Financial PresentationBy

Christian GregertsenCEO/Owner VXGaming, LLC

• VXGaming sells a service that enables gamers to play online game tournaments with real cash at stake.

• The software consists of:– VXGaming Pay To Play (P2P) Platform.

• Is downloadable as an addon for existing games, such as Counter Strike by Valve Software.

– A community portal (http://www.vxgaming.net)• Lets the gamer create a profile and manage their account.• Lets the gamer communicate with other players.

Introduction/

Product Description

Assumptions used

in projections• The first P2P Platform will be developed as a mod for Counter Strike Source (CS:Source).

• Initial development and deployment will take 6 months.• CS:Source averages ~100,000 concurrent players. We assume we can

capture 3% of this market [3,000 concurrent players market capacity].

• On average each game round lasts 20 minutes with a $2 entry fee per player. [Per player: 20mins/$2 = 10mins/1$, $0.1/min/player Gross Sales]

• 75% of entry fee is paid back out to player-base, house keeps 25%.• Ramp Up: 125 concurrent players first month, increasing by 125

players/month until market capacity is reached.

Startup CostsItem Quantity Price ($) Total ($)

Adobe Creative Suite Licenses 9 1,782 16,038

Visual Studio Licenses 7 799 5,593

Maya License 1 2,590 2,590

Development Computers 10 2,500 25,000

Network Equipment [Cables, Routers, Switches] 1 1,000 1,000

Office Chairs 15 200 3,000

Office Desks 15 200 3,000

Office Space [2 months+ 2 months deposit] [2000sq ft @ $1 sq/ft] 1 8000 8,000

Book Shelves 10 100 1,000

Filing Cabinets 10 100 1,000

Refrigerator/Microwave/Water Dispenser 1 1500 1,500

Multi Purpose Printer/Copier 1 4000 4,000

Contingency Funds 25,000

Total $96,721

Position Salary ($) / year / person

CEO/Owner 60,000

Vice President 60,000

Lead Programmer 50,000

Lead Artist 45,000

Lead Web Developer 45,000

C++ Programmers [4 Full Time Programmers] 40,000

Customer Service [1 CS Rep per 125 concurrent players]

35,000

Salaries

• 125 concurrent players first month.• Increases by 125 players each month until

market capacity of 3000 concurrent players is reached.

Revenue, Sales, and

Profit ProjectionsYear Net Profit ($) Change from

previous year

2010 1,994,616 N/A

2011 19,186,097 861%

2012 35,508,825 85%

First Year GrowthJ F M A M J J A S O N D

($1,000,000)

($500,000)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Monthly Net Profit Balance

• VXGaming, LLC will break even in September of 2010.

• VXGaming enters September with a -$220,000 balance.

• VXGaming is expected to earn $320,000 in September leaving us with $100,000 profit.

Break Even

• Each game tournament has an entry fee.• At the end of each tournament 75% of the

fees are paid out to the winning player. This is the cost of goods sold.

• Example: 30 players join a $2 game. $60 is collected in sales. $45 is paid out to winning gamer [75%]. $15 is kept as profit.

• 25% Profit Margin on sales.

Cost of Goods Sold

• We assume 125 player growth per month until market capacity of 3000 is reached.

• Gaming server costs are estimated at $1/month player• 1 Customer Service Rep is hired per 125 players @

$32,000 year.• Year 2 Office Space is increased to 4,000sqft.• Year 3 Office Space is increased to 6,000sqft.• Rent/Utilities/Maintenance evenly scale linearly to

increased staff and office space.M

ethods used for

Year 2 and 3 forecast

2010

2011

2012

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000

$1,994,616

$19,186,097

$35,508,825

Net Profit

Net Profit

3 Year Forecast

• Travel in March [$5,000]– Plane Ticket/Food/Accommodations for Game

Developers Conference in San Francisco.• Office Supplies Increase from [$200] to

[$3,000] July-December– Each month after launch a new CS rep is hired to

keep up with increased number of concurrent players. The cost of a new computer, chair and desk is included in office supply costs.

Major Expense

Line Items

• The main performance indicator after launch is Monthly Net Profit.

• Pre-launch the main performance indicator is software completion percentage.– In order to launch on the projected launch date:• Need to complete 20% each month for 5 months.• One month scheduled for deployment.

Measuring

Performance

• Average Concurrent Players [over 24 hours/monthly] / Server Capacity.

• Example: 178 average concurrent players within the last 24 hours / 250 server capacity.– 71.2% daily performance.

• Example: 200 average concurrent players over the last month / 250 server capacity.– 80.0% monthly performance.

• Important for noticing changing trends in the market. Lets us know when we need to upgrade/downgrade server capacity.

UniquePerform

ance Indicator

• Two main factors affect profitability– Concurrent Players [The number of players playing

on our servers at any given time]– Average stake of played games [The higher the

stakes are, the more profit we earn]

Key Factors

Affecting Profitability

Pro Forma