In Episode 12 of Shark Tank’s Season 12, Keidy & Gene Palusky, a couple, pitched their company Xtorch. What happened after the pitch was unpredictable. While four sharks refused to invest in the company, Robert offered to buy the entire company.
In this piece, I will run you through everything there is to know about ‘Xtorch’ — what exactly is ‘Xtorch’, ‘Xtorch’s Shark Tank pitch & deal, and what happened to Xtorch after Shark Tank.
What is Xtorch?
Founded by Keidy and Gene, Xtorch is basically a multi-purpose solar torch light. Not only does it work as a solar charging torch light, it also functions as a room lantern and also has a USB port for charging devices. The torch is sturdy enough to survive drops on hard surfaces without breaking. On a full charge, the lantern stays lit for a full 48 hours. Apart from sunlight charging, the torchlight can also be charged with a regular electric outlet in one hour.
Xtorch Shark Tank Pitch & Deal
After entering the Shark Tank pitch room, Keidy and Gene informed that they were seeking $150,000 in exchange for 10% of their business. They then introduced their solar flashlight by literally breaking a block of ice and removing an undamaged Xtorch from it as a play to prove the sturdiness of the torch. Gene then informs that the torch was frozen in a block of ice for two days, but still retained the capability for full functioning.
After demonstrating the ruggedness of the torch, Gene explains that the torch has three functions. It works as a flashlight, a lantern and a cell phone charger. Xtorch also has an altruistic approach, donating 25% of the profits to partners around the globe. The Xtorch takes 22 hours to fully charge with solar, but consumers can also choose to charge in just an hour with a regular electric outlet.
The manufacturing cost of the torch is $18.50 and it is sold for $55.95. However, in the next production run, the cost is predicted to drop to $14.
After pitching the product, the founders informed the backstory of how the idea of creating Xtorch came to them. Keidy was born in the Dominican Republic and experienced power shortages from a young age. However, a tragic personal tryst with lack of power in Africa when they were working with a food distribution NGO was what led to the conception of the idea.
After hearing the pitch, Sharks call the product a flashlight but the founders keep sharing how it is different from a regular one. Moving on, Kevin inquiries about the sales. In 2019, Xtorch sold products worth $53,000. On further inquiry, the founders also reveal the product does not have any patent.
Kevin says he is out as he believes they should go direct to the consumer at half the price they are currently selling it. Mark is of the opinion that while the product is good, they haven’t sold enough of it yet; so he is out. The remaining two Sharks also say they are out. However, Robert says he likes the product but he is interested in buying the whole company for $400k. Gene counter offers a price of $1million. Robert increases his offers to $500k. However, Gene refuses to take the offer, counter offering $750k. Robert is not willing to go up to $750k, and the Xtorch founders walk out without a deal.
What happened to Xtorch after Shark Tank (Xtorch Shark Tank Update)
At the time of writing, the lights are still on for Xtorch. You can buy Xtorch from either their website or from Amazon.
In the weekend after the Shark Tank episode aired, the company sold nearly all the 1400 torchers it had in stock. The pandemic created a supply chain issue for them as there was a worldwide shortage of electronic parts, leading to them going out of stock in 2021.
However, the company is now back in business, with a reported annual revenue of $1.5 Million.
