Page 3 - 2021 Noteholder Letter.Financial Report

Achievements
Strategic sourcing: During December 2020, we negotiated long term pricing and supply contracts that
were 20%-35% less expensive than what GMF had been paying for its fire starters, strapping, and bags.

Big box retailers buying GMF: By late December, 2020, we began seeing a sea-change in the direction of
GMF’s sales. We are confident these significant positive changes in sales along with GMF’s reduction in
COGS will continue throughout 2021. These will result in 2021 being the year GMF achieves profitability.
Ace, Aubuchon, True Value, and Home Depot all executed sales contracts with GMF. Home Depot, in
particular, has become an aggressive client that has placed GMF on its emergency supply list. Thus, GMF
is a priority supplier of firewood across the company’s stores across America. Instead of delivering GMF
product to regional distribution centers, which is where 98%+ of product orders are delivered, GMF’s
2020 orders and all of its 2021 orders to date were delivered directly to Home Depot stores.

GMF shipped $206,640 of product to Home Depot stores in December 2020. GMF has firm weekly
supply contracts with Home Depot that require GMF to supply not fewer than $68,880 worth of product
weekly throughout the first quarter of 2021.

As you can see in the pictures attached, Home Depot is supporting our product with strategic,
prominent placement near entrance doors and other store areas. Management at many stores have
placed signs and/or papers on shelving above our displays featuring the key differentiating features of
our product to create awareness and induce consumer adoption.

GMF has executed binding supply contracts with other big box retailers such as Tractor Supply, Orscheln,
and Dollar General that commit GMF to similar supply requirements beginning in 2021.
Consumer like GMF logs:

As you can see from the consumer testimonials posted on Home Depot’s site, GMF is averaging 4.1
stars. We expect consumer positivity and adoption of GMF logs will grow throughout 2021.

Market Conditions

While many businesses have been impaired by the onset of Covid-19 with many sadly closing, GMF is
experiencing a perfect storm.

Consumer culture has changed due to Covid-19. People are staying home more often. Millions of
Americans have been investing in home leisure, entertainment, and lifestyle. GMF is a beneficiary of
these positive trends as the purchase of firewood has soared – especially across Midwest, Mideast,
Southeast, and Gulf South markets.

We cannot produce GMF logs fast enough to satisfy retail demand. These conditions augur well for
GMF’s future.

www.greenmountainfirewood.com
Green Mountain Firewood - 2021