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Charged inc investment prospectus - artie

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Page 1: Charged inc   investment prospectus - artie

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IN THIS PROSPECTUS

Review CHARGED Incorporated Company Overview & Company Executive Leaders

Detail CHARGED™ Energy Infused Beverage Development & Business Plan

Introduce Initial Investment Capital Opportunities for CHARGED Energy Infused Beverage

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CHARGED INCORPORATED Las Vegas, Nevada

FROM CONCEPT TO REALITY – THE EVOLUTION OF CHARGED

Like most other successful business ventures, the concept of CHARGED™ Energy Infused Beverage began as a vision with a purpose but was stumbled upon through simplistic discovery. In this case, the vision was to solve a constant problem with the Energy Drink, Energy Shot, Sports Drink and Function Beverage Market. Primary Goal - Develop a great tasting beverage that was All Naturally Sweetened with Stevia® (a non-sugar sweetener that is safe for Diabetics or other people with blood sugar conditions), included zero calories, and would provide hours of Natural Energy. Initially the vision for CHARGED™ Incorporated began as GRAB THE LIGHTNING, LLC and their first consumer product "Lighting in a Bottle", which was a 2 ounce Energy Shot that would attempt to compete with the 5-Hour Energy brand but attract a more health conscious consumer. However, after discovering that this segment was saturated with thousands of competitors, plus the fact that it was very difficult to physically engineer this type of product that would taste good (which was our primary mission), our company decided to go 180-degrees in the opposite direction to create a completely new consumer segment – ENERGY INFUSED BEVERAGE. At that time our company changed from an LLC to a Corporation in the State of Nevada.

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CHARGED INCORPORATED Las Vegas, Nevada

President & C.E.O. – Andrew Levine

With over 20 Years experience in managing the financial structure of several successful companies under his belt, Andrew Levine has the real world business experience and educational training to lead CHARGED Incorporated as the co-founder, President and CEO. A graduate of the University of Alabama (MBA - Finance), Levine developed CHARGED Incorporated in order to provide effective business solutions to common troubles plaguing the beverage industry. Andrew spent three years as the Director of Operations for US Beverage, starting with very few locations in one state and expanding their reach to six-southern US States and over 1,000 repeat retail and distribution outlets. Another strong attribute of Levine’s is his ethical business philosophy, taught to him by his mentor and father Robert Levine – who was among 2,977 innocent victims murdered on Sept. 11th, 2001 in New York City. Andrew is a three-time cancer survivor who has the mental and emotional strength to work through any challenges. He has bottled his personal motivation into creating the RML Foundation, a non-profit organization that provides financial assistance to charitable organizations including Southern Nevada Burn Foundation and the Injured Police Officers Fund.

CHARGED Incorporated is dedicated to giving back a portion of all proceeds to local and national charitable organizations through the RML Foundation.

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CHARGED INCORPORATED Las Vegas, Nevada

Vice President & C.O.O. – Tim Charlet

While company President Andrew Levine’s experience is in managing financial elements, his business partner and co-founder of CHARGED Incorporated Tim Charlet has the real-world experience in managing the day-to-day business activities and creating several successful marketing and brand activation platforms for several Fortune 500 companies and the United States Department of Defense. A former Regional Marketing Director for Costco Wholesale and Public Relations Manager for Fed Ex Express, Charlet has worked his way to becoming one of the most sought after business development experts in America. His experience in retail, wholesale and distribution of consumer goods provides CHARGED Incorporated a unique insight into creating successful business strategies targeted to introducing a brand into the consumer market and creating a brand affection with consumers. His experience as a Public Relations Manager for several companies including Fed Ex Express. Comodo Internet Security Software and several professional motorsports teams ensures all company communication is written to represent the quality of the CHARGED™ Brand. His experience with the D.O.D. as a Traffic Management Officer for Buckley Air Force Base in Colorado ensure creative and legal measures will be taken to protect the CHARGED™ Brand and develop strategic partnerships with like minded companies to activate the launch of CHARGED™ Energy Infused Beverage.

