CleanTechnica
Electric Tractors Have Advantages Over Diesels
Solectrac
Climate-Smart Electric Tractors
Albion, CA
Agriculture
Environment
Solectrac designs and sells electric tractors to replace diesel vehicles in the agriculture space. As the world experiences a transformational change in its approach to generating and using energy, we can no longer ignore the need to utilize clean electric vehicles in all aspects of life. Solectrac has developed a line of electric tractors that we believe is better than anything else on the market. We believe that electric tractors will follow the same trajectory as electric cars which are taking over the automobile industry.
$986,125
raised
1,199
Investors
$7.75M
Valuation
$1.00
Price per Share
$250.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on December 09, 2020 and is no longer accepting investments.
Reasons to Invest
Sales in Q3 2020 were $257K as of 9/1/20, up more than 4x compared to Q2 2020.
$12B agricultural tractor market in North America alone.
Patented and innovative solution to power agricultural and other tractor-based operations with clean electric tractors.
“Our goal is to lead the transition to electric tractors”
The Problem
Diesel engines are inefficient, high-maintenance, and hazardous to workers and the environment
Farmers everywhere are forced to absorb massive operating costs for their diesel tractor equipment. In 2017 the total cost expenditures toward diesel fuel in the U.S. reached $7.6B and were growing at 2.7% annually. One reason for the increasing costs is that governments, recognizing the negative impacts of burning fossil fuels, are placing pollution-restricting regulations on diesel tractors. Farmers tell us that they are put in a difficult situation as these pollutant controls cause excessive downtime for maintenance and require them to take on extra costs.
Beyond the economic costs stemming from diesel use, the cost levied on both human and environmental health is untenable. Between the emissions resulting from diesel engines — contributing to the Agricultural sector’s 6 billion metric tons of annual greenhouse gas emissions — as well as the common hearing loss and respiratory illness suffered by many farmers. ,
The industry is in dire need of a cleaner, quieter solution with lower total cost of ownership.
The Solution
Solectrac’s Climate-Smart Electric Tractors
Our line of all-electric agriculture and utility tractors (ranging from 25 to 70 HP) are designed to replace diesel tractors. Solectrac’s electric tractors can be charged with renewable energy or from any 220v outlet.
This innovation will allow farms to reduce their carbon footprint and in the process eliminate the harm to soil and human health resulting from standard diesel operations. Our technology enables quiet, clean, efficient farming — and a transition to truly regenerative agriculture.
The Farmtrac compact electric tractor manufactured by Escorts and sold by Solectrac (above) is a versatile all-wheel-drive utility tractor, perfect for light-duty work like mowing, tilling, and hauling. It is equivalent to a 25-30 HP diesel tractor.
The 40 HP-equivalent Solectrac eUtility (above) is the ideal tractor for vineyards, equestrian centers, livestock operations, and any other utility type work.
The 30 HP-equivalent Solectrac eFarmer (above) will provide unparalleled visibility and maneuverability for the next generation of row-crop farming.
The Market
Solectrac enters a multi-billion dollar market
The market for agricultural tractors is $12 Billion in North America, with the largest share made up of tractors 40 HP-and-under. The global market for agricultural tractors is $75 Billion annually.
Solectrac has two electric tractor models in the 40 HP-and-under size category available today. We also have a 70 HP-equivalent utility model and a 40 HP row crop model in development. These will open up significantly larger markets for Solectrac.
Across every energy-intensive industry, there have been major pushes toward green alternatives, and there’s no reason to think the agricultural sector will be different. The EV market for transportation is growing rapidly because of the clear advantages EVs have over gas cars. We believe the tractor market will undergo a similar transformation to electric. Our electric tractors are better for the climate and offer significant savings in reduced downtime, maintenance, and fuel costs. Charging from renewable energy will allow farmers to become independent of fossil fuels.
Our Traction
Multiple proprietary electric tractors
Solectrac holds a patent on its battery exchange system that was developed by Founder/CEO Steve Heckeroth in 2010. With this proprietary technology acting as a foundation, we were able to design our tractors to eliminate the issue of limited run-time: As batteries are depleted they can be replenished with fresh packs using the tractor’s hitches.
Between 2014-2016 we received grants totaling $730K, which allowed us to dig in and develop our first line of commercially viable Solectrac electric tractors. Our Solectrac eUtility is being used by early-adopter customers in active farming operations in the U.S., Canada, and Norway.
Today we’re working on building our products as kits to assist in quick assembly. This will cut down on costs including those associated with building large manufacturing infrastructure and allows our tractors to be delivered anywhere in the world regardless of access to electric or petrol infrastructure. These kits will also have applications for disaster relief as mobile energy sources. We are changing the face of the industry by introducing our decentralized/modular manufacturing process.
