D. Investment Deployment – Use of $4M
34. Present a detailed spending plan for all budget items – monthly breakdown for the first 12 months
For the first phase after investment, DeltaX will focus the production scale-up plan on one standard product line: Delta X Smart. This reduces SKU complexity and allows the company to standardize purchasing, assembly, QA/QC, CE compliance, documentation, and customer support.
The current normal production capacity is approximately 8 Delta X Smart units per month. If the current team is pushed to maximum capacity, the company can produce approximately 15 units per month. At the current assembly method, one Delta X Smart requires approximately 5 working days for one assembly employee.
The target after investment is to build production readiness toward 100 Delta X Smart units per month within approximately 12 months.
DeltaX currently operates from a 650 m² facility with a monthly rental cost of approximately VND 60 million. After investment, the company plans to expand to a facility of at least 2,000 m², with an estimated monthly rental cost of approximately VND 100–120 million.
The updated use of proceeds is as follows:
| Budget Item | Amount | Purpose |
|---|---|---|
| Production Scale-up / CAPEX | $1,500,000 | Facility expansion, assembly line setup, production tools, QA/QC equipment, test systems, warehouse setup, traceability system |
| Working Capital & Initial Component Inventory | $700,000 | Initial component inventory, long-lead-time parts, spare parts, logistics buffer, and production cashflow |
| Engineering & R&D – Delta X Smart | $750,000 | Product standardization, firmware/software reliability, Vision AI, documentation, testing procedures, CE-ready design improvements |
| Sales & Marketing | $550,000 | European go-to-market, distributor development, demo units, trade shows, CRM, customer acquisition |
| CE Certification & Compliance | $200,000 | CE consultant, EMC testing, electrical safety testing, technical file, risk assessment, documentation, lab testing |
| Strategic IP & Product Acquisition – Elbot | $300,000 | Consolidation of ownership, IP, product rights, BOM, CAD, source files, know-how, and future commercialization rights related to Elbot |
| Total | $4,000,000 |
Elbot is a joint product direction combining DeltaX’s robotics platform and Elbot’s product/application development. The proposed $300,000 allocation is intended to consolidate ownership and future commercialization rights. Elbot is not included in the first-phase production ramp-up to 100 units/month. The Phase 1 production focus remains Delta X Smart.
12-month spending plan
All supplier names and quotations below are preliminary. Formal supplier quotations will be collected during the first 1–2 months after investment. Until then, the quotation status should be considered “quotation pending.”
Amounts below are in USD thousands.
| Month | Production CAPEX | Working Capital & Inventory | R&D | Sales & Marketing | CE & Compliance | Elbot Acquisition | Monthly Total |
|---|---|---|---|---|---|---|---|
| M1 | 120 | 120 | 40 | 20 | 25 | 50 | 375 |
| M2 | 180 | 120 | 50 | 25 | 25 | 100 | 500 |
| M3 | 180 | 100 | 60 | 30 | 35 | 100 | 505 |
| M4 | 160 | 80 | 60 | 35 | 35 | 50 | 420 |
| M5 | 130 | 60 | 70 | 40 | 30 | 0 | 330 |
| M6 | 120 | 50 | 70 | 45 | 25 | 0 | 310 |
| M7 | 120 | 50 | 70 | 50 | 10 | 0 | 300 |
| M8 | 120 | 40 | 70 | 60 | 5 | 0 | 295 |
| M9 | 100 | 30 | 70 | 60 | 5 | 0 | 265 |
| M10 | 90 | 30 | 70 | 65 | 0 | 0 | 255 |
| M11 | 70 | 20 | 70 | 60 | 0 | 0 | 220 |
| M12 | 110 | 0 | 50 | 60 | 5 | 0 | 225 |
| Total | 1,500 | 700 | 750 | 550 | 200 | 300 | 4,000 |
Supplier / vendor shortlist and quotation status
| Category | Potential Suppliers / Vendors | Estimated Budget | Timing | Quote Status |
|---|---|---|---|---|
| Facility expansion and warehouse setup | Local industrial facility landlords / contractors in Da Nang or nearby industrial zones | $200,000 | M1–M4 | Quotation pending |
| Mechanical standard parts | MISUMI Vietnam, Kỷ Nguyên Máy | $150,000 | M1–M6 | Quotation pending |
| Aluminum profiles / frame parts | MISUMI Vietnam, Gia Minh Phát SG, G9 Industrial | $120,000 | M1–M6 | Quotation pending |
| Electrical and automation components | Hợp Long Tech, Bảo An Automation | $200,000 | M1–M8 | Quotation pending |
| Electronics / modules / connectors | Thegioiic, Hshop, Nshop, Điện Tử Tương Lai | $150,000 | M1–M8 | Quotation pending |
| PCB / electronics manufacturing | Thiên Lam PCB, PCB GraphTech, PCBWay as international backup | $100,000 | M2–M8 | Quotation pending |
| Assembly stations and production tools | Local tool/workbench suppliers, MISUMI, Kỷ Nguyên Máy | $250,000 | M2–M8 | Quotation pending |
| QA/QC and measurement equipment | Local industrial equipment suppliers / international suppliers where needed | $250,000 | M2–M9 | Quotation pending |
| Robot testing and burn-in systems | Internal design + local fabrication + electrical suppliers | $250,000 | M3–M10 | Internal design / quotation pending |
| ERP/MRP and traceability | Internal system development + external software support if required | $100,000 | M2–M12 | In development / quotation pending |
| CE consultant / certification body | TÜV, SGS, Intertek, Bureau Veritas, or qualified regional testing partners | $200,000 | M1–M6 | Quotation pending |
| Elbot IP/product acquisition | Existing Elbot partner/company | $300,000 | M1–M4 | Subject to legal/IP due diligence |
