Sagacity Golf Technologies, Inc.
Scottsdale, AZ (HQ: Lake Oswego, OR) · Delaware C-Corp · Founded Jan 1, 2019 · CEO: Brett Darrow
Facility Size
$2.0M
Advancing Term Note · 60-mo
TTM Revenue (9M Ann.)
$4.26M
Net (after rev share) · +19% vs FY24
Interest Rate
15.00%
+ 0.75% revenue share royalty
Cash (Aug 25)
$377K
Min covenant $250K — ✅ Pass
Borrowing Base Avail.
$1.67M
40% × $4.18M ann. TTM · $0 drawn
Gross Revenue (FY24)
$9.59M
$8.99M FY23 · $7.57M FY22
+6.7% YoY
Net Rev. After Rev-Share
$4.78M
FY24 ($4.82M rev-share out)
+19% vs FY23
EBITDA Proxy (FY24)
$1.63M
Net Ord. Income $1.09M + Amort. $547K
34% Margin
Total Debt Load
$9.1M
Sep 30, 2025 · Incl. accrued payroll/rev-share
Negative Equity
Facility Terms — Advancing Term Note (Aug 25, 2025)
Lender
Founder Funding, LLC
Borrower
Sagacity Golf Technologies, Inc.
Principal / Commitment
$2,000,000
Facility Type
Advancing Term Note (RBCF)
Closing Date
August 25, 2025
Maturity
60 months from Closing (~Aug 2030)
Draw Period
First 12 months
Draw Cap
40% of Annualized Trailing 3-Mo Revenue
Interest Rate
15.00% (360-day basis)
Revenue Share
0.75% of monthly gross revenue
Payment Structure
12 mo Interest + Rev-Share only; then 48 mo P&I
ACH Date
12th of each calendar month
Closing Fee
1.5% of Commitment = $30,000
Prepayment Penalty
2% within first 36 months
Security
Senior First Priority — All Assets
Warrants
10% of Cap ($200K) ÷ $20M val = 10,000 shares @ $1.25/sh · 5-yr term
ACH Authorization
Brett Darrow, CEO authorized recurring ACH to Bank of America (Acct: 485011092868 · Routing: 026009593 · Billing: 525 3rd St Suite 208, Lake Oswego OR 97034 · Phone: 602-743-0085 · Email: bdarrow@sagacitygolf.com). Payment on the 12th of each month.
Covenant Monitoring — As of Aug 25, 2025
Minimum Cash Balance
PASS
Required (Section 8.1)≥ $250,000
Actual Cash (Aug 25, 2025)$377,745
Cushion$127,745 (51% above floor)
Tested monthly · Source: Pro Forma CC signed 8/25/25
Min. Debt Service Coverage (DSCR)
NOT YET TESTED
Required≥ 1.25×
Test FrequencyAnnually
First Test Date~Aug 2026 (12-mo anniversary)
FY24 NOI $1.09M ÷ Est. annual D/S $300K ≈ 3.6× (indicative, pre-facility)
Monthly Financial Reporting
CURRENT
Monthly FS (within 15 days)✅ FS provided through Sep 2025
Compliance Certificate (15 days)✅ Aug 25 CC signed
Bank Statements (5 days)✅ Provided
Annual FS due within 60 days of year-end · Annual budget & sales projections also required
Borrowing Base Compliance
PASS
Trailing 3-Mo Revenue (Jun–Aug)$1,043,865
Annualized × 4$4,175,460
40% Cap (Borrowing Base)$1,670,184
Outstanding Balance$0 drawn
Certificate as of Sep 30, 2025 · Available credit: $1,670,184
Negative Covenants to Monitor
Company may not incur additional debt, encumber assets, make distributions, or change control without lender consent. Watch: existing MCA notes being refinanced (Advance Servicing payoff $265K → reduced to $227K if paid in full). Payroll liabilities deferred balance ~$2.08M is largest accrued liability — not contractual debt but significant.