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Creating the Energy Infused Beverage – Discovery

The concept of an Energy Infused Beverage was developed by CHARGED Inc. Vice President / C.O.O. Tim Charlet in 1992. Working as a tire installer in Southern California, he would constantly drink Sugar-Rich Energy Drinks, Sport Drinks and take vitamin supplements to help him through the day. But he would spend between $7.00-$10.00 daily on these products to stay hydrated, alert and focused. He believed there should be a product that would provide all these benefits, for much less money. As they years passed, the need for this type of beverage grew. However, after being diagnosed with Type II Diabetes in December 2012, he felt a personal need to make this product 'sugar free'. After meeting Andrew Levine and speaking about his idea for a Stevia-Sweetened Energy Shot, the solution became apparent – introduce the ENERGY INFUSED BEVERAGE. Working with his wife, a Registered Dietitian for the University of Utah, Charlet consulted with over 1,500 National Registered Dietitians, doctors and food scientists to compile a list of key vitamins, ingredients and features that would provide the benefits he sought for a Great Tasting Energy Infused Beverage.

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Creating the Energy Infused Beverage – Development

PRIMARY GOAL #1 - The beverage must have a smooth, refreshing taste with zero Stevia® aftertaste The problem of aftertaste is common with Stevia® sweetened products. We were able to resolve this issue was by introducing another all natural non-sugar sweetener Erythritol to create a balanced flavor. This was further enhanced by introducing a new 'Hot Fill' production process which meant we also ensured that there are no artificial flavors or preservatives included in this product. This unique feature allows us to target the all-natural food consumer segment initially without restricting ourselves to this demographic. However, it provides us with a unique element not commonly found in this segment – a great flavor profile. We also introduced a few natural occurring enzymes to the ingredient pack which ensure easy digestion of these ingredients would not upset the stomach of consumers; which is typical for 25-35% of the consumer segment of Energy Drinks, Energy Shots and Vitamin Waters. Working with our business partners at MBA Beverage in Phoenix, Arizona, we developed a great tasting beverage with zero Stevia aftertaste which would REHYDRATE – REPLENISH – RECHARGE the Human Battery.

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Creating the Energy Infused Beverage – Three Key Features

REHYDRATE This includes the introduction of approximately 20% RDA of key electrolytes Monopotassium Phosphate & Potassium Citrate per 16 oz. bottle. Total Potassium for CHARGED™ is 80mg. The recommended daily allowance of Electrolytes by the FDA is between 300-400 mg for adults. The end result is a consumer could drink between 4-6 bottles of CHARGED™ per day and still be safe within 100% of RDA in this category.

REPLENISH Include 100% of key vitamins B3, B5, B6, B12 and 50% of Vitamin C. These essential vitamins are typically the most critical in maintaining positive vitamin enhancement in the human body daily. Too many vitamins (as included in most Vitamin Waters - up to 500% in most cases) negatively impact the flavor profile. We kept our vitamin B levels at 100% per 16 oz. bottle to provide a great tasting beverage.

RECHARGE Our primary goal was to introduce responsible caffeine levels – with the growing consumer questions and recent discoveries by the FDA, we wanted to ensure our caffeine level was below 150 mg. CHARGED™ contains 120 mg per 16 oz. bottle. We also wanted to ensure our amino acid ingredients, common with Energy Shots, were within recommended daily allowance tolerance and included in the FDA (GRAS – Generally Recognized As Safe) category to conform to FDA Beverage classifications.

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Business Plan for Success Charged Incorporated

What is unique about this company and the consumer goods they sell?

What trends in the marketplace permit this consumer good to be successful?

Why will customers buy the product – who is the product targeted to?

Who are the direct competitors in this consumer segment and what are their strengths and weaknesses?

Describe the difference between your product and competition; and why is your product needed in this segment?

Provide all resources needed in order to place the product into distribution and capture product sales.

In the next few pages, we will address each of these questions of how CHARGED Inc. will accomplish each of these areas in detail.

