Invest in The Feel Good Lab

*This page represents our NetCapital.com stock offering dated May 1, 2021, including SEC filings
The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

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PROBLEM

There is an epidemic when it comes to treating chronic pain. Over 100 million Americans suffer every day from pain lasting more than six months.* Two-thirds of pain sufferers believe they will never live another day without pain for the rest of their lives.*

Current solutions are simply not working. And sadly, many pain relief options often make people sicker.

Opioids, as an example, are an incredible innovation and an effective tool for treating severe acute pain. Yet, when that pain doesn't go away, opioids become the wrong tool for the job. By design, opioids merely mask pain as a symptom and do not address the underlying root causes. Inevitably, a patient's tolerance will increase, and severe side effects can occur from consistent systemic delivery of potent medication to the entire body.

Oral NSAIDs have the same issues. Products, like ibuprofen, are wonderful for infrequent acute pain. But again, ibuprofen is not the right tool for pain that lasts or is frequent. In fact, oral delivery of medication has its drawbacks altogether. When a substance is delivered through the GI tract—eventually spreading throughout the body—it results in lower concentrations of medicine reaching localized areas in pain.

The CDC now recommends that topical pain relievers should be the frontline defense for consumers treating chronic pain. Unfortunately, nearly all over-the-counter topicals commonly found in the pain relief aisle today were formulated decades ago with toxic ingredients like parabens, carbomer, and other hormone disrupters. These are the same chemicals that were removed from beauty products years ago.

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SOLUTION

We've been treating pain in our local pharmacy for 30+ years. Decades ago, our chief pharmacist, Gene Gresh, would see patients from our community come in month after month to refill pain med prescriptions. Regrettably, he noticed these patients were getting sicker each month, not healthier. Determined to provide better care, Gene uprooted his whole life, went back to school, closed his conventional pharmacy, and opened one of the nation's first combined functional medicine with compounding pharmacy practices.

This new model allowed him to work one-on-one with patients and their doctors to formulate custom medicine that more effectively treated chronic pain. Over the years, much of Gene’s research focused on topicals and transdermal delivery of medication. The goal was to optimize delivery through the skin, close to the root cause, in order to improve efficacy and minimize side effects. The approach was amazingly successful for thousands of patients in the community.

There was a problem. At the time, every medicine we made required a prescription from a doctor. So, patients would often ask what over-the-counter products did we recommend for chronic pain? The answer was, “none,” due to all of the previously mentioned reasons.

So we began making them ourselves.

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PRODUCTS

Our products are based on decades of clinical experience. We remove all of the toxic ingredients that we don't want to be delivered to the body, which is the main pillar of functional medicine. We replace those ingredients with dozens of plant-based ones that we do want. These include turmeric, arnica, boswellia, devil's claw root, and more—ingredients that have been used for centuries in Eastern medicine. All our products are FDA-registered, allowing us to legally make the same claims as today's current market leaders.

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ADVANTAGES

When created The Feel Good Lab, we studied the competitive companies, brands, and products to fix everything wrong. Long story short, we have and always will strive to create the brand we'd personally want in our medicine cabinets.

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BUSINESS MODEL

The Feel Good Lab has a 3-prong business model.

Today, even amidst a pandemic, most pain relief shoppers prefer to purchase in-store,* so retail distribution will remain a primary focus. The retail-wholesale model is particularly ideal for our business because it provides a better margin, vast scale, and increased awareness among consumers. But most importantly, it is the opportunity for The Feel Good Lab to shift the pain relief paradigm and make healthy options truly accessible. In March, we launched with two of the county's largest retailers: CVS and Target. They love that our brand brings new customers to the over-the-counter aisle, specifically a younger and more health-focused buyer.

Our business began with eCommerce and will continue to grow here. We've built trust and credibility by selling our products directly to consumers through our website and Amazon.com. Not only does our online business allow us to make the deepest connections with our customers, but it also gives us the ability to move and adapt our brand at a moment's notice with the least amount of friction. Moving forward, we'll introduce additional healthy products to further help people relieve their pain without compromising wellness. And by thoughtfully bundling certain products together, we'll provide even better efficacy for customers at a much more affordable cost—all while driving better financial success for our company—a true win-win-win.

Lastly, we will expand our wholesale partnerships within the healthcare professional market. Physical therapists, naturopathic doctors, functional medicine practitioners, and chiropractors alike love our products and approach to pain relief. Distribution among this market will continue via a small, passionate inside sales team and via inbound leads generated from our consumer marketing.

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TRACTION

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GROWTH PLAN

Your investment will be used to grow the company in three ways.

1. We will expand retail distribution with new, more affordable product sizes
We will accelerate customer acquisition and drive trial by launching smaller, more affordable sizes of our existing products. These new SKUs will lower the barrier for customers to try and fall in love with our better-for-you brand. In-store customers, in particular, will have a higher propensity to purchase these more affordable options—this, in turn, will increase sales velocity, reduce cost per acquisition across all channels, and expedite national retail expansion.

2. We will strategically invest in marketing to scale the business
Marketing investments will center on driving performance and scale among retail locations, the largest opportunity for our brand. Overall, our marketing strategy will grow awareness and trial while achieving an acceptable ROI. Performance-focused paid media, including Facebook, Instagram, and Google ad networks will be workhorses for our growth. Concurrently, we'll use steady PR and media pitching to drive demand even further. Lastly, we'll create high-quality content to fuel the entire marketing ecosystem and, more importantly, provide real value to consumers striving to get well.

