temperature controlled environments: extended-range ...degreeid.com/docs/business-plan.pdfdegreeid...
Post on 29-Jul-2020
0 Views
Preview:
TRANSCRIPT
DegreeID 1
Team: 8
Dwayne Leininger, Mary McCarthy, Matt Malinosky, Tim Nosco, and Jessica Shaw Technology Title and ID: Extended-Range Passive RFID and Sensor Tags,
ID# MSC-24346-1 Lab Source: National Aeronautics and Space Administration (NASA)
Mentor: Jody Haneke
Temperature Controlled Environments:
Extended-Range Passive RFID and
Cloud Based Solution
DegreeID 2
I. Table of Contents
I. Table of Contents............................................................................................................2
II. Executive Summary.......................................................................................................3
III. Company Overview......................................................................................................4
IV. Products and Services...................................................................................................5
V. Market Analysis.............................................................................................................9
VI. Strategy and Implementation.....................................................................................16
VII. Commercialization Plan............................................................................................18
VIII. Financial Plan...........................................................................................................19
IX. DegreeID Business Team …………………………………………………………...21
X. Conclusion....................................................................................................................22
XI. Appendices ….............................................................................................................24
XII. References................................................................................................................42
DegreeID 3
II. Executive Summary
The U.S Government estimates $35 billion dollars in food goes to waste annually
due to improper temperature control during transport. Temperature Control Transport
companies are asking for a reliable process to help monitor their shipments.
DegreeID created a solution, utilizing a patented NASA developed sensor tag
combined with proprietary Cloud based software, to meet the customers’ needs. Our real
time visibility to temperature and location is one of a kind.
MISSION
DegreeID’s mission is to provide a solution for the global Temperature Control
Transport industry. We offer affordable innovations including monitoring, analytics and
reporting. The Corporation will provide products with exceptional return on investment.
MARKET
Temperature Control Transport companies currently lack real time visibility to
products throughout the cold chain. These companies traditionally focus on reducing
waste and insurance premiums while increasing customer satisfaction. Recent
government regulations and safety requirements have placed demands on producers,
manufacturers, transportation services, warehouses and others in the cold chain to
improve controls and reporting.
Degree ID offers solutions to the industry’s evolving demands.
OBJECTIVE
Initial three year objectives include:
1. Complete beta system for field testing in 6 months
2. Fully functioning solution ready to launch in 9 months
3. Marketing to top 60% cold chain freight forwarders
KEYS TO SUCCES
Regulatory - Pressures such as the 2011 FDA Food Safety Modernization Act
ROI - Case studies on more expensive and inadequate monitoring products have proven
payback within 12 months of implementation
Differentiation - Cutting edge patent pending NASA extended range sensors, proprietary
hardware and software to deliver real time reporting and analytics
Ease of use - Cloud hosted software offers easy, affordable access for clients and a
consistent revenue stream for DegreeID and its shareholders
SALES
The DegreeID solution is turn-key. The proprietary systems will set us apart from
other options, resulting in profitability when sales exceed $5 million, currently projected
by year 3. Our Cloud based monthly software subscription will provide a recurring
revenue stream, ensuring continuing profit growth.
DegreeID’s solution will have an immediate and significant impact on insurance
costs, product waste, regulatory compliance measures, and customer satisfaction. Our
technology and full solution are one-of-a-kind and the revenue model ensures future
margin and profit growth.
DegreeID 4
III. Company Overview
DegreeID offers a turn-key cold chain monitoring, tracking and reporting
solution. We provide an in-depth, customized approach with practical, executable results.
Our technology centers on state of the art RFID technology for the most accurate and cost
effective tracking of the environment and product location. Our expertise culminates by
utilizing specialized data analytics – turning data to business value.
DegreeID integrates powerful business intelligence tools that monitor product
throughout the cold chain, providing data and analytics to make better management
decisions. DegreeID utilizes a Cloud based solution to enable the user to see the entire
picture that lives inside your data. It highlights key performance metrics that matter,
presenting them clearly, intuitively, and entirely. DegreeID lets users customize how they
view the data most relevant to your business, and enabling 'drill-down' according to the
parameters desired.
It starts with the tag and ends with significant measureable impact to our client’s
bottom line. The tag is a rugged quartz piezoelectric crystal with a range up to 6 times
greater than some passive RFID tags available. The power and range of this tag allows
transmission through wet material such as pallets of fruit, beyond anything on the market
today. NASA engineers developed this SAW (surface acoustic wave) RFID tag to be
used for lunar exploration, to withstand the cold vacuum of space and transmit more
accurately and further than standard commercially available options (Arnoczy, A. March
2010).
Our transmitters, readers and antennas are specially selected to work with these
tags and the working environment. Whether on the farm, at the factory, in the
truck/plane/ship, a warehouse or other location the user has real time visibility to
temperature and location via our state of the art cloud based reporting platform.
DegreeID apps handle setting up tags, reading and reporting the data
collected. Dashboards are user-customizable and cover a broad range of functions from
thermal temperature mapping of rooms and transport vehicles to fine-tuning Best-When-
Used-By dates, monitoring shelf life by business process, and correlating product life
with human quality assessments. Perhaps products need to be tracked by temperature,
cost by shipment, non-temperature sensitive freight in proportion to refrigerated freight,
and even time-based criteria concerning your cold chain service performance. All this is
possible in graphical and easy-to-read form, while enabling you to send critical data to
third party warehouse management and enterprise resource planning systems or Excel®
with the click of a button, so that supply chain metrics can be shared with other areas of
your business. It’s all there with DegreeID–and more. It’s easy to use, easy to understand,
and best of all... easy to monitor.
Throughout this business plan, information gathered is used to describe the
industry need, deliver an analysis on DegreeID’s total solution package, and undergo a
problem/solution approach to identify the current industry state of affairs. We will
provide both issues and opportunities facing our company along with our defined
products and services, market analysis, strategy and implementation, commercialization
plan, and financial plan.
DegreeID 5
IV. Products and Services
Passive RFID tags are a popular option for tracking products. They are the
electronic version of an expanded bar code. Lightweight and requiring no battery, these
devices are inexpensive to the point of being disposable. The use of RFID tags and
readers provide improved tracking quality, inventory control, and overall knowledge and
metrics needed to enhance the users experience in multiple business markets.
DegreeID’s cold chain monitoring, tracking and reporting solution will utilize
state of the art RFID technology for the most accurate and cost effective tracking of the
environment and product location. The next stage in RFID technology is not just the
hardware but the ability of all components including the hardware, software, and users to
communicate and use the information effectively. The solution from DegreeID consists
of the hardware (Extended-Range Passive RFID sensor tags, transmitter/reader, antenna,
and tablet computer), custom web-based software, and services. Our packaged solution’s
competitive advantage is its 360 degree approach to addressing the needs of the industry,
including health and safety concerns, extended-range, improved accuracy with Real Time
Location, operating in extreme temperatures, extremely durable, and storing information
on the DegreeID Cloud.
SAW RFID Chip
SAW tags
Sender/Reader:
DegreeID 6
Hardware
The Extended-Range Passive RFID Sensor Tags were originally developed, by
researchers at NASA’s Johnson Space Center, to be used on the lunar surface with
temperatures ranging from +200 to -200 degrees Celsius (+392 to -328 degrees
Fahrenheit).This technology was designed for use as a Real Time Location System in
extreme environments and Extended-Range Passive RFID Sensor Tags are ideal for
temperature controlled environments. DegreeID RFID tag technology was tested for
increased range with improved accuracy and durability over current products, increasing
the range while decreasing reader power requirements. Unit cost $1.00 for 5,000 unit
order (similar cost to previous passive tags) (Arnoczy, A. March 2010).
This technology uses a pair of phase-matched RF tags coupled with a Van Atta
antenna array. These RF tags convert the incoming signal into a surface acoustic wave
(SAW), which is then encoded with the tag’s unique identification number as the wave
encounters a series of reflectors etched in the crystal. SAW RF devices are constructed of
piezoelectric quartz which enables them to excel in temperature controlled environments.
With the ID added, the modulated signal then converts back to electromagnetic energy
and is transmitted back to the sending unit. This unique technology requires a
sender/receiver (interrogator) plus an antenna. These items are sold by multiple vendors.
Price and range vary, but an average cost is 200-400 per unit covering up to 900 sq/ft.
Information is collected by a cellular connected tablet computer directly to a central
server. Software then converts the raw data to meaningful reports and graphic
information before it is sent back to both organizers and exhibitors in real-time (Fink, P.,
Kennedy, T., Lin, G. February 2007).
Web Based Software
The web based software component is customizable to fit the customer’s needs.
The software is designed to record, monitor, provide early warning detection, and data
analytics. This will ensure accurate and reliable readings, creating accountability across
the supply chain for products in temperature controlled environments.
DegreeID apps handle setting up tags, reading them and reporting the data collected.
Dashboards are user-customizable and cover a broad range of functions. Predictive analytic dashboards enable analysis of data, budgeting and forecasting, matching sales to inventory freshness, and score-carding suppliers and processes. The innovative part of the system will stimulate a new level of thinking about visibility, planning, purchasing and sourcing. DegreeID provides an integrated supply chain system built for tracking, tracing and monitoring. The system electronically captures “chain of custody” events for any product, from source to final destination and alerts to industry defined and custom parameters for product handling and potential contamination. The software can tie in scheduled procedures for supply planning, including replenishment, on hand and on order visibility.
DegreeID 7
Services
Business analytics, user alerts and dashboards offer visibility to problem areas or
potential “adverse events”. The cloud based platform will provide industry updates,
proficiency training, e-learning, vendor communication, blogs and notification of events.
DegreeID’s solution follows the software as a service model for low cost of entry for
clients and resulting in a monthly recurring revenue stream. The recurring revenue from
our services will be DegreeID’s core income component after the sales of hardware.
Competitive Analysis
Competitive products and technologies can be found in three main types of tags
including active, passive, and semi-passive tags. In temperature controlled environments
there are many contributing features and benefits that need to be addressed to succeed in
the industry. First is the ability of the tag to work in extreme temperatures, second is the
range of the signal, third the tags accuracy and ability for correct readings, forth is the
need for the tag to have a battery, fifth the need for re-useable/disposable tags, and sixth
its durability. See Table 1.1
Competitors include: Intelliflex, Temp Trip, Infratab, Harland Simon, and Zcura.
Intelliflex is one of the primary players in the industry offering the most comprehensive
tag and monitoring solution, but they utilize larger, more costly battery powered tags.
Both Temp Trip and Infratab offer specially developed tags for temperature monitoring,
along with unique active tag solutions that can report temperature data but are not helpful
in identifying location where potential issues occur. Harland Simon and Zcura use third
party sensors, readers, antennas etc. and act more as brokers and consultants to clients
looking to implement RFID technology. Zcura offers backend analytics and reporting
focused on supporting the healthcare industry.