The operational business structure and business plan for launching CHARGED Inc. and CHARGED™ Energy Infused Beverage has evolved over a period of 20 years. However, it is also a statement of truth that any successful company should always ensure that their business addresses six primary questions that address a consumer need, target an initial niche and has a plan for successful product launch including:

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Business Plan CHARGED Inc. – Question #1

CHARGED Incorporated has developed our company structure, three flavors of our initial consumer product, our brand, marketing programs and activation for less than $10,000.00 invested in a period of only 8 months. Traditionally, businesses of this type invest hundreds of thousands of dollars in capital to develop the same type of business structure before manufacturing any consumer goods.

CHARGED Incorporated has partnered with MBA Beverage to streamline the process of manufacturing, distributing, and selling beverages to large volume wholesale, direct retail and c-store distributors that is much more cost-effective, reduces overhead and increases gross profits.

CHARGED Incorporated includes only two active employees and subcontracts all other services to professionals in their respected areas of expertise. This limits our liabilities, our payroll and need for insurance coverage on employed individuals.

CHARGED Energy Infused Beverage is the world’s first All-Naturally Sweetened Energy Infused Sports Drink that contains zero sugar, zero calories and is considered Diabetic Friendly according to the 1,500 Registered Dietitians who approved each FDA-GRAS ingredient in this revolutionary product.

CHARGED Incorporated maintains social responsibility by giving back to the communities in which we work through our association with the RML Foundation.

What is unique about CHARGED Inc. and the CHARGED Energy Infused Beverage?

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Business Plan CHARGED Inc. – Question #2

The current Sports and Energy Drink marketplace is saturated with over-caffeinated, sugar-enhanced beverages that are virtual clones of each other. CHARGED™ Energy Infused Beverage not only creates its own consumer segment (The Energy Infused Beverage) but also provides a much healthier option for people to purchase with a much better flavor profile.

The FDA has recently launched internal probes and investigations into the increased caffeine levels of most Energy Drinks and Energy Shots. CHARGED™ Energy Infused Beverage contains only 120 mg of caffeine per 16 oz. bottle and includes this transparent ingredient amount clearly on each bottle. A ‘regular’ cup of coffee contains between 80-150 mg of caffeine.

The US Federal Government, The State of New York and several other consumer groups have began an active campaign to address the accelerated sugar levels in sports drinks and energy drinks. CHARGED™ Energy Infused Beverage contains zero sugar, zero calories yet has an outstanding taste that does not include any aftertaste common with STEVIA® sweetened products.

Of the current 20+ million people who live with Type 1 and Type II Diabetes in America, over 78% of them are physically active. CHARGED™ Energy Infused Beverage is the only energy drink currently manufactured that is considered Diabetic Friendly by over 1,500 Registered Dietitians. Our company is currently working with the FDA to set standards to officially brand our product as Diabetic Friendly.

The most popular and fastest growing product sold in the beverage industry is Sobe® Lifewater. CHARGED™ Energy Infused Beverage contains similar vitamin and electrolyte levels of Sobe® Lifewater, but includes an added burst of Energy, something Sobe® does not have in individual bottle sales.

What trends in the marketplace permit this consumer good to be successful?

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Business Plan CHARGED Inc. – Question #2

What trends in the marketplace permit this consumer good to be successful – Continued.

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The Energy Drink Segment is one of the few consumer segments that has showed significant growth in the past five years. All analysts believe this growth will continue well into 2016. However, with recent health concerns, law suits, investigations, Government and FDA probes, this market will have to address lowering Sugar levels, and caffeine levels in order to comply with future regulations. CHARGED Energy Infused Beverage is ahead of the curve in this area, and will have a competitive advantage over others within this segment.

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Business Plan CHARGED Inc. – Question #3

Our primary target audience includes both male and female, between the ages of 18-45 who are physically active or somewhat concerned about preventing obesity and onset of Diabetes. According to consumer research, this represents approximately 68% of the total United States adult population (over 130 million adults living in America in this consumer segment)

Our secondary target audience are the 14+ million Americans who are physically active and live with Type 1 and Type II Diabetes in America. This consumer segment currently has no option to consume a sports drink or energy drink to permit them to REHYDRATE – REPLENISH – RECHARGE their bodies.

