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Invest in HOHM Inc.

Custom engineered, sound-blocking sleep pod, bookable via mobile app.

  • $172,250Amount raised
  • $1,000Minimum
  • $3,500,000Valuation cap

Purchased securities are not currently tradeable. Expect to hold your investment until the company lists on a national exchange or is acquired.

HOHM Inc. is offering securities under both Regulation D and Regulation CF through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to 7.50% of the value of the securities sold and equity compensation equal to 5.00% of the number of securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, the contents of the Highlights, Term Sheet sections have been prepared by SI Securities and shall be deemed broker-dealer communications subject to FINRA Rule 2210 (the “Excluded Sections”). With the exception of the Excluded Sections noted above, this profile contains offering materials prepared solely by HOHM Inc. without the assistance of SI Securities, and not subject to FINRA Rule 2210 (the “Issuer Profile”). The Issuer Profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures in the offering's draft. The contents of this profile are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.


Company Highlights

  • Installed at University of Arizona in Dec 2018, one other University has approved an installation.
  • Over 150 bookings total in 3 months live at the University of Arizona, with a 22% repeat user rate.
  • Agreement with Cocoon by Sealy, the mattress company owned by Tempur-Sealy, to provide mattresses and funding for Hohm pods.
  • Featured on prominent media outlets such as ESPN, ABC10, Thrive Global, & More.
  • Founding team with experience at Sony, Electronic Arts, and others.

Fundraise Highlights

  • Total Amount Raised: US $172,250
  • Total Round Size: US $1,000,000
  • Raise Description:  Seed
  • Minimum Investment:  US $1,000 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $3,500,000
  • Offering Type:   Side by Side Offering

HOHM is a custom engineered, sound-blocking sleep pod, bookable via mobile phone, that allows for a quick recharge.


It is no revelation that sleep is something that we need. Sleep deprivation is a problem that affects not only university students, but corporations and their employees, hospitals and their doctors and nurses, travelers within airports, and more. There is a need for providing short term sleep on the go in a safe and comfortable space. If you need food on the go, another basic human need, there are hundreds of options, but finding a short term option for sleep is a difficult task. We believe HOHM will become that option. 

HOHM launched at the University of Arizona on December '18 and has been approved at a second university for Spring '19. We have 4 additional universities that we are in discussions with for Fall '19. Our goal is to spread to 50 universities & 50 Corporations over the next 5 years.  

HOHM was recently accepted into the San Diego International Airport’s Innovation Lab, with the objective of a long-term placement at the end of the 3-month accelerator. We are also in early discussions with LAX.

We have been featured on ESPN, ESPN Business Radio, Thrive Global, ABC10, and more.

In our first week live at the University of Arizona we had 39 bookings. In total, we have had 175 bookings, with an average repeat user rate of 22%, in the first 3 months live at the U of A. Our launch was a satisfying feeling for us after all of this hard work we've put in and we plan to duplicate this success at schools across the nation. 

We have seen the word of mouth spread when we place these on campus. Watching the reaction and usage, we can't help but feel we are on to something big here. 

Product & Service

HOHM is looking to bring a high tech product to this emerging  "sleep on the go" market.

Product Features

  • 43.5 Sq. Ft. Sleep Pods w/ exterior made from powder coated steel
  • Twin Sized Mattress from Cocoon by Sealy
  • 4 Overhead LED Skylights
  • Privacy & Sound-Blocking Curtain - blocks up to 20 DB of sound
  • Charging Ports for Cellphone/Laptop- 2 Standard Outlets, 2 USB
  • Units Assemble in ~3-4 Hours
  • Plugs Into Standard 120V Outlet
  • 2 High-Powered Overhead Ventilation Fans 
  • Mobile Friendly Web Booking Platform (hohm.life/book)

Coming Soon

  • Native App in development, projected release in Q2 of 2019
  • Outdoor Pod in development, projected release in Q2 of 2019

HOHM is providing a turnkey solution for our locations, meaning we are not just dropping in our pods, we are providing our HOHM units, the technology to book them, tracking usage, as well as having one attendant for every four pods to manage the activation. 

The Model

Our business model varies depending on whether we are placing in universities, airports, company offices, events, etc. For Universities, Corporations, and Hospitals, we charge the location a monthly fee for our service, similar to a SaaS company. We call it "Sleep as a Service".

