506(C) PRIVATE PLACEMENT | INVESTMENT SUMMARY T HE L OV E S A C C OM P A N Y O V E R V I E W The Lovesac Company (“Lovesac” or the “Company”) is a technology driven omnichannel direct-to-consumer retailer disrupting the furniture industry with its Sactionals® Modular Couches. The Company also sells its category-leading Lovesac Durafoam Bean Bags. - Patented two-piece platform (“seats & sides”) with patented connecting system is built to last; consumable parts are replaceable and extensions & accessories are available - Platform concept drives repeat purchases (e.g. adding on, upgrading, accessorizing and changing fabrics) amongst a passionate customer base of 200,000+ customers. L O V E S A C ’ S 506( C ) P R I V A T E P L A C E M E N T : U P T O $25 M I L L I ON The Lovesac Company is conducting a 506(c) Private Placement, offering a minimum of $3 million and up to a maximum of $25 million of units consisting of (i) 1,000 Two Year, 8% Series A Convertible Preferred Shares & Warrants. The price per unit is $10,000 with 50% Warrant Coverage. Shares to be converted at a 30% discount to Qualified Financing of at least $15 million. The Company intends on completing a Regulation A+ offering in 2017 and this is a pre-IPO round of financing. The A-1 Units will be issuable solely to the investor who invests $10mm in the Offering and except for the right to elect a member to the Company’s Board of Directors, the Series A and A-1 will have same rights on a pari passu basis with each other. D IS R U P T I N G F U R N I T U R E W I T H T E C HN O L OG Y Lovesac’s highly scalable, direct-to-consumer model driven by high-growth internet sales and 61 product demo showrooms located throughout the U.S. - Customers buy patented furniture that is high design, functional and flexible; key product is technology-driven, patented sectional sofas with a compelling value proposition (furniture will always fit and can look like new forever). - Unprecedented customer intimacy with largest furniture buying cohorts: Millennials and GenX. • -

84 product net promoter score, and 90 CSAT for purchasers.

• Facebook and Instagram target-market growth >100% in FY16. Advantaged supply chain, superior to couch retailers: Product advantages allows national carriers (FedEx/UPS) to deliver all items (including couches) for orders across all purchase channels; standardized SKU’s max out container shipments from China and unlocks a broad assortment with minimal SKU count and inventory.

P R OD U C T D E M O S H O W R OO M S

COMPANY INFO HQ: Stamford, CT Founded: 1998 Inc: DE Corp FYE: January 29th FY17 Est. Sales: $75.8mm FY17 Est. EBITDA: $2.1mm

PRODUCTS Sactionals® Modular Couches Lovesac Durafoam Bean Bags Accessories

INDUSTRY Direct-to-Consumer Tech-Enabled Renewable-Expandable Platform

PREVIOUS CAPITAL RAISES $56mm Raised to Date

PROPOSED RAISE 506(c) Private Placement Up to $25mm Two-Year Series A Convertible Preferred Shares & Warrants 8% preferred dividend Conversion @ 30% discount to Qualified Financing (>$15mm) 50% Warrant Coverage

CONTACT TriPoint Global Equities [email protected]

www.banq.co/listings/lovesac

Lovesac collaborated with Prophet NYC last year to design and launch six new concept product demo showrooms. - Created 34% higher same-store-traffic count, 27% higher same-store-sales and 21% higher conversion rates compared to existing showrooms for YTD 01/01/2017. - The Company plans to roll out the new showroom design to the rest of its showrooms. - Lovesac has 61 product demo showrooms located in high-end malls throughout the country, producing the 7th highest average sales per sq. foot in all of specialty retail industry per Furniture Today. - Lovesac’s strong social media following (over 300,000 Facebook & 63,000 Instagram followers) raises brand awareness amongst target market.