Our third consumer group includes males and females between the ages of 18-50 who purchase all-natural prepared products. This consumer segment includes on the average of 25% of grocery store shoppers in America. In a recent survey completed by Food Product Design, a consumer awareness firm in Ohio of more than 1,000 U.S. shoppers revealed 25% said they look for “100% natural" or “all natural" products.

We also target a youthful demographic (between 18-30) due to our exciting CHARGED™ Brand appeal. This will be activated by a merchandising and apparel platform engaging shortly after business start-up.

We are meeting a consumer need for providing value, health consciousness and 100% transparency in the ingredients our product contains. This addresses a common concern with the Sports Drink, Vitamin Drink and Energy Drink segment, where consumers are questioning the ingredients and safety of many of these products. By keeping all ingredients free of SUGAR or ARTIFICIAL SWEETENERS such as Saccharin, Aspartame and Sucralose this also provides a product generally considered friendly for Diabetics and others who live with blood sugar disorders.

Why will customers buy the product – who is the product targeted to?

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Business Plan CHARGED Inc. – Question #4

CHARGED™ Energy Infused Beverage is a unique product that has never been submitted to the consumer market. In fact, it is in a consumer segment of its own, (Energy Infused Beverage). As such, we don't have a direct competitor. However, initially we will have to capture the consumer segment that purchases the following products:

Sobe Lifewater

5 Hour Energy Shots

Function Drinks

Energy Drinks

Gatorade & PowerAde

The strengths of each product is they have a strong consumer base of repeat shoppers. Most of their consumers originally purchased their products due to the powerful brand name, or the uniqueness of their product when introduced into the marketplace.

The weakness of each is the fact that each (besides Sobe Lifewater) contains higher or elevated levels of sugar, caffeine or a combination of both. The FDA has recently launched large-scale investigations into Energy Drinks and Sports Drinks due to the elevated levels of sugar. The media as well as local, state and Federal government agencies also are actively supporting awareness campaigns targeting people to choose more healthy options to these current beverages.

Who are the direct competitors in this segment and what are their strengths & weakness?

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Business Plan CHARGED Inc. – Question #5

CHARGED™ Energy Infused Beverage is classified by the FDA as a beverage, and not a Dietary Supplement.

This classification reduces our potential for future liability and further testing which is required by the FDA for products labeled as Dietary Supplements.

Our product is an all-in-one product, that fulfills the needs of three common consumer segments. This provides better value to consumers.

When we combine the unique features of CHARGED™ the end result is a consumer beverage which provides the independent benefits of three current industry leading products.

Sports Drinks (REHYDRATE)

VITAMIN WATERS (REPLENISH)

ENERGY DRINKS / SHOTS (RECHARGE)

CHARGED™ will be sold for a suggested retail price of $2.89 per 16 oz. bottle and will include all three of these critical consumer elements. This provides consumers with better value as well as higher quality merchandise and healthier options. In times where people have less disposable income, finding value in all consumer products they consume is becoming a top priority.

Describe the difference between your product and competition; and why is your product needed in this segment?

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What is needed to bring CHARGED™ to Market – Part I

