PART II AND III 2 rse1apos.htm POST QUAL AMENDMENT 14

This Post-Qualification Offering Circular Amendment No. 14 amends the Post-Qualification Offering Circular Amendment No. 13 of RSE Collection LLC, dated February 25, 2019, as qualified on March 6, 2019, and as may be amended and supplemented from time to time (the “Offering Circular”), to add additional securities to be offered pursuant to the Offering Circular. Unless otherwise defined below, capitalized terms used herein shall have the same meanings as set forth in the Offering Circular. See “Incorporation by Reference of Offering Circular” below. An offering statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. To the extent not already qualified under Regulation A, these securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.

 

POST-QUALIFICATION OFFERING CIRCULAR AMENDMENT NO. 14

SUBJECT TO COMPLETION; DATED MAY 2, 2019

 

 


RSE COLLECTION, LLC

 

 

250 LAFAYETTE STREET, 3RD FLOOR, NEW YORK, NY 10012

(347-952-8058) Telephone Number

www.rallyrd.com

 

This Post-Qualification Amendment relates to the offer and sale of series of interest, as described below, to be issued by RSE Collection, LLC (the “Company,” “we,” “us,” or “our”). Unless otherwise defined below, capitalized terms used herein shall have the same meanings as set forth in the Offering Circular. See “Incorporation by Reference of Offering Circular” below.

 

 

Series Membership Interests Overview

Price to Public

Underwriting Discounts and Commissions (1)(2)(3)

Proceeds to Issuer

Proceeds to Other Persons

 

 

 

 

 

 

Series #69BM1

Per Unit

$57.50

 

$57.50

 

 

Total Minimum

$103,500

 

$103,500

 

 

Total Maximum

$115,000

 

$115,000

 

 

 

 

 

 

 

Series #85FT1

Per Unit

$82.50

 

$82.50

 

 

Total Minimum

$148,500

 

$148,500

 

 

Total Maximum

$165,000

 

$165,000

 

 

 

 

 

 

 

Series #88LJ1

Per Unit

$67.50

 

$67.50

 

 

Total Minimum

$121,500

 

$121,500

 

 

Total Maximum

$135,000

 

$135,000

 

 

 

 

 

 

 

Series #55PS1

Per Unit

$212.50

 

$212.50

 

 

Total Minimum

$382,500

 

$382,500

 

 

Total Maximum

$425,000

 

$425,000

 

 

 

 

 

 

 

Series #95BL1

Per Unit

$59.25

 

$59.25

 

 

Total Minimum

$106,650

 

$106,650

 

 

Total Maximum

$118,500

 

$118,500

 

 

 

 

 

 

 

Series #89PS1

Per Unit

$82.50

 

$82.50

 

 

Total Minimum

$148,500

 

$148,500

 

 

Total Maximum

$165,000

 

$165,000

 

 

 

 

 

 

 

Series #90FM1

Per Unit

$8.25

 

$8.25

 

 

Total Minimum

$14,850

 

$14,850

 

 

Total Maximum

$16,500

 

$16,500

 

 

 

 

 

 

 

Series #83FB1

Per Unit

$70.00

 

$70.00

 

 

Total Minimum

$345,000

 

$345,000

 



 

Total Maximum

$350,000

 

$350,000

 

 

 

 

 

 

 

Series #98DV1

Per Unit

$65.00

 

$65.00

 

 

Total Minimum

$117,000

 

$117,000

 

 

Total Maximum

$130,000

 

$130,000

 

 

 

 

 

 

 

Series #93XJ1

Per Unit

$99.00

 

$99.00

 

 

Total Minimum

$445,500

 

$445,500

 

 

Total Maximum

$495,000

 

$495,000

 

 

 

 

 

 

 

Series #06FS1

Per Unit

$39.80

 

$39.80

 

 

Total Minimum

$174,125

 

$174,125

 

 

Total Maximum

$209,000

 

$209,000

 

 

 

 

 

 

 

Series #02AX1

Per Unit

$54.00

 

$54.00

 

 

Total Minimum

$97,200

 

$97,200

 

 

Total Maximum

$108,000

 

$108,000

 

 

 

 

 

 

 

Series #99LE1

Per Unit

$34.75

 

$34.75

 

 

Total Minimum

$62,550

 

$62,550

 

 

Total Maximum

$69,500

 

$69,500

 

 

 

 

 

 

 

Series #91MV1

Per Unit

$19.00

 

$19.00

 

 

Total Minimum

$34,200

 

$34,200

 

 

Total Maximum

$38,000

 

$34,200

 

 

 

 

 

 

 

Series #92LD1

Per Unit

$55.00

 

$55.00

 

 

Total Minimum

$148,500

 

$148,500

 

 

Total Maximum

$165,000

 

$165,000

 

 

 

 

 

 

 

Series #80LC1

Per Unit

$127.00

 

$127.00

 

 

Total Minimum

$571,500

 

$571,500

 

 

Total Maximum

$635,000

 

$635,000

 

 

 

 

 

 

 

Series #72FG1

Per Unit

$63.00

 

$63.00

 

(4)

Total Minimum

$287,280

 

$287,280

 

 

Total Maximum

$345,000

 

$345,000

 

 

 

 

 

 

 

Series #94DV1

Per Unit

$28.75

 

$28.75

 

 

Total Minimum

$51,750

 

$51,750

 

 

Total Maximum

$57,500

 

$57,500

 

 

 

 

 

 

 

Series #91GS1

Per Unit

$18.75

 

$18.75

 

(5)

Total Minimum

$34,425

 

$34,425

 

 

Total Maximum

$41,250

 

$41,250

 

 

 

 

 

 

 

Series #99FG1

Per Unit

$66.25

 

$66.25

 

(5)

Total Minimum

$121,635

 

$121,635

 

 

Total Maximum

$145,750

 

$145,750

 

 

 

 

 

 

 

Series #88PT1

Per Unit

$30.00

 

$30.00

 

 

Total Minimum

$55,020

 

$55,020

 

 

Total Maximum

$66,000

 

$66,000

 

 

 

 

 

 

 

Series #90ME1

Per Unit

$137.50

 

$137.50

 

 

Total Minimum

$247,500

 

$247,500

 

 

Total Maximum

$275,000

 

$275,000

 

 

 

 

 

 

 

Series #82AB1

Per Unit

$58.75

 

$58.75

 

(5)

Total Minimum

$107,865

 

$107,865

 

 

Total Maximum

$129,500

 

$129,500

 

 

 

 

 

 

 

Series #00FM1

Per Unit

$24.75

 

$24.75

 

 

Total Minimum

$44,550

 

$44,550

 

 

Total Maximum

$49,500

 

$49,500

 

 

 

 

 

 

 



Series #94LD1

Per Unit

$119.50

 

$119.50

 

 

Total Minimum

$537,750

 

$537,750

 

 

Total Maximum

$597,500

 

$597,500

 

 

 

 

 

 

 

Series #02BZ1

Per Unit

$65.00

 

$65.00

 

 

Total Minimum

$175,500

 

$175,500

 

 

Total Maximum

$195,000

 

$195,000

 

 

 

 

 

 

 

Series #88BM1

Per Unit

$47.00

 

$47.00

 

 

Total Minimum

$126,900

 

$126,900

 

 

Total Maximum

$141,000

 

$141,000

 

 

 

 

 

 

 

Series #11BM1

Per Unit

$42.00

 

$42.00

 

 

Total Minimum

$75,600

 

$75,600

 

 

Total Maximum

$84,000

 

$84,000

 

 

 

 

 

 

 

Series #03PG1

Per Unit

$48.00

 

$48.00

 

 

Total Minimum

$129,600

 

$129,600

 

 

Total Maximum

$144,000

 

$144,000

 

 

 

 

 

 

 

Series #06FG1

Per Unit

$64.00

 

$64.00

 

 

Total Minimum

$288,000

 

$288,000

 

 

Total Maximum

$320,000

 

$320,000

 

 

 

 

 

 

 

Series #72MC1

Per Unit

$62.25

 

$62.25

 

 

Total Minimum

$112,050

 

$112,050

 

 

Total Maximum

$124,500

 

$124,500

 

 

 

 

 

 

 

Series #65AG1

Per Unit

$89.25

 

$89.25

 

 

Total Minimum

$160,650

 

$160,650

 

 

Total Maximum

$178,500

 

$178,500

 

 

 

 

 

 

 

Series #76PT1

Per Unit

$63.30

 

$63.30

 

 

Total Minimum

$170,910

 

$170,910

 

 

Total Maximum

$189,900

 

$189,900

 

 

 

 

 

 

 

Series #63CC1

Per Unit

$63.00

 

$63.00

 

 

Total Minimum

$113,400

 

$113,400

 

 

Total Maximum

$126,000

 

$126,000

 

 

 

 

 

 

 

Series #65FM1

Per Unit

$41.25

 

$41.25

 

 

Total Minimum

$74,250

 

$74,250

 

 

Total Maximum

$82,500

 

$82,500

 

 

 

 

 

 

 

Series #61MG1

Per Unit

$68.00

 

$68.00

 

 

Total Minimum

$306,000

 

$306,000

 

 

Total Maximum

$340,000

 

$340,000

 

 

 

 

 

 

 

Series #82AV1

Per Unit

$148.75

 

$148.75

 

 

Total Minimum

$267,750

 

$267,750

 

 

Total Maximum

$297,500

 

$297,500

 

 

 

 

 

 

 

Series #91DP1

Per Unit

$79.50

 

$79.50

 

(4)

Total Minimum

$357,750

 

$357,750

 

 

Total Maximum

$397,500

 

$397,500

 

 

 

 

 

 

 

Series #61JE1

Per Unit

$82.00

 

$82.00

 

 

Total Minimum

$221,400

 

$221,400

 

 

Total Maximum

$246,000

 

$246,000

 

 

 

 

 

 

 

Series #75RA1

Per Unit

$28.00

 

$28.00

 

 

Total Minimum

$75,600

 

$75,600

 

 

Total Maximum

$84,000

 

$84,000

 

 

 

 

 

 

 

Series #93FS1

Per Unit

$68.75

 

$68.75

 

 

Total Minimum

$123,750

 

$123,750

 



 

Total Maximum

$137,500

 

$137,500

 

 

 

 

 

 

 

Series #90MM1

Per Unit

$5.32

 

$5.32

 

 

Total Minimum

$23,940

 

$23,940

 

 

Total Maximum

$26,600

 

$26,600

 

 

 

 

 

 

 

Series #87FF1

Per Unit

$59.00

 

$59.00

 

(4)

Total Minimum

$106,200

 

$106,200

 

 

Total Maximum

$118,000

 

$118,000

 

 

 

 

 

 

 

Series #12MM1

Per Unit

$62.50

 

$62.50

 

(4)

Total Minimum

$112,500

 

$112,500

 

 

Total Maximum

$125,000

 

$125,000

 

 

 

 

 

 

 

Series #88LL1

Per Unit

$146.00

 

$146.00

 

 

Total Minimum

$262,800

 

$262,800

 

 

Total Maximum

$292,000

 

$292,000

 

 

 

 

 

 

 

Series #89FT1

Per Unit

$45.00

 

$45.00

 

 

Total Minimum

$162,000

 

$162,000

 

 

Total Maximum

$180,000

 

$180,000

 

 

 

 

 

 

 

Series #99SS1

Per Unit

$137.50

 

$137.50

 

 

Total Minimum

$123,750

 

$123,750

 

 

Total Maximum

$137,500

 

$137,500

 

 

 

 

 

 

 

Series #66AV1

Per Unit

$155.00

 

$155.00

 

 

Total Minimum

$418,500

 

$418,500

 

 

Total Maximum

$465,000

 

$465,000

 

 

 

 

 

 

 

Series #92CC1

Per Unit

$26.25

 

$26.25

 

 

Total Minimum

$47,250

 

$47,250

 

 

Total Maximum

$52,500

 

$52,500

 

 

 

 

 

 

 

Series #94FS1

Per Unit

$72.50

 

$72.50

 

 

Total Minimum

$130,500

 

$130,500

 

 

Total Maximum

$145,000

 

$145,000

 

(1) Cuttone & Company, LLC (the “Broker”) will be acting as a broker of record and entitled to a Brokerage Fee as reflected herein and described in greater detail under “Plan of Distribution and Subscription Procedure – Broker” and “– Fees and Expenses” on page 306 and page 307 of the Post-Qualification Amendment to Offering Circular No. 13 for additional information.

(2) DriveWealth, LLC (the “Custodian”) will be acting as custodian of interests and hold brokerage accounts for interest holders in connection with the Company’s offerings and will be entitled to a Custody Fee as reflected herein and described in greater detail under “Plan of Distribution and Subscription Procedure – Custodian” and “– Fees and Expenses” on page 307 of the Post-Qualification Amendment to Offering Circular No. 13 for additional information. For all offerings of the Company which closed or launch prior to the agreement with DriveWealth, signed on March 2, 2018, interests are transferred into the DriveWealth brokerage accounts upon consent of the individual investors who purchased such shares or have transferred money into escrow in anticipation of purchasing such shares at the close of the currently ongoing offerings.

(3) No underwriter has been engaged in connection with the Offering (as defined below) and neither the Broker, nor any other entity, receives a finder’ fee or any underwriting or placement agent discounts or commissions in relation to any Offering of Interests (as defined below). We intend to distribute all offerings of membership interests in any series of the Company principally through the “Platform” (the Rally Rd.™ platform and any successor platform used by the Company for the offer and sale of interests, the “Platform”)as described in greater detail under “Plan of Distribution and Subscription Procedure” on page 303 of the Post-Qualification Amendment to Offering Circular No.13.

(4) Amounts for Series are subject to final execution of purchase option agreements.

(5) Amounts for Series are subject to final execution of purchase agreements.

RSE Collection, LLC, a Delaware series limited liability company (“we,” “us,” “our,” “RSE Collection” or the “Company”) is offering, on a best efforts basis, a minimum (the “Minimum”) to a maximum (the “Maximum”) of membership interests of each of the following series of the Company, highlighted in gray in the “Interests in Series Covered by this Amendment” section. Series not highlighted in gray have completed their respective offerings at the time of this filing and the number of interests in the table represents the actual interests sold. The sale of membership interests is being facilitated by the Broker, a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and member of FINRA and is registered in each state where the offer or sales of the Interests will occur. It is anticipated that Interests will be offered and sold only in states where the Broker is registered as a broker-dealer.  For the avoidance of doubt, the Broker does not and will not solicit purchases of Interests or make any recommendations regarding the Interests to prospective investors.

All of the series of the Company offered hereunder may collectively be referred to herein as the “Series” and each, individually, as a “Series”.  The interests of all series described above may collectively be referred to herein as the “Interests” and each, individually, as an “Interest” and the



offerings of the Interests may collectively be referred to herein as the “Offerings” and each, individually, as an “Offering.”  See “Description of the Interests Offered” on page 332 of the Post-Qualification Amendment to Offering Circular No. 13 for additional information regarding the Interests.

The Interests represent an investment in a particular Series and thus indirectly the Underlying Asset and do not represent an investment in the Company or the Manager generally.  We do not anticipate that any Series will own any assets other than the Underlying Asset associated with such Series.  However, we expect that the operations of the Company, including the issuance of additional series of interests and their acquisition of additional assets, will benefit Investors by enabling each Series to benefit from economies of scale and by allowing Investors to enjoy the Company’s automobile collection at the Membership Experience Programs. A purchaser of the Interests may be referred to herein as an “Investor” or “Interest Holder.”.  There will be a separate closing with respect to each Offering (each, a “Closing”). The Closing of an Offering will occur on the earliest to occur of (i) the date subscriptions for the Maximum Interests for a Series have been accepted or (ii) a date determined by the Manager in its sole discretion, provided that subscriptions for the Minimum Interests of such Series have been accepted.  If Closing has not occurred, an Offering shall be terminated upon (i) the date which is one year from the date such Offering Circular or Amendment, as applicable, is qualified by the U.S. Securities and Exchange Commission, or the “Commission”, which period may be extended with respect to a particular Series by an additional six months by the Manager in its sole discretion, or (ii) any date on which the Manager elects to terminate the Offering for a particular Series in its sole discretion.  

