REDCAR7_INVESTbrief 0121

REDCAR 7

INVESTOR RELATIONS

BRAND BRIEF

DAVID REDIKER

(323) 841-2576

[email protected]

DAVID REDIKER- (323) 841-2576 1

DAVID REDIKER- (323) 841-2576 2

DAVID REDIKER- (323) 841-2576 3

Above: Pacific Electric Company of Los Angeles once operated thelargest inter-urban public transit system in the world; centered indowntown Los Angeles, and locally dubbed the “Redcars”. Our designstudio is located within the boundaries what was regional division #7.

DAVID REDIKER- (323) 841-2576

Established in January 2016, TheRedCar7 Menswear Companymanufactures on-trend skate, action-sports, and hiphop-inspired casualfashion apparel and headwear. Movingbeyond the stereotypical “suburbansprawl” and “aimless stoner”connotations of SoCal skate culture, westrive to articulate the urban-skatefashion evolution. Our brands examineCalifornia skatepark fashion’scollision with the affluent city-centerlifestyle of downtown Los Angeles.We craft quality fashion-apparel andheadwear renowned for functionality,endurance, and style across all priceand market-positions we compete in.Eliminating the notion of “LA CarCulture’s Suburbs in Search of A City”,our spotlight on urban-Los Angelesfashion, philanthropy-focus, andmarketing initiatives showcase theauthenticity, pragmatism, ingenuity,creativity, opportunity andinclusiveness which once again definedowntown Los Angeles. These valuesare at the heart of our every initiative;and, as many of us know, they areintrinsic to skate culture.

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REDCAR 7

No. 81-0881880

(I.R.S. Employer Identification No.)

7119 West Sunset Boulevard, Suite #480

Los Angeles, California 90046 (Address of principal executive offices)

California

(State of incorporation or organization)

(323) 841-2576 (Company telephone number)

GeneralRedCar7, (“R7C,” the “Company,” “we,” “our”) a California

company, was founded in January 2016. We manufacture and

distribute skate-inspired mens and children’s fashion apparel

and headwear. In composite, our triumvirate of urban-culture

brands appeal to the successful 18-34 year old entrepreneur

across casual, career, and family categories. We operate online

in the U.S. and internationally.

Under the proprietary brand names R7C, RedCar KiDS, and213 Skate, we distribute a broad selection of apparel and

headwear for men, boys, and infants, through wholesale and

direct-retail channels. In addition to our proprietary labels, at

www.ShopRedCar7.com we also carry select national-label

mens apparel and personal care lines that complement our own

seasonal offerings, and bolster site traffic.

Each market-season, we present multi-delivery wholesale

collections. Our own team cultivates sales with specialty

retailers, better streetwear-boutiques, and upscale department

stores-- in North America and internationally.

Additionally, we maintain a vested-interest and exclusive online-

retail agreement with the Kali4Kouture brand; a collection of

contemporary and avant-garde graphic-driven apparel and

hardline goods.

As of fourth-quarter 2016, we operate one company-owned

online retail store through the Shopify platform; and maintain a

“virtual” wholesale showroom, accessible at Brandboom.com

DAVID REDIKER- (323) 841-2576 5

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To Our Valued Investors:At the start of 2016, we set out with three primary achieveables:harness the high-earning 25-34 year old urban-entrepreneur’spurchasing power at the opening-luxury position; penetrate the 18-24 year old skate-streetwear market; and introduce the youngurban male’s philanthropic voice to the world. I am pleased toreport that over the past year we have made considerable progress.

The company clarified exactly how we will thrive in a crowdedmarket. We crafted marketing and brand viewpoints thatengaged the consumer across our three separate labels. Creativemarketing campaigns leveraged our identity in philanthropy,quality, and urban-Los Angeles street style. Image and messagedriven RedCar7 and RedCar KiDS knit tops, along with the tailored-silhouette and luxe-fabric driven 213, presented their firstwholesale collections, targeting the 18-24 and 25-34 year old maleskate and street-fashion customers, respectively.

We devoted considerable effort to identifying the finest fashionmanufacturing contractors in Los Angeles; and challenged both newand existing partners to produce a premium-positioned productwithin our disciplined cost-structure. The results were exemplary.

In January 2016, we launched our direct-to-consumer webstore,www.ShopRedCar7.com. With limited backing, we minimizedcarrying costs and exposure to markdowns through a “print-on-demand” sales model. Through D2C expansion, we have gainedvaluable insights on customer preferences, shopping habits, andtolerance to merchandise mark-ups across categories. Importantly,we determined the most productive promotional and social mediaoutlets for our brand segments.

