Annual Benefit Report

Phoenix Exchange Benefit Co.

Utah entity number 14625502-0169 · Filing 251030629000B, filed October 30, 2025 · Benefit Limited Liability Company

Principal office: 741 W. 4050 N., Lehi, Utah 84043 · Store: 53 S. Main Street, Unit 101, Pleasant Grove, Utah 84062

Registered agent: Ashley Rae Riddle · Members and governing persons: Ashley Rae Riddle, Zachary Riddle

Reporting period: October 30, 2025 to September 30, 2026 Report date: October 14, 2026 Prepared by: Zachary Riddle, Governing Person

Prepared under Utah Code Sections 48-4-401 and 48-4-402. This is the company's first annual benefit report. The company was organized October 30, 2025 and opened to the public in early April 2026, so the period covers about five months of setup and 123 days of trading.

1. General public benefit pursued, and the extent created

Utah Code 48-4-401(1)(a)(i)

Phoenix Exchange Benefit Co. is located in Pleasant Grove, Utah at 53 S. Main Street, unit 101. We are primarily a thrift store, however our primary goal is to build out our mutual aid abilities as our inventory and reputation grow.

Our goal in establishing Phoenix Exchange was to offer second hand goods back to the community at a reasonable cost, with essential items being offered back to the community at little to no cost. It is our belief that when it comes to items like weather appropriate clothing we have more than enough in our community to go around. We also make a conscious effort to divert textile material from entering our landfills unnecessarily by offering more items at no cost back to the community, or by finding ways to repurpose textiles that no longer can structurally be utilized for their initial purpose.

From the onset of our opening to the public we have offered children's clothing, clothing ranging in size from premature and newborn infant up to XXL in children's sizes, to all patrons at no cost. In addition to offering children's clothing at no cost we also do not charge for children's shoes, receiving blankets, bibs, socks, or baby hats. We also house a mutual aid area, where we provide the community with unrestricted and free access to basic hygiene items like toothbrushes, soap, shampoo, hairbrushes, and the like. Nobody is asked to fill out an application, prove income, or explain their situation to take any of it.

In the few months we have been open, we have been able to establish a strong initial customer base, and have begun building relationships with other local organizations. One example of this is that we have established a relationship with Regan Barnes, who heads the nonprofit organization Momivate, and have established ourselves as a resource for her Revolving Closets initiative. We also donated to the Third Annual Golf Fundraiser put on by UGLY's Closet, as well as to John Hancock Charter School for their School Carnival.

We have also been able to expand our mutual aid to be able to also offer basic adult clothing to the community at no cost, and provide a space for others who would also like to contribute to mutual aid offerings. We have been able to get additional essential items, including diapers and baby wipes, from giving members of our community back to members in our community who need them.

The extent of the benefit we created

How to read these figures. About 96 percent of our point-of-sale line items carry no item name, so our records count priced lines without identifying what was sold, and cannot separate clothing from household goods. Quantity is one on 99.1 percent of lines, so a line is almost always a single item, but a line can also be a bag sold for one price. Every figure derived from 3,443 is therefore a lower bound. Free distribution and donation trades never reach the register at all, so the free goods figure is our own estimate, and the true total across all free categories is higher. The weight figure applies 0.25 pounds per children's garment and 0.5 pounds per general clothing item to the counts above, giving roughly 250 plus 850 pounds. It is a derived estimate, not a measurement.

What we cannot report. We have no count of how many households we served through the mutual aid area, because access is unrestricted and we do not ask anyone to register or identify themselves. We also have no dollar valuation of the goods we donated to partner organizations. Rather than report figures we cannot support, we have left them out.

2. Specific public benefit purpose and the extent created

Utah Code 48-4-401(1)(a)(ii)

Our Certificate of Organization states:

"It is our goal to help give back to our community by providing a space where people can donate clothing, household items, toys, etc., and have those items be offered back into the community to those that could use them, at little to no cost."

This corresponds to two of the specific public benefits listed in Utah Code Section 48-4-103(8): providing low-income or underserved individuals or communities with beneficial products or services, under Subsection (8)(a), and protecting or restoring the environment, under Subsection (8)(c).

That purpose is not something we do alongside running the store. It is what running the store consists of. We provide the space, we take the donations, and we put the goods back out at little or no cost, as described above. Over the period our no cost categories grew from children's goods alone to include basic adult clothing and essential infant supplies, and our distribution reached past our own storefront through Momivate's Revolving Closets.

