-------------------------------------------------------------------------------- DOCUMENT CONTROL (HEADER) -------------------------------------------------------------------------------- Document ID : DAB_BP_7_001 Title : Business Plan, Section 7, Funding Request Version : 1.1 Status : DRAFT Classification : Internal, Confidential Prepared By : PYB / Daralbeida Reviewed By : (pending) Approved By : (pending) Approval Date : (pending) Owner : PYB / Daralbeida Date Created : 2026-04-01 Last Revised : 2026-06-13 00:00 UTC Update Cycle : Before any investor distribution; on any change to deal structure, entity, or capital requirements Next Review Due: Before next investor distribution Annual Review : (pending) Retention : 3 years from date of creation Department : STRAT Style : BPGP Keywords : funding request, seed round, SAFE, convertible note, use of funds, capital path, Daralbeida Holdings LLC Related Docs : DAB-BP-8-1-8-2-001; daralbeida_legal_structure.pdf Supersedes : DARX_STRAT_BP_SECTION7_20260401.txt Superseded By : (none, current version) -------------------------------------------------------------------------------- OUTLINE -------------------------------------------------------------------------------- 1. PURPOSE AND SCOPE 2. CURRENT FUNDING 2.1 Summary 2.2 Assets Built with Founder Capital 3. FUTURE FUNDING NEEDS 3.1 Seed Ask 3.2 Deal Structure 3.3 Capital Path 3.4 Legal Entity Structure for Investment 4. USE OF FUNDS 4.1 Phase 1, Proof-of-Concept Shipment 4.2 Phase 2, Year 1 Main Shipment 4.3 Capital Discipline Principles 5. AI PROMPTS 6. REVISION HISTORY 7. ACRONYMS 8. GLOSSARY DOCUMENT CONTROL (FOOTER) -------------------------------------------------------------------------------- ================================================================================ 1. PURPOSE AND SCOPE ================================================================================ This document is Section 7 (Funding Request) of the Daralbeida Business Plan. It documents the founder capital deployed to date, the seed ask, the deal structure, the capital path, the investment entity, and the phased use of funds. This section is prepared for investor distribution subject to the compliance notes below. Personal names of legal counsel and the founder are not included per Daralbeida document standards. All references use function titles only. ================================================================================ 2. CURRENT FUNDING ================================================================================ 2.1 SUMMARY The founder has invested approximately $50,000 to date, entirely from personal capital, with no external debt. This investment has funded the full pre-launch buildout of the business: brand identity, trademark filing, regulatory infrastructure, logistics architecture, and quality control protocol. The business is pre-revenue and operationally ready to ship. Metric Value ───────────────────────────────────── Founder capital invested $50,000 External debt $0 Revenue to date $0 Founder ownership 100% 2.2 ASSETS BUILT WITH FOUNDER CAPITAL Asset / Deliverable Status ────────────────────────────────────────────────────────────────── USPTO trademark, Class 029 Filed USPTO trademark, Class 035 Filed Domain daralbeida.com Registered and active Brand identity (palette, typography, label) Complete Compliance documentation suite (FDA, CBP, Complete MAFTA, export authority chain) Two-gate QC protocol (OxiTester + Eurofins) Documented, operational Producer qualification SOP Issued (DAB-SOP-SOURCING-001 Rev 1) Multi-scenario landed cost model Complete 3PL to FBA logistics flow Designed and validated Freight forwarder candidates identified DocShipper, Swift Cargo US trade counsel Engaged ================================================================================ 3. FUTURE FUNDING NEEDS ================================================================================ 3.1 SEED ASK Daralbeida is seeking $100,000 in seed capital. Combined with the $50,000 already deployed by the founder, total capital at launch is $150,000, sufficient to execute the proof-of-concept shipment, complete the Year 1 main shipment, and reach first revenue within the first operating year. No further external capital is anticipated before proof-of-concept is established. Year 2 expansion (DTC launch, BIB format, specialty retail) is structured to be funded from Year 1 Amazon FBA operating cash flow. A Series A is possible in Year 2-3 contingent on demonstrated Amazon velocity and B2B channel activation, but is not a dependency for the business to operate or grow. Metric Value ───────────────────────────────── Seed ask $100,000 Founder capital $50,000 Total