qqwikpay business plan_v1

8/3/2019 QQwikpay Business Plan_v1

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Business plan and summary

[email protected]

skype: qqwikpay
mailto:[email protected]:[email protected]


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in thisbusiness plan is confidential; therefore, reader agrees not to disclose it without the express writtenpermission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in all respectsconfidential in nature, other than information which is in the public domain through other meansand that any disclosure or use of same by reader may cause serious harm or damage to

_______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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Table of Contents

1.0 Executive Summary ............................................................................................................................... 1Chart: Highlights .................................................................................................................................. 1

1.1 Objectives .......................................................................................................................................... 11.2 Mission ............................................................................................................................................... 11.3 Keys to Success .................................................................................................................................. 2

2.0 Company Summary ............................................................................................................................... 22.1 Company Ownership ......................................................................................................................... 22.2 Start-up Summary .............................................................................................................................. 2

Table: Start-up ..................................................................................................................................... 2

2.3 Company Locations and Facilities ..................................................................................................... 23.0 Services .................................................................................................................................................. 3

3.1 Service Description ............................................................................................................................ 33.2 Competitive Comparison ................................................................................................................... 33.3 Sales Literature .................................................................................................................................. 3

4.0 Market Analysis Summary .................................................................................................................... 3Table: Market Analysis ........................................................................................................................ 4Chart: Market Analysis (Pie) ............................................................................................................... 5

4.1 Target Market Segment Strategy ....................................................................................................... 54.1.1 Market Needs .............................................................................................................................. 54.1.2 Market Trends ............................................................................................................................. 64.1.3 Market Growth ............................................................................................................................ 6

4.2 Service Business Analysis ................................................................................................................. 64.2.1 Business Participants .................................................................................................................. 74.2.2 Competition and Buying Patterns ............................................................................................... 8

4.2.3 Main Competitors ....................................................................................................................... 85.0 Web Plan Summary ............................................................................................................................. 105.1 Website Marketing Strategy ............................................................................................................ 105.2 Development Requirements ............................................................................................................. 10


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Table of Contents

Table: Personnel ................................................................................................................................. 16

8.0 Financial Plan ....................................................................................................................................... 168.1 Start-up Funding .............................................................................................................................. 17

Table: Start-up Funding ..................................................................................................................... 17

8.2 Break-even Analysis ........................................................................................................................ 17Table: Break-even Analysis ............................................................................................................... 18Chart: Break-even Analysis ............................................................................................................... 18

8.3 Projected Profit and Loss ................................................................................................................. 18Table: Profit and Loss ........................................................................................................................ 19Chart: Profit Monthly ......................................................................................................................... 19Chart: Profit Yearly ............................................................................................................................ 20Chart: Gross Margin Monthly ............................................................................................................ 20Chart: Gross Margin Yearly ............................................................................................................... 21

8.4 Projected Cash Flow ........................................................................................................................ 21Table: Cash Flow ............................................................................................................................... 22Chart: Cash ......................................................................................................................................... 23

8.5 Projected Balance Sheet ................................................................................................................... 23Table: Balance Sheet .......................................................................................................................... 24

8.6 The Investment Offering .................................................................................................................. 24Table: Investment Offering ................................................................................................................ 25

8.7 Use of Funds .................................................................................................................................... 25

Table: Use of Funds ........................................................................................................................... 258.8 Payback ............................................................................................................................................ 26

Table: Payback ................................................................................................................................... 26


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QQwikpay Business Plan

1.0 Executive Summary

QQwikpay is a new, ecommerce payment platform offering a large selection of currency andpayment solutions. Merchants can easily sell their online products while processing ecommercetransactions. Consumers can securely send payment to vendors using their checking account,credit card, debit card or mobile processing. Founded by a serial entrepreneur, Chase Justin,the Company will be headquartered in the UK.

The purpose of this plan is to obtain sufficient funding 365,000 from crowdcube.com to coverinitial start-up expenses.

Chart: Highlights

Sales

Gross Margin

Net Profit

64,000128,000192,000256,000320,000384,000448,000512,000576,000

640,000

Highlights


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1.3 Keys to Success

1. Commitment to providing high quality customer service (24/7 support).2. Online and offline advertising.3. Gaining a reputable reputation.4. Developing visibility.

2.0 Company Summary

QQwikpay is a new online payment service managed by Chase Justin, a serial entrepreneur.The Company was formed to take advantage of the perceived weaknesses and inadequacies of other top competitors in terms of customer care and rates. QQwikpay specializes in eCommercetransactions providing secure and reliable online payment programs; we aim to serve as aservice for people to send money using any method of payment.

