HIT Technologies Inc. Alex Cutulenco · Alex Cutulenco Analyst ... HIT Technologies Inc. (TSXV:HIT)...

Alex [email protected]

Price Performance - 52 weeks

Market Data (TSXV:HIT)Price (September 20, 2016 close) $0.0552 Week Range $0.04 - $0.25Market Cap (mm) $3.0Shares Outstanding (basic, mm) 67.4Free Float 71%Average Daily Volume (30 days) 106,391

Total Debt (mm) $0.0Cash & Short-Term Investments (mm) $0.1Total Assets (mm) $1.7

Headquarters Vancouver, BC, Canada

Top ShareholdersNicola Holdings Ltd 13.4%Vert Holdings ULC 10.1%Robert Chalmers 4.4%Rob Chase, Chairman of the Board 1.1%

All figures in CAD unless otherwise stated.Source: Thomson Reuters (9/20/2016)

HIT Technologies Inc.(TSXV:HIT)

GoPro is Out, Detachable Phone Cameras Are In

Company Description HIT Technologies (“HIT”, “HITCASE”) designs, manufactures, and distributes a suite of iPhone-specific cases branded under HITCASETM. The Company’s cases are not only water and shock proof, but also feature a patented design that allows you to snap on interchangeable lenses to capture “GoPro” like adventures. The cases retail for CAD$100, with detachable lenses and other accessories retailing for $15-$50.

Investment Highlights• Why would you ever bring your phone and a GoPro on your adventure?

Why not combine the two? This is the exact nuisance that HITCASE is solving. By offering premium iPhone cases with an array of detachable lenses, you never have to worry about carrying several devices with you. With the consistent improvements in phone cameras, iPhone cameras now feature a 12-megapixel resultion and 4K video capability, making photo/video quality comparable, if not better than, action cameras themselves. Seems like a no-brainer.

• 87% of smartphone users have a case. The phone case and accessories market stands at an abundant $82 Billion for 2015. This market assumes that HITCASE falls strictly within the market for phone accessories. However, the HITCASE is also a substitute product to an adventure camera device such as a GoPro, a market that also lies in the billions of dollars.

• Lowest Cost Adventure Cam Alternative. As an alternative to buying a GoPro, you can buy a HITCASE with a lens for just CAD$100. Apart from being a low-cost alternative, it is also a very high-quality product – we tested it ourselves.

• HIT has distribution partnerships with Telus, LG (Korea), Best Buy, NPC, London Drugs, Tom Harris, Union Wireless and many others. In total, their products are distributed globally through 300 doors. This number will dramatically increase over the next year, as the company is already in talks with Rogers, Bell Canada, AT&T, as well as Apple stores themselves.

Financial Analysis & ValuationFinancially speaking, HITCASEs are selling like hotcakes. The Company generated $1.2 million in sales of its HITCASES and accessories for the first 9 months of fiscal 2016 compared to $450,000 for the first nine months of fiscal 2015. This is a 167% growth in revenues over the previous year, while also successfully increasing gross profit margin from 22% to 31%. With the iPhone 7 release hitting consumers’ hands in late September 2016, HIT forecasts to begin sales of their iPhone 7 cases in early November.

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Equity ResearchConsumer Staples | Canadian Small Cap

September 21, 2016

HIT Technologies Inc. (TSXV:HIT)

September 21, 2016 2

Table of Contents

Investment Thesis ................................................................................................................................................. 3High Quality Product Targeting the $80 Billion Adventure Seeking Market ...................................................................................... 3

New Product Launch: iPhone 7 Release ............................................................................................................................................... 3

Growing Distribution Channel ............................................................................................................................................................. 4

Building a Brand, 1 Sponsored Athlete at a Time ................................................................................................................................ 4

Catalyst: Company to Report Fiscal Year 2016 Financial Results at September-end .......................................................................... 4

The Company ........................................................................................................................................................ 5Products ................................................................................................................................................................................................. 6

