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Boxabl Inc. – ‘1-A’ on 2/23/24 – ‘ADD EXHB’

On:  Friday, 2/23/24, at 3:01pm ET   ·   Accession #:  1493152-24-7640   ·   File #:  24-12402

Previous ‘1-A’:  ‘1-A/A’ on 3/22/22   ·   Next:  ‘1-A/A’ on 3/28/24   ·   Latest:  ‘1-A/A’ on 5/3/24   ·   11 References:   By:  Boxabl Inc. – Latest ‘1-A/A’ on 5/3/24 By:  Boxabl Inc. – ‘1-A/A’ on 4/30/24 By:  Boxabl Inc. – ‘10-K’ on 4/1/24 for 12/31/23 By:  Boxabl Inc. – Next ‘1-A/A’ on 3/28/24 To:  Boxabl Inc. – ‘10-12G/A’ on 12/8/23 To:  Boxabl Inc. – ‘8-K’ on 10/13/23 for 10/9/23 To:  Boxabl Inc. – ‘10-12G’ on 8/10/23 To:  Boxabl Inc. – ‘1-A/A’ on 5/26/21 To:  Boxabl Inc. – ‘1-A/A’ on 3/17/21 To:  Boxabl Inc. – ‘1-A’ on 1/22/21 To:  Boxabl Inc. – ‘DOS’ on 12/14/20 

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/23/24  Boxabl Inc.                       1-A                   17:45M                                    M2 Compliance LLC/FA

Document/Exhibit                   Description                      Pages   Size 

 1: 1-A         Offering Statement -- primary_doc.xml               HTML     22K 
 2: PART II AND III  Offering Statement - Parts II and III          HTML   2.29M 
 3: ADD EXHB    Miscellaneous Exhibit                               HTML      8K 
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Exhibit 13.1

BOXABL Videos Including Testing The Waters for 2024 Reg A + Plus Transcripts

Description: Nov 3, 2023

Like and Subscribe to never miss a @Boxabl video! No matter their mission or company, entrepreneurs often turn to early-stage investing as a democratized solution to fuel the innovative ideas they believe can foster positive change and disrupt industries. As entrepreneurs work to become leaders in their desired spaces, early-stage investing leverages the power of community and allows everyday retail investors to participate in early growth stages previously reserved for venture funds. So, when and how do entrepreneurs decide that community investment rounds are their next best move? Morning Brew teamed up with three founders to discover the answers by exploring the entrepreneurial journey from vision to venture. Founders Galiano Tiramani (Director/Founder, Boxabl), Alec Shkolnik (Co-Founder and CEO, @liquidpiston8743), and Teague Egan (Founder and Director, @energyx3033), joined @morning-brew’s co-founder and executive chairman Alex Lieberman to pull back the curtain on their entrepreneurial stories, showcasing the value of early stage investing and sharing how their products are poised to revolutionize their respective industries because of it. LiquidPiston, and Energy X have active offerings pursuant to Regulation A. Offering information is publicly available. Boaxable is currently active in an offering pursuant to Regulation D. Offering information is available on its website. Boxabl is open to investors, subject to requirements at https://invest.boxabl.com Check out our other socials: / boxabl / boxabl / boxabl / boxabl / boxabl Visit our website: https://www.boxabl.com/

BOXABL IS CONSIDERING UNDERTAKING AN OFFERING OF SECURITIES UNDER TIER 2 OF REGULATION A. NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

a.

Description: Aug 31, 2023

Like and Subscribe to never miss a @BOXABL video! Boxabl is open to investors, subject to requirements at https://invest.boxabl.com Check out our other socials: / boxabl / boxabl / boxabl / boxabl / boxabl Visit our website: https://www.boxabl.com/

BOXABL IS CONSIDERING UNDERTAKING AN OFFERING OF SECURITIES UNDER TIER 2 OF REGULATION A. NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

a.

Description: Jun 19, 2023

8,060 views ● Jun 19, 2023

Like and Subscribe to never miss a @BOXABL video! Dutch Mendenhall interviews Boxabl CEO Paolo Tiramani at the 2023 Invest Wealth Summit. Boxabl is open to investors, subject to requirements at https://invest.boxabl.com Check out our other socials: / boxabl / boxabl / boxabl / boxabl / boxabl Visit our website: https://www.boxabl.com/ Contents: 0:00 - Intro 3:10 - Paolo Tiramani Introduction 4:31 - Boxabl Explained 5:55 - Paolo’s Background 8:15 - What Makes a Good Investment? 11:20 - The Demand for Boxabl 22:12 - Where’s the Best Place for Boxabl to be in People’s Hands? 29:58 - What Is Needed to Achieve What You Want in 5 Years? 34:33 - Did You Expect Such a Long Waiting List? 38:55 - How Does One Invest in Boxabl? 42:04 - Q&A Begins 42:30 - Can You Transport Your Boxabl? 45:05 - How Does Boxabl Work With Zoning? 47:30 - How Does Boxabl Ship to Difficult Locations? 50:35 - Do Repairs Need to be Certified by Boxabl? 53:16 - How Will Boxabl Work with Local Governments? 1:01:14 - What Type of Mind Shifts Has Paolo Experienced? 1:02:45 - What Are Boxabl’s Efforts to Partner with Mainstream Lenders?

BOXABL IS CONSIDERING UNDERTAKING AN OFFERING OF SECURITIES UNDER TIER 2 OF REGULATION A. NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

a.

(00:01:02):

You got to open a reach with us Dutch. You got to open a REIT with us. And as we’ve done podcasts together, how many of you have watched the RAD Podcast? Raise your hands, right? You got to watch more and more of the RAD podcast. We have incredible people that have been on our podcast, and I look forward to having our next fireside chat, our next guest speaker on our podcast as well. But I want you to bring up an incredible man who’s been a part of an incredible vision that is revolutionizing the housing industry for our next fireside chat. Paolo Tiramani. Come on up, brother. Come on up.

(00:03:12):

Now he wanted to do the picture, so we’re going to do the picture like we were U F C fighters, right? That’s right. So he wanted to get that picture right. Yeah, let’s do it for the fireside chat, right for you guys.

Paolo (00:03:19):

He’s a big motherfucker though, so I’m not sure.

Dutch (00:03:23):

Am I allowed to? I might be. You can say whatever you want, brother. You can say whatever you want.

Paolo (00:03:26):

Let’s do it.

Dutch (00:03:27):

One more time. There we go. Right? There we go. Right.

Paolo (00:03:30):

Thank you.

Dutch (00:03:32):

So go ahead and have a seat, Paolo. Have a seat. So Paolo’s son and I have become friends right over the last year and I’ve been watching and I’ve been observing and I’ve been learning about their market and their industry. So one of the things, did you get to see the picture yet?

