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A Boring Life

High quality, chef-curated natural snack foods with hemp extract

$71,355

Raised from 293 investors

Min: $25,000

Max: $107,000

Security Offered

Convertible Note

Minimum Investment: $100

  • Participated in the Canopy Boulder Accelerator Program and received a $130,000 investment from Canopy Boulder

  • In Q2 2019, the company launched a line of hemp extract with CBD high-protein snacks in healthy and natural food grocery stores such as New Seasons, Erewhon, and Green Acres Market

  • The company’s products have been approved for distribution in 80,000 convenience stores across the country through the Asian American Trade Associations Council (AATAC) business association

  • Founders previously founded Hip Chick Farms, an organic poultry frozen food company which was distributed nationally and sold in Whole Foods, Safeway, and Targeti

Executive Snapshot

A Boring Life makes high quality chef-curated natural snack foods infused with hemp extract with CBD.  The company is the brainchild of Serafina Palandech and Jennifer Johnson, who previously founded Hip Chick Farms, an organic poultry frozen food company, started in 2013. Hip Chick products are distributed nationally and sold in grocery stores like Whole Foods, Safeway and Target.ii The duo is now focused on creating convenient, healthy snacks to support a more relaxed lifestyle by combining Omega-3 rich, high-protein nuts with the calming properties of hemp extract with CBD to meet consumer demand in the cannabis marketplace.

In Q2 2019, the company launched its line of hemp with CBD-infused snacks in supermarkets and health food and natural grocery stores such as New Seasons, Erewhon, and Green Acres Market, among others. A Boring Life’s product line of high protein and Omega-3 rich almonds and walnuts have been approved for distribution in 80,000 convenience stores across the country through the Asian American Trade Associations Council (AATAC). The company aims to strategically launch a regional roll out of its products into 10% of these stores in the near future by selecting key distributor locations. It’s also currently in talks with grocery stores, specialty stores and e-commerce platforms to expand distribution and drive sales. On July 29, 2019, the company launched its first products on Amazon,iii The Sweet & Spicy Walnuts are available in packs of threeiv and 12 pack boxes on Amazon,v while the Dark Chocolate & Sea Salt Almonds are only available in 12 pack boxes.vi The company’s 1,000 mg peppermint flavored hemp tincture is also available as well.vii  


Terms

Security Type: Crowd Note

Round Size: Min: $25,000 Max: $107,000

Valuation Cap: $3.5 million

Discount: 20%

Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $3.5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Perks

Perks

*You are investing in a Crowd Note in this Offering. Perks are meant to be a thank you from the company for investing. The perks below are not inclusive of lower dollar amount perks unless specifically identified. Perks are deliverable at the investors request, in which case they must pay a shipping fee that will be based on their state or country assuming it’s legal to ship to that destination.

$250: Boring Bones Gummies for dogs and A Boring Life “Boring AF” fanny pack stuffed with nuts

$500: A Boring Life Starter Kit: 2 bags of each flavored nut, a bottle of 1,000 mg hemp extract tincture, and bag of Boring Bones Gummies for dogs

$1,000: A Boring Life picnic blanket with picnic basket stuffed with Chef Jen’s favorite snacks and wine

$2,500: Mt. Hood adventure backpack stuffed with A Boring Life’s snacks and 1,000 mg hemp extract tincture for your adventure

$5,000: A Boring Year: one case of nuts per month, one 1,000 mg hemp extract tincture per month, and one case of Boring Bones Gummies for Dogs

$10,000: Two round-trip tickets to visit the Boring Life Farm + a gift bag of each product

$20,000: A Boring Life’s executive chef, Jennifer Johnson, will come to YOU! Chef Jen will host A Boring Life dinner party at your house for up to six people

Overview

Opportunity

In the U.S., anxiety disorders affect 40 million adults age 18 and older each year. This represents nearly 18.1% of the population.viii Why have anxiety disorders propagated so much recently, and why do they appear so often in today’s society? Evolutionary biologists point to a mismatch between our current environment found in cities, and social factors like bureaucracy, inequality, and social media, that were not present during natural human evolutionary development.ix Regardless of the causes of today’s anxiety epidemic,x remedies for anxiety disorders often involve some sort of pharmaceutical drug or psychotherapy, or both.xi However, many individuals are incorporating alternative, natural remedies to treat anxiety and manage symptoms. Cannabidiol (CBD) oil—mainly derived from the hemp plant—is found in the cannabis sativa family of plants. Although research is still ongoing, CBD has commonly been used to address anxiety, pain, and sleep disorders, and has been indicated in studies to help treat neurological seizure disorders.xii

