MobileSpike Investor Update, March 22, 2019

Hello All from MobileSpike HQ!

First, we would like to thank you all for your support of this most important venture. Our business is a life-saving business. But it is also an opportunity for all of us that chose to step and either work, or invest, to reap the rewards of being the company that solved this problem. We have worked harder, and most certainly longer, then any of us thought we would need to in the beginning. But this particular venture, like so many others, rarely plays out the way one would expect. However, no matter how events play out in a start-up, this is my philosophy on the matter:

If you make a commitment to investors, you have no choice on what direction to move. The choice has been made, and one must move forward.

That being said, our team has made incredible progress. I have chosen to go all the way back to the Crowdfunding phase so that everyone has all the info. We have several different platforms and not everyone is engaged with every platform so this represents all of the major, noteworthy items since clear back then.

• We budgeted $347,000 to develop, test, and roll out our brand new Gen2 MobileSpike system. For those of you who don’t know, the goals for Gen2 system were to significantly lower the retail price of the system while simultaneously increasing the company’s profit margin. We were to accomplish this by redesigning the system from the pneumatically actuated and mechanically retracted Gen1 system, to the all-electric system we had then designed. Even though we raised a mere $220,000 of the amount budgeted, our team buckled down and got it done despite the lack of development funds. A lot of people worked for months and months without pay, and those same people took money out of their own pockets, sometimes on a daily basis, to get this done.
• Prior to this, a very good friend of the company, and the closest of personal friends to CEO Michael Moormeier came to be a very important part of our company. COO Gabriel Terreson is this company’s go to guy for everything we need, going well above and beyond operations. Mr. Terreson has provided us with years of work, not taking a dime, believing in our mission, and single handedly moving the company forward in ways we could not have needed more. He is the man who just flat gets it done. Professional and fast, thorough and stress killing, Mr. Terreson has become a part of the core of this company. We are more than pleased to have him add his name to this company.
• Next was the testing. Qualified Law Enforcement personnel were asked to lend their experience to the process so as to speed the process along as much as possible. Testing was extensive and thorough, and the new system not only performed as expected, it was smoother and much faster than the Gen1 system.
• At this point we set out to raise more capital. We were all still working without pay, but parts need to be purchased so off we went. We raised about $300,000 and were able to pay for some very expensive mold and tooling fees, develop a state of the art wiring harness and battery pack, and hire some much needed office staff.
• During this entire time, potential customers continually contacted us expressing their desire to start a MobileSpike program as our technology is the best there is, and our customers see that. In addition, current customers whose MobileSpike systems were normally mounted on Crown Vics contacted us looking for an upgrade. Happy customers. What could be better than that?
• Around this time, this company’s oldest friend and team member, Lt. Steve Hiersche Ret. nearly insisted that we talk to an old friend and co-worker of his named Robert Levy. Mr. Levy is a 30 year undersheriff from California and served with distinction, as well as setting records for his office on the admin side. In his time in California, to say that he was well respected and admired would be an understatement. Mr. Levy is currently the #1 sales person at his present company selling high tech equipment to corrections facilities across the country. Mr. Levy is now the head of Business Development and sales with MobileSpike and we look forward to the day when our funds allow for his full time employment. Our sales, distribution, and business development will surely take a drastic jump when that day comes.
• With the Gen2 fully developed, the team began to source manufacturers and suppliers and soon we had all the parts and pieces coming our way. This included custom push bumpers made for us by the good people at Setina Manufacturing. Setina is the finest company in the industry with a long and proud heritage and we are happy to have a fine working relationship with them.
• This brings us to the current moment in time. The first Gen2 units are complete, the push-bumpers are developed, and our first units have just shipped! Revenue is being generated and our hard work and dedication is paying off.
• We have 7 or 8 customers waiting for product which totals about $200,000 so that will be happening as we have the completed inventory available to sell. I must say, it is very good to have that kind of revenue waiting!
• We also have a new, very large investor who we are now partnering with, and due to the vast amounts of time we have had to spend raising funds, this investor is a welcome relief. He has a team that he has put together containing some of the top Law Enforcement officers and agents in the country!! And we are talking, the very, very top of the Law Enforcement community. This will give MobileSpike inroads into Federal agencies that were never part of our financial projections! It’s a big deal. Big. This is great news for the company, and the shareholders.
• We have hired a new staff, including an Administrative assistant who we are putting in charge of posting regular investor updates to all of our platforms. I know the updates have been scarce, but just know that those days are over and good news is sure to come on a regular basis!
• Finally, it’s important that all of you know what our plans are for the next 6 months or so.
  • As I mentioned, we have a new investor, with MAJOR (and I do mean MAJOR!) connections in the Law Enforcement and Government world. We have a two stage plan in place with the investor in which he is financing our initial inventory run, and then will be investing a large amount once the initial inventory run is sold through. In the meantime, he and his two partners (whose names I cannot mention quite yet as they are a bit famous, and we are still in the midst of contract negotiation) will be “opening doors” for sales of MobileSpike in local, county, state and FEDERAL jurisdictions.
  • The second stage of our business with this investor begins when the initial inventory is sold through. At this point he has committed to a large investment for operations, sales and marketing, and equipment. This will be nice as fundraising takes so very much time.
  • We will need to continue to raise funds until our current offer expires in about three months. These funds will cover all the expenses related to selling through this first run of inventory. I am very excited to finally be raising money to put MobileSpike units on the street! That is where we are. Very pleased.
  • This should be our last offering to sell shares in the company as our margins will allow the company to run under its own steam very shortly. This is great news for us! GREAT news! If I’m honest, I am so very tired of raising money. I’ve had to do it endlessly, and it takes our attention and time from every single business building activity there is. When you’re raising money, you are preparing to be productive, not being solely productive, and I am sick of it. Haha. But really, I am sick of it. Now don’t get me wrong, I love my investors, I just hate looking for them. At any rate, anyone reading this who would like to invest can do so for a short while. The minimum is only $500 for current investors. And, any new investor referrals you could send our way would help the company greatly. We are busy, we need your help, and the minimum for new investors is only $15,000. And again, this will most likely be the last opportunity anyone will have to acquire shares in MobileSpike.
  • And THAT would be the next 6 months. Development done. Production finalized. Units selling. Fundraising over. Praise God. This is our year shareholders!