No securities are being offered by existing security-holders.

Each Offering is being conducted under Regulation A (17 CFR 230.251 et. seq.) and the information contained herein is being presented in Offering Circular format.  The Company is not offering, and does not anticipate selling, Interests in any of the Offerings in any state where Cuttone & Company, LLC is not registered as a broker-dealer. The subscription funds advanced by prospective Investors as part of the subscription process will be held in a non-interest-bearing escrow account with Atlantic Capital Bank, N.A., the “Escrow Agent”, and will not be commingled with the operating account of the Series, until, if and when there is a Closing with respect to that Investor.  See “Plan of Distribution and Subscription Procedure” and “Description of Interests Offered” on page 303 and page 332 of the Post-Qualification Amendment to Offering Circular No. 13 for additional information.

A purchase of Interests in a Series does not constitute an investment in either the Company or an Underlying Asset directly, or in any other Series of Interest.  This results in limited voting rights of the Investor, which are solely related to a particular Series, and are further limited by the Operating Agreement of the Company, described further herein.  Investors will have voting rights only with respect to certain matters, primarily relating to amendments to the Operating Agreement that would adversely change the rights of the Interest Holders and removal of the Manager for “cause”.  The Manager and the Asset Manager thus retain significant control over the management of the Company, each Series and the Underlying Assets.  Furthermore, because the Interests in a Series do not constitute an investment in the Company as a whole, holders of the Interests in a Series are not expected to receive any economic benefit from, or be subject to the liabilities of, the assets of any other Series.  In addition, the economic interest of a holder in a Series will not be identical to owning a direct undivided interest in an Underlying Asset because, among other things, a Series will be required to pay corporate taxes before distributions are made to the holders, and the Asset Manager will receive a fee in respect of its management of the Underlying Asset.

 

The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments that are difficult to predict.  Neither the Company nor the Manager can guarantee future performance, or that future developments affecting the Company, the Manager or the Platform will be as currently anticipated.  These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

There is currently no public trading market for any Interests, and an active market may not develop or be sustained.  If an active public or private trading market for our securities does not develop or is not sustained, it may be difficult or impossible for you to resell your Interests at any price. Even if a public or private market does develop, the market price could decline below the amount you paid for your Interests.

The Interests offered hereby are highly speculative in nature, involve a high degree of risk and should be purchased only by persons who can afford to lose their entire investment. There can be no assurance that the Company’s investment objectives will be achieved or that a secondary market would ever develop for the Interests, whether via the Platform, via third party registered broker-dealers or otherwise. Prospective Investors should obtain their own legal and tax advice prior to making an investment in the Interests and should be aware that an investment in the Interests may be exposed to other risks of an exceptional nature from time to time. See the “Risk Factors” section on Page 12.

GENERALLY, NO SALE MAY BE MADE TO YOU IN ANY OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO HTTP://WWW.INVESTOR.GOV.

The United States Securities and Exchange Commission does not pass upon the merits of or give its approval to any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. These securities are offered pursuant to an exemption from registration with the Commission; however, the Commission has not made an independent determination that the securities offered are exempt from registration. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sales of these securities in, any state in which such offer, solicitation or sale would be unlawful before registration or qualification of the offer and sale under the laws of such state.

An investment in the Interests involves a high degree of risk. See the “Risk Factors” section on Page 12 for a description of some of the risks that should be considered before investing in the Interests.



TABLE OF CONTENTS

RSE COLLECTION, LLC

 

SECTIONPAGE 

Incorporation by Reference of Offering Circular1 

InterestS in series covered by THIS AMENDMENT2 

RISK FACTORS12 

USE OF PROCEEDS – Series #88LL123 

DESCRIPTION OF THE SERIES LAMBORGHINI LM00225 

USE OF PROCEEDS – Series #89FT127 

DESCRIPTION OF THE SERIES 1989 FERRARI TESTAROSSA29 

USE OF PROCEEDS – Series #99SS131 

DESCRIPTION OF THE SERIES 1999 SHELBY SERIES 133 

USE OF PROCEEDS – Series #66AV135 

DESCRIPTION OF THE SERIES ASTON MARTIN DB6 VANTAGE37 

USE OF PROCEEDS – Series #92CC139 

DESCRIPTION OF THE SERIES CORVETTE ZR141 

USE OF PROCEEDS – Series #94FS143 

DESCRIPTION OF THE SERIES FERRARI 348 SPIDER45 

AMENDED AND RESTATED DESCRIPTION OF THE SERIES RENAULT ALPINE A11047 

RSE COLLECTION, LLC FINANCIAL STATEMENTSF-1 

EXHIBIT INDEXIII-1 




1


Incorporation by Reference of Offering Circular

 

The Offering Circular, including this Post-Qualification Amendment, is part of an offering statement (File No. 024-10717) that we filed with the Securities and Exchange Commission. We hereby incorporate by reference into this Post-Qualification Amendment all of the information contained in the following:

 

1.Part II of the Post-Qualification Amendment to Offering Circular No. 13 including the sections bulleted below, to the extent not otherwise modified or replaced by offering circular supplement and/or Post-Qualification Amendment. 

Cautionary Statement Regarding Forward-Looking Statements 

Offering Summary 

Potential Conflicts of Interest 

Dilution 

Use of Proceeds and Asset Descriptions through Post-Qualification Amendment to Offering Circular No. 13 

Plan of Distribution and Subscription Procedure 

Management 

Compensation 

Description of Interests Offered 

Material United States Tax Considerations 

Where to Find Additional Information 

2.Form 1-K for the Fiscal Year Ended December 31, 2018 including the sections bulleted below, to the extent not otherwise modified or replaced by offering circular supplement and/or Post-Qualification Amendment. 

Description of the Business 

Management’s Discussion and Analysis of Financial Condition and Results of Operation 

Directors, Executive Officers, and Significant Employees 

Security Ownership of Management and Certain Securityholders 

1.Form 1-U for the Sale of Series #00FM1 including the sections bulleted below, to the extent not otherwise modified or replaced by offering circular supplement and/or Post-Qualification Amendment. 

Item 9. Other Events 

 

Note that any statement we make in this Post-Qualification Amendment (or have made in the Offering Circular) will be modified or superseded by an inconsistent statement made by us in a subsequent offering circular supplement or Post-Qualification Amendment.


1



2


InterestS in series covered by THIS AMENDMENT

The following disclosures are located in the Post-Qualification Amendment to Offering Circular No. 13 under “Use of Proceeds” and “Description of the Series”.

The table below shows key information related to each Series covered by this Amendment and is included in the Master Series Table.

Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#77LE1 / Series #77LE1

1977 Lotus Esprit S1

$38.85

$77,701

Purchase Option Agreement

11/17/2016

4/13/2017

Closed

$3,967

 

2,000

• Acquired Underlying Asset for $69,400 on 10/03/2016
• Acquisition financed through a $69,400 loan from an Officer of the Manager
• $77,700 Offering closed on 04/13/2017 and the loan plus $241 of accrued interest and other obligations were repaid with the proceeds
• (3)(4)(5)

#69BM1 / Series Boss Mustang

1969 Ford Mustang Boss 302

$57.50

$115,000

Upfront Purchase

11/20/2017

2/7/2018

Closed

$2,988

 

2,000

• Acquired Underlying Asset for $102,395 on 10/31/2016 financed through a $5,000 down-payment by the Manager and a $97,395 loan from an Officer of the Manager
• $115,000 Offering closed on 02/07/2018 and the loan plus $821 of accrued interest and other obligations were repaid with the proceeds
• (3)(4)

#85FT1 / Series Ferrari Testarossa

1985 Ferrari Testarossa

$82.50

$165,000

Upfront Purchase

11/23/2017

2/15/2018

Closed

$0

 

2,000

• Acquired Underlying Asset for $172,500 on 06/01/2017 financed through a $47,500 loan from an Officer of the Manager and $125,000 loan from J.J. Best Banc & Co (3rd Party Lender)
• $165,000 Offering closed on 02/15/2018 and all loans plus accrued interest of $401 and $5,515 and other obligations were repaid with the proceeds
• (3)(4)

#88LJ1 / Series Lamborghini Jalpa

1988 Lamborghini Jalpa

$67.50

$135,000

Upfront Purchase

2/9/2018

4/12/2018

Closed

$581

 

2,000

• Acquired Underlying Asset for $127,176 on 11/23/2016 financed through a $7,500 down-payment by the Manager and a $119,676 loan from an Officer of the Manager
• $135,000 Offering closed on 04/12/2018 and the loan plus $1,126 of accrued interest was repaid with the proceeds
• (3)(4)


3


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#55PS1 / Series Porsche Speedster

1955 Porsche 356 Speedster

$212.50

$425,000

Purchase Option Agreement

4/2/2018

6/6/2018

Closed

$0

 

2,000

• Purchase Option Agreement to acquire Underlying Asset for $405,000 entered on 07/01/2017
• At the time of the agreement there was a $30,000 non-refundable upfront fee that was financed through a $20,000 loan by an Officer of the Manager and a $10,000 down-payment by the Manager
• Subsequently a $100,000 refundable upfront fee was made and financed through a loan to the Company from an Officer of the Manager
• $425,000 Offering closed on 06/06/2018 and all obligations under the Purchase Option Agreement and other obligations were repaid with the proceeds
• (3)(4)

#95BL1 / Series BMW M3 Lightweight

1995 BMW E36 M3 Lightweight

$59.25

$118,500

Upfront Purchase

6/1/2018

7/12/2018

Closed

$0

 

2,000

• Acquired Underlying Asset for $112,500 on 03/28/2018 financed through a $22,500 non-interest-bearing down-payment by Manager, $10,000 loan from an officer of the Manager and an $80,000 loan from J.J. Best & Company (3rd Party Lender)
• $118,500 Offering closed on 07/12/2018 and all loans and other obligations were repaid with the proceeds
• (3)(4)

#89PS1 / Series Porsche 911 Speedster

1989 Porsche 911 Speedster

$82.50

$165,000

Purchase Option Agreement

7/23/2018

7/31/2018

Closed

$1,870

 

2,000

• Purchase Option Agreement to acquire minority equity stake (38%) in Underlying Asset entered on 06/21/2018 for a total cash consideration of $61,000, which valued Underlying Asset at $160,000
• $165,000 Offering closed on 07/31/2018 and all obligations under the Purchase Option Agreement and other obligations were repaid with the proceeds
• The Automobile Seller ultimately retained 60% of Interests
• (3)(4)

 

#90FM1 / Series Ford Mustang 7-Up Edition

1990 Ford Mustang 7Up Edition

$8.25

$16,500

Purchase Option Agreement

7/24/2018

7/31/2018

Closed

$474

 

2,000

• Purchase Option Agreement to acquire majority equity stake (72%) in Underlying Asset entered on 06/15/2018 for a total cash consideration of $10,375, which valued the Underlying Asset at $14,500
• $16,500 Offering closed on 07/31/2018 and all obligations under the Purchase Option Agreement and other obligations were repaid with the proceeds
• The Automobile Seller ultimately retained 25% of Interests
• (3)(4)


4


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#83FB1 / Series Ferrari 512

1983 Ferrari 512 BBi

$70.00

$350,000

Purchase Option Agreement

7/23/2018

9/5/2018

Closed

$9,322

 

5,000

• Purchase Option Agreement to acquire Underlying Asset for $330,000 entered on 10/30/2017
• $350,000 Offering closed on 09/05/2018 and all obligations under the Purchase Option Agreement and other obligations were repaid with the proceeds
• (3)(4)

#98DV1 / Series Dodge Viper GTS-R

1998 Dodge Viper GTS-R

$65.00

$130,000

Upfront Purchase

9/27/2018

10/10/2018

Closed

$2,390

 

2,000

• Acquired Underlying Asset for $120,000 on 06/28/2018 financed through a $40,000 non-interest-bearing down-payment by Manager and a $80,000 loan from an Officer of the Manager
• $130,000 Offering closed on 10/10/2018 and the loan plus accrued interest and other obligations were paid through the proceeds
• (3)(4)

#06FS1 / Series Ferrari F430 Spider

2006 Ferrari F430 Spider "Manual"

$39.80

$199,000

Purchase Option Agreement

10/12/2018

10/19/2018

Closed

$893

 

5,000

• Purchase Option Agreement to acquire Underlying Asset for $192,500 entered on 10/05/2018
• $199,000 Offering closed on 10/19/2018 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• (3)(4)

#93XJ1 / Series Jaguar XJ220

1993 Jaguar XJ220

$99.00

$495,000

Purchase Option Agreement

8/22/2018

11/6/2018

Closed

$0

 

5,000

• Purchase Option Agreement to acquire Underlying Asset for $460,000 entered on 12/15/2017
• Down-payment of $170,000 on 03/02/2018, financed through a $25,000 loan from an Officer of the Manager and a $145,000 loan from an affiliate of the Manager
• The $145,000 loan from an affiliate of the Manager plus $4,767 of accrued interest was subsequently repaid on 06/30/2018 and replaced by a $145,000 non-interest-bearing payment from the Manager
• Final payment of $290,000 on 07/30/2018 financed through a non-interest-bearing payment from the Manager
• In addition to the acquisition of the Series, the proceeds from the Series Offering were used to finance $26,500 of refurbishments to the Underlying Asset
• $495,000 Offering closed on 11/06/2018 and the Series repaid the non-interest-bearing payments made to the Company by the Manager and other obligations through the proceeds
• (3)(4)


5


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#02AX1 / Series Acura NSX-T

2002 Acura NSX-T

$54.00

$108,000

Upfront Purchase

11/16/2018

11/30/2018

Closed

$2,009

 

2,000

• Acquired Underlying Asset for $100,000 on 09/19/2018 financed through a loan from an Officer of the Manager
• $108,000 Offering closed on 11/30/2018 and the loan plus accrued interest and other obligations were paid through the proceeds
• (3)(4)

#99LE1 / Series Lotus Sport 350

1999 Lotus Esprit Sport 350

$34.75

$69,500

Upfront Purchase

11/23/2018

12/4/2018

Closed

$1,811

 

2,000

• Acquired Underlying Asset for $62,100 on 10/12/2018 financed through a loan from an officer of the Manager
• $69,500 Offering closed on 12/04/2018 and the loan plus accrued interest and other obligations were paid through the proceeds
• (3)(4)

#91MV1 / Series Mitsubishi VR4

1991 Mitsubishi 3000GT VR4

$19.00

$38,000

Upfront Purchase

11/28/2018

12/7/2018

Closed

$623

 

2,000

• Acquired Underlying Asset for $33,950 on 10/12/2018 financed through a non-interest-bearing payment by the Manager
• $38,000 Offering closed on 12/7/2018 and payment made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#92LD1 / Series Lancia Martini 5

1992 Lancia Delta Integrale Evo "Martini 5"

$55.00

$165,000

Upfront Purchase

12/7/2018

12/26/2018

Closed

$2,219

 

3,000

• Acquired Underlying Asset for $146,181 on 10/09/2018 financed through a non-interest-bearing payment from the Manager
• $165,000 Offering closed on 12/26/2018 and payment made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#94DV1 / Series Dodge Viper RT/10

1994 Dodge Viper RT/10

$28.75

$57,500

Purchase Option Agreement

12/11/2018

12/26/2018

Closed

$1,841

 

2,000

• Purchase Option Agreement to acquire Underlying Asset for $52,500 entered on 10/05/2018
• Payment of $52,500 on 10/26/2018 financed through a non-interest-bearing payment by the Manager
• $57,500 Offering closed on 12/26/2018 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• (3)(4)


6


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#00FM1 / Series Ford Mustang Cobra R

2000 Ford Mustang Cobra R

$24.75

$49,500

Upfront Purchase

12/21/2018

1/4/2019

Sold

$892

 