Borrowing Base Certificate — Sep 30, 2025
| Revenue — June 2025 | $375,468 |
| Revenue — July 2025 | $376,123 |
| Revenue — August 2025 | $292,274 |
| Trailing 3-Month Total | $1,043,865 |
| Average Monthly TTM Revenue (÷ 3) | $347,955 |
| Annualized TTM Revenue (× 12) | $4,175,460 |
| Borrowing Base (40% of Annualized) | $1,670,184 |
| Facility Commitment Cap | $2,000,000 |
| Lesser of Commitment / Borrowing Base | $1,670,184 |
| Current Outstanding Balance | $0.00 |
| Available Credit | $1,670,184 |
Source: Borrowing Base & No Default Certificate signed by Brett Darrow, CEO — September 30, 2025. Note: Aug revenue ($292K) is seasonally lower (end-of-season). Sep ($388K) was strong — Oct annualized would push borrowing base to ~$1.86M.
Annual P&L — Income Tax Basis (FY22–FY24A + FY25 YTD)
| Line Item | FY 2022 | FY 2023 | FY 2024 | 9M 2025 | FY25E (Proj) |
|---|---|---|---|---|---|
| Revenue | |||||
| Gross Revenue (Transaction + SaaS) | $7,573,577 | $8,995,903 | $9,594,405 | $6,747,745 | $10,237,446 |
| Less: Revenue Share (Partner Payouts) | $(4,464,769) | $(4,979,648) | $(4,816,351) | $(3,552,318) | $(5,016,349) |
| Net Revenue | $3,108,808 | $4,016,255 | $4,778,054 | $3,195,427 | $5,221,098 |
| Total COGS (Hosting, Merchant Fees, Interface) | $(355,754) | $(437,810) | $(481,014) | $(297,700) | $(501,635) |
| Gross Profit | $2,753,054 | $3,578,445 | $4,297,040 | $2,897,727 | $4,719,463 |
| Gross Margin % | 88.6% | 89.1% | 89.9% | 90.7% | 90.4% |
| Operating Expenses | |||||
| Payroll + Benefits | $(2,080,900) | $(2,403,105) | $(2,362,353) | $(1,770,059) | $(3,167,789) |
| Selling & Marketing | $(591,970) | $(547,155) | $(295,379) | $(197,860) | $(202,248) |
| Professional Fees | $(30,021) | $(94,474) | $(138,274) | $(39,456) | $(145,188) |
| Computer & Internet | $(94,721) | $(101,249) | $(134,268) | $(112,321) | $(140,981) |
| Contract Labor | $(118,785) | $(75,827) | $(85,247) | $(92,209) | $(89,509) |
| All Other OpEx | $(252,712) | $(183,215) | $(195,175) | $(168,945) | $(231,934) |
| Total Operating Expense | $(3,169,109) | $(3,405,025) | $(3,210,696) | $(2,380,850) | $(3,977,649) |
| Net Operating Income (EBIT Proxy) | $(416,055) | $173,420 | $1,086,344 | $516,877 | $741,814 |
| Below the Line | |||||
| Interest Expense | $(841,661) | $(1,130,332) | $(739,072) | $(762,404) | $(1,000,000) |
| Amortization | $(221,927) | $(315,740) | $(546,911) | $(561,159) | $(748,212) |
| Other Income / (Expense) | — | — | — | $99,310 | — |
| Net Income | $(1,479,643) | $(1,272,652) | $(199,639) | $(753,165) | $(1,006,398) |
| Credit Metrics (Derived) | |||||
| EBITDA (NOI + Amort) | $(194,128) | $489,160 | $1,633,255 | $1,077,036 | $1,490,026 |
| EBITDA Margin (on Net Rev) | –6.2% | 12.2% | 34.2% | 33.7% | 28.5% |
| Gross Margin (Net Rev) | 88.6% | 89.1% | 89.9% | 90.7% | 90.4% |
Source: Michael Kasten (investor, not CPA) prepared statements — income tax basis, no audit/review. FY22-24 from annual P&L PDF; 9M 2025 from Jan–Sep FS provided Sep 15, 2025. FY25E from internal projections workbook. Revenue Share is large partner payout (course operators/aggregators) and is netted from gross revenue per company reporting.