Paolo (00:03:52):

Yes,

Dutch (00:03:53):

You did. You did. So we have established our newest REIT entity, right? It is not open for investment yet, but it will be in the future. And that’s the Rad Boxabl reit. How many of you think that’s pretty cool? Pretty cool, right? Pretty cool. And so as we get into what Boxabl is, I’ll let for those, how many of you are familiar with Boxabl? Raise your hands, how many of you Boxabl is a little bit of a foreign conversation for you? Raise your hands. Okay. Why don’t you just give people quick snippet of Boxabl before we get into the q and a and stuff. Yeah,

Paolo (00:04:29):

Absolutely. Thanks Dutch. So Boxabl has been created to solve the housing crisis, just a very small task. Building construction today is really pre-industrial. By pre-industrial, I mean it’s not built in a factory. It’s not built in a factory big, which means that they’re built on site literally in an open field, which means it’s all regional business. The largest factory companies making buildings are about 70,000 square feet in terms of the factory space. And they can only ship 200 miles or thereabouts. Boxabl is still, I consider to be in a sort of a prototype stage and our factory is already 400,000 square feet and we’ve solved a lot of those first principles and problems that allows building construction to be in a factory, take advantage of a modern world and ship through regional factories globally. And that should do three things, lower the cost, raise the quality, and raise the speed to really lightning fast speed to buy the product by buildings in the same way we buy everything else through Amazon and expect high quality and accountability from the producer. Boxabl is a for-profit company, but we did start it as a good works project to fix a big problem.

Dutch (00:05:52):

So tell people before Boxabl, what did you do?

Paolo (00:05:56):

So to Boxabl, I had a crazy business. I’m basically an inventor. I’m an industrial designer, mechanical engineering, have a couple of degrees, and I had an IP licensing company, an IP licensing company’s intellectual property licensing company. And I had a team and we sat around and we invented product and licensed it to industry in the same way that an author or a songwriter or a book writer would get paid a royalty for every time the song is played or the book is sold. We did that with products in many, many different industries and did that for a number of decades. It’s pretty profitable, really became almost an annuity business. Cash just poured in. And as with all things, sometimes the grass is greener. And for years I thought to myself, I think I’d like to be an operator in a space as opposed to a licensor. And if we’re going to be an operator in a space, let’s fix a big problem. So we didn’t come up with the idea first because we’re sort of professional inventors. We came up with the problem first and then backed in an idea. So that’s my background, all intellectual property, mechanical engineering, and in my core, I am an industrial designer.

Dutch (00:07:09):

And so I guess your product is kind of protected a little bit.

Paolo (00:07:13):

So I think we have something like 160, a hundred. Well, I think no, Boxabl alone has I think about 60, 65 patent filings. But I would add that really in terms of the sort of defensive realm, patents are just one layer really. It’s a technique, know-how scale money. And also I’m not sure that we don’t want competitors. The market is so big, we want to fix a problem. We’re trailblazing through certifications and a lot of problems and people backfilling behind us, more power to ‘em. I think we’ll probably actually help them. I mean we would actually help them be successful.

Dutch (00:07:54):

Pave the way. Yeah. Well, cool. So these are all investors in here and a lot of ‘em, how many of you have invested in Boxabl prior to this? And so we can have a few more Boxabl investors at the end of this weekend for sure. And I know this isn’t a time where you’re offering a security, but talk to people a little bit about what they should be looking at, right? You’ve been an investor for a long time yourself, what should be people looking at when they make investments? What makes a good investment into a business versus a bad investment?

Paolo (00:08:24):

So I have been an investor for a long time. I’ve invested in a bunch of different technology, all the usual suspects that we all invest in and do very well. And really, I don’t really have a tremendous amount of investment advice. I’m more on the design and engineering side of things, but so I probably sort of default to popular wisdom people, smart than me, like Buffet that says, know the product, look at the management, look at who’s leading it, look at what they want to do, where they want to go. Do they have something unique? Do they have something protectable? If they don’t have market share, are they on a track directionally to get market share? And then perhaps with longer term investments, when is it over? When is the party over? When is the party over? For example, I had a probably, maybe I shouldn’t say this, but I say it. I had a pretty large position with Apple for I think eight 18, so it’s 15 years and I nix the whole thing out, took the hit, took the long capital gains plus five, 25% and put it all on Tesla. I look at so directionally where they’re going. I don’t see a car company. I see artificial intelligence, I see robots, I see self-driving cars, I see a genius at the helm. What else do you need to know? Sold Apple, bought Tesla. So that’s my sort of pocket wisdom on investing.

Dutch (00:09:50):

And there’s good wisdom in that too, right? Because one had a founder who built something unique and incredible and that founder passed away and it turns into a board of directors, right? Running an organization. And I think that starts to change the DNA of an organization. It’s something to consider when you’re making investments. Whereas Elon is still at the top, still a founder, still pushing and driving. Even Amazon Bezos is no longer running the ships, steering the ship anymore. And so that game has even changed with Amazon. And so it’s not that Walmart’s with the Waltons, right? Not that Walmart might be the right investment for some people at certain times, but timing is critical when it comes to making an investment and when your timing is off, your risk exponentially for me goes up when you have a company that doesn’t exist yet with no profit, no revenue, no actual tangible product is something you have to be very careful about because sometimes it’s easier to sell an idea than it is.

(00:10:52):

It is to sell an actual, tangible real product. And so as you’re looking at business, especially in the crowdfunding space, and I know there’s a lot of my crowdfunding friends or a lot of my startup businesses, they’re going to hate what I’m about to say. But if a business hasn’t made a dollar yet for me, that becomes a very difficult business to invest into and it’s going to be in my highest risk bucket. Now one of the things about Boxabl is you guys not only have made money, but your waiting list is this monstrous waiting list, right? So talk to me a little bit about what does your waiting list look like? What is the demand for your product?

Paolo (00:11:31):

Yeah, yeah, thanks. So I think that’s just right At the end of the day, show me show prototypes are fairly easy to produce. They’re fairly easy to gloss over. We’ve all seen electric trucks being pushed downhill with no motors, things like that. I’m not going to name names Nicola, but things like that. So how quickly can you get to market? How quickly and profitability are we talking about? Direct costs versus total investment? Total capital investment in the company. Boxabl is interesting. We’re seeing explosive growth. I think two and a half years ago we were in a 10,000 square foot r d lab. 18 months ago we moved into 170,000 square foot facility, started building homes. That facility is up to now 400,000 square feet, which blows my mind frankly, every time I wake up in the morning, I think is

Dutch (00:12:24):

Anybody in here even comprehend what 400,000 square feet is really like?

