Sonic Lightning (SONC) investor relations material

Company overview and business model

• Specializes in wholesale distribution of high-quality aftermarket automotive lighting products, including projector headlights, crystal headlights, taillights, and fog lights.

• Operates through a holding company structure with a wholly owned U.S. subsidiary, leveraging facilities in California, South Carolina, and Texas for nationwide distribution.

• Primary customers are major retailers and wholesale distributors; also acts as a sales agent for other automotive-parts manufacturers.

• Products are DOT and SAE compliant, with rigorous quality control and regulatory adherence.

• Business model includes both direct resale and agency sales, with a focus on innovation, customer service, and expanding product lines beyond lighting.

Financial performance and metrics

• 2024 revenue: $81.4M (down from $96.4M in 2023); net income: $2.25M (up from $1.86M in 2023).

• Gross profit margin improved to 28.2% in 2024 from 24.3% in 2023, despite lower sales volume.

• Cash and cash equivalents at June 30, 2025: $435,585; working capital: $6.25M.

• Major customers accounted for 52% of 2024 revenue; significant customer concentration risk.

• Cost of revenues decreased 19.9% in 2024, reflecting lower sales volume and reduced inventory costs.

Use of proceeds and capital allocation

• Net proceeds of ~$7.6M (at $4.00/share) to be allocated: 30% R&D, 20% logistics network expansion, 20% market expansion, 20% acquisitions/strategic investments, 10% facility upgrades.

• Focus on expanding logistics, automation, R&D, marketing, and potential acquisitions in digital and e-commerce sectors.

• Management retains broad discretion over use of funds.