Jevo Shareholder update q217

As always, hope this update finds everyone doing well. Lot's going on here at Jevo HQ, so let's get right to it.

As of this update, we continue to make tremendous progress on the commercialization of Jevo for the food + beverage industry. Although we are a few months behind schedule with respect to our commercial launch, we are now in full scale production for anticiapted market release by June. We currently have six revenue producing pilot production units across the country. I am very pleased with the pod utilization as well as the minimal service issues we've experienced from these accounts. Here are a few of the locations with current results. As you look at these results, keep in mind our forecast calls for about 1,200 pod sales (24,000 shots per year) per client per year:

Breeze Daiquiri Bar - Las Vegas strip

Jevo sales start date: 4-4-17 * Pods purchased to date: 650 * Shots made to date: 5,460 * Revenue to date: $5,525 * (photo of the ladies taken by bartender) Breeze has three locations on the strip which will all eventually have a Jevo machine. Good news, there are many other types of bars like this all over Vegas! I am highly confident they will be getting Jevo as well.

Señor Frog's - Treasure Island Hotel Vegas

Jevo sales start date: 4-17-17 * Pods purchased to date: 240 * Shots made to date: 400 * Revenue to date: $2,040. This is the first of what should be many more locations with Señor Frogs.

AMF Bowling Center - Portland Oregon

Jevo sales start date: 2-18-17 * Pods purchased to date: 93 * Shots made to date: 1,860 * Revenue to date: $510.00 * Pilot test was approximately 49 days. AMF is part of a 300 chain bowling center group, this pilot proved very successful considering the location is run down and they do not deliver food/drinks to the lanes, unlike most other locations. As next steps, they have placed an order for three for their larger locations in Southern CA, with a tentative install date for mid-June. We anticipate Jevo going into a majority of their 300 locations.

Production: Pods + Machines

Starting with the flavor pods, click here to see a video of our production line at Jel Sert Jel Sert has and continues to be a great partner for Jevo. To date, we have approximatlely 30k production pods in inventory with the next order being placed in the next month. We have launched with the following flavors:

Jevo machines

Commercial production has started with the current goal of having our first built in early May. The main challenge over the last few months has been getting production parts in house from our suppliers. Based on what we know today, it is our expectation that we will have everything neccessary to fully assemble machines by the first week of May. As a result, we have started building subassemblies. The main difference between our pilot and commercial units is how the parts are made for mass production. Example: most of the new parts are injected molded from tools we invested in to make the parts, resulting in a meaningful decline in COGS from $700-$1,200 per part to as little as $6-$23 per part. Additionally, we have been able to take subassemblies with multiple parts and turn them into a single injected molded part. The end result: Jevo has fewer (less expensive) parts, it's lighter, more efficient and easier to assemble. The current system has approximately 90 subassemblies, but we expect that to decline to as little as 15 by year end.

Good representation of parts and sub assemblies. You can see chiller blocks, heat exchangers, pumps, water valve assembly, mix tank motors/assembly, linear dispense drive, circuit board and front face for Jevo.

Team Jevo + Facilities

Since our last update, the team nearly doubled from 10 to 19 with approximately 10 more hires in the works over the next 2-3 months. In the last two months, the executive team increased with three new additions: Cindy March - Director of Finance + Operations, Jim Patricelli - CFO and Thomas Evans - Director of Software Development. Cindy is responsible for the business operations within our four walls, Jim's focus is on our fundraising + strategic opportunities and Thomas oversees the software development and integration. All three bring meaningful experience and add important depth to the team as we move into the commercialization and growth phase of the Company's life cycle.

Cindy - Jim - Thomas


To support our projected growth, including the decision to keep the assembly, testing and order fulfillment of Jevo in house, we need the appropriate space specific to our needs. In that regard, we successfully negotiated and executed a lease for our new Jevo facility/HQ. If the build out stays on course, we will be moving on July 1st. The new space is approximately 24k sq. feet, including 14k manufacturing + warehouse space and 10k of office space. Good news, we are getting 50% off the rent in year one and all tenant improvements are being paid by the landlord. Rent is approximately $22.50 per sq. foot all in which is at or below local market rates.

Located just 1 block from our current HQ.

Sales + Marketing

Sales continue in the right direction with both regional + national account additions to the pipeline. This last quarter we attended two key industry trade shows and launched our new website. If you have not had a chance to visit the site, please do at Our partnership with Beam Suntory is stronger than ever as they are seeing first hand the benefits Jevo brings to the partnership with pilot units now in the field.

Nightclub show, Vibe conference with Beam and Jevo team in action. And, our first order with a Jevo machine, pods and starter kit on one pallet.

Hope this update was helpful. As always, if you have any questions please don't hesitate to call or email me. On behalf of the entire Jevo team, thank you for your continued support.

Jeff Jetton - CEO+President

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