---
35. Production scale-up – which machines exactly? Supplier name, model, price, lead time, quote?
The Phase 1 production scale-up plan focuses on Delta X Smart. DeltaX does not plan to build a heavy manufacturing factory immediately. The main bottlenecks today are component purchasing capital, assembly labor, facility/warehouse space, and CE/compliance.
Current state:
| Item | Current Status |
|---|---|
| Current normal production capacity | Approximately 8 Delta X Smart units/month |
| Current maximum pressure capacity | Approximately 15 units/month |
| Current assembly time | Approximately 5 working days per robot for 1 assembly employee |
| Current facility | 650 m² |
| Current monthly rent | Approximately VND 60 million/month |
| Target facility | At least 2,000 m² |
| Expected target rent | Approximately VND 100–120 million/month |
| Supplier lead time | Approximately 3–4 weeks |
The production scale-up budget is planned as follows:
| Category | Estimated Budget | Purpose | Supplier / Status |
|---|---|---|---|
| Facility expansion and warehouse setup | $200,000 | Expand from 650 m² to at least 2,000 m², build storage, assembly, testing, packing, and finished goods areas | Local facility / contractor, quotation pending |
| Assembly stations and line setup | $250,000 | Dedicated stations for mechanical assembly, wiring, calibration, testing, packaging | Local suppliers / MISUMI / Kỷ Nguyên Máy, quotation pending |
| Tools, jigs, fixtures, torque tools, ESD tools | $150,000 | Improve repeatability, reduce assembly errors, support faster training of workers | MISUMI / Kỷ Nguyên Máy / local suppliers, quotation pending |
| QA/QC and inspection equipment | $250,000 | Incoming inspection, in-process QC, final QC, dimensional checks, electrical checks | Local and international suppliers, quotation pending |
| Robot testing and burn-in systems | $250,000 | Motion testing, repeatability testing, endurance testing, IO testing, safety checks | Internal design + local fabrication, quotation pending |
| Light prototyping and production support equipment | $150,000 | 3D printers, light CNC/prototyping tools, fixture production, quick engineering changes | Supplier to be selected, quotation pending |
| Warehouse, packaging, and material handling | $100,000 | Racks, bins, barcode labels, packaging tools, material flow management | Local suppliers, quotation pending |
| ERP/MRP and traceability system | $100,000 | BOM control, inventory tracking, production planning, serial-number traceability | Internal system + external support if required |
| Setup, training, installation, and contingency | $50,000 | Installation, training, equipment setup, unexpected setup costs | Quotation pending |
| Total | $1,500,000 |
The goal is to move from small-batch founder-led production to a standardized assembly and testing system capable of supporting 100 Delta X Smart units/month readiness.
The company will prioritize:
- Stable component inventory.
- Standardized workstations.
- Assembly specialization.
- QA/QC checkpoints.
- Burn-in and repeatability testing.
- Serial-number traceability.
- CE-ready production documentation.
---
36. Engineering & R&D – how much for hiring? Equipment? What are the expected deliverables?
The Engineering & R&D budget is focused on making Delta X Smart more reliable, easier to manufacture, easier to support, and ready for international deployment.