Key Features Secondary Features
Proprietary
Hardware
Proprietary
Software
Proprietary
Analytic
Services
Real
Time
Passive RFID
Tag / No
Battery
C
om
pan
y
DegreeID X X X X X
Intelliflex X
Temp Trip
Infratab
Harland Simon X X
Zcura X X X
DegreeID 8
Intellectual Property Position
DegreeID will start negotiations with NASA for a 5% license agreement to the
NASA patent covering methods of manufacturing and all technical information
pertaining to Extended-Range Passive RFID Sensor Tags, originally developed by
researchers at NASA’s Johnson Space Center, till 2020. We also hold rights to the
DegreeID trademark and web site.
The software is a stand-alone deliverable product developed by an outside
company. Since DegreeID is engaging the developer for the purpose of creating a specific
software program, that is itself the “deliverable,” ownership of the program can be agreed
to by DegreeID and the developer. Ownership of all finished product software and
working papers will remain the sole rights of DegreeID.
Pricing and Fees
An overview of the pricing/fees associated with our products and services include the
following income items:
Test package (all items for test) $4,000
Tag $1.00
Software package (one-time fee per company) Tiered starting at $2,000
Sender/Receiver/Antenna $375
Tablet (w/software) and Install (1 per truck or location) $1,200 ( High Profit
Producer)
Recurring revenue: monthly user fee of $59/month
DegreeID 9
V. Market Analysis
The market analysis for DegreeID describes the value proposition, target market,
market segmentation, market needs, market trends, market growth, distribution patterns,
and competition and their buying patterns.
Value Proposition
The Value Proposition for DegreeID is providing the total packaged solution to
cold chain monitoring, reporting and analytics. In a low barrier-to-entry market the total
package providing the hardware, software, and service is currently unavailable by
competitors. In depth knowledge of customer patterns, technology used, and behaviors
creates the ability for DegreeID’s solution to a positive return on investment (ROI).
Minimizing existing waste, insurance claims, cost, disease, and illnesses caused by lack
of proper tracking and monitoring of metrics and data, will also provide customers with
an advantageous approach to achieving maximum ROI. The DegreeID solution enables
cold chain vendors to maintain and optimize the integrity of their shipments
We provide an in-depth, customized approach with practical, executable results.
The current limitations and problems to existing supply chain tracking and monitoring
RFID systems are: limit of range, inaccurate readings or misreads, the need for batteries
and replacement, the lack of temperature or pressure sensors, high power requirements,
line of sight, potential interference, and only feeding back raw data to readers. See Table
1.3-1.4
Current RFID technology for tracking food in temperature controlled
environments is a multi-billion dollar industry with limitations. The overall impact of
DegreeID’s solution increases desired range of readers, minimizes costs and expenses,
adheres to FDA regulations, as well as provides interactive web-based software and
services. The potential exists today for the 3 components of the total solution (hardware,
web-based software, and services) to be incorporated into a broad spectrum of
applications serving scientific, commercial, industrial, as well as government/ military
needs. Combining the extended range RFID, sensor tags, and customized software to read
and interpret the raw data collected, our product delivers a unique and advantageous
approach to solving major issues facing existing RFID technology.
DegreeID 10
Target Market
The potential for our product can benefit many markets. For our purpose the
target market for DegreeID is companies that handle specialized freight in temperature
controlled environments and their suppliers. The target markets for DegreeID are freight
forwarders and warehouses specializing in handling products requiring refrigeration.
There are two types of companies that market refrigeration trucking services:
1. Asset Based Logistics – Equipment owned by Company
2. Third Party Logistics (3PL) – Brokers using owner operators with their own
equipment
The target audience is the Asset Based Logistics companies because they have control of
the trucks, and sell “Value Added Solutions”
Companies contacted include:
BP Logistics; Fresno, CA 93722
Classic Carriers; Versailles, Ohio 45380
Gangloff Industries, Inc; Logansport, IN 46947
Burris Logistics; Lakeland, FL 33815
Jasko Enterprises; Leesburg, FL 34748
England Logistics; Salt Lake City, UT 84104
“There is a gap on RFID real-time tracking at an affordable price. No passive product on
the market can read a full trailer full of produce.” Jeremy Dailami, Cold Chain Director,
England Logistics.
“Integrating the product temperature, GPS and truck status into an automatic corrective
action in the fleet transport industry, is something we have looked for. By extending the
range of passive RFID’s you could not only monitor the precious cargo but also tire and
equipment health.” Steve Craig, Fleet Maintenance Director, Classic Carriers.
Key Buying Industries.
Key Buying industries that DegreeID will focus on delivering our product
to in the United States include: frozen food wholesaling, egg & poultry
wholesaling, beef and pork wholesaling, along with their transportation providers,
Supermarkets/Grocery stores, Specialty food stores, chain restaurants, single
location full-service restaurants, fast food restaurants, coffee and snack shops, and
Food Service Contractors (Setar, L. August 2013). See Table 1.5
Key Selling Industries
Key Selling industries located in the United States for DegreeID’s target
markets include: Frozen Food Production, Meat, Beef & Poultry Processing,
Seafood Preparation, Bread Production, and Juice Production in the US (Phillips,
J. September 2013). See Table 1.6
DegreeID 11
Market Segmentation
According, products and services that make up the market for local specialized
freight trucking in the US are: 24.7% local hazardous material 24.7%, 12.5% local
agriculture products trucking, 7.4% Local dump truck services, 5% other, 4.2% Local
auto carrier services, and 46.2% local food and beverage refrigerated transportation
services. “Local food and beverage refrigerated transportation services account for the
largest proportion of industry revenue with an estimated 46.2%. These services involve
transporting products that require a refrigerated or humidity-controlled environment such
as meat, poultry, seafood, processed foods, candy, dairy products and pharmaceuticals”
(Setar, L. August 2013). Accounting for nearly half of all specialized freight trucking
46.2% out of $36.7 billion revenue, which is about $17 billion in revenue for our market
segment.
Market Needs
“The FDA Food Safety Modernization Act (FSMA), the most sweeping reform of
our food safety laws in more than 70 years, was signed into law by President Obama on
January 4, 2011. It aims to ensure the U.S. food supply is safe by shifting the focus from
responding to contamination to preventing it.”(www.fda.gov) Food Safety and
precautionary measures are major issues facing companies’ worldwide which our total
packaged solution can address. DegreeID is in the business of selling solutions to the
problems facing temperature-controlled environments. Increased demand for
accountability throughout the supply chain, monitoring/gathering/sharing of information
of temperature controlled products fused with multiple new laws and regulations has
opened the door and created the need for DegreeID to meet these requirements. DegreeID
offers the total solution of hardware, software, and services to its customers.
DegreeID 12
“In early 2013, the FDA proposed two broad new rules to prevent the
contamination of produce and processed foods. Included are provisions for improved
record keeping, contingency plans for handling contamination outbreaks and measures to
prevent contamination before it happens, such as standards for water used in irrigation
and the separation of raw foods (which may contain bacteria) from cooked foods during
shipping and retailing”(Plunkettresearch.com). DegreeID’s central purpose is to provide
the total solution in food safety, quality, and healthy products transported in temperature
controlled environments. Our solution will enhance safety in temperature controlled
environments, providing accurate and reliable information needed for all members of the
supply chain.
Market needs and standards are continuously being improved on in order to
provide the highest quality products. “You see, one-third of all fresh produce shipped
goes bad before reaching the retailer, representing $35 billion worth of losses each year.
Some of those losses are actually covered by insurance claims” (Custer, J. Aug 2011).
Being able to prevent losses, increase profits and reduce costs of insurance underwriter
policies, while decreasing the amount of documentation and man hours needed to resolve
issues is a major concern in the industry and creates the need for DegreeID’s solution.
Market Trends
RFID technology and the need for efficient and effective ways to monitor
products in temperature-controlled environments are rapidly growing trends. Other
pressures creating demand for the DegreeID solution include: large losses in product
increase insurance premiums, current monitoring solutions provide scarce real time data,
chain of custody visibility does not provide enough information so there is no
accountability along supply line (typically a number of companies are involved), and
wide temperature variances during shipping and handling lead to product spoilage and
need to be monitored at all times.
Key Market Trends Include:
Improve the success rate of delivering a fresh product
Build prestige and increase the worth of their company with higher
success rates allowing more solid delivery guarantees.
Keep current clients happy and help them acquire new clients
Increase their profit/ minimize their insurance claims / smaller insurance
costs
Maintain safety of food/ minimize food borne health outbreaks – minimize
law suits
“The RFID industry is evolving. The whole industry is still in its infancy. There is
currently very little penetration into any market, including the transportation industry.
Estimates of penetration in the US are 2-5% with Europe being 12-15%. Everybody
knows it is going to take off, we are all just positioning our markets for that growth,”
(Lewis, M. November 2013). Both Insurance agencies and the FDA are moving towards
growing trends that push towards safety and preventative measures to improve the supply
chain. Claims and fines can account for billions of dollars in lost revenue and ROI.
DegreeID 13
Insurance Agencies
Insurance agencies provide cargo liability coverage to most companies
involved in transporting refrigerated food. Real time data would reduce losses and
pay-outs from both parties involved (insurance agencies and user). Real time
monitoring would also allow insurance agencies to determine which company
along the supply line failed to maintain the proper temperature controls.
Previously the spoiled food would arrive at its destination and it would not be
possible to know where in the supply line the spoilage had occurred. With real
time data the offending company could be determined and penalized, resulting in
decreased insurance premiums and providing additional incentive for cold chain
vendors to implement the DegreeID solution.
Food and Drug Administration
In 2011 the FDA passed the Food Safety Modernization act (FSMA).
According to the FDA website under FSMA the main trends the law is focused on
improving include: Inspections of records sec. 101, Hazard analysis and risk-
based preventative controls SEC 103, Performance Standards Sec 104, Standards
for produce safety Sec 105, Enhancing tracking and tracing of food and
recordkeeping Sec. 204, Authority to collect fees Sec. 107, Surveillance Sec. 205,
Improving the reportable food registry Sec. 211, Enhancing Food Safety Sec. 210
(www.fda.gov).
Market Growth
Steady demand and efficiency improvements are increasing market growth for
cold chain enterprises. “Over the short-term, companies will face increasing competition
due to the large number of industry participants, and increasing demands from consumers
for additional services, timeliness and pricing. The number of enterprises is forecast to
increase only marginally over the next five years. During this time, companies in related
trucking industries will enter the industry to capitalize on better profitability, even as less-
efficient operators struggle under slowing demand. Market power is expected to be more
concentrated, with the largest players becoming more dominant” (Setar, L. August 2013).
Our solution is entering a market that is in the early adoption phase for this type of
service and being first to market a solution to an industry this early in its life cycle will
benefit our marketing and sales team. Through our marking and implementation
guidelines and timeframes, DegreeID is able to focus on overcoming minimal barriers to
entry in a continually growing market. The need for safety and accountability throughout
the supply chain are providing pressure in the market to use technologies developed to
address these needs. Continual growth in the market is ideal for a startup business to enter
a developing market, set new and improved standards and guidelines, overcome barriers
to entry and gain valuable market share.
