Propel ip pitch deck 6.30.16

© 2016 Propel IP, Inc. All rights reserved. All concepts and images contained herein are the property of Propel IP. Patents Pending.

Pitch Deck

Propel IP, Inc.

May 19, 2016

Propel IP, Inc. is an emerging technology company in Raleigh, NC focused on creating unique products sold online and at retail to the North American sporting goods industry

Company is well positioned to disrupt the fishing industry with its Catch Commander® family of Bluetooth fish scales that work in combination with proprietary software and accessories

Company’s products will change the way the 2 million Super Anglers archive their critical fishing data with its Patent Pending technology to transmit data to your smartphone

Companies IP holdings will inhibit future competitors in this segment of the market

Introducing Propel IP, Inc.


Company has held several retailer presentations to top industry retailers

The nation’s leading sporting retailers, the top online retailers in the segment, and over 200 independent dealers have requested stock at launch

Company has exhibited at eight U.S. national and regional tradeshows

Catch Commander was recognized in an article as a best-in-class product at the iCast 2015, the world's largest National Fishing show

Exhibiting in the July 2016 ICAST show and expects to accept orders for Q3/Q4 2016 deliveries

Company has aligned with overseas manufacturer with domain expertise in digital scales and fishing products, and is preparing to commence tooling for mass production in Q2 2016

On April 15, 2016, the company successfully closed on a significant investment that will enable further development of the Catch Commander product

TRACTION


Target Market: 46 MM anglers in the U.S.

Super Users: Within the group of 46 MM active anglers, there are 1.2 MM bass focused, super users (comprising solely of the FLW and BASS league members) where these users are required to use a scale to compete in tournaments

Highly Dedicated Users: There are another 750,000 highly dedicated users focused on salt water, youth, and recreational angling who also possess scales

Estimated Number of Scales Sold in US: 800,000 units per year

Growth: The market for software supported fishing scales is estimated to grow several hundred percent per year for several years

Market Opportunity


Creating a fish log to track details about a catch is a time consuming and cumbersome process

Anglers use old dog-eared notebooks, a journal or software apps to manually input data about their fishing events

Anglers spend so much time manually entering data and then have to track down and retrieve saved data later

Existing market scales require the use of two hands, which entails more handling of the fish and diminished fish health

Market scales use a piercing hook to mount fish to scale contributing to fish mortality

In fishing tournaments most of the winning fish expire within days of physical weigh-ins

Tournament directors deploy considerable resources to track participant’s progress and deduce leader board information

Tournament anglers endure a multitude of fragmented systems for tracking results that have little continuity and little efficiency

Problems with Existing Market Products


Angler using this system weigh their catch and snap a photo in seconds to create a fish log of the event automatically capturing data such as GPS, Weather, Length, Weight, and a photograph

The Catch Commander’s Bluetooth fish scale and connected software system ensures that anglers no longer have to waste time manually inputting data about their successful fishing events into various disparate systems

Users will also be able to immediately retrieve saved data about past events locally or on the cloud further improving their fishing experiences. In addition to archiving their catch data locally, using the app software, users may quickly transfer images to share their “keepers” or data with friends and family

The scale includes a one-handed operation trigger that reduces fish handling and allows anglers to get the fish back in the water faster thus promoting improved fish health and includes a clamp to mount fish that does not pierce fishes body

Software and tournament management modules allow tournament directors to immediately digitally capture the participant data without a physical weigh-in process thus improving survivability of the catch

Removing the need to manually track, collect and analyze ongoing results into fragmented formats will improve the experiences of tournament administrators and participants from participant check in to digital weigh-in

Catch Commander Solution


Propel IP seeks to stock product with large national sporting goods chains, regional retailers, online retailers and smaller independent dealers

Leading retailers who have expressed interest in obtaining product at launch include Cabela’s, Dick’s Sporting Goods, Bass Pro Shops, and Field and Stream

Online behemoths such as Tackle Warehouse and Tackle Direct have requested stock at launch

Hundreds of small independent dealers with one to six stores have also requested stock at launch

Sales Channels


Core customers and potential market influencers are advanced or serious anglers

Grass roots local, regional and national marketing programs to target 1.2 million Super Users plus 750k highly dedicated users

Exhibit, sell and provide product as rewards for 50,000 domestic fishing tournaments each year

Local, regional and national fishing pros have expressed interest in marketing product

Revenue Drivers


The market niche of fishing electronics products has several national market leaders

The market leaders include Rapala-Normark Group (Minnetonka, MI), Pure Fishing’s Berkley Brands (Columbia, SC), Lowrance (Tulsa, OK), Johnson Outdoor Marine Electronics Division (Racine, WI), and Garmin (Olathe, KA)

The company is aware of Connect Scale a competing product that launched approximately two years after company filed patents for the product

Company has explored the competing product and found the scale to be a common market design and existing model that was supplied for 10+ years without the blue tooth componentry

Executives of Connect Scale have been made aware that their product may potentially infringe our patent if awarded as is currently submitted

Company sees this as an opportunity to potentially license the technology to Connect Scale

The Competition


The advanced hardware and software solutions will become a dominant, stand-alone product within the specialty-sporting segment.

