- Customers include Jennifer Aniston, Jimmy Carter, Timothy Hutton and David Spade
- Named by Time Magazine as one of the best inventions of the year (2002).
- Partnerships with FIAT/Chrysler in Brazil, Razor USA
- Joint Venture in China
- Holds Two U.S. and International Patents
- Amount raised:
- Series A :
- Minimum Investment: US $500 per investor
- : Crowd Note
- US $8,500,000 :
- Side by Side Offering
As the world’s cities become congested and polluted, new business models and technologies are emerging to disrupt traditional urban mobility challenges. Electric cars can’t solve that problem. In fact, we believe they are adding to it. People are using cars for very short trips, which has a negative impact on both the environment and city budgets--all while offering no inherent health benefits.
Electric bicycles are often touted as the leading solution, but present shortcomings in design, ergonomics, functionality, and performance.
Small, personal vehicles provide a solution.Trikke is a low-cost, portable, emissions-free personal vehicle created to meet and overcome this challenge. It is specifically designed for easy and intuitive use, superior ergonomics, active riding, improved stability, superior performance, and fun for practically any age and lifestyle.
At Trikke, our core passion is to provide a superior ride experience, design, engineering, and performance.
Trikke was founded in 2000 by inventor and designer Gildo Beleski to develop, build, and market vehicles with the goal of improved stability while allowing for an active (standing) riding position, intuitive use, and safe handling. Trikke is building an iconic brand that resonates with passion for speed, performance, and a joyful feeling of freedom.
“Combining my experience in the automotive industry with mechanical design background and the love for sports, I decided to develop the Trikke. A vehicle that is stable, agile, and performs like a racing car, where the rider is integrated with the machine, engaged in an active, sporty ride. I want you to join me in this ride!”
- Gildo Beleski, Trikke Founder and Designer.
What is a Trikke?The Trikke is a personal vehicle, featuring an articulated cambering frame and three wheels, which maintain constant contact with the road in a variety of conditions--even on turns or uneven surfaces. Its steering handlebar is connected to the front wheel and two foot platforms, and the rider engages in an active stand-up stance. This configuration results in outstanding stability and great maneuverability. It also allows for body propulsion of the vehicle through conservation of angular momentum (carving turns side-to-side)
The Trikke is not a scooter. It’s not a bicycle. It’s not a car. Trikke defines a new category: Carving Vehicles.
A vehicle with three points of contact that dynamically adapts to various surfaces • Stable riding platform • Active riding experience • Allows for body propulsion • Expandable vehicle technology • Foldable and easily transported
Trikke isn’t just a single product. It's a versatile technology framework that allows innovative vehicles to be built for numerous applications and terrains, both on- and off-road. Our vision is that Trikke will continue to evolve, becoming one of history's top personal vehicles.
- Kids (Ride-on toy market - since 2002), currently 3 models
- Body-propelled vehicles (Fitness market selling - since 2004), currently 4 models
- Skki, snow skiing vehicle (Winter sports market - since 2006), currently 2 models
- Light electric consumer vehicles (Recreational and Personal Mobility market selling - since 2009), currently 4 models
- Light electric vehicles for Professional use - since 2012, currently 2 models
Planned Product Releases:
- July 2017 release of Defender 3WD with 3-wheel-drive, full suspension designed for Professional use: Law Enforcement, Security Surveillance.
- September 2017 release of Defender Golf with golf bag attachment and special turf tires.
- December 2017 release of T10 (Top of Fitness line, with a new re-designed aluminum frame)
- May 2018 release of Sp33der (High-end electric consumer)
- November 2018 release of Bronkko (Off-road high performance electric)
- May 2019 release of Trikke 3JET (Electric jet-ski)
What have we done?
We have designed and developed Trikke products for over 15 years, making Trikke a platform for fitness with acclaimed success. Our electric powered vehicles have been tested for over 7 years with outstanding results in the consumer, tourism, and professional markets.
