2019 Report Travelmate Robotics
Filed on June 12, 2020
Dear investors,
Thank you so much for supporting our project! We are incredibly happy to have you on our team and we hope to continue working with you. This is a short update, because it is part of an annual filing for regulation CF campaigns. We hope all of you stay safe and we will get through this together! Our company has enough resources at the moment.
We will let you know of any situational change that occurs. The travel industry is deeply affected by the COVID pandemic, but it has not affected us as much because we have a backlog of orders. We need to fulfill existing orders and then get through people who want to buy our robots, before we have to worry about demand. We're focused on developing medical equipment robots and have decided to stop all development on the autonomous golf trolley for the time being. This is so that our time is spent productively in the current environment.
We need your help!
We appreciate your continued support for our project. We will continue to provide regular updates on our campaign. For now, we are working on scaling up production with our suppliers. We are also working on a medical assistant robot called Travelmate RNA (Robot Nurse Assistant). You can find out more about that here: https://travelmaterobotics.com/travelmaterna2/
Sincerely,
How did we do this year?
☺ The Good
We successfully raised funds through Wefunder and Fundable! We've got a lot of wonderful new investors as part of our company.
Our company has been scaling up manufacturing, despite the initial set back of supply chains being disrupted due to the pandemic
New features have been added to our robots and we are working on robots for medical settings.
☹ The Bad
The COVID 19 pandemic initially disrupted our supply chain
We are working from home and self isolating to lessen the spread of the pandemic.
2020 as a whole has been an interesting year.
2019 At a Glance
January 1 to December 31
$0
Revenue
$397,644
Net Profit
$998,645 +2%
Short Term Debt
$635,694
Raised in 2019
$418,429
Cash on Hand
As of 12/31/19
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.
Overview
We make a robotic assistant and self moving suitcase called Travelmate.
We want to be the leader in consumer robotics.
Milestones
Travelmate Robotics Inc. was incorporated in the State of Nevada in July 2016.
Since then, we have:
- 1 billion+ potential market for consumer robotics.
- Only robotic suitcase compliant with all airline regulations.
- Patented robot assistant and proprietary movement system.
- Awarded Best Product at the 2018 Travel Goods Show.
- Over three thousand articles have been written about Travelmate Robotics as well as numerous accolades and glowing reviews.
- A proprietary movement system that connects to all smartphones.
Historical Results of Operations
Our company was organized in July 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
- Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $0 compared to the year ended December 31, 2018, when the Company had revenues of $0. Our gross margin was % in fiscal year 2019, compared to % in 2018.
- Assets. As of December 31, 2019, the Company had total assets of $435,869, including $435,869 in cash. As of December 31, 2018, the Company had $45,971 in total assets, including $17,459 in cash.
- Net Income. The Company has had net income of $397,644 and net losses of $315,438 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
- Liabilities. The Company's liabilities totaled $998,645 for the fiscal year ended December 31, 2019 and $979,414 for the fiscal year ended December 31, 2018.
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 $115,967 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 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Travelmate Robotics Inc. cash in hand is $418,428.78, as of December 2019. Over the last three months, revenues have averaged $10,000/month, cost of goods sold has averaged $5,000/month, and operational expenses have averaged $12,000/month, for an average burn rate of $7,000 per month. Our intent is to be profitable in 3 months.
We are scaling up manufacturing because of a successful wefunder raise. The current pandemic has affected the supply chain and has had an outsize affect on the travel industry. However, we have been able to scale up within our deadlines. We are working on medical equipment robots and are looking at other ways to help people in this time of crisis.
Our strategy is straight forward. We will purchase the necessary equipment for manufacturing, including necessary injection molds, long lead time inventory, and assembly equipment. We also require proprietary testing equipment which will allow us to check units on a much quicker basis.
We plan to scale up manufacturing gradually. From 5,000 units per month to 100,000 units per month within a period of one year. We have other potential investor opportunities that we can explore.