Paolo (00:12:28):

It’s big. It’s really big. Several foot five. I can’t do the math actually in my head. In terms of acreage, we’ve managed to raise through crowdfunding, I think about 150, $160 million. I think it’s probably one of the most successful crowdfund out there. I might be wrong about that. I think Grant probably has done better actually in terms of crowdfunding, I actually believe we could probably raise a billion dollars crowdfunding because the power of the idea is so strong and I believe we’re executing today reasonably well. Lots of challenges. Our wait list is about 170,000 for this Casita product. This a D U accessory dwelling units, about 400,000 square feet. How

Dutch (00:13:09):

Many of you would like to even imagine what a thousand people waiting for your product is, let alone 170,000 people waiting for your product? Is that pretty mind blowing, right? It’s pretty mind blowing. Yeah,

Paolo (00:13:21):

You got that broad shoulders because a lot of people relying on you, obviously we have large cap table, we have something like 40,000 investors and that’s exploding every day. We do reg A 75 million a year and then a Reg D from more certified verified investors. And yeah, it’s interesting. I mean when we started, if you can imagine if I could bring you through my own personal pain points, we went from that r and d factory with a bunch of theory and probably two dozen guys 18 months ago, and I think the first house took a couple of months to make and we had a D O D Department of Defense order to fulfill for 156 units. You’ve got colonels coming in and telling you off. It’s quite interesting. And today, and I mean those first few months, thank goodness, oh, she didn’t come around. We’re very OSHA compliant.

(00:14:22):

Now we’re very safety conscious, but I mean it was rough and tumble. It wasn’t an automotive manufacturer making another type of car and they were just drafting in those people. Everything was new and we went from a couple of dozen people to 200. It was pretty staggering. And today, 18 months later, we sort of wound the production down. If you can imagine that we make a house every four hours and make two a day on one shift. We could wind that up, but we’re going in and fixing all the issues that we need to fix as we get ready to be consumer grade. I think by the end of the year we’ll be down to somewhere between 20 or 40 minutes to build an entire house and this is what’s required. And then one step beyond that, as I said, we’ve got 400,000 square feet today.

(00:15:11):

Actually this is breaking news. Yesterday we had 300,000 square feet, so I’m not sure I was supposed to say that actually. So yesterday we had 300,000 square feet and today we have 400 I think. So Illa factory, we call it Villa. We’re looking at putting up much larger factory that will start in the one to 2 million square feet, be a regional facility, go up to about 6 million square feet. And I think we can make, the goal is the reach goal is to make a home every 60 seconds, which sounds mind blowing until you realize Ford and General Motors do exactly that. The Ford want 50, they make one every 60 seconds. It’s a lot more complicated than a Boxabl. So making it home every 60 seconds, highest quality, lowest cost, maximum speed, those are the three legs on our stool. That’s where we have to go if we’re going to actually make a dent in the housing crisis and turn housing, building construction into a consumer product like everything else that you’re wearing, everything else in this room.

(00:16:17):

If we wind up being a regional facility, I would consider that a failure. The current factory should be able to make between five and 6,000 homes a year. That would make us one of the biggest to be about three, $400 million at this stage. I would consider that a failure if that’s all we do. So the vision is extraordinarily large. And then scale beyond that, we would actually do a franchising rather like is there are actually sort of micro factories and we would look at that model to franchise overseas. So regional facilities, few regional facilities domestically in our country within our borders. And then overseas franchise model. You’ve got foreign market, foreign taste, foreign laws, foreign distribution, let those other companies, foreign companies and countries in some instances bring their capital and know-how so that we can really scale the business. The business has been engineered from sort of the D n A level for scale.

Dutch (00:17:18):

It’s such a fascinating thing. One of the reasons we’re going to open a RAD Boxabl REIT in the future is because we want to be a primary distributor. We want to be a primary users and we want to be able to buy, if the A amount raises up to 150 million a year, which it looks like the legislation is going to lead there. Currently it’s at 75. We like to buy $150 million a year worth of Boxabls in order to deploy into cities and markets across America. Now how many of you realize that in order to deploy and buy Boxabls you’ve got to own and buy land? How many of you get that right? And so actually RAD started its land buying mission back in 2020. And so we started acquiring our first acres and our first land for construction and development, not for 2020, but for 2025.

(00:18:09):

And so we looked at the scale of the market, we looked at where things were going, and we started putting down everything from a single lot of land in the city of Philadelphia all the way out to thousands of acres in corridors between major cities. Now we don’t buy our farmland in order to turn it into development construction land. We buy farmland as farmland. So our development and construction land is actually very separate from our development and construction properties. But how many of you get, you’ve got to start planning these things way out in front. If you don’t start planning them now, then you’ll be behind the market instead of ahead of the market. So Paolo and his team, they started looking at things and you and your son had to start saying, this housing shortage isn’t that big of a deal yet, but they could see how fastly quickly it was coming and in America, right?

(00:19:02):

Is this for me? Can you guys hear me better now with this mic? It sounds the same, doesn’t it? Oh, for the Q and a. Well, one of my team can come and grab this for the q and a. I’ll let one of the guys from the back come and grab it. There you go. Thanks Vince. And so one of the things we started to realize is that the cost of construction was becoming too expensive to build properties in neighborhoods. A lot of people don’t understand that a lot of poverty in America is created culturally. And the reason a lot of African-American communities in America have cultural challenges is because the developed cash markets, discrimination in the lending industry kept a lot of communities from the ability to be able to buy and sell property and allow property to grow in value. Because what developed was cash markets.

(00:19:51):

Well, what happens is eventually the cost of construction supersedes the cost of housing. And when construction supersedes the cost of housing, nobody wants to build in those neighborhoods anymore. Nobody can rehab, nobody can fix, nobody can repair houses in those neighborhoods. When I bought my first tax deeds and the cheapest one we ever bought was a $5,000 house in Philadelphia, when we first thought bought that house, there was no way that the cost of construction made it financially smart to go ahead and rehab that house waiting a couple years. Eventually it got to that point where it made sense to rehab and fix that house. But what Boxabl does is it reduces this cost of construction to something that’s reasonable and it can put good housing and good markets. Now have you guys found financing available to people right when it comes to the Boxabl product or is that something you guys are working on? We can get hel mic because his mic’s not catching. Oh, your mic’s not catching. It’s

Paolo (00:20:47):

Mine. Yeah, I think it’s off one side. Can everybody hear me okay? Is that better? Can everybody hear me louder? Okay. I use my big voice. Okay.

Dutch (00:20:58):

Put on your big boy pants. Yeah, your U F C pants.

Paolo (00:21:01):

Yeah, so I mean what Dutch she’s talking about in terms of developers and risk risk comes in many forms. So for that developer, they have to start putting out money at the get go at the beginning and they have to bring in all the different trades and they have to start paying as they go. It is not really the best way. The Boxabl way is that the developer who in most instances really just wants to be a marketing company and turn projects a market, their communities to prospective homeowners, has to do all these other things. They have to build an open air factory. It doesn’t really work the Boxabl way. They keep their money in their pocket. They have a lot less backend expenses in terms of everything from architects to accounting. And when they’re ready to buy the product, they buy the product and it just ships next day, next week from the factory. So debt is tricky, but it’s necessary to build any business and the Boxabl product can really help alleviate developers when it comes to that.

Dutch (00:22:11):

Very good. And so with Boxabl, right, what do you think your fastest to market is? Where’s the best place for the Boxabl product to be in people’s hands?

