Investor FAQ

Q: What are Fight Fingers?

A: Our premier product, Fight Fingers (FF), are tapeless non-immobilizing mobile splinting devices designed to provide performance and recovery in one solution. They are the first performance-compatible, reusable finger-stabilization system for training-through-recovery. Tape fails and braces immobilize; our products stabilize without stopping progress, training, and momentum.

Q: What is PAR and how are Fight Fingers different from tape or splints?

A: Post-Injury Active Recovery (PAR) is a new category: reusable, performance-compatible stabilization that lets athletes keep training while they heal. Tape is inconsistent; braces stop practice. We shift spend from tape/immobilizers (and time-loss) to train(er)-ready kits with refills.

Q: What specific problem does FF solve—and how widespread is it?

A: Across combat and contact sports, hand/finger injuries are a recurring problem, and uncomplicated sprains/fractures often sideline athletes for weeks or months. Today the options are binary—tape (inconsistent) or sit out (lost training). Hand/finger injuries commonly represent a double-digit share of total injuries, with most grapplers reporting finger pain/injury each season.

Q: Is it competition-legal? What's the form factor?

A: The product is a lightweight, breathable, adjustable stabilization system; washable/durable and designed for rules-friendly profiles. Permissibility in competitive settings will ultimately depend on each sport's governing body.

Q: How big is the opportunity (TAM/SAM/SOM)?

A: TAM (Global): approx. $6.5B across Combat Sports, Contact Sports, and Tactical Professionals. SAM (24–36 months): approx. $1.5–2.0B in initial geographies/channels. SOM (near-term): approx. $35–55M by Year 5 at 1–5% disciplined penetration by sport/segment.

Q: Why now?

A: Participation and visibility in grappling/combat sports are surging (UFC's investments in BJJ; major events like CJI and ADCC), pushing recovery/performance spend higher. Training rooms are seeking keep-going solutions. We formalize what athletes already attempt with tape—now with durable, convenient, comfortable gear.

Q: Who adopts first—by segment?

Adoption Sequence & Proof Gates

Stage 1 (2027–2028): U.S. Combat; D2C + select retail scale; approx. 20K units breakeven.
Stage 2 (2028–2029): Contact Sports + Canada expansion; trainer kits, retail partners, tactical pilots.
Stage 3 (2029–2031): Military & Tactical ramp-up + Intl expansion; portfolio diversification + sensor data/subscription.

Gates to scale: weekly sell-through vs benchmarks • repeat/refill at 3–6 months • CAC payback ≤ 6 months • defects on target.

Q: How do you win in Contact Sports at scale?

A: We win by institutionalizing the product as the training-room SOP across the league.

• (1) Protocol-first in the training room (trainer-led SOP, not game-day claims).
• (2) Trainer Kits (sizes, spares, cleaning refills) on a per-athlete annual ASP.
• (3) Scale path: training adoption → practice mandates → selective game-day clearance.

Q: What's the Military & Tactical procurement path?

A: Prove → List → Scale.

• (1) Prove with pilot lots (≈50–200 units) at training schools/line units.
• (2) List via a ready vehicle (e.g., GSA/FedMall/DLA through a distributor).
• (3) Scale through a framework (BPA/IDIQ or NSN-backed catalog).

Q: Any early signals/traction?

A: Field tests indicate tape usage is widespread; purchase intent and referral intent are strong in preliminary testing. Formal pilots and sell-through tests continue as we lock DFM.

Q: How do we make money? Pricing/packaging?

A: D2C AOV: $24–$48 / ASP $95 annualized service plan (gear + replacements + cleaning refills). B2B ACV: $1K–$10K+ per account (gyms, leagues, clinics, tactical). Gross margin targets: approx. 68–70% steady state (D2C), 50–60% B2B. Break-even approx. 20K units equivalent.

Q: What are your 5-year revenue targets?

A: Segment build: approx. $2M (Y1) → $4.5M (Y2) → $10M (Y3, EBITDA+) → $22–23M (Y4) → $38M (Y5) as Contact, Tactical, and International layers come online.

Q: CAC/LTV and payback expectations?

A: Modeled LTV/CAC approx. 1:7 by Year 3, driven by annual plans, repeat purchase/refills, and clinic/team adoption; CAC payback ≤ 6 months remains a key operating gate.

Q: What IP exists and how is it defensible?

A: 2024 USPTO utility patent granted, continuation filed, and additional patents pending. A layered IP strategy around core design: multi-axis stability; dual-digit mobile splinting, adaptive joint tensioning/anchoring; performance material layering; high-duress reusability. Moat is reinforced by first-mover/category ownership, athlete/clinic/community traction, and B2B relationships.

Q: Where does the product roadmap go from here?

A: Additional hand & finger recovery and performance gear, over-the-glove applications, adjacent SKUs (wrist/elbow/knee kits), subscription/data insights, and institutional kits to become the recovery platform for high-impact sports & tactical users.

Q: Manufacturing readiness and scale plan?

A: DFM completion with dual-source suppliers, staged capacity investments, and tight inventory turns to manage working capital. Quality/biomech validation continues with athlete and clinical partners.

