Joule Case

Thank you for the investment and the question. As we continue to position ourselves as an attractive acquisition we are expecting significant growth across our market verticals. The festival market is the simplest path to 3x+ post money valuation. For 2022, we will continue to supply to Insomniac (100M contract; 200+ events annually), CORT Rentals (1000+ events annually), and LIVE Nation (1000+ events annually). These events will lead to secured large scale inventory financing.  This will allow Joule Case to be successful without additional equity capital raises.    Food trucks, home backup, camping, photography, and facility backup are all exciting markets that we continue to see growth in sales. When events shut down in 2020, there was a preliminary focus on these markets and we grew them from $0 to over $200K in 2020. We are tracking to double those sales in the next 6 months while the primary focus remains on events.  Depending on how far Joule Case goes along the product roadmap before acquisition, we have several exciting technologies to integrate into the Joule Case product platform. Additional technologies, products, and patents have been identified to integrate Joule Case as the seamless energy/battery provider for power applications such as apartment or facility backup. I believe we will have acquisition opportunities in the near term from strategic customers but if given several years to develop these additional technologies that are already patented, we become a very appealing acquisition opportunity to Amazon, Google, Apple, Microsoft, and Facebook as they continue to push a connected home with devices that require reliable energy/power from a failing grid.

There were so many lessons! Many technical lessons learned that have made Joule Case a better product. We also learned the value of an immediate sale. R2EV required a very long sales cycle with large car manufacturers. When Joule Case started, we immediately started talking to our customers to ensure there was a product market fit that could be immediately validated with sales.

That would be greatly appreciated. Broadly speaking, our cost is around $0.66 per watt-hour of storage before tax breaks and local/federal incentives that can be up to 40% of the total cost in clean energy rebates. Installation costs vary depending on local costs but a ballpark net cost is $6-$8K for a system of this size and total tax incentives realized.

Glad to have you on the team! We will close this round on January 31st.

Great questions Peter. I am glad you like the name. We do too! Joule Case is leveraging battery packs from our vendors. Like Dell or Apple, we are not a battery chemistry or battery pack manufacturer. We have integrated several different battery chemistries into our platform as we can choose the best batteries out there as a result. Our battery supply is secure. We have been working with our largest battery supplier since 2017 and have establish a trusting relationship through the years. We currently offer battery/power rentals as a service for events to match the current business model of generators. Our new batteries have full IoT 5G capabilities for further data and monetization opportunities. In regards to the smaller battery question: Joule Case is continuing to develop additional products and technologies that will integrate into our product platform/architecture. I can't share all the details but keep an eye out for exciting announcements in the near future!

Great question. A small point of differentiation, we are a full Energy Storage Solution (ESS) and not a battery pack assemblers. Some of our suppliers are battery pack assemblers among power electronics, controls, chargers, etc. Our competition is Moxion Power, Portable Electric, and Spark Charge. Our competitive moat is our brand, marketing, G2M strategy, B2B sales relationships, sales contracts, and patents. We have now 10 patents granted and happy to provide the detailed list of each one. Additionally, our customers have to engineer/plan around a Joule Case power integration where we are a critical component to ensure power critical to business operations function. These B2B customers have a high switching cost that also increases our moat.

Absolutely! This would be a great application and our sales team would be happy to discuss further.

Great question Adam. We anticipate delivering the product over 5 years with the ramping up production with the new Sigma line immediately. The cleantech and battery storage space is very hot right now. Joule Case also has recurring revenue opportunities. I would anticipate a 8-10X on the topline.

The date is 10/2021 when the paperwork was filed but was funded in spring of '21. This also created the 10X stock split and converted the convertible notes. It was a pre-money valuation of $14.8M with a 1X liquidation preference non-participating.

Great questions. To answer your questions: 1. In early 2020, Joule Case raised over $1M in stock. This was at a $14.8M pre-money. No special liquidation preferences. 2. Joule Case will double our sales compared to 2020 with over $300,000 in 2021. 3. Joule Case certainly is a startup and launching a new hardware product takes some time. Increased sales and efficiency of scale shows that Joule Case can be very profitable. This is already proving to be the case. In Q3 of 2021 when outdoor events started to come back, Joule Case has a record breaking quarter. Specifically: a. Double the sales of any prior quarter in Joule Case history b. 83% gross margin on sales 4. Great question. Best case scenario Joule Case will require $3M in funding to be profitable. To achieve this, the large strategic partners we are working with such as CORT, Insomniac, and Toyota would place large orders for their power needs that could then be debt financed. This is already an ongoing discussion with all of these strategic partners. Generate Capital (first group to provide 20 year home solar loans) is interested in providing the debt financing. Worst case scenario, Joule Case would need $8M in funding to become profitable. This would mean we don’t get any debt financing. Both of these cases assume Joule Case is selling 500-4000 systems a month with a similar spend on marketing as a percentage of sales that we currently have. 5. Joule Case ideal stacking means each power solution is ideally sized for the application. This has meant our power systems are cost competitive with gas generators. But we have also learned there is a value/premium to the customer for being quiet, fume free, and pollution free. We certainly can’t charge 6X for Joule Case compared to gas generators but the messaging, branding, and sponsorship opportunities in having a green event is a substantial revenue driver for promoters. They can pay up to 6X compared to generators and still have a substantial ROI on that cost with a better message and sponsorship. “Clean power provided by Coca-Cola” for example. This is why Insomniac, LIVE Nation, and CORT are very interested in Joule Case.