Interactive technology company T1V Inc. plans an initial public offering of $15.1 million that could come as early as this fall.
For calculation purposes, the company estimates it will get net proceeds of $13.2 million based on selling 3.02 million shares at $5 per share. But its latest amended IPO filing, made last week, says the per-share price is likely to be $4 to $6 per share. The number of shares sold will vary so that, whatever the offering prices at, the value of the IPO will be $15.1 million.
It plans to use the proceeds to pay about $2 million in existing debt and $408,000 in Covid-related tax liability.
“Based on our current plans, we believe that our existing cash, together with the net proceeds from this offering … will be sufficient to fund our operating expenses and capital expenditure requirements until at least … 12 months after the completion of this offering,” T1V says in its latest filing with the U.S. Securities and Exchange Commission. We currently intend to (also) use the net proceeds … for sales and marketing of ThinkHub Cloud product offerings; for research and development … and any remaining amount for working capital and general working capital purposes.”
The company estimates it will pay $2 million on marketing and $2 million on R&D.
It plans to trade on the NASDAQ Capital Market under the ticker symbol THNK.
Seeks to challenge Webex, Zoom and others in 'visual collaboration market'
The filings do not disclose when the IPO is likely to go to market. The company began the process in late January, and a typical time frame for going to market would be about nine months. That would make the sale likely to be effective in late September.
T1V, founded by CEO Mike Feldman in 2007 as T1Visions, sells visual communications services for interactive business meetings, education and health care with its patented touchscreen software, marketed as ThinkHub. It has has added cloud applications for its service, called ThinkHub Cloud.
“We believe that the largest growth in the visual collaboration market over the next few years will be for products that support such hybrid work environments,” the company says in its SEC filings. “We have positioned the company to take advantage of this growth.”
It sees its principal competitors as including Cisco Webex, Zoom, LogMeIn, GoToMeeting in the broad remote business meeting space. It has smaller, more specialized competition the of "visual collaboration. And its differentiates itself by focusing on hybrid presentations that are effective for remote participants and participants "in the room" at the same time.
Longtime player in Charlotte startup scene
T1V has been an important part of the tech startup scene in Charlotte for years, if less flashy than marquee names like Red Ventures, AvidXchange, Tresata and JupiterOne.
In 2016, Feldman was among the tech entrepreneurs who signed on to the “Startups against HB2” petition. HB2 was seen as a reactionary bill by the N.C. legislature that restricted bathroom use to a person’s birth gender. It was passed in reaction to a Charlotte ordinance that allowed gay and transgender citizens to use the bathroom of their choice.
When the state backed down in 2017 with a compromise bill, Feldman welcomed the move, saying his company’s culture supported acceptance. “We don’t support legislature that’s contrary to that,” he told the Charlotte Business Journal. “Charlotte was doing the right thing at the beginning, and HB2 was designed to block our progress."
T1Visions was a fixture on the CBJ’s Fast 50 list of the fastest-growing local companies. It last made that list, as T1V, in 2020. In 2014, the company made the Inc. magazine list of the 500 fastest-growing companies in the United States, clawing its way on at No. 456.
Striving for consistent profitability
Revenue growth has still been strong at the company. Total revenue increased in 2022 to $15.4 million, a 68% hike over its 9.2 million in 2021.
But the company has yet to prove consistently profitable, as is the case for many startups and for emerging growth companies, which is T1V’s current designation in its IPO filings.
“The company incurred a net loss of $4,424,982 and $3,706,833 during the years ended December 31, 2022, and 2021, respectively,” its filings say. “As of December 31, 2022, and 2021, the Company had a working capital deficit of $18,610,471 and $12,986,425, respectively.”
More capital raising planned
T1V has needed to raise capital periodically and “plans to raise additional funding in the future through additional convertible debt” even after it raises capital in the IPO.
Last week, the company implemented a 25-to-1 forward stock split of all its current Class A and Class B stock in preparation for the IPO. There is currently no Class B stock, although there will be new Class B stock after the IPO.
After the IPO, the company will have 10.7 million shares of stock outstanding. Just over 3 million will be held by new investors, the company says. Existing stockholders, which include top executives and early investors will own 71.9% of the company stock after the IPO. CEO Feldman will personally own 31.85% of all outstanding shares.
The original version of this story misstated the maximum and minimum values of the initial public offering. The value is fixed at $15.1 million and the number of shares sold will vary according to pricing.