We have established assembly lines for the electric vehicles in the USA, Netherlands, China, and Brazil and developed partnerships with Fiat/Chrysler in Brazil selling LEVs with FIAT and Mopar brands. Our kids fitness products are present in PE programs at more than 150 schools in the USA. We’ve also formed a network of over 130 Trikke personal trainers around the country and abroad, and established ourselves in 17 Countries.
We have created a strong and desired presence for the products and brand worldwide. Many of our growing number of fans collect Trikkes now, with different models for any occasion. Numerous celebrities have adopted it as well, including former President Jimmy Carter, who rides a Trikke and loves it!
Why are we raising money?
With an extensive product line supported by investment capital, we will focus on specific products and markets to make the most of the opportunity. We plan to aggressively promote our personal e-mobility vehicles to the consumer and professional markets.
For the Consumer market, we will promote the products and the ride experience through demonstrations throughout various communities, local fairs, RV parks, and trade shows, deploying a network of "Trikke e-mobility" mobile dealers. We will capitalize on the momentum and demand for e-bikes on the web marketplace, highlighting the advantages of the Trikke design over the bikes through research and multimedia outreach.
For the Commercial/Professional market, we will target the different channels with specific sales professionals with access to law enforcement, security, golf course, and delivery clients. We will continue to invest in our R&D and manufacturing to support our business needs and keep a balanced inventory of products available for sale, a fleet of demo vehicles for our sales reps and work on alternatives to support sales efforts such as the lease option.
What is the media saying?
Trikke landed on the cover of Time Magazine in 2002 as one of the year’s best inventions.
“Flowing, exhilarating all body-movement that provides an excellent workout yet can feel as effortless as flying. The bird’s eye view of the standing position is quite fun and comfortable, including for overweight folk who finds the seated bike position irritating.” Los Angeles Times
“It’s an enormous amount of fun.” Time Magazine
“The Trikke Electric vehicle’s big point-of-difference is actually that it’s so easy to ride.” Gizmag
What are the customers saying?*
"When I started riding the Trikke I was about 100 pounds over the weight capacity of the Trikke Pon-e 48v. I fully expected the Trikke to break and send me flying into a jogger on the bike path to and from work everyday at some point. It didn't. Not only did it not break, but I have spent over a YEAR putting 12 miles a day on the thing (clearly on days that were warm enought to ride, and not raining - although I did go out in the wet weather, I did not do it in actual rain). That's right I lost 105 pounds usin[g] the Trikke Pon-e 48v. I can say it was just the Trikke because I've done nothing different. NOTHING." - Phillipe Ferreira.
"I’m a relative[ly] Old Guy (at 55) and former Surfer, and I had a chance to try out the Pon-e when a friend of mine (Mike Armstrong) brought his by, and it was the most fun I’ve had since I had to stop Surfing 16 years ago. I’ve been researching modes of Personal Transportation and what I found was, the Pon-e was simple to learn to use, and a natural desire to carve turns was easily turned into a reality, without a single worry of its use being hard to master. I literally just got on it and put it through some test runs in my parking lot to see how it performed/worked (I had never been on anything like it) and it was almost like surfing again (for me).It was a BLAST!!!!!!!" - Forrester Rupp
"You don’t even have to think about any other options. I’ve been an avid motorcycle enthusiasts for 47 years,but the first time I rode the Trikke 48 volt LEV pon-e, I noticed something different . I was smiling, and everytime I ride the Trikke I’m still smiling. I’m having not just fun,I’m having a blast. Blasts are hard to come by at 69. I actually believe this scooter put some more time on my books. Can’t wait to get up and get going for my morning dose of BLAST! I don’t think you could be anything but happy while riding this amazing machine, and it’s so easy anyone can do it in a manner of minutes. Whoever came up with this idea, THANKS for the fun." - D. Probasco
"It’s not an electric scooter. On a Pon-e, you’re not mere cargo, you’re a cyborg. Your spirit informs the beast you ride. The pricing is low for such high quality machinery. Electric bikes usually start at $2,500, so the Pon-e is far more fairly priced and delivers INTENSE THRILLS. Bikes are riskier to ride, bonk you with repetitive stress injuries, and bore you with the same damned muscle action endlessly droning. 7 cents of electricity gets you 20 miles – a world-class workout." - Trikke Guy
“Great for indoor and outdoor use. Narrow enough to easily pass through an interior doorway.”
