Q4 2022 RYSE Investor Update

RYSE is a smart-home technology startup that creates innovative solutions to automate window shades. Our quarterly update has just been published and we are making the summary of our update available to the public.

Thanks to increased distribution, visibility and available inventory, we wrapped up the year with one of our strongest quarters to date! Even though 2022 was a transition year – as we liquidated our Gen 1 AXIS devices and fully transitioned to the Gen 2 RYSE SmartShade – we’ve surpassed our previous Q4 sales figures and reached a new milestone in our fundraising round.

Demand for SmartShades is resilient, and we are seeing increased return on our marketing dollars even as consumers cut back spending due to inflationary pressures and depleted savings. As we regroup after the holiday period and look onward to 2023, we are extremely optimistic regarding our ability to grow our sales from increased distribution of the SmartShade and the launch of our SmartCurtain. 

We’re also focused on continuing discussions with B2B commercial clients; leveraging our new accessories (Z-wave adapter and SmartButton) that we will launch in the first half of this year. These deals often take months to negotiate and close, but we’re confident in the high-volume, recurring sales that they can provide.

SALES

Q4 Sales Growth

Q4 is always our strongest quarter, and we are pleased to announce that last year’s Q4 was one of our best yet! Q4-2022 sales increased by 26% to CDN$766k from CDN$605k in 2021 (unaudited)

Unsurprisingly, we are once again almost completely sold out of inventory; thankfully, our 4th batch of SmartShades consisting of 3,000 units is scheduled to land in the end of March, with a 5th batch of another 3,000 units scheduled to land in May.

ENGINEERING & PRODUCTION

RYSE SmartCurtain

We have filed a patent for our new product, the RYSE SmartCurtain, and preparations are being made for the first factory production run!

The RYSE SmartCurtain will can automate any drape or curtain that runs on a rail or rod, with similar smart features as our SmartShade. Curtains and drapes remain a popular window treatment option in hotels, and we aim to leverage this new technology to break into this multi-billion dollar industry.

Here is a short video demonstrating how the product works:

RYSE SmartButton

Our team has completed development of our brand new accessory, the RYSE SmartButton!

The button can pair with up to 4 SmartShades, and offers an alternative, user-friendly way of controlling and getting the most out of our devices. The idea for the button came as a result of discussions with Hotels and other commercial building managers. They emphasized that practical operation of our devices is critical for guests who are more familiar with physical control via a remote interface, rather than a mobile app, or the SmartShades’ on-device controls. The button will be ideal for any small public settings and rooms and 250 buttons have already been procured for internal testing and demos.

We aim to use the buttons on hand to capitalize on the relationships that we’ve built in these industries and negotiate large scale contracts.

Mobile App Improvements

As we prepare for the launch of our SmartCurtain, our application development team is working hard to add the SmartCurtain control features to our application.

Curtains pose a more complex control problem than shades, as they can be opened and closed from both sides, and there can even be multiple curtains per rod. Our team has designed unique solutions for all scenarios, and multiple SmartCurtains can be synchronized together for a customizable and seamless automation solution.

Opening/closing from the left or the right side or even diverging from the middle point of the rod in opposite directions, the application will be able to control the devices in any scenario.

The main application dashboard will also be receiving a facelift to include new icons and functionality, making it easy to discern between and control different SmartShades or SmartCurtains.

Finally, our team’s research has identified that users could benefit from intuitive labels of each device based on the device’s location in the residence. We will be testing this new functionality for device groups, where each device’s icon and name is unique and represents the real-life features of its window and location.

RYSE SmartBridge Wi-Fi Support

As you know, our SmartBridge allows our devices to connect to the cloud and integrate with smart-home platforms for enhanced functionality and automation.

The current version only works through a wired connection to a modem via Ethernet; however, following feedback from some of our customers, our team has developed an alternative version of the SmartBridge that features Wi-Fi support. This provides users with the option and flexibility of placing the bridge further away from their modem and we will be testing this version of the SmartBridge with select customers in the coming months.

MARKETING & BUSINESS DEVELOPMENT

Onboarding New Commercial Partner

We have just finished onboarding our newest commercial partner, WorkplaceOne. Catering to the modern workforce, WorkplaceOne furnishes co-working space throughout Toronto, Ontario with a focus on guest experience.

They have a total of 5 locations in the city, and we recently completed a photoshoot at their Queen Street location that has been outfitted with the SmartShade.

RYSE Influencers

We’ve also recently been picked up by some influencers on social media who showcased our products to their following. Here are two of the influencers and the videos that they shared.

CORPORATE DEVELOPMENT

New Advisory Board Member

Our journey to expand our distribution into direct B2B channels has led us to add a new advisory member to our board.

Leo Alessi is an expert in B2B sales, and he has recently joined RYSE as an advisor to help guide our sales strategy forward. Leo joins RYSE at a critical time, as we plan for international expansion into high volume B2B channels.

Fundraising

We have recently surpassed a milestone of over US$2M raised in our current Series A fundraising round!

Our investment opportunity has been featured in many high-profile business publications, including The DailyUpside and ThePeak.

Despite the turbulence in financial markets, and endless stories about how startup capital has dried up, we continue to see demand for RYSE stock.

We have managed to secure significant funding that is being allocated to inventory, R&D & new product introduction, sales & marketing and other operational costs. We are nearing closer to our fundraising goal in the current $1/share round as investors remain optimistic about the growth and potential of the smart-home industry.

Until the next update.