accessibilityaccreditedactiveactivityaimalarmalign-bottomalign-center-horizontalalign-center-verticalalign-leftalign-rightalign-topanchorangelannoyedapplearchivearrow-downarrow-leftarrow-rightarrow-uparticleat-signawardbalanceballoonbandaidbarcodebellbicyclebinocularsblindboatbook-closedbookbookmarkbookmarkedbooksbottlebriefcasebrushbugbullhornbuscabinetcakecalendarcameracarcashcertificatechalkchart-barschart-linechart-piechatcheckmarkchevron-downchevron-leftchevron-rightchevron-upcircle-arrow-downcircle-arrow-leftcircle-arrow-rightcircle-arrow-upcircle-backwardcircle-checkmarkcircle-chevron-downcircle-chevron-leftcircle-chevron-rightcircle-chevron-upcircle-crosscircle-ejectcircle-exclamationcircle-facebookcircle-firstcircle-forwardcircle-googlepluscircle-gustcircle-lastcircle-linkedincircle-minuscircle-nextcircle-pausecircle-play-thincircle-playcircle-pluscircle-previouscircle-questioncircle-stopcircle-twittercircleclipboard-checkclipboardclockcloud-databasecloud-downloadcloud-fogcloud-gearcloud-lightningcloud-lockcloud-raincloud-snowcloud-synccloud-uploadcloudcocktail-glasscodecombinecomment-fillcommentcommentscompassconfusedconnectconstruction-coneconstructioncontactscoolcopycredit-cardcropcrosscrowncubedatabasedeletedesigndesktopdiamonddicedinnerdisconnectdocumentdownloaddrawerdreamdropletdumbbellearthediteggellipsisenter-downenter-leftenter-rightenter-upenterenvelopeevilexcludeexit-downexit-leftexit-rightexit-upexitexpandeye-droppereyefacebookfactoryfeatherfile-audiofile-codefile-imagefile-videofile-zipfilefilm-playfindfirefirst-aidflagflip-horizontalflip-verticalfloppy-diskfolderfootprintframefunnelgamepadgasgeargiftglassglassesgoogleplusgraduationgrin-evilgringroupgungusthamburgerhammerhappy-grinhappyheadsetheart-fillhearthistoryhomeiconsinboxintersectipadiphonekeykeyboardkeyholeknifelablamplaptopleafleave-downleave-leftleave-rightleave-uplibrarylifebuoylighterlightning-boltlinklinkedinlistlocationlocklotusmadmagicmagnetmalletmanmapmedalmeet-downmeet-leftmeet-rightmeet-upmic-mutemicminusmoonmousemovemusic-notemusicmustachemutenavigationneutralnewsoptionsoutletpaint-rollerpaintbrushpairpaper-planepaperclippaperspastepatchpawpenpencilphonephotopicturepinpine-treeplaneplayplaylistplug-cordpluspodiumpowerpresentationprinterprofilepulsepuzzlequestionquote-closequote-openradiorank1rank2rank3receptionrecycleredorefreshregisterreply-allreplyroad-signrocketrulersadscissorsscreensearchshareshieldshipshirtshockedshrinkshufflesignalsitemapskullsmartphonesmilespeed-fastspeed-mediumspeed-slowspell-checksquaresubtractsunsyncsyringetabtablettagtagstargetteacupterminalthumbs-downthumbs-uptickettilestimertoilet-papertonguetoolstrailertraintransmissiontrashtreetrophytrucktvtwitterumbrellaundounlinkunlockuploaduserusersvolume-highvolume-lowvolume-mediumvolumewarningwheelchairwifiwinkwomanwonderingwrenchzoom-inzoom-out

Lab Sensor Solutions 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 Lab Sensor Solutions 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. The contents below 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.

January 2017 Revenue

$200,000+

Market Size for Sensors

$123 Billion

  • Notable investors include 500 Startups and Launchpad Digital Health
  • Partnerships with MarketLab, Rhodes Group, and Dynamex
  • Company management has extensive experience in startups and in developing sensors and temperature controls
  • Customers (under NDA) include the top HMO in Northern California
  • Amount raised:  
  • Close date:  
  • Indicated Interest:  
  • Raise Description:  Seed
  • Minimum Investment:  US $500 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $3,125,000
  • Offering Type:   Side by Side Offering

Our mission is to improve lives through real-time sensor technology.