The final question to answer in our Business Plan is what resources CHARGED Incorporated will need to successfully bring our CHARGED™ Energy Infused Beverage to the marketplace. A better way to answer this question is to provide the steps needed to follow in order to place the product into distribution and capture product sales. Our attached Business Plan addendum will detail each step of this business launch. STEP #1 – DEVELOP THE BRAND STEP #2 – MANUFACTURE ORIGINAL PRODUCT RUN STEP #3 – BRING CHARGED™ Energy Infused Beverage to Market Our first step was creating an effective brand that will describe what CHARGED™ Energy Infused Beverage is, and target this brand to a demographic of consumers who purchase a product based on the brand name and powerful appeal of the packaging. In order to accomplish this, CHARGED Inc. retained the services of Mr. Tom Clark, a professional brand development expert who has created several top-selling brand identities including several of Wrigley’s gum products, ONKOR™ energy supplements and has worked with Harley Davidson on launching their new brand platform in 2012. We also sought the consultation of Mr. Ugur Gulaydin, the owner of Five Buttons Creative, the same company that developed the 5-Hours Energy Shots brand and launched their online marketing program. Mr. Gulaydin also serves as the Executive Vice President of Online Marketing for the Comodo Group - a software company specializing in computer security. These two professionals are key ingredients to the initial and future success of CHARGED Inc. and all future brands we develop. Mr. Clark and Mr. Gulaydin developed an overall brand logo and identity that not only has a powerful key-messaging look and feel, but the inclusion of the EKG shows and marketing content displayed on our packaging shows a powerful link between our product and health. For purposes of this prospectus we have created a mythical brand – CHARGED, to provide you a sample of the branding package we will introduce to the consumer market – under a different brand name, currently owned by CHARGED Inc.

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What is needed to bring CHARGED™ to Market – Part 2

STEP #2 – MANUFACTURE FIRST PRODUCT RUN - $72,000 Investment + ($144K Escrow)

In order to effectively bring CHARGED™ to retail consumers, we must first produce an initial run of finished products. We have brokered a deal with our manufacturing network to limit our initial run to 25,000 bottles for each of our three primary flavors. Most start up beverage companies must produce minimum runs between 50,000-100,000 bottles per flavor. They are also limited to working with one bottler. The total cost for manufacturing and shipping our first run of product is $72,000.00.

A critical part of maintaining business success will be keeping on-hand capital to cover the initial cost of (2) full product runs for large product fulfillment. Nearly every beverage distributor and retailer pay invoices upon receipt of finished product order through their purchase orders, however as a manufacturer we are required to pay for product manufacturing completely prior to receipt of merchandise.

As such, we will keep an additional $144,000.00 investment capital to be held in escrow to pay for large-volume requests. Once Invoices have been paid, this escrow account will be replenished with our cost of manufacturing + an interest rate of 2% to ensure growth.

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What is needed to bring CHARGED™ to Market – Part 3

STEP #3 – BRINGING CHARGED™ TO MARKET After we create our first product run, it will be critical to success to operate this business on a full-time basis to aggressively sell CHARGED™ Energy Infused Beverage to beverage distributors, direct retailers, c-stores, vending companies and pharmacy locations. We have brokered a partnership with 38 bottlers in the United States, strategically placed in all geographic areas to reduce our production costs and shipping costs to our distributors, retailers and end consumers. We have also established a positive relationship with the following retail distribution networks and have product distribution meetings set up with these large volume distributors: SUPERVALU - SUPERVALU® is a leader in the grocery retailing industry.

They are a grocery and pharmacy company serving a wide range of customers in neighborhoods nationwide, through stores ranging from hard discount to traditional and premium grocery formats. They have 2200 retail locations they own – primarily in mid-western US, as well as 5,000 smaller companies they distribute products to on a daily basis.

Maverik Fuel Centers – With over 1,200 locations across the Western United States, Maverik Adventure Fuel Centers is a leading c-store/gas station location that provides exceptional value to their customers. Our contact within this company is the Executive VP of Marketing who has expressed a desire to offer CHARGED Energy Infused Beverages to their customers as a healthier alternative to Energy & Sports Drinks.

Diamond VP – is owned by Ruben Press, a business associate of Peter’s. Products he represents are placed currently in over 32,000 c-store locations across the United States. Ruben has agreed to be a product representative for CHARGED™ Energy Infused Beverage for a 10% sales commission.

These three companies provide CHARGED™ Energy Infuses Beverage with tremendous assets towards placing our product quickly with larger wholesale distributors and large C-store chains.

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What is needed to bring CHARGED™ to Market – Part 3 Cont.

