Dear investors

Welcome to LittleOne.Care

We hope you are all well. The ongoing war has affected each one of us and our family members. Like everyone in Israel, our routines changed on October 7, whether through by personal harm, calls to the reserves, or community volunteering.

We all wish for the successful achievement of the war's goals, primarily the return of all the abductees. Despite the difficulty in foreseeing outcomes at such an early stage, we aspire to emerge stronger from this terrible event. A strong Israel, in every possible sense, is our collective hope.

Our quarterly meeting

Every quarter, we will send you a detailed update on our achievements, successes, and failures. This update will be presented in a manner that ensures fluency and comprehensibility for every investor.

The quarterly Zoom update will be held on Monday, March 10th, at 20:00 Israel time via the following link:

https://zoom.us/j/97112169146

Password: 2025

Annual General Meeting

In this Zoom meeting, we will also hold the shareholders' annual general meeting, present a summary of the past year, the 2023 reports, and our plans for the coming year.

Agenda:

Reviewing the audited financial report of 2023.

Choosing the company auditor.

Good luck.

Finance

• On March 24 we raised an additional $220K in SAFE investment. 
• During Q3, the IIA transferred 200K NIS to the company, completing its grant.
• We are seeking the right investment opportunity that will enable us to penetrate and scale up sales in the US.

Mass production and product standards

• Regulations - Elora received the UL certificate (American Laboratory standard). This is the most famous regulation in the American market, which many retailers demand. That is beside the next regulations:

1. ASTM for baby products in the USA.
2. FCC for products containing electronics in the USA.
3. Additional standards that are common in retail sales in preparation for the future.
   

• Production of boxes and printing materials.
• The production of the first 1000 units:

1. The first 500 were used for regulation, manufacturing tests, needed examples for standardization, etc.
2. The other 500 are manufactured in small batches and sent directly to the US warehouse for door-to-door distribution. These are to be shared with Journalists, PR proposes, UGC, Baby baby experts, and Influencers.

Product feature and design

After receiving feedback from parents who participated in the beta test in the US, we have added new capabilities to the device.

1. Advanced cry detection based on the aggregated data.
2. Chat with Experts within the application: main development is complete and in the process of launching to the public

Pregnancy and Birth - First 1000 days

From a marketing perspective, it is important to provide parents with the Elora experience before the due date by offering them additional value during the final stage of pregnancy. The reasons are:

1. Encouraging parents to familiarize themselves with Elora before the baby's arrival can help them manage newborn care and associated stress more effectively.
2. Encouraging parents to utilize Elora as a nutrition and emotional speech-to-text diary during pregnancy to provide valuable insights into their well-being.
3. Ongoing and effective communication with experts, such as birth doulas, throughout the pregnancy.
4. We believe that creating value for parents during pregnancy will reduce competition with other baby monitors, as the impact of our solution starts earlier.

However, we haven’t developed dedicated algorithms for the pregnancy stage and we will not start its development until there is marketing feasibility proof for this approach.

Application updates

• The current version of the application includes all the main features we promise the parents.
• Full baby diary: Recently, we added the ability to track the baby's growth compared to known developmental charts.
• Access to experts: Chat with Experts via the LittleOne.Care application. Ability to add other caregivers to the application and manage their permissions.
• Ability to track Elora's device status - Done
• Real-time presentation of the speech-to-text functionality - Done

Marketing and Sales

Background:

We selected the Warschavski agency based on positive feedback regarding their standards, methodology, implementation, and proven results.

However, the digital marketing campaign we ran with the Warschavski agency was a failure. None of their predictions materialized. Although they specialized in digital advertising, we had to terminate our relationship with them and take control of the activities ourselves.

Building LittleOne.Care’s US-based marketing team

Our team includes 5 people (outsourcing)

• USA  Digital marketing, content, and Affiliation
• USA PR
• USA: Support and content creation
• USA Caitlyn - Leading nurse Doula and opinion leader
• India Amazon store expert

Creation of sales team: Baby Care Specialist as Affiliates

Background:

For the first time, we are allowing baby care specialists, with the parents' consent, to review the data on the baby's well-being in conjunction with the parents' observations.

We created an affiliation program for baby experts that provides them

1. Earn up to 20% from Elora sales..
2. Create a free account in the LittleOne.Care application
3. Produce tips that will be seen by the users and will expose the services to potential clients.