Paolo (00:22:20):

Yeah, so one of the challenges we’ve had is with certifications. So again, it’s a pre-industrial business. It’s our job to grind through state by state with certification. So you’ve got hud, you’ve got modular, you’ve got rv, you’ve got Park rv, this crazy fragmented makes no sense for mass production. So what we’re doing now is we have to grind through state by state with our modular code. Modular building construction is the highest code in the land. The Boxabl product is actually quite a bit stronger in a whole bunch of different areas and much better. So we may actually even at the federal level have a Boxabl code, which should be higher than the modular code, but that’s a slower, we have to literally go west young man. So

Dutch (00:23:11):

Are you doing state by state certification or is it county by county or is how’s it

Paolo (00:23:15):

Working? Yeah, we have to go state by state and then even the counties have their own rules. And then there are certain things like HUD homes, park model, RV trailer. So right now we can put out park model rv, we’ve just been certified in Arizona and legal and lawyers is a big part of our business. It’s not what we want to do. We want to focus more on making houses, but trailblazing and unifying the marketplace in terms of certifications nationwide is definitely a big part of the Boxabl challenge and we’re doing it.

Dutch (00:23:50):

Okay. So what does five years look like from now from Boxabl?

Paolo (00:23:54):

Oh man. What do you think it looks

Dutch (00:23:55):

Like?

Paolo (00:23:56):

Well

Dutch (00:23:56):

I know you said failure is being able to produce five or 6,000 homes a year, but what does success look like?

Paolo (00:24:02):

Yeah, so the answer of course is, I don’t know. I think what we’re planning though is Boxabl, as I mentioned before, which could be between two and 6 million square feet, something in that neighborhood. I think we certainly would have some factory franchises at that point. I think we’ll have staffed up to thousands of people. Our r d center will be significantly staffed up. It’s interesting, we actually don’t have folks from the construction industry. I think we have one poor lonely gentleman, but we do have people from Boeing and Tesla and all sorts of tech companies, very few people from the building construction industry. But in five years, I would imagine if we keep at this pace, so being public, obviously company needs a lot of cash, needs billions of dollars to grow the speed that we’re growing. So that’s something obviously that’s on our radar and definitely a couple of franchise factories and I don’t know where they would be. It’d be just opportunity driven by the folks that come in outdoors

Dutch (00:25:17):

Who’d like to own a Boxabl franchise factory. How many of it’d be kind of cool, right? Oh, very nice, thank you. I think we could do a reg A for a Boxabl franchise factory as a group and raise capital for that. It’d be pretty cool,

Paolo (00:25:28):

Right?

Dutch (00:25:29):

That’d be great. You got to think of, remember what we said with Cardone when he was up here, right? First thought was why, why? And the second was how. And the third thought was how do we make money from that ourselves as individuals? And as you’re processing through, start thinking through some of those things. Now, one of the things you want to be credibly careful about is you got to do a unique balance between where Boxabl is and where a lot of companies are. And so where Boxabl is a place where they’ve overcome regulation, they’ve overcome certification, they have product in the marketplace, they have a long waiting list. Now there’s a lot of other companies that have incredible ideas, but they haven’t overcome the regulatory fight yet. And that’s something you have to be incredibly careful about. I shared before my parents, they owned a racetrack in Texas without gambling being legalized in the state of Texas.

(00:26:18):

And that was probably a mistake by them. And so that’s where that speculation comes in. And so you have to learn the difference though, and you have to narrow down on that moment when a company goes from speculation to reality when a company is still fighting regulation and they’ve been able to beat regulation knowing that there’s still more regulation to happen as a business owner in today’s, you will always be in a regulatory battle. It will always be a part of the conversation. Again, the reg a industry itself, I think seven days ago or 10 days ago, had 10 companies that were fined by the S e C on how they were offering their circular to the public and how they were offering their statements to the public. And those aren’t companies that you should suddenly be like, oh, they suck because they got a fine from the SS e C.

(00:27:09):

Those are companies that you should read it and make your own educated decisions about it, but they’re going through the regulatory fight. It’s like you said, if OSHA had come in in the beginning, you guys would’ve been in an uphill battle. I can tell you right now, if OSHA had come in to our rehabs 10 years ago, they probably wouldn’t have been very happy. And so this is kind of part of the conversation that you have to have is as you’re going through the chaos of growth, it is a constant maneuvering to survive and to then thrive. And so that’s a unique balance. And if somebody’s never been through the maneuvering to survive and thrive yet, then they’re not ready. They don’t have the experience as a founder to go beyond. You say it’s your core, you’re a designer and you’re core. I think it’s your core. You’re definitely an entrepreneur. And I think that’s kind of the difference between somebody who’s been able to battle, been able to get through the obstacles and the chaos it takes for starting and growing a business and somebody who doesn’t. Right. Go

Paolo (00:28:12):

Ahead. Yeah, absolutely. I’m definitely at my core an entrepreneur, and actually I think this Boxabl may actually be my first job where I’ve been employed. So I’m not sure you guys should really be investing with a guy that this is his first job. But at my heart, I’m wired as an entrepreneur and anybody considering going down the path that I’ve gone down, my business partner, my son, Dutch are going down, I think you’re wired for it. So whatever your skill is, whatever your backstop skill is, whether it’s design and engineering for me or if it’s accounting and understanding of money or anything, you’re going to have to be a businessman. You’re going to have to be a businessman. So if your core skill is business where your streets ahead, if your core skill is designed, it takes a couple of decades to catch up and figure out the business side of it. For sure.

Dutch (00:29:15):

Yeah, I think there are many invent inventors. There are many scientists in the world that have incredible brains, but like we were sharing earlier, I’ve met people that are worth millions of dollars for not very smart. And I’ve met people that are incredibly smart who’ve never made a super high income. And so business knowledge, the ability to run or operate a business, there’s some differences between those two things. If heard Aton this morning from the panel, he was just talking about marketing and advertising. When he looks at a company, he wants to know what is their marketing, what is their advertising? Are they going to be able to sell a product? Are they going to be able to stay in business? And so for you, when you’re looking at your own business, what are some of the core things you need to do to achieve what you want in the five years?

Paolo (00:30:03):

So for us, it’s all about first principles. I think the company is a design company at its core. If we give tours, by the way, we’re in Las Vegas, not the worst place to visit. If you want to come and take a tour and we’ve set everything up in the factory as designers, everything’s beautiful, the product is beautiful, and I encourage everybody to come down for us as a company. And companies can structure themselves in many different ways. It’s all about the first principles in terms of the product itself. I could talk for hours, but the fewest number of components, the fewest number of unique components, the most symmetrical components, we study how far somebody has to walk to pick something up and move it. It’s very, very interesting. And then in the company with our staff, we actually only have a few rules, which I think some of you guys might find unusual.

