Vision Marine Technologies (VMAR) Registration Filing summary

Company overview and business model

• Designs and manufactures electric outboard powertrain systems, powerboats, and related technology, with a focus on high-efficiency electric propulsion for marine applications.

• Operates a rental business for electric boats, with facilities in California and Florida, and recently divested its Newport Beach, CA rental operation.

• Targets both retail customers and OEMs, aiming to commercialize its proprietary E-Motion™ electric powertrain system for mass production.

• Partners with major industry players, such as Linamar Corporation for manufacturing and Group Beneteau for integration of its powertrains.

• Seeks to leverage environmental trends and regulatory shifts favoring electric boats over traditional fossil fuel-powered vessels.

Financial performance and metrics

• Reported revenue of $1.7M and a net loss of $7.4M for the six months ended February 29, 2024.

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

• Gross profit for the six months ended February 29, 2024 was $0.66M.

• As of February 29, 2024, total assets were $21.3M, total liabilities $14.9M, and shareholders' equity $6.4M.

• Company has a history of net losses and negative cash flow, with substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Estimated net proceeds of approximately $3.9M (up to $4.6M with full over-allotment) from the offering.

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

• May allocate a portion to acquisitions or strategic investments, though no targets have been identified.

• Management has broad discretion over the use of proceeds.