RedCar7 realized its “Redefine Possibilities” marketing initiative:conveying an on-going pledge to donate 7% of a featured item’sprofit to domestic service organizations. We laid the frameworkfor the 213 brand’s annual “Empowerment Initiative” to award onelocal menswear design-graduate the opportunity to co-label amicro-line for our exclusive distribution.

Indeed with negligible expenditure, our branding and marketinginitiatives struck a cord. We attracted an influx of brandambassador and influencer-marketing requests. This overwhelmingresponse only reaffirmed what we have always known: there is avery real demand for our products and a profound resonance withour brand values. DAVID REDIKER- (323) 841-2576

The accomplishments of this past year include securing the formerGeneral Merchandise Manager of the Kitson pop-luxurydepartment store chain to develop our unique lifestyle-retailconcept -- which includes barbershop and consumable categories.Curated toward destination-services, social experiences, andmargin-protective category combinations, it both simplifies andprolongs the in-store shopping-experience.

I am confident that we have structured an immersive brandexperience that builds loyalty, retains the customer acrossgraduating spending-levels, and cross-promotes its variousnameplates naturally. We believe in this differentiated anddiversified business model; and are proud of the strength andinnovation in our brands. 2016 positioned us to harness the lion-share of the market’s spending-power.

The coming-year’s growth initiatives are formulated with an eyetoward safeguarding our investment partners and preservingcapital. As always, our operational focus will remain onstrengthening merchandise margins and rationalizing our cost base.Early feedback has been overwhelmingly positive. With thecontinued support, trust, and confidence of our very talented team,and you, our investors, 2017 will start a profitable journey toward“redefining possibilities” across the globe.

Sincerely,

D. Milton Rediker IIFounder & PresidentJanuary 20, 2017

DAVID REDIKER- (323) 841-2576 7

DAVID REDIKER- (323) 841-2576 8

• High Earners Not Yet Rich

• Young Urban Males with Money

“Coming across Noah… at Bergdorf Goodman this Fall…the customer need to be aware of the designer’s skaterhistory. Maybe …his job is more creative and he’s notforced to wear a suit everyday. Maybe he’s got so muchmoney, he doesn’t have to work”.”**

**“A Grown Up Spin On Skate Style”, Wall Shttp://www.wsj.com/articles/a-grown-up-spin-on-skate-style-1437765993

• 18 percent of earners in

the United States, known

as the HENRYs (high

earners not rich yet) make

$100,000 to $250,000 a

year. They account for 40

percent of overall

consumer spending.

• There are about 24 million

HENRYs in the U.S. They

account for almost as

much [in consumer

spending] as the bottom

80 percent.****

****Danzinger/Unity Marketing 8/2015 Report- Philadelphia Times

Target Consumers and Spending Power

“Millennial Guys Keen on Style Are Reshaping The Fashion Trade” Los Angeles Times 3/2015

“Men's retail is one of the fastest-growing categories at CarusoAffiliated Properties [Americana at Brand and the Grove in LosAngeles.] enjoying double-digit sales growth in menswearoverall, according to CEO Rick Caruso. Caruso says he is on thelookout to bring in more menswear brands and potentiallyeven barbershops.”

R7C

Targets the aspirational 18-24 year old identifying with skate,action-sports, team-athletic, and urban street-cultures.Irreverent graphic and message printables, updatedessentials and headwear. Offshore production, classic orwidely adopted silhouettes and trending finishes, mid-moderate market quality, mass distribution.

The customer responds to imagery that is impactful withoutappearing garish. Our clothes subtly convey influencer-credibility and a confident interpretation of advanced-contemporary direction that is both innovate and true withinhis peer collective.

Merchandising and Marketing Focus: Skate lifestyle, taste andstyle-assuredness; understated leader-confidence atattainable price points. “Real-customer” marketing initiativesthat convey our brand fashion position through resonantstory-campaigns.

Each season, RedCar 7 awards one local menswear design graduate theopportunity to co-brand a micro-capsule exclusive to us at-retail. Thisdelivers fresh perspectives to market at a speed otherwise impossible givenour current scale. Further, it introduces a talented designer-name to themarket; with a contractual condition affording our company automaticequity in future designer-launched collections.

DESIGN INSPIRATION EXAMPLES

DAVID REDIKER- (323) 841-2576 9

The RedCar 7 line draws inspiration from EPTM, PublishBrand, Reason Clothing, and Rick Owens.

The company’s elevated 213 collection appeals to the 25-34 year oldself-made entrepreneur and social influencer. This “skater-CEO” valuesthe 213 collection for its all-day “wear-ability”, to take him from theskateboard to the boardroom. While approaching the luxury market,he holds fast to his skate roots.