(00:31:03):

Lemme see if I can remember them. The first one is all of our staff are told they can make mistakes, which is like, well, what’s that about? And the reason for that is if you don’t allow your staff to make mistakes, they’re just going to shrivel up and they’re not going to do anything. And we say to them, if you have a decision to make onboard more decisions, make five decisions, make five decisions for every one. And then if you get three of those right, we’re ahead. And if the two don’t kill us, if the cost of the remediation of the two mistakes you made, we’re ahead rather than agonizing over one issue, maybe getting it right, maybe getting it wrong. So those two things right there. And then the third one is to actually take charge. We sort of decentralize decision making and authority, and I was kidding with one of you guys backstage that I might be a little bit of a control freak, but we actually in the company, we decentralized authority and we encourage everybody to move very, very quickly.

(00:32:04):

Act as autonomously as possible. You’re not going to get beaten up if you make a mistake, but you will be rewarded if you do a great job. And that’s I think one of the key factors in terms of the structure of Boxabl to allow us to move so rapidly. It’s pretty amazing. And the other part is we have an incredibly transparent culture. So we live in this modern world where everything’s out in the open and gano, my partner and I are pretty transparent people. So we just put it all out there. We’re just being ourselves, but we found that people absolutely love it. People love us just being ourselves. So we have pretty transparent culture, lots of mistakes, everybody takes responsibility and make decisions quickly and make many of them decentralized authority. Those are some of the core principles, Boxabl, and I think it’s all centered around basically design, engineering and innovation actually at its core.

Dutch (00:33:05):

Yeah, I like that a lot. I think when companies have a culture and he didn’t say, we have this specific culture, he just said, here’s what we do, here’s what we’re working towards, here’s what we’re having. I think that’s definitely a defining part of an organization. And what happens sometimes when a company let’s say has 150 million raised, it’s easy for them to become fat and inefficient. And so as you sit here and you listen to Palo, what is he talking about? He’s talking about efficiency, he’s talking about speed. And so what you always want to do is kind of listen to the whole conversation as you’re talking to a founder and listen to what they’re telling you that read between the lines. One of the first things I do when I’m thinking about investing with a company is I’ll tell the founder, I’m not going to invest with you and I want to see how they react.

(00:33:53):

I want to see what their response is. I want to know do they come back and they continue to pursue the investment at all? How do they hand it? Do they get irritated? And I want to know what the core of a founder is. And so as Paolo’s, a successful founder of an organization and a company that is making an impact on the world, now you can look back at what was it like to talk to Paolo 24 months ago? What was it like to talk to Paolo 36 months ago? Because if you’re talking to Paolo back then, it might be a very different conversation as you’re looking through some of those things. I’m sure you didn’t think you were going to have 170,000 person waiting list 36 months ago, maybe you did.

Paolo (00:34:33):

Yeah, no, nobody plans for that, right? Nobody plans for that. So yeah, so the arc was actually pretty interesting. We decided again to become operators. We moved out to Las Vegas, a no tax state, 24 hour town for labor, pretty good traffic corridor. I think we made some good decisions there and had a decent amount of luck as well. Started building prototypes. And the Boxabl building product is these three building shells, like three Legos, the little square one and the rectangular one. And when you think about Legos and the one in the middle, that one that nobody uses. So those three are the foundational boxes of our system. And the first year we went to i b s, the International Builders Show, we prototyped a 40 foot Boxabl and we had a nice show and everything was great. And then afterwards at the end of the show, folks are saying, oh great, great, what can we buy?

(00:35:34):

And the answer was, oh, we dunno. It wasn’t really terribly well thought out. And then after that we got together with the team, small team and came up with the A D U Casita and we said, let’s make a couple of hundred, see how it goes, sell it in California and plan to scale. And then so the following year we went to I B S, and that’s where the luck comes in as well. And then the world exploded for us. Everybody found the use case, the designers and engineers did a great job with the Casita, this little square studio home, and it just exploded. And then the next thing we know we have, we can talk about it now. We had Elon Musk’s office calling. We thought it was a joke. He said, can I have a Casita? And we’re like, no, go away. And then we realized it was actually his office.

(00:36:24):

And we said, yeah, absolutely. And then the D O D came calling ordered 156 and we sat down and had a serious conversation and said, well, 156, that’s a lot. We don’t have anything. We’re in 10,000 square feet. Should we take this order? 10,000 square feet is about the size of this hall. And so as an entrepreneur, what do you do? And we sat down, had a serious conversation and said, well, what’s the worst thing that can happen? Well, the worst thing that can happen is we screw it up and we’d screw up 156 and that’d be the end of it. And that’s entrepreneurship. So it’s like, okay, let’s go for it. So that’s what we did. So it was an interesting arc. And then when we came to raise money, we’d put a few million in ourselves. I’m not exactly sure how much it crept up.

(00:37:17):

And we had angels and VCs coming in to talk to us. And of course, as is typical when you have an entrepreneur and the money, there’s a difference of opinion about what the value of the product is. And I actually side with the people with the money, not the entrepreneur because it comes back to show me. So the entrepreneur, the money is saying, you haven’t done anything yet. And the entrepreneur is saying, but, and we said, well, we’re not going to give away two thirds of the company for $20 million. We can’t get where we are going and we’re not going to do it. And then Gano said, I think we can crowdfund this. And I’m like, well, hang on. Isn’t that for fizzy pop and sneakers and whatever else? And small stuff? Apparently not. It is 150 million later and it was just an absolute catalyst for everything. So it’s been an interesting arc so far.

Dutch (00:38:17):

It’s pretty amazing. Give ‘em a round of applause everybody.

(00:38:26):

So we’re going to open it up to q and a right from the audience and we wanted to give you guys a chance to ask questions. Yes, earlier today I took all the questions with Grant, but you guys get a chance to ask questions. Take a moment though just on the sheet of paper in front of you and jot down one or two questions, right? You’ve been thinking about investing, you’ve been thinking about money, you’ve been thinking about wealth, and so we’ll give you just a moment, moment to do that. But while they’re doing that, why don’t you share a little bit If somebody wanted to invest in Boxabl, both through your Reg D right at this point, how would they do it or what would be the way to do

Paolo (00:38:57):

That? Yeah, thanks. So back to the comments about the S e C. Yeah, I’d rather say less than more. Every time I say something, we get held up because it’s something we didn’t disclose. But just go to Boxabl.com if you think it’s right for you. Have at it. Reg D is I think qualified over a million. Reg A or a plus is under, we’re sort of gearing up for another raise, which we’ll be doing every year. And think about your portfolio in terms of risk. We are high risk. We are high risk. The company of course can fail, any company can fail. We saw during covid companies that we thought could never go out of business, car rental companies, hotel chains, and then you get hit from a flank that you couldn’t see coming. So I think you have to assess your own risk level.