Our main challenge is with the recruitment of these experts. Since we do not have a dedicated advertising budget for recruitment - we use diverse organic activities

• We created a community page for the experts
• We developed content and materials for them
• We approach them using emails, IM, and word of mouth.

Amazon Store

We established an Amazon store and keep running a modest advertisement campaign.

The current conversion rate of the store is much better than the Ads on Google / Facebook to our official website.

•  The store is active and the initial results for an unknown product using a very modest advertising budget during the penetration stage are positive!
• The accomplishment of the next stages will enable us to increase the advertising budget and product exposure:
• Amazon Prime
• Product reviews

Public Relations

• We are working with a PR agent who is doing his best to introduce LittleOne.Care to different publishers. No effective result yet.

Podcasts recording

• Due to PR efforts, we were invited to present our solution in several podcasts with ~10K followers or more.

Our mission is to “normalize” the conversation about AI and wearable devices as a tool that collects and processes data about the baby’s well-being, quality of care, and engagement of caregivers with the baby.

General insight due to the podcast recording 

• Many podcasters are interested in our work
• They seemed to be suspicious during the initial interview
• All of them became fans of Elora after the interview recording and many of them asked for additional sessions with us in the future

Main insight: While normalizing the use of Elora is a long and expensive process, people are becoming more flexible and mature. The global AI trend has positioned us well in this race.

Micro-influencers

• We worked with a few USA-based micro-influencers who published posts about the use of our product.

Mega Influencer 

• We work with Caitlyn Shcollmeier, a leading person in the baby market as a business developer.
  Most of the activity and networking are driven by her efforts. However, this support should not be overused to prevent burnout and to maintain the creator's credibility and reliability.
  
  

Social Media

• Please access our active and colorful social media accounts.
  Start by following our Instagram and liking our posts
  
  .https://www.instagram.com/littleone.care

Follow us on other platforms as well

• https://www.facebook.com/little1care
• https://www.tiktok.com/@littleone.care
• https://www.linkedin.com/company/littleonecare/
• https://x.com/littleonecare

Operation:

• We are conducting regular shipments of the product to the USA for experimental use.
• Integration with a distribution infrastructure, which has proven capabilities and a full connection to our store, is in the scale-up stage.
• We are validating the product's entry into the USA against American customs regulations.
• Since the product is manufactured in China and shipped to the US, LittleOne.Care is paying a 25% import tax. We are currently researching other possibilities that will reduce this tax.

Company technological marketing and operation structure:

• Website - Shopify
  Internal Admin system to manage the experts and the users
• ShipBob (shipments)
  Jira - mission management and support issue documentation
• Gorias - Support system
• Klavio - Emailing
• Hotjar - UI - User experience
• Esp-id - microcontroller infrastructure 
• freeRTOS - microcontroller infrastructure 
• Tflite - AI infrastructure
• GCP - Google cloud platform
• Application Web Server
• Data Storage Servers (MySQL, Redis, firebase, and more)
• Central Authorization Server
• Push Notifications Service
• Device Real-Time Notifications Service
• Data & Reports API Services
• Secure Data Storage for baby photos and device data/logs
• CDN Proxy for App and Web assets (images/videos)
• Voice Annotations Web Services and Database

Product sales in the USA:

• Affiliate Marketing - Affiliate Marketing - We are working with an affiliate marketing agent who is responsible for the recruitment of baby experts using email marketing and social media. Limited results because of a very limited budget.
  
  
• Insurance benefits - We established relationships with Flex to enable parents to purchase the product using their insurance funds. No results yet.

Business development and B2B sales

• We started negotiations with a mid-size electronic company in the area of smart home applications and devices. - No results…
• We started a negotiation with a Health Insurance Entity in Israel 
• We started a negotiation with a family office that knows the B2C market in the US to execute corporations and channel development - no results
• We started a negotiation with a big American baby distributor. - No results

HR & Outsourcing

• Israel
  Two founders
• Two Israeli employees

USA

• Affiliate & social media manager
• One PR person
• Caitlyn - midwife and opinion leader
• One student

Contact and Questions

We are deeply grateful for your participation and investment in this project.

Our primary objective is to exceed your expectations.

For any inquiries, please review all information before contacting us.

Feel free to contact us by phone, preferably by message beforehand.

shauli@littleone.care

ami@littleone.care