Workout Or Walkout, Inc. Your One-Stop Online Fitness Warehouse

#StayHealthyMyFriends #WorkOutOrWalkOut

www.workoutorwalkout.com

Workout or Walkout, Inc.

• Company Vision– Workout or Walkout, Inc. is an online fitness product warehouse where

customers can purchase mid to high-range fitness equipment, apparel and nutritional supplements.

– Our vision to expand is by not only selling sporting goods items, but also building attractive and functional fitness centers.

• PRODUCT DESCRIPTIONS:– ACCESSORIES – Fitness related items worn to complement active wear or to help perform fitness tasks.– APPAREL – Active wear and other clothing worn for everyday activities.– SUPPLEMENTS – Nutritional items used for pre/post workout, recovery, and meal replacements.– EQUIPMENT/GEAR – Items that people use to perform various exercises.

• CURRENT PRODUCT LIST:– ACCESSORIES - Waist Belt, Fitness Gloves, Athletic Socks, Neoprene Shorts, Headbands, Wristbands, Towels.– APPAREL – Tank tops, Leggings, Capri Leggings, Shorts, T-Shirts, Muscle T-Shirts, Sports Bras, Hoodies, – SUPPLEMENT – Pre-workout drink mix, Post-workout drink mix, Protein Bars, Nutritional snacks– EQUIPMENT/GEAR – Yoga Mat, Barbell Clip, Anti-Burst Body-Ball, Adjustable Jump Ropes, Resistance Tubes,

Adjustable Handgrips.

• Our current product list will be updated depending on market availability and customers demand.

• Proposed future products: New Design Luxury Home Treadmill, Home Gym System, Dumbbell, Weights, Cycling Equipment, Fitness Center and more.

Products

Sample Products

Sample Products

Sample Products

Why now?

• Healthy living is a life style people tend to seek at one point in their lifetime so there will always be a market for our products.

• The Health and Fitness Clubs industry is in the growth stage of an industry life cycle. During the 10 years to 2021, industry value added (IVA), a measure of an industry's contribution to the overall economy, is expected to grow at an annualized rate of 3.1%. Comparatively, GDP is anticipated to grow at an annualized rate of 2.2% over the same period.

• People are seeing the benefit of a healthy lifestyle, which includes good health and improved physiques and this continues to drive industry revenue and more demand for fitness related products.

Problem

• Obesity is an epidemic and it’s fueled by another epidemic, excessive use of electronic devices. The No. 1 reason people give for not exercising is Time. Yet people spend hours watching TV, Playing Video games, or being fully engaged with cell phone and social media.

• Exercise and healthy eating may not be enough so people take nutritional supplements to either balance their diet, enhance their performances and/or to recover from previous activities.

• Exercise is best performed in motivational athletic apparel and accessories that people can relate to and feel empowered by in order to complete the task. Unfortunately, most people are left to deal with what is currently available on the market.

• All of these items (Fitness gear, Apparel, Supplements) used to complete the fitness related task are mostly scattered online on different sites or at different sections of a brick and mortar store.

Problem Validation

• In June 2016, Philadelphia, PA became the first US city to impose taxes on soda and other sugary drinks just like taxes on cigarettes and alcohol.

• In an attempt to create obesity awareness, promote healthy living and reduce insurance costs, most companies now pay for gym memberships for their employees.

• The IBISworld’s report shows consumers continue to be interested in exercise to boost their fitness and health.

Solution

• PRODUCTS - We sell fashionable, yet motivational fitness gear, apparel and supplements to help people achieve their fitness goals. Staying fit and healthy requires a combination of exercise and healthy nutrition.

• ONE STOP SHOP - Customers are likely to purchase more than one item when shopping if there are related products available. So we provide access to all these needed items (equipment, apparel, nutritional supplements) in one place.

• TIME – We help people understand they can save time and get better results by reducing distraction time during exercise routines. One way of doing this is using our brand to create awareness of excessive cellphone distraction during workout routine.