Lab Sensor Solutions’ mission is to improve lives through the use of real-time sensor technology. We deliver real-time information on healthcare and food items so our customers can monitor, report, and act to assure items are in the right place, at the right time, and in the right condition.

This technology offers companies the ability to affordably assure the integrity of materials by helping to prevent temperature excursions, lost items, and delayed delivery through the use of real-time data, analysis, and alerts.

Pitch Deck

Product & Service

Lab Sensor Solutions’ T-Tracks is one of the most cost effective, real-time solutions for monitoring the temperature of healthcare materials and food for both in-transit and stationary environment applications. The T-Tracks system utilizes wireless NIST(National Institute of Standards) calibrated Bluetooth Low Energy (BLE) sensors and a powerful cloud computing platform to continuously record conditions and provide real-time information (as well as critical excursion alerts) to appropriate stakeholders. The system employs standard Apple (iOS) and Android mobile devices (as well as a proprietary data bridge) to receive data from sensors and communicate with a versatile back-end analytics engine. In addition to real-time temperature data, the T-Tracks system provides preemptive excursion alerts, automated pickup and delivery confirmations, GPS and room level location of portable items, along with many other features.

T-Tracks is designed for applications where integrity of healthcare materials and food is paramount, including laboratory samples, biopharmaceuticals, vaccines, clinical trial materials, whole blood, plasma, analyzer reagents, diary, fruits, meat, and more. T-Tracks provides preemptive alerts based on Real-Time In-Field (RTIF) conditions so corrective actions can be taken quickly, before the integrity of the material being tracked is compromised. Regulatory agencies, including FDA, CAP, and others, require monitoring for temperature sensitive materials and they are increasingly auditing for temperature profile compliance of in-transit materials.

Our original application was tracking the temperature and location of clinical laboratory samples (blood and urine) from draw centers to central labs where they are processed. Previously, even the best labs would use temperature trackers that would be read at the end of a trip when it was too late to correct any issues. T-Tracks allows for real time tracking and feedback; so if a sample carrier is going out of temperature compliance it can be corrected by the courier before the samples spoil. 

We have extended our market to include other health care materials such as reagents, biologics,  vaccines, whole blood, and others. We also recently extended into the food market place and are tracking temperature sensitive foods such as meat, poultry and fish, and dairy products. Because of the real time nature of our solution we can help prevent spoilage.

Our passion is to reduce suffering and disease by  preventing errors that cause mis-diagnosis and spoilage.

Media Mentions

Team Story

The founders worked together at Tagent, an RFID company,  where they discovered that clinical laboratories are required to monitor the temperature of samples all the time.  The founders realized that with low energy Bluetooth and the ubiquitous mobile infrastructure  they could now solve this problem. Lab Sensor Solutions was born and T-Tracks, the first product, was created. It allows real time temperature and location monitoring of  sensitive materials while in-storage or in-transit.

Meet the Founders

Geoffrey Zawolkow

Founder and CEO

Geoff has been a key leader and founder for multiple high tech startups and has worked in the high tech industry for 30+ years. As founder and CEO of a previous startup he provided his investors with a 6X return in 1.5 years. He brings a passion for building success by keeping his team focused on delivering products that solve real problems.

Jarie Bolander

Founder and COO

Jarie is an engineer by training and an entrepreneur by nature with over 20 years of experience bring innovative solutions to market. Along with his other co-founders, Jarie is passionate about applying technology to solve real world problems and also do good.

Daniel Paley

Founder and EVP Engineering

Daniel  brings over 30 years of experience creating innovative solutions for companies large and small. He has vast experience in developing products that solve real problems and has spend a majority of his career engineering solutions using wireless technologies. 

Geoffrey Zawolkow

Founder and CEO

Geoff has been a key leader and founder for multiple high tech startups and has worked in the high tech industry for 30+ years. As founder and CEO of a previous startup he provided his investors with a 6X return in 1.5 years. He brings a passion for building success by keeping his team focused on delivering products that solve real problems.

Jarie Bolander

Founder and COO

Jarie is an engineer by training and an entrepreneur by nature with over 20 years of experience bring innovative solutions to market. Along with his other co-founders, Jarie is passionate about applying technology to solve real world problems and also do good.