“It is easy to see over people as you ride around or through crowds.”
“Great mobility, quick response when needed. Allows greater visibility, easy to maneuver.”
“Lots of questions about it from customers. Lots of ‘That’s cool!" - Sacramento Airport Sheriff’s Department Police
“The Trikke EV has many uses on a police force, you can be much more observant and much more in touch than driving around in a car. Walking a foot beat is probably the best way to find crime and snoop around in alley ways, etc., but the Trikke lets you do this faster.” “Stealth qualities are a great benefit.” “The Deputies cover a lot of territory with ease.” “The Trikke EV can be folded up and put in the trunk.” “We were able to ride them right into the elevator.” - Sgt Pond, Santa Barbara Sherriff’s Dept. Solvang CA (Population 5,300)
“The Trikke is easy to maneuver indoors and outdoors. It is awesome for changing perceptions of safety and security presence. Patients, visitors and staff all smile when I conduct patrols on the Trikke.” - Santiago Chambers, Manager of Safety and Security, Children’s Hospital of Los Angeles
“Elevation/sight-line, speed and ease of use, maneuverability, lightweight, inexpensive to buy, inexpensive to fix, great sales and repair support…” Eli Ott - Director of Operations, City Center Partnership, Columbia, SC
“We were motivated to open Aloha Trikke Tours because Trikke Light electric vehicles are such a unique vehicle that provide a great experience which can be shared with everyone on vacation in Waikiki. There’s nothing else like that! The advantage of the Trikke is we can ride on a sidewalk or bike lane and provide tours in a safe and effective way.” - Thales Lopes, Owner Aloha Trikke Tours
“Offering Trikke Tours is a great option for customers who are looking for adventure and culture on environmentally responsible equipment. A very small amount of time is required for beginners to learn how to use the equipment. From an operational point of view, Trikke’s are very reliable on performance and maintenance. Every day, we enjoy showing customers the most iconic spots of Dominican Republic.” - Miguel Ramirez, Owner Trikke Dominican Republic
What are the Tourists saying?*
"FORGET THE SEGWAY!!! Aloha Trikke was one of the best vacation experiences we ever had! Steve hooked us up and then AJ …our guide did a super marvelous job and he even took pictures for us. He also educated us on the history of Oahu and gave us pointers on how to sound like a local and not a tourist. You rock brother and Aloha Trikke is truly a must do activity on the Island. The best way to see sites w/o having to walk or be stuck on one of those crowded tour buses. Lastly, I just loved all the looks we received while cruising by all those tourists walking in Waikiki. Just loved it!!!!" - J Walton Waikiki, Hawaii, USA
"With a few friends we experimented Trikke and It was really nice! You get to know the different cultural places of the colonial zone in a really fun way. The guide is good and give you interesting explanations and is very available if you have any doubt about something. And the engine is really easy to use and stable so no worries, from the youngest to the oldest you can use it :). Plus to mention: It is very ecological and practical." - Juanita LB Santo Domingo, Dominican Republic
"Having a private guide for 2hrs on your first day in Athens is great. Doing it on electric Trikke scooters is a splendid way – it is intuitive, comfortable, and a fantastic way to cover a lot of territory. That way we got great photos, a fun morning, and to me the best thing was we were then properly oriented to hit the areas around Acropolis the following day. Nikos not only had a great sense of humor and wealth of knowledge, he also clearly enjoys doing a job very well. Which he does." Chris C Athens, Greece
*Disclaimer: The following individuals were not compensated in exchange for their testimonials. In addition, their testimonials should not be construed as and/or considered investment advice.
“Back in the late 80s in Brazil, I tried out skateboards and roller skates. The carving motion felt like magic. Playing with gravity gave me a wonderful feeling like no other. But I realized that at any moment, I could lose my balance or have a hard time stopping. And the falls and crashes… I certainly didn’t enjoy that part. Having ridden bicycles my entire life, I knew I couldn’t carve efficiently while seated with a frame between my legs. Also, the seat itself was always a literal pain in the butt. And the repetitive cranking on the pedals, and that chain… No thank you!