(00:39:58):

We have created a post-industrial space in terms of consumer goods, and I’m a consumer goods guy. We’ve done hundreds of different projects. Building construction is the last consumer product that isn’t, everything else is made in a factory, even rockets. Everything is made in a factory. Look, if you look around even the panels and these walls, except for building construction. So it is the last product grab, it is the last consumer product and it is massive. Not only is it the last one, but it’s absolutely humongous. Is building construction bigger than housing? Is building construction bigger than automotive? Yes, of course. It’s interesting. What is our competition today? We don’t have any, I’m sort of secretly yearning for competition. Maybe I’ll ru that, I don’t know. But today we’re running pretty fast, growing pretty well, but it is very high risk. Very high risk. So think about that.

Dutch (00:41:04):

That’s good. So if you have a question, go ahead and raise your hand if I can get one of my team to pick up the microphone. Ron, maybe you can grab it, getting some mic, get an extra mic. So we’ll go ahead and we’re going to steal your mic. You still have this one right? And you can just pull it off and hold it right up. And we’ll use this one if you want to come up and get it Mateo or Ron. And we’ll go ahead and pass the mic out and let you guys ask some questions while he’s passing the mic out. One of the things that I think is super exciting tomorrow morning, I just want to precursor my business partner, Amy Vaughn will be starting off the day tomorrow. And I don’t know if you guys know how hard it is to get Amy to speak on stage, but it is like moving Mount Everest to get her to come up and speak on stage. And she’s one of the most brilliant, impactful, incredible entrepreneur speakers, women I’ve ever seen in the history of the planet. So you guys are pretty lucky that she’s going to start the day tomorrow with you. So that’s pretty freaking cool. It’s pretty freaking cool. All right, let’s go ahead and go to the first question. Somebody I saw the hands go up. We’re

Speaker 4 (00:42:08):

Setting up mics right now. We got to stand it right

(00:42:11):

Be able to come up to the mic.

Paolo (00:42:12):

This is on? Yeah, this is actually on there.

Dutch (00:42:13):

Go ahead my friend. It’s not on multiple mics, it’s on. I can hear it.

Paolo (00:42:16):

Testing.

Speaker 5 (00:42:17):

Hello. My question was regarding the Boxabls. Are you able to, home is where the heart is and this is solving a crisis, but in my head I’m thinking, are these Boxabls to where people can buy their home and then say, move from Arizona to Minnesota with this thing, instead of having to go to Minnesota and buy a new house or build a new house, they take their Boxabl that they had you build and bring it with them. Now

Paolo (00:42:49):

Can everybody hear me? Yeah. Is that okay? Great. I’ll just put it right there. Yeah, no, that’s a great question. Some of the things, if I really go back and think, man, I’ve got a lot of problems here. I’m going to hold this as well. Excuse me. Yeah, so along with the, oh, I don’t need it. You don’t have to. Genius. There you go. Genius. So along with new technology, you get some benefits that you didn’t get with the old technology. So you’re absolutely right, sir. You can pack it up. The current Casita unpacks in about an hour, and I think it probably packs down in about the same amount of time. These are built to modular code stronger than, so these are basically concrete and steel homes. We have a forever philosophy about the building, construction and strength of this product. This is probably the most expensive thing that a lot of people buy in their lives.

(00:43:50):

It should last for their life and the children and their grandchildren’s lives. That’s our philosophy. Having said that, we have deployed, packed and unpacked our product the same one dozens and dozens of times. So it’s interesting when you think about that, how does that change the economics of the situation? So you want to move and you can actually pack up your home and move it. Or as the business matures, what does that look like for a young couple that has a baby that if they’ve got the right piece of land they can add to their product? Or what does it look like for empty nesters that don’t like their tax bill and the kids have left and they fight when they come over at Christmas and they can remove a bedroom or two so they can only visit one at a time or whatever. So that level of portability I think is game changes, but I think that’s going to take, if we’re successful, I think that’s going to take a generation to play out. But really it’s a great question. And yeah, massively portable. It’s pretty amazing.

Dutch (00:45:02):

We’re going to go over here.

Speaker 6 (00:45:05):

I have a question about zoning and regulations. So I’m sure that might be a challenge for people that would want to install one. How are you guys overcoming that? What limitations are there and where does it work well, where does it not?

Paolo (00:45:18):

So our two biggest challenges are onboarding the smartest people we can find and certifications in this pre-industrial space. As I mentioned with this incredibly fragmented, it’s as if you might buy a car in San Diego and then you want to cross the border to in California and you want to cross the border to Nevada and somebody stops you and says, oh no, that car can only be driven in California. You can’t bring it to Nevada. That’s the situation we have. We’re building construction today and it is our job. It’s our responsibility to trailblaze through that. It’s going to take years. We’re getting involved at the state and federal level. We have a lot of attorneys. The states are great. It’s something they haven’t seen before. They’re working with us and working through those changes that they have to make. And we have to make it is the single biggest challenge that Boxabl faces is the zoning.

(00:46:27):

You’ve absolutely put your finger on it. However, there are some common codes like modular, so that’s a godsend for us, frankly, along with some trailer and RVs. So when you think that Boxabl is a higher standard than the highest standard in the land, which is modular, and then we’re classifying it as an RV or a trailer and the state is happy and it’s like, okay, we’ll do that for now. We’ll do that for now. But it is a huge challenge. It’s a multi-year challenge, but I have to say it does and will get easier because as the states become familiar with the product and they see that first we’re certified in Arizona, that’s the first one. I think we’re finally through that. And then we’re doing California next, Nevada of course our home state. But yeah, massive, massive challenge and it’s our burden and we’re doing it.

Speaker 6 (00:47:23):

Thank you.

Dutch (00:47:24):

Good, good question. Let’s keep going.

Speaker 7 (00:47:28):

Good afternoon, Dutch and Palo. I’m Michelle Costello and I’m here from Hawaii. I’m an apartment owner and also a real estate developer. And my question is related to strategic partners for shipping. There’s tremendous opportunity if you leave the mainland continental United States and provide housing in Alaska and Hawaii. And I wanted to know if you had any strategic partners such as Matson or how you were tackling the enormous issue of shipping these products to these types of locations?

Paolo (00:48:07):

Yeah, Michelle, that’s a great question. So I’ll give you a couple of key metrics that allowed us to start the company. So as I mentioned earlier, building construction buildings are big. Most factories today makes something that’s 14 foot wide. If you just keep that number in your head, they need a permit, flat car, front and rear. It’s complete disaster. They might be able to get 150 miles from their factory. The magic number is eight and a half foot wide, eight and a half foot wide, and 13 and a half feet from the black top to the top of the delivery. And in Europe it’ll be 14 feet, so a little easier. So Boxabl packs down to those key dimensions to eight and a half foot wide. And then on its trailer from the ground to the top is 13 and a half feet. And by the way, instead of pulling it with a quarter million dollar big rig, we can pull ours with a pickup truck.