In our University model, we provide the initial 4 pods to the University at a discount and give students 2 hours per month to use Hohm. We fund the initial 4 pods via brand partnerships, who pay a monthly premium to have their products in our units. For example, we have Cocoon by Sealy paying for their mattress, a pillow company paying for their pillows, and a sheet company paying for their sheets.

The University must pay a set monthly fee for any additional units beyond the initial 4 and the students must pay for any additional hours beyond the initial 2. Our University model allows for high usage and scale across the US.

For corporate activations, the company will pay a set monthly price, based on the number of Hohm pods installed, and employees will get 2-4 free hours per month to use. 

With Airport placements, we will likely pay a monthly fee to the airport, based on the sq. footage that our HOHM placement takes up. We then charge travelers to use our service at a higher rate of $25-35 per hour, to offset our rent costs. Due to the traffic, need, and a captive audience within airports, we expect to bring in anywhere from $30-$100k in monthly revenue, per placement. This projection is dependent on the number of units placed, location within the airport, airport size and traffic, etc. 

Growth Plan

Our goal for the first four years is to focus on expanding our: 

  1. Exclusive Placements: Major airports for travelers, colleges for students, hospitals for visitors,  corporations for employees, etc.
  2. Multi-Day Event Placements: Major Conferences, NFL Training Camps, Music Festivals, Hackathons, etc. 

Media Mentions

Team Story

The HOHM team is ambitious, determined, and smart. We have years of experience in tech, having built successful products and companies previously. We have a strong technical team: our CTO worked on the Playstation with Sony, and our lead developer worked at Electronic Arts and attended Stanford. Our CEO started his first successful company at age 19 in the medical space, bootstrapped over 4 years to over $500k in sales until it was ultimately acquired in late 2015. 

Our team of advisors has experience raising Venture Capital from top VC firms, including Sigma Partners, Austin Ventures, Hummer Winblad Venture Partners, and Arena Ventures.

Together with our core team, advisors, and board, we plan to grow HOHM fast and effectively into the company we believe it can become.

Founders and Officers

Nikolas Woods

Founder/CEO

Nik Woods is a successful, driven, serial entrepreneur, who has been building companies since he was a senior in high school. Nik combines creativity with a strong work ethic to produce results. Nik has been featured in outlets such as Thrive Global, ESPN Business Radio, and more. Nik has been starting businesses since age 14, with his first successful company at the age of 19. He built Lightbox Medical over 4 years with no outside funding and it was acquired at the end of 2015.

Nikolas Woods

Founder/CEO

Nik Woods is a successful, driven, serial entrepreneur, who has been building companies since he was a senior in high school. Nik combines creativity with a strong work ethic to produce results. Nik has been featured in outlets such as Thrive Global, ESPN Business Radio, and more. Nik has been starting businesses since age 14, with his first successful company at the age of 19. He built Lightbox Medical over 4 years with no outside funding and it was acquired at the end of 2015.

Key Team Members

Brett Lee

CTO

James Overton

Lead Developer

Kyle Mellor

Director of Partnerships

Notable Advisors & Investors

Mike Alfred

Investor, Board Member

Martha Shaughnessy

Investor, Founder of The Key PR

Djamel Bettencort

Investor, CEO of Organifi

Jon Carder

Advisor, Advisor

Brian Wong

Advisor, Advisor

Ajay Prakash

Advisor, Advisor

Q&A with the Founder

  • Have you participated in any accelerator programs? If so, please detail.
    We graduated from the Founder Institute Accelerator Program (Spring ’17) and are currently a part of the Entrepreneur Empowerment Pilot with Techstars. 
  • Please detail your product/platform and its key use cases.
    HOHM is a custom engineered, 43.5 sq. ft, sound-blocking sleep pod, designed to provide individuals with comfort, privacy, and a quick escape from any hectic environment. Each HOHM unit contains a comfortable twin bed, a touchscreen bedside tablet, charging stations, and more. All placements are monitored by a HOHM attendant to ensure users check in properly, units are cleaned after each use, sheets are changed after each use, and to ensure single occupancy. HOHM can be booked instantly via our website and/or mobile app for 30 minutes all the way up to 4 hours. We are providing our customers with on demand sleep, instantly bookable, and at their fingertips, in the locations where they need it the most.
  • Please detail your strategic partnerships and their nature.
    Tempur-Sealy (mattress company): Tempur-Sealy is paying to have their mattresses at our activation, as well as providing mattresses for our initial pods.