Daniel Paley

Founder and EVP Engineering

Daniel  brings over 30 years of experience creating innovative solutions for companies large and small. He has vast experience in developing products that solve real problems and has spend a majority of his career engineering solutions using wireless technologies. 

Key Team Members

Brad Jung

EVP Sales and Marketing

Notable Advisors & Investors

Launchpad Digital Health

Investor, Venture investor & accelerator focused on healthcare startups

500 startups

Investor, Leading global venture capital seed fund & startup accelerator

Q&A with the Founder

  • What does your userbase look like?
    We have been focused on the clinical lab space over the last few years and we are now expanding that base to include additional market segments. In the lab space, we have an email list with 30K potential contacts on it that are involved with clinical labs. We’re just starting to expand into other space (Perishable foods, clinical trial, biopharma).
  • Can you give us a detailed idea of your business model and a product description?
    The basic sales model is a subscription model. We provide an annual subscription to our customer base. They generally pay monthly or annually for that subscription and the subscription is based on the number of things they want to monitor in their environment. We have pricing that is based on the number of items that they are going to monitor. We have a volume-based discounts. The basics are that we monitor real time temperature locations and materials, whether they are in transit or stationary. We can do that without a lot of added infrastructure. Our infrastructure is based on mobile tech, so it makes it easy for us to monitor mobile or stationary refrigeration units or units that are actively in motion or moving around. We have a sensor platform. Right now we are using it for temperature monitoring and we are extending it to other types of sensors as well.
  • How do you plan to scale following the raise?
    We have a working product. There are some additional features that the market would like to see with that product and we are going to work on those. The primary thing we want to work on, however, is the sales and marketing aspect of things. This has not been the focus up until now. In order to do that, we will be adding personnel, partnerships and additional exposure in the media as part of what our plan is. In addition we are expanding our reach to additional markets. Traditionally, we have been a clinical laboratory market, where we have seen success, but the sales cycles are long in that marketplace and we are looking to expand into marketplaces where sales cycles are shorter and there is a need. One of those markets is perishable foods market. Recently, there have been new regulations in the perishable goods market involving more temp control. Those regulations have become much more active today for certain parts of the market. We believe our timing in this area is very good. We are focused on expanding into that arena, which is new for us.
  • What are your potential exits?
    We think we're set up best as an acquisition. Large pharma companies, large software companies, or large companies that provide software services to the medical arena.
  • Any barriers to entry or competitive advantages?
    In terms of the barriers to entry, we have a mobile platform that we are using and there are other companies who have similar mobile platforms, but what we offer are complete solutions in the industries that we are focused on. We focus on specific knowledge and problems in specific industry areas. We create specific solutions. One of our competitive advantages is that we are very focused on specific industries and cater directly to those industries, so our capabilities and functionality are directly related to the industry, which helps ensure that our products work better than competitors' products. We do have a patent filed as well. It goes into the number of key ways that the system works which includes things like automatically knowing when an item works and when an item is delivered. We automated what couriers carry with them and what they pick up. Lastly, there are some analytics around predicting things in the temp arena. We don’t have any action on it yet, but it is a filed patent. Most of the competitors that we have had have been temperature logging devices--those devices are not real time--we are the only ones that do real time and if there are issues and problems things can be corrected prior to spoilage. Furthermore, our solution uses existing tech, so it doesn’t involve a lot of tech to put these products into place. Our batteries and recalibration last the longest and we handle this as a part of our standard subscription.
  • 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.

    Side by Side 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.


    Terms & DescriptionRegulation D - Rule 506(c)Regulation CF
    Investor TypesAccredited OnlyAccredited and Non-accredited
    Round descriptionSeedSeed
    Round sizeUS $320,000US $320,000
    Amount raisedUS $0US $11,700
    Minimum investment$20,000US $500
    Target minimumUS $180,000US $180,000
    Security typeCrowd NoteCrowd Note
    Valuation capUS $3,125,000US $3,125,000
    Conversion of the Crowd NoteThe Crowd Note will convert into preferred equity at a $3,125,000 pre-money valuation within 30 days of the round’s close for major purchasers and upon the election of the company or upon a corporate transaction for non-major purchasers.The Crowd Note will convert into preferred equity at a $3,125,000 pre-money valuation within 30 days of the round’s close for major purchasers and upon the election of the company or upon a corporate transaction for non-major purchasers.
    Closing ConditionsThe Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $100,000 under the Regulation CF offering and a total of $180,000 under the Combined Offerings (the “Closing Amount”) by June 2, 2017, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.The Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $100,000 under the Regulation CF offering and a total of $180,000 under the Combined Offerings (the “Closing Amount”) by June 2, 2017, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.

