Shark Wheel reinvented the wheel. Literally. Scientifically proven advantages.
The Shark Wheel was born from a scientific discovery made by Shark Wheel inventor, David Patrick. Once the wheel was found to have advantages compared to a traditional wheel, it was clear that a major business opportunity existed.
Gary has management and business expertise in running companies for over 35 years. He has served as the Senior Vice-President & Regional Manager for the world’s largest real estate company, Coldwell Banker. He is involved in all Shark Wheel dealings.
A former ATP Tour pro player for 10 years. No stranger to hard work, sacrifice and success. He handles all day-to-day business duties, including patents, business development, licensing deals and much more.
Chief Technology Officer
David reinvented the wheel. Literally. David started two highly successful companies multi-million dollar companies from the ground up. Shark Wheel is David's third startup company that was born from his groundbreaking scientific discovery.
Pedro has won two Emmy's and his credits include Ironman, Batman, Star Trek, Pirates of the Caribbean, Spiderman, Grey's Anatomy, Nip/Tuck and much more. Currently, Pedro builds all of Shark Wheel molds and is the head of the prototyping division.
At multi-billion dollar company, Intex, Tom directed sales and marketing activities, followed by a Director of Sales position at Wham-O. Tom focuses on business development opportunities for Shark Wheel.
Sales - Mass Market
Chad has a wealth of experience with product and brand development working for Toys R Us, Cannondale, and Harley Davidson just to name a few. His connections with mass market retailers, distributors, & Asian manufacturer sourcing is second to none.
Graphic Designer with 20 Years of Experience Masters degree in Computer Science, Masters degree in Leadership and Management Expert in 3D modeling and visualization Eddie is a great asset to the Shark Wheel team.
Jack is involved with shipping and receiving at Shark Wheel. Jack also builds out skateboards and manages shipping for every order. Additionally, Jack performs quality control testing on wheels, as well as engineering duties under Pedro's tutelage.
Samantha takes care of all customer service needs at Shark Wheel. From emails to Amazon, to phone calls, Samantha ensures all Shark Wheel customer needs are responded to with the utmost care
Steven works on a wide variety of business development topics including: product distribution, licensing deals, contract negotiations, marketing, financing opportunities and overall global company strategy.
Highly motivated and innovative Anderson MBA marketing leader with 15+ yrs experience in consumer products including health & beauty, social media and international assignments. Proven record of driving superior results for global brands.
Professor Mark Alpert
Professor Alpert’s current position is Foley's Professorship in Retailing, Department of Marketing Administration, Graduate School of Business, The University of Texas at Austin. Professor Alpert has been featured in dozens of academic books.
Larry B. Charles III
Larry has been involved in CAD design since he graduated at Airco Technical Institute for CAD/CAM technology in 1985. He received a certificate from Go Engineering in 2002 for Advance Solid/Hybrid Modeling. Larry creates all CADs for Shark Wheel
Why reinvent the wheel? For 5,000 years the wheel has been the go-to design for most types of transportation. In fact, no one considered there could be a better design. The circular wheel was always considered the final design with no room for improvement.
Enter Shark Wheel inventor, David Patrick, who refused to accept the status quo. Not only did David create a shape that was drastically different, but he envisioned the shape possessing inherent advantages built into it. His search to improving the wheel was an uphill battle against industries that were not used to change. He needed to prove his idea was revolutionary.
I met David through my tennis coach who thought I could help him build a business around his invention. As a former professional tennis player on the ATP Tour for 10 years, I was no stranger to hard work, long hours, and relentless determination. I immediately saw the vast opportunity in joining forces with David to help bring the sine wave wheel to life. I imagined a skateboard company introducing a new wheel where the skater is safer going over debris and other rough terrain. I imagined a farmer whose tractor creates unwanted trenches in the field and being able to help that farmer save money and not dig a trench with our wheels. I imagined a wheelchair user having the freedom to go more places without rough terrain standing in their way.
Shark Wheel is a company located in Lake Forest, California dedicated to making the most unique, innovative and technologically advanced wheels in the marketplace. The Shark Wheel is flat on six sides and displays many scientifically proven advantages compared to the traditional wheel. Having won multiple international competitions in the skateboarding industry, the Shark Wheel has proven to be a high-performance product.
The patented Shark Wheel is a perfect fit for transportation use including wheelchairs, strollers, wagons, farming equipment, military applications, ATV vehicles, shopping carts, tricycles, hand trucks, printers, toys, iv poles, casters, roller skates, luggage, forklifts, office chairs, wagons, vacuums, hospital beds, ambulance cots, other medical equipment and much more. Please see our Shark Wheel Industrial Products section below to learn more.
Shark Wheel Company Structure
Shark Wheel Inc is the parent company that holds patents. There is currently one subsidiary that operates underneath called Shark Wheel Skate LLC. All investors will take ownership in the parent company and be a part of every wheel market Shark Wheel ever enters into. Investors will own Shark Wheel Skate and any other subsidiaries that may be created in the future.
Currently, the most likely scenario is to sell pieces of the company. For example, Shark Wheel could sell the rights for its stroller application and receive a large cash sum. But, Shark Wheel would still own 99% of the other markets it wishes to pursue.
Conversion of Company to Delaware C-Corp
Shark Wheel converted to a Delaware C-Corp (from a California LLC) One of the biggest advantages of the conversion is that it allows Shark Wheel to take advantage of IRS Code 1202. The conversion started a 5 year clock (December 2023 completion) that allows Shark Wheel to sell the entire company and allows for profits to be tax free for all investors. To understand IRS Code 1202 in more detail, please click here.
Shark Wheel's Valuation History
Shark Wheel has grown from*:
*$10 million valuation in Q1, 2014
*$15 million valuation in Q2, 2017
*$25 million valuation in Q1, 2019
*Previous valuations were in association to previous offerings, and determined by the company.
