Cadi 2023 Q2 Investor Update

Good afternoon, Cadi Family,

I hope this letter finds you in good health and high spirits. As we near the end of 2023 Q2, I am pleased to provide you with an update on our company's progress and Performance. This period has been eventful, marked by noteworthy achievements, and I am confident that we will finish the year strong.

In this email, I would like to address the following points:

1. Round closing details: Share and bonus share distribution timeline.
2. Revenue uptick and the future of Cadi.io.
3. Product development updates and challenges.
4. Recent and upcoming activities at Cadi.
5. Investor sign-up promotion

Crowdfunding results: Cadi raised over $381,000 from 264 investors in just four months, bringing our total raised to over $2.5 million from more than 2,200 investors. We allocated $95,000 for advertising, $35,000 for Dealmaker fees, $20,000 for a marketing agency, and employment fees. Crowdfunding requires constant attention and refinement for success, and we have achieved our third consecutive successful round.

Closing a round takes approximately 90 days, considering filings and built-in delays for investors, which affects the speed of capital disbursements to the company. Cadi received most of the net capital raised this week, and the transfer agent will soon distribute the shares and bonus shares. I will continue to communicate updates through email.

Financial Performance: I am pleased to report that our financial Performance in the past quarter has been on an upward trajectory. We experienced a significant 25% increase in revenue over the last 31 days. Our efforts to increase revenue by expanding our customer base and launching successful products have contributed to this achievement. Cadi earned $109,000 in revenue from all our channels last month. However, our access to inventory capital currently limits us, and we aim to improve our product margins with a lower cost of capital and increased inventory access.

Operational Highlights: As we near completion of the Warehouse Management System (WMS), we have developed systems to manage our various selling channels. This process has provided valuable learning and accomplishments. Matt has successfully implemented improved procedures and strategies that will be integrated into our WMS, resulting in seamless revenue growth.

Recent Projects: Our focus has been on the WMS project, a crucial system that enables Cadi to scale. Additionally, we have been working closely with our operations and financial advisor, Scott Di Valerio, who has provided strategic direction and financial modeling expertise. We have dedicated time to develop pitches, design graphics, and articulate our vision and path to success. While this has been valuable, we acknowledge that progress can sometimes be hindered.

Product Development: Finalizing the funding round and transitioning and consolidating our development teams have presented challenges this month. We are transitioning from our South American team to our warehouse and WMS team, and securing the tech stack has demanded attention, resulting in a slower transition. However, this transition is expected to commence this week, allowing us to make progress.

The near completion of the warehouse management system, the backbone of our product, is a significant milestone that will facilitate the onboarding and management of products on Cadi.io. This development will drive our progress in the marketplace.

Cadi Kiosk Relaunch: We are actively planning a kiosk tour, starting on the west coast in the summer and moving towards Nashville to Florida for the winter season. We have invested in the payment platform and necessary features for a summer launch.

Cadi is focusing on the west coast in these markets: Seattle, Bay Area, Portland, Los Angeles, Orange County, CA, San Diego, and Spokane, WA.

We will keep you updated as more information becomes available.

The second kiosk is finalized and will be sent to the USA soon. We are excited about the opportunities this presents.

REMEMBER, We have a special going for all investors. Sign up for Cadi's annual membership, Cadi PLAY, and receive $79 in Cadi Cash to use throughout the site. Engagement is an important metric of our relationship with our partners. Sign up at Cadi.io.

We have reduced all the prices of our MERCH and GOLFBALLS.

In conclusion, I am grateful for your continued support and confidence in our company. Our success is a testament to our dedicated team's collective efforts and our investors' unwavering support. We are committed to delivering value and achieving sustainable growth as we move forward.

If you have any questions or require further information, please do not hesitate to reach out to me. We appreciate your ongoing partnership and look forward to sharing further updates in the coming months.

As always, Go Cadi!

Tyler Gottstein & Matt Ahrens

Co-Founders

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