DegreeID 14
Distribution Patterns
In this industry, distribution depends on direct sales to food and beverage
refrigerated transportation services. DegreeID’s total solution will not be sold to retail
stores but rather to the transportation companies providing the service to many retail
giants. Through direct sales efforts and long-term contracts, DegreeID is focused on
delivering the solution to the refrigerated supply chain services vendors. The long-term
contracts for our products and services create recurring revenue stream.
Competition and Buying Patterns
During an interview conducted, Tim Nosco asked “We are looking at
opportunities for technology research and preparing example business plans for possible
startups…I was wondering if you might be able to suggest a relatively inexpensive SAW
for RFID’s that would sense temperature changes for cold food storage transportation.”
Response from Dr. Gudrun Bruckner, Project Manager CTR Carinthian Tech
Research AG, “ From the technical point temperature logging for food transportation is
feasible…You should be aware, that usually the tag or temperature sensor, the reading
and receiving antenna and also the architecture of the reader should be adapted to the
needs of the application. Unfortunately SAW reading systems are generally not cheap, as
they are (so far) produced in very small volumes. That can be changed by an application
that drives high volume production and by clever integration in an existing system (e.g.
reuse of available data processing or data transferring units).”
Transportation Competition
“External competition for the Freight Trucking sector Local specialized
freight trucking faces competition from other industries including the Local
Freight Trucking industry (IBISWorld report 48411) and the Couriers and Local
Delivery Services industry (IBISWorld report 49222). Competition is primarily
dependent on fuel efficiency, price, technology developments, constant labor
needs, reliability, time sensitivity and freight volumes. External competition is
expected to remain steady in 2013” (Setar, L. August 2013).
Technology Competition
Most trucks have temperature monitors on the wall or on the floor, but
those devices don't accurately indicate the temperature of all food in the truck, nor
is it real time data. Many of the existing solutions only provide information at
beginning and end of supply chains leaving a big gap throughout the entire
process. The Possible competitive alternatives include: Intelliflex, ZCURA,
Harland Simon, Temp Trip, and Infratab.
DegreeID 15
Possible Competition
1: Intelliflex
Intelliflex developed XC3 Technology® to enable a wide range of new Battery
Assisted Passive technologies RFID solutions. Read longer distances between tags and
readers, monitor temperatures inside containers, packaging without opening the package
increase read reliability, read around challenging materials such as metal, liquid, etc. and
use active RFID capabilities, but at a significantly lower cost.
2: ZCURA
ZCURA, offers the Intelligent Temperature Sensor. By using 13.56 MHz
programmable RFID tag, the user can set the time intervals for recordings and the
temperature range that products should fall within. The tag is capable of storing up to 4
million temperature readings. Set up is minimal and training is almost non-existent. Place
the tag in the shipping unit or in the storage location and the tag does the rest. When a
shipment comes in or it's time to get a storage reading, simply pass the interrogator
within 6 inches of the tag and read the screen.
3: Harland Simon
Harland Simon offers a wireless temperature monitoring solution to meet MHRA
standards. They offer a monitoring solution which is cost-effective due to it leveraging
the existing Wi-Fi infrastructure for a lower cost solution compared to alternatives. The
Harland Simon temperature monitoring solution enables a smooth and optimal
deployment and is designed to ensure regulatory compliance, improve patient safety and
increase operational efficiency.
4: Temp Trip
TempTrip's RFID-enabled digital temperature-trackers eliminate the need to
handle each device, and allow a user to wirelessly collect the temperature logs from each
tag, using an RFID reader and Web-based software. The device provides temperature-
tracking tags and readers to producers and shippers of food and perishable drugs. These
customers can order the tags online, and have them set with the temperature thresholds
appropriate for the particular items they are shipping.
5: Infratab
Infratab's tags are electronic. They consist of chip that senses temperature and
integrates it over time to determine the shelf life of a product. That information can be
communicated via RFID. The tags also have a battery and an optional visual display that
provides green, yellow and red indicators of the status of the item. So if a temperature-
sensitive product was left sitting on a warehouse dock on a sunny day, the label would
recalculate the shelf-life and would show red, warning workers that the product is no
longer safe to sell.
DegreeID 16
VI. Strategy and Implementation Summary
DegreeID will focus its strategy and implementation process on brand experience
as opposed to investing large sums of money into multiple brand awareness campaigns.
This will help build customer loyalty focusing on successful products to provide our
clientele. Major first year milestones for DegreeID are as follows: 1. Conduct
environmental scan, 2. Hire necessary staff to marketing, sales, and customer support, 3.
Take product to test market (implement and evaluate), 4. Refine product and customer
services which will provide ongoing support.
First in the marketing strategy is the ongoing market research, started Q3 2013,
which has been a continuous analysis and interpretation of our competitive environment.
Research and development, including cold calls to prospective clients, competition, and
engineers have occurred and resulted in valuable insight into our market.
The next phase for DegreeID is to focus on key marketing, sales, and customer
support matrixes (product, distribution/place, promotion, and pricing) and customer
satisfaction. Strategies begin taking our total solution to social media, web, tradeshows
and seminars including the RFID Seminar 2014.
Next in the sales process will be to generate quality leads to introduce DegreeID’s
solution . Five beta customers will be identified and selected by our sales/marketing team
to undergo the prototype testing and begin DegreeID’s introduction of its solution to the
market. Once our beta customers have used the total solution for 3 months, we can begin
to understand the pros/cons, assumptions, extra benefits/setbacks of our solution by
conducting an internal SWOT analysis.
After the beta period we can review assumptions, see how people actually use the
solution , fix issues, and evaluate timetables and milestones, and Once the DegreeID
solution has undergone thorough analysis and is market tested/evaluated and necessary
adjustments and modifications have been made, a quality and reliable product marketing
blitz can take place which will be based off measurable data from our test group of
customers. Our Goal is to have very aggressive numbers for sales in months 12-36, 140
businesses implemented, months 17-24, 310 businesses implemented months 25-36.
See Below Chart for DegreeID marketing and implementation timelines.
DegreeID 17
Plan
PLAN PLAN
ACTIVITY START DURATION PERIODS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Identify problem/opportunity markets 1 6
Research Gather primary data 1 2
Cold Calls 1 6
Network – trade shows and seminars 6 24
Track and generate quality leads 3 27
Develop policies and procedures documentation 1 6
Create Public Relations strategy 6 3
Hire missing components of sales/marketing team 3 2
Train sales/marketing team 5 9
Develop website/test/retest 3 6
Hire customer support team 10 3
Train customer support team 10 3
Input from board of directors 1 27
Input/feedback from prospective customers 9 3
Track results update/correct issues needing attention 9 12
Monitor Market- On going, continual 6 24
Announce total solution package to market ( product launch ad campaign) 9 3
Identify correct marketing methods: advertisements, word of mouth, 12 6
Implement Marketing blitz for product release, roll out soft launch/hard launch9 6
Identify 5 Beta customers to start testing beginning of Q3 2014 12 3
Expand Customer Support Team 12 12
Expand Sales Force 12 12
$2
0,0
00
$1
20
,00
0
$9
0,0
00
$5
0,0
00
$9
0,0
00
$1
00
,00
0
Payb
ack S
tarts
($1
00
,00
0)
($1
00
,00
0)
($1
00
,00
0)
($1
00
,00
0)
($7
0,0
00
)
Degree ID - Marketing
Investor
Credit Line
DegreeID 18
VII. Commercialization Plan
Plan
PLAN PLAN
ACTIVITY START DURATION PERIODS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
VC Presentation 1 1
Articles of Inc. 1 1
Negotiate License NASA 1 1
SAW Tag Development 1 3
Tag Manufactures Agreements 3 1
Reader Testing 2 4
Initial Production Tag Manufacture 4 3
Reader Manufacture Agreements 3 1
Antenna Testing 2 4
Initial Software Development 1 6
Total System Testing 7 3
Field Testing Customers 10 3
Software Adjustments to Testing 7 6
Production Planning 7 6
Analyze Equipment 13 3
Analyze Software 12 1
Software Updates Quarterly Year 2 Q1 13 3
Software Updates Quarterly Year 2 Q2 16 3
Software Updates Quarterly Year 2 Q3 12 5
Software Updates Quarterly Year 2 Q4 12 6
$2
0,0
00
$1
20
,00
0
$9
0,0
00
$5
0,0
00
$9
0,0
00
$1
00
,00
0
Pa
yb
ac
k S
tarts
($1
00
,00
0)
($1
00
,00
0)
($1
00
,00
0)
($1
00
,00
0)
($7
0,0
00
)
Degree ID - Product
Investor
Credit Line
DegreeID 19
VIII. Financial Plan
Financial charts below include: Working Capital Needs, Cash Flows Years 1-3,
Income Statement Years 1-3, and Revenue by Product Line. See Full Financial Plan in
Appendices
Cash Needs
Ask $200k for initial stock investment
Plus Working Capital of $470
Cash Flows Year 1 Totals Year 2 Totals Year 3 Totals
Total Cash Inflows $329,625 $2,228,308 $5,052,730
Total Cash Outflows $687,284 $2,325,488 $4,564,797
Net Cash Flows ($357,659) ($97,180) $487,933
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Working Capital Schedule
Amount
+$20,000
+$120,000
+90,000
+$50,000
+$90,000
+$100,000 (-$100,000)
(-$100,000)
(-$100,000)
(-$100,000)
(-$70,000)
DegreeID 20
Income Statements 2014 % 2015 % 2016 %
Total Revenue $390,703 100% $2,521,604 100% $5,121,672 100%
Total Cost of Goods Sold $216,415 55% $1,382,095 55% $2,688,910 53%
Gross Margin $174,288 45% $1,139,509 45% $2,432,762 47%
Payroll $415,708 106% $545,837 22% $879,560 17%
Total Operating Expenses $76,650 20% $223,348 9% $474,850 9%
Income (Before Other Expenses) ($318,070) -81% $370,324 15% $1,078,351 21%
Total Other Expenses $38,671 10% $60,328 2% $35,490 1%
Net Income Before Income Tax ($356,741) -91% $309,996 12% $1,042,861 20%
Income Tax $0 0% $66,199 3% $212,772 4%
Net Income/Loss ($356,741) -91% $243,796 10% $830,089 16%
Revenue by Product Line
For Month 36
(Dec 2016) Gross Profit Percent
Hardware $16,300 8%
Enterprise Software $76,000 39%
Recurring Monthly Revenue
Stream $103,000 53%
Total ($380K Sales)
$195,300 100%
DegreeID 21
IX. Management
Tim Nosco
Chief Financial Officer / Co-founder
As an Entrepreneur and Fortune 50 executive for Kraft Foods Int’l, Mr.
