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SmartKickz™ Pitch Deck

SmartKickz, Inc
23 Sep 2014
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SmartKickz™ Pitch Deck

  1. www.smartkickz.com founders@smartkickz.com The Worlds 1st Technologically Enhanced Learning Shoe!
  2. Problem A Parents have less time to teach and watch their children. Technology is able to pick up some of the slack. www.SmartKickz.comfounders@smartkickz.com
  3. Problem B Developmental disabilities are common in approximately 1 out of every 6 children. Source: Center for Disease control and Prevention (CDC) www.SmartKickz.comfounders@smartkickz.com
  4. Problem C founders@smartkickz.com Approximately 800,000 children younger than 18 are reported missing each year! Source: The National Center for Missing & Exploited Children® www.SmartKickz.com
  5. Solution founders@smartkickz.com SmartKickzTM is a technology enhanced learning shoe that teaches children how to put their shoe on the correct foot using visual and voice interaction. An optional removable GPS tracker device will help parents locate their children if they are lost. www.SmartKickz.com
  6. Benefits founders@smartkickz.com SmartKickzTM has the potential to cut the learning curve from 1-3 years to 1-3 months. SmartKickzTM also has the potential to cut the number of missing children down by 50%! www.SmartKickz.com
  7. Unique Product founders@smartkickz.com Different Design Options Voice Interaction GPS tracker Device Identification Labeling on Inside of Shoe www.SmartKickz.com
  8. Product founders@smartkickz.com www.SmartKickz.com
  9. Business Model founders@smartkickz.com Direct to Consumer Sales Shoes Removable GPS tracker Mobile In App Ad Revenues Monthly Recurring Revenues GPS tracker Subscriptions www.SmartKickz.com
  10. Licensing Opportunities founders@smartkickz.com www.SmartKickz.com
  11. Market Validation founders@smartkickz.com The 2-5 year old age group is the only athletic footwear market segment that is steadily growing. No major company is marketing directly to this group. www.SmartKickz.com
  12. Market Size founders@smartkickz.com Global Footwear Market $185 Billion Global Athletic Footwear Market $75 Billion U.S. Athletic Footwear Market $14 Billion Source: Obtained from a study conducted by Rob Pannell, Kyle Ewanouski, Vaibhav Gupta and Venkat Koduru; IDC; IDTechEX www.SmartKickz.com *There is also increasing acceptance of Wearable Technology as indicated by the expected growth in this market from $2.7 Billion in 2012 to $8.3 Billion in 2018!*
  13. Unique Business Focus founders@smartkickz.com SmartKickzTM will initially be sold exclusively on the SmartKickzTM mobile app and SmartKickz.com! *Build Brand Identity* SmartKickzTM will donate to foundations and charities, chosen by the purchaser, $5 for every shoe sold! SmartKickzTM will be expanding distribution channels as the brand grows. www.SmartKickz.com
  14. Marketing Strategy founders@smartkickz.com www.SmartKickz.com
  15. Competition founders@smartkickz.com www.SmartKickz.com
  16. Competitive Advantage founders@smartkickz.com Multifunctional Shoe Patented Technology Adapting Product Line Product Differentiation First to Market www.SmartKickz.com
  17. Expansion Opportunities founders@smartkickz.com Increase Shoe Sizes Offered Teens & Adults with Developmental Disabilities Senior Population More than 5,000,000 Americans are living with Alzheimer or another dementia. (Source: Alz.org). International Market www.SmartKickz.com