(00:49:04):

And instead of pulling one with a big rig, we can pull two with a pickup truck. So you can see the economics there are pretty amazing. And then when it gets on site, it almost in rough numbers can triple in size. So you can see that it’s just the gift that keeps on giving that for the volume that we ship, we can ship it, we can ship one truck instead of three for the volume. And then in terms of shipping overseas, they’re basically container size. They don’t go in a container, they are the container. So again, that was a big part of the project to make them transportable by land, sea, and rail. And in fact, at Boxabl, we’re looking for the first regional factory rail is going to be, I think a big one for us to get a rail spur to go to DCS around the country. But for Hawaii where you are, there is a lack of skilled labor. There’s a lack of skilled labor and there’s a lack of quality, very variable quality. And it’s hard to build in Hawaii because we’ve had guys come through our doors and we have some projects planned for Hawaii. So now ship a Boxabl, the quality’s there, any warranty issues, there’s a company to talk to exactly what you’re getting.

Dutch (00:50:31):

Thank you. Good question. Good

Paolo (00:50:33):

Question. Yeah, that’s great.

Dutch (00:50:34):

Alright, we’ll take these last two.

Speaker 8 (00:50:36):

My name is Henry from Daytona Beach, Florida and I’m in construction. What’s so ironic, just two weeks ago I told my wife said, I don’t have to worry about robots taking my job. So I expect it to be in business for a long time. Now, who would coordinate if there are repairs needed? What I specialize in repairs, if there’s a repairs, do the repair have to be certified by you guys or how would that work?

Paolo (00:51:04):

Yeah, yeah, that’s actually a great question. And if you don’t mind if I can broaden your question a little bit, who installs it? Who installs the product? Who unpacks the product? It has to be done correctly, it has to be weather tight and it has to be done to our standards. So whether

Dutch (00:51:20):

There has to be foundations, there has to be plumbing, there has to be electric. All of those things have to be done correctly in order for a Boxabl to function and work just like any other development or any other construction. The most important part is once that foundation is laid right now, the product can be come in and obviously erected.

Paolo (00:51:41):

Yeah, exactly. So we do everything from the outside of the four walls in. We make it easy. All the gray water, the normal water, the electric, everything ports to one corner. But we will have authorized installers. We’re now making plans for a Boxabl U sort of a Boxabl university. We’ll have a lower grade of authorized installer. That’ll be online certs. But really we want people to come and spend two weeks with us to learn everything Boxabl to be authorized. Installers and developers like Dutch, it’s easy. These are professional people, but if you’ve got the onesie twosie customer, there has to be a third party involved for the handholding. And that third party is going to do basements and driveways and septic or city sewer and things of that nature. And we don’t consider it. Our responsibility doesn’t end when the product leaves the factory. We’re looking at this problem from the raw material supply chain to the configuration and the financing. We are looking at the whole thing from soup to nuts, but we can’t do it all at once. So we start with the kernel that we can start with and then grow out from there.

Dutch (00:53:02):

Great question. Great question. Give those who ask questions already a hand though, right?

Speaker 9 (00:53:16):

And given the propensity of governments to screw things up, I guess what stops you may have in place or helps because when you come in with a house that’s already prebuilt, you’re taking money from the local governments, they’re not going to like that. I know you still have to have an inspection or whatever in they, but you’re taking a lot of development fees away from governments. And I just see advanced regulation coming, additional fees that are going to be topped on. And I dunno if there’s anything you can actually do about it, but obviously your costs are going to continue to increase as it goes. I mean, when I first heard about Boxabl, we were about 50 grand for a casita, and now I think we’re a little over 60 grand plus delivery. So costs are going to keep going up. So where’s the balance point of when from affordability to not becoming an affordable,

Paolo (00:54:19):

Yeah, no. Great. So there’s a question in three parts. So I’ve got to remember all three. But the first one is I’m not going to get myself in trouble with my opinion about the government, which is not very high. So yeah, a lot of friction screw things up. Absolutely. I think in terms of local buildings, specs and revenue and things like that, I don’t think that the local municipality sees it that way. They’re not looking at the bottom line, they’re actually not looking at money. The individual people on the ground, they’re just looking to do their job and do it quickly. So what we’re finding is the first time they see it, they don’t like us because it’s new and they’ve got to scratch their head. And Joe, the inspector has to come out with all due apologies to any Joe’s out here, but Joe, the building inspector, the second time he sees it, it’s like, oh, it’s a Boxabl, it’s a Boxabl.

(00:55:10):

And they’re happier and he can get off earlier. In terms of costs, I would disagree with you respectfully. We’ve gone from 50 to $60,000, we’ve had several years we’ve had a pandemic. I dunno what costs have not gone up. I don’t believe our costs are going to increase. I believe our costs are going to decrease because we’re making homes by the hundreds now. We’re then going to be making homes by the thousands and by the tens and hundreds of thousands. And there’s so much meat on the bone, there’s so much fat in the current supply chain and business. There’s so much limited and secular engineering that when you look at the whole thing, the opportunities for cost reduction are everywhere, are everywhere. And my goal is not for prices to go up. I have to be careful what I say, but my goal is for prices to go down when I think about the best.

Dutch (00:56:16):

But the gap is big, right? From the cost of new construction, the cost to build to the cost of a Boxabl, this gap is enormous. And so it will take a long way. But there’s a couple other things with it too. Like speed to market. Boxabl has got to move, right? If Boxabl can’t get to the market, they can’t get widespread appeal in the next five years. They’ve already missed their bubble. And so they need to be speed to market. That’s one of the things you hear ‘em. Efficiency. Efficiency. How fast can we build? How fast can we build? Because when there’s market acceptance, it’s much more difficult for regulatory bodies to ban something or keep something out. And so speed to market is incredibly important. But I also think when your largest builders in America are laying off people and they’re ending new construction projects, there’s still going to be a housing shortage.

(00:57:06):

Boxabl could produce a hundred thousand homes in the next year, which would be a big huge amount of homes, right? Way beyond what current capacity is. But at the same time it wouldn’t even scratch the surface. And so I think it’s a long ways now you’re going to hit counties. There are absolutely counties in America where there is organized crime. I mean by organized crime, I mean politicians who feed their friends and family, politicians who feed their friends and their buddies and they keep businesses out and they keep other people from being successful. I’m not going to say specific cities and counties and town because I don’t want to make it an obstacle for my company to be able to do real estate in those cities and towns. But those things absolutely exist within America. It still exists. And so for one of the things you have to do, right as you’re going to have to sometimes not fight battles and sometimes choose the battles you’re going to fight in business, you need to avoid war at all possible costs.

(00:58:04):

Like the TV show billions where they’re constantly fighting wars is not reality. If you’re constantly fighting wars, your business will fail. You’ll run out of emotional energy, you’ll run out of money. It’s not the way you’re going to go and you can’t fight regulations, you can’t fight the SS e C, you can’t fight the government because they have more money. They’re bigger than you can ever even imagine. So what you have to be able to do is understand how to play the game. You can’t be a politician if you’re going to run and operate and grow a business. I can’t control left Blue, I can’t control middle, I can’t get code Libertarian, I can’t control all of these different things. What I can control is playing the game and understand how to play the game. So there will be absolutely markets where Boxabl is not going to be going into, but there’s going to be the opposite as well.