HITCASE PRO – Heavy Duty Case ................................................................................................................................................ 6

Interchangeable Lenses, Patented Railside System and Attachments ............................................................................................. 7

HITCASE Shield – Everyday Case .................................................................................................................................................. 8

HITCASE Snap ................................................................................................................................................................................ 8

Vidometer App .................................................................................................................................................................................. 9

Financial Analysis ............................................................................................................................................................................... 10

Operating Expenses ....................................................................................................................................................................... 10

Capital ........................................................................................................................................................................................... 11

Industry Overview .............................................................................................................................................. 12Five Force Analysis ............................................................................................................................................................................. 13

Competitors: Marketing Spend & Profitability ................................................................................................................................... 14

What Makes HITCASE Unique .......................................................................................................................................................... 14

Competition ......................................................................................................................................................................................... 15

Delays in Product Development May Severely Hurt Sales ............................................................................................................... 15

Conclusion .......................................................................................................................................................... 15Appendix A: Recent News ................................................................................................................................. 16Appendix B: Management & Board of Directors ............................................................................................ 17



Investment Thesis

High Quality Product Targeting the $80 Billion Adventure Seeking Market The Company is strategically focused on designing, producing and commercializing a line of high-quality protective cases for the iPhone, in addition to the associated replaceable lenses and other add-ons. The Company is an innovator when it comes to case designs, offering a very slim and waterproof case for everyday use (HITCASE Shield), and a more protective case that can be bundled with adventure-type attachments (HITCASE PRO).

We have had the opportunity to play around with the cases, and we had a very positive experience. The case was easy to handle, and outcome of the videos (using the different lenses) were very positive. Read the Product Description section for a full brief of our testing experience.

Apart from being a protective case, the HITCASE PRO also acts as a substitute to various other adventure camera devices out in the market, such as the GoPro or Sony Action Cam. This market segment is highly competitive, yet we believe HITCASE has an advantage over industry incumbents in terms of the price of the product and convenience. As opposed to having to buy a separate camera, the HITCASE PRO uses the iPhone’s camera to shoot videos. In terms of quality, the camera specs on the new iPhones are comparable to the video quality offered by competing devices. At a price point that is as much as USD $300 less, the HITCASE seems to provide a lot of value to the price-conscientious consumer.

New Product Launch: iPhone 7 ReleaseApple (NASDAQ:AAPL) released a new line of iPhones at its keynote presentation on September 7th, 2016. Because of the company’s investment in R&D, which gives HIT the ability to rapidly modify its cases for new iPhone designs, HIT expects to be one of the first to market with cases for the iPhone7. This is a big competitive advantage that HIT has over other knockoff case manufacturers.

It is anticipated that the Company will begin manufacturing iPhone 7 cases by October-end, with sales materializing at the start of November. The timing is perfect given the onset to a busy Christmas holiday season, and a prime time for consumer staples stocks to capture the most seasonal part of their revenues.

We would also like to point out that consumer staples stocks thrive on product innovation, and multiple product releases. Given the fact that HIT follows in the footsteps of Apple, and given that we can likely expect Apple to keep releasing new products in the near future, there will always be product innovation opportunities for HIT – which we cannot say the same about other consumer stocks.

Lastly, iPhone users welcomed warmly the water-resistant feature on the new line of phones, a feature that has already been offered by other phone manufacturers such as Android. Although this might seem as a threat to HITCASE products (and their waterproof design), we could not disagree more. Water/splash resistant phones will trigger people to explore and take more adventure risk, hence leading to situation-specific purchasing. New customers will become



more advent to getting a waterproof case as they develop a more adventurous lifestyle, with HITCASE situated at the pinnacle to capture that new market.

Not only does the launch of the new iPhone create a catalyst for HITCASE, but it also destroys some value offered by adventure-camera manufacturers. A better camera on the water-resistant iPhone may make GoPro’s presumptive Hero 5 a bit less compelling this holiday season. It’s no wonder that GPRO`s stock dropped 4.7% after Apple’s keynote.