Founders Serafina Palandech and Jennifer Johnson live on a lavender farm in Boring, Oregon and have decided to use their culinary skills and experience in the natural foods industry to create a good tasting natural-solution to support the absorption of CBD in the endocanaboniod system. They started A Boring Life to provide high quality, chef-curated natural snack foods infused with hemp extract with CBD. The founders are fresh off their first venture—Hip Chick Farms—and are now focused on creating convenient healthy snacks to support a more relaxed lifestyle by combining Omega-3 rich, high-protein nuts with the calming properties of hemp extract with CBD. A Boring Life nuts are sold in grocery chains such as New Seasons and Erewohn as well as convenience stores and specialty food stores like Green Acers.

Press

Product

A Boring Life’s nuts are tasty snacks that provide an easy and convenient way to get a dose of protein and hemp extract with CBD. The current product line includes: Roasted Almonds with a Hint of Lavender, Dark Chocolate & Sea Salt Almonds, and Sweet and Spicy Walnuts. Almonds and walnuts are natural, feel good foods and the naturally occurring Omega-3’s may help ease depression.xiii The company’s almonds and walnuts are grown in California on a family farm, and the company sources its other ingredients from multiple vendors in the U.S. to obtain the best quality and freshness. A Boring Life’s products are gluten-free, and vegetarian, keto, and paleo diet friendly. There is also a sugar free option. Each pack of nuts provides one serving and fits easily in a purse or gym bag. All of A Boring Life’s products are lab tested to help ensure the trust, reliability, and quality of its ingredients.

Roasted Almonds with a Hint of Lavender

A Boring Life’s Lavender Almonds are delicately roasted with a hint of lavender and organic coconut oil infused with 25 mg of organic hemp extract per serving. The product is sugar free and KETO and PALEO diet friendly. Ingredients include almonds, organic coconut oil, organic hemp extract, lavender, and salt.

Dark Chocolate & Sea Salt Almonds

A Boring Life’s Dark Chocolate & Sea Salt Almonds are perfectly salted almonds rich in protein, essential vitamins, and Omega-3 fatty acids that aid in enhancing mind and body functions and help promote a calm sense of well-being. Ingredients include almonds, organic dark chocolate, organic coconut oil, 25 mg of organic hemp extract, sugar, cocoa, and sea salt.

Sweet & Spicy Walnuts

The Sweet & Spicy Walnuts are rich in protein, essential vitamins, and Omega-3 fatty acids that aid in enhancing the mind and body functions and allow for maximum absorption into the body and promote a calm sense of well-being. These walnuts are grown on a family farm in California. Ingredients include walnuts, chili powder, cayenne pepper, sugar, organic coconut oil, and 25 mg of organic hemp extract.

1,000 mg Hemp Extract with Peppermint Tincture

A Boring Life’s hemp extract with peppermint tincture contains organically grown hemp extract with CBD and is peppermint flavored. Each 1mL serving contains approximately 36 mg of CBD. Hemp extract is believed to help alleviate stress, anxiety and depression as well as assist in pain management and sleeplessness.

A Boring Life’s hemp extract is made with 70%+ pure hemp distillate derived from organically cultivated American-grown hemp. This extract is blended with USDA-certified, organic medium-chain triglyceride (MCT) oil derived from organic non-GMO coconuts. This full spectrum tincture not only contains CBD, it also contains terpenes and other cannabinoids such as cannabigerol (CBG), Cannabinol (CBN), and trace amounts of tetrahydrocannabinol (THC) (less than 0.3%).

By combining multiple cannabinoids and terpenes, the company believes its products are more effective than competitors’ CBD-only products because the multiple cannabinoids and terpenes present may work together synergistically in what is known as the entourage effect.xiv The entourage effect occurs when the many components found in a cannabis plant interact with the human body to produce a stronger influence than any single component alone.xv

Boring Bones Gummies for Dogs

The company is currently developing a line of pet products that feature hemp extract with CBD. A Boring Life plans to create bacon flavored Boring Bones Gummies for dogs that will each have 10 mg of CBD per serving.

Use of Proceeds

A Boring Life has created a distribution business model to help expansion efforts. The funds raised will be used to increase distribution throughout the U.S., drive sales and marketing, build brand identity, and introduce a new line of pet products.

