Investing in SMRT Mouth

Investing in SMRT Mouth

Investment Verdict: Yes, I would invest in this company.
Executive summary:
SMRT Mouth is a mouth guard with biometric sensors to monitor athletes hydration state. This
document assesses business model and product strategy to check if investing in the company is
smart. Commercial viability, technical viability, management team and the financial viabilities
are taken into consideration to come up with the investment decision.
Commercial viability:
SMRT Mouth tries to solve a problem that exists in modern sports where overachieving is not
only the norm, it is expected. The statistics on injuries to athletes due to dehydration and
exhaustion are alarming. The numbers do not justify the preventable deaths in youth athletes.
SMRT Mouths value proposition tries to solve this problem, rightfully.
SMRT Mouth primarily targets the sport of football. This most important customer segment
consists of professionals as well as the kids. In hiring Mark Robinson, a pro-football athlete,
SMRT Mouth asserts it is going after the right segment. The number of people who watch NFL is
more than the number of people who vote in president elections in USA. (The Nielsen Company)
SMRT Mouth was born out of real life personal experience by Dana Hawes, a school principle.
This shows he is passionate about the company. The company has the right management team
with skills and passion to support the company. The company also has the backing of the
veracious advisors. This will give the comfort level to the investors.
SMRT Mouth could be marketed to diverse sports. It could be marketed to department of
defense to monitor soldiers wellbeing. The company could expand towards these customer
segments.
Technical viability:
SMRT Mouth is a smart mouth guard that has sensors in the mouth guard. The device has
sensors to measure athletes hydration, respiration, circulation and exertion levels. The data
collected through these sensors are relayed using Bluetooth Smart or BLE (Bluetooth Low
Energy) technology. This transmitted data is collected, processed and displayed using an app.
SMRT Mouth is a mouth guard first. It then adds biometric monitoring to make the mouth
guard smart. It is a wearable device, so it has to be comfortable to wear. Comparison of the
SMRT mouth guard against the standard mouth guard shows that both have similar physical
attributes. So SMRT mouth guard would offer the same protection a standard mouth guard
would offer. This would mean it would not hinder athletes performance.

Investing in SMRT Mouth

Key to SMRT Mouth guard would be the technology used for measurements. It monitors saliva
hydration using plasma osmolality of saliva. Using saliva as a hydration marker allows for rapid
measurements to be taken, but it is highly variable and immature marker. (Cheuvront, Sawka
2005) However for monitoring athletes hydration, it is practical and sufficient.
Instrumentation technology used in the sensors in the SMRT Mouth module exists currently
and is proven to be effective. SMRT Mouth would simply incorporate these sensors in their
module. So reliability of the sensors would not be a concern. However SMRT module would
contain additional electronics for Bluetooth, antenna and battery. There will be concerns
regarding the safety of batteries coming in contact with saliva, range of device and the
calibration of sensors.
The app screen currently shown on the companys website is catchy but tacky. The screenshot
that shows the teams biometric information does not utilize the screen real estate efficiently.
The app that accompanies the hardware should be flawless. Prototypes, testing (alpha and beta)
and plan for continuous upgrades would alleviate these concerns.
SMRT Mouth is careful in avoiding marketing this device as a medical device. They do not claim
to diagnose illness or treat injury. So this device would not need FDA certification. Also SMRT
Mouth does not hold patents for biometric measurements in mouth. There is a patent awarded
for measuring hydration level using saliva. (Patent US20100174156). The companys legal and
engineering advisor Ken Murray should make sure it does not infringe on this patent.
Financial Viability:
The Revenue streams from the SMRT Mouth device will come from the sale of the devices.
Devices are currently sold from their website. The product is slated to be beta tested in May
2016 and the product shipment to commence in June 2016. Product is slated to debut at 2016
Consumer Electronic Show. The timelines seem aggressive, but adoption of continuous
upgrades cycle would help launch the device on time.
I see a lacking in the product line offered by the company. I think the product line is
monotonous. SMRT Mouth should offer separate the products for amateurs and professional
athletes. Product offered to professional teams would be rich in feature and would carry the
premium pricing and a bigger profit margin. Product offered to the school athletes should be
economical. A $159 a device is out of reach for the most school athletes.
Conclusion:
SMRT Mouth device could change the way sport is played. Though the technology behind the
instrumentation and the sensors are proven, there will be concerns on integration of these into
the mouth guard module. The company has passion and the right mixture of management team
and the advisors. Though the marketing strategy needs to be honed, the device has generated
fair amount of interest in the customer segments. And most of all, the device could save lives.
For these reasons, I would invest in the company.

Investing in SMRT Mouth

References
Cheuvront, Samuel N., Sawka, Michael N. (2005). Hydration assessment of athletes.
Sports Science Exchange 97 VOLUME 18 (2005) NUMBER 2
Patent US20100174156 - Method of Detecting and Measuring Hydration Imbalance.
(n.d.). Retrieved November 6, 2015.