SOURCE: Blow & Drive Interlock Corp

Blow & Drive Interlock Corp

April 18, 2016 00:51 ET

Blow & Drive Interlock Corp Is Pleased to Announce Sales Have Already Topped $100,000 Including $10,000 per Month in a Reoccurring Revenue Stream

BEVERLY HILLS, CA--(Marketwired - Apr 18, 2016) - Blow & Drive Interlock Corp (OTCQB: BDIC), a criminal offender monitoring tracking device company, banks almost $100,000 in credit card sales and reaches almost $10,000/month in recurring billing in last 6 months of operations.

Dear Valued Shareholders:

Now that the filing of our year end 2015 annual report is complete, reflecting that the company generated its first revenues and recurring billing, I feel it is important to offer clarification on some of our sales numbers and disclosures in our annual filing as well as provide insight into our strategy for the remainder of 2016.

As we have previously communicated, 2015 was mostly dedicated to attaining our federal and state certifications of the Company's BDI-747/1. We spent over 6 months in the NHSTA approved laboratory and spent in excess of $100,000. In June 2015, we passed all the required testing and received our federal certification. In addition, we had legal fees in excess of $50,000 to position the company to legally sell franchises and distributorships. We believe that this ends 2 years of research and development expenses well in excess of $200,000 in 2015 that were a drain on our resources and a large portion of our expenses, furthermore it was not until late September that we were approved by the State of California to begin operations that would allow us to generate our first revenues.

In fact, up until December 31, 2015 most of our sales were confined to just 2 states CA and OR. Since that time the company has attained approvals in 8 states and we are in full operations in 5 states (CA, OR, KY, TN and AZ). In addition, we have sold 2 distributorships in Texas and have a physical presence in Lubbock and Houston.

Now BDIC is well-positioned to significantly reduce our expenses, well positioned to increase territories by attaining additional state approvals across the country and to capitalize on the expanding state sanctioned opportunities for our product within the criminal offender market, which would represent significant sales growth.

With that being said, between late September 2015 and March, 2016 the Company generated and banked just under $100,000 in credit card sales as a result of paying retail customers.

Some of our customers choose to pay for the entire time that they are sanctioned for monitoring up front and others choose to pay one month at a time with automated monthly billing and these customers account for over $200,000 in monies owed to the company over the next 18 months.

The recurring revenue which is the heart and soul of our business model is now in excess of $10,000 per month, in just a short 6 months of sales. Our auditors do not allow us to recognize the pre-paying customers as revenue earned or as accounts receivable as per the GAAP accounting principles and requirements, therefore we were only credited for $20,000 in monitoring fees in the year end annual report and the balance of the of full pay monies received was set off in the liabilities column as deferred revenue and the value of our incoming lease payments of over $200,000 were not recognized at all.

In 2015, mostly all of our sales were generated only between late September and December 31 and only in California and Oregon. In 2016 we began our expansion into Kentucky, Tennessee and Arizona.

Mostly our expansion has been constrained by our inability to quickly secure the capital required to manufacture the units to keep up with sales. This obviously is a great problem to have. To date we have fully paid for almost 300 units and have prepaid 20% for the continued production of an additional 800 units. This order once completed will allow the Company the luxury or a recurring monthly revenue stream in excess of $100,000 per month.

As 2016 progresses we expect to be able to improve our internal processing systems and employ additional staff and corporate governance as our recurring billing grows and resources become available. We also believe that we will continue to receive additional judicial approvals and gain wider acceptance in this State controlled market.

We will continue to manage our debt efficiently and we are in serious discussions with numerous parties to provide the Company up to $5,000,000 in funding, however most but not all of these offers for financing are in the form of "toxic" debentures or convertible notes that I believe are detrimental to the long term value of the company and its shareholders. I am steadfastly committed to avoiding any and all toxic debt financing. I believe that we will be able to secure friendlier forms of funding to fuel our growth with a steady and structured process with its priorities focused on more sales, more territories, and the courage to be wary of strangers bearing gifts.

We have continued to move forward with the commercialization of our products with the launch of our commercial vehicle program, which we expect to receive initial results from over the next 3-6 months. In addition, we are actively seeking to expand our retail footprint for our criminal offender focused products with expansion into home alcohol monitoring for parolees and family court programs in addition to the launch of our commercial vehicles program into national trucking chains, local service companies, companies with outside traveling sales forces and ride sharing/taxi services.

I believe the Company will grow rapidly and we expect to announce many new hires, business opportunities and partnerships in the coming year.

Remember Every Shareholder of BDIC Contributes to Saving Lives and Keeping the Roads safe for Sober Motorists. I look forward to communicating our future achievements and progress and I thank you for your continued support.

Sincerely,
Laurence Wainer
CEO

FORWARD-LOOKING DISCLAIMER
This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.

Contact Information

  • Contact:
    Blow and Drive Interlock Corporation
    1080 S. La Cienega Blvd
    Suite 304
    Los Angeles, California 90035
    (877) 238-4492
    www.blowanddrive.com