The proposed R&D budget is $750,000.
| R&D Item | Estimated Budget | Purpose |
|---|---|---|
| Engineering hiring | $350,000 | Firmware, embedded systems, software, Vision AI, mechanical/manufacturing engineering |
| Delta X Smart standardization | $100,000 | Standard configuration, design freeze, manufacturability improvement |
| Firmware and controller reliability | $80,000 | IO, motor control, diagnostics, safety logic, firmware update process |
| Vision AI and calibration workflow | $80,000 | Easier camera setup, calibration, model deployment, conveyor/vision workflow |
| Testing and reliability program | $70,000 | Internal endurance testing, field issue reproduction, design validation |
| Engineering documentation and CE technical file support | $50,000 | BOM, CAD, assembly instructions, service manuals, risk assessment support |
| R&D equipment and prototypes | $20,000 | Engineering prototypes, sensors, cameras, development equipment |
| Total | $750,000 |
Proposed R&D hiring plan
| Role | Headcount | Purpose |
|---|---|---|
| Firmware / Embedded Engineer | 2 | Controller, IO, safety logic, firmware reliability, update process |
| Software / Vision AI Engineer | 2–3 | Vision AI, calibration tools, web control interface, diagnostics |
| Mechanical / Manufacturing Engineer | 2 | Design for manufacturability, fixtures, reliability, assembly process |
| QA/Reliability Engineer | 1–2 | Testing procedures, burn-in, defect tracking, design validation |
| Technical Documentation / Support Engineer | 1 | Manuals, service documents, technical files, customer support materials |
Expected deliverables within 12 months
- Standardized Delta X Smart production configuration.
- Improved firmware and controller reliability.
- Better diagnostic tools for support and troubleshooting.
- Improved Vision AI and calibration workflow.
- More complete BOM, assembly instructions, service manuals, and test procedures.
- CE-ready technical documentation support.
- Reduced founder dependency through documentation and engineering ownership.
- Better manufacturability and more consistent product quality.
The purpose of the R&D budget is not only to create new features, but to industrialize Delta X Smart into a repeatable, supportable, and certifiable product.
---
37. Sales & Marketing – does this include a European sales manager? Trade shows? Distribution?
Yes. The Sales & Marketing budget includes international sales development, with a focus on Europe after CE readiness.
The proposed Sales & Marketing budget is $550,000.
| Item | Estimated Budget | Purpose |
|---|---|---|
| International / Europe Sales Manager | $110,000 | Manage leads, distributors, system integrators, quotations, and pipeline |
| Distributor and system integrator development | $90,000 | Partner onboarding, training, documentation, technical support |
| Demo units and application kits | $120,000 | Delta X Smart demo robots, Vision AI demo packages, application demos |
| Trade shows and customer visits | $100,000 | Selected automation/robotics events and direct customer meetings |
| Marketing content and localization | $60,000 | Datasheets, videos, manuals, case studies, website, localized materials |
| CRM and sales operations | $40,000 | Pipeline tracking, lead management, customer status, sales reporting |
| Paid lead generation and digital marketing | $30,000 | Targeted campaigns for qualified industrial leads |
| Total | $550,000 |
The go-to-market strategy is to focus on standard Delta X Smart packages first, instead of too many custom projects. More complex applications will be handled through distributors and system integrator partners.
The expected commercial priorities are:
- Build a qualified European distributor/system integrator pipeline.
- Prepare CE-ready sales materials.
- Create standardized demo applications.
- Document ROI and customer case studies.
- Improve lead tracking and pipeline reporting.
- Reduce dependency on founder-led sales.
---
38. CE certification & compliance – which certification body? Quote? Exact timeline?
DeltaX has not yet completed formal EMC testing. The company has internal assessments, manuals, and technical documentation, but they are not yet complete for official CE certification.
The first CE target product will be Delta X Smart.
The target timeline is approximately 6 months, assuming no major redesign is required.
| Period | Milestone |
|---|---|
| Month 1 | Select CE consultant/testing partner and confirm applicable directives and standards |
| Month 1–2 | Complete risk assessment, manuals, wiring documentation, and technical file structure |
| Month 2–3 | Internal pre-compliance review and design corrections |
| Month 3–4 | Prepare sample units for EMC/electrical safety testing |
| Month 4–5 | Official lab testing or pre-lab testing |
| Month 5–6 | Fix non-conformities, finalize documentation, and prepare Declaration of Conformity path |
The proposed CE/compliance budget is:
| Item | Estimated Budget |
|---|---|
| CE consultant / compliance advisor | $30,000 |
| EMC and electrical safety testing | $80,000 |
| Product modifications after testing | $30,000 |
| Technical file, risk assessment, manuals, labels | $30,000 |
| Internal pre-compliance tools and documentation support | $30,000 |
| Total | $200,000 |
Potential certification/testing partners include TÜV, SGS, Intertek, Bureau Veritas, or qualified regional testing partners. The certification body has not been selected yet, and formal quotations are pending.
DeltaX understands that CE certification may require design corrections, documentation improvements, EMC testing, electrical safety review, risk assessment, labeling, and manual updates. The company will prioritize CE readiness for Delta X Smart before scaling sales aggressively in Europe.
---
39. What happens if $4M is not enough? Is there a buffer? What is Plan B?
The $4M plan is designed around a focused product strategy: Delta X Smart in Phase 1. This reduces execution risk and avoids spreading capital across too many product lines.
