Cadi 2024 Quarterly Update: Achievements, Challenges, and Next Steps

Dear Shareholders,

I hope this message finds you well. As we navigate through the year 2024, I am pleased to provide you with an update on Cadi's progress, achievements, and our strategic direction moving forward.

Our overarching goals for 2024 revolve around demonstrating product-market fit, increasing revenues, and solidifying key partnerships. This year marks a significant milestone for us as we embark on monetizing our technologies, presenting new challenges and opportunities that demand a fresh perspective and heightened potential.

In the first quarter of 2024, I dedicated my efforts to laying the groundwork necessary to realize this potential.

Our focus was divided into six key areas:

1. Establishing the Foundation for Cadi Kiosk Success in the Seattle Market
2. Completion of Cadi's Warehouse Management System with Integration to Cadi.io
3. Solidifying Partnerships with TaylorMade and Callaway
4. Relocation of Cadi Headquarters from Carlsbad, CA to Nashville, TN
5. Building an Advisor Board and Expanding Our Team with Key Hires
6. Securing Inventory Funding and Initiating a New Equity Funding Round

While Q1 was marked by perseverance and unwavering dedication to our mission, it was not without its challenges. The lack of a stable workspace and limited resources presented hurdles, making communication difficult and hindering our ability to onboard new team members. This necessitated long hours and relentless determination on my part, resulting in minor delays and feelings of being overwhelmed.

Nevertheless, Q1 was incredibly productive, driven by sheer grit and determination. It's essential to take a moment to appreciate every milestone achieved.

Here's a summary of our accomplishments in Q1:

Seattle Market Update:

Cadi made significant strides with the introduction of Cadi Kiosks in Seattle. Generating $7500 in revenue from the sale of 12 clubs and unlocking demos for 220 individuals despite the seasonal challenges of the golf industry during winter months. We encountered a minor delay in installing the second kiosk at Interlay due to construction but utilized the time to enhance the Jefferson Park facility. The improved kiosk branding and advertising montage further strengthened our market presence and brand awareness.

Cadi is aiming for April 17th to install Cadi Kiosk #2 at Interbay Golf Center.

Cadi's Warehouse Management System (WMS):

Despite encountering delays and challenges, our WMS project is nearing completion. The final module, returns, is currently undergoing testing. The integration of RFID product tracking has transformed our warehouse into a smart facility, offering unparalleled efficiency and accuracy.

Partnerships with TaylorMade and Callaway:

We are thrilled to announce a favorable agreement with TaylorMade, which grants us access to inventory and alleviates inventory financing pressures. This partnership sets the stage for further success, with TaylorMade keen to witness the impact of Cadi Kiosks in Seattle. Additionally, our relationship with Callaway products is poised to support our kiosk endeavors.

Nashville Headquarters:

After months of meticulous planning, we have secured a new office location in Downtown Nashville, which will serve as our main inventory warehousing facility. With flexibility for various use cases, this move signifies a pivotal step in our growth journey.

Expansion of Team and Funding:

Efforts to expand our team and secure funding have been ongoing. While we've encountered challenges in securing lending from traditional banking channels, discussions continue, and we remain optimistic.

Additionally, we have reopened the current convertible note, offering interested parties an opportunity to join our journey. The terms are intentionally great for all previous investors. We have raised $180k with only $70k remaining in the current round. I have opened this up to anyone so invest before it is too late.  

Looking ahead, we remain committed to our vision and are excited about the opportunities that lie ahead. Your continued support and investment in Cadi are instrumental as we navigate through this dynamic landscape.

Thank you for your unwavering commitment to Cadi. Together, we will continue to drive innovation and create lasting value.

Go Cadi,

Tyler Gottstein

CEO

Cadi

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