  18. Financial Projections founders@smartkickz.com www.SmartKickz.com High Volume Case Low Volume Projection Period Start Up Year 1F Year 2F Year 3F Year 1F Year 2F Year 3F Market Data Total Global Market $185 B $185 B $185 B $185 B $185 B $185 B $185 B Total US Market $14 B $14.6 B $15.1 B $15.7 B $14.6 B $15.1 B $15.7 B Target US Market* $1.7 B $1.8 B $1.9 B $1.9 B $1.8 B $1.9 B $1.9 B % Market Penetration (Shoe Sales Only) 0.00% 1.49% 2.54% 4.61% 0.70% 1.27% 2.31% Company Financial Data Projected Revenue (Net Sales) $0.0 M $24.7 M $57.9M $105.2 M $12.4 M $28.3 M $51.5 M Projected COGS $0.0 M $12.4 M $29 M $52.7 M $6.3 M $14.7 M $26.7 M Gross Margin % 0.0% 49.80% 49.91% 49.90% 49.19% 48.06% 48.16% Projected Expenses $0.3 M $4.4 M $9.3 M $16.3 M $2.8 M $5.4 M $9.1 M Projected EBITDA $(0.3 M) (1) $7.9 M $19.6 M $36.2 M $3.3 M $8.2 M $15.7 M (1) In addition to the negative EBITDA in this period, the Company is projecting capital expenditures of $0.2 million during startup. *Target Market is all infants and 50% children; combined growth rate is 7% of (2.9%+1.9%) plus of 13% of 50% of (8.7% +6.3%)=1.31% Target Percentage of Market is (.029+.019) +.5*(.087+.063)=12.3%
  19. Investor Safety founders@smartkickz.com SmartKickzTM World Foundation(non profit organization) Will raise funds through Grants and Donations for the benefit of the following main causes:  Early Childhood Development  Children w/ Developmental Disabilities (Autism, Visually Impaired, etc.)  Missing/Exploited Children SmartKickz™ will offer a 20% discount off the retail price for shoes sold to foundations/charitable organizations benefitting individuals who can be assisted by the SmartKickz™ product. This secures shoe sales!!!! www.SmartKickz.com
  20. Exit Strategy founders@smartkickz.com Acquisition Within 3-5 years www.SmartKickz.com
  21. Capital Raise founders@smartkickz.com Seed Round Up to $500,000 Convertible Note Pre-Money Value Expectations: $10M - $20M Valuation Cap: $7.5M Interest Rate: 8% Liquidation Preference: 1X Participating www.SmartKickz.com
  22. Capital Expenditures founders@smartkickz.com www.SmartKickz.com Startup Period (9 Months) Costs to be Incorporated Quarter 1 (Month 1-3) Quarter 2 (Month 3-6) Quarter 3 (Month 6-9) Total Completion of Prototype $70,000 - - $70,000 Hire Key Employee (Salaries/Benefits) $55,080 $55,080 $55,080 $165,240 Consulting Fees $7,500 $7,500 $7,500 $22,500 Test Production Costs - $20,000 $30,000 $50,000 Rent and Utilities - - $8,000 $8,000 Office Furniture and Equipment - - $25,000 $25,000 Travel $7,500 $7,500 $10,000 $25,000 Capital Raise Fees/Crowd Funding $25,000 $25,000 $25,000 $75,000 Marketing/Advertising $15,000 $15,000 $15,000 $45,000 Miscellaneous $2,500 $2,500 $2,500 $7,500 Total $185,580 $132,580 $180,580 $495,740
  23. Timeline www.SmartKickz.comfounders@smartkickz.com Startup Period (9 Months)  Quarter 1 (Month 1-3) Capital Raise for Startup Phase Begun Manufacturing Contract(s) Identified Development of E-Commerce Website/App Commenced Prototype Completed Large Capital Raise/Crowdfunding Begun  Quarter 2 (Month 3-6) Test Production Started (400 Pairs of Shoes) Test Production Completed (400 Pairs of Shoes) Manufacturing Contractor Relationship Finalized Development of Locator Application Begun Warehousing/Shipping Contractor Relationship Finalized Complete E-Commerce Website/App  Quarter 3 (Month 6-9) Selected Personnel Hired Product Introduction Manufacturing Begins Introduction Inventory Shipping to Company Commences Locator Application Completed Office Space at Selected Site Leased Office Equipment Obtained Selected Personnel Hired Production Introduction Period (3 Months)  Quarter 4 (Month 9-12) Product Introduction Marketing Commences Product Introduction Sales Commences Full operation Manufacturing Begins Full Operation Inventory Shipping to Company Commences Full Operation Marketing Commences Full Operation Period  Quarter 5 (Month 12 and Onward) Full Operation Sales Commences
  24. Team www.SmartKickz.comfounders@smartkickz.com Taze R. Ellis Founder, CEO Arizona State University Business Entrepreneurship & Communication Uchenna Dike Founder, COO | CFO University of North Texas Economics & Accounting Drexel University MBA Entrepreneurship & Innovation Jubal DeLong Product Engineer Austin Collier Product Designer Dr. Ralph Oakeson Patent Attorney Advisory: Michael Gerdes (Business Development), Michael Hadzipanajotis (Financial), Stu Vogel (Shoe Manufacturing), Christopher Beckom (Legal) Cassandra L. Digital Marketing Director
  25. SmartKickz.com founders@smartkickz.com
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