Market Size• Over the past five years, the Sporting Goods Stores industry has fared well due to strong demand for sporting goods from health-conscious

individuals. With the sports participation rate anticipated to rise as reported by the Sports & Fitness Industry Association (SFIA), more consumers will require athletic apparel, gear, and supplements for their fitness regimens. Rising health consciousness and per capita disposable income will still spur demand for sporting goods.

• Over the five years through 2015-16, eCommerce industry revenue is expected to increase by an annualized 8.8%. Our target market are households with a median income of $45,000 including discretionary spending, utilized e-commerce as the primary platform for shopping, and spend $1,500 - $3,000 annually on online retail.

• Health and Fitness Clubs industry is a $30+ Billion industry and is expected to grow through 2021 due to people becoming more health conscious.

• OVERAL MARKET STATS: • The US B2C e-commerce market grew at a CAGR of 17.3% from $123 billion in the year 2010 to $286 billion in the year 2015

largely due to an increased preference of customers to shop online.• B2C e-commerce sales in the US are projected to grow at a CAGR of 11% from $317 billion in the year 2016 to $492 billion in

2021.

• The Gym, Health and Fitness Clubs industry is in the growth life cycle stage, because consumers continue to be interested in exercise to boost their fitness and health. During the 10 years to 2021, industry value added (IVA), a measure of an industry's contribution to the overall economy, is expected to grow at an annualized rate of 3.1%. Comparatively, GDP is anticipated to grow at an annualized rate of 2.2% over the same period.

Competition• Competitors – Rogue Fitness, Perform Better, Fitness Direct, are a few of our competitors.• Why we are a better choice?

– Our prices are comparable to our competitors but we offer FREE shipping on ALL orders which encourages customers to shop more and worry less about shipping cost. People can easily relate because they get it. When people can relate to something, it’s easier for them to become a part of it.

– We hire well-qualified and experienced employees who embrace our business strategy and long-term plans and to attain goals and objectives that include ownership opportunities.

– Extensive advertising and marketing. We will undertake extensive social media advertising and marketing campaign, as well as organizing obesity awareness programs. Hence, an aggressive and focused marketing campaigns with clear goals and strategies shall be one of our mainstays.

Business Model• Revenue: Workout or Walkout, Inc. generates revenue through the sale of fitness apparel, fitness equipment and nutritional

supplement. Sales of workout gear will account for about 32% of the Company’s revenues while nutritional supplements will generate an additional 20%, apparel sales will account for approximately 30% and accessories will generate 18%.

Fitness Equipment32%

Supplement20%

Athletic Apparel30%

Accessories18%

Business Model Cont’d• Pricing: The Company can expect to generate gross margins of 30% to 60%. Individual price points of items

in our online store will range from $2 to $2,800. Average price of our current listed items is $39.44.

• Sales and Distribution: – Order processing, shipping, handling, and returns for most of our products will be processed through a

fulfilment center. We plan to employ FULFILLMENT FLORIDA who have a combined 110,000 sq. ft. of warehouse space in Florida and Georgia. This will greatly reduce our overhead costs allowing us to focus on productivity. They fulfill orders within 24hours of purchase and perform quality inspection, which will reduce item returns.

– To reduce inventory storage, we have signed up with Print-full. The Print-full app is integrated into our BigCommerce hosting platform and when a customer buys certain apparel (T-shirts, Hoodies, Sweat Pants, Jackets, leggings and Tank-tops) from our store, Print-full automatically get the order details. The apparel is custom branded, including names, designs, logos, neck-tags, and shipping materials. The product is shipped to the customer and returns are also handled by Print-full. This also help cut down cost.

• Customers: Our primary target Customers are in the health and fitness category. We see customer service as an “opportunity” to serve, satisfy and profit. To us, service is not a burden. This mindset will create a solid team of sales and service agents, which generates more sales and satisfied customers.