2.1 Company Ownership

The Company is solely owned by Chase Justin and currently registered as QQWIKPAY LTD inLondon (07895418 ).

2.2 Start-up Summary

The start-up costs for QQwikpay will cover a number of details to get the Company fullyoperational online. Included in start-up costs are all necessary expenditures to cover processingsetup, website development, payment integration, mobile card reader, and advertising.

Table: Start-up

Start-up

Requirements


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3.0 Services

QQwikpay's online payment system empowers an unlimited number of small, mid-size, andlarge web based storefronts to sell online and process all types of ecommerce transactions,while enabling consumers to securely connect for transmission of transaction data. WithQQwikpay consumers can choose their method of payment, which allows merchants to captureall possible sales. Online merchants can expect to see an increase of sales, as it has beenshown by studies that credit card spending is higher than cash spending.

Our number of banking partners combined with our payment processing technology allows us totailor our solutions to match the individual needs of the client.

3.1 Service Description

1. Online payment processing. QQwikpay provides sellers with a competitive, low fixed rateof 2.25%, without tiered pricing. QQwikpay accepts credit card, debit card, and bankaccount. Our system is compatible with all shopping carts.

2. Mobile processing. This service will be provided in Phase 2 of 2012. Consumers andbusinesses have the option of using their mobile phone to perform transactions. Consumers

will be able to manage their account no matter their location, and merchants can acceptpayment anytime, anywhere even if they are selling on the road or at a tradeshow.3. Money back for consumers. Consumers that use their checking account for payment

automatically receives 1% back.

3.2 Competitive Comparison

Competition in this industry is based on service, quality, price, processing system speed,customer support and reliability. Our most competitive edge is lower fees for merchants, highquality customer support. In addition, we will be the first to offer 1% cash back for consumers.

3.3 Sales Literature


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We are focusing on these particular segments as the market is continuing to grow: More than 326,400,000 was processed in 2010 for global e-commerce Revenue surpassed 11,520,000,000 for 2010 Cross border transactions owning half the market share of business Only a handful of front-runners in the business; therefore, there is significant opportunity

for QQwikpay to capture a large part of market share. 38 percent of those who own a Smartphone have made a mobile payment (mobile

processing)

Table: Market Analysis


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Chart: Market Analysis (Pie)

Online merchants

Mobile payment

Market Analysis (Pie)

4.1 Target Market Segment Strategy

ECommerce has grown to represent a significant percentage of retail sales and profits;therefore, merchants are seeking payment strategies that can enhance their online services,open new markets and protect the bottom line.

The target market for QQwikpay is consumers, online merchants and small business owners inthe US, UK, and Europe. We have chosen these segments because of growth and potentialinternational customers. According to Javelin Strategy and Research, 63 percent of U.S. adultsshop online, and expects this number to grow to 78 percent by 2014.


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4.1.2 Market Trends

With online payments other than debit or credit cards expected to grow to 30 percent of purchase volume by 2014, eCommerce merchants have to consider enhancing theirpayment options to take advantage of this consumer trend.

Mobile devices will soon be the primary form of payment for millions of people globally.

According to Aite Group forecasts, mobile bill payments will reach 13 billion in gross dollarvolume in 2015, up from 10 billion in 2010, which represents a 68 percent compoundannual growth rate. A November 2010 Aite Group report stated the United States is movingcloser to a tipping point that will lead to the popularization of mobile payments. 1

Credit card payments continue to be strong in European E-Commerce. In Europe, in 2010credit cards were the most popular online payment method with a share of approx. 40%.Electronic payment methods are also gaining popularity in Asia and Africa. The GlobalOnline Payment Methods 2011 report by yStats.com clearly shows that the market forelectronic payments continues to grow in Asia as well. 2

4.1.3 Market Growth

Transactions via cell phone-based payment systems are expected to have grown 149.4 percentyear-on-year for 2011 to 48.14 billion Yuan (4,857,600,000) and are expected to exceed 200billion Yuan in 2013, according to figures released recently. 3E Marketing Research Corporation said the mobile payments market is expected to generate604 billion in sales. 4

4.2 Service Business Analysis


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Mobile Processing

Gartner defines a mobile payment as paying for a product or service using mobile technologysuch as a short message service (SMS), Wireless Application Protocol (WAP), UnstructuredSupplementary Service Data (USSD) and NFC. It includes transactions that use bankinginstruments such as cash, bank accounts or debit and credit cards, as well as noncarrier storedvalue accounts, such as travel cards, gift cards or PayPal. It does not include transactions thatuse mobile operators billing systems, such as purchase of mobile content or telebanking bymobile to the service center via an interactive voice response (IVR) system.