Growing Distribution Channel HIT currently distributes their products online (via their hitcase.com website) as well as through various retail channels (including phone carrier stores and specialty sports retailers). Specifically, the Company has distribution partnerships with Telus, LG (Korea), Best Buy, NPC, London Drugs, Tom Harris, Union Wireless and many others. In total, their products are distributed globally through 300 doors.

What is exciting about the next several quarters of operations are that HIT’s most recently launched product – HITCASE Shield – has only been commercially available for two months. We believe that the new product will be an enticing product offering, capable of having a much better chance of attracting new distribution partners. The Company is already in talks with Rogers, Bell Canada, AT&T, as well as Apple stores themselves. Any one of these large distributors can push sales materially higher.

Building a Brand, 1 Sponsored Athlete at a Time HIT has had sponsorship agreements with a total of 25 athletes to date, who act as brand ambassadors for HITCASETM. The Company has depicted these athletes based on their social media followings, attempting to garner brand exposure to a maximum audience, while also depicting the right target consumers.

In total, the combined media power of these sponsored athletes, in addition to HIT’s own social media presence, exceeds 6 million individuals – a very impressive distribution. The sponsored athletes have a quota of content that is contractually expected of them, however, the athletes almost always tend to post more content than required, implying an authentic appeal for HITCASE products. Additionally, outside consumer content (non-paid) using HITCASE has grown to over 28,000 pieces of content (videos, photos, blogs, and other).

In addition to sponsored athletes, the Company has also initiated a relationship with the Discovery Channel to produce an underwater livestream during Shark Week. The program was a major success, and reported an audience of 80 million, with HITCASE capturing 6.4 million impressions of their product.

Catalyst: Company to Report Fiscal Year 2016 Financial Results at September-endHIT will be releasing their Fiscal Year 2016 Financial Results sometimes at the end of September or early October. Investors should expect to get further visibility in the company’s financial situation.



The Company developed their first HITCASE in 2013. Because of limited financial resources, the Company managed to only sell nearly 20,000 units over the first 2 years of operations. Concurrently, the Company completed several rounds of financing in 2015, and raised a total of $6.8 million culminating in the Company going public on the TSXV via a three-cornered amalgamation with Friday Capital Inc.

Nine months later, the Company had $1.2 million in sales of its HITCASE and accessory products, compared to $450,000 for the first nine months of the prior year.

The Company

HIT Technologies Inc. (“HIT”, “HITCASE”) is a business that designs, manufactures and distributes a suite of premium phone accessories for the Apple iPhone, branded under HITCASETM. The Company’s mission is to build a premium brand and products that are synonymous with adventure and creativity.

The company has several product lines, specifically:

• iPhone cases (HITCASE PRO - mountable, waterproof and shockproof; Snap - mountable and partially shockproof; and Shield - waterproof, everyday case)

• Detachable lenses (wide, superwide, macro, and flat lenses) • Accessories (selfie stick, chest strap, floating strap, and other)• Phone app called “Vidometer”, which adds video overlay options such as a mini map,

speedometer, heart rate data and more.

Figure 1: Company’s Products

Source: Company Website



HIT’s success drives from the fact that most videos and photos are now being taken using our smartphones. This is a fundamental sociological shift in the way consumers choose to use the technology that is available to them. What’s even more telling is that people carry their phones with them anywhere they go.

This is good for HIT, since phone cameras are getting better and better. The newest line of iPhone cameras now features a 12-megapixel resolution, 4K video capability as well as other photo/video quality features.

The Company was founded, and currently being run, by Brooks Bergreen, an adventure seeker himself. A director of several award-winning war documentaries, designer of satellite communication and defense systems for the US DoD and Canadian DND, as well as a designer of health informatics system in post war Kosovo, it is no question that Brooks has a unique background.

Harnessing this adventurous persona, Brooks began building a line of products that he himself would love to use. Result? A line of waterproof cases, which can sustain the elements of a high-quality camera, and have the ability to quickly capture and share shots.