Q: Top risks and mitigations?

A: Adoption outside combat: phased pilots before scale. IP challenges: early provisional + utility filings with monitoring. Scale-up delays: dual sourcing and staged capex. Working capital constraints: milestone-based capital draws and inventory discipline.

Q: Is this a medical device? What exactly are you claiming?

A: We are sports performance/recovery gear (non-sterile, non-invasive). We do not claim to diagnose, treat, or cure conditions. We do claim stabilization and support for training-through-recovery based on product testing and user studies. We're funding clinical validation to quantify outcomes and support institutional adoption.

Q: How do you manage inventory and cash risk?

A: We gate purchases to milestones: (1) DFM freeze → initial tool & pilot run; (2) Pilot sell-through → limited first PO; (3) Repeat rate ≥ target & defect rate ≤ target → scale order. We maintain dual-source suppliers, target inventory turns >4× annually in Year 1.

Q: Will D2C conflict with team/retail sales?

A: No—different bundles, same story. D2C = individual kits + subscriptions. Team/Institutional = trainer kits with spares/cleaning refills and education. Retail (select) = curated pegs and staff education. MAP and phased door rollout protect pricing.

Q: Who do we compete with? Why haven't incumbents won?

A: Tape and immobilizing braces solve different problems; neither supports training-through-recovery. Incumbents come from commoditized tape or clinic-first immobilization. Fight Fingers are athlete-founded and purpose-built for PAR, giving us first-mover advantage.

Today's alternatives (substitute classes)

• Athletic tape (status quo) — Coach/J&J, Mueller, Cramer, KT Tape, RockTape. Limits: low/inconsistent stability; recurring cost & waste.
• Commodity braces/splints (immobilize) — Oval-8, Stack splints, McDavid, Shock Doctor, DonJoy/DJO. Limits: block quality training.
• Adjacent performance/recovery — Hyperice, Therabody, WHOOP. Role: strong channels but no targeted finger PAR—better as partners/acquirers.

Why we win (category creation)

• Stabilize without immobilizing → preserves training quality
• Reusable kit economics → beats tape on total cost & waste
• Protocol-ready for AT/PT (RTT/RTP, reinjury)
• Athlete-founded credibility & product velocity

Q: How much are we raising and where does it go?

A: We are targeting a $2.5M Seed Round to de-risk tooling + initial scale, and to fund marketing + sales enablement tied to clear, data-backed gates.

Use of Proceeds (milestone-gated):

Q: How do you value the business?

A: We use triangulation—market comps, strategic value, and a DCF sanity band. Illustrative EV/Revenue ranges: approx. 4–6× at sub-scale/early strategic interest and approx. 7–12× for category leaders.

Q: What are 3-7-year outcomes and exit logic?

• 3–5 years: reach approx. $35–40M revenue with 60–70% GM, CAC payback ≤ 6 months.
• 6–7 years: extend internationally and add data/subscription layers to reach $150–200M cumulative revenue.

Q: Who's building this?

A: Athlete-operators and product leaders with deep combat-sports and venture scaling experience; advisory bench includes orthopedic MDs, competitive BJJ, and MedTech innovators. Founder-market fit is a core advantage. We know the people, the mats, and the market.

Q: Where is the launch market and what is the scaling path?

A: North America first (dense spend, channel fit, tactical budgets) with approx. 85% of Y1–Y3 revenue from NA; Canada in Y2–3; Brazil/Japan/EU/ANZ in Y3–5 as brand and supply lines mature.

Q: What near-term proof points should investors track?

A: DFM freeze + pilot production; sell-through velocity vs category benchmarks; clinic/team mandates; repeat/refill rates (3–6 months); CAC payback ≤ 6 months; LTV/CAC expansion; expansion of tactical accounts; early national retail tests with above-category velocity.

Q: How do macro events (UFC/CJI/ADCC) help?

A: They normalize recovery spend, grow total participation, and amplify brand/ambassador ROI—accelerating adoption curves in the very communities we target.

For our seed round, we are using SAFEs — Simple Agreement for Future Equity.

Structure: Pre-Money, No Cap, 20% Discount, No MFN
Entity: Fight Fingers, LLC (future Delaware C-Corp conversion)
Seed Round Target: $2.5M
Requirements: Accredited Investors
Close: Rolling SAFE — capital deployable as received

Potential Conversion Triggers:

• Next priced equity financing (e.g., Series A)
• Valuation or qualified equity event
• Sale, change of control, or liquidity event
• Dissolution

Why Pre-Money, No-Cap

• Preserves valuation flexibility until traction supports pricing
• Enables simple, fast execution with low legal friction
• Rewards early investors with a 20% discount on conversion
• Maintains a clean cap table

Illustrative Conversion

If Series A prices at $15M, the 20% discount implies a $12M effective valuation for SAFE conversion. A $100K SAFE → $100K ÷ $12M = 0.833% (pre-new money).

Bottom line: The No-Cap, Pre-Money SAFE aligns both founders and investors around building value first and pricing later.