    Prior Rounds

    The graph below illustrates the valuation cap or the pre-money valuation of Lab Sensor Solutions's prior rounds by year.


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

    Pre-Seed 2

  • Round Size
    US $125,000
  • Close Date
    Aug 17, 2015
  • Security Type
    Convertible Note
  • Valuation Cap
    US $500,000
  • Pre-Seed 1

  • Round Size
    US $195,000
  • Close Date
    Mar 18, 2015
  • Security Type
    Convertible Note
  • Valuation Cap
    US $2,343,750
  • Pre-Seed 3

  • Round Size
    US $100,000
  • Close Date
    Oct 29, 2015
  • Security Type
    Convertible Note
  • Valuation Cap
    US $2,656,250
  • Pre-Seed 4

  • Round Size
    US $15,000
  • Close Date
    Dec 29, 2015
  • Security Type
    Convertible Note
  • Valuation Cap
    US $2,812,500
  • Financial Discussion

    Please see the financial information listed on the the Form C and attached to this profile in addition to the following information.

    Operations

    For the year ended December 31, 2016, we recorded net revenues of $27,352.

    The company’s operating expenses consist of sales and marketing, general and administrative, and research and development. For the year ended December 31, 2016, the company’s total operating expenses were $549,083.

    We believe that our prior earnings and cash flows are not indicative of future earnings and cash flows because we intend to scale and expand revenue streams.

    The Company does not expect to achieve profitability in the next 12 months and intends to focus on the following goals: bringing product to market, expanding hardware sales, and expanding revenue streams.

    Liquidity and Capital Resources

    The proceeds of the offering are not necessary to the operations of the Company, however, they will prolong the runway of the company. 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 of December 31, 2016 we had $102,565 in cash on hand which will be augmented by the offering proceeds and used to execute our business strategy.

    Capital Expenditures and Other Obligations

    The Company has not made any material capital expenditures in the past two years.

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

    Material Changes and Other Information

    The Company does not currently believe it is subject to any trends or 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 judgement. 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.

    Valuation

    As discussed in “Dilution” below, the valuation will determine the amount by which the investor’s stake is diluted immediately upon investment. An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their “sweat equity” into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is immediately diluted because each share of the same type is worth the same amount, and you paid more for your shares (or the notes convertible into shares) than earlier investors did for theirs.

    There are several ways to value a company, and none of them is perfect and all of them involve a certain amount of guesswork. The same method can produce a different valuation if used by a different person.

    Liquidation Value — The amount for which the assets of the company can be sold, minus the liabilities owed, e.g., the assets of a bakery include the cake mixers, ingredients, baking tins, etc. The liabilities of a bakery include the cost of rent or mortgage on the bakery. However, this value does not reflect the potential value of a business, e.g. the value of the secret recipe. The value for most startups lies in their potential, as many early stage companies do not have many assets (they probably need to raise funds through a securities offering in order to purchase some equipment).

    Book Value — This is based on analysis of the company’s financial statements, usually looking at the company’s balance sheet as prepared by its accountants. However, the balance sheet only looks at costs (i.e. what was paid for the asset), and does not consider whether the asset has increased in value over time. In addition, some intangible assets, such as patents, trademarks or trade names, are very valuable but are not usually represented at their market value on the balance sheet.

    Earnings Approach — This is based on what the investor will pay (the present value) for what the investor expects to obtain in the future (the future return), taking into account inflation, the lost opportunity to participate in other investments, the risk of not receiving the return. However, predictions of the future are uncertain and valuation of future returns is a best guess.

    Different methods of valuation produce a different answer as to what your investment is worth. Typically liquidation value and book value will produce a lower valuation than the earnings approach. However, the earnings approach is also most likely to be risky as it is based on many assumptions about the future, while the liquidation value and book value are much more conservative.

