Sadly, two billion people on the planet live in darkness without a reliable source of energy. Luckily, married couple Gene and Keidy Palusky are tackling this issue with their solar-powered flashlight, XTorch. They pitched it on Shark Tank but went home without a deal. Despite initial success, challenges with manufacturing and health issues led to the company’s closure. At its peak, XTorch was valued at $1 million.
Gene Palusky’s Background
Gene Palusky from Edina, Minnesota, is the brains behind the business. He studied fine arts at Macalester College and earned his master’s degree at the University of Wisconsin. With this, he started out as a sculptor.
After 15 years as an artist struggling to pay bills, he moved into the real estate business, buying and renovating old apartments for 20 years.
One day, he decided to take a vacation in the Dominican Republic. There, he met the love of his life and eventual wife. While Gene was the brains, Keidy was the heart.
The Birth of XTorch
Keidy helped Gene go on an adventure and leave his real estate business behind him. They traveled to countries in Africa, where many communities did not have access to electricity.
They were particularly touched by students who studied without light during the night time. The couple was further pushed to do something when Keidy got malaria, which she reportedly got while in the dark.
In 2015, Gene designed the XTorch solar flashlight. He also established EJ Case, the company responsible for manufacturing his products that sold for $60 each. Aside from providing light, it also served as a backup phone charger.
Appearance on Shark Tank
In 2019, the Palusky couple had sales of $53,000, but they were still losing money. So the following year, they went to Shark Tank asking for $150,000 for 10% equity. They wanted to boost direct customer sales without having to rely on third-party retailers.
During the pitch, it came to the attention of the Sharks that the XTorch flashlight didn’t have a patent. They also got concerned about the company’s sales history, so most of them opted out.
However, Robert Herjavec came out of nowhere, offering $500,000 to buy the entire business. Gene countered with $1 million for 100% but was denied. He then asked for at least $750,000, but Robert rejected. So, the entrepreneurs walked out without a deal.
Update After Shark Tank
Many Shark Tank fans liked the idea and story behind XTorch. Perhaps this is why the company got more than 2,000 orders after the episode aired on TV. This was a 350% increase from their previous year’s sales.
Initially, XTorch was available for purchase online at $59.99. Over time, the price was reduced to $50, with promotional sales bringing it down to $34.98.
As of recent updates, XTorch products are listed as out of stock on their official website, and they are no longer available on Amazon. The founders announced the closure of their business, citing health issues, challenges with overseas manufacturing, and shifting family priorities as reasons for their decision.
XTorch contributed 25% of its profits to various charity organizations and hoped to reach $3.2 million in revenue by 2024. They would have needed to double their sales every year to meet this target.