Monthly P&L — January through September 2025
| Line Item | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | 9M Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Revenue | $637,859 | $599,343 | $792,298 | $794,323 | $805,636 | $806,468 | $852,655 | $741,060 | $718,103 | $6,747,745 |
| Less: Revenue Share | (317,000) | (313,000) | (418,000) | (372,000) | (446,000) | (431,000) | (476,532) | (448,786) | (330,000) | (3,552,318) |
| Net Revenue | $320,859 | $286,343 | $374,298 | $422,323 | $359,636 | $375,468 | $376,123 | $292,274 | $388,103 | $3,195,427 |
| COGS | (33,960) | (32,722) | (30,172) | (29,697) | (38,532) | (28,548) | (39,231) | (30,958) | (33,880) | (297,700) |
| Gross Profit | $286,899 | $253,621 | $344,126 | $392,626 | $321,104 | $346,920 | $336,892 | $261,316 | $354,223 | $2,897,727 |
| Total OpEx (ex-below-line) | (274,622) | (246,545) | (265,234) | (296,420) | (258,412) | (268,908) | (252,469) | (255,531) | (262,709) | (2,380,850) |
| Net Operating Income | $12,277 | $7,076 | $78,892 | $96,206 | $62,692 | $78,012 | $84,423 | $5,785 | $91,514 | $516,877 |
| Interest Expense | (84,280) | (66,127) | (65,108) | (111,289) | (103,716) | (77,451) | (82,271) | (137,771) | (34,391) | (762,404) |
| Amortization | (62,351) | (62,351) | (62,351) | (62,351) | (62,351) | (62,351) | (62,351) | (62,351) | (62,351) | (561,159) |
| Other Income / (Exp) | — | — | — | — | — | — | — | $152,255 | (52,945) | $99,310 |
| Net Income | $(134,354) | $(123,052) | $(48,567) | $(115,637) | $(103,375) | $(67,726) | $(60,199) | $(42,082) | $(58,173) | $(753,165) |
| Cash Balance | $43,117 | $45,509 | $25,387 | $173,064 | $49,288 | $(2,546) | $573 | $1,375,474 | $463,897 | — |
Note: Aug cash spike to $1.375M reflects proceeds from Founder Funding facility closing ($2M draw partially offset by payoff of Advance Servicing MCA ~$228K). Sep cash $464K reflects normalized operations. Jun cash briefly negative ($-2,546) — June 30 EOD — flagged but cured within the month via transaction fee collections.
Balance Sheet — Dec 31 Annual + Monthly 2025 (Selected)
| Item | Dec 31, 22 | Dec 31, 23 | Dec 31, 24 | Mar 31, 25 | Jun 30, 25 | Aug 31, 25 | Sep 30, 25 |
|---|---|---|---|---|---|---|---|
| Assets | |||||||
| Cash & Bank | $857,290 | $530,753 | $62,702 | $25,387 | $(2,546) | $1,375,474 | $463,897 |
| Accounts Receivable | $195,055 | $291,606 | $293,010 | $371,093 | $378,984 | $347,874 | $356,893 |
| Prepaid / Other Current | $1,451 | $1,500 | — | $30,489 | $30,180 | $17,320 | $8,182 |
| Total Current Assets | $1,053,796 | $823,859 | $355,712 | $426,969 | $406,618 | $1,740,668 | $828,972 |
| Shareholder Advances (3 founders) | $293,492 | $564,703 | $1,140,306 | $1,272,185 | $1,456,351 | $1,573,880 | $1,621,747 |
| Net Intangible Assets | $1,440,229 | $1,608,079 | $1,540,168 | $1,497,115 | $1,462,062 | $1,462,360 | $1,450,009 |
| Deposits | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| TOTAL ASSETS | $2,790,517 | $2,999,641 | $3,039,187 | $3,199,269 | $3,328,031 | $4,779,908 | $3,903,728 |
| Liabilities | |||||||
| Accounts Payable | — | $207,759 | $779,895 | $1,153,188 | $1,128,839 | $1,302,429 | $909,302 |
| Credit Cards | $51,251 | $69,586 | $106,633 | $103,128 | $105,623 | $98,205 | $102,426 |