#1 Material Handling - Pallet Jack/Forklift
Q1, 2020 Launch
This is Shark Wheel's largest deal that is imminent. Nearly 4 years of R&D, scientific testing, and customer acceptance testing has brought Shark Wheel to final contract negotiations. Five contracts have been offered to Shark Wheel in 2019. Negotiations are still ongoing. Although it is not certain as of the time of this writing, Shark Wheel anticipates signing a 5-year deal worth over $10 million before the end of the year. Shark Wheel improves longevity in this large replacement wheel industry in which many major companies change their pallet jack wheels daily.
Longer Life: From 33% to over 200% longevity advantages depending on various factors. Shark Wheels (540 degrees) have more surface area than a traditional wheel (360 degrees). The design of this wheel allows heat to escape more efficiently, which is the leading cause of wheel failures in this industry.
Rough Terrain: Ability to go over more obstacles and debris. The sine waves tend to push small objects out of the way
Approach Angle: Unique 30-degree approach angle lessens shock to operator and deflects small objects
Less Charging: Up to 60% less friction touching the ground results in less charging and less downtime
Shark Wheel already has an issued patent for its general wheel invention, but has already filed multiple patents for this particular design in the material handling industry.
Shark Wheel will sell into Classes 1-5 of the material handling industry:
Class I: Electric Motor Rider Trucks
Class II: Electric Motor Narrow Aisle Trucks
Class III: Electric Motor Hand Trucks or Hand/Rider Trucks
Class IV: Internal Combustion Engine Trucks
Class V: Internal Combustion Engine Trucks
Signed licensing deal. Smart luggage under the SkyValet brand and under the Harley Davidson brand launched October 2018.
SkyValet luggage launched in 2019 with tens of thousands of units already purchased.
Shark Wheels for swiveling, rough terrain and light weight
Charge your phone with USB ports
Double zipper for enhanced security
GPS tracking - no more lost bags
Magnetic openings for quick openings
Built-in scale to prevent overage fees
Controlled by an app on your cell phone
Click the below link to see the wildly successful campaign featuring Shark Wheels still available for purchase:
The most recent to launch is Samsonite golf luggage. Shark Wheel always looks to establish itself with industry leaders. To be associated with the Samsonite brand name that is #1 in the industry is the start of many things to come.
Also, our Harley Davidson luggage is selling now at Harley Davidson dealers across the United States, as well as Amazon. See the Harley Davidson-Shark Wheel promo video below:
#3 Central Pivot Irrigation - Farming Wheel
Shark Wheel won a government grant through the National Science Foundation in January 2018 . The grant was for $225,000 to develop a state-of-the-art wheel for the central pivot irrigation industry. After performing extensive customer discovery interviews and graduating through the government's I-Corps program, Shark Wheel learned what the market desires in a wheel:
Minimize rutting (the industry's largest issue is digging a trench)
Non-pneumatic tire that can never go flat
Modular design that makes maintenance easier and more cost-effective
Enough traction to traverse clay-based and sand-based soils
Priced with the current industry sweet spot
Shark Wheel built a wheel according to what the customer desires. The test was a success in 2018 and Shark Wheel applied for the Phase II portion of the grant. In Q2, 2019, Shark Wheel won Phase II of the grant for $724,313 to optimize the wheel and bring it to commercialization.
Shark Wheel already has a signed licensing deal with one company in the industry and two LOIs with industry leaders.
Retail prices are over $1,000 per wheel. Early estimated annual revenue $10+ million per year. This is a very rough assumption based on current data of selling over 16,000 wheels annually comparable to the leading technologies in the market. Agriculture may be Shark Wheel's largest industry moving forward.
The Shark Wheel is named after the shape of shark jaws and through many iterations, Shark Wheel created another biomimetic design for its tire based on the shape of seagull wings. The flexing non-pneumatic, modular lugs of the tire design approximated the flotation of a pneumatic tire. The sine wave shape of the Shark Wheel was placed in the standard tandem configuration on central pivot irrigation machines and the result was a wheel that did not go over the same track as the wheel in front of it. The front wheel moved left-right-left, while the rear wheel moved right-left-right effectively creating a helix shape in the soil. In contrast to a traditional wheel that continues to move along the same track over and over again digging a rut, the Shark Wheel disrupted the soil in a snake-like shape, while the rear wheel pushed the soil back to where it began. This greatly minimized the industry-wide issue of rutting. Shark Wheel estimates an average farmer can save over $27,000 by switching to a sine wave wheel geometry because of less down time due to flat tires, less rutting and greater crop yield.
#4 Printing Industry - Shark Wheel Tape
Shark Wheel's newest innovation. When Shark Wheel started the company, a list of industries was made. It was a long list ranging from small luggage wheels to large farming wheels and many in between. Wheels for the printing industry made it onto that original list. Shark Wheel was recently presented with information that flexo printers, wide web printers and narrow web printers would be a perfect entry point for the technology. In researching these machines, it was clear these printing machines often sell for hundreds of thousands of dollars. Clearly companies would not buy these machies with high frequency. That would mean Shark Wheel would not see high volume purchases. The idea seemed to come from the ether, but the decision was made to create tape. Yes, tape. Shark Wheel never imagined manufacturing tape.
The idea was to outfit all existing retraction rollers (wheels on the machines) with Shark Wheel Tape. Tape would be inexpensive for businesses with these printers to buy. Tape would eventually fail and buyers would need to replace it with more tape. And the hypothesis that Shark Wheel Tape would solve one of the industry’s largest issues was the driver for us to move it to the top of our priority list and begin testing.
Problem and Solution
In the printing world, a spool of material (could be a newspaper, labels printed on everyday food products, etc) moves over retraction rollers, where the material is printed on. After the printing is completed, the material moves over more rollers before feeding into a final printed spool. All of this occurs in one machine with 20-30 rollers on average.
The issue: the faster the material goes through the machine, the more the material moves off-center. (To envision this, think of a printer at your home or work where the scanner or the printer starts printing paper at an angle and gets jammed) This is a huge problem and the only way to mitigate this is to tension the material. This means that tension rods stretch the material tightly on the long ends so the material is forced toward center. The stretching of the material creates a whole host of other problems where the printing has to be reconfigured and many other things are compromised. Overall, the issue of centering makes printers have to be tensioned.