Until next time,

With the warmest of personal regards,

Michael Moormeier, CEO MobileSpike Technologies Inc.

MobileSpike is vehicle-mounted, retractable, in-motion tire-spiking system that is safe and effective at speeds from 15 to 120 miles per hour in a wide range of weather and road conditions. This greatly reduces pursuit time and public risk. Field-tested by police departments across the country — 100% of which were so impressed they became MobileSpike customers — this game-changing leap in technology is drawing product requests nationwide.

There is currently no solution that keeps an officer within the safety of their vehicle during a spike strip deployment. For almost 70 years, they’ve stopped fleeing vehicles by manually placing tire-puncturing spike strips on the road — often inefficient and dangerous (for the officer and the public), and always unpredictable. 

In 2013 there were 322 deaths from high speed chases according to a USA Today analysis of the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) records. One person dies every day on average from high speed pursuits in the United States.

A Spike In Technology
Technology usually moves forward by increments. Step by step. Inch by inch.

But sometimes there’s a leap. Sometimes a new technology changes the way we think and approach our work.

MobileSpike allows law enforcement officers to quickly stop pursuits from the safety of their vehicle by the push of a button. This greatly reduces pursuit time and public risk.

Field-tested by police departments across the country — 100% of which were so impressed they became MobileSpike customers — this game-changing leap in technology is drawing product requests nationwide.

MobileSpike keeps law enforcement officers — and the general public — safer every single day. That’s a true breakthrough — and a striking investment opportunity. 

There is currently no solution that keeps an officer within the safety of their vehicle during a spike strip deployment.

An Antiquated Method
The original spike strip technology was first patented in the 1940s right alongside velcro and silly putty. It was invented in the Studebaker era, when luxury meant an extended trunk, sealed beam headlights, and enough power to motor at 60mph. V8s wouldn’t become standard until the 50s. It’s laughable to use such an antiquated stopping method on today’s vehicles.

