Sonic Lightning (SONC) investor relations material

Company overview and business model

• Specializes in wholesale distribution of high-quality aftermarket automotive lighting products, including projector headlights, crystal headlights, taillights, and fog lights, with a focus on compliance with federal safety standards and innovation.

• Operates through a holding company structure with Sonic Lighting, Inc. (Nevada) as the parent and Sonic OpCo (California) as the operating subsidiary.

• Maintains major facilities in California, South Carolina, and Texas, enabling efficient nationwide distribution and rapid delivery.

• Primary customers include major retailers (Costco, Home Depot, Keystone) and wholesale distributors; also acts as a sales agent for other automotive parts manufacturers.

• Business model emphasizes rigorous quality control, regulatory compliance, and customer-centric service for both wholesale and retail channels.

Financial performance and metrics

• 2024 revenue was $81.4M, down 15.5% from $96.4M in 2023, mainly due to declines in wholesale and agency income.

• Net income for 2024 was $2.25M, up from $1.86M in 2023, driven by cost control and increased other income despite lower gross profit.

• Gross profit margin improved to 28.2% in 2024 from 24.3% in 2023, reflecting reduced molding expenses and higher average selling prices.

• Cash and cash equivalents at year-end 2024 were $153K, with positive working capital and no outstanding bank loans.

• Major customers accounted for 52% of 2024 revenue, and the company faces significant customer and supplier concentration risks.

Use of proceeds and capital allocation

• Net proceeds of approximately $7.6M (assuming $4.00/share IPO price) will be allocated to logistics network expansion (20%), R&D (30%), market expansion (20%), acquisitions/strategic investments (20%), and facility upgrades (10%).

• Management retains broad discretion over use of funds and may adjust allocations as business needs evolve.