prohibition era laws, collectively known as the three tier model, forcing product from winery to distributor to retailer to consumer, with all parties taking margins along the way. Public House has worked tirelessly to find work-arounds to bring down costs for the end buyer, and will continue to do so as our model evolves. One of the loopholes in the three tier system is recently enacted legislation that allows wineries to sell product directly to consumers. With our current model, we’ve struck a partnership with Brotherhood Winery to do just that. By utilizing their licenses, we are able to sell product direct to consumer via our online portal at publichousewine.com, direct to retailers, or to distributors. The use of another facility’s licenses however comes at a cost. C U R R E N T M O D E L F U T U R E M O D E L Moving forward, as a means to reduce product costs as we scale, we will acquire our own wholesale license in order to sell to distributors and retailers. The online model will evolve by finding trusted online retail partners who will be able to fulfill the direct to consumer aspect of our business. ONLINE RETAIL DISTRIBUTOR MULTI-CHANNEL DISTRIBUTION allows for swift and comprehensive market penetration. WHOLESALE LICENSE