Question 1

If you hit your goals here, how long do you expect it will be before your next round of fundraising? (We've gotten this question a few times, so posting on behalf of our investors.)

Accepted Answer

We believe we will not need to raise more equity again after this round. Our projections are that we will reach profitability and be cash flow positive by the end of the year. We recently closed a venture debt deal and have drawn $2 million, and are hoping to raise in the neighborhood of $1 million in our current campaign. We believe the combination of those two will comfortably bridge the time to profitability, while also giving us enough flexibility to aggressively pursue our new growt...

Question 2

Hi there - do these preferred shares include a liquidation preference? If so, can you point to the section of the Form C or subscription that states this? Thank you!

Accepted Answer

Yes, preferred shares have preemptive liquidation rights over Common shares. That statement can be found on page 12 of the Form C filing ("Document 1" on the SEC site). Thank you for the question!

Question 3

Your progress is noteworthy, especially in your rapid sales growth and successfully getting to profitability in the near term while selling your product at prices significantly below market incumbents. However, at this rate of growth, the competition will surely notice and res...

Accepted Answer

Thank you for your comments and questions. You have actually hit on some interesting dynamics in the industry that have existed for quite a few years, and give us some barriers to entry from competition. As hearing aids generally require a certain amount of service during the selling process (audiology, testing, tuning, etc), the manufacturers themselves have traditionally stayed away from selling directly to consumers. They see their strength as the development and manufacture of ever-better...

Question 4

Are there any protections from being undercut by international (e.g. China) devices and services?

Accepted Answer

Thank you, John - a good question. In short, yes, we see barriers to protect us on both fronts. First, on the product itself, where being undercut would primarily present itself as a lower price: When the deregulation in the over-the-counter ("OTC") market happened last year, we did, indeed, see several new entrants into the hearing aid market - primarily from lower cost regions, like China. However, the analogy I would draw to these products would be to the low-cost eyeglasses you can find a...

Question 5

Are you on pace YTD for $14m in 2024 revenue? What is your most recent ARR run rate? Would be helpful to hear back quickly as this is closing. Thanks

Accepted Answer

Thanks for the question and having a look at our campaign, Yosef. Yes, our current projections for 2024 are to be right at $16.0m in Gross Revenue, and $14.8m in Net Revenue. Our current run rate in May for ARR is $10.5m, backed by continued strong growth in our B2B segment.

Audicus

The pioneer in telehealth for hearing loss, providing customized hearing aids and care for 70% less

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