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THE ORIGINAL PORTABLE PROPANE COOKER

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Page 1: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

THE ORIGINAL PORTABLE PROPANE COOKER

Page 2: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

CONFIDENTIAL Information Overview MEMORANDUM

COMPANY TImeline

• Founded in 2010 and headquartered in Houston, TX, FIREDISC Cookers is a family-owned, fast-growing brand of portable grills and accessories that sells primarily online.

• Co-founders Griff Jaggard and Hunter Jaggard are the majority shareholders.

• The company has an estimated Pro Forma FYE 2020 revenue of $4.8 million, with successive increases at a CAGR of 10% annually going forward.

• FIREDISC Cookers is seeking a capital injection via a preferred share issuance of a minimum of $5 million to fund working capital and increased scaling of its "direct-to-consumer" online sales efforts.

• Based on 12/31/20E, total net leverage is expected at 0.0x due to the company's focus on funding growth through this preferred issuance.

2010: The company was founded by Griff & Hunter Jaggard out of their passion to create portable, high-quality outdoor grills.

2018: The company crosses $2.6 million in sales.

2019: Family Offices 3CHA & Attack It invest simultaneously into the business.

• Company refocuses onto "DTC" (direct-to-consumer) sales channel via online marketplaces (Amazon/Walmart), and direct online marketing (Pinterest/YouTube/Instagram).

• May 2020 YTD DTC results in $1 million online channel sales, with a forecasted $4.8 million in total sales by YE.

• DTC Margins 47%, with direct sales and immediate payment

Explosive growth across all demographics via recent switch to "direct-to-consumer" sales channel

FIREDISC Cookers Inc. Minimum $5,000,000 Equity Capital Raise

Unique user experience that provides for a broad, loyal customer base reinforced by brand ambassadors

Market disruptor in the outdoor & lifestyle grill sectors with an innovative, patent-protected grill and accessories platform

High-quality, multi-product branded portfolio with multi-channel customer acquisition and direct delivery

Sustainable financial performance

Experienced and proven management team

COMPANY & TRANSACTION OVERVIEW

2010-2019: INCEPTION & EXPANSION

KEY INVESTMENT HIGHLIGHTS

2020 & BEYOND: GROWTH

Page 3: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

HISTORICAL OVERVIEW of MARKETING EFFORTSAt the inception of the FIREDISC brand, the creative direction and messaging were positioned around the hunting, f ishing, camping and outdoor enthusiast. A focus on product durabi l i ty and portabi l i ty, as wel l as the versat i l i ty of the meals that can be prepared on the FIREDISC cooker, drove messaging effor ts . With over 44 mi l l ion outdoor enthusiasts nat ionwide and the Jaggard Brothers' passion for the outdoors, this seemed l ike the logical market to target with this product.

Current OUTDOOR RECREATION MarketIn 2017, the Outdoor Industry Associat ion reported that the outdoor recreat ion economy represents is an $887 BilliON market.

• Outdoor recreat ional products account for $184.5 bi l l ion. • Hunting accounts for $27.3 bi l l ion in direct outdoor spending. • Fishing accounts for $35.7 bi l l ion in direct outdoor spending. • Camping accounts for $166.8 bi l l ion in direct outdoor spending. • Outdoor recreat ion accounts for 7.8 mi l l ion jobs. • More Americans are employed by hunting & f ishing (483k) than oi l and gas extract ion ( 180k).

In the outdoor industry, the tradit ional go-to market strategy is focused around the retai l d istr ibut ion model . FIREDISC began bui lding i ts retai l partners and quickly amassed a distr ibut ion network with over 500 retai lers.

• Ace Hardware • True Value • Orgill • Buc-ee’s • Dunham's Sports

• RV: The RV market is current ly an $80 bi l l ion market. In 2017, the RV market was project ing an average of 20% annual growth

• CAMPING: Approximately 40 mi l l ion people go camping in the US each year.

• HUNTING: Enthusiasts spend a total of $33.7 bi l l ion annual ly on hunting products and services.

• FISHING: 46 mi l l ion l icensed anglers generate over $48 bi l l ion in retai l sales annual ly.

• BOATING & MARINE: Recreat ional boat ing in the U.S. has an annual economic value of $121 .5 bi l l ion.

• BACKYARD: 75% of a l l U.S. households own a gr i l l or smoker. 79.1 mi l l ion Americans gr i l led out in the past year.

• TAILGATING: There are an estimated 50 million tailgaters in the United States.

All referred statistical information taken from the 2017 Outdoor Recreation Study completed by the Outdoor Industry Association.