Products

HITCASE PRO – Heavy Duty CaseLegacy phone case, which is robust enough to sustain shock, is waterproof, and capable of having interchangeable performance lenses and versatile mounts.

Figure 2: HITCASE PRO




Specs

• Waterproof up to 33 feet / 10 meters• Drop proof up to 6 feet• Mountable• House interchangeable lenses• Very easy to put on and take off as compared to other cases on the market

Interchangeable Lenses, Patented Railside System and AttachmentsHITCASE is one of the only few waterproof iPhone cases with an array of interchangeable lenses. The concept is a no-brainer, allowing a user to have various optical imaging effects to their already acquired phone. Lenses include a macro lens for taking close-up pictures, and a wide-angle lens to expand the field of view and a super-wide lens to give a full 175-degree fisheye view. Additionally, the case comes with a flat lens, which is an anti-reflective and anti-scratch glass lens, keeping your phone waterproof at all times.

Additionally, the Company has designed a patented Railside® Mounting System, which allows you to attach your phone to a large range of mounts, such as a body mount, bike mount, helmets, automobiles, boats, and even a selfie stick. The mounting system may also be used with interchangeable GoPro attachments.

Figure 3: HITCASE Interchangeable Lenses + Railside System Accessories/Attachments




HITCASE Shield – Everyday CaseThe HITCASE Shield is the world’s thinnest waterproof iPhone case. Designed as an everyday use case, the Shield offers unparalleled protection without compromising style. Keep in mind that this case does not offer interchangeable lenses or other Railside attachments.

Figure 4: HITCASE Shield


HITCASE SnapThe last of the 3 iPhone cases offered is the Snap, which is a less rugged case version of the HITCASE PRO. Although not being a waterproof case, it still sports some of the adventurous features of the PRO – being able to have interchangeable lenses and Railside mounting attachments.

Figure 5: HITCASE Snap




Vidometer AppHITCASE has engineered an app, which adds video editing and data capturing features to the iPhone. Users can overlay event data to their videos, such as speed, altitude, geo-location, G-Force, map-overlays, and heart-rate data (compatible with an Apple Watch and other applicable third-party heart rate monitors). Not only does this add excitement to video taking, it also dramatically improves the quality of videos post-production.

Figure 6: Vidometer App


Distribution and Marketing

HIT is really focused on not only delivering great product, but more importantly on building a brand. This is something that is unique to this phone case manufacturer in comparison to other companies on the market.

The Company’s distribution focuses on mixing e-commerce with retail. HIT kicked off its retail launch in August 2015, with specialty retailers out of Whistler, British Columbia. It now has retail partners with over 20 distributors world-wide. HIT will also be selling its products in 192 Best Buy stores across Canada.

Social media wise, its fan base has grown from 10,000 fans, to over 477,000 fans as of March 2016. The Company also boasts over 28,000 pieces of user-generated content (photos and videos) on Instagram. This shows good traction and a genuine appeal for the Company’s products.

As a short – medium-term catalyst, HIT is developing a number of new key distribution partners, as it is already in talks with Target, Walmart and Best Buy USA. Any one of these would mean several million in addition sales.

Additionally, the company uses an array of athletes, as HITCASETM brand sponsors. Having had roughly 25 athletes as brand sponsors, the combined media power of these athletes (in addition to HIT’s own social media presence) exceeds 6 million individuals.



Financial AnalysisHIT reports its fiscal period year end at the end of every June. Implication for this is that the winter holiday season, a quarter which adds most to sales for consumer staples stocks, is Q2 for HIT. This is evident by the figure below, as Q2 accounts for roughly 35% of annual sales.

