|1||CHANGE THE WORLD. Our technology is saving pets' lives today while collecting data to make a better world for the pets of tomorrow.|
|2||MAKE MONEY DOING IT. Our pet EHRs are giving the $206B pet care market data insights never possible before.|
|3||Over 15,000 pet records collected in the first year.|
|4||Industry Expert Founder with 13 years of hands on experience in animal rescue and sheltering.|
|5||Core team has expanded 300% in the last 3 months, bringing talent back to Lincoln, Nebraska.|
|6||Benefit Corporation that places priority on both purpose and profits.|
|7||Over 350 animal rescue accounts created in the first year.|
|8||Footprint in 45 states and 18 countries within the first year with no paid digital marketing.|
Pawlytics is a amazing company with an awesome mission. Lizz is a phenomenal leader and has put in the hard work to get early traction. I believe in Pawlytics is in a great position to be a great example of a benefit corporation. Pawlytics is driving social impact through helping pets find homes and families welcome a new member. There is a huge need to help rescue the animals that are at risk and properly help pet shelters with these issues. Pawlytics is definitely the goto company for Animal Rescue Software.
Like a lotus that blooms out of unclear water, Pawlytics was created. Always driven by our determination to save all the homeless pets, make boat loads of money, and have tons of fun along the way, we focused on hustling, experimenting, and learning from our failures until something just clicked.
At Pawlytics, we are creating electronic health records for pets to ensure top quality care across any spectrum of service such at the vet, groomer, boarder, or even the animal shelter.
Not only is this the year our Founder was born; but the start of a boom of growth for the pet industry - growing by approximately 4% year over year ever since, even during the 2007-2009 recession. Coincidence? We think not. The pet industry is expected to hit $99B in 2020 in the United States alone.
There are approximately 184 million pets in households across the US. Just like our own dogs and cats, over a 10-20 year lifespan these pets will regularly come into contact with vet clinics, groomers, boarding kennels, trainers, and for some, even the animal shelter.
276 million hours wasted to be exact, between pet professionals and pet owners trying to piece together each pet's history and medical records in order to provide the best care at each of these contact points.
It all started with a shelter dog named Rex and a realization that every human deserved to have a Rex in their life. When our team came together 4 years ago, we knew that saving homeless pets from dying alone in shelters would, along side profits, proudly drive much of our company's decisions.
Starting as a company called Family Pet Project, we had originally set out to keep pets from going to shelters by creating a platform for owners to re-home their own pets safely and successfully without taking them to the 'pound'. In an effort to get Family Pet Project off the ground (when we realized it was failing), we picked up the phone and called animal rescues and shelters across the nation to listen and learn.
400 phone calls later, and the first concept of Pawlytics was born. We heard the complaints of our animal shelter constituents loud and clear: software in their space was lacking. Turns out that keeping 5,000-40,000 pets housed, healthy, and placed in perfectly fitting homes each year is no small feat especially on limited budgets and human capital all while meeting regulations, standards, and inspections by the USDA and Department of Agriculture. Often, their outdated and cumbersome technology was getting in the way and costing employees precious hours that could be spent providing pet's with necessary care or working with adopters and donors. This very technology also coming at a price of $5k - $20k+ annually. We knew we could do better...and we knew we had to do better for the people saving millions of our companion animals each year.
So we set off on creating the best software for rescues and shelters. Turns out a lot of people believed in it too.
As we watched our dream grow into a reality, we knew that there was so much more to learn. We dove into our pet data and combined with our teams' industry expertise across the pet industry and technology sector, we realized a few things:
With starting by saving shelter pets, we gave ourselves the lowest barrier to entry into pet EHRs. How?
Many animal shelters, animal controls, and animal rescues have been operating with software that is cumbersome to use and with interfaces that confuse their key user demographic. Many of these options were built more than 30 years ago with little updates. Over the last 30 years, animal control and shelter processes and standard operations have drastically changed and their software has done little to keep pace.
The 3 images above are of technologies that currently owns a vast majority of the animal shelter manager market.
