|1||You want to help fight the COVID-19 pandemic|
|2||You are part of a community group and can see the issues around co-ordination|
|3||You are in isolation or lockdown and need help|
|4||You can see how after the pandemic this could be a new business opportunity for Car Delivery Network|
|5||Underpinned by a viable business with customers, revenue and post lockdown opportunity|
Facebook groups, churches, associations, and local community groups want to help. where they see need such as getting groceries, picking up medication or just calling to have a friendly chat. There are droves of good samaritans ready to help.
Currently, there's no infrastructure nor technology to organize everyone efficiently. We have never had to put in place a care network of this size or complexity.
Our original company is called "Car Delivery Network" — we've built the software to manage the delivery of vehicles from car manufactures to dealerships.
It works. The software platform supports thousands of car hauler companies using thousands of delivery drivers who deliver millions of vehicles to tens of thousands of dealerships in the US and UK.
We have repurposed our software to support these community groups, so thousands of community groups can ask thousands of volunteers to complete millions of tasks for tens of thousands of community members who need help in the US, UK, and NZ.
Reach is a very simple-to-use logistics-management tool for thousands of local community groups to react to community needs. The software helps community groups manage people who need help and coordinate people who can help. The community group manages its volunteers and its local tasks.
Reach uses the latest Web, Mobile and GPS technologies. It is based on our award-winning vinDELIVER and vinCARRIER platforms.
In light of the pandemic and the realization that our software could be repurposed to make an impact, we felt obligated to completely hold off on Car Delivery Network and focus on building Reach.
This not your typical investment opportunity — our goal is to not make money in the short-term. Our focus is to purely help during the COVID-19 pandemic. After this crisis subsides, we will resume normal operations of Car Delivery Network.
Sort of both, your investing in a viable business that is helping our communities. We are currently focused 100% on impact. Investing in this campaign means all of the funds will be used toward helping us develop tools to support communities and vulnerable populations.
However, your dollars also buy future shares in Car Delivery Network, a successful and innovative startup. You get to have your cake and eat it, too.
At the beginning of March, we were going to launch a Wefunder campaign to move into the used car auto haul space (see Q&A section for more details). By mid March , our world had changed. Carmakers closed their factories and started making ventilators and masks, vehicles stopped being made, and the virus spiraled out of control worldwide.
We found ourselves locked down and at home watching it happen, wondering what we could do. We knew we had to help. it is in our company DNA, our WHY.
This is a short term pivot to help, it will enhance our brand, our market standing, our sense of purpose, our company pride and it will present new opportunities.
None of this takes us away from the fact that we already have a great company with a good future and when the pandemic is over a very good chance to grow and expand significantly.
Reach has financial statements ending February 29 2020. Our cash in hand is $48,000, as of March 2020. Over the three months prior, revenues averaged $36,110/month, cost of goods sold has averaged $25,000/month, and operational expenses have averaged $15,770/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 bring life and innovation to automotive logistics. Car Delivery Network is helping, connecting, and simplifying the delivery of vehicles by providing technology to integrate the network of auto transport companies to improve visibility, efficiency and optimize capacity.
We have spent the last 2 weeks in March repurposing our software to help with the COVID-19 pandemic, (https://www.communitydeliverynetwork.org/) this show the flexibility of our team, the ability of our software and capability of our company to adapt and change.
In 5 years, we hope (but do not guarantee) to be the largest network of connected auto transporters, dealers and shippers in the new and used vehicle space providing 15,000 trucks and tens of thousands of companies access to vehicle delivery services. We have already captured 3,500 Trucks and have linkages with over 7,500 companies. In 5 years time Car Delivery Network hopes to be the voice of the carrier community.
Car Delivery Network, Inc was incorporated in the State of Delaware in June 2012. It is fully owned by the parent company, Car Delivery Network Ltd, which is based in the United Kingdom. All of the funds from this Offering will be used to fund Car Delivery Network, Inc.
Historical Results of Operations
Liquidity & Capital Resources
To date, the company has been financed with $574,633 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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 24 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
Car Delivery Network, Inc cash in hand is $48,000, as of March 2020. Over the last three months, revenues have averaged $36,110/month, cost of goods sold has averaged $25,000/month, and operational expenses have averaged $15,770/month, for an average burn rate of $4,660 per month. Our intent is to be profitable in 12 months.
Since the date of our financials, we have released two new software products opening up new opportunities in the industry. We went in a development cycle 2019 to create the new product and stopped sales activities while doing it. Revenues are back up in 2020.
We expect (but not guarantee) that revenues will decrease 50% as we develop the platform to help individuals suffering from COVID-19. After 3 months, we expect to revenues to rebound to $40,000/month. Expenses should remain about constant during this time.
There are no other sources of capital on which the company is relying.
Competitors may copy features and functionality which could impede growth. The Company has mitigated the risk by developing a unique 3-sided model that sets us apart as we can provide equal benefit from the smallest auto-transport companies with less than 50 trucks to the larger auto-transport companies with more than 50 trucks, and even the 3PL's, dealerships, shippers and brokers (non-asset-based) in our industry.
Our success is a virtual land grab. We need to capture and onboard as many carriers as possible to close down the opportunity for our competition to copy our model and create an alternative network.