at deploy $150,000 Target breakeven Year 1 3.2 DEAL STRUCTURE The seed round is offered as a convertible note or SAFE, at the investor's preference. SAFE is preferred for simplicity. Key parameters are indicative and subject to negotiation. Parameter Indicative Terms ────────────────────────────────────────────────────────────────── Amount $100,000, single closing, no tranching Instrument Convertible note or SAFE Valuation cap TBD at closing Discount rate 15-20% at conversion Conversion trigger Qualified financing of $250K or more, or Series A Interest (note only) 5-6% per annum, simple, accrued Maturity (note only) 24 months Pro-rata rights Offered Note: deal structure and investment entity (Holdings vs. Brands LLC) are pending advice from US trade counsel before investor distribution. 3.3 CAPITAL PATH Stage Detail ────────────────────────────────────────────────────────────────── Seed (current) Source: Angel, $100K note/SAFE. Trigger: Now. Purpose: Year 1 inventory, launch, marketing. Year 1 reinvest Source: Amazon FBA cash flow. Trigger: First revenue. Purpose: Inventory reorder, DTC buildout. Series A (optional) Source: Institutional/strategic. Trigger: 3,000+ units + B2B. Purpose: Wholesale scale, international, BIB. 3.4 LEGAL ENTITY STRUCTURE FOR INVESTMENT The business operates through three entities. Any future investor takes a stake in Daralbeida Holdings LLC, the Delaware parent entity. Entity Description ────────────────────────────────────────────────────────────────── Daralbeida Holdings LLC Owns the Daralbeida trademark, domain (Delaware) daralbeida.com, all digital brand assets, and the trade secret portfolio under DAB-TS-2026-01. Owns 100% of both operating subsidiaries. Does not trade, import, employ, or generate revenue directly. This is the investment vehicle. Daralbeida Brands LLC US operating entity. Importer of Record, (California) FDA facility registrant, FSVP program owner, MAFTA zero-duty claimant, Amazon Seller Central operator, and FDA US Agent for Daralbeida Maroc SARL. Daralbeida Maroc SARL Morocco operating entity. Party to all (Casablanca) supplier and mill contracts under Moroccan law. Executes all Morocco-side commercial and regulatory activity. US trade counsel is engaged and available to support instrument drafting and closing. ================================================================================ 4. USE OF FUNDS ================================================================================ The $100,000 seed round is deployed in two phases. Phase 1 validates the model before committing to full Year 1 volume. 4.1 PHASE 1, PROOF-OF-CONCEPT SHIPMENT (100-500 UNITS, LCL) Category Allocation ────────────────────────────────────────────────────────────────── Inventory (oil, bottles, packaging) $4,000-$6,000 Freight + 3PL prep + FBA inbound $4,000-$6,000 Eurofins CAL quality testing $500-$800 Phase 1 total $8,500-$12,800 4.2 PHASE 2, YEAR 1 MAIN SHIPMENT (~3,500 UNITS, FCL) Category Allocation ────────────────────────────────────────────────────────────────── Inventory (FOB Casablanca + landed 3PL) $30,000-$38,000 Brand and packaging finalization $8,000-$10,000 Marketing and customer acquisition $20,000-$25,000 Infrastructure and compliance $10,000-$12,000 Working capital and runway $7,000-$8,000 Phase 2 total $75,000-$93,000 Total seed deployment $83,500-$105,800 4.3 CAPITAL DISCIPLINE PRINCIPLES 1. No fixed overhead before revenue. 2. No external capital for BIB format, funded by Year 1 cash flow only. 3. No specialty retail slotting fees until Amazon velocity is proven. 4. Phase 2 does not begin until Phase 1 clears. 5. Hiring trigger: 3,000 units sold or B2B channel activation. ================================================================================ 5. AI PROMPTS ================================================================================ The prompt below regenerates an investor-facing summary of this funding request from the data captured in this document. Replace the bracketed tokens before running. ================================================================================ START OF PROMPT ================================================================================ You are a startup finance writer. Using the funding data below, draft a one-page investor summary for [COMPANY_NAME], a premium Moroccan EVOO venture. State the seed ask of [SEED_ASK], the founder capital of [FOUNDER_CAPITAL] already deployed, and total capital at deploy of [TOTAL_AT_DEPLOY]. Explain the deal structure ([INSTRUMENT], discount [DISCOUNT_RATE], conversion trigger [CONVERSION_TRIGGER]) and confirm the investment vehicle is [INVESTMENT_ENTITY]. Summarize the two-phase use of funds and the path to breakeven in [TARGET_BREAKEVEN]. Keep the tone factual, omit personal names, and refer to legal advisors by function only. ================================================================================ END OF PROMPT ================================================================================ ================================================================================ 6. REVISION HISTORY ================================================================================ Version Detail ────────────────────────────────────────────────────────────────── 1.0 Date: 2026-04-01. Author: PYB. Initial issue; personal names removed. 