is recycled cardboard with
environmentally friendly soy ink
• No plastic or metal waste in package
• Waste pulpwood recycled to fuel kilns
• No packaging or production waste sent to
land fills
• Energy efficient trailer load shipping to
wholesalers
• Other shipments by common carrier for
lower carbon footprint