COOKER BundlesWhether you’re an advanced outdoorsman or an outdoor cooking hobbyist, the experts at FIREDISC have carefully curated a bundle full of high-quality cooking equipment to fit all your needs. Find the one that’s right for you and start cooking!

GIFT BUNDLE BACKYARD BUNDLE TAILGATING BUNDLEACCESSORY BUNDLE

Page 4: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

NATIONAL SALES COVERAGE

HISTORICAL & PROJECTED REVENUE & Earnings Before Tax

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

$35M

$30M

$25M

$20M

$15M

$10M

$5M

$5M

Revenue Gross Profit Earnings Before Tax

SHIPPING HEAT MAP as of June 30, 2020

Page 5: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

ISSUER FIREDISC Cookers Inc.

INVESTMENT FACILITY Minimum $5,000,000 preferred shares. This sum can also be combined with a co-issue common shares allotment. Final offers to be negotiated.

ACCORDION NONE

COLLATERAL All tangible and intangible assets of issuers, with subsidiary and equity interests of all material and immaterial subsidiaries

SECURITY With the exception of subordination to current or future first lien debt, senior lien on all current and future assets and property of the issuer

USE OF PROCEEDS To provide funds for advertising & inventory

TENOR Maturity 2025

INDICATIVE PRICING Tenor Sr Secured Net Leverage Fixed Rate (%) Commitment Fee (bps) 5 years None-not applicable 9.00% NONE

TERMS No amortization; participating non-cumulative

PREPAYMENT PENALTY NONE

FINANCIAL COVENANTS TBD

ADDITIONAL TERMS • Annual financial-reporting requirement within 60 days of calendar year end • Investor to pay at their cost all necessary due-diligence expenses • Preferred share issue to be composed of one investor or maximum syndication to 2 investors with approval from issuer ownership team.

SUMMARY of TERMS

INDUSTRY OVERVIEWFIREDISC Cookers is a disruptive producer of innovative, portable, high-quality outdoor grills, cooking products and accessories.

Co-founders and owners Griff Jaggard and Hunter Jaggard are the majority shareholders of the company, and are dedicated to growing the FIREDISC brand.

The company's core grill product is US patent protected, with quality overseas manufacturers (see marketing presentation).

Page 6: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

KEY INVESTMENT Highlights

• The global market size for barbeque grills was estimated at USD 4.79 billion in 2018 and is anticipated to register a CAGR of 4.5% during the forecast period.

• The rising trend of cookouts on weekends and holidays, especially among the younger millennial population, is expected to drive the growth.

• Furthermore, changing lifestyle coupled with the adoption of premium products for home and outdoor cooking activities is projected to boost product demand.

• Market size of $4.79 billion (2018) with estimated CAGR of 4.5%. Changing lifestyles & adoption of premium outdoor cooking products boost product demand in future.

• Barbecue & gas grill market is consolidated into residential sales, and FIREDISC's portable barbecue grills & accessories are unique to the market.

• The COVID-19 epidemic has forced consumers to purchase online, and these e-commerce channels will continue to grow as well as be consumers' preferred channel for purchasing products.

• As the FIREDISC brand expands its customer base and market recognition, introduction of new core products & complementary accessories will continue to grow.

• FIREDISC focuses on the travel and portability of the product, which spoke to folks in that market.• FIREDISC had extensive research performed on the outdoor cooking and BBQ industry, stating

more people cook outdoors in their backyards than they do when hunting, fishing or camping. To grow market share, we needed to reach people in their backyard.

• The company has built an exciting online presence via consistent brand-awareness campaigns posited through online sales channels such as Facebook, Instagram, YouTube and Pinterest.

• The company has also built a robust retail presence via large, established retailers such as Ace Hardware, True Value and Buc-ee’s.

• Higher gross margin: 44.54% DTC vs. 27.69% at retail• DTC sales in Q1: $228,686, up 789% from Q1 2019 ($25,715) • DTC sales in Q2: $764,031, up 2,311% from Q2 2019 ($31,685)• Less product to build and ship to achieve same revenue• Immediate payment vs. terms• Less money to service customer vs. retail store

• FIREDISC sees exponential revenue growth and record-breaking ROAs on FireDiscCookers.com, Amazon and newly added Walmart Marketplace.

• Recent studies conducted by the management team display an increase of female consumers who are attracted to the simplicity and versatility of the FIREDISC grill.

