Off The Hook YS (OTH) Investor update summary

Business model and operations

• Operates an AI-driven platform for buying and selling pre-owned boats, turning inventory five times a year, significantly above industry norms.

• Focuses primarily on used boats, allowing flexibility in brands and markets, and acts as a market maker for used boat pricing.

• Offers multiple transaction options: wholesale, brokerage, and auction, ensuring customer retention and maximizing profit opportunities.

• Azure Funding, the finance arm, provides financing, insurance, and warranties, contributing to higher profit margins.

• The company has been profitable every year for 13 years, growing organically without prior external capital.

Technology and competitive advantage

• Proprietary system built over 13 years leverages extensive transaction data to minimize losses and connect buyers and sellers efficiently.

• Less than 10% of purchased boats result in losses, often for strategic customer relationships.

• Upcoming version two of the system will include more AI and automation, such as sell bots and voice input for brokers.

• No direct competition at scale due to unique floor plan and technology; mom-and-pop competitors lack similar capabilities.

Growth, IPO, and expansion

• IPO completed four months ago, raising $50 million and increasing the floor plan from $25 million to $60 million, doubling buying power.

• Broker count has grown from about 32 to nearly 100 since the IPO, enhancing sales capacity.

• Recent expansion into the Great Lakes, Puerto Rico, and the Caribbean, with plans for further geographic growth, especially on the East Coast.

• Acquisition of Apex Marine adds five marina locations, expected to reduce service and storage costs and boost recurring revenue.