    Mediflow (pillow company): Mediflow is paying to have their pillows at our activation, as well as providing our pillows.

    Ettitude (sheet company): Ettitude is paying to have their sheets at our activation, as well as providing our sheets. 

  • Please detail your barriers to entry. 
    There are numerous barriers to entry for competitors.

    Here is a look at them:

    • The Product- With HOHM, we aren’t just putting up a website, which can be easily duplicated, we have taken the time to build out and engineer a sleep pod. The development costs on this from idea to construction can easily run into the six to seven figures and would take years to develop.
    • Early Mover Advantage- With HOHM, it really becomes a capturing of territories, which is why raising money is so key for us. The faster we move, the more locations we can install, the more our brand presence increases, the more advantage we have.
    • Partnerships- HOHM currently has an agreement with Cocoon by Sealy, owned by Tempur Sealy, which took us 5 months to establish. With a billion dollar mattress company backing us, it becomes a huge barrier to entry for new companies who wish to compete with us. We also have partnerships established with leading pillow and sheet companies. 

  • Please detail your strategy to scale post-raise, including your product and business roadmap.
    We plan to use the funds raised to invest into sales & marketing, thus primarily in the University & Corporate sectors to start. However, as we grow, and begin to gain more and more incoming interest we will also obviously entertain selling into other major sectors including airports, hospitals, major events, and more.

    Our goal is to spread to over 100 University & Corporate locations over the next 5 years. 

  • The Q&A with the Founder is based on due diligence activities conducted by SI Securities, LLC. The verbal and/or written responses transcribed above may have been modified to address grammatical, typographical, or factual errors, or by special request of the company to protect confidential information.

    Term Sheet

    A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.

    Fundraising Description

  • Round type:
    Seed

  • Round size:
    US $1,000,000

  • Raised to date:
    US $172,250
    US $28,500 (under Reg CF only)

  • Minimum investment:
    US $1,000

  • Target Minimum:
    US $450,000
  • Key Terms

  • Security Type:
    Crowd Note

  • Conversion discount:
    20.0%

  • Valuation Cap:
    US $3,500,000

  • Interest rate:
    4.0%

  • Note term:
    24 months
  • Additional Terms

  • Investment Proxy Agreement

    All non-Major Purchasers will be subject to an Investment Proxy Agreement (“IPA”). The IPA will authorize an investment Manager to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IPA included with Company's offering materials for additional details.


  • Custody of Shares

    Investors who invest $50,000 or less will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information. 


  • Closing conditions:
    While HOHM Inc. has set an overall target minimum of US $450,000 for the round, HOHM Inc. must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to HOHM Inc.'s Form C.

  • Transfer restrictions:
    Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

  • Use of Proceeds

    Investor Perks

    Invest $1k-$5k before May 1st and receive:

    • 240 minute credit to HOHM activations (no expiration date),
    • HOHM Tee Shirt (not sold to the public)

    $5,000-$14,999:

    • 240 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt
    • 1 hour phone call with the Founder/CEO

    $15,000-$24,999:

    • 420 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt
    • 1 hour phone call with the Founder/CEO

    $25,000-$49,999:

    • 600 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt
    • Optional quarterly update call with Founder/CEO

    $50,000-$99,999:

    • 1,200 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt
    • Flown out to the first HOHM activation at the University of Arizona for a tour (travel/accommodations paid for), dinner with the Founder/CEO
    • Optional quarterly update call with Founder/CEO

    $100,000-$199,999:

    • 2,400 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt (up to 4)
    • Flown out to the first HOHM activation at the University of Arizona for a tour (travel/accommodations paid for) and dinner with the Founder/CEO
    • Flown out to San Diego for a tour of headquarters and dinner with the Founder/CEO as well as PHD Sleep Scientist for Navy Seals (travel/accommodations paid for), up to 4 guests
    • Optional quarterly update call with Founder/CEO

    $200,000+:

    • 6,000 minute credit to HOHM activations (no expiration date)
    • HOHM Tee Shirt (up to 4)
    • Flown out to the first HOHM activation at the University of Arizona for a tour (travel/accommodations paid for), dinner with the founder
    • Flown out to San Diego for a tour of headquarters and dinner with the Founder/CEO as well as PHD Sleep Scientist for Navy Seals (travel/accommodations paid for), up to 4 guests
    • Optional quarterly update call with Founder/CEO
    • Your own HOHM pod for your office/home/workplace, with your choice of exterior color, & name engraved on the exterior

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Prior Rounds

    The graph below illustrates the valuation cap or the pre-money valuation of HOHM Inc.'s prior rounds by year.


