Summary

New Harvest Inc. currently holds shares of common stock in Perfect Day Foods and Clara Foods, as a result of our role in founding both companies.

Background

In April 2014, New Harvest’s Executive Director Isha Datar co-founded a company alongside Ryan Pandya and Perumal Gandhi focused on making milk proteins in cell culture. Isha was listed as a co-founder in the initial application for seed funding to get the company off the ground. The company now known as Perfect Day Foods (formerly known as Muufri) received its first major investment in August 2014, at which time Isha decided to remove herself from the company, and give the shares to New Harvest instead. New Harvest has neither purchased more nor sold any shares of Perfect Day Foods since.

In November 2015, New Harvest’s Executive Director Isha Datar co-founded a company alongside Arturo Elizondo and David Anchel focused on making egg proteins in cell culture. Isha was listed as a co-founder in the initial application for seed funding to get the company off the ground. New Harvest, not Isha Datar, held stock in this company from day one.

Protocol

Every year, the fair market value of New Harvest’s stock is reported in our Audited Financials, based on a 409a valuation. A 409a is an independent appraisal of the fair market value of a private company’s common stock, the stock reserved for founders and employees (1)

New Harvest does not offer preferential treatment of Perfect Day Foods or Clara Foods on account of its stock holdings.

New Harvest does not have any influence on the operations of Perfect Day Foods or Clara Foods, such as a board seat.

Any actions in terms of management of the stock, including sale, is under the control of the Board of Directors of New Harvest.

[1] https://carta.com/blog/what-is-a-409a-valuation/