Enter Shark Wheel Tape. The hypothesis was that the left-right-left-right oscillations of the sinusoidal design would naturally push the material toward center. The same way a human walks with an alternating gait averages to walking perfectly straight. The same way the left-right-left-right shape of the Shark Wheel averages to perfectly center and the wheel moves effectively in a straight line. If we could outfit all existing rollers with tape that has a raised Shark Wheel pattern on top, the material would only touch the Shark Wheel portion.
In the past few months, Shark Wheel’s first test on prototype 1.0 was conducted. Tension was put on the lowest setting and the machine speed was turned up high. The result? Shark Wheel Tape produced a 20% improvement over every other solution that exists in the industry today. Shark Wheel will optimize from here to hopefully create more improvement, but this significant improvement means the tape is ready for commercialization. The tape was launched in September 2019 at the Labelexpo in Brussels, Belgium.
Shark Wheel Tape Animation
Multiple Shark Wheel Tape Rollers
Printing Machine with Shark Wheel Tape
Zoomed in Shark Wheel Tape in Action
#5 Medical Applications
Developing wheel with one of the industry leaders. Licensing deal proposed. Prototype version 1.0 complete, currently going through testing.
Current ambulance cots have issues going over sand at the beach and traversing other unfavorable terrain. The Shark Wheel is considered an off-road wheel and performs best in challenging environments.
In the medical industry, Shark Wheel has opted to seek licensing deals. Shark Wheel is not interested in manufacturing in this industry and dealing with strict regulations and testing procedures.
Developing wheel with one of the industry leaders. Licensing deal proposed.
As mentioned above, in the medical industry, Shark Wheel has opted to seek a licensing opportunity. Shark Wheel is not interested in manufacturing in this industry and dealing with strict regulations and testing procedures.
Wheelchairs (Powered and Manual)
Shark Wheel believes it has reached the final design (not shown here so right to patent is not violated) and the wheel is currently being tested by an industry leader. Shark Wheel is in development on the front wheels for wheelchairs, which is the first point of contact for the wheelchair user.
Industry leader will begin testing soon for a 2020 launch. Initial tests show ability to traverse rough terrain and ability to swivel better than traditional circular wheels.
#6 Office Chairs
Recently, Shark Wheel has begun seriously prototyping office chairs. Based off of luggage caster wheel performance and other caster testing, Shark Wheel believes this is a project worthy of a high position on the prototyping list. In-house testing has shown clear performance advantages for office chairs and other wheeled-furniture applications.
The team is currently hard at work developing casters for use on:
Industrial casters for carts
Tennis ball carts
Many of these designs are under strict NDA and cannot be shown publicly yet.
#8 Skateboards/Roller Skates
Skateboards Nearly all revenue to date has come from skateboard sales alone.
1. Shark Wheel Skate
Shark Wheel Skate LLC (subsidiary owned by Shark Wheel, Inc.) controls all Shark Wheel skateboard sales
Nearly all revenue generated from May 2014-Present is Shark Wheel Skate LLC sales
Over 30% growth year-over-year.
Distribution in over 20 countries
54mm, 60mm, 70mm, 72mm and soon-to-be 95mm wheels in the product line
Roller skates and roller skate wheels currently in production
2. Fathom by Shark Wheel
Mass market/specialty store arm for Shark Wheel
Manufactures and sells plastic skateboards, wooden skateboards and wooden longboards at a lower price point. All parts are sourced from China
Fathom by Shark Wheel was created to enter the mass market at a lower price point without damaging the Shark Wheel brand. Wheels will have the same shape, but will say Shark Wheel Jr. or Fathom by Shark Wheel (which is now trademarked) on the side of the wheels and/or packaging
Fathom by Shark Wheel is currently seeking purchase orders from many other retailers around the world. Shark Wheel Jr. is already in Walmart and Fathom by Shark Wheel just received its first order from Big 5
Fathom by Shark Wheel's products are sold domestically and internationally
Selling OEM to various companies since 2017
Partnership with KaZAM, another Shark Tank alum. KaZAM has placed purchase orders of tens of thousands of skateboards to date.
During this campaign, our electric skateboard will launch. We have been working on a top-of-the-line performing board and it is finally ready for production.
Watch Shark Wheel riders go over rough terrain in the video above
Scientific Product Testing
Test I - San Diego State University
The Shark Wheel has been scientifically tested at the San Diego State University Mechanical Engineering Department.
In apples-to-apples testing, The Shark Wheel was found to have a 15% longevity and 15% speed advantage. Also, frictional tests were performed and some of the data is seen below showing a significant advantage compared to a traditional wheel.
Tests were performed and the testing rig (seen above) was designed and constructed by a team of engineering students at San Diego University, Mechanical Engineering Department. Testing has been completed as of December 2017.
The dynamic testing outlined in the following report was conducted at approximately 720rpms(17mph).
Conclusion Test I
At a load of 30lbs the Shark Wheel demonstrated an average of 35.52% less rolling resistance at speeds ranging from 0-650rpms (approx. 15.5mph). When loaded to 45lbs (per wheel) the Shark Wheel demonstrated 60.92% less rolling resistance.
Rolling resistance, also called rolling friction, is an important factor in many industries.
Test II - Conducted by Major Wheel Manufacturer
Another scientific test done by the largest skateboard wheel manufacturer in the world. They compared Shark Wheel to the leading wheels in the market in an apples-to-apples test. Same diameter, same durometer (hardness), same material.
Conclusion Test II
The Shark Wheel showed a 15% rebound advantage. Rebound translates directly to speed. In the abrasion resistance test, Shark Wheel demonstrated a significant advantage as well. The lower the number in the abrasion resistance graph, the better it performed.
In separate testing at a Canadian test facility, the Shark Wheel exhibited a longevity/wear advantage.
Tests performed by the German tv show, Galileo (similar to the Discovery Channel), found advantages in rolling resistance and off-road performance. The episode aired in December 2016.