2,000

• Acquired Underlying Asset for $43,000 on 10/12/2018 financed through a non-interest-bearing payment from the Manager
• $49,500 Offering closed on 01/04/2019 and payment made by the Manager and other obligations were paid through the proceeds
• $60,000 acquisition offer for Series Ford Mustang Cobra R accepted on 04/15/2019 with subsequent cash distribution to the Investors and dissolution of the Series
• (3)(4)

#72MC1 / Series Mazda Cosmo Sport

1972 Mazda Cosmo Sport Series II

$62.25

$124,500

Purchase Option Agreement

12/28/2018

1/4/2019

Closed

$2,548

 

2,000

• Purchase Option Agreement to acquire a majority equity stake (57%) in the Underlying Asset for $65,200, entered on 11/05/2018
• $124,500 Offering closed on 01/04/2019 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• The Automobile Seller ultimately retained 40% of Interests
• (3)(4)

#06FG1 / Series Ford GT

2006 Ford GT

$64.00

$320,000

Purchase Agreement

12/14/2018

1/8/2019

Closed

$3,354

 

5,000

• Purchase Agreement to acquire the Underlying Asset for $309,000 entered on 10/23/2018
• Down-payment of $20,000 on 10/26/2018 and final payment of $289,000 on 12/12/2018 were made and financed through non-interest-bearing payments from the Manager
• $320,000 Offering closed on 01/08/2019 and all obligations under the Purchase Agreement and other obligations repaid with the proceeds
• (3)(4)

#11BM1 / Series BMW 1M

2011 BMW 1M

$42.00

$84,000

Purchase Option Agreement

1/8/2019

1/25/2019

Closed

$517

 

2,000

• Purchase Option Agreement to acquire Underlying Asset for $78,500 entered on 10/20/2018
• Down-payment of $7,850 on 10/26/2018 and final payment of $70,650 on 01/25/2019 were made and financed through non-interest-bearing payments from the Manager
• $84,000 Offering closed on 01/25/2019 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• (3)(4)


7


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#80LC1 / Series Lamborghini Countach LP400 S Turbo

1980 Lamborghini Countach LP400 S Turbo

$127.00

$635,000

Purchase Option Agreement

1/17/2019

2/8/2019

Closed

$9,866

 

5,000

• Purchase Option Agreement to acquire a majority equity stake (92.5%) in Underlying Asset entered on 08/01/2018 for a total cash consideration of $562,375 which valued the Underlying Asset at $610,000
• Down payment of $60,000 on 08/10/2018 and final payment of $502,375 on 09/13/2018 were made and financed through non-interest-bearing payments from the Manager
• $635,000 Offering closed on 02/08/2019 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• The Automobile Seller ultimately retained 7.50% of Interests
• (3)(4)

#02BZ1 / Series BMW Z8

2002 BMW Z8

$65.00

$195,000

Purchase Agreement

1/6/2019

2/8/2019

Closed

$2,620

 

3,000

• Purchase Agreement to acquire Underlying Asset for $185,000 entered on 10/18/2018
• Down-payment of $18,500 on 10/18/2018 and final payment of $166,500 on 12/14/2018 were made and financed through non-interest-bearing payments from the Manager
• $195,000 Offering closed on 02/08/2019 and all obligations under the Purchase Agreement and other obligations repaid with the proceeds
• (3)(4)

#88BM1 / Series BMW E30 M3

1988 BMW E30 M3

$47.00

$141,000

Upfront Purchase

1/11/2019

2/25/2019

Closed

$465

 

3,000

• Acquired Underlying Asset for $135,000 on 11/18/2018 financed through a non-interest-bearing payment from the Manager
• $141,000 Offering closed on 02/25/2019 and payment made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#63CC1 / Series Corvette Split Window

1963 Chevrolet Corvette Split Window

$63.00

$126,000

Upfront Purchase

3/8/2019

3/18/2019

Closed

$1,618

 

2,000

• Acquired Underlying Asset for $120,000 on 11/21/2018 financed through a non-interest-bearing payment from the Manager
• $126,000 Offering closed on 03/18/2019 and payment made by the Manager and other obligations were paid through the proceeds
• (3)(4)


8


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#76PT1 / Series Porsche Turbo Carrera

1976 Porsche 911 Turbo Carrera

$63.30

$189,900

Upfront Purchase

3/15/2019

3/22/2019

Closed

$1,893

 

3,000

• Acquired the Underlying Asset for $179,065 on 11/27/2018 financed through a non-interest-bearing payment from the Manager
• $189,900 Offering closed on 03/22/2019 and payment made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#75RA1 / Series Renault Alpine A110

1975 Renault Alpine A110 1300

$28.00

$84,000

Purchase Agreement

3/29/2019

4/9/2019

Closed

$3,751

 

3,000

• Purchase Agreement to acquire the Underlying Asset for $75,000 entered on 12/22/2018
• Down-payment of $7,500 on 01/11/2019 and final payment of $67,500 on 03/23/2019 were made and financed through non-interest-bearing payments from the Manager
• $84,000 Offering closed on 04/09/2019 and payments made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#65AG1 / Series Alfa Romeo Giulia SS

1965 Alfa Romeo Giulia Sprint Speciale

$89.25

$178,500

Upfront Purchase

4/5/2019

4/16/2019

Closed

$1,970

 

2,000

• Acquired Underlying Asset for $170,000 on 11/29/2018 financed through a non-interest-bearing payment from the Manager
• $178,500 Offering closed on 04/16/2019 and payments made by the Manager and other obligations were paid through the proceeds
• (3)(4)

#93FS1 / Series Ferrari 348TS SS

1993 Ferrari 348TS Serie Speciale

$68.75

$137,500

Purchase Option Agreement

4/12/2019

4/22/2019

Closed

$1,355

 

2,000

• Purchase Option Agreement to acquire the Underlying Asset for $130,000 entered on 01/14/2019
• Down-payment of $10,000 on 01/19/2019 and final payment of 120,000 on 04/20/2019 were made and financed through non-interest-bearing payments from the Manager
• $137,500 Offering closed on 04/22/2019 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• (3)(4)

#90MM1 / Series Mazda Miata

1990 Mazda Miata MX-5

$5.32

$26,600

Purchase Option Agreement

4/17/2019

4/26/2019

Closed

$934

 

5,000

• Purchase Option Agreement to acquire the Underlying Asset for $22,000 entered on 01/23/2019
• Underlying Asset was acquired on 03/30/2019 with payment of $22,000 financed through a non-interest-bearing payment from the Manager
• $26,600 Offering closed on 04/26/2019 and all obligations under the Purchase Option Agreement and other obligations repaid with the proceeds
• (3)(4)

#61JE1 / Series Jaguar E-Type

1961 Jaguar E-Type

$82.00

$246,000

Upfront Purchase

4/19/2019

4/26/2019

Closed

$3,858

 

3,000

• Acquired Underlying Asset for $235,000 on 12/22/2018 financed through a $235,000 non-interest-bearing payment from the Manager
• $246,000 Offering closed on 04/26/2019 and payments made by the Manager and other obligations were paid through the proceeds
• (3)(4)


9


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#72FG1 / Series Ferrari 365 GTC/4

1972 Ferrari 365 GTC/4

$63.00

$345,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$3,563

4,560

5,476

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#82AB1 / Series Alpina B6

1982 Alpina B6 2.8

$58.75

$129,250

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$4,687

1,833

2,200

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#99FG1 / Series Ferrari 456M GT

1999 Ferrari 456M GT

$66.25

$145,750

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$2,902

1,833

2,200

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#91GS1 / Series GMC Syclone

1991 GMC Syclone

$18.75

$41,250

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$2,001

1,833

2,200

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#91DP1 / Series DeTomaso Pantera

1991 DeTomaso Pantera Si

$79.50

$397,500

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$2,915

4,500

5,000

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#12MM1 / Series McLaren MP4-12C

2012 McLaren MP4-12C

$62.50

$125,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$3,848

1,800

2,000

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#87FF1 / Series Ferrari 412

1987 Ferrari 412

$59.00

$118,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$1,248

1,800

2,000

• Negotiations for a Purchase Option Agreement to acquire Underlying Asset ongoing
• (6)

#03PG1 / Series Porsche GT2

2003 Porsche 911 GT2

$48.00

$144,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$1,612

2,700

3,000

• Purchase Option Agreement, to acquire the Underlying Asset for $137,000, entered on 10/24/2018
• Down-payment of $13,500 on 10/26/2018 and payment of 123,500 on 01/25/2019 were made and financed through non-interest-bearing payments from the Manager

#90ME1 / Series Mercedes Evo II

1990 Mercedes 190E 2.5-16 Evo II

$137.50

$275,000

Upfront Purchase

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Hold

$1,731

1,800

2,000

• Acquired Underlying Asset for $251,992 on 11/02/2018 through a non-interest-bearing payment by the Manager

#88PT1 / Series Porsche 944 Turbo S

1988 Porsche 944 Turbo S

$30.00

$66,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$90

1,833

2,200

• Purchase Option Agreement to acquire the Underlying Asset for $59,635 entered on 04/26/2019 with expiration on 06/26/2019

• Down-payment of 12,069 on 04/30/2019 was made and financed through a non-interest-bearing payment from the Manager


10


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#94LD1 / Series Lamborghini Diablo Jota

1994 Lamborghini Diablo SE30 Jota

$119.50

$597,500

Purchase Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$11,700

4,500

5,000

• Purchase Agreement to acquire Underlying Asset for $570,000 entered on 10/09/2018
• Downpayment of $57,000 on 10/26/2018, additional payment of $43,000 on 12/28/2018 and final payment of $470,000 on 02/15/2019 were made and financed through non-interest-bearing payments from the Manager

#65FM1 / Series Mustang Fastback

1965 Ford Mustang 2+2 Fastback

$41.25

$82,500

Purchase Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$2,163

1,800

2,000

• Purchase Agreement to acquire Underlying Asset for $75,000 entered on 12/04/2018
• Down-payment of $20,000 on 12/14/2018, additional payment of $20,000 on 01/03/2019 and final payment of $35,000 on 03/10/2019 were made and financed through non-interest-bearing payments from the Manager

#61MG1 / Series Maserati 3500GT

1961 Maserati 3500GT

$68.00

$340,000

Purchase Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$4,869

4,500

5,000

• Purchase Agreement to acquire the Underlying Asset for $325,000 entered on 12/04/2018
• Down-payment of $32,500 on 12/14/2018 and final payment of $292,500 on 04/05/2019 were made and financed through non-interest-bearing payments from the Manager

#82AV1 / Series Aston Martin Oscar India

1982 Aston Martin V8 Vantage Oscar India

$148.75

$297,500

Upfront Purchase

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$3,497

1,800

2,000

• Acquired Underlying Asset for $285,000 on 12/10/2018 through a non-interest-bearing payment from the Manager

#88LL1 / Series Lamborghini LM002

1988 Lamborghini LM002

$146.00

$292,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$3,939

1,800

2,000

• Purchase Option Agreement to acquire the Underlying Asset for $275,000 entered on 03/22/2019 with expiration on 05/22/2019
• Down-payment of $27,500 on 03/30/2019 was made and financed through a non-interest-bearing payment from the Manager

#89FT1 / Series Ferrari Testarossa

1989 Ferrari Testarossa

$45.00

$180,000

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$185

3,600

4,000

• Purchase Option Agreement to acquire the Underlying Asset for $172,500 entered on 03/20/2019 with expiration on 06/20/2019

#99SS1 / Series Shelby Series 1

1999 Shelby Series 1

$137.50

$137,500

Upfront Purchase

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$2,762

900

1,000

• Acquired Underlying Asset for $126,500 on 04/04/2019 financed through a non-interest-bearing payment from the Manager

#66AV1 / Series Aston Martin DB6 Vantage

1966 Aston Martin DB6 Vantage

$155.00

$465,000

Upfront Purchase

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$23,274

2,700

3,000

• Acquired Underlying Asset for $430,000 on 04/22/2019 financed through a non-interest-bearing payment from the Manager

#92CC1 / Series Corvette ZR1

1992 Chevrolet Corvette ZR1

$26.25

$52,500

Purchase Option Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$3,046

1,800

2,000

• Purchase Option Agreement to acquire the Underlying Asset for $45,000 entered on 04/29/2019 with expiration on 06/29/2019


11


Series / Series Name

Underlying Asset

Offering Price per Interest

Maximum Offering Size

Agreement Type

Opening Date

Closing Date

Status

Maximum Sourcing Fee

Minimum Membership Interests

Maximum Membership Interests

Comments

#94FS1 / Series Ferrari 348 Spider

1994 Ferrari 348 Spider

$72.50

$145,000

Purchase Agreement

Q2 2019 or Q3 2019

Q2 2019 or Q3 2019

Upcoming

$2,635

1,800

2,000

• Purchase Option Agreement to acquire the Underlying Asset for $135,000 entered on 04/26/2019 with expiration on 06/26/2019
• Down-payment of 13,500 on 04/29/2019 was made and financed through a non-interest-bearing payment from the Manager

        Note: Gray shading represents Series for which no Closing of an Offering has occurred. Orange represents sale of Series’ Underlying Asset.

(1)If exact offering dates (specified as Month Day, Year) are not shown, then expected offering dates are presented. 

(2)Interests sold in Series is limited to 2,000 Qualified Purchasers with a maximum of 500 Non-Accredited Investors. 

(3)Fees represent actual fees paid at closing of the offerings. 

(4)Represents actual number of Interests sold in completed Offering. 

(5)Interests in Series #77LE1 were issued under Rule 506(c) of Regulation D and were thus not qualified under the Company’s Offering Circular (as amended). All other Interests in Series of the Company were issued under Tier 2 of Regulation A+. 

(6)Values are based on current negotiations of the terms of the respective purchase option agreements or purchase agreements and may be subject to change 


12



RISK FACTORS

The Interests offered hereby are highly speculative in nature, involve a high degree of risk and should be purchased only by persons who can afford to lose their entire investment. There can be no assurance that the Company’s investment objectives will be achieved or that a secondary market would ever develop for the Interests, whether via the Platform, via third party registered broker-dealers or otherwise. The risks described in this section should not be considered an exhaustive list of the risks that prospective Investors should consider before investing in the Interests. Prospective Investors should obtain their own legal and tax advice prior to making an investment in the Interests and should be aware that an investment in the Interests may be exposed to other risks of an exceptional nature from time to time. The following considerations are among those that should be carefully evaluated before making an investment in the Interests.

Risks relating to the structure, operation and performance of the Company

An investment in an Offering constitutes only an investment in that Series and not in the Company or any Underlying Asset.

 

A purchase of Interests in a Series does not constitute an investment in either the Company or an Underlying Asset directly, or in any other Series of Interest.  This results in limited voting rights of the Investor, which are solely related to a particular Series, and are further limited by the Operating Agreement of the Company, described further herein.  Investors will have voting rights only with respect to certain matters, primarily relating to amendments to the Operating Agreement that would adversely change the rights of the Interest Holders and removal of the Manager for “cause”.  The Manager and the Asset Manager thus retain significant control over the management of the Company, each Series and the Underlying Assets.  Furthermore, because the Interests in a Series do not constitute an investment in the Company as a whole, holders of the Interests in a Series are not expected to receive any economic benefit from, or be subject to the liabilities of, the assets of any other Series.  In addition, the economic interest of a holder in a Series will not be identical to owning a direct undivided interest in an Underlying Asset because, among other things, a Series will be required to pay corporate taxes before distributions are made to the holders, and the Asset Manager will receive a fee in respect of its management of the Underlying Asset.

 

There is currently no trading market for our securities.

There is currently no public trading market for any Interests, and an active market may not develop or be sustained.  If an active public or private trading market for our securities does not develop or is not sustained, it may be difficult or impossible for you to resell your Interests at any price.  Even if a public or private market does develop, the market price could decline below the amount you paid for your Interests.

There may be state law restrictions on an Investor’s ability to sell the Interests.

