> Good Morning -
>  
> ADP's underwriting risk team is asking several question as part of
> preparing a Workers' Compensation quote for us.  I worked with Tanner to
> complete as much as possible.  Can you review to confirm the details to
> the answers are correct as well as revise/add information where you feel
> appropriate?
>  
> Let me know if you have questions.  Included Brian for his awareness
> ahead of sending this information to ADP as one or both of you may
> determine revisions due to confidentiality or call out or question the
> purpose of certain information that is requested.
>  
> Thank you,
> Leslie
>  
>  
> 1.     This looks like a new entity formation. Is there any current
> operations? Are ees actively working right now?
> Yes, the Mavrix1 entity is new. The initial 17 employees have been
> identified but not yet been formally hired as employees.  We are
> currently awaiting funding before formally moving forward with
> operations.
> One separate organization (6 of 17 employees) is currently being
> acquired by Mavrix1.  The company is called Lithium Battery Company, and
> their operations are currently active.
> 2.     Is this business starting as a spin off from another entity?
If
> yes, what entity are they spinning away from and why?
> The Mavrix1 Management, LLC is not a spin off.
> 3.     There is one ee assigned to 3642 Battery manufacturing. Please
> clarify if this ee is physically separated from the rest of the
> operations?
> Of the six Lithium Battery Company employees, only two have hands on
> responsibilities with lithium batteries.  The CEO, Nathan Staron, who is
> assigned to 3642, and Kevin Eells, who is assigned to 9516.  If more
> appropriate, we can revise Kevin Eells from 9516 to 3642.
> Jarrett Brownfield, Jordan Wroblewski, Tanner Hance, and Nicholas Powell
> have Sales and Administrative roles within the company.
> 4.     DOO seems to indicate only mfg ops. Please clarify if our
> prospect will be doing any type of drone flying/piloting for others.
> Only manufacturing operations at this time.  Yes, eventually there will
> be testing and training on-site for device flying/piloting the UAV
> equipment manufactured by Mavrix1.
> 5.     Will our prospect be manufacturing drones/ UAVs as a whole
> device? Or just components that will be added to others drone/UAV
> devices?  If yes, what is the size and weight of these?
> The initial manufacturing will be battery manufacturing.  The business
> plan eventually includes manufacturing drones/UAV's as whole devices.
> 6.     It looks like there is at least one ee with
installation/service
> exposure. What is this ee doing exactly? Where are they doing it? Are
> they ever on a tarmac or on an aircraft? What about military bases?
> Yes, one current Lithium Battery Company employee has hands-on
> configuration/service of lithium batteries (Kevin Eells) that are
> currently manufactured in China and shipped to the U.S.  The
> manufacturing process is shifting to the U.S. and will begin operations
> at the Tampa site over the next 8-10 weeks.  No employees including this
> one has installation/service exposure on a tarmac, aircraft, or military
> base - only at the manufacturing site in Tampa.
> 7.     What is their relationship with Mavrix 1, LLC? How does this
> entity and our prospect work together.
> Lithium Battery Company is a manufacturer of lithium batteries that will
> be used for the UAV components and devices Mavrix1 will manufacture.
> ·       What % of ees interchange between these entities?
> Currently, Lithium Battery Company employees are partnering with Mavrix1
> on future projects and business.  Their daily operations of battery
> manufacturing will continue in the same manner after being acquired by
> Mavrix1.
> ·       Please clarify any shared locations, facilities, or
requipment.
> All employees will work from the same location in Tampa, FL.  Lithium
> Battery Company is currently leasing the facility at 3900 W. Coachman
> Avenue, Tampa, FL. 33611.
> ·       Please clarify the common ownership.
> *Please help.
> ·       Why is their loss history not available for this review?
> *Please help.
> 8.     The Risk doc filed indicates sub and 1099 use. Please clarify
the
> % of their operations addressed by outsourced labor.
> 15%
> ·       Does our prospect collect and track WC COIs for all
outsourced
> labor?
> Yes this would be a practice.  However, there has been no outsourced
> labor up to this point.
> 9.     What types of metals are used in the manufacturing process?
> Aluminum, Steel, Stainless Steel
> ·       What % of their work requires the buffing, grinding, and
> polishing of aluminum?
> There will be no buffing, polishing, or grinding at this time.
> ·       What controls are in place to address explosive dust
accumulation?
> There will be no explosive dust accumulation at this facility.
> 10. Are all production lines and storage chambers enclosed and interted
> with argon or helium gas to reduce the changes of metal dust explosion?
> There is no chance of a metal dust explosion at this site. 
> 11. Please clarify if we have the address correct in our systems as this
> looks like a residential area/space?
> Yes, the address is correct.  1767 Lakewood Ranch Boulevard #290,
> Lakewood Ranch, FL  34211.

 