Top 3 Pitches That Were Offered $1M or More! | Shark Tank US | Shark Tank Global
Summary
TLDRIn this episode of Shark Tank, Melissa Carbone from 1031 Productions seeks $2 million for a 10% stake in her horror-themed live attractions business, highlighting successful seasonal events like the Los Angeles Haunted Hayride. Despite impressive revenue, the sharks question her $20 million valuation. Yellow Leaf Hammocks, a socially conscious company, aims to alleviate stress with their high-quality, handmade hammocks, offering a unique, relaxing experience. They secure a $1 million investment for 33% equity after an initial ask of $400,000 for 7%. Lastly, Spark Charge introduces a portable EV charger to combat range anxiety, securing a $1 million deal for 15% equity after an initial 6% offer.
Takeaways
- 🎭 The entrepreneur, Melissa Carbone, seeks $2 million for 10% equity in her horror entertainment company, 1031 Productions.
- 👻 1031 Productions is known for the Los Angeles Haunted Hayride, a popular seasonal attraction, and the Great Horror Camp Out, a summer event.
- 💸 The company's valuation of $20 million is based on annual revenues, with the Haunted Hayride generating $1.8 million in 17 days.
- 📈 Melissa plans to expand with a New York Haunted Hayride and is in the 'launching new attractions' phase, which is capital-intensive.
- 🗣️ The Sharks express concern over the high valuation and the business's reliance on seasonal attractions, questioning the scalability and risk.
- 🤝 After negotiations, Melissa agrees to a deal for $2 million in exchange for 20% equity, highlighting the Sharks' interest in her business model.
- 🌴 Yellow Leaf Hammocks, presented by Rachel and Joe, offers a socially responsible hammock business that empowers rural women in Thailand.
- 🌟 They seek $400,000 for 7% equity and have a product line ranging from $49 to $299, with a flagship product, the Hammock Throne, priced higher.
- 🌐 Yellow Leaf has strategic partnerships, including a deal with Virgin Voyages, and is projected to double their business through such alliances.
- 📊 The company has shown profitability, with $110,000 net income on $860,000 in revenue the previous year, aiming for $1.3 million in sales the current year.
- 🔋 Spark Charge introduces a portable and modular EV charger to combat 'range anxiety', seeking $1 million for 6% equity in their innovative solution.
Q & A
What is the name of Melissa Carbone's company and what does it do?
-Melissa Carbone's company is called 1031 Productions. It creates, owns, and produces live attractions in the horror space.
What is the most popular attraction produced by 1031 Productions?
-The most popular attraction produced by 1031 Productions is the Los Angeles Haunted Hay Ride.
How much revenue does the Los Angeles Haunted Hay Ride generate in 17 days?
-The Los Angeles Haunted Hay Ride generates approximately $1.8 million in 17 days.
What is the Great Horror Camp Out and how does it differ from the Haunted Hay Ride?
-The Great Horror Camp Out is an overnight, completely immersive camping experience with a horror theme. It is different from the Haunted Hay Ride as it is designed to be a summer attraction and aims to make the company not just seasonal.
What is the cost structure of producing the Los Angeles Haunted Hay Ride?
-It costs $1.2 million to produce the Los Angeles Haunted Hay Ride, leaving a free cash flow of $600,000 after the event.
How does 1031 Productions market their attractions?
-1031 Productions spends about $300,000 on advertising, with a focus on radio marketing, given Melissa Carbone's background in running Clear Channel Los Angeles.
What is the valuation that Melissa Carbone is seeking for her company on Shark Tank?
-Melissa Carbone is seeking a $20 million valuation for her company, seeking $2 million for a 10% stake.
What is the final deal that Melissa Carbone agrees to on Shark Tank?
-Melissa Carbone agrees to a deal for $2 million for 20% of her company.
What is the name of the product Yellow Leaf Hammocks is introducing to the market?
-Yellow Leaf Hammocks is introducing the Hammock Throne, an indoor-outdoor hammock chair.
What is unique about the Yellow Leaf Hammocks business model?
-Yellow Leaf Hammocks operates as a social enterprise, working with moms in rural Thailand to create high-wage jobs and produce their products.
