|1||NEW ROUND! $2.7M raised. Join investors Morgan Stanley and NYU|
|2||Proven through Covid-19 - More than $2M in revenue with a 4+ rating on Amazon.|
|3||Covid-19 Program - Educated nearly 1,000 kids via e-learning during the pandemic.|
|4||Beat 40,000 companies to land ABC's Shark Tank and received an offer from Daymond John|
|5||Expanding into $40B Ed-tech market- Signed a deal with former LEGO education distributor, Pitsco Education|
|6||Powerful PR - Featured on CNN, Fox and Friends, Fox Business News, Forbes and Financial Times.|
|7||Strong Team - Includes former VP of Hasbro, EVP of LeapFrog and host of MythBusters.|
|8||Female founder of color. Support minority-owned small business.|
Science doesn't have a gender identity, but if you look at some educational products, that can sometimes be hard to tell. Research shows that role models, familiarity, and a sense of comfort all help to empower students, drive better outcomes, and inspire a sense of belonging while learning. SmartGurlz provides much needed diversity in this space.
I'm personally investing not because I think that everybody should learn computer science, but because everyone should have the *opportunity* to learn computer science. I've taught coding to children, teenagers, and adults, and observed that the tangible, physical experience of working with a robot inspires a greater feeling of connection and higher satisfaction - which leads to better engagement and retention. Siggy and Smart Buddies are an exciting take on computer science education and robotics. I like what the company has done in the last few years and I'm excited about the opportunities their new virtual learning programs can provide.
The mission of SmartGurlz has always been to engage and educate girls and minorities in STEM (Science, Technology, Engineering and Math).
Award-winning SmartGurlz stepped up to plate during the Covid-19 pandemic and is proud to announce that its Smart Buddies live remote learning program was named one of the Best STEM Camps by Good Housekeeping, Parade, Daily Mom, Romper, Fox News, Good Morning Los Angeles and many others. In addition, Good Morning, America named our camp one of the best gifts to give during the pandemic.
Our duty has always been to help kids - and a global pandemic was not going to get in our way!
Nearly 1,000 children attended our remote camp this summer and the success will lead us to create a new platform for remote learning. The team is applying for grant funding from the National Science Foundation and Department of Education for a new platform. BlackGirlsCode also did a Smart Buddies camp during the Covid-19 closures this summer.
Smart Buddies Live is an amazing concept to keep kids learning this summer,
Steve Greenberg, Gadget Guy for Good Morning America
Not only did we sell Smart Buddies products, but we also got to meet thousands of families who needed help and home-schooling during Covid-19.
SmartGurlz is more than just a fast-growing company, we are a movement of loyal customers who believe that kids need more than just exposure – they want tailored products that excite, ignite and engage.
We started with an appearance on ABC's Shark Tank and taught Sir Richard Branson to code. It's been an amazing journey, and we've only just begun. Since then we have taught more than 35,000 kids how to code and made headlines along the way.
CEO and co-founder, Sharmi Albrechtsen's 8-year old daughter was struggling in math and computer science and one of her main comments was “When am I ever going to use this?” All of the products on the market were masculine with tank-like wheels, blades and bazookas and it was sending her the message: 'this is for boys'.
This is when she had an ‘aha’ moment that a product geared towards her play patterns such as role model play and creative storytelling. With Smart Buddies our focus is on ensuring kids of color see themselves in STEM.
While SmartGurlz's robots, apps and dolls have been popular for at-home learning and playing - last year the company along with Pitsco Education created a joint venture for a new product line aimed at schools and education including girls and boys. With diversity being a major theme in education, the time is right for Smart Buddies. Smart Buddies is backed by research to show that in order to engage more young kids, we need to address their preferred learning styles and brain function.
Unlike other STEM robots, Smart Buddies has a literacy component with 8-books, social-emotional learning and Career Pathways.
Thanks to Shark Tank, we had an amazing bumper year in 2017 when we aired on national television with 9 million viewers. Otherwise, SmartGurlz has been experiencing a healthy revenue growth and despite Covid-19 ..... 2020 has been a fantastic launch year for our new schools' program, Smart Buddies which we launched as a virtual program.
Hear from parents and kids who attended our award-winning Smart Buddies camps this summer.
Note: this slide contains forward-looking projections which cannot be guaranteed.
While Covid-19 school closures paused our 2020 launch into the school's market, both our exclusive partner, Pitsco Education and our sales team is excited about 2021 because now schools will want successful hybrid (in-class and remote) solutions and we can offer one!
More than 250 students in 10 schools in Florida and Texas have now been through the SmartBuddies schools pilot program -- the only coding program targeted at diversity and inclusion in coding and STEM.
Pitsco Education worked with LEGO for more than a decade introducing Mindstorms to schools across America and SmartGurlz is honored that they have chosen us as a partner.
Both Pitsco and SmartGurlz have great expectations for our 2021 relaunch into the school's market.
Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.
SmartGurlz is working on a new consumer franchise and product line that includes our own entertainment/content, robots, figures and apps that is based around Mars exploration and female empowerment in STEM.
We are currently in dialogue with NASA to close a deal for an educational collaboration and have also received a contract to work with Jeff 'Swampy' Marsh Executive Producer of Disney's Phineas and Ferb to move forward with a sizzle for a new animated series.
SmartGurlz has prototypes in the pipeline for this new consumer product line that includes our own entertainment/content, robots, figures and apps. Inspired by American Girl doll model (girls collect and play for 3 years) below is a video, of our new range that is customizable and will allow of accessories and a Life Time Revenue for $400-$600.