STEP #3 – BRINGING CHARGED™ TO MARKET - Initial Retail Opportunities We also have existing relationships with like-minded consumer companies in Las Vegas which will permit us to sell CHARGED products upon product launch including: The Liquor Library (At McCarron International Airport – Main Baggage Claim) Exotics Driving School @ Las Vegas Motor Speedway M & M World Las Vegas, Nevada – Mid Las Vegas Strip Las Vegas Farmers Market 100 – Vending Machines in the Las Vegas Market & in New York / New Jersey All Three Casino Properties in Mesquite, Nevada Southwest Vending Distribution – Phoenix, Arizona supplies 4,500 retail locations

and 35,000 vending machines We will also sell CHARGED™ via online sales with existing online medical industry suppliers including TENSnet.com, Stevia.com & health and wellness website BeWellBuzz.com. We also have contacts within Boyd Gaming, MGM Mirage Inc, and other Las Vegas Resort Properties. In order to maximize our product sales, we must also leverage any and all relationships with business associates and explore creative Business 2 Business partnerships which will allow us to expand our reach. This includes a current existing relationship with: The Speedway Children's Charities LVMS: Working close with our contacts at LVMS,

and the Speedway Children's Charities, we have been introduced to several contacts at Nevada Beverage Company, the largest distributor of Monster Energy Drink and all Budweiser products.

The COPD Foundation – Upon product launch, CHARGED Energy Infused Beverage will sign an exclusive agreement with the COPD Foundation and DRIVE4COPD Campaign to provide 10% of our net profits to activate their NHRA Drive4COPD Expansion. In return, the COPD Foundation will actively promote our product to their retail marketing partners at Walgreen’s, Rite-Aid, Wal-Mart and Target.

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Primary Investment Opportunity

Although we believe our primary investment opportunity provides any investor with an exceptional return on investment, we have created a secondary investment platform that will permit our company to raise our needed start-up capital through a US-Federal Government backed ‘Patriot Express’ Small Business Loan. This also provides an investor with zero financial risk – yet a very attractive ROI.

Our Company Co-Founder, President and CEO Andrew Levine is a retired US Navy Veteran, and as being a 51% owner of CHARGED INCORPORATED qualifies for a SBA loan up to $500,000. However, in order to apply and be approved for this loan, we must have 100% of the total loan held in escrow in our primary bank account as equity.

As such, we are offering an exceptional secondary investment opportunity for you to review that will provide us the start-up equity we need to secure this SBA loan.

$300,000 Short Term Capital Investment

This capital will be used in order to secure a SBA loan up to $300,000 that we

need to successfully launch CHARGED Energy Infused Beverage. Initial Return on Investment – Upon successful receipt of our loan, we will provide the investor with their money back (plus a 10% interest rate) and pay back all loaned capital within a period of 6-months of receipt.

Additionally, the investor will receive 5% of total net profits of CHARGED Energy Infused Beverage sales for the lifespan of the products ownership through CHARGED Incorporated. Investor will also receive 5% of net profits on the sale of the CHARGED™ Energy Infused Beverage brand if and when this occurs.

The specific terms of this investment will be finalized upon discussion and are subject to negotiation to ensure a fair and structured partnership is developed for a long-term relationship.

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Conclusion

CHARGED Incorporated was founded by two, hard working business men who have a mission to produce great tasting, high-quality driven consumer goods that are a healthier option to leading products in several consumer segments – at affordable pricing. Our company was built upon integrity, strength and honesty. Our intent is to establish a brand affection with CHARGED™ and every product we manufacture with all consumers. Our goal is to create a long-term relationship with one investor to help us turn this concept into reality. It is for this reason that you have been contacted. Taking advantage of a consumer market that currently has no product like this in distribution is all about timing. And with the increased attention to detail on reducing sugar in beverages and reducing caffeine in Energy Drinks, we are addressing several major consumer needs. But in order to be successful, we must launch now. We have attached an additional PDF to this Prospectus that explains more in detail about our business plan. We also are available to you 24/7 to answer any questions you have about our company and CHARGED Energy Infused Beverage. Thank You for Reviewing Our Investment Prospectus Package. We look forward to speaking with you soon.

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