Cornerstone Kids, Inc. (the Cornerstone Kids”) projects opening 200+ franchised/licensed nationwide locations over the next 5 – 10 years. Beginning with this Reg CF Offering, Company projects it will open its first location followed immediately by a Charleston, South Carolina franchised/licensed facility (the “Business”).
At Cornerstone Kids, Healthy Kids & Families are our Main Concern. Cornerstone Kids' Board of Directors is sparing no expense building a state-of-the-art, clean air, green, clean water facility capable of withstanding sustained winds up to 200 miles per hour. Our Cornerstone Kids (our “Kids”) can spend up to 12 hours daily in a safe, nurturing, one-of-a-kind environment. Each of the proposed 200+ Cornerstone Kids facilities will offer a pathogen-free airtight environment that removes airborne contaminants as small and viscous as the flu virus. Our Cornerstone Kids will spend their days living and learning in a healthy environment which should lead to healthier kids, and ultimately, fewer missed workdays for parents.
Compared with other daycare centers, Cornerstone Kids will set a new standard for excellence. Right now, Childcare facilities are similar in every U.S. city. Historically, parents make their childcare decisions based on price and location. Childcare competitors will find it difficult to compete with the Cornerstone Kids’ facility where the health and well-being of each of our Kids and their families are now a major benefit inviting comparison. Families will quickly learn about the Cornerstone Kids’ facility and its many benefits from media reports and word of mouth from parents within their community. This Network Effect will make it difficult for ‘Old Standard’ childcare facilities to compare. Cornerstone Kids projects parental decision-making parameters all over the country will morph from price and location to the following:
“if everything else is equal and our child is safer, drinks clean water, breathes fresh contaminant-free air in a green energy building with green certified safe furnishings offering the after-school activities used currently by our family while offering a fresh hot dinner for four at the end of each workday why wouldn’t we want our child to enroll in Cornerstone Kids”.
100 of the 163 open Cornerstone Kids’ spots are filled with the families of the 100 children each paying a $500 spot deposit. Cornerstone Kids anticipates all 163 spots will be filled with a paid waiting list in place prior to the Cornerstone Kids Aiken Grand Opening.
At Cornerstone Kids, parents will have a free after school elective in the use of the Khan Academy as a curriculum tool. Khan Academy online finds each student’s true starting point. Kids are often too embarrassed to ask for help slipping further behind each week. Cornerstone Kids will use the Khan Academy to fulfill the need for individualized learning.
Microsoft founder and world’s richest man, Bill Gates, discovered Khan Academy while searching for educational support for his children. The Gates’ Foundation is a major donor to the Khan Academy as is AT&T, Google, The Disney Company, and 100’s more. Khan Academy offers courses in math, science, music, computer programming, and computer science as well as other core subjects. Our computer lab will always be open and available for a few minutes or more as each child’s parent decides the proper time allocation for their child.
For pre-k, Khan Academy offers Duck, Duck, Moose – their early learning curriculum. For Infants and Toddlers, we will use the Creative Curriculum program from Teaching Strategies. Cornerstone Kids will work with parents to set their kid's course structure. Remembering the earlier we start the greater the advantage.
Cornerstone Kids parents hustle every day, leveraging their after-work hours, juggling their commute and after-school activities with their kids. Cornerstone Kids will offer a hot, healthy dinner for our families at the end of each workday. In addition to the Khan Academy, Cornerstone Kids will provide ballet, gymnastics, music lessons, martial arts, theater, and more. These after-school programs will be incorporated into the time before our parents pick up their kids - allowing parents the ability to drive safely without worrying about being late or not having time for their kids to change clothes before after-school ballet class.
Some kids spend up to 12 hours a day in childcare facilities, but do these facilities offer a healthy environment for those children? The Aiken Cornerstone Kids' air quality standards will incorporate The Department of Energy’s ‘ZERO Energy’ policies as well as the EPA’s airPLUS and Smart Ventilation programs for new construction. Each Cornerstone Kids will start with an innovative building design that is net-zero energy, airtight, and constantly ventilated with a state-of-the-art filtration system for continuous fresh and clean air exchange. This will keep outdoor pollutants outside our doors and remove airborne contaminants as small as viscous as the flu virus.
