Last updated September 2026

Payment Flow Summary

Draft for review by King & Jurgens LLC. Final wording will be confirmed by counsel before launch.

Original PDF

LABAU ——————

Payment Flow Summary Financial Reference — Investors, Legal Counsel & Financial Planning

LABAU Holdings, Inc. A Delaware Corporation

Reconciled to the locked Master Financial Model · Confidential · 2026

Summary Position F I ELD

DETAIL

Prepared by

Kristina Charles — Founder & CEO, LABAU Holdings, Inc.

Contact

kristina@labauholdings.com | labau.com

For

Investors | King & Jurgens LLC | Financial planning

Entity

LABAU Holdings, Inc. — Delaware C-Corporation

Launch target

Q1 2028 — New York City

Companion document

LABAU Platform Technical Specification — payment routing and membership billing parts

· LABAU’s revenue model is membership fees only, across three membership tiers. · LABAU takes zero commission on retail transactions. Retailers keep 100% of sales revenue and sales associate commissions are always protected. · LABAU passes 100% of driver gratuity to drivers and retains none of it. · LABAU never holds, processes, or receives retail or restaurant payment funds, and is never merchant of record for a retail sale.

1 — The Payment Perimeter LABAU accepts payment for two things: membership fees and driver gratuity. Everything else sits outside the perimeter. This is an architectural constraint enforced in the platform build, not a policy that can drift.

CA TEG OR Y

LABAU ROLE

REVENUE TO LABAU

B2C annual membership

Accepts and holds

Yes — revenue

Residential building membership

Accepts and holds

Yes — revenue

Hotel membership

Accepts and holds

Yes — revenue

Driver gratuity

Accepts and passes through in full

Zero — 100% to the driver

Purchases across all verticals

Outside the perimeter — routes to the merchant’s

Zero

own processor Fine dining — food and beverage

Outside the perimeter — paid to the restaurant

Zero

directly Delivery fees

None charged — included in membership

Zero

Returns and exchanges

None charged — included in membership

Zero

The practical consequence for diligence: LABAU’s revenue is not correlated to order volume. Platform usage drives retention and renewal, not revenue per transaction.

2 — B2C Annual Membership ELEM ENT

DETAIL

Who pays

Individual LABAU member — by private invitation only

Who receives

LABAU Holdings, Inc.

Amount

$25,000 per member per year — collected upfront

Billing

Auto-renews annually on the membership anniversary date

Processor

Stripe Billing

Payment methods

Credit card, Apple Pay and Google Pay required at launch. ACH supported.

Settlement to LABAU

Standard Stripe payout schedule — typically two business days

Failed renewal

Smart retry, automated member notification, and a grace period before suspension

Phase 2 additions

Additional payment methods post-launch, not at launch

3 — B2B Partner Membership The B2B tiers are the go-to-market engine. A residential building sponsors LABAU for every resident as a premium amenity, and a hotel provides it to every guest as an included service. Both are single annual invoices.

ELEMENT

RESIDENTIAL BUILDING

HOTEL

Who pays

The building

The hotel

Amount

$750,000 flat per year for buildings of 90 or

$500,000 flat per hotel per year

more residences; $250,000 below that threshold Resident / guest fee

Zero — residents pay nothing directly

Zero — guests pay nothing directly

Processor

Stripe Invoicing

Billing

Annual invoice

Access scope

All residents — delivery to the building address

All guests — delivery to the room only,

only

expires at checkout

Residents may convert to B2C on moving

Guests are invited to join at $25,000/year

Conversion path

at checkout

Because both B2B fees are flat and per-property rather than per-unit or per-guest, revenue is fully predictable at signature and does not vary with building occupancy or hotel load factor.

4 — Retail Purchase Retail payment sits entirely outside LABAU. The member authorises the purchase with the retailer’s own payment system, and the funds never touch a LABAU account, balance or ledger.

ELEM ENT

DETAIL

Who pays

LABAU member

Who receives

Retail partner — 100% of the sale

LABAU revenue

Zero — no commission, no markup, no fee, no application fee

LABAU fund custody

None at any point. LABAU is never merchant of record for a retail sale.

Processor

The retailer’s own payment infrastructure

Processing cost

Borne by the retailer, as it would be for an in-store sale

Sales associate

Fully protected. LABAU does not reduce, share or calculate commission, and no

commission

commission field exists anywhere in the platform.

Multi-retailer orders

A bag spanning several retailers is disaggregated by retailer, and each retailer is paid through its own system. One driver collects from all stores and delivers once.

In-store card tap

Where a member shops in person, they pay the store on the store’s own system and the LABAU card dispatches the delivery. The card carries no payment credential.