Our sustainable competitive advantages include development time and expertise in the creation of the proprietary product that seamlessly combines a functional fishing tool with a smartphone based software solution including product mechanicals and firmware

Aggressive intellectual property strategy composed of several utility patents and patents pending covering the scale device, the device in combination with a smartphone, the app software, and an advance unit with on-board camera. US. Pat. No. 7,173, 197 ; Utility Applications 14/252,369 and 14/210,686

U.S. Trademark Application No. 86/492,345; Mark: CATCH COMMANDER- Filed: December 30, 2014

Competitive Edge


Desired Transaction: $300,000 financing required to launch the Catch Commander in a variety of distribution channels

Finalize design, engineering & software.

Purchase die/tooling required to manufacture initial order.

Stock inventory and ship product to list of buyers who have requested stock

Further develop website and marketing programs to enable a robust direct-to-consumer sales

Investors: Thomas Wye, Blue Flip, LLC.

Use of Funds


Robert A. Jones, Owner & President: Rob Jones is the Owner and President of Propel IP, LLC. With 22 years of experience in manufacturing, engineering management, design management and client interface, he brings a measured, analytical approach to the team dynamics. He graduated in 1992 from North Carolina State College of Management. He specializes in quality control, product safety regulations, intellectual property matters, supply chain management. He has 20 years of experience working with retail and business clients and coordinating with overseas offices and manufacturers to exceed client expectations.

Brenda S. Jones, Chief Executive Officer: Bryn is the CEO and creative leader of Propel IP, LLC. She has been a fixture in the product development arena since 1983, with a focus on retail product launches and improving patient education initiatives for disease awareness. Her passion, enthusiasm, and inventive nature have allowed her to provide clients with the most unique programs and product inventions that helped catapult her clients’ brands to blockbuster recognition in the US and Internationally. Working with some of the world's largest brands, she was a strategic partner for over 600 product launches and line extensions. Her Fortune 100 clients included Target, Michaels, Disney, Wal-Mart, Pfizer, Astra Zeneca, and Glaxo Smith Kline. In 1990, she launched her own marketing company Adstracts, where she was CEO for 20 years. Adstracts built infrastructures in Hong Kong and mainland China to directly support and manufacture all client projects. She has extensive experience in operations and business analysis. Bryn has been awarded over 25 patents with several pending.

Management Team


Dickie Herbst, Chief Operating Officer: In 1999, Dickie founded a fishing company XTOOLS LLC that designed, manufactured and sold floating fishing accessories. After building an internationally recognizable brand with 31 SKU’s in the product line and sales of $3.6 million, he sold the company in 2006 to Shakespeare/K2, a Jarden company. As part of the sale of the company, he was named the XTOOLS Brand Manager for Shakespeare Fishing Tackle in Columbia South Carolina until 2008. His primary focus continues to be working with entrepreneurs, developing and packaging new products, sourcing and managing manufacturing & production, building brands, developing go to market strategies, PR strategies, selling products into retail markets, evaluating IP and raising capital. To date he has helped raise over $10 million investment dollars for start-ups.

Mike Blocher, Director Marketing: With a strong background of 19 years in sales and marketing in the outdoors industry, Mike is well versed in a variety of tasks such as advertising strategies, product promotion, sponsor procurement, publishing and media relations. From 1997 to 2005 Mike has been a part of four startups in the fishing industry (Sports USA Group, eAngler.com, Uneek Sports Group, and Xtools LLC). Each of the four companies were later sold to larger organizations within the industry. Since 2005 to present Mike has started, and still operates, the largest grass roots tournament circuits in the state of Florida (Xtreme Fishing Series). The XFS consists of both bass and redfish events (over 150 events a year) that ensure total state saturation.

Management Team Cont.


Legal: Jesse Jones, Forrest Law Firm. Wyrick Robbins, Larry Robbins

Intellectual Property: Mike Sajovek & Needham Bodie, Myers Bigel Sibley & Sajovek, P.A.

Accounting: Douglas Swanek, CPA

Product development, Corporate Strategy and Manufacturing: Dickie Herbst

Brand Development & Marketing: Mike Blocher, MadFish Mktg., Brand 1111

Retail: Russ Reighley, Retail Consulting & Operations

Financial: Crescent Green Financial Management, Cary NC

Advisors


Pro-forma Financial Summary


Propel ip pitch deck 6.30.16

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