Recipient-specific terms layer.
Recipient-specific economics are summarized before the complete company thesis, ROI model, team, and diligence path.
Why this matters
The terms are presented with product, market, use-of-funds, ROI, team, and diligence context for qualified review.
Exhibit D-2 — Representative Single-Project Pro Forma
Illustrative materials economics for one representative 2,000-square-foot residential structure using Lok-N-Blok. This exhibit measures one project transaction; it is not a full-home construction budget or a company-wide return forecast.
Material-sale economics
| Block sales revenue | $40,500 |
|---|---|
| Manufacturing cost | ($18,900) |
| Gross profit | $21,600 |
| Gross margin | 53.3% |
| Revenue per home sq. ft. | $20.25 |
| Manufacturing cost per home sq. ft. | $9.45 |
| Gross profit per home sq. ft. | $10.80 |
Additional project costs and contribution
| Gross profit before project costs | $21,600 |
|---|---|
| Freight and delivery | ($3,000) |
| Sales commission | ($6,075) |
| Engineering, QA, and project support | ($1,215) |
| Estimated contribution profit | $11,310 |
| Contribution margin | 27.9% |
A valid funded-member deck link activates secure exhibit access in this browser for six hours. The five-year page reports an unpublished state until an authorized company plan is formally published; it does not substitute zeros or pipeline estimates for an approved forecast.
Strategic value beyond capital.
Recipient-specific operating value, market access, and adoption paths are summarized before the complete company thesis.
Turn coastal attention into resilient-housing adoption.
A recipient-specific cinematic layer frames the strategic channel before the complete company deck.
Conventional wall construction is increasingly constrained by labor, schedule, and resilience requirements.
Builders are being asked to deliver more housing with tighter labor availability, less schedule tolerance, and higher expectations for weather resilience, energy performance, and lifecycle value.
Layered construction creates schedule risk.
Multiple trades, sequencing dependencies, material handling, rework, and site waste can compound cost and delay.
Building-envelope decisions carry greater consequences.
Wind, moisture, fire, insurance, and lifecycle considerations increasingly shape design and procurement decisions.
Scalable systems must be easier to train and repeat.
Distributor-scale adoption depends on an assembly method crews can learn, inspect, and reproduce consistently.
Housing supply needs more productive construction methods.
The opportunity is to reduce process friction while preserving the performance, compliance, and project economics builders require.
A patented wall system engineered to simplify assembly without compromising the resilience thesis.
Lok-N-Blok uses mechanically interlocking blocks that connect, stack, anchor to the foundation, and tension into the wall assembly. The commercial proposition is a repeatable construction system designed to reduce installation complexity, support consistent training, and improve field execution.
Mechanical geometry supports repeatable alignment.
The interlocking workflow is designed for efficient, trainable assembly.
The wall assembly connects into the engineered foundation path.
The top block completes the specified structural load path.
Resilience claims must be supported by assembly-specific evidence.
Severe-weather exposure establishes the market need. Lok-N-Blok’s performance case is evaluated through test records, specified assembly details, engineering review, report limitations, and the applicable local approval path.
Large end markets provide room to scale; execution begins with U.S. building-materials adoption.
Lok-N-Blok participates in broad construction and building-materials categories, but market size alone is not the investment thesis. Near-term value creation depends on production readiness, project conversion, and disciplined regional distribution. The figures below are third-party industry estimates, not company revenue forecasts.
1 Source: third-party industry research compiled in the data room. Projections reflect industry-level forecasts and do not constitute Lok-N-Blok revenue guidance.
Alternative building systems have attracted institutional capital; Lok-N-Blok must now prove differentiated economics and execution.
RENCO USA’s reported $318M valuation provides category context, not a direct valuation comparable. Lok-N-Blok’s Round 2 case must stand on its own IP, technical evidence, production plan, commercial pipeline, unit economics, and execution capacity.
Category validation is visible. Lok-N-Blok’s differentiation must be proven in production.
RENCO USA’s reported financing at a $318M valuation provides evidence that institutional capital is evaluating alternative structural building systems. It is a category reference, not a direct valuation comparable.
Lok-N-Blok’s proposition is differentiated by patented mechanical interlocking designed to reduce assembly complexity and support a repeatable training, inspection, and manufacturing model.
Round 2 is intended to test that proposition at production scale by commissioning the robot, strengthening process control, and moving qualified project demand toward definitive orders.
Comparison discipline: RENCO’s financing does not establish Lok-N-Blok’s valuation. Round 2 valuation support is addressed through controlled diligence using company-specific IP, technical, pipeline, unit-economic, and capital-plan evidence.
Source: BusinessWire, October 3, 2023. RENCO announced $18M in convertible notes at a reported $318M valuation.- Alternative structural block system
- Market validation at reported $318M valuation
- Composite building system with block-style assembly
- Publicly recognized category leader
- Patented interlocking block system
- Designed for adhesive-free mechanical assembly
- Potentially faster training and reduced labor dependence
- Built for regional manufacturing and licensing scale
Lok-N-Blok is designed to compete on total installed value—not block price alone.
The commercial case combines a resilient wall-system proposition, fewer assembly steps, simplified training, and adoption-oriented economics. Performance and cost advantages must be validated project by project against design, labor, logistics, finishes, code requirements, and local alternatives.
A distributor-led model can extend regional coverage while preserving centralized production standards.
The initial go-to-market strategy combines territory economics, builder education, installer training, and project support. National retail, economic-development, disaster-recovery, and defense channels represent longer-term options that depend on proven capacity, margins, compliance, and definitive partner agreements.
Target distributor entry: $500K
The proposed program pairs territory economics with branch education, installer certification, CRM support, and accountable regional sales execution.
Retail scale follows production proof.
Large-channel discussions become actionable only after throughput, margin, inventory, service levels, and partner terms withstand diligence.
Resilience supports disaster-recovery and defense use cases.
Public-sector adoption will depend on procurement requirements, technical validation, code pathways, budgets, and qualified delivery partners.
