Henry Penix created a technology that informs customers if they were accidentally leaving behind their keys by vibrating, lighting up, and beeping to alert them. Will he earn a deal on
Shark Tank Zomm Update
- Entrepreneur: Henry Penix
- Business: Technology to locate lost personal items
- Ask: $2 million for 10% equity
- Result: No deal
- Shark: None
Henry showed off his product, Zomm during
Daymond John was the first to inquire about the $20 million valuation. Henry shared that they had grossed $750,000 in 2010, $5 million in 2011, and projected to finish 2012 with $7.2 million, of which $2 million would be net profit.
While intended to impress the sharks, it only puzzled them. Robert Herjavec pointed out that, if this were true, Henry already had the $2 million he was asking for. Why did he need more money?
Henry said that he needed the cash now, but it still remained unclear as to why.
Lori Greiner pushed and found out that Henry was simultaneously working on another product called Lifestyle Connect, a variant of the Zomm technology, which acted as a low-energy heart rate monitor, blood glucose monitor, and fall detector.
The sharks still felt there was something missing that would explain where all the money went, estimating that $9 million of sales revenue had gone missing entirely within 2 years.
Henry divulged further that he had financed $2 million in inventory that did not sell during the holiday season, and it was now overhead.
Daymond pushed and asked Henry how much he spent on R&D for the new product. Henry claimed not to know the exact figure, leading Daymond to push harder until Henry would at least share that he spent “over $1 million.”
Mark Cuban, sensing that Henry remained less than forthcoming, said he was out.
Robert was out next, stating that it was astounding that Henry had burned more than $9 million.
Daymond was next to go out, assuming that one look at Henry’s books would reveal some “horrific” truths that they were not arriving at.
Lori echoed the same sentiment and also went out.
As he says, all roads lead back to Mr. Wonderful, but Kevin O’Leary had nothing wonderful to say. Despite the alleged sales, Kevin said he couldn’t invest over serious doubts of ever getting his money back. He was the last shark to go out.
Things didn’t go well for Henry during
Immediately after airing, Zomm’s sales exploded, helping Henry work through that $2 million in overhead he had amassed.
In addition, during our Zomm update research, we found that the product line expanded to include the Lifestyle Connect and a Wireless Leash for cellphones.
Despite this, Zomm went out of business in 2018. Henry would go on to become the CEO of Soaak Technologies, which provides online services in the mental health and wellness space.
This will be our final Zomm update.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!