The auto-transport community is widely distributed and fragmented. The largest segment is comprised of very small businesses (1-50 trucks) spread out all over the US. We will be focusing on reaching as many of them as possible and then gaining their attention long enough to explain our Why. The Company will rely heavily on our reputation as a company and the "word of mouth" buzz within the community.
The 3rd-side of our sales model, 3PL's/Shipper's/Broker's, may be reluctant to use our software. They consider carriers that haul their freight "their carriers" and frown upon them hauling other shipper's loads. The reality is, the carriers will haul for anyone if the load pays well and fits within their lanes of operation. The 3PL's/Shipper's/Broker's access to a large carrier network improves their ability for getting vehicles delivered. This access to capacity causes them to be protective of their carrier networks.
The customer base we are targeting could be resistant and/or reluctant to change from their current systems or technology they use today. This change can be viewed as cumbersome, time-consuming and/or expensive and resistance to change is a natural response.
Mobile apps and transport management system technology are fairly new tools in the auto-transport industry. We have experienced new software and mobile app companies (competitors) introducing new technology and systems on a regular basis. The industry is highly fragmented as there are very few standards within the industry. The lack of standards make it difficult to build a loyal following as the fragmented industry has created a melting pot of various mobile apps with non-standardized reporting capabilities, features and functions. Due to the fragmentation, a "me-too" model of function/feature equality from a competitive perspective is almost impossible to create making it difficult for consumers to compare one product to another. This can discourage them from making a decision to buy or change.
Large shippers in the auto-transport industry do not recognize our mobile app as being authorized or connected to their native in-house management systems. This only advocate's more fragmentation and drives small auto-transport companies to use the shipper's native/in-house software or mobile app technology instead of allowing the carrier to choose which software tool he likes best. It is not uncommon for small transport company drivers to have over 15 shipper apps on their mobile devices. To complicate matters, the shippers will mandate use of their native/in-house mobile app. The auto-transport company can use their app for "free" as it satisfies the data requirements imposed on the Shipper by its customer. However, the use and expenses related to using the app is not free but is being deducted from the rate to transport vehicles. The Company charges a per-transaction fee which is transparent but often leaves the carrier questioning why should he pay to use our software. This can create resistance and a barrier to conversion. As a result, our business, financial condition or results of operations may be adversely affected.
Our software often requires technical connections that have to be made to other systems used by the auto-transport company or the 3PL/Shipper/Broker. These technical requirements can hinder sales due to the lack of technical skills of the customer's IT department. The Company does offer assistance but does not have the resources to complete the work for them. This can create an unfortunate barrier to entry.
Purchasers will not be entitled to any inspection or information rights other than those required by Regulation CF. Purchasers will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information – there are numerous methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Purchasers. This lack of information could put Purchasers at a disadvantage in general and with respect to other security holders.
Purchasers will be unable to declare the Security in "default" and demand repayment. Unlike convertible notes and some other securities, the Securities do not have any "default" provisions upon which the Purchasers will be able to demand repayment of their investment. Only in a liquidity event, may the Purchasers demand payment and even then, such payments will be limited to the amount of cash available to the Company.
The Company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case the Company might need to reduce sales & marketing, support staff, developers, or other expenses. Were recurring revenue to decrease, further cuts would be needed and hurt the Company’s ability to meet its goals. Even if the Company raises the entire round successfully, we may need to raise more capital in the future in order to continue.
The Company’s revenue model may be impaired or change. The Company’s success depends mainly on its ability to receive revenue as earnings from the Company’s software. The company may generate but retain some or all of the earnings for growth and development of its business and accordingly, not make distributions to the shareholders. If the Company does not generate revenue, its business, financial condition, and operating results will be materially adversely affected.
The market for technology companies is not predictable. While we may be able to sell the company for its technology, client relationships, team or other factors, there is no guarantee that it can be sold, nor that it will become profitable, nor that it will reach an Initial Public Offering (IPO). Even if those do occur, there is no guarantee that investor returns will be positive.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Even if the Company is successful, an investor may want immediate access to the then net worth of the investment, but selling private securities can be difficult or impossible. In this case, an investor may need to wait until a liquidity event, and there are no guarantees one will occur.
The Company may have difficulty obtaining additional funding and the Company cannot assure you that additional capital will be available when needed, if at all, or if available, will be obtained on terms acceptable to the Company. If the Company raises additional funds by issuing debt securities, such debt instruments may provide for rights, preferences or privileges senior to the Securities. In addition, the terms of the debt securities issued could impose significant restrictions on the Company’s operations. If the Company raises additional funds through collaborations and licensing arrangements, it might be required to relinquish significant rights technologies or product candidates or grant licenses on terms that are not favorable to the Company. If adequate funds are not available, the company may have to delay, scale back, or eliminate some of its operations or our research development and commercialization activities. Under these circumstances, if the Company is unable to acquire additional capital or is required to raise it on terms that are less satisfactory than desired, it may have a material adverse effect on its financial condition.
The Company may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties.
Today our future success depends on the efforts of a small management team consisting of 2 salespeople and 1 support person. 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.
Already have a Wefunder account? Login
Don't have a Wefunder account? Signup