StopTech, Ltd. currently holds much of the business worldwide. The Stop Sticks® are deployed by hand, putting the officer right in the middle of a pursuit’s greatest chaos. Despite the danger during use, they have been the best solution on the market, and since 1993 over 250,000 Stop Sticks® have been sold worldwide.

Stinger Spike and Mobile Deployment Systems both provide equipment to stop everything from small to large vehicles, but require an officer to be standing close to the path of an unpredictable driver and vehicle.

MobileSpike is a vehicle-mounted device that effectively stops vehicles from 15-120+mph and is deployed by the push of a button inside the safety of a police car. Our patented technology allows officers to end dangerous high-speed police pursuits quickly and safely using the same driving techniques that they already know.

Four-Year Field Test
We’ve conducted a four-year field test of our system from Alaska to Florida in varying temperatures, external environments, and a wide variety of speeds and vehicles. The conclusion? Officers and precincts all agree we’re stopping more criminals, protecting more lives, and drastically changing the way policing is done. 

Officer Approved
100% of the field trial agencies became customers, 90% re-ordered product, and ALL reported an undeniable increase in officer and public safety. (The 10% who did not reorder were smaller precincts that had already outfitted their entire fleet.)

Our four-year market test assures of us of the need and validity of MobileSpike. 

There are 16,869 city, county, state, and federal law enforcement agencies in the United States, with approximately 400,000 currently active service vehicles. MobileSpike only needs to sell 9,000 units (about 3-5% of the market) to hit our minimum ROI. 

Safety equipment is always a priority for police agencies. Every officer will tell you that their most important job is to go home to their family at the end of each shift. MobileSpike helps them accomplish this by stopping fleeing vehicles in their tracks, allowing officers to put criminals in jail quickly, and then go home safely. 

We sell patented technology to law enforcement in the U.S. and Canada

We consistently receive new inquiries about product availability despite the fact that we have done no marketing, no advertising, and no trade show demonstrations. Interest in MobileSpike has been abundant, spreading through law enforcement mostly by word-of-mouth because the product has been proven to work.

We have developed a list of agencies in 21 states who have expressed interest in our product. Everywhere we demonstrate the product, police officers are interested in learning how they can add MobileSpikes to their fleet.

PoliceOne.com
With over 100,000 new, focused hits per year on their site, PoliceOne.com is by far the internet’s leader in new gear, gadgets and training for law enforcement, and we have had a relationship with them for years. MobileSpike will be featured on their Pursuit Management page, which receives over 10,000 hits per month.

Trade shows
Trade shows are the best opportunity for us to meet a large amount of customers and decision makers in a short amount of time. We know the best law enforcement trade shows around the country, and we’ll be there. In-person demonstrations leave no doubt that MobileSpike can help a police agency, and they help to spark buzz about our product, especially at trade shows and other well-attended industry events.

Our business model is designed to deliver a return on your investment by positioning our company for sale to a larger technology company. Your profits are delivered once this buyout happens. MobileSpike only needs to sell 9,000 units to generate revenue in excess of $28,000,000, with profit margins of greater than 50%. Our sales forecasts are conservative - our competitors have sold over 250,000 hand-deployed units to terminate chases.

Disclosure:

*Revenue projections are based on the following: Purchase price of $2,999.99/unit, consumables, repairs and replacements.

*There can be no guarantee of a future sale or acquisition.

Based on our analysis, we feel this threshold of 9,000 units sold would optimize our attractiveness for a larger company to acquire MobileSpike. Our projected market penetration leaves plenty of room for another company to operate profitably both domestically and internationally. We believe that a better than average return on investment is achievable from our own research and the counsel of experienced business strategists.

MobileSpike is changing the way policing is done. We know you have a choice with your investment dollars and we hope you will join us and invest today. Help us put this product in communities all over the United States to save lives, put criminals away and earn a return on your investment.  

For complete information and other important disclosures related to this offering, you may review the Form C filed with the SEC, and located here: https://www.sec.gov/Archives/edgar/data/1674319/000167431916000003/0001674319-16-000003-index.htm

Risks & Disclosures