(00:58:52):

There’s going to be markets that say, Hey, if we can have a better housing product right for people to live in, then people are going to move to our city. Because in the reality in today’s America, virtual living, virtual working is paradigm and it’s important. And so places where people want to move to that can have affordable housing is incredible. There’s still beach cities in America where there’s housing shortage and there’s affordable housing. There’s also beach cities that cost millions of dollars for a 2000 square feet or even a thousand square feet. And so it’s all about those places and the shortage is just so big and our population is going to constantly increase. And if they followed my belief of add a hundred million people to America, then the housing shortage would be even greater. And then housing prices would really go up and all of us invested in a housing REIT would make lots of money. So anyways, next question.

Paolo (00:59:44):

Can I just add one thing? Go ahead to that. For this gentleman, and we actually, we haven’t felt anybody trying to ban us quite the opposite. We’re politically agnostic, we’re in a highly politicized environment and some things are in favor and some things are out of favor, but on the left, the right, all of it, everybody wants to fix the housing crisis. Everybody wants to improve the quality and put more and

Dutch (01:00:10):

He’s not the one fighting his heads that local battle anyways, those of us being distributors are the ones fighting the local battle. And so for me, I’m going to figure out which market I can have my Boxabl town or my Boxabl park or my Boxabl area in, and then that’s where I’m going to build. And if in let’s say Brandon, Florida, I can’t do that, but in Philadelphia I can then I will do it. And if in Philadelphia I can’t do it and I can do it in Houston, Texas, which has a little bit lighter when it comes to some of the zoning and construction things, then that’s where I’m going to do it. But the housing shortage is a nationwide problem. It’s not a one city problem. And so there are different cities that you’re going to be able to deploy in. And then as it widespread appeal, at the end of the day there are laws that cannot stand in the way of us being entrepreneurs. And there is enough of a margin gap where it just makes sense to do what you need to do to be able to make a Boxabl acceptable within individual marketplaces. Last question and then we have to wrap up the panel. I apologize for the gentleman who’s late.

Speaker 10 (01:01:13):

Oh yes. I have a question for Paolo. I was wondering earlier you were talking about sort of approaching business from the perspective of your expertise and I was just kind of wondering what might be some challenges you faced or sort of mindset shifts you went through in your journey from an engineer to A C E O

Dutch (01:01:30):

Asked by an engineer?

Paolo (01:01:33):

Yeah, that’s a great question. I mean, if I just go back to day one, I just started the licensing model from day one and I definitely spent several decades just focused on design and thinking build it and they will come. No, that doesn’t happen. You have to backfill with the shit that you don’t want to do and you just have to find a way to enjoy it. So you can’t be a prima donna, you can’t be narrowly focused. You, you’re going to have to learn those other skill sets. And I mean, I can read a contract pretty decent negotiator. I hate it reading a contract, can’t stand reading a contract. We have attorneys, they love reading contracts. So you just have to say you can’t just be the best at one thing. If you’re going to be an entrepreneur, you’re going to have to be at least average on the rest of the staff. And of course surround yourself with people who are brilliant at those things that you are not skilled at.

Dutch (01:02:43):

Awesome question. We’ll take the last one. Go for it.

Speaker 11 (01:02:46):

You had touched on financing box product. If you could elaborate on your efforts to partner with mainstream lending and trying to getable as an acceptable product for mainstream banks to be able to lend on is oftentimes that’s the biggest challenge for a consumer to be able to purchase a home is getting that financing.

Paolo (01:03:05):

Yeah, absolutely. So we’ve only just started to work on that. We’ve really been doing developments with the government, with folks like Dutch who I think are going to be great as we get into the consumer grade. And

Dutch (01:03:21):

It’s a horrible time for him to work on that, by the way, right? Lenders are tighter. They’re not looking at as more alternative products right now. I mean, they have pinched their cheeks together as tight as they possibly can right now. But you’ll see as you’ll see the first time interest rates drop as you see interest rates steady out as people see where this economy is going to go in the next six months, you’ll see them start to open up. But as you continue to see the bank failures, that’ll happen during the next six months, they’re going to be forced to eventually lower interest rates. It’s going to happen. And also you have to understand you have a democratic president with a Democratic head of the Fed, and so they’re going to want to reelection and the only way they’re going to be able to get reelection is to spike economy.

(01:04:10):

To the end of the day, it’s always going to be the economy stupid when it really comes down to it with who gets elected and not elected. Because lots of times that’s what sways the middle maybe. There’s no hope at all for the Democrats at this point. I’m not really sure with the consumer consciousness nationwide and the polls that are out there, if we have people on our team and staff that are on the left, that’s not me wanting to offend people on the left. It’s just the way the American mindset is at this point. And so you’ll see when it opens back up, I think you’ll find that there’s going to be great ability for people who want to land. And the best thing that I would tell Paolo and his team to do, but it’s really going to be us doing a lot of that work as well, is to work with a bank and give a bank an exclusive product. Banks love exclusive products and they love exclusive products with security. So I think you’ll see in the future, I think you’ll see that available just like it is for buying mobile homes. Just like you see it is for different things that are out there.

Paolo (01:05:04):

Yeah, absolutely. So financing is definitely a part of our offerings down the road as we get to selling to those consumers in large volumes. And in the same way that, so just if you put a mental image to it, you should be able to go to Amazon and buy a Boxabl home, get it shipped next day. Nobody needs a home next day, but as a reach goal, as a vision

Dutch (01:05:30):

During natural disasters, they might,

Paolo (01:05:33):

Well, FEMA is a whole other topic where I think we can definitely help.

Dutch (01:05:37):

Alright, let’s give Paolo a big round of applause, everybody to have you. Great to.

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/03/24  Boxabl Inc.                       1-A/A                  3:81K                                    M2 Compliance LLC/FA
 4/30/24  Boxabl Inc.                       1-A/A                  3:1.8M                                   M2 Compliance LLC/FA
 4/01/24  Boxabl Inc.                       10-K       12/31/23   71:20M                                    M2 Compliance LLC/FA
 3/28/24  Boxabl Inc.                       1-A/A                  3:2.3M                                   M2 Compliance LLC/FA

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

12/08/23  Boxabl Inc.                       10-12G/A               4:2.9M                                   M2 Compliance LLC/FA
10/13/23  Boxabl Inc.                       8-K:5,9    10/09/23   13:242K                                   Southridge Svcs Inc./FA
 8/10/23  Boxabl Inc.                       10-12G                16:2M                                     Southridge Svcs Inc./FA
 5/26/21  Boxabl Inc.                       1-A/A                 10:961K                                   Southridge Svcs Inc./FA
 3/17/21  Boxabl Inc.                       1-A/A       3/16/21    5:3.7M                                   Southridge Svcs Inc./FA
 1/22/21  Boxabl Inc.                       1-A                   13:2.2M                                   Southridge Svcs Inc./FA
12/14/20  Boxabl Inc.                       DOS¶        1/22/21    7:1.2M                                   Southridge Svcs Inc./FA