What is the sales forecast for Yellow Leaf Hammocks for the year they appeared on Shark Tank?
-Yellow Leaf Hammocks is forecasting $1.3 million in sales for the year they appeared on Shark Tank.
What is the business model of Spark Charge and what problem does it solve?
-Spark Charge offers a portable modular and ultra-fast EV charger to solve the problem of range anxiety for electric vehicle owners by bringing the charging station to the vehicle.
What are the three core features of the Spark Charge product?
-The three core features of the Spark Charge product are modularity, portability, and speed, allowing it to provide 1 mile of charge every 60 seconds.
What is the cost structure for Spark Charge's product and how is it sold to customers?
-The cost of goods for each module is roughly $2,500. It is sold with a $1,000 deposit and a $150 monthly fee.
What is the deal offered by the Sharks to the founders of Spark Charge?
-The deal offered to the founders of Spark Charge is $1 million for 10% equity, with an additional 2% advisor equity and a board seat.
Outlines
🎭 Horror Entertainment Business Seeks Investment
Melissa Carbone from Los Angeles introduces 1031 Productions, an entertainment company specializing in horror-themed live attractions. The company is seeking $2 million for 10% equity. Their flagship attraction, the Los Angeles Haunted Hay Ride, operates seasonally and has been highly successful, with sell-out nights and a profit of $600,000 after costs. They also launched the Great Horror Camp Out, an immersive summer attraction. Despite the high valuation request, Melissa argues that the company's potential for growth justifies the valuation, mentioning interest from major entertainment companies. The sharks express concerns about the valuation and the scalability of the business model, leading to a tense negotiation.
🧘♀️ Relaxation Hammock Business Aims for Global Impact
Rachel and Joe, the Chief Enthusiasm and Chief Relaxation Officers, present Yellow Leaf Hammocks, a company that offers a modern take on the traditional hammock. They seek $400,000 for 7% equity. The company has created a no-wobble design and a soft fabric to prevent rope burns, aiming to provide relaxation solutions. They've introduced the Hammock Throne, a space-saving chair that can extend into a full-length hammock. Yellow Leaf Hammocks operates as a social enterprise, creating high-wage jobs for mothers in rural Thailand. The company has experienced significant growth, with $860,000 in revenue last year and a projection of $1.3 million this year. The sharks show interest in the product and the social mission, leading to a discussion about valuation and potential investment.
🚗 Portable EV Charger Targets Range Anxiety
Chris and Josh, co-founders of Spark Charge, introduce a portable, modular, and ultra-fast EV charger designed to alleviate range anxiety for electric vehicle owners. They seek $1 million for a 6% stake in their company. The charger, called the RO, can be connected in modules to provide the desired range, is portable for use anywhere, and charges at a rate of 1 mile per minute. The founders highlight their strategic growth, including a partnership with AAA and the development of their own manufacturing facility. They've raised $5 million, a mix of venture capital and grants. The sharks question the business model, the cost of production, and the scalability of the company, leading to a debate about the valuation and the potential for consumer products.
Mindmap
Keywords
💡Entrepreneur
💡Valuation
💡Haunted Attraction
💡Seasonal Attraction
💡Immersive Experience
💡Shark Tank
💡Investment
💡Revenue
💡Profitability
💡Social Enterprise
💡Product Roadmap
Highlights
Melissa Carbone from Los Angeles introduces 1031 Productions, an entertainment company specializing in horror-themed live attractions.
The company's most popular attraction is the Los Angeles haunted hay ride, known for its immersive and terrifying experience.
1031 Productions seeks $2 million for 10% equity, implying a $20 million valuation.
The company operates year-round with seasonal and summer attractions, aiming to overcome seasonality.
The Los Angeles haunted hay ride generates approximately $1.8 million in 17 days, with production costs around $1.2 million.
The Great Horror Camp Out is a new overnight camping experience designed to keep the business operational year-round.
Marketing and advertising for the attractions are primarily done through radio, leveraging Melissa's background in Clear Channel Los Angeles.
The company has plans to expand to New York and other cities, seeking investment for this growth.
Shark Tank investors express concerns about the company's valuation and the risks associated with the business model.