Physical proof turns explanation into evaluation.
Samples, project demonstrations, technical education, events, media, and targeted outreach are designed to move interest into qualified project conversations.
Growth is capacity-gated; each revenue step requires specific production and channel milestones.
The revenue trajectory is a preliminary scenario tied to manufacturing-capacity additions, distributor onboarding cadence, LOI/preorder conversion timing, code-path progress, and channel execution. Building-materials comparables such as Eagle Materials, James Hardie, and USG are used as context for margin progression, not as a prediction that Lok-N-Blok will achieve similar outcomes.
Scenario basis: Year 1 assumes controlled first-factory ramp, sample/preorder conversion, and verified production throughput. Years 2-3 assume a second tooling line, distributor onboarding, and repeatable project-support lanes. Years 4-5 assume mature first-factory operations, a second production facility, broader territory coverage, and larger channel relationships. Each assumption requires diligence against production, sales conversion, capital availability, code-path status, distributor execution, and signed channel agreements.
Round 2 targets $16.5 million at a $147 million valuation basis. Proceeds are intended to acquire and commission the production robot, integrate the automated line, and fund the quality, materials, logistics, code-path, and working-capital capabilities required to pursue approximately 11 million blocks represented by LOIs. The round has received $0 to date. Definitive terms, equipment scope, LOI support, financials, valuation work, IP records, and production milestones are available to qualified investors through the controlled data room.
Approved investor-specific terms
This tracked link includes approved written terms for this recipient. Final treatment remains subject to definitive documents and counsel review.
Capital deployment is sequenced around commissioning the production system.
The first operating priority is robot acquisition and commissioning. The remaining capital plan supports line integration, quality control, materials, logistics, technical and code-path work, channel development, and the operating infrastructure required to move qualified demand toward repeatable shipments. Allocations remain preliminary and subject to final equipment scope, vendor terms, budget, closing sequence, diligence, and definitive financing documents.
Category-level allocation shown. Granular allocations, monthly burn, and runway are available to qualified investors in the data room.
Ownership, distribution, and exit sensitivities under stated assumptions.
Use the scenario tool to evaluate how modeled ownership and outcomes change by investment amount. Pipeline figures draw from aggregate LOI and preorder records in the operating system. Every output is illustrative, depends on the disclosed assumptions, and remains subject to realized performance and definitive documents.
Investment amount
Adjust the amount to see how distributions and exit outcomes scale. Default scenario uses a $100,000 investment unless a recipient-specific allocation overrides it.
Pipeline sensitivity based on current records
Loading the current aggregate LOI and preorder rollup...
*Computed on a $16.5M Round 2 raise at a $147M valuation basis ($163.5M post-money) unless a published capital plan or approved recipient-specific terms override it. **Post one Series A + one Series B + ESOP expansion; net retention shown as an illustrative planning assumption. Current-pipeline ROI uses weighted expected net profit from the LOI/preorder rollup and an illustrative 50% distribution policy; actual distributions depend on realized profit, legal structure, reserves, tax treatment, board/member approvals, and final documents.
Year-by-year distributions, Years 1-5
Illustrative distribution schedule under stated assumptions| Year | Per quarter | Annual total | Cumulative |
|---|---|---|---|
| 5-year total | — | ||
Year-4 exit scenarios
Total return = equity value at exit + cumulative 4-yr distributions| Scenario | Y4 EV* | Y4 ownership | Total return** | MOIC |
|---|
Year-5 exit scenarios
Anchored to peer multiples on the $850M Y5 revenue projection| Scenario | Y5 EV* | Y5 ownership | Total return** | MOIC |
|---|
Execution—not addressable market—is the central underwriting question.
The investment case depends on whether Lok-N-Blok can commission reliable production, convert qualified demand, advance the applicable code pathways, maintain project-level economics, and build the governance and reporting expected by institutional capital.
Commissioning discipline will determine usable capacity.
Tooling condition, equipment acceptance, production yield, uptime, inventory turns, supplier reliability, shipping cost, and QA consistency must be proven as volume increases.
Builders need field proof and training.
Distributor onboarding, installer certification, buyer trust, sample kits, sales education, and early project execution drive adoption velocity.
Approvals remain jurisdiction-specific.
Florida pathway work, ICC-ES path, engineering packages, local plan review, and finish schedules must be managed project by project.
Growth will require staged capital.
Additional financings, reserves, liquidation preferences, dilution, working-capital needs, and exit timing can materially affect investor outcomes.
Traditional materials will not stand still.
Wood framing, CMU, ICF, modular systems, precast, and future building technologies can compete on price, familiarity, financing, or local availability.
Operating controls must mature with production.
Team capacity, partner performance, customer concentration, acquisition integration, controls, reporting, and legal documentation must scale with the business.
A disciplined review should answer three questions before capital is committed.
The data-room process moves from product and demand validation to transaction economics and operating readiness, with source documents controlling each conclusion.
Do the product and demand withstand scrutiny?
Review the patent schedule, test reports, code-path status, sample blocks, product economics, competitive map, LOI schedule, and customer pipeline.
Are the round economics and capital stack investable?
Review the cap table, offering documents, use-of-funds schedule, acquisition plan, liabilities, investor rights, distribution policy, and tax considerations.
Can the team commission and operate at scale?
Review the manufacturing roadmap, distributor rollout, staffing plan, reporting cadence, board/member approvals, legal workstreams, and post-closing milestone gates.
Round 2 requires leadership across equipment commissioning, construction, commercial conversion, and operating controls.
The current team spans company strategy, high-volume residential construction, product continuity, field training and QA, revenue conversion, fulfillment, data systems, distribution relationships, media, and franchise governance. Responsibilities are organized around the operating capabilities required to move from product validation to repeatable production. See the full team page for the broader operating bench.
Core operating leadership
Accountability is separated across strategy, construction operations, revenue, product readiness, field QA, and systems so execution does not depend on a single founder lane.