If A Boring Life raises the minimum amount of $25,000, it plans to use the proceeds primarily for the following:

  • Campaign marketing (10%)
  • General marketing (10%)
  • Manufacturing (60%)
  • Future wages (20%)

If A Boring Life raises the maximum amount of $107,000, it plans to use the proceeds primarily for the following:

  • Campaign marketing expenses (4.7%)
  • General marketing (15.9%)
  • Research and development (9.4%)
  • Manufacturing (37.4%)
  • Future wages (14%)
  • General working capital (18.7%)

Product Roadmap

The company intends to focus on the following milestones:

  • Achieving 50% gross margin on all products
  • Launching into 500 stores
  • Building brand awareness through social media, public relations, and marketing efforts
  • Introduce new product offerings for pets such as Boring Bones Gummies for Dogs

Business Model

A Boring Life’s products are designed for health-conscious individuals who care about their body and wellbeing. The company wants to continue to deepen its relationship with national and regional retailers and develop new channels with natural and conventional groceries, gift and specialty shops, gyms and coffee shops. Its target customers include mass merchandisers, grocery stores, membership club stores, drug stores, convenience stores, distributors, e-commerce, and high-frequency stores.  

Suggested retail price for the company’s snacks range from $5.50 per single serving bag, to $47.99 for a box of 12 CBD-infused nuts ($79.99 for the Dark Chocolate & Sea Salt Almonds) and $59.99 for the 1,000 mg tincture bottle of CBD extract. A price for the company’s Boring Bone Gummies for Dogs has not yet been set.

Hint of Lavender

Almonds

 

Dark Chocolate & Sea Salt

Almonds

 

Sweet & Spicy

Walnuts

 

User Traction

In Q2 2019, the company launched its line of hemp extract with CBD snacks in supermarkets such as New Seasons, Erewhon, Green Acres Market, and Market of Choice, among others. On July 5, 2019, A Boring Life's products were approved for distribution in 80,000 convenience stores across the country through the AATAC business association. On July 29, 2019, the company launched its first product—Sweet and Spicy Walnuts—on Amazon,xvi and is currently in talks with GNC, Macy’s, National Coop Grocers Association, and others to launch in their stores in the near future.

Historical Financials

In 2018, A Boring Life generated approximately $1,350 in revenue, primarily from the sale of its products in farmers markets. Although the company commenced business operations in 2018, it didn’t fully begin operating in earnest until January 2019. A Boring Life’s products then launched into grocery stores in Q2 2019. Year-to-date as of June 2019, the company has generated $9,955 in revenue. Thus far, Dark Chocolate Almonds have been the company’s best seller, accounting for 39% of the company’s total revenue. Lavender Almonds and Sweet & Spicy Walnuts each account for 29% and 26% of the company’s revenue, respectively. Shipping income and other miscellaneous items account for the remaining 6% outstanding. April 2019 was the company’s best month for sales to date due to store launches and accounts for nearly 55.5% of the company’s total revenue since inception. Overall, the company is operating at a gross margin of 53.3% for the year as of June 2019.

As of June 2019, year-to-date expenses totaled $87,855. This included $82,381 of operating expenses and $5,474  in costs of goods sold (COGS). Top expenses for 2019 were payroll ($32,270), marketing ($13,371), and rent expenses ($9,703).

A Boring Life generated a year-to-date net loss of $80,996 as of June 2019, with a large majority of expenses occurring in the second quarter of 2019. The company’s average monthly burn rate for 2019 has been $14,970 per month. As of June 2019, the company had $104,760 in cash and foresees six months of runway given that they want to increase advertising and marketing expenses to grow and expand.

Industry

In 2018, the recent U.S. Farm Bill designated hemp as an agricultural crop and made it legal to farm nationwide.xvii Increasing consumer interest in hemp and CBD oil is driving new market entrants to fill shelves with new hemp-derived products to meet the growing demand in this evolving regulatory environment.xviii According to a study by a CBD Marketing firm in Chicago, people are actively sourcing recommendations and opinions about CBD oil, be it through social media or other online sources.xix  

Hemp and marijuana are derived from different varieties of the Cannabis sativa species. Marijuana is grown by selectively breeding for high concentrations of the psychoactive tetrahydrocannabinol (THC), whereas hemp is cultivated for high concentrations of cannabidiol (CBD). According to the Farm Bill, hemp is legal provided that it contains no more than 0.3% THC.xx While researchers are still studying the potential benefits of CBD, it’s already used for pain relief, anti-seizure properties, combatting anxiety, fighting cancer, reducing the risk of diabetes, and treating sleep issues.xxi