Despite the valuation debate, an investor agrees to a deal for $2 million in exchange for 20% equity, valuing the company at $10 million.
Rachel and Joe introduce Yellow Leaf hammocks, a socially conscious business creating high-wage jobs in rural Thailand.
Yellow Leaf hammocks are designed for modern consumers, addressing common issues like wobble and rope burn.
The company presents the Hammock Throne, an indoor-outdoor hammock chair, as a new product innovation.
Sales for the current year are projected to reach $1.3 million, showing significant growth from the previous year.
A strategic partnership with Virgin Voyages is highlighted, with plans to place hammocks in every cabin.
The company's products are sold at a range of $49 to $299, with a cost of goods around $44 for the $199 hammock.
An investor offers $1 million for 33% equity, valuing the company at $3 million and recognizing its social impact.
After negotiations, the founders accept an offer of $1 million for 25% equity, a significant investment for the company's growth.
Chris and Josh from Spark Charge introduce the RO, a portable and ultra-fast EV charger designed to alleviate range anxiety.
The RO's modularity allows for customizable charging solutions, with the ability to charge an EV at a rate of 1 mile per minute.
The company has a strong sales trajectory, with half a million in sales in six months and projections of $10 million by the end of next year.
Spark Charge has a patented product and has built its own manufacturing facility in Buffalo, New York.
The company has raised $5 million in total, a mix of venture capital and grants, with over 50% ownership remaining.
An investor offers $1 million for 10% equity, with an additional 2% advisor equity and a board seat, valuing the company at $10 million.
The deal is accepted, marking a significant investment to scale the business and meet the growing demand for EV charging solutions.
Transcripts
[Music]
next into the tank is an entrepreneur
who believes there's big money to be
made from Big
[Music]
scares everywhere I go there's zombies
hi s I'm Melissa Carbone from Los
Angeles my company is 1031 Productions
and I'm seeking $2 million in exchange
for 10% of my
[Music]
company wow 1031 Productions is an
entertainment company that creates owns
and produces live attractions in the
horror space our most popular attraction
is the Los Angeles haunted hay ride and
it is not for the faint of heart sharks
when you take our hay ride you are
entering the pitch black woods where
demonic forces lost souls Psychopathic
fun are waiting around every
[Music]
turn
bites and just when you think the terror
is over think again oh God
oh my
God he likes you don't eyeball me I will
kick your tush back to Texas Mark get
him okay Melissa you know what's really
scaring the crap out of me is your
valuation so $2 million for 10% imputes
a $20 million value on this scary hair
ride business tell us why you're worth
$20 million we do attractions all year
long we have the Los Angeles haunted hay
ride which is our seasonal attraction
here in La 17 nights we sell out every
single night we do about 1.8 million
dollar right now per
October 1.8 is really good in 17 days 1
days we have another attraction called
the Great Horror camp out that we just
launched which is the summer attraction
the Great Horror camp out is our way of
not being a seasonal company it is an
overnight completely immersive
camping experience horror theme so it's
12 hours we B we we take 2,000 campers
we put them in tents and we have an
incredibly interactive experience that
includes everything from a h it's
basically summer camp from hell yeah 1.8
million in at the end of the 17 days
what's left it cost us $1.2 million to
produce the Los Angeles haunted hay ride
so so I'm left with 600,000 free cash
afterwards yeah I mean it varies year to
year because right now we're in a
launching new attractions mode we're
launching a New York haunted hay ride
which is what we're seeking some of this
money for the Great Horror camp out
we're launching it next year in 10
cities up the West Coast there in lies
the rub right because they're very very
very expensive to to produce and create
right well C the camp outs are cheap to
produce how much advertising or
promotion do you do we spend about
$300,000 we do a ton of radio my
background is I I ran Clear Channel Los
Angeles for 10 years so my um
advertising marketing and one of and my
other business partner is actually still
with Clear Channel so we know how to
make a dollar go really far from a
market how how many Unique Individuals
come through the hay ride we have we
have 50,000 people we sell out every
single night so this year is our first
year we increase our Max Capacity to
100, 800 we actually are doubling our
Max Capacity this year you sell out
every night for 17 days every night
that's amazing so can I extrapolate and
say that the it's going to be 3.6
million in Revenue this year yes if we
sell out so that means this thing will
generate just over a million bucks if
everything works right mhm okay now