The 213 collection delivers premium quality, tailored silhouettes, and asophisticated interpretation of Los Angeles urban-skate and action-sports fashion trends. The collection also pays homage to the golden-age of downtown Los Angeles; integrating classic west-coast vintage-tailored silhouettes, and “studio-era” wardrobe designers.

DESIGN INFLUENCES:

Viridi-Anne, Philip Lim, Neil Barrett, Gianluca Isaia, Brioni, Kiton.

Cinema “costume” designers: Marjorie Best, Anthony Powell,Albert Wolsky, Ralph Lauren--“The Great Gatsby” (1974.Paramount Pictures)

DAVID REDIKER- (323) 841-2576 10

At-retail, we examine the assortment offerings of luxurydepartment stores Lane Crawford (Hong Kong), HoltRenfrew (Canada), Selfridge’s, and Barneys New York.

OTHER BRANDS

In addition to our own brands, we maintain a vested interestand exclusive online-retail distribution agreement with theObsessed Gallery brand of contemporary art-driven appareland hard-goods.

Our company-founder serves this brand organization in an on-going executive-consulting capacity, developing all webstoreand wholesale merchandising and marketing campaigns.RedCar7 and Obsessed Gallery are not connectedoperationally, financially, or otherwise. Nor do we shareinternal (“confidential”) design information, vendors, rawmaterials, or operating facilities.

-Investment opportunities exist for Kali4/Obsessed Gallery-

DAVID REDIKER- (323) 841-2576 11

MERCHANDISING AND PRODUCTION

•Currently, we do not maintain relationships withinternational factories, buying or manufacturing agents.We DO maintain well-cultivated relations with a networkof local contractors and vendors.

•The company has not participated in trade shows,presented lines during major-market weeks, or engagedoutside wholesale representatives.

•Operating budgets and sales revenues, historically, havenot justified the self-funded production of physical productsamples or on-hand inventory to-date.

DAVID REDIKER- (323) 841-2576 12

SAMPLE STYLE COST BREAKDOWN- DOMESTIC PRODUCTION

0 5 10 15 20 25

4.2 oz CTTN LONG TEE

PRINTING (SCREEN)

MISC

TOTAL UNIT BASE COST

WS PRICE {BASE x2 + 5%}

UNIT COST $8.79 –WS PRICE $19.34

While domestic local-production affords a truncatedsupply chain and faster speed to market, we areaggressively pursuing options to manufacture themajority our product-lines offshore.

www.ShopRedCar7.com

DAVID REDIKER- (323) 841-2576 13

SOCIAL MEDIA INSIGHTS

Post- Investment Targeted Opportunities:• Mobile platform expansion • Produce and stock proprietary garments (eliminate existing

print on demand model).• Expand production of headwear, purchase footwear.• Influencer endorsement, media, and skate sponsorships.

• Our triumvirate of branded product lines targetindependently-successful urban-males ages 18-24, 25-34,and their children. Prices are moderate to opening luxury.

• Direct retail assortments includes complementarynationally recognized branded apparel and headwear.

WEBSITE/DIRECT-RETAIL CUMULATIVE INSIGHTS

DAVID REDIKER- (323) 841-2576 14

50% of Millennial males consider shopping a form ofentertainment and something to share with family and friends.(Urban Land Institute)

TankFarm Co.Tankfarm Co-founder described it as "Anthropologiefor men. Guys don’t want to go to 12 stores to getwhat they need”. Tankfarm offers clothing, alongwith items such as beard oil and pomade. Thecompany is …scouting for a fourth location.”

Packaged foods and meals accounted for 33.5% ofgross-profit dollars in convenience-stores and bottledbeverages averaged an 18.5% gross-margin.** Desserts,baked goods, specialty sweets average 70% gross-profit.**

*National Food and Beverage Group US Quick Serve statitstics, 2015

PHYSICAL RETAIL POP-UP CONCEPT (PROPOSED)

Temporary “pop=up” lifestyle retail destinations in target-dense locations of Los Angeles, such as:

Westwood VillageUSCDowntown Los Angeles/City Center/LA LiveWest HollywoodSanta Monica

CURRENT FULFILLMENT MODELRETAIL (D2C)

VENDOR-BRAND GOODS

• We maintain a small inventory of vendor-sourced accessories,headwear, and national-label fashion apparel brands. We do notallocate funding or utilize revolving credit for open-to-buy,seasonal, or annual buy plans.

