1 Page Investor Summary

1 Page Investor Summary

The Problem: A major cause of rear end collisions is the instance where following drivers can't gauge how quickly the vehicle in front of them is slowing down. This could be because the vehicle being followed might be downshifting, hitting a puddle, or losing speed on a steep incline. The same problem applies to all of these scenarios – a loss in speed. One of the major and most common problems we are addressing is that of commercial vehicles. These vehicles are on the road all day and although being the most trained at driving (we’d hope) pose the biggest liabilities to stakeholders – which is basically everyone on the road. When an accident happens to one of these drivers, it is money out of the pocket of the company or vehicle owner for insurance reassessment/repair costs as well as the opportunity cost that goes along with a truck not on the road – these companies are the lifelines of Canada’s transportation and freight. Insurance prices quoted from an established business owner ranged from 8 000 to 10 000 dollars a year per truck and – If an “incidence” (not even an accident) occurs, they are subject to a very steep increase in sunk costs.

Value Proposition:

Our main value proposition is the decrease in insurance costs that truck owners receive from incidences. Talking to progressive insurance, they told us that a truck starts out at $10,000/year and if the vehicle has been in over 2 incidences their insurance can triple, leaving a huge price to pay.

Our secondary value proposition is the tangible safety that our product provides to all vehicles as well as the ability it presents to drivers behind to make a well thought-out response in case of emergency. The nature of our product is that by letting everyone around see how fast a person is slowing down it provides following drivers the ability to gauge how fast one is planning to stop, and act accordingly. In The USA there are over 2.5 million rear end collisions per year with 30 percent of them being rear end collisions - we believe that our product will significantly reduce this number and save countless lives.

Target Customer: Our customer are the fleet owners. These owners have hundreds of tractor-trailer units and, according to our research, spare no expense when it comes to purchasing safety equipment. These owners encourage their drivers to use engine retardant braking methods to save on brake maintenance costs; however, this method of slowing the vehicle down does not turn on traditional brake lights. We will be selling our unique product to fleet services who have many trucks in one single fleet. They will purchase large numbers of taillights due to them having a large number of trucks and also because they keep a large stock of spare tail lights at their shop so they don’t need to order each individual light as their needed. We will acquire these customers by offering a superior product that has more benefits than the competitors. We will have individual sales persons who will travel from business to business selling our product. Once a customer is acquired the sales people will then be responsible for maintaining the stock of tail lights as well as maintaining customer relations.

Key Resources: Our multiple patents which include various designs to protect ourselves from competition.

The Competition: Our competition is limited because we are the only venture in the market; we’re first.

Your Team:

Adam is in the general BBA program at Mount Royal and has worked as a consultant for business development of an analytical laboratory in Calgary where he was in charge of acquiring, and retaining clients as well as forecasting sales. He is proficient in CRM tools and has contacts in the automotive industry, as well as the manufacturing sector in Canada.

As a licensed electrician, Karan can build and complete complex electrical plans and schematics with ease. Karan first started studying mechanical engineering, later to leave that and pursue a business degree. He has the innate ability to take the teams ideas and concepts and makes them into a physical prototype in which we can tweak and compare and giving DBS much more holistic view.

Justin has experience in managing his own family business that will add value to our team along with a passion for the automotive industry. Justin is on the cutting edge of what’s happening in the auto world, keeping his "finger on the pulse". He also has to take care of the logistics and upkeep that go along with a busy north western restaurant; as well as look to the future. He will add value to our venture through his research and management skills.

Financials: Year 1 – Sales are low because new product and new market. Most promotion is done by us. Expected sales are for 2-3 companies the first 3 months and expansion into 5-6/month for the next 6 months and steady growth afterwards

Year 2 – Looking outside of Alberta and expanding into Canada as a whole. Sales would increase

Year 3 – We’re continuing our growth by expanding further into the US market as well as bringing in our 2nd product, our patented light for all vehicles which we’d be licensing out to auto part manufactures.

Year 4-5 – Continuation of growth into Europe and contracts with auto part companies such as Magna to manufacture our light for automobile companies.

The Close: $500,000 to cover for our initial investment and the losses we expect to incur in the first 2 to 3 years, due to our evaluation matrix this will get you 12% of our company and make you a partial partner in our company.