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, and financing vessels through multiple business units and affiliates.

• Key subsidiaries include Off The Hook Yacht Sales NC, Azure Funding (recreational loan broker/lender), and OTH Simon Marine YF (Yellowfin dealership in Miami).

• Proprietary AI-driven CRM system streamlines operations, automates lead matching, and enhances broker performance tracking.

• Additional services include in-house maintenance, asset recovery, and a digital platform (WeBuyBoats.com) for instant boat offers and inventory sourcing.

• Plans to expand into marina acquisitions, premium yacht brokerage, and launch an online auction platform for repossessed and trade-in boats.

Financial performance and metrics

• 2024 revenue: $98.99M, up 7.8% from $91.84M in 2023, driven by increased floorplan limits and broker hires.

• 2024 net income: $991,684, with gross profit of $8.78M (down 4% YoY due to margin compression in new boats).

• 2024 pre-owned boat sales: $84.8M (up 7.7%), new boat sales: $11.0M (up 7.8%), finance income: $2.96M (up 18%).

• As of June 30, 2025: $3.12M cash, $33.97M total assets, $33.57M total liabilities, working capital deficit of $1.29M.

• Floorplan notes payable increased to $22.76M as of June 30, 2025; plans to expand to $50M by 2026.

Use of proceeds and capital allocation

• Estimated net proceeds of $21.99M (at $5.00/share midpoint) to be used for floorplan servicing, marketing, waterfront property acquisition, debt repayment, and working capital.

• $10M allocated to floorplan, $8M for property acquisition, $2.9M for debt repayment, $1M for marketing.

• No current definitive agreements for acquisitions, but may pursue complementary businesses or technologies.