    This chart does not represent guarantees of future valuation growth and/or declines.

    Seed

  • Round Size
    US $50,000
  • Closed Date
    Dec 1, 2017
  • Security Type
    Convertible Note
  • Valuation Cap
    US $500,000
  • Financial Discussion

    Operations

    HOHM, Inc. (a Delaware C-Corporation) produces a custom engineered, 43.5 sq. ft, sound blocking sleep pod, designed to provide individuals with comfort, privacy, and a quick escape from the hectic environment. Each HOHM unit contains a comfortable twin bed, a touchscreen bedside tablet, charging stations, and more. All placements are monitored by a HOHM attendant to ensure users check in properly, units are cleaned after each use, sheets are changed after each use, and to ensure single occupancy.

    Liquidity and Capital Resources

    The proceeds from the Offering are essential to our operations. We plan to use the proceeds as set forth above under "Use of Proceeds", which is an indispensable element of our business strategy. The Offering proceeds will have a beneficial effect on our liquidity, as we have approximately $44,000 in cash on hand as of March 19, 2019 which will be augmented by the Offering proceeds and used to execute our business strategy.

    The Company currently does not have any additional outside sources of capital other than the proceeds from the Combined Offerings.

    Capital Expenditures and Other Obligations

    The Company does not intend to make any material capital expenditures in the future.

    Trends and Uncertainties

    After reviewing the above discussion of the steps the Company intends to take, potential Purchasers should consider whether achievement of each step within the estimated time frame is realistic in their judgment. Potential Purchasers should also assess the consequences to the Company of any delays in taking these steps and whether the Company will need additional financing to accomplish them.

    The financial statements are an important part of this Form C and should be reviewed in their entirety. The financial statements of the Company are attached hereto as Exhibit B.

    Market Landscape

    We want HOHM to be the company you think of when you hear the phrase "sleep pod." Although this market is currently fragmented, HOHM’s goal is to become a dominant company in that space. 

    According to a Harvard Study, Sleep Deprivation costs the US workforce, an estimated $63 billion in productivity loss, each year, and HOHM seeks to solve that issue.

    We think the biggest differentiator between HOHM and Metronaps, or any of the other small pod companies, is that HOHM is looking to provide a full turnkey service to each location. We are not just dropping a pod or chair in and asking them to figure out the rest (which can become a liability).

    We provide:

    • Our HOHM Pods
    • Our HOHM Web App/Booking Technology for the users of the space
    • A HOHM attendant to: keep units clean, change sheets after use, monitor placement, ensure one guest per reservation, answer questions, etc.

    We are providing a full turnkey solution so that the client doesn't have to worry about who is going to clean or handle the booking. We provide all of this for them.

    The global airport sleeping pod market is expected to surpass $75 million by 2021 and HOHM is also planning to infiltrate more than just the airport market(which many of our competitors are solely focused).

    Risks and Disclosures

    The Company’s cash position is relatively weak. The Company currently has around $44,000 in cash balances as of 3/19/2019. This equates to approximately 8 month of runway. The company believes it can extract cash and bring in additional capital to meet demands through the duration of the raise. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.

    The Company’s business model is capital intensive. The amount of capital the Company is attempting to raise in this Offering is not enough to sustain the Company’s current business plan. In order to achieve the Company’s near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If the Company is not able to raise sufficient capital in the future, it will not be able to execute its business plan, its continued operations will be in jeopardy and it may be forced to cease operations and sell or otherwise transfer all or substantially all of its remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.