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Figure 7: Revenues and Gross Profit Margin

Source: SEDAR Filings, Ubika Research

While we expect HIT to report full year-end financials by the end of Sept. / early Oct. 2016 (for FYE June 30, 2016), we can see significant improvement in sales and operations over the first nine months of fiscal 2016. In the first nine months of fiscal 2016, HITCASE sales hit $1.2 million (with additional $0.2 million coming from non-HITCASE legacy products) compared to HITCASE sales of $450,000 for the first nine months of fiscal 2015 (with additional $440,000 from non-HITCASE legacy products). We expect overall gross profit margin in excess of 30%, as seen in the first nine months, compared to 22% same period last year.

With the iPhone 7 release hitting consumers’ hands in late September 2016, and HIT forecasting to begin sales of their iPhone 7 cases in November, these sales figures should begin to be reflected in Q2/2017 – prime time for consumer staples stocks.

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Source: SEDAR Filings, Ubika Research

Cash Op.Ex. of $500k for Q4/2016. Consistent with Management’s guidance.



Operating ExpensesApart from the cost of making the product, HIT’s other large expenses constitute marketing, general & administrative, as well as research & development.

The Company expects to spend about $400k a quarter in cash operating costs going into fiscal 2017, which will likely be ramped up to $1.25 - $1.5 million due to additional marketing dollars as the business matures. Based on a 38% GP margin and annual operating costs of $1.6 million, the Company needs to generate $4.2 million in revenues to break even.

Doable considering the size of the market, and the potential of their products as HIT enters into new distribution partnerships. As consumers become more aware of the various choices for purchasing adventure-type cameras, the HITCASE should begin to take some market share from current competitors. Speaking to friends and family, the HITCASE is a much needed, lower-cost, adventure camera alternative.

CapitalAt May 27, 2016, the Company has 67.4 million common shares outstanding, 3.7 million options granted, and 11.8 million warrants. The warrants have a weighted-average exercise price of $0.07 and all expires on November 13, 2017.

Considering that HIT is not at its break even point just yet, we expect that the Company will need to raise additional financing in the near future.



Industry Overview

A phone camera is the most used camera. You carry your phone with you all the time. Therefore, it makes complete sense that firms are attempting to innovate creative ideas around your phone, to get the picture quality and photo-taking experience to the best standards possible.

The industry in which HITCASE competes is twofold:• one being the overall market for phone cases• and the other being the market for adventure cameras.

We would like to think that the Company is operating within both of these markets, simultaneously. This not only lets them attempt to take market share from a larger dollar sum pie, but also specifically differentiates them from a lot of other consumer discretionary products.

Figure 9: Product Matrix

Phone Cases Adventure Cameras

Source: Ubika Research

+ many other small brands

+ other small, knock-off brands



Five Force AnalysisA Porter’s five forces analysis is a framework that attempts to analyze the level of competition within an industry. It implies the overall level of profitability for industry participants, and is a good framework to use in this case.

Figure 10: Porter’s Five Force Analysis - Phone Case and Adventure Camera Industry


Supplier Power (LOW)• Supplier power is low,

given that there are a number of input materials supplies, which the industry can access. Most of the supplies include aluminum, plastic and glass, all of which are widely accessible.

Buyer Power (HIGH)• Bargaining power of buyers

is relatively high given that phone cases and/or adventure cameras are mostly discretionary purchases and the consumer can just walk away if prices are too high.

• Buyer power is also high because of the range of options for consumers to choose from, forcing either of two scenarios: 1) price wars amongst suppliers, or 2) the need for increased product differentiation to command various price points based on quality and number of features offered.

Threat on New Entrants (HIGH)• Barriers to entry seem low, given the number of companies that

appear on the market, and/or which that emerged over the last 2 years.

• Phone casing and adaptive lenses does not seem like a difficult product to make/develop.

Threat of Substitutes (MEDIUM)• A substitute to a HITCASE PRO, is the market for specific

adventure cameras (such as the GoPro and Sony Action Cam). Both product options solve the same problem in very unique ways.

• In addition, apart from having a phone case, no other substitute option exists in the marketplace for protecting your phone. In the case of making your phone water resistant, the only other substitute is for the consumer to get an already water resistant phone (such as the Samsung Galaxy S7 Active).