Leads company direction, capital narrative, acquisition strategy, strategic relationships, and go-to-market execution. Founder history includes rebuilding 300+ homes through FEMA-related work after Hurricane Katrina.

Former D.R. Horton construction leader with senior operating experience across high-volume residential construction. Previously led Architectural Contracting with deep framing and execution experience.

Twenty-plus year sales operator across automotive, finance, real estate, and mortgage. Brings disciplined follow-up, relationship selling, and prospect qualification to launch-stage demand.

Product-line continuity from the original Lok-N-Blok story. Has stayed close to the system's design evolution and connects field feedback to product readiness, fulfillment, and installation clarity.

Military veteran with 30+ years hands-on construction experience across government, military, and civilian sectors. Former Habitat for Humanity construction manager overseeing crews and home production.

Leads internal software, portals, data-room controls, lead operations, analytics, workflow automation, and launch infrastructure needed to manage a national opportunity without losing operational visibility.
Strategic advisors, partners, and commercial support
The broader bench supports distribution, restoration demand, national media, franchise structure, public relations, customer experience, and executive follow-through.

Founder of DSH & Associates and Cypress Supply Group. Strategic value centers on engineering context, supply relationships, and building-material distribution perspective.

Founder of Phoenix Restoration. Strategic value centers on restoration demand, insurance and government-funded rebuild contexts, and storm-recovery channel fit.

Original Shark on Shark Tank and direct-response television pioneer. Strategic value centers on public launch credibility, media strategy, and national attention.

Senior Counsel at The Franchise Firm. Advises the franchisee and territory-operator structure, documentation path, and growth-stage compliance considerations.

Works across public relations, media coordination, podcasts, interviews, and publishing so the market receives a consistent and credible story.

Coordinates customer-facing experiences, event support, high-profile meetings, and the service tone prospects encounter when they engage with the company.
Qualified investors can move from thesis to source documents through one controlled diligence process.
The deck frames the opportunity, capital plan, execution risks, modeled economics, and team. The NCNDA workflow then provides role-gated access to the financial, legal, LOI, technical, and transaction records required for an informed investment decision.
Market, product, growth model, team, risk categories, and investor-specific terms where applicable.
Electronic execution covers confidentiality, non-circumvention, audit logging, and protected-room use rules.
The signer receives an account path. Admin review confirms investor identity, role, and appropriate access level.
Financials, cap table, LOIs, customer pipeline, patent schedule, technical reports, and transaction documents.
Subscription documents, counsel Q&A, final terms, wiring instructions, and closing checklist are handled in the protected process.
The deck frames the opportunity; the data room supports the investment decision.
The protected room contains the source records needed to evaluate round economics, commercial pipeline, technical readiness, legal structure, production capacity, and execution risk.
Records available after NCNDA
Qualified investors receive a controlled evidence set with document status, access history, and a defined company follow-up path.
Move from the investment thesis to source-document diligence.
Qualified investors may request the financials, patent schedule, LOI support, customer pipeline, testing records, technical archive, equipment plan, and round documentation through the protected data room. Execute the NCNDA to begin qualification; credentials are issued after company review.
Data-room contents: audited financials, monthly burn and runway, full patent schedule, ICC-ES path support, imported Pro Center technical reports and CAD library, signed LOIs and customer pipeline, distributor pipeline, cap table, subscription documents, and counsel work product.
Strategic partner closing thesis.
The right partner can help turn a patented construction system into a project pipeline, adoption channel, and national operating platform.