mota group inc. - stock picks, stock market investing · which currently represent 43%* of sales....

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1 1 1 Mota Group Inc. /ŶǀĞƐƚŽƌ WƌĞƐĞŶƚĂƟŽŶ April 2017

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Page 1: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

111

Mota Group Inc.

April 2017

Page 2: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Safe Harbor Statement

Page 3: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Page 4: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Type of Offering Initial Public Offering

Book-Running Manager Joseph Gunnar & Co.

Co-Manager Axiom Capital Management

Expected Offering Price

Pre-Offering Valuation

$9.99 per share, $0.01 per warrant

$15.0 Milllion

Offering Size 650,000 Shares and 650,000 warrants (100% Primary)

Shares Outstanding Post-Offering 2,161,107 Shares (excluding the over-allotment option)

Exchange NASDAQ Capital Market

Symbol MOTA / MOTAW

Use of Proceeds Increase in production, working capital and other general corporate purposes, including but not limited to finance our growth, enhance and improve our products and solutions, increase our customer base, marketing and sales infrastructure, automating and scaling our business processes, fund capital expenditures, or expand our existing business through investments in or acquisitions of other businesses, solutions, or technologies.

ISSUER Mota Group, Inc.

Over-Allotment Option 97,500 Shares and 97,500 warrants (100% Primary)

Warrant Terms: Exercisable for 5 years at 125% of the offering price

Page 5: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Page 6: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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We design, manufacture, and market drones, targeting the recreational sector of the market.

Expanded our product line in 2015 to include drones which currently represent 43%* of sales.

Our other consumer products include:• Smart wearables and electronics.• Innovative mobile accessories for smartphones

and cameras.• Virtual reality headset for drones, and toys for a

variety of ages.

1,700,000+Product Shipped

to Customers

N A S D A QTicker: MOTA

G L O B A L COMPANY

San Jose, California Shenzhen, China

Las Vegas, Nevada Hong Kong

11Lines of Drones & Growing

Over a Decade of Experience E S T.2003

Page 7: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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high volume sector of the market

through big box retailers

units in 2017 to 7.9 M units by 2020

Valuable customers such as Walmart and Target established through big box retailers

Page 8: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Page 9: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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The first drone

Common tasks include:

Can be controlled

Used in markets such as:

DELIVERY

REAL ESTATE

MILITARY

AGRICULTURE

Page 10: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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• 2.2 million units in 2015 to more than 7.9 million units annually by 2020.*

Units

(‘00

0s)

Reta

il/Co

nsum

er D

rone

mar

ket (

$mn)

2,000

3,000

4,000 10,000

8,000

6,000

4,000

2,000

2013 2014 2015E

Revenues ($mn)

2016E 2017E 2018E 2019E 2020E

1,000

0

Units (1000s) GOLDMAN SACHS ESTIMATED DRONE MARKET*

YEAR

in Units

2013

$700

2014 2015 2016 2017E 2018E 2019E 2020E

Page 11: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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C O N S U M E R

G O V E R M E N T

10, M +

$100,000+

P R O F E S S I O N A L

C O M M E R C I A L

EASY TOOPERATE

M I L I TA R Y

TOY

FAM

ILY

HO

BB

Y P

HO

TO

VID

EO

WA

REH

OU

SE

REA

L ES

TATE

AG

RIC

ULT

UR

E

MO

VIE

NEW

SA

ERIA

L P

HO

TO

CO

NST

RU

CTI

ON

RA

ILR

OA

D

Based on Mota’s understanding of the market . Actual data may vary.

MIN

ING

ENER

GY

DEL

IVER

Y

SUR

VEI

LLA

NC

E

MA

P

FIR

E

PO

LIC

E

MIL

ITA

RY

PR

O R

AC

ING

DIFFICULT

TO OPERATE

G O V E R N M E N T

Page 12: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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EASY TOOPERATE

C O N S U M E R

M I L I TA R Y

10, M +TO

Y

FAM

ILY

HO

BB

Y P

HO

TO

VID

EO

WA

REH

OU

SE

REA

L ES

TATE

AG

RIC

ULT

UR

E

MO

VIE

NEW

SA

ERIA

L P

HO

TO

CO

NST

RU

CTI

ON

RA

ILR

OA

D

Based on Mota’s understanding of the market . Actual data may vary.

MIN

ING

ENER

GY

DEL

IVER

Y

SUR

VEI

LLA

NC

E

MA

P

FIR

E

PO

LIC

E

MIL

ITA

RY

PR

O R

AC

ING

$100,000+

P R O F E S S I O N A L

DIFFICULT

TO OPERATE

C O M M E R C I A L

FUTURE

G O V E R N M E N T

Page 13: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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EASY TO USE

PROFESSIONAL/COMMERCIAL

4000ULTRA

ROBOTICS

STATE/LOCAL GOVT.

