SmartKickz is a technologically enhanced learning shoe that teaches the “user” how to put their shoe on the right foot using visual and voice interaction.
Problem A
Parents have less time to teach and watch
their children. Technology is able to pick
up some of the slack.
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Problem B
Developmental disabilities are common in
approximately 1 out of every 6 children.
Source: Center for Disease control and Prevention (CDC)
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Solution
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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.
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Benefits
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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%!
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Market Validation
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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.
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Market Size
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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
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*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!*
Unique Business Focus
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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.
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Expansion Opportunities
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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
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Financial Projections
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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%
Investor Safety
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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!!!!
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Capital Raise
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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
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Capital Expenditures
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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
Timeline
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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
Team
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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