Nosco has played a leadership role in a previous start-up company as
well as a publicly traded corporation. Tim is part of the dynamic
management team building DegreeID Inc. into a leader in the world of
long-range passive RFIDs.
Mr. Nosco holds a BBA in Accounting from Cleveland State University and
enjoyed an 8-year career in the CPA industry before moving into sales and marketing for
the number one pressure sensitive handler in the US, Excello Specialty. He then was a
regional Manager of Sales for the heavy equipment finance division for Wells Fargo. His
start-up company, Tiger Paws, Inc. was a leader in manufacturing and sales of snow plow
wear equipment to State DOT’s and the Federal Government.
Matt Malinosky, MBA
Vice President Quality Assurance / Co-founder
Mr. Malinosky provides organizational core competencies for
building a strong foundation: resourceful, technically sound, with clear
understanding of goals and directives creating a result oriented
atmosphere with intense dedication to documentation and meeting major
milestones within the team. Provide structure, creative ideas, direction
and follow through, encourage continuous improvement through qualitative and
quantitative research gathered and documentation provided. Deliver leadership, total
quality management, communication, and organization.
Mr. Malinosky holds a Bachelor of Business Administration, major Marketing
from the University of North Florida and a Master’s in Business Administration from the
University of Phoenix. Accumulated and Developed over 15 years business experience
with a wide array of skills through key understanding in multiple industries including
packing/shipping logistics and product development, Healthcare, staffing, Information
Technology (data lines and phone repair) and install specialist, marketing coordinator,
Inter-company accounting, Remittance Service Center (billing and reconciliation), and
monitor total sales production providing detailed reporting to all positions.
DegreeID 22
Mary McCarthy
Vice President of Sales and Marketing / Co-founder
Mary McCarthy is a Marketing and Business Management Professional
actively involved with many Pinellas County Entrepreneur
Associations. Mary is Tech loving and brings with her proven
management skills. She is also a graphic artist able to use the creative side with a proven
television production history for customer meetings and media events. Mary’s
Communications B.A. degree from Wayne State University helps to transfer her vision
on complex business projects into simple and understandable terms.
Jessica Shaw
Vice President of Information Technology / Co-founder
Jessica brings her extensive experience using formal systems
development lifecycle (SDLC) methodologies on large IBM mainframes
to DegreeID. She is excited about using her sixteen years as a
Programmer/Analyst with Hanover Insurance in Worcester MA. Her proven ability to
lead complex projects performing full lifecycle development, all phases of testing, and
implementation is a perfect match for the challenges of a integrating the hardware and
software solutions at DegreeID. Jessica’s experience in production support, training and
end-users in proprietary software development, will provide DegreeID with competencies
needed to move DegreeID into the elite of RFID solution providers.
Dwayne Leininger
Vice President of Operations / Co-founder
Dwayne brings experience as a vendor, a client and a sales professional
giving perspective and understanding to create and execute win/win
solutions. Direct marketing has been front and center in his career and
provides an analytical frame of reference to develop, define and
determine the data needed to make decisions.
Dwayne has been part of several start-ups and spent the past 5 years involved in
all aspects of supply chain operations, making him uniquely qualified to manage all
operations for DegreeID. .
DegreeID 23
X. Conclusion
DegreeID will be a major player in the tracking and monitoring of temperature
controlled environments. Our solution will become the industry standard. Marketing our
solution towards food safety, precautionary/preventative measures, and accountability
will be DegreeID’s strategic marketing directive. These major concerns are facing
companies’ worldwide DegreeID addresses these concerns more completely than all
other options. DegreeID offers the complete solution in integrated logistics and supply
chain management through its hardware, web-based software, and services. The
evolution in RFID technology and increase in safety requirements for temperature-
controlled environments along with minimal competitors in a multi-billion dollar industry
are creating the expanded need for DegreeID.
In the United States producers, retailers and insurers in in the cold chain industry
are being held accountable from beginning to the end of the supply chain. New rules and
regulations derived from the Food and Drug Administration, signed by president Obama
in 2013, are in the early stages of using advanced technology to enhance safety
requirements that benefit all consumers. New health code standards create the demand for
Real Time Location and temperature monitoring which can be provided by DegreeID
DegreeID offers a turn-key cold chain monitoring, tracking and reporting
solution. Utilizing state of the art RFID technology for the most accurate and cost
effective tracking of the environment and product location. It begins with our state of the
art RFID tag and ends with significant measureable impact to our clients’ bottom line.
DegreeID 24
XI. Appendices
Products and Services
Table 1.1 Products Competitive Analysis
Key Features
Extreme
Temperatures
Extended
Range
Increased
Accuracy
Battery
Required
Disposable /
Re-Useable Rugged
Com
pet
itiv
e P
rod
uct
s
Extended-Range
Passive RFID X X X X X
UHF Passive X X X
Semi-Passive X X
Active X
DegreeID 25
Market Analysis
Table 1.3 Value Proposition
Hardware, Web-Based Software, Services
Feature
Optimize the complete supply chain by covering all aspects
of monitoring, recording, and tracking product metrics
through the total solution of hardware, web-based software,
and services. Increased accountability for all involved in
supply chain
Benefit
Extended range, increased accuracy, extreme temperatures,
rugged/last longer, lower weight, no batteries, lower size,
pressure sensing, disposable, lower costs, decreased power
requirements, customized web-based software and cloud
interface
Extended Benefit
Save lives, minimize waste, increased preventative
measures, and compliance with regulations set forth by the
FDA
Table 1.4 Example: Temperature and Pressure Controlled Environments
Temperature and Pressure Controlled Environments
Feature
Extended Range Passive RFID and Sensor Tag in food
processing and distribution
Benefit
Increased accuracy and reliability of product temperature for
both transportation and storage
Extended Benefit
Healthy food, better quality and standards
DegreeID 26
Table 1.5 KEY BUYING INDUSTRIES
42442 Frozen Food Wholesaling in the US Companies in this industry use refrigerated
van services for local delivery of frozen food.
42444 Egg & Poultry Wholesaling in the US Egg and poultry products must be
transported by refrigerated vans.
42447 Beef & Pork Wholesaling in the US Refrigerated van services are used to deliver
beef and pork products (Setar, L. August 2013).
42441 Grocery Wholesaling in the US Grocery wholesalers make up the largest source of
immediate sales for frozen food processors.
44511 Supermarkets & Grocery Stores in the US Some large supermarket chains have the
purchasing power to buy directly from the manufacturer.
44512 Convenience Stores in the US Convenience stores are a modest source of
immediate sales for frozen food processors.
62421 Community Food Services in the US Community food services make up a
relatively minor market, but this segment does purchase some food from manufacturers.
72231 Food Service Contractors in the US Food service contractors buy frozen food to
prepare meals. They are becoming an increasingly important market for frozen food
producers.
72233 Street Vendors in the US Street vendors buy frozen food as an ingredient to their
meal preparations. They have become an important market for frozen food producers
(Everett, N. August 2013).
44529 Specialty Food Stores in the US Specialty food stores demand a variety of frozen
food products from this industry for store sales.
72211a Chain Restaurants in the US Chain restaurants demand a variety of frozen food
products from this industry to use in meal preparation.
72211b Single Location Full-Service Restaurants in the US Single location full-service
restaurants demand a variety of frozen food products from this industry for use in meal
preparation.
72221a Fast Food Restaurants in the US Fast food restaurants demand a variety of frozen
food products from this industry for preparing fast food products.
72221b Coffee & Snack Shops in the US Coffee and snack shops demand a variety of
frozen food products from this industry for preparing fast food products.
DegreeID 27
72231 Food Service Contractors in the US Food service contractors demand a variety of
frozen food products from this industry. Phillips, J. (September 2013).
Table 1.6 KEY SELLING INDUSTRIES
31141 Frozen Food Production in the US The Frozen Food Production industry supplies
frozen juice, fruits, vegetables and other food products (excluding seafood, meat, poultry,
dairy and baked goods) to this industry.
31161 Meat, Beef & Poultry Processing in the US The Meat, Beef & Poultry Processing
industry supplies frozen meat and poultry products to this industry.
31171 Seafood Preparation in the US The Seafood Preparation industry supplies frozen
seafood products to this industry.
31181 Bread Production in the US The Bread Production industry supplies bread and
other baked goods to this industry.
31211c Juice Production in the US The Juice Production industry supplies frozen drink
products to this industry (Phillips, J. September 2013).