I envisioned creating something simple for balance and stopping at will—a skateboard with handlebars and brakes like a bicycle. I wanted the freedom of using my legs and transferring my weight like with roller skating.
I imagined my creation having three wheels to guarantee balance, but with an articulated frame to allow leaning (or carving) while keeping all three wheels on the ground at any given time. A machine you actively ride with your body functioning as part of the frame--like a cyborg. I took it further, dreaming of platforms like skateboards, rather than bike pedals or ski boots. A vehicle to safely skate downhill.
The first prototype rode impressively well, proving stable and easy to control, but the skateboard-like wheels were limited without good pavement. Before long, I swapped out those small wheels for larger air tires.
After many downhill rides using gravity power, I ventured onto flat terrain, scooting, pushing off, and adding carving and handlebar movements while coasting, like you sometimes do with a bicycle.
What a discovery! The Trikke body-powered machine was born. I could maintain the forward momentum without ever touching the ground. I quickly experimented with alterations to the frame and wheels, adding features to improve propulsion. At the same time, I learned how to better ride my new creation. I worked on my technique and improved my efficiency with every ride. I love sports and endurance, and this played a key role in the Trikke’s development. I took countless rides, built many prototypes, but amazingly, I had few falls or crashes.
After two years, my friends and I were climbing hills and going on 30-mile rides. Still, the prototypes needed work, such as better wheels, tires, bearings, brakes—higher performing components and a lighter frame to improve ergonomics and efficiency.
Then times changed and I had to focus on my current career, working in the automotive industry and running my own business servicing high end cars. I also raced cars for fun, and learned more about sheer performance and the importance of good handling. My business brought me to the United States for several auto shows. During one event, a friend took me to Miami’s South Beach. I was mesmerized, seeing so many people riding in-line skates, skateboards, and bicycles. Recreation on wheels! I immediately saw the potential for Trikke.
After some soul searching, I decided to pursue my real passion and dream: designing, developing, and riding Trikkes as an entrepreneur in America.
In 1999, I applied for a patent on an improved design for a three-wheel cambering vehicle with the US Patent Office. In 2000, I founded Trikke Tech, Inc. in Southern California, shipped in 100 frames from Brazil, and assembled them in my garage (with better components than earlier designs). These models were already a huge leap forward in performance. I hit the streets and began demonstrating my Trikkes, talking to people and making friends.
And as they say… the rest is history.”
- Gildo Beleski, Trikke Founder, Designer, CEO.
A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.
|Terms & Description|
|Investor Types||Accredited Only||Accredited and Non-accredited|
|Series A||Series A|
|Round size||US $1,500,000||US $1,500,000|
|US $0||US $10,200|
|Minimum investment||$20,000||US $500|
|US $200,000||US $200,000|
|US $8,500,000||US $8,500,000|
|CF Offering Cap||While Trikke Tech is offering up to $1,500,000 worth of securities in its Series A, only up $1,000,000 of that amount may be raised through Regulation CF.||While Trikke Tech is offering up to $1,500,000 worth of securities in its Series A, only up $1,000,000 of that amount may be raised through Regulation CF.|
|Closing Conditions||The Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $25,000 under the Regulation CF offering and a total of $200,000 under the Combined Offerings (the “Closing Amount”) by the offering end date, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.||The Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $25,000 under the Regulation CF offering and a total of $200,000 under the Combined Offerings (the “Closing Amount”) by the offering end date, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.|
- TRIKKE shirt to all investors and 20% off one time purchase of any item at trikke.com
- Trikke Freedom to investments over $30,000
- Trikke Pon-e 48V to investments over $60,000
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Our financial statements can be found in Exhibit B to the Form C which can be found below. The financial statements were reviewed by Artesian CPA, LLC.
The following discussion includes information based on our unaudited operating data for 2016 and 2015 and is subject to change once we complete our fiscal year, prepare our consolidated financial statements and our accountant completes a financial review of those statements.