Each state has its own securities laws, often called “Blue Sky” laws, which (1) limit sales of securities to a state’s residents unless the securities are registered in that state or qualify for an exemption from registration and (2) govern the reporting requirements for brokers and dealers doing business directly or indirectly in the state.  Before a security is sold in a state, there must be a registration in place to cover the transaction, or it must be exempt from registration.  Also, the broker or dealer must be registered in that state.  We do not know whether our securities will be registered, or exempt, under the laws of any states.  A determination regarding registration will be made by the broker-dealers, if any, who agree to serve as the market-makers for our Interests.  There may be significant state Blue Sky law restrictions on the ability of Investors to sell, and on purchasers to buy, our Interests.  In addition, Tier 2 of Regulation A limits qualified resales of our Interests to 30% of the aggregate offering price of a particular offering.  Investors should consider the resale market for our securities to be limited.  Investors may be unable to resell their securities, or they may be unable to resell them without the significant expense of state registration or qualification, or opinions to our satisfaction that no such registration or qualification is required.


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Lack of operating history.

The Company and each Series were recently formed and have not generated any revenues and have no operating history upon which prospective investors may evaluate their performance.  No guarantee can be given that the Company or any Series will achieve their investment objectives, the value of any Underlying Asset will increase or that any Underlying Asset will be successfully monetized.

Limited Investor appetite.

Due to the start-up nature of the Company and the Manager, there can be no guarantee that the Company will reach its funding target from potential investors with respect to any Series or future proposed series of interests.  In the event the Company does not reach a funding target, it may not be able to achieve its investment objectives by acquiring additional underlying assets through the issuance of further series of interests and monetizing them to generate distributions for Investors.  In addition, if the Company is unable to raise funding for additional series of interests, this may impact any investors already holding interests as they will not see the benefits which arise from economies of scale following the acquisition by other series of interests of additional underlying assets and other monetization opportunities (e.g., hosting events with the collection of underlying assets).

There are few, if any, businesses that have pursued a strategy or investment objective similar to the Company’s.

We believe other companies crowdfunding collectible automobiles or proposing to run a platform for crowdfunding of interests in collectible automobiles is very limited to date.  The Company and the Interests may not gain market acceptance from potential investors, potential Automobile Sellers or service providers within the collectible automobile industry, including insurance companies, storage facilities or maintenance partners.  This could result in an inability of the Manager to operate the Underlying Assets profitably.  This could impact the issuance of further series of interests and additional underlying assets being acquired by the Company.  This would further inhibit market acceptance of the Company and if the Company does not acquire any additional underlying assets, Investors would not receive any benefits which arise from economies of scale (such as reduction in storage costs as a large number of underlying assets are stored at the same facility, group discounts on automobile insurance and the ability to monetize underlying assets through collectible automobile museums or other Membership Experience Programs, as described in “Description of the Business – Business of the Company,” that would require the Company to own a substantial number of underlying assets).

Offering amount exceeds value of Underlying Asset.

The size of each Offering will exceed the purchase price of the related Underlying Asset as at the date of such Offering (as the proceeds of the Offering in excess of the purchase price of the Underlying Asset will be used to pay fees, costs and expenses incurred in making the Offering and acquiring the Underlying Asset).  If an Underlying Asset had to be sold and there has not been substantial appreciation of the value of the Underlying Asset prior to such sale, there may not be sufficient proceeds from the sale of the Underlying Asset to repay Investors the amount of their initial investment (after first paying off any liabilities on the automobile at the time of the sale including but not limited to any outstanding Operating Expenses Reimbursement Obligation) or any additional profits in excess of this amount.

Excess Operating Expenses.

Operating Expenses related to a particular Series incurred post-Closing shall be the responsibility of the Series.  However, if the Operating Expenses of a particular Series exceed the amount of revenues generated from the Underlying Asset of such Series, the Manager may (a) pay such Operating Expenses and not seek reimbursement, (b) loan the amount of the Operating Expenses to the particular Series, on which the Manager may impose a reasonable rate of interest, and be entitled to reimbursement of such amount from future revenues generated by the applicable Underlying Asset (“Operating Expenses Reimbursement Obligation(s)”), or (c) cause additional Interests to be issued in such Series in order to cover such additional amounts.

If there is an Operating Expenses Reimbursement Obligation, this reimbursable amount between related parties would be repaid from the Free Cash Flow generated by the applicable Series and could reduce the amount of any future distributions payable to Investors in that Series.  If additional Interests are issued in a particular Series, this


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would dilute the current value of the Interests of that Series held by existing Investors and the amount of any future distributions payable to such existing Investors.  Further, any additional issuance of Interests of a series could result in dilution of the holders of that Series.

Reliance on the Manager and its personnel.

 

The successful operation of the Company (and therefore, the success of the Interests) is in part dependent on the ability of the Manager and the Asset Manager to source, acquire and manage the underlying assets and for the Manager to maintain the Platform.  As RSE Markets and the Asset Manager have only been in existence since April 2016 and is an early-stage startup company, it has no significant operating history within the automobile sector, which would evidence its ability to source, acquire, manage and utilize the underlying assets.

The success of the Company (and therefore, the Interests) will be highly dependent on the expertise and performance of the Manager and the Asset Manager and their respective teams, the Manager’s expert network and other investment professionals (which may include third parties) to source, acquire and manage the underlying assets.  There can be no assurance that these individuals will continue to be associated with the Manager or the Asset Manager.  The loss of the services of one or more of these individuals could have a material adverse effect on the Underlying Assets and, in particular, their ongoing management and use to support the investment of the Interest Holders.

Furthermore, the success of the Company and the value of the Interests is dependent on there being a critical mass from the market for the Interests and that the Company is able to acquire a number of Underlying Assets in multiple series of interests so that the Investors can benefit from economies of scale which arise from holding more than one underlying asset (e.g., a reduction in transport costs if a large number of Underlying Assets are transported at the same time).  In the event that the Company is unable to source additional Underlying Assets due to, for example, competition for such Underlying Assets or lack of Underlying Assets available in the marketplace, then this could materially impact the success of the Company and each Series by hindering its ability to acquire additional Underlying Assets through the issuance of further series of interests and monetizing them together with the Underlying Assets at the Membership Experience Programs to generate distributions for Investors.

Liability of investors between series of interests.

The Company is structured as a Delaware series limited liability company that issues a separate series of interests for each Underlying Asset.  Each series of interests will merely be a separate series and not a separate legal entity.  Under the Delaware Limited Liability Company Act (the “LLC Act”), if certain conditions (as set forth in Section 18-215(b) of the LLC Act) are met, the liability of investors holding one series of interests is segregated from the liability of investors holding another series of interests and the assets of one series of interests are not available to satisfy the liabilities of other series of interests.  Although this limitation of liability is recognized by the courts of Delaware, there is no guarantee that if challenged in the courts of another U.S. State or a foreign jurisdiction, such courts will uphold a similar interpretation of Delaware corporation law, and in the past certain jurisdictions have not honored such interpretation.  If the Company’s series limited liability company structure is not respected, then Investors may have to share any liabilities of the Company with all investors and not just those who hold the same series of interests as them.  Furthermore, while we intend to maintain separate and distinct records for each series of interests and account for them separately and otherwise meet the requirements of the LLC Act, it is possible a court could conclude that the methods used did not satisfy Section 18-215(b) of the LLC Act and thus potentially expose the assets of a series to the liabilities of another series of interests.  The consequence of this is that Investors may have to bear higher than anticipated expenses which would adversely affect the value of their Interests or the likelihood of any distributions being made by a particular Series to its Investors.  In addition, we are not aware of any court case that has tested the limitations on inter-series liability provided by Section 18-215(b) in federal bankruptcy courts and it is possible that a bankruptcy court could determine that the assets of one series of interests should be applied to meet the liabilities of the other series of interests or the liabilities of the Company generally where the assets of such other series of interests or of the Company generally are insufficient to meet our liabilities.

If any fees, costs and expenses of the Company are not allocable to a specific Series of Interests, they will be borne proportionately across all of the Series of Interests (which may include future Series of Interests to be issued).  Although the Manager will allocate fees, costs and expenses acting reasonably and in accordance with its allocation policy (see “Description of the Business – Allocations of Expenses” section), there may be situations where it is


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difficult to allocate fees, costs and expenses to a specific series of interests and therefore, there is a risk that a series of interests may bear a proportion of the fees, costs and expenses for a service or product for which another series of interests received a disproportionately high benefit.

Potential breach of the security measures of the Platform.

The highly automated nature of the Platform through which potential investors may acquire or transfer interests may make it an attractive target and potentially vulnerable to cyber-attacks, computer viruses, physical or electronic break-ins or similar disruptions.  The Platform processes certain confidential information about investors, the Automobile Sellers and the underlying assets.  While we intend to take commercially reasonable measures to protect the confidential information and maintain appropriate cybersecurity, the security measures of the Platform, the Company, the Manager or the Company’s service providers could be breached.  Any accidental or willful security breaches or other unauthorized access to the Platform could cause confidential information to be stolen and used for criminal purposes or have other harmful effects.  Security breaches or unauthorized access to confidential information could also expose the Company to liability related to the loss of the information, time-consuming and expensive litigation and negative publicity, or loss of the proprietary nature of the Manager’s and the Company’s trade secrets.  If security measures are breached because of third-party action, employee error, malfeasance or otherwise, or if design flaws in the Platform software are exposed and exploited, the relationships between the Company, investors, users and the Automobile Sellers could be severely damaged, and the Company or the Manager could incur significant liability or have their attention significantly diverted from utilization of the underlying assets, which could have a material negative impact on the value of interests or the potential for distributions to be made on the interests.

Because techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are not recognized until they are launched against a target, the Company, the third-party hosting used by the Platform and other third-party service providers may be unable to anticipate these techniques or to implement adequate preventative measures.  In addition, federal regulators and many federal and state laws and regulations require companies to notify individuals of data security breaches involving their personal data.  These mandatory disclosures regarding a security breach are costly to implement and often lead to widespread negative publicity, which may cause investors, the Automobile Sellers or service providers within the industry, including insurance companies, to lose confidence in the effectiveness of the secure nature of the Platform.  Any security breach, whether actual or perceived, would harm the reputation of the Company and the Platform and the Company could lose investors and the Automobile Sellers.  This would impair the ability of the Company to achieve its objectives of acquiring additional underlying assets through the issuance of further series of interests and monetizing them at the Membership Experience Programs.

Use of broker for liquidity.

The Manager may arrange for some of the interests it holds in a series of interests to be sold by a broker pursuant to a “10b5-1 trading plan” pursuant to which the Company or its affiliates may sell interests at the discretion of their brokers or pursuant to a formula.  There is a risk that this may result in too many Interests being available for resale and the price of the relevant series of interests decreasing as supply outweighs demand.

In addition, the Manager intends to enter into an arrangement with one or more registered broker-dealers that would, subject to state and federal securities laws and the transfer restrictions under the Operating Agreement, facilitate the resale of securities acquired by investors on the Platform and potentially help provide liquidity to investors through an auction process or other trading mechanism (see “Description of the Business – Liquidity Platform” for additional information). There can be no guarantee that such liquidity or a market-clearing price will be established for any of the securities at such time as an investor desires to sell their securities or at all. Investors should be aware that the availability of any means of secondary sales on the Platform does not guarantee the ability to purchase or sell Interests on the secondary market. The ability to sell is in large part dependent on the market supply and demand at the time, as well as the availability of applicable exemptions under state and federal securities laws and the ability to sell or purchase under the Company’s Operating Agreement, and accordingly there can be no guarantee that an investor will be able to sell its interests at the desired time, if at all.


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Risks relating to the Offerings

We are offering our Interests pursuant to Tier 2 of Regulation A and we cannot be certain if the reduced disclosure requirements applicable to Tier 2 issuers will make our Interests less attractive to investors as compared to a traditional initial public offering.

As a Tier 2 issuer, we are subject to scaled disclosure and reporting requirements which may make an investment in our Interests less attractive to investors who are accustomed to enhanced disclosure and more frequent financial reporting.  The differences between disclosures for Tier 2 issuers versus those for emerging growth companies include, without limitation, only needing to file final semiannual reports as opposed to quarterly reports and far fewer circumstances where a current disclosure would be required.  In addition, given the relative lack of regulatory precedent regarding the recent amendments to Regulation A, there is some regulatory uncertainty in regard to how the Commission or the individual state securities regulators will regulate both the offer and sale of our securities, as well as any ongoing compliance that we may be subject to.  For example, a number of states have yet to determine the types of filings and amount of fees that are required for such an offering.  If our scaled disclosure and reporting requirements, or regulatory uncertainty regarding Regulation A, reduces the attractiveness of the Interests, we may be unable to raise the funds necessary to fund future offerings, which could impair our ability to develop a diversified portfolio of collectible automobiles and create economies of scale, which may adversely affect the value of the Interests or the ability to make distributions to Investors.

There may be deficiencies with our internal controls that require improvements, and if we are unable to adequately evaluate internal controls, we may be subject to sanctions.

As a Tier 2 issuer, we will not need to provide a report on the effectiveness of our internal controls over financial reporting, and we will be exempt from the auditor attestation requirements concerning any such report so long as we are a Tier 2 issuer.  We are in the process of evaluating whether our internal control procedures are effective and therefore there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such evaluations.

Impact of non-compliance with regulations.

The Interests are being sold by Cuttone, which is a registered broker-dealer under the Securities Exchange Act of 1934 (the “Exchange Act”) and member of FINRA and is registered in each state where the offer and sales of the Interests will occur, and it is anticipated that Interests will be offered and sold only in states where Cuttone is registered as a broker-dealer. If a regulatory authority determines that the Manager, which is not a registered broker-dealer under the Exchange Act or any state securities laws, has itself engaged in brokerage activities that require registration, including initial sale of the Interests on the Platform and permitting a registered broker-dealer to facilitate resales or other liquidity of the Interests on the Platform (see “Description of the Business - Liquidity Platform” for additional information), the Manager may need to stop operating and therefore, the Company would not have an entity managing the Underlying Asset.  In addition, if the Manager is found to have operated as a ‘broker-dealer’ without being properly registered, there is a risk that any series of interests offered and sold while the Manager was not registered may be subject to a right of rescission, which may result in the early termination of the Offerings.

Furthermore, the Company is not registered and will not be registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”), and neither the Manager nor the Asset Manager is or will be registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”) and the Interests do not have the benefit of the protections of the Investment Company Act or the Investment Advisers Act.  The Company, the Manager and the Asset Manager have taken the position that the underlying assets are not “securities” within the meaning of the Investment Company Act or the Investment Advisers Act, and thus the Company’s assets will consist of less than 40% investment securities under the Investment Company Act and the Manager and the Asset Manager are not and will not be advising with respect to securities under the Investment Advisers Act.  This position, however, is based upon applicable case law that is inherently subject to judgments and interpretation.  If the Company were to be required to register under the Investment Company Act or the Manager or the Asset Manager were to be required to register under the Investment Advisers Act, it could have a material and adverse impact on the results of operations and expenses of each Series and the Manager and the Asset


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Manager may be forced to liquidate and wind up each series of interests or rescind the Offerings for any of the Series or the offering for any other series of interests.

Possible Changes in Federal Tax Laws.

The Code is subject to change by Congress, and interpretations of the Code may be modified or affected by judicial decisions, by the Treasury Department through changes in regulations and by the Internal Revenue Service through its audit policy, announcements, and published and private rulings. Although significant changes to the tax laws historically have been given prospective application, no assurance can be given that any changes made in the tax law affecting an investment in any series of interest of the Company would be limited to prospective effect. For instance, prior to effectiveness of the Tax Cuts and Jobs Act of 2017, an exchange of the Interests of one series for another might have been a non-taxable ‘like-kind exchange’ transaction, while transactions now only qualify for that treatment with respect to real property.  Accordingly, the ultimate effect on an Investor’s tax situation may be governed by laws, regulations or interpretations of laws or regulations which have not yet been proposed, passed or made, as the case may be.