Paid Media

Paid media will spend 70% of its allocated budget on low risk, high confidence performance channels such as search, paid social, and PR. We will focus on marketing tactics that grow brand awareness in order to drive retail success but without completely sacrificing direct ROI/ROAS. In other words, this "branded response" strategy is built to generate an acceptable amount of direct sales to sustain and scale media spend while also growing mass awareness and improving sentiment around The Feel Good Lab brand.

10% of the paid media budget is dedicated to experimental tactics that carry a lower certainty of performance, but very high potential ROI. As an example, podcast marketing, a tactic that has yet to be attempted for our brand, but is hypothesized to lift demand-capturing channels such as SEM via awareness generation.

Finally, 20% of the paid budget is allocated to a mid-tier for successful experiments that we will attempt to scale. For example, if we achieve directionally positive results with podcast marketing, that tactic will "graduate" from the experimental budget into this mid-tier budget. We will push on the tactic until a maximum acceptable budget is determined based on performance.

Owned Media

Owned media tactics are planned against a list of strategic objectives and a fixed annual budget. We have a list of objectives—as opposed to tactics—that we want to achieve using our website, social accounts, email list, and amazon listings. From there, we have a total acceptable annual budget to achieve these objectives. The quantity and priority of the owned media objectives determine the budget allocation and which tactics we use. For example, a high priority objective might call for video production; a low priority objective may only include a written article on our website.

Earned Media

The earned media budget allocation begins with partners to increase the rate of media pitching and PR communications. We’ll also dedicate budget to create press-worthy moments and content to fuel PR.

3. We will expand our product lines to better help customers

Unlike most conventional pain relief brands on the market, we will expand our product lines to include solutions designed to treat the causes of pain, namely inflammation and oxidative stress. New products will be created based on what's working in the clinical practice of our chief pharmacist and certified functional medicine practitioner, Gene Gresh, R.Ph., FIACP, IFMCP.

Each new product will purposefully complement the effectiveness of the others we offer. This model will provide incremental value and well-rounded treatment options for our customers—in turn, helping arm people to fight pain with wellness effectively.

At the same time, future complementary products will deepen customer loyalty and increase lifetime value. And by creating bundles of the world's best healthy pain relief products, we'll offer consumers tremendous value at affordable prices compared to the fragmented wellness market.

Below summarizes our public-facing plan for product line expansion:

In early 2022 we will launch a line of CBD products that we've been developing within the University of Connecticut's Technology Incubation Program. Prototypes have already been produced and are currently being tested with outstanding results. These new products are the result of a breakthrough proprietary formulation technology that increases absorption rates and medicinal potency—all without destroying the full-spectrum composition of the hemp we use. Our hemp and CBD will be grown and produced locally using handpicked plant strains, giving us complete traceability and quality control. And most notably, we'll continue our current engagement with the University of Connecticut to bring much-needed evidence-based science to the CBD space, in turn making The Feel Good Lab a trusted source on the subject for consumers.

Dietary supplements will be based on what's proved successful when treating thousands of patients in our local clinical practice. These premium supplements will be designed to complement the efficacy of our existing products as well as each other, empowering customers to address the complexities of chronic pain and wellness in multiple ways. Pairing products together will provide greater value to customers while growing our business—a true win-win.

We will expand on our core mission to help consumers fight pain with wellness and capture the opportunity that exists by reimagining existing competitive products that need a healthy makeover—because items like patches, sprays, as well as many supplements contain toxic ingredients that ironically jeopardize wellness in exchange for pain relief.

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MARKET

The opportunity for healthier pain relief products, particularly ones delivered through the skin, is large and growing.

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OPERATING TEAM

Gene Gresh, R.Ph., FIACP, IFMCP is our chief pharmacist and certified functional medicine practitioner and has been practicing for the last 37+ years, specializing in the treatment of pain.

Gene's role at The Feel Good Lab is to provide leadership in the medical field, helping steer our brand toward scaling pain interventions that are healthy AND effective.

Gene's local combined pharmacy and functional medicine practice will remain the proving ground and center of innovation for future products made by The Feel Good Lab.

Former aerospace engineer and supply chain consultant. Led negotiation of $800MM+ in longterm contracts with F500 companies.

Former vice president of 115-person Omnicom marketing agency. Led strategy for Canon, Boston Scientific, SAP, AT&T, and more.

Former Red Bull executive and startup leader. Led sales and marketing projects in Red Bull’s largest metropolitan markets.

Former CEO of three CPG, e-commerce/digital/retail startups with prior executive roles in branding, operations and general management at PepsiCo and General Mills.

Former medical device sales executive and professional basketball player. Leads field sales and supports ops to drive business growth.

Design and UX expert specializing in brand building and digital creative that performs. Makes things beautiful and effective for our brand.

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ADVISORS

Former President and CMO Global Duracell Division of Procter & Gamble

Former SVP at Alex & Ani and current social influencer and strategist

Executive data-driven growth strategist for F500. Led innovation for Nielsen and Kantar.

World-famous CrossFit  coach behind 7 CrossFit Games championships.

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ANNUAL REPORT

SEC Form C-AR, 12.31.2021