UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1−K
ANNUAL REPORT PURSUANT TO REGULATION A
OF THE SECURITIES ACT OF 1933
For the fiscal year ended December 31, 2022
My Racehorse CA LLC
(Exact name of issuer as specified in its charter)
Nevada | 83-0848007 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2456 Fortune Dr., Suite 110, Lexington KY, 40509
(Full mailing address of principal executive offices)
909-740-9175
(Issuer’s telephone number, including area code)
www.myracehorse.com
(Issuer’s website)
Series LLC Interests*
(Title of each class of securities issued pursuant to Regulation A)
(*Certain Series LLC Interests are qualified but not yet issued under Reg. A)
MY RACEHORSE CA LLC
i |
Use of Terms
Except as otherwise indicated by the context and for the purposes of this Annual Report on Form 1-K only (the “Annual Report”), references in this Annual Report to “we,” “us,” “our”, “MRH”, “our company”, or the “Company” refer to My Racehorse CA LLC, a Nevada series limited liability company.
Special Note Regarding Forward Looking Statements
The information contained in this Annual Report includes some statements that are not historical and that are considered “forward-looking statements”. Such forward-looking statements include, but are not limited to, statements regarding:
· | our development plans for our business; | |
· | our strategies and business outlook; | |
· | the racing prospects for the respective Underlying Assets; | |
· | potential distributions or dividends of race winnings and other revenue sources; | |
· | anticipated development of the Company, the Manager and each Series of the Company; | |
· | the overall growth of the horse racing industry; | |
· | our compliance with regulatory matters (including the Investment Company Act, Investment Advisers Act and state securities regulations); | |
· | the development of the MyRacehorse™ Platform (defined below); | |
· | our future results, performance, liquidity, financial condition, prospects and opportunities; and | |
· | various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). |
Such statements are based upon information currently available to our company, our management, and our interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events.
Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words like “anticipates”, “believes”, “continue”, “could”, “estimates”, “expects”, “intends”, “may”, “might”, “plans”, “possible”, “potential”, “predicts”, “projects”, “seeks”, “should”, “will”, “would” and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, but the absence of these words does not mean that a statement is not forward-looking. Actual results, performance, liquidity, financial condition, prospects and opportunities could differ materially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” included in our Offering Statement on Form 1-A (the “Original Offering Statement”; file no. 024-10896) filed with the Securities and Exchange Commission (the “Commission” or “SEC”) on September 10, 2018, and qualified by the Commission on February 22, 2019, as amended and supplemented by post-qualification amendments to date, as well as our new Offering Statement on Form 1-A (file no. 024-11808) filed with the SEC on February 22, 2022, and qualified by the Commission on May 2, 2022, as amended and supplemented by post-qualification amendments to date(the “New Offering Statement and together with the Original Offering Statement, the “Offering Statements”) and matters described in this Annual Report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Annual Report will in fact occur.
Potential investors should not place undue reliance on any forward-looking statements, and should not make an investment decision based solely on these forward-looking statements. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
Although the forward-looking statements in this Annual Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. The projections, estimates and expectations are presented in this Annual Report only as a guide about future possibilities and do not represent actual amounts or assured events. All the projections and estimates are based exclusively on our management’s own assessment of our business, the industry in which we work and the economy at large and other operational factors, including capital resources and liquidity, financial condition, fulfillment of contracts and opportunities. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the Company cannot guarantee future results, and the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this Annual Report, in the New Offering Statement (and as amended and supplemented by post-qualification amendments to date) and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
ii |
Explanatory Note
The Original Offering Statement was filed by the Company on September 10, 2018, and has been amended by the Company on numerous occasions since that date. The Original Offering Statement, as amended by pre-qualification amendments, was qualified by the Commission on February 22, 2019. Since that date, certain post-qualification amendments to the Original Offering Statement have also been qualified by the Commission. On February 22, 2022, the Company filed the New Offering Statement which was qualified by the Commission on May 2, 2022, as amended and supplemented by post-qualification amendments to date. All current active and future offerings have been or will be offered under the New Offering Statement for so long as such offering statement is effective.
The Series already qualified under the Offering Statements as of the date hereof are as follows:
Original Offering Statement (File No. 024-10896)
Series Name | Horse Name (if different) | Qualification Date: |
Form 1-A | ||
Series Palace Foal | Ocean Magic 18 | February 22, 2019 |
POS-AM #2 | ||
Series De Mystique ‘17 | Dancing Destroyer | June 6, 2019 |
POS-AM #3 | ||
Series Martita Sangrita 17 | Carpe Vinum | July 11, 2019 |
Series Daddy’s Joy | - | July 11, 2019 |
Series Vertical Threat | - | July 11, 2019 |
Series Shake it Up Baby | - | July 11, 2019 |
Series Tizamagician | - | July 11, 2019 |
POS-AM #4 | ||
Series Power Up Paynter | - | July 25, 2019 |
Series Two Trail Sioux 17 | Annahilate | July 25, 2019 |
Series Wayne O | - | July 25, 2019 |
POS-AM #5 | ||
Series Big Mel | - | September 6, 2019 |
POS-AM #6 | ||
Series Amandrea | - | October 11, 2019 |
Series Keertana 18 | American Heiress | October 11, 2019 |
Series Sunny 18 | Solar Strike | October 11, 2019 |
Series Lazy Daisy | - | October 11, 2019 |
1 |
POS-AM #7 | ||
Series New York Claiming Package (1) | (i) Augusta Moon; and (ii) Hizaam | December 18, 2019 |
Series The Filly Four (2) | (i) Moonlight d’Oro; (ii) Joyful Addiction; (iii) Lady Valentine; and (iv) Shared Empire | December 18, 2019 |
POS-AM #8 | ||
Series Lane Way | - | February 19, 2020 |
POS-AM #10 | ||
Series Mo Mischief | - | May 13, 2020 |
Series Deep Cover | - | May 13, 2020 |
Series Big Mel (Addtl. 9% Interest) | - | May 13, 2020 |
Series Sunny 18 (Addtl. 9% Interest) | Solar Strike | May 13, 2020 |
POS-AM #11 | ||
Series Popular Demand | - | June 5, 2020 |
POS-AM #12 | ||
Series Authentic | - | June 26, 2020 |
Series Storm Shooter | - | June 26, 2020 |
POS-AM #15 | ||
Series Thirteen Stripes | - | August 7, 2020 |
Series Naismith | - | August 7, 2020 |
Series NY Exacta (3) | (i) Quick Conversation; and (ii) Psychedelic Shack | August 7, 2020 |
POS-AM #18 | ||
Series Apple Down Under 19 | Howboutdemapples | October 30, 2020 |
Series Just Louise 19 | Forbidden Kingdom | October 30, 2020 |
Series Lost Empire 19 | Laforgia | October 30, 2020 |
POS-AM #19 | ||
Series Man Among Men | - | November 12, 2020 |
Series Frosted Oats | - | November 12, 2020 |
Series Tapitry 19 | Infinite Empire | November 12, 2020 |
Series Classofsixtythree 19 | Sixtythreecaliber | November 12, 2020 |
Series Cayala 19 | Provacateur | November 12, 2020 |
Series Margaret Reay 19 | A Mo Reay | November 12, 2020 |
Series Awe Hush 19 | Can’t Hush This | November 12, 2020 |
Series Exonerated 19 | Above Suspicion | November 12, 2020 |
Series Speightstown Belle 19 | Ancient Royalty | November 12, 2020 |
Series Consecrate 19 | Sacred Beauty | November 12, 2020 |
2 |
Series Latte Da 19 | Inalattetrouble | November 12, 2020 |
Series Midnight Sweetie 19 | Dolce Notte | November 12, 2020 |
Series Ambleside Park 19 | Lookwhogotlucky | November 12, 2020 |
Series Athenian Beauty 19 | Quantum Theory | November 12, 2020 |
Series Future Stars Stable (4) | (i) Man Among Men; (ii) Frosted Oats; (iii) Tapitry 19; (iv) Classofsixtythree 19; (v) Cayala 19; (vi) Margaret Reay 19; (vii) Awe Hush 19; (viii) Exonerated 19; (ix) Speightstown Belle 19; (x) Consecrate 19; (xi) Latte Da 19; (xii) Midnight Sweetie 19; (xiii) Ambleside Park 19; and (xiv) Athenian Beauty 19 | November 12, 2020 |
Series Collusion Illusion | - | November 12, 2020 |
POS-AM #23 | ||
Series Monomoy Girl | – | April 14, 2021 |
Series Got Stormy | – | April 14, 2021 |
Series Social Dilemma | – | April 14, 2021 |
POS-AM #24 and #25 | ||
Series Carrothers | – | April 30, 2021 |
Series Going to Vegas | – | April 30, 2021 |
Series Ari the Adventurer 19 | Kanthari | April 30, 2021 |
Series Wonder Upon a Star 19 | Star Six Nine | April 30, 2021 |
Series Echo Warrior 19 | Hero Status | April 30, 2021 |
POS-AM #26 | ||
Series Silverpocketsfull 19 | Iron Works | May 10, 2021 |
Series Who'sbeeninmybed 19 | Micro Share | May 10, 2021 |
Series Into Summer 19 | Malibu Mayhem | May 10, 2021 |
Series Mrs Whistler | – | May 10, 2021 |
Series Race Hunter 19 | Chasing Time | May 10, 2021 |
3 |
Series Co Cola 19 | Search Engine | May 10, 2021 |
Series Vow | – | May 10, 2021 |
Series You Make Luvin Fun 19 | Magical Ways | May 10, 2021 |
Series Miss Sakamoto | – | May 10, 2021 |
Series Courtisane 19 | Tap the Gavel | May 10, 2021 |
Series Grand Traverse Bay 19 | Cornice Traverse | May 10, 2021 |
POS-AM #27 | ||
Series Our Miss Jones 19 | – | June 23, 2021 |
Series Margarita Friday 19 | Straight No Chaser | June 23, 2021 |
Series Queen Amira 19 | Regal Rebel | June 23, 2021 |
Series Salute to America | – | June 23, 2021 |
Series Desire Street 19 | Always Hopeful | June 23, 2021 |
POS-AM #30 | ||
Series Duke of Love | – | October 14, 2021 |
Series War Safe | – | October 14, 2021 |
Series Tufnel | – | October 14, 2021 |
Series Classic Cut | – | October 14, 2021 |
Series Essential Rose 20 | Rosie’s Alibi | October 14, 2021 |
Series Who Runs the World | – | October 14, 2021 |
Series Balletic | – | October 14, 2021 |
Series Song of Bernadette 20 | Cable Boss | October 14, 2021 |
POS-AM #32 | ||
Series Daring Dancer 20 | January 20, 2022 | |
Series Grand Traverse Bay 20 | January 20, 2022 | |
Series Chad Brown Bundle (5)
| (i) Ein Gedi (ii) Night Combat (iii) Three Jewels | January 20, 2022 |
New Offering Statement (File No. 024-11808)
Series Name | Horse Name (if different) | Qualification Date: |
Form 1-A | ||
Series Margarita Friday 19 | Straight No Chaser | April 29, 2022 |
Series War Safe | – | April 29, 2022 |
Series Tufnel | – | April 29, 2022 |
Series Who Runs the World | – | April 29, 2022 |
4 |
Series Balletic | – | April 29, 2022 |
Series Song of Bernadette 20 | Cable Boss | April 29, 2022 |
Series You Make Luvin Fun 19 | Magical Ways | April 29, 2022 |
Series Daring Dancer 20 | Boppy | April 29, 2022 |
Series Chad Brown Bundle | Night Combat Three Jewels Ein Gedi (f.k.a. Splashdown 20) | April 29, 2022 |
POS-AM #1 | ||
Series Fenwick Hall 20 | Inspector | May 18, 2022 |
Series Le Relais 20 | Show Your Cards | May 18, 2022 |
Series Spirit 20 | Phantom Ride | May 18, 2022 |
POS-AM #4 | ||
Mo Temptation | – | August 3, 2022 |
Moonbow 20 | Cumberland Falls | August 3, 2022 |
My Fast One 20 | One Fast Dream | August 3, 2022 |
Helicopter Money | – | August 3, 2022 |
I’m a Looker 20 | Pioneer Prince | August 3, 2022 |
Stay Fabulous | – | August 3, 2022 |
POS-AM #5 | ||
Series Smart Shopping 21 | Seize the Grey | September 6, 2022 |
Series Patsy’s Kim 21 | Lady Blitz | September 6, 2022 |
POS-AM #8 | ||
One Last Night 21 | – | November 29, 2022 |
Sarrocchi 21 | – | November 29, 2022 |
Elarose 21 | Secret Crush | November 29, 2022 |
Song of the Lark 21 | – | November 29, 2022 |
Enchante 21 | November 29, 2022 | |
POS-AM #9 | ||
Royal Duet (6) | San Saria 21 La Cuvee 21 | February 23, 2023 |
Kindle 21 | – | February 23, 2023 |
___________________
(1) Series New York Claiming Package is comprised of two (2) horses, (i) a 2016 Filly named, Augusta Moon, and (ii) a 2015 Colt named, Hizaam. On December 22, 2019, Augusta Moon, one of the two Underlying Assets of Series New York Claiming Package, was claimed/purchased from a race for $35,000. See below for more information.
(2) Series The Filly Four is comprised of four (4) horses, (i) a 2018 Filly named, Moonlight d’Oro (formerly Venetian Sonata 18), (ii) a 2018 Filly named, Joyful Addiction (formerly My Sweet Addiction 18), (iii) a 2018 Filly named, Lady Valentine (formerly My Lady Lauren 18), and (iv) a 2018 Filly named, Shared Empire (formerly Sapucai 18).
(3) Series NY Exacta is comprised of two (2) horses, (i) a 2018 Filly named Quick Conversation, and (ii) a 2018 Colt named Psychedelic Shack.
5 |
(4) Series Future Stars Stable is comprised of fourteen (14) horses, (i) a 2019 Colt named, Man Among Men, (ii) a 2019 Filly named, Frosted Oats, (iii) a 2019 Filly named, Infinite Empire (formerly Tapitry 19), (iv) a 2019 Filly named, Sixtythreecaliber (formerly Classofsixtythree 19), (v) a 2019 Colt named, Provocateur (formerly Cayala 19), (vi) a 2019 Filly named, A Mo Reay (formerly Margaret Reay 19), (vii) a 2019 Colt named, Can’t Hush This (formerly Awe Hush 19), (viii) a 2019 Filly named, Above Suspicion (formerly Exonerated 19), (ix) a 2019 Colt named, Ancient Royalty (formerly Speightstown Belle 19), (x) a 2019 Filly named, Sacred Beauty (formerly Consecrate 19), (xi) a 2019 Filly named Inalattetrouble (formerly Latte Da 19), (xii) a 2019 Filly named, Dolce Notte (formerly Midnight Sweetie 19), (xiii) a 2019 Colt named, Lookwhogotlucky (formerly Ambleside Park 19), and (xiv) a 2019 Colt named, Quantum Theory (formerly Athenian Beauty 19).
(5) Series Chad Brown Bundle is comprised of three (3) horses, (i) a 2020 Filly named Night Combat, (ii) a 2020 Colt named Three Jewels and (iii) a 2020 Filly named Ein Gedi.
(6) Series Royal Duet is comprised of two (2) horses, (i) a 2021 Filly named San Saria 21 and (ii) a 2021 Colt named La Cuvee 21.
Active Series
Of such Series, the following Series Interests have been qualified under Regulation A and are actively selling Series Interests as of the date hereof:
Series Membership Interests Overview Active Offerings (Previously Qualified) | |||||
Number of Shares | Price to Public | Underwriting Commissions (1)(2) | Proceeds to Issuer (3) | ||
Royal Duet | Per Unit | 1 | $202.00 | $2.02 | $199.98 |
Total Maximum | 5,100 | $1,030,200.00 | $10,302.00 | $1,019,898.00 |
Closed Offerings
Of such Series, the following Series Interests have been qualified under Regulation A and have subsequently either been terminated or closed after selling out of such Series Interests as of the date hereof:
Series Membership Interests Overview | |||||
Closed/Terminated Offerings | |||||
Number of Shares | Price to Public | Underwriting Discounts and Commissions (1)(2) | Proceeds to Issuer (3) | ||
Series Daring Dancer 20 | Per Unit | 1 | $135.00 | $1.35 | $133.65 |
Total Maximum | 750 | $101,250.00 | $1,012.50 | $100,237.50 | |
Series Chad Brown Bundle | Per Unit | 1 | $234.00 | $2.34 | $231.66 |
Total Maximum | 5,000 | $1,170,000.00 | $11,700.00 | $1,158,300.00 |
6 |
Series War Safe | Per Unit | 1 | $146.00 | $1.46 | $144.54 |
Total Maximum | 2,000 | $292,000.00 | $2,920.00 | $289,080.00 | |
Series Who Runs the World | Per Unit | 1 | $104.00 | $1.04 | $102.96 |
Total Maximum | 5,100 | $530,400.00 | $5,304.00 | $525,096.00 | |
Series Balletic | Per Unit | 1 | $80.00 | $0.80 | $79.20 |
Total Maximum | 10,000 | $800,000.00 | $8,000.00 | $792,000.00 | |
Series Song of Bernadette 20 | Per Unit | 1 | $97.00 | $0.97 | $96.03 |
Total Maximum | 5,100 | $494,700.00 | $4,947.00 | $489,753.00 | |
Series Margarita Friday 19 | Per Unit | 1 | $166.00 | $1.66 | $164.34 |
Total Maximum | 2,000 | $332,000.00 | $3,320.00 | $328,680.00 | |
Series Tufnel | Per Unit | 1 | $62.00 | $0.62 | $61.38 |
Total Maximum | 5,200 | $322,400.00 | $3,224.00 | $319,176.00 | |
Series You Make Luvin Fun 19 | Per Unit | 1 | $75.00 | $0.75 | $74.25 |
Total Maximum | 6,000 | $450,000.00 | $4,500.00 | $445,500.00 | |
Series Vertical Threat (4) | Per Unit | 1 | $210.00 | $0.00 | $210.00 |
Total Maximum | 537 | $112,770.00 | $0.00 | $112,770.00 | |
Series Amandrea (16) | Per Unit | 1 | $295.00 | $0.00 | $295.00 |
Total Maximum | 550 | $162,250.00 | $0.00 | $162,250.00 | |
Series Keertana 18 | Per Unit | 1 | $100.00 | $0.00 | $100.00 |
Total Maximum | 5,100 | $510,000.00 | $0.00 | $510,000.00 | |
Series Lazy Daisy | Per Unit | 1 | $115.00 | $0.00 | $115.00 |
Total Maximum | 1,250 | $143,750.00 | $0.00 | $143,750.00 | |
Series The Filly Four (7) | Per Unit | 1 | $180.00 | $0.00 | $180.00 |
Total Maximum | 8,000 | $1,440,000.00 | $0.00 | $1,440,000.00 |
7 |
Series Popular Demand (18) | Per Unit | 1 | $244.00 | $0.00 | $244.00 |
Total Maximum | 1,020 | $248,880.00 | $0.00 | $248,880.00 | |
Series Authentic | Per Unit | 1 | $206.00 | $0.00 | $206.00 |
Total Maximum | 12,500 | $2,575,000.00 | $0.00 | $2,575,000.00 | |
Series Storm Shooter | Per Unit | 1 | $162.00 | $0.00 | $162.00 |
Total Maximum | 2,000 | $324,000.00 | $0.00 | $324,000.00 | |
Series Naismith | Per Unit | 1 | $152.00 | $0.00 | $152.00 |
Total Maximum | 2,000 | $304,000.00 | $0.00 | $304,000.00 | |
Series NY Exacta (8) | Per Unit | 1 | $228.00 | $0.00 | $228.00 |
Total Maximum | 2,000 | $456,000.00 | $0.00 | $456,000.00 | |
Series Palace Foal | Per Unit | 1 | $120.00 | $0.00 | $120.00 |
Total Maximum | 510 | $61,200.00 | $0.00 | $61,200.00 | |
Series De Mystique '17 | Per Unit | 1 | $140.00 | $0.00 | $140.00 |
Total Maximum | 250 | $35,000.00 | $0.00 | $35,000.00 | |
Series Martita Sangrita 17 (12) | Per Unit | 1 | $320.00 | $0.00 | $320.00 |
Total Maximum | 576 | $184,320.00 | $0.00 | $184,320.00 | |
Series Daddy's Joy | Per Unit | 1 | $180.00 | $0.00 | $180.00 |
Total Maximum | 600 | $108,000.00 | $0.00 | $108,000.00 | |
Series Shake It Up Baby | Per Unit | 1 | $130.00 | $0.00 | $130.00 |
Total Maximum | 250 | $32,500.00 | $0.00 | $32,500.00 | |
Series Tizamagician (13) | Per Unit | 1 | $320.00 | $0.00 | $320.00 |
Total Maximum | 339 | $108,480.00 | $0.00 | $108,480.00 | |
Series Power Up Paynter (24) | Per Unit | 1 | $190.00 | $0.00 | $190.00 |
Total Maximum | 600 | $114,000.00 | $0.00 | $114,000.00 |
8 |
Series Wayne O | Per Unit | 1 | $95.00 | $0.00 | $95.00 |
Total Maximum | 6,000 | $570,000.00 | $0.00 | $570,000.00 | |
Series New York Claiming Package | Per Unit | 1 | $140.00 | $0.00 | $140.00 |
Total Maximum | 510 | $71,400.00 | $0.00 | $71,400.00 | |
Series Lane Way (14) | Per Unit | 1 | $90.00 | $0.00 | $90.00 |
Total Maximum | 6,000 | $540,000.00 | $0.00 | $540,000.00 | |
Series Big Mel (5) | Per Unit | 1 | $121.00 | $0.00 | $121.00 |
Total Maximum | 6,000 | $726,000.00 | $0.00 | $726,000.00 | |
Series Two Trail Sioux 17 | Per Unit | 1 | $300.00 | $0.00 | $300.00 |
Total Maximum | 450 | $135,000.00 | $0.00 | $135,000.00 | |
Series Sunny 18 (6) | Per Unit | 1 | $65.00 | $0.00 | $65.00 |
Total Maximum | 6,000 | $390,000.00 | $0.00 | $390,000.00 | |
Series Mo Mischief (17) | Per Unit | 1 | $75.00 | $0.00 | $75.00 |
Total Maximum | 5,100 | $382,500.00 | $0.00 | $382,500.00 | |
Series Deep Cover (11) | Per Unit | 1 | $220.00 | $0.00 | $220.00 |
Total Maximum | 800 | $176,000.00 | $0.00 | $176,000.00 | |
Series Thirteen Stripes | Per Unit | 1 | $229.00 | $0.00 | $229.00 |
Total Maximum | 1,000 | $229,000.00 | $0.00 | $229,000.00 | |
Series Man Among Men | Per Unit | 1 | $273.00 | $2.73 | $270.27 |
Total Maximum | 820 | $223,860.00 | $2,238.60 | $221,621.40 | |
Series Frosted Oats | Per Unit | 1 | $42.00 | $0.42 | $41.58 |
Total Maximum | 4,100 | $172,200.00 | $1,722.00 | $170,478.00 | |
Series Tapitry 19 | Per Unit | 1 | $273.00 | $2.73 | $270.27 |
Total Maximum | 820 | $223,860.00 | $2,238.60 | $221,621.40 |
9 |
Series Classofsixtythree 19 | Per Unit | 1 | $193.00 | $1.93 | $191.07 |
Total Maximum | 1,000 | $193,000.00 | $1,930.00 | $191,070.00 | |
Series Margaret Reay 19 | Per Unit | 1 | $301.00 | $3.01 | $297.99 |
Total Maximum | 820 | $246,820.00 | $2,468.20 | $244,351.80 | |
Series Awe Hush 19 | Per Unit | 1 | $164.00 | $1.64 | $162.36 |
Total Maximum | 1800 | $295,200.00 | $2,952.00 | $292,248.00 | |
Series Exonerated 19 | Per Unit | 1 | $169.00 | $1.69 | $167.31 |
Total Maximum | 820 | $138,580.00 | $1,385.80 | $137,194.20 | |
Series Speightstown Belle 19 | Per Unit | 1 | $139.00 | $1.39 | $137.61 |
Total Maximum | 900 | $125,100.00 | $1,251.00 | $123,849.00 | |
Series Latte Da 19 | Per Unit | 1 | $35.00 | $0.35 | $34.65 |
Total Maximum | 4,100 | $143,500.00 | $1,435.00 | $142,065.00 | |
Series Midnight Sweetie 19 | Per Unit | 1 | $148.00 | $1.48 | $146.52 |
Total Maximum | 820 | $121,360.00 | $1,213.60 | $120,146.40 | |
Series Ambleside Park 19 | Per Unit | 1 | $205.00 | $2.05 | $202.95 |
Total Maximum | 410 | $84,050.00 | $840.50 | $83,209.50 | |
Series Athenian Beauty 19 (25) | Per Unit | 1 | $47.00 | $0.47 | $46.53 |
Total Maximum | 1,800 | $84,600.00 | $846.00 | $83,754.00 | |
Series Apple Down Under 19 (22) | Per Unit | 1 | $173.00 | $1.73 | $171.27 |
Total Maximum | 600 | $103,800.00 | $1,038.00 | $102,762.00 | |
Series Motion Emotion | Per Unit | 1 | $84.00 | $0.84 | $83.16 |
Total Maximum | 1,020 | $85,680.00 | $856.80 | $84,823.20 | |
Series Action Bundle (10) | Per Unit | 1 | $31.00 | $0.31 | $30.69 |
Total Maximum | 10,000 | $310,000.00 | $3,100.00 | $306,900.00 | |
Series Just Louise 19 | Per Unit | 1 | $229.00 | $2.29 | $226.71 |
Total Maximum | 1,020 | $233,580.00 | $2,335.80 | $231,244.20 |
10 |
Series Lost Empire 19 | Per Unit | 1 | $35.00 | $0.35 | $34.65 |
Total Maximum | 10,200 | $357,000.00 | $3,570.00 | $353,430.00 | |
Series Cayala 19 | Per Unit | 1 | $91.00 | $0.91 | $90.09 |
Total Maximum | 4,100 | $373,100.00 | $3,731.00 | $369,369.00 | |
Series Consecrate 19 (23) | Per Unit | 1 | $157.00 | $1.57 | $155.43 |
Total Maximum | 410 | $64,370.00 | $643.70 | $63,726.30 | |
Series Future Stars Stable (9) | Per Unit | 1 | $50.00 | $0.50 | $49.50 |
Total Maximum | 10,000 | $500,000.00 | $5,000.00 | $495,000.00 | |
Series Collusion Illusion (15) | Per Unit | 1 | $30.00 | $0.30 | $29.70 |
Total Maximum | 25,000 | $750,000.00 | $7,500.00 | $742,500.00 | |
Series Monomoy Girl (19) | Per Unit | 1 | $46.00 | $0.46 | $45.54 |
Total Maximum | 10,200 | $469,200.00 | $4,692.00 | $464,508.00 | |
Series Got Stormy (20) | Per Unit | 1 | $45.00 | $0.45 | $44.55 |
Total Maximum | 5,100 | $229,500.00 | $2,295.00 | $227,205.00 | |
Series Social Dilemma | Per Unit | 1 | $167.00 | $1.67 | $165.33 |
Total Maximum | 510 | $85,170.00 | $851.70 | $84,318.30 | |
Series Going to Vegas | Per Unit | 1 | $86.00 | $0.86 | $85.14 |
Total Maximum | 5,100 | $438,600.00 | $4,386.00 | $434,214.00 | |
Series Ari the Adventurer 19 | Per Unit | 1 | $85.00 | $0.85 | $84.15 |
Total Maximum | 5,100 | $433,500.00 | $4,335.00 | $429,165.00 | |
Series Wonder Upon a Star 19 (26) | Per Unit | 1 | $37.00 | $0.37 | $36.63 |
Total Maximum | 10,000 | $370,000.00 | $3,700.00 | $366,300 | |
Series Silverpocketsfull 19 | Per Unit | 1 | $89.00 | $0.89 | $88.11 |
Total Maximum | 5,100 | $453,900.00 | $4,539.00 | $449,361.00 | |
Series Co Cola 19 | Per Unit | 1 | $106.00 | $1.06 | $104.94 |
Total Maximum | 5,100 | $540,600.00 | $5,406.00 | $535,194.00 | |
Series Who’sbeeninmybed 19 | Per Unit | 1 | $74.00 | $0.74 | $73.26 |
Total Maximum | 5,100 | $377,400.00 | $3,774.00 | $373,626.00 |
11 |
Series Into Summer 19 (21) | Per Unit | 1 | $386.00 | $3.86 | $382.14 |
Total Maximum | 650 | $250,900.00 | $2,509.00 | $248,391.00 | |
Series Race Hunter 19 | Per Unit | 1 | $52.00 | $0.52 | $51.48 |
Total Maximum | 10,000 | $520,000.00 | $5,200.00 | $514,800.00 | |
Series Courtisane 19 | Per Unit | 1 | $49.00 | $0.49 | $48.51 |
Total Maximum | 10,000 | $490,000.00 | $4,900.00 | $485,100.00 | |
Series Grand Traverse Bay 19 | Per Unit | 1 | $447.00 | $4.47 | $442.53 |
Total Maximum | 750 | $335,250.00 | $3,352.50 | $331,897.50 | |
Series Queen Amira 19 | Per Unit | 1 | $165.00 | $1.65 | $163.35 |
Total Maximum | 2,000 | $330,000.00 | $3,300.00 | $326,700.00 | |
Series Salute to America | Per Unit | 1 | $273.00 | $2.73 | $270.27 |
Total Maximum | 1,000 | $273,000.00 | $2,730.00 | $270,270.00 | |
Series Daring Dancer 20 | Per Unit | 1 | $135.00 | $1.35 | $133.65 |
Total Maximum | 750 | $101,250.00 | $1,012.50 | $100,237.50 | |
Series Grand Traverse Bay 20 | Per Unit | 1 | $121.00 | $1.21 | $119.79 |
Total Maximum | 750 | $90,750.00 | $907.50 | $89,842.50 | |
Series Mrs Whistler | Per Unit | 1 | $137.00 | $1.37 | $135.63 |
Total Maximum | 2,000 | $274,000.00 | $2,740.00 | $271,260.00 | |
Series Vow | Per Unit | 1 | $179.00 | $1.79 | $177.21 |
Total Maximum | 2,000 | $358,000.00 | $3,580.00 | $354,420.00 | |
Series Miss Sakamoto | Per Unit | 1 | $54.00 | $0.54 | $53.46 |
Total Maximum | 6,000 | $324,000.00 | $3,240.00 | $320,760.00 | |
Series Classic Cut | Per Unit | 1 | $51.00 | $0.51 | $50.49 |
Total Maximum | 10,000 | $510,000.00 | $5,100.00 | $504,900.00 |
12 |
Series Essential Rose 20 | Per Unit | 1 | $105.00 | $1.05 | $103.95 |
Total Maximum | 10,000 | $1,050,000.00 | $10,500.00 | $1,039,500.00 | |
Series Carrothers | Per Unit | 1 | $101.00 | $1.01 | 99.99 |
Total Maximum | 5,100 | $515,100.00 | $5,151.00 | $509,949.00 | |
Series Our Miss Jones 19 | Per Unit | 1 | $156.00 | $1.56 | $154.44 |
Total Maximum | 1,200 | $187,200.00 | $1,872.00 | $185,328.00 | |
Series Desire Street 19 | Per Unit | 1 | $201.00 | $2.01 | $198.99 |
Total Maximum | 1,020 | $205,020.00 | $2,050.20 | $202,969.80 | |
Series Duke of Love | Per Unit | 1 | $142.00 | $1.42 | $140.58 |
Total Maximum | 2,000 | $284,000.00 | $2,840.00 | $281,160.00 | |
Series Carrothers | Per Unit | 1 | $101.00 | $1.01 | $99.99 |
Total Maximum | 5,100 | $515,100.00 | $5,151.00 | $509,949.00 | |
Series Echo Warrior 19 | Per Unit | 1 | $58.00 | $0.58 | $57.42 |
Total Maximum | 6,000 | $348,000.00 | $3,480.00 | $344,520.00 | |
Series Vow | Per Unit | 1 | $179.00 | $1.79 | $177.21 |
Total Maximum | 2,000 | $358,000.00 | $3,580.00 | $354,420.00 | |
Series Miss Sakamoto | Per Unit | 1 | $54.00 | $0.54 | $53.46 |
Total Maximum | 6,000 | $324,000.00 | $3,240.00 | $320,760.00 | |
Series Our Miss Jones 19 | Per Unit | 1 | $156.00 | $1.56 | $154.44 |
Total Maximum | 1,200 | $187,200.00 | $1,872.00 | $185,328.00 | |
Series Desire Street 19 | Per Unit | 1 | $201.00 | $2.01 | $198.99 |
Total Maximum | 1,020 | $205,020.00 | $2,050.20 | $202,969.80 | |
Series Duke of Love | Per Unit | 1 | $142.00 | $1.42 | $140.58 |
Total Maximum | 2,000 | $284,000.00 | $2,840.00 | $281,160.00 |
13 |
Series Essential Rose 20 | Per Unit | 1 | $105.00 | $1.05 | $103.95 |
Total Maximum | 10,000 | $1,050,000.00 | $10,500.00 | $1,039,500.00 | |
Series Grand Traverse Bay 20 | Per Unit | 1 | $121.00 | $1.21 | $119.79 |
Total Maximum | 750 | $90,750.00 | $907.50 | $89,842.50 | |
Series Daring Dancer 20 | Per Unit | 1 | $135.00 | $1.35 | $133.65 |
Total Maximum | 750 | $101,250.00 | $1,012.50 | $100,237.50 | |
Series Chad Brown Bundle | Per Unit | 1 | $234.00 | $2.34 | $231.66 |
Total Maximum | 5,000 | $1,170,000.00 | $11,700.00 | $1,158,300.00 | |
Series Song of Bernadette 20 | Per Unit | 1 | $97.00 | $0.97 | $96.03 |
Total Maximum | 5,100 | $494,700.00 | $4,947.00 | $489,753.00 | |
Fenwick Hall 20 | Per Unit | 1 | $202.00 | $2.02 | $199.98 |
Total Maximum | 1,200 | $242,400.00 | $2,424.00 | $239,976.00 | |
Series War Safe | Per Unit | 1 | $146.00 | $1.46 | $144.54 |
Total Maximum | 2,000 | $292,000.00 | $2,920.00 | $289,080.00 | |
Spirit 20 | Per Unit | 1 | $84.00 | $0.84 | $83.16 |
Total Maximum | 3000 | $252,000.00 | $2,520.00 | $249,480.00 | |
Series Margarita Friday 19 | Per Unit | 1 | $166.00 | $1.66 | $164.34 |
Total Maximum | 2000 | $332,000.00 | $3,320.00 | $328,680.00 | |
Series Tufnel | Per Unit | 1 | $62.00 | $0.62 | $61.38 |
Total Maximum | 5,200 | $322,400.00 | $3,224.00 | $319,176.00 | |
Series Who Runs the World | Per Unit | 1 | $104.00 | $1.04 | $102.96 |
Total Maximum | 5100 | $530,400.00 | $5,304.00 | $525,096.00 | |
Series Balletic | Per Unit | 1 | $80.00 | $0.80 | $79.20 |
Total Maximum | 10000 | $800,000.00 | $8,000.00 | $792,000.00 |
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Le Relais 20 | Per Unit | 1 | $165.00 | $1.65 | $163.35 |
Total Maximum | 3,000 | $495,000.00 | $4,950.00 | $490,050.00 | |
Stay Fabulous | Per Unit | 1 | $124.00 | $1.24 | $122.76 |
Total Maximum | 2,500 | $310,000.00 | $3,100.00 | $306,900.00 | |
My Fast One 20 | Per Unit | 1 | $165.00 | $1.65 | $163.35 |
Total Maximum | 2,000 | $330,000.00 | $3,300.00 | $326,700.00 | |
Moonbow 20 | Per Unit | 1 | $86.00 | $0.86 | $85.14 |
Total Maximum | 2,500 | $215,000.00 | $2,150.00 | $212,850.00 | |
Helicopter Money | Per Unit | 1 | $67.00 | $0.67 | $66.33 |
Total Maximum | 3,000 | $201,000.00 | $2,010.00 | $198,990.00 | |
Series You Make Luvin Fun 19 | Per Unit | 1 | $75.00 | $0.75 | $74.25 |
Total Maximum | 6,000 | $450,000.00 | $4,500.00 | $445,500.00 | |
Mo Temptation | Per Unit | 1 | $87.00 | $0.87 | $86.13 |
Total Maximum | 3,500 | $304,500.00 | $3,045.00 | $301,455.00 | |
I'm a Looker 20 | Per Unit | 1 | $145.00 | $1.45 | $143.55 |
Total Maximum | 4,000 | $580,000.00 | $5,800.00 | $574,200.00 | |
Smart Shopping 21 | Per Unit | 1 | $127.00 | $1.27 | $125.73 |
Total Maximum | 5,000 | $635,000.00 | $6,350.00 | $628,650.00 | |
Sarrocchi 21 | Per Unit | 1 | $128.00 | $1.28 | $126.72 |
Total Maximum | 5,000 | $640,000.00 | $6,400.00 | $633,600.00 | |
Elarose 21 | Per Unit | 1 | $64.00 | $0.64 | $63.36 |
Total Maximum | 10,000 | $640,000.00 | $6,400.00 | $633,600.00 | |
Song of the Lark 21 | Per Unit | 1 | $137.00 | $1.37 | $135.63 |
Total Maximum | 2,550 | $349,350.00 | $3,493.50 | $345,856.50 |
15 |
Patsy's Kim 21 | Per Unit | 1 | $133.00 | $1.33 | $131.67 |
Total Maximum | 5,000 | $665,000.00 | $6,650.00 | $658,350.00 | |
One Last Night 21 | Per Unit | 1 | $113.00 | $1.13 | $111.87 |
Total Maximum | 3,000 | $339,000.00 | $3,390.00 | $335,610.00 | |
Enchante 21 | Per Unit | 1 | $99.00 | $0.99 | $98.01 |
Total Maximum | 6,000 | $594,000.00 | $5,940.00 | $588,060.00 | |
Kindle 21 | Per Unit | 1 | $71.00 | $0.71 | $70.29 |
Total Maximum | 5,500 | $390,500.00 | $3,905.00 | $386,595.00 |
(1) | The Company has engaged Dalmore Group, LLC (“Dalmore”), Member FINRA/SIPC, to act as the broker/dealer of record for all offerings and, thus, they will be entitled to a Brokerage Fee as reflected and described in greater detail under “Plan of Distribution and Subscription Procedure – Broker” and “– Fees and Expenses” and per the Broker-Dealer Agreement as described in the Offering Statements. | |
(2) | No underwriter has been engaged in connection with the offering of Series Interests (the “Offering”). The securities being offered in the New Offering Statement will only be offered by us and persons associated with us, in reliance on the exemption from registration contained in Rule 3a4-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend to distribute all offerings of membership interests in any series of the Company principally through the MyRacehorse™ Platform as described in greater detail under “Plan of Distribution and Subscription Procedure” as described in the Offering Statement. | |
(3) | The use of proceeds for each Series described in the Offering Statements assumes a fully subscribed Series, including interests previously issued under prior offerings of the applicable Series Interests, if any. | |
(4) | The Company has authorized an offering of up to 600 series interests in Vertical Threat. The Company previously sold 63 series interests in Vertical Threat pursuant to an exemption based California intrastate offering permit (the “Prior Vertical Threat Sale”). These series interests were sold for $210 per series interest, the same price as in the Series Vertical Threat Offering. As a result, the Company is only offering a total of 537 Series Vertical Threat Interests in the Series Vertical Threat Offering under Regulation A. On November 6, 2021, Vertical Threat, the 2017 Colt that was the Underlying Asset for the Series Vertical Threat, died. See also the Company’s Form 1-U filed with the SEC on November 10, 2021. |
16 |
(5) | On December 30, 2019, the Company approved a forward split of the Series Membership Interests of Series Big Mel (the “Series Big Mel Interests”), at a ratio of 5-for-1 (the “Split”). As a result of the foregoing, the total number of Series Big Mel Interests held by each member of Series Big Mel only will be converted automatically into the number of Series Big Mel Interests equal to (i) the number of issued and outstanding Series Big Mel Interests held by such member immediately prior to the Split, multiplied by (ii) 5. No fractional Series Big Mel Interests will be issued, and no cash or other consideration will be paid. The Series Big Mel Interests are held in electronic form with the Company’s transfer agent. Members do not have to take any action as the effect of the Split will be automatically reflected in each member’s online account. Immediately after the Split, each member’s percentage ownership interest in Series Big Mel will remain unchanged. The rights and privileges of the Series Big Mel members will be otherwise unaffected by the Split. As a result of the Split, the terms of the Series Big Mel Offering will be proportionally adjusted as follows: (i) the Total Maximum of Series Big Mel Interests offered will be increased to 5,100 and (ii) the price per Series Big Mel Interest will be decreased to $121. The overall value of Series Big Mel, including the aggregate offering amount of $617,100 and the corresponding use of proceeds will remain unchanged. The practical effect of the Split is to allow the Company to issue Series Big Mel Interests in smaller increments than originally contemplated without affecting any existing member’s percentage interests in Series Big Mel or the overall economics of the Series Big Mel Offering. See also the Company’s Form 1-U filed with the SEC on December 30, 2019.
