|1||💰 Increased yearly revenue by over 500% while increasing 10%-20% in month over month revenue.|
|2||🙌 Over 90% of scooter riders in our target market prefer to ride a Boaz over our competitors.|
|3||🔐 Patent Pending on our new Model 3 vehicle which we expect to unveil early 2021|
|4||💪 ZERO reported accidents in over 20K+ trips.|
|5||🚀 Currently have 3 City permits with plans to operate in 20+ cities by May 2021|
Bird was the first mover in the e-scooter space, and Jump had access to the biggest distribution channel in the industry, Uber's app. Yet, despite those advantages, Lime has crushed both of them to become the biggest micromobility company in the world (so much so that Uber recently invested into Lime and sold Jump to them). Lime's secret is simple: they achieved much better unit economics by ruthlessly pursuing operational and technological efficiencies. In this industry, great unit economics determine the market leader.
That is precisely what has me so excited about Boaz Bikes. Between tech advantages (e.g. modular battery and simplified, robust construction) and operations advantages (e.g. streamlined personnel stack and optimized infrastructure), Boaz has much lower costs than the industry average. And those efficiencies even have room to improve as Boaz increases its scale. COVID-19 has leveled the micromobility playing field overnight, and a profitable newcomer like Boaz is poised to dominate unprofitable incumbents.
True, Boaz bikes are safer, easier to use, and more comfortable than other e-scooters. True, Boaz has already demonstrated explosive traction in a couple underserved markets and market segments. But those are just icing on the cake. The cake is that Boaz has great unit economics; in this industry and at this time, that is everything.
[Full disclosure: I am an investor in Lime. I don't view that as a conflict of interest, because a win-win acquisition might very much be on the table.]
We developed a strategy that allows us to target the best areas in any market to deploy our vehicles. Our state of the art global positioning system grants us the peace of mind that we need in order to leave our vehicles dockless. We use AI to not only find the best hub locations for our fleet but also the best way to swap batteries and relocate vehicles. Doing this saves time and money on the operations side.
-Vehicles are deployed in strategic areas
-Each vehicle has a hang tag on it that gives new users instructions on how to download our top of the line mobile app
-Users download mobile app
-They add money to their digital wallet within the app
-They scan the QR code which turns the vehicles on
-They ride wherever they please and when done they end their ride within the app
-They snap a picture of their proper parking ($3 fine for improper parking)
-The app deducts funds from their wallet
-Their remaining balance stays in their wallet until their next ride
We were first in the sit-down shared scooter area and now we've designed our Model 3 vehicle which is the next phase of micro-mobility scooters (Patent Pending). We believe our Model 3 vehicles will be the most durable and safest scooter on the market. Funds from this raise will help us send vehicles into production and roll them out into the markets in early 2021!
Besides wanting to change the world and leave it better.. Our founders are wicked smart and are able to get jobs done with less. Collectively they have over 20+ years in the transportation industry. Nnani and Winfrey both built ride-share companies from the ground up prior to Boaz. Winfrey also helped Uber grow into a Multi-Billion dollar business. Our lead investor is also an early investor in Lime scooters and for him to agree to invest and help advise the company means we are on to something BIG! We are currently profitable out of pilot market and we believe we can be profitable in less than 30 days in any market we expand into.
Boaz Bike has financial statements ending December 31 2019. Our cash in hand is $8,500, as of July 2020. Over the three months prior, revenues averaged $15,000/month, cost of goods sold has averaged $1,000/month, and operational expenses have averaged $8,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Electric scooter sharing company that is focused on Safety. We cut operation expenses by 80% compared to our competitors with our state of the art scooter design. The ability to swap out dead batteries in less than 1 minute in the field compared to taking scooters home to charge. We inspect and monitor vehicles throughout the day to provide the highest quality shared vehicle on the market. We want to make sure that our users do not get injured while riding our vehicles.
We are hoping to have an early exit in late 2021. We also hope to expand into 20-30 cites by mid 2021 and with the mass production of our newly designed scooter we plan to expand to 60-100 cities by the end of 2021. If a merger/buyout doesn't happen we hope over the next 3 years to be the #1 scooter shared provider worldwide based off the success of our new scooter in operation (patent pending). These projections cannot be guaranteed. Patents will be owned by the company.
Boaz Bike LLC was incorporated in the State of Texas in December 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in December 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $250,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Boaz Bike LLC cash in hand is $8,500, as of July 2020. Over the last three months, revenues have averaged $15,000/month, cost of goods sold has averaged $1,000/month, and operational expenses have averaged $8,000/month, for an average net margin of $6,000 per month. We are just about break even right now and believe we will be profitable in August or September.
Winter had slower months; revenue drops in colder seasons. We also invested a lot of capital into our first city which we ended up pulling out of to focus more on the profitable locations.
We believe revenues will increase drastically with the warmer weather in the markets we currently target. We also plan to ship our remaining vehicles to the states and deploy in 2-10 more cities over the next 3-6 months. While we cannot guarantee it, if we were to raise $1.07M we believe that could get us to $1,050,000 in monthly revenue 3 - 5 months after the raise. In our industry it's a numbers game. Tight now we average $40-$50 per vehicle per day in gross rev; the industry standard (Bird & Lime scooters) is ~$25 per day. With the investment we will purchase 1000 new vehicles to add to operation bringing our total fleet to about ~1400-1500 units. During the same period we expect our expenses to be about 30% of our revenue.
Our only other source of capital is from daily revenue and if needed we could do another raise from previous friends and family investors.
We lose 2.5-5% of our fleet every month to repairs and theft. Our current suppliers are in China and continued trade wars and virus outbreak can result in a higher per vehicle cost.
Christiana Winfrey is part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We have no secured or filed patents for our new Model 3 vehicle which we plan to do once we close funding round (hence the reason we are only showing the model to a selective few).
Coronavirus scares could possibly shut the government down and push plans of an early exit back a few months to a year depending on if there is another outbreak.
Cory Smith is part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2) and, as a result, the following must be disclosed: (i) the financial information that has been omitted is not otherwise available and will be provided by an amendment to the offering materials; (ii) the investor should review the complete set of offering materials, including previously omitted financial information, prior to making an investment decision; and (iii) no investment commitments will be accepted until after such financial information has been provided.
COVID-19 may pose a risk as it puts cities into shelter in place and limits individual movement. Government regulations that we are subject to could change at any time.
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