Although the Farm Bill changed the federal government’s position on hemp farming and the production of CBD oils, individual states have not responded in-kind and the debate on the substance’s legality is still murky. The Department of Agriculture, which regulates hemp production, has promised to issue a framework outlining hemp production before the end of 2019. Also, in testimony before Congress, former FDA commissioner Scott Gottlieb suggested that potent CBD products be regulated as a pharmaceutical product requiring FDA approval, while low-dose products continue to be allowed to stay on the shelves of CBD merchants.xxii

In 2017, the U.S. CBD industry grew by nearly 40% to reach a total market size of $367 million. The U.S. CBD market is expected to reach $1.2 billion by 2021, and nearly $2 billion by 2022. The U.S. hemp-derived CBD market is expected to reach $646 million by 2022, while the U.S. marijuana-derived CBD market is expected to reach $647 million by 2022. U.S. pharmaceutical-related CBD product sales are expected to reach $625 million by the end of 2022. In 2017, hemp was grown in 19 different states across 25,500 acres of farmland with 70% of land allocated for CBD production, 20% for seed, and 10% for hemp fiber production.xxiii

2018 was the largest year ever for venture capital financing in the global cannabis industry with over $881 million invested across 139 deals. That was more than double the ~$400 million that was invested in 2017 and more than eight times what was invested in 2014. As of January 25, 2019, VC investment in cannabis was at nearly $100 million for the year.xxiv

Competitors

Weller Snacks

 Founded in 2017, Weller Snacks provides an assortment of CBD-infused products including a water-soluble CBD powder, CBD-infused sparkling water, and CBD-infused coconut bites. These products contain 0% THC, are lab tested and verified for potency, and each contain 25 mg of broad-spectrum hemp extract per serving.xxv Weller Snacks products can be purchased through the company’s website, with prices ranging from $14.99 for three packages of coconut bitesxxvi to $80 for the Barista Blend water-soluble CBD powder.xxvii In July 2019, the company raised $3 million in Series Seed funding, bringing its total funding amount to date to $4.25 million.xxviii

Good Bites CBD

Headquartered in Venice, California, Good Bites CBD provides handcrafted, organic, nutrient-dense, CBD-infused snacks. The company uses pure CBD oil from non-psychoactive organic hemp in its snacks such as coconut brownie bites, coconut macaroon bites, and raw cookie dough bites. Each snack has a high and low dose CBD version, 25 mg on the high end and 10 mg on the low end. The company also offers two sizes of CBD oil tincture bottles, 500 mg and 1,000 mg.xxix Prices range from $20 for the snack bitesxxx to $48 for the low potency, 500 mg CBD oil tincture bottle,xxxi and $62 for the high potency, 1,000 mg tincture bottle.xxxii

Vital Leaf

Founded and headquartered in Portland, Oregon, Vital Leaf offers a line of artesian chocolates and herbal formulas infused with full-spectrum CBD oils. The company uses a plant-forward approach when formulating its products, meaning it consciously selects, sources, and pairs specific ingredients to maximize the healing properties of CBD and increase the user’s enjoyment. Vital Leaf claims its products are free of processed refined white sugars, high-glycemic sweeteners, artificial colorings, common allergens, pesticides, preservatives, and any ingredient that would hinder the plant’s medicinal properties.xxxiii The company’s products include items such as CBD elixir drops, CBD chocolate, CBD body balm, and CBD capsules. Prices range from $15 for a 100 mg CBD chocolate bar to $69 for a 750 mg bottle of the company’s CBD tincture.xxxiv

Grön

Founded in 2015, Grön offers cannabis and CBD-infused edibles including chocolate bars, chocolate covered coffee beans, chocolate sauce, and caramel sauce. It also offers a line of cannabis and CBD-infused skincare products, such as clay masks, body balm, face cream, hair mask, body lotion, and CBD tincture bottles ranging in size from 500 mg to 1000 mg. Prices range from $12 for a five serving bar of CBD-infused chocolate to $60 for the CBD-infused revitalizing body lotion or the unflavored water-soluble elixir.xxxv Grön’s edibles were available to medical marijuana card carriers a full year before Oregon legalized recreational cannabis, and its products are currently available at over 400 dispensaries across the state.xxxvi

Team

Serafina Palandech

Co-Founder and CEO

Serafina has been the CEO and Co-Founder for A Boring Life since its incorporation in 2019.  Previously, she co-founded the organic food company Hip Chick Farms where she was responsible for sales, marketing, financial management, hiring, and staff management. Serafina grew Hip Chick Farms distribution to over 5,000 points of distribution in five years. Serafina has a bachelor’s degree in Women’s Studies and Fine Art from the University of California, Santa Cruz.