Results of Operations
For the year ended December 31, 2016, our net revenues were $2,201,220, an increase of 8.5% over net revenues of $2,029,103 for the year ended December 31, 2015. This increase was due to increase in international sales. Cost of net revenues for 2016 was $1,179,031, compared to $1,034,696 for 2015, resulting in gross profit of $1,022,189 and $994,407 for 2016 and 2015, respectively. Gross margins were 46.4% and 49.0% for 2016 and 2015, respectively. Margins decreased slightly due to large international sale at a lower margin.
Our operating expenses consist of compensation and benefits, research and development, sales and marketing and general and administrative costs. Operating expenses decreased 5.3%, to $972,593 in 2016 from $1,026,873 in 2015. The primary components of this change were:
- A decrease of 16.0% in compensation and benefits, due to CEO leaving the company in 2015.
- Decreases of 14.6% and 7.3% in research and development and sales and marketing costs, respectively.
- An offsetting increase of 18.9% in general and administrative expenses, due to reducing expenses and costs.
Other expense consists of interest expense, which was $28,971 in 2016 compared to $25,709 in 2015.
As a result of the foregoing, we recorded net income of $20,625 in 2016, compared to a net loss of $58,175 in 2015.
Liquidity and Capital Resources
At December 31, 2016 we had cash on hand of $40,182. We currently have a line of credit with Rabobank in the amount of $49,999.
We have entered into a number of loan agreement described in “Indebtedness” and under those agreements are required to make debt and royalty payments. Minimum debt payments under those agreements for 2017 and 2018 are $280,242 and $195,891, respectively and royalty payments under those same agreements for 2017 and 2018 are $13,334 and $16,000, respectively. Payments under these agreements will impact our liquidity for a number of years. See Note 4 to our financial statements.
From 2001 through 2002, we entered into a number of short-term loan agreements with company officers and third parties with interest rates of 0% pursuant to which we would make royalty payments. As of December 31, 2016, we owed $145,000 in principal and $77,667 in royalties under these loans.
On August 1, 2008, we entered into a 120-month term loan agreement with First Bank, in the amount of $195,000, bearing interest of 6.25% per annum with a required monthly principal and interest payment of $1,296. The lion is secured by our building. The unpaid principal balance was $159,824 as of December 31, 2016.
On January 15, 2009, we entered into a loan agreement with an officer of the company, in the amount of $100,000, bearing interest of 3.88% per annum with no required monthly payments. The unpaid principal balance was $0 as of December 31, 2016 and 2015, respectively as the loan was paid off on September 1, 2016. the unpaid accrued interest balance was $13,807 as of December 31, 2016.
On October 10, 2010, we entered into a loan agreement with an officer of the company, in the amount of $50,000, bearing interest of 3.88% per annum with no required monthly payments. The unpaid principal balance was $49,980 as of December 31, 2016. The unpaid accrued interest balance was $14,068 as of December 31, 2016.
On October 10. 2010, we entered into a loan agreement with an officer of the company, in the amount of $50,000, bearing interest of 3.88% per annum with no required monthly payments. The unpaid principal balance was $38,765 as of December 31, 2016. The unpaid accrued interest balance was $13,395 as of December 31, 2016.
On September 9, 2013, we entered into a 36-month loan agreement with a third party in the amount of $100,000, bearing interest of 6.55% per annum with a required monthly interest payment of $542. The unpaid principal balance was $95,652 as of December 31, 2016. The unpaid accrued interest balance was $13,589 as of December 31, 2016.
On October 31, 2014, we entered into a loan agreement with an officer of the company, in the amount of $30,000, bearing interest of 3.88% per annum with o required monthly payments. The unpaid principal balance was $30,000 as of December 31, 2016. The unpaid accrued interest balance was $2,477 as of December 31, 2016.
On October 9, 2015, we entered into a 42-month term loan with Ford Credit, in the amount of $29,319, bearing interest of 3.54% per annum with a required monthly principal and interest payment of $534. The loan is secured by an automobile. The unpaid principal balance was $22,457 as of December 31, 2016.