DegreeID 28
Financial Plan
Prepared By: Company Name:
Tim Nosco DEGREE ID
Fixed Assets Amount Depreciation (years)
Real Estate-Land Not Depreciated
Real Estate-Buildings 20
Leasehold Improvements 7
Equipment 7
Furniture and Fixtures 11,000 5
Vehicles 5
Software Development 30,000 5
Total Fixed Assets 41,000$
Operating Capital Amount
Pre-Opening Salaries and Wages 30,000
Prepaid Insurance Premiums
Inventory
Legal and Accounting Fees 20,000
Rent Deposits 2,000
Utility Deposits
Supplies 2,000
Advertising and Promotions 1,000
Licenses 2,000
Other Initial Start-Up Costs 6,000
Working Capital (Cash On Hand) 106,000
Total Operating Capital 169,000$
Total Required Funds 210,000$
Sources of Funding Percentage Totals Loan Rate Term in Months Monthly Payments Notes
Owner's Equity 4.76% 10,000
Outside Investors 95.24% 200,000
Additional Loans or Debt
Commercial Loan 0.00% 9.00% 84 -
Commercial Mortgage 0.00% 9.00% 240 -
Credit Card Debt 0.00% 7.00% 60 -
Vehicle Loans 0.00% 6.00% 48 -
Other Bank Debt 0.00% 5.00% 36 -
Total Sources of Funding 100.00% 210,000$ -$
Total Funding Needed -$
Notes
Notes
You are fully funded (Balanced)
Electrical Engineering - Contracted Out
Cell D 42 must equal cell C31
Start-up Expenses Year 1 (Starting Balance Sheet)
DegreeID 29
Payroll Year 1
Prepared By: Company Name:
Tim Nosco DEGREE ID
Employee Types
Number of
Owners
/Employees
Average Hourly
Pay (to 2
decimal places,
ex. $15.23)
Estimated
Hrs./Week
(per person)
Estimated
Pay/Month (Total) January February March April May June July August
Septembe
r October November December Annual Totals
Owner(s) 4 31.25 40 21,667$ 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 260,000$
Full-Time Employees 2 12.00 40 4,160$ 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 49,920$
Part-Time Employees -$ - - - - - - - - - - - - -$
Independent Contractors 1 38.46 40 6,666$ 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 79,997$
Total Salaries and Wages 7 81.71$ 120 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 32,493$ 389,917$
Payroll Taxes and Benefits Wage Base Limit
Percentage of
Salary/Wage
Estimated Taxes &
Benefits/Month
(Total) January February March April May June July August
Septembe
r October November December Annual Totals
Social Security 110,111$ 6.20% 1,601$ 1,601 1,601 1,601 1,601 1,601 1,601 1,601 1,601 1,601 1,601 1,601 1,601 19,215$
Medicare -- 1.45% 374$ 374 374 374 374 374 374 374 374 374 374 374 374 4,494$
Federal Unemployment Tax (FUTA) 7,000$ 0.80% 33$ 33 33 33 33 33 33 33 33 33 33 33 33 392$
State Unemployment Tax (SUTA) 7,000$ 3.45% 141$ 141 141 141 141 141 141 141 141 141 141 141 141 1,691$
Employee Pension Programs -- 0.00% -$ - - - - - - - - - - - - -$
Worker's Compensation -- 0.00% -$ - - - - - - - - - - - - -$
Employee Health Insurance -- 0.00% -$ - - - - - - - - - - - - -$
Other Employee Benefit Programs -- 0.00% -$ - - - - - - - - - - - - -$
Total Payroll Taxes and Benefits 11.90% 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 2,149$ 25,791$
Total Salaries and Related Expenses 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 415,708$
DegreeID 30
Payroll Years 1-3
Prepared By:
Tim Nosco
Employee Types
Year 1
Totals
Growth Rate 1 to
2
Second
Year
Growth Rate 2 to
3 Third Year
Owner(s) 260,000 5.0% 273,000 5.0% 286,650
Full-Time Employees 49,920 200.0% 149,760 200.0% 449,280
Part-Time Employees - 5.0% - 5.0% -
Independent Contractors 79,997 20.0% 95,996 20.0% 115,195
Total Salaries and Wages 389,917$ 518,756$ 851,125$
Payroll Taxes and Benefits
Social Security 19,215 5.0% 20,176 5.0% 21,185
Medicare 4,494 5.0% 4,719 5.0% 4,954
Federal Unemployment Tax (FUTA) 392 5.0% 412 5.0% 432
State Unemployment Tax (SUTA) 1,691 5.0% 1,775 5.0% 1,864
Employee Pension Programs - 0.0% - 0.0% -
Worker's Compensation - 3.0% - 3.0% -
Employee Health Insurance - 3.0% - 3.0% -
Other Employee Benefit Programs - 10.0% - 10.0% -
Total Payroll Taxes and Benefits 25,791$ 27,081$ 28,435$
Total Salaries and Related Expenses 415,708$ 545,837$ 879,560$
Company Name:
DEGREE ID
DegreeID 31
Prepared By: Company Name:
Tim Nosco
Product Lines Units Sales Price
Per Unit
COGS Per
UnitMargin Per Unit
Starting Package 1 4,000.00$ 2,050.00$ 1,950.00$
SAW RFID Tags 1 1.00$ 0.65$ 0.35$
Sender/Receiver/Antenna 1 375.00$ 325.00$ 50.00$
Enterprise Software License 2 2,000.00$ 700.00$ 1,300.00$
Tablet/Software per unit 1 1,200.00$ 700.00$ 500.00$
Recurring Monthly Cloud Based Fee 1 59.00$ 20.00$ 39.00$
Product Lines January February March April May June July August September October November December Annual Totals
Category
Breakdown Category / Total
Starting Package
1 Sold 4 5 5 10 4 5 33 0.1%
Total Sales - - - - - - 16,000 20,000 20,000 40,000 16,000 20,000 132,000$ 100.0% 33.8%
Total COGS - - - - - - 8,200 10,250 10,250 20,500 8,200 10,250 67,650$ 51.3% 31.3%
Total Margin - - - - - - 7,800 9,750 9,750 19,500 7,800 9,750 64,350$ 48.8% 36.9%
SAW RFID Tags
1 Sold 5,000 20,000 10,000 10,000 45,000 98.5%
Total Sales - - - - - - 5,000 - - 20,000 10,000 10,000 45,000$ 100.0% 11.5%
Total COGS - - - - - - 3,250 - - 13,000 6,500 6,500 29,250$ 65.0% 13.5%
Margin - - - - - - 1,750 - - 7,000 3,500 3,500 15,750$ 35.0% 9.0%
Sender/Receiver/Antenna
1 Sold 25 50 10 10 95 0.2%
Total Sales - - - - - - 9,375 - - 18,750 3,750 3,750 35,625$ 100.0% 9.1%
Total COGS - - - - - - 8,125 - - 16,250 3,250 3,250 30,875$ 86.7% 14.3%
Margin - - - - - - 1,250 - - 2,500 500 500 4,750$ 13.3% 2.7%
Enterprise Software License
2 Sold 5 10 2 2 19 0.0%
Total Sales - - - - - - 10,000 - - 20,000 4,000 4,000 38,000$ 100.0% 9.7%
Total COGS - - - - - - 3,500 - - 7,000 1,400 1,400 13,300$ 35.0% 6.1%
Margin - - - - - - 6,500 - - 13,000 2,600 2,600 24,700$ 65.0% 14.2%
Tablet/Software per unit
1 Sold 25 50 10 10 95 0.2%
Total Sales - - - - - - 30,000 - - 60,000 12,000 12,000 114,000$ 100.0% 29.2%
Total COGS - - - - - - 17,500 - - 35,000 7,000 7,000 66,500$ 58.3% 30.7%
Margin - - - - - - 12,500 - - 25,000 5,000 5,000 47,500$ 41.7% 27.3%
Recurring Monthly Cloud Based Fee
1 Sold 0 0 0 0 0 0 29 34 39 99 113 128 442 1.0%
Total Sales - - - - - - 1,711 2,006 2,301 5,841 6,667 7,552 26,078$ 100.0% 6.7%
Total COGS - - - - - - 580 680 780 1,980 2,260 2,560 8,840$ 33.9% 4.1%
Margin - - - - - - 1,131 1,326 1,521 3,861 4,407 4,992 17,238$ 66.1% 9.9%
Total Units Sold 0 0 0 0 0 0 5,088 39 44 20,219 10,139 10,155 45,684
Total Sales -$ -$ -$ -$ -$ -$ 72,086$ 22,006$ 22,301$ 164,591$ 52,417$ 57,302$ 390,703$
Total Cost of Goods Sold -$ -$ -$ -$ -$ -$ 41,155$ 10,930$ 11,030$ 93,730$ 28,610$ 30,960$ 216,415$
Total Margin -$ -$ -$ -$ -$ -$ 30,931$ 11,076$ 11,271$ 70,861$ 23,807$ 26,342$ 174,288$
Sales Forecast Year 1
Complete This Chart First:
DEGREE ID
DegreeID 32
Sales Forecast Year 1-3
Prepared by: Company Name:
Tim Nosco
Growth Rate Year 1 to Year 2:
Growth Rate Year 2 to Year 3:
Product Lines Year 1 Totals January February March April May June July August September October November December Year 2 Totals
Category
Breakdown
Category /
Total January February March April May June July August September October November December
Year 3
Totals
Category
Breakdown
Category /
Total
Starting Package
1 Sold 33 4 15 10 10 10 10 10 20 10 10 5 2 116 0.0% 4 4 4 6 6 6 6 6 6 4 4 4 60 0.0%
Total Sales 132,000$ 16,000 60,000 40,000 40,000 40,000 40,000 40,000 80,000 40,000 40,000 20,000 8,000 464,000$ 100.0% 0.0% 16,000 16,000 16,000 24,000 24,000 24,000 24,000 24,000 24,000 16,000 16,000 16,000 240,000$ 100.0% 0.0%
Total COGS 67,650$ 8,200 30,750 20,500 20,500 20,500 20,500 20,500 41,000 20,500 20,500 10,250 4,100 237,800$ 51.3% 0.0% 8,200 8,200 8,200 12,300 12,300 12,300 12,300 12,300 12,300 8,200 8,200 8,200 123,000$ 51.3% 0.0%
Total Margin 64,350$ 7,800 29,250 19,500 19,500 19,500 19,500 19,500 39,000 19,500 19,500 9,750 3,900 226,200$ 48.8% 0.0% 7,800 7,800 7,800 11,700 11,700 11,700 11,700 11,700 11,700 7,800 7,800 7,800 117,000$ 48.8% 0.0%
SAW RFID Tags
1 Sold 45000 5,000 5,000 5,000 10,000 10,000 10,000 15,000 20,000 20,000 30,000 30,000 10,000 170,000 0.0% 30,000 30,000 30,000 50,000 50,000 50,000 50,000 50,000 50,000 30,000 30,000 10,000 460,000 0.0%
Total Sales 45,000$ 5,000 5,000 5,000 10,000 10,000 10,000 15,000 20,000 20,000 30,000 30,000 10,000 170,000$ 100.0% 0.0% 30,000 30,000 30,000 50,000 50,000 50,000 50,000 50,000 50,000 30,000 30,000 10,000 460,000$ 100.0% 0.0%