| Revenue Share Payable | $1,797,103 | $2,014,366 | $970,065 | $797,917 | $760,779 | $716,181 | $802,325 |
| Deferred Payroll Liabilities | $393,552 | $907,068 | $1,592,054 | $1,759,151 | $1,920,627 | $2,028,276 | $2,081,861 |
| Accrued Interest | $198,359 | $358,871 | $571,498 | $641,008 | $722,545 | $738,855 | $764,024 |
| Notes Payable (Current Portion) | $294,758 | $855,603 | $983,791 | $918,707 | $1,284,008 | $912,402 | $974,031 |
| Total Current Liabilities | $2,768,024 | $4,453,023 | $5,014,936 | $5,384,099 | $5,933,421 | $5,807,348 | $5,644,969 |
| LT Secured Notes Payable | $3,070,000 | $2,320,256 | $1,804,328 | $1,857,217 | $1,725,862 | $1,572,655 | $934,870 |
| LT Unsecured Notes Payable | $384,751 | $570,240 | $763,441 | $688,308 | $685,842 | $2,519,280 | $2,501,436 |
| Total Liabilities | $6,222,774 | $7,343,519 | $7,582,705 | $7,929,624 | $8,345,125 | $9,899,283 | $9,081,275 |
| Equity (Deficit) | $(3,432,257) | $(4,343,878) | $(4,543,518) | $(4,730,355) | $(5,017,094) | $(5,119,375) | $(5,177,547) |
Balance Sheet Flags
1. Persistent Negative Equity: Deficit has grown from $(3.4M) in FY22 to $(5.2M) in Sep 2025 — driven by accumulated losses during growth phase and heavy reliance on debt. 2. Shareholder Advances: $1.62M owed to three founders (Darrow, Loustalot, Seitz) — growing $44K/mo. Treated as LT "other assets" but represent real obligations. 3. Deferred Payroll: $2.08M is a large accrued-but-unpaid payroll liability — suggests payroll deferrals to founders. 4. LT Unsecured Notes jumped from $688K (Mar 25) to $2.5M (Aug 25) — reflects Founder Funding $2M facility booking. 5. AP spike: AP hit $1.30M in Aug before dropping to $909K in Sep — watch for vendor payment timing.
Management Projections (FY25E–FY27E) & Debt Service Analysis
| Line Item | FY24A | FY25E | FY26E | FY27E |
|---|---|---|---|---|
| Gross Revenue | $9,594,405 | $10,237,446 | $13,290,067 | $20,164,239 |
| Revenue Share Payouts | $(4,816,351) | $(5,016,349) | $(5,980,530) | $(8,468,980) |
| Net Revenue | $4,778,054 | $5,221,097 | $7,309,537 | $11,695,259 |
| Gross Profit | $4,297,040 | $4,719,463 | $6,658,323 | $10,790,892 |
| Total Operating Expense | $(3,210,696) | $(3,977,649) | $(5,029,838) | $(6,097,991) |
| Net Operating Income | $1,086,344 | $741,814 | $1,628,486 | $4,692,902 |
| EBITDA (+ Amortization) | $1,633,255 | $1,490,026 | ~$2,400,000 | ~$5,600,000 |
| EBITDA Margin % | 34.2% | 28.5% | ~32.8% | ~47.9% |
| Debt Service (Facility Estimates) | ||||
| Estimated Monthly Interest @ 15% on $2M | — | $25,000/mo | $25,000/mo | ~$25,000–$15,000 |
| Revenue Share @ 0.75% of Monthly Net Rev | — | ~$3,270/mo | ~$4,570/mo | ~$7,310/mo |
| Est. Annual Debt Service (Interest + Rev-Share) | — | ~$339,240 | ~$354,840 | ~$387,720 |
| DSCR (EBITDA ÷ D/S) — Indicative | — | 4.4× | 6.8× | 14.4× |
FY25E–FY27E projections from internal model (Sagacity Golf Projections_.xlsx). Projections assume ~7.3% gross revenue CAGR (25E→26E) then +52% (26E→27E, reflecting new course additions and Yards B2C launch). FY27 revenue more aggressive — upside scenario. Debt service estimates are lender calculations; actual drawn balance and amortization schedule will vary. P&I payments begin Month 13 (roughly Aug 2026).