Most recently, our material handling industry partner (pallet jacks, forklifts), completed 3 years of scientific testing and customer acceptance testing with a Fortune 50 company. Scientific testing showed a maximum of 600% longevity advantage (3 years of testing) and a real world test of 200% advantage.
Shark Wheel has been successful obtaining grants to date. Shark Wheel has won 3 out of 4 grants it has applied for and believes it is a good business decision to seek more grant opportunities.
The following is a list of awarded grants:
FedEx Nationwide Small Business Grant Winner, 2015
SBIR National Science Foundation Phase I grant ($225,000). Won in January 2018. (partnered with major company we cannot name per our NDA)
SBIR NSF Phase II grant ($724,313). Won in April 2019. (partnered with major company we cannot name per our NDA)
Shark Wheel Strategy - The Domino Effect
Shark Wheel has primarily been a Research and Development company since 2014. Entering the skateboarding industry was the ‘low-hanging-fruit’. It was a market with a low barrier to entry, a market in which consumers purchased wheels as a standalone item, and a market to act as a proof of concept. Shark Wheel proved the interest in the market and that the wheel is truly high-performance by winning several international competitions. Entering the skateboarding industry was also a way for Shark Wheel to pay the bills early on. Initially, it was a necessity for Shark Wheel to prototype various wheel sizes in different industries. There was much to learn about how a sine wave shaped wheel works under load, while swiveling, with different amplitudes and frequencies, and in various sizes and iterations. Shark Wheel had to prove though scientific testing and real-world testing that the shape worked well and using certain factors, outperformed the circular wheel.
Shark Wheel has completed products for skateboard wheels, longboard wheels, luggage wheels, pallet jack wheels and most recently printing tape. Shark Wheel plans to extrapolate its current designs to enter other similar industries. There will not be a need to continue prototyping any further for these congruent uses. For example, now that Shark Wheel completed its luggage wheel, it feels confident it can immediately license its technology to an office chair company without the need for further prototyping. The wheels in these industries are very similar and Shark Wheel plans to sign paperwork with all conceivable industries that would use an approximate 58mm wheel in a similar configuration. Even industries that scale up or down the size of the wheel in a similar configuration would work as well. Shark Wheel plans to sign licensing deals with scooter companies and other industries that use wheels similar to skateboard wheels. There would be no delay here either, as the design is considered final. No further prototyping is necessary.
The same can be said for pallet jack wheels. Any industrial application that uses a remotely similar wheel is ready for market with a Shark Wheel. The markets are vast in the industrial sector. Once Shark Wheel finishes prototyping its ambulance cot wheel, the market possibilities open up greatly. Dozens of industries use this particular configuration and Shark Wheel plans to exploit the completed design in as many industries as possible, as quickly as possible.
Shark Wheel will not have large capital requirements using this strategy. It will primarily be a licensing entity. The following list is a summary of Shark Wheel’s strategy moving forward.
Skateboarding and roller skating are the only markets that Shark Wheel plans to build a brand, manufacture and warehouse inventory.
Shark Wheel will license its technology to the vast majority of industries.
Shark Wheel will license to companies that have specific testing requirements.
One example is the ambulance cot company (name withheld for disclosure purposes). They requires high-level medical testing equipment and Shark Wheel will not do any forms of additional testing.
Markets in which the wheel is assembled at the same factory as the final product.
One example is Athalon (name included because deal is signed). Athalon has already put Shark Wheels on Harley Davidson, Samsonite and SkyValet branded luggage.
Industries that do not have a replacement wheel market.
One example is strollers. Consumers do not replace their stroller wheels.
Shark Wheel will license its technology to companies
Shark Wheel will only manufacture under certain conditions.
Each company must agree to warehouse Shark Wheel’s manufactured product in order for Shark Wheel to sign a Master Supply Agreement.
Shark Wheel will not obtain large facilities to warehouse large amounts of inventory.
Shark Wheel aims to work primarily with #1 or #2 in each market and sign an exclusive agreement.
Shark Wheel will determine on a case-by-case basis if it is more advantageous to manufacture or license.
Shark Wheel will arrange terms with the manufacturer so Shark Wheel does not need to float funds for inventory purchases.
Additional Market Opportunities
Projects on Hold/Just Activated
The following are projects that Shark Wheel has signed terms sheets with/in talks with that have been put on hold until the above projects have been completed:
Wagons - wagons were just recently activated
Walkers - one of the industry leaders
Kayak/Stand Up Paddle Carts - one of the industry leaders.
Office Chairs - one of the industry leaders, prototyping just activated
Military Cases/Coolers - one of the industry leaders.
Oil/Gas Industry (Roller Conveyance) - one of the industry leaders.
Vacuums - one of the industry leaders.
The following are markets that Shark Wheel has identified an advantage in, but currently has no traction.
Notable Milestones & Accomplishments
Aired on the most watched season finale in Shark Tank's history. Over 10 million Shark Tank viewers to date
Aired on Discovery Channel for reinventing the wheel
Filmed and aired on Galileo TV in December 2016 (Discovery Channel of Germany)
Aired tv show, Xploration on FOX
Aired on 3 FedEx Commercials to date that can be seen above in the media section
Issued patent. Shark Wheel received its US patent in October 2018. Originally filed in November 2012, Shark Wheel filed a continuation to strengthen its patent and finally received issuance
Issued patent. Numerous countries in Europe have issued.
Issued patent. Shark Wheel received a patent from its filing in China
Patents in other countries are pending
Filed for a farming wheel patent
Filed for multiple luggage wheel patents
Filed multiple pallet jack/materials handling industry patents
Patent filed for the mold to make the Shark Wheel
Trademark issued for Shark Wheel (for skateboard and roller skate wheels) in the United States and in China.
Trademarks issued or pending in United States for multiple industries (including lawn and garden, wheelchairs, ambulance stretcher, forklifts, pallet jacks, hospital beds, etc).