Total COGS 29,250$ 3,250 3,250 3,250 6,500 6,500 6,500 9,750 13,000 13,000 19,500 19,500 6,500 110,500$ 65.0% 0.0% 19,500 19,500 19,500 32,500 32,500 32,500 32,500 32,500 32,500 19,500 19,500 6,500 299,000$ 65.0% 0.0%
Margin 15,750$ 1,750 1,750 1,750 3,500 3,500 3,500 5,250 7,000 7,000 10,500 10,500 3,500 59,500$ 35.0% 0.0% 10,500 10,500 10,500 17,500 17,500 17,500 17,500 17,500 17,500 10,500 10,500 3,500 161,000$ 35.0% 0.0%
Sender/Receiver/Antenna
1 Sold 95 5 10 10 10 20 40 50 100 150 150 150 100 795 0.0% 50 200 200 100 100 100 100 200 200 100 100 100 1,550 0.0%
Total Sales 35,625$ 1,875 3,750 3,750 3,750 7,500 15,000 18,750 37,500 56,250 56,250 56,250 37,500 298,125$ 100.0% 0.0% 18,750 75,000 75,000 37,500 37,500 37,500 37,500 75,000 75,000 37,500 37,500 37,500 581,250$ 100.0% 0.0%
Total COGS 30,875$ 1,625 3,250 3,250 3,250 6,500 13,000 16,250 32,500 48,750 48,750 48,750 32,500 258,375$ 86.7% 0.0% 16,250 65,000 65,000 32,500 32,500 32,500 32,500 65,000 65,000 32,500 32,500 32,500 503,750$ 86.7% 0.0%
Margin 4,750$ 250 500 500 500 1,000 2,000 2,500 5,000 7,500 7,500 7,500 5,000 39,750$ 13.3% 0.0% 2,500 10,000 10,000 5,000 5,000 5,000 5,000 10,000 10,000 5,000 5,000 5,000 77,500$ 13.3% 0.0%
Enterprise Software License
2 Sold 19 1 2 2 2 4 8 10 20 30 30 30 20 159 0.0% 10 40 40 20 20 20 20 40 40 20 20 20 310 0.0%
Total Sales 38000 2,000 4,000 4,000 4,000 8,000 16,000 20,000 40,000 60,000 60,000 60,000 40,000 318,000$ 100.0% 0.0% 20,000 80,000 80,000 40,000 40,000 40,000 40,000 80,000 80,000 40,000 40,000 40,000 620,000$ 100.0% 0.0%
Total COGS 13,300$ 700 1,400 1,400 1,400 2,800 5,600 7,000 14,000 21,000 21,000 21,000 14,000 111,300$ 35.0% 0.0% 7,000 28,000 28,000 14,000 14,000 14,000 14,000 28,000 28,000 14,000 14,000 14,000 217,000$ 35.0% 0.0%
Margin 24,700$ 1,300 2,600 2,600 2,600 5,200 10,400 13,000 26,000 39,000 39,000 39,000 26,000 206,700$ 65.0% 0.0% 13,000 52,000 52,000 26,000 26,000 26,000 26,000 52,000 52,000 26,000 26,000 26,000 403,000$ 65.0% 0.0%
Tablet/Software per unit
1 Sold 95 5 10 10 10 20 40 50 100 150 150 150 100 795 0.0% 50 200 200 100 100 100 100 200 200 100 100 100 1,550 0.0%
Total Sales 114,000$ 6,000 12,000 12,000 12,000 24,000 48,000 60,000 120,000 180,000 180,000 180,000 120,000 954,000$ 100.0% 0.0% 60,000 240,000 240,000 120,000 120,000 120,000 120,000 240,000 240,000 120,000 120,000 120,000 1,860,000$ 100.0% 0.0%
Total COGS 66,500$ 3,500 7,000 7,000 7,000 14,000 28,000 35,000 70,000 105,000 105,000 105,000 70,000 556,500$ 58.3% 0.0% 35,000 140,000 140,000 70,000 70,000 70,000 70,000 140,000 140,000 70,000 70,000 70,000 1,085,000$ 58.3% 0.0%
Margin 47,500$ 2,500 5,000 5,000 5,000 10,000 20,000 25,000 50,000 75,000 75,000 75,000 50,000 397,500$ 41.7% 0.0% 25,000 100,000 100,000 50,000 50,000 50,000 50,000 100,000 100,000 50,000 50,000 50,000 775,000$ 41.7% 0.0%
Recurring Monthly Cloud Based Fee
1 Sold 442 137 162 182 202 232 282 342 462 622 782 937 1,039 5,381 0.0% 1,093 1,297 1,501 1,607 1,713 1,819 1,925 2,131 2,337 2,441 2,545 2,649 23,058 0.0%
Total Sales 26,078$ 8,083 9,558 10,738 11,918 13,688 16,638 20,178 27,258 36,698 46,138 55,283 61,301 317,479$ 100.0% 0.0% 64,487 76,523 88,559 94,813 101,067 107,321 113,575 125,729 137,883 144,019 150,155 156,291 1,360,422$ 100.0% 0.0%
Total COGS 8,840$ 2,740 3,240 3,640 4,040 4,640 5,640 6,840 9,240 12,440 15,640 18,740 20,780 107,620$ 33.9% 0.0% 21,860 25,940 30,020 32,140 34,260 36,380 38,500 42,620 46,740 48,820 50,900 52,980 461,160$ 33.9% 0.0%
Margin 17,238$ 5,343 6,318 7,098 7,878 9,048 10,998 13,338 18,018 24,258 30,498 36,543 40,521 209,859$ 66.1% 0.0% 42,627 50,583 58,539 62,673 66,807 70,941 75,075 83,109 91,143 95,199 99,255 103,311 899,262$ 66.1% 0.0%
Total Units Sold 45684 5,152 5,199 5,214 10,234 10,286 10,380 15,462 20,702 20,962 31,122 31,272 11,261 177,246 31,207 31,741 31,945 51,833 51,939 52,045 52,151 52,577 52,783 32,665 32,769 12,873 486,528
Total Sales 390,703$ 38,958$ 94,308$ 75,488$ 81,668$ 103,188$ 145,638$ 173,928$ 324,758$ 392,948$ 412,388$ 401,533$ 276,801$ 2,521,604$ 209,237$ 517,523$ 529,559$ 366,313$ 372,567$ 378,821$ 385,075$ 594,729$ 606,883$ 387,519$ 393,655$ 379,791$ 5,121,672$
Total Cost of Goods Sold 216,415$ 20,015$ 48,890$ 39,040$ 42,690$ 54,940$ 79,240$ 95,340$ 179,740$ 220,690$ 230,390$ 223,240$ 147,880$ 1,382,095$ 107,810$ 286,640$ 290,720$ 193,440$ 195,560$ 197,680$ 199,800$ 320,420$ 324,540$ 193,020$ 195,100$ 184,180$ 2,688,910$
Total Margin 174,288$ 18,943$ 45,418$ 36,448$ 38,978$ 48,248$ 66,398$ 78,588$ 145,018$ 172,258$ 181,998$ 178,293$ 128,921$ 1,139,509$ 101,427$ 230,883$ 238,839$ 172,873$ 177,007$ 181,141$ 185,275$ 274,309$ 282,343$ 194,499$ 198,555$ 195,611$ 2,432,762$
DEGREE ID
DegreeID 33
Additional Inputs Prepared By: Company
Name: Tim Nosco DEGREEID
Percent of Collections Year
1 Year
2 Year
3 Paid within 30 days 30% 30% 30% Paid between 30 and 60 days 30% 30% 30% Paid in more than 60 days 40% 40% 40% Allowance for bad debt 0% 0% 0%
This should equal 100% ----> 100% 100% 100%
Percent of Disbursements Year
1 Year
2 Year
3 Paid within 30 days 0% 0% 0% Paid between 30 and 60 days 100% 100% 100% Paid in more than 60 days 0% 0% 0%
This should equal 100% ----> 100% 100% 100%
0 8.00%
Fixed Assets Depreciation (years) January February March Apri
l May June July August Septembe
r Octobe
r Novembe
r Decembe
r Year 1
Totals Year
2 Tota
l
Year
3 Tota
l Real Estate 20
- $
- $
Leasehold Improvements 7
- $
- $
Equipment 7
- $
- $
Furniture and Fixtures 5
11,000 $
11,000 $
Vehicles 5
- $
- $
Other Fixed Assets 5
30,000 $
30,000 $
- $
- $
Total Additional Fixed Assets 41,000 $
- $
- $
- $
- $
- $
- $
- $
- $
- $
- $
- $
41,000 $
- $
- $
Additional Fixed Assets Purchases
Accounts Payable (A/P)
Accounts Receivable (A/R) Days Sales Outstanding
Desired Minimum Cash Balance Line of Credit Interest Rate
Line of Credit Assumptions
DegreeID 34
Operating Expenses Year 1
Prepared By:
Tim Nosco DEGREE ID
January February March April May June July August Septembe October November December Annual Totals
Expenses
Advertising 800 800 800 800 800 800 800 800 800 800 800 800 9,600$
Car and Truck Expenses 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Commissions and Fees - - - - - - - - - - - - -$
Contract Labor (Not included in payroll) 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Insurance (other than health) 600 600 600 600 600 600 600 600 600 600 600 600 7,200$
Legal and Professional Services 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000$
Licenses - - - - - - 250 - - 1,000 500 500 2,250$
Office Expense 300 300 300 300 300 300 300 300 300 300 300 300 3,600$
Rent or Lease -- Vehicles, Machinery, Equipment 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Rent or Lease -- Other Business Property 800 800 800 800 800 800 800 800 800 800 800 800 9,600$
Repairs and Maintenance 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Travel, Meals and Entertainment 500 500 500 500 500 500 500 500 500 500 500 500 6,000$
Utilities 300 300 300 300 300 300 300 300 300 300 300 300 3,600$
Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Total Expenses 6,200$ 6,200$ 6,200$ 6,200$ 6,200$ 6,200$ 6,450$ 6,200$ 6,200$ 7,200$ 6,700$ 6,700$ 76,650$
Other Expenses
Depreciation 683 683 683 683 683 683 683 683 683 683 683 683 8,200$
Interest
Commercial Loan - - - - - - - - - - - - -$
Commercial Mortgage - - - - - - - - - - - - -$
Credit Card Debt - - - - - - - - - - - - -$
Vehicle Loans - - - - - - - - - - - - -$
Other Bank Debt - - - - - - - - - - - - -$
Line of Credit - - - 110 383 658 935 1,071 1,436 1,510 1,510 1,857 9,471$
Bad Debt Expense - - - - - - - - - - - - -$
Total Other Expenses 683$ 683$ 683$ 794$ 1,067$ 1,341$ 1,618$ 1,754$ 2,120$ 2,194$ 2,194$ 2,541$ 17,671$
Total Fixed Operating Expenses 6,883$ 6,883$ 6,883$ 6,994$ 7,267$ 7,541$ 8,068$ 7,954$ 8,320$ 9,394$ 8,894$ 9,241$ 94,321$
Company Name:
DegreeID 35
Prepared By: Company Name:
Tim Nosco
Line Item 2014 Growth Rate 1 to 2 2015 Growth Rate 2 to 3 2016
Advertising 9,600 50.0% 14,400 50.0% 21,600
Car and Truck Expenses 1,200 100.0% 2,400 400.0% 12,000
Commissions and Fees - 75,648 153,650
Contract Labor (Not included in payroll) 2,400 100.0% 4,800 200.0% 14,400
Insurance (other than health) 7,200 100.0% 14,400 200.0% 43,200
Legal and Professional Services 24,000 100.0% 48,000 50.0% 72,000
Licenses 2,250 8,500 23,000
Office Expense 3,600 100.0% 7,200 100.0% 14,400