What We Do
We develop and distribute electric tractors
Using our state-of-the-art advances in the space, we design and sell electric tractors. We plan to offer four models, each of which builds on the last as far as technology, size, and versatility and generates cash flow for the release of the next generation.
In addition to the two models already available (the Solectrac eUtility and the Farmtrac CET), we are in the development stage with our Solectrac eFarmer, a 30 HP unit specifically designed for row-crop cultivation, and our Solectrac e70N, a 70 HP tractor specifically designed for larger agricultural operations. All four models are poised to make major strides in the market.
video
The Business Model
Primary revenue comes from tractor sales
To improve our cash flow, we use a reservation model. Each purchase requires a 50% deposit and the remainder is paid upon delivery. Customers are familiar with buying/reserving a spot in the production line from other manufacturers in the electric vehicle space. It allows them to plan for the expenditure and put optional renewable charging infrastructure in place.
To date this has been our primary revenue source, and it is supplemented by the sale of exchangeable battery packs and front loaders. The exchangeable battery packs are going to our farmers for their tractors, and also to customers with solar arrays for back-up energy storage. Solectrac is currently offering the lowest-cost energy storage option on the market.
How We Are Different
First zero-emission under-40HP tractors
Solectrac’s patents in the electric tractor space have allowed us to emerge as a unique company in the market, outpacing competitors in the development of zero-emission under-40 HP tractors and being recognized as a key innovator in the industry.
Our lithium iron phosphate batteries are non-combustible. We believe there is nothing that comes close to the innovations incorporated in Solectrac electric tractors. When it comes to growing food, we believe there is nothing that comes close to the innovation incorporated in the Solectrac eFarmer.
From fuel costs to maintenance to emissions to noise, electric tractors are better.
VS a Diesel Motor
We also distinguish ourselves with our focus on regenerative agriculture and our support of municipalities and businesses in the transition to electric power for landscape maintenance, towing, and other tasks formerly requiring diesel.
The Vision
Each model will fuel the next
Our strategy for the future relies on our release schedule, which is designed specifically to provide us with the resources and brand capital to build our next generation tractor to meet the needs of diverse applications.
Our Team
Our team unites experience in farming and electrical vehicles
Our Founder and CEO Stephen Heckeroth has been building electric tractors for more than 20 years. His innovations have led to Solectrac’s unique intellectual property, including key patents in electric tractor technology.
With all of this experience with electric tractors, Solectrac is ready to bring this work to market with the help of a diverse management and advisory team with knowledge ranging from renewable energy to business management.
Why Invest
Join the next agricultural revolution
Join the revolution with an investment in Solectrac.
As a Certified B Corp we hold our mission of social responsibility and environmental health to be a top priority. The green new economy is here, and in every sector it is only a question of which innovators will lead the way. Thanks to our top-flight technological advancements and our amazing team, we are leading the charge. Join us!
With its patented three hitches, the eFarmer can accomplish three tasks in one pass.
In the Press
Energized Edison
SCE Helps Farm Industry Drive Electric at World Ag Expo
Edible Toronto
Gaining Traction
The Western Producer
Electric tractors hit Canadian fields with a whir
The Western Producer
Thumbs up at Nebraska Tractor Test
The Western Producer
Buying electric implements for the right reason
Offering Summary
Company | : | Solectrac, Inc. |
Corporate Address | : | 30151 Navarro Ridge Rd., Albion, CA 95410 |
Offering Minimum | : | $10,000.00 |
Offering Maximum | : | $1,070,000.00 |
Minimum Investment Amount(per investor) | : | $250.00 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 10,000 |
Maximum Number of Shares Offered | : | 1,070,000 |
Price per Share | : | $1.00 |
Pre-Money Valuation | : | $7,750,000.00 |
COVID Relief
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief set out in Regulation Crowdfunding §227.201(z).
Expedited closing sooner than 21 days
Further, in reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and August 31, 2020, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).
Voting Rights of Securities sold in this Offering
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Company Perks*
Early Investment Bonuses:
The first 3 days and receive 15% bonus shares
The next 4 days and receive 10% bonus shares
The next 7 days and receive 5% bonus shares
Investment bonuses:
To thank you for your investment and to help offset the carbon associated with our fundraising campaign, Solectrac will have trees planted based on individual investment amounts. We are also offering bonus shares at certain levels of investment. Furthermore, If we hit our fundraising target, we will donate a Compact Electric Tractor (CET)! You can help choose who receives it by nominating your favorite farm, vineyard or other entity, and then voting for the final recipient – see below.