On March 25, 2020, the Company acquired an additional 9% interest in Big Mel, taking its total interest to 60%. As such, the Company has added an additional 900 Series Big Mel Interests to the Original Offering Statement to be qualified on the same terms as previously sold such that 6,000 total Series Big Mel Interests are authorized in Series Big Mel.
On December 9, 2020, the Company purchased the remaining 40% ownership interest in Big Mel. As a result, Series Big Mel will now hold a 100% interest in Big Mel. In exchange, Series Big Mel now also has responsibility for 100% of the operating expenses associated with Big Mel. See also the Company’s Form 1-U filed with the SEC on December 11, 2020.
On August 5, 2021, Big Mel was retired from racing and will be re-trained as an off track thoroughbred horse. After making the applicable, pro rata distribution payment to members of Series Big Mel, net of any and all expenses, the Manager intends to terminate and wind up Series Big Mel because Series Big Mel would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on August 10, 2021. | |
(6) | On March 25, 2020, the Company acquired an additional 9% interest in Solar Strike (Series Sunny 18), taking its total interest to 60%. As such, the Company has added an additional 900 Series Sunny 18 Interests to the Original Offering Statement to be qualified on the same terms as previously sold such that 6,000 Series Sunny 18 Interests are authorized in Series Sunny 18.
On November 23, 2020, the Company purchased the remaining 40% ownership interest in Solar Strike, the 2018 Colt that is the Underlying Asset of Series Sunny 18. As a result, Series Sunny 18 will now hold a 100% interest in Solar Strike. In exchange, Series Sunny 18 now also has responsibility for 100% of the operating expenses associated with Solar Strike. See also the Company’s Form 1-U filed with the SEC on November 30, 2020.
On July 19, 2020, the Series Sunny 18 Offering was sold out and closed.
On July 20, 2021, Solar Strike was sold for nominal value to a qualified individual. After making the applicable, pro rata distribution payment to members of Series Sunny 18, net of any and all expenses, the Manager intends to terminate and wind up Series Sunny 18 because Series Sunny 18 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on July 26, 2021. |
17 |
(7) | Series The Filly Four is comprised of four (4) horses, (i) a 2018 Filly named, Venetian Sonata 18, (ii) a 2018 Filly named, My Sweet Addiction 18, (iii) a 2018 Filly named, My Lady Lauren 18, and (iv) a 2018 Filly named, Sapucai 18.
As of April 1, 2022, the Manager is closing the account for Series The Filly Four which has held ownership interests in four 2018 fillies – Shared Empire (Pioneer of the Nile out of Sapucai), Lady Valentine (Into Mischief out of My Lady Lauren), Joyful Addiction (Munnings out of My Sweet Addiction) and Moonlight d’Oro (Medaglia d’Oro out of Venetian Sonata). All four fillies retired from racing for Series The Filly Four and have been sold. Moonlight d’Oro is the final sale as of April 1, 2022. The sale of Moonlight d’Oro was completed via a private sale instead of public auction and this necessitated the amendment of the November 25, 2019 Agreement of Purchase of Sale and Co-Ownership (the “Co-Ownership Agreement”). The amendment to the Co-Ownership Agreement is titled “Addendum to Agreement of Purchase, Sale, and Co-Ownership”, is dated as of March 31, 2022. See also the Company’s Form 1-U filed with the SEC on February 24, 2022. After making the prorata distribution payment, if any, to members of Series The Filly Four, net of any and all Expenses, the Manager intends to terminate and wind-up Series The Filly Four because Series The Filly Four would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on April 6, 2022. | |
(8) | Series NY Exacta is comprised of two (2) horses, (i) a 2018 Filly named, Quick Conversation, and (ii) a 2018 Colt named, Psychedelic Shack | |
(9) | Series Future Stars Stable is comprised of fourteen (14) horses, (i) a 2019 Colt named, Man Among Men, (ii) a 2019 Filly named, Frosted Oats, (iii) a 2019 Filly named, Infinite Empire (formerly Tapitry 19), (iv) a 2019 Filly named, Sixtythreecaliber (formerly Classofsixtythree 19), (v) a 2019 Colt named, Provocateur (formerly Cayala 19), (vi) a 2019 Filly named, A Mo Reay (formerly Margaret Reay 19), (vii) a 2019 Colt named, Can’t Hush This (formerly Awe Hush 19), (viii) a 2019 Filly named, Above Suspicion (formerly Exonerated 19), (ix) a 2019 Colt named, Ancient Royalty (formerly Speightstown Belle 19), (x) a 2019 Filly named, Sacred Beauty (formerly Consecrate 19), (xi) a 2019 Filly named Inalattetrouble (formerly Latte Da 19), (xii) a 2019 Filly named, Dolce Notte (formerly Midnight Sweetie 19), (xiii) a 2019 Colt named, Lookwhogotlucky (formerly Ambleside Park 19), and (xiv) a 2019 Colt named, Quantum Theory (formerly Athenian Beauty 19.
On December 18, 2020, the Company filed Post-Qualification Amendment No. 20 to its offering statement on Form 1-A with the SEC and disclosed that all of the Series Interests offered for Series Future Stars Stable were sold out as of November 21, 2020. However, certain investors that tried to purchase Series Interests of Series Future Stars Stable were not able to complete their transaction because of failed ACH payment attempts. As a result, the Company is reoffering only those remaining amounts of Series Interests in Series Future Stars Stable that were not sold.
On April 26, 2021, Ancient Royalty, one of the underlying assets of Series Future Stars Stable, died. The Company held mortality insurance on Ancient Royalty. See the Company’s Form 1-U filed with the SEC on April 30, 2021. Due to the value of mortality insurance and the large volume of other assets in Series Future Stars Stable, the Series Future Stars Stable Offering will remain active.
On May 11, 2021, the Series Future Stars Stable Offering was sold out and closed. | |
(10) | Series Action Bundle is comprised of three (3) horses: (i) a 2017 Filly named His Glory, (ii) a 2015 Filly named Altea, and (iii) a 2016 Filly named Bohemian Bourbon. | |
(11) | On April 2, 2021, the Company purchased the remaining 20% ownership interest in Deep Cover, the 2018 Colt that is the Underlying Asset of Series Deep Cover. As a result, Series Deep Cover will now hold a 100% interest in Deep Cover. In exchange, Series Deep Cover now also has responsibility for 100% of the operating expenses associated with Deep Cover as of March 28, 2021. See also the Company’s Form 1-U filed with the SEC on April 6, 2021. |
18 |
(12) | The Company has authorized an offering of up to 600 series interests in Carpe Vinum (f.k.a. Martita Sangrita 17). The Company previously sold 24 series interests in Carpe Vinum pursuant to an exemption based California intrastate offering permit (the “Prior Carpe Vinum Sale”). These series interests were sold for $320 per series interest, the same price as in the Series Martita Sangrita 17 Offering. As a result, the Company is only offering a total of 576 Series Martita Sangrita 17 Interests in the Series Martita Sangrita 17 Offering under Regulation A. | |
(13) | The Company has authorized an offering of up to 600 series interests in Tizamagician. The Company previously sold 261 series interests in Tizamagician pursuant to an exemption based California intrastate offering permit (the “Prior Tizamagician Sale”). These series interests were sold for $320 per series interest, the same price as in the Series Tizamagician Offering. As a result, the Company is only offering a total of 339 Series Tizamagician Interests in the Series Tizamagician Offering under Regulation A. | |
(14) | On March 9, 2021, the Company purchased the remaining 40% ownership interest in Lane Way, the 2017 Colt that is the Underlying Asset of Series Lane Way. As a result, Series Lane Way will now hold a 100% interest in Lane Way. In exchange, Series Lane Way now also has responsibility for 100% of the operating expenses associated with Lane Way. See also the Company’s Form 1-U filed with the SEC on March 15, 2021. | |
(15) | As of December 31, 2020, Series Interests in Series Collusion Illusion were fully subscribed. However, certain investors that tried to purchase Series Interests in Series Collusion Illusion were not able to complete their transaction either because of (a) failed ACH payment attempts, or (b) a cancellation/refund of such transaction. As a result, the Company is reoffering only those remaining amounts of Series Interests in Series Collusion Illusion that were not sold. | |
(16) | On December 30, 2020, the Company purchased the remaining 45% ownership interest in Amandrea, the 2016 Filly that is the Underlying Asset of Series Amandrea, for $11,250. As a result, Series Amandrea will now hold a 100% interest in Amandrea. In exchange, Series Amandrea now also has responsibility for 100% of the operating expenses associated with Amandrea. See also the Company’s Form 1-U filed with the SEC on January 6, 2021. | |
On July 12, 2021, Amandrea was sold at public auction as a broodmare prospect for $7,000. After making the applicable, pro rata distribution payment to members of Series Amandrea, net of any and all expenses, the Manager intends to terminate and wind up Series Amandrea because Series Amandrea would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on July 16, 2021. | ||
(17) | On September 24, 2021, Mo Mischief, the Underlying Asset of Series Mo Mischief, was entered into a claiming race. Mo Mischief was claimed and thereby sold for $25,000, the listed claiming price. In addition, Mo Mischief won the claiming race and thus earned net race earnings from the race a portion of which are revenues to Series Mo Mischief. After making the applicable, pro rata distribution payment to members of Series Mo Mischief, net of any and all expenses, the Manager intends to terminate and wind up Series Mo Mischief because Series Mo Mischief would no longer have any assets or liabilities See also the Company’s Form 1-U filed with the SEC on September 30, 2021. | |
(18) | On October 15, 2021, the Company announced the retirement of Popular Demand, the Underlying Asset of Series Popular Demand, due to repetitive injuries which were deemed too risky to continue pursuing a racing career. Popular Demand had no breeding or residual value and was donated to an off-the-track program for re-homing. After making the pro rata distribution payment to members of Series Popular Demand, net of any and all Expenses, the Manager intends to terminate and wind up Series Popular Demand because Series Popular Demand would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on October 21, 2021. | |
(19) | On September 22, 2021, Monomoy Girl, the Underlying Asset of Series Monomoy Girl, was retired from racing. Monomoy Girl was acquired pursuant to a racing lease arrangement. The racing lease provided that, in the event the horse was retired, the horse owner was obligated to return a pro rata portion of the lease fee remaining for Series Monomoy Girl. As a result, a pro rata portion of the lease fee was returned to Series Monomoy Girl. After making the distribution payment to members of Series Monomoy Girl, net of any and all Expenses, the Manager intends to terminate and wind up Series Monomoy Girl because Series Monomoy Girl would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on September 22, 2021. |
19 |
(20) | On November 8, 2021, Got Stormy, the Underlying Asset of Series Got Stormy, was retired from racing. Got Stormy was acquired pursuant to a racing lease arrangement and the retirement was anticipated. After making any rorate distribution payment (if any) to members of Series Got Stormy, net of any and all Expenses, the Manager intends to terminate and wind-up Series Got Stormy because Series Got Stormy would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on November 12, 2021. | |
(21) | On or about January 23, 2022, Malibu Mayhem, a 2019 Colt, the Underlying Asset of Series Into Summer 19 suffered injuries to his left front sesamoids at Santa Anita race track. It was determined on January 24, 2022 to have surgery performed and that the injuries were career ending. After making the rorate distribution payment, if any, to members of Series Series Into Summer 19, net of any and all Expenses, the Manager intends to terminate and wind-up Series Series Into Summer 19 because Series Series Into Summer 19 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on January 27, 2022. | |
(22) | As of January 25, 2022, the Manager is closing the account for Howboutdemapples, a 2019 filly, the Underlying Asset of Series Apple Down Under 19 following a November 24, 2021 race at Churchill Downs where Howboutdemapples was claimed for $50,000. After making any prorata distribution payment, if any, to members of Series Apple Down Under 19, net of any and all Expenses, the Manager intends to terminate and wind-up Series Apple Down Under 19 because Series Apple Down Under 19 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on January 27, 2022. | |
(23) | As of February 15, 2022, the Manager is closing the account for Sacred Beauty, a 2019 filly, the Underlying Asset of Series Consecrate 19 following a February 11, 2022 race at Golden Gate where Sacred Beauty was claimed for $16,000. After making the prorata distribution payment, if any, to members of Series Consecrate 19, net of any and all Expenses, the Manager intends to terminate and wind-up Series Consecrate 19 because Series Consecrate 19 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on February 23, 2022. | |
(24) | As of February 15, 2022, the Manager has determined to retire and close the account for Power Up Paynter, a 2017 gelding. After making any prorata distribution payment, if any, to members of Series Power Up Paynter, net of any and all Expenses, the Manager intends to terminate and wind-up Series Power Up Paynter because Series Power Up Paynter would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on February 23, 2022. | |
(25) | As of February 19, 2022, the Manager is closing the account for Series Athenian Beauty 19 that owns Quantum Theory, a 2019 colt, following a February 19, 2022 race at Gulfstream Park where Quantum Theory was claimed for $35,000. After making the prorata distribution payment, if any, to members of Series Athenian Beauty 19, net of any and all Expenses, the Manager intends to terminate and wind-up Series Athenian Beauty 19 because Series Athenian Beauty 19 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on February 24, 2022. | |
(26) | As of March 15, 2022, the Manager is closing the account for Series Wonder Upon A Star 19 that owns Star Six Nine, a 2019 colt, due to a decision to retire the colt from racing. Star Six Nine has no breeding or residual value and is being donated to an off-the-track program for re-homing. After making the prorata distribution payment, if any, to members of Series Wonder Upon A Star 19, net of any and all Expenses, the Manager intends to terminate and wind-up Series Wonder Upon A Star 19 because Series Wonder Upon A Star 19 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on March 13, 2022. See also the Company’s Form 1-U filed with the SEC on March 18, 2022 (27) On August 4, 2022, Show Your Cards, the underlying asset of Series Le Relais 20, was humanely euthanized. The Company held mortality insurance on Show Your Cards. After making the applicable, pro rata distribution payment to members of Series Le Relais 20, net of any and all expenses, the Manager intends to terminate and wind up Series Le Relais 20 because Series Le Relais 20 will no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on August 8, 2022. | |
(28) | The following offerings were terminated/closed: |
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· | On February 6, 2020, the Series Palace Foal Offering was terminated prior to any securities being offered. | |
· | On September 6, 2019, the Series De Mystique ‘17 Offering was sold out and closed. | |
· | On October 18, 2019, the Series Martita Sangrita 17 Offering was sold out and closed. | |
· | On September 23, 2019, the Series Daddy’s Joy Offering was sold out and closed. | |
· | On January 22, 2020, Shake it Up Baby died. The Company held mortality insurance on Shake it Up Baby. See the Company’s Form 1-U filed with the SEC on February 6, 2020. | |
· | On September 9, 2019, the Series Tizamagician Offering was sold out and closed. | |
· | On October 11, 2019, the Series Power Up Paynter Offering was sold out and closed. | |
· | On October 26, 2019, the Series Wayne O Offering was sold out and closed. | |
· | On or around November 30, 2020, Wayne O, the 2017 Colt that is the Underlying Asset of Series Wayne O, was gelded. See also the Company’s Form 1-U filed with the SEC on November 30, 2020. | |
· | On December 22, 2019, Augusta Moon, one of the two Underlying Assets of Series New York Claiming Package, was claimed/purchased from a race for $35,000. The sale contains no other material terms and conditions. As a result of Augusta Moon being sold, the Company plans to issue a dividend of $65.93 per each Series New York Claiming Package Membership Interest which dividend represents such member’s pro rata share of the sale proceeds from the claim, the unused training reserve, unused insurance and the unrealized manager fee. See also the Company’s Form 1-U filed with the SEC on December 30, 2019. As a result of the claiming of Augusta Moon, the Series New York Claiming Package Offering was closed. | |
· | On May 25, 2020, the Series Lane Way Offering was sold out and closed. | |
· | On June 1, 2020, the Series Big Mel Offering was sold out and closed. | |
· | On July 9, 2020, Annahilate, the 2017 Colt that is the Underlying Asset for Series Two Trail Sioux 17, suffered a fracture to his lateral sesamoid in his front left limb after a workout. Although this injury is not life threatening, the nature of this injury is career ending. Because Annahilate will no longer be able to generate revenue since he will need to be retired from racing, the Series Two Trail Sioux 17 was closed. As a result, the Manager will terminate and wind up Series Two Trail Sioux 17 because Series Two Trail Sioux 17 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on July 15, 2020. | |
· | On July 28, 2020, the Company elected to geld Solar Strike due to health and safety concerns. Solar Strike still has the ability to race and generate revenues but will no longer be able to breed. In connection with the gelding, the Company and Spendthrift entered into an amendment to the Solar Strike Co-Ownership Agreement to clarify the right to geld and the effect of gelding on breeding rights and bonuses. See also the Company’s Form 1-U filed with the SEC on July 28, 2020. As a result, the Series Sunny 18 offering was closed.
On July 20, 2021, Solar Strike was sold for nominal value to a qualified individual due to Solar Strike’s training history and having been gelded. After making the applicable, pro rata distribution payment to members of Series Sunny 18, net of any and all expenses, the Manager intends to terminate and wind up Series Sunny 18 because Series Sunny 18 would no longer have any assets or liabilities. See also the Company’s Form 1-U filed with the SEC on July 26, 2021. | |
· | On September 18, 2020, the Series Vertical Threat Offering was sold out and closed. | |
· | On September 18, 2020, the Series Amandrea Offering was sold out and closed. | |
· | On September 18, 2020, the Series Keertana 18 Offering was sold out and closed. | |
· | On September 18, 2020, the Series Lazy Daisy Offering was sold out and closed. | |
· | On September 18, 2020, the Series The Filly Four Offering was sold out and closed. | |
· | On September 18, 2020, the Series Mo Mischief Offering was sold out and closed. | |
· | On September 18, 2020, the Series Deep Cover Offering was sold out and closed. | |
· | On September 18, 2020, the Series Popular Demand Offering was sold out and closed. |
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· | On September 18, 2020, the Series Authentic Offering was sold out and closed. | |
· | On September 18, 2020, the Series Storm Shooter Offering was sold out and closed. | |
· | On September 18, 2020, the Series Naismith Offering was sold out and closed. | |
· | On September 18, 2020, the Series NY Exacta Offering was sold out and closed. | |
· | On September 18, 2020, the Series Thirteen Stripes Offering was sold out and closed. | |
· | On November 9, 2020, Authentic, the 2017 Colt that is the Underlying Asset for Series Authentic, was retired from racing and began his stud career. See also the Company’s Form 1-U filed with the SEC on November 12, 2020. | |
· | On November 16, 2020, the Series Man Among Men Offering was sold out and closed. | |
· | On November 17, 2020, the Series Frosted Oats Offering was sold out and closed. | |
· | On November 16, 2020, the Series Tapitry 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Classofsixtythree 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Margaret Reay 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Awe Hush 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Exonerated 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Speightstown Belle 19 Offering was sold out and closed. | |
· | On April 26, 2021, Ancient Royalty, the underlying asset of Series Speightstown Belle 19, died. The Company held mortality insurance on Ancient Royalty. See the Company’s Form 1-U filed with the SEC on April 30, 2021. | |
· | On November 17, 2020, the Series Latte Da 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Midnight Sweetie 19 Offering was sold out and closed. | |
· | On November 16, 2020, the Series Ambleside Park 19 Offering was sold out and closed. | |
· | On November 16, 2020, the Series Athenian Beauty 19 Offering was sold out and closed. | |
· | On January 16, 2021, the Series Apple Down Under 19 Offering was sold out and closed. | |
· | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. | |
· | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
· | On April 14, 2021, the Series Just Louise 19 Offering was sold out and closed. | |
· | On May 6, 2021, the Series Lost Empire 19 Offering was sold out and closed. | |
· | On May 11, 2021, the Series Future Stars Stable Offering was sold out and closed. | |
· | On January 4, 2021, the Series Collusion Illusion Offering was sold out and closed. | |
· | On June 2, 2021, the Series Monomoy Girl Offering was sold out and closed. | |
· | On June 24, 2021, the Series Got Stormy Offering was sold out and closed. | |
· | On June 24, 2021, the Series Social Dilemma Offering was sold out and closed. | |
· | On July 18, 2021, the Series Going to Vegas Offering was sold out and closed. | |
· | On May 21, 2021, the Series Ari the Adventurer 19 Offering was sold out and closed. | |
· | On June 25, 2021, the Series Wonder Upon a Star 19 Offering was sold out and closed. | |
· | On August 6, 2021, the Series Silverpocketsfull 19 Offering was sold out and closed. | |
· | On November 18, 2020, the Series Cayala 19 Offering was sold out and closed. | |
· | On November 17, 2020, the Series Consecrate 19 Offering was sold out and closed. |
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· | On August 11, 2021, the Series Co Cola 19 Offering was sold out and closed. | |
· | On August 20, 2021, the Series Who’sbeeninmybed 19 Offering was sold out and closed. | |
· | On September 22, 2021, the Series Into Summer 19 Offering was sold out and closed. | |
· | On September 24, 2021, the Series Race Hunter19 Offering was sold out and closed. | |
· | On October 29, 2021, the Series Courtisane 19 Offering was sold out and closed. | |
· | On October 3, 2021, the Series Grand Traverse Bay 19 Offering was sold out and closed. | |
· | On August 25, 2021, the Series Queen Amira 19 Offering was sold out and closed. | |
· | On August 30, 2021, the Series Salute to America Offering was sold out and closed. | |
· | On February 22, 2022, the Series Classic Cut was sold out and closed. | |
· | On April 20, 2022, the Series Essential Rose was sold out and closed. | |
· | On April 20, 2022, the Series Carrothers was sold out and closed. | |
· | On April 20, 2022, the Series Our Miss Jones 19 was sold out and closed. | |
· | On April 20, 2022, the Series Desire Street 19 was sold out and closed. | |
· | On April 20, 2022, the Series Duke of Love was closed. | |
· | On April 20, 2022, the Series Echo Warrior 19 sold out and closed. | |
· | On April 20, 2022, the Series Vow was sold out and closed. | |
· | On April 20, 2022, the Series Miss Sakamoto was sold out and closed. | |
· | On April 20, 2022, the Series Grand Traverse Bay 20 was sold out and closed. | |
· | On May 6, 2022, the Series Daring Dancer 20 was sold out and closed. | |
· | On May 6, 2022, the Series Chad Brown Bundle was sold out and closed. | |
· | On May 6, 2022, the Series Song of Bernadette 20 was sold out and closed. | |
· | On May 11, 2022, the Series War Safe was sold out and closed. | |
· | On May 31, 2022, the Series Fenwick Hall 20 was sold out and closed. | |
· | On June 9, 2022, the Series Spirit 20 was sold out and closed. | |
· | On August 3, 2022, the Series Le Relais 20 was sold out and closed. | |
· | On August 10, 2022, the Series Margarita Friday 19 was sold out and closed. | |
· | On August 10, 2022, the Series Balletic was sold out and closed. | |
· | On August 10, 2022, the Series Tufnel was sold out and closed. | |
· | On August 10, 2022, the Series Who Runs the World was sold out and closed. | |
· | On August 23, 2022, the Series My Fast One 20 was sold out and closed. | |
· | On August 23, 2022, the Series Helicopter Money was sold out and closed. | |
· | On August 24, 2022, the Series Stay Fabulous was sold out and closed. | |
· | On August 25, 2022, the Series Moonbow 20 was sold out and closed. | |
· | On October 20, 2022, the Series You Make Lovin Fun was sold out and closed. | |
· | On October 20, 2022, the Series Mo Temptation was sold out and closed. | |
· | On October 20, 2022, the Series I’m a Looker 20 was sold out and closed. | |
· | On November 1, 2022, the Series Smart Shopping 21 was sold out and closed. |
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· | On January 11, 2023 the Series Sarrocchi 21 was sold out and closed. | |
· | On January 13, 2023 the Series Song of the Lark 21 was sold out and closed. | |
· | On January 19, 2023 the Series Elarose 21 was sold out and closed. | |
· | On January 28, 2023 the Series Patsy’s Kim 21 was sold out and closed. | |
· | On February 23, 2023 the Series One Last Night 21 was sold out and closed. | |
· | On March 18, 2023 the Series Kindle 21 was sold out and closed. |
Description of the Business – Business of the Company (Overview)
MyRacehorse democratizes the ownership of racehorses and allows fans to experience the thrill, perks and benefits of ownership at a fraction of the historical cost. This includes everything from the behind-the-scenes engagements with the horse, the jockey and trainers as well as exclusive on-track experiences and their pro-rata share of any financial gains that the ownership may create.
The Company, in collaboration with the manager, Experiential, has quickly emerged as one of the most successful stables in horse racing over the past several years. The Company has recorded over 100 wins and won two of the most prestigious races in the sports, the Kentucky Derby and Breeders Cup Classic. This is in large part due to the depth and breadth of the racing and bloodstock team employed by Experiential. They have over 100 years combined experiences buying, selling and managing thoroughbred racehorses. The team members are extremely active in working with all stakeholders that have influences on the outcomes of the racehorse. They have unencumbered access to the trainers, jockeys, racing secretaries, and veterinarians, all key stakeholders in the career of a racehorse. The manager has also built out a robust team of content developers that keeps the Investors abreast of the critical aspects of their racehorse. These updates are delivered in the form of video, text, live streams and photos through the MyRacehorse™ Platform.
The Company was formed in the state of Nevada as a series limited liability company on December 27, 2016. There is limited historical financial information about us upon which to base an evaluation of our performance. We are an emerging growth business with limited operating history. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns, such as increases in marketing costs, increases in administration expenditures associated with daily operations, increases in accounting and audit fees, and increases in legal fees related to filings and regulatory compliance.
Racehorse Ownership Interests
The Company, through individual Series, intends to purchase interests in thoroughbred horses. The Series’ percentage ownership in a specific horse is determined on a series-by-series basis. In all Series, the Company and its Manager will maintain sufficient control and input into the initial due diligence and subsequent day-to-day operating decisions, including training, maintenance and upkeep of an Underlying Asset in order to add value to the Series. If a Series owns a minority interest in an Asset, the Company will require that such Series have a wide range of voting rights within the co-ownership syndicate (including major decision rights) and the ability to control disbursements of expenses as payments to third party trainers, service providers and maintenance crews in order to properly exercise control and add value to the Series. In either a minority or majority interest the Manager has access to the key stakeholders in the day to day training of the racehorse allowing the Manager to make efficacious input regarding key decisions that include, but are not limited to, keeping a horse in tact vs gelding, running in claiming or restricted races, changing a trainer, changing a racing circuit, increasing/decreasing/maintaining the insurance policy coverage (if any) and selling/increasing ownership interests through either a partner buyout or exercising a right of first refusal.
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As an owner of a racehorse, the individual Series will receive a percentage of the purse winnings that is equal to its ownership percentage, as well as other revenue-generating events including, but not limited to claiming races (which may result in a sale of a racehorse held by a series), sales of the racehorse, marketing or sponsorship activities and the sale of future breeding rights. A possible exemption to these entitled revenue streams would be in a Racing Lease and those exemptions would be clearly outlined on the MyRacehorse Platform offering page and the Description of such Series in this Offering Circular. Similarly, the individual Series will be responsible for the expenses of the racehorse at a rate equal to its ownership percentage. These expenses will often be payable directly by the Series pursuant to the rights of its partnership, syndicate or operating agreement (“Co-Ownership Agreements”) with other co-owners of an Underlying Asset. Copies of such Co-Ownership Agreements for each respective Series are attached as exhibits hereto and descriptions of such terms are included with each Series’ respective description herein.
The Co-Ownership Agreements clearly delineate the decision making and dispute resolution processes regarding the management of the horse. The management of the horse includes but is not limited to decisions on the boarding, training, racing schedule, veterinary care and insurance on a horse. The Company, through the individual Series, only enters into Co-Ownership Agreements that empower the Manager to have major decision rights and access to all key stakeholders and key information regarding the horse. The access to information and stakeholders is required to make optimal decisions surrounding the Underlying Asset in the Series. For the sake of efficiency, the co-ownership group may decide to elect one co-owner or a third party to be the point of contact, or administrator, but in most cases each party is bestowed direct access to all the stakeholders and information. In cases where the Manager is not elected the administrator or manager of the Co-Ownership, the Manager’s personnel will maintain control over key operating decisions of the Underlying Asset of such Series. The Manager intends for the Series to maintain a sufficient level of control over the Underlying Asset by (1) majority (50%+) ownership (which includes the ability to remove the administrator), (2) heavy negotiation of the Underlying Asset’s Co-Ownership Agreement to include input on key operating decisions, discretion in payment of certain expenses and voting rights over important decisions regarding the management of the Underlying Asset, or (3) a combination of these controls.
When a Series becomes an owner of the horse, the Series’ Members may be able to enjoy some of the benefits and privileges of owning a horse. This includes the ability to visit the horse at the trainer’s barns, visit the paddock before any race the horse is in, interact with the jockey before the race, and have your photo taken in the winner's circle if the horse wins a race. Some of these Membership Experience Programs are included with Series membership, while others may require additional payments by Investors and would be attributable as revenue to the Company. Since the Member is not a direct owner but an indirect owner of the horse they must be accompanied by someone that is licensed by the state's racing authority. There is no guarantee that a licensed person will be available to accompany a member upon request. The benefits and privileges associated with a Member Interest are conditional upon compliance with the Manager’s and the Series’ Code of Conduct as outlined in the Terms of Service on the MyRacehorse™ Platform.
Racing Leases
As an alternative to the Co-Ownership structures discussed above, which include the purchase, sale and breeding rights associated with the full ownership of a horse, for certain Series, the Company, through individual Series, may enter into lease agreements or “racing leases” which will entitle the Series to the exclusive right to “all of the racing qualities of an ownership interest in the horse” including the operation of such horse during a set racing term (typically 1 year) in exchange for an upfront lease fee. The Series’ percentage lease interest in a specific horse is determined on a series-by-series basis. This means that the Series will enter into an agreement with other owners of the Underlying Asset (“Owners”) which will govern the rights of the Series during the lease term and the operation of the Underlying Asset (the “Lease Agreement”). As with Co-Ownership structures, the Company, directly or indirectly, is engaged daily on key operating decisions and has approval rights over a broad range of day-to-day operational matters that directly impact the value of the Lease Agreements for such Underlying Asset of a Series.
As the lessee of a racehorse, the individual Series will receive a percentage of the purse winnings that is equal to its lessee percentage, as well as other revenue-generating events as well as marketing and advertising related revenues. Similar to the Co-Ownership arrangements, the individual Series in the Lease Agreement will be responsible for the expenses of the racehorse at a rate equal to its lessee percentage. These expenses will often be payable directly by the Series. At the end of such lease term, however, the ownership rights in the horse revert back to the Owner along with the obligation to cover any future expenses associated with such horse.
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In the event that the Owner intends to retire the horse and elects to terminate the Lease Agreement due to health, breeding or economic interest concerns, the pro rata portion of the lease fee remaining on the Series will be re-paid to the Series.
The Company’s intent with racing leases is to capture the value of the racing career of said horse without the complexities, time and expense associated with the purchase, sale or breeding of a horse outside of its useful racing life.
Size of Thoroughbred Business
The US Gross Domestic Product for thoroughbred racing, breeding, and related activities contributes approximately $50 billion in direct economic impact to the U.S. economy. There are an estimated 40,000 thoroughbred races each year attracting 60 million spectators and bets of more than $13 billion at the tracks and at off-site locations.1
Currently, $115,000,000 billion is bet annually on horse races with the US representing about 8.5% of the total gaming market.2 The Kentucky Derby continues setting records; in 2021 the total handle was the highest in history, with just over $233 million handled, up 11.5% from the previous record.3 In 2015, Churchill Down set an attendance record with just over 170,000 people in attendance.4
$115 billion is bet annually on horse races worldwide and there are $800 million dollars a year in racehorse sales. Approximately, 8 million fans attend races each year watching over 42,500 active racehorses.5 The average sales price for a racehorse is about $65,000.6
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1 American Horse Council Foundation. 2017 National Economic Impact Study. Retrieved at http://www.horsecouncil.org/economics.
2 International Federation of Horseracing Authorities. 2015 Annual Report. Retrieved at https://www.ifhaonline.org/resources/Annual_Report_2019.pdf.
3 https://www.courier-journal.com/story/sports/2021/05/03/kentucky-derby-2021-betting-up-85-percent-from-2020/4920468001/
4 https://www.kentuckyderby.com/horses/news/second-highest-attendance-in-track-history-as-167,227-fans-watch-undefeated-nyquist-win-the-142nd-kentucky-derby
5 The Jockey Club. Fact Book Index. Retrieved at http://www.jockeyclub.com/default.asp?section=FB&area=12.
6 The Jockey Club. Fact Book Index. Retrieved at http://www.jockeyclub.com/default.asp?section=FB&area=13.
Plan of Operations
The Company, the Manager and/or its affiliates will either (1) acquire horses that are listed on the MyRacehorse™ Platform pursuant to a promissory note between the Series and lender or (2) have the Series acquire the horses upon close of the respective offering. In many instances, the lender will have a right, prior to completion of the Offering, to participate in pre-closing dividends from revenue generated by its interest in the Underlying Asset and the right to convert into the unsold portion of the offering prior to being fully funded. Copies of the respective “Profit Participation Convertible Promissory Note” for each such Series are attached as exhibits hereto.
An investment in a Series does not constitute ownership of a racehorse and does not necessarily make a Series member eligible for State based Horse Racing Owner License.
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The Series will contract with Manager to provide “ownership privileges” and “ownership experiences” for Investors. Some ownership privileges are included as a member, including access to content that will vary based on majority ownership group, trainer, track, frequency of races, racing conditions, the health of the horse and other factors. Other “ownership privileges” provided by Manager will be available for purchase and can include on track events and race day privileges including paddock, backside and winners circle access.
For each horse acquired by each individual Series, the timeline for racing and expected cash flows may vary greatly. Different acquisitions will have different timelines depending on a variety of factors. More often than not, the Series will exist for 2-6 years (the racing life cycle) and then the Underlying Asset will be sold or retired.
Deciding on a Horse
When deciding on what horse to purchase, a number of considerations must be evaluated by a seasoned team of experts. The Manager employs some of the most experienced experts in bloodstock and racing and also contracts with independent consultants to maximize its ability to make optimal decisions when purchasing a racehorse:
· | Pedigree: The recorded ancestry of the horse. | |
· | Pedigree Statistics: Win percentages and nicking statistics. | |
· | Race history (if applicable): Historic results of past races the horse has competed in | |
· | Race Replays (if applicable): Video of the historic races. | |
· | Potential trainer: Statistics and trends of the potential trainer | |
· | Valuation: The monetary worth set by the majority owner | |
· | Horse Owner/Breeder/Consignor: Historical statistics and reputation
Conformation, Physical Attributes: Athletic prowess as indicated by key attributes of his/her physique | |
· | Purchase History: Publicly recorded title transfers of the horse | |
· | Workout reports and videos: Via professional clockers and internal evaluation of video footage | |
· | Bloodstock Agent Assessment (if applicable): Record and Reputation | |
· | 3rd party appraisals (If applicable): Independent bloodstock appraisal | |
· | Veterinarian Assessments (if applicable): Independent assessment of health of horse | |
· | Biometrics (if applicable): Assessment of biometric data against desired attributes |
This initial diligence information is used to determine if the horse is one that will be added to the MyRacehorse™ Platform and then the same information is made available to the prospective Investors to assist in their individual investment decisions.
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Types of Races
Maiden - A race for Non-winners
Maiden Special Weight - For horses that have never won a race, but cannot be claimed
Claiming - Race in which horses entered are subject to purchase, or "claim", for the specified claiming price (typically the horses have won at least one claiming or maiden race)
Allowance - a race other than claiming for which the racing secretary drafts certain conditions to determine weights
Stakes - The highest level of racing
Class Structure
Stakes
Grade 1 Stakes
Grade 2 Stakes
Grade 3 Stakes
Non-Graded Stakes
Classified Allowance
N4X - Non-winners of less than 4 races excluding claiming or Maiden (also referred to as "nonwinners of four races other than Maiden or claiming" or "4th level allowance")
N3X - Non-winners of less than 3 races excluding claiming or Maiden (also referred to as nonwinners of three races other than Maiden or claiming" or "3rd level allowance")
N2X - Non-winners of less than 2 races excluding claiming or Maiden (also referred to as nonwinners of two races other than Maiden or claiming" or "2nd level allowance")
N1X - Non-winners of less than 1 races excluding claiming or Maiden (also referred to as nonwinners of one race other than Maiden or claiming" or "1st level allowance")
Claiming
$100,000 | - horses are entered but are subject to sale for the claiming price of $100,000 |
$80,000 | - horses are entered but are subject to sale for the claiming price of $80,000 |
$62,500 | - horses are entered but are subject to sale for the claiming price of $62,500 |
$50,000 | - horses are entered but are subject to sale for the claiming price of $50,000 |
$40,000 | - horses are entered but are subject to sale for the claiming price of $40,000 |
$32,000 | - horses are entered but are subject to sale for the claiming price of $32,000 |
$25,000 | - horses are entered but are subject to sale for the claiming price of $25,000 |
$20,000 | - horses are entered but are subject to sale for the claiming price of $20,000 |
$16,000 | - horses are entered but are subject to sale for the claiming price of $16,000 |
$12,500 | - horses are entered but are subject to sale for the claiming price of $12,500 |
$8,000 | - horses are entered but are subject to sale for the claiming price of $8,000 |
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Maiden
Maiden Special Weight
$50,000 Maiden Claiming
$32,000 Maiden Claiming
$25,000 Maiden Claiming
Competition
The Company under the advisement and stewardship of its Manager is becoming one of the more prominent and successful racing stables in the United States. The Company is very dependent on the expertise of its Manager. Competition in the horse racing business is strong and a constant challenge as further outlined in the “Risk Factors” section.