Signed deal with Athalon luggage. First contract ended, Shark Wheel renewed the contract. Multiple brands.
In talks with over 10 major companies to put Shark Wheels on their products. Development deals, term sheets signed, licensing agreements signed.
Partnered with KaZAM, another Shark Tank alum, to create youth skateboards for the sporting goods industry. Product has sold out in numerous Walmart locations and Big 5 Sporting Goods locations. Next order expected to be in 4,000 Walmart locations for 2020.
Averages close to 90,000 www.SharkWheel.com page views per month in peak season. 18-24 largest demographic
Secured investments at $10 million valuation in 2014
Secured investment from our law firm Wilson Sonsini (Google, LinkedIn, Tesla, etc.). They are of the largest law firms in the country and rarely invest in their clients.
Paid for over $100,000 worth of wheel molds that have already been amortized.
Secured a combo space (offices, warehouse, showroom)
Built an extensive database of over 40,000 active email subscribers
Created a prototyping division that secures signed prototyping contracts from major companies
Won a FedEx small business grant (1 of 10 companies in the United States). FedEx has released three online FedEx-Shark Wheel commercials with over 2 million views
Hundreds of 5 star verified purchase reviews across Amazon for Shark Wheel’s skateboard line
Created a tremendous buzz in the longboarding/skateboarding industry
Won multiple international skateboarding/longboarding competitions
Secured numerous international distributors
Won SBIR NSF Phase I grant in January 2018 ($225,000)
Won SBIR NSF Phase II grant in April 2019 ($724,313)
Shark Wheel's inventor, David Patrick, wins Orange County's Innovator of the Year Award for 2018
Roller skate, printing tape, and pallet jack set for early 2020 release
Scientifically proven advantages for friction, speed, longevity, load capacity and off-road ability
The Shark Wheel was invented by David Patrick. The sine wave shape was a repeating pattern that David discovered all throughout nature and is nature's preferred choice of motion. The sine wave can be seen in how snakes slither, fish and sharks swim, how the planets rotate around the sun, and even how humans walk with an alternating gait. The Shark Wheel name came from the wheel's identical shape to a shark's jaw (picture seen near top of campaign).
Shark Wheel launched through a Kickstarter campaign in June of 2013. Shark Wheel’s fundraising goal of $10,000 was reached in 72hrs, finishing with $79,300 in a 30 day run. After the successful campaign, it took the company 7 months to solve the molding issues that prevented mass production. It was one thing to reinvent the wheel, then the company had to reinvent the mold, which is now patent pending.
Shark Wheel is able to pay the same price per wheel as any other wheel company. There is no price penalty or time penalty for any company choosing to use Shark Wheel products. For a company to violate Shark Wheel’s patents and produce Shark Wheels in mass production successfully would be a massive undertaking (not to mention lawsuits) that would prevent any copycat manufacturers.
Patents and Trademarks
Shark Wheel has issued patents in the United States, the European Union and China. Shark Wheel is patent pending with multiple other applications in process as well. Investment funds will be used to continue to strengthen the patent portfolio.
Shark Wheel already has issued trademarks in the United States and one in China for skateboard and roller skate wheels, as well as luggage wheels. Other trademarks are pending in many industries including forklifts, pallet jacks, medical equipment, wheelchairs and others.
Design & Advantages
Skinny Footprint / Wide Profile
The Shark Wheel has the benefits of a thin wheel and a wide wheel in one shape. The infographic shown below explains how the Shark Wheel has the skinny footprint of a thin wheel combined with the wide profile of the large wheel.
Wheels typically fail in industrial sectors due to heat. Whether its friction, load, or an embedded nail, the failure points become heat-related. Shark Wheels have built-in heat vents that allow heat to escape. A traditional wheel attempts to steamroll over objects - this allows for small objects to become embedded into the wheel and for additional friction and therefore heat to build up leading to failure. Shark Wheel's natural design allows for heat to escape, thereby increasing the life of the wheel.
Amphibious vehicles do not receive propulsion from their wheels. Shark Wheels aim to change that. Traditional wheels simply spin in water and do not provide any forward thrust. Shark Wheel's natural design digs into the water left and right, much like a freestyle swimmer. The alternating movements of the wheel would create the first amphibious vehicle capable of wheel propulsion. This is just one example of many for a Shark Wheel military application. This is a future application Shark Wheel would like to build with the aid of grant funding for the Department of Defense, DARPA, or another government agency.
What does your company do?
Shark Wheel sells the only non-circular wheel in the world. Shark Wheel is currently entering many different industries from roller skates to forklifts to farming.
Where will your company be in 5 years?
Shark Wheel hopes to be a household name selling wheels in no less than 20 different industries. It is not hard to imagine selling the company to Google, Goodyear or Michelin in 5 years.
Why did you choose this idea?
The Shark Wheel was born from a scientific discovery made by Shark Wheel inventor, David Patrick. Once the wheel was found to have advantages compared to a traditional wheel, it was clear that a major business opportunity existed.
Why is it called the Shark Wheel?
The Shark Wheel is the exact shape of shark jaws. It is also the shape of many things found in nature.
The Shark Wheel is a biomimetic invention that copies nature's motions
The way fish and sharks swim
The way radio waves and gamma rays move
The way the planets move around the Sun
The way humans walk with an alternating gait that defines a sine wave path.
What is the Shark Wheel's weakness?
The Shark Wheel does not perform well on applications that lean/tilt. We have identified rollerblades, two-wheeled scooters, motorcycles and bicycles as the four industries we plan on not entering.
Are you planning to sell the company, go public, or something else?
Shark Wheel switched to a c-corp (Shark Wheel, Inc.) in December of 2018. In December of 2023, Shark Wheel plans to take advantage of IRS Code 1202. This will enable Shark Wheel to sell the company and its investors be able to keep their profits tax-free. For more details and clarifications on the law please read here: https://www.investopedia.com/terms/s/section-1202.asp
What are the advantages of a Shark Wheel?