Risks specific to the collectible automobile industry

 

Potential negative changes within the collectible automobile industry.

 

The collectible automobile industry is subject to various risks, including, but not limited to, currency fluctuations, changes in tax rates, consumer confidence and brand exposure, as well as risks associated with the automobile industry in general, including, but not limited to, economic downturns and volatile fuel prices as well as availability of desirable underlying assets. Changes in the collectible automobile industry could have a material and adverse effect upon the Company’s ability to achieve its investment objectives of acquiring additional underlying assets through the issuance of further series of interests and monetizing them at the Membership Experience Programs to generate distributions for Investors.

Lack of Diversification.

It is not anticipated that any Series would own assets other than its respective Underlying Asset, plus potential cash reserves for maintenance, storage, insurance and other expenses pertaining to the Underlying Asset and amounts earned by such Series from the monetization of the Underlying Asset.  Investors looking for diversification will have to create their own diversified portfolio by investing in other opportunities in addition to any one Series.

Industry concentration and general downturn in industry.

Given the concentrated nature of the Underlying Assets (i.e., only collectible automobiles) any downturn in the collectible automobiles industry is likely to impact the value of the Underlying Assets, and consequently the value of the Interests.  Furthermore, as collectable automobiles are a collectible item, the value of such collectable automobiles may be impacted if an economic downturn occurs and there is less disposable income for individuals to invest in products such as collectable automobiles.  In the event of a downturn in the industry, the value of the Underlying Assets is likely to decrease.

Volatile demand for collectible goods, including collectible automobiles.

Volatility of demand for luxury goods as evidenced by the S&P Global Luxury index, in particular high value collectible automobiles, may adversely affect a Series’ ability to achieve its investment purpose.  The collectible automobile market has been subject to volatility in demand in recent periods, particularly around certain categories of assets and investor tastes (e.g. American muscle cars).  Demand for high value collectible automobiles depends to a large extent on general, economic, political and social conditions in a given market as well as the tastes of the collectible automobile and enthusiast community resulting in changes of which automobile brands and models are most sought after.  Demand for collectible automobiles may also be affected by factors directly impacting automobile prices or the cost of purchasing and operating automobiles, such as the availability and cost of financing, prices of parts and components, insurance, storage, transport, fuel costs and governmental regulations, including tariffs, import


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regulation and other taxes, including taxes on collectible goods, resulting in limitations to the use of collectible automobiles or collectible goods more generally.  Volatility in demand may lead to volatility in the value of collectible automobiles, which may result in further downward price pressure and adversely affect the Company’s ability to achieve its objective of acquiring additional underlying assets through the issuance of further series of interests and monetizing them at the Membership Experience Programs to generate distributions for Investors. In addition, the lack of demand may reduce any further issuance of series of interests and acquisition of more underlying assets, thus limiting the benefits the Investors already holding series of interests could receive from there being economies of scale (e.g., cheaper insurance due to a number of underlying assets requiring insurance) and other monetization opportunities (e.g., hosting car shows with the collection of underlying assets).  These effects may have a more pronounced impact given the limited number of underlying assets held by the Company in the short-term.

Difficulties in determining the value of the underlying assets.

As explained in the “Description of the Business” section, collectible automobiles are difficult to value, and it is hoped the Platform will help create a market by which the Interests (and, indirectly, the Underlying Assets) may be more accurately valued due to the creation of a larger market for collectible automobiles than exists from current means.  Until the Platform has created such a market, valuations of the underlying assets will be based upon the subjective approach taken by the members of the Manager’s expert network and members of the Advisory Board, valuation experts appointed by the Automobile Seller or other data provided by third parties (e.g., auction results, accident records and previous sales history).  The Manager sources data from reputable valuation providers in the industry, including but not limited to the Hagerty Group (“Hagerty”), Kidston, HAGI, NADA, HI-BID and others; however, it may rely on the accuracy of the underlying data without any means of detailed verification.  Consequently, valuations may be uncertain.

The value of the Underlying Assets and, consequently, the value of an Investor’s Interests can go down as well as up.  Valuations are not guarantees of realizable price, do not necessarily represent the price at which the Interests may be sold on the Platform and the value of the Underlying Assets may be materially affected by a number of factors outside the control of the Company, including, any volatility in the economic markets, the condition of the Underlying Assets and physical matters arising from the state of their repair and condition.

Risks relating to the Underlying Assets

Potential loss of or damage to the Underlying Assets.

Any Underlying Asset may be lost or damaged by causes beyond the Company’s control when in storage or on display.  There is also a possibility that an Underlying Asset could be lost or damaged at Membership Experience Programs.  Any damage to an Underlying Asset or other liability incurred as a result of participation in these programs, including personal injury to participants, could adversely impact the value of the Underlying Asset or adversely increase the liabilities or Operating Expenses of its related Series of Interests.  Further, when an Underlying Asset has been purchased, it will be necessary to transport it to the Asset Manager’s preferred storage location or as required to participate in Membership Experience Programs.  An Underlying Asset may be lost or damaged in transit, and transportation, insurance or other expenses may be higher than anticipated due to the locations of particular events.  Although we intend for the Underlying Assets to be insured at replacement cost (subject to policy terms and conditions), in the event of any claims against such insurance policies, there can be no guarantee that any losses or costs will be reimbursed, that an Underlying Asset can be replaced on a like-for-like basis or that any insurance proceeds would be sufficient to pay the full market value (after paying for any outstanding liabilities including, but not limited to any outstanding balances under Operating Expenses Reimbursement Obligations), if any, of the Interests.  In the event that damage is caused to an Underlying Asset, this will impact the value of the Underlying Asset, and consequently, the Interests related to the Underlying Asset, as well as the likelihood of any distributions being made by the applicable Series to its Investors.

In addition, at a future date, the Manager may decide to expand the Membership Experience Programs to include models where individual investors may, in the sole discretion of the Manager, be able to become the caretaker of underlying assets, including the Underlying Assets associated with Interests being offered hereunder, for a certain period of time for an appropriate fee, assuming that the Manager believes that such models are expected to result in higher overall financial returns for all investors in any underlying assets used in such models.  The feasibility from an


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insurance, safety, technological and financial perspective of such models has not yet been analyzed but may significantly increase the risk profile and the chance for loss of or damage to any underlying asset if utilized in such models.

Competition in the collectible automobile industry from other business models.

There is potentially significant competition for the underlying assets from many different market participants.  While the majority of transactions continue to be peer-to-peer with very limited public information, other market players such as collectible automobile dealers and auction houses continue to play an increasing role. In addition, the underlying market is being driven by the increasing number of widely popular collectible automobile TV shows, including Jay Leno’s Garage, Wayne Carini’s Chasing Classic Cars and Mike Brewer’s and Edward China’s Wheeler Dealers.  This competition may impact the liquidity of the Interests, as it is dependent on the Company acquiring attractive and desirable underlying assets to ensure that there is an appetite of potential investors for the Interests. In addition, there are companies that are developing crowd funding models for other alternative asset classes such as art or wine, who may decide to enter the collectible automobile market as well.

Potentially high storage, maintenance and insurance costs for the Underlying Assets.

In order to protect and care for the Underlying Assets, the Manager must ensure adequate storage facilities, maintenance work and insurance coverage.  The cost of care may vary from year to year depending on the amount of maintenance performed on a particular underlying asset, changes in the insurance rates for covering the underlying assets and changes in the cost of storage for the underlying assets.  It is anticipated that as the Company acquires more underlying assets, the Manager may be able to negotiate a discount on the costs of storage, maintenance and insurance due to economies of scale.  These reductions are dependent on the Company acquiring a number of underlying assets and service providers being willing to negotiate volume discounts and, therefore, are not guaranteed.

If costs turn out to be higher than expected, this would impact the value of the Interests related to the Underlying Assets, the amount of distributions made to Investors holding the Interests, on potential proceeds from a sale of the Underlying Asset (if ever), and any capital proceeds returned to Investors after paying for any outstanding liabilities, including, but not limited to any outstanding balances under Operating Expenses Reimbursement Obligation. See “Lack of distributions and return of capital” section also for further details of the impact of these costs on returns to Investors.

Refurbishment and inability to source original parts.

There may be situations in the future that require the Company to undertake refurbishments of an Underlying Asset (e.g., due to natural wear and tear and through the use of such Underlying Assets at Membership Experience Programs).  For example, the Company undertook various refurbishments to the Series Lamborghini Jalpa as described in the “Description of the Series Lamborghini Jalpa” section and the Series Jaguar XJ220 as described in the “Description of the Series Jaguar XJ220.”  Where it does so, it will be dependent on the performance of third-party contractors and sub-contractors and may be exposed to the risks that a project will not be completed within budget, within the agreed timeframe or to the agreed specifications.  While the Company will seek to mitigate its exposure, any failure on the part of a contractor to perform its obligations could adversely impact the value of any Underlying Assets and therefore, the value of the Interests related to such Underlying Assets.

In addition, the successful refurbishment of the collectible automobiles may be dependent on sourcing replacement original and authentic parts.  Original parts for collectible automobiles are rare and in high demand and, therefore, at risk of being imitated.  There is no guarantee that any parts sourced for any Underlying Assets will be authentic (e.g., not a counterfeit).  If such parts cannot be sourced or, those parts that are sourced are not authentic, the value of the Underlying Assets and therefore, the value of the related Interests, may be materially adversely affected.  Furthermore, if any Underlying Asset is damaged, we may be unable to source original and authentic parts for that Underlying Asset, and the use of non-original or in authentic parts may decrease the value of the Underlying Asset.


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Insurance may not cover all losses.

Insurance of any Underlying Asset may not cover all losses.  There are certain types of losses, generally of a catastrophic nature, such as earthquakes, floods, hurricanes, terrorism or acts of war that may be uninsurable or not economically insurable. Inflation, environmental considerations and other factors, including terrorism or acts of war, also might make insurance proceeds insufficient to repair or replace an asset if it is damaged or destroyed.  Under such circumstances, the insurance proceeds received might not be adequate to restore a Series’ economic position with respect to its affected Underlying Asset.  Furthermore, the Series related to such affected Underlying Assets would bear the expense of the payment of any deductible.  Any uninsured loss could result in both loss of cash flow from, and a decrease in value of, the affected Underlying Asset and, consequently, the Series that relates to such Underlying Asset.

Third party liability.

Each Series will assume all of the ownership risks attached to its Underlying Asset, including third party liability risks.  Therefore, a Series may be liable to a third party for any loss or damages incurred by such third party in connection with the Series’ Underlying Asset.  This would be a loss to the Series and, in turn, adversely affect the value of the Series and would negatively impact the ability of the Series to make distributions.

Dependence on the brand of the manufacturer of underlying assets.

The underlying assets of the Company will consist of automobiles from a very wide variety of manufacturers, many of which are still in operation today.  The demand for the underlying assets, and therefore, each Series of Interests, may be influenced by the general perception of the automobiles that manufacturers are producing today.  In addition, the manufacturers’ business practices may result in the image and value of automobiles produced by certain manufacturers being damaged.  This in turn may have a negative impact on the underlying assets made by such manufacturers and, in particular, the value of the underlying assets and, consequently, the value of the series of interests that relate to such underlying asset.

Dependence of an underlying asset on prior user or association.

The value of an underlying asset of the Company may be connected with its prior use by, or association with, a certain person or group or in connection with certain pop culture events or films (prior to or following the acquisition of the underlying asset by the Company). For example, we believe the 911 Speedster has additional value due to its prior ownership by Jerry Seinfeld.  In the event that such person or group loses public affection, then this may adversely impact the value of the underlying asset and therefore, the series of interests that relate to such underlying asset.

Title or authenticity claims on an underlying asset.

There is no guarantee that an underlying asset will be free of any claims regarding title and authenticity (e.g., counterfeit or previously stolen collectible automobiles or parts), or that such claims may arise after acquisition of an underlying asset by a Series of Interests.  The Company may not have complete ownership history or maintenance records for an underlying asset.  In particular, the Company does not have the complete ownership history of the Series Boss Mustang from the original sale of the vehicle in 1969 to the purchase of the Series Boss Mustang by the Company in 2016.  In the event of a title or authenticity claim against the Company, the Company may not have recourse against the Automobile Seller or the benefit of insurance and the value of the Underlying Asset and the Series that relates to that Underlying Asset, may be diminished.

Forced sale of underlying assets.

The Company may be forced to cause its various series to sell one or more of the underlying assets (e.g., upon the bankruptcy of the Manager) and such a sale may occur at an inopportune time or at a lower value than when the underlying assets were first acquired or at a lower price than the aggregate of costs, fees and expenses used to purchase the underlying assets.  In addition, there may be liabilities related to the underlying assets, including, but not


20



limited to Operating Expenses Reimbursement Obligations on the balance sheet of any series at the time of a forced sale, which would be paid off prior to Investors receiving any distributions from a sale.  In such circumstances, the capital proceeds from any Underlying Asset and, therefore, the return available to Investors of the applicable Series, may be lower than could have been obtained if the Series held the Underlying Asset and sold it at a later date.

Lack of distributions and return of capital.

The revenue of each Series is expected to be derived primarily from the use of its Underlying Asset in Membership Experience Programs including track-day events, “museum” style locations to visit assets and asset sponsorship models.  Membership Experience Programs have not been proven with respect to the Company and there can be no assurance that Membership Experience Programs will generate sufficient proceeds to cover fees, costs and expenses with respect to any Series.  In the event that the revenue generated in any given year does not cover the Operating Expenses of the applicable Series, the Manager may (a) pay such Operating Expenses and not seek reimbursement, (b) provide a loan to the Series in the form of an Operating Expenses Reimbursement Obligation, on which the Manager may impose a reasonable rate of interest, and/or (c) cause additional Interests to be issued in the applicable Series in order to cover such additional amounts.

Any amount paid to the Manager in satisfaction of an Operating Expenses Reimbursement Obligation would not be available to Investors as a distribution.  In the event additional Interests in a Series are issued, Investors in such Series would be diluted and would receive a smaller portion of distributions from future Free Cash Flows, if any.  Furthermore, if a Series or the Company is dissolved, there is no guarantee that the proceeds from liquidation will be sufficient to repay the Investors their initial investment or the market value, if any, of the Interests at the time of liquidation.  See “Potentially high storage, maintenance and insurance costs for the underlying assets” for further details on the risks of escalating costs and expenses of the underlying assets.

Assets may not be held long term

The Company intends to hold the series for an extended period but may receive unsolicited offers to purchase the series’ underlying asset in its entirety. If the Advisory Board deems the sale to be generally beneficial to the majority of shareholders, the underlying asset would be sold, exited from the platform with proceeds of the sale distributed to its series’ interest holders. Even though the Advisory Board deems the sale to generally beneficial to the majority of shareholders, there might be unique circumstances where not all shareholders align with the Advisory Board’s decision.  

Risks Related to Ownership of our Interests

Lack of voting rights.

The Manager has a unilateral ability to amend the Operating Agreement and the allocation policy in certain circumstances without the consent of the Investors.  The Investors only have limited voting rights in respect of the Series of Interests.  Investors will therefore be subject to any amendments the Manager makes (if any) to the Operating Agreement and allocation policy and also any decision it takes in respect of the Company and the applicable Series, which the Investors do not get a right to vote upon. Investors may not necessarily agree with such amendments or decisions and such amendments or decisions may not be in the best interests of all of the Investors as a whole but only a limited number.

Furthermore, the Manager can only be removed as manager of the Company and each Series in very limited circumstances, following a non-appealable judgment of a court of competent jurisdiction to have committed fraud in connection with the Company or a series of interests. Investors would therefore not be able to remove the Manager merely because they did not agree, for example, with how the Manager was operating an Underlying Asset.


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The offering price for the Interests determined by us may not necessarily bear any relationship to established valuation criteria such as earnings, book value or assets that may be agreed to between purchasers and sellers in private transactions or that may prevail in the market if and when our Interests can be traded publicly.

