|1||In the last 30 days DRONEDEK has raised over $400,000 to accelerate product development and testing|
|2||DRONDEK has exclusive patent rights in the US market for Secured Drone Delivery|
|3||We believe DRONEDEK will be the funnel to all delivery. We are the welcome mat to commerce|
|4||The DRONEDEK patent portfolio boasts the first granted patent in the drone delivery receptacle space|
|5||The DRONEDEK intellectual property represents 102 filed claims with the US Patent Office|
|6||DRONEDEK's not only a platform that you want to invest in but a platform that you will use daily|
Dronedek is a brilliant idea with almost limitless potential in what is the new normal market of online shopping and delivery. There will soon be a major shift in delivery method from trucks to drone delivery, and Dronedek is on the front edge in taking advantage of that shift (see attached https://www.commercialdroneprofessional.com/amazon-takes-to-the-skies-as-faa-gives-drone-delivery-pr...). The invention of the mailbox happened 162 years ago, and is basically the same today. Dronedek will take mail/package delivery receptacles into the future with its many beneficial features, including but not limited to: security to deter package theft, ability to keep warm deliveries warm (like pizza) and prescriptions cold, expandable receptacle, and drone re-charging feature. All these great features are covered under Dronedek's two US-issued utility patents (which are good until the year 2037). Importantly, the financial model is VERY conservative in projecting only 1% penetration of all residential and commercial addresses. That address market is a whopping 160 million in the US! Don't miss this incredible investing opportunity (for more info see the website, dronedek.com)!
Smart Phones, Smart Homes, Smart Cars. What About Smart Mailboxes?
DRONEDEK completes the last mile with our smart, secured receptacle technology. All of the value gained through the fast, green, convenient and cost effective strategy of delivery by drone or unmanned vehicle can evaporate when your package is compromised. Weather, animals, thieves and more can beat you to your item unless it’s safely deposited for you in your smart receptacle
Back in 2014, the idea of drone delivery was just being thought about. As Dan O'Toole, the founder of DRONEDEK, was returning home from an out of town meeting, his path took him down a rural 2-lane road. As he maneuvered his car down the endless paved road, he looked to his right to notice a drone flying beside him. As he watched the drone with fascination, he begin to wonder how a drone could carry a package to your door and how to safeguard said delivery.
Dan O'Toole had an idea. What separates an idea from reality is execution. Dan's belief is that when one person has an idea, ten people have the same idea. Upon returning home from his business trip, he worked daily for hours on end to add every feature and benefit that could possibly be added to the DRONEDEK Vision. Within a week, he filed for a United States Utility Patent. Now the waiting game had begun.
Patent Issued! DRONEDEK's licensing agreement includes the original 2017 patents awarded to Dan O'Toole. As a result DRONEDEK's license is for smart, safe and secured drone delivery and includes the first utility patent for secured drone delivery. As it would turn out, O'Toole's patents and DRONEDEK licensing agreement had beaten Amazon by just nine days, the US Postal Service by some two weeks and others by just 22 days. Since, the DRONEDEK licensing agreement has expanded by O'Toole's second granted patent in October of 2019 with additional patents currently up for examination with the USPTO.
Each day there are 100 million items purchased on the internet. 91% or 91 million of those items are 5 pounds or less, making them "drone deliverable". Parcel delivery is easily the single fastest growing facet of the logistics industry. Every day in the US, there are 1.7 million delivered packages stolen. As autonomous delivery becomes a "thing" there is a need right now for the convenience of smart, secure delivery, whether conventional or otherwise.
Enter DRONEDEK. Using drone delivery can reduce overall delivery costs on applicable packages, with potential savings within the shipping economy of $1 Billion every 11 days. In addition to this, greenhouse gases and traffic congestion can be heavily reduced.
DRONEDEK has the capacity to both ship and receive your items. DRONEDEK is a platform-agnostic product that is able to ship and receive via robotic delivery, aerial drone delivery, unmanned-vehicle delivery and of course conventional delivery. DRONEDEK features a variety of tech features to make it the most advanced drone delivery receptacle on the market. These features include:
DRONEDEK Market Opportunity
Consider that there are 160 million addresses and each day 4,000 new addresses are added. To these addresses, over 600 Million Items are delivered daily. Plus, DRONEDEK presents new opportunities for temperature-sensitive deliveries including food, drinks, pharmaceuticals, and more.
Secured Drone Delivery is gaining speed in the market with Federal Aviation Administration granting approval for certain drone operation. DRONEDEK's licensing agreement allows the company to commercialize secured drone delivery. The subscription based revenue model for residential and commercial business accounts includes the entire US market. The current market forecast is based on an ultra conservative 1% market penetration.
Our conservative revenue model does not currently include platform access fee revenue nor does it include our big data revenue stream.
