AN EXCLUSIVE OPPORTUNITY TO SCALE A PARADIGM-SHIFTING, HIGH-MARGIN TECHNOLOGICAL ASSET
- Monopoly via Innovation: Existing electronic braille displays are limited to single lines of static text and lack graphics or animation capabilities. The Cadence is the only device on the market allowing users to keep their fingers on the display while the tactile dots move, making it a revolutionary tool for STEM education and technical workforce applications.
- Sole-Source Protection: Tactile Engineering successfully utilizes a sole-source justification for government and educational procurement, bypassing traditional competitive bidding processes. This is legally defended by multiple issued and pending US patents, as well as its exclusive "Made in the USA" manufacturing status.
- Favorable Cost Profile: The raw Bill of Materials (BOM) for the Cadence tablet is remarkably low at $353.29, with total current Cost of Goods Sold (COGS) reaching $1,508.11.
- High-Margin Pricing: The base MSRP for the "Cadence Pocket" or "Solo" unit is $5,749.34 to $5,750.00. Larger configurations, such as the Cadence Workstation (Quartet), sell for $21,500.00. Tactile acknowledges that COGS has substantial room to decrease with Q1's volume manufacturing capabilities.
- State-Level Rollouts: Tactile holds a comprehensive $1,900,000.00 professional services and hardware contract with the Indiana School for the Blind & Visually Impaired (ISBVI). This represents part of a recurring 4millionstatebudgetallocation(2 million annually for hardware and services).
- Nationwide Purchase Orders: Validated purchase orders demonstrate immediate willingness from state agencies to pay high unit prices using educational and vocational funds. Examples include a $21,500.00 PO from California, a $43,980.00 PO from the Colorado Department of Education, a $4,995.00 PO from the Florida Division of Blind Services, and combined POs from Ohio totaling over $124,000.00.
- Licensing Terms: Tactile is offering Q1 an exclusive, worldwide license within the wireless and telecom sector. The proposed terms require a $500,000 one-time licensing fee for a 12-month period, which will automatically extend if Q1 meets a $5 million minimum annual sales threshold.
- Guaranteed Margins: Tactile is proposing a fixed 20% profit margin for Q1 to act as the exclusive distributor. With a single large state or federal award, this project is forecasted to pay for itself almost immediately.
- Operational Synergies: Q1 is uniquely positioned to scale this technology. Tactile’s sole-source status is heavily reliant on domestic manufacturing and servicing. Q1 can seamlessly absorb this requirement through its planned Q4 US manufacturing (SMT/CKD) initiative and its 106,000+ square foot ISO-certified 3PL facility in Orlando. Furthermore, Q1 can leverage its Tier 1 carrier MSAs (AT&T, Verizon, T-Mobile) to bundle the Cadence tablet as a connected enterprise and education mobility solution.
Market Position & Traction
- Proven Demand: Active state contracts (e.g., $4MM Indiana budget award) and consistent POs at ~$5,000/device.
- Sole Source Status: Protected by multiple US patents; no direct competitors capable of real-time animated tactile graphics.
- Strong Economics: Current COGS at $1,508 against an MSRP of $5,750, leaving high margin potential for scaling.
Proposed Terms
- Exclusive License: $500K one-time fee for a 12-month exclusive worldwide license (auto-renews with volume targets).
- Volume Threshold: $5MM minimum annual sales.
- Distribution Margin: Fixed 20% profit margin to Quality One, utilizing Q1's elite 3PL and tier-1 carrier infrastructure.
By combining Tactile's breakthrough "Made in the USA" technology with Quality One's comprehensive supply chain and North American market entry capabilities, this partnership is positioned to capture immediate government, education, and enterprise sectors.
DISCLAIMER + FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements regarding future operations, product development, market opportunities, and financial performance. These statements are based on current expectations, estimates, and projections about the industry and markets in which Tactile Engineering and Quality One Wireless operate. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “trajectory,” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Cocoanut Row Holdings, Inc. (“CoRo”) provides advisory, marketing, and consulting services in connection with certain business opportunities and potential transactions. CoRo is not a registered broker-dealer and does not solicit, negotiate, structure, or recommend specific transaction terms. For full disclosures and legal terms, please see our Data Room Legal Disclosures.