Traction • PROSPECTIVE ENDORSERS – Knowing that we would also need some “star” power in addition to our great products to penetrate

the market faster than most startups, we reached out to a few affordable, yet prominent figures in the fitness industry. The individuals listed below have either shown a very strong interest or already agreed to represent/promote our brand after launch.

– O’Dell Beckham Jr. @iam_objxiii (NY Giant Star WR with over 4.6M active IG followers) – Anita Herbert @anita_herbert (IFBB Prof. League with over 330k active IG followers)– Jen Selter @jenselter (Social Media Star and Fitness model with over 9.3M active IG followers)– Aylen Alvarez @aylen25 (Published Fitness model with over 2.5M active IG followers)– Alejandra Gil @camilita1207 (Social Media star and Fitness model with over 1.2M active IG followers)

• These endorsements will not only boost sales but create and consequently establish credibility in the industry.

• We have Intellectual Property (IP) protection rights for our Trademarked logo and Registered Trademark name.

• Our newsletter signup was launched May 2016 and has gathered 2,000+ signups.

• Blackstone Marketing Group, a Ft. Lauderdale based web development company, will assist us with website design and SEO marketing. Our website is currently hosted on BigCommerce platform.

Future ProductsSample Future Products

Team• Abraham Inetianbor (Founder/CEO)

Abe has over 12 years in Customer service/Management positions. Abe is a Certified Health Club Manager and Personal Trainer. After working as a research coordinator at MDS pharmacy for 5years, he worked at various positions in gyms like Crunch, Train Station, and YouFit. Played college soccer while studying Sports Mgt./Mkt. at Ohio Valley Uni., Rochester College and Northern Kentucky Uni. Spent most college summer days either as a camp mentor or coaching kids soccer. People often gravitate to his leadership qualities as early as middle school and as a college freshman he was voted vice president of the SGA. Abe is a well-traveled people person internationally and have been to all 50 states in the US at least 3 times giving him the ability to easily adapt.

• Thomas L. Gruber (Consulting Chief Financial Officer)Tom has more than 30 years of accounting, financial and senior executive management experience based on his initial public accounting foundation with Ernst & Young. Tom has served as CEO, CFO and COO with companies both privately held and publicly traded. The industry sectors were franchise (franchisor and franchisee); distribution and logistics; professional services; and, high-technology (hardware and software). The company sizes ranged from start-ups to billion dollar corporations. Tom completed undergraduate and graduate studies at Ohio University where he received a BBA (Bachelors of Business Administration) degree and later earned a MBA (Master of Business Administration) degree from Pepperdine University. He also received a CPA certification in the State of Ohio.

• Mentors - We have access to mentors and advisors on clarity.fm to assist in various topics such as business development, strategic planning, and more.

Branding

• BRANDING - In order to succeed, we need to create values that people will FOLLOW, RELATE TO and SUPPORT. This is how brands and companies succeed. This is also how projects gain attention.

• “Under Armor” did not become successful because they made great shoes or apparel, they became successful because

their marketing campaigns were about “PEOPLE” and their creativity.

• “Nike” did not become successful by advertising shoes, they became successful by advertising “GREAT ATHLETES” and building values that were telling everyone “work hard and your dreams will come true because people are amazing”.

• Water does not cut through rock because it’s sharp; water cuts through rock because it is persistent.

What are We looking

for?

We are seeking an investment

of $750k in exchange for a

25% equity position.

Operations21%

Advertising and Market -ing

34%

Inventory45%

Startup Expenses

• Partnership – We are searching for B2B partnerships that will accelerate growth of our company. We currently have agreements with the following:– One basketball camp to provide full uniform and socks for summer of 2017.– Four basketball camps to provide our basketball theme design T-Shirts for summer of 2017. – Two soccer camps to provide Headbands and wristbands for summer of 2017.

• Exit Strategy – Our current exit strategy is to enhance the company’s “etail” presence and pursue an option of selling to a larger entity within the industry.

Partnerships and Exit Strategy