Existing Competition (HIGH)• HITCASE competes with

a lot of other phone case manufacturers, with the only other company attempting to build a brand being OtterBox. Searching for “phone case” on Amazon, brings you over 400+ results.

• In the case of a phone case style action camera, there also appears to be other companies/brands that offer similar type products, with no clear-cut market leader.

• Competition for cases is high. This is why companies need to differentiate, and offer unique selling points.

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Competitors: Marketing Spend & ProfitabilityWith consumer staples stocks, some of the more important metrics to analyze are marketing spend and profitability margins.

Company Name Ticker Market Cap Revenue Gross Profit GP%Selling &

Marketing Expense

S&M %

Sony Corp 6758.T 53,341 90,057 32,588 36% 18,798 21%GoPro Inc GPRO.O 2,404 1,646 620 38% 415 25%TomTom NV TOM2.AS 2,648 1,500 798 53% 387 26%Garmin Ltd GRMN.O 11,649 3,840 2,092 54% 226 6%

Hit Technologies Inc HIT.V 3.7 1.5 0.5 31% 1.9 130%

Figures in CAD millions.

Figure 11: Competitors - profitability & marketing spends


To put the above table in context, some of the larger brands that manufacture their own versions of adventure-type cameras (including the TomTom Bandit, GoPro Hero, Garmin Virb XE, and Sony FDR-X1000V) are also heavy marketing spenders. After all, consumers are very familiar with the above brands for a reason. In fact, marketing accounts for roughly 20-25% of revenues (with the exception of Garmin) for these brands. This is equivalent to hundreds of millions of dollars. Although HIT only spent about $1.9 million in marketing dollars over the past year, this is a heavy chunk in proportion to their revenues (130%).

On the profitability side, the larger brands are sporting a gross profit margin of 36-54%. The high 30s is what HIT is currently trying to attain, and is not that far off from it (having recorded 37% GP margin over the last two quarters).

What Makes HITCASE UniqueIntellectual property is one of the key deterrents for any new entrant into the phone case/adventure cam industry. HIT, having published two patents, has created a major barrier to entry. After four years of research, the Company’s patent portfolio includes:

• the waterproof seal that is used for the PRO• Railside system (any other product on the market with a rail mount is infringing)

We see HITCASE as innovators in this space. The Company clearly understands that the type of content that is consumer created content nowadays requires a phone. Livestreaming to Facebook, Periscope, Twitter, Snapchat stories, Instagram and other social media applications, requires an intuitive and easy posting/share functionality. Your phone offers that. A specific adventure camera does not.



A superior brand, with high-quality products, that understands where consumer preference will be in the years to come. That is why we think HITCASE are innovators, and potential winners in this highly-competitive space.

Risks

CompetitionWhile HITCASE enjoys what we would like to assess as a first-mover advantage into the phone case adventure camera market, which is currently positioned as one of the few companies trying to build a brand, the market is becoming increasingly crowded. If HITCASE is unable to sustain competitive differentiation for its products or brand, it could severely impact the Company’s prospects. Increased levels of competition may create a disruptive price environment amongst firms, which will negatively affect the Company’s profitability margins.

Delays in Product Development May Severely Hurt Sales As the Company nears the start of another new product launch from Apple, the Company’s ability to design, manufacture, and distribute new case options for the new iPhone 7 will be a huge factor in the Company’s success. At this moment, casings for the iPhone is the single driver of revenue for the Company, which naturally creates undiversifiable product risk.

Conclusion

HIT Technologies is not your average phone case company. Their products, apart from pro-tecting your device in various ways (dropping, dust, water), is able to turn your iPhone into an adventure camera. Much like a GoPro, you can now use the company’s interchangeable suite of lenses to create unique photographic effects. The benefit? Not needing to carry your phone and a separate adventure camera when doing awesome things. Oh, and it costs a lot less than your typical adventure cameras.