On November 18, 2015, we entered into a loan agreement with an officer of the company, in the amount of $25,000, bearing interest of 3.88% per annum with no required monthly payments. The unpaid principal balance was $25,000 as of December 31, 2016. The unpaid accrued interest balance was $1,054 as of December 31, 2016.
Further information with respect to our indebtedness can be found in Note 4 to our financial statements.
Recent Offerings of Securities
We have not issued securities within the last three years. On December 5, 2016, the company acquired 1,071,667 shares of Common Stock from John Simpson for no consideration. The company has not issued securities since 2006.
The company determined the valuation cap, discount, and interest rate of the Crowd Notes in this offering internally based on its own assessment of the company's current and future value, as well as relative risk for investors investing in similarly situated companies. The Crowd Notes may convert to equity securities of the company in the future if the company engages in future equity financings. At that time, the valuation of the company will be determined through negotiations with prospective investors. Those prospective investors may determine the value of the company through one or multiple methods which include:
Liquidation Value — The amount for which the assets of the company can be sold, minus the liabilities owed;
Book Value — This is based on analysis of the company’s financial statements, usually looking at the company’s balance sheet; and
Earnings Approach — This is based on what the prospective investor will pay (the present value) for what the prospective investor expects to obtain in the future.
Market trends: Light urban mobility is rapidly becoming more popular | Eco-friendly solutions, sensible alternatives | Improved battery technology | Health benefits of stand-up activities vs. seating | Exponential growth of the e-mobility market and opportunities.
The market for light electric vehicles is booming. The sales growth has been exponential for the past 6 years and is expected to keep that momentum for many years to come.
“Rising levels of population density and traffic congestion are driving interest in different modes of transportation,” says Ryan Citron, research analyst at Navigant Research. “E-bikes are uniquely positioned to be a primary benefactor of this trend since they are low in cost relative to cars, do not require licenses to operate."
“Small manned electric vehicles - often sell in the largest numbers. They will reach over $35 billion in 2027. E-scooters will dominate the small electric vehicle business followed by three-wheel micro EVs. Close behind, four wheel car-like versions and e-bikes are also set for robust sales.” Source: IDTechEx
There are already hundreds of electric bicycle companies out there with successful sales. Trikke vehicles have been under constant development for the past 15 years and have proved to be a superior vehicle compared to electric bicycles, electric scooters, or Segways. Why? Because it’s more ergonomic, easier to ride, more stable, more maneuverable and agile, offering a more natural, intuitive, and comfortable ride.
With the launch of our new 3-wheel-drive (3WD) models with full suspension and all-wheel brakes, Trikke rates above and beyond the top electric bicycles in the market, in technology, performance, and range. This new configuration extends the use of the vehicle to rough terrain, hilly areas, and heavier riders.
The different market opportunities:
1. CONSUMER (B2C): Urban transportation and recreation
2. PROFESSIONAL (B2B): Tours, security, law enforcement, EMS, golf, staff mobility
- RECREATIONAL: Baby Boomers looking for low-impact, fun ﬁtness. A standing, enjoyable ride that provides bodily strengthening and toning
- URBAN TRANSPORTATION: Busy Urban Workforce. Affordable, transportable people-mover for ﬁrst and last mile integrations with public transportation, general commuting
- TOURS: Sightseeing, guided group tours.
- PATROL (Security/Law Enforcement/EMS): Improves movement of individuals where cars are not permitted or unable to navigate freely due to crowds or lack of clear roadways. In addition, officers on personal vehicles are perceived as more approachable by the public than officers in patrol cars.
- GOLF COURSES: An electric personal caddy featuring all-wheel-drive that brings fun and excitement to the game and makes you feel like skiing. Easy and practical to use for all ages.
- STAFF MOBILITY: Provides eﬃcient movement of personnel and light cargo on large public and private installations. Navigates easily through interior doorways, up elevators/escalators, and along outdoor walkway.