you're an intelligent woman I'm trying
to make the leap now we have to get back
to reality on your $20 million ask yeah
let's give you a fair chance of making a
million bucks before tax okay yep that's
about 700,000 after tax if I gave you a
10 multiple you're worth 7 million bucks
how is it that I am going to pay 20 for
a $7 million business if everything goes
right M that's the horror story You'
brought here you've overvalued your
business
we've had major entertainment companies
in La who have already given us offers
to buy our company and this is about
what they're valuing it why are you such
a greedy Pig
I not greedy I have lots of lots of high
hopes for the company and I want to grow
fast just because a Hollywood boo
offered you a $20 million valuation you
know what the horror show is listen to
you argue about valuation all the time
well they want just give her $2 million
for 10% I am projecting for the New York
h heroid which hasn't happened yet cuz
it's the same model in La we're just
plopping it there done it yet Let Go Let
Her Go geographically it's a different
model because it never rains in La
listen I I I I don't agree that your
risk analysis is correct it never
happens that everything you roll out
successful day one that's
ridiculous for me it is not hard to get
lots of people to come to the
attractions the hard part is to make it
a great EXP experience so they want to
come back this is all fun and games but
we're talking about money here I can't I
can't get there I'm
out Melissa for you to come close to
your projections for next year
everything has to work perfectly all the
time I don't see you getting to those
numbers next year I'm
out for me right now to give you $2
million I feel it would take a really
long time for me to see that back so for
that reason I'm
out the risk is not as great as you
probably would think I mean we will
launch these attractions no matter what
I know that we can launch them Faster by
having this money we can launch them now
I'm an expert in high octane scare you
are yes I can tell you a way to do this
much cheaper wear a piece of jewelry and
walk around where I grew up yeah that
will give you a high octane fair enough
uh I would just have to insult you with
my offer um go ahead insult her that's
about what it's worth soow the offer
yeah okay well then I'll give you $2
million for
40% okay
Mark come on Mark is that a yes or a no
to him um can I counter of course you
can
counter um 2 million for
20% I'll take that offer
done
really
yep awesome we have a deal all right we
have a deal wow easy breezy I love it
thank you I'm
so holy cow you ow me 5% for helping you
on that totally you can have free
tickets for that hunted ha thank you so
much you guys good apprciate it I don't
know what just happened wait a minute I
lost out on a deal com to S yeah you
just
did I think that the next generation of
of entertainment is experiential
entertainment where people get out of
the house and go and get a unique
experience I thought for me to get my
money back if I did that deal for 2 m
I'd have to rise from the dead and look
like that before I get you already have
Kevin are we excited are we excited mark
on board and $2 million this is the
biggest deal ever I'm so excited this
changes the game for
us
wow next up is a stylish way to
relax hi I'm Rachel and I'm the Chief
enthusiasm officer and I'm Joe and I'm
the chief relaxation officer we're
seeking $400,000 in exchange for 7% of
our company
wow between the emails popping up in
your inbox 24-hour news blaring from
every screen and constant pinging
interruptions from your smartphone we're
all feeling more overwhelmed and
stressed out than
ever we're all sick of feeling busy
hectic and rushed and our solution to
this frustration is not another app or
Gadget our solution is the world's most
ridiculously comfy hammock introducing
Yellow Leaf hammocks at Yellow Leaf
hammocks we've perfected the hammock for
the modern consumer we've conquered
every obstacle from creating a
cocoon-like no wobble design to a
shockingly soft yard so you won't get a
rope burn when you're trying to relax
and they're completely weather safe now
we're breaking the boundaries of
relaxation with our new invention the
hammock Throne the hammock Throne is an
indooroutdoor hammock chair that makes
it possible to relax absolutely anywhere
with the hammock thrown you have a
gorgeous piece of furniture that you can
put out in your living room on your tiny
balcony or even in your
office it extends back to create a
fulllength hammock large enough for a
7ot person all within a diameter of just
3 and 1/2 ft wow and it swivels
360° so you can angle it to gaze out the
window or relax while you watch Shark
Tank first we perfected the hammock now
we brought it into your living room so
sharks who wants to make the world a
better place and join us in our quest to
build a relaxation
Empire so on the tables in front of you
are specially selected hammocks oh uh if
you open these up and first thing you
want to look at the label they're all