The price of the Interests was derived as a result of our negotiations with Automobile Sellers based upon various factors including prevailing market conditions, our future prospects and our capital structure, as well as certain expenses incurred in connection with the Offering and the acquisition of each Underlying Asset.  These prices do not necessarily accurately reflect the actual value of the Interests or the price that may be realized upon disposition of the Interests.

If a market ever develops for the Interests, the market price and trading volume of our Interests may be volatile.

If a market develops for the Interests, the market price of the Interests could fluctuate significantly for many reasons, including reasons unrelated to our performance, any Underlying Asset or any Series, such as reports by industry analysts, investor perceptions, or announcements by our competitors regarding their own performance, as well as general economic and industry conditions.  For example, to the extent that other companies, whether large or small, within our industry experience declines in their share price, the value of Interests may decline as well.

In addition, fluctuations in operating results of a particular series of interest or the failure of operating results to meet the expectations of investors may negatively impact the price of our securities.  Operating results may fluctuate in the future due to a variety of factors that could negatively affect revenues or expenses in any particular reporting period, including vulnerability of our business to a general economic downturn; changes in the laws that affect our operations; competition; compensation related expenses; application of accounting standards; seasonality; and our ability to obtain and maintain all necessary government certifications or licenses to conduct our business.

Funds from purchasers accompanying subscriptions for the Interests will not accrue interest while in escrow.

The funds paid by a subscriber for Interests will be held in a non-interest-bearing escrow account until the admission of the subscriber as an Investor in the applicable Series, if such subscription is accepted.  Purchasers will not have the use of such funds or receive interest thereon pending the completion of the Offering.  No subscriptions will be accepted, and no Interests will be sold unless valid subscriptions for the Offering are received and accepted prior to the termination of the applicable Offering Period.  It is also anticipated that subscriptions will not be accepted from prospective Investors located in states where Cuttone is not registered as a broker-dealer.  If we terminate an Offering prior to accepting a subscriber’s subscription, escrowed funds will be returned promptly, without interest or deduction, to the proposed Investor.

Exclusive forum and waiver of jury trial.

Our Operating Agreement, to the fullest extent permitted by applicable law and subject to limited exceptions, provides for investors to consent to exclusive jurisdiction to Delaware Court of Chancery and for a waiver of the right to a trial by jury.  These provisions may have the effect of limiting the ability of investors to bring a legal claim against us due to geographic limitations and may limit an investor’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us. Furthermore, waiver of a trial by jury may disadvantage you to the extent a judge might be less likely than a jury to resolve an action in your favor. Further, if a court were to find this exclusive forum provision inapplicable to, or unenforceable in respect of, an action or proceeding against us, then we may incur additional costs associated with resolving these matters in other jurisdictions, which could adversely affect our business and financial condition.


22



USE OF PROCEEDS – Series #88LL1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #88LL1 Asset Cost (1)

$275,000

94.18%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$0

0.00%

Cash on Series Balance Sheet

$5,000

1.71%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquires 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$2,146

0.74%

Offering Expenses (3)

$2,190

0.75%

Acquisition Expenses (4)

Refurbishment & maintenance

$0

0.00%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$3,000

1.03%

Registration and other vehicle-related fees

$300

0.10%

Finder Fee

$0

0.00%

Marketing Materials

$600

0.21%

Sourcing Fee (Assuming the Manager acquires 2.00% of Interests)

$3,764

1.29%

Total Fees and Expenses

$12,000

4.11%

Total Proceeds

$292,000

100.00%

 

(1)Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company entered into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


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Series Detail Table

Agreement Type

Purchase Option Agreement

Date of Agreement

3/22/2019

Expiration Date of Agreement

5/22/2019

Downpayment Amount

$27,500

Installment 1 Amount

$247,500

Installment 2 Amount

$0

Minimum Brokerage Fee

$1,971

Maximum Brokerage Fee

$2,146

Custody Fee

$2,190

Acquisition Expenses

$3,900

Minimum Sourcing Fee

$3,764

Maximum Sourcing Fee

$3,939

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


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DESCRIPTION OF THE SERIES LAMBORGHINI LM002

Investment Overview

 

Upon completion of the Series #88LL1 Offering, Series #88LL1 will purchase a 1988 Lamborghini LM002 (at times described as the “LM002” throughout this Offering Circular) as the underlying asset for Series #88LL1 (the “Series Lamborghini LM002” or the “Underlying Asset” with respect to Series #88LL1, as applicable), the specifications of which are set forth below. 

In 1977 Lamborghini built its first military prototype vehicle, named internally at the “Cheetah,” to compete for the American government contract that would eventually be awarded to AM General for the Humvee. 

Lamborghini made the most of this failure by tasking engineer Giulio Alfieri to turn the Cheetah’s 4x4 platform into a usable road-going model for the general public. 

Alfieri’s first rendition, the “LM001,” used a rear-mounted V-8 engine. The LM002 used a more conventional front-engine setup and implemented the Lamborghini Countach V-12 in place of the LM001’s V-8.  

The LM002 was unveiled at the 1986 Brussels Auto Show, and became known in the US as the “Rambo-Lambo” 

The Series Lamborghini LM002 is 1 of only 328 examples of the LM002 built from 1986 to 1993 and 1 of 40 carbureted examples. 

The Series Lamborghini LM002 presents in highly original condition and retains all factory accessories. Highly desirable Pirelli Scorpion tires are also retained. 

Notable owners of other LM002s include Sylvester Stallone, Tina Turner, Van Halen, Malcolm Forbes, Mike Tyson, H.R.H. King Hassan of Morocco, and Pablo Escobar. 

 

Asset Description

 

Ownership & Maintenance History

 

As with many older Lamborghinis, early ownership history is not fully known. The earliest entries on the Underlying Asset’s Carfax place the vehicle in California beginning in 1992. The Underlying Asset subsequently went to Miami in 2004 and New York in 2007. 

The Underlying Asset has appeared at three major auctions, including Barrett-Jackson in 1993, Gooding & Co’s Scottsdale sale in 2015 and the RM Sotheby’s 2018 Monterey sale, where it did not sell. 

The Underlying Asset joined a private collection in Texas in 2015 after trading hands at Gooding & Co’s Scottsdale sale. This owner added fewer than 100 miles between acquiring the Underlying Asset and consigning it with RM Sotheby’s in 2018. Ahead of the 2018 RM Sotheby’s Monterey Sale, the Underlying Asset was serviced and thoroughly detailed, including steam cleaning of the engine and underside. Following a no-sale at Monterey, the Underlying Asset was acquired by a Texas-based collector car dealership.  

The car has recently been serviced and detailed in preparation for the offering to Rally Rd investors.  

 

Notable Features

 

Includes optional factory tool box, original owner’s manual, and original tonneau cover 

In 2011, the dashboard was signed by Valentino Balboni, Lamborghini’s legendary test driver 

Original Pirelli Scorpion tires are retained and included with vehicle 

Early carbureted “down-draft” engine  

 

Notable Defects

 

The Underlying Asset is believed to have original paint, though we do not have sufficient information to rule out a possible repaint in its original color early in its life. This was typical for LM002s, as paint quality from the factory was often lacking. 

The paint has slight chipping throughout, including the driver’s door, and several paint runs are apparent. 


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Details

 

Series 1988 Lamborghini LM002

Year

1988

Production Total

326

Mileage

29,749 km

Engine

5.2L V12

Transmission

5-Speed Manual

Color EXT

Acapulco Blue

Color INT

Grey

Documentation

Original owner’s manual

Condition

Largely original with single repaint

Books/manuals/tools

Yes

Restored

No

Paint

Original (believed)

Vin #

ZA9LU45A9JLA12120

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series Lamborghini LM002 going forward.


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USE OF PROCEEDS – Series #89FT1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #89FT1 Asset Cost (1)

$172,500

95.83%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$0

0.00%

Cash on Series Balance Sheet

$1,700

0.94%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquires 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$1,323

0.74%

Offering Expenses (3)

$1,350

0.75%

Acquisition Expenses (4)

Refurbishment & maintenance

$0

0.00%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$2,350

1.31%

Registration and other vehicle-related fees

$300

0.17%

Finder Fee

$0

0.00%

Marketing Materials

$400

0.22%

Sourcing Fee (Assuming the Manager acquires 2.00% of Interests)

$77

0.04%

Total Fees and Expenses

$5,800

3.22%

Total Proceeds

$180,000

100.00%

 

(1)Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company entered into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


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Series Detail Table

Agreement Type

Purchase Option Agreement

Date of Agreement

3/20/2019

Expiration Date of Agreement

6/20/2019

Downpayment Amount

$0

Installment 1 Amount

$172,500

Installment 2 Amount

$0

Minimum Brokerage Fee

$1,215

Maximum Brokerage Fee

$1,323

Custody Fee

$1,350.00

Acquisition Expenses

$3,050.00

Minimum Sourcing Fee

$77

Maximum Sourcing Fee

$185

 

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


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DESCRIPTION OF THE SERIES 1989 FERRARI TESTAROSSA

Investment Overview

 

Upon completion of the Series #89FT1 Offering, Series #89FT1 will purchase a 1989 Ferrari Testarossa (at times described as the “1989 Testarossa” throughout this Offering Circular) as the underlying asset for Series #89FT1 (the “Series 1989 Ferrari Testarossa” or the “Underlying Asset” with respect to Series #89FT1, as applicable), the specifications of which are set forth below. 

The Ferrari Testarossa represents a commercially successful effort to create a 12-cylinder flagship Ferrari with increased usability yet better performance than its 12-cylinder predecessors. These advancements were packaged in a Pininfarina designed body with a 0.36 coefficient of drag. This model was especially significant as the first 12-cylinder Ferrari sold in North America since the 1973 Daytona model. 

Only 261 US specification Testarossas were produced for the 1989 model year out of a total production of 1,126. The Series 1989 Ferrari Testarossa is finished in Azzurro Metallizzato paint over Blue Leather. 

The Series 1989 Ferrari Testarossa has had only one owner from new, shows 5,415 original miles on the odometer, retains service records from new, and is Ferrari Classiche certified. 

 

Asset Description

 

Ownership & Maintenance History

 

The Series 1989 Ferrari Testarossa has been in a personal collection since new and was always serviced at Ferrari Lake Forest in Lake Bluff, Illinois. The Underlying Asset includes service records dating back to 1990.  

The Series 1989 Ferrari Testarossa received a major service on March 27, 2018 at Ferrari Lake Forest, including an engine removal to replace timing belts.  

The Series 1989 Ferrari Testarossa is certified as original specification by the Ferrari Classiche department.  

 

Notable Features

 

Azzurro Metallizzato exterior paint 

Ferrari Classiche certification 

Original books and tools 

 

Notable Defects

 

The Underlying Asset presents in condition commensurate with mileage and frequency of servicing. 

Small chips are visible on the hood and lower valence commensurate with mileage and driving frequency.   


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Details

 

Series 1989 Ferrari Testarossa

Year

1989

Production Total (‘89 Testarossa)

1,126 (global) 261 (US market spec)

Mileage

5,415 miles

Engine

4.9 liter 12-cylinder

Transmission

5 Speed, Manual

Color EXT

Azzurro Metallizzato

Color INT

Blue

Documentation

Carfax, service records, Ferrari Classiche certificate

Condition

Original, Excellent

Books/manuals/tools

Yes

Restored

No

Paint

Original

Vin #

ZFFSG17A5K0081137

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series 1989 Ferrari Testarossa going forward.


30



USE OF PROCEEDS – Series #99SS1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #99SS1 Asset Cost (1)

$126,500

92.00%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$75

0.05%

Cash on Series Balance Sheet

$2,500

1.82%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquires 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$1,011

0.74%

Offering Expenses (3)

$1,031

0.75%

Acquisition Expenses (4)

Refurbishment & maintenance

$716

0.52%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$2,200

1.60%

Registration and other vehicle-related fees

$300

0.22%

Finder Fee

$0

0.00%

Marketing Materials

$488

0.35%

Sourcing Fee (Assuming the Manager acquires 2.00% of Interests)

$2,679

1.95%

Total Fees and Expenses

$8,425

6.13%

Total Proceeds

$137,500

100.00%

 

(1)Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company plans to enter into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


31



Series Detail Table

Agreement Type

Upfront Purchase

Date of Agreement

4/4/2019

Expiration Date of Agreement

 

Downpayment Amount

$0

Installment 1 Amount

$126,500

Installment 2 Amount

$0

Minimum Brokerage Fee

$928

Maximum Brokerage Fee

$1,011

Custody Fee

$1,031

Acquisition Expenses

$3,704

Minimum Sourcing Fee

$2,679

Maximum Sourcing Fee

$2,762

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


32



DESCRIPTION OF THE SERIES 1999 SHELBY SERIES 1

Investment Overview

 

Upon completion of the Series #99SS1 Offering, Series #99SS1 will purchase a 1999 Shelby Series 1 (at times described as the “Shelby Series 1” throughout this Offering Circular) as the underlying asset for Series #99SS1 (the “Series 1999 Shelby Series 1” or the “Underlying Asset” with respect to Series #99SS1, as applicable), the specifications of which are set forth below. 

The Shelby Series 1 was developed by legendary racer and factory tuner Carroll Shelby to be a modern successor to his infamous “Shelby Cobra” from the 1960s, which was one of the most iconic American cars. 

Only 249 examples of the Series 1 were ever built, with only 60 examples delivered with a supercharged motor. 

The Shelby Series 1 was developed using advanced engineering and construction techniques and used a high-strength all-aluminum chassis with modern carbon fiber bodywork. 

The Shelby Series 1 uses a Shelby-modified Oldsmobile Aurora 4.0-liter engine and is one of only 60 examples delivered with a supercharger, producing 450hp. 

The Series 1999 Shelby Series 1 has had only one owner from new and shows fewer than 2,600 original miles since new. 

 

Asset Description

 

Ownership & Maintenance History

 

The Series 1999 Shelby Series 1 has had only one owner since new.  

The car is up to date with its servicing, and includes paperwork going back to its original purchase.  

 

Notable Features

 

Centennial Silver paint with Garnet Red Le Mans stripes 

One of 60 supercharged examples 

 

Includes correspondence with Carroll Shelby   

 

Notable Defects

 

Small chips are visible on the hood and lower valence commensurate with mileage and driving frequency.  

Carroll Shelby’s autograph on the center console has been partially rubbed away.  

Carroll Shelby’s autograph on the glovebox has faded and is barely legible.  

Cosmetic scratches on the top of the passenger side inner fender well. 


33



Details

 

Series 1999 Shelby Series 1

Year

1999

Production Total

249

Mileage

2,572 miles

Engine

4.0-liter V-8

Transmission

6 Speed, Manual

Color EXT

Garnet Silver with Garnet Red Le Mans stripes

Color INT

Black/Grey

Documentation

Carfax, service records, Correspondence from Carroll Shelby

Condition

Original, Excellent

Books/manuals/tools

Yes

Restored

No

Paint

Original

Vin #

5CXSA1813XL000202

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series 1999 Shelby Series 1 going forward.


34



USE OF PROCEEDS – Series #66AV1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #66AV1 Asset Cost (1)

$430,000

92.47%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$0

0.00%

Cash on Series Balance Sheet

$3,000

0.65%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquired 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$3,418

0.74%

Offering Expenses (3)

$3,488

0.75%

Acquisition Expenses (4)

Refurbishment & maintenance

$0

0.00%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$1,000

0.22%

Registration and other vehicle-related fees

$300

0.06%

Finder Fee

$0

0.00%

Marketing Materials

$800

0.17%

Sourcing Fee (Assuming the Manager acquired 2.00% of Interests)

$22,995

4.95%

Total Fees and Expenses

$32,000

6.88%

Total Proceeds

$465,000

100.00%

 

(1) Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company entered into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


35



Series Detail Table

Agreement Type

Upfront Purchase

Date of Agreement

4/22/2019

Expiration Date of Agreement

 

Downpayment Amount

$0

Installment 1 Amount

$430,000

Installment 2 Amount

$0

Minimum Brokerage Fee

$3,139

Maximum Brokerage Fee

$3,418

Custody Fee

$3,488

Acquisition Expenses

$2,100

Minimum Sourcing Fee

$22,995

Maximum Sourcing Fee

$23,274

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


36



DESCRIPTION OF THE SERIES ASTON MARTIN DB6 VANTAGE

Investment Overview

 

Upon completion of the Series #66AV1 Offering, Series #66AV1 will purchase a 1966 Aston Martin DB6 Vantage (at times described as the “DB6” or “DB6 Vantage” throughout this Offering Circular) as the underlying asset for Series #66AV1 (the “Series Aston Martin DB6 Vantage” or the “Underlying Asset” with respect to Series #66AV1, as applicable), the specifications of which are set forth below. 

