investment proposal kevin washington, cfo march 2012

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Investment Proposal Kevin Washington, CFO March 2012

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Page 1: Investment Proposal Kevin Washington, CFO March 2012

Investment Proposal

Kevin Washington, CFOMarch 2012

Page 2: Investment Proposal Kevin Washington, CFO March 2012

222All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

About FireFly GadgetsFireFly Gadgets• Start-up company• Mission: Creative Product Development

– Concept through prototype– Market analysis / proposal development– Bring to Market– Unique, high-demand products

• Portfolio:– Monster Detector night light– Other utility products– Mobile device apps

Page 3: Investment Proposal Kevin Washington, CFO March 2012

333All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Monster Detector™ Night Light

Page 4: Investment Proposal Kevin Washington, CFO March 2012

444All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Monster Detector™ – Target Market

• Intended for children ages 2 – 8

• Market potential is huge– 35 Million family households

with children under 18– 40 Million children under 9

years of age

2010 US Census

Page 5: Investment Proposal Kevin Washington, CFO March 2012

555All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Market Positioning

Novelty night light– Different, fun, unique

Gift for Parents and Children

Allays fears, provides comfort to children– Helps parents get children to sleep

Monster detecting abilities 100% effective in lab tests

Page 6: Investment Proposal Kevin Washington, CFO March 2012

666All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Pricing/Cost

• Production cost: $3.5 - $4.0 range

• Wholesale Price (Retail Cost) $8.0

• Retail price: – $15-$20 range– Proportional to value

Page 7: Investment Proposal Kevin Washington, CFO March 2012

777All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Production Phases

Region (Production Start)

Estimate Number of Children Under The Age of 9 (Millions)

1. U.S. (2012) 40

2. Europe (2013) 100

3. AsiaPac (2014) 330

Page 8: Investment Proposal Kevin Washington, CFO March 2012

888All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Sales Projections(Thousands of Units)

Page 9: Investment Proposal Kevin Washington, CFO March 2012

999All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Product Development Plan

North America Sales

Redesign For Europe/Asia

European Sales

Asia/Pac Sales

2012 2013 2014 2015 2016

Product # 2

Product # 3

Page 10: Investment Proposal Kevin Washington, CFO March 2012

101010All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Investment Proposal• Current financial projections show profitability and positive cash flow

within 18 Mos.

• Investment of $1.3M moves company from start-up to production & profitability

• Ownership:

• Investor ROI:

Principal % Ownership

CEO – JoAnn Anderson 23 1/3 %

CFO – Kevin Washington 23 1/3 %

COO – Jim Anderson 23 1/3 %

Investor 30%

FireFly Profitable Within 18 Mos., Investor Realizes Nearly 5X ROI FireFly Profitable Within 18 Mos., Investor Realizes Nearly 5X ROI by 2016 Just on Monster Detector Night Lightby 2016 Just on Monster Detector Night Light

FireFly Profitable Within 18 Mos., Investor Realizes Nearly 5X ROI FireFly Profitable Within 18 Mos., Investor Realizes Nearly 5X ROI by 2016 Just on Monster Detector Night Lightby 2016 Just on Monster Detector Night Light

2012 2013 2014 2015 2016Cumulative Net Income ($K) (123) 1,348 4,596 7,599 8,930Investors Share ($K) (37) 404 1,379 2,280 2,679 Investors ROI (107%) (19%) 176% 356% 436%

Investment Summary

Page 11: Investment Proposal Kevin Washington, CFO March 2012

111111All rights reserved FireFly Gadgets, LLC 2012April 21, 2023

Next steps

• Consider Proposal

• Execute agreement or provide feedback

Next steps

Page 12: Investment Proposal Kevin Washington, CFO March 2012

29314 N. 153rd PlaceScottsdale, AZ 8526229314 N. 153rd PlaceScottsdale, AZ 8526229314 N. 153rd PlaceScottsdale, AZ 85262

29314 N. 153rd PlaceScottsdale, AZ 85262

(480) 255-7745 (Cell)(602) 324-7375 (Fax)[email protected]