Government Regulation
Horse racing is regulated by the individual states and has very few centralized governing entities.
Operating Expenses
“Operating Expenses” are costs and expenses attributable to the activities of the Series (collectively, “Operating Expenses”), which may be as much as or greater than the actual cost of the interest in the Underlying Asset, including:
· | costs incurred in managing the Underlying Asset related to a Series, including, but not limited to boarding, maintenance, training and transportation costs (the “Upkeep Fees”); | |
· | costs incurred prior to the offering of the Underlying Asset, including, but not limited to costs associated with the initial acquisition of the Underlying Asset, vet checks, blood stock fees, etc. related to the pre-offering operation of the Underlying Asset (“Prepaid Expenses”), and, to the extent that Prepaid Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses and/or Distributable Cash which occur after the acquisition of the Underlying Asset; | |
· | costs incurred in preparing any reports and accounts of the Series, including any tax filings and any annual audit of the accounts of the Series (if applicable) or costs payable to any third-party registrar or transfer agent or governmental body and any reports to be filed with the Commission including periodic reports on Forms 1-K, 1-SA and 1-U; | |
· | any indemnification payments; and | |
· | any and all insurance premiums or related expenses in connection with the Underlying Asset, including mortality, loss of use, liability and/or medical insurance of an Underlying Asset to insure against the death, injury or third-party liability of racehorse ownership (as described in “Description of the Business – Business of the Company”). The decision to purchase insurance on a horse is made on a horse-by-horse basis. There is no guarantee that a horse you invest in will be insured. |
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We anticipate that for a majority of the Offerings, we will allocate a sizable portion of such Offering to a cash reserve to be spent on Upkeep Fees of the applicable Underlying Asset. However, if the Operating Expenses exceed the amount of revenues generated from the applicable Underlying Asset, the Manager may (a) advance or loan the amount of the Operating Expenses to such Series, on which the Manager may impose a reasonable rate of interest, which shall not be lower than the Applicable Federal Rate (as defined in the Internal Revenue Code), and be entitled to reimbursement of such amount from future revenues generated by such Series (“Operating Expenses Reimbursement Obligation(s)”), and/or (b) cause additional Interests to be issued in order to cover such additional amount. In such cases, until a Series generates revenues from its interest in the applicable Underlying Asset, we expect a Series to, initially, deplete only the Upkeep Fees. We may incur Operating Expenses Reimbursement Obligations or the Manager pays such Operating Expenses incurred and will not seek reimbursement if Operating Expenses exceed revenues and Upkeep Fees.
From time to time, certain Offerings will not have an allocated upfront cash reserve for Upkeep Fees as part of such Offering proceeds. Instead, the Manager or an affiliate will, in connection with such Offering, incur liabilities related to Upkeep Fees on behalf of the Series and be entitled to reimbursement of such amount only upon a sale of the Underlying Asset or a dissolution or termination of such Series and not from Distributable Cash (as defined below) from ongoing revenues generated by such Series. Notwithstanding the foregoing, in these types of Offerings, there will still exist a smaller pre-paid cash reserve for Prepaid Expenses and insurance, administrative and general Operating Expenses which is intended to cover three years of such projected Operating Expenses (excluding Upkeep Fees).
In addition, the Manager, in these types of Offerings, retains discretion to also (a) loan the amount of the Operating Expenses to such Series, on which the Manager may impose a reasonable rate of interest, which shall not be lower than the Applicable Federal Rate (as defined in the Internal Revenue Code), and/or (b) cause additional Interests to be issued in order to cover such additional amounts.
Regardless of the type of Offering, an Interest Holder will be liable only to the extent of their agreed upon capital contributions and, if no such capital remains at dissolution, such Interest Holder will not be liable for the failure of a Series to repay its underlying debt or liabilities, including the Operating Expenses Reimbursement Obligations.
Indemnification of the Manager
To the fullest extent permitted by applicable law, subject to approval of each Series Manager, all officers, directors, shareholders, partners, members, employees, representatives or agents of the Manager or a Series Manager, or their respective affiliates, employees or agents (each, a “Covered Person”) shall be entitled to indemnification from such Series (and the Company generally) for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Series Manager, or such Series and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement and any Series Agreement, except that no Covered Person shall be entitled to be indemnified for any loss, damage or claim incurred by such Covered Person by reason of fraud, deceit, gross negligence, willful misconduct or a wrongful taking with respect to such acts or omissions; provided, however, that any indemnity under the Operating Agreement shall be provided out of and to the extent of the assets of the such Series only, and no other Covered Person or any other Series or the Company shall have any liability on account thereof.
To the fullest extent permitted by applicable law, subject to approval of a Series Manager, all expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by such Series prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by such Series of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in the Operating Agreement.
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Description of the Management Agreement
Each Series will appoint the Manager to serve as Manager (the “Manager”) to manage its interest in the Underlying Asset pursuant to a management agreement (the “Management Agreement”).
The services provided by the Manager will include:
· | Rendering management and administration services and support and other management support needed for Company’s and each Series’ operations; | |
· | A license to the MyRacehorse™ Platform for the facilitation of the offerings of the Series Interests; | |
· | Determining which Assets to select and purchase; and | |
· | Determining the amount of the selling price of the Assets upon disposition thereof. |
The term of the Management Agreement shall commence on the date executed and shall have a term of one (1) year unless earlier terminated as provided for therein. The term of the Management agreement shall be automatically extended for a series of additional one (1) year terms unless Company notifies the Manager in writing of its desire to terminate this Agreement at least sixty (60) days prior to the expiration of the current term.
Each Series will indemnify the Manager out of its assets against all liabilities and losses (including amounts paid in respect of judgments, fines, penalties or settlement of litigation, including legal fees and expenses) to which they become subject by virtue of serving as Manager under the Management Agreement with respect to any act or omission that has not been determined by a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to constitute fraud, willful misconduct or gross negligence.
A copy of the Management Agreement is attached hereto as Exhibit 6.1.
Management Fee
As consideration for managing each Underlying Asset, the Manager will be paid a one-time Due Diligence Fee of approximately 15% of the offering proceeds and a Management Fee on an ongoing basis equal to 10% of Gross Proceeds generated by the Series.
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Amendment to Management Agreement – Management Performance Bonus and Final Gross Proceeds Fee (applicable to future offerings)
In connection with newly added Offerings, the Company and the Manager have entered into an amendment to modify the fee structure payable to the Manager as follows:
Combination of the existing Due Diligence and Management Fee into a “Management/Due Diligence Fee”.
The Company is combining its existing due diligence and management fee structures into a single, ongoing Management/Due Diligence Fee which will cover the Manager’s work on behalf of a Series during its lifecycle. This includes the existing Due Diligence Fee which is a fee paid to Manager as compensation for due diligence services in evaluating, investigation and discovering the Underlying Assets and establishing the Series, not to exceed the maximum Due Diligence Fee as detailed in the Use of Proceeds for each Series. This fee includes the costs associated with managing all aspects of the selection of horses and the establishment of a series. This also includes the selection and oversight of third-party contractors such as attorneys, accountants and bloodstock agents. In addition, ongoing work for management of veterinarians, co-owners, trainers, boarding facilities and review and audit of bills (from veterinarians, trainers, farriers etc.) will be covered here. The percentage will be determined on a series-by-series basis. The existing “Management Fee” as discussed below is being transitioned to a “Management Performance Bonus” which will only accrue in certain circumstances as described below.
Creation of “Management Performance Bonus” and “Final Gross Proceeds Fee.”
For newly added Offerings, the “Management Fee” has been combined with the “Due Diligence Fee” resulting in the “Management/Due Diligence Fee”.
In its place, a “Management Performance Bonus” will be in place for newly added offerings and is limited in scope when compared with the past “Management Fee”. For the Management Performance Bonus, the Manager shall receive 10 % of all Gross Proceeds from stakes races only.
Separately, for newly added Offerings, in connection with final sales of the Underlying Asset, in addition to the Management Performance Bonus, upon the sale of an Underlying Asset, the Manager shall receive 5% of the Final Sale Gross Proceeds if the Underlying Asset has depreciated and 20% of the Final Sale Gross Proceeds if the Underlying Asset has appreciated (referred to as “Final Gross Proceeds Fee”).
“Final Sale Gross Proceeds” is defined as the sum of all money generated by the sale of a horse owned by a Series, prior to any deductions that have been made or will be used for expenses. The Underlying Asset appreciation is calculated as the Gross Sale Price minus the Gross Purchase Price.
A copy of the Amendment First Amendment to Management Services Agreement is attached hereto as Exhibit 6.36
Facilities
The Manager is located 2456 Fortune Dr., Suite 110, Lexington, Kentucky 2456 and has a three year lease on the facility. The Manager presently has approximately 28 employees, 10 independent contractors and 1 advisor. The Company does not have any employees.
Legal proceedings
None of the Company, any series, the Manager, or any director or executive officer of the Manager is presently subject to any material legal proceedings.
Allocation of expenses
To the extent relevant, Offering Expenses, Operating Expenses, revenue generated from interests in underlying assets and any indemnification payments made by the Company will be allocated amongst the various interests in accordance with the Manager’s sole discretion. The Manager intends to allocate items that are allocable to a specific series to be borne by, or distributed to (as applicable), the applicable series of interests. If, however, an item is not allocable to a specific series but to the Company in general, it will be allocated pro rata based on the value of interests in underlying assets (e.g., in respect of asset level insurance) or the number of interests, as reasonably determined by the Manager.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
The Company was formed in the State of Nevada as a series limited liability company on December 27, 2016. Since our inception, we have been engaged primarily in acquiring a collection of horses for use in racing (each, an “Underlying Asset”). The Company, through individual Series, takes ownership in a particular racehorse or group of racehorses (all of the series of the Company offered in such racehorse(s) may collectively be referred to herein as the “Series”, and each, individually, as a “Series”; The interests of all Series in such racehorse(s) may collectively be referred to herein as the “Interests”, and each, individually, as an “Interest”). By doing so, the Company’s goal is to democratize the ownership of such racehorses, and allow fans to experience the thrill, perks and benefits of racehorse ownership at a fraction of the historical cost. This includes everything from the behind the scenes engagements with the racehorse, the jockey and trainers as well as exclusive on-track experiences, and a portion of financial gains that the ownership in such racehorse potentially creates if its breeding rights are sold, if it wins a “purse” at a racing event, if marketing or sponsorship ads are sold, or if it is claimed or sold.
We are managed by Experiential Squared, Inc. (“Experiential” or the “Manager”), a Delaware corporation incorporated in 2016. Experiential provides expert horse racing management services and owns and operates a mobile app-based crowd-funding platform called MyRacehorse™ (the MyRacehorse™ platform and any successor platform used by the Company for the offer and sale of Series interests, is referred to as the “MyRacehorse™ Platform”), which is licensed to the Company pursuant to the terms of that certain Management Services Agreement (the “Management Agreement”), through which Investors may indirectly invest, through Series of the Company’s interests, in fractional racehorse ownership interests that have been historically difficult to access for many market participants. Through the use of the MyRacehorse™ Platform, Investors can browse and screen racehorses, make potential investments in such racehorses, and sign legal documents electronically. It is the intent of the Company and its Manager to maintain control and input into the initial due diligence and subsequent training, maintenance and upkeep of the racehorses.
Experiential employs a team of horse racing experts that has allowed the Company to become one of the most successful horse racing stables in the United States over the past few years. The team has collectively over 100 years of experience buying, managing, and analyzing racehorses. This depth of expertise has led to over 118 wins since launching the stable in June of 2018 through February 2023. The wins have been achieved at the highest level in US horse racing including winning the Breeders’ Cup Classic and the Kentucky Derby. Experiential is considered a highly active racing manager through its strategically located staff in California, New York, and Kentucky (the three major markets for horse racing) and other racing markets as well. Experiential is in daily contact with the trainers and partners regarding all aspects of the racehorses under their management. Experiential also has retained a world-renowned resident veterinarian to actively review the horses in their stable for health and performance. In addition, they have access to several premium data sources that allows their horse racing experts to review speed figures, race results, pedigrees, and conditions to maximize performance of their bloodstock.
We have completed many offerings of Interests as set forth in the table below under “Operating Results” and continue to launch subsequent offerings for other series on an ongoing basis. The information contained in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” is in relation to the Company as a whole, which is made up of a number of separate series and Underlying Assets. The purchase of membership interests in a Series of the Company is an investment only in such Series and not an investment in the Company as a whole or any other Series.
As of December 31, 2022, officers of the Manager have loaned the Company a total of $2,243,920 (excluding accrued interest) in connection with the acquisition of these Underlying Assets. See Note 4 to Audited Financial Statements as of December 31, 2022 – Advances from Manager and Note 7 - Related Party Transactions of the Notes to the Financial Statements for more information regarding the loans/advances from officers of the Manager or the Manager.
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There is limited historical financial information about us upon which to base an evaluation of our performance. We are an emerging growth business with limited operating history, and we are considered to be a development stage company, since we are devoting substantially all of our efforts to establishing our business, and our planned principal operations have only recently commenced. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns, such as increases in marketing costs, increases in administration expenditures associated with daily operations, increases in accounting and audit fees, and increases in legal fees related to filings and regulatory compliance.
Operating Results – For the Years Ended December 31, 2022 and 2021
As of December 31, 2022, the following Series and related race horses have been created and are being offered pursuant to either (i) our California intrastate offering permit, (ii) Rule 506(c) of Regulation D, or (iii) the Offering Statements:
Series Name | Underlying Asset | Interests Offered (1) | Interests Sold (1) | Interests Remaining (1) | Asset Cost/Interest (2) | Operating Expense Reserve/Interest (2) | Due Diligence Fee/Interest (2) | Owed to Series (3) | Owed to Experiential (4) | Paid to Experiential (5) | Price Per Interest (6) | $ Sold (7) | $ Offered (7) | $ Remaining (7) |
Series Forever Rose | Forever Rose | 1,250 | – | 1,250 | $99.24 | $50.36 | $37.40 | $62,950.00 | $124,050.00 | $– | $187.00 | $– | $233,750.00 | $233,750.00 |
Series Kindle 21 | Kindle 21 | 5,500 | – | 5,500 | 34.57 | 20.45 | 15.98 | 112,475.00 | 190,135.00 | – | 71.00 | – | 390,500.00 | 390,500.00 |
Series The Royal Duet | The Royal Duet | 5,100 | – | 5,100 | 113.78 | 42.77 | 45.45 | 218,127.00 | 580,278.00 | – | 202.00 | – | 1,030,200.00 | 1,030,200.00 |
Series Action Bundle (8) | Action Bundle | 10,000 | 10,000 | – | 4.50 | 21.85 | 4.65 | – | – | 46,500.00 | 31.00 | 310,000.00 | 310,000.00 | – |
Series Adjust 20 | Jai Ho | 10 | 10 | – | 9,646.90 | 1,923.70 | 1,929.40 | – | – | 19,294.00 | 13,500.00 | 135,000.00 | 135,000.00 | – |
Series Amandrea | Amandrea | 550 | 550 | – | 210.00 | 40.00 | 45.00 | – | – | 24,750.00 | 295.00 | 162,250.00 | 162,250.00 | – |
Series Ambleside Park 19 | Lookwhogotlucky | 410 | 410 | – | 115.00 | 59.25 | 30.75 | – | – | 12,607.50 | 205.00 | 84,050.00 | 84,050.00 | – |
Series Amers | Amers | 75 | 75 | – | 82.00 | 37.00 | 21.00 | – | – | 1,575.00 | 140.00 | 10,500.00 | 10,500.00 | – |
Series Apple Down Under 19 | Howboutdemapples | 600 | 600 | – | 100.00 | 47.05 | 25.95 | – | – | 15,570.00 | 173.00 | 103,800.00 | 103,800.00 | – |
Series Ari the Adventurer 19 | Kanthari | 5,100 | 5,100 | – | 57.50 | 14.75 | 12.75 | – | – | 65,025.00 | 85.00 | 433,500.00 | 433,500.00 | – |
Series Ashlees Empire 20 | Helicopter Money | 3,000 | 3,000 | – | 13.13 | 40.47 | 13.40 | – | – | 40,200.00 | 67.00 | 201,000.00 | 201,000.00 | – |
Series Athenian Beauty 19 | Quantum Theory | 1,800 | 1,800 | – | 25.00 | 14.95 | 7.05 | – | – | 12,690.00 | 47.00 | 84,600.00 | 84,600.00 | – |
Series Authentic | Authentic | 12,500 | 12,500 | – | 151.54 | 23.56 | 30.90 | – | – | 386,250.00 | 206.00 | 2,575,000.00 | 2,575,000.00 | – |
Series Awe Hush 19 | Can't Hush This | 1,800 | 1,800 | – | 110.00 | 29.40 | 24.60 | – | – | 44,280.00 | 164.00 | 295,200.00 | 295,200.00 | – |
Series Bajan Bashert | Bajan Bashert | 16 | 13 | 3 | 7,000.00 | 1,600.00 | 1,400.00 | 18,200.00 | 10,000.00 | 130,000.00 | 160,000.00 | 30,000.00 | ||
Series Balletic | Balletic | 10,000 | 10,000 | – | 45.00 | 23.00 | 12.00 | – | – | 120,000.00 | 80.00 | 800,000.00 | 800,000.00 | – |
Series Bella Chica | Bella Chica | 100 | 100 | – | 250.00 | 73.00 | 57.00 | – | – | 5,700.00 | 380.00 | 38,000.00 | 38,000.00 | – |
Series Big Mel | Big Mel | 6,000 | 6,000 | – | 89.00 | 14.00 | 18.00 | – | – | 108,000.00 | 121.00 | 726,000.00 | 726,000.00 | – |
Series Black Escort 19 | Halofied | 20 | 20 | – | 2,750.00 | 1,660.00 | 590.00 | – | – | 11,800.00 | 5,000.00 | 100,000.00 | 100,000.00 | – |
Series Bullion | Bullion | 25 | 25 | – | 240.00 | – | 230.00 | – | – | 5,750.00 | 470.00 | 11,750.00 | 11,750.00 | – |
Series Cable Boss | Cable Boss | 5,100 | 5,100 | – | 55.00 | 27.45 | 14.55 | – | – | 74,205.00 | 97.00 | 494,700.00 | 494,700.00 | – |
Series Cairo Kiss | Cairo Kiss | 80 | 80 | – | 347.50 | 124.25 | 83.25 | – | – | 6,660.00 | 555.00 | 44,400.00 | 44,400.00 | – |
Series Carrothers | Carrothers | 5,100 | 5,100 | – | 60.20 | 25.65 | 15.15 | – | – | 77,265.00 | 101.00 | 515,100.00 | 515,100.00 | – |
Series Cayala 19 | Provocateur | 4,100 | 4,100 | – | 60.00 | 17.35 | 13.65 | – | – | 55,965.00 | 91.00 | 373,100.00 | 373,100.00 | – |
Series Arch Support 20 | Captain Sparrow | 10 | 10 | – | 7,717.50 | 1,939.00 | 1,543.50 | – | – | 15,435.00 | 11,200.00 | 112,000.00 | 112,000.00 | – |
Series Chad Brown Bundle | Chad Brown Bundle | 5,000 | 5,000 | – | 120.69 | 78.21 | 35.10 | – | – | 175,500.00 | 234.00 | 1,170,000.00 | 1,170,000.00 | – |
Series Chasing the Moon 20 | Cuvier | 1,250 | – | 1,250 | 58.80 | 69.20 | 32.00 | 86,500.00 | 73,500.00 | – | 160.00 | – | 200,000.00 | 200,000.00 |
Series Classic Cut | Classic Cut | 10,000 | 10,000 | – | 24.00 | 19.35 | 7.65 | – | – | 76,500.00 | 51.00 | 510,000.00 | 510,000.00 | – |
Series Classofsixtythree 19 | Sixtythreecaliber | 1,000 | 1,000 | – | 125.00 | 39.05 | 28.95 | – | – | 28,950.00 | 193.00 | 193,000.00 | 193,000.00 | – |
Series Co Cola 19 | Search Engine | 5,100 | 5,100 | – | 62.50 | 27.60 | 15.90 | – | – | 81,090.00 | 106.00 | 540,600.00 | 540,600.00 | – |
Series Collusion Illusion | Collusion Illusion | 25,000 | 25,000 | – | 22.00 | 3.50 | 4.50 | – | – | 112,500.00 | 30.00 | 750,000.00 | 750,000.00 | – |
Series Consecrate 19 | Sacred Beauty | 410 | 410 | – | 80.00 | 53.45 | 23.55 | – | – | 9,655.50 | 157.00 | 64,370.00 | 64,370.00 | – |
Series Courtisane 19 | Tap the Gavel | 10,000 | 10,000 | – | 23.00 | 18.65 | 7.35 | – | – | 73,500.00 | 49.00 | 490,000.00 | 490,000.00 | – |
Series Daddy's Joy | Daddy's Joy | 600 | 600 | – | 80.00 | 73.00 | 27.00 | – | – | 16,200.00 | 180.00 | 108,000.00 | 108,000.00 | – |
Series Dancing Crane | Dancing Crane | 20 | 20 | – | 4,250.00 | 926.00 | 924.00 | – | – | 18,480.00 | 6,100.00 | 122,000.00 | 122,000.00 | – |
Series Daring Dancer 20 | Boppy | 750 | 750 | – | 60.00 | 54.75 | 20.25 | – | – | 15,187.50 | 135.00 | 101,250.00 | 101,250.00 | – |
Series De Mystique 17 | Dancing Destroyer | 250 | 250 | – | 71.50 | 47.50 | 21.00 | – | – | 5,250.00 | 140.00 | 35,000.00 | 35,000.00 | – |
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Series Deep Cover | Deep Cover | 800 | 800 | – | 100.00 | 87.00 | 33.00 | – | – | 26,400.00 | 220.00 | 176,000.00 | 176,000.00 | – |
Series Demogorgon | Demogorgon | 20 | 20 | – | 4,500.00 | 917.00 | 983.00 | – | – | 19,660.00 | 6,400.00 | 128,000.00 | 128,000.00 | – |
Series Desire Street 19 | Always Hopeful | 1,020 | 1,020 | – | 80.00 | 90.85 | 30.15 | – | – | 30,753.00 | 201.00 | 205,020.00 | 205,020.00 | – |
Series Echo Warrior 19 | Hero Status | 6,000 | 6,000 | – | 27.00 | 22.30 | 8.70 | – | – | 52,200.00 | 58.00 | 348,000.00 | 348,000.00 | – |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 50 | 50 | – | 3,400.00 | 1,100.00 | 500.00 | – | – | 25,000.00 | 5,000.00 | 250,000.00 | 250,000.00 | – |
Series Enchante 21 | Simply Enchanting | 6,000 | 2,461 | 3,539 | 54.74 | 21.98 | 22.28 | 77,787.22 | 54,831.08 | 99.00 | 243,639.00 | 594,000.00 | ||
Series Elarose 21 | Secret Crush | 10,000 | 7,741 | 2,259 | 31.50 | 18.10 | 14.40 | 40,887.90 | 111,470.40 | 64.00 | 495,424.00 | 640,000.00 | ||
Series Escape Route | Escape Route | 10 | 10 | – | 4,240.00 | 1,016.00 | 1,039.20 | – | – | 10,392.00 | 6,295.20 | 62,952.00 | 62,952.00 | – |
Series Exonerated 19 | Above Suspicion | 820 | 820 | – | 105.00 | 38.65 | 25.35 | – | – | 20,787.00 | 169.00 | 138,580.00 | 138,580.00 | – |
Series Fenwick Hall 20 | Inspector | 1,200 | 1,200 | – | 78.75 | 82.85 | 40.40 | – | – | 48,480.00 | 202.00 | 242,400.00 | 242,400.00 | – |
Series Flora Dora 20 | Spun Intended | 10 | 10 | – | 6,890.60 | 1,731.30 | 1,378.10 | – | – | 13,781.00 | 10,000.00 | 100,000.00 | 100,000.00 | – |
Series Frosted Oats | Frosted Oats | 4,100 | 4,100 | – | 25.00 | 10.70 | 6.30 | – | – | 25,830.00 | 42.00 | 172,200.00 | 172,200.00 | – |
Series Future Stars Stable | Future Stars Stable | 10,000 | 10,000 | – | 33.55 | 8.95 | 7.50 | – | – | 75,000.00 | 50.00 | 500,000.00 | 500,000.00 | – |
Series Gentleman Gerry | Gentleman Gerry | 20 | 20 | – | 5,000.00 | 1,750.00 | 1,000.00 | – | – | 20,000.00 | 7,750.00 | 155,000.00 | 155,000.00 | – |
Series Going to Vegas | Going to Vegas | 5,100 | 5,100 | – | 50.00 | 23.10 | 12.90 | – | – | 65,790.00 | 86.00 | 438,600.00 | 438,600.00 | – |
Series Got Stormy | Got Stormy | 5,100 | 5,100 | – | 24.51 | 13.74 | 6.75 | – | – | 34,425.00 | 45.00 | 229,500.00 | 229,500.00 | – |
Series Grand Traverse Bay 19 | Cornice Traverse | 750 | 750 | – | 200.00 | 179.95 | 67.05 | – | – | 50,287.50 | 447.00 | 335,250.00 | 335,250.00 | – |
Series Grand Traverse Bay 20 | Sun Valley Road | 750 | 751 | (1) | 50.00 | 52.85 | 18.15 | (52.85) | (50.00) | 13,630.65 | 121.00 | 90,871.00 | 90,750.00 | (121.00) |
Series Heaven Street | Heaven Street | 20 | 20 | – | 5,300.00 | 1,200.00 | 1,000.00 | – | – | 20,000.00 | 7,500.00 | 150,000.00 | 150,000.00 | – |
Series I'm a Looker 20 | Pioneer Prince | 4,000 | 4,000 | – | 72.03 | 43.97 | 29.00 | – | – | 116,000.00 | 145.00 | 580,000.00 | 580,000.00 | – |
Series Into Summer 19 | Malibu Mayhem | 650 | 650 | – | 140.00 | 188.10 | 57.90 | – | – | 37,635.00 | 386.00 | 250,900.00 | 250,900.00 | – |
Series Jeanne's Speight 20 | Stay Fabulous | 2,500 | 2,492 | 8 | 49.95 | 49.25 | 24.80 | 394.00 | 399.60 | 61,801.60 | 124.00 | 309,008.00 | 310,000.00 | 992.00 |
Series Just Louise 19 | Forbidden Kingdom | 1,020 | 1,020 | – | 150.00 | 44.65 | 34.35 | – | – | 35,037.00 | 229.00 | 233,580.00 | 233,580.00 | – |
Series Keertana 18 | American Heiress | 5,100 | 5,100 | – | 72.00 | 13.00 | 15.00 | – | – | 76,500.00 | 100.00 | 510,000.00 | 510,000.00 | – |
Series Kiana's Love | Kiana's Love | 200 | 200 | – | 55.00 | 47.00 | 18.00 | – | – | 3,600.00 | 120.00 | 24,000.00 | 24,000.00 | – |
Series Kichiro | Kichiro | 200 | 200 | – | 77.50 | 33.00 | 19.50 | – | – | 3,900.00 | 130.00 | 26,000.00 | 26,000.00 | – |
Series Lane Way | Lane Way | 6,000 | 6,000 | – | 61.00 | 15.50 | 13.50 | – | – | 81,000.00 | 90.00 | 540,000.00 | 540,000.00 | – |
Series Latte Da 19 | Inalattetrouble | 4,100 | 4,100 | – | 19.50 | 10.25 | 5.25 | – | – | 21,525.00 | 35.00 | 143,500.00 | 143,500.00 | – |
Series Lazy Daisy | Lazy Daisy | 1,250 | 1,250 | – | 90.00 | 7.00 | 18.00 | – | – | 22,500.00 | 115.00 | 143,750.00 | 143,750.00 | – |
Series Le Relais 20 | Show Your Cards | 3,000 | 3,000 | – | 92.20 | 39.80 | 33.00 | – | – | 99,000.00 | 165.00 | 495,000.00 | 495,000.00 | – |
Series Lost Empire 19 | Laforgia | 10,200 | 10,200 | – | 22.50 | 7.25 | 5.25 | – | – | 53,550.00 | 35.00 | 357,000.00 | 357,000.00 | – |
Series Madarnas | Madarnas | 50 | 50 | – | 204.00 | 93.00 | 53.00 | – | – | 2,650.00 | 350.00 | 17,500.00 | 17,500.00 | – |
Series Madiera Wine | Madiera Wine | 20 | 20 | – | 1,872.50 | 253.00 | 374.50 | – | – | 7,490.00 | 2,500.00 | 50,000.00 | 50,000.00 | – |
Series Major Implications | Major Implications | 20 | 20 | – | 128.00 | 67.00 | 35.00 | – | – | 700.00 | 230.00 | 4,600.00 | 4,600.00 | – |
Series Man Among Men | Man Among Men | 820 | 820 | – | 180.00 | 52.05 | 40.95 | – | – | 33,579.00 | 273.00 | 223,860.00 | 223,860.00 | – |
Series Margaret Reay 19 | A Mo Reay | 820 | 820 | – | 200.00 | 55.85 | 45.15 | – | – | 37,023.00 | 301.00 | 246,820.00 | 246,820.00 | – |
Series Margarita Friday 19 | Straight No Chaser | 2,000 | 2,000 | – | 55.00 | 86.10 | 24.90 | – | – | 49,800.00 | 166.00 | 332,000.00 | 332,000.00 | – |
35 |
Series Martita Sangrita 17 | Carpe Vinum | 600 | 600 | – | 200.00 | 72.00 | 48.00 | – | – | 28,800.00 | 320.00 | 192,000.00 | 192,000.00 | – |
Series Mayan Milagra 19 | Tepeu | 20 | 20 | – | 5,500.00 | 1,846.00 | 1,154.00 | – | – | 23,080.00 | 8,500.00 | 170,000.00 | 170,000.00 | – |
Series Midnight Sweetie 19 | Dolce Notte | 820 | 820 | – | 90.00 | 35.80 | 22.20 | – | – | 18,204.00 | 148.00 | 121,360.00 | 121,360.00 | – |
Series Miss Puzzle | Miss Puzzle | 125 | 125 | – | 109.84 | 102.66 | 37.50 | – | – | 4,687.50 | 250.00 | 31,250.00 | 31,250.00 | – |
Series Miss Sakamoto | Miss Sakamoto | 6,000 | 6,001 | (1) | 25.00 | 20.90 | 8.10 | (20.90) | (25.00) | 48,608.10 | 54.00 | 324,054.00 | 324,000.00 | (54.00) |
Series Mo Mischief | Mo Mischief | 5,100 | 5,100 | – | 50.00 | 14.00 | 11.00 | – | – | 56,100.00 | 75.00 | 382,500.00 | 382,500.00 | – |
Series Mo Temptation | Mo Temptation | 3,500 | 3,500 | – | 34.58 | 35.02 | 17.40 | – | – | 60,900.00 | 87.00 | 304,500.00 | 304,500.00 | – |
Series Monomoy Girl | Monomoy Girl | 10,200 | 10,200 | – | 29.41 | 9.69 | 6.90 | – | – | 70,380.00 | 46.00 | 469,200.00 | 469,200.00 | – |
Series Moonbow 20 | Cumberland Falls | 2,500 | 2,500 | – | 21.69 | 47.11 | 17.20 | – | – | 43,000.00 | 86.00 | 215,000.00 | 215,000.00 | – |
Series Moonless Sky | Moonless Sky | 200 | 200 | – | 60.00 | 33.50 | 16.50 | – | – | 3,300.00 | 110.00 | 22,000.00 | 22,000.00 | – |
Series Motion Emotion (9) | Motion Emotion | 1,020 | 1,020 | – | 24.51 | 46.89 | 12.60 | – | – | 12,852.00 | 84.00 | 85,680.00 | 85,680.00 | – |
Series Mrs Whistler | Mrs Whistler | 2,000 | 2,003 | (3) | 40.00 | 76.45 | 20.55 | (229.35) | (120.00) | 41,161.65 | 137.00 | 274,411.00 | 274,000.00 | (411.00) |
Series My Fast One 20 | One Fast Dream | 2,000 | 2,000 | – | 55.50 | 76.50 | 33.00 | – | – | 66,000.00 | 165.00 | 330,000.00 | 330,000.00 | – |
Series Naismith | Naismith | 2,000 | 2,000 | – | 75.00 | 54.20 | 22.80 | – | – | 45,600.00 | 152.00 | 304,000.00 | 304,000.00 | – |
Series National Road | National Road | 20 | 20 | – | 5,000.00 | 1,000.00 | 1,000.00 | – | – | 20,000.00 | 7,000.00 | 140,000.00 | 140,000.00 | – |
Series New York Claiming Package | New York Claiming Package | 510 | 510 | – | 72.00 | 54.00 | 14.00 | – | – | 7,140.00 | 140.00 | 71,400.00 | 71,400.00 | – |
Series Night of Idiots | Night of Idiots | 80 | 80 | – | 112.00 | 100.00 | 38.00 | – | – | 3,040.00 | 250.00 | 20,000.00 | 20,000.00 | – |
Series Nileist | Nileist | 45 | 45 | – | 260.00 | 190.00 | 80.00 | – | – | 3,600.00 | 530.00 | 23,850.00 | 23,850.00 | – |
Series Noble Goddess | Noble Goddess | 300 | 300 | – | 62.00 | 31.00 | 17.00 | – | – | 5,100.00 | 110.00 | 33,000.00 | 33,000.00 | – |
Series Northern Smile 20 | Pep Rally | 20 | 20 | – | 4,500.00 | 1,600.00 | 900.00 | – | – | 18,000.00 | 7,000.00 | 140,000.00 | 140,000.00 | – |
Series NY Exacta | NY Exacta | 2,000 | 2,000 | – | 107.50 | 86.30 | 34.20 | – | – | 68,400.00 | 228.00 | 456,000.00 | 456,000.00 | – |
Series One Last Night 21 | One Last Night 21 | 3,000 | 1,348 | 1,652 | 47.82 | 39.75 | 25.43 | 65,667.00 | 78,998.64 | 34,279.64 | 113.00 | 152,324.00 | 339,000.00 | 186,676.00 |
Series Our Miss Jones 19 | Celebrity News | 1,200 | 1,200 | – | 50.00 | 82.60 | 23.40 | – | – | 28,080.00 | 156.00 | 187,200.00 | 187,200.00 | – |
Series Our Jenny B | Our Jenny B | 20 | 9 | 11 | 2,782.00 | 2,662.00 | 556.00 | 29,282.00 | 30,602.00 | 5,004.00 | 6,000.00 | 54,000.00 | 120,000.00 | 66,000.00 |
Series Palace Foal | Palace Foal | 510 | – | 510 | 31.00 | 71.00 | 18.00 | 36,210.00 | 15,810.00 | – | 120.00 | – | 61,200.00 | 61,200.00 |
Series Patsys Kim 21 | Lady Blitz | 5,000 | 3,973 | 1,027 | 67.20 | 35.87 | 29.93 | 36,838.49 | 69,014.40 | 118,911.89 | 133.00 | 528,409.00 | 665,000.00 | 136,591.00 |
Series Popular Demand | Popular Demand | 1,020 | 1,020 | – | 145.00 | 63.00 | 36.00 | – | – | 36,720.00 | 244.00 | 248,880.00 | 248,880.00 | – |
Series Power Up Paynter | Power Up Paynter | 600 | 600 | – | 100.00 | 61.00 | 29.00 | – | – | 17,400.00 | 190.00 | 114,000.00 | 114,000.00 | – |
Series Queen Amira 19 | Regal Rebel | 2,000 | 2,000 | – | 60.00 | 80.25 | 24.75 | – | – | 49,500.00 | 165.00 | 330,000.00 | 330,000.00 | – |
Series Race Hunter 19 | Chasing Time | 10,000 | 10,000 | – | 25.00 | 19.20 | 7.80 | – | – | 78,000.00 | 52.00 | 520,000.00 | 520,000.00 | – |
Series Rosie's Alibi | Rosie's Alibi | 10,000 | 10,000 | – | 62.50 | 26.75 | 15.75 | – | – | 157,500.00 | 105.00 | 1,050,000.00 | 1,050,000.00 | – |
Series Salute to America | Salute to America | 1,000 | 1,000 | – | 80.00 | 152.05 | 40.95 | – | – | 40,950.00 | 273.00 | 273,000.00 | 273,000.00 | – |
Series Sarrocchi 21 | Sarrocchi 21 | 5,000 | 4,399 | 601 | 67.20 | 32.00 | 28.80 | 19,232.00 | 40,387.20 | 126,691.20 | 128.00 | 563,072.00 | 640,000.00 | 76,928.00 |
Series Sauce On Side | Sauce On Side | 125 | 125 | – | 130.00 | 74.00 | 36.00 | – | – | 4,500.00 | 240.00 | 30,000.00 | 30,000.00 | – |
36 |
Series Shake It Up Baby | Shake It Up Baby | 250 | 250 | – | 44.00 | 66.50 | 19.50 | – | – | 4,875.00 | 130.00 | 32,500.00 | 32,500.00 | – |
Series Sigesmund | Sigesmund | 200 | 200 | – | 50.00 | 35.00 | 15.00 | – | – | 3,000.00 | 100.00 | 20,000.00 | 20,000.00 | – |
Series Silverpocketsfull 19 | Iron Works | 5,100 | 5,100 | – | 55.00 | 20.65 | 13.35 | – | – | 68,085.00 | 89.00 | 453,900.00 | 453,900.00 | – |
Series Smart Shopping 21 | Seize the Grey | 5,000 | 5,000 | – | 63.00 | 35.42 | 28.58 | – | – | 142,900.00 | 127.00 | 635,000.00 | 635,000.00 | – |
Series Social Dilemma | Social Dilemma | 510 | 510 | – | 49.02 | 92.93 | 25.05 | – | – | 12,775.50 | 167.00 | 85,170.00 | 85,170.00 | – |
Series Song of Lark 21 | Song of the Lark 21 | 2,550 | 2,113 | 437 | 66.60 | 39.58 | 30.82 | 65,122.66 | 137.00 | 289,481.00 | 349,350.00 | 59,869.00 | ||
Series Soul Beam | Soul Beam | 65 | 65 | – | 355.00 | 163.50 | 91.50 | – | – | 5,947.50 | 610.00 | 39,650.00 | 39,650.00 | – |
Series Speightstown Belle 19 | Ancient Royalty | 900 | 900 | – | 85.00 | 33.15 | 20.85 | – | – | 18,765.00 | 139.00 | 125,100.00 | 125,100.00 | – |
Series Spirit 20 | Phantom Ride | 3,000 | 3,000 | – | 33.60 | 33.60 | 16.80 | – | – | 50,400.00 | 84.00 | 252,000.00 | 252,000.00 | – |
Series Squared Straight | Squared Straight | 150 | 150 | – | 150.00 | 79.50 | 40.50 | – | – | 6,075.00 | 270.00 | 40,500.00 | 40,500.00 | – |
Series Storm Shooter | Storm Shooter | 2,000 | 2,000 | – | 90.00 | 48.00 | 24.00 | – | – | 48,000.00 | 162.00 | 324,000.00 | 324,000.00 | – |
Series Street Band | Street Band | 50 | 50 | – | 918.00 | 127.00 | 185.00 | – | – | 9,250.00 | 1,230.00 | 61,500.00 | 61,500.00 | – |
Series Sunny 18 | Solar Strike | 6,000 | 6,000 | – | 40.30 | 14.69 | 10.01 | – | – | 60,060.00 | 65.00 | 390,000.00 | 390,000.00 | – |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 20 | 20 | – | 3,500.00 | 781.10 | 718.90 | – | – | 14,378.00 | 5,000.00 | 100,000.00 | 100,000.00 | – |
Series Sweet Sweet Annie 19 | In Due Time | 20 | 20 | – | 4,750.00 | 1,739.00 | 1,011.00 | – | – | 20,220.00 | 7,500.00 | 150,000.00 | 150,000.00 | – |
Series Swiss Minister | Swiss Minister | 50 | 50 | – | 150.00 | 88.00 | 42.00 | – | – | 2,100.00 | 280.00 | 14,000.00 | 14,000.00 | – |
Series Takeo Squared | Takeo Squared | 100 | 100 | – | 153.00 | 76.00 | 41.00 | – | – | 4,100.00 | 270.00 | 27,000.00 | 27,000.00 | – |
Series Tapitry 19 | Infinite Empire | 820 | 820 | – | 180.00 | 52.05 | 40.95 | – | – | 33,579.00 | 273.00 | 223,860.00 | 223,860.00 | – |
Series Tavasco Road | Tavasco Road | 80 | 80 | – | 128.00 | 67.00 | 35.00 | – | – | 2,800.00 | 230.00 | 18,400.00 | 18,400.00 | – |
Series Tell All 19 | Walk the Talk | 12 | 12 | – | 7,000.00 | 1,987.00 | 1,513.00 | – | – | 18,156.00 | 10,500.00 | 126,000.00 | 126,000.00 | – |
Series Tell the Duchess 19 | Duke of Love | 2,000 | 2,000 | – | 42.50 | 78.20 | 21.30 | – | – | 42,600.00 | 142.00 | 284,000.00 | 284,000.00 | – |
Series The Filly Four | The Filly Four | 8,000 | 8,000 | – | 105.00 | 48.00 | 27.00 | – | – | 216,000.00 | 180.00 | 1,440,000.00 | 1,440,000.00 | – |
Series Thirteen Stripes | Thirteen Stripes | 1,000 | 1,000 | – | 100.00 | 94.65 | 34.35 | – | – | 34,350.00 | 229.00 | 229,000.00 | 229,000.00 | – |
Series Timeless Trick 20 | Interstellar | 12 | 12 | – | 5,000.00 | 1,750.00 | 1,000.00 | – | – | 12,000.00 | 7,750.00 | 93,000.00 | 93,000.00 | – |
Series Tizamagician | Tizamagician | 600 | 600 | – | 185.00 | 87.00 | 48.00 | – | – | 28,800.00 | 320.00 | 192,000.00 | 192,000.00 | – |
Series Tufnel | Tufnel | 5,200 | 5,200 | – | 30.00 | 22.70 | 9.30 | – | – | 48,360.00 | 62.00 | 322,400.00 | 322,400.00 | – |
Series Twirl Girl 21 | Twirl Girl 21 | 20 | 7 | 13 | 3,975.00 | 2,730.00 | 795.00 | 35,490.00 | 5,565.00 | 7,500.00 | 52,500.00 | 150,000.00 | 97,500.00 | |
Series Two Trail Sioux 17 | Annahilate | 450 | 450 | – | 165.00 | 90.00 | 45.00 | – | – | 20,250.00 | 300.00 | 135,000.00 | 135,000.00 | – |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | 1 | 1 | – | 24,750.00 | 4,970.00 | – | – | – | – | 29,720.00 | 29,720.00 | 29,720.00 | – |
Series Utalknboutpractice | Utalknboutpractice | 100 | 100 | – | 165.00 | 90.00 | 45.00 | – | – | 4,500.00 | 300.00 | 30,000.00 | 30,000.00 | – |
Series Vertical Threat | Vertical Threat | 600 | 600 | – | 100.00 | 78.50 | 31.50 | – | – | 18,900.00 | 210.00 | 126,000.00 | 126,000.00 | – |
Series Vow | Vow | 2,000 | 2,000 | – | 70.00 | 82.15 | 26.85 | – | – | 53,700.00 | 179.00 | 358,000.00 | 358,000.00 | – |
Series War Safe | War Safe | 2,000 | 2,000 | – | 45.00 | 79.10 | 21.90 | – | – | 43,800.00 | 146.00 | 292,000.00 | 292,000.00 | – |
Series Wayne O | Wayne O | 6,000 | 6,000 | – | 75.00 | 6.00 | 14.00 | – | – | 84,000.00 | 95.00 | 570,000.00 | 570,000.00 | – |
Series Who Runs the World | Who Runs the World | 5,100 | 5,100 | – | 60.00 | 28.40 | 15.60 | – | – | 79,560.00 | 104.00 | 530,400.00 | 530,400.00 | – |
Series Who'sbeeninmybed 19 | Micro Share | 5,100 | 5,100 | – | 45.00 | 17.90 | 11.10 | – | – | 56,610.00 | 74.00 | 377,400.00 | 377,400.00 | – |
37 |
Series Without Delay | Golden Quality | 20 | 20 | – | 4,500.00 | 1,550.00 | 950.00 | – | – | 19,000.00 | 7,000.00 | 140,000.00 | 140,000.00 | – |
Series Wonder Upon a Star 19 | Star Six Nine | 10,000 | 10,000 | – | 14.00 | 17.45 | 5.55 | – | – | 55,500.00 | 37.00 | 370,000.00 | 370,000.00 | – |
Series Yes This Time | Yes This Time | 10 | 10 | – | 10,000.00 | 793.00 | 2,159.00 | – | – | 21,590.00 | 12,952.00 | 129,520.00 | 129,520.00 | – |
Series You Make Luvin Fun 19 | Magical Ways | 6,000 | 6,000 | – | 40.00 | 23.75 | 11.25 | – | – | 67,500.00 | 75.00 | 450,000.00 | 450,000.00 | – |
Series Zestful | Zestful | 100 | 100 | – | 194.00 | 78.00 | 48.00 | – | – | 4,800.00 | 320.00 | 32,000.00 | 32,000.00 | – |
______________________
(1) | Denotes total membership interests offered, sold to date and remaining to be sold in each series. | |
(2) | Denotes the “Cash Portion of the Asset Cost”, “Cash Reserves for Operating Expenses”, and “Due Diligence Fee” per membership interest sold. | |
(3) | Denotes the amount of cash held in reserve attributable to such series after deduction of “Due Diligence Fee.” | |
(4) | Denotes the amount owed to the Manager for any loans extend on behalf of a series. | |
(5) | Denotes the amount of “Due Diligence Fee” or other “Management Fee” paid to Manager. | |
(6) | Price per membership interest of each series. | |
(7) | Denotes total dollar amount offered, sold to date and remaining to be sold in each series. | |
(8) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(9) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
Revenues
Revenues are generated at the Series level. During the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company generated $4,331,342 and $2,608,565 in revenues, respectively. The increase in revenue is attributed to certain Series’ Underlying Asset winning horse race purse winnings, in addition the payment of the 1st year of stallion fees paid to Series Authentic. Some of the Company’s horses (as more particularly described in the Offering Statements under the “Use of Proceeds” section for each Underlying Asset) have begun racing, and thus, may begin to generate revenue.