1.1 Date: 2026-06-13. Author: PYB. Reformatted to BPGP v3.1; content preserved; added AI Prompts and Revision History sections. ================================================================================ 7. ACRONYMS ================================================================================ 3PL Third-Party Logistics B2B Business to Business BIB Bag in Box CAL Chemistry Analysis Laboratory (Eurofins testing reference) CBP US Customs and Border Protection DTC Direct to Consumer EVOO Extra Virgin Olive Oil FBA Fulfilled by Amazon FCL Full Container Load FDA US Food and Drug Administration FOB Free On Board FSVP Foreign Supplier Verification Program FSMA Food Safety Modernization Act HTS Harmonized Tariff Schedule IP Intellectual Property IOR Importer of Record LCL Less than Container Load LLC Limited Liability Company MAFTA Morocco-America Free Trade Agreement P&L Profit and Loss PYB Internal reference code for the Daralbeida founder QC Quality Control SAFE Simple Agreement for Future Equity SARL Societe a Responsabilite Limitee (Moroccan limited company) SKU Stock Keeping Unit SOP Standard Operating Procedure STRAT Strategy (department code) TBD To Be Determined USPTO United States Patent and Trademark Office ================================================================================ 8. GLOSSARY ================================================================================ Convertible Note A debt investment instrument that converts to equity at a future financing round. Accrues interest and has a maturity date. Indicative terms: 5-6% per annum, 24-month maturity. Daralbeida Brand name of the premium Moroccan EVOO venture. Always one word. USPTO trademark application filed, Class 29 and 35. Daralbeida Holdings LLC The Delaware parent entity and investment vehicle. Owns the Daralbeida trademark, domain, all brand assets, and the trade secret portfolio. Owns 100% of both operating subsidiaries. Any outside investor acquires an interest in Holdings, not in either operating subsidiary. MAFTA Morocco-America Free Trade Agreement. Grants Moroccan-origin EVOO zero import duty under HTS 1509.10.4000. SAFE Simple Agreement for Future Equity. A startup investment instrument. Converts to equity at a future qualified financing round. No interest or maturity date. Preferred instrument for the Daralbeida seed round. Series A An optional institutional or strategic funding round in Year 2-3, contingent on demonstrated Amazon velocity and B2B channel activation. Not a dependency for the business to operate or grow. US Trade Counsel The Daralbeida-engaged legal specialist covering FDA, USPTO, CBP, FSVP, FSMA, and trade compliance. Available to support instrument drafting and investor closing. Function referenced by role only per Daralbeida document standards. -------------------------------------------------------------------------------- DOCUMENT CONTROL (FOOTER) -------------------------------------------------------------------------------- Document ID : DAB_BP_7_001 Version : 1.1 Status : DRAFT Last Revised : 2026-06-13 00:00 UTC Update Cycle : Before any investor distribution; on any change to deal structure, entity, or capital requirements Next Review Due: Before next investor distribution Annual Review : (pending) Owner : PYB / Daralbeida Distribution : Internal only; investor distribution requires founder approval and US trade counsel review of deal structure Review Triggers: Any change to deal structure, investment entity, or capital requirements; before any investor distribution COMPLIANCE : Deal structure (convertible note vs SAFE) and investment entity (Holdings vs Brands LLC) are OPEN ITEMS pending US trade counsel advice. Do not distribute to investors until these items are resolved. Personal names of counsel and the founder have been removed per document standards. Refer to functions only. Revision History: See Section 6 -------------------------------------------------------------------------------- END OF DOCUMENT --------------------------------------------------------------------------------