Bronwyn Heaps

COO

Bronwyn has been the Chief Operating Officer for A Boring Life since March 2019. She is in charge of the overall operational strategy and aligns the company’s direction with its overall corporate objectives. She maintains sales and operational items such as inventory reports, inventory levels, production schedules, and product types and classes. Prior to joining A Boring Life, Bronwyn was a project controls manager for SunPower Corporation where she managed cost reduction and supply chain improvement for the residential solar business. She has a bachelor’s degree in Political, Legal, and Economic Analysis, along with a master’s degree in Public Policy from Mills College.

Jennifer Johnson

Vice President and Head Chef

Jennifer has been the Vice President and lead chef for A Boring Life since its incorporation in 2019. She leads the production process and oversees the company’s facilities and maintenance procedures. She is also responsible for training, job design, work assignments, and regulatory compliance. Jennifer develops and maintains accurate records for key performance indicators (KPIs), and quality assurance and quality control (QA/QC), to ensure all products are produced to the company’s standards. Previously, she cooked for ten years at Chez Panisse—a high-end restaurant in Berkeley California—and was the Executive Chef for the Getty Family for 16 years. She also was a Co-Founder at Hip Chick Farms.

Past Financing

In April 2019, A Boring Life issued $30,000 worth of common stock (i.e. 7.5% of the company or 71,756 shares of common stock) to participate in the Canopy Boulder Accelerator Program and received a $100,000 convertible promissory note investment from the Canopy Boulder investment group as well. Terms for the note include a simple interest rate of 8% due in cash or convertible into equity of the company’s stock with a maturity date set for two years after acceptance of the agreement. The note also includes an anti-dilution provision and a put option.

Discussion

Risks

Investment Risk

An investment in the company is speculative, and as such is not suitable for anyone without a high tolerance for risk and a low need for liquidity. You should invest only if you are able to bear the risk of losing your entire investment. There can be no assurance that that investors will receive any return of capital or profit. Investors should have the financial ability and willingness to accept the risks (including, among other things, the risk of loss of their entire investment and the risks of lack of liquidity) that are characteristic of private placement investments. There will be no public market for the securities being offered, applicable securities laws will restrict any transfer of the securities, and the securities will not be transferable without the company’s consent.

The information provided herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice, a recommendation to purchase, or an offer to sell securities of the company. You should rely on the offering statement and documents attached as exhibits to the offering statement when making any investment decision. An investment in the company is not suitable for all investors.

Company Risk

The company’s industry is highly competitive, and the company may not be able to compete effectively against the other businesses in its industry. The company is subject to a number of significant risks that could result in a reduction in its value and the value of the company securities, potentially including, but not limited to:

  • Rapidly changing consumer preferences and market trends,
  • Inability to expand and maintain market acceptance for the company’s services and products,
  • Inability to gain access to international markets and comply with all applicable local laws and regulations,
  • Inability to achieve management’s projections for growth, to maintain or increase historical rates of growth, to achieve growth based on past or current trends, or to effectively manage rapid growth,
  • Inability to develop, maintain and expand successful marketing relationships, affiliations, joint ventures and partnerships that may be needed to continue and accelerate the company’s growth and market penetration,
  • Inability to keep pace with rapid industry, technological and market changes that could affect the company’s services, products and business,
  • Technological problems, including potentially widespread outages and disruptions in Internet and mobile commerce,
  • Potential costs and business disruption that may result if the company’s customers complain or assert claims regarding the company’s technology,
  • Failure to adequately address data security and privacy concerns in compliance with U.S. and international laws, rules and policies,
  • Performance issues arising from infrastructure changes, human or software errors, website or third-party hosting disruptions, network disruptions or capacity constraints due to a number of potential causes including technical failures, cyber-attacks, security vulnerabilities, natural disasters or fraud,
  • Inability to adequately secure and protect intellectual property rights,
  • Potential claims and litigation against the company for infringement of intellectual property rights and other alleged violations of law,
  • Difficulties in complying with applicable laws and regulations, and potential costs and business disruption if the company becomes subject to claims and litigation for legal non-compliance,
  • Changes in laws and regulations materially affecting the company’s business,
  • Liability risks and labor costs and requirements that may jeopardize the company’s business,
  • Dependence on and inability to hire or retain key members of management and a qualified workforce,
  • Ongoing need for substantial additional capital to support operations, to finance expansion and/or to maintain competitive position,
  • Issuance of additional company equity securities at prices dilutive to existing equity holders,
  • Potential significant and unexpected declines in the value of company equity securities, including prior to, during, and after an initial public offering, and
  • Inability of the company to complete an initial public offering of its securities, merger, buyout or other liquidity event.

Endnotes

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