Collateral & UCC Lien Position
Security Agreement (Aug 25, 2025)
Collateral: All assets of Sagacity Golf Technologies, Inc. including all accounts, chattel paper, instruments, documents, general intangibles, deposit accounts, equipment, inventory, investment property, commercial tort claims, and all proceeds thereof.
Security Interest: First priority senior lien — all present and future assets of Borrower. Secured Party: Founder Funding, LLC (808 Travis St., Suite 1406, Houston TX 77002). Debtor: Sagacity Golf Technologies, Inc. (525 3rd St., Suite 208, Lake Oswego, Clackamas County, OR 97034).
UCC Filing: UCC-1 Financing Statement executed and filed — 15-page UCC Form included in transaction documents. Filing perfects the security interest against third parties.
Security Interest: First priority senior lien — all present and future assets of Borrower. Secured Party: Founder Funding, LLC (808 Travis St., Suite 1406, Houston TX 77002). Debtor: Sagacity Golf Technologies, Inc. (525 3rd St., Suite 208, Lake Oswego, Clackamas County, OR 97034).
UCC Filing: UCC-1 Financing Statement executed and filed — 15-page UCC Form included in transaction documents. Filing perfects the security interest against third parties.
Existing Lien & Payoff Summary
Advance Servicing Inc. (MCA Payoff):
• Payoff letter dated Aug 7, 2025
• Outstanding balance: $265,416.70
• Reduced payoff if paid in full: $227,708.37
• Payment to: Wells Fargo (Routing: 121000248 / Acct: 4943348680) or Zelle: advance@merchant-advance.com
• Beneficiary: Advance Servicing Inc., 15 Main St, Holmdel NJ 07733
Watch: Shareholder notes, deferred payroll and other accrued liabilities are not contractual secured debt but represent significant unfunded obligations. Founders have deferred significant compensation — total shareholder advances $1.62M as of Sep 2025.
• Payoff letter dated Aug 7, 2025
• Outstanding balance: $265,416.70
• Reduced payoff if paid in full: $227,708.37
• Payment to: Wells Fargo (Routing: 121000248 / Acct: 4943348680) or Zelle: advance@merchant-advance.com
• Beneficiary: Advance Servicing Inc., 15 Main St, Holmdel NJ 07733
Watch: Shareholder notes, deferred payroll and other accrued liabilities are not contractual secured debt but represent significant unfunded obligations. Founders have deferred significant compensation — total shareholder advances $1.62M as of Sep 2025.
Collateral Adequacy Assessment
Founder Funding holds a first-priority senior blanket lien on all assets. Key collateral value: (1) Capitalized software / goodwill $1.45M net book value; (2) A/R ~$357K; (3) Platform revenue generating $4.8M+ annual gross. Revenue share payable to partners ($802K) is largest claim ahead of FF but is a current operational liability not a senior lien. No other perfected senior secured lenders identified from documents reviewed. Advance Servicing payoff expected at/prior to closing — should be confirmed via payoff receipt.