During the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company incurred costs of revenue – horse expenses of $4,771,984 and $4,362,914, respectively. The increase in costs of revenue – horse expenses is attributed to the Company’s investment in new, additional Underlying Assets that are related to veterinary costs, transportation, jockey fees, etc. as directly related to the revenue-driving activities of such series of horses.
The revenues generated, and costs of revenue incurred, on a series-by-series basis as of December 31, 2022, and December 31, 2021 are as follows:
Revenues | Cost of Revenues | ||||
Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $108,820 | $– | $(155,367) |
Series Adjust 20 | Jai Ho | – | – | (15,768) | – |
Series Amandrea | Amandrea | – | 4,750 | – | (15,648) |
Series Ambleside Park 19 | Lookwhogotlucky | 3,762 | 900 | (12,142) | (23,064) |
Series Amers | Amers | – | – | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | 15,049 | – | (28,518) |
Series Ari the Adventurer 19 | Kanthari | 18,360 | – | (44,892) | (36,952) |
Series Ashlees Empire 20 | Helicopter Money | 563 | – | (24,867) | – |
38 |
Series Athenian Beauty 19 | Quantum Theory | 7,740 | 225 | (10,683) | (43,256) |
Series Authentic | Authentic | 1,226,662 | – | (189,550) | (350,467) |
Series Awe Hush 19 | Can't Hush This | 21,491 | – | (37,558) | (38,943) |
Series Bajan Bashert | Bajan Bashert | – | – | (4,707) | – |
Series Balletic | Balletic | 8,400 | – | (89,111) | (22,601) |
Series Bella Chica | Bella Chica | – | 784 | – | (8,192) |
Series Big Mel | Big Mel | – | – | – | (25,002) |
Series Black Escort 19 | Halofied | 21,454 | – | (45,412) | (30,509) |
Series Bullion | Bullion | – | – | – | – |
Series Cable Boss | Cable Boss | – | – | (39,470) | (13,193) |
Series Cairo Kiss | Cairo Kiss | – | – | – | – |
Series Carrothers | Carrothers | 32,763 | 669 | (45,879) | (53,767) |
Series Cayala 19 | Provocateur | 85,077 | 8,538 | (65,505) | (34,930) |
Series Arch Support 20 | Captain Sparrow | 2,100 | – | (19,061) | – |
Series Chad Brown Bundle | Chad Brown Bundle | 405 | – | (133,548) | (29,328) |
Series Chasing the Moon 20 | Cuvier | – | – | – | – |
Series Classic Cut | Classic Cut | – | – | (48,850) | (23,057) |
Series Classofsixtythree 19 | Sixtythreecaliber | 135,266 | – | (67,554) | (27,619) |
Series Co Cola 19 | Search Engine | 51,742 | 2,466 | (48,261) | (34,508) |
Series Collusion Illusion | Collusion Illusion | 275 | 1,125 | 4,403 | (42,037) |
Series Consecrate 19 | Sacred Beauty | 3,690 | 3,132 | (5,292) | (17,748) |
Series Courtisane 19 | Tap the Gavel | 44,425 | 5,250 | (67,374) | (55,454) |
Series Daddy's Joy | Daddy's Joy | 25,014 | 17,070 | (41,019) | (35,933) |
Series Dancing Crane | Dancing Crane | 50,400 | 24,276 | (44,673) | (53,454) |
Series Daring Dancer 20 | Boppy | – | – | (8,056) | (2,433) |
Series De Mystique 17 | Dancing Destroyer | – | – | – | – |
Series Deep Cover | Deep Cover | 84,875 | 38,500 | (79,935) | (55,911) |
Series Demogorgon | Demogorgon | 21,160 | 2,160 | (46,888) | (14,727) |
Series Desire Street 19 | Always Hopeful | 11,266 | 566 | (34,657) | (22,736) |
Series Echo Warrior 19 | Hero Status | 84,648 | – | (61,289) | (24,850) |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 80,613 | – | (85,357) | – |
Series Enchante 21 | Simply Enchanting | – | – | (14,869) | – |
Series Elarose 21 | Secret Crush | – | – | (19,904) | – |
Series Escape Route | Escape Route | 65,696 | 78,000 | (66,130) | (64,618) |
39 |
Series Exonerated 19 | Above Suspicion | 3,436 | – | (31,822) | (22,569) |
Series Fenwick Hall 20 | Inspector | 4,843 | – | (32,429) | – |
Series Forever Rose | Forever Rose | – | – | (14,668) | – |
Series Flora Dora 20 | Spun Intended | 27,100 | – | (27,690) | – |
Series Frosted Oats | Frosted Oats | 27,675 | 12,608 | (38,052) | (24,542) |
Series Future Stars Stable | Future Stars Stable | 73,017 | 20,116 | (90,324) | (80,094) |
Series Gentleman Gerry | Gentleman Gerry | 1,105 | – | (38,053) | – |
Series Going to Vegas | Going to Vegas | 222,360 | 213,304 | (134,719) | (156,054) |
Series Got Stormy | Got Stormy | – | 227,983 | – | (216,760) |
Series Grand Traverse Bay 19 | Cornice Traverse | 6,323 | 1,125 | (42,292) | (35,240) |
Series Grand Traverse Bay 20 | Sun Valley Road | 191 | – | (9,692) | (2,165) |
Series Heaven Street | Heaven Street | 7,935 | – | (20,218) | – |
Series Kindle 21 | Kindle 21 | – | – | (8,690) | – |
Series Knarsdale 21 | Knarsdale 21 | – | – | (12,589) | – |
Series I'm a Looker 20 | Pioneer Prince | – | – | (41,504) | – |
Series Into Summer 19 | Malibu Mayhem | 325 | 650 | (21,153) | (28,768) |
Series Ishvana 21 | Ishvana 21 | – | – | (14,282) | – |
Series Jeanne's Speight 20 | Stay Fabulous | 2,344 | – | (30,330) | – |
Series Just Louise 19 | Forbidden Kingdom | 221,085 | 43,095 | (144,696) | (47,049) |
Series Keertana 18 | American Heiress | – | 612 | (516) | (34,571) |
Series Kiana's Love | Kiana's Love | – | – | – | – |
Series Kichiro | Kichiro | – | 34 | – | (2,170) |
Series Lane Way | Lane Way | 175,800 | 40,068 | (107,260) | (58,994) |
Series Latte Da 19 | Inalattetrouble | – | – | (7,927) | (16,199) |
Series Lazy Daisy | Lazy Daisy | – | – | – | – |
Series Le Relais 20 | Show Your Cards | – | – | (27,826) | – |
Series Lost Empire 19 | Laforgia | 765 | – | (24,786) | (35,097) |
Series Madarnas | Madarnas | – | – | – | – |
Series Madiera Wine | Madiera Wine | 6,510 | – | (5,585) | – |
Series Major Implications | Major Implications | – | – | – | – |
Series Man Among Men | Man Among Men | 21,648 | – | (37,512) | (22,610) |
Series Margaret Reay 19 | A Mo Reay | 22,010 | 50,020 | (46,008) | (49,335) |
Series Margarita Friday 19 | Straight No Chaser | 86,800 | – | (88,089) | (24,213) |
Series Martita Sangrita 17 | Carpe Vinum | 45,744 | 5,880 | (43,310) | (30,112) |
40 |
Series Mayan Milagra 19 | Tepeu | 144,360 | – | (80,333) | (29,250) |
Series Midnight Sweetie 19 | Dolce Notte | – | – | (9,373) | (20,028) |
Series Miss Puzzle | Miss Puzzle | – | – | 7 | (4,571) |
Series Miss Sakamoto | Miss Sakamoto | 30,678 | – | (53,078) | (24,405) |
Series Mo Mischief | Mo Mischief | – | 17,710 | – | (30,924) |
Series Mo Temptation | Mo Temptation | – | – | (32,151) | – |
Series Monomoy Girl | Monomoy Girl | – | 178,500 | – | (285,659) |
Series Moonbow 20 | Cumberland Falls | 750 | – | (27,572) | – |
Series Moonless Sky | Moonless Sky | – | – | – | – |
Series Motion Emotion (2) | Motion Emotion | – | 10,032 | – | (16,821) |
Series Mrs Whistler | Mrs Whistler | 5,590 | – | (53,390) | (31,723) |
Series My Fast One 20 | One Fast Dream | – | – | (29,488) | – |
Series Naismith | Naismith | 33,660 | 10,980 | (74,001) | (52,342) |
Series National Road | National Road | 48,164 | – | (65,183) | (20,701) |
Series New York Claiming Package | New York Claiming Package | – | – | – | – |
Series Night of Idiots | Night of Idiots | – | – | – | – |
Series Nileist | Nileist | – | – | – | – |
Series Noble Goddess | Noble Goddess | – | – | – | – |
Series Northern Smile 20 | Pep Rally | 1,040 | – | (41,031) | – |
Series NY Exacta | NY Exacta | 62,924 | 41,800 | (144,570) | (108,054) |
Series One Last Night 21 | One Last Night 21 | – | – | (18,290) | – |
Series Our Miss Jones 19 | Celebrity News | 13,200 | – | (45,775) | (20,384) |
Series Our Jenny B | Our Jenny B | – | – | (8,833) | – |
Series Palace Foal | Palace Foal | – | – | – | – |
Series Patsys Kim 21 | Lady Blitz | – | – | (26,579) | – |
Series Popular Demand | Popular Demand | – | – | – | (18,168) |
Series Power Up Paynter | Power Up Paynter | – | 6,501 | 10 | (33,746) |
Series Queen Amira 19 | Regal Rebel | 690 | 5,650 | (27,653) | (38,489) |
Series Race Hunter 19 | Chasing Time | 150,300 | 119,460 | (148,019) | (74,110) |
Series Rosie's Alibi | Rosie's Alibi | 79,665 | – | (115,691) | (35,132) |
Series Salute to America | Salute to America | 62,270 | 1,050 | (73,961) | (37,015) |
Series Sarrocchi 21 | Sarrocchi 21 | – | – | (20,456) | – |
Series Sauce On Side | Sauce On Side | – | – | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – | – | – |
41 |
Series Sigesmund | Sigesmund | – | 20 | – | 867 |
Series Silverpocketsfull 19 | Iron Works | 50,711 | – | (53,890) | (34,850) |
Series Smart Shopping 21 | Seize the Grey | 25 | – | (29,169) | – |
Series Social Dilemma | Social Dilemma | – | 59,474 | – | (59,070) |
Series Song of Lark 21 | Song of the Lark 21 | – | – | (11,801) | – |
Series Soul Beam | Soul Beam | – | – | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | – | – | (11,028) |
Series Spirit 20 | Phantom Ride | 12,876 | – | (28,321) | – |
Series Squared Straight | Squared Straight | – | 2,048 | – | (3,961) |
Series Storm Shooter | Storm Shooter | 16,498 | 28,640 | (21,521) | (51,519) |
Series Street Band | Street Band | – | – | – | – |
Series Sunny 18 | Solar Strike | – | – | – | (20,359) |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 6,990 | – | (37,648) | – |
Series Sweet Sweet Annie 19 | In Due Time | 129,920 | 34,500 | (75,117) | (48,637) |
Series Swiss Minister | Swiss Minister | – | – | – | – |
Series Takeo Squared | Takeo Squared | – | – | – | – |
Series Tapitry 19 | Infinite Empire | 7,839 | 7,175 | (31,439) | (25,444) |
Series Tavasco Road | Tavasco Road | – | – | – | – |
Series Tell All 19 | Walk the Talk | – | – | (18,857) | (25,158) |
Series Tell the Duchess 19 | Duke of Love | 258,102 | 51,355 | (150,255) | (55,262) |
Series The Filly Four | The Filly Four | 21,504 | 271,309 | (26,327) | (218,243) |
Series The Royal Duet | The Royal Duet | – | – | (26,412) | – |
Series Thirteen Stripes | Thirteen Stripes | 5,445 | 38,498 | (38,022) | (59,093) |
Series Timeless Trick 20 | Interstellar | 360 | – | (24,640) | – |
Series Tizamagician | Tizamagician | 34,800 | 325,800 | (55,182) | (140,622) |
Series Tufnel | Tufnel | – | – | (26,680) | (13,446) |
Series Twirl Girl 21 | Twirl Girl 21 | – | – | (9,265) | – |
Series Two Trail Sioux 17 | Annahilate | – | – | – | (4,654) |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – | – | (1,541) |
Series Utalknboutpractice | Utalknboutpractice | – | – | – | – |
Series Vertical Threat | Vertical Threat | – | 54,840 | (3,555) | (70,755) |
Series Vow | Vow | 13,800 | 12,600 | (46,888) | (42,555) |
Series War Safe | War Safe | 16,987 | – | (70,167) | (21,030) |
Series Wayne O | Wayne O | – | 2,140 | – | (5,934) |
42 |
Series Who Runs the World | Who Runs the World | – | – | (34,135) | (14,819) |
Series Who'sbeeninmybed 19 | Micro Share | 31,416 | 4,284 | (47,261) | (32,095) |
Series Without Delay | Golden Quality | 23,076 | – | (42,331) | (18,929) |
Series Wonder Upon a Star 19 | Star Six Nine | – | – | (6,910) | (35,230) |
Series Yes This Time | Yes This Time | 18,700 | 396,425 | (59,732) | (168,276) |
Series You Make Luvin Fun 19 | Magical Ways | 4,140 | – | (45,168) | (28,383) |
Series Zestful | Zestful | – | – | – | – |
Totals | $4,331,342 | $2,608,565 | $(4,771,984) | $(4,362,914) |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
Operating Expenses
Since its formation in December 2016, the Company’s efforts have been focused on the development of the offering and marketing for fundraising. The Company commenced its planned principal operations in 2018. During the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company incurred $8,667,394 and $7,917,288, respectively, an increase of $750,106 related to general and administrative fees, management fees and depreciation. The increase was primarily driven by increased costs from the Company’s investment in new Underlying Assets.
Operating Expenses for the Company including all of the Series for the twelve-month periods ended December 31, 2022, and December 31, 2021, are as follows:
Total Operating Expenses | ||||||||||||||||
31-Dec-22 | 31-Dec-21 | Difference | Change | |||||||||||||
General and Administrative | $ | 595,392 | $ | 374,367 | $ | 221,025 | 59% | |||||||||
Management Fees | 2,502,264 | 1,949,857 | 552,407 | 28% | ||||||||||||
Depreciation | 5,569,738 | 5,593,064 | (23,326 | ) | 0% | |||||||||||
Total: | $ | 8,667,394 | $ | 7,917,288 | $ | 750,106 | 9% |
43 |
Operating Expenses - Overview
During the twelve-month periods ended December 31, 2022, and December 31, 2021, at the close of the respective offerings for the Series listed in the table below, each individual Series became responsible for operating expenses. All operating expenses are incurred on the books by the Series. The operating expenses for each Series are as follows:
Operating Expenses | |||
Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $59,782 |
Series Adjust 20 | Jai Ho | 37,014 | – |
Series Amandrea | Amandrea | – | 21,792 |
Series Ambleside Park 19 | Lookwhogotlucky | 11,477 | 21,407 |
Series Amers | Amers | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | 26,205 |
Series Ari the Adventurer 19 | Kanthari | 111,674 | 150,235 |
Series Ashlees Empire 20 | Helicopter Money | 52,473 | – |
Series Athenian Beauty 19 | Quantum Theory | 4,072 | 20,623 |
Series Authentic | Authentic | 1,407,664 | 1,665,668 |
Series Awe Hush 19 | Can't Hush This | 43,407 | 71,600 |
Series Bajan Bashert | Bajan Bashert | 20,709 | – |
Series Balletic | Balletic | 251,832 | 98,523 |
Series Bella Chica | Bella Chica | 0 | 10,633 |
Series Big Mel | Big Mel | – | 133,340 |
Series Black Escort 19 | Halofied | 24,646 | 21,480 |
Series Bullion | Bullion | – | – |
Series Cable Boss | Cable Boss | 145,984 | 75,127 |
Series Cairo Kiss | Cairo Kiss | – | – |
Series Carrothers | Carrothers | 125,663 | 158,037 |
Series Cayala 19 | Provocateur | 87,296 | 90,922 |
Series Arch Support 20 | Captain Sparrow | 29,611 | – |
Series Chad Brown Bundle | Chad Brown Bundle | 393,948 | 46,871 |
Series Chasing the Moon 20 | Cuvier | – | – |
Series Classic Cut | Classic Cut | 91,200 | 112,694 |
Series Classofsixtythree 19 | Sixtythreecaliber | 65,743 | 47,267 |
Series Co Cola 19 | Search Engine | 123,937 | 164,017 |
Series Collusion Illusion | Collusion Illusion | 54,572 | 192,246 |
44 |
Series Consecrate 19 | Sacred Beauty | 2,838 | 16,892 |
Series Courtisane 19 | Tap the Gavel | 92,142 | 135,087 |
Series Daddy's Joy | Daddy's Joy | 10,139 | 20,005 |
Series Dancing Crane | Dancing Crane | 21,199 | 43,987 |
Series Daring Dancer 20 | Boppy | 35,738 | 6,456 |
Series De Mystique 17 | Dancing Destroyer | – | – |
Series Deep Cover | Deep Cover | 37,699 | 33,517 |
Series Demogorgon | Demogorgon | 32,100 | 25,319 |
Series Desire Street 19 | Always Hopeful | 34,758 | 51,934 |
Series Echo Warrior 19 | Hero Status | 92,522 | 85,254 |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 53,054 | – |
Series Enchante 21 | Simply Enchanting | 87,876 | – |
Series Elarose 21 | Secret Crush | 146,370 | – |
Series Escape Route | Escape Route | 21,533 | 18,143 |
Series Exonerated 19 | Above Suspicion | 34,644 | 29,175 |
Series Fenwick Hall 20 | Inspector | 75,043 | – |
Series Forever Rose | Forever Rose | 26,428 | – |
Series Flora Dora 20 | Spun Intended | 31,443 | – |
Series Frosted Oats | Frosted Oats | 44,169 | 38,959 |
Series Future Stars Stable | Future Stars Stable | 106,331 | 124,219 |
Series Gentleman Gerry | Gentleman Gerry | 43,148 | – |
Series Going to Vegas | Going to Vegas | 200,577 | 184,242 |
Series Got Stormy | Got Stormy | – | 71,323 |
Series Grand Traverse Bay 19 | Cornice Traverse | 49,794 | 90,110 |
Series Grand Traverse Bay 20 | Sun Valley Road | 31,575 | 5,376 |
Series Heaven Street | Heaven Street | 35,771 | – |
Series Kindle 21 | Kindle 21 | 18,058 | – |
Series Knarsdale 21 | Knarsdale 21 | 32,275 | – |
Series I'm a Looker 20 | Pioneer Prince | 170,297 | – |
Series Into Summer 19 | Malibu Mayhem | 29,884 | 63,507 |
Series Ishvana 21 | Ishvana 21 | 11,880 | – |
Series Jeanne's Speight 20 | Stay Fabulous | 87,695 | – |
Series Just Louise 19 | Forbidden Kingdom | 78,709 | 61,184 |
Series Keertana 18 | American Heiress | 6,352 | 110,311 |
45 |
Series Kiana's Love | Kiana's Love | – | – |
Series Kichiro | Kichiro | – | 931 |
Series Lane Way | Lane Way | 152,312 | 138,604 |
Series Latte Da 19 | Inalattetrouble | 14,763 | 39,480 |
Series Lazy Daisy | Lazy Daisy | – | – |
Series Le Relais 20 | Show Your Cards | 125,487 | – |
Series Lost Empire 19 | Laforgia | 49,462 | 84,899 |
Series Madarnas | Madarnas | – | – |
Series Madiera Wine | Madiera Wine | 9,063 | – |
Series Major Implications | Major Implications | – | – |
Series Man Among Men | Man Among Men | 56,965 | 54,800 |
Series Margaret Reay 19 | A Mo Reay | 54,226 | 65,269 |
Series Margarita Friday 19 | Straight No Chaser | 103,230 | 28,116 |
Series Martita Sangrita 17 | Carpe Vinum | 26,337 | 45,213 |
Series Mayan Milagra 19 | Tepeu | 47,688 | 48,339 |
Series Midnight Sweetie 19 | Dolce Notte | 25,029 | 30,200 |
Series Miss Puzzle | Miss Puzzle | – | 6,023 |
Series Miss Sakamoto | Miss Sakamoto | 71,532 | 81,693 |
Series Mo Mischief | Mo Mischief | – | 67,929 |
Series Mo Temptation | Mo Temptation | 88,027 | – |
Series Monomoy Girl | Monomoy Girl | – | 92,430 |
Series Moonbow 20 | Cumberland Falls | 57,520 | – |
Series Moonless Sky | Moonless Sky | – | – |
Series Motion Emotion (2) | Motion Emotion | – | 15,055 |
Series Mrs Whistler | Mrs Whistler | 43,059 | 54,414 |
Series My Fast One 20 | One Fast Dream | 89,633 | – |
Series Naismith | Naismith | 63,916 | 56,760 |
Series National Road | National Road | 54,633 | 14,129 |
Series New York Claiming Package | New York Claiming Package | – | – |
Series Night of Idiots | Night of Idiots | – | – |
Series Nileist | Nileist | – | – |
Series Noble Goddess | Noble Goddess | – | – |
Series Northern Smile 20 | Pep Rally | 41,790 | – |
Series NY Exacta | NY Exacta | 82,994 | 79,778 |
46 |
Series One Last Night 21 | One Last Night 21 | 56,274 | – |
Series Our Miss Jones 19 | Celebrity News | 55,200 | 18,083 |
Series Our Jenny B | Our Jenny B | 9,871 | – |
Series Palace Foal | Palace Foal | – | 4,769 |
Series Patsys Kim 21 | Lady Blitz | 166,431 | – |
Series Popular Demand | Popular Demand | – | 48,320 |
Series Power Up Paynter | Power Up Paynter | – | 20,748 |
Series Queen Amira 19 | Regal Rebel | 28,359 | 79,597 |
Series Race Hunter 19 | Chasing Time | 109,936 | 156,451 |
Series Rosie's Alibi | Rosie's Alibi | 285,325 | 195,534 |
Series Salute to America | Salute to America | 39,027 | 61,710 |
Series Sarrocchi 21 | Sarrocchi 21 | 159,234 | – |
Series Sauce On Side | Sauce On Side | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – |
Series Sigesmund | Sigesmund | – | – |
Series Silverpocketsfull 19 | Iron Works | 110,446 | 142,657 |
Series Smart Shopping 21 | Seize the Grey | 188,624 | – |
Series Social Dilemma | Social Dilemma | – | 25,485 |
Series Song of Lark 21 | Song of the Lark 21 | 83,439 | – |
Series Soul Beam | Soul Beam | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | 11,130 |
Series Spirit 20 | Phantom Ride | 78,490 | – |
Series Squared Straight | Squared Straight | – | 2,272 |
Series Storm Shooter | Storm Shooter | 25,082 | 67,114 |
Series Street Band | Street Band | – | – |
Series Sunny 18 | Solar Strike | – | 40,082 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 30,966 | – |
Series Sweet Sweet Annie 19 | In Due Time | 41,566 | 42,035 |
Series Swiss Minister | Swiss Minister | – | – |
Series Takeo Squared | Takeo Squared | – | – |
Series Tapitry 19 | Infinite Empire | 55,584 | 55,518 |
Series Tavasco Road | Tavasco Road | – | – |
Series Tell All 19 | Walk the Talk | 25,652 | 40,934 |
Series Tell the Duchess 19 | Duke of Love | 74,993 | 54,822 |
47 |
Series The Filly Four | The Filly Four | 88,633 | 551,197 |
Series The Royal Duet | The Royal Duet | 54,430 | – |
Series Thirteen Stripes | Thirteen Stripes | 41,578 | 42,678 |
Series Timeless Trick 20 | Interstellar | 25,500 | – |
Series Tizamagician | Tizamagician | 27,143 | 75,395 |
Series Tufnel | Tufnel | 62,330 | 63,592 |
Series Twirl Girl 21 | Twirl Girl 21 | 12,509 | – |
Series Two Trail Sioux 17 | Annahilate | – | 5,058 |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 4,282 |
Series Utalknboutpractice | Utalknboutpractice | – | – |
Series Vertical Threat | Vertical Threat | 10,233 | 44,348 |
Series Vow | Vow | 55,207 | 92,574 |
Series War Safe | War Safe | 66,491 | 34,815 |
Series Wayne O | Wayne O | – | 11,158 |
Series Who Runs the World | Who Runs the World | 169,555 | 69,514 |
Series Who'sbeeninmybed 19 | Micro Share | 91,467 | 118,967 |
Series Without Delay | Golden Quality | 35,505 | 32,033 |
Series Wonder Upon a Star 19 | Star Six Nine | 27,036 | 100,200 |
Series Yes This Time | Yes This Time | 36,386 | 90,124 |
Series You Make Luvin Fun 19 | Magical Ways | 116,267 | 106,565 |
Series Zestful | Zestful | – | – |
Totals | $8,667,394 | $7,917,288 |
_______________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
Operating Expenses - General and Administrative
For the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company incurred general and administrative fees of $595,392 and $374,367, respectively, an increase of $221,025. This is due to an increase in the minimum annual General and Administrative expense that is incurred by each Series, as well as certain series that incurred state and federal tax expense. In addition, many of the horses that incurred expenses in the prior period incurred a subsequent fee in the current period. The expense increases based on the size of the overall offering. These increases in offerings combined with larger offerings contributed to an overall increase in the general and administrative expense for the Company for the period ending December 31, 2022 relative to the prior period.
48 |
The general and administrative fees incurred on a series-by-series basis as of December 31, 2022, and December 31, 2021 are as follows:
General and Administrative Fees | |||
Series-Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $2,400 |
Series Adjust 20 | Jai Ho | – | – |
Series Amandrea | Amandrea | – | 825 |
Series Ambleside Park 19 | Lookwhogotlucky | 3,200 | 5,600 |
Series Amers | Amers | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | 5,200 |
Series Ari the Adventurer 19 | Kanthari | 7,200 | 6,025 |
Series Ashlees Empire 20 | Helicopter Money | 5,200 | – |
Series Athenian Beauty 19 | Quantum Theory | 1,200 | 5,600 |
Series Authentic | Authentic | 4,925 | 8,970 |
Series Awe Hush 19 | Can't Hush This | 4,000 | 5,600 |
Series Bajan Bashert | Bajan Bashert | – | – |
Series Balletic | Balletic | 7,200 | 3,000 |
Series Bella Chica | Bella Chica | – | 2,300 |
Series Big Mel | Big Mel | – | 800 |
Series Black Escort 19 | Halofied | 4,200 | – |
Series Bullion | Bullion | – | – |
Series Cable Boss | Cable Boss | 7,200 | 3,000 |
Series Cairo Kiss | Cairo Kiss | – | – |
Series Carrothers | Carrothers | 6,600 | 6,625 |
Series Cayala 19 | Provocateur | 6,708 | 8,000 |
Series Arch Support 20 | Captain Sparrow | – | – |
Series Chad Brown Bundle | Chad Brown Bundle | 7,200 | 1,200 |
Series Chasing the Moon 20 | Cuvier | – | – |
Series Classic Cut | Classic Cut | 7,200 | 3,000 |
Series Classofsixtythree 19 | Sixtythreecaliber | 5,600 | 5,600 |
Series Co Cola 19 | Search Engine | 7,200 | 5,575 |
Series Collusion Illusion | Collusion Illusion | 2,600 | 8,800 |
49 |
Series Consecrate 19 | Sacred Beauty | 1,200 | 5,600 |
Series Courtisane 19 | Tap the Gavel | 7,200 | 5,425 |
Series Daddy's Joy | Daddy's Joy | 2,300 | 2,300 |
Series Dancing Crane | Dancing Crane | 4,100 | 800 |
Series Daring Dancer 20 | Boppy | 4,800 | 1,600 |
Series De Mystique 17 | Dancing Destroyer | – | – |
Series Deep Cover | Deep Cover | 2,535 | 2,500 |
Series Demogorgon | Demogorgon | 2,100 | 175 |
Series Desire Street 19 | Always Hopeful | 4,800 | 3,200 |
Series Echo Warrior 19 | Hero Status | 8,800 | 6,800 |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | – | – |
Series Enchante 21 | Simply Enchanting | 3,400 | – |
Series Elarose 21 | Secret Crush | 3,400 | – |
Series Escape Route | Escape Route | 2,900 | 800 |
Series Exonerated 19 | Above Suspicion | 5,600 | 5,600 |
Series Fenwick Hall 20 | Inspector | 4,600 | – |
Series Forever Rose | Forever Rose | 3,800 | – |
Series Flora Dora 20 | Spun Intended | 800 | – |
Series Frosted Oats | Frosted Oats | 7,235 | 8,000 |
Series Future Stars Stable | Future Stars Stable | 7,254 | 8,000 |
Series Gentleman Gerry | Gentleman Gerry | – | – |
Series Going to Vegas | Going to Vegas | 86,134 | 8,000 |
Series Got Stormy | Got Stormy | – | 14,100 |
Series Grand Traverse Bay 19 | Cornice Traverse | 4,000 | 3,625 |
Series Grand Traverse Bay 20 | Sun Valley Road | 4,800 | 1,600 |
Series Heaven Street | Heaven Street | – | – |
Series Kindle 21 | Kindle 21 | 2,600 | – |
Series Knarsdale 21 | Knarsdale 21 | 3,400 | – |
Series I'm a Looker 20 | Pioneer Prince | 5,200 | – |
Series Into Summer 19 | Malibu Mayhem | 12,892 | 4,400 |
Series Ishvana 21 | Ishvana 21 | 1,000 | – |
Series Jeanne's Speight 20 | Stay Fabulous | 3,800 | – |
50 |
Series Just Louise 19 | Forbidden Kingdom | 5,600 | 5,600 |
Series Keertana 18 | American Heiress | 800 | 2,300 |
Series Kiana's Love | Kiana's Love | – | – |
Series Kichiro | Kichiro | – | – |
Series Lane Way | Lane Way | 3,800 | 3,800 |
Series Latte Da 19 | Inalattetrouble | 4,662 | 7,200 |
Series Lazy Daisy | Lazy Daisy | – | – |
Series Le Relais 20 | Show Your Cards | 27,000 | – |
Series Lost Empire 19 | Laforgia | 6,200 | 8,000 |
Series Madarnas | Madarnas | – | – |
Series Madiera Wine | Madiera Wine | 1,000 | – |
Series Major Implications | Major Implications | – | – |
Series Man Among Men | Man Among Men | 5,600 | 5,600 |
Series Margaret Reay 19 | A Mo Reay | 5,588 | 5,600 |
Series Margarita Friday 19 | Straight No Chaser | 6,400 | 4,000 |
Series Martita Sangrita 17 | Carpe Vinum | 4,296 | 2,300 |
Series Mayan Milagra 19 | Tepeu | 2,100 | – |
Series Midnight Sweetie 19 | Dolce Notte | 4,000 | 5,600 |
Series Miss Puzzle | Miss Puzzle | – | 2,681 |
Series Miss Sakamoto | Miss Sakamoto | 7,200 | 5,425 |
Series Mo Mischief | Mo Mischief | – | 2,550 |
Series Mo Temptation | Mo Temptation | 4,800 | – |
Series Monomoy Girl | Monomoy Girl | – | 4,200 |
Series Moonbow 20 | Cumberland Falls | 4,200 | – |
Series Moonless Sky | Moonless Sky | – | – |
Series Motion Emotion (2) | Motion Emotion | – | 1,200 |
Series Mrs Whistler | Mrs Whistler | 4,800 | 3,600 |
Series My Fast One 20 | One Fast Dream | 3,800 | – |
Series Naismith | Naismith | 5,800 | 5,662 |
Series National Road | National Road | 800 | 800 |
Series New York Claiming Package | New York Claiming Package | – | – |
Series Night of Idiots | Night of Idiots | – | – |
51 |
Series Nileist | Nileist | – | – |
Series Noble Goddess | Noble Goddess | – | – |
Series Northern Smile 20 | Pep Rally | – | – |
Series NY Exacta | NY Exacta | 5,035 | 3,931 |
Series One Last Night 21 | One Last Night 21 | 4,000 | – |
Series Our Miss Jones 19 | Celebrity News | 4,800 | 3,625 |
Series Our Jenny B | Our Jenny B | – | – |
Series Palace Foal | Palace Foal | – | – |
Series Patsys Kim 21 | Lady Blitz | 3,000 | – |
Series Popular Demand | Popular Demand | – | 5,800 |
Series Power Up Paynter | Power Up Paynter | – | 1,550 |
Series Queen Amira 19 | Regal Rebel | 3,225 | 3,225 |
Series Race Hunter 19 | Chasing Time | 7,398 | 5,575 |
Series Rosie's Alibi | Rosie's Alibi | 7,200 | 3,000 |
Series Salute to America | Salute to America | 4,800 | 3,225 |
Series Sarrocchi 21 | Sarrocchi 21 | 3,400 | – |
Series Sauce On Side | Sauce On Side | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – |
Series Sigesmund | Sigesmund | – | – |
Series Silverpocketsfull 19 | Iron Works | 7,200 | 6,200 |
Series Smart Shopping 21 | Seize the Grey | 4,000 | – |
Series Social Dilemma | Social Dilemma | – | 6,763 |
Series Song of Lark 21 | Song of the Lark 21 | 2,400 | – |
Series Soul Beam | Soul Beam | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | 2,000 |
Series Spirit 20 | Phantom Ride | 4,850 | – |
Series Squared Straight | Squared Straight | – | 800 |
Series Storm Shooter | Storm Shooter | 119 | 4,250 |
Series Street Band | Street Band | – | – |
Series Sunny 18 | Solar Strike | – | 800 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 3,070 | – |
Series Sweet Sweet Annie 19 | In Due Time | 3,600 | – |
52 |
Series Swiss Minister | Swiss Minister | – | – |
Series Takeo Squared | Takeo Squared | – | – |
Series Tapitry 19 | Infinite Empire | 5,600 | 5,600 |
Series Tavasco Road | Tavasco Road | – | – |
Series Tell All 19 | Walk the Talk | 4,200 | 800 |
Series Tell the Duchess 19 | Duke of Love | 4,800 | 3,200 |
Series The Filly Four | The Filly Four | 27,347 | 7,198 |
Series The Royal Duet | The Royal Duet | 3,400 | – |
Series Thirteen Stripes | Thirteen Stripes | 7,700 | 6,600 |
Series Timeless Trick 20 | Interstellar | – | – |
Series Tizamagician | Tizamagician | 10,040 | 2,300 |
Series Tufnel | Tufnel | 7,200 | 3,000 |
Series Twirl Girl 21 | Twirl Girl 21 | – | – |
Series Two Trail Sioux 17 | Annahilate | – | 800 |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 800 |
Series Utalknboutpractice | Utalknboutpractice | – | – |
Series Vertical Threat | Vertical Threat | 10,233 | 20,163 |
Series Vow | Vow | 4,800 | 3,775 |
Series War Safe | War Safe | 4,800 | 2,400 |
Series Wayne O | Wayne O | – | -750 |
Series Who Runs the World | Who Runs the World | 7,200 | 3,175 |
Series Who'sbeeninmybed 19 | Micro Share | 8,000 | 6,200 |
Series Without Delay | Golden Quality | 4,205 | – |
Series Wonder Upon a Star 19 | Star Six Nine | 10,975 | 6,175 |
Series Yes This Time | Yes This Time | 3,053 | – |
Series You Make Luvin Fun 19 | Magical Ways | 7,215 | 5,425 |
Series Zestful | Zestful | – | – |
Totals | $595,392 | $374,367 |
_______________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
53 |
Operating Expenses – Management Fee
For the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company incurred Management Fee expenses of $2,052,264 and $1,949,857, respectively, an increase of $552,407. The increase is due primarily to the quantity and value of the overall offerings during the current period relative to the prior period. In addition, the increase in offerings combined with higher race earnings during the current period contributed to the increase from the prior period.