OUR OWN BRANDS

• Presently, we produce all RedCar7 and RedCar KiDS garmentsper pre-paid customer order. Per order, garments aremanufactured as “one-offs” through a third-party “print-on-demand” contractor. We select from a pre-determinedassortment of base garments (“blanks”) within our contractor’sinventory offerings. The production turn-around expectancy is7-10 days; with an additional shipping expectancy of 5-7 days todomestic retail customers. International orders are shipped viaexpress DHL.

• There is no physical inventory of proprietary merchandise.

WHOLESALE (B2B)

• We market our wholesale offerings via computer-generated“mock-up” virtual product samples, presented on line sheets.There are no physical sample-lines. Potential customers areprovided with a web address link to our virtual showroomat Brandboom.com.

• As of January 2017, we have no recorded, active or pendingwholesale orders. Our first potential quantity wholesaleorder was placed on November 15, 2016-- in the amount of$14,610 (780 units). Operationally, we were not leveragedto meet the delivery timeframe, and informed the buyer.

DAVID REDIKER- (323) 841-2576 15

MARKET ADOPTION RATE

•We are leveraged for a rapid adoption rate acrossmens’ casual, career, and family fashion. With nocapital expenditure, our merchandise consistentlygarners global recognition from competitors andinfluencers (including The Hundreds, Reason Clothing,Publish Brand, EPTM, Greg Selkoe, Fam Mirza), andprofessional skate-athletes.

•Our focus remains on the most robust spendingsegments: “HENRY”s and “YUMMies”. (High EarnersNot Rich Yet and Young Urban Males With Money)

DAVID REDIKER- (323) 841-2576 16

Safeguarding Investment

• From time to time, we may share select trend andtheme concepts with trusted retail buyers andexecutives who have pledged their support.

• Our plans of action and expansion schedule areformulated in successive graduation.

Incremental Revenue Growth Initiatives For 2017

• Leverage our digital, social, and mobile outlets; as well as studio-services and endorser/influencer relationships to increase customer engagement.

• Market our consumables categories as a healthy alternative in the convenience grab-and-go sector; optimizing inventory productivity.

• Duplicate select styles in both adult and children’s sizes.

• Expand into footwear, skate supplies, grab-and-go impulse items.

PLANS AND BENCHMARKS

PROPRIETARY MENS’ BRANDSWHOLESALE AND RETAIL SALES

Q1

Q2

Q3

Q4 2

1

2

1

1

2

3

1

2

2

3

Q1 Q2 Q3 Q4

LEASED DOORS 2

PHYSICAL POP-UPS 1 2

WHOLESALE BRANDS 1 1 2 3

ONLINE D2CPLATFORMS

1 2 2 3

FIRST YEAR EXPANSION

The progression ofthis schedule ispursuant to salesproductivity, theability to maintainoperating andprofit margins, anda favorable weeks-of-stock ratio atphysical outlets

DAVID REDIKER- (323) 841-2576 17

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000

YEAR

ONE

YEAR

TWO

YEAR

THREE

WHOLESALE SALES $225,000.00 $625,000.00 $720,000.00

RETAIL SALES $195,000.00 $585,000.00 $995,000.00

TOTAL SALES $420,000.00 $1,210,000.00 $1,715,000.00

SUBTOTAL COST OF

SALES$252,000.00 $726,000.00 $1,029,000.00

R7C MENS & 213 BRAND


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51.90%

51.80%

30%

61.50%

48.10%

48.20%

70%

38.50%

SKATE SUPPLIES/MOBILE ACCESSORIES

NOVELTY-GIFT/KIDS/GAMING/LPS/COLLE

CTIBLES

PACKAGED SNACKS/DESSERT/BOTTLED

BEV/CONFECTIONS

GRAB-N-GO/COMMISSARY PREPARED FOODS

LIFESTYLE CATEGORIES

44%

62.10%

70%

42.20%

56%

37.90%

30%

57.80%

PROPRIETARY BRANDED MENSWEAR ("PRIVATE LABEL")

BRANDED APPAREL (NON TEAM-LICENSED ATHLETIC)

BRANDED ATHLETIC FOOTWEAR

GROOMING/SKINCARE PRODUCTS

PLANNED MARGIN STRUCTURE

Merchandise Margins Cost of Goods Sold

Cost of Goods Sold 2019 69.8%

201875%

201778.3%

Gross Margin 38.9% 29.9% 21.4%

MerchandiseMargin

52.8% 45.9% 31.5%

Selling, Generaland Administrative Expenses

20.9% 27.8% 33.3%

Net InterestExpense

2.7% 3.3% 4.89%

EBITDA 15.1% 12.6% 8.1%

Online RetailPhysical Retail

35

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1[1]


Seed-Stage Through 4nd Quarter Funding Needs

ASSETS

Cash/Equivalents $200

Raw Materials and Inventories

$200

Prepaid Expenses $0

Property/Equipment $0

Credit Facility (revolving, unaccessed)

{$50,000USD}cost of interest waived for first 365 days.