Cornerstone Kids plans to outsource the design and construction of its Aiken South Carolina location and its projected 200+ additional nationwide franchise locations to award winning Insulsteel™ headquartered in Charleston, South Carolina. Insulsteel provides architectural, engineering and manufacturing of commercial buildings.
Insulsteel Building Enclosures offers the EcoShell™, which is an innovative building enclosure system that withstands hurricane winds up to 200 MPH, provides thermal insulation values equivalent to R-40 – R-58 (4-times greater than traditional wood framing), and can meet commercial requirements for a two-hour rated firewall. The EPA has awarded Insulsteel buildings with its incomparable Indoor “airPLUS” air quality certification. No other U.S. building material system is known to meet Insulsteel’s high-quality, low-cost performance standards.
Company is under contract to purchase land at 102 Dominion Drive Aiken, South Carolina for Two Hundred Fifty Thousand Dollars ($250,000) (the “Acquisition Cost”). After the acquisition, the Company will need to construct certain improvements on the Property to conduct the Business, as intended. The total costs of which are estimated to be approximately $250 per square foot or Two Million Five Hundred Thousand Dollars ($2,500,000) (the “Construction Costs”). To fund most the Construction Costs, the Company intends to sell certain additional Preferred Shares (as defined below) in a subsequent offering (the “Construction Cost Offering”) to be conducted after the subject Offering is closed.
Insulsteel is an energy and environmental building innovation company that provides client architectural and interior design, structural engineering, off-site manufacturing and construction. Insulsteel creates healthy, safe, and energy efficient buildings for residential and commercial market sectors. Insulsteel provides clientele with buildings that are cost effective to build; environmentally sound and structurally superior to traditional buildings in energy efficiency, indoor air quality (IAQ), and total cost of ownership (TCO).
You can visit Insulsteel at: http://www.insulsteel.com and watch the attached Insulsteel Explainer Video.
Insulsteel’s consulting environmental scientist, Dr. Jules Elkins’ Table of Contents from her Cornerstone Kids Air Quality Research Paper (for full access to Dr. Elkins Cornerstone Kids Research Paper go to http://www.insulsteel.com/DrElkins :
Jules Elkins, Ph.D.
Cornerstone Kids Protects Developing Brains and Bodies
Cornerstone Kids Protects Kids’ Brains
Cornerstone Kids Means a Healthier Kid!
Cornerstone Kids are Less Likely to Experience Asthma Symptoms
At Cornerstone Kids, added asthma triggers simply do not exist. Our facilities are designed to:
Cornerstone Kids Drink Pure, Clean Water
Environmental Chemicals and Child Development
How can we continuously demonstrate our superior Cornerstone Kids environment?
Each holder of the Shares will receive Company’s 3 Promises to Pay.
1st Promise to Pay (Return of investment plus 10% annually)
A cumulative, but non-compounded, preferred return, on his/her/its aggregate investment amount (or such unreturned portion thereof) at a fixed rate, per annum, equal to ten percent (10%) until such time as Company pays each of the holders of the Shares their principle investment back;
2nd Promise to Pay (Profit sharing on franchise revenue)
Reg CF investors will be paid twenty five percent (25%) on all franchise/license payment funds, if any, received by Company (assuming $1,000,000 is raised through Reg CF, if less it is proportional). 2nd Promise to Pay will be paid annually to the Reg CF investors as a group with each individual investor receiving a proportional amount equal to the individual investor’s Reg CF investment.
3rd Promise to Pay (Equity ownership in the Company)
In the event Company is sold Reg CF investors as a group will be paid ten percent (10%) of Company’s net sales proceeds (assuming $1,000,000 is raised through Reg CF, if less it is proportional)
This first Reg CF crowdfunding campaign is the start of our project. To be successful we intend to use these funds to purchase the land and start constructing the first prototype center and raise another round of financing through a Reg A+ Offering for up to $4M. Our goal is to have the first facility operational by the end of 2017.
Lynne Fleming, a long time Aiken resident and mother of two, has been providing childcare services for more than 25 years. She has built a thriving business serving more than 125 families, including more than 300 children. That accomplishment, coupled with her involvement in a wide array of community activities and her extensive experience with special needs and learning disabled children, has led to an ever increasing demand for her service.