The Management Fee expenses on a series-by-series basis as of December 31, 2022, and December 31, 2021 are as follows:
Management Fee | |||
Series-Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $57,382 |
Series Adjust 20 | Jai Ho | 19,294 | – |
Series Amandrea | Amandrea | – | 475 |
Series Ambleside Park 19 | Lookwhogotlucky | 376 | 90 |
Series Amers | Amers | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | 1,505 |
Series Ari the Adventurer 19 | Kanthari | 1,836 | 65,025 |
Series Ashlees Empire 20 | Helicopter Money | 40,200 | – |
Series Athenian Beauty 19 | Quantum Theory | 774 | 23 |
Series Authentic | Authentic | 153,333 | – |
Series Awe Hush 19 | Can't Hush This | 2,149 | – |
Series Bajan Bashert | Bajan Bashert | 18,200 | – |
Series Balletic | Balletic | 87,132 | 33,708 |
Series Bella Chica | Bella Chica | – | – |
Series Big Mel | Big Mel | – | – |
Series Black Escort 19 | Halofied | 2,950 | 8,850 |
Series Bullion | Bullion | – | – |
Series Cable Boss | Cable Boss | 40,609 | 33,596 |
Series Cairo Kiss | Cairo Kiss | – | – |
Series Carrothers | Carrothers | 19,699 | 60,909 |
Series Cayala 19 | Provocateur | 8,508 | 922 |
Series Arch Support 20 | Captain Sparrow | 15,435 | – |
Series Chad Brown Bundle | Chad Brown Bundle | 175,541 | – |
Series Chasing the Moon 20 | Cuvier | – | – |
Series Classic Cut | Classic Cut | – | 76,500 |
Series Classofsixtythree 19 | Sixtythreecaliber | 18,477 | – |
54 |
Series Co Cola 19 | Search Engine | 5,174 | 81,337 |
Series Collusion Illusion | Collusion Illusion | 27 | 113 |
Series Consecrate 19 | Sacred Beauty | 369 | 360 |
Series Courtisane 19 | Tap the Gavel | 4,443 | 74,025 |
Series Daddy's Joy | Daddy's Joy | 2,501 | 1,707 |
Series Dancing Crane | Dancing Crane | 190 | 18,480 |
Series Daring Dancer 20 | Boppy | 15,188 | – |
Series De Mystique 17 | Dancing Destroyer | – | – |
Series Deep Cover | Deep Cover | 7,831 | 3,850 |
Series Demogorgon | Demogorgon | – | 19,660 |
Series Desire Street 19 | Always Hopeful | 1,398 | 30,538 |
Series Echo Warrior 19 | Hero Status | 27,022 | 33,643 |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 29,895 | – |
Series Enchante 21 | Simply Enchanting | 54,831 | – |
Series Elarose 21 | Secret Crush | 111,470 | – |
Series Escape Route | Escape Route | 4,500 | 3,210 |
Series Exonerated 19 | Above Suspicion | 344 | – |
Series Fenwick Hall 20 | Inspector | 48,480 | – |
Series Forever Rose | Forever Rose | – | – |
Series Flora Dora 20 | Spun Intended | 14,402 | – |
Series Frosted Oats | Frosted Oats | 2,768 | 1,261 |
Series Future Stars Stable | Future Stars Stable | 8,302 | 2,844 |
Series Gentleman Gerry | Gentleman Gerry | 20,000 | – |
Series Going to Vegas | Going to Vegas | 18,666 | 87,120 |
Series Got Stormy | Got Stormy | – | 57,223 |
Series Grand Traverse Bay 19 | Cornice Traverse | 632 | 50,400 |
Series Grand Traverse Bay 20 | Sun Valley Road | 13,650 | – |
Series Heaven Street | Heaven Street | 20,000 | – |
Series Kindle 21 | Kindle 21 | – | – |
Series Knarsdale 21 | Knarsdale 21 | – | – |
Series I'm a Looker 20 | Pioneer Prince | 116,000 | – |
Series Into Summer 19 | Malibu Mayhem | 554 | 37,179 |
55 |
Series Ishvana 21 | Ishvana 21 | – | – |
Series Jeanne's Speight 20 | Stay Fabulous | 61,802 | – |
Series Just Louise 19 | Forbidden Kingdom | 22,109 | 4,584 |
Series Keertana 18 | American Heiress | – | 61 |
Series Kiana's Love | Kiana's Love | – | – |
Series Kichiro | Kichiro | – | – |
Series Lane Way | Lane Way | 17,580 | 4,007 |
Series Latte Da 19 | Inalattetrouble | – | – |
Series Lazy Daisy | Lazy Daisy | – | – |
Series Le Relais 20 | Show Your Cards | 74,250 | – |
Series Lost Empire 19 | Laforgia | 77 | 399 |
Series Madarnas | Madarnas | – | – |
Series Madiera Wine | Madiera Wine | 7,000 | – |
Series Major Implications | Major Implications | – | – |
Series Man Among Men | Man Among Men | 2,165 | – |
Series Margaret Reay 19 | A Mo Reay | 2,201 | 5,002 |
Series Margarita Friday 19 | Straight No Chaser | 58,330 | 150 |
Series Martita Sangrita 17 | Carpe Vinum | 4,574 | 588 |
Series Mayan Milagra 19 | Tepeu | 8,921 | 23,080 |
Series Midnight Sweetie 19 | Dolce Notte | – | – |
Series Miss Puzzle | Miss Puzzle | – | – |
Series Miss Sakamoto | Miss Sakamoto | 11,832 | 39,844 |
Series Mo Mischief | Mo Mischief | – | 3,046 |
Series Mo Temptation | Mo Temptation | 60,900 | – |
Series Monomoy Girl | Monomoy Girl | – | 88,230 |
Series Moonbow 20 | Cumberland Falls | 43,000 | – |
Series Moonless Sky | Moonless Sky | – | – |
Series Motion Emotion (2) | Motion Emotion | – | 13,855 |
Series Mrs Whistler | Mrs Whistler | 10,259 | 31,462 |
Series My Fast One 20 | One Fast Dream | 66,000 | – |
Series Naismith | Naismith | 3,366 | 1,098 |
Series National Road | National Road | 20,000 | – |
56 |
Series New York Claiming Package | New York Claiming Package | – | – |
Series Night of Idiots | Night of Idiots | – | – |
Series Nileist | Nileist | – | – |
Series Noble Goddess | Noble Goddess | – | – |
Series Northern Smile 20 | Pep Rally | 18,000 | – |
Series NY Exacta | NY Exacta | 6,292 | 4,180 |
Series One Last Night 21 | One Last Night 21 | 34,280 | – |
Series Our Miss Jones 19 | Celebrity News | 29,400 | – |
Series Our Jenny B | Our Jenny B | 5,008 | – |
Series Palace Foal | Palace Foal | – | – |
Series Patsys Kim 21 | Lady Blitz | 118,872 | – |
Series Popular Demand | Popular Demand | – | – |
Series Power Up Paynter | Power Up Paynter | – | 650 |
Series Queen Amira 19 | Regal Rebel | 69 | 50,065 |
Series Race Hunter 19 | Chasing Time | 15,038 | 89,938 |
Series Rosie's Alibi | Rosie's Alibi | 59,375 | 106,092 |
Series Salute to America | Salute to America | 6,227 | 41,055 |
Series Sarrocchi 21 | Sarrocchi 21 | 126,691 | – |
Series Sauce On Side | Sauce On Side | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – |
Series Sigesmund | Sigesmund | – | – |
Series Silverpocketsfull 19 | Iron Works | 5,071 | 68,085 |
Series Smart Shopping 21 | Seize the Grey | 142,850 | – |
Series Social Dilemma | Social Dilemma | – | 18,723 |
Series Song of Lark 21 | Song of the Lark 21 | 65,123 | – |
Series Soul Beam | Soul Beam | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | – |
Series Spirit 20 | Phantom Ride | 50,400 | – |
Series Squared Straight | Squared Straight | – | – |
Series Storm Shooter | Storm Shooter | 1,576 | 2,864 |
Series Street Band | Street Band | – | – |
Series Sunny 18 | Solar Strike | – | – |
57 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 14,378 | – |
Series Sweet Sweet Annie 19 | In Due Time | 11,642 | 20,220 |
Series Swiss Minister | Swiss Minister | – | – |
Series Takeo Squared | Takeo Squared | – | – |
Series Tapitry 19 | Infinite Empire | 784 | 718 |
Series Tavasco Road | Tavasco Road | – | – |
Series Tell All 19 | Walk the Talk | – | 18,156 |
Series Tell the Duchess 19 | Duke of Love | 40,443 | 33,102 |
Series The Filly Four | The Filly Four | 2,150 | 27,131 |
Series The Royal Duet | The Royal Duet | – | – |
Series Thirteen Stripes | Thirteen Stripes | 545 | 3,850 |
Series Timeless Trick 20 | Interstellar | 12,000 | – |
Series Tizamagician | Tizamagician | 3,599 | 32,580 |
Series Tufnel | Tufnel | 530 | 47,830 |
Series Twirl Girl 21 | Twirl Girl 21 | 5,565 | – |
Series Two Trail Sioux 17 | Annahilate | – | – |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – |
Series Utalknboutpractice | Utalknboutpractice | – | – |
Series Vertical Threat | Vertical Threat | – | 5,484 |
Series Vow | Vow | 1,407 | 54,933 |
Series War Safe | War Safe | 30,191 | 15,308 |
Series Wayne O | Wayne O | – | 214 |
Series Who Runs the World | Who Runs the World | 55,255 | 24,305 |
Series Who'sbeeninmybed 19 | Micro Share | 3,142 | 57,038 |
Series Without Delay | Golden Quality | 3,800 | 15,200 |
Series Wonder Upon a Star 19 | Star Six Nine | – | 55,500 |
Series Yes This Time | Yes This Time | – | 56,433 |
Series You Make Luvin Fun 19 | Magical Ways | 25,052 | 42,863 |
Series Zestful | Zestful | – | – |
Totals | $2,502,264 | $1,949,857 |
________________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
58 |
Operating Expenses – Depreciation
For the twelve-month periods ended December 31, 2022, and December 31, 2021, the depreciation was $5,569,738 and $5,593,064, respectively, a decrease of $23,236. The decrease is minimal as both the quantity and the value of the overall assets remained relatively equal to the period ending December 31, 2021. This is primarily attributed to the Company acquiring an equivalent value of horses in both periods. The method of calculating depreciation remained unchanged during the current period.
The depreciation on a series-by-series basis as of December 31, 2022, and December 31, 2021 are as follows:
Depreciation | |||
Series-Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $– |
Series Adjust 20 | Jai Ho | 17,720 | – |
Series Amandrea | Amandrea | – | 20,492 |
Series Ambleside Park 19 | Lookwhogotlucky | 7,901 | 15,717 |
Series Amers | Amers | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | 19,500 |
Series Ari the Adventurer 19 | Kanthari | 102,638 | 79,185 |
Series Ashlees Empire 20 | Helicopter Money | 7,073 | – |
Series Athenian Beauty 19 | Quantum Theory | 2,098 | 15,000 |
Series Authentic | Authentic | 1,249,407 | 1,656,698 |
Series Awe Hush 19 | Can't Hush This | 37,258 | 66,000 |
Series Bajan Bashert | Bajan Bashert | 2,509 | – |
Series Balletic | Balletic | 157,500 | 61,815 |
Series Bella Chica | Bella Chica | 0 | 8,333 |
Series Big Mel | Big Mel | – | 132,540 |
Series Black Escort 19 | Halofied | 17,496 | 12,630 |
Series Bullion | Bullion | – | – |
Series Cable Boss | Cable Boss | 98,175 | 38,531 |
Series Cairo Kiss | Cairo Kiss | – | – |
Series Carrothers | Carrothers | 99,364 | 90,502 |
Series Cayala 19 | Provocateur | 72,081 | 82,000 |
Series Arch Support 20 | Captain Sparrow | 14,176 | – |
Series Chad Brown Bundle | Chad Brown Bundle | 211,208 | 45,671 |
Series Chasing the Moon 20 | Cuvier | – | – |
59 |
Series Classic Cut | Classic Cut | 84,000 | 33,194 |
Series Classofsixtythree 19 | Sixtythreecaliber | 41,667 | 41,667 |
Series Co Cola 19 | Search Engine | 111,563 | 77,105 |
Series Collusion Illusion | Collusion Illusion | 51,944 | 183,333 |
Series Consecrate 19 | Sacred Beauty | 1,269 | 10,932 |
Series Courtisane 19 | Tap the Gavel | 80,500 | 55,637 |
Series Daddy's Joy | Daddy's Joy | 5,338 | 15,998 |
Series Dancing Crane | Dancing Crane | 16,909 | 24,707 |
Series Daring Dancer 20 | Boppy | 15,750 | 4,856 |
Series De Mystique 17 | Dancing Destroyer | – | – |
Series Deep Cover | Deep Cover | 27,333 | 27,167 |
Series Demogorgon | Demogorgon | 30,000 | 5,484 |
Series Desire Street 19 | Always Hopeful | 28,560 | 18,196 |
Series Echo Warrior 19 | Hero Status | 56,700 | 44,811 |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 23,160 | – |
Series Enchante 21 | Simply Enchanting | 29,645 | – |
Series Elarose 21 | Secret Crush | 31,500 | – |
Series Escape Route | Escape Route | 14,133 | 14,133 |
Series Exonerated 19 | Above Suspicion | 28,700 | 23,575 |
Series Fenwick Hall 20 | Inspector | 21,963 | – |
Series Forever Rose | Forever Rose | 22,628 | – |
Series Flora Dora 20 | Spun Intended | 16,241 | – |
Series Frosted Oats | Frosted Oats | 34,167 | 29,698 |
Series Future Stars Stable | Future Stars Stable | 90,776 | 113,375 |
Series Gentleman Gerry | Gentleman Gerry | 23,148 | – |
Series Going to Vegas | Going to Vegas | 95,777 | 89,121 |
Series Got Stormy | Got Stormy | – | – |
Series Grand Traverse Bay 19 | Cornice Traverse | 45,161 | 36,085 |
Series Grand Traverse Bay 20 | Sun Valley Road | 13,125 | 3,776 |
Series Heaven Street | Heaven Street | 15,771 | – |
Series Kindle 21 | Kindle 21 | 15,458 | – |
Series Knarsdale 21 | Knarsdale 21 | 28,875 | – |
Series I'm a Looker 20 | Pioneer Prince | 49,097 | – |
Series Into Summer 19 | Malibu Mayhem | 16,439 | 21,928 |
60 |
Series Ishvana 21 | Ishvana 21 | 10,880 | – |
Series Jeanne's Speight 20 | Stay Fabulous | 22,094 | – |
Series Just Louise 19 | Forbidden Kingdom | 51,000 | 51,000 |
Series Keertana 18 | American Heiress | 5,552 | 107,950 |
Series Kiana's Love | Kiana's Love | – | – |
Series Kichiro | Kichiro | – | 931 |
Series Lane Way | Lane Way | 130,932 | 130,797 |
Series Latte Da 19 | Inalattetrouble | 10,101 | 32,280 |
Series Lazy Daisy | Lazy Daisy | – | – |
Series Le Relais 20 | Show Your Cards | 24,237 | – |
Series Lost Empire 19 | Laforgia | 43,185 | 76,500 |
Series Madarnas | Madarnas | – | – |
Series Madiera Wine | Madiera Wine | 1,063 | – |
Series Major Implications | Major Implications | – | – |
Series Man Among Men | Man Among Men | 49,200 | 49,200 |
Series Margaret Reay 19 | A Mo Reay | 46,437 | 54,667 |
Series Margarita Friday 19 | Straight No Chaser | 38,500 | 23,966 |
Series Martita Sangrita 17 | Carpe Vinum | 17,467 | 42,325 |
Series Mayan Milagra 19 | Tepeu | 36,667 | 25,259 |
Series Midnight Sweetie 19 | Dolce Notte | 21,029 | 24,600 |
Series Miss Puzzle | Miss Puzzle | – | 3,343 |
Series Miss Sakamoto | Miss Sakamoto | 52,500 | 36,424 |
Series Mo Mischief | Mo Mischief | – | 62,333 |
Series Mo Temptation | Mo Temptation | 22,327 | – |
Series Monomoy Girl | Monomoy Girl | – | – |
Series Moonbow 20 | Cumberland Falls | 10,320 | – |
Series Moonless Sky | Moonless Sky | – | – |
Series Motion Emotion (2) | Motion Emotion | – | – |
Series Mrs Whistler | Mrs Whistler | 28,000 | 19,352 |
Series My Fast One 20 | One Fast Dream | 19,833 | – |
Series Naismith | Naismith | 54,750 | 50,000 |
Series National Road | National Road | 33,833 | 13,329 |
61 |
Series New York Claiming Package | New York Claiming Package | – | – |
Series Night of Idiots | Night of Idiots | – | – |
Series Nileist | Nileist | – | – |
Series Noble Goddess | Noble Goddess | – | – |
Series Northern Smile 20 | Pep Rally | 23,790 | – |
Series NY Exacta | NY Exacta | 71,667 | 71,667 |
Series One Last Night 21 | One Last Night 21 | 17,994 | – |
Series Our Miss Jones 19 | Celebrity News | 21,000 | 14,458 |
Series Our Jenny B | Our Jenny B | 4,863 | – |
Series Palace Foal | Palace Foal | – | 4,769 |
Series Patsys Kim 21 | Lady Blitz | 44,559 | – |
Series Popular Demand | Popular Demand | – | 42,520 |
Series Power Up Paynter | Power Up Paynter | – | 18,548 |
Series Queen Amira 19 | Regal Rebel | 25,065 | 26,307 |
Series Race Hunter 19 | Chasing Time | 87,500 | 60,937 |
Series Rosie's Alibi | Rosie's Alibi | 218,750 | 86,442 |
Series Salute to America | Salute to America | 28,000 | 17,430 |
Series Sarrocchi 21 | Sarrocchi 21 | 29,142 | – |
Series Sauce On Side | Sauce On Side | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – |
Series Sigesmund | Sigesmund | – | – |
Series Silverpocketsfull 19 | Iron Works | 98,175 | 68,372 |
Series Smart Shopping 21 | Seize the Grey | 41,774 | – |
Series Social Dilemma | Social Dilemma | – | – |
Series Song of Lark 21 | Song of the Lark 21 | 15,916 | – |
Series Soul Beam | Soul Beam | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | 9,130 |
Series Spirit 20 | Phantom Ride | 23,240 | – |
Series Squared Straight | Squared Straight | – | 1,472 |
Series Storm Shooter | Storm Shooter | 23,387 | 60,000 |
Series Street Band | Street Band | – | – |
Series Sunny 18 | Solar Strike | – | 39,282 |
62 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 13,518 | – |
Series Sweet Sweet Annie 19 | In Due Time | 26,324 | 21,815 |
Series Swiss Minister | Swiss Minister | – | – |
Series Takeo Squared | Takeo Squared | – | – |
Series Tapitry 19 | Infinite Empire | 49,200 | 49,200 |
Series Tavasco Road | Tavasco Road | – | – |
Series Tell All 19 | Walk the Talk | 21,452 | 21,978 |
Series Tell the Duchess 19 | Duke of Love | 29,750 | 18,519 |
Series The Filly Four | The Filly Four | 59,136 | 516,868 |
Series The Royal Duet | The Royal Duet | 51,030 | – |
Series Thirteen Stripes | Thirteen Stripes | 33,333 | 32,228 |
Series Timeless Trick 20 | Interstellar | 13,500 | – |
Series Tizamagician | Tizamagician | 13,505 | 40,515 |
Series Tufnel | Tufnel | 54,600 | 12,762 |
Series Twirl Girl 21 | Twirl Girl 21 | 6,944 | – |
Series Two Trail Sioux 17 | Annahilate | – | 4,258 |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 3,482 |
Series Utalknboutpractice | Utalknboutpractice | – | – |
Series Vertical Threat | Vertical Threat | – | 18,701 |
Series Vow | Vow | 49,000 | 33,866 |
Series War Safe | War Safe | 31,500 | 17,107 |
Series Wayne O | Wayne O | – | 11,694 |
Series Who Runs the World | Who Runs the World | 107,100 | 42,034 |
Series Who'sbeeninmybed 19 | Micro Share | 80,325 | 55,728 |
Series Without Delay | Golden Quality | 27,500 | 16,833 |
Series Wonder Upon a Star 19 | Star Six Nine | 16,061 | 38,525 |
Series Yes This Time | Yes This Time | 33,333 | 33,692 |
Series You Make Luvin Fun 19 | Magical Ways | 84,000 | 58,278 |
Series Zestful | Zestful | – | – |
Totals | $5,569,738 | $5,593,064 |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
63 |
Other Expense – Loss on Horse Retirement
For the twelve-month periods ended December 31, 2022, and December 31, 2021, the loss on horse retirement was a gain of $147,376 and a loss of $677,233, respectively, an decrease of $824,609. The decrease is due to the timing and the change in remaining net asset value at the close out of the respective Series in the given period.
The loss on horse retirement on a series-by-series basis as of December 31, 2022, and December 31, 2021 are as follows:
Gain(Loss) on Horse | |||
Series-Series Name | Underlying Asset | 31-Dec-22 | 31-Dec-21 |
Series Action Bundle (1) | Action Bundle | $– | $– |
Series Adjust 20 | Jai Ho | – | – |
Series Amandrea | Amandrea | – | (42,083) |
Series Ambleside Park 19 | Lookwhogotlucky | (19,123) | – |
Series Amers | Amers | – | – |
Series Apple Down Under 19 | Howboutdemapples | – | (5,883) |
Series Ari the Adventurer 19 | Kanthari | – | – |
Series Ashlees Empire 20 | Helicopter Money | – | – |
Series Athenian Beauty 19 | Quantum Theory | 7,807 | – |
Series Authentic | Authentic | – | – |
Series Awe Hush 19 | Can't Hush This | (48,859) | – |
Series Bajan Bashert | Bajan Bashert | – | – |
Series Balletic | Balletic | – | – |
Series Bella Chica | Bella Chica | – | – |
Series Big Mel | Big Mel | – | (223,996) |
Series Black Escort 19 | Halofied | (19,875) | – |
Series Bullion | Bullion | – | – |
Series Cable Boss | Cable Boss | – | – |
Series Cairo Kiss | Cairo Kiss | – | – |
Series Carrothers | Carrothers | (121,014) | – |
Series Cayala 19 | Provocateur | 4,417 | – |
Series Arch Support 20 | Captain Sparrow | – | – |
Series Chad Brown Bundle | Chad Brown Bundle | – | – |
Series Chasing the Moon 20 | Cuvier | – | – |
Series Classic Cut | Classic Cut | – | – |
Series Classofsixtythree 19 | Sixtythreecaliber | – | – |
64 |
Series Co Cola 19 | Search Engine | – | – |
Series Collusion Illusion | Collusion Illusion | (219,056) | – |
Series Consecrate 19 | Sacred Beauty | (11,598) | – |
Series Courtisane 19 | Tap the Gavel | – | – |
Series Daddy's Joy | Daddy's Joy | – | – |
Series Dancing Crane | Dancing Crane | (12,984) | – |
Series Daring Dancer 20 | Boppy | – | – |
Series De Mystique 17 | Dancing Destroyer | – | – |
Series Deep Cover | Deep Cover | – | – |
Series Demogorgon | Demogorgon | – | – |
Series Desire Street 19 | Always Hopeful | – | – |
Series Echo Warrior 19 | Hero Status | – | – |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | (20,164) | – |
Series Enchante 21 | Simply Enchanting | – | – |
Series Elarose 21 | Secret Crush | – | – |
Series Escape Route | Escape Route | – | – |
Series Exonerated 19 | Above Suspicion | – | – |
Series Fenwick Hall 20 | Inspector | – | – |
Series Forever Rose | Forever Rose | – | – |
Series Flora Dora 20 | Spun Intended | – | – |
Series Frosted Oats | Frosted Oats | – | – |
Series Future Stars Stable | Future Stars Stable | 8,320 | 8,500 |
Series Gentleman Gerry | Gentleman Gerry | – | – |
Series Going to Vegas | Going to Vegas | 476,810 | – |
Series Got Stormy | Got Stormy | – | – |
Series Grand Traverse Bay 19 | Cornice Traverse | (58,099) | – |
Series Grand Traverse Bay 20 | Sun Valley Road | – | – |
Series Heaven Street | Heaven Street | – | – |
Series Kindle 21 | Kindle 21 | – | – |
Series Knarsdale 21 | Knarsdale 21 | – | – |
Series I'm a Looker 20 | Pioneer Prince | – | – |
Series Into Summer 19 | Malibu Mayhem | (57,183) | – |
Series Ishvana 21 | Ishvana 21 | – | – |
Series Jeanne's Speight 20 | Stay Fabulous | – | – |
65 |
Series Just Louise 19 | Forbidden Kingdom | – | – |
Series Keertana 18 | American Heiress | (5,659) | – |
Series Kiana's Love | Kiana's Love | – | – |
Series Kichiro | Kichiro | – | (4,528) |
Series Lane Way | Lane Way | – | – |
Series Latte Da 19 | Inalattetrouble | (26,305) | – |
Series Lazy Daisy | Lazy Daisy | – | 8,713 |
Series Le Relais 20 | Show Your Cards | 12,237 | – |
Series Lost Empire 19 | Laforgia | (86,015) | – |
Series Madarnas | Madarnas | – | – |
Series Madiera Wine | Madiera Wine | 1,063 | – |
Series Major Implications | Major Implications | – | – |
Series Man Among Men | Man Among Men | – | – |
Series Margaret Reay 19 | A Mo Reay | 82,337 | – |
Series Margarita Friday 19 | Straight No Chaser | – | – |
Series Martita Sangrita 17 | Carpe Vinum | 9,414 | – |
Series Mayan Milagra 19 | Tepeu | – | – |
Series Midnight Sweetie 19 | Dolce Notte | 37,560 | – |
Series Miss Puzzle | Miss Puzzle | – | 7,851 |
Series Miss Sakamoto | Miss Sakamoto | – | – |
Series Mo Mischief | Mo Mischief | – | (112,968) |
Series Mo Temptation | Mo Temptation | – | – |
Series Monomoy Girl | Monomoy Girl | – | – |
Series Moonbow 20 | Cumberland Falls | – | – |
Series Moonless Sky | Moonless Sky | – | – |
Series Motion Emotion (2) | Motion Emotion | – | – |
Series Mrs Whistler | Mrs Whistler | – | – |
Series My Fast One 20 | One Fast Dream | – | – |
Series Naismith | Naismith | – | – |
Series National Road | National Road | – | – |
Series New York Claiming Package | New York Claiming Package | – | – |
Series Night of Idiots | Night of Idiots | – | – |
66 |
Series Nileist | Nileist | – | – |
Series Noble Goddess | Noble Goddess | – | – |
Series Northern Smile 20 | Pep Rally | – | – |
Series NY Exacta | NY Exacta | – | – |
Series One Last Night 21 | One Last Night 21 | – | – |
Series Our Miss Jones 19 | Celebrity News | – | – |
Series Our Jenny B | Our Jenny B | – | – |
Series Palace Foal | Palace Foal | – | – |
Series Patsys Kim 21 | Lady Blitz | – | – |
Series Popular Demand | Popular Demand | – | (86,491) |
Series Power Up Paynter | Power Up Paynter | – | (9,785) |
Series Queen Amira 19 | Regal Rebel | (52,128) | – |
Series Race Hunter 19 | Chasing Time | – | – |
Series Rosie's Alibi | Rosie's Alibi | – | – |
Series Salute to America | Salute to America | – | – |
Series Sarrocchi 21 | Sarrocchi 21 | – | – |
Series Sauce On Side | Sauce On Side | – | – |
Series Shake It Up Baby | Shake It Up Baby | – | – |
Series Sigesmund | Sigesmund | – | – |
Series Silverpocketsfull 19 | Iron Works | – | – |
Series Smart Shopping 21 | Seize the Grey | – | – |
Series Social Dilemma | Social Dilemma | – | – |
Series Song of Lark 21 | Song of the Lark 21 | – | – |
Series Soul Beam | Soul Beam | – | – |
Series Speightstown Belle 19 | Ancient Royalty | – | 17,236 |
Series Spirit 20 | Phantom Ride | – | – |
Series Squared Straight | Squared Straight | – | (4,153) |
Series Storm Shooter | Storm Shooter | (35,946) | – |
Series Street Band | Street Band | – | – |
Series Sunny 18 | Solar Strike | – | (119,421) |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | (48,982) | – |
Series Sweet Sweet Annie 19 | In Due Time | 229,188 | – |
Series Swiss Minister | Swiss Minister | – | – |
Series Takeo Squared | Takeo Squared | – | – |
67 |
Series Tapitry 19 | Infinite Empire | – | – |
Series Tavasco Road | Tavasco Road | – | – |
Series Tell All 19 | Walk the Talk | (40,570) | – |
Series Tell the Duchess 19 | Duke of Love | – | – |
Series The Filly Four | The Filly Four | 262,463 | (29,870) |
Series The Royal Duet | The Royal Duet | – | – |
Series Thirteen Stripes | Thirteen Stripes | – | – |
Series Timeless Trick 20 | Interstellar | – | – |
Series Tizamagician | Tizamagician | 32,400 | – |
Series Tufnel | Tufnel | – | – |
Series Twirl Girl 21 | Twirl Girl 21 | – | – |
Series Two Trail Sioux 17 | Annahilate | – | (28,742) |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | (7,518) |
Series Utalknboutpractice | Utalknboutpractice | – | – |
Series Vertical Threat | Vertical Threat | – | 169,211 |
Series Vow | Vow | – | – |
Series War Safe | War Safe | – | – |
Series Wayne O | Wayne O | – | (213,306) |
Series Who Runs the World | Who Runs the World | – | – |
Series Who'sbeeninmybed 19 | Micro Share | – | – |
Series Without Delay | Golden Quality | (40,667) | – |
Series Wonder Upon a Star 19 | Star Six Nine | (92,414) | – |
Series Yes This Time | Yes This Time | – | – |
Series You Make Luvin Fun 19 | Magical Ways | – | – |
Series Zestful | Zestful | – | – |
Totals | $147,376 | $(677,233) |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
As a result, the Company’s aggregate net loss across all series for the twelve-month periods ended December 31, 2022, and December 31, 2021 was $8,494,334 and $10,308,528, respectively.
68 |
Liquidity and Capital Resources – For the Years Ended December 31, 2022 and 2021
During the years ended December 31, 2022 and 2021, the Company has relied on advances from founders, raising capital to fund its operations and the issuance of securities under Regulation A offerings, as well as under an intrastate permit and Regulation D offering as sources of capital. The funds raised supported the repayment of manager’s loans (advanced to obtain Underlying Assets), accrue management fees and set aside cash held by the manager as horse reserve accounts to cover certain horse expenses. Additionally, the Company acquired one Underlying Asset through a loan from a strategic vendor partner.
Of the horses that were part of an offering as of December 31, 2022 that have not yet started racing and thus potential revenue-generating activities, the Company anticipates they will begin racing as follows:
Series Name | Target Revenue Generation |
Series Jai Ho | Apr-23 |
Series Bajan Bashert | Jan-23 |
Series Cable Boss | Aug-23 |
Series Classic Cut | Mar-23 |
Series Boppy | Mar-23 |
Series Simply Enchanting | Oct-23 |
Series Secret Crush | Nov-23 |
Series Forever Rose | Nov-23 |
Series Kindle 21 | Oct-23 |
Series Knarsdale 21 | Aug-23 |
Series Pioneer Prince | Jan-23 |
Series Ishvana 21 | Nov-23 |
Series Mo Temptation | Aug-23 |
Series One Fast Dream | Jan-23 |
Series One Last Night 21 | Nov-23 |
Series Our Jenny B | Aug-23 |
Series-Palace Foal | N/A |
Series Lady Blitz | Aug-23 |
Series Sarrocchi 21 | Nov-23 |
Series Song of Lark 21 | Nov-23 |
Series The Royal Duet (1) | May-23 |
Series Tufnel | Mar-23 |
Series Twirl Girl 21 | Apr-24 |
Series Who Runs the World | Feb-23 |
(1) | The Series is comprised of two horses, one of which is expected to begin racing in May 2023, while the second one is not expected to race until July 2023. |
69 |
The Company anticipates such horses will begin racing and, thus, potentially generating revenue as early as the above dates, which should allow such Series to maintain an ongoing reserve for Operating Expenses without the need to raise additional capital. Should such Underlying Asset need more time than anticipated in training or fails to generate sufficient revenues as expected, the Manager may loan the Series money from time-to-time to cover its Operating Expenses. The Company has purchased insurance for such Underlying Assets.
The Company (if viewed as if it were a separate and distinct entity apart from its Series) will not have much, if any, need for cash reserves and, instead, each Series will have liquidity needs that are built into Operating Expense reserves and covered by future revenue-generating activities. Specifically, it is the intent of the Company to reserve Operating Expenses, including Upkeep Fees, at the outset of an offering sufficient to maintain the Underlying Asset without the need to raise additional capital for such Series. The Company intends to rely on revenue generated from such Underlying Asset to provide ongoing working capital needed to fund the Operating Expenses of each such Series thereafter. Further, in the event that a Series is not fully subscribed, or needs additional funding beyond the Operating Expense reserves, (i) the Manager and/or its affiliates may exercise their right to purchase interests in the Series on the same terms and conditions as the investors, (ii) if such Underlying Asset was originally acquired by the Company or an affiliate pursuant to a Profit Participation Convertible Promissory Note or similar instrument, such party may exercise its conversion rights, and/or (iii) the Series may obtain a loan from the Manager, affiliates or third parties to obtain sufficient working capital to operate the underlying asset.
During the next 12 months, the Company intends to fund its operations, including those of its Series with funding from a Regulation A offering campaign, loans from its manager and funds from revenue producing activities, if and when such can be realized. If the Company cannot secure additional short-term capital, it may cease operations. The financial statements and related notes thereto included in this Annual Report do not include any adjustments that might result from these uncertainties.
Horse Reserve Funds
During the twelve-month periods ended December 31, 2022, and December 31, 2021, the Company had a total of $4,226,464 and $3,668,322, respectively, in reserve funds held by the Manager for each series of an Underlying Asset as outlined below.
