LiX Annual Report by Juliana Walsh

LiX

ANNUAL REPORT

2017

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A YEAR THAT POPPED As one of the fastest-growing gourmet popsicle bars in the country, LiX is proud to present how much we have accomplished during the course of 2017. We have worked hard to increase profits and popularity while also maintaining our core values. We will never change our open-minded approach to new music and artists. We will always listen to a drunken proclamation of the next best popsicle flavor. This adventure would have never been possible without the endless help and guidance we have received. And for that, we thank you.

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CONTENTS Meet the LiX CEOs

Quarterly Breakdown

To Our Stockholders

Financial Summary

Board of Directors

CONTENTS | 3

CEOS JUST THE FOUR OF US We can’t even begin to express what this year has meant to us. We never could have imagined that this dream would come true, and we are so proud to have brought LiX into the world. We certainly are glad that people love alcoholic popsicles as much as we do. That being said, LiX is more than just a bar. It is an experience. We stand for providing more than just another night out. We want you to immerse yourself in a new world of art, music, taste, and life. We have met hundreds of up-and-coming artists and have been able to feature tons of new work every weekend for the past year. On top of this, we are finally completely set up on all of our social media accounts. It’s so awesome being able to stay connected to all the people who have had the LiX experience and hear their feedback. Our locations have expanded our reach and we’ve been so excited to share LiX with more and more people as the months go by. We are now

4 | CEOS

open in various California spots and all the way to the East Coast. New York City has blown us away with their love and support. Additionally, we’ve teamed up with some of the best chefs in the country to add to our extensive alcoholic popsicle menu. With your helpful suggestions, we’ve been able to make legendary flavors such as Tequila Sunrise, LiX Limoncello, Peppermint Schnapps, and countless others. As the CEOs of LiX, the four of us are truly blessed to have shared this journey with so many of the people that we care about. It has been a crazy ride, and we look forward to many more years of laughter, rooftops, music, and of course, popsicles. Enjoy the vibes!

xoxo

Iv y Kate

Bex + Jude

CEOS | 5

LiX Headquarters in Los Angeles

QUARTER BY QUARTER WHAT A YEAR

We kicked off the year by opening five new LiX locations across the country including New York City, Miami, Los Angeles, Chicago, and Santa Barbara. We also were able to redo our website and social media accounts during this time.

By the time we hit the third quarter, we were able to link four of our awesome performers with major record labels across the state of California. We are amped that all of these talented humans are now signed.

During the second quarter, we released our extensively updated popsicle menu. After many hours of taste testing, we were pleased to have ten brand new flavors. We introduced customers to these fresh options by launching an all new advertising campaign online and on television.

As this quarter came to a close, we experienced an incredible tripling in our net profits compared to last year. 2017 was certainly the time for LiX to thrive and emerge as a power threat bar. QUARTERLY BREAKDOWN | 7

TO OUR STOCKHOLDERS INVESTING TODAY FOR THE FUTURE OF TOMORROW We are honored to present the 2017 fiscal report for LiX. We were able to exceed even our own expectations in terms of revenues generated. We are strong advocates for the core beliefs that LiX embodies, and therefore, we are constantly encouraging people to invest. Our past, present, and future stockholders are incredibly important to LiX as a company and how much we are able to expand our horizons month after month.

2017 was a period of time when artists and performers were constantly contacting us and booking gigs at our various locations. LiX can be a ticket into a whole new realm of exposure for artists on the rise, and in return, our customers receive the gift of fresh, creative energy. Add an alcholic popsicle and what could be better?

Thankfully, 2017 brought many new and interested investors for LiX. With what felt like endless support, LiX was able to open five new locations and by the end of the year, we had tripled our net profits compared to 2016. To say we are ecstatic is an understatement.

An investment in LiX is an investment in creativity and culture as a whole. LiX cares significantly about how it can contribute to each community it exists in. We are constantly inspired by the new energy that LiX exudes from every last location. Investments from our stockholders are what keep this dream alive and keep people coming back.

LiX is not only a restaurant bar chain, but an opportunity for youths across numerous cities to pursure their dreams. LiX gives them that very chance, and with the help of our stockholders, more and more young people will be able to follow suit in years to come.

We are endlessly thankful for the stockholders who are key to allowing LiX to remain true to our vision despite expanding in size. Your faith in us as a company has allowed LiX to have one of the most exciting adventures a new company can hope to experience.

8 | TO OUR STOCKHOLDERS

TO OUR STOCKHOLDERS | 9

FINANCIALS MAKING BANK

2017 was an incredible year for LiX. We focused on revamping our alcoholic popsicle menu to feature more diverse flavors. We were able to bring in professionals from around the country to experiment with various wines and spirits to ultimately create our now top-selling flavors.

perfect pops. We also spent a large portion of our money on paying for rent since we opened so many new LiX locations during the past year.

This investment in liquor was where a majority of our money was allocated for the year. We had to have a lot of failures before we found the

Overall, 2017 brought with it an incredible tripling in the LiX net profits compared to 2016. We believe that our newest advertising campaign was a huge contributor to what made customers continuously excited, interested, and loyal to LiX as a brand.

TOP-SELLING FLAVORS

QUARTERLY STATISTICS

PROFITS (IN HUNDREDS OF THOUSANDS)

RED WINE 30% MELLOW MOONSHINE 10%

400

TEQUILA SUNRISE 25%

300

STRAWBERRY DAIQUIRI 35%

350 250 200 150 100 50 0

10 | FINANCIALS

COST BREAKDOWN

25%

Advertising Salaries

25%

15%

Advertising Salaries

10%

Rent

Utilities

Utilities Food

15%

Food

20%

Liquor

15%

Liquor

15%

5% FINANCIAL BREAKDOWN 2017

2018

NET INCOME

$4,400

$8,000

$9,250

OPERATING TAX

$1,290

$2,450

$5,000

EXPENSES

$2,910

$3,100

$3,920

OPERATING COSTS

$7,290

$6,201

$9,100

2019

Future projections based off of current annual sales and figures

FINANCIALS | 11

BOARD OF DIRECTORS MEET THE INCREDIBLE TEAM

JUDE KING

JULIANA WALSH

Founder & CEO

Creative Director

IVY TURNER

BIANCA KIM

Founder & Vice President

President, Corporate Affairs

KATE VINCENT

MARISSA MCBRIDE

Founder & Secretary

Director of Marketing

BEX DALTON

ABBY HEWEL

Founder

Public Relations Administrator

ALYSSA LONGO

ASHLEY WILLIAMS

Director of Operations

Advertising Director

LAUREN DUBOIS

MAGGIE SULLIVAN

President, Financial Office

Chief Financial Advisor

12 | BOARD OF DIRECTORS

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LiX

ÂŠLiX Annual Report 2017 All data compiled by LiX Financial Officers Designed by Juliana Walsh