1. Rough Terrain. Shark Wheels #1 advantages across most industries. The sine wave shape tends to move around small pebbles, sand, water and other debris. Traditional wheels tend to steamroll over objects, which can lead to a decline in performance. The Shark Wheel design is also perfect for wet conditions funneling water away from the contact patch of the wheel adding grip. Rough terrain/off-road superiority has been scientifically proven by San Diego State University, Mechanical Engineering Department in 2 years of testing.
2. Longer Life. 15% longer when cruising - scientifically proven. Shark Wheels have multiple center points compared to 1 center point on normal wheels. Traditional wheels are prone to flatspots - they wear unevenly with only 1 center point. Shark Wheels are flatspot resistant. This has been scientifically proven by San Diego State University, Mechanical Engineering Department in 2 years of testing.
3. Approach Angle. Shark Wheels have a unique 30 degree approach angle that strikes objects at an angle unlike a traditional wheel. The approach angle of a Shark Wheel reduces shock to the user. This is very similar to how people driving their car intuitively know to go over a speed bump at an angle to reduce the shock in their car.
4. Friction. Up to 60% less friction than a traditional wheel. Frictional advantages have been scientifically proven by San Diego State University, Mechanical Engineering Department in 2 years of testing.
5. Swivel. The Shark Wheel swivels better than a traditional wheel. In industrial caster applications and luggage applications, the Shark Wheel does not 'scrub'. For example, luggage typically falls over when you suddenly transition left if you are moving straight ahead. Traditional wheels lock or scrub, while Shark Wheels smoothly transition.
6. Speed. Less friction touching the ground equates to less rolling resistance. Scientifically tested for rebound (which equates to speed) and found to have a 15% advantage.
7. Load capacity. Ability to handle more load. Load advantages have been scientifically proven by San Diego State University, Mechanical Engineering Department in 2 years of testing.
When did the idea for Shark Wheel happen?
The patent was filed in November of 2012. The company launched a Kickstarter in the summer of 2013. In May of 2014, Shark Wheel shipped its first set of wheels.
Shark Wheel has financial statements ending December 31 2018.
Our cash in hand is $220,000, as of November 2019. Over the three months prior, revenues averaged $100,000/month, cost of goods sold has averaged $75,000/month, and operational expenses have averaged $55,000/month.
At a Glance
to December 31
Short Term Debt
Raised in 2018
Cash on Hand
As of 11/14/19
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.
Shark Wheel sells the only non-circular wheel in the world. Shark Wheel is currently entering many different industries from roller skates to forklifts to farming.
Shark Wheel hopes to be a household name selling wheels in no less than 20 different industries. It is not hard to imagine selling the company to Google, Goodyear or Michelin in 5 years.
Shark Wheel, Inc. was incorporated in the State of Delaware in October 2012.
Since then, we have:
Working with multiple industry-leading partners on multi-million dollar deals.
Scientifically proven advantages by San Diego State University in multiple categories.
Aired on Shark Tank, Discovery Channel, FedEx commercials, FOX, and much more.
Won two government grants for its farming wheel solution ($225k and $724k). Recently raised $627k from an equity crowdfunding campaign.
Millions in revenue. Primarily a licensing company at this stage, so not capital intensive.
Over 100 markets identified for Shark Wheel to enter into.
Recently expanded its offerings to Printing Tape, Frisbees and more. The shape keeps generating new products.
Historical Results of Operations
Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $950,796 compared to the year ended December 31, 2017, when the Company had revenues of $753,009. Our gross margin was 32.35% in fiscal year 2018, compared to 42.54% in 2017.
Assets. As of December 31, 2018, the Company had total assets of $464,471, including $247,546 in cash. As of December 31, 2017, the Company had $928,430 in total assets, including $662,576 in cash.
Net Loss. The Company has had net losses of $759,938 and net losses of $678,926 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
Liabilities. The Company's liabilities totaled $245,865 for the fiscal year ended December 31, 2018 and $204,235 for the fiscal year ended December 31, 2017.
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 financed with $2,107,456 in equity and $750,000 in convertibles.
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. 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
Shark Wheel, Inc. cash in hand is $220,000, as of November 2019. Over the last three months, revenues have averaged $100,000/month, cost of goods sold has averaged $75,000/month, and operational expenses have averaged $55,000/month, for an average burn rate of $30,000 per month. Our intent is to be profitable in 9 months.
Shark Wheel raised $627,728 on Start Engine in 2019. The amount was the maximum allowed for the raise prior to completing audited financials.
Shark Wheel signed a multi-million dollar, multi-year deal with one of the largest companies in the material handling industry. It is a licensing deal and all revenue is pure profit.
Shark Wheel has been focused on research on development of its technology since inception. There is no blueprint on how to make a sine wave wheel. Each time the team has encountered a new obstacle, such as creating a swivel wheel for the first time, there is a learning curve. Each time the team has overcome early obstacles. The research and development costs have taken accounted for a relatively large percentage of expenses. We expect those costs will go down over time. Shark Wheel could have been a skateboard-only company that was profitable, but the management team decided to invest heavily in a variety of markets to fully maximize the value of the patent (which is owned by Shark Wheel, Inc.). Shark Wheel has grown year over year, but expects revenue in 2019 from a variety of industries for past efforts.
Shark Wheel's gross revenue has gone up year-over-year, reaching close to $1 million in 2018. That was over $200,000 higher than 2017 revenues. Shark Wheel moved to a more distributor-heavy model in 2018, selling heavily into Walmart and VM Innovations, two large players in the US market. Tens of thousands of units were moved between these two accounts alone. Shark Wheel margins went down, but volume increased substantially. All of these moves were based on strategic decisions due to the state of the skateboard industry and opportunities on the table.