As of December 31, 2022, the Company’s positions of borrowings and amounts owed to it by the Manager are as follows:
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | Horse Reserves to Last Through |
Series Action Bundle (1) | $– | $– | $– | $– |
Series Adjust 20 | 12,438 | – | 12,438 | 45,016 |
Series Amandrea | – | – | – | |
Series Ambleside Park 19 | – | – | – | |
Series Amers | – | – | – | |
Series Apple Down Under 19 | – | – | – | |
Series Ari the Adventurer 19 | 22,438 | – | 22,438 | 45,016 |
Series Ashlees Empire 20 | 91,770 | – | 91,770 | 45,016 |
Series Athenian Beauty 19 | – | – | – | |
Series Authentic | (189,569) | – | (189,569) | 45,016 |
70 |
Series Awe Hush 19 | – | – | – | |
Series Bajan Bashert | 18,982 | (25,800) | (6,818) | 45,016 |
Series Balletic | 87,248 | – | 87,248 | 45,016 |
Series Bella Chica | – | – | – | |
Series Big Mel | – | – | – | |
Series Black Escort 19 | 11,542 | – | 11,542 | 45,016 |
Series Bullion | – | – | – | |
Series Cable Boss | 63,107 | – | 63,107 | 45,016 |
Series Cairo Kiss | – | – | – | |
Series Carrothers | 21,631 | – | 21,631 | 45,016 |
Series Cayala 19 | 31,124 | – | 31,124 | 45,016 |
Series Arch Support 20 | 7,715 | – | 7,715 | 45,016 |
Series Chad Brown Bundle | 189,967 | – | 189,967 | 45,016 |
Series Chasing the Moon 20 | – | – | – | |
Series Classic Cut | 99,394 | – | 99,394 | 45,016 |
Series Classofsixtythree 19 | 25,172 | – | 25,172 | 45,016 |
Series Co Cola 19 | 43,029 | – | 43,029 | 45,016 |
Series Collusion Illusion | – | – | – | |
Series Consecrate 19 | – | – | – | |
Series Courtisane 19 | 51,353 | – | 51,353 | 45,016 |
Series Daddy's Joy | – | – | – | |
Series Dancing Crane | (600) | – | (600) | 45,016 |
Series Daring Dancer 20 | 21,923 | – | 21,923 | 45,016 |
Series De Mystique 17 | – | – | – | |
Series Deep Cover | 1,880 | – | 1,880 | 45,016 |
Series Demogorgon | 4,134 | – | 4,134 | 45,016 |
Series Desire Street 19 | 26,621 | – | 26,621 | 45,016 |
Series Echo Warrior 19 | 42,004 | – | 42,004 | 45,016 |
Series Edge Racing Summer Fun | 92,512 | – | 92,512 | 45,016 |
Series Enchante 21 | 142,831 | (271,512) | (128,681) | 45,016 |
Series Elarose 21 | 157,696 | (112,046) | 45,649 | 45,016 |
Series Escape Route | (8,247) | – | (8,247) | 45,016 |
71 |
Series Exonerated 19 | 8,080 | – | 8,080 | 45,016 |
Series Fenwick Hall 20 | 65,134 | – | 65,134 | 45,016 |
Series Forever Rose | (18,468) | (118,142) | (136,610) | 45,016 |
Series Flora Dora 20 | 1,262 | – | 1,262 | 45,016 |
Series Frosted Oats | 16,733 | – | 16,733 | 45,016 |
Series Future Stars Stable | 103,891 | – | 103,891 | 45,016 |
Series Gentleman Gerry | (1,948) | – | (1,948) | 45,016 |
Series Going to Vegas | 550,138 | – | 550,138 | 45,016 |
Series Got Stormy | – | – | – | |
Series Grand Traverse Bay 19 | 64,741 | – | 64,741 | 45,016 |
Series Grand Traverse Bay 20 | 19,535 | 103 | 19,638 | 45,016 |
Series Heaven Street | 12,682 | – | 12,682 | 45,016 |
Series Kindle 21 | 102,460 | (271,250) | (168,790) | 45,016 |
Series Knarsdale 21 | (15,989) | (275,000) | (290,989) | 45,016 |
Series I'm a Looker 20 | 154,796 | – | 154,796 | 45,016 |
Series Into Summer 19 | – | – | – | |
Series Ishvana 21 | (15,282) | (125,000) | (140,282) | 45,016 |
Series Jeanne's Speight 20 | 96,414 | (794) | 95,620 | 45,016 |
Series Just Louise 19 | (3,896) | – | (3,896) | 45,016 |
Series Keertana 18 | – | – | – | |
Series Kiana's Love | – | – | – | |
Series Kichiro | – | – | – | |
Series Lane Way | 32,677 | – | 32,677 | 45,016 |
Series Latte Da 19 | – | – | – | |
Series Lazy Daisy | – | – | – | |
Series Le Relais 20 | – | – | – | |
Series Lost Empire 19 | – | – | – | |
Series Madarnas | – | – | – | |
Series Madiera Wine | 2,146 | – | 2,146 | 45,016 |
Series Major Implications | – | – | – | |
Series Man Among Men | 10,335 | – | 10,335 | 45,016 |
Series Margaret Reay 19 | 70,470 | – | 70,470 | 45,016 |
72 |
Series Margarita Friday 19 | 65,637 | – | 65,637 | 45,016 |
Series Martita Sangrita 17 | – | – | – | |
Series Mayan Milagra 19 | (4,467) | – | (4,467) | 45,016 |
Series Midnight Sweetie 19 | 37,483 | – | 37,483 | 45,016 |
Series Miss Puzzle | – | – | – | |
Series Miss Sakamoto | 35,662 | 46 | 35,708 | 45,016 |
Series Mo Mischief | – | – | – | |
Series Mo Temptation | 96,399 | – | 96,399 | 45,016 |
Series Monomoy Girl | – | – | – | |
Series Moonbow 20 | 89,716 | – | 89,716 | 45,016 |
Series Moonless Sky | – | – | – | |
Series Motion Emotion (2) | – | – | – | |
Series Mrs Whistler | 57,298 | 349 | 57,647 | 45,016 |
Series My Fast One 20 | 125,712 | – | 125,712 | 45,016 |
Series Naismith | (41,193) | – | (41,193) | 45,016 |
Series National Road | 2,500 | – | 2,500 | 45,016 |
Series New York Claiming Package | – | – | – | |
Series Night of Idiots | – | – | – | |
Series Nileist | – | – | – | |
Series Noble Goddess | – | – | – | |
Series Northern Smile 20 | (7,991) | – | (7,991) | 45,016 |
Series NY Exacta | (58,119) | – | (58,119) | 45,016 |
Series One Last Night 21 | 104,736 | (144,666) | (39,930) | 45,016 |
Series Our Miss Jones 19 | 25,280 | – | 25,280 | 45,016 |
Series Our Jenny B | 46,528 | (59,880) | (13,352) | 45,016 |
Series Palace Foal | (6,171) | – | (6,171) | 45,016 |
Series Patsys Kim 21 | 149,796 | (105,838) | 43,958 | 45,016 |
Series Popular Demand | – | – | – | |
Series Power Up Paynter | – | – | – | |
Series Queen Amira 19 | – | – | – | |
Series Race Hunter 19 | 25,082 | – | 25,082 | 45,016 |
Series Rosie's Alibi | 95,726 | – | 95,726 | 45,016 |
73 |
Series Salute to America | 46,947 | – | 46,947 | 45,016 |
Series Sarrocchi 21 | 183,394 | (59,619) | 123,774 | 45,016 |
Series Sauce On Side | – | – | – | |
Series Shake It Up Baby | – | – | – | |
Series Sigesmund | – | – | – | |
Series Silverpocketsfull 19 | 60,565 | – | 60,565 | 45,016 |
Series Smart Shopping 21 | 144,006 | – | 144,006 | 45,016 |
Series Social Dilemma | – | – | – | |
Series Song of Lark 21 | 95,883 | (46,375) | 49,507 | 45,016 |
Series Soul Beam | – | – | – | |
Series Speightstown Belle 19 | – | – | – | |
Series Spirit 20 | 70,575 | – | 70,575 | 45,016 |
Series Squared Straight | – | – | – | |
Series Storm Shooter | – | – | – | |
Series Street Band | – | – | – | |
Series Sunny 18 | – | – | – | |
Series Sunsanddrinkinhand | 666 | – | 666 | 45,016 |
Series Sweet Sweet Annie 19 | (4,876) | – | (4,876) | 45,016 |
Series Swiss Minister | – | – | – | |
Series Takeo Squared | – | – | – | |
Series Tapitry 19 | 10,224 | – | 10,224 | 45,016 |
Series Tavasco Road | – | – | – | |
Series Tell All 19 | (600) | – | (600) | 45,016 |
Series Tell the Duchess 19 | 39,504 | – | 39,504 | 45,016 |
Series The Filly Four | 32,677 | – | 32,677 | 45,016 |
Series The Royal Duet | (2,062) | (541,331) | (543,393) | 45,016 |
Series Thirteen Stripes | (13,938) | – | (13,938) | 45,016 |
Series Timeless Trick 20 | (3,280) | – | (3,280) | 45,016 |
Series Tizamagician | 13,911 | – | 13,911 | 45,016 |
Series Tufnel | 59,914 | – | 59,914 | 45,016 |
Series Twirl Girl 21 | 47,677 | (87,165) | (39,488) | 45,016 |
Series Two Trail Sioux 17 | – | – | – |
74 |
Series Two Trail Sioux 17K | – | – | – | |
Series Utalknboutpractice | – | – | – | |
Series Vertical Threat | – | – | – | |
Series Vow | 63,922 | – | 63,922 | 45,016 |
Series War Safe | 62,106 | – | 62,106 | 45,016 |
Series Wayne O | – | – | – | |
Series Who Runs the World | 70,211 | – | 70,211 | 45,016 |
Series Who'sbeeninmybed 19 | 48,528 | – | 48,528 | 45,016 |
Series Without Delay | (2,400) | – | (2,400) | 45,016 |
Series Wonder Upon a Star 19 | – | – | – | |
Series Yes This Time | (7,183) | – | (7,183) | 45,016 |
Series You Make Luvin Fun 19 | 46,476 | – | 46,476 | 45,016 |
Series Zestful | – | – | – | |
Total | $4,226,464 | $(2,243,920) | $1,982,544 |
____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
The cash reserves for Operating Expenses, including Upkeep Fees, for each Series are estimated to last through the time period set forth in the table above. The purchase price of such Underlying Assets typically includes such reserves for Operating Expenses through at least the time period set forth in the table above. In the Offerings, it is the intent of the Company to reserve Operating Expenses, including Upkeep Fees, at the outset of an offering sufficient to maintain the Underlying Asset without the need to raise additional capital for such series. The Company intends to rely on revenue generated from such Underlying Asset to provide ongoing working capital needed to fund the Operating Expenses of each such Series thereafter.
Series Interests
As of December 31, 2022, the Company received a total of $38,525,215 in exchange for series interests in various Underlying Assets (See our financial statements and “Note 6 – Members’ Equity/(Deficit)” for more detail):
Series Name | Underlying Asset | Units Offered | Units Tendered | Subscription Amount |
Series Action Bundle (1) | Action Bundle | 10,000 | 10,000 | 310,000 |
Series Adjust 20 | Jai Ho | 10 | 10 | 135,000 |
Series Amandrea | Amandrea | 550 | 550 | 162,250 |
Series Ambleside Park 19 | Lookwhogotlucky | 410 | 410 | 84,050 |
Series Amers | Amers | 75 | 75 | 10,500 |
Series Apple Down Under 19 | Howboutdemapples | 600 | 600 | 103,800 |
75 |
Series Ari the Adventurer 19 | Kanthari | 5,100 | 5,100 | 433,500 |
Series Ashlees Empire 20 | Helicopter Money | 3,000 | 3,000 | 201,000 |
Series Athenian Beauty 19 | Quantum Theory | 1,800 | 1,800 | 84,600 |
Series Authentic | Authentic | 12,500 | 12,500 | 2,575,000 |
Series Awe Hush 19 | Can't Hush This | 1,800 | 1,800 | 295,200 |
Series Bajan Bashert | Bajan Bashert | 16 | 13 | 130,000 |
Series Balletic | Balletic | 10,000 | 10,000 | 800,000 |
Series Bella Chica | Bella Chica | 100 | 100 | 38,000 |
Series Big Mel | Big Mel | 6,000 | 6,000 | 726,000 |
Series Black Escort 19 | Halofied | 20 | 20 | 100,000 |
Series Bullion | Bullion | 25 | 25 | 11,750 |
Series Cable Boss | Cable Boss | 5,100 | 5,100 | 494,700 |
Series Cairo Kiss | Cairo Kiss | 80 | 80 | 44,400 |
Series Carrothers | Carrothers | 5,100 | 5,100 | 515,100 |
Series Cayala 19 | Provocateur | 4,100 | 4,100 | 373,100 |
Series Arch Support 20 | Captain Sparrow | 10 | 10 | 112,000 |
Series Chad Brown Bundle | Chad Brown Bundle | 5,000 | 5,000 | 1,170,000 |
Series Chasing the Moon 20 | Cuvier | 1,250 | – | – |
Series Classic Cut | Classic Cut | 10,000 | 10,000 | 510,000 |
Series Classofsixtythree 19 | Sixtythreecaliber | 1,000 | 1,000 | 193,000 |
Series Co Cola 19 | Search Engine | 5,100 | 5,100 | 540,600 |
Series Collusion Illusion | Collusion Illusion | 25,000 | 25,000 | 750,000 |
Series Consecrate 19 | Sacred Beauty | 410 | 410 | 64,370 |
Series Courtisane 19 | Tap the Gavel | 10,000 | 10,000 | 490,000 |
Series Daddy's Joy | Daddy's Joy | 600 | 600 | 108,000 |
Series Dancing Crane | Dancing Crane | 20 | 20 | 122,000 |
Series Daring Dancer 20 | Boppy | 750 | 750 | 101,250 |
Series De Mystique 17 | Dancing Destroyer | 250 | 250 | 35,000 |
Series Deep Cover | Deep Cover | 800 | 800 | 176,000 |
Series Demogorgon | Demogorgon | 20 | 20 | 128,000 |
Series Desire Street 19 | Always Hopeful | 1,020 | 1,020 | 205,020 |
Series Echo Warrior 19 | Hero Status | 6,000 | 6,000 | 348,000 |
76 |
Series Edge Racing Summer Fun | Edge Racing Summer Fun-d | 50 | 50 | 250,000 |
Series Enchante 21 | Simply Enchanting | 6,000 | 2,461 | 243,639 |
Series Elarose 21 | Secret Crush | 10,000 | 7,741 | 495,424 |
Series Escape Route | Escape Route | 10 | 10 | 62,952 |
Series Exonerated 19 | Above Suspicion | 820 | 820 | 138,580 |
Series Fenwick Hall 20 | Inspector | 1,200 | 1,200 | 242,400 |
Series Forever Rose | Forever Rose | 1,250 | – | – |
Series Flora Dora 20 | Spun Intended | 10 | 10 | 100,000 |
Series Frosted Oats | Frosted Oats | 4,100 | 4,100 | 172,200 |
Series Future Stars Stable | Future Stars Stable | 10,000 | 10,000 | 500,000 |
Series Gentleman Gerry | Gentleman Gerry | 20 | 20 | 155,000 |
Series Going to Vegas | Going to Vegas | 5,100 | 5,100 | 438,600 |
Series Got Stormy | Got Stormy | 5,100 | 5,100 | 229,500 |
Series Grand Traverse Bay 19 | Cornice Traverse | 750 | 750 | 335,250 |
Series Grand Traverse Bay 20 | Sun Valley Road | 750 | 751 | 90,871 |
Series Heaven Street | Heaven Street | 20 | 20 | 150,000 |
Series Kindle 21 | Kindle 21 | 5,500 | – | – |
Series Knarsdale 21 | Knarsdale 21 | 5,000 | – | – |
Series I'm a Looker 20 | Pioneer Prince | 4,000 | 4,000 | 580,000 |
Series Into Summer 19 | Malibu Mayhem | 650 | 650 | 250,900 |
Series Ishvana 21 | Ishvana 21 | 2,500 | – | – |
Series Jeanne's Speight 20 | Stay Fabulous | 2,500 | 2,492 | 309,008 |
Series Just Louise 19 | Forbidden Kingdom | 1,020 | 1,020 | 233,580 |
Series Keertana 18 | American Heiress | 5,100 | 5,100 | 510,000 |
Series Kiana's Love | Kiana's Love | 200 | 200 | 24,000 |
Series Kichiro | Kichiro | 200 | 200 | 26,000 |
Series Lane Way | Lane Way | 6,000 | 6,000 | 540,000 |
Series Latte Da 19 | Inalattetrouble | 4,100 | 4,100 | 143,500 |
Series Lazy Daisy | Lazy Daisy | 1,250 | 1,250 | 143,750 |
Series Le Relais 20 | Show Your Cards | 3,000 | 3,000 | 495,000 |
Series Lost Empire 19 | Laforgia | 10,200 | 10,200 | 357,000 |
Series Madarnas | Madarnas | 50 | 50 | 17,500 |
Series Madiera Wine | Madiera Wine | 20 | 20 | 50,000 |
Series Major Implications | Major Implications | 20 | 20 | 4,600 |
77 |
Series Man Among Men | Man Among Men | 820 | 820 | 223,860 |
Series Margaret Reay 19 | A Mo Reay | 820 | 820 | 246,820 |
Series Margarita Friday 19 | Straight No Chaser | 2,000 | 2,000 | 332,000 |
Series Martita Sangrita 17 | Carpe Vinum | 600 | 600 | 192,000 |
Series Mayan Milagra 19 | Tepeu | 20 | 20 | 170,000 |
Series Midnight Sweetie 19 | Dolce Notte | 820 | 820 | 121,360 |
Series Miss Puzzle | Miss Puzzle | 125 | 125 | 31,250 |
Series Miss Sakamoto | Miss Sakamoto | 6,000 | 6,001 | 324,054 |
Series Mo Mischief | Mo Mischief | 5,100 | 5,100 | 382,500 |
Series Mo Temptation | Mo Temptation | 3,500 | 3,500 | 304,500 |
Series Monomoy Girl | Monomoy Girl | 10,200 | 10,200 | 469,200 |
Series Moonbow 20 | Cumberland Falls | 2,500 | 2,500 | 215,000 |
Series Moonless Sky | Moonless Sky | 200 | 200 | 22,000 |
Series Motion Emotion (2) | Motion Emotion | 1,020 | 1,020 | 85,680 |
Series Mrs Whistler | Mrs Whistler | 2,000 | 2,003 | 274,411 |
Series My Fast One 20 | One Fast Dream | 2,000 | 2,000 | 330,000 |
Series Naismith | Naismith | 2,000 | 2,000 | 304,000 |
Series National Road | National Road | 20 | 20 | 140,000 |
Series New York Claiming Package | New York Claiming Package | 510 | 510 | 71,400 |
Series Night of Idiots | Night of Idiots | 80 | 80 | 20,000 |
Series Nileist | Nileist | 45 | 45 | 23,850 |
Series Noble Goddess | Noble Goddess | 300 | 300 | 33,000 |
Series Northern Smile 20 | Pep Rally | 20 | 20 | 140,000 |
Series NY Exacta | NY Exacta | 2,000 | 2,000 | 456,000 |
Series One Last Night 21 | One Last Night 21 | 3,000 | 1,348 | 152,324 |
Series Our Miss Jones 19 | Celebrity News | 1,200 | 1,200 | 187,200 |
Series Our Jenny B | Our Jenny B | 20 | 9 | 54,000 |
Series Palace Foal | Palace Foal | 510 | – | – |
Series Patsys Kim 21 | Lady Blitz | 5,000 | 3,973 | 528,409 |
Series Popular Demand | Popular Demand | 1,020 | 1,020 | 248,880 |
Series Power Up Paynter | Power Up Paynter | 600 | 600 | 114,000 |
Series Queen Amira 19 | Regal Rebel | 2,000 | 2,000 | 330,000 |
78 |
Series Race Hunter 19 | Chasing Time | 10,000 | 10,000 | 520,000 |
Series Rosie's Alibi | Rosie's Alibi | 10,000 | 10,000 | 1,050,000 |
Series Salute to America | Salute to America | 1,000 | 1,000 | 273,000 |
Series Sarrocchi 21 | Sarrocchi 21 | 5,000 | 4,399 | 563,072 |
Series Sauce On Side | Sauce On Side | 125 | 125 | 30,000 |
Series Shake It Up Baby | Shake It Up Baby | 250 | 250 | 32,500 |
Series Sigesmund | Sigesmund | 200 | 200 | 20,000 |
Series Silverpocketsfull 19 | Iron Works | 5,100 | 5,100 | 453,900 |
Series Smart Shopping 21 | Seize the Grey | 5,000 | 5,000 | 635,000 |
Series Social Dilemma | Social Dilemma | 510 | 510 | 85,170 |
Series Song of Lark 21 | Song of the Lark 21 | 2,550 | 2,113 | 289,481 |
Series Soul Beam | Soul Beam | 65 | 65 | 39,650 |
Series Speightstown Belle 19 | Ancient Royalty | 900 | 900 | 125,100 |
Series Spirit 20 | Phantom Ride | 3,000 | 3,000 | 252,000 |
Series Squared Straight | Squared Straight | 150 | 150 | 40,500 |
Series Storm Shooter | Storm Shooter | 2,000 | 2,000 | 324,000 |
Series Street Band | Street Band | 50 | 50 | 61,500 |
Series Sunny 18 | Solar Strike | 6,000 | 6,000 | 390,000 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 20 | 20 | 100,000 |
Series Sweet Sweet Annie 19 | In Due Time | 20 | 20 | 150,000 |
Series Swiss Minister | Swiss Minister | 50 | 50 | 14,000 |
Series Takeo Squared | Takeo Squared | 100 | 100 | 27,000 |
Series Tapitry 19 | Infinite Empire | 820 | 820 | 223,860 |
Series Tavasco Road | Tavasco Road | 80 | 80 | 18,400 |
Series Tell All 19 | Walk the Talk | 12 | 12 | 126,000 |
Series Tell the Duchess 19 | Duke of Love | 2,000 | 2,000 | 284,000 |
Series The Filly Four | The Filly Four | 8,000 | 8,000 | 1,440,000 |
Series The Royal Duet | The Royal Duet | 5,100 | – | – |
Series Thirteen Stripes | Thirteen Stripes | 1,000 | 1,000 | 229,000 |
Series Timeless Trick 20 | Interstellar | 12 | 12 | 93,000 |
Series Tizamagician | Tizamagician | 600 | 600 | 192,000 |
Series Tufnel | Tufnel | 5,200 | 5,200 | 322,400 |
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Series Twirl Girl 21 | Twirl Girl 21 | 20 | 7 | 52,500 |
Series Two Trail Sioux 17 | Annahilate | 450 | 450 | 135,000 |
Series Two Trail Sioux 17K | Two Trail Sioux 17K | 1 | 1 | 29,720 |
Series Utalknboutpractice | Utalknboutpractice | 100 | 100 | 30,000 |
Series Vertical Threat | Vertical Threat | 600 | 600 | 126,000 |
Series Vow | Vow | 2,000 | 2,000 | 358,000 |
Series War Safe | War Safe | 2,000 | 2,000 | 292,000 |
Series Wayne O | Wayne O | 6,000 | 6,000 | 570,000 |
Series Who Runs the World | Who Runs the World | 5,100 | 5,100 | 530,400 |
Series Who'sbeeninmybed 19 | Micro Share | 5,100 | 5,100 | 377,400 |
Series Without Delay | Golden Quality | 20 | 20 | 140,000 |
Series Wonder Upon a Star 19 | Star Six Nine | 10,000 | 10,000 | 370,000 |
Series Yes This Time | Yes This Time | 10 | 10 | 129,520 |
Series You Make Luvin Fun 19 | Magical Ways | 6,000 | 6,000 | 450,000 |
Series Zestful | Zestful | 100 | 100 | 32,000 |
Totals | 398,571 | 367,916 | $38,525,215 |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
Advances from Manager – For the Years Ended December 31, 2022 and 2021
To fund its organizational and start-up activities as well as to advance funds on behalf of a series to purchase horse assets, the Manager has covered the expenses and costs of the Company and its series thus far on a non-interest-bearing extension of revolving credit. The Company will evaluate when is best to repay the Manager depending on operations and fundraising ability. In general, the Company will repay the Manager for funds extended to acquire horse assets from the series subscription proceeds (less the applicable management fee), as they are received.
Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations.
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In the table below, the Company outlines the positions of borrowings and amounts owed to it by the Manager as of December 31, 2022:
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series |
Series Action Bundle (1) | $– | $– | $– |
Series Adjust 20 | 12,438 | – | 12,438 |
Series Amandrea | – | – | – |
Series Ambleside Park 19 | – | – | – |
Series Amers | – | – | – |
Series Apple Down Under 19 | – | – | – |
Series Ari the Adventurer 19 | 22,438 | – | 22,438 |
Series Ashlees Empire 20 | 91,770 | – | 91,770 |
Series Athenian Beauty 19 | – | – | – |
Series Authentic | (189,569) | – | (189,569) |
Series Awe Hush 19 | – | – | – |
Series Bajan Bashert | 18,982 | (25,800) | (6,818) |
Series Balletic | 87,248 | – | 87,248 |
Series Bella Chica | – | – | – |
Series Big Mel | – | – | – |
Series Black Escort 19 | 11,542 | – | 11,542 |
Series Bullion | – | – | – |
Series Cable Boss | 63,107 | – | 63,107 |
Series Cairo Kiss | – | – | – |
Series Carrothers | 21,631 | – | 21,631 |
Series Cayala 19 | 31,124 | – | 31,124 |
Series Arch Support 20 | 7,715 | – | 7,715 |
Series Chad Brown Bundle | 189,967 | – | 189,967 |
Series Chasing the Moon 20 | – | – | – |
Series Classic Cut | 99,394 | – | 99,394 |
Series Classofsixtythree 19 | 25,172 | – | 25,172 |
Series Co Cola 19 | 43,029 | – | 43,029 |
Series Collusion Illusion | – | – | – |
Series Consecrate 19 | – | – | – |
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Series Courtisane 19 | 51,353 | – | 51,353 |
Series Daddy's Joy | – | – | – |
Series Dancing Crane | (600) | – | (600) |
Series Daring Dancer 20 | 21,923 | – | 21,923 |
Series De Mystique 17 | – | – | – |
Series Deep Cover | 1,880 | – | 1,880 |
Series Demogorgon | 4,134 | – | 4,134 |
Series Desire Street 19 | 26,621 | – | 26,621 |
Series Echo Warrior 19 | 42,004 | – | 42,004 |
Series Edge Racing Summer Fun | 92,512 | – | 92,512 |
Series Enchante 21 | 142,831 | (271,512) | (128,681) |
Series Elarose 21 | 157,696 | (112,046) | 45,649 |
Series Escape Route | (8,247) | – | (8,247) |
Series Exonerated 19 | 8,080 | – | 8,080 |
Series Fenwick Hall 20 | 65,134 | – | 65,134 |
Series Forever Rose | (18,468) | (118,142) | (136,610) |
Series Flora Dora 20 | 1,262 | – | 1,262 |
Series Frosted Oats | 16,733 | – | 16,733 |
Series Future Stars Stable | 103,891 | – | 103,891 |
Series Gentleman Gerry | (1,948) | – | (1,948 |
Series Going to Vegas | 550,138 | – | 550,138 |
Series Got Stormy | – | – | – |
Series Grand Traverse Bay 19 | 64,741 | – | 64,741 |
Series Grand Traverse Bay 20 | 19,535 | 103 | 19,638 |
Series Heaven Street | 12,682 | – | 12,682 |
Series Kindle 21 | 102,460 | (271,250) | (168,790) |
Series Knarsdale 21 | (15,989) | (275,000) | (290,989) |
Series I'm a Looker 20 | 154,796 | – | 154,796 |
Series Into Summer 19 | – | – | – |
Series Ishvana 21 | (15,282) | (125,000) | (140,282) |
Series Jeanne's Speight 20 | 96,414 | (794) | 95,620 |
Series Just Louise 19 | (3,896) | – | (3,896) |
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Series Keertana 18 | – | – | – |
Series Kiana's Love | – | – | – |
Series Kichiro | – | – | – |
Series Lane Way | 32,677 | – | 32,677 |
Series Latte Da 19 | – | – | – |
Series Lazy Daisy | – | – | – |
Series Le Relais 20 | – | – | – |
Series Lost Empire 19 | – | – | – |
Series Madarnas | – | – | – |
Series Madiera Wine | 2,146 | – | 2,146 |
Series Major Implications | – | – | – |
Series Man Among Men | 10,335 | – | 10,335 |
Series Margaret Reay 19 | 70,470 | – | 70,470 |
Series Margarita Friday 19 | 65,637 | – | 65,637 |
Series Martita Sangrita 17 | – | – | – |
Series Mayan Milagra 19 | (4,467) | – | (4,467) |
Series Midnight Sweetie 19 | 37,483 | – | 37,483 |
Series Miss Puzzle | – | – | – |
Series Miss Sakamoto | 35,662 | 46 | 35,708 |
Series Mo Mischief | – | – | – |
Series Mo Temptation | 96,399 | – | 96,399 |
Series Monomoy Girl | – | – | – |
Series Moonbow 20 | 89,716 | – | 89,716 |
Series Moonless Sky | – | – | – |
Series Motion Emotion (2) | – | – | – |
Series Mrs Whistler | 57,298 | 349 | 57,647 |
Series My Fast One 20 | 125,712 | – | 125,712 |
Series Naismith | (41,193) | – | (41,193) |
Series National Road | 2,500 | – | 2,500 |
Series New York Claiming Package | – | – | – |
Series Night of Idiots | – | – | – |
Series Nileist | – | – | – |
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Series Noble Goddess | – | – | – |
Series Northern Smile 20 | (7,991) | – | (7,991) |
Series NY Exacta | (58,119) | – | (58,119) |
Series One Last Night 21 | 104,736 | (144,666) | (39,930) |
Series Our Miss Jones 19 | 25,280 | – | 25,280 |
Series Our Jenny B | 46,528 | (59,880) | (13,352) |
Series Palace Foal | (6,171) | – | (6,171) |
Series Patsys Kim 21 | 149,796 | (105,838) | 43,958 |
Series Popular Demand | – | – | – |
Series Power Up Paynter | – | – | – |
Series Queen Amira 19 | – | – | – |
Series Race Hunter 19 | 25,082 | – | 25,082 |
Series Rosie's Alibi | 95,726 | – | 95,726 |
Series Salute to America | 46,947 | – | 46,947 |
Series Sarrocchi 21 | 183,394 | (59,619) | 123,774 |
Series Sauce On Side | – | – | – |
Series Shake It Up Baby | – | – | – |
Series Sigesmund | – | – | – |
Series Silverpocketsfull 19 | 60,565 | – | 60,565 |
Series Smart Shopping 21 | 144,006 | – | 144,006 |
Series Social Dilemma | – | – | – |
Series Song of Lark 21 | 95,883 | (46,375) | 49,507 |
Series Soul Beam | – | – | – |
Series Speightstown Belle 19 | – | – | – |
Series Spirit 20 | 70,575 | – | 70,575 |
Series Squared Straight | – | – | – |
Series Storm Shooter | – | – | – |
Series Street Band | – | – | – |
Series Sunny 18 | – | – | – |
Series Sunsanddrinkinhand | 666 | – | 666 |
Series Sweet Sweet Annie 19 | (4,876) | – | (4,876) |
Series Swiss Minister | – | – | – |
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Series Takeo Squared | – | – | – |
Series Tapitry 19 | 10,224 | – | 10,224 |
Series Tavasco Road | – | – | – |
Series Tell All 19 | (600) | – | (600) |
Series Tell the Duchess 19 | 39,504 | – | 39,504 |
Series The Filly Four | 32,677 | – | 32,677 |
Series The Royal Duet | (2,062) | (541,331) | (543,393) |
Series Thirteen Stripes | (13,938) | – | (13,938) |
Series Timeless Trick 20 | (3,280) | – | (3,280) |
Series Tizamagician | 13,911 | – | 13,911 |
Series Tufnel | 59,914 | – | 59,914 |
Series Twirl Girl 21 | 47,677 | (87,165) | (39,488) |
Series Two Trail Sioux 17 | – | – | – |
Series Two Trail Sioux 17K | – | – | – |
Series Utalknboutpractice | – | – | – |
Series Vertical Threat | – | – | – |
Series Vow | 63,922 | – | 63,922 |
Series War Safe | 62,106 | – | 62,106 |
Series Wayne O | – | – | – |
Series Who Runs the World | 70,211 | – | 70,211 |
Series Who'sbeeninmybed 19 | 48,528 | – | 48,528 |
Series Without Delay | (2,400) | – | (2,400) |
Series Wonder Upon a Star 19 | – | – | – |
Series Yes This Time | (7,183) | – | (7,183) |
Series You Make Luvin Fun 19 | 46,476 | – | 46,476 |
Series Zestful | – | – | – |
Total | $4,226,464 | $(2,243,920) | $1,982,544 |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. |
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Related Party Transactions – For the Years Ended December 31, 2022 and 2021
The Company’s Manager has advanced funds to and holds cash reserves on behalf of various of the Company’s series funds. See Note 4, Note 5, and Note 7 to Financial Statements as of December 31, 2022 for further discussions. Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations.
In order to fund the Company’s activities as well as to advance funds on behalf of a Series in order to acquire an Underlying Asset prior to establishing and issuing securities in the Series for holding such Underlying Asset, the Company has borrowed a total of $34,842,485 as of December 31, 2022(*), from the Manager in the form of profit participation convertible promissory notes as follows:
Series Name | Principal Borrowed from Manager (3) |
Series Action Bundle (1) | $263,500 |
Series Adjust 20 | 115,706 |
Series Amandrea | 137,500 |
Series Ambleside Park 19 | 71,443 |
Series Amers | 8,925 |
Series Apple Down Under 19 | 88,230 |
Series Ari the Adventurer 19 | 368,475 |
Series Ashlees Empire 20 | 160,800 |
Series Athenian Beauty 19 | 71,910 |
Series Authentic | 2,188,750 |
Series Awe Hush 19 | 250,920 |
Series Bajan Bashert | 137,600 |
Series Balletic | 680,000 |
Series Bella Chica | 32,300 |
Series Big Mel | 618,000 |
Series Black Escort 19 | 88,200 |
Series Bullion | 6,000 |
Series Cable Boss | 420,495 |
Series Cairo Kiss | 37,740 |
Series Carrothers | 437,835 |
Series Cayala 19 | 317,135 |
Series Arch Support 20 | 96,565 |
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Series Chad Brown Bundle | 994,500 |
Series Chasing the Moon 20 | 160,000 |
Series Classic Cut | 433,500 |
Series Classofsixtythree 19 | 164,050 |
Series Co Cola 19 | 459,510 |
Series Collusion Illusion | 637,500 |
Series Consecrate 19 | 54,715 |
Series Courtisane 19 | 416,500 |
Series Daddy's Joy | 91,800 |
Series Dancing Crane | 103,520 |
Series Daring Dancer 20 | 86,063 |
Series De Mystique 17 | 29,750 |
Series Deep Cover | 149,600 |
Series Demogorgon | 108,340 |
Series Desire Street 19 | 174,267 |
Series Echo Warrior 19 | 295,800 |
Series Edge Racing Summer Fun | 225,000 |
Series Enchante 21 | 460,320 |
Series Elarose 21 | 496,000 |
Series Escape Route | 52,560 |
Series Exonerated 19 | 117,793 |
Series Fenwick Hall 20 | 193,920 |
Series Forever Rose | 187,000 |
Series Flora Dora 20 | 86,219 |
Series Frosted Oats | 146,370 |
Series Future Stars Stable | 425,000 |
Series Gentleman Gerry | 135,000 |
Series Going to Vegas | 372,810 |
Series Got Stormy | 195,075 |
Series Grand Traverse Bay 19 | 284,963 |
Series Grand Traverse Bay 20 | 77,138 |
Series Heaven Street | 130,000 |
Series Kindle 21 | 302,610 |
Series Knarsdale 21 | – |
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Series I'm a Looker 20 | 464,000 |
Series Into Summer 19 | 213,265 |
Series Ishvana 21 | – |
Series Jeanne's Speight 20 | 248,000 |
Series Just Louise 19 | 198,543 |
Series Keertana 18 | 433,500 |
Series Kiana's Love | 20,400 |
Series Kichiro | 22,100 |
Series Lane Way | 459,000 |
Series Latte Da 19 | 121,975 |
Series Lazy Daisy | 121,250 |
Series Le Relais 20 | 396,000 |
Series Lost Empire 19 | 303,450 |
Series Madarnas | 14,850 |
Series Madiera Wine | 42,510 |
Series Major Implications | 3,900 |
Series Man Among Men | 190,281 |
Series Margaret Reay 19 | 209,797 |
Series Margarita Friday 19 | 282,200 |
Series Martita Sangrita 17 | 163,200 |
Series Mayan Milagra 19 | 146,920 |
Series Midnight Sweetie 19 | 103,156 |
Series Miss Puzzle | 26,563 |
Series Miss Sakamoto | 275,400 |
Series Mo Mischief | 326,400 |
Series Mo Temptation | 243,600 |
Series Monomoy Girl | 398,820 |
Series Moonbow 20 | 172,000 |
Series Moonless Sky | 18,700 |
Series Motion Emotion (2) | 72,828 |
Series Mrs Whistler | 232,900 |
Series My Fast One 20 | 264,000 |
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Series Naismith | 258,400 |
Series National Road | 120,000 |
Series New York Claiming Package | 64,260 |
Series Night of Idiots | 16,960 |
Series Nileist | 20,250 |
Series Noble Goddess | 27,900 |
Series Northern Smile 20 | 122,000 |
Series NY Exacta | 387,600 |
Series One Last Night 21 | 262,710 |
Series Our Miss Jones 19 | 159,120 |
Series Our Jenny B | 108,880 |
Series Palace Foal (**) | 52,020 |
Series Patsys Kim 21 | 515,350 |
Series Popular Demand | 212,160 |
Series Power Up Paynter | 96,600 |
Series Queen Amira 19 | 280,500 |
Series Race Hunter 19 | 442,000 |
Series Rosie's Alibi | 892,500 |
Series Salute to America | 232,050 |
Series Sarrocchi 21 | 496,000 |
Series Sauce On Side | 25,500 |
Series Shake It Up Baby | 27,625 |
Series Sigesmund | 17,000 |
Series Silverpocketsfull 19 | 385,815 |
Series Smart Shopping 21 | 492,100 |
Series Social Dilemma | 72,395 |
Series Song of Lark 21 | 270,759 |
Series Soul Beam | 33,703 |
Series Speightstown Belle 19 | 106,335 |
Series Spirit 20 | 201,600 |
Series Squared Straight | 34,425 |
Series Storm Shooter | 276,000 |
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Series Street Band | 52,250 |
Series Sunny 18 | 329,940 |
Series Sunsanddrinkinhand | 85,622 |
Series Sweet Sweet Annie 19 | 129,780 |
Series Swiss Minister | 11,900 |
Series Takeo Squared | 22,900 |
Series Tapitry 19 | 190,281 |
Series Tavasco Road | 15,600 |
Series Tell All 19 | 107,844 |
Series Tell the Duchess 19 | 241,400 |
Series The Filly Four | 1,224,000 |
Series The Royal Duet | 798,405 |
Series Thirteen Stripes | 194,650 |
Series Timeless Trick 20 | 81,000 |
Series Tizamagician | 163,200 |
Series Tufnel | 274,040 |
Series Twirl Girl 21 | 134,100 |
Series Two Trail Sioux 17 | 114,750 |
Series Two Trail Sioux 17K | 29,720 |
Series Utalknboutpractice | 25,500 |
Series Vertical Threat | 107,100 |
Series Vow | 304,300 |
Series War Safe | 248,200 |
Series Wayne O | 486,000 |
Series Who Runs the World | 450,840 |
Series Who'sbeeninmybed 19 | 320,790 |
Series Without Delay | 121,000 |
Series Wonder Upon a Star 19 | 314,500 |
Series Yes This Time | 107,930 |
Series You Make Luvin Fun 19 | 382,500 |
Series Zestful | 27,200 |
Totals | $34,842,485 |
_____________________
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. | |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. | |
(3) | The Company converted an advance from founders outstanding as of December 31, 2017 to equity in the Company to ease the cash flow burden to the Company during 2018. |
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(*)As of December 31, 2022, the Company owes the following to related parties:
-$1,278,082 to Spendthrift in connection with Series Authentic associated with the “kicker” balance due.
-$525,737 to Spendthrift in connection with the deferred training expenses across various series associated with yearling purchases in 2020, that will be payable at the conclusion of such Series.
-$288,957.67 to the Manager in connection with Series Authentic.
(**)The Company acquired the horse asset in Series Palace Foal via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The convertible profit participating loan bears a 2.38 percent per annum interest rate and is due either when Series Palace Foal is fully subscribed or converted into the unsold units of Series Palace Foal. During the time the convertible profit participating loan is outstanding, the underlying cash flow of Series Palace Foal series accrues to the loan holder.
Because these are related party transactions, no guarantee can be made that the terms of the arrangements are at arm’s length.