SmartGurlz has financial statements ending December 31 2019. Our cash in hand is $340,000, as of September 2020. Over the three months prior, revenues averaged $35,000/month, cost of goods sold has averaged $6,000/month, and operational expenses have averaged $20,000/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.
We teach girls and under-served minorities STEM filling a massive gap in the ed-tech market. While it is projected that over 1 million tech jobs will go unfilled by 2022, women and minorities are greatly under-represented. We make the only coding product for kids specifically designed for this market. We have sold over 30,000 coding robots for girls in the consumer market and have entered into a collaboration launching school product and curriculum targeting both girls and boys in 2020.
SmartGurlz aims to be a leading force in bringing equity to tech, the LeapFrog of smart connected-toys with $200 million in revenue and $1 billion company valuation.
SmartGurlz US Inc. (“SG Inc.” or the “Company”) is a Delaware corporation incorporated on May 3, 2017. The Company provides a line of friendly self-balancing robots and action dolls that engage and encourage girls to learn to code, allowing girls six and up to immerse themselves in Science, Technology, Engineering, and Math (“STEM”).
SmartGurlz A/S (“SG AS”) was initially formed on April 29, 2015 as a private limited company (“ApS”) in Denmark with the purpose to develop, manufacture, and market STEM products. On August 23, 2016, SG AS was converted to a stock corporation.
On August 21, 2017, a stock exchange agreement was approved and executed by the board of
directors. Pursuant to this exchange agreement, the three shareholders holding all authorized and
outstanding shares of SG AS agreed to exchange all their shares of SG AS for a proportional amount
of the total authorized shares of SG Inc. This resulted in 767 shares of SG AS stock exchanged for
1,000,000 shares of SG Inc. Upon the execution of the agreement, SG AS became a wholly-owned
subsidiary of SG Inc. under an acquisition transaction and has been retroactively consolidated to these
financial statements. There was no change in relative control between the three shareholders as a result
of this stock exchange.
Since then, we have:
Historical Results of Operations
Our company was organized in May 2017 and has limited operations upon which prospective investors may base an evaluation of its performance.
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 $396,300 in debt, $700,000 in equity, and $1,555,829 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. We plan to raise capital in 6 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
Smartgurlz US Inc cash in hand is $340,000, as of September 2020. Over the last three months, revenues have averaged $35,000/month, cost of goods sold has averaged $6,000/month, and operational expenses have averaged $20,000/month, for an average net margin of $9,000 per month. Our intent is to be profitable in 24 months.
Covid-19 caused us to delay the schools market launch of Smart Buddies which was an estimated $500,000 of revenue this year. We were able to do direct to consumer sales and expect a good holiday sales bump
We have done about $200,000 in revenue and expect to close with another $100-150,000 this year. Due to Covid-19, we expect school sales to pick up and we are currently negotiating a new UK contract. Although we cannot guarantee it, we anticipate our expenses being about $200,000 for the year by the end of 2020.
In terms of other financing options, we have cash-on-hand and we have the possibility for additional debt financing by our partners
The Company is in the deployment stage. It has limited revenues to date. There is no assurance that the Company will be able to record profits in the future. The Company is also faced with risks inherent in operating a new business. The risks inherent in operating a new business such as the Company's include: (i) difficulties and delays often encountered in developing, producing and commercializing new, complex technologies; (ii) developing the markets for the Company's products and technologies; (iii) transitioning the Company's development efforts to commercialization; and (iv) attracting and retaining qualified management, sales and/or marketing and technical staff.
The Company is seeking up to $535,000 to fund product development, marketing and operations. Capital requirements associated with product development, marketing and operations have been and will continue to be substantial. The Company may need to raise additional funds in the future in order to fund operations, pursue sales growth opportunities, develop new products or services, respond to competitive pressures, or acquire other businesses. The Company may not be able to obtain additional financing when needed, or that, if available, such financing may not be available on acceptable terms.
The Company will continue to experience significant operating losses as it expands its network, engages in additional development efforts, and grows its marketing and sales force in an effort to commercialize its products. The Company expects losses until such time, if ever, that its revenues from the sale of its products and services cover its expenses. Achieving and maintaining long-term profitability depends on successfully commercializing its products and technologies. The Company cannot assure you that it will be able to achieve any of the foregoing or that it will be profitable even if it successfully commercializes its products.
The Company’s revenue growth is dependent on our ability to continually attract new customers while retaining and expanding our product offerings to existing customers. Growth in the demand for our solutions may be inhibited and we may be unable to sustain growth in our customer base for a number of reasons, including, but not limited to: our inability to market our solutions in a cost-effective manner to new customers or in new vertical or geographic markets; our inability to expand our sales to existing customers through Big Box retail relationships; our failure to develop new or additional solutions: our inability to build and promote our brand; and perceived security, integrity, reliability, quality or compatibility problems with our solutions.
The statements presented in this Regulation Crowd Funding Offering may contain forward-looking statements. These statements may relate to future events, future partnerships, future financial performance of SmartGurlz. However, any statements that are not statements of historical fact - including without limitation statements to the effect that the Company or its management "believes", "expects", "anticipates", "plans" (and similar expressions) - should be considered forward looking statements. In the name of full transparency, there are a number of factors that could cause SmartGurlz's actual results to differ materially from those indicated by the forward looking statements
Jesper Nissen 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.
Kari Byron 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.
COVID-19 caused us to delay the schools market launch of Smart Buddies, and may cause future further delays in production or distribution. The impacts of COVID-19 cannot be predicted.
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