Testimonials!

Earning a Return

The amount you may earn depends on the type of investment contract the company is offering.

$10M valuation cap
20% interest

There are four classes on Garage Sale Soft LLC:

Debt. Some local businesses offer a simple loan or revenue share. A simple loan, just like your car loan, has a fixed repayment schedule known in advance. Unlike a loan, a revenue share returns a fixed amount of money (such as 2X your investment), but the time it takes to repay depends on how well the business does. The faster the business grows revenue, the faster you earn a return, and the higher your effective interest rate.

Convertibles. Most early-stage technology startups use a Convertible Noteor Simple Agreement for Future Equity. These will convert your investment to stock at a later date if the company raises a “priced round” from major investors, most often venture capitalists. At this point, you are a shareholder owning equity, and you earn a return if the value of that stock goes up over time, and you are able to sell it.

Stock, No Dividends. When a startup is at a stage where they can afford to pay lawyers tens of thousands of dollars, they will do a “priced round”. Like the stock market, you are buying equity at a fixed price per share (or unit for LLC’s). If the company is successful, the value of the stock can increase with each subsequent round of financing, until the company is acquired or goes public. Then you earn a return.

Stock, Dividends. While a tech startup almost never offers dividends, a later-stage local business – such as a brewery opening a second location – often will. The type of dividend can vary. Some might offer a fixed dividend per share per year. Some might offer a percentage of profits. A common scenario is also to “swap” the dividend after your investment is repaid. For instance, a brewery might share 80% of its profits until the investors are repaid, and then 20% thereafter in perpetuity.

The Company is in the deployment stage. It has limited revenues to date. There is no assurance that the Company will be able to record profits in the future. The Company is also faced with risks inherent in operating a new business. The risks inherent in operating a new business such as the Company’s include: (i) difficulties and delays often encountered in developing, producing and commercializing new, complex technologies; (ii) developing the markets for the Company’s products and technologies; (iii) transitioning the Company’s development efforts to commercialization; and (iv) attracting and retaining qualified management, sales and/or marketing and technical staff.

The Company is seeking up to $1,000,000 to fund product development, marketing and operations. Capital requirements associated with product development, marketing and operations have been and will continue to be substantial. The Company may need to raise additional funds in the future in order to fund operations, pursue sales growth opportunities, develop new products or services, respond to competitive pressures, or acquire other businesses. The Company may not be able to obtain additional financing when needed, or that, if available, such financing may not be available on acceptable terms. If additional financing is needed the interests of the holders of Unsecured Convertible Promissory Notes (the “Notes”) could be substantially diluted. If adequate funds are either not available or not available on acceptable terms, the Company will be unable to accomplish its objectives. Any inability to do so would have a negative effect on its business, revenues, financial condition and results of operations. If additional funds are raised through the issuance of equity or convertible debt securities, the potential equity ownership of the holders of the Notes will be diluted. Moreover, these securities may have powers, preferences and rights that are senior to those of the rights of the holders of the Notes

The Company will continue to experience significant operating losses as it expands its network, engages in additional development efforts, and grows its marketing and sales force in an effort to commercialize its products. The Company expects losses until such time, if ever, that its revenues from the sale of its products and services cover its expenses. Achieving and maintaining long-term profitability depends on successfully commercializing its products and technologies. The Company cannot assure you that it will be able to achieve any of the foregoing or that it will be profitable even if it successfully commercializes its products.