Trend information – For the Years Ended December 31, 2022 and 2021
The Company’s main focus over the next twelve months is to continue to launch subsequent Offerings of Series Interests. The table below shows the launched and closed Offerings for the year ended December 31,2022:
# of Offerings Launched (1)(2) | # of Offerings Closed | |
2022 | 28 | 38 |
(1) data represents number of Offerings for Series Interests of each state of offering process in the given period.
(2) offerings launched as of December 31, 2022 either through (i) a Regulation A offering or (ii) a Regulation D offering.
The Company plans to launch approximately 20 to 30 additional offerings in the next twelve months, as of the date of this filing, including offerings for increasingly higher value underlying assets. The Company will commence such offerings within two calendar days of qualification with the SEC as provided in Rule 251(d)(3)(i)(F). The proceeds from any offerings closed during the next twelve months will be used to acquire additional race horses. We believe that launching a larger number of offerings in 2023-2024 and beyond will help us from a number of perspectives:
1) Continue to grow the user base on the Platform by attracting more Investors into our ecosystem.
2) Enable the Company to reduce operating expenses for each series, as we negotiate better contracts for training, upkeep, insurance and other operating expenses with a larger collection of underlying assets.
3) Attract a larger community of Horse Sellers with high quality underlying assets to the Platform who may view us as a more efficient method of transacting than the traditional syndication processes.
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In addition to more offerings, we also intend to continue to develop Membership Experience Programs, which allow Investors to enjoy the collection of racehorses acquired and managed by the Company through events, race day visits and other programs.
Outside of the trends mentioned above, we believe that the Company is also dependent on the general economic environment and investing climate, the horse racing industry at large (including ongoing concerns of horse safety), in particular in the United States. In addition, since we are reliant on our Manager to support the Company and the Series, we are dependent on the general fundraising environment and our Manager’s continued ability to raise capital.
Plan of Operations
As stated, the Company is in the business of acquiring interests in, training and racing race horses. As the Company acquires the interests in the horses in the future, the Company will recognize its share of the horse earnings less any expenses paid for or incurred on behalf of a specific horse operation.
During the year ended December 31, 2022, series accrued race winnings totaling $4,331,342. In sum, the series incurred $4,771,984 of series specific expenses (stabling, transportation, insurance, veterinary, etc.). The Company has also accrued $2,502,264 of due diligence or management fees earned by the Manager.
Off-Balance Sheet Arrangements
As of December 31, 2022, we did not have any off-balance sheet arrangements.
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ITEM 3. DIRECTORS AND OFFICERS
MANAGEMENT
Manager
The Manager of the Company is Experiential Squared, Inc., a Delaware corporation formed on December 27, 2016 (also referred to as “Experiential” or as “Manager.”)
The Company operates under the direction of the Manager, which is responsible for directing the operations of our business, directing our day-to-day affairs, and implementing our business strategy. The Manager and its officers and directors are not required to devote all of their time to our business and are only required to devote such time to our affairs as their duties require. The Manager is responsible for determining maintenance required in order to maintain or improve the asset’s quality, determining how to monetize a Series and other underlying assets at Membership Experience Programs in order to generate profits and evaluating potential sale offers, which may lead to the liquidation of a Series as the case may be.
The Company will follow guidelines adopted by the Manager and implement policies set forth in the Operating Agreement unless otherwise modified by the Manager. The Manager may establish further written policies and will monitor our administrative procedures, asset operations and performance to ensure that the policies are fulfilled. The Manager may change our objectives at any time without approval of our Interest Holders. The Manager is one of the leading bloodstock and racing management operations in the United States with over 70 wins as of February 2022.
The Manager performs its duties and responsibilities pursuant to our Operating Agreement. We have agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities.
Responsibilities of the Manager
Under Nevada law, the fiduciary duties of a manager to the limited liability company and to its members are limited to that of good faith and fair dealing. The Operating Agreement for the Company has set forth standards by which the duties of the Manager are to be measured.
Among other things, the Operating Agreement recognizes that the Manager (directly or through affiliates) is permitted to conduct outside business activities that may conflict with the Company’s business. The Company's business operations and affairs will be managed entirely by the Manager, which may be subject to certain conflicts of interest. (See "CONFLICTS OF INTEREST.") In addition, the Manager may, if desired, submit any contract or act for approval or ratification by the Members of the Company, and any contract or act approved or ratified by the affirmative vote of the Members holding a majority of percentage interests will not constitute a violation of the Manager’s duties to the Company or its Members.
The Members have not been separately represented by independent legal counsel in their dealings with the Manager. Members must rely on the good faith and integrity of the Manager to act in accordance with the terms and conditions of this Offering. The terms of establishment of the Company, its operations, and the operating agreement has been prepared by the Manager. Therefore, the terms and the Operating Agreement have not been negotiated in an arms' length transaction, and there is no assurance that the Company could not have obtained more favorable terms from a third party for any of these agreements. INVESTORS SHOULD CONSULT WITH THEIR OWN COUNSEL TO EVALUATE ANY AND ALL OF THESE AGREEMENTS AND RELATIONSHIPS.
The Manager must, on demand, give to any Member or his legal representative true and complete information concerning all Company affairs as required by law. Each Member or his legal representative has the right to inspect and copy the Company books and records upon reasonable request and in accordance with applicable law.
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The Operating Agreement provides that the Manager shall have no liability to the Company for losses resulting from errors in judgment or other acts or omissions, as long as (i) the Manager determined, in good faith, that such action or inaction was in, or not opposed to, the best interests of the Company and (ii) such action or inaction did not constitute fraud, deceit, willful misconduct, gross negligence, or a wrongful taking. The Operating Agreement also provides that the Company shall indemnify the Manager against liability and related expenses (including reasonable attorneys' fees and costs) incurred in dealing with the Company, Members or third parties, so long as the standard described above is met. Therefore, Members may have a more limited right of action then they would have absent these provisions in the Operating Agreement. A successful indemnification of the Manager or any litigation that may arise in connection with the Manager's indemnification could deplete the assets of the Company. Members who believe that a breach of the Manager's duty has occurred should consult with their own counsel.
Executive Officers, Directors and Significant Employees of the Manager
The following individuals constitute the Board of Directors, executive management and significant employees of the Manager:
Name | Age | Position | Term of Office (Beginning) |
Executive Officers and Directors | |||
Michael Behrens | 46 | Chief Executive Officer, Chief Financial Officer, Secretary, and Director | Inception |
Significant Employees | |||
Chris Ransom | 44 | Head of Operations and Strategy | September 2020 |
Amber Jain | 45 | Head of Platform and Technology | November 2019 |
Shona Rotondo | 34 | Head of Marketing | January 2020 |
Roderick Wachman | 54 | Global Head of Bloodstock | March 2021 |
Joe Moran | 28 | Head of Racing | July 2018 |
Background of Officers and Directors of the Manager
The following is a brief summary of the background of each director and executive officer of the Manager:
Michael Behrens, Chief Executive Officer, Chief Financial Officer, Secretary and Director
Michael has served as the CEO of Experiential Squared since 2018. Under his leadership, as of February 2022, Experiential has managed well over 100 racehorses across the United States and achieved over 70 wins including the Kentucky Derby and Breeders Cup Classic. He has built and led a team of experts in racing management, bloodstock services, content, marketing, legal and technology. Experiential now manages stables in Ireland, the United Kingdom and Australia and is quickly rising to a leadership position in managing, acquiring and selling racehorses.
Background of Significant Employees
The following is a brief summary of the background of some of our significant employees that build, manage and optimize the horses and our Investor experiences:
Chris Ransom, Head of Operations and Strategy
As our head of operations, Chris is responsible for the allocation of capital to our stable in both acquisitions and training and provides a strong role of governance to all use of capital in each series to maximize shareholder value. Since our launch he has been one of our top strategic advisors, and joined the team in 2020.
A graduate of Boston University, Chris Ransom has over twenty years of experience as a financial executive in the construction, real estate, and thoroughbred industry.
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Amber Jain, Head of Platform and Technology
As head of platform and technology, Amber’s primary responsibility is to lead MyRacehorse to imagine, develop and deliver great digital experiences to its customer base of racehorse owners. His daily responsibilities are focused on building features that enrich the ownership experience for investors in each of the Series/Horses. A major expectation with an investment in a series is to unlock the full experience of ownership. The MyRacehorse tech stack provides, updates on training, video interviews with trainers, analysis by key industry stakeholders, Q/A session with key stakeholders, race day financials, sharing, and other stable management features.
Amber has an MS degree in Computer Science from University of Southern California along with a BS in Electrical Engineering. Prior to joining MyRacehorse, Amber served as a hands on technology leader in the digital marketing space building cutting edge MarTech products around attribution, personalization and campaign optimization focusing on SEM and Display channels.
Shona Rotondo. Head of Marketing
Shona Rotondo is the Head of Marketing at MyRacehorse, focusing on overall brand positioning, communications, marketing strategy and social content development. In addition to these roles Rotondo actively manages relationships with outside media partners, racetracks and racing stakeholders. A Boston University graduate, Rotondo spent over a decade in agency roles navigating the evolution of social and digital marketing for companies like Reebok, IBM, and the Breeders’ Cup World Championships. In 2016 she co-founded Grand Slam Social LLC, a boutique social media agency that focuses on marketing strategies for horse racing and equestrian brands.
Roderick Wachman, Global Head of Bloodstock
As our Head of Global Bloodstock, Roderick’s chief responsibilities include working with our Head of Racing and our resident veterinarian to review potential acquisition targets, develop and maintain an approved list of trainers and racing partners and provide counsel on the management of our stable. Roderick was born and raised in Ireland; he has worked in the thoroughbred industry for 31 years. Gaining experience in Ireland, England, New Zealand and Australia. Settling in Lexington, Kentucky in 1994, where he worked for Brookdale Farm and Bluegrass Thoroughbred Services. He started and successfully operated Kingswood Farm from 2001 - 2014, before deciding to operate an international Bloodstock agency.
Joe Moran, Head of Racing
Joe’s responsibilities include managing our stable of runnersthroughout the United States. . In this capacity Joe routinely is on site (mornings and afternoons) to watch the runners train and race, coordinate with respective trainers regarding training schedule and race results, as well as developing and maintaining key relationships with our racing partners and track officials across all geographic regions. Joe, a graduate of Oklahoma Baptist University, has been around the racing industry his entire life. His first introduction to the industry came through his father who owns a number of horses on the Southern California circuit. In addition to spending significant time at the barns with his family’s horses, Joe also worked in the Andy Mathis barn as a hot walker and groom.
Advances from Manager
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Advances from Manager” section above for more information.
Related Party Transactions
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Related Party Transactions” section above for more information.
Conflicts of Interest
See “Conflicts of Interest” section below for more information.
95 |
COMPENSATION
Compensation of Executive Officers
We do not currently have any employees nor do we currently intend to hire any employees who will be compensated directly by the Company. The chief executive officer of the Manager plus other employees of the Manager manage our day-to-day affairs, oversee the review, selection and recommendation of underlying assets, service acquired assets and monitor the performance of these assets to ensure that they are consistent with our business objectives. Each of these individuals receives compensation for his or her services, including services performed for us on behalf of the Manager, from Experiential Squared, Inc. Although we will indirectly bear some of the costs of the compensation paid to these individuals, through fees we pay to the Manager, we do not intend to pay any compensation directly to these individuals.
Compensation of Manager
The Manager will receive reimbursement for costs incurred relating to this and other offerings (e.g., Offering Expenses and Operating Expenses) and, in its capacity as Manager, a Management Fee (including the Due Diligence Fees and 10% and any earned Performance Management Fees). Neither the Manager nor its affiliates will receive any selling commissions or dealer manager fees in connection with the offer and sale of the Interests.
The annual compensation of the Manager for Fiscal Year 2022 was as follows:
Name | Capacities in which compensation was received (e.g., Chief Executive Officer, director, etc.) | Cash compensation ($) | Other compensation ($) | Total compensation ($) |
Experiential Squared, Inc. | Manager | 2,502,239 | $505,872(1) | $3,008,111 |
_____________________
(1) | Compensation related to the Manager performing bloodstock services and general and administrative services in connection with the management for certain Underlying Assets of their respective Series in 2022 |
In addition, should a series’ revenue exceed its ongoing Operating Expenses and various other potential financial obligations of the series, the Manager in its capacity as the Manager may receive a Management Fee as described in “Description of the Business – Management Fee.”
A more complete description of Management of the Company is included in “Description of the Business” and “Management”.
Except as set forth herein, we do not have any ongoing plan or arrangement for the compensation of executive officers and our Manager.
96 |
CONFLICTS OF INTEREST
We have identified the following conflicts of interest that may arise in connection with the Interests, in particular, in relation to the Company, the Manager, the Manager’s lenders and the Underlying Assets. The conflicts of interest described in this section should not be considered as an exhaustive list of the conflicts of interest that prospective investors should consider before investing in the Interests.
Manager’s Fees and Compensation
None of the compensation set forth under “Compensation of Manager” and “Compensation of Executive Officers” was determined by arms’ length negotiations. It is anticipated that the commissions and profits received by the Manager may be higher or lower depending upon market conditions.
This conflict of interest will exist in connection with Company management and investors must rely upon the duties of the Manager of good faith and fair dealing to protect their interests, as qualified by the Operating Agreement.
The Manager has the right to retain the services of other firms, in addition to or in lieu of the Manager, to perform various services, asset management and other activities in connection with the business.
Loans or Other Related Party Transactions
The Company converted an advance from founders outstanding as of December 31, 2017 to equity in the Company to ease the cash flow burden to the Company. The Company also has borrowed $2,243,920 from the manager of the Company in order to acquire horse assets prior to establishing and issuing securities in the underlying series holding the horse assets for the fiscal year ended December 31, 2022. Because these are related party transactions, no guarantee can be made that the terms of the arrangements are at arm’s length.
Upkeep Fee Liabilities; Operating Expenses Reimbursement Obligations; Manager Loans
The Manager or an affiliate will incur liabilities related to Upkeep Fees on behalf of the Series and be entitled to reimbursement of such amount only upon a sale of the Underlying Asset or a dissolution or termination of such Series and not from Distributable Cash from ongoing revenues generated by such Series (“Operating Expenses Reimbursement Obligation(s)”). Notwithstanding the foregoing, there will still exist a smaller pre-paid cash reserve for Prepaid Expenses and insurance, administrative and general Operating Expenses which is intended to cover three years of such projected Operating Expenses (excluding Upkeep Fees).
In addition, the Manager retains discretion to also (a) loan the amount of the Operating Expenses to such Series, on which the Manager may impose a reasonable rate of interest, which shall not be lower than the Applicable Federal Rate (as defined in the Internal Revenue Code), and/or (b) cause additional Interests to be issued in order to cover such additional amounts.
An Interest Holder will be liable only to the extent of their agreed upon capital contributions and, if no such capital remains at dissolution, such Interest Holder will not be liable for the failure of a Series to repay its underlying debt or liabilities, including the Operating Expenses Reimbursement Obligations.
97 |
Other Series or Businesses
The Manager may engage for its own account, or for the account of others, in other business ventures, similar to that of the Company or otherwise, and neither the Company nor any Investor shall be entitled to any interest therein.
The Company will not have independent management and it will rely on the Manager for the operation of the Company. The Manager will devote only so much time to the business of the Company as is reasonably required. The Manager could have conflicts of interest in allocating management time, services and functions between its existing business interests other than the Company and any future entities which it may organize as well as other business ventures in which it may be involved. The Manager believes it has sufficient staff available to be fully capable of discharging its responsibilities to all such entities.
The Manager, acting in the same capacities for other investors, companies, partnerships or entities, may result in competition with individual Series, including other Series. There are no restrictions on the Manager, or any of its affiliates, against operating other businesses in such competition with the Company. If the Manager or any of its affiliates did operate such a business that competed for clients with the Company, it could substantially impair the Company’s financial results.
Manager Affiliation with Majority Owners
The Manager may independently determine to invest in syndicates that own majority interests in certain assets owned by individual Series. The Manager may derive compensation from its membership in these syndicates in addition to any compensation earned as a Manager of an individual Series.
Animal Welfare Obligations
The Manager is responsible and equipped to manage the series in a manner to maximize investor returns by buying, managing and selling the Underlying Asset in an optimal manner, however the Manager is committed to maximizing the welfare of the thoroughbred and will make decisions that are always in the best interest of the welfare of the horse. This could include but is not limited to surgery and rehabilitation costs, veterinary inspections and diagnostics, spelling (breaks from racing and training that limit the ability to earn revenue), and early retirement of a horse if it is deemed in the best interest of the horse.
Maximization of Entertainment Value
The Manager is responsible and equipped to manage the series in a manner to maximize investor returns by buying, managing and selling the Underlying Asset in an optimal manner. However, as has been shown by our Investors’ interests over the past few years, the Manager is committed to maximizing the entertainment and experiential value of the Investors as well. Many Investors cite their primary reason for investing as the ability to own a racehorse and experience the journey of racehorse ownership. The Manager needs to make decisions that balance the welfare, the profit of the underlying asset and the entertainment expectations of the Series Investors.
Spendthrift Farm LLC is frequently a Horse Seller and Co-Owner in our Underlying Assets. Our interests in these transactions may be different from the interests of affiliates in these transactions.
On March 17, 2020, an affiliate of Spendthrift Farm, LLC, a Kentucky limited liability company (“Spendthrift”), became a majority stockholder in Experiential Squared, Inc., the Manager of the Company. In or about February 2023, Spendthrift sold its ownership interests in Manager to the existing stockholders of Manager. Spendthrift is also a Horse Seller and Co-Owner with the Company in several of the Underlying Assets of existing Series and will continue to hold those positions in future Series. As such, the Company recognizes that there may be a heightened risk of conflicts of interest representing our interests in these transactions on the one hand and the interests of the Manager and its affiliates in preserving or furthering their respective relationships on the other hand and/or proper valuation of certain transactions (or the perception thereof). The Manager and the Company, in determining whether to approve or authorize a particular transaction with Spendthrift, will consider whether the transaction between the Company and Spendthrift is fair and reasonable to the Company and has terms and conditions no less favorable to us than those available from unaffiliated third parties.
98 |
Lack of Independent Legal Representation
The Members have not been separately represented by independent legal counsel in connection with the Company’s organization or in their dealings with the Manager. The Investors must rely on the good faith and integrity of the Manager to act in accordance with the terms and conditions of this Offering. The terms of the management of the business and the operating agreement have all been prepared by the Company. Therefore, the terms of these agreements have not been negotiated in an arms’ length transaction, and there is no assurance that the Company could not have obtained more favorable terms from a third party for any of these agreements. PROSPECTIVE INVESTORS MUST RELY ON THEIR OWN LEGAL COUNSEL FOR LEGAL ADVICE IN CONNECTION WITH THIS INVESTMENT.
We do not have a conflicts of interest policy.
The Company, the Manager and their affiliates will try to balance the Company’s interests with their own. However, to the extent that such parties take actions that are more favorable to other entities than the Company, these actions could have a negative impact on the Company’s financial performance and, consequently, on distributions to Investors and the value of the Interests. The Company has not adopted, and does not intend to adopt in the future, either a conflicts of interest policy or a conflicts resolution policy.
ITEM 4. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS
PRINCIPAL INTEREST HOLDERS
The Company is managed by Experiential Squared, Inc. which is also the Company’s 100% owner. Experiential Squared, Inc., and/or its affiliates, have no intention of owning any of the Interests in the Series at Closing. However, Experiential Squared, Inc., and/or its affiliates, still reserve the right to participate in the Offering on the same terms and conditions as the Investors at their discretion and may opt to convert a Profit Participation Convertible Promissory Note into interests that remain unsold in this offering. The address of Experiential Squared, Inc. is 2456 Fortune Dr, Suite 110 Lexington KY 40509.
The following table sets forth information regarding beneficial ownership of the securities of the Company as of March 31, 2023 (i) by each of our officers and directors; (ii) by all of our officers and directors as a group; and (iii) by each person who is known by us to beneficially own more than 10% of any class of our voting securities. Unless otherwise specified, the address of each of the persons set forth below is in care of our company at 2456 Fortune Dr, Suite 110 Lexington KY 40509:
Underlying Asset | Name of Beneficial Owner (1) | Number of Beneficiary Shares (1) | Percentage of Interests Beneficially Owned | ||
Company (2) | Experiential Squared, Inc. (Manager) | NA | 0.00% | ||
Action Bundle (4) | Experiential Squared, Inc. (Manager) | 10,000 | 100.00% | ||
Jai Ho | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Amandrea | Experiential Squared, Inc. (Manager) | 42 | 7.64% | ||
Lookwhogotlucky | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Amers | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Howboutdemapples | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Kanthari | Experiential Squared, Inc. (Manager) | 5 | 0.10% | ||
Helicopter Money | Experiential Squared, Inc. (Manager) | 17 | 0.57% | ||
Quantum Theory | Experiential Squared, Inc. (Manager) | 0 | 0.00% |
99 |
Authentic | Experiential Squared, Inc. (Manager) | 58 | 0.46% | ||
Can't Hush This | Experiential Squared, Inc. (Manager) | 1 | 0.06% | ||
Bajan Bashert | Experiential Squared, Inc. (Manager) | 3 | 18.75% | ||
Balletic | Experiential Squared, Inc. (Manager) | 12 | 0.12% | ||
Bella Chica | Experiential Squared, Inc. (Manager) | 70 | 70.00% | ||
Big Mel | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Halofied | Experiential Squared, Inc. (Manager) | 4 | 20.00% | ||
Bullion | Experiential Squared, Inc. (Manager) | 25 | 0.00% | ||
Cable Boss | Experiential Squared, Inc. (Manager) | 4 | 0.08% | ||
Cairo Kiss | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Carrothers | Experiential Squared, Inc. (Manager) | 1,087 | 21.31% | ||
Provocateur | Experiential Squared, Inc. (Manager) | 5 | 0.12% | ||
Captain Sparrow | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Chad Brown Bundle | Experiential Squared, Inc. (Manager) | 3 | 0.06% | ||
Cuvier | Experiential Squared, Inc. (Manager) | 1,250 | 100.00% | ||
Classic Cut | Experiential Squared, Inc. (Manager) | 6 | 0.06% | ||
Sixtythreecaliber | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Search Engine | Experiential Squared, Inc. (Manager) | 1 | 0.02% | ||
Collusion Illusion | Experiential Squared, Inc. (Manager) | 5 | 0.02% | ||
Sacred Beauty | Experiential Squared, Inc. (Manager) | 2 | 0.49% | ||
Tap the Gavel | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Daddy's Joy | Experiential Squared, Inc. (Manager) | 2 | 0.33% | ||
Dancing Crane | Experiential Squared, Inc. (Manager) | 2 | 10.00% | ||
Boppy | Experiential Squared, Inc. (Manager) | 1 | 0.13% | ||
Dancing Destroyer | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Deep Cover | Experiential Squared, Inc. (Manager) | 2 | 0.25% | ||
Demogorgon | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Always Hopeful | Experiential Squared, Inc. (Manager) | 9 | 0.88% | ||
Hero Status | Experiential Squared, Inc. (Manager) | 4 | 0.07% | ||
Edge Racing Summer Fun-d | Experiential Squared, Inc. (Manager) | 2 | 4.00% | ||
Enchante 21 | Experiential Squared, Inc. (Manager) | 5 | 0.08% | ||
Elarose 21 | Experiential Squared, Inc. (Manager) | 7 | 0.07% | ||
Escape Route | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Above Suspicion | Experiential Squared, Inc. (Manager) | 1 | 0.12% | ||
Inspector | Experiential Squared, Inc. (Manager) | 1 | 0.08% | ||
Forever Rose | Experiential Squared, Inc. (Manager) | 1,250 | 100.00% | ||
Spun Intended | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Frosted Oats | Experiential Squared, Inc. (Manager) | 3 | 0.07% | ||
Future Stars Stable | Experiential Squared, Inc. (Manager) | 96 | 0.96% | ||
Gentleman Gerry | Experiential Squared, Inc. (Manager) | 0 | 0.00% |
100 |
Going to Vegas | Experiential Squared, Inc. (Manager) | 31 | 0.61% | ||
Got Stormy | Experiential Squared, Inc. (Manager) | 68 | 1.33% | ||
Cornice Traverse | Experiential Squared, Inc. (Manager) | 3 | 0.40% | ||
Sun Valley Road | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Heaven Street | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Kindle 21 | Experiential Squared, Inc. (Manager) | 14 | 0.25% | ||
Knarsdale 21 | Experiential Squared, Inc. (Manager) | 5,000 | 100.00% | ||
I'm a Looker 20 | Experiential Squared, Inc. (Manager) | 7 | 0.18% | ||
Malibu Mayhem | Experiential Squared, Inc. (Manager) | 9 | 1.38% | ||
Stay Fabulous | Experiential Squared, Inc. (Manager) | 18 | 0.72% | ||
Forbidden Kingdom | Experiential Squared, Inc. (Manager) | 1 | 0.10% | ||
American Heiress | Experiential Squared, Inc. (Manager) | 12 | 0.24% | ||
Kiana's Love | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Kichiro | Experiential Squared, Inc. (Manager) | 71 | 35.50% | ||
Lane Way | Experiential Squared, Inc. (Manager) | 2 | 0.03% | ||
Inalattetrouble | Experiential Squared, Inc. (Manager) | 4 | 0.10% | ||
Lazy Daisy | Experiential Squared, Inc. (Manager) | 1 | 0.08% | ||
Show Your Cards | Experiential Squared, Inc. (Manager) | 1 | 0.03% | ||
Laforgia | Experiential Squared, Inc. (Manager) | 20 | 0.20% | ||
Madarnas | Experiential Squared, Inc. (Manager) | 22 | 44.00% | ||
Madiera Wine | Experiential Squared, Inc. (Manager) | 1 | 5.00% | ||
Major Implications | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Man Among Men | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
A Mo Reay | Experiential Squared, Inc. (Manager) | 1 | 0.12% | ||
Straight No Chaser | Experiential Squared, Inc. (Manager) | 24 | 1.20% | ||
Carpe Vinum | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Tepeu | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Dolce Notte | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Miss Puzzle | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Miss Sakamoto | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Mo Mischief | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Mo Temptation | Experiential Squared, Inc. (Manager) | 10 | 0.29% | ||
Monomoy Girl | Experiential Squared, Inc. (Manager) | 112 | 1.10% | ||
Moonbow 20 | Experiential Squared, Inc. (Manager) | 8 | 0.32% | ||
Moonless Sky | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Motion Emotion (3) | Experiential Squared, Inc. (Manager) | 1,020 | 100.00% | ||
Mrs Whistler | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
My Fast One 20 | Experiential Squared, Inc. (Manager) | 7 | 0.35% | ||
Naismith | Experiential Squared, Inc. (Manager) | 6 | 0.30% | ||
National Road | Experiential Squared, Inc. (Manager) | 10 | 50.00% |
101 |
New York Claiming Package | Experiential Squared, Inc. (Manager) | 158 | 30.98% | ||
Night of Idiots | Experiential Squared, Inc. (Manager) | 18 | 22.50% | ||
Nileist | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Noble Goddess | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Pep Rally | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
NY Exacta | Experiential Squared, Inc. (Manager) | 3 | 0.15% | ||
One Last Night 21 | Experiential Squared, Inc. (Manager) | 1,652 | 55.07% | ||
Celebrity News | Experiential Squared, Inc. (Manager) | 3 | 0.25% | ||
Our Jenny B | Experiential Squared, Inc. (Manager) | 11 | 55.00% | ||
Palace Foal | Experiential Squared, Inc. (Manager) | 510 | 100.00% | ||
Patsys Kim 21 | Experiential Squared, Inc. (Manager) | 1,027 | 20.54% | ||
Popular Demand | Experiential Squared, Inc. (Manager) | 2 | 0.20% | ||
Power Up Paynter | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Regal Rebel | Experiential Squared, Inc. (Manager) | 30 | 0.15% | ||
Chasing Time | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Rosie's Alibi | Experiential Squared, Inc. (Manager) | 5 | 0.05% | ||
Salute to America | Experiential Squared, Inc. (Manager) | 0 | 0.10% | ||
Sarrochi 21 | Experiential Squared, Inc. (Manager) | 5 | 0.00% | ||
Sauce On Side | Experiential Squared, Inc. (Manager) | 0 | 0.40% | ||
Shake It Up Baby | Experiential Squared, Inc. (Manager) | 18 | 7.20% | ||
Sigesmund | Experiential Squared, Inc. (Manager) | 79 | 79.00% | ||
Iron Works | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Smart Shopping 21 | Experiential Squared, Inc. (Manager) | 6 | 0.00% | ||
Social Dilemma | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Song of Lark 21 | Experiential Squared, Inc. (Manager) | 7 | 0.27% | ||
Soul Beam | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Ancient Royalty | Experiential Squared, Inc. (Manager) | 1 | 0.11% | ||
Phantom Ride | Experiential Squared, Inc. (Manager) | 6 | 0.20% | ||
Squared Straight | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Storm Shooter | Experiential Squared, Inc. (Manager) | 2 | 0.10% | ||
Street Band | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Solar Strike | Experiential Squared, Inc. (Manager) | 24 | 0.40% | ||
Sunsanddrinkinhand | Experiential Squared, Inc. (Manager) | 5 | 25.00% | ||
In Due Time | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Swiss Minister | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Takeo Squared | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Infinite Empire | Experiential Squared, Inc. (Manager) | 3 | 0.37% | ||
Tavasco Road | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Walk the Talk | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Duke of Love | Experiential Squared, Inc. (Manager) | 686 | 34.30% |
102 |
The Filly Four | Experiential Squared, Inc. (Manager) | 45 | 0.56% | ||
The Royal Duet | Experiential Squared, Inc. (Manager) | 768 | 0.15% | ||
Thirteen Stripes | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Interstellar | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Tizamagician | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Tufnel | Experiential Squared, Inc. (Manager) | 41 | 0.79% | ||
Twirl Girl 21 | Experiential Squared, Inc. (Manager) | 13 | 65.00% | ||
Annahilate | Experiential Squared, Inc. (Manager) | 3 | 0.67% | ||
Two Trail Sioux 17K | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Utalknboutpractice | Experiential Squared, Inc. (Manager) | 30 | 0.00% | ||
Vertical Threat | Experiential Squared, Inc. (Manager) | 2 | 0.33% | ||
Vow | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
War Safe | Experiential Squared, Inc. (Manager) | 12 | 0.60% | ||
Wayne O | Experiential Squared, Inc. (Manager) | 0 | 0.00% | ||
Who Runs the World | Experiential Squared, Inc. (Manager) | 7 | 0.14% | ||
Micro Share | Experiential Squared, Inc. (Manager) | 11 | 0.22% | ||
Golden Quality | Experiential Squared, Inc. (Manager) | 3 | 15.00% | ||
Star Six Nine | Experiential Squared, Inc. (Manager) | 8 | 0.08% | ||
Yes This Time | Experiential Squared, Inc. (Manager) | 4 | 40.00% | ||
Magical Ways | Experiential Squared, Inc. (Manager) | 6 | 0.10% | ||
Zestful | Experiential Squared, Inc. (Manager) | 0 | 0.00% |
____________________
(1) | Experiential Squared, Inc. or an affiliate holds a promissory note which provides that, at its election, such beneficial owner may convert the outstanding balance of the note into the number of unsold Series Interests in the offering of such Series on the date of conversion. As such, such party is deemed to be the beneficial owner of such unsold Series Interests until such time as the Series is fully subscribed. Notwithstanding the foregoing, as to Series offerings closed on or prior to September 18, 2020, such holders listed above are direct Series Interest Holders as all such promissory notes have been converted in full prior to such date. | |
(2) | The purchase of membership interests in a Series of the Company is an investment only in that Series (and with respect to that Series’ Underlying Asset) and not an investment in the Company as a whole. | |
(3) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. | |
(4) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. |
ITEM 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
As described in the financial statements, the Company has the following transactions involving the issuer or related parties (other than compensation described under “Item 3 – “Compensation of Executive Officers” and “Compensation of Manager”):
Advances from Manager
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Advances from Manager” section above for more information.
103 |
Related Party Transactions
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Transactions” section above for more information.
Conflicts of Interest
See “Conflicts of Interest” section above for more information.
None.
Index to Financial Statements
Audited Financial Statements as of December 31, 2022 and 2021 and for the years then ended
Independent Auditor’s Report | F-1 |
Balance Sheets | F-2 |
Statements of Operations | F-3 |
Statements of Changes in Members’ Equity | F-4 |
Statements of Cash Flows | F-5 |
Notes to the Financial Statements | F-6 |
104 |
April 12, 2023
To: | Experiential Squared, Inc as manager of My Racehorse CA LLC |
Re: | 2022 and 2021 Financial Statement Audit |
We have audited the accompanying financial statements of MY RACEHORSE CA, LLC (a series limited liability company organized in Nevada) (the “Company”), which comprise the balance sheets as of December 31, 2022 and 2021, and the related statements of operations, changes in members’ equity, and cash flows for the calendar year periods ended December 31, 2022 and 2021, and the related notes to such financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of the Company’s financial statements in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations, changes in members’ equity and its cash flows for the calendar year periods thus ended in accordance with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. However, there is substantial doubt about its ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in the Notes to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.
Sincerely,
IndigoSpire CPA Group |
IndigoSpire CPA Group, LLC
Aurora, Colorado
April 12, 2023
F-1 |
MY RACEHORSE CA LLC
As of December 31, 2022 and 2021
31-Dec-22 | 31-Dec-21 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | – | $ | – | ||||
Accounts receivable | 65,079 | – | ||||||
Horse reserve funds receivable from Manager (see Note 4) | 4,226,464 | 3,668,322 | ||||||
Prepaid expense | 10,481 | 129,722 | ||||||
Total Current Assets | 4,302,024 | 3,798,044 | ||||||
Non-Current Assets: | ||||||||
Horse assets, net of accumulated depreciation (see Note 2) | 8,316,347 | 10,897,198 | ||||||
Total Non-Current Assets | 8,316,347 | 10,897,198 | ||||||
TOTAL ASSETS | $ | 12,618,371 | $ | 14,695,242 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||||
Liabilities: | ||||||||
Current Liabilities: | ||||||||
Acquisition advances payable to Manager (see Note 4) | $ | 2,243,920 | $ | 3,764,514 | ||||
Accrued expense | 149,708 | 60,302 | ||||||
Deferred revenue | 60,000 | – | ||||||
Distributions payable | 716,840 | – | ||||||
Interest payable | 23 | 46,956 | ||||||
Total Current Liabilities | 3,170,491 | 3,871,772 | ||||||
Long-term Liabilities: | ||||||||
Long-term debt - related party | 2,192,460 | 3,022,807 | ||||||
Total Long-term Liabilities | 2,192,460 | 3,022,807 | ||||||
Total Liabilities | 5,362,951 | 6,894,579 | ||||||
Members' Equity: | ||||||||
Membership in My Racehorse CA, LLC | 841,824 | 324,928 | ||||||
Subscriptions in series, net of distributions (See Note 6) | 32,004,419 | 24,572,224 | ||||||
Accumulated deficit | (25,590,823 | ) | (17,096,489 | ) | ||||
Total Members' Equity | 7,255,420 | 7,800,663 | ||||||
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 12,618,371 | $ | 14,695,242 |
See auditor’s report and accompanying notes, which are a part of these financial statements.
F-2 |
MY RACEHORSE CA LLC
As of December 31, 2022 and 2021
31-Dec-22 | 31-Dec-21 | |||||||
Revenues | $ | 4,331,342 | $ | 2,608,565 | ||||
Cost of Revenues | (4,771,984 | ) | (4,362,914 | ) | ||||
Gross Profit/(Loss) | (440,642 | ) | (1,754,349 | ) | ||||
Operating Expense: | ||||||||
Depreciation | 5,569,738 | 5,593,064 | ||||||
Management charges | 2,502,264 | 1,949,857 | ||||||
General and administrative | 595,392 | 374,367 | ||||||
Total Operating Expenses | 8,667,394 | 7,917,288 | ||||||
Loss from Operations | (9,108,036 | ) | (9,671,637 | ) | ||||
Other Income/(Expense): | ||||||||
Gain/(loss) on disposition of horses | 147,376 | (677,233 | ) | |||||
Debt forgiveness | 497,729 | 97,621 | ||||||
Interest expense | (33,231 | ) | (57,279 | ) | ||||
Insurance recoveries | 1,828 | – | ||||||
Total Other Expenses | 613,702 | (636,891 | ) | |||||
Provision for Income Taxes | – | – | ||||||
Net Loss | $ | (8,494,334 | ) | $ | (10,308,528 | ) |
See auditor’s report and accompanying notes, which are a part of these financial statements.
F-3 |
MY RACEHORSE CA LLC
STATEMENTS OF CHANGES IN MEMBERS’ EQUITY
As of December 31, 2022 and 2021
Membership in My Racehorse CA LLC | Subscriptions in Series | Accumulated Deficit | Total Members' Equity | |||||||||||||
Balance at December 31, 2020 | $ | 11,843 | $ | 14,902,854 | $ | (6,787,961 | ) | $ | 8,126,736 | |||||||
Subscriptions received in horse series | – | 11,400,929 | – | 11,400,929 | ||||||||||||
Distributions from horse series | – | (1,731,559 | ) | – | (1,731,559 | ) | ||||||||||
Contributions by manager | 313,085 | – | – | 313,085 | ||||||||||||
Net loss | – | – | (10,308,528 | ) | (10,308,528 | ) | ||||||||||
Balance at December 31, 2021 | 324,928 | 24,572,224 | (17,096,489 | ) | 7,800,663 | |||||||||||
Subscriptions received in horse series | – | 11,805,265 | – | 11,805,265 | ||||||||||||
Distributions from horse series | – | (4,373,070 | ) | – | (4,373,070 | ) | ||||||||||
Contribution by manager | 516,896 | – | – | 516,896 | ||||||||||||
Net loss | – | – | (8,494,334 | ) | (8,494,334 | ) | ||||||||||
Balance at December 31, 2022 | $ | 841,824 | $ | 32,004,419 | $ | (25,590,823 | ) | $ | 7,255,420 |
See auditor’s report and accompanying notes, which are a part of these financial statements.
F-4 |
MY RACEHORSE CA LLC
As of December 31, 2022 and 2021
31-Dec-22 | 31-Dec-21 | |||||||
Cash Flows From Operating Activities | ||||||||
Net Loss | $ | (8,494,334 | ) | $ | (10,308,528 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 5,569,738 | 5,593,064 | ||||||
Loss/(gain) on disposal of horse ownership | (147,376 | ) | 677,233 | |||||
Gain on debt forgiveness | (497,729 | ) | (97,621 | ) | ||||
Interest capitalized to loan | 29,111 | – | ||||||
Changes in operating assets and liabilities: | ||||||||
Change in accounts receivables | (65,079 | ) | – | |||||
Change in prepaid expense | – | 63,523 | ||||||
Change in other assets | 119,241 | 481,774 | ||||||
Change in accrued expense | 89,403 | 51,002 | ||||||
Change in accrued interest payable | (20,064 | ) | 20,187 | |||||
Change in deferred revenue | 60,000 | – | ||||||
Net Cash Used In Operating Activities | (3,357,089 | ) | (3,519,366 | ) | ||||
Cash Flows From Investing Activities | ||||||||
Purchase of horse assets | (5,249,921 | ) | (7,782,659 | ) | ||||
Proceeds from horse disposition | 2,408,411 | 328,379 | ||||||
Net Cash Used In Investing Activities | (2,841,510 | ) | (7,454,280 | ) | ||||
Cash Flows From Financing Activities | ||||||||
Subscriptions received in horse series | 11,805,265 | 11,400,929 | ||||||
Distributions from horse series | (3,656,230 | ) | (1,731,559 | ) | ||||
Capital contributions | 516,896 | 313,085 | ||||||
Proceeds from debt - related party | 827,401 | – | ||||||
Repayments on debt - related party | (1,322,202 | ) | – | |||||
Horse revenues, net of expenses, applied to related party loans | – | 544,210 | ||||||
Net advances/(repayments) in amount due to manager | (1,972,531 | ) | 446,981 | |||||
Net Cash Provided by Financing Activities | 6,198,599 | 10,973,646 | ||||||
Net Change In Cash | – | – | ||||||
Cash at Beginning of Period | – | – | ||||||
Cash at End of Period | $ | – | $ | – | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Cash paid for interest | $ | – | $ | – | ||||
Cash paid for income taxes | $ | – | $ | – |
See auditor’s report and accompanying notes, which are a part of these financial statements.