6000

5000JOJO 2JOJOCOMING SOON

COMING SOON8000

COMING SOON

HOBBY

AWARDS/PRESS COVERAGEMOTA PRODUCTS PRICE

CUSTOMIZED

CATEGORIES

*

FUTURE

NANO RACING

*

*

Page 14: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Pre 2015 2016 2017

We historically have been unable to take full advantage of our retail channels in full due to lack of inventory

Page 15: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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FISCAL YEAR ENDED JUNE 30, 2016

50% Decrease in Sales Due to Lack of inventory to Meet Demand

40% INCREASE IN SALES Fueled by Bridge Financing

53% ANTICIPATED INCREASE IN SALES

CAPITAL AND NEW CUSTOMERS

$8,000,000 $4,000,000

$6,000,000 $3,000,000

$4,000,000 $2,000,000

$2,000,000 $1,000,000

$ $

New Customers Acquired:

New Customers Acquired:

THREE MONTHS ENDED MARCH 31, 2017

Page 16: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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RETAILER

RETAILER ONLINE

THROUGH DISTRIBUTION

40%

DIRECT

60%

DISTRIBUTION CENTER

Page 17: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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C o m p e t i t i o n

Page 18: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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CONTROLLER

DIRECTIONAL

QUICK START

SET

UP

ONE TOUCH TAKE OFF/LANDING

C o m p e t i t i o n M o t a ’ s P r o d u c t s

Page 19: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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C o m p e t i t i o n M o t a ’ s P r o d u c t s

Page 20: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Jan 7, 2016 -Take Flight with These High-Tech Drones

May 4, 2016 - GOPRO Releases Two Mobile Video

Sep 2, 2016 - This Tiny Drone Can Be Your Streaming Eye in the Sky

the possibility of

June 30, 2016 -Take Flight with These High-Tech Drones

Nov 21, 2016 - JETJAT ULTRA Micro Streaming Drone Named Finalist for 2017 Toy of the Year.

believes China tech market will outsize US

Palm

July 24, 2015 - MOTA Wireless Charger for GoPro one of 2015’s best GoPro accessories!

May 12, 2016

“ 提名产品 新鲜出炉---最佳无人机: 莫塔

GoPro accessories!

May 11, 2016 - The Buzz on Drones at CES Asia 2016

Page 21: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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2013 Today

U.S .

OT H E R

C A N A DA

U.S

Q U E B E C

99%1%

90%

7%

3%

Page 22: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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MARJORIE BAILEYAUDIT COMMITTEE CHAIR

MICHAEL FARO

DAVE HORIN

PRESIDENT/FOUNDER

FINANCIAL ADVISOR, CPALILY JUCHIEF PRODUCT OFFICER

BOARD OF DIRECTORS

DIANNE DUBOISCHIEF FINANCIAL OFFICER

Page 23: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Cash

Actual As of December 31, 2016

As of December 31, 2016 (Pro Forma) (1)

As of December 31, 2016 (Pro Forma As Adjusted) (2)

Working Capital

Total Assets

$404,325

(774,126)

$404,325 $6,449,325

10,775,232

6,556,349Stockholders’ Total Equity

** Working Capital deficit is equal to current assets minus current liabilities.

price of $9.99 per share and $0.01 per warrant set forth on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses.

Page 24: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Net revenue

Net revenue: 41.3% increase due to increased product demand and new customers. Only able to partially meet demand due to insufficent inventory. Gross profit: Decrease in gross margin due to premiums paid to rush delivery and production.Operating expenses: Increase of $613,277 resulting from increased advertising expense and accounting and reporting costs related to the offering.Other expenses:

Cost of goods sold Gross profit

Selling expensesGeneral and administrative expensesTotal operating expensesLoss from operationsOther expenses, net Net loss

June 30,

2016 2016 2015

Six Months Ended December 31,

(unaudited)$3,977,992 $3,657,363

1,279,5751,329,427

972,2741,774,554(515,767)

(50,193)$(565,960)

1,500,115

(222,296)

1,054,3561,333,475

$(1,442,442)

CONSOLIDATED STATEMENTS OF OPERATIONS DATA:

Summary Comparison six months ended 12/31/16 to six months ended 12/31/15

Page 25: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Working CapitalIncrease Production to Meet Demand

New Products, CustomerAcquisitions, IP Building

Marketing, Sales, and Outreach Cost Cutting and Automation

Page 26: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

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Ability to grow with capital

higher priced products

Large and growing market

Page 27: Mota Group Inc. - Stock Picks, Stock Market Investing · which currently represent 43%* of sales. Our other consumer products include: ... GLOBAL COMPANY San Jose, California

27Copyright© 2017 Mota Group, Inc., All rights reserved.

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