    Future investors (including people seeking to acquire the company) may value the company differently. They may use a different valuation method, or different assumptions about the company’s business and its market. Different valuations may mean that the value assigned to your investment changes. It frequently happens that when a large institutional investor such as a venture capitalist makes an investment in a company, it values the company at a lower price than the initial investors did. If this happens, the value of the investment will go down.

    Ownership

    Lab Sensors Solutions is held by various people none of whom own over 20% of the company.

    Following the Offering, the Purchasers will own 0.0% of the Company if the Minimum Amount is raised and 7.8% if the Maximum Amount is raised.

    Market Landscape

    Taken from Bcc Research Report on Global Markets and Technologies for Sensors (IAS006H):

    The global market for sensors reached $110.4 billion and $123.5 billion in 2015 and 2016, respectively. This market is expected to increase from nearly $138.8 billion in 2017 to nearly $240.3 billion in 2022 at a compound annual growth rate (CAGR) of 11.8% for 2017-2022.

    Internet of things (IoT), industrial internet of things, smart cities and smart buildings are the buzzwords in today’s technological jargon. These terms have one thing in common—they use sensors. These concepts are dependent on sensors, and the fusion of different sensors is necessary to attain desired outcomes. Thus, sensors have become a major area for future development of various aspects of daily life. 

    Currently, sensors are found in most areas of daily life. The need for sensors is increasing dramatically due the ongoing boom in smart mobile communication technologies and tablet PCs. Many companies are researching novel types of sensors for these applications. Mobile phones with face recognition are already on the market. Mobile phones with integrated spectrometers to measure food freshness are no longer inconceivable even though they still seem rather futuristic.


    Market Data Taken from Markets & Markets.

    Lab Sensor Solutions provides a sensor platform that allows our customers to measure physical properties like temperature. The temperature sensors market is expected to grow from USD 5.13 Billion in 2016 to USD 6.79 Billion by 2022, at a CAGR of 4.8% between 2016 and 2022. The market for temperature sensors is part of the bigger market for sensors, which is presented in the graph and market chart description.

    Since our platform can handle the addition of other types of sensors, we show the bigger market for sensors world wide as the Total Available Market(TAM) while the the Specific Addressable Market (SAM) would be for what we have now which is temperature sensors.

    The competition offers  four main types of technologies used to address temperature tracking and reporting: 

    1. Stationary/Fixed Sensors: Stationary Sensors are fixed point sensors that are either wired or wireless, and primarily used to monitor temperature inside refrigerators and freezers. Systems using these sensors generally read and record continuously, alerting when temperature goes out of range. Each sensor is calibrated annually. These stationary sensors are useful for in-facility temperature monitoring but they are not applicable for monitoring or alerting when materials are in-transit. They are also expensive to calibrate and to reposition. 
    2. Offline Data Loggers: Data Loggers allow temperature logging for later retrieval. These loggers generally connect via USB to enable data export, with some loggers providing the ability to download data via a Bluetooth connection. These loggers provide limited or no real-time reporting and therefore cannot be used to generate system alerts or remediation notifications that can assure material integrity.
    3. Sensors Employing Cellular and GPS Radio: Sensors Employing Cellular and GPS Radios are used for point-to-point transportation of high-value materials. While these sensors can provide in-transit data, they are more expensive than other solutions, require monthly service fees in addition to hardware costs, and based on sample frequency and battery capacity, monitoring duration ranges from a few days to a few weeks.
    4. Sensors Utilizing iOS and Android Devices for Data Viewing, Download and Connection: BLE Sensors Utilizing Mobile Phones for network connectivity are best suited for applications where size, cost and power consumption are important factors. Lab Sensor Solutions’ patent pending T-Tracks system is built around this technology, and its uniqueness is that solves the industry’s needs in a comprehensive and automated fashion. 

    Lab Sensor Solutions believes that its competitive advantage is its focus on providing a complete solution with real-time access and analysis of data for materials in transit or in storage. Although there are other companies providing data loggers with Bluetooth capabilities and smartphone apps, Lab Sensor Solutions provides a complete solution that supports simultaneous smartphone connection to unlimited sensors, real-time cloud availability of data and analytics, automated pickup and delivery confirmation, and many more features others aren't currently offering.