Introduced in 1965, the DB6 is notable for being the first model built following the Aston Martin factory move to Newport Pagnell. Largely resembling the DB5, the DB6 added a Kamm-style rear spoiler inspired by Aston Martin’s racing efforts. The DB6 also added a 5-speed ZF transmission and a longer wheelbase, increasing stability and rear leg room. 

The DB6 was popular among celebrities, with notable owners including HRH Prince Charles, Paul McCartney, and Mick Jagger. 

The Series Aston Martin DB6 Vantage is 1 of 1,327 DB6’s produced. 1 of 37 examples originally produced in LHD Vantage specification. 

The Series Aston Martin DB6 Vantage is fitted with the high-horsepower Vantage option package that includes triple Weber carburetors and a higher compression cylinder head. The Underlying Asset also includes optional A/C and limited slip differential as well as a host of other factory options. 

 

Asset Description

 

Ownership & Maintenance History

 

Built in June of 1966, The Series Aston Martin DB6 Vantage was dispatched for delivery to its original owner in the Channel Islands on July 15th, 1966. 

The underlying asset was subsequently sold to a gentleman residing in Massachusetts, US, around 1975.  

The underlying asset is believed to have had a single additional private owner from 1984-1997.  

The underlying asset has had two private owners since 1997, including the current and most recent owner, who commissioned a comprehensive restoration of the vehicle (at Automotive Restoration in Stamford, CT) in 2015.  

 

Notable Features

 

1 of just 37 LHD DB6 Vantage models produced. 

Notable factory options including, larger Weber 45 DC0E9 carburetors, engine breather system, A/C, heated rear windscreen, three ear hub-caps, two wing mirrors, limited slip differential, two fog lamps, two britax safety belts, change over horn, continental parts kit, bosch TR radio, power operated antenna, waso steering lock, chrome wheels, white wall tires, alternator and red carpets.   

Copy of factory build sheet produced by the British Motor Industry Heritage Trust 

 

Notable Defects

 

Repainted in a non-original but correct factory color of Aston Green  

No notable material defects besides minor stone chips commensurate with road use  


 


37



Details

 

Series Aston Martin DB6 Vantage

Year

1966

Production Total (Vantage)

1,327 (Total)

3 (U.S.)

Indicated Mileage

44,000 miles

Engine

4.0 liter straight 6

Transmission

5-speed manual

Color EXT

Aston Green

Color INT

Tan

Documentation

British Motor Industry Heritage Trust Factory Build Record, service records

Condition

Restored

Books/manuals/tools

Yes

Restored

Yes

Paint

Full repaint (2015)

Vin #

DB62836V

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series Aston Martin DB6 Vantage going forward.


38



USE OF PROCEEDS – Series #92CC1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #92CC1 Asset Cost (1)

$45,000

85.71%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$0

0.00%

Cash on Series Balance Sheet

$2,000

3.81%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquired 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$386

0.74%

Offering Expenses (3)

$500

0.95%

Acquisition Expenses (4)

Refurbishment & maintenance

$0

0.00%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$800

1.52%

Registration and other vehicle-related fees

$300

0.57%

Finder Fee

$0

0.00%

Marketing Materials

$500

0.95%

Sourcing Fee (Assuming the Manager acquired 2.00% of Interests)

$3,014

5.74%

Total Fees and Expenses

$5,500

10.48%

Total Proceeds

$52,500

100.00%

 

(1) Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company entered into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


39



Series Detail Table

Agreement Type

Purchase Option Agreement

Date of Agreement

4/29/2019

Expiration Date of Agreement

6/29/2019

Downpayment Amount

$0

Installment 1 Amount

$45,000

Installment 2 Amount

$0

Minimum Brokerage Fee

$354

Maximum Brokerage Fee

$386

Custody Fee

$500

Acquisition Expenses

$1,600

Minimum Sourcing Fee

$3,014

Maximum Sourcing Fee

$3,046

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


40



DESCRIPTION OF THE SERIES CORVETTE ZR1

Investment Overview

 

Upon completion of the Series #92CC1 Offering, Series #92CC1 will purchase a 1992 Chevrolet Corvette ZR1 (at times described as the “C4 ZR1” throughout this Offering Circular) as the underlying asset for Series #92CC1 (the “Series Corvette ZR1” or the “Underlying Asset” with respect to Series #92CC1, as applicable), the specifications of which are set forth below. 

Introduced in 1989 at the Geneva Auto Show, the C4 ZR1 features a Lotus-designed all-aluminum V8 produced by Mercury Marine’s MerCruiser division. Dubbed the LT5, the engine produces nearly 380hp and catapults the C4 ZR1 to 60 mph in just over 4 seconds, impressive figures for the time. 

The ZR1 performance package was a significant upgrade from the standard Corvette, coming at a cost of an additional 85% on top of the base sticker price. In addition to a more powerful engine, the C4 ZR1 uses a Bilstein adaptive suspension system that borrows technology from the Porsche 959 and Lotus’ Formula 1 team. 

In 1990, the ZR1 set numerous speed and endurance records at a proving ground in Fort Stockton, Texas, including running for 24 hours at an average speed of nearly 176 mph. 

The Underlying Asset is 1 of 502 ZR1s produced in 1992 and is believed to be 1 of 2 or 3 finished in Black over Arctic White. 

The Series C4 ZR1 shows only 1,075 original miles on the odometer and presents in museum-like condition, retaining all original books and accessories. 

 

Asset Description

 

Ownership & Maintenance History

 

The Series ZR1 is a 4-owner example originally delivered to Apple Chevrolet in Fair Lawn, NJ. 

The Underlying Asset was most recently in the inventory of MBP Motorcars, a dealer based in Ohio. MBP previously owned the Underlying Asset in 2015 and took it back on trade in early 2019 from an Ohio-based collector. 

The Underlying Asset received Bloomington Gold certification in 2005. 

 

Notable Features

 

Original window sticker, books, and tools 

ZR1 Performance Package ($31,378 option) 

Bloomington Gold Certification 

Comes with all original accessories, including both tops 

Fewer than 1,100 original miles 

 

Notable Defects

 

Nickel-sized paint chip on front bumper 

Minor wear is apparent on the interior and exterior, commensurate with mileage and age 


 


41



Details

 

Series Corvette ZR1

Year

1992

Production Total

502 (‘92)

6,922 (total)

Mileage

1,075 miles

Engine

5.7L LT5 V8

Transmission

6-Speed Manual

Color EXT

Black

Color INT

White

Documentation

Original window sticker, books, records

Condition

Original

Books/manuals/tools

Yes

Restored

No

Paint

Original

Vin #

1G1YZ23J2N5800343

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series Corvette ZR1 going forward.


42



USE OF PROCEEDS – Series #94FS1

We estimate that the gross proceeds of the Series Offering (including from Series Interests acquired by the Manager) will be approximately the amount listed in the Use of Proceeds Table assuming the full amount of the Series Offering is sold, and will be used as follows:

Use of Proceeds Table

Dollar Amount

Percentage of Gross Cash Proceeds

Uses

 

 

Cash Portion of the #94FS1 Asset Cost (1)

$135,000

93.10%

Equity retained by Asset Seller (1)

$0

0.00%

Document Fee

$399

0.28%

Cash on Series Balance Sheet

$2,500

1.72%

Accrued Interest

$0

0.00%

Brokerage Fee (Assuming the manager acquired 2.00% of Interests and the Asset Seller retained 0.00% of Interests) (2)

$1,066

0.74%

Offering Expenses (3)

$1,088

0.75%

Acquisition Expenses (4)

Refurbishment & maintenance

$0

0.00%

Transport from Seller to Warehouse incl. associated Insurance (as applicable)

$1,300

0.90%

Registration and other vehicle-related fees

$300

0.21%

Finder Fee

$0

0.00%

Marketing Materials

$800

0.55%

Sourcing Fee (Assuming the Manager acquired 2.00% of Interests)

$2,548

1.76%

Total Fees and Expenses

$7,101

4.90%

Total Proceeds

$145,000

100.00%

 

(1) Consists of an agreement listed in the Series Detail Table with the Asset Seller to be paid in full at the expiration date of the agreement listed in the Series Detail Table. 

(2)Calculation of Brokerage Fee excludes proceeds from the sale of the Series Interests to the Manager, its affiliates, or the Asset Seller. 

(3)Solely in connection with the offering of the Series Interests, the Manager has assumed and will not be reimbursed for Offering Expenses, except for expenses related to the Custody Fee, which will be paid through the proceeds of the Series Offering.   

(4)To the extent that Acquisition Expenses are lower than anticipated, any overage would be maintained in an operating account for future Operating Expenses.   

 

On the date listed in the Series Detail Table, the Company entered into the agreement listed in the Series Detail Table regarding the Series with the Asset Seller for the Cash Portion of the Asset Cost listed in the Use of Proceeds Table.

Upon the closing of the Offering, proceeds from the sale of the Series Interests will be distributed to the account of the Series. The Series will complete the agreement and pay the Asset Seller the amount listed in the Series Detail Table.


43



 

Series Detail Table

Agreement Type

Purchase Agreement

Date of Agreement

4/26/2019

Expiration Date of Agreement

6/26/2019

Downpayment Amount

$13,500

Installment 1 Amount

$121,899

Installment 2 Amount

$0

Minimum Brokerage Fee

$979

Maximum Brokerage Fee

$1,066

Custody Fee

$1,088

Acquisition Expenses

$2,400

Minimum Sourcing Fee

$2,548

Maximum Sourcing Fee

$2,635

 

In addition to the costs of acquiring the Underlying Asset, proceeds from the Series Offering will be used to pay the minimum to the maximum Brokerage Fee listed in the Series Detail Table to the Broker as consideration for providing certain broker-dealer services to the Company in connection with this Series Offering, (ii) the Offering Expenses listed in the Series Detail Table related to the Custody Fee, (iii) the Acquisition Expenses listed in the Series Detail Table (including but not limited to the items described in the Use of Proceeds Table above), the Transportation Expenses and Marketing Materials fees listed in the Use of Proceeds Table which will be paid to the Manager and its affiliates, except as to the extent that Acquisition Expenses are lower than anticipated, any overage will be maintained in an operating account for future Operating Expenses, and (iv) the minimum to maximum Sourcing Fee to the Manager listed in the Series Detail Table as consideration for assisting in the sourcing of the Series. The ranges for Brokerage Fee and Sourcing Fee are calculated based on the Manager purchasing 2% to 10% of the Series Interests.  Of the proceeds of the Series Offering, the Cash on Series Balance Sheet listed in the Use of Proceeds Table will remain in the operating account of the Series for future Operating Expenses.  See “Plan of Distribution and Subscription Procedure – Fees and Expenses” for additional information.

The allocation of the net proceeds of this Series Offering set forth above, represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth.  The Manager reserves the right to modify the use of proceeds based on the factors set forth above.  The Company is not expected to keep any of the proceeds from the Series Offering.  The Series is expected to keep Cash on the Series Balance Sheet in the amount listed in the Use of Proceeds Table from the proceeds of the Series Offering for future Operating Expenses.  In the event that less than the Maximum Series Interests are sold in connection with the Series Offering, the Manager may pay, and not seek reimbursement for, the Brokerage Fee, Offering Expenses and Acquisition Expenses and may waive the Sourcing Fee.


44



DESCRIPTION OF THE SERIES FERRARI 348 SPIDER

Investment Overview

 

Upon completion of the Series #94FS1 Offering, Series #94FS1 will purchase a 1994 Ferrari 348 Spider (at times described as the “ Ferrari 348” throughout this Offering Circular) as the underlying asset for Series #94FS1 (the “Series Ferrari 348 Spider” or the “Underlying Asset” with respect to Series #94FS1, as applicable), the specification of which are set forth below. 

The Ferrari 348 is a product of Leonardo Fioravanti of the famous Pininfarina design firm. Fioravanti’s Ferrari portfolio include icons such as the F40, 288 GTO, 512BB, and Testarossa. The 348 was Fioravanti’s final design at Pininfarina. 

The Ferrari 348 model line marked a technological step forward for Ferrari’s construction methods. Departing from the standard steel tube chassis of the past, Ferrari opted for a monocoque structure adding stiffness to the chassis. In 1993 Ferrari released the GTB, GTS, and Spider versions of the 348 featuring a new transverse mounted transmission allowing for the drivetrain to be mounted lower in the chassis thus improving performance. Increased power figures were provided by an updated engine management system, camshaft, air intake, and a higher compression ratio.  

The Series Ferrari 348 Spider is one of just 1,146 examples produced worldwide.  

The 348 was the last V8 Ferrari to feature manual steering, making it attractive for the driving enthusiast. Released shortly after the death of Enzo Ferrari the 348 was the last V-8 Ferrari designed under his tenure.  

Showing 593 total original miles, The Series Ferrari 348 Spider is likely one of the lowest mileage examples in existence.  

 

Asset Description

 

Ownership & Maintenance History

 

The Series Ferrari 348 Spider was delivered new to Miami, Florida in 1993. The original owner kept the car until 2014, accruing a total of 452 miles. The Underlying Asset was then offered for sale at Marshall Goldman Motor Sales until it was purchased by its second owner residing in Sarasota, FL that same year. The Series Ferrari 348 Spider was then acquired by Legendary Motorcars of Ontario, Canada in March of 2018. 

The Series Ferrari 348 Spider comes with a clean Carfax report and service records documenting major invoices. A major service totaling nearly $8,000 was performed in 2017 which included a fuel system service including two new fuel pumps, brake service, and steering rack service, among other maintenance items. In 2015 The Series 348 Spider received a major engine service including belt replacement.  

 

Notable Features

 

Original books, and tools 

Blu Scuro over Crema color configuration  

593 original miles  

 

Notable Defects

 

None, the underlying asset retains its original paint and interior showing only minimal signs of wear on the driver seat.  


45



Details

 

Series Ferrari 348 Spider

Year

1994

Production Total

1146

Mileage

592 miles

Engine

3.4L V8

Transmission

5 Speed, Manual

Color EXT

Blu Scuro

Color INT

Crema

Documentation

Carfax, service records,

Condition

Original, Excellent

Books/manuals/tools

Yes

Restored

No

Paint

Original

Vin #

ZFFRG43A1R0097805

Engine

Original

Transmission

Original

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series Ferrari 348 Spider going forward.


46



AMENDED AND RESTATED DESCRIPTION OF THE SERIES RENAULT ALPINE A110

Investment Overview

 

Upon completion of the Series #75RA1 Offering, Series #75RA1 will purchase a 1975 Renault Alpine A110 (at times described as the “Alpine” or the “A110” throughout this Offering Circular) as the underlying asset for Series #75RA1 (the “Series Renault Alpine A110” or the “Underlying Asset” with respect to Series #75RA1, as applicable), the specifications of which are set forth below. 

The Renault Alpine A110 was a hugely successful rally car, recording podium finishes in major events such as the Coupe des Alpes and Rallye Monte Carlo in 1969 and 1970. The Alpine then went on to win the World Rally Championship in 1971 and 1973. The Series Renault Alpine A110 is a homologated road variant of the racing car that won the first ever World Rally Championship in 1971. 

