otcqb: phot investor summary 5400 carillon …...cannabis production •estimated cagr 33.5% through...
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OTCQB: PHOT Investor Summary5400 Carillon Point Kirkland, WA 98033
CONFIDENTIAL
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ABOUT
GrowLife, Inc. (OTC QB: PHOT) is a nationally recognized
cultivation brand, with an estimated 100,000 shareholders,
providing world-class hydroponic equipment to commercial
and consumer grow operations. With a complete selection of
cultivation products combined with consultative and
distribution services, GrowLife can help cultivation operations
efficiently control supply costs, manage build-out investments,
track supply usage and streamline workflows.
PRODUCTS CONSULTING INNOVATION
GrowLife brings the highestquality products to the indoorplant cultivation market.
GrowLife is comprised ofindustry experts prepared tohelp our customers with any sizegrow project.
GrowLife believes in innovationas the key to success for ourcompany and clients.
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COMPANY GOALS & STRATEGY
MISSIONGrowLife measures its success by its customer’s success;
serving cultivators of all sizes as a reliable business partner
and its shareholders with value and trust.
• Consultative direct sales force – Provide sales and services to
large B2B growing operations
• Develop and license GrowLife-branded products at lowest cost
to maximize margins at competitive prices
• E-Commerce – Lower cost of sales to reach remote markets with
self-service fulfillment
• Optimization system for most cost-effective production pricing
and logistics
• GrowLife Consumer Subscriptions – B2C starter kits with
recurring revenue stream from consumable supplies
• Points of Sale – Build and support nationwide store-within-store
hydroponic sales network
• Retail store – Replaced company stores with licensed retailers
from fixed to variable cost strategy
GOALS• Offer leading indoor cultivation platform, necessary
cultivation products/services, for stakeholders
• Operate four divisions to leverage channel management
and customer depth to support GrowLife platform
• Deliver lowest production cost for our customers in
hydroponics while maximizing customer footprint
CLONE TO HARVEST
IMPACT ANALYSIS
GOALS:
✓ Maximum Yield
✓ Lowest Cost
✓ Highest Quality
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NORTH AMERICAN COVERAGE STRATEGY
Market SizeUnited States:
Cannabis Production
• Estimated CAGR 33.5% through 2021
General Indoor Cultivation
• $689.7 million in gross revenue
Luxury Vinyl Tile
• In 2016, the U.S. flooring market grew an estimated 5.1%, according
to Market Insights, with total revenues of $21.174 billion.
• LVT now accounts for 16.5% of the total flooring market in dollars and
18.8% in volume
Canada:
• Number of Cultivators Continually Increasing – up 20% this year
• Home Grow Legal – 36MM potential consumers
Combined Industry Size: $12.63B
Why GrowLife?• Industry expertise, reliable product offering at best price
• Professional bidding on commercial installations
• Multiple channels offering to serve all indoor cultivation consumer groups
Reaching Customers• Commercial Grow Consulting – Direct Sales Force
• Fully integrated e-commerce platform with back-end logistics
• Retail License Agreements - Reach geographic specific cultivators (2,472+)
with brand and "store-within-a-store”
GROWLIFE COMMERICAL (B2B SALES)
Role• Work with medium-large scale cultivators in facility build out and on-going support
• Lead generation programs: Traditional marketing activities (Mail/email, advertising,
digital media), trade show/events, referral programs, etc.
Structure• Features industry leading owned and partnered product offering sold in large
quantities to B2B customers
• Distribution business division built around direct consulting sales force with core
competencies in large scale cultivation design
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Recent Acquisitions: EZ-Clone Enterprises, Inc. & FreeFit Floors
GROWLIFE INNOVATIONS (R & D)
Role• Develop and bring to market GrowLife-branded products and services to deliver enhanced
gross margin for profitability
• Control of 35%+ gross margin offerings with profitability and discount flexibility
• Unique feature and benefit controls differentiation and competitive advantage
GrowLife Branded OfferingsGrowLife
• GrowLife Soil – Nutrient enriched soil in two forms: Standard and Custom Recipes
• GrowLife Cube – Consumer “home grow” solution – high margin
• GrowLife Exo
EZ Clone
• Leading cloning system to maximize the quality of plants
FreeFit® Flooring
• Custom flooring solution – few competitors
GrowLife Commercial Vertical Growing System
• Patent-pending vertical growing methodology
• Value Proposition: Verifying $0.35/gram (75% reduction in production cost)
Procedures• Identify and confirm customer need, identify and select supplier, Proof of concept
• Description, go-to-market timeline, budget, sales forecast, etc.7
Role• ShopGrowLife.com and GrowLifeHyrdo.ca are GrowLife’s online distribution channel for remote access
with zero inventory to purchase products
• Provide broadest customer reach, product depth, best pricing and 24-hour turn-around
• Re-order portal for commercial clients
• Education source with analytical decision support system
Value Propositions• Customer Acquisition awareness with free shipping for starting purchase
• Customer Retention marketing with better margins
• Purchase analysis and predictive logic for repeat sales with larger orders from logistics
GROWLIFE HYDROPONICS (CONSUMER)
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GROWLIFE RETAIL (LICENSING)
Role• Goal: National coverage GrowLife Retail License retailers with store-within-a-store
• Provide GrowLife marketing support: signage, training and national marketing
• Local cultivator presence to enable direct sales bids
Value Propositions• Reach: Identify, mail and call non-hydroponic hardware/gardening retailers on
a weekly basis
• Value proposition: Best practices in hydroponics to supplement store sales and
offer rev share on bids
• Licensees send in bid (B2B) information to inside Sales rep and retail GrowLife Cube
• Immediate (<24 hour) fulfillment
• Gross Margin share goes to store, inventory sales to same customer belong to Bid fee
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THE FUTURE: GROWLIFE COMMERCIAL GROW SYSTEMS
Complete Commercial Grow Rooms• Lower supply, equipment, labor and electrical costs
• Drive down complete production cost from $1.50+ to $0.35 per gram
Turnkey Process• Consulting services provides assessment of costs and savings
opportunities
• Design and costs estimates including capital equipment versus on-going
production cost
• Estimated expansion and forecast models at varying market prices
Status• Two provisional patents filed
• Design and proof of concept underway
• Primary use of proceeds
• Consulting sales force staffing
• Further patent filings underway
OTCQB: PHOT Investor Summary5400 Carillon Point Kirkland, WA 98033
CONFIDENTIAL