mota group inc. - stock picks, stock market investing · which currently represent 43%* of sales....
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Mota Group Inc.
April 2017
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Safe Harbor Statement
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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
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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
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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
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The first drone
Common tasks include:
Can be controlled
Used in markets such as:
DELIVERY
REAL ESTATE
MILITARY
AGRICULTURE
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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
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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
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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
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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
*
*
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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
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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
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RETAILER
RETAILER ONLINE
THROUGH DISTRIBUTION
40%
DIRECT
60%
DISTRIBUTION CENTER
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C o m p e t i t i o n
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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
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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
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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
”
”
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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%
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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
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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.
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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
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Working CapitalIncrease Production to Meet Demand
New Products, CustomerAcquisitions, IP Building
Marketing, Sales, and Outreach Cost Cutting and Automation
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Ability to grow with capital
higher priced products
Large and growing market
27Copyright© 2017 Mota Group, Inc., All rights reserved.
™
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