Rent or Lease -- Vehicles, Machinery, Equipment 2,400 100.0% 4,800 200.0% 14,400
Rent or Lease -- Other Business Property 9,600 100.0% 19,200 100.0% 38,400
Repairs and Maintenance 1,200 100.0% 2,400 100.0% 4,800
Supplies 1,200 50.0% 1,800 100.0% 3,600
Travel, Meals and Entertainment 6,000 30.0% 7,800 200.0% 23,400
Utilities 3,600 100.0% 7,200 200.0% 21,600
Miscellaneous 2,400 100.0% 4,800 200.0% 14,400
Total Expenses 76,650$ 223,348$ 474,850$
Other Expenses
Depreciation 8,200 8,200 8,200
Interest
Commercial Loan - - -
Commercial Mortgage - - -
Credit Card Debt - - -
Vehicle Loans - - -
Other Bank Debt - - -
Line of Credit 9,471 31,128 6,290
Bad Debt Expense -
Total Other Expenses 17,671$ 39,328$ 14,490$
Total Operating Expenses 94,321$ 262,676$ 489,341$
DEGREE ID
Operating Expenses Years 1-3
DegreeID 36
Prepared By: Company Name:
Tim Nosco DEGREE ID
January February March April May June July August September October November December Totals
Beginning Balance 106,000$ 65,158$ 24,315$ -$ -$ -$ -$ -$ -$ -$ 10,487$ -$
Cash Inflows
Cash Sales - - - - - - 21,626 6,602 6,690 49,377 15,725 17,191 117,211$
Accounts Receivable - - - - - - - 21,626 35,436 15,493 58,298 81,562 212,414$
Total Cash Inflows -$ -$ -$ -$ -$ -$ 21,626$ 28,228$ 42,127$ 64,870$ 74,023$ 98,752$ 329,625$
Cash Outflows
Investing Activities
New Fixed Asset Purchases - - - - - - - - - - - - -$
Additional Inventory -$
Cost of Goods Sold - - - - - - - 41,155 10,930 11,030 93,730 28,610 185,455$
Operating Activities
Operating Expenses 6,200 6,200 6,200 6,200 6,200 6,200 6,450 6,200 6,200 7,200 6,700 6,700 76,650$
Payroll 34,642 34,642 34,642 34,642 34,642 34,642 34,642 34,642 34,642 34,642 34,642 34,642 415,708$
Taxes - - - - - - - - - - - - -$
Financing Activities
Loan Payments - - - - - - - - - - - - -$
Owners Distribution -$
Line of Credit Interest - - 110 383 658 935 1,071 1,436 1,510 1,510 1,857 9,471$
Line of Credit Repayments -$
Dividends Paid -$
Total Cash Outflows 40,842$ 40,842$ 40,842$ 40,953$ 41,226$ 41,500$ 42,027$ 83,068$ 53,209$ 54,383$ 136,583$ 71,810$ 687,284$
Net Cash Flows (40,842)$ (40,842)$ (40,842)$ (40,953)$ (41,226)$ (41,500)$ (20,401)$ (54,840)$ (11,082)$ 10,487$ (62,560)$ 26,942$ (357,659)$
Operating Cash Balance 65,158$ 24,315$ (16,527)$ (40,953)$ (41,226)$ (41,500)$ (20,401)$ (54,840)$ (11,082)$ 10,487$ (52,072)$ 26,942$
Line of Credit Drawdown -$ -$ 16,527$ 40,953$ 41,226$ 41,500$ 20,401$ 54,840$ 11,082$ -$ 52,072$ -$ 278,602$
Ending Cash Balance 65,158$ 24,315$ -$ -$ -$ -$ -$ -$ -$ 10,487$ -$ 26,942$
Line of Credit Balance -$ -$ 16,527$ 57,480$ 98,705$ 140,206$ 160,607$ 215,447$ 226,529$ 226,529$ 278,602$ 278,602$
Cash Flow Forecast Year 1
DegreeID 37
Cash Flow Forecast Years 1-3
Prepared By: Company Name:
Tim Nosco DEGREE ID
Year 1 Totals January February March April May June July August September October November December Year 2 Totals January February March April May June July August Septembe October November December Year 3 Totals
Beginning Balance 26,942$ -$ -$ -$ -$ -$ -$ -$ 35,297$ 64,383$ 47,973$ 142,382$ 53,675$ 97,561$ 103,841$ 55,870$ 26,928$ 84,936$ 110,693$ 178,341$ 311,143$ 302,115$ 400,919$ 512,137$
Cash Inflows
Cash Sales 117,211$ 11,687 28,292 22,646 24,500 30,956 43,691 52,178 97,427 117,884 123,716 120,460 83,040 756,481$ 62,771 155,257 158,868 109,894 111,770 113,646 115,523 178,419 182,065 116,256 118,097 113,937 1,536,502$
Accounts Receivable 212,414$ 38,157 34,608 43,876 60,370 54,696 63,624 84,967 110,434 166,999 247,788 280,896 285,415 1,471,827$ 243,654 173,492 238,952 365,877 321,718 258,295 262,673 267,051 332,449 419,957 359,009 273,104 3,516,229$
Total Cash Inflows 329,625$ 49,845$ 62,901$ 66,522$ 84,870$ 85,652$ 107,315$ 137,145$ 207,861$ 284,883$ 371,504$ 401,356$ 368,455$ 2,228,308$ 306,425 328,748 397,819 475,771 433,488 371,942 378,196 445,470 514,514 536,212 477,105 387,041 5,052,730$
Cash Outflows
Investing Activities
New Fixed Asset Purchases -$ - - - - - - - - - - - - -$ - - - - - - - - - - - - -$
Additional Inventory -$ 20,000 10,000 10,000 10,000 10,000 60,000$ 10,000 10,000$
Cost of Goods Sold 185,455$ 30,960 20,015 48,890 39,040 42,690 54,940 79,240 95,340 179,740 220,690 230,390 223,240 1,265,175$ 147,880 107,810 286,640 290,720 193,440 195,560 197,680 199,800 320,420 324,540 193,020 195,100 2,652,610$
Operating Activities
Operating Expenses 76,650$ 18,612 18,612 18,612 18,612 18,612 18,612 18,612 18,612 18,612 18,612 18,612 18,612 223,348$ 39,571 39,571 39,571 39,571 39,571 39,571 39,571 39,571 39,571 39,571 39,571 39,571 474,850$
Payroll 415,708$ 45,486 45,486 45,486 45,486 45,486 45,486 45,486 45,486 45,486 45,486 45,486 45,486 545,837$ 73,297 73,297 73,297 73,297 73,297 73,297 73,297 73,297 73,297 73,297 73,297 73,297 879,560$
Taxes -$ - - - - - - - - 8,834 - - 57,365 - - 45,158 - - 37,757 - - 80,255 - - 49,602 212,772$
Financing Activities
Loan Payments -$ - - - - - - - - - - - - -$ - - - - - - - - - - - - -$
Owners Distribution -$ -$ 60,000 60,000$
Line of Credit Interest 9,471$ 1,857 1,992 2,146 2,470 2,609 2,767 2,997 3,125 3,125 3,125 2,458 2,458 31,128$ 1,791 1,791 1,125 1,125 458 (0) (0) (0) (0) (0) (0) (0) 6,290$
Line of Credit Repayments -$ 100,000 100,000 200,000$ 100,000 100,000 68,714 268,714$
Dividends Paid -$ -$
Total Cash Outflows 687,284$ 96,916$ 86,105$ 115,135$ 105,609$ 109,397$ 141,806$ 156,336$ 172,564$ 255,798$ 387,914$ 306,947$ 457,162$ 2,325,488$ 262,539$ 322,469$ 445,790$ 504,712$ 375,480$ 346,185$ 310,548$ 312,668$ 523,542$ 437,408$ 365,888$ 357,570$ 4,564,797$
Net Cash Flows (357,659)$ (47,071)$ (23,205)$ (48,613)$ (20,739)$ (23,745)$ (34,491)$ (19,191)$ 35,297$ 29,085$ (16,410)$ 94,409$ (88,706)$ (97,180)$ 43,886$ 6,279$ (47,971)$ (28,942)$ 58,008$ 25,757$ 67,648$ 132,802$ (9,029)$ 98,805$ 111,218$ 29,471$ 487,933$
Operating Cash Balance (20,129)$ (23,205)$ (48,613)$ (20,739)$ (23,745)$ (34,491)$ (19,191)$ 35,297$ 64,383$ 47,973$ 142,382$ 53,675$ 97,561$ 103,841$ 55,870$ 26,928$ 84,936$ 110,693$ 178,341$ 311,143$ 302,115$ 400,919$ 512,137$ 541,608$
Line of Credit Drawdown 278,602$ 20,129$ 23,205$ 48,613$ 20,739$ 23,745$ 34,491$ 19,191$ -$ -$ -$ -$ -$ 190,112$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Ending Cash Balance -$ -$ -$ -$ -$ -$ -$ 35,297$ 64,383$ 47,973$ 142,382$ 53,675$ 97,561$ 103,841$ 55,870$ 26,928$ 84,936$ 110,693$ 178,341$ 311,143$ 302,115$ 400,919$ 512,137$ 541,608$
Line of Credit Balance 298,731$ 321,935$ 370,548$ 391,287$ 415,033$ 449,523$ 468,714$ 468,714$ 468,714$ 368,714$ 368,714$ 268,714$ 268,714$ 168,714$ 168,714$ 68,714$ (0)$ (0)$ (0)$ (0)$ (0)$ (0)$ (0)$ (0)$
DegreeID 38
Prepared By:
Tim Nosco
January February March April May June July August September October November December Annual Totals
Revenue
Starting Package - - - - - - 16,000 20,000 20,000 40,000 16,000 20,000 132,000$
SAW RFID Tags - - - - - - 5,000 - - 20,000 10,000 10,000 45,000$
Sender/Receiver/Antenna - - - - - - 9,375 - - 18,750 3,750 3,750 35,625$
Enterprise Software License - - - - - - 10,000 - - 20,000 4,000 4,000 38,000$
Tablet/Software per unit - - - - - - 30,000 - - 60,000 12,000 12,000 114,000$
Recurring Monthly Cloud Based Fee - - - - - - 1,711 2,006 2,301 5,841 6,667 7,552 26,078$
Total Revenue -$ -$ -$ -$ -$ -$ 72,086$ 22,006$ 22,301$ 164,591$ 52,417$ 57,302$ 390,703$
Cost of Goods Sold
Starting Package - - - - - - 8,200 10,250 10,250 20,500 8,200 10,250 67,650$
SAW RFID Tags - - - - - - 3,250 - - 13,000 6,500 6,500 29,250$
Sender/Receiver/Antenna - - - - - - 8,125 - - 16,250 3,250 3,250 30,875$
Enterprise Software License - - - - - - 3,500 - - 7,000 1,400 1,400 13,300$
Tablet/Software per unit - - - - - - 17,500 - - 35,000 7,000 7,000 66,500$
Recurring Monthly Cloud Based Fee - - - - - - 580 680 780 1,980 2,260 2,560 8,840$
Total Cost of Goods Sold -$ -$ -$ -$ -$ -$ 41,155$ 10,930$ 11,030$ 93,730$ 28,610$ 30,960$ 216,415$
Gross Margin -$ -$ -$ -$ -$ -$ 30,931$ 11,076$ 11,271$ 70,861$ 23,807$ 26,342$ 174,288$
Payroll 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 34,642$ 415,708$
Operating Expenses
Advertising 800 800 800 800 800 800 800 800 800 800 800 800 9,600$
Car and Truck Expenses 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Commissions and Fees - - - - - - - - - - - - -$
Contract Labor (Not included in payroll) 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Insurance (other than health) 600 600 600 600 600 600 600 600 600 600 600 600 7,200$