If the $4M budget is not enough, DeltaX will apply the following Plan B:
- Keep the production focus on Delta X Smart and delay other product lines.
- Delay Elbot industrialization if the Elbot acquisition or integration becomes more expensive than expected.
- Keep production build-to-order or semi-build-to-order instead of building large finished-goods inventory.
- Use customer upfront payments to reduce working capital pressure.
- Delay non-critical CAPEX and outsource machining/fabrication where more cost-effective.
- Prioritize CE, production stability, QA/QC, and working capital before aggressive marketing spending.
- Reduce trade show and distributor spending if production capacity is not ready.
- Release capital in tranches based on operational KPIs.
- Use customer pre-orders, distributor deposits, or short-term trade financing if demand exceeds working capital.
Priority order if budget must be reduced:
| Priority | Keep / Cut Decision |
|---|---|
| Must keep | Working capital, critical components, CE, QA/QC, production line setup |
| Can delay | Trade shows, non-critical marketing, non-critical equipment |
| Can outsource | Some machining, fabrication, fixture production |
| Can phase later | Elbot industrialization, new product lines, heavy CAPEX |
| Can adjust | Hiring speed, distributor expansion, demo units |
The main principle is controlled scale-up, not uncontrolled expansion.
---
40. Is $200K working capital sufficient? 100 robots × manufacturing cost – what is the real need?
No. DeltaX does not treat $200K as the full working capital requirement.
The updated plan allocates approximately $700,000 to Working Capital & Initial Component Inventory.
For investment planning, the estimated full manufacturing cost of Delta X Smart is approximately $3,200 per unit after accounting for higher-quality sourcing, formalized production, QA/QC, packaging, labor, warranty reserve, and production buffer.
At the target capacity of 100 units/month:
| Item | Estimate |
|---|---|
| Full manufacturing cost per Delta X Smart | ~$3,200 |
| Target production volume | 100 units/month |
| Monthly production cost requirement | ~$320,000/month |
| Recommended critical component coverage | Around 2 months |
| Initial component inventory + buffer need | ~$700,000 |
The company’s customer payment terms help reduce this pressure. Most customers currently pay 100% upfront. In some cases, customers pay a 50–70% deposit before production. Therefore, DeltaX does not plan to build excessive finished-goods inventory.
The company will use build-to-order or semi-build-to-order production planning, supported by customer payments, supplier planning, and controlled inventory.
The $700,000 working capital allocation is intended to cover:
- Long-lead-time components.
- Initial inventory for production ramp-up.
- Spare parts and warranty stock.
- Logistics and import timing buffer.
- Short-term production cashflow.
- Supplier lead time of approximately 3–4 weeks.
This approach is more realistic than treating $200,000 as the full working capital requirement.
---
41. What are the milestones for each $1M invested? Can a Tranche mechanism be built based on KPIs?
Yes. DeltaX is open to a tranche-based funding mechanism based on realistic operational KPIs.
Proposed tranche structure:
| Tranche | Amount | Target Timing | Key Milestones |
|---|---|---|---|
| Tranche 1 | $1,000,000 | Closing to Month 2 | Secure facility expansion plan, order long-lead components, start supplier quotations, begin CE consultant selection, begin Elbot legal/IP due diligence, hire key production/QA roles |
| Tranche 2 | $1,000,000 | Month 3–5 | Reach 20–30 units/month capacity, complete first production stations, implement basic QA/QC checkpoints, complete CE documentation gap review, complete Elbot acquisition if due diligence is satisfactory |
| Tranche 3 | $1,000,000 | Month 6–9 | Reach 50–70 units/month capacity, stabilize inventory planning, begin CE testing/pre-testing, build distributor/demo pipeline, implement traceability workflow |
| Tranche 4 | $1,000,000 | Month 10–12 | Reach 80–100 units/month production readiness, complete major CE milestones, implement ERP/MRP workflow, demonstrate stable production and reporting process |
Target KPIs:
| KPI | Current / Target |
|---|---|
| Current normal capacity | 8 units/month |
| Current maximum pressure capacity | 15 units/month |
| 6-month target | 30–40 units/month |
| 9-month target | 50–70 units/month |
| 12-month target | 80–100 units/month readiness |
| CE target | Delta X Smart CE path within approximately 6 months |
| Customer payment model | Mostly 100% upfront, otherwise 50–70% deposit |
| Supplier lead time | Approximately 3–4 weeks |
| Working capital allocation | ~$700,000 |
| Facility target | At least 2,000 m² |
| Elbot | Ownership/IP/product rights consolidation, subject to due diligence |
This tranche structure protects the investor while ensuring DeltaX receives capital when it is ready to deploy it effectively.