We are selling convertible notes that will convert into shares or result in payment in limited circumstances. These notes do not have a maturity date and only convert or result in payment in limited circumstances. If there is a merger, buyout or other corporate transaction that occurs before a qualified equity financing, investors will receive a payment of the greater of two times their purchase price or the amount of preferred shares they would have been able to purchase using the valuation cap. If there is a qualified equity financing (an initial public offering registered under the Securities Act or a financing using preferred shares), the notes will convert into a yet to-be-determined class of preferred stock. The notes will convert at a discount of 20%, or based on a valuation cap meaning investors would be rewarded for taking on early risk compared to later investors. But you won’t know how much your investment is worth until that happens. The outside investors at the time of conversion, if any, might value the company at an amount well below the $8,500,000 million valuation cap, so you should not view the $8,500,000 million as being an indication of the company’s value. Further the interest on the notes is accrued interest, therefore you will not receive interest payments on these notes. If you choose to invest, you should be prepared that your notes will never convert and will have no value.
We have not assessed the tax implications of using the Crowd Note. The Crowd Note is a type of debt security that does not include a set maturity date. As such, there has been inconsistent treatment under state and federal tax law as to whether securities like the Crowd Note can be considered a debt of the company, or the issuance of equity. Investors should consult their tax advisers.
Any valuation at this stage is difficult to assess. 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. In addition, there may be additional classes of equity with rights that are superior to the class of equity into which the Crowd Notes are convertible.
The Crowd Note contains dispute resolution provisions which limit your ability to bring class action lawsuits or seek remedy on a class basis. By purchasing a Crowd Note this offering, you agree to be bound by the dispute resolution provisions found in Section 6 of the Crowd Note. Those provisions apply to claims regarding this offering, the Crowd Notes and possibly the securities into which the Crowd Note are convertible. Under those provisions, disputes under the Crowd Note will be resolved in arbitration conducted in Delaware. Further, those provisions may limit your ability to bring class action lawsuits or similarly seek remedy on a class basis.
You may have limited rights. As an investor in the Regulation CF offering you will be considered a non-Major Investor under the terms of the notes offered, and therefore, you have more limited information rights and you will not have the right to automatically participate in future offerings, and therefore not have the same anti-dilution protections as Major Investors.
You will be bound by an investment management agreement, which limits your voting rights. As a result of purchasing the notes, all non-Major Investors (including all investors investing under Regulation CF) will be bound by an Investment management agreement. This agreement will limit your voting rights and at a later time may require you to convert your future preferred shares into common shares without your consent. Non-Major Investors will be bound by this agreement, unless Non-Major Investors holding a majority of the principal amount outstanding of the Crowd Notes or majority of the shares of the preferred equity the notes will convert into, vote to terminate the agreement.
You can’t easily resell the securities. There are restrictions on how you can resell your securities for the next year. More importantly, there is no market for these securities, and there might never be one. It’s unlikely that the company will ever go public or get acquired by a bigger company. That means the money you paid for these securities could be tied up for a long time.
The reviewing CPA has issued included a “going concern” note in the reviewed financials. We may not have enough funds to sustain the business until it becomes profitable. Even if we raise funds through a crowdfunding round, we may not accurately anticipate how quickly we may use the funds and whether it is sufficient to bring the business to profitability.
The company has recorded deferred wages in the amount of $105,422 as of December 31, 2016. The company has deferred wages payable to two officers of the company, as of December 31, 2016 and 2015 the amount due was $103,422 and $88,653. This may affect the organization of the company if these officers decide to raise any legal issues or leave the company as a result of the deferred wages. If any of the use of proceeds of this offering is used to repay deferred wages, that money will not be available to use for other purposes.
We have borrowed significant amounts from related parties and third parties. Our minimum debt payment under a series of loans, lines of credit and similar borrowings from related parties and third parties alike for 2017 and 2018 are $280,242 and $195,891, respectively and royalty payments under those same agreements for 2017 and 2018 are $13,334 and $16,000, respectively. Some of those loans are secured by company assets and receive royalty payments from the company’s revenue of customer sales. We are not using the proceeds of this Offering to pay off these loans, but payments under these agreements will impact our liquidity for a number of years. We need to grow our revenues enough to service and repay these borrowings if we are to survive.