Growing market position within a large, attractive and growing outdoor grill industry

Market disruptor in the outdoor & lifestyle grill sectors with an innovative, patent-protected product platform

Unique user experience that provides for a broad, loyal customer base reinforced by brand ambassadors

High-quality multi-product branded portfolio with multi-channel customer acquisition and direct delivery

Sustainable financial performance, experienced & proven management team

Explosive growth across all demographics via recent switch to "direct-to-consumer" sales channel

INDUSTRY Overview

Page 7: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

Sale

s in

bill

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U.S.

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Gas

Charcoal

Electric

CONSUMER PURCHASING Awareness

THE US BBQ GRILL MARKET SIZE 2015-2025

2.19 2.27

Sourc

e: Gr

andv

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earch

.com

% of respondents, March 2019

Note: n=896 ages+; among internet users who have purchased a D2C brand; numbers may not add up to 100% due to rounding Source: Toluna, "D2C," March 6, 2019

How did the US internet user hear about the first direct-to-consumer brand they bought?

2015 2016 2017 2018 2019 2020 2021 2022 2023 20252 2024 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 20252 2024 2025

4

3

2

1

0

THE US BBQ GRILL SALES 2015-2025

Word of Mouth 16.4%

Online Search

24.8%

Other 3.5%

Ad on general news or information website 14.3%

Out of Home 6.5%

Social Media Ad 34.6%

1.15 1.23

1.061.030.980.940.910.88

0.82

1.12

0.84

1.65 1.731.531.451.421.361.321.261.18 1.581.23

0.320.31

0.280.260.25

0.240.210.2

0.29

0.19 0.19

Page 8: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

CONFIDENTIAL INFORMATION MEMORANDUM Available upon Request

The information set forth herein is believed to be reliable and has been obtained from sources believed to be reliable, but we make no representation

or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information. We have

no obligation to update, modify or amend this publication or to otherwise notify a recipient in the event that any material contained herein changes

or becomes inaccurate.

This presentation is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security, nor to enter into any

agreement or contract. Any offering or potential transaction that may be related to the subject matter of this presentation will be made by separate and distinct

documentation and in such case the information contained herein will be superseded in its entirety by such documentation. Any terms or conditions discussed

herein are subject to change without notice. In addition, because this presentation is a summary only, it may

not contain all material terms. This presentation, in and of itself, should not form the basis for any investment decision.

Financial instruments that may be discussed herein may not be suitable for all investors and any investors must make an independent assessment of the

appropriateness of any transaction in light of their own objectives and circumstances, including the possible risks and benefits of entering into such a

transaction. We are not acting, and do not purport to act, in any way as an advisor or in a fiduciary capacity. We therefore strongly suggest that potential

investors seek their own independent advice in relation to any legal, tax, accounting or regulatory issues relating to the matters discussed herein. By

accepting receipt of this presentation the recipient will be deemed to have represented that it possesses, either individually or through its advisors, sufficient

investment expertise to understand the risks involved in any purchase or sale of any security referenced herein. If a financial instrument is denominated in

a currency other than an investor’s currency, a change in exchange rates may adversely affect the price or value of, or the income derived from, the financial

instrument, and any investor in that financial instrument effectively assumes currency fluctuation risk. Prices and availability of any financial instruments

described in this presentation are subject to change without notice. Analyses contained herein may be based on assumptions that, if altered, can change the

opinions expressed herein. Furthermore, past performance is not necessarily indicative of future results and nothing contained herein shall constitute any

representation or warranty as to future performance of any financial instrument, credit, currency, rate or other market or economic measure.

This presentation may contain certain “forward-looking statements” and “forward-looking information.” Forward-looking statements are frequently

characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain

events or conditions “may” or “will” occur. Forward-looking statements are based on opinions, estimates, forecasts and projections at the date the statements

are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or

results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not

within our control and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated

by such forward-looking statements include changes in market conditions, risks relating to operations, market volatility and currency exchange rates. We

undertake no obligation to update forward-looking statements if circumstances or our estimates or opinions should change. The recipient of this information is

cautioned not to place undue reliance on forward-looking statements.

This presentation and the information contained herein is confidential and may not be reproduced or distributed in whole or in part without our prior written consent.

Page 9: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

CONFIDENTIAL INFORMATION MEMORANDUM Available upon Request

Page 10: THE ORIGINAL PORTABLE PROPANE COOKER...Sales in billion U.S. dollars Gas Charcoal Electric CONSUMER PURCHASING Awareness THE US BBQ GRILL MARKET SIZE 2015-2025 2.19 2.27 Source: Grandviewresearch.com

PORTABLE PROPANE COOKER

16840 Barker Springs Suite C300 • Houston, TX 77084 [email protected] • p 281.206.2678

firedisccookers.com