disrupting the traditional hair salon industry

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Disrupting the Traditional Hair Salon Industry

Cut Your Hair. Anytime. Anywhere.

-- Confidential – For Internal Use Only

The contents and materials within this presentation are the sole property of SpaDash, Inc. and are intended to explain the business model to be deployed by SpaDash. Sharing or using the data, materials or figures contained within this presentation is prohibited unless express permission is granted by the corporation.

Certain statements made over the course of this presentation may be forward-looking in nature, involving known and unknown risks, assumptions, uncertainties and other factors that may cause the actual results, performance and achievements of the company to be materially different from those projected or implied by such forward-looking statements.

Confidential Information and Modified Safe Harbor Statement

Copyright © 2020 SpaDash, Inc. All rights reserved.


Top Pain Points in the Traditional Hair Salon Business Model


Average time wasted by customer driving to and waiting for a haircut

Average % hair stylist receives

40 – 60 minutes

30% - 50% of each $1 spent

Powered by

A New Model to Address These Pain Points

On-Demand App-Driven Haircut Service Offering

Licensed hair stylists come to you!



SpaDash Disrupts Traditional Haircut Industry and Pain Points

▪ Time Saving = Cost Saving▪ Convenience / Flexibility▪ App Ease of Use / Reminders▪ Security and Safety a priority

Benefits to Customer▪ Substantial increase in

earning potential (entrepreneur vs. employee)

▪ Flexibility of work schedule▪ App workflow/scheduling

management support▪ Security a priority

Benefits to Hair Stylist



SpaDash Model – How It Works

Using SpaDash app, Customer sets haircut appointment (time, location confirmed)

Haircutperformed at

clients-specified location

Customer establishes a profile on SpaDash

app; Information verified by SpaDash

Payment and rating of SpaDash Pro entered on app; Customer can

add Stylist on “Favorites”

SpaDash Pro has appointment added to their calendar in app

Set up/ break down of Full Mobile Salon

Station + cleanup

SpaDash Pro app guides Pro to

appointment location

SpaDash Pro receives payment (fee + tip);

rates Customer

SpaDash Haircut Proprofile and schedule availability for public

viewing



SpaDash Model


Initial Target Services1:• Buzz Cut: $16• Kids Cut: $21• Short Cut: $28• Long Cut: $45• Beard Trim: $12

$500M+ SAM2 for the Top Four MSAs in the

State of Texas

Initial Target Clients:• Males (18 – 65)• Parent(s) w/ children

(under 13)• Corporate Accounts

* Market size, growth figures and key takeaways based on public information, 2018 ASDS survey, reports from Medical Insights and Axiom, and internal estimates

Launching in Texas: Large Market Opportunity

Austin$65M SAM

San Antonio

$75M SAM

Houston$190M

SAM

Dallas$220M

SAM

SpaDash®

Starts Here

1) Each trip has a $9.99 convenience fee added 2) Serviceable Addressable Market (SAM) for including only Males age 18 – 65 and Children under 13 years old

Lines-of-Business Growth:• Nails• Eyebrow Threading• Manicures/Pedicures



SpaDash – Why Now? Why Texas?

Like many states, Texas required barbering and cosmetology services to be performed at physical establishments regulated by Texas Department of Licensing and Regulation (TDLR)

HB 2847 signed by Governor of Texas allows select barbering services to be performed outside of designated physical establishments effective September 1, 2019



Scaling Operations and Brand Awareness

Funding and Support

Start-Up Stage of Development

New Target Markets and

Services

Market Acceptance

GrowthProgress Update:

• Launched customer app and SpaDash Pro app in February, 2020 to both Apple and Google Play Stores

• 10 licensed haircare professionals under contract (trained as of February roll-out)

• 3 Corporate Accounts signed up• Over 300 haircuts provided to date• Over 600 accounts created in app

Raising Capital:

• Established Delaware C-corp• Pre-Seed Round: Raised $175k of target $600k

at a $5M Pre-Money Valuation



Corporate CustomersUnder Contract

“SpaDash comes to the Kendra Scott offices for special employee appreciation, and we’ve had a phenomenal experience from beginning to end!

Our friendly SpaDash Success Manager oversees everything from initial planning, coordinating online sign-ups, providing initial marketing materials, arriving early to set up, and being solutions-focused if anything came up. The stylists came prepared with portable workstations that included disposable floor mats, stools, and all the supplies needed for haircuts and dry styling like blowouts and curling.

Our employees enjoy the ease and convenience of having these services available at the office, and they are thrilled with their new looks. Highly recommend SpaDash!”

