Vision Marine Technologies (VMAR) Registration Filing summary

Company overview and business model

• Designs and manufactures electric outboard powertrain systems, electric powerboats, and related technology, with a focus on high-efficiency, high-performance products for commercial and retail customers.

• Operates electric boat rental businesses in select U.S. locations, building brand awareness and providing open-water showrooms for potential buyers.

• Core intellectual property in outboard electric powertrain systems is expected to drive future growth and represent the majority of revenue.

• Partners with OEMs and marina operators to expand distribution and rental fleets, leveraging third-party manufacturing for scalability.

Financial performance and metrics

• Reported revenue of $2.8 million for the nine months ended May 31, 2024, with a net loss of $10.4 million for the same period.

• Fiscal year 2023 revenue was $5.7 million, with a net loss of $20.9 million; fiscal year 2022 revenue was $7.4 million, with a net loss of $13.1 million.

• Gross profit for the nine months ended May 31, 2024, was $1.1 million.

• As of May 31, 2024, current assets were $9.0 million and total assets were $17.1 million; total liabilities were $13.4 million, including $8.4 million in non-cash derivative liabilities.

• Company has a history of net losses and its financial statements raise substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Net proceeds of approximately $3.9 million (or $4.6 million if the underwriter's overallotment is exercised) are expected from the offering.

• Proceeds will be used primarily for working capital and prosecuting patent applications related to E-Motion™ electric powertrain technology.

• May allocate a portion of proceeds to acquisitions or strategic investments in complementary businesses or technologies, though no targets have been identified.