Tier 0: $250 (minimum investment) = 1 tree planted
Tier 1: $500+ = 5 trees planted + nominate a farm for a donated tractor + 1 vote on tractor recipient**
Tier 2: $1000+ =10 trees planted + nominate a farm for a donated tractor + 1 vote on tractor recipient**
Tier 3: $2500+ = 25 trees planted + nominate a farm for a donated tractor + 1 vote on tractor recipient**
Tier 4: $5000+ = 25 trees planted + 5% bonus shares + nominate a farm for a donated tractor + 5 votes on tractor recipient**
Tier 5: $10,000+ = 25 trees planted + 10% bonus shares + nominate a farm for a donated tractor + 10 votes on tractor recipient**
Tier 6: $25,000+ = 25 trees planted + 15% bonus shares + nominate a farm for a donated tractor + 25 votes on tractor recipient**
How the voting process for the Compact Electric Tractor (CET) works:
*All nominated entities will be presented to investors at the $500 level and up for voting to determine the final recipient.
** voting for tractor recipient will occur after the crowdfunding campaign has concluded and we have successfully met our crowdfunding goal of ~$1.07 million
***All perks occur when the offering is completed.
The 10% Bonus for StartEngine Shareholders
Solectrac, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of common stock at $1/ share, you will receive and own 110 shares for $100. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments. Salary payments made to one’s self, a friend or relative.
Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$186,873.00
USD
$3,247.00
USD
Cash And Cash Equivalents
$114,210.00
USD
$3,247.00
USD
Accounts Receivable
$0.00
USD
$0.00
USD
Short Term Debt
$97,593.00
USD
$60,000.00
USD
Long Term Debt
$166,586.00
USD
$0.00
USD
Revenues And Sales
$83,258.00
USD
$71,910.00
USD
Costs Of Goods Sold
$51,680.00
USD
$96,622.00
USD
Taxes Paid
$0.00
USD
$0.00
USD
Net Income
-$167,883.00
USD
-$194,834.00
USD
Risks
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Updates
Notice of Material Change in Offering
11 months ago[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the Solectrac offering. Here's an excerpt describing the specifics of the change:
Solectrac Made a Minor Perk Adjustment, Added Information about a Concurrent Offering & Extended its Campaign.
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
Notice of Funds Disbursement
12 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Solectrac has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Solectrac be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Solectrac closes $1.3 Million investment outside of StartEngine
12 months agoWe are delighted to announce that on October 20, 2020 Solectrac successfully closed an investment outside of the StartEngine campaign for $1,300,000. Please see the amended Form C on our campaign page for details about liquidity, capital sources, and dilution. This added capital will help us accelerate our business plan.
Notice of Material Change in Offering
12 months ago[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the Solectrac offering. Here's an excerpt describing the specifics of the change:
Solectrac extended its campaign and added information about outside funding.
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
Notice of Funds Disbursement
about 1 year ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Solectrac has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Solectrac be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Solectrac collaborates with Bonneville Environmental Foundation in tree planting project
about 1 year ago“We are excited to collaborate with Bonneville Environmental Foundation (BEF) on our tree planting project,” said Christiane Heckeroth, CCO of Solectrac, the first North American electric tractor manufacturer and distributor. Each investment into Solectrac’s climate smart electric tractors on StartEngine comes with the commitment of planting 1 to 25 trees on behalf of the investor, depending on size of investment. “BEF’s Promise the Pod project is the perfect marriage of goals of our respective organizations. Solectrac is headquartered in Mendocino County, CA which has suffered a reduction of salmon runs as the tree canopy was impacted by decades of logging and now wildfires. We understand the intersection of trees and a healthy environment.”
Tree planting will occur in the winter months and is typically completed in April.
BEF, based in Portland, OR, is a non-profit dedicated to empowering corporations, utilities and the public to fund and promote projects that develop a stable climate, healthy watersheds and renewable energy options. BEF’s Promise the Pod project is specifically designed to support and protect the Southern Resident orca living along the West Coast whose numbers have been reduced to 74 individuals. These fish-eating orcas depend upon the Chinook salmon for as much as 90% of their diet. Promise the Pod is working on restoring habitat for the salmon to ensure survival of the orcas. “Solectrac approached us out of their deep commitment to stewardship and place. We are honored to work with them to plant thousands of native trees this coming year. Our program links communities, healthy forests, salmon and our beloved orca, and the message of caretaking and connection resonated with them immediately,’ said Kathleen Guillozet, Senior director of the Watershed Program.
“We wanted to let our investors know about the greater impact of their funds. Not only are they now part of leading a transition to electric vehicles in agriculture and for utility use, they are also supporting watershed restoration efforts and helping protect the orcas,” said Heckeroth.
Please check out www.solectrac.com for more information about our 100% battery electric tractors which are perfectly suited for farms, greenhouses, vineyards, equestrian arenas, land maintenance and other applications.
Over $700K Raised!
about 1 year agoThanks again to the StartEngine community for investing in Solectrac. We have raised over $700K! There is still time to invest in the future of farming.
Notice of Funds Disbursement
about 1 year ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Solectrac has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Solectrac be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Over $600K Raised!
about 1 year ago
{{ profileCtrl.commentsLoading ? 'Loading...' : 'Show More Comments' }}