Designed to fit the exact workflows of our different types of customers by creating a completely unique user experience workflows depending on your industry and role. Animal rescues see limited data points and customization to cut down on set up and training time. Our animal control friends will see exactly what they need whether it's the officer in the field browsing old call logs or the dispatcher tracking the welfare of her officers in the field. Vet clinics will have a view that prioritizes medical history and behavior with clear alerts to drastic changes in a pet's measurable health.
- By building better shelter software, our platform will inherently save more pets' lives
- As our pet database grows, our accurate records will create incredible value for the rest of the industry:
- Vets and pet pharmaceutical companies will better track the outcomes of their treatments and patients
- Pet insurance companies will better asses risk and create more balanced health plans for pets
- Pet product manufacturers and retailers will have incredible transparency into their markets to create and distribute products in ways they never could before
A Few Use Cases:
- A dog gains 10 pounds between vet visits know right away to send low calorie pet food ads to that person
- Cancer treatment company for dogs can track data of patients without ever having to speak to the patient (can access shared data with primary vet provider)
- Pet hardware, such as smart collars and medical devices, could have accurate data to create AI that can get closer than ever in accuracy for what is "normal" health ranges for a pet across different breeds, sizes, etc.
Today, there is no one source for pet data leaving the industry to wade through fragmented data and attempt to do the best for our furry family members.
That's why at Pawlytics, we are unifying the world's pet data and transforming the future for pets and the people that love them.
Pawlytics has financial statements ending December 31 2019. Our cash in hand is $140,574, as of June 2020. Over the three months prior, revenues averaged $150/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $6,000/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.
At Pawlytics, we are creating electronic health records for pets to ensure top quality care across any spectrum of service such at the vet, groomer, boarder, or even the shelter.
In 5 years we hope to be the largest pet database in the world with the most robust and accurate history of companion animals, although it cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Pawlytics, PBC was incorporated in the State of Delaware in September 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $145,000 in convertibles and $30,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 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 12 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
Pawlytics, PBC cash in hand is $140,574, as of June 2020. Over the last three months, revenues have averaged $150/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $6,000/month, for an average burn rate of $5,850 per month. Our intent is to be profitable in 9 months.
In 2017 and 2018 we had received $62,000 in grant money which we could withdraw overtime as they were reimbursements. In 2018 we also won pitch competition money for $25,000. This is reflected in our revenue as it was non-dilutive money. In 2018 we were also pivoting the entire business model from a B2C to a B2B so you see our early type of revenue (retail sales and consumer adoption of pets) drop off with a gap in revenue (between 2018 and 2019) as we began building the new software our business model was pivoting into (the product in market today).
We expect (but cannot guarantee) our revenues to be $1500 in total over the next 3-6 months at $1/adoption on our current platform. We believe this current raise will help us get to substantially larger contracts in the $5,000-$20,000 range with the features we can release with this funding. This is only our next tier-up of customer and the tip of the iceberg. We expect our expenses to remain about consistent during the same period.
We *just* closed a check that will carry us 15 months at our *current* burn if we make no hires and do not move any faster. However, we of course intend to hire and make a lot of next steps to becoming the world's largest pet database.
The shelter software market is 80% dominated by 2 companies: PetPoint and Chameleon. We will need to find out how to extract pet data from their software to ensure customers can move to our platform with their old data. Other software companies in the space have done this previously so it is possible, just an unknown of which route we will use exactly.
A competitor of ours, ShelterLuv, raised $2M in investment from the largest foundation in the animal shelter space, Maddie's Fund, which will slightly inhibit their ability to promote our tool.
We use Clojure as a backend language to ensure we would easily manipulate data in the future. Although a powerful language, it is uncommon for an early company to use it so we will inherently have to spend more upfront on development costs.
Because we have a higher development cost, we have less room to spend on customer success reps. This can mean that we may not be able to onboard customers as quickly.
We are unsure of how many vet softwares will take part in data-transferability, meaning that ingesting data from other softwares may be a harder battle than anticipated.
Many shelter softwares are locked into 5 year contracts. Meaning that selling to municipal shelters will take a lot of digging to explore which contract are up for bidding again.
Justin Collier is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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.
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief. [Rule 201(z)(1)(i)]
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