What is an Accredited Investor?

The SEC defines accredited investors as someone that can attest to:

• I have an individual net worth* or joint net worth with my spouse, excluding the value of my/our primary residence, in excess of $1,000,000.

• I have had an individual income* in excess of $200,000 in each of last two calendar years and I reasonably expect an income reaching that same level for the current calendar year.

• My spouse and I have had a joint income* in excess of $300,000 in each of the last two calendar years and I reasonably expect a joint income in excess of $300,000 for the current calendar year.

* For purposes of this definition, the term “net worth” means the excess of total assets over total liabilities. In determining income, an investor should add to his or her adjusted gross income any amounts attributable to tax- exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depletion, contributions to IRA or Keogh retirement plans, alimony payments and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income.