LIABILITIESCurrent, Deferred,and/or Long-term

$0

AccountsPayable

$0 ANNUALLY

DerivativeLiability

$0

Other

CurrentLiabilities:

$0

Long Term Rent/Leases

$0

Long Term Debt

$0

Shareholder Equity(Deficit)

$0

TOTAL CURRENT LIQUID ASSETS: $400. USD TOTAL

LIABILITIES$0

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• We seek up-to $100,000 EQUITY-STAKEINVESTMENT, in exchange for a commensuratepercentage of minority equity-ownership andpreferred shares.

• There are no outstanding shares or completed rounds offundraising. (Unless noted, any shares issued shall beconsidered as “preferred”. There are no diluted or“common” shares as of January 2017.)

• At this pre-revenue phase, there are no substantialcollateral assets, equipment or finished-goods.

• With no physical samples or proprietary inventory on-hand, our historical ability to robustly pursue retail andwholesale initiatives has been impacted.

PLANS OF ACTION AGAINST INVESTMENT

OPTION I

$15,000

• Contractor-produce one full 20-30 style adult and infantgraphicwear sample line.

• Manufacture up-to 120 units ofeach style to have on-hand for e-commerce, pop-up store, and at-once wholesale order fulfillment.

• OR enable us to purchase andmaintain our own in-house DTGprinter and drying equipment, andproduce approximately 500-800finished garments.

• Budget $1,200 for Open-To-Buy.

• Allot for approximately $3Kinfluencer/endorser marketingand limited paid advertisingcampaigns for the R7C mens andinfant/childrenswear collections.

OPTION II

$50,000

• Option I as well as the productionof 8-10 sample styles of 213Skatecut-and-sew. (One micro-collection sample-salespresentation.)

• Production of two-three fullsample-lines for east and westcoast showroom placement.

• Enter into short-term wholesaleshowroom/representativeagreements with a domesticUS east coast and west coastshowroom/brand collective, aswell as a Canadian-andinternational territory salesrepresentative/collective.

• $2K-$5K Open-To-Buy for retailstore site moderate-marketvendor product lines (EPTM,Reason Clothing)

• Allot for approximately $10Kinfluencer/endorser marketingacross R7C and 213Skate adultapparel lines.


OPTION III

$100,,000 +

• Options above, as well as substantial budget formarketing/endorser/sponsorship/product-placement/advertorial initiatives across ALL brandnameplates.

• Short-term “pop-up” physical store location in Los Angeles,which would entail the permitted-allowance of barbershop,interactive skate platforms, event and gallery space, grab-and-go pre-packaged shelved snack consumables and bottledbeverages, plus full liability insurance.

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A seasoned fashion merchant of several iconic specialty retailers,David Rediker began his buying career in mens’ artisan tailoredclothing, mentored by Murray Pearlstein at Louis Boston. Mr.Rediker served in corporate-merchandising roles with severalconsumer-product brands and retailers in their start-up phases;including ApparelZoo.com and Foreign Exchange Clothing Stores.Prior to establishing The RedCar7 brands, he was responsible forthe planning and allocation of mens and womens fashion appareland footwear at pop-culture luxury department store Kitson. Mr.Rediker’s fashion experience includes a decade in visual creativeservices. He held visual display positions with venerable retailersLord & Taylor, Saks Fifth Avenue, and Barneys New York inBeverly Hills. With a lifelong fascination for independent,underground and experimental film, David Rediker earned hisBachelor-of-Arts Cum Laude in Film Studies at Emerson College.

DAVID REDIKER, Founder


Mr. Gomes oversees garment technical design, productdevelopment and quality assurance. Before joining us to developthe 213 cut-and-sew tailored-casual collection, he was a men'sbottoms designer with the Ripcurl brand-- one of the “big three”in the surfwear category-- in their South American division.

Mr. Parker, formerly the Vice President of Merchandising for theKitson luxury department stores chain, will oversee thedevelopment and capital management for our brands; includingall wholesale, manufacturing, and physical retail enterprises. Hehas held senior-executive merchandising roles at Saks FifthAvenue and Barney’s New York. At the moderate specialty retailmarket, Mr. Parker served as the Director of Merchandising atteen-retailer Tilly’s. At Guess, Inc., he was responsible for leadingthe retail e-commerce division.

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MARK PARKER, GMM & COO

FERNANDO C. GOMES, Designer - 213 Skate

Documents

REDCAR7_INVESTbrief 0121