signed by the woman who made it um we're
social Enterprise I like that yeah
they're all where do you make them we
work with moms in rural Thailand to
create high-wage jobs what do they cost
what do you sell them for the ones that
we just gave you guys are a classic
double it's our top selling size they
retail for $1.99 ooh that's not bad our
current line rang is between $49 and
$2.99 the $999 hammock how much do you
pay for it $44 Is Our Land cost so what
is an average hammock made out of
something like this what does that cost
you can find a hammock for $30 on Amazon
to be perfectly honest not it's not
going to feel like this it's not going
to look like this Rachel how much is the
contraption so this is the brand new
hammock Throne this is our highend
hanging solution that we've just
introduced it's the first your product
you made yeah we did um so this one is
somewhere in the neighborhood of 2200
yeah whoa wow but it's an indoor piece
of furniture see that seems like a lot
tell us a story of how you get here our
inspiration to start this was to
literally end poverty and really
vulnerable communities in the developing
world the idea for the company started
when I initially went on a backpacking
trip across southeast Asia without me a
I know we were living together in Boston
at the time and I stumbled across a
hammock on a remote island and I was
immediately struck by how soft it was I
was really impressed with the quality
and I started asking some questions and
learned that it was woven by this hill
tribe Community it was part of an
economic development program to help
this hill tribe group out of poverty and
I was really struck by that in Thailand
so I went to this community and I got to
meet the actual Weavers and hear their
stories and I learned that this
community that started making the
hammocks with the help of an aid worker
had been previously in debt slavery and
the thing that really struck me was a
lot of people kept coming to this
community asking to join the program but
they were being turned away because
there weren't enough sales and I thought
well we can start a little hammock
company and you know provide enough jobs
in this region so it came home with a
backpack stuff full of hammocks and I
came home to Rachel I was thrilled that
my boyfriend wanted to put his Finance
job and start a hammock company as you
can imagine yeah I was l a great
idea what are your sales this year we're
going to hit 1.3 million wow last year
we did 860,000 your sales are primarily
online it's about 50/50 between a
combination of director consumer sales
to our website as well as strategic
Partnerships a big part of our early
wholesale was kind of scattershot patio
stores we took a step back from that to
focus on strategic Partnerships who uh
it's Virgin uh voyages which is virgin's
new Cruise Line business so virgin
voyages will be putting Yellow Leaf
hammocks in every single balcony of
every single cabin what price do you get
for from them for these they they pay
our wholesale price but they'll also be
um retailing them so they'll we'll be on
the room service menus in the on in the
cabin and on the stores the retail store
is projected to more than double our
current business so you've got to be
profitable then right last year on uh
860,000 in Revenue our uh net income was
110,000 that's great after paying
yourself after paying ourselves yeah joh
Rachel yes here's my offer bam L of the
five sharks here I probably have the
most cred potentials about building
socially impactful businesses so I
understand the challenges you're facing
I really love a lot of what you stand
for but you have $100,000 profit with a
crazy $5.7 million valuation so my offer
is as follows and it's an explosive
offer I want 33% of the company that'll
give you $1
million wow say yes or no and then it's
done
all sharks are still in Rachel and Joe
are seeking $400,000 for a 7% stake in
their mission-based hammock company
Yellow Leaf hammocks Daniel is
interested and has made a staggering
offer what I want 33% of the company
I'll give you $1 million say yes or no
and then it's done W $1 million 33%
you you mentioned our profitability on
last year I want to mention our
profitability on this year and what
we're doing next fair to us and I think
you the order so on the 1.3 million that
we're doing uh this year we're doing
360,000 in profit one of the biggest
things that we're looking to do with
this money is we have a huge product
road map of
solutions stop talking and take the deal
he's paying you over eight times might
be another deal that's an amazing offer
we also recognize that we might not need
all of that money right now we also you
do it all right well hey if you don't
need all the money right now I'm going
to make you an offer we don't we're not
prepared to give away that much
that I mean I sit here I listen a Ham
Company well listen he just said maybe
he doesn't need all that much money so I
will give you an offer I'll go
400,000 for 20% now a grant his might be
better offer for you a million dollar
for the 25% and both of you I don't want
