As we finish up the 2019 peak golf season, some of our shareholders and investors have requested a business update. We are excited to report that our GolfBoard technology continues to strongly advance, and these improvements have been very well received. Many early adopters have embraced these product upgrades to expand their fleet or trade-in for new GolfBoards. Additionally, our newly launched month-to-month and seasonal rental programs have become popular options to our ever-growing list of GolfBoarding courses.
New GolfBoard Pro
Already the preferred option of golfers looking for a more active, exciting, and fun alternative to a golf cart, the company has made use of real-world feedback from its clients and riders to improve nearly every aspect of the GolfBoard, making it even more durable and higher performance (see this link to GolfBoard Revolution Evolution).
While initially designed specifically for golf course use, our boards have a broad range of potential applications beyond golf. The most obvious and widely demanded adjacent application is the large sightseeing and tourism market. Since many resorts have golf courses as well as extensive adjacent property suitable for sightseeing, the Company has now developed a new GolfBoard Pro model, which incorporates the superior performance capabilities of our ResortBoard. It can be used both on the golf course as well as off-road, allowing resorts to generate rental income from both golf and sightseeing.
The GolfBoard Pro is also proving to be a very popular new offering with individual personal-use buyers. Many high net worth clients, professional athletes, and key influencers have discovered and purchased our new GolfBoard Pro (click here for GolfBoard Pro details). The GolfBoard Pro has higher ground clearance, allowing it to more easily navigate challenging terrain, and is wider for greater stability. A larger and deeper component tray also makes it possible to incorporate exterior mounted circuit breakers to improve ease of in-field servicing.
New Seat / Cooler
The Company has also developed a new seat / cooler, which has increased capacity for food and beverage storage vs. our standard mini-cooler option. In addition, there is space under the cooler for convenient storage for personal items such as a jacket, purse or wallet, as well golf equipment such as headcovers, extra tees, and golf balls. Our new seat / cooler can be mounted on the rear fender of any board.
The new seat / cooler has been especially well received by golfers looking for a place to rest while waiting to tee-off or between shots. The Company believes the new seat / cooler will significantly increase the re-rental rate by older and deconditioned riders. Our plan is to offer are current clients this new feature, as well as retrofit much of the Company’s fleet, to increase the usage rates.
Transition to Rental and Revenue Share
Now entering our 5th season of operations, GolfBoard has proven to be a safe and efficient personal transportation vehicle, successfully appealing to golf course operators seeking ways to speed up the game and make it more attractive to a wider range of players. With nearly 1,000,000 GolfBoard uses and over 100,000 registers riders, 39% were first-time players of the course, and 36% came specifically to GolfBoard. These exciting statistics prove that GolfBoard is highly effective at attracting new players to the game.
Total sales are now over 3,000 GolfBoards on 300 courses worldwide, with approximately $15M in GolfBoards sold over 5 years. However, there is still massive growth potential in golf, which remains the Company’s primary focus. We believe the adoption of GolfBoard will greatly escalate as the Company increasingly concentrates on offering month-to-month and seasonal GolfBoard rentals, which is a low to no-commit way for courses to implement a GolfBoard program to their facilities.
With a growing fleet of rental boards, the Company can offer more clients the opportunity to rent GolfBoards, for which the decision is usually just 30 days or less. These rental relationships are not only quicker to negotiate, but in the long run more profitable. A golf course usually pays $350 to $375 per month per board to rent on a month-to-month basis, and $275 to $300 per month on a seasonal basis, compared to $195 per month per board or to lease a standard GolfBoard.
There is also a strong opportunity to increase GolfBoard adoption though a revenue share offering. Some golf courses lack the financial strength to take on additional debt required to finance a fleet of GolfBoards. These same courses are also hesitant to commit to rent GolfBoards in that they are uncertain the revenue generated will exceed their required rental payment. For these courses, we plan to offer a revenue share option, splitting the rental revenue 50%/50% with participating courses. Our Company will identify high volume courses (primarily public courses) for its revenue share offering and have already contacted potential partners to begin testing in Q4 2019.
New GolfBoard Reservation System
The Company is now also in the process of launching its proprietary GolfBoard reservation system. As part of our plan to further grow the popularity of GolfBoard, we recently launched a GolfBoard Tee-Time Booking System. This reservation / booking system will make it easier for golfers to book a tee-time and reserve a Golfboard across our global course network. After a few months of Alpha and Beta tests, we plan extend this new reservation system to our 300+ course worldwide so that all golfers will have a simple one-stop place to book a tee-time and reserve their GolfBoard.
This GolfBoard reservation system will allow the Company to generate additional earnings from current clients, while at the same time providing valuable service and support that should lead to the further growth in GolfBoard sales. Once the GolfBoard reservation system is broadly adopted, the Company plans to invest in advertising and marketing to drive even greater GolfBoard usage.
New Dual Bag GolfBoad
GolfBoard, and its high performance ResortBoard, GolfBoard Pro and SportBoard models, is only the beginning. We have also been thoroughly testing a dual-bag board for caddy use which has initially been very well received. Our dual-bag board allows caddies to better service their clients as well as work two 18-hole rounds per day without the usual physical ‘wear & tear’ that results in caddy absenteeism and costly workman’s compensation claims (see CaddieBoard here). We are now also in the process of working with our manufacturer to develop other advancements and upgrades to further improve durability, extend range and lower costs. Our management team is confident that on-going efforts to further advance our board designs will ensure GolfBoard remains the best in class offering in this unique category.
On-Going Capital Raise Activity
The Company continues to raise capital to further grow its managed fleet, including adding a rental inventory of its new GolfBoard Pro model. These more versatile Pro boards have a higher rental frequency and are more profitable for both the Company and client. With only 700,000 shares remaining, the current 506C offering is expected to be fully subscribed and close-out by year end. Any accredited investor is invited to participate in the GolfBoard 506C capital raise at a price of $1.25 per share by clicking here.
After completing the current 506C offering, the company intends to launch a Title IV public capital raise which non-accredited investors will be able to participate. The Company has previously announced plans it intends to raise up to $5M to fund the acquisition of 1,000+ units of its GolfBoard Pro model which will be used to greatly expand its revenue share program. The stock price for the upcoming Title IV offering is targeted to be $2.05 a share. Any interested non-accredited investor can register to receive an invention to participate in our upcoming Tile IV offering by clicking here and providing their contact information.