What we cannot yet say is how much. We do not track the quantity or value of what we give away, so the figures above are estimates rather than records. Fixing that is our main goal for next year.

3. Circumstances that hindered creation of public benefit

Utah Code 48-4-401(1)(a)(iii)

As we move forward, we hope to become more proficient at getting donated items cleaned, sorted, and onto the sales floor. One obstacle that we currently face is a lack of staff. Once we are more established within the community we would like to be able to hire on a small crew, as staff is currently limited to the owners. That shortage is the real cap on how much we can give away, because everything we hand out has to be sorted first.

Two other things limited us this year. We were only open to the public for 123 days of the reporting period, which held down both how much we could do and how much we could learn about doing it. And on the more technical side of things, we had not set any concrete parameters for measuring how our actions benefit and impact our community, which is why this report leans on estimates where it should have records.

4. Process and rationale for selecting the third-party standard

Utah Code 48-4-401(1)(a)(iv)

The company selected the B Lab Standards, version 2.1, and assessed itself using B Lab's free self-assessment.

The members evaluated available standards against Utah Code Section 48-4-103(10). B Lab's standards qualify: they are developed by an entity independent of the company and not financed by the businesses they measure; their criteria, governance, revision process, and funding are published; version 2.1 was developed through multistakeholder consultation; they assess effects on the workforce, customers, community, and environment, as Subsections 48-4-301(1)(a)(ii) through (v) require; and the number of sub-requirements scales with company size, which makes the standard usable by a micro retailer. The self-assessment is free and requires no certification.

Two notes. First, B Lab requires 12 months of operation before a company is eligible for B Corp Certification, and this company was organized October 30, 2025, so it is not yet eligible. B Lab makes the self-assessment available regardless. Certification is B Lab's trademark program, not a requirement of the Benefit Limited Liability Company Act, and Utah Code Subsection 48-4-401(2) expressly provides that the assessment need not be audited or certified.

Second, B Lab replaced its prior points-based model in April 2025 with a requirements-based model organized around seven Impact Topics. There are no longer point scores, so Section 5 reports performance by sub-requirement rather than as a number. Utah Code Subsection 48-4-103(10)(b)(vi)(B) anticipates this, requiring disclosure of relative weightings only "if any."

This is the company's first benefit report, so there is no prior application of a standard and no change to explain.

5. Assessment against the third-party standard

Utah Code 48-4-401(1)(b)

The company assessed itself against the seven Impact Topics of the B Lab Standards, version 2.1. Most of the standard is not met. The company is a two-person business in its first partial year and does not present this result as a strong one. Where a sub-requirement is not listed below, the company either was not assigned it or does not meet it, and makes no claim to it.

Met

Not met

Summary

Where the company performs well, it does so because of how the business is built rather than because of a program attached to it. Its inventory is entirely secondhand, so circularity is not an initiative. Its free distribution carries no means testing, so equitable access is not a policy requiring enforcement. Its members take no draws or distributions, so no owner claim competes with the purpose.

Where it performs poorly, the cause is consistently the absence of measurement and written process rather than the absence of good practice. The company gave away clothing for 123 days without recording how much, and operated a low-energy building without knowing its energy use. During this period it began closing that gap by adopting and publishing several governance documents, but adopting a document is not the same as having a year of data behind it.

The company's principal objective for the next period is measurement: to replace the estimates in this report with records, so the next assessment can be checked rather than taken on trust. It intends to apply this same standard consistently so that results are comparable year over year.

This assessment was not audited or certified by a third party, as permitted by Utah Code Section 48-4-401(2).

6. Connections to the standard-setting organization

Utah Code 48-4-401(1)(c)

There is no connection between B Lab, which established the B Lab Standards, and Phoenix Exchange Benefit Co. No financial or governance relationship exists between B Lab, its directors or officers, or any holder of 5 percent or more of its governance interests, and Phoenix Exchange Benefit Co., its members, managers, officers, or any holder of 5 percent or more of its outstanding interests. No such relationship exists that might materially affect the credibility of the company's use of this standard.

Goals for the next reporting period

• Record items distributed at no cost, textile weight diverted, and goods supplied to partner organizations.
• Improve the pipeline for getting donations cleaned, sorted, and onto the sales floor.
• Hire a small crew once the company can support payroll, with a living wage floor set beforehand.
• Use donated hangers as the default supply rather than buying new.
• Organize local events and collaborate with neighboring downtown businesses.
• Track the share of floor space and inventory allocated to no-cost distribution, to guard against purpose drift as revenue grows.