• How much capital an issuer is trying to raise with its current offering
• Whether this is an issuer’s first offering using Title III
• If this is not an issuer’s first offering, how much the issuer has raised in other Title III offerings during the last 12 months

• Its total income, tax income, and total tax as reported on the Issuer’s Federal tax return, certified by an issuer’s principal executive offer
• Financial statements certified by an issuer’s principal executive officer
• If available, financial statements reviewed or audited by a public accountant independent of an issuer

• Financial statements reviewed by a public accountant independent of the issuer
• If available, financial statements audited by a public accountant independent of the issuer

• If this is an issuer’s first offering under Title III, financial statements reviewed by a public accountant independent of the issuer
• If this not an issuer’s first offering under Title III, financial statements audited by a public accountant independent of the issuer

• Information included on Form C
• Updated financial statements certified by an issuer’s executive office (while reviewed or audited financial statements are not required, if reviewed or audited financial statements are available then they must be provided)
• Disclosure and updates about the issuer’s financial condition

• Fraud: while Netshares conducts due diligence on each issuer before allowing use of the Netshares platform, there is always a risk the offering is a fraud or otherwise raises investor protection concerns
• Lack of professional management: many small companies are managed by founders, and while the founder may have strong technical skills, he or she might not be an effective leader with managerial experience or management skills
• Limited products and services: many companies have core products on which they focus. Failing to adapt these products and services to the changing needs of consumers, continual advancement of technology, and intense competition from other companies could cause a company to fail
• Lack of access to capital: funding Portals are designed to help companies raise the capital they need, however Netshares’ platform is not the solution to all capital problems. Without adequate capital, companies can accumulate debts and eventually fail financially
• Lack of accounting controls: smaller companies typically lack controls that prevent theft, embezzlement, and accounting fraud, leaving them exposed to additional risks
• Lack of technology: many small businesses cannot afford technologies that help them cut costs and make operations more efficient
• Cash flow shortfalls: if a business fails to generate enough money to meet payroll, it might not meet its payment obligations to investors

• Lack of ongoing information: companies that issue securities using Title III must provide some information to investors at least 12 months following the offering, but the information a private company must make available is much less extensive than that of a publicly-traded company, and a private company is allowed to stop providing annual reports in certain circumstances
• Competition: smaller businesses face competition both from big corporations and from other businesses, which can cause a company to be out-competed and thereby fail
• Inability to sell your investment: you cannot sell your securities except in limited circumstances for 12 months starting from the date you acquire them. Be prepared, therefore, to hold your investment for its full term
• Change in economic conditions: unfavorable economic conditions could hurt an issuer’s business and thereby its investors
• Uninsured losses: a company might have inadequate insurance to guard against risks, whether because it cannot afford insurance or does not know enough about insurance. There are also some risks that are nearly impossible to insure against at a reasonable cost
• Unreliable financial projections: while issuers provide financial projections that reflect what they assume about future financial conditions, it is nearly impossible to have accurate financial projects, especially for startups
• Changes in laws: Changes in laws or regulations could hurt many companies. Companies have little to no control over how new laws will affect their business
• Lack of professional advice: unless you hire your own professional advisor, you may be “flying blind” and could potentially make a poor investment decision due to a lack of professional advice. Funding portals cannot and will not offer you any investment advice
• Reliance on management: securities offered on the Portal will most likely not give you the right to participate in an issuer’s business management. Unless you can rely on a company’s management team, you should not invest in said company.

• Equity securities: An equity security, such as the common or preferred stock of a company, makes you a joint owner of that company. As an owner, you have the right to share in any profit distributions and also share in the company’s value appreciation. There are, however, some risks involved with holding equity, including but not limited to:
• Loss of your investment: if a company dissolves, you are paid after all the creditors, meaning there may not be any money left to pay investors after debts have been paid. Thus, you can potentially lose your entire investment
• No dividends: an issuer might not plan to issue dividends. Additionally, a business might not generate enough profit to issue dividends
• Subordination to creditors: in the event of bankruptcy, creditors are paid first and can go after a company’s assets until debts are satisfied. As an investor, you are paid last, meaning there might not be any money left to pay you and other investors
• You may not be able to sell the securities: highly illiquid securities may not find any secondary market on which to be sold. Additionally, securities might have other restrictions that prevent you from transferring them to another investor
• Debt: debt securities, like promissory notes and bonds, allow you to be paid before equity investors in the event of the company’s bankruptcy. A debt based offering is often term loans. These loans can pay any amount of interest or not pay an interest. Many different structures for debt securities exist. You should therefore strongly consider learning about a particular security’s risks before investing. Some risks associated with debt securities include:
• Repayments and payments are not guaranteed: while you, as a creditor, have payment priority if a company dissolves, a company may simply not have enough money to pay its debts
• No third party credit ratings: credit ratings are designed to help investors gauge the risks of a debt security. Securities on our Portal might not be rated by rating agencies such as Moody’s and Standard & Poor’s, leaving investors with little to no objective measure to judge the company’s creditworthiness
• Interest rate might not adequately compensate your risks: chances are that the interest you will earn does not adequately compensate the level of risk you are taking
• Lack of security: a promissory note may or may not be secured by property, such as an interest in real estate or equity

To calculate your net worth, add up all of your assets and subtract all liabilities. For purposes of crowdfunding, the value of your primary residence is not included in your net worth calculation.