Off The Hook YS (OTH) Registration Filing summary

Company overview and business model

• Operates as a vertically integrated yacht and boat dealership, specializing in buying, selling, wholesaling, financing, servicing, and asset recovery of new and pre-owned vessels across the U.S.

• Portfolio includes Off The Hook Yacht Sales, Azure Funding (marine lending), OTH Yacht Services, Marine Asset Recovery, and WeBuyBoats.com, with a proprietary AI-driven CRM system for lead generation and deal management.

• Generates over $90 million in annual sales, with 9 locations and a nationwide broker network, executing 400+ transactions per year.

• Business model leverages synergies among sales, financing, servicing, and repossession, aiming for a seamless customer experience and multiple revenue streams per transaction.

Financial performance and metrics

• Revenue for 2024 was $98.99 million, up 7.8% from $91.84 million in 2023; Q1 2025 revenue was $27.24 million, up 30.8% year-over-year.

• 2024 net income was $991,684 (pro forma net income $783,430); Q1 2025 net income was $289,774 (pro forma $228,921).

• Gross profit in 2024 was $8.78 million, down 4% from 2023, due to margin compression in new boat sales; pre-owned boat gross profit increased modestly.

• As of March 31, 2025, cash was $934,272, total assets $33.8 million, and total liabilities $33.1 million.

• Floorplan notes payable increased to $24.66 million as of March 31, 2025, supporting inventory growth.

Use of proceeds and capital allocation

• Net proceeds will be used for servicing floorplan debt, advertising and marketing, acquiring and developing waterfront property for storage and repairs, repaying a $2.9 million promissory note, and working capital.

• Plans to expand floorplan financing to $50 million by 2026, enabling larger inventory acquisitions and strategic expansion.

• No current plans for dividends; earnings will be retained for growth.