Legal and Professional Services 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000$
Licenses - - - - - - 250 - - 1,000 500 500 2,250$
Office Expense 300 300 300 300 300 300 300 300 300 300 300 300 3,600$
Rent or Lease -- Vehicles, Machinery, Equipment 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Rent or Lease -- Other Business Property 800 800 800 800 800 800 800 800 800 800 800 800 9,600$
Repairs and Maintenance 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200$
Travel, Meals and Entertainment 500 500 500 500 500 500 500 500 500 500 500 500 6,000$
Utilities 300 300 300 300 300 300 300 300 300 300 300 300 3,600$
Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400$
Other Expense 1
Other Expense 2
Total Operating Expenses 6,200$ 6,200$ 6,200$ 6,200$ 6,200$ 6,200$ 6,450$ 6,200$ 6,200$ 7,200$ 6,700$ 6,700$ 76,650$
Income (Before Other Expenses) ( 4 0 ,8 4 2 )$ ( 4 0 ,8 4 2 )$ ( 4 0 ,8 4 2 )$ ( 4 0 ,8 4 2 )$ ( 4 0 ,8 4 2 )$ ( 4 0 ,8 4 2 )$ ( 10 ,16 1)$ ( 2 9 ,76 6 )$ ( 2 9 ,571)$ 2 9 ,0 19$ ( 17,53 5)$ ( 15,0 0 0 )$ (318,070)$
Other Expenses
Amortized Start-up Expenses 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 21,000$
Depreciation 683 683 683 683 683 683 683 683 683 683 683 683 8,200$
Interest
Commercial Loan - - - - - - - - - - - - -$
Commercial Mortgage - - - - - - - - - - - - -$
Credit Card Debt - - - - - - - - - - - - -$
Vehicle Loans - - - - - - - - - - - - -$
Other Bank Debt - - - - - - - - - - - - -$
Line of Credit - - - 110 383 658 935 1,071 1,436 1,510 1,510 1,857 9,471$
Bad Debt Expense - - - - - - - - - - - - -$
Total Other Expenses 2,433 2,433 2,433 2,544 2,817 3,091 3,368 3,504 3,870 3,944 3,944 4,291 38,671$
Net Income Before Income Tax ( 4 3 ,2 76 )$ ( 4 3 ,2 76 )$ ( 4 3 ,2 76 )$ ( 4 3 ,3 8 6 )$ ( 4 3 ,6 59 )$ ( 4 3 ,9 3 4 )$ ( 13 ,52 9 )$ ( 3 3 ,2 70 )$ ( 3 3 ,4 4 1)$ 2 5,0 75$ ( 2 1,4 79 )$ (19,291)$ (356,741)$
Income Tax -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Profit/Loss ( 4 3 ,2 76 )$ ( 4 3 ,2 76 )$ ( 4 3 ,2 76 )$ ( 4 3 ,3 8 6 )$ ( 4 3 ,6 59 )$ ( 4 3 ,9 3 4 )$ ( 13 ,52 9 )$ ( 3 3 ,2 70 )$ ( 3 3 ,4 4 1)$ 2 5,0 75$ ( 2 1,4 79 )$ ( 19 ,2 9 1)$ (356,741)$
Income Statement Year 1
Company Name:
DEGREE ID
DegreeID 39
Prepared By: Company Name:
Tim Nosco DEGREE ID
Revenue 2014 2015 2016
Starting Package 132,000 464,000 240,000
SAW RFID Tags 45,000 170,000 460,000
Sender/Receiver/Antenna 35,625 298,125 581,250
Enterprise Software License 38,000 318,000 620,000
Tablet/Software per unit 114,000 954,000 1,860,000
Recurring Monthly Cloud Based Fee 26,078 317,479 1,360,422
Total Revenue 390,703$ 100% 2,521,604$ 100% 5,121,672$ 100%
Cost of Goods Sold
Starting Package 67,650 237,800 123,000
SAW RFID Tags 29,250 110,500 299,000
Sender/Receiver/Antenna 30,875 258,375 503,750
Enterprise Software License 13,300 111,300 217,000
Tablet/Software per unit 66,500 556,500 1,085,000
Recurring Monthly Cloud Based Fee 8,840 107,620 461,160
Total Cost of Goods Sold 216,415 55% 1,382,095 55% 2,688,910 53%
Gross Margin 174,288 45% 1,139,509 45% 2,432,762 47%
Payroll 415,708 545,837 879,560
Operating Expenses
Advertising 9,600 14,400 21,600
Car and Truck Expenses 1,200 2,400 12,000
Commissions and Fees - 75,648 153,650
Contract Labor (Not included in payroll) 2,400 4,800 14,400
Insurance (other than health) 7,200 14,400 43,200
Legal and Professional Services 24,000 48,000 72,000
Licenses 2,250 8,500 23,000
Office Expense 3,600 7,200 14,400
Rent or Lease -- Vehicles, Machinery, Equipment 2,400 4,800 14,400
Rent or Lease -- Other Business Property 9,600 19,200 38,400
Repairs and Maintenance 1,200 2,400 4,800
Supplies 1,200 1,800 3,600
Travel, Meals and Entertainment 6,000 7,800 23,400
Utilities 3,600 7,200 21,600
Miscellaneous 2,400 4,800 14,400
Other Expense 1
Other Expense 2
Total Operating Expenses 76,650$ 20% 223,348$ 9% 474,850$ 9%
Income (Before Other Expenses) (318,070)$ -81% 370,324$ 15% 1,078,351$ 21%
Other Expenses
Amortized Start-up Expenses 21,000 21,000 21,000
Depreciation 8,200 8,200 8,200
Interest
Commercial Loan - - -
Commercial Mortgage - - -
Credit Card Debt - - -
Vehicle Loans - - -
Other Bank Debt - - -
Line of Credit 9,471 31,128 6,290
Bad Debt Expense - - -
Total Other Expenses 38,671$ 10% 60,328$ 2% 35,490$ 1%
Net Income Before Income Tax (356,741)$ 309,996$ 1,042,861$
Income Tax -$ 66,199$ 212,772$
Net Income/Loss (356,741)$ -91% 243,796$ 10% 830,089$ 16%
Income Statement Years 1-3
DegreeID 40
Balance Sheet Years 1-3
Prepared By: Company Name:
Tim Nosco DEGREE ID
ASSETS 2014 2015 2016
Current Assets
Cash 26,942 53,675 541,608
Accounts Receivable 61,078 354,374 423,316
Inventory - 60,000 70,000
Prepaid Expenses 38,000 19,000 -
Other Initial Costs 4,000 2,000 -
Total Current Assets 130,021$ 489,049$ 1,034,924$
Fixed Assets
Real Estate -- Land - - -
Real Estate -- Buildings - - -
Leasehold Improvements - - -
Equipment - - -
Furniture and Fixtures 11,000 11,000 11,000
Vehicles - - -
Other 30,000 30,000 30,000
Total Fixed Assets 41,000$ 41,000$ 41,000$
(Less Accumulated Depreciation) 8,200$ 16,400$ 24,600$
Total Assets 162,820$ 513,649$ 1,051,324$
LIABILITIES & EQUITY
Liabilities
Accounts Payable 30,960 147,880 184,180
Commercial Loan Balance - - -
Commercial Mortgage Balance - - -
Credit Card Debt Balance - - -
Vehicle Loans Balance - - -
Other Bank Debt Balance - - -
Line of Credit Balance 278,602 268,714 (0)
Total Liabilities 309,562$ 416,594$ 184,180$
Equity
Common Stock 210,000 210,000 210,000
Retained Earnings (356,741) (112,945) 717,144
Dividends Dispersed/Owners Draw - - 60,000
Total Equity (146,741)$ 97,055$ 867,144$
Total Liabilities and Equity 162,820$ 513,649$ 1,051,324$
-$ -$ -$
Balanced! Balanced! Balanced!Balance sheet in or out of balance?
DegreeID 41
Ratios Year One Year Two Year
Three
Liquidity
Current Ratio 0.42 1.17 5.62
Quick Ratio 0.28 0.98 5.24
Safety
Debt to Equity Ratio -2.11 4.29 0.21
Debt-Service Coverage
Ratio – DSCR
-1.13 0.60 4.55
Profitability
Sales Growth 0.00 5.45 1.03
COGS to Sales 0.55 0.55 0.53
Gross Profit Margin 0.45 0.45 0.47
SG&A to Sales 1.26 0.31 0.26
Net Profit Margin -0.91 0.10 0.16
Return on Equity (ROE) 2.43 2.51 0.96
Return on Assets -2.19 0.47 0.79
Owner's Compensation to
Sales
0.67 0.11 0.06
Efficiency
Days in Receivables 56.28 50.59 29.75
Accounts Receivable
Turnover
6.40 7.12 12.10
Days in Inventory 0.00 15.85 9.50
Inventory Turnover 0.00 23.03 38.41
Sales to Total Assets 2.40 4.91 4.87
DegreeID 42
XII. References
Arnoczy, A. (March 2010). Technology Assessment Client Number JS-0030. Extended Range RFID and
Sensor Tag. Prepared by fuentek, a fountain of possibilities.
Bruckner, G. (Nov. 2013). Project manager CTR Carinthian Tech Research AG. Email received Nov
2013.
Everett, N. (August 2013). IBISWorld Industry Report 31141. Frozen Food Production in the US Storing
up: Improved incomes and spending will bolster demand for storage units. Retrieved October 30, 2013
from IBISWorld database.
Fink, P., Kennedy, T., Lin, G. (February 2007). Technical Support Package. Extended-Range Passive
RFID and Sensor Tags. NASA Tech Briefs MSC-24346.
Jeremy Dailami, Cold Chain Director, England Logistics.
John Custer, The Hartford Insurance, Co. (Aug 2011). RFID TALK BLOG. THE HARTFORD TEAMS
WITH INTELLEFLEX TO REDUCE INSURANCE CLAIMS FROM SPOILED PRODUCE. Retrieved
on November 14, 2013 from: http://www.rfid24-7.com/2011/08/09/the-hartford-teams-with-intelleflex-to-
reduce-insurance-claims-from-spoiled-produce/.
Lewis, M. (November 2013) Business Unit Leader, Xtreme RFID.
Phillips, J. (September 2013). IBISWorld Industry Report 42442. Frozen Food Wholesaling in the US.
Max capacity: Industry revenue remained steady as storage space filled up. Retrieved November 4, 2013
from IBISWorld database.
Plunkett Research Ltd. (March 2013). Food Safety Becomes a Massive Consumer, Industry and
Regulatory Issue. Copyright (C) All Rights Reserved. Retrieved from http://www.plunkettresearch.com,
Updated 03-19-2013.
Setar, L. (August 2013). IBISWorld Industry Report 48422. Local Specialized Freight Trucking in the US.
Hot and cold: Economic recovery and time-poor lifestyles will boost demand. Retrieved October 31, 2013
from IBISWorld database.
www.fda.gov. (Nov 2013). Retrieved on November 14, 2013 from
http://www.fda.gov/Food/GuidanceRegulation/FSMA/default.htm.
DegreeID 43
top related