- Maricel Dona, Benefits Manager


Building Investor Confidence through Execution of our Plan

Phase II

Phase I

Phase III

2020 – 2021Foundational Investments

2022 - 2023Business Expansion in Texas

Scaling Market Development TeamNew MSA Expansion and Market Penetration

Ramp Haircare Professional NetworkExpand Services Provided

Leverage Back-Office Functions

2024 and BeyondMarket Leadership

Leadership in Texas Established by Brand of Excellence

Focus on Leveraging Business Model in Other StatesLayering Additional Services to More Fully Penetrate

Current and New MarketsCommercial App Launched

Focus on Brand Development and Targeted Channel Marketing

Addressing Corporate AccountsRamp Haircare Professional Network

Supply Chain & Back-office Infrastructure

Phased Approach to Achieving our Aspirations

Management Profiles

Kevin WellingCEO and Founder, SpaDash, Inc.

Allen GoochCTO, SpaDash, Inc.

Jeremy AndersonDirector R&D, SpaDash, Inc.

Cara WilburSuccess Manager, SpaDash, Inc.

Brian JonesSpokesperson, SpaDash, Inc.

Background• Founded 2019; HB 2847 signed (Sept. 1, 2019) • Austin, TX headquarters• CEO, CTO and Director of R&D experience in Dell, IBM,

Electronic Arts • 2 Business Managers added recently

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Appendix


ProFormaSpeculative Assessment of Future Earnings.

The following income statements are speculative assessments of the possible future performance of SpaDash. The model assumes 3,000 downloads of the app in the first month and a growth of 25% each month for the first year, 20% growth the second year, and 5% growth the third year. It assumes only 80% of downloads create an account and only 80% of those order a haircut. Of that number, the model assumes an abandon rate with 30% of people not ordering a repeat haircut.

This model is a conservative approach to potential business success, with a much higher upside if the business concept goes viral.



Income Statement - ProFormaFirst 12 Months



Income Statement - ProFormaMonths 13-24



Income Statement - ProFormaMonths 25-36


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Conducted Market Research

212 Respondents



Which most accurately describes the location where you get a haircut?Answered: 212 Skipped: 0



Which most accurately describes your chosen hair stylist?Answered: 161 Skipped: 51



Which most accurately describes how you go about getting a haircut?Answered: 161 Skipped: 51



What is the estimated number of times per year you get your hair cut?Answered: 161 Skipped: 51

6Average Number

of Haircuts per year



How much do you typically pay for a haircut, NOT INCLUDING GRATUITY, rounded to the nearest dollar?Answered: 161 Skipped: 51

$26-$30Average Payment

For Haircut



Rate the following pain points in getting your hair cutAnswered: 161 Skipped: 51

1.9

1.71

2.11

1.68

0 0.5 1 1.5 2 2.5

Waiting in line

Getting Appt.

Cost

Time to get cut

Pain Points Of Getting Hair CutWaiting in line Getting Appt. Cost Time to get cut



Males surveyed that feel waiting in line is moderate pain or higher

19Represents 8.96% of population



Texas MarketPopulation of Texas between 18 and 65

Population ages 18 - 65 in DFW, Houston, San Antonio, and Austin is 18,136,282

1,002,885 Males feel waiting in line for a haircut is moderate pain or worse

This population represents:

6,017,310 haircuts per year



Uber & Lyft Solved These ProblemsRide Hailing Model Solved Customer & Driver Pains Similar to Haircuts

Launched: 2010

Current Valuation: $100B

Launched: 2012

Current Valuation: $20B



Total Market Share For Ride Hailing



Vision

For busy professionals, parents of children or those seeking to get a hassle-free haircut, SpaDash is an on-demand haircutting service that gives you the flexibility to get a haircut on your timeline, without having to go anywhere.

Unlike traditional barbershops or hair salons, SpaDash eliminates the time wasted in travelling to and from a location and waiting in line, as well as the need to plan ahead to complete this necessary chore.



CopyrightContents Are Property of SpaDash, Inc.

The contents and materials within this presentation are the sole property of SpaDash, Inc. and are intended to explain the business model to be deployed by SpaDash.

Sharing or using the data, materials or figures contained within this presentation is prohibited unless express permission is granted by the corporation.



Market Size - Gross Profit Potential Projections

Looking at niche market of males in major Texas metros that get hair cut at a salon and feel waiting in line is moderate pain to severe pain, if SpaDash can capture 60% of that market niche, representing 8.96% of total market, the gross profit per year is $28M.




Expanding the addressable market to all males and children in major Texas metros, a 60% capture yields gross profit per year of $331M.




Expanding even further to include all of Texas’ population that gets their hair cut, a 60% market share yields gross profit per year of $991M.



Market Size – Top US Cities for Barber & Beauty Shops


US Market for Barber & Beauty shops expected to grow from $38B in 2019 to $42B by 2025.

Houston, San Antonio, Dallas, Austin, and Fort Worth in the top 20 cities, with 4 in the top 11.

These are the top target cities for SpaDash.

disrupting the traditional hair salon industry

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