to go to the million I about 500,000 for
25% that that what's your counter for
25%
600,000 for
14% oh
wow I love the idea and I think you guys
are the real deal thank you I will give
you the 400,000 for 15%
if you take the million dollars from me
you won't need to dilute yourselves
again you know how much money kind has
raised in its entire lifetime for
business the total we ever raised in our
entire history was $5.2 million and we
we sell over a billion dollars in sales
I'll teach you and I'll help you run the
business in efficient way are you okay
with 33% or is that too much for you I
think it's too much because what's the
maximum that you're willing to do for
someone that's going to really rooll up
their sleeves and help you we're looking
at the future if you took 33% now I
worry that we would it would hurt us at
a subsequent round when we grow what
subsequent round when I started my
business started with one product I took
out a bank loan was about
$325,000 I paid it back within a year
and I never had to take a loan or bring
in an investor again so listen I don't
think you need to just sit there and
take on all these investors and take in
a whole ton of money you just need to be
strategically smart and taking the right
investor but you need some that's the
bottom line so I'm going to change my
offer my offer is this I'm going to go
$200,000 flat then I'm going to give you
a loan of
$200,000 at 7% I'm going to fund
purchase orders if you need them and I'm
going to ask for
177% you may like 4,000 the one thing
that I can offer is is I can offer
somebody who will hold your hand take
you down the road do everything that you
need I care about helping women I care
about helping environment I care about
helping the world and I really like the
two of you so I care about help I love
the two of you thank you so much we love
you guys we're making it hard on them
what's the minimum percentage on what
dollar do you
want Focus Joe
you what do you do $1 million for 25%
[Music]
just because I love
you we're going to change the life I
never thought he'd go down it's never
happened before in Shark Tank history
when someone came in here for 400,000
and walked out with a million I'm really
excited to work with you make a huge
difference I'm so thrilled thank you
congats next up is a solution to a
common anxiety for electric vehicle
owners
[Music]
hi I'm Chris and I'm Josh and we're two
of the co-founders of spark charge based
in Somerville Massachusetts we're here
today seeking a million dollars for a 6%
stake in our company everyone knows
electric vehicles are the future they're
better for the environment and soon
they'll be everywhere but there's one
major thing keeping them from growing
faster range anxiety range anxiety is
the fear running out of charge in your
electric vehicle that's why I would love
to introduce you to the roie the world's
first and only portable modular and
Ultra fast EV charger the anxiety of
finding a charging station and the time
wasted waiting for a vehicle to charge
simply goes away when the charging
station comes to you no matter where you
are the RO has three core features
number one modularity units can be
connected together to give the electric
vehicle owner the exact amount of range
they want number two portable our
portable units can charge an electric
vehicle anytime and anywhere making any
location a charging station and of
course the most important factor speed
we can charge an electric vehicle at a
rate of 1 mile every 60 seconds so
sharks help us create a more sustainable
mobile EV charging infrastructure okay
and walk us through it so how would I
purchase that wa wait wait wait wait
wait wait yep wait wait one second I
don't know anything about this I'm out
thank you thank you so yeah it's really
simple so we actually sell directly to
businesses so we work with oems roadside
companies on demand companies and
service companies they use the hardware
and they go out there and they charge
electric vehicle owners who request it
so AAA would carry this is AAA a
customer right now we do have a program
going on right now the question is how
much does it cost you to make one of
those per module what do you sell them
for so per module our cost of goods are
roughly around uh 2500 and then
companies pay $1,000 deposit and then we
Char them 150 Buck monthly fee okay so
it's 150 bucks per month per module yep
yes in the past 6 months alone we've
done close to over half a million in
sales and we're on track to do over a
million in sales this year Alone by end
of next year we're predicting to do
close to 10 million in sales this unit
itself it's patented through and through
we developed it from the ground up we
also built our own manufacturing
facility in Buffalo New York we've also
been really strategic with our funding
but we've g a lot of Grants and awards
to get us there how much money have you
raised from investors versus grants that
you received I'd say we' probably raised
about 3 million in Venture and the rest
has been about Awards which comes about
2 million so probably about 5 mil very