F-5 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of December 31, 2022 and 2021 and for the years then ended
NOTE 1: NATURE OF OPERATIONS
My Racehorse CA LLC d/b/a MyRaceHorse.com (the “Company”) is an early-stage investment series limited liability company established by the manager, Experiential Squared, Inc. (the “Manager”), to invest in individual interests in thoroughbred, quarter and Standardbred horses through underlying Series LLCs. The Company aims to democratize the ownership of racehorses through a self-developed web-based platform and allow fans to experience racehorse ownership by investing in Series LLCs with other like-minded fans. The Company is headquartered in Claremont, CA. The Company was formed in 2016.
Since inception, the Company has relied on advances from founders and raising capital to fund its operations. The Company will likely incur losses prior to generating positive working capital. These matters raise substantial doubt about the Company’s ability to continue as a going concern. During the next 12 months, the Company intends to fund its operations with funding from a Regulation A securities campaign (see Note 10), capital contributions from the founder, and funds from revenue producing activities, if and when such can be realized. If the Company cannot secure additional short-term capital, it may cease operations. These financial statements and related notes thereto do not include any adjustments that might result from these uncertainties.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).
The Company adopted the calendar year as its basis of reporting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash Equivalents and Concentration of Cash Balance
The Company considers short-term, highly liquid investment with original maturities of three months or less at the time of purchase to be cash equivalents. Cash consists of funds held in the Company’s checking account. As of December 31, 2022 and 2021, the Company had no cash on hand.
Receivables and Credit Policy
Trade receivables from customers are uncollateralized customer obligations due under normal trade terms, primarily requiring payment before services are rendered. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoice. The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited, and it has not experienced significant write-downs in its accounts receivable balances. As of December 31, 2022 and 2021, the Company has $65,079 and $0 outstanding accounts receivable, respectively.
F-6 |
Property and Equipment
Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed as incurred. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the balance sheet accounts and the resultant gain or loss is reflected in income.
Depreciation is provided using the straight-line method, based on useful lives of the assets which range from three to five years. Horse assets are depreciated using the straight-line method over 36 months with no estimated salvage value. A horse is treated as placed in service upon its acquisition by the Company.
The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors.
As of December 31, 2022 and 2021, the Company has $17,659,407 and $20,953,945 respectively, recorded at cost in horse assets.
As of December 31, 2022, property and equipment consisted of the following:
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through December 31, 2022 |
Total |
Edge Bajan Bashert | $ 112,000 | $ (2,509) | $ 109,491 |
Edge Captain Sparrow | 70,000 | (14,176) | 55,824 |
Edge Demogorgon | 90,000 | (35,484) | 54,516 |
Edge Escape Route | 42,400 | (31,420) | 10,980 |
Edge Gentleman Gerry | 100,000 | (23,148) | 76,852 |
Edge Heaven Street | 100,000 | (15,771) | 84,229 |
Edge In Due Time | 76,000 | (42,984) | 33,016 |
Edge Interstellar | 60,000 | (13,500) | 46,500 |
F-7 |
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through December 31, 2022 |
Total |
Edge Jai Ho | $ 87,500 | $ (17,720) | $ 69,780 |
Edge National Road | 100,000 | (47,162) | 52,838 |
Edge Our Jenny B 21 | 52,000 | (4,863) | 47,137 |
Edge Pep Rally | 90,000 | (23,790) | 66,210 |
Edge Spun Intended | 62,500 | (16,241) | 46,259 |
ESF-Lady Quinn | 50,750 | (6,912) | 43,838 |
ESF-Picture of a Lady | 44,100 | (8,412) | 35,688 |
Edge Tepeu | 110,000 | (61,926) | 48,074 |
Edge Twirl Girl 21 | 75,000 | (6,944) | 68,056 |
Edge Yes This Time | 100,000 | (67,025) | 32,975 |
MRH Above Suspicion | 86,100 | (66,352) | 19,748 |
MRH Always Hopeful | 85,680 | (46,756) | 38,925 |
MRH Authentic | 4,359,157 | (3,659,235) | 699,923 |
MRH Balletic | 472,500 | (219,315) | 253,185 |
MRH Boppy | 47,250 | (20,606) | 26,644 |
MRH Cable Boss | 294,525 | (136,706) | 157,819 |
MRH CB Bundle | 30,173 | (11,734) | 18,439 |
MRH Night Combat | 60,000 | (24,247) | 35,753 |
MRH Splashdown 20 | 303,450 | (118,008) | 185,442 |
MRH Three Jewels | 240,000 | (102,889) | 137,111 |
MRH Celebrity News | 63,000 | (35,458) | 27,542 |
MRH Chasing Time | 262,500 | (148,437) | 114,063 |
MRH Classic Cut | 252,000 | (117,194) | 134,806 |
MRH Cumberland Falls | 51,188 | (10,320) | 40,867 |
MRH Deep Cover | 82,000 | (75,504) | 6,496 |
MRH Duke of Love | 89,250 | (48,269) | 40,981 |
MRH Enchante 21 | 299,220 | (29,645) | 269,575 |
MRH Forbidden Kingdom | 153,000 | (117,867) | 35,133 |
MRH Forever Rose | 118,142 | (22,628) | 95,515 |
MRH Frosted Oats | 102,500 | (78,488) | 24,012 |
MRH Future Stars Stable | 335,500 | (301,206) | 34,294 |
MRH Helicopter Money | 39,375 | (7,073) | 32,302 |
MRH Hero Status | 170,100 | (101,511) | 68,589 |
MRH Infinite Empire | 147,600 | (113,023) | 34,577 |
MRH Inspector | 94,500 | (21,963) | 72,538 |
MRH Iron Works | 294,525 | (166,547) | 127,978 |
MRH Ishvana 21 | 125,000 | (10,880) | 114,120 |
MRH Kanthari | 307,913 | (181,823) | 126,090 |
F-8 |
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through December 31, 2022 | Total |
MRH Kindle 21 | $ 157,500 | $ (15,458) | $ 142,042 |
MRH Knarsdale 21 | 275,000 | (28,875) | 246,125 |
MRH Lady Blitz | 336,000 | (44,559) | 291,441 |
MRH Lane Way | 392,932 | (381,627) | 11,305 |
MRH Magical Ways | 252,000 | (142,278) | 109,722 |
MRH Man Among Men | 147,600 | (113,023) | 34,577 |
MRH Micro Share | 240,975 | (136,053) | 104,922 |
MRH Miss Sakamoto | 157,500 | (88,924) | 68,576 |
MRH Mo Temptation | 110,250 | (22,327) | 87,923 |
MRH Mrs Whistler | 84,000 | (47,352) | 36,648 |
MRH Naismith | 164,250 | (127,868) | 36,382 |
MRH NY-Psychedelic Shack | 80,000 | (65,520) | 14,480 |
MRH NY-Quick Conversation | 135,000 | (110,565) | 24,435 |
MRH One Fast Dream | 105,000 | (19,833) | 85,167 |
MRH One Last Night 21 | 135,684 | (17,994) | 117,690 |
MRH Phantom Ride | 100,800 | (23,240) | 77,560 |
MRH Pioneer Prince | 262,500 | (49,097) | 213,403 |
MRH Rosie's Alibi | 656,250 | (305,192) | 351,058 |
MRH Salute to America | 84,000 | (45,430) | 38,570 |
MRH Sarrocchi 21 | 288,750 | (29,142) | 259,608 |
MRH Search Engine | 334,688 | (188,668) | 146,020 |
MRH Secret Crush | 315,000 | (31,500) | 283,500 |
MRH Seize the Grey | 315,000 | (41,774) | 273,226 |
MRH Sixtythreecaliber | 125,000 | (95,486) | 29,514 |
MRH Song of the Lark 21 | 160,650 | (15,916) | 144,734 |
MRH Stay Fabulous | 118,125 | (22,094) | 96,031 |
MRH Straight No Chaser | 115,500 | (62,466) | 53,034 |
MRH Sun Valley Road | 39,375 | (16,901) | 22,474 |
MRH Tap the Gavel | 241,500 | (136,137) | 105,363 |
MRH La Cuvee 21 | 51,081 | (4,352) | 46,729 |
MRH San Saria 21 | 462,500 | (46,678) | 415,822 |
MRH Thirteen Stripes | 100,000 | (85,093) | 14,907 |
MRH Tufnel | 163,800 | (67,362) | 96,438 |
MRH Vow | 147,000 | (82,866) | 64,134 |
MRH War Safe | 94,500 | (48,607) | 45,893 |
MRH Who Runs the World | 321,300 | (149,134) | 172,166 |
TOTAL | $ 17,659,407 | $ (9,343,059) | $ 8,316,347 |
F-9 |
Fair Value of Financial Instruments
Financial Accounting Standards Board (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).
Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.
The carrying amounts reported in the balance sheets approximate their fair value.
Revenue Recognition
ASC Topic 606, “Revenue from Contracts with Customers” establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company’s contracts to provide goods to customers. Revenues are recognized when control of the promised goods are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted January 1, 2019 and applied to the periods presented using the full retrospective method. The Company generally recognizes revenues upon earning income from its horses.
Certain of the Company’s Series are under contracts that require payments to be made in advance of future sales proceeds if and upon achievement of certain milestones. These payments will be recognized to realized gains/(losses) in the statements of operation upon sale of the associated horses. The amount held in deferred revenue as of December 31, 2022 and 2021 was $60,000 and $0, respectively.
Costs of Revenues
Costs of revenues include horse related expenses such as insurance, photography, stables and training, transportation and veterinary, depreciation, and gains/losses on horse disposals.
Advertising Expenses
The Company expenses advertising costs as they are incurred.
F-10 |
Income Taxes
The Company is a limited liability company. Accordingly, under the Internal Revenue Code (IRC), all taxable income or loss flows through to its members. Therefore, no provision for income tax has been recorded in the statements. Income from the Company is reported and taxed to the members on their individual tax returns. However, the Company has elected, in accordance with IRC, to treat each of the individual series as separate subchapter C corporations for tax purposes. No tax provision has been recorded for any series through the balance sheet date as each is in a taxable loss position and no future tax benefits can be reasonably anticipated. The Company complies with FASB ASC 740 for accounting for uncertainty in income taxes recognized in a company’s financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. FASB ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.
The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception. The Company is not presently subject to any income tax audit in any taxing jurisdiction.
Reclassifications of Prior Year Balances
Certain amounts in the 2021 financial statements were reclassified to conform to current period presentation. There was no change in the Company’s net loss or net equity position from these reclassifications.
NOTE 3: GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a business that has not yet generated profits since inception, has sustained a net loss of $8,494,334 during the year ended December 31, 2022, and is dependent upon its Manager for financing its operations. The Company’s financial performance is impacted by several key factors. Expenses such as training and care, veterinary, and depreciation are incurred from the date of acquisition; however, series revenues will not commence until the horses begin racing sometime during their two-year-old season. Additionally, as horses continue to mature, the series will have increased opportunity to generate greater revenue to offset their ongoing expenses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.
In making this assessment, management weighed the significance of the factors, conditions, and events considered. Management based the conclusion primarily on the inception-to-date cumulative losses. These factors were determined to be the primary drivers of the Company’s ability to sustain its operating costs in the near term. Management also performed an analysis of its operations through the issuance of these financial statements and funding options currently available to it, including a line of credit available to its Manager and its Manager’s ability and intent to fund any operational needs for the coming year.
Management concluded that its plans successfully alleviate the substantial doubt to the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued. No assurance can be given that the Company will be successful in these efforts. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
F-11 |
NOTE 4: ADVANCES FROM MANAGER
To fund its organizational and start-up activities as well as to advance funds on behalf of a series to purchase horse assets, the Manager has covered the expenses and costs of the Company and its series thus far on an interest-bearing revolving line of credit. The Manager is entitled to 2.38% interest on the outstanding balance as well as profit participation on the unsold shares. To date, the Manager has waived the interest due from the series. The Company will evaluate when is best to repay the Manager depending on operations and fundraising ability. In general, the Company will repay the Manager for funds extended to acquire horse assets from the series subscription proceeds (less the applicable management fee), as they are received. Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations.
In the table below, the Company outlines the positions of borrowings and amounts owed to it by the Manager:
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition Manager) | Net amount owed to/(by) Series |
Edge Bajan Bashert | $ 18,982 | $ (25,800) | $ (6,818) |
Edge Captain Sparrow | 7,715 | – | 7,715 |
Edge Dancing Crane | (600) | – | (600) |
Edge Demogorgon | 4,134 | 4,134 | |
Edge Escape Route | (8,247) | – | (8,247) |
Edge Gentleman Gerry | (1,948) | – | (1,948) |
Edge Golden Quality | (2,400) | – | (2,400) |
Edge Halofied | 11,542 | – | 11,542 |
F-12 |
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series |
Edge Heaven Street | $ 12,682 | $ – | $ 12,682 |
Edge In Due Time | (4,876) | – | (4,876) |
Edge Interstellar | (3,280) | – | (3,280) |
Edge Jai Ho | 12,438 | – | 12,438 |
Edge National Road | 2,500 | – | 2,500 |
Edge Our Jenny B 21 | 46,528 | (59,880) | (13,352) |
Edge Pep Rally | (7,991) | – | (7,991) |
Edge Spun Intended | 1,262 | – | 1,262 |
Edge Summer Fun-d 1 | 9,515 | – | 9,515 |
ESF-Lady Quinn | 13,066 | – | 13,066 |
ESF-Picture of a Lady | (2,880) | – | (2,880) |
ESF-Swift Tap | 72,812 | – | 72,812 |
Edge Tepeu | (4,467) | – | (4,467) |
Edge Twirl Girl 21 | 47,677 | (87,165) | (39,488) |
Edge Walk the Talk | (600) | – | (600) |
Edge Yes This Time | (7,183) | – | (7,183) |
MRH Above Suspicion | 8,080 | – | 8,080 |
MRH Always Hopeful | 26,621 | – | 26,621 |
MRH Authentic | (189,569) | – | (189,569) |
MRH Balletic | 87,248 | – | 87,248 |
MRH Boppy | 21,923 | – | 21,923 |
MRH Cable Boss | 63,107 | – | 63,107 |
MRH CB Bundle | 329,168 | 603,450 | 932,618 |
MRH CB-Ein Gedi | (48,772) | (303,450) | (352,222) |
MRH CB-Night Combat | (44,487) | (60,000) | (104,487) |
MRH CB-Three Jewels | (45,942) | (240,000) | (285,942) |
MRH Celebrity News | 25,280 | – | 25,280 |
MRH Chasing Time | 25,082 | – | 25,082 |
MRH Classic Cut | 99,394 | – | 99,394 |
MRH Cumberland Falls | 89,716 | – | 89,716 |
MRH Deep Cover | 1,880 | – | 1,880 |
MRH Duke of Love | 39,504 | – | 39,504 |
MRH Enchante 21 | 142,831 | (271,512) | (128,681) |
MRH Forbidden Kingdom | (3,896) | – | (3,896) |
MRH Forever Rose | (18,468) | (118,142) | (136,610) |
MRH Frosted Oats | 16,733 | – | 16,733 |
MRH Future Stars Stable | 103,891 | – | 103,891 |
F-13 |
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series |
MRH Helicopter Money | $ 91,770 | $ – | $ 91,770 |
MRH Hero Status | 42,004 | – | 42,004 |
MRH Infinite Empire | 10,224 | – | 10,224 |
MRH Inspector | 65,134 | – | 65,134 |
MRH Iron Works | 60,565 | – | 60,565 |
MRH Ishvana 21 | (15,282) | (125,000) | (140,282) |
MRH Kanthari | 22,438 | – | 22,438 |
MRH Kindle 21 | 102,460 | (271,250) | (168,790) |
MRH Knarsdale 21 | (15,989) | (275,000) | (290,989) |
MRH Lady Blitz | 149,796 | (105,838) | 43,958 |
MRH Lane Way | 32,677 | – | 32,677 |
MRH Magical Ways | 46,476 | – | 46,476 |
MRH Man Among Men | 10,335 | – | 10,335 |
MRH Micro Share | 48,528 | – | 48,528 |
MRH Miss Sakamoto | 35,662 | 46 | 35,708 |
MRH Mo Temptation | 96,399 | – | 96,399 |
MRH Mrs Whistler | 57,298 | 349 | 57,647 |
MRH Naismith | (41,193) | – | (41,193) |
MRH NY Exacta | (35) | – | (35) |
MRH NY-Psychedelic Shack | (49,354) | – | (49,354) |
MRH NY-Quick Conversation | (8,729) | – | (8,729) |
MRH Ocean Magic 18 | (6,171) | – | (6,171) |
MRH One Fast Dream | 125,712 | – | 125,712 |
MRH One Last Night 21 | 104,736 | (144,666) | (39,930) |
MRH Phantom Ride | 70,575 | – | 70,575 |
MRH Pioneer Prince | 154,796 | – | 154,796 |
MRH Rosie's Alibi | 95,726 | – | 95,726 |
MRH Salute to America | 46,947 | – | 46,947 |
MRH Sarrocchi 21 | 183,394 | (59,619) | 123,774 |
MRH Search Engine | 43,029 | – | 43,029 |
MRH Secret Crush | 157,696 | (112,046) | 45,649 |
MRH Seize the Grey | 144,006 | – | 144,006 |
MRH Sixtythreecaliber | 25,172 | – | 25,172 |
MRH Song of the Lark 21 | 95,883 | (46,375) | 49,507 |
MRH Stay Fabulous | 96,414 | (794) | 95,620 |
MRH Straight No Chaser | 65,637 | – | 65,637 |
MRH Sun Valley Road | 19,535 | 103 | 19,638 |
F-14 |
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series |
MRH Tap the Gavel | $ 51,353 | $ – | $ 51,353 |
MRH The Royal Duet | (15,095) | – | (15,095) |
MRH La Cuvee 21 | (1,954) | (51,081) | (53,035) |
MRH San Saria 21 | 14,988 | (490,250) | (475,262) |
MRH Thirteen Stripes | (13,938) | – | (13,938) |
MRH Tizamagician | 13,911 | – | 13,911 |
MRH Tufnel | 59,914 | – | 59,914 |
MRH Vow | 63,922 | – | 63,922 |
MRH War Safe | 62,106 | – | 62,106 |
MRH Who Runs the World | 70,211 | – | 70,211 |
P-Edge Madeira Wine | 2,146 | – | 2,146 |
P-Edge Sunsanddrinkinhand | 666 | – | 666 |
P-MRH A Mo Reay | 70,470 | – | 70,470 |
P-MRH Carrothers | 21,631 | – | 21,631 |
P-MRH Cornice Traverse | 64,741 | – | 64,741 |
P-MRH Dolce Notte | 37,483 | – | 37,483 |
P-MRH Filly Four | (309,560) | – | (309,560) |
FF-MRH Joyful Addiction | 2,082 | – | 2,082 |
FF-MRH Lady Valentine | 1,535 | – | 1,535 |
FF-MRH Moonlight d'Oro | 364,201 | – | 364,201 |
FF-MRH Shared Empire | (25,581) | – | (25,581) |
P-MRH Going to Vegas | 550,138 | – | 550,138 |
P-MRH Provocateur | 31,124 | – | 31,124 |
TOTAL | $ 4,226,464 | $ (2,243,920) | $ 1,982,544 |
All Series not presented in the table above had $0 balances due to/from the Manager as of December 31, 2022. During 2022, the Manager forgave $106,205 of balances due to it.
F-15 |
NOTE 5: LOANS PAYABLE – RELATED PARTY
The Company acquired the horse asset in the MRH Palace Foal series via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The convertible profit participating loan bears a 2.38 percent per annum interest rate and is due either when the MRH Palace Foal series is fully subscribed or converted into the unsold units of the MRH Palace Foal. During the time the convertible profit participating loan is outstanding, the underlying cash flow of the MRH Palace Foal series accrues to the loan holder. $15,606 was outstanding on this loan as of both December 31, 2022 and 2021.
In 2020, with the purchase of the MRH Authentic horse asset the Company agreed to pay purchase (kickers) upon the achievement of certain milestones. Kickers of $2,443,750 were earned in 2020 and were recognized as a loan payable obligation to the co-owner Spendthrift Farm LLC, a related party, and capitalized as additional horse asset purchase costs. The loan is to be repaid out of the underlying horse income, net of expenses incurred by the co-owner resulting from the horse’s breeding career. The loan bears interest at 1.65%. The net horse income applied against this loan in 2021 was $0 and interest expense of $28,340 was recorded against this loan in 2021. The net horse income applied as repayments against this loan in 2022 was $644,503 and interest expense of $29,111 was recorded against this loan in 2022. As of December 31, 2022 and 2021, the outstanding balance of the loan was $1,278,082 and $1,893,474, respectively.
The Company’s Manager was entitled to certain unpaid management fees related to the MRH Authentic horse, which totaled $213,958 and $0 in 2022 and 2021, respectively, and remained outstanding to the Manager for a total amount of $288,958 and $75,000 as of December 31, 2022 and 2021, respectively.
In conjunction with the purchase of the Filly Four series, a portion of the horse purchase price amounting to $534,920 was deferred to be paid out to the co-owner Spendthrift Farm LLC, a related party, from future income from the residual value resulting from the sale of the horse(s). The balance outstanding as of December 31, 2021 was $446,051. The related party forgave principal of $247,649 and accrued interest of $26,869 for total loan forgiveness of $274,518 during the year ended December 31, 2022. The balance of the loan of $198,401 and accrued interest of $23,319 was repaid in 2022.
The Company’s Manager and another related party, Spendthrift Farm LLC paid certain training costs on behalf of the Company during 2021 and 2022. As of December 31, 2022 and 2021, $609,814 and $592,676 remained outstanding on these agreements, respectively. The note will be repaid at the close of the series from the residual value upon the sale of the horse. During the year ended December 31, 2022 loans balances of $117,006 were forgiven, loan balances of $479,298 were repaid, and costs of $613,443 were incurred against these loans.
Interest expense totaled $33,231 and $57,279 for the years ended December 31, 2022 and 2021, respectively.
NOTE 6: MEMBERS’ EQUITY
Series Subscriptions
The Company has received membership subscriptions for the following LLC series as of December 31, 2022.
Series Name | Units Offered | Units Tendered | Series Subscriptions |
Edge Bajan Bashert | 16 | 13 | $ 130,000 |
Edge Captain Sparrow | 10 | 10 | 112,000 |
Edge Dancing Crane | 20 | 20 | 122,000 |
Edge Demogorgon | 20 | 20 | 128,000 |
Edge Escape Route | 10 | 10 | 62,952 |
Edge Gentleman Gerry | 20 | 20 | 155,000 |
F-16 |
Series Name | Units Offered | Units Tendered | Series Subscriptions |
Edge Golden Quality | 20 | 20 | $ 140,000 |
Edge Halofied | 20 | 20 | 100,000 |
Edge Heaven Street | 20 | 20 | 150,000 |
Edge In Due Time | 20 | 20 | 150,000 |
Edge Interstellar | 12 | 12 | 93,000 |
Edge Jai Ho | 10 | 10 | 135,000 |
Edge National Road | 20 | 20 | 140,000 |
Edge Our Jenny B 21 | 20 | 9 | 54,000 |
Edge Pep Rally | 20 | 20 | 140,000 |
Edge Spun Intended | 10 | 10 | 100,000 |
Edge Summer Fun-d 1 | 50 | 50 | 250,000 |
Edge Tepeu | 20 | 20 | 170,000 |
Edge Twirl Girl 21 | 20 | 7 | 52,500 |
Edge Walk the Talk | 12 | 12 | 126,000 |
Edge Yes This Time | 10 | 10 | 129,520 |
MRH Above Suspicion | 820 | 820 | 138,580 |
MRH Always Hopeful | 1,020 | 1,020 | 205,020 |
MRH Authentic | 12,500 | 12,500 | 2,575,000 |
MRH Balletic | 10,000 | 10,000 | 800,000 |
MRH Boppy | 750 | 750 | 101,250 |
MRH Cable Boss | 5,100 | 5,100 | 494,700 |
MRH CB Bundle | 5,000 | 5,000 | 1,170,000 |
MRH Celebrity News | 1,200 | 1,200 | 187,200 |
MRH Chasing Time | 10,000 | 10,000 | 520,000 |
MRH Classic Cut | 10,000 | 10,000 | 510,000 |
MRH Cumberland Falls | 2,500 | 2,500 | 215,000 |
MRH Daddy's Joy | 600 | 600 | 108,000 |
MRH Deep Cover | 800 | 800 | 176,000 |
MRH Duke of Love | 2,000 | 2,000 | 284,000 |
MRH Enchante 21 | 6,000 | 2,461 | 243,639 |
MRH Forbidden Kingdom | 1,020 | 1,020 | 233,580 |
MRH Forever Rose | 1,250 | – | – |
MRH Frosted Oats | 4,100 | 4,100 | 172,200 |
MRH Future Stars Stable | 10,000 | 10,000 | 500,000 |
MRH Helicopter Money | 3,000 | 3,000 | 201,000 |
MRH Hero Status | 6,000 | 6,000 | 348,000 |
MRH Infinite Empire | 820 | 820 | 223,860 |
MRH Inspector | 1,200 | 1,200 | 242,400 |
F-17 |
Series Name | Units Offered | Units Tendered | Series Subscriptions |
MRH Iron Works | 5,100 | 5,100 | $ 453,900 |
MRH Kanthari | 5,100 | 5,100 | 433,500 |
MRH Lady Blitz | 5,000 | 3,973 | 528,409 |
MRH Lane Way | 6,000 | 6,000 | 540,000 |
MRH Magical Ways | 6,000 | 6,000 | 450,000 |
MRH Man Among Men | 820 | 820 | 223,860 |
MRH Micro Share | 5,100 | 5,100 | 377,400 |
MRH Miss Sakamoto | 6,000 | 6,001 | 324,054 |
MRH Mo Temptation | 3,500 | 3,500 | 304,500 |
MRH Mrs Whistler | 2,000 | 2,003 | 274,411 |
MRH Naismith | 2,000 | 2,000 | 304,000 |
MRH NY Exacta | 2,000 | 2,000 | 456,000 |
MRH One Fast Dream | 2000 | 2000 | 330,000 |
MRH One Last Night 21 | 3,000 | 1,348 | 152,324 |
MRH Phantom Ride | 3,000 | 3,000 | 252,000 |
MRH Pioneer Prince | 4,000 | 4,000 | 580,000 |
MRH Rosie's Alibi | 10,000 | 10,000 | 1,050,000 |
MRH Salute to America | 1,000 | 1,000 | 273,000 |
MRH Sarrocchi 21 | 5,000 | 4,399 | 563,072 |
MRH Search Engine | 5,100 | 5,100 | 540,600 |
MRH Secret Crush | 10,000 | 7,741 | 495,424 |
MRH Seize the Grey | 5,000 | 5,000 | 635,000 |
MRH Sixtythreecaliber | 1,000 | 1,000 | 193,000 |
MRH Song of the Lark 21 | 2,550 | 2,113 | 289,481 |
MRH Stay Fabulous | 2,500 | 2,492 | 309,008 |
MRH Straight No Chaser | 2,000 | 2,000 | 332,000 |
MRH Sun Valley Road | 750 | 751 | 90,871 |
MRH Tap the Gavel | 10,000 | 10,000 | 490,000 |
MRH Thirteen Stripes | 1,000 | 1,000 | 229,000 |
MRH Tizamagician | 600 | 600 | 192,000 |
MRH Tufnel | 5,200 | 5,200 | 322,400 |
MRH Vow | 2,000 | 2,000 | 358,000 |
MRH War Safe | 2,000 | 2,000 | 292,000 |
MRH Who Runs the World | 5,100 | 5,100 | 530,400 |
P-Action Bundle | 10,000 | 10,000 | 310,000 |
P-Edge Madeira Wine | 20 | 20 | 50,000 |
P-Edge Sunsanddrinkinhand | 20 | 20 | 100,000 |
P-MRH A Mo Reay | 820 | 820 | 246,820 |
F-18 |
Series Name | Units Offered | Units Tendered | Series Subscriptions |
P-MRH American Heiress | 5,100 | 5,100 | $ 510,000 |
P-MRH Bella Chica | 100 | 100 | 38,000 |
P-MRH Big Mel | 6,000 | 6,000 | 726,000 |
P-MRH Can't Hush This | 1,800 | 1,800 | 295,200 |
P-MRH Carpe Vinum | 600 | 600 | 192,000 |
P-MRH Carrothers | 5,100 | 5,100 | 515,100 |
P-MRH Collusion Illusion | 25,000 | 25,000 | 750,000 |
P-MRH Cornice Traverse | 750 | 750 | 335,250 |
P-MRH Dolce Notte | 820 | 820 | 121,360 |
P-MRH Filly Four | 8,000 | 8,000 | 1,440,000 |
P-MRH Going to Vegas | 5,100 | 5,100 | 438,600 |
P-MRH Howboutdemapples | 600 | 600 | 103,800 |
P-MRH Inalattetrouble | 4,100 | 4,100 | 143,500 |
P-MRH Laforgia | 10,200 | 10,200 | 357,000 |
P-MRH Lookwhogotlucky | 410 | 410 | 84,050 |
P-MRH Malibu Mayhem | 650 | 650 | 250,900 |
P-MRH Miss Puzzle | 125 | 125 | 31,250 |
P-MRH Mo Mischief | 5,100 | 5,100 | 382,500 |
P-MRH Popular Demand | 1,020 | 1,020 | 248,880 |
P-MRH Power Up Paynter | 600 | 600 | 114,000 |
P-MRH Provocateur | 4100 | 4100 | 373,100 |
P-MRH Quantum Theory | 1800 | 1800 | 84,600 |
P-MRH Regal Rebel | 2000 | 2000 | 330,000 |
P-MRH Sacred Beauty | 410 | 410 | 64,370 |
P-MRH Show Your Cards | 3000 | 3000 | 495,000 |
P-MRH Star Six Nine | 10000 | 10000 | 370,000 |
P-MRH Storm Shooter | 2000 | 2000 | 324,000 |
P-MRH Two Trail Sioux 17K | 1 | 1 | 29,720 |
P-MRH Utalknboutpractice | 100 | 100 | 30,000 |
P-MRH Vertical Threat | 600 | 600 | 126,000 |
Retired-MRH | 11915 | 2655 | 573,050 |
Z-Motion Emotion | 1020 | 1020 | 85,680 |
Z-MRH Amandrea | 550 | 550 | 162,250 |
Z-MRH Ancient Royalty | 900 | 900 | 125,100 |
Z-MRH Annahilate | 450 | 450 | 135,000 |
Z-MRH Got Stormy | 5100 | 5100 | 229,500 |
Z-MRH Kichiro | 200 | 200 | 26,000 |
Z-MRH Lazy Daisy | 1250 | 1250 | 143,750 |
F-19 |
Series Name | Units Offered | Units Tendered | Series Subscriptions |
Z-MRH Monomoy Girl | 10200 | 10200 | $ 469,200 |
Z-MRH Sigesmund | 200 | 200 | 20,000 |
Z-MRH Social Dilemma | 510 | 510 | 85,170 |
Z-MRH Solar Strike | 6000 | 6000 | 390,000 |
Z-MRH Squared Straight | 150 | 150 | 40,500 |
Z-MRH Wayne O | 6000 | 6000 | 570,000 |
Total | $ 38,525,215 | ||
Less: Distributions to Date | 6,520,796 | ||
Net of Distributions | $ 32,004,419 |
The members of each of the Company’s series have certain rights with respect to the membership series they are subscribed to. Each series generally holds a single horse asset. A series member is entitled to their pro rata share of the net profits derived from the horse asset held in that series after deduction of expense allocations and direct expenses attributable to the underlying horse asset, based on their percentage of the total outstanding membership interests in that series.
Distributions are recorded when declared. When a declared distribution is not yet paid as of a balance sheet date, it is recorded as a distribution payable liability. Distributions payable amounted to $716,840 and $0 as of December 31, 2022 and 2021, respectively.
The debts, obligations, and liabilities of the Company, whether arising in contract, tort, or otherwise, are solely the debts, obligations, and liabilities of the Company, and no member of the Company is obligated personally for any such debt, obligation, or liability.
NOTE 7: RELATED PARTY TRANSACTIONS
The Company’s Manager has advanced funds to and holds cash reserves on behalf of various of the Company’s series funds. See Note 4 for further discussions.
The Company has various loans outstanding with related parties, as described in Note 5.
Because these are related party transactions, no guarantee can be made that the terms of the arrangements are at arm’s length.
NOTE 8: RECENT ACCOUNTING PRONOUNCEMENTS
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU is effective for annual and interim periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard in 2022 and it had no effect on the Company’s financial statements.
Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.
F-20 |
NOTE 9: COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS
Legal Matters
Company is not currently involved with and does not know of any pending or threatening litigation against the Company or its member.
Long-Term Debt
The Company acquired the horse asset in the MRH Palace Foal series via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The convertible profit participating loan that bears a 2.38 percent per annum interest rate is due either when the MRH Palace Foal series is fully subscribed or converted into the unsold units of the MRH Palace Foal.
During the time the convertible profit participating loan is outstanding, the underlying cash flow of the MRH Palace Foal series accrues to the loan holder.
NOTE 10: SUBSEQUENT EVENTS
Anticipated Crowdfunded Offering
The Company is planning to continue to raise capital through the issuance of securities exempt from registration under Regulation A in 2023.
Management’s Evaluation
Management has evaluated subsequent events through April 12, 2023, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these financial statements.
F-21 |
106 |
107 |
108 |
109 |
110 |
111 |
112 |
__________________
* | Filed herewith. |
(1) | Filed with the Company’s Form 1-A dated September 10, 2018 and incorporated by reference herein. | |
(2) | Filed with the Company’s Amendment No. 1 to Form 1-A dated November 20, 2018 and incorporated by reference herein. | |
(3) | Filed with the Company’s Post-Qualification Amendment No. 1 to Form 1-A dated April 18, 2019 and incorporated by reference herein. | |
(4) | Filed with the Company’s Post-Qualification Amendment No. 3 to Form 1-A dated June 25, 2019 and incorporated by reference herein. | |
(5) | Filed with the Company’s Post-Qualification Amendment No. 4 to Form 1-A dated July 19, 2019 and incorporated by reference herein. | |
(6) | Filed with the Company’s Post Qualification Amendment No. 5 to Form 1-A dated August 28, 2019 and incorporated by reference herein. | |
(7) | Filed with the Company’s Post Qualification Amendment No. 6 to Form 1-A dated October 3, 2019 and incorporated by reference herein. | |
(8) | Filed with the Company’s Post Qualification Amendment No. 7 to Form 1-A dated December 6, 2019 and incorporated by reference herein. | |
(9) | Filed with the Company’s Post Qualification Amendment No. 8 to Form 1-A dated February 7, 2020 and incorporated by reference herein. | |
(10) | Filed with the Company’s Post Qualification Amendment No. 9 to Form 1-A dated April 7, 2020 and incorporated by reference herein. | |
(11) | Filed with the Company’s Post Qualification Amendment No. 11 to Form 1-A dated May 29, 2020 and incorporated by reference herein. | |
(12) | Filed with the Company’s Post Qualification Amendment No. 12 to Form 1-A dated June 12, 2020 and incorporated by reference herein. | |
(13) | Filed with the Company’s Post Qualification Amendment No. 13 to Form 1-A dated July 15, 2020 and incorporated by reference herein. | |
(14) | Filed with the Company’s Post Qualification Amendment No. 14 to Form 1-A dated July 31, 2020 and incorporated by reference herein. | |
(15) | Filed with the Company’s Post Qualification Amendment No. 16 to Form 1-A dated September 22, 2020 and incorporated by reference herein. | |
(16) | Filed with the Company’s Post Qualification Amendment No. 19 to Form 1-A dated November 3, 2020 and incorporated by reference herein. | |
(17) | Filed with the Company’s Post Qualification Amendment No. 20 to Form 1-A dated December 18, 2020 and incorporated by reference herein. | |
(18) | Filed with the Company’s Post Qualification Amendment No. 22 to Form 1-A dated March 2, 2021 and incorporated by reference herein. | |
(19) | Filed with the Company’s Post Qualification Amendment No. 24 to Form 1-A dated April 20, 2021 and incorporated by reference herein. | |
(20) | Filed with the Company’s Post Qualification Amendment No. 24 to Form 1-A dated April 30, 2021 and incorporated by reference herein. | |
(21) | Filed with the Company’s Post Qualification Amendment No. 27 to Form 1-A dated June 14, 2021 and incorporated by reference herein | |
(22) | Filed with the Company’s Post Qualification Amendment No. 28 to Form 1-A dated September 3, 2021 and incorporated by reference herein. | |
(23) | Filed with the Company’s Post Qualification Amendment No. 31 to Form 1-A dated December 6, 2021 and incorporated by reference herein | |
(24) | Filed with the Company’s Post Qualification Amendment No. 32 to Form 1-A dated January 11, 2022 and incorporated by reference herein | |
(25) | Filed with the Company’s Form 1-A dated February 22, 2022 and incorporated by reference herein | |
(26) | Filed with the Company’s Post Qualification Amendment No. 1 to Form 1-A dated May 6, 2022 and incorporated by reference herein. | |
(27) | Filed with the Company’s Post Qualification Amendment No. 2 to Form 1-A dated June 24, 2022 and incorporated by reference herein. | |
(28) | Filed with the Company’s Post Qualification Amendment No. 5 to Form 1-A dated August 22, 2022 and incorporated by reference herein. | |
(29) | Filed with the Company’s Post Qualification Amendment No. 6 to Form 1-A dated September 16, 2022 and incorporated by reference herein. | |
(30) | Filed with the Company’s Post Qualification Amendment No. 7 to Form 1-A dated October 27, 2022 and incorporated by reference herein. | |
(31) | Filed with the Company’s Post Qualification Amendment No. 9 to Form 1-A, dated February 17, 2023 and incorporated by reference. | |
113 |
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: April 26, 2023 | MY RACEHORSE CA LLC |
By: Experiential Squared, Inc., its Manager | |
By: /s/ Michael Behrens | |
Name: Michael Behrens | |
Title: Chief Executive Officer |
Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.
Signature | Title | Date |
/s/ Michael Behrens Name: Michael Behrens | Chief Executive Officer, Chief Financial Officer and Secretary of Experiential Squared, Inc. (Principal Executive Officer and Principal Financial Officer)
| April 26, 2023 |
MY RACEHORSE CA LLC
By: /s/ Michael Behrens Name: Michael Behrens Title: Chief Executive Officer | Manager | April 26, 2023 |
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