The Series Renault Alpine A110 is one of just 2,890 “1300” variants produced in six years of production from 1971-1976. 

The Series Renault Alpine A110 features an upgraded engine bored-out to 1440cc and fitted with twin side draft Dell’Orto carburetors. 

 

Asset Description

 

Ownership & Maintenance History

 

Sold new to its original owner in Belgium for an MSRP of 28,500 Francs.  

The Series Renault Alpine A110 is believed to have had two additional owners since being imported in the United States. 

The Series Renault Alpine A110 was restored to mostly original specifications by Jim Gordon in the mid-2000s. The engine received upgrades typical to the period in which it was produced.  

The Series Renault Alpine A110 was most recently serviced in late 2018 by New Canaan Foreign Car in Connecticut. 

 

Notable Features

 

Retains its matching numbers driveline and many original mechanical components 

Original books 

While in the care of its penultimate owner, the Series Renault Alpine A110 was featured in a Motor Trend article by Rory Jurnecka in January 2012 

 

Notable Defects

 

Non-original Koni dampers 

The front hood of the Underlying Asset was repainted after another vehicle backed into it in a parking space. One headlight was broken and replaced, but there was no structural damage to the body. 

Heavy crazing to top surface of dashboard.   

Minor cosmetic imperfections commensurate with road use and typical of fiberglass bodies.  


47



Details

 

Series Renault Alpine A110

Year

1975

Production Total (1300cc engine)

2,890

Mileage

101,192 KM.

Engine

1440cc. Inline 4 Cyl.

Transmission

5 Speed Manual

Color EXT

Alpine Blue

Color INT

Black

Documentation

Service Records

Condition

Restored

Books/manuals/tools

Yes

Restored

Yes

Paint

Repainted

Vin #

15597

Engine

Original (upgraded)

Transmission

Original

 

 

Depreciation

The Company treats automobile assets as collectible and therefore will not depreciate or amortize the Series Renault Alpine A110 going forward.


48



RSE COLLECTION, LLC
FINANCIAL STATEMENTS

 

CONTENTS

 

PAGE 

RSE COLLECTION, LLC AND VARIOUS SERIES:

 

Years Ended December 31, 2018 and 2017 Audited Consolidated Financial Statements

 

Report of Independent Registered Public Accounting FirmF-1 

 

Consolidated Balance SheetsF-2 

 

Consolidated Statements of OperationsF-7 

 

Consolidated Statements of Members’ Equity F-12 

 

Consolidated Statements of Cash Flows F-14 

 

Notes to Consolidated Financial Statements F-19 


49




50



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Members of

RSE Collection, LLC

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of RSE Collection, LLC (the "Company") in total and for each listed Series as of December 31, 2018 and 2017, and the related consolidated statements of operations, members' equity, and cash flows for the Company in total and for each listed Series for each of the years then ended, and the related notes (collectively referred to as the "financial statements").  In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2018 and 2017, and the consolidated results of operations and cash flows for the Company and each Series for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.  

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company and each listed Series will continue as a going concern.  As discussed in Note A to the financial statements, the Company's and each listed Series lack of liquidity raises substantial doubt about their ability to continue as a going concern.  Management's plans in regard to these matters are also described in Note A.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.  

 

Basis for Opinion

 

These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on the Company's and each listed Series’ financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company and each listed Series in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Company and each listed Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's or each listed Series internal control over financial reporting.  Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.  

 

/s/ EisnerAmper LLP

 

We have served as the Company's auditor since 2017.  

 

EISNERAMPER LLP

New York, New York

April 30, 2019


F-1


RSE COLLECTION, LLC

 

Consolidated Balance Sheets as of December 31, 2018


Picture 1 


See accompanying notes, which are an integral part of these financial statements.

 

F-2 


RSE COLLECTION, LLC

 

Consolidated Balance Sheets as of December 31, 2018


Picture 2 


See accompanying notes, which are an integral part of these financial statements.

 

F-3 


RSE COLLECTION, LLC

 

Consolidated Balance Sheets as of December 31, 2018


Picture 3 


See accompanying notes, which are an integral part of these financial statements.

 

F-4 


RSE COLLECTION, LLC

 

Consolidated Balance Sheets as of December 31, 2018


Picture 4 


See accompanying notes, which are an integral part of these financial statements.

 

F-5 


RSE COLLECTION, LLC

 

Consolidated Balance Sheet as of December 31, 2017


ASSETS

 

 

Current Assets

 

 

Cash and Cash Equivalents

 

$                       5,374

Pre-paid Insurance

 

497

Total Current Assets

 

                       5,871

Other Assets

 

 

Collectible Automobiles - Deposits

 

30,000

Collectible Automobiles - Owned

 

498,161

TOTAL ASSETS

 

$                  534,032

 

 

 

LIABILITIES AND MEMBERS EQUITY / (DEFICIT)

Liabilities

 

 

Current Liabilities

 

 

Accounts Payable

 

401

Insurance Payable

 

Accrued Interest

 

2,561

Due to the Manager or its Affiliates

 

70,476

Debt

 

400,781

Total Current Liabilities

 

474,219

Total Liabilities

 

474,219

 

 

 

Membership Contributions

 

73,208

Capital Contribution

 

27,258

Accumulated Deficit

 

(40,653)

Members' Equity / (Deficit)

 

59,813

TOTAL LIABILITIES AND EQUITY

 

$                  534,032

 

 

 


See accompanying notes, which are an integral part of these financial statements.

 

F-6


RSE COLLECTION, LLC

 

Consolidated Statements of Operations

Year Ended December 31, 2018


 

Series #69BM1

Series #85FT1

Series #88LJ1

Series #55PS1

Operating Expenses

 

 

 

 

Storage

$                            1,636

$                          1,586

$                         1,260

$                           805

Transportation

                                       -

                                160

                                    -

                              200

Insurance

                                  837

                             1,327

                               808

                          1,975

Maintenance

                                       -

                                     -

                                    -

                                   -

Professional Fees

                               1,000

                             1,000

                               800

                              700

Marketing Expense

                                       -

                                100

                                    -

                                   -

Total Operating Expenses

                               3,473

                             4,173

                            2,868

                          3,680

Operating Loss

                             (3,473)

                           (4,173)

                          (2,868)

                        (3,680)

Other Expenses

 

 

 

 

Interest Expense and Financing Fees

                                       -

                                     -

                                    -

                                   -

Purchase Option Expense

                                       -

                                     -

                                    -

                                   -

Total Expenses

                               3,473

                             4,173

                            2,868

                          3,680

Net Loss

$                          (3,473)

$                        (4,173)

$                       (2,868)

$                     (3,680)

 

 

 

 

 

Basic and Diluted (Loss) per Membership Interest

($1.74)

($2.09)

($1.43)

($1.84)

Weighted Average Membership Interests

2000

2000

2000

2000


See accompanying notes, which are an integral part of these financial statements.

 

F-7


RSE COLLECTION, LLC

 

Consolidated Statements of Operations

Year Ended December 31, 2018


 

Series #95BL1

Series #89PS1

Series #90FM1

Series #83FB1

Operating Expenses

 

 

 

 

Storage

$                               776

$                                  -

$                            620

$                           340

Transportation

                                       -

                                     -

                                    -

                                   -

Insurance

                                  431

                                290

                                 56

                          1,108

Maintenance

                                       -

                                     -

                                    -

                                   -

Professional Fees

                                  561

                                500

                               500

                              383

Marketing Expense

                                       -

                                     -

                                    -

                                   -

Total Operating Expenses

                               1,768

                                790

                            1,176

                          1,831

Operating Loss

                             (1,768)

                              (790)

                          (1,176)

                        (1,831)

Other Expenses

 

 

 

 

Interest Expense and Financing Fees

                                       -

                                     -

                                    -

                                   -

Purchase Option Expense

                                       -

                                     -

                                    -

                                   -

Total Expenses

                               1,768

                                790

                            1,176

                          1,831

Net Loss

$                           (1,768)

$                           (790)

$                       (1,176)

$                     (1,831)

 

 

 

 

 

Basic and Diluted (Loss) per Membership Interest

($0.88)

($0.40)

($0.59)

($0.37)

Weighted Average Membership Interests

2000

2000

2000

5000


See accompanying notes, which are an integral part of these financial statements.

 

F-8


RSE COLLECTION, LLC

 

Consolidated Statements of Operations

Year Ended December 31, 2018


 

Series #98DV1

Series #06FS1

Series #93XJ1

Series #02AX1

Operating Expenses

 

 

 

 

Storage

$                               337

$                             378

$                                 -

$                           125

Transportation

                                       -

                                     -

                                    -

                                   -

Insurance

                                  198

                                262

                               360

                              178

Maintenance

                                       -

                                     -

                                    -

                                   -

Professional Fees

                                  264

                                239

                               180

                              100

Marketing Expense

                                       -

                                     -

                                    -

                                   -

Total Operating Expenses

                                  799

                                879

                               540

                              403

Operating Loss

                                (799)

                              (879)

                             (540)

                            (403)

Other Expenses

 

 

 

 

Interest Expense and Financing Fees

                                       -

                                     -

                                    -

                                   -

Purchase Option Expense

                                       -

                                     -

                                    -

                                   -

Total Expenses

                                  799

                                879

                               540

                              403

Net Loss

$                             (799)

$                           (879)

$                          (540)

$                        (403)

 

 

 

 

 

Basic and Diluted (Loss) per Membership Interest

($0.40)

($0.18)

($0.11)

($0.20)

Weighted Average Membership Interests

2000

5000

5000

2000


See accompanying notes, which are an integral part of these financial statements.

 

F-9


RSE COLLECTION, LLC

 

Consolidated Statements of Operations

Year Ended December 31, 2018


 

 

 

 

 

Total

 

Series #99LE1

Series #91MV1

Series #92LD1

Series #94DV1

Consolidated

Operating Expenses

 

 

 

 

 

Storage

$                            109

$                            97

$                              -

$                          24

$                   13,579

Transportation

                                       -

                                     -

                                    -

                                   -

                          7,720

Insurance

                                    19

                                     9

                                    7

                                39

                        13,832

Maintenance

                                       -

                                     -

                                    -

                                   -

                                   -

Professional Fees

                                    87

                                  77

                                 16

                                16

                          7,623

Marketing Expense

                                       -

                                     -

                                    -

                                   -

                          3,711

Total Operating Expenses

                                  215

                                183

                                 23

                                79

                        46,465

Operating Loss

                                (215)

                              (183)

                               (23)

                              (79)

                      (46,465)

Other Expenses

 

 

 

 

 

Interest Expense and Financing Fees

                                       -

                                     -

                                    -

                                   -

                        10,745

Purchase Option Expense

                                       -

                                     -

                                    -

                                   -

                          7,444

Total Expenses

                                  215

                                183

                                 23

                                79

                        64,654

Net Loss

$                         (215)

$                       (183)

$                        (23)

$                       (79)

$                (64,654)

 

 

 

 

 

 

Basic and Diluted (Loss) per Membership Interest

($0.11)

($0.09)

($0.01)

($0.04)

 

Weighted Average Membership Interests

2000

2000

3000

2000

 


See accompanying notes, which are an integral part of these financial statements.

 

F-10


RSE COLLECTION, LLC

 

Consolidated Statements of Operations

Year Ended December 31, 2018



See accompanying notes, which are an integral part of these financial statements.

 

F-10


RSE COLLECTION, LLC

 

Consolidated Statement of Operations

Year Ended December 31, 2017


Operating Expenses

 

 

Storage

 

$              9,275

Transportation

 

                5,700

Insurance

 

                8,370

Maintenance

 

                1,840

Professional Fees

 

                   550

Marketing Expense

 

                        -

Total Operating Expenses

 

              25,735

Operating Loss

 

            (25,735)

Other Expenses

 

 

Interest Expense and Financing Fees

 

                6,521

Purchase Option Expense

 

                6,666

Total Expenses

 

              38,922

Net Loss

 

$         (38,922)

 

 

 

 

 

 

 

 

 

 

 

 

 



 


See accompanying notes, which are an integral part of these financial statements.

 

F-11


RSE COLLECTION, LLC

 

Consolidated Statements of Members’ Equity

Year Ended December 31, 2018


 

Series #69BM1

Series #85FT1

Series #88LJ1

Series #55PS1

Balance January 1, 2017

$                               -   

$                              -   

$                              -   

$                               -   

Membership Contributions

                                    -

                                  -

                                  -

                                   -

Capital Contribution

                                    -

                                  -

                                  -

                                   -

Net loss

                                    -

                                  -

                                  -

                                   -

Balance December 31, 2017

                                    -

                                  -

                                  -

                                   -

Membership Contributions

                       111,236

                     163,883

                     133,508

                      422,132

Capital Contribution

                           3,444

                        16,518

                          2,953

                          7,320

Distribution to RSE Collection

                            (821)

                           (401)

                        (1,126)

                      (14,889)

Distribution to Series

                                    -

                                  -

                                  -

                                   -

Net loss

                         (3,473)

                        (4,173)

                        (2,868)

                        (3,680)

Balance December 31, 2018

$                    110,386

$                   175,827

$                   132,467

$                    410,883

 

 

 

 

 

 

 

Series #95BL1

Series #89PS1

Series #90FM1

Series #83FB1

Balance January 1, 2017

$                               -   

$                              -   

$                              -   

$                               -   

Membership Contributions

                                    -

                                  -

                                  -

                                   -

Capital Contribution

                                    -

                                  -

                                  -

                                   -

Net loss

                                    -

                                  -

                                  -

                                   -

Balance December 31, 2017

                                    -

                                  -

                                  -

                                   -

Membership Contributions

                       116,741

                     161,521

                        15,446

                      335,691

Capital Contribution

                           2,287

                             891

                          1,188

                          2,038

Distribution to RSE Collection

                         (1,645)

                           (250)

                           (175)

                            (400)

Distribution to Series

                                    -

                                  -

                                  -

                                   -

Net loss

                         (1,768)

                           (790)

                        (1,176)

                        (1,831)

Balance December 31, 2018

$                    115,615

$                   161,372

$                     15,283

$                    335,498


See accompanying notes, which are an integral part of these financial statements.

 

F-12


RSE COLLECTION, LLC

 

Consolidated Statements of Members’ Equity

Year Ended December 31, 2018


 

Series #98DV1

Series #06FS1

Series #93XJ1

Series #02AX1

Balance January 1, 2017

$                               -   

$                              -   

$                              -   

$                               -   

Membership Contributions

                                    -

                                  -

                                  -

                                   -

Capital Contribution

                                    -

                                  -

                                  -

                                   -

Net loss

                                    -

                                  -

                                  -

                                   -

Balance December 31, 2017

                                    -

                                  -

                                  -

                                   -

Membership Contributions

                       125,757

                     195,271

                     487,801

                      104,452

Capital Contribution

                              876

                             997

                          8,206

                              467

Distribution to RSE Collection

                            (713)

                                  -

                        (5,103)

                            (681)

Distribution to Series

                                    -

                                  -

                                  -

                                   -

Net loss

                            (799)

                           (879)

                           (540)

                            (403)

Balance December 31, 2018

$                    125,121

$                   195,389

$                   490,364

$                    103,835

 

 

 

 

 

 

 

 

 

 

Total

 

Series #99LE1

Series #91MV1

Series #92LD1

Series #94DV1

Consolidated

Balance January 1, 2017

$                               -   

$                              -   

$                              -   

$                               -   

$                         (675)

Membership Contributions

                                    -

                                  -

                                  -

                                   -

                        73,208

Capital Contribution

                                    -

                                  -

                                  -

                                   -

                        26,202

Net loss

                                    -

                                  -

                                  -

                                   -

                      (38,922)

Balance December 31, 2017

                                    -

                                  -

                                  -

                                   -

                        59,813

Membership Contributions

                         66,699

                        36,621

                     160,430

                        54,771

                   2,691,960

Capital Contribution

                              249

                             202

                             109

                                40

                        96,659

Distribution to RSE Collection

                            (443)