ENTREPRENEUR: Henry Penix
ASKING FOR: $2 million for a 10% stake
BEST PART OF THE PITCH: Henry's company revolutionizes what people do with their cell phone. He has a product that attaches to your keychain. It warns you when you've walked away from your phone. It also helps you find your keys and has a dialer you can use if you're in trouble. Daymond says it's the modern day version of "I've fallen and I can't get up." Henry has patents all over the world. He did $5 million in sales in 2011. They are on track for about $7.2 million in 2012 and they'll net about $2 million. He's put in $4 million of his own money so far. He's raised another $5 million from an investor. He has another product that also monitors health issues.
DO THE SHARKS BITE? The sharks want to know why Henry needs cash so badly when the product is doing so well. Henry says they have close to $2 million in inventory. They built too much for the last Christmas season and they didn't sell through everything. Daymond wants to know how much was spent on research and development. It was over $1 million. Mark thinks Henry went too big with his company, so he's out. Robert thinks the company is about to die, so he's out. Daymond follows his lead. Lori loves the product, but knows there's something wrong. She's out. Kevin is intrigued by the number of sales, but he can't invest either.
WANT TO KNOW MORE: Visit http://www.zomm.com/