Exciting News - Sec Resubmission

[Sethodine]

OK, if all the money they have taken in has gone into marketing, who is funding things like :

designing and building their own motor

legislative efforts on the national level and in all 50 states

initial engineering and design of the P series

the ongoing engineering/design refinements/of the P series

legal fees fighting a legal battle against a person trying to kill the company

legal fees associated every aspect of the project from day one

building a supplier network

etc, etc, etc

in short, much more than marketing has been and continues to take place

Well, they also have several million dollars of debt: $1.6m for the motor to name one line item.

 

[WilliamH]

OK, if all the money they have taken in has gone into marketing, who is funding things like :

designing and building their own motor

legislative efforts on the national level and in all 50 states

initial engineering and design of the P series

the ongoing engineering/design refinements/of the P series

legal fees fighting a legal battle against a person trying to kill the company

legal fees associated every aspect of the project from day one

building a supplier network

etc, etc, etc

in short, much more than marketing has been and continues to take place

And the ever present item that a lot of the people on here don't seem to understand.
It's called "Debt Service".
For those who don't get it, it's the interest on every penny that you owe.
Mortgage, car payments, the anniversary ring you really couldn't afford.....

 

[Rickb]

If nearly all the funding wasn't actually used for EM's daily operations (salaries/travel/office expenses/bonuses) and Elio marketing, but rather to pay any contracted resources/vendors like IAV, there wouldn't be the mountain of debt that has accumulated at a 25% interest rate according to EM's financial statements in the SEC filing.

My opinon is that 100% of the small investor crowdsource funding should be used for E Builds, testing, and other direct production related goals. The included $6.4 million listed for marketing is 25% of the anticipated $25 Million earmarked to EM's marketing department. GO Chip Stempeck, VP of Marketing!

The best marketing Campaign................the Elio on the road seen by millions of future owners!

 

[Jeff Porter]

On page 25 of the revised SEC document, it spells out allocation of money to be spent during the 15 month period. Included is $6,450,000 for advertising.

Why? I would think they would advertise to the general public when they have something to sell to the general public, and that will not be until the reservations are filled, which will be 5 to 6 months after production begins. This money is to be spent during the 15 month period. Who are they targeting?

Good catch on that line item. If I understand your question, my two cents: gotta get the public knowledgeable about what's coming before it arrives. We all assume that there's 4-5 months of production taken up by the current 46,700+ reservations. So why not wait until production starts? That's what companies do, especially for large-priced items: get the word out early, so people jump at the chance to buy 'em.

Who are they targeting? Anyone that hasn't made a reservation yet.

We can say that we don't agree with the need to spend $6.45 million at that time on advertising, but I think any marketing employee would say it's a must-have, continue to get the word out early.

Remember that not much money has been spent by Elio on advertising so far, relatively speaking. Social media, the prototype tour, a few videos including that professionally done one, internet ads, and some others. And again, we can argue that how much they've spent is too much or not enough or not the right timing, but you've got to get word out on the autocycle before production starts, and you do that through advertising. Plus we can debate over what exactly "advertising" is... is it going to the auto shows and events? Is it having the fireside chat with the StartEngine CEO? Going on the radio show with the Infinite Skyz person?

One last aspect... has there been too much advertising up to this point? I'd say no. Timing is everything, and for years the Elio was considered a scam. Advertising something that some folks consider a scam, well that's not "advertising" at that time to them. Now that it's clearly not a scam, it's important to advertise.

 

[Sethodine]

Who are they targeting? Anyone that hasn't made a reservation yet.

Consider this: there is approximately $19.2m in reservations right now. I can't remember how much of that is non-refundable, but it is the majority percentage. If that kind of cash income can be expected from the advertizing, then it looks like $6.45m on more advertizing would be a winning investment.

 

[ozarkbugg]

Last summer a little Elio ad popped up in an ad box on a web page. First I heard of it. I'm now like 36.000th place in line for an Elio.

 

[RUCRAYZE]

something my pop said-
"a million dollar idea with ten cents worth of advertising gets you nothing
a ten cent idea with a million dollars advertising will make you rich"

my life story- plenty of 10 cent ideas, no money for ads!!!

 

[Robert French]

I have been all in for a long time now #2986, still confident that the Elio will be built. But these current gas prices aren't going to last much longer, let's get this thing built!!

 

[LillyMayPatterson #1685 & #5648]

Long time no see Robert French. Things are finally popping in the Elio World. Did you ever hook up with some local elio people?

 

[LillyMayPatterson #1685 & #5648]

Too bad our 'exciting-news-sec-resubmission' turned out to be just a request for more information resulting in the fine folks at start engines scurrying to re-submit. All in all, it was a great read. I am very hopeful the approval is on it's way. I looking for a Monday Surprise.