MONEY TRANSMISSION — POSITION Because LABAU never receives, holds or disburses

retail funds, and is not merchant of record for any retail sale, the money transmitter question does not arise on the retail flow. The only funds LABAU handles are its own membership revenue and driver gratuity, collected and paid out through Stripe Connect to W-2 contractors performing services for LABAU. King & Jurgens LLC should confirm this position in writing for the data room. This document states the architecture; it is not a legal opinion.

The multi-retailer routing described above is the single least-proven piece of the payment architecture. $150,000 is allocated in Round 2 to payment-routing compliance work, and the member-facing authorisation experience differs depending on whether a single authorisation for the whole bag proves available or one authorisation per retailer is required. Design and diligence should assume the multi-authorisation case.

5 — The Verticals LABAU operates LABAU Retail plus thirteen lifestyle verticals — fourteen categories in total. Payment treatment is identical across all of them: the member pays the merchant through the merchant’s own system, and LABAU earns nothing. The verticals are named here because diligence questions frequently assume LABAU must be taking a margin somewhere in the lifestyle categories. It is not.

LABAU Retail — 10:00 AM to 8:00 PM VER T I CAL

DESCRIPTION

Luxury fashion & apparel

Clothing, shoes and accessories from luxury retail

LABAU REVENUE

Zero

partners Fine jewelry & watches

Jewelry, timepieces and accessories from luxury

Zero

boutiques Beauty & wellness

Skincare, cosmetics, fragrance and grooming

Zero

LABAU Lifestyle — 8:00 AM to 11:00 PM VER T I CAL

DESCRIPTION

Gourmet grocery

Premium and specialty grocery — the primary vertical for

LABAU REVENUE

Zero

recipe and lifestyle planning Michelin dining

Fine dining delivery broadly — caviar houses, steakhouses

Zero — see below

and Michelin-starred rooms Wine & spirits

Fine wine, spirits and cellar building through licensed

Zero

merchants Wellness & recovery

Aesthetics and injectables providers and the product they

Zero

retail Floral & home

Luxury floral arrangements and botanical gifting

Zero

Home & table

Home décor, tableware and luxury home accessories

Zero

Stationery & gifting

Curated gifts, luxury stationery and personalised items

Zero

Luxury childrenswear

Premium children’s clothing and accessories

Zero

Luxury pet

Premium pet accessories, food and grooming

Zero

Travel & luggage

Luxury luggage, travel accessories and travel essentials

Zero

Fine desserts & champagne

Fine champagne, wine and luxury desserts

Zero

Where a lifestyle partner sells services as well as product, only product is transacted through LABAU. The service itself is arranged and paid with the provider directly and sits outside the platform entirely.

Fine Dining — Distinct Handling Fine dining is the one vertical whose payment path differs mechanically from the others, because the bill lives on a restaurant POS rather than a retail system.

ELEM ENT

DETAIL

Food and beverage

Stays on the restaurant POS. The member pays the restaurant directly.

payment LABAU role

Delivery initiation and management only

LABAU revenue

Zero

Delivery fee

None — covered by membership

Gratuity

Optional to the driver — Stripe Connect — 100% to the driver

In-venue use

A member dining at a partner may have a course boxed and delivered home, or order dessert to arrive with them. The restaurant bill is unaffected in either case.

6 — Gratuity & Driver Compensation Driver Gratuity ELEM ENT

DETAIL

Who pays

LABAU member — optional

Who receives

The assigned LABAU Concierge Driver — 100%

LABAU revenue

Zero

Options

10%, 15% or 20% of order value — the member’s choice

Processor

Stripe Connect

Settlement to driver

Weekly — every Friday — direct deposit

Tax treatment

Included in the annual Form W-2 issued to each driver

Accounting treatment

Pass-through. Gratuity is not LABAU revenue and should not appear in the revenue line of any model.

Driver Compensation Driver compensation is a cost line, not a payment flow through the platform, but it belongs in this document because it is the largest recurring operating cost tied to delivery. LABAU Concierge Drivers are salaried W-2 employees of LABAU ($70,000 a year), not per-delivery workers.

ELEM ENT

DETAIL

Classification

salaried W-2 employees of LABAU

Rate — New York City

$70,000 a year (salaried)

Rate — Hamptons

Same $70,000 salary · seasonal Hamptons runs Memorial Day through Labor Day

Hours tracking

Clock in and clock out in the driver app, GPS logged, weekly export to payroll

Payment

Weekly — every Friday — direct deposit

Annual tax document

Form W-2 issued to each driver

Launch headcount

3 founding drivers

Lifetime NYC cap

10 drivers — additional drivers added at defined member milestones

Cost behaviour

Hourly and capped, so delivery cost scales with staffed hours rather than with order volume

Modelling note: because drivers are salaried W-2 employees rather than paid per delivery, cost per delivery falls as order density rises. A driver batching three deliveries costs the same as a driver making one.