Strong Patent Portfolio
All-in, DRONEDEK licensing agreement includes a combined 102 claims through its patent filings and licensing agreement. We believe DRONEDEK has the most comprehensive and robust patent portfolio in the drone delivery receptacle space. Our strong first-position patent licensing will allow us to negotiate and issue licensing opportunities and to collaborate with some of the largest companies in the entire world.
DRONEDEK is the smart mailbox for a new age of delivery. We ask you to come join us on our journey to making our product the gold standard for residences and businesses all across the United States. In a large and ever-expanding marketplace and a need for more efficient last-mile fulfillment, we believe DRONEDEK is the answer. With our strong patent portfolio at the forefront of this field, multiple potential revenue streams, and an experienced leadership team, we are set up for success. The sky’s the limit, so come fly with us!
Thank you for your consideration, and please view the Q&A below for more information.
DRONEDEK Corporation has financial statements ending April 30 2020. Our cash in hand is $364,990, as of September 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,000/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.
We are the patented safe, secure, smart drone delivery receptacle. Through the DRONEDEK Platform we are able to ship and receive food, beverages, pharmaceuticals and parcels. We are app driven and are feature-rich with several offerings including a UV treatment process to disinfect deliveries from Coronavirus and other viral hazards.
In 5 years we hope to have saturated 1% of the total addressable market (TAM) or 1,600,000 addresses. We hope to be accelerating our growth as drone delivery becomes commonplace and we believe the only receptacle solution to be DRONEDEK. These are future looking projections and are not guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
DRONEDEK Corporation was incorporated in the State of Delaware in April 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in April 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been primarily financed with $187,088 in debt and $416,600 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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
DRONEDEK Corporation cash in hand is $325,962, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,000/month, for an average burn rate of $1,000 per month. Our intent is to be profitable in 60 months.
Since the latest financial report dated April 30, 2020, we have raised significant capital through Reg D, 506(b), which we just recently closed out. We have also taken on additional liabilities, including: $107,438 for the DRONEDEK development contract, $50,000 accrued liability to Dan O'Toole, and $29,650 accounts payable to Dan O'Toole. This totals $187,088 in liabilities.
We expect to make no revenue over the next 24 months. Forecasted expenses over the next 6 months will be focused on research and development, and will fall in the range of $500,000 to $750,000 in accordance with the company's financial projections that include a 18-24 month pre-revenue phase. We will cover these expenses through the current Wefunder raise and supplemented with our past raise of $416.6K. Additional fund raising will follow the Wefunder raise to meet the company's forecasted capital requirements. We also plan to have two of our officers go full-time after our Wefunder raise.
We have a 7 year financial projection, and have an 18 - 24 month pre-revenue phase. In order to reach end of year 2 in our projections, we need around $5M. In year 3, we go live with revenue generation and subscription. Because it's a new utility, we expect there to be market adaptation. $153M total is needed to go to market in total over the course of the 7 years.
The company currently does not have any other capital sources that are readily available on which the company may rely upon at this time, but are actively pursuing multiple opportunities in the market.
At the end of May 2020, the Company executed a $200,000,000 loan agreement with Bashar Investments WLL, a Bahrain-based investment fund. The closing on the agreement is contingent upon the company procuring a UAE Central Bank Certified Surety Bond from a Dubai based Surety Company to stand as collateral for the loan. The company is no longer pursuing this financing option as of November 5, 2020.
Market Risks – As a new industry, the commercial market may not develop at the same pace and size required to execute DRONEDEK’s business plan.
Daniel S. O'Toole, John Ritchison and Richard B. Ohrn II are 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. However, 2 of the 3 officers will move to full-time upon funding.
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.
Regulatory Risks – There are certain regulatory requirements, including Federal Aviation Administration certifications for logistic companies, that may be required for DRONEDEK to execute the business plan.
Industry Risks – DRONEDEK requires commercial logistic supply chain and other companies to participate in fully developing the DRONEDEK business plan which may occur slower than anticipated, or may not occur at all.
Funding Risks – DRONEDEK requires significant funding to execute its business plan. The successful execution of the business plan may be delayed or hindered by the company access to future funding requirements.
Financial Risks – DRONEDEK’s use of assumptions and estimates, though are conservative and reasonable at time of preparation, may be materially different then estimates used in forward-looking financial forecasts.
Execution Risks – DRONEDEK requires a comprehensive organization and company infrastructure development including departmental support from sales, marketing, installation, customer service, technical, regulatory, human resources, accounting and legal to execute its business plan which may occur slower than anticipated.
COVID-19 can materially impact our business. It is unclear how long the COVID-19 pandemic will last and to what degree it could hurt our ability to generate revenues. For example, it could complicate our ability to procure materials and partnerships. There may be other effects stemming from this pandemic that are deleterious to our company which we have not yet considered.
Already have a Wefunder account? Login
Don't have a Wefunder account? Signup