← Data Room
E4LInc.
Use of Funds & Milestones
August 2026
Confidential

Where the $5M goes, and what it buys.

The raise funds inventory, product R&D, consumer growth and operations through to profitability — with a deliberate cash cushion. The model reaches its first EBITDA-positive quarter in Q2 2027.

The raise

E4L is raising $5.0M on a SAFE with a $73M post-money cap plus a 15% discount (lower of), converting into Class A Preferred at the next priced round (intended within ~18 months). The proceeds carry the Company from launch (revenue begins September 2026) through to sustained profitability, alongside operating cash. See the Deal page and the SAFE for full terms.

Use of funds

Indicative allocation of the $5.0M raise
UseApprox.What it funds
GEM device inventory$1.0MBuilding the GEM wearable inventory to meet launch and reorder demand.
R&D — FIELD / AI platform + clinical evidence$1.0M+Advancing the consumer AI, the FIELD engine and the published-evidence base.
Consumer growth$1.5MPaid media and acquisition to drive app trials, device and infoceutical sales.
Operations$1.0M+The Salt Lake City team, supply chain, and running the launch calendar.
Cash cushion$0.5MAdded working-capital buffer to keep cash comfortably positive.
Total$5.0M

Indicative allocation based on management’s current plan; the Company may reallocate as conditions change. Consumer paid media is deliberately not trimmed — growth is a priority use of this capital.

The founder’s pre-close working-capital bridge (peak ≈$0.8M) is repaid at first close and is reflected in the allocations above; beyond that repayment there is no founder debt ahead of this money.

No capital leaks to legacy claims. There is no seller note and — beyond repayment of the founder’s pre-close working-capital bridge (peak ≈$0.8M) at first close — no founder debt ahead of this money; the acquired assets and IP were contributed as equity, not a repayment stream. The one contingent legacy item (the Stoneburner Put) is funded, if ever exercised, by a separate ~$2M raise and/or the founder’s personal backstop loan — not from the SAFE investors’ capital. See the Capitalization Summary and the Disclosure Memorandum.

Milestones this capital reaches

Key milestones (forecast model v2.6, July 2026)
WhenMilestone
September 2026Revenue begins; GEM app, wearable and infoceuticals live; practitioner channel ramping.
Q4 2026First revenue period: $2.7M (partial year, Sep–Dec — the first quarter of revenue).
Q2 2027First EBITDA-positive quarter.
FY2027First full year: $16.0M revenue; EBITDA +$1.7M.
FY2028–FY2031Scale to $134.7M revenue by FY2031, EBITDA +$39.1M (~29% margin).

Blended gross margin stays ~82% across the plan. Cash never turns negative in any modeled scenario — minimum ~$1.2M at Q3 2026, before the first EBITDA-positive quarter. Forward-looking projections based on management assumptions; actual results will differ.

Reinvesting from strength

From FY2027 the plan layers a growing but disciplined reinvestment (~3–5% of revenue, ~$15M cumulative through FY2031) into the FIELD / AI platform and clinical evidence — a deliberate choice to build the moat while staying highly profitable (~29% FY2031 EBITDA margin). It is the funded bridge from the conservative products-and-subscriptions base to the larger, unmodeled licensing upside described in the Industry Thesis.

Confidential. For accredited investors only. Securities offered under Rule 506(c) of Regulation D; accredited status is verified before any subscription is accepted. Figures are illustrative and forward-looking, drawn from forecast model v2.6 and management assumptions; actual results will differ, and the allocation of proceeds may change. The Disclosure Memorandum and the executed SAFE govern. Company name to be conformed to the name on the Company’s filed Nevada charter.

E4L, Inc. · Salt Lake City, Utah · harry.massey@e4l.com · © 2026