Risk Assessment
HIGH
Deeply Negative Equity & Deferred Liabilities: Cumulative equity deficit of $(5.18M) as of Sep 2025. $2.08M in deferred payroll liabilities, $802K revenue share payable, and $1.62M founder advances represent large unfunded obligations. Company is technically insolvent on a book basis — entirely dependent on continued revenue growth and cash flow to service obligations.
HIGH
Revenue Share Model Complexity: ~50% of gross revenue is paid out as "Revenue Share" to golf course partners and aggregators. This creates significant gross-to-net gap ($9.6M gross → $4.8M net). If key course partners (e.g. Myrtle Beach aggregators) renegotiate terms or churn, net revenue can decline even if gross transaction volume holds. Revenue Share Payable balance ($802K Sep) reflects potential timing mismatch.
HIGH
Cash Liquidity Thinness: Cash went negative in June 2025 ($-2,546 on Jun 30), reached a low of $573 in July 2025. Pre-facility, cash was insufficient for minor shocks. Minimum covenant $250K is meaningful guardrail — but cash can be volatile month-to-month given seasonal golf patterns. Sep cash of $464K is healthy but expect seasonality dip in winter months.
MED
Seasonal Revenue Pattern: Golf is highly seasonal (peak Apr–Aug, trough Nov–Feb). Sep 2025 saw borrowing base calculation impacted by weaker Aug collections ($292K vs $376K in Jun/Jul). Lender should model winter monthly debt service coverage carefully — Jan–Mar historically weakest months.
MED
Key-Person Risk — Brett Darrow: CEO and co-founder of GolfNow (sold to Comcast). Strong domain expertise and industry relationships are central to the business. ACH authorization, compliance certs, and all lender communications flow through Brett. Succession plan and cross-training for key operations should be confirmed.
MED
Interest Burden vs. Operating Income: FY24 interest expense was $739K against NOI of $1.09M, resulting in Net Income of $(200K). Adding the new FF facility ($300K+ annual interest + rev-share), total annual debt service could approach $1.0–$1.1M — roughly equal to FY24 NOI. FY25 NOI is tracking $742K (projected) vs. ~$339K new D/S. Serviceable but thin margin for error.
LOW
Platform Concentration (Myrtle Beach): Cloud-based tee sheet powers 60+ courses in Myrtle Beach alone. Geographic concentration creates weather/economic risk but also creates a valuable defensible cluster. Integration with Toast POS, Clover, Lightspeed provides diversification across course management systems.
LOW
Competitive Disruption: GolfNow (Comcast) is the dominant market player with 5,000 courses. Sagacity focuses on revenue optimization / dynamic pricing vs. GolfNow's booking marketplace. Differentiated positioning with predictive analytics, exclusive Toast POS integration, and PGA of America investor backing provides near-term moat.
Prior Debt & Refinancing Context
Debt Structure — Sep 30, 2025
| LT Secured Notes Payable (Non-FF) | $934,870 |
| LT Unsecured Notes Payable (incl FF) | $2,501,436 |
| Current Notes Payable (short-term) | $974,031 |
| Accrued Interest (unfunded) | $764,024 |
| Revenue Share Payable | $802,325 |
| Deferred Payroll Liabilities | $2,081,861 |
| Accounts Payable | $909,302 |
| Total Liabilities | $9,081,275 |
Context & Notes
Company has raised ~$5M to date in a mix of equity and debt (one-pager). Prior debt sources include shareholder notes, MCA (Advance Servicing), and secured term notes. The Founder Funding facility was structured explicitly to refinance existing high-cost debt (MCAs) and reduce annual interest expense by ~$500K (CC Slide states "$500K reduction in annual Interest Expense").
FY23 Interest Expense was $1.13M — peak debt service burden. FY24 reduced to $739K. 9M 2025 is $762K on pace for higher if not refi'd. FF refi provides lower blended cost vs. MCA rates which can be 40-100%+ effective APR.
Rule of 40 Score: 42 (as of CC Slide — $4.8M ARR × ~19% growth + ~23% EBITDA margin). Strong for credit underwriting.
