Bob Morales founded Mor Distributing in 1985 and brought in partner Todd Huffman in 1986. Mor Distributing started out as a distributor of bicycles and parts for other companies like DYNO. In 1988 Morales and Huffman created their own brands including Auburn Cycles using a unique two-piece frame design by Morales. KORE Bicycle Components was founded by Morales in 1988 and he was awarded three more patents for bicycle part designs for BMX and Mountain Bikes. In 1993 several financial partners had joined KORE. In 1993 Morales formed the MORALES Bicycle Company to market and distribute bicycle frame designs that he had created for the BMX and Mountain Bike markets. Morales sold his interest in KORE to his partners in 1998. He retained ownership rights of Morales Bicycle Co.