CONFIDENTIAL FINANCIAL SUPPLEMENT: HARVEST LANE CULINARY VILLAGE

Location: Soscol Avenue, Napa, CA Founder: Richard Cardoza. Strictly Confidential: For Qualified Investors OnlyHarvest Lane is the first operating prototype of a scalable urban winery platform designed to bring premium wine into everyday consumption through refillable packaging, high-frequency social spaces, and community-based hospitality. The Napa location demonstrates the model’s economic viability while establishing brand credibility in the world’s most recognized wine region. Future locations will deploy the same operational blueprint in high-density urban markets.

I. CAPITALIZATION SUMMARY

Harvest Lane is seeking a total capital injection of $2,250,000 to fund the acquisition, site development, and launch of the flagship Napa location.

Funding Allocation Amount Description Site Development

$1,100,000 Acquisition of the land

$350,000 Grading, electrical (50-amp food truck hookups), landscaping, and park infrastructure, tables, chairs, and outdoor heating units.

$650,000 Modular Construction of 2,400 sq. ft. Commissary Kitchen and 2,400 City Vines Urban Winery, public restroom structures.

$250,000 Inventory & Equipment

$200,000 Working Capital

$150,000 Contingencies

.TOTAL$2,250,000

II. THE REVENUE ENGINE (YEAR 3 STABILIZED)

The model is built on high-margin beverage sales and low-overhead vendor lease income.

• City Vines Urban Winery: Projected $1.8M gross (88-92% GM via "Jug Fill" model).

• City Brew: Projected $900k gross (Craft beer and rotating taps).

• Vendor Lease Income: $320k annual (8 Food Truck pads @ $3,333/mo avg).

• DTC Club / Digital Village: $600k annual (Recurring subscription revenue).

Total Projected Annual Revenue: $3,620,000 Total Projected Annual OPEX: $1,520,000 (Labor, COGS, Taxes, Maintenance)

Projected Net Operating Income (NOI): $2,100,000

III. THE INVESTOR WATERFALL (THE PAYBACK)

We prioritize the Investor’s return of capital above all other distributions.

1. Phase 1: 100% Capital Recovery

   • 100% of all Net Cash Flow is distributed to the Investor until the initial $2,250,000 is returned in full.

   • Projected Timeline: 32 to 40 months from Grand Opening.

2. Phase 2: The Equity "Flip."

   • Once the Investor is "Whole," the ownership structure transitions to a 60/40 Split (Investor 60% / Founder 40%).

3. Phase 3: Real Estate Alignment

   • The Investor maintains a Right of First Option (ROFO) on any future sale or refinancing of the underlying real estate asset.

IV. EXIT STRATEGIES & LIQUIDITY EVENTS

Investors are offered three primary paths to liquidity at the Year 5 milestone:

• The Yield Hold: Continue to receive 60% of NOI (Projected $1.2M+ annual distribution to Investor).

• The Multi-Site Rollout: Reinvest profits into "Harvest Lane 2" in a high-density neighboring market (Marin/Sonoma/Santa Barbara), scaling the model toward an Institutional/PE Buyout.

• Founder Recapitalization: A pre-negotiated option for the Founder to buy out the Investor’s 60% stake at a 2.5x to 3x Multiple of the trailing 12-month EBITDA.