smart and so what percentage of the
company do you guys own Now versus what
the investors own we have we have we
have a little over
50% but why do you believe you'll go to
10 million you went from 500,000 you
double that congratulations to 1 million
and now you're going to 10 exit why do
you believe you'll go to that so the
electric vehicle industry is growing
rapidly essentially the reason that
we're here today and that's a great
point is that we need to scale to keep
up with demand obviously you have to
burn some cash to get to where you are
now how much have you lost to get to
here uh since the beginning I think the
burn rate is just a little over about
four or four
mil so you guys are in a bad spot right
now no no no we have no you've raised 4
million right we raised 5 million total
okay and you spent four so you got a
million left correct and you've got in
order to grow you need to invest to
build more batteries correct all right
you're basically leasing these things to
people right
how much Capital do I have to tie up in
inventory that's probably the best way
to answer that question about a third
you're basically going to carry a third
of Revenue as least in other words you
own it it's on your balance sheet
wouldn't it be better to Simply sell
this and then let the attrition occur in
the market because I think that's a big
issue so you know we could sell it but
by releasing it out essentially we
control the asset and then when the
batteries come back we can also
repurpose them okay so so tell me again
what it cost you to make 2500 and so
your payback time 12 months
approximately 12 months how much are you
charging then if it's 12 months and it's
20 if it's $150 a month they pay $1,000
deposit oh they pay $1,000 deposit or is
an actual $1,000 of Revenue it's a
$1,000 deposit it's non-refundable so
it's not a deposit then it's actually
$1,000 payment yes I really love what
you're doing here and I also think that
you can have a direct consumer end of
this down the road where they can put in
their cars something smaller but will
give them that little bit oface of Mind
where they can get to somewhere where
they're safe so we are going to be
coming out with a consumer product the
technology inside is somewhat the same
it's just smaller size lighter package
more consumer friendly look what will
that retail for depending on scale we
might be able to get it for under, 1500
how many units are being used right now
today only 50 units you're back ordered
right now then correct I hate the least
part of the deal
I hate owning risk that part you lost me
there I'm out thank you Kevin I
appreciate it like Lor I think the big
opportunity is developing a consumer
unit but I find it really hard to
believe that you're going to deliver a
consumer unit for a th000 bucks or less
when your commercial units are thousands
and so for that reason I'm going to be
out like I said I think it's super smart
it is innovative Ian Mark is Mr
technology like I will always look to
him to understand things that I don't
actually understand when it this is more
a capital issue so are you interested
Mark I like the concept right so here's
the challenge right the challenge is
it's a lot of cash up front and you're
going to have to borrow money not raise
money because if you raise more money
that you guys aren't going to have any
ownership Left Right unless you think
it's going to be a multi-billion dollar
company and we do believe it's going to
be a multi-billion dollar company um
according to our estimations we can get
to profitability without having to raise
additional rounds by middle of next year
so here's the thing okay 6% is nowhere
near enough particularly for two of us
right so laor I think the best way to do
this is to let them make us an offer and
we either say yes or no so you know what
your number is instead of us trying to
figure out your number and us going back
and forth in the interest of time just
give us your number right and if we like
it we say yes and if we don't we say
no um how about this how about we do a
million dollar for 10% it's split 50/50
but we'll also throw in 2% advisor
equity and a board seat 2% each
U 2% each we can do 2% each so we would
go 500 500 7% 7% right five five and two
basically we have a deal we got a deal
we have a deal Char let's charge this up
we are going to do du I the chance of
you getting a deal was Zero no so I'm
just saying I'm just saying luck I think
the best person in this deal is Lori who
got a free ride off of Mark was back
she's a bottom people I like your style
Lori congratulations guys appr
guys it was the most exhilarating route
in my life we really want to dig in and
start building this business to be a
billion dollar business with the power
of Lori and Mark spark charge is now
fully charged to take over the world
people don't realize when you raise
money it's not an accomplishment it's an
obligation exactly but our media
celebrates it celebrate raising money as
if that's like profitability
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