Yes, we have interested investors who can provide additional capital. Since the end of the fiscal year, we have attained additional capital.
- Net Margin: 0%
- Gross Margin: 0%
- Return on Assets: 91%
- Earnings per Share: $0.04
- Revenue per Employee: $0
- Cash to Assets: 100%
- Revenue to Receivables: ~
- Debt Ratio: 229%
We Our 902 Investors
Thank You For Believing In Us
Thank You!
From the Travelmate Robotics Team
President
A part of IATA (International Air Transport Association) as a jury member for technological innovation. My educational background is a B.S. in Astronomy and an Associate's degree in English.
Details
The Board of Directors
| Director | Occupation | Joined |
|---|---|---|
| Leonid Kovtun | Director @ Travelmate Robotics | 2016 |
| Taras Yermakov | Vice President @ Travelmate Robotics | 2016 |
| Maximillian Kovtun | President @ Travelmate Robotics Inc | 2016 |
Officers
| Officer | Title | Joined |
|---|---|---|
| Maximillian Kovtun | President Vice President Secretary Treasurer | 2016 |
| Holder | Securities Held | Voting Power |
|---|---|---|
| Leonid Kovtun | 1,912,500 Class A | 25.5% |
| Maximillian Kovtun | 1,915,778 Class A and Class B | 25.5% |
| Taras Yermakov | 1,500,000 Class A and Class B | 20.0% |
| Leonid Ryzhenko | 2,600,000 Class B Stock | 25.5% |
Past Equity & Loan Fundraises
| Date | Amount | Security | Exemption |
|---|---|---|---|
| 10/2017 | $42,930 | Section 4(a)(2) | |
| 07/2018 | $73,037 | Section 4(a)(2) | |
| 08/2019 | $635,694 | 4(a)(6) |
Outstanding Debts
| Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
|---|---|---|---|---|---|---|
| Maximillian Kovtun | 10/20/2017 | $42,930 | $42,930 | 0.0% | 01/21/2023 | Yes |
| Maximillian Kovtun | 07/10/2018 | $73,037 | $73,037 | 0.0% | 01/21/2023 | Yes |
Related Party Transactions
| Key | Value |
|---|---|
| Name | Maximillian Kovtun |
| Amount Invested | $73,037 |
| Transaction type | Loan |
| Issued | 07/10/2018 |
| Outstanding principal plus interest | $73,037 as of 05/2019 |
| Interest | 0.0 per annum |
| Maturity | 01/21/2023 |
| Outstanding | Yes |
| Current with payments | Yes |
| Relationship | President |
Loan I gave to the company with 0% interest. | |
| Name | Maximillian Kovtun |
| Amount Invested | $42,930 |
| Transaction type | Loan |
| Issued | 10/20/2017 |
| Outstanding principal plus interest | $42,930 as of 05/2019 |
| Interest | 0.0 per annum |
| Maturity | 01/21/2023 |
| Outstanding | Yes |
| Current with payments | Yes |
| Relationship | President |
Loan I gave to the company with 0% interest. | |
Capital Structure
| Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
|---|---|---|---|
| Class A | 7,500,000 | 7,500,000 | Yes |
| Class B | 2,500,000 | 1,500,000 | No |
| Securities Reserved for Issuance upon Exercise or Conversion |
|
|---|---|
| Warrants: | 0 |
| Options: | 0 |
Form C Risks:
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 SAFE 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.
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.
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.
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.
Shares 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.
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.
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.
Description of Securities for Prior Reg CF Raise
Additional issuances of securities. Following the Investor’s investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor’s interest in the Company.
Issuer repurchases of securities. The Company may have authority to repurchase its securities from shareholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated investors to the Investor, and create pressure on the Investor to sell its securities to the Company concurrently.
A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the Investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company and the Board of Directors of the Company to manage the Company so as to maximize value for shareholders. Accordingly, the success of the Investor’s investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company and the Board of Directors of the Company. If the Board Of Directors of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company’s assets, there can be no guarantee that the value received by the Investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the Investor’s initial investment in the Company.
Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management and Board of Directors of the Company will be guided by their good faith judgement as to the Company’s best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm’s-length, but will be in all cases consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the Investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.
Minority Ownership
An Investor in the Company will likely hold a minority position in the Company, and thus be limited as to its ability to control or influence the governance and operations of the Company.
The marketability and value of the Investor’s interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its Board Of Directors, and the Investor will have no independent right to name or remove an officer or member of the Board Of Directors of the Company.
Following the Investor’s investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured.
The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor’s interest in the Company.
Exercise of Rights Held by Principal Shareholders
As holders of a majority-in-interest of voting rights in the Company, the shareholders may make decisions with which the Investor disagrees, or that negatively affect the value of the Investor’s securities in the Company, and the Investor will have no recourse to change these decisions. The Investor’s interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor. For example, the shareholders may change the terms of the articles of incorporation for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The shareholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company’s securities in a way that negatively affects the value of the securities the Investor owns. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns. The shareholders have the right to redeem their securities at any time. Shareholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors’ exit may affect the value of the Company and/or its viability. In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor’s interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor’s securities will decrease, which could also diminish the Investor’s voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional stock, an Investor’s interest will typically also be diluted.
The securities offered via Regulation Crowdfunding may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:
- to the issuer;
- to an accredited investor ;
- as part of an offering registered with the U.S. Securities and Exchange Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.
Valuation Methodology for Prior Reg CF Raise
The offering price for the securities offered pursuant to this Form C has been determined arbitrarily by the Company, and does not necessarily bear any relationship to the Company’s book value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.
The initial amount invested in a SAFE is determined by the investor, and we do not guarantee that the SAFE will be converted into any particular number of
shares of Preferred Stock .
As discussed in Question 13, when
we engage in an offering of equity interests involving
Preferred Stock ,
Investors may receive a number of shares of
Preferred Stock calculated as
either (i) the total value of the
Investor’s investment, divided by the price of the
Preferred Stock being
issued to new Investors, or (ii) if the valuation for the company is more than
the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap
divided by (b) the total amount of the Company’s capitalization at
that time.
Because there will
likely be no public market for our securities prior to an initial public
offering or similar liquidity event, the price of the
Preferred Stock that
Investors will receive, and/or the total value of the Company’s capitalization,
will be determined by our
board of directors .
Among the factors we may consider in determining the price of
Preferred Stock are prevailing market conditions, our financial information, market
valuations of other companies that we believe to be comparable to us, estimates
of our business potential, the present state of our development and other
factors deemed relevant.
In the future, we
will perform valuations of our
stock (including both common stock and Preferred Stock)
that take into account, as applicable, factors such as the following:
- unrelated third party valuations;
- the price at which we sell other securities in light of the relative rights, preferences and privileges of those securities;
- our results of operations, financial position and capital resources;
- current business conditions and projections;
- the marketability or lack thereof of the securities;
- the hiring of key personnel and the experience of our management;
- the introduction of new products;
- the risk inherent in the development and expansion of our products;
- our stage of development and material risks related to our business;
- the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
- industry trends and competitive environment;
- trends in consumer spending, including consumer confidence;
- overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
- the general economic outlook.
Company
Travelmate Robotics Inc.- Nevada Corporation
- Organized July 2016
- 26 employees
Las Vegas NV 89101 https://travelmaterobotics.com
Business Description
Refer to the Travelmate Robotics profile.
EDGAR Filing
The Securities and Exchange Commission hosts the official version of this annual report on their EDGAR web site. It looks like it was built in 1989.
Compliance with Prior Annual Reports
Travelmate Robotics is current with all reporting requirements under Rule 202 of Regulation Crowdfunding.
All prior investor updates
You can refer to the company's updates page to view all updates to date. Updates are for investors only and will require you to log in to the Wefunder account used to make the investment.
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