With a desire to reach a larger community, Lynne joined with other members of her family to create Cornerstone Kids and make her vision of whole-family care a reality. In her role as CEO, Lynne is present in the facility on a daily basis, ensuring that all aspects of Cornerstone Kids work together to provide a safe and nurturing environment where children develop physically, intellectually, and emotionally, and where busy families have the resources necessary to thrive.
Jennifer, owner of her own Michigan based, childcare business, relocated to Aiken in 2003 to join the family business. A mother of two and a second-generation childcare provider with more than twenty years of experience, Jennifer has also served in public school supervision and community outreach. Founder of a successful photography business, she has particular interest in visual and performing arts and incorporates these into a wide range of Cornerstone Kid developmental activities. In her role as Child Development Coordinator, Jennifer strives to integrate cognitive, creative, and physical activities into programs that promote both essential skill development and creativity.
Mia, an established professional in the information technology industry and mother of two, knows first-hand the challenge of balancing career and family life. She eagerly joined with the women of her family to create Cornerstone Kids, contributing both her technical abilities and her deep understanding of working family needs. With twenty-five years of technical development and program management experience, Mia has the strategic, planning, and execution skills necessary to ensure that Cornerstone Kids is operated in a safe, efficient and environmentally sustainable manner; making it a responsible contributor to the local economy.
In her role as Technology Director, Mia is primarily responsible for management of Cornerstone Kids technical and facility resources. She also applies her extensive knowledge of computer software and systems to identify age appropriate development activities for incorporation in the Cornerstone Kids academic curriculum, ensuring that all students develop the technical skills essential to their future success.
Dani has been a part of her family’s childcare business since its earliest days, learning from Lynne’s model to nurture, inspire and motivate others. She completed a Bachelor of Science in Nursing in 2005 at the University of South Carolina in Aiken and began her career as a registered nurse at Aiken Regional Hospital. She went on to serve at hospitals across the country before returning, in 2012, to Aiken Regional where she advanced to clinical supervision.
Dani fully understands the importance of high quality childcare and gained a deep appreciation for the unique and valuable service that her family’s business has been providing all these years. Completing an Associate of Science degree in Early Childhood Development, she joined Cornerstone Kids as the Director; bringing not only her extensive nursing and childcare experience but valuable organizational, and supervisory expertise as well. In her role as Director, Dani is responsible for policy development and implementation, resource management, and teacher supervision.
Steve Bostic is the C.E.O. of the Insulsteel companies, including Insulsteel of South Carolina, LLC. Insulsteel has evolved from the consolidation of prior architectural design and build business entities including; White Oaks Capital, LLC, founded in 2004, and the Island Design and Architectural Center founded in 2005, and Amerisips, LLC, founded in 2009 and Insulsteel of S.C in 2015.
In 1995, Steve founded Electra Holdings, LLC, a company that owned and operated the American InterContinental University, a proprietary institution of higher education, with seven campuses accredited by the Southern Association of Colleges and Schools. Steve merged his holdings in American InterContinental University (annual revenues of $100 million) into Career Education Corporation, Inc., a leading publicly traded university system in 2001.
Prior to Electra Holdings, Steve was the principal owner and chairman of the American Photo Group LLC, an Atlanta-based company that he founded in 1981. APG operated a national network of 20 photo processing facilities serving major retailers in the mass consumer markets. In 1987, APG was named the "number one" company on the Inc. 500 list of fastest growing, privately held companies in the United States for the prior five-year period. APG's sales grew from $8 million in 1981 to over $100 million in 1987. Kodak acquired APG in the fall of 1987.
Steve’s prior senior management experience in publicly traded companies includes president of Berkley Film Processing in New York, a NYSE listed company and Vice President and General Manager of a division of the North American subsidiary of PepsiCo, Inc., based in Ft. Wayne, Indiana. In addition, he has an extensive background in sales, marketing management and consumer product development having held positions ranging from commissioned salesman to Vice President of Marketing and Sales at major public companies, including American Hospital Supply, International Products Corporation and PepsiCo, Inc. Previously he was a project manager in new hospital design and construction for over 40 U.S. new healthcare facilities.
Steve is a graduate of Indiana University with a B.S. Degree in Marketing and Economics.