Historical results and cash flows:
Shark Wheel has not been profitable to date. The reasons were explained just above, but to expand on the details, Shark Wheel has essentially been running 4 companies off of one company's revenues. The four ‘companies’ Shark Wheel built are agriculture, pallet jacks, luggage and skateboarding to date and all had to run off of skateboarding revenue. Shark Wheel anticipates 2019 as its first year of profitability as it enters the material handling industry with its sine wave wheel. Three years of testing with an industry leader has yielded an opportunity for a 8-figure deal over 5 years. This deal alone is expected to make Shark Wheel profitable within a few months. Also in 2019, Shark Wheel received a $724,000 SBIR NSF Phase II grant to bring its central pivot irrigation wheel (agriculture wheel) to commercialization. Also in 2019, Walmart placed 3 orders to date with a larger order expected before the end of the year to potentially fill 4,000 Walmart stores for 2020. In 2018, Shark Wheel sold out in all Walmart stores it was in. All of Shark Wheel's previous efforts are projected to reach profitability for the first time in 2020.
Shark Wheel anticipates being able to run at a profit starting in 2020. The operation of the company is expected to continue without concern for the foreseeable future. In a worst-case scenario, Shark Wheel would still be viable for another year at least if somehow none of the payments came through. The company would need to cut expenses and slow growth, but the viability of the company would not be an issue.
Shark Wheel can obtain a loan at the click of a button through various online funding platforms. Shark Wheel has also engaged a small business bank to look into lines of credit for large purchase orders. Shark Wheel does not have any plans to obtain a loan, but may use a line of credit to fulfill purchase orders.
Shark Wheel expects to be profitable by Q3 2020, based on offers we have on the table.
A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money?
It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the Cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re-investing potential profits to maximize growth over 20 years.
Uncertain Risk An investment in the Company (also referred to as “we”, “us”, “our”, or “Company”) involves a high degree of risk and should only be considered by those who can afford the loss of their entire investment. Furthermore, the purchase of any of the Class C common stock should only be undertaken by persons whose financial resources are sufficient to enable them to indefinitely retain an illiquid investment. Each investor in the Company should consider all of the information provided to such potential investor regarding the Company as well as the following risk factors, in addition to the other information listed in the Company’s Form C. The following risk factors are not intended, and shall not be deemed to be, a complete description of the commercial and other risks inherent in the investment in the Company.
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.
Our business projections are only projections
There can be no assurance that the Company will meet our projections. There can be no assurance that the Company will be able to find sufficient demand for our product, that people think it’s a better option than a competing product, or that we will able to provide the service at a level that allows the Company to make a profit and still attract business.
Any valuation at this stage is difficult to assess
The valuation for the offering was established by the Company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment.
The transferability of the Securities you are buying is limited
Any Class C common stock purchased through this crowdfunding campaign is subject to SEC limitations of transfer. This means that the stock/note that you purchase cannot be resold for a period of one year. The exception to this rule is if you are transferring the stock back to the Company, to an “accredited investor,” as part of an offering registered with the Commission, to a member of your family, trust created for the benefit of your family, or in connection with your death or divorce.
Your investment could be illiquid for a long time
You should be prepared to hold this investment for several years or longer. For the 12 months following your investment there will be restrictions on how you can resell the securities you receive. More importantly, there is no established market for these securities and there may never be one. As a result, if you decide to sell these securities in the future, you may not be able to find a buyer. The Company may be acquired by an existing player in the educational software development industry. However, that may never happen or it may happen at a price that results in you losing money on this investment.
If the Company cannot raise sufficient funds it will not succeed
The Company, is offering Class C common stock in the amount of up to $441,999.65 in this offering, and may close on any investments that are made. Even if the maximum amount is raised, the Company is likely to need additional funds in the future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the Company itself or the broader economy, it may not survive. If the Company manages to raise only the minimum amount of funds, sought, it will have to find other sources of funding for some of the plans outlined in “Use of Proceeds.”
We may not have enough capital as needed and may be required to raise more capital. We anticipate needing access to credit in order to support our working capital requirements as we grow. Although interest rates are low, it is still a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity may require bringing on additional investors. Securing these additional investors could require pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced lower, your ownership percentage would be decreased with the addition of more investors. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your investment.
Terms of subsequent financings may adversely impact your investment
We will likely need to engage in common equity, debt, or preferred stock financings in the future, which may reduce the value of your investment in the Common Stock. Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be more advantageous to those investors than to the holders of Common Stock. In addition, if we need to raise more equity capital from the sale of Common Stock, institutional or other investors may negotiate terms that are likely to be more favorable than the terms of your investment, and possibly a lower purchase price per share.
Management Discretion as to Use of Proceeds
Our success will be substantially dependent upon the discretion and judgment of our management team with respect to the application and allocation of the proceeds of this Offering. The use of proceeds described below is an estimate based on our current business plan. We, however, may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category to another, and we will have broad discretion in doing so.
Projections: Forward Looking Information
Any projections or forward looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management's best estimate of the probable results of our operations and will not have been reviewed by our independent accountants. These projections will be based on assumptions which management believes are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Therefore, actual results of operations will vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.
Some of our products are still in prototype phase and might never be operational products
It is possible that there may never be an operational product or that the product may never be used to engage in transactions. It is possible that the failure to release the product is the result of a change in business model upon the Company’s making a determination that the business model, or some other factor, will not be in the best interest of the Company and its stockholders.
Minority Holder; Securities with No Voting Rights
The Class C common stock that an investor is buying has no voting rights attached to them. This means that you will have no rights in dictating on how the Company will be run. You are trusting in management discretion in making good business decisions that will grow your investments. Furthermore, in the event of a liquidation of our company, you will only be paid out if there is any cash remaining after all of the creditors of our company have been paid out.
You are trusting that management will make the best decision for the company
You are trusting in management discretion. You are buying non-voting membership interest as a minority holder, and therefore must trust the management of the Company to make good business decisions that grow your investment.
Our new product could fail to achieve the sales projections we expected Our growth projections are based on an assumption that with an increased advertising and marketing budget our products will be able to gain traction in the marketplace at a faster rate than our current products have. It is possible that our new products will fail to gain market acceptance for any number of reasons. If the new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.
We face significant market competition
We will compete with larger, established companies who currently have products on the market and/or various respective product development programs. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or superior products than those developed by us. There can be no assurance that competitors will render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.