    Risks and Disclosures

    We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encounters. We were incorporated under the laws of Delaware on March 31, 2014. Accordingly, we have no history upon which an evaluation of our prospects and future performance can be made. Our proposed operations are subject to all business risks associated with new enterprises. The likelihood of our creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business, operation in a competitive industry, and the continued development of an enterprise client base. We anticipate that our operating expenses will increase for the near future. You should consider the Company's business, operations and prospects in light of the risks, expenses and challenges faced as an early-stage company.

    We plan to implement new lines of business or offer new products and services within existing lines of business. There are substantial risks and uncertainties associated with our expansion into the medical & healthcare materials and food marketplace. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible. We may not be successful in introducing new products and services in response to industry trends or developments in technology, or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients, or be subject to cost increases. As a result, our business, financial condition or results of operations may be adversely affected.

    The Company's success depends on the experience and skill of its executive officers, key employees and the board of directors. In particular, the Company is dependent on Daniel Paley, Jarie Bolander, and Geoffrey Zawolkow who are EVP Engineering, Founder and Chief Operating Officer, and Chairman and CEO, of the Company. The loss of Daniel Paley, Jarie Bolander, and Geoffrey Zawolkow or any member of the board of directors or executive officer could harm the Company's business, financial condition, cash flow and results of operations.

    The Company is paying its employees below market salaries, which contributes to artificial salaries and wages expenses that may not continue in the future. The Company has been paying its employees below market salaries and wages, so the historical line item for these expenses are lower than expected. Once we obtain financing and begin generating revenues, these below market salaries are expected to increase.

    We are required to comply with regulatory requirements in certain markets. To lawfully operate our businesses, we are required to hold permits, licenses and other regulatory approvals from and to comply with operating standards within the pharmaceutical, healthcare and food verticals. Failure to maintain or renew necessary permits, licenses, or noncompliance or concerns over noncompliance may result in suspension of our monitoring and tracking abilities and could have an adverse effect on our results of operations and financial condition.

    We have long sales cycle with uncertain revenue generation. LSS currently primarily sells to enterprise customers (in laboratories, hospitals and pharmaceutical companies) which has typically is a multi-month or even year-long process. Each individual customer requires significant onboarding time. Although there are plans to expand into other verticals, there is uncertainty in our revenue generation channels.

    The Company depends on the performance of distributors resellers. The Company distributes its products through certain value-added distributors and resellers such as Cerner, Dynamex, MarketLab, Eyes on Freight, etc. The financial condition of these resellers could weaken, these resellers could stop distributing the Company's products, or uncertainty regarding demand for the Company's products could cause resellers to reduce their ordering and marketing of the Company's products.

    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.

    Lab Sensor Solutions'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 Lab Sensor Solutions'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 shares, 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 Lab Sensor Solutions
    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 Lab Sensor Solutions. Once Lab Sensor Solutions accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Lab Sensor Solutions in exchange for your shares. At that point, you will be a proud owner in Lab Sensor Solutions.


    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 government-issued identification
    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.


    What is a Crowd Note?

    The Crowd Note is a security which allows crowd investors to largely realize the same economic benefit traditional investors have historically received when investing in startups. For a convertible note round, investors under $20,000 will have their investment convert into preferred equity at liquidity event, locking in a share price at a discount to the next priced round, and will have an interest rate on their investment. Investors investing $20,000 and over will convert into preferred equity at the subsequent priced round at a discount to that priced round and will have an interest rate on their investment. For a priced round, investors under $20,000 will have their investment convert into preferred equity at a liquidity event, locking in the share price of the current round.


    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, Lab Sensor Solutions has set a minimum investment amount of US $500.

    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 shares 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 shares in the future?

    Currently there is no market or liquidity for these shares. Right now Lab Sensor Solutions does not plan to list these shares on a national exchange or another secondary market. At some point Lab Sensor Solutions 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 Lab Sensor Solutions either lists their shares 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 Lab Sensor Solutions'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 Lab Sensor Solutions's Form C. The Form C includes important details about Lab Sensor Solutions'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 shares have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, let SeedInvest know by emailing cancellations@seedinvest.com. Please include your name, the company's name, the amount, the investment number, and the date your made your investment.


    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 shares 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 email us at cancellations@seedinvest.com. Please include your name, the company's name, the amount, the investment number, and the date your made your investment.