We have a small management team. We depend on the skills and experience of Jose Gildo Beleski, Ana L D’Arace and Catherine Bunke. Although they work full time, they constitute a small management team. Our ability to raise sufficient capital may have an impact on our ability to attract and hire the right talent to support them.
We have a number of competitors. There are already a number of companies providing similar products. While these competitors may not offer the same 3-wheeled carving scooters, they may be able to design, manufacture and sell products that achieve similar benefits to consumers at a lower price.
The company has two US patents as well a European patent and a Chinese Patent. The company’s profitability may depend in part on its ability to effectively protect its proprietary rights, including obtaining patent protection of its methods of producing the product, maintaining the secretary of its internal workings and preserving its trade secrets, as well as its ability to operate without inadvertently infringing on the proprietary rights of others. There can be no assurance that (i) any company - related patents will be issued from any pending or future patent applications; (ii) the scope of any patent protection will be sufficient to provide competitive advantages; (iii) any patents the company obtains will be held valid if subsequently challenged; or (iv) others will not claim rights in or ownership of the company patents and its other proprietary rights. Unauthorized parties may try to copy aspects of products and technologies or obtain and use information it considers proprietary. Policing the unauthorized use of proprietary rights is difficult and time-consuming. The company cannot guarantee that no harm or threat will be made to its intellectual property. In addition, the laws of certain countries are not expected to protect our intellectual property rights to the same extent as do the laws of the United States. Administrative proceedings or litigation, which could result in substantial costs and uncertainty, may be necessary to enforce its patent or other intellectual property rights or to determine the scope and validity of the proprietary rights of others. There can be no assurance that third parties will not alert patent infringement claims in the future with respect to its products or technologies. Any such claims would ultimately require us to enter into license arrangements or result in litigation, regardless of the merits of such claims. Litigation with respect to any infringement claims or any other patent or intellectual property rights could be expensive and time consuming and could have a material adverse effect on our business, operating results and financial condition, regardless of the outcome of such litigation.
Uncertainty with respect to US trade policy may reduce our manufacturing choices and add to our expenses. Most of the suppliers of raw materials and/or manufacturers of our products are not the United States.. The current US President indicated a desire to re-negotiate trade deals and potentially imposing tariffs on foreign countries, including China. We may incur additional expenses if we are forced to base our manufacturing in the United States.
The potential markets for our products are characterized by rapidly changing technology, evolving industry standards, frequent enhancements to existing treatments and products, the introduction of new services and products, and changing customer demands. The company’s success could depend on our ability to respond to changing product standards and technologies on a timely and cost-effective basis. In additional, any failure by the company to anticipate or respond adequately to changes in technology and customer preferences could have a material adverse effect on its financial condition, operating results and cash flow.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. 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. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company’s employees, including its management. You should carefully review any disclosure regarding the company’s use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
Frequently Asked Questions
A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.
The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.
Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.
Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive shares, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Trikke Tech. Once Trikke Tech accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Trikke Tech in exchange for your shares. At that point, you will be a proud owner in Trikke Tech.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or government-issued identification
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
The Crowd Note is a security which allows crowd investors to largely realize the same economic benefit traditional investors have historically received when investing in startups. For a convertible note round, investors under $20,000 will have their investment convert into preferred equity at liquidity event, locking in a share price at a discount to the next priced round, and will have an interest rate on their investment. Investors investing $20,000 and over will convert into preferred equity at the subsequent priced round at a discount to that priced round and will have an interest rate on their investment. For a priced round, investors under $20,000 will have their investment convert into preferred equity at a liquidity event, locking in the share price of the current round.
An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Separately, Trikke Tech has set a minimum investment amount of US $500.
Accredited investors investing $20,000 or over do not have investment limits.
You are a partial owner of the company, you do own shares after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.
In certain circumstances a company may terminate its ongoing reporting requirement if:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- The company ceases to do business
However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.
Currently there is no market or liquidity for these shares. Right now Trikke Tech does not plan to list these shares on a national exchange or another secondary market. At some point Trikke Tech may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Trikke Tech either lists their shares on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is Trikke Tech's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the Trikke Tech's Form C. The Form C includes important details about Trikke Tech's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your shares have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your portfolio page
If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.