FY23 Interest Expense was $1.13M — peak debt service burden. FY24 reduced to $739K. 9M 2025 is $762K on pace for higher if not refi'd. FF refi provides lower blended cost vs. MCA rates which can be 40-100%+ effective APR.
Rule of 40 Score: 42 (as of CC Slide — $4.8M ARR × ~19% growth + ~23% EBITDA margin). Strong for credit underwriting.
Business Overview — Sagacity Golf Technologies
Core Product: Dynamic pricing & revenue optimization SaaS for golf courses. Predicts tee time demand hourly for 365 days/year; integrates with all major tee sheet and POS systems (Toast, Clover, Micros, Lightspeed). $3K ACV per course for SaaS subscription.
Dual Revenue Model: (1) B2B SaaS — $1M ARR from ~300 courses @ ~$3K ACV; (2) Transaction Fees — 10% take-rate on upsell (course side) + 5% fee on discount redemptions (golfer side). Transactions are the larger revenue driver (~$3.8M net). Processed $430M+ in tee time sales in 2024.
Market Position: 300 golf courses on platform (out of 16,000 US public courses). GolfNow (Comcast) has 5,000 — Sagacity targets the revenue-optimization segment, not booking marketplace. PGA of America is a strategic investor. Exclusive Toast POS integration.
B2C Expansion — "Yards": Nationwide golfer rewards platform launching. Earns points at participating courses, monetized via course partnerships, advertising, and sponsorships. TAM expansion: $30B ($3M/year from each of 10,000 US public golf courses).
Key Operating Metrics (CC Slide)
TTM Revenue
$4.8M
EBITDA ('24)
$1.1M
Gross Margin
~90%
Courses on Platform
300
4B+ Price Adjustments
Made in 2024
Rule of 40
42
Investment Rationale (Lender Perspective)
Positive: (1) $4.8M TTM net revenue with 90% gross margins; (2) FY24 EBITDA $1.1M — D/S coverage 3.6× pre-facility; (3) Refinancing use of proceeds reduces burden; (4) PGA of America investor; (5) 300 active course integrations = sticky recurring revenue; (6) CC slide Rule-of-40 score 42. Concerns: (1) Negative equity driven by historical losses; (2) Heavy deferred payroll obligations; (3) Seasonal cash flow; (4) Complex rev-share model requires diligent monitoring.
Management Team
Brett Darrow
Co-Founder & CEO
Serial entrepreneur. Founded GolfNow.com (acquired by Comcast/NBC Sports). 18+ years in golf industry tech. Primary ACH signatory and lender contact. Based in Lake Oswego, OR.
Duane Craw
Co-Founder & CTO
20+ years in golf software development. Former CTO of GolfNow. Leads all product and engineering. Primary technical architect of dynamic pricing platform.
Ben Westfal
Co-Founder & VP Software
Two decades of software development experience. Oversees platform development and integrations with POS systems and tee sheet providers.
Mike Loustalot
Co-Founder & CRO
Serial entrepreneur. Raised in a PGA Golf Professional family. Leads revenue and course relationships. $331K+ in shareholder advances as of Sep 2025.
Andy Seitz
Co-Founder & COO
MS Operations Research, Columbia University. Former revenue management exec at one of the world's largest golf course operators. Leads financial operations and covenants reporting.
Mike Thorington
VP of Sales
20+ years in golf industry sales. Specializes in helping courses boost revenue through customer engagement. Leads the course acquisition sales team and partner development.
Founding Team Ownership: Collectively ~51% per CC Slide. Company has raised $5M to-date in a mix of equity and debt. Current valuation per one-pager: $20M pre-money (targeting $250M+ exit via acquisition or IPO in 3–5 years). Founders have deferred significant compensation (payroll liabilities $2.08M) — aligns incentives with lender but represents contingent payout upon profitability or funding event.
Sagacity Golf Technologies — Founder Funding Credit Memo · Prepared by eSapiens.AI · esapiens.ai · Confidential — Lender Use Only
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