For a $2,500,000 raise under Regulation Crowdfunding (Reg CF), the SEC requires a high level of transparency. Because this amount exceeds the current threshold ($1.235M for first-time issuers in 2026), Atlas Water Corp will be required to provide Audited Financial Statements.
Below is the structured “Use of Proceeds” table and the critical compliance notes for a raise of this size.
Atlas Water Corp: Use of Proceeds ($2,500,000)
In a Form C, you must disclose how you will spend the money if you hit your Target (the minimum you’ll accept) vs. your Maximum (the full $2.5M).
| Category | % of Proceeds | Amount (USD) | Purpose / Description |
|---|---|---|---|
| Intermediary Fees | 7% | $175,000 | Cash commission to the funding portal (e.g., Wefunder/Republic). |
| R&D & Engineering | 35% | $875,000 | Finalizing the “Atlas V2” filtration hardware and patent filings. |
| Manufacturing Scale-up | 25% | $625,000 | Inventory, supply chain deposits, and tooling for mass production. |
| Marketing & Sales | 15% | $375,000 | Customer acquisition, trade shows, and hiring 2 regional sales leads. |
| General Working Capital | 13% | $325,000 | Salaries for non-engineering staff, office rent, and legal/compliance. |
| Audit & Legal | 5% | $125,000 | Ongoing SEC reporting, CPA audit fees, and corporate governance. |
| TOTAL | 100% | $2,500,000 |
⚠️ Critical Compliance Checklist for a $2.5M Raise
1. The Audit Requirement
Since you are raising over $1,235,000, the SEC requires your financial statements for the last two fiscal years to be audited by an independent CPA firm registered with the PCAOB.
- Note: If this is your first-ever Reg CF raise, you might be able to use “Reviewed” statements if you stay under a certain limit, but for a $2.5M target, an audit is the standard expectation for institutional-grade credibility.
2. The “Rolling 12-Month” Cap
As of March 2026, the limit for Reg CF is $5,000,000 in any rolling 12-month period. Since you are asking for $2.5M, you are well within the limit, but remember that any other raises (like a side Reg D offering) may need to be “integrated” or tracked separately.
3. Progress Updates (Form C-U)
You are required to file a Form C-U with the SEC within 5 business days of reaching 50% and 100% of your target goal.
4. Annual Reporting (Form AR)
Once you successfully close this $2.5M round, Atlas Water Corp is legally obligated to file an Annual Report (Form C-AR) every year no later than 120 days after your fiscal year-end. This continues until:
- You become a reporting company (IPO).
- You have fewer than 300 shareholders.
- You repurchase all the shares.
Next Professional Step
Would you like me to generate a “Risk Factors” section specifically tailored to a water technology company like Atlas Water Corp? (This is a required part of the Form C to protect you from future investor lawsuits).