Shareholder Update - August 2024

As always, we would like to thank you for your faith, support and hard earned dollars entrusted to BRIDGE. 

QUICK TAKEAWAYS FROM THE BELOW:

• Fundraise continues and though it is very challenging out there to raise funds, we have attracted ~600k and have more good leads on the go with a verbal confirmation of another 100K coming in next week. As always, we need as much help as we can get with introductions as the needs for growth capital are constant. We are in need of approximately $1M more
• September is shaping up to be a breakthrough month for us with a plan to bond and ship the most frames in a single month yet. This should initiate a trend going into 2025 and let us know how many frames our current team and process can handle
• Two new hires, along with our consistent process improvements, have lead to increased throughput 
• In the next 8 months we are aiming to double our shipped bikes to 16-20 per month, with consistency
• This added volume should get us to cashflow positive, or at least towards the light at the end of the tunnel 
• Our sales are hampered by our production constraints, we do however continue to sell each month adding to our ~100 bikes currently on order
• We are 8-12 months behind our projected targets, mainly due to the challenges in ramping up production causing longer lead times than anticipated and making sales more challenging
• The demand for our product continues to grow and we believe that sales going into 2025 will be strong, especially as our production improves giving us more insight into delivery times leading to better communications and expectation setting
• Unbelievable testimonials continue to roll in further proving the world-class nature of our product. The rest is up to us to produce faster with no loss of quality, and to sell more

PRODUCTION & SHIPPING

In our efforts to improve throughput...

New Hires: We hired a press and tool operator. Through process analysis we discovered that our laminators were spending upwards of 35% of their time not making parts, instead they were placing them in the tools and operating the press. By hiring someone to do those activities, our laminators can spend most all of their time making parts. We have already seen an improvement in the first month with increased throughput and only expect this to improve as the individual is trained up. 

Tool and laminate improvements: We have redesigned the tools for our fork dropouts leading to vastly improved parts and the ability to make them in sets, rather than one at a time. We are also improving our laminate schedule on our fork to use less material and take less time to produce which will vastly improve throughput. It's taken awhile, but our new press should be operational in September as well. This has not slowed us down yet, but will speed us up going into 2025. It also acts as a safeguard in case one press goes down for maintenance, etc. If you remember, this press is much larger and so it is intended to help with being able to cure more parts at once, and in the longer term, allow us to design larger tools. 

Paint: We have hired a full time paint prepper. This hire allows our professional painter to focus purely on painting and not on all the laborious prep work. This recent hire is already showing that throughput will be improved, leading to what should be a standout September. We will also be installing a redesigned paint booth to handle our expected throughput improvements going into 2025. The redesign also takes into consideration all of the lessons we have learned about operating a paint shop. This should be installed end of September or early October. 

Engineering: Our engineers are focused on process improvements through tool design, laminate and procedural analysis, focused on throughput improvement.