506(C) PRIVATE PLACEMENT | INVESTMENT SUMMARY O P E N - E N D E D G R O W T H S T OR Y Vast opportunity to acquire new customers through online community activation and leveraging brand and direct marketing to drive awareness and acquisition (only 0.2% unaided awareness to-date). - Poised to leverage recently proven ROI-positive direct-marketing & digitalmarketing tactics (FY16 Media spend: Only 1.2% of total revenue) - Broad white space to add demo showrooms in urban, mall and lifestyle centers. - Category expansion; currently competing in ~20% of furniture industry. K E Y M E T R I C S & U N I T L E V E L E C ON OM IC S -

Launched most successful Costco roadshow in history, expected to generate $7MM in sales through Q1 of next year For the first 5 periods of this year, social traffic to website it up almost 700% and Facebook likes are up almost 600% CLV / CAC ratio of 11.9x, CLV = $2,327, CAC = $195 (incl. rent premium spend on existing showrooms). 3.5mm annual website visits (2.3mm unique visits), ~20% of sales online. Over 200,000 customers, of which 95,000 have made a purchase in the last two years.

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• Over 20% of customers reorder within 2 years with repeat customers representing 41% of total orders. Strong showroom-level operating performance metrics. •

AUV of $1.3mm, and 16% to 18% same store sales growth for past 4 years.

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Limited SKUs enable small 800 to 1,500 ft2 showrooms, generating industry-leading $1,182 sales/ ft2.

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Average showroom build-out payback period of 18-24 months, and cash-on-cash return by year 3 of 80%.

I N V E S T M E N T C ON S I D E R A T I ON S Lovesac is a technology driven omni-channel direct-to-consumer retailer disrupting the furniture industry. - Uniquely suited for eCommerce distribution; FedEx efficient deliverable sectional sofas - Highest sales-per-square-foot in furniture retail industry - Loyal customer base of 200,000+ - Target customer = affluent millennial; the future of the furniture category - Strong social media presence with over 300,000 Facebook & 63,000 Instagram followers; best-in class engagement - New showroom design, prototyped in 2016, amplifies profitability and scalability - Backed by top-tier PE firm, Mistral Equity Partners - Proceeds to drive awareness via marketing spend, open new locations, upgrade existing fleet For additional information, please visit www.BANQ.co/Listings/Lovesac The Lovesac Company is currently undertaking a private placement offering pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506 of Regulation D promulgated thereunder. Investors should consider the investment objectives, risks, and investment time horizon The Lovesac Company carefully before investing. The Offering Documents relating to each offering of equity interests by The Lovesac Company will contain this and other information about The Lovesac Company and should be read carefully before investing. Copies of the Offering Documents relating to each offering of equity interests by The Lovesac Company may be obtained, when available, by accessing BANQ®’s website at www.banq.co. Securities of The Lovesac Company are being offered and sold in reliance on the exemption from registration set forth in Section 506(c) under the Securities Act of 1933, as amended, or the "Securities Act". In accordance therewith, you should be aware that (i) the securities may be sold only to “accredited investors,” which for natural persons are investors who meet certain minimum annual income or net worth thresholds; (ii) the securities will only be offered in reliance on an exemption from the registration requirements of the Securities Act and will not be required to comply with specific disclosure requirements that apply to registration under the Securities Act; (iii) the Securities and Exchange Commission will not pass upon the merits of or give its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials; (iv) the securities will be subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; investing in securities involves risk, and investors should be able to bear the loss of their investment. The summary may include “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. Although we believe our expectations expressed in such forward looking statements are reasonable, we cannot assure you that they will be realized. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the anticipated results. This summary is not an offer to sell, or the solicitation of an offer to purchase, any securities of The Lovesac Company in any jurisdiction where such offer or sale would be prohibited. TESTING THE WATERS: The Lovesac Company is "Testing the Waters" under Regulation A under the Securities Act of 1933. This process allows companies to determine whether there may be interest in an eventual offering of its securities. The Lovesac Company are not under any obligation to make an offering under Regulation A. No money or other consideration is being solicited in connection with the information provided, and if sent in response, will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until an offering statement on Form 1-A has been filed and until the offering statement is qualified pursuant to Regulation A of the Securities Act of 1933, as amended, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. Any perso n's indication of interest involves no obligation or commitment of any kind. The information in that offering statement will be more complete than the information The Lovesac Company is providing now, and could differ materially. You must read the documents filed. No offer to sell the securities or solicitation of an offer to buy the securities is being made in any state where such offer or sale is not permitted under the "blue sky" or securities laws thereof. No offering is being made to individual investors in any state unless and until the offering has been registered in that state or an exemption from registration exists therein.