As a business, the company has already exceeded its fiscal 2015 annual sales in the first nine months of this fiscal year, and expects to dramatically step up that number the following year as it expands its reach into a number of retailers/carriers. With the recent launch of the iPhone 7, expect HIT to release a compatible case in late October, which should fuel the business quite a bit.



Appendix A: Recent News

HIT Technologies Reports 80 Million Audience and 6.4 Million Impressions from Discovery Channel Live Stream HITCASE has successfully broadcasted a live stream shark dive off the coast of Florida for Discovery Channel’s Shark Week. The team orchestrated an underwater live stream broadcast with shark ecologist and filmmaker Rob Stewart, Director of the film Sharkwater. The HITCASE PRO was used for the live stream.

HIT Technologies Reports Third Quarter Fiscal 2016 ResultsHIT Technologies reported its third quarter (Q3 F2016) and year-to-date (YTD F2016) fiscal 2016 financial and operating results for the periods ended March 31, 2016, prepared in accordance with International Financial Reporting Standards (IFRS).

HIT Technologies Inc. Closes Second Tranche of Private PlacementHIT Technologies announced that it closed the second tranche of its previously announced non-brokered private placement (the “Offering”) of units (the “Units”), raising aggregate gross proceeds to the Company of $300,000. Pursuant to the first and second tranches of the Offering, the Company issued 23,600,000 Units for aggregate gross proceeds to the Company of $1,180,000. At the closing of the second tranche of the Offering, the Company issued an aggregate of 6,000,000 Units at a subscription price of $0.05 per Unit.

HITCASE Partners with Contiki and Tourism ThailandHIT Technologies announced that it has partnered with one of the world’s largest tour/travel companies, Travel Corporation’s leading travel brand for 18 to 35 year olds, Contiki Travel (“Contiki”) for the #thailandtravelgoals contest. HIT and Contiki will promote #thailandtravelgoals via their respective social channels, engaging with their Millennial audiences on Twitter, Instagram and Facebook and e-mail.

May 26, 2016

May 30, 2016

August 26, 2016

April 14, 2016



Appendix B: Management & Board of Directors

Brooks Bergreen, CEOPreviously a founder of Iceberg Commerce, an ecommerce/web marketing company focused on leading edge brands and products in Action Camera and Natural Lighting business as well as a builder of custom Magento ecommerce software. Brooks has also founded 3World Media, a film production company, where he directed several award winning war documentaries. He has also previously designed, delivered and maintained satellite communications and defense projects totaling $40 million, as well as design custom video/voice/data communications solutions to major media organizations.

Michael Liggett, CFOMr. Liggett has over 14 years of experience being a public company CFO, with strategic and operational experience. Mr. Ligget is experienced in finance, M&A, strategic partnerships, restructurings and risk management. Broad sector experience including biotech and forestry.

Christie Craig, Global SalesMs. Craig was the first executive hire and founding member of the team. During her time, the company has grown their line of products from a “concept” stage to an internationally distributed, recognizable brand. Prior to HIT, Ms. Craig was the founder of Get Strategic, a boutique consultancy firm specializing in start-ups and emerging brands.

Rob Chase, Chairman of the BoardMr. Chase is a high-tech industry Executive and Director with over 20 years of strategic, finance, public markets and operational experience. Mr. Chase has developed a broad range of business, financial and operational acumen, with expertise in financial stewardship, investor relations, business development, M&A, market analysis and strategic, organizational and executive leadership.

Mr. Chase is also currently the Chairman of MediaValet (TSX.V:MVP), a digital asset management company. Formerly, Mr. Chase used to be a board member at PNI Digital Media (TSX:PN), and the Chief Operating Officer at Absolute Software (TSX:ABT).

Ian Wilkinson, DirectorMr. Wilkinson is the current president of Hothead Games, an award winning mobile game creator. Hothead Games wishes to make the best mobile FPS and Shooter games available on the Apple App Store and Google Play. The company was started in 2006, with Ian joining as president in 2009.



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