    The Company may not be successful in obtaining issued patents. The Company's success depends significantly on their ability to obtain, maintain and protect their proprietary rights to the technologies used in their services. The Company is not currently protected from their competitors. Moreover, any patents issued to them may be challenged, invalidated, found unenforceable or circumvented in the future. Any intellectual enforcement efforts the Company seeks to undertake, including litigation, could be time-consuming and expensive and could divert management’s attention.

    The Company relies heavily on their technology and intellectual property, but they may be unable to adequately or cost-effectively protect or enforce their intellectual property rights, thereby weakening their competitive position and increasing operating costs. To protect their rights in our services and technology, they rely on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. They also rely on laws pertaining to trademarks and domain names to protect the value of their corporate brands and reputation. Despite their efforts to protect their proprietary rights, unauthorized parties may copy aspects of their services or technology, obtain and use information, marks, or technology that they regard as proprietary, or otherwise violate or infringe their intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If they do not effectively protect their intellectual property, or if others independently develop substantially equivalent intellectual property, their competitive position could be weakened.

    Effectively policing the unauthorized use of their services and technology is time-consuming and costly, and the steps taken by them may not prevent misappropriation of their technology or other proprietary assets. The efforts they have taken to protect our proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of their services, use similar marks or domain names, or obtain and use information, marks, or technology that they regard as proprietary. They may have to litigate to enforce their intellectual property rights, to protect their trade secrets, or to determine the validity and scope of others’ proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.

    The Company must correctly predict, identify, and interpret changes in consumer preferences and demand, offer new products to meet those changes, and respond to competitive innovation. Consumer preferences for their products change continually. Their success depends on their ability to predict, identify, and interpret the tastes and habits of consumers and to offer products that appeal to consumer preferences. If they do not offer products that appeal to consumers, our sales and market share will decrease. They must distinguish between short-term fads, mid-term trends, and long-term changes in consumer preferences. If they do not accurately predict which shifts in consumer preferences will be long-term, or if they fail to introduce new and improved products to satisfy those preferences, our sales could decline. In addition, because of our varied customer base, we must offer an array of products that satisfy the broad spectrum of consumer preferences. If they fail to expand our product offerings successfully across product categories, or if they do not rapidly develop products in faster growing and more profitable categories, demand for our products could decrease, which could materially and adversely affect our product sales, financial condition, and results of operations.

    In addition, achieving growth depends on our successful development, introduction, and marketing of innovative new products and line extensions. Successful innovation depends on our ability to correctly anticipate customer and consumer acceptance, to obtain, protect and maintain necessary intellectual property rights, and to avoid infringing the intellectual property rights of others and failure to do so could compromise our competitive position and adversely impact their business

    The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors may eventually include major companies worldwide. The short term hospitality market is an emerging industry where new competitors are entering the market frequently. The Company’s competitors may have significantly greater financial, technical, and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.

    Because their business operations are currently concentrated in a single geographic area, the Company is susceptible to economic and other trends and developments, including adverse economic conditions, in this area. While funds from this raise will be used to expand the business into new locations, their financial performance is currently dependent on their sleeping pods located in Arizona. As a result, adverse economic conditions in this area could have a material adverse effect on their overall results of operations. In addition, local strikes, terrorist attacks, increases in energy prices, inclement weather or natural or man-made disasters could have a negative effect on our business.

    The Company has generated substantial net losses and negative operating cash flows since its inception as part of the development of its business. The Company has generated substantial net losses and negative cash flows from operating activities since it commenced operations. It has incurred losses of approximately $175,399 from its inception through December 31, 2018. For the year ended 2018, it incurred a net loss of $166,244. Before achieving profitability it will generate continued losses. Its costs may also increase due to such factors as higher than anticipated financing and other costs; non-performance by third-party suppliers, licensees, partners or subcontractors; and increases in the costs of labor or materials. If any of these or similar factors occur, its net losses and accumulated deficit could increase significantly and the value of its stock could decline.

    Failure to obtain new clients or renew client contracts on favorable terms could adversely affect results of operations. The Company may face pricing pressure in obtaining and retaining their clients. Their clients may be able to seek price reductions from them when they renew a contract, when a contract is extended, or when the client’s business has significant volume changes. Their clients may also reduce services if they decide to move services in-house. On some occasions, this pricing pressure results in lower revenue from a client than the Company had anticipated based on their previous agreement with that client. This reduction in revenue could result in an adverse effect on their business and results of operations.

