When do you think the company will be cash-flow neutral or positive, and financially self-sustaining moving forward?

Great question. While that is impossible to predict, Shark Wheel made a decision a few years ago to be cash flow negative by design. We would easily be cash flow positive if we were just a skateboard company. We gross over a million dollars per year without a sales team and without putting in more than 20% effort into the skateboard side of our company. But, the decision was made to invest heavily in other industries and have explosive growth potential. I think Shark Wheel has positioned itse...

Is there a time-frame to have Shark Wheel stock traded on the stock exchange?

Hi William, Shark Wheel does not have plans to be traded on the stock exchange. It is possible, but not the most likely scenario. Currently, the thinking is to sell the company in 4 years. This is to take advantage of IRS code 1202. Shark Wheel switched to a C-Corp December 21, 2018. 5 years from that date (December 21, 2023), Shark Wheel can sell the company and have up to $50 million dollars tax free from my understanding. Depending on the sale price, that would make most investors have tax...

A few question: 1. Have you paid the Sharks back the 500k? 2. Why are you looking to sell the business in approximately 4 years? 3. Given your revenue why is the valuation so high? What percentage of your current revenue is licensing?

1. Can't say. All we can say is we do not have any outstanding royalties to pay to anyone. 2. On Draven Pike's question here just before yours, I answered this question fully. In short, this is one of many potential options. It is not the only option. 3. Shark Wheel's revenue and profits would be much higher if we were only a skateboard company. All focus would only go to skateboarding and the revenues would be higher. The profits would be higher as well because a small fraction of R&D, o...

How much revenue do you expect in 4-5 years?

Hi Umair. This is nearly impossible to predict unfortunately. Anything I write would be a guess. Even large companies that have established year-over-year revenues are frequently off on their projections by substantial margins. Shark Wheel's gross revenues have grown significanly every year. But, the most explosive growth is expected within the next 1-3 years. While Shark Wheel is entering many industries the expectation of revenue between the material handling industry (pallet jack wheels wh...

If you are confident that this is an industry changing idea then why would you plan to sell the company in 4 years? Why are you worried about selling for tax purposes? Shouldn't you be more confident and expect to make so much money that your tax situation won't matter after 5...

Great questions. Floating the idea of a potential exit strategy is just that. A potential exit strategy. We know the product itself is a winner and we are trying to make the best calculated moves every step of the way to maximize its potential. We set ourselves up in 4 years time to accept a buyout of the company tax free up to $50 million if the offer makes sense. If we receive an incredible offer next year, then we wouldn't wait 4 years. If we keep the company for 20 years that is possible ...

Shark Wheel

Shark Wheel Reinvented the Wheel. Literally. Scientifically Proven Advantages.

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Mission Viejo, CA

B2B Consumer Goods Retail B2C Manufacturing

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Luke interviewed Shark Wheel on December 4, 2020. Play Video

Luke Iseman

Founder of boxouse, growerbot, Soil IQ, Dirtnail, and more. Former Director of Hardware at Y Combinator.

Strengths

says, "Zack and team have real sales of an innovative product that seems like a good fit for a wide range of industries."

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says, "I’d like to better understand the long-term vision and potential for this to be huge, not just a successful SMB. Why I should invest at 35M pre if the 10-year vision is just to be acquired for 50M?"

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LEAD INVESTOR

Invested $5,000 this round + $280,000 previously

Shark Wheel is an amazing company with an incredible management team.

Their proprietary technology is being utilized in a wide variety of manufacturing settings (literally reinvented and improved the wheel).

Of particular significance is its implementation in the agriculture industry, Where they have a number of excellent partners and Distributors.

There is also tremendous room for growth in various economic sectors, including wheelchairs, pallets, even the military (and of course, skateboards).

A number of major tire companies are already on board. Overall, I think it’s an incredible company with a fantastic future and horizon.

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Shark Wheel

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