We are competing against other recreational activities
Although we are a unique company that caters to a select market, we do compete against other recreational activities. Our business growth depends on the market interest in the Company over other activities.
We are an early stage company and have not yet generated any profits
Shark Wheel was formed on 10/24/2012. Accordingly, the Company has a limited history upon which an evaluation of its performance and future prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. Shark Wheel has incurred a net loss and has had limited revenues generated since inception. There is no assurance that we will be profitable in the next 3 years or generate sufficient revenues to pay dividends to the holders of the shares.
We have existing patents that we might not be able to protect properly
One of the Company's most valuable assets is its intellectual property. The Company's owns multiple trademarks, copyrights, Internet domain names, and trade secrets. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company.
We have pending patent approval’s that might be vulnerable
One of the Company's most valuable assets is its intellectual property. The Company's intellectual property such as patents, trademarks, copyrights, Internet domain names, and trade secrets may not be registered with the proper authorities. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company due to its unregistered intellectual property. Shark Wheel's main patent has already been issued in the United States and China. Many other patents are currently pending. Shark Wheel has issued trademarks in the United States and China. Many others are currently pending.
Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective
Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company’s value will be materially and adversely impacted. This could also impair the Company’s ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company. Shark Wheel has issued patents in the United States and China. Many other patents are currently pending. Shark Wheel has issued trademarks in the United States and China. Many others are currently pending.
The cost of enforcing our trademarks and copyrights could prevent us from enforcing them
Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.
The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business
To be successful, the Company requires capable people to run its day to day operations. As the Company grows, it will need to attract and hire additional employees in sales, marketing, design, development, operations, finance, legal,
human resources and other areas. Depending on the economic environment and the Company’s performance, we may not be able to locate or attract qualified individuals for such positions when we need them. We may also make hiring mistakes, which can be costly in terms of resources spent in recruiting, hiring and investing in the incorrect individual and in the time delay in locating the right employee fit. If we are unable to attract, hire and retain the right talent or make too many hiring mistakes, it is likely our business will suffer from not having the right employees in the right positions at the right time. This would likely adversely impact the value of your investment.
This offering involves “rolling closings,” which may mean that earlier investors may not have the benefit of information that later investors have.
Once we meet our target amount for this offering, we may request that Wefunder instruct the escrow agent to disburse offering funds to us. At that point, investors whose subscription agreements have been accepted will become our shareholders. All early-stage companies are subject to a number of risks and uncertainties, and it is not uncommon for material changes to be made to the offering terms, or to companies’ businesses, plans or prospects, sometimes on short notice. When such changes happen during the course of an offering, we must file an amended to our Form C with the SEC, and investors whose subscriptions have not yet been accepted will have the right to withdraw their subscriptions and get their money back. Investors whose subscriptions have already been accepted, however, will already be our shareholders and will have no such right. Ownership and Capital Structure; Rights of the Securities
We rely on third parties to provide services essential to the success of our business We rely on third parties to provide a variety of essential business functions for us, including manufacturing, shipping, accounting, legal work, public relations, advertising, retailing, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other suppliers’ operations could materially and adversely affect our business. As a result, your investment could be adversely impacted by our reliance on third parties and their performance.
Gary Fleishman 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.
The Board of Directors
CEO @ Shark Wheel, Inc.
CTO @ Shark Wheel, Inc.
COO and Secretary @ Shark Wheel, Inc.
3,365,514 Class A Common Stock
3,806,005 Class A Common Stock
3,273,696 Class A Common Stock
Past Equity Fundraises
Related Party Transactions
David Michael Patrick, Officer, sold $50,000 worth of stock to the company (Shark Wheel LLC, now called Shark Wheel, Inc.) in a prior year. The transaction was a straight equity deal at previous valuation.
The managing members are Gary Fleishman (current CEO), David Patrick (current CTO) and Zack Fleishman (current COO). Gary loaned Shark Wheel $25,000 in 2017. Gary was paid back on this transaction in 2017 with the minimum interest accrued by law. The terms of the loan were as follows: Interest rate of 2.5% and a term of five years. The note was paid off in full during the year ended December 31, 2017. The note receivable balance was $0 and $25,812 as of December 31, 2017 and 2016, respectively.
Shark Wheel Skate, LLC (a subsidiary of Shark Wheel LLC, now called Shark Wheel, Inc.) has advanced funds to a company whose members are also members of Shark Wheel, LLC. The advance to related party balance was $28,469 and $23,240 as of December 31, 2017 and 2016, respectively. The managing members are common to both entities. The managing members are Gary Fleishman (current CEO), David Patrick (current CTO) and Zack Fleishman (current COO).
Sister and Brother in Law of Co-Owner
David Patrick sold personal shares to the sister and brother-in-law of another co-owner.
Cousin of co-owner
David Patrick sold personal shares to the cousin of a co-owner.
Use of Funds
Wefunder Platform Fees 7.5%
Shark Wheel will use these minimal investment funds to continue daily business operations, including payroll, administration expenses, legal expenses, and other operating expenses.
Wefunder Platform Fees 7.5%
Research & Development 30.0%
Shark Wheel will use funds to continue Research and Development for other industries. Although much of the development has been done, there are many wheels in the world and Shark Wheel plans to enter dozens and dozens of industries over time.
Shark Wheel will use investment funds to continue daily business operations, including payroll, administration expenses, legal expenses, and other operating expenses.
Shark Wheel will use investment funds to place large purchase orders for skateboard products, roller skate products and other products that Shark Wheel will manufacture.
Marketing 5.0%There is an education curve when entering new industries. Most industries would be licensing deals where Shark Wheel would not need a marketing budget. But, for the few industries the company enters on its own, a marketing budget is necessary.
Working Capital 7.5%
Shark Wheel will need to pay for tooling and other necessary purchases at is moves across industries.
Class of Security
Securities (or Amount) Authorized
Securities (or Amount) Outstanding
Class C Common Stock
Class B Common Stock
Class A Common Stock
Form C Filing on EDGAR
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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