Tina Bostic is the C.O.O. of the Insulsteel Companies and is the Licensed Residential Builder of Insulsteel Constructors, LLC. Insulsteel has evolved from the integration of the Island Design and Architectural Center and Amerisips, LLC, located in St. Simons Island, Georgia.
Before starting IDAC with her husband Steve, Tina’s previous career was in higher education at American InterContinental University (AIU), a proprietary university specializing in undergraduate and graduate degrees in business, applied art, interior design and fashion programs. During her 12 years at the University, she increased her responsibilities from a faculty member to Dean of Business Administration and Fashion Marketing and served as the president of the Buckhead Campus. In 1999, she was promoted to senior vice president for campus operations overseeing the University’s seven campus presidents.
In addition to her other responsibilities at AIU, Tina also served as the Director of Institutional Effectiveness assuring adherence to accreditation agencies and federal government regulatory requirements. Tina also served regularly on accreditation committee review teams for the Southern Association of Colleges and Schools (SACS) to review accreditation for other colleges and universities. During her career at AIU annual revenues grew from $7 million to $100 million.
Tina completed doctoral courses at Georgia State University in Higher Education Administration, Ph.D., A.B.D.. She also holds an M.B.A. and a B.S. Degree (Cum Laude) in Business Administration/Psychology from Brenau University.
|Detailed Use of Proceeds:||The Company is building a prototype, eco-friendly "healthy" childcare center using the latest technology to create a unique healthy learning environment. The minimum raised will help to start the project. With over subscription, the land will be acquired, (currently held by a Letter of Intent) and the project will be underway. Simultaneously with this offering will be a RegD offering for $4M to accredited investors. Combined the company will build the first facility and begin to license/franchise the model. The Company is in discussion with a builder for licensing 200 facilities. Proceeds accelerate planning, land acquisition to begin construction.|
|Description of Security:||Investors receive 1) Preferred non-voting stock 2) 10% annual interst on investment until company returns original principal 3) Profit sharing of Franchise license revenue. see details in Form C.|
|Name of Securities being sold:||Cornerstone Kids Preferred Stock with Profit Sharing|
|Price Per Share/Unit:||$100.00|
|Total Fully Diluted Existing Shares/Units:|
|Common (or LLC units)||90,000|
|Total Outstanding Shares||90,000|
|New Shares being Offered:|
|New shares being offered (Minimum Goal)||250|
|New share % (on Minimum Goal)||0.3%|
|New shares being offered (Maximum Goal)||1,000|
|New share % (on Maximum Goal)||1.1.0%|
|Maximum Amount per Investor:||$|
|Website location for Annual Report:||www.aikencornerstonekids.com/annualreport|
|Transfer Agent:||By company attorney|
As an early stage company our stock is only suitable for persons or entities that can afford the risk of losing their entire investment. Financial conditions and operating results could be adversely affected by any of a number of unknown and unforeseeable factors. Additional risks and uncertainties not currently known, or that are currently thought of as immaterial, may also impair business operations. An additional risk relates to minority ownership by Investors. Having a minority interest limits an Investors ability to make any decisions and all investors should consider this risk and assess their confidence in the management team to make prudent decisions in the interest of all stakeholders.
The Securities may not be transferred by any investor during the one-year period beginning when the Securities are issued, unless the Securities are transferred: (i) to the Issuer; (ii) to an “accredited investor” as defined in Rule 501(a) of Regulation D; (iii) as part of an offering registered with the SEC; or (iv) to a member of the family of the investor or the equivalent, to a trust controlled by the investor, to a trust created for the benefit of a member of the family of the investor or the equivalent, or in connection with the death or divorce of the investor or other similar circumstance. In addition, there is no ready market for the sale of the Securities and it may be difficult or impossible for an investor to sell or otherwise dispose of the Securities. Furthermore, the investors are not permitted to assign the Securities without the Issuer’s prior written consent.
|Issuer Legal Name:||Aiken Cornerstone Kids, Inc||Company type:||C-Corp|
|State of Incorporation:||South Carolina||Year Founded:||2016|
|Contact Name:||Lynne Fleming||Title:||President|
|Address:||548 Pintail Drive|
|Proof of Identification:|
|Representative of your Financial Reports:|
|Corporation or LLC Certificate:|
|Tax Form IRS W9:|
|Copies of 2 years of tax returns:|