7 — What LABAU Earns LAB AU EAR NS F R OM

DETAIL

B2C annual membership

$25,000 per member per year

Residential building membership

$750,000 per building per year (90+ residences); $250,000 below that threshold

Hotel membership

$500,000 per hotel per year

LAB AU EAR NS NOTHING FROM

DETAIL

Retail purchases

Zero commission — retailers keep 100%

Fine dining

Zero — the member pays the restaurant directly

Driver gratuity

Zero — 100% passes to the driver

Delivery fees

None charged — included in membership

Returns and exchanges

None charged — included in membership

REVENUE MODEL Pure membership. Predictable, recurring and contracted annually. No

transaction dependency and no volume pressure — revenue grows only as membership grows. New York City only through minimum Year 5; the model contains no geographic expansion assumption.

Revenue Build — Model Structure Revenue in any year is the sum of three lines, each a unit count multiplied by a fixed annual fee. No other term enters the calculation.

LI NE

FORMULA

FEE P ER UNIT

B2C membership

Active B2C members × annual fee

$25,000

Residential

Contracted buildings × annual fee

$750,000

Hotel

Contracted hotels × annual fee

$500,000

Unit Ramp Y EAR

Year 1 — 2028

B2C MEMBERS

BUILDINGS

HOTELS

TOTAL REVENUE

100

$6,750,000

Y EAR

B2C MEMBERS

BUILDINGS

HOTELS

TOTAL REVENUE

Year 2 — 2029

250

$14,250,000

Year 3 — 2030

450

$23,750,000

Year 4 — 2031

700

$35,750,000

Year 5 — 2032

1,000

$50,000,000

Unit counts and revenue are taken from the locked LABAU financial model. Reduced-tier residential partnerships below 90 residences sit outside this ramp entirely and are additive.

Retail Volume — Platform Scale, Not Revenue Retail transaction volume is presented in investor materials as evidence of platform scale and merchant value. LABAU earns nothing from it and it must never be shown adjacent to the revenue lines without that stated plainly. At a $1,141.50 weighted average order value and ten orders per member per month, a Year 5 member base of 1,000 moves approximately $136,980,000 of retail value a year — none of which is LABAU revenue.

8 — Processing, Settlement & Portability Estimated Processing Costs LABAU processes only membership fees and gratuity, so processing cost is small relative to revenue and is driven almost entirely by payment method on the B2B invoices.

FLOW

METHOD

PUBLISHED RATE

NOTE

B2C membership

Card, Apple Pay, Google

2.9% + $0.30 per charge

Approximately $725 on a $25,000

Pay B2C membership

membership

ACH direct debit

0.8%, capped at $5.00

Materially cheaper — worth offering as the default for renewals

B2B invoices

ACH or wire

0.8%, capped at $5.00 on

On a $750,000 building invoice this is

ACH

the difference between roughly $5 and roughly $21,750

B2B invoices

Driver gratuity

Stripe Invoicing

Stripe Connect payouts

Per-invoice fee applies in

Confirm current tier pricing with

addition

Stripe at contract

Per-active-account and

Confirm with Stripe at contract

payout fees apply Retail purchases

Retailer’s own processor

Not applicable to LABAU

Borne by the retailer as on any instore sale

Directing B2B partners to pay by ACH rather than card is the single highest-leverage processing decision in the model. At $750,000 and $500,000 per invoice, the fee difference is five figures per partner per year. All rates above are Stripe’s published rates as of preparation and are indicative only; final pricing, including any negotiated volume terms, is confirmed at contract.

Settlement Timeline P AY M ENT T Y P E

LABAU RECEIVES

TIMING

B2C membership — card or wallet

Full $25,000

Standard Stripe payout — typically two business days

B2C membership — ACH

Full $25,000

Typically four to five business days from initiation

Residential building invoice

Full fee

On invoice payment — terms per partner agreement

P AY M ENT T Y P E

LABAU RECEIVES

TIMING

Hotel invoice

Full $500,000

On invoice payment — terms per partner agreement

Retail purchase

Nothing — the retailer is paid

Not applicable

directly Lifestyle vertical purchase

Nothing — the merchant is paid

Not applicable

directly Fine dining

Nothing — the restaurant is paid

Not applicable

directly Driver gratuity

Nothing retained — collected and

Weekly Friday settlement to the driver

passed through

Token Portability Member payment credentials must be tokenised so that LABAU can change processors without requiring members to re-enter payment information. This is a build requirement on the technical cofounder, confirmed before the payment architecture is finalised, and it applies to the membership credential specifically — the credential LABAU actually holds.