    Further, failure to renew client contracts on favorable terms could have an adverse effect on their business. The Company's contracts with clients generally run for several years and include liquidated damage provisions that provide for early termination fees. Terms are generally renegotiated prior to the end of a contract’s term. If they are not successful in achieving a high rate of contract renewals on favorable terms, their business and results of operations could be adversely affected.

    Maintaining, extending and expanding the Company’s reputation and brand image are essential to their business success. They seek to maintain, extend, and expand their brand image through marketing investments, including advertising and consumer promotions, and product innovation. Increasing attention on marketing could adversely affect their brand image. It could also lead to stricter regulations and greater scrutiny of marketing practices. Existing or increased legal or regulatory restrictions on their advertising, consumer promotions and marketing, or their response to those restrictions, could limit our efforts to maintain, extend and expand our brands. Moreover, adverse publicity about regulatory or legal action against the Company could damage their reputation and brand image, undermine their customers’ confidence and reduce long-term demand for our products, even if the regulatory or legal action is unfounded or not material to our operations.

    The Company currently obtains components from single or limited sources, and are subject to significant supply and pricing risks. Many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations. While the Company has entered into agreements for the supply of many components, there can be no assurance that we will be able to extend or renew these agreements on similar terms, or at all. A number of suppliers of components may suffer from poor financial conditions, which can lead to business failure for the supplier or consolidation within a particular industry, further limiting their ability to obtain sufficient quantities of components. The follow-on effects from global economic conditions on their suppliers, also could affect their ability to obtain components. Therefore, the Company remains subject to significant risks of supply shortages and price increases.

    Their products often utilize custom components available from only one source. Continued availability of these components at acceptable prices, or at all, may be affected for any number of reasons, including if those suppliers decide to concentrate on the production of common components instead of components customized to meet their requirements. The supply of components for a new or existing product could be delayed or constrained, or a key manufacturing vendor could delay shipments of completed products to the Company adversely affecting their business and results of operations.

    The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway until end of year, they will be ramping up cash burn to promote revenue growth, increase payroll, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.

    Industry consolidation may result in increased competition, which could result in a loss of customers or a reduction in revenue. Some of our competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale.

    We have not prepared any audited financial statements. Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.

    The Company has not filed a Form D for its previous offerings. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.

    The company is subject to many U.S. federal and state laws and regulations, including those related to privacy, rights of publicity, and law enforcement. These laws and regulations are constantly evolving and may be interpreted, applied, created, or amended, in a manner that could harm our business. The technology and use of the technology in our product may not be legislated, and it is uncertain whether different states will legislate around this technology, and, if they do, how they will do so. Violating existing or future regulatory orders or consent decrees could subject us to substantial monetary fines and other penalties that could negatively affect our financial condition and results of operations.

    The Company is overdue on its 2017 tax filing, which could subject it to penalties, fines, or interest changes, and which could indicate a failure to maintain adequate financial controls and safeguards. In particular, the Internal Revenue Service (IRS) could impose the Company with costly penalty and interest charges if the Company has filed its tax return late, or has not furnished certain information by the due date. In addition, even if the Company has filed an extension, if it underestimated its taxes, the IRS could penalize it. Potential tax consequences could adversely affect the Company’s results of operations or financial condition.

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

    Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors") Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors"). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. ("SI Selections Fund"). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.

    HOHM Inc.'s Form C

    The Form C is a document the company must file with the Securities and Exchange Commission, which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Download HOHM Inc.'s  Form C

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in HOHM Inc.
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by HOHM Inc.. Once HOHM Inc. accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to HOHM Inc. in exchange for your securities. At that point, you will be a proud owner in HOHM Inc..


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or passport
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


    How much can I invest?

    An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:

    • If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.

    Separately, HOHM Inc. has set a minimum investment amount of US $1,000.

    Accredited investors investing $20,000 or over do not have investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my securities in the future?

    Currently there is no market or liquidity for these securities. Right now HOHM Inc. does not plan to list these securities on a national exchange or another secondary market. At some point HOHM Inc. may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when HOHM Inc. either lists their securities on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is HOHM Inc.'s fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the HOHM Inc.'s Form C. The Form C includes important details about HOHM Inc.'s fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your account's portfolio page by clicking your profile icon in the top right corner.