In terms of both number of users and transaction volumes, Gartner expects Asia/Pacific andJapan to maintain a larger share of the market through 2012. While mobile paymentpenetration in Western Europe is expected to rise from 0.9 percent in 2009 to 2.5 percent in2012, and from 1.7 percent to 3 percent in North America; penetration in Asia/Pacific andJapan will rise from 2 percent in 2009 to 3.8 percent in 2012. Mobile payment penetration inEastern Europe, the Middle East and Africa (EMEA) and Latin America is also expected toexceed 3 percent by 2012.

4.2.1 Business Participants

1. Acquiring Bank (Merchant Bank) - A Merchant Bank, also known as the Acquirer orAcquiring Bank, is the financial institution that provides a merchant with a MerchantAccount. The Merchant Bank handles acceptance and payment of credit card transactions tothe Merchant's bank account. In a way, they front the money for the Issuing Banks,depositing the Merchant's funds prior to the actual transfer via Interchange from thecardholder's issuing bank A Merchant Bank pays the Issuing Banks and Card Associationsfees for transactions processed on behalf of its Merchant Account holders. In return,

Merchant Banks provide their services to Merchants for a fee normally called a discount rate. 5

2. Merchant Services Provider (MSP) - If the Merchant did not set up their Merchantd l h h k h h b d d d


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distributed cards and charge the cardholder interest and fees for the use of the card. (Shift4)

5. Card Associations (Brand) - These are organizations such as Visa, MasterCard, AmericanExpress and Discover that work in conjunction with various local, state, territory and federalgovernment agencies to make the rules regarding acceptance and use of credit cards. Theserules include security regulations, data requirements and interchange rates. AmericanExpress and Discover issue cards directly to the consumer without a bank intermediary.(Shift 4)

6. Processors - Processors provide a point of connectivity for the Merchant to authorize andsettle its credit card transactions through the appropriate payment network for each of thecard types accepted by the Merchant. Some Processors have also aligned or purchasedMerchant Banks in order to act as a Merchant Services Provider to its Merchants. Alltransactions require a Front-End and a Back-End Processor. In some cases, the Back-EndProcessor and Front-End Processor may be one and the same. Front-End Processors handlethe up-front authorization of a credit card transaction. They have connectivity to all of theCard Associations and route transactions to the appropriate network for authorization. TheFront-End Processor is the Merchants point of connectivity for authorization and settlementof transactions. When a Merchant settles or submits a batch, it is sent to the Front-EndProcessor who then routes the batch to its Back-End Processor. Back-End Processors receivesettlement batches from the Front-End Processor. Transactions from all Merchants aregrouped together by BIN (Bank Identification Number) range and submitted to theappropriate Issuing Bank on a scheduled time frame. (Shift 4)

4.2.2 Competition and Buying Patterns

A big part of capturing online sales involves convenience. Merchants and business owners will

likely choose a payment processing company based on:1. Setup fees2. Annual Fees


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Owns 18% of the total market 2,304 in Total Payment Volume every second in Q3 2011 Expects revenue will make up 3.84 billion to 4.48 billion in 2013 Tiered pricing ranging from 2.2-2.9% for USA with international sales 3.9%, 2.4-

3.9% for Europe Nearly 100 million users Sign-up fee: None Transaction Fees: 0.3+2.2-2.9% Refund fees: 10 for chargeback Payment types accepted: Visa, MasterCard, Discover, and American Express. Other services: Compatible with shopping cartsTangible and digital products

and membership sites . Buyer has to register as PayPal member. Membershipavailable in 37 countries

2. Skrill ( Moneybookers ) - This company was founded in 2001 and became the firstemoney issuer to obtain an electronic money license from the FSA. Moneybookers is oneof Europe's largest online payment systems and among the world's leading eWalletproviders with over fifteen million account holders. Moneybookers worldwide payment

network offers businesses access to over 100 payment options in over 200 countries andterritories. Ranked number 12 fastest growing technology company in the UK Considered first competitor to PayPal 23.1 million members worldwide 29,089,149,615.36 processed transactions worldwide Bought by Investcorp Technology Partners for 105 Million in March 2007, March

2009 has been put up for sale by its owners Investcorp for an estimated 365m Pricing from 1.9-2.9% and non European customers 2.9-3.9% plus 19.95 a

month Used by more than 70,000 merchants.

3 Adelante Started over eight years ago Adelante supplies a wide variety of software


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1M merchant milestone this month

5.0 Web Plan Summary

In year one, QQwikpay will develop its online presence that will serve as the Company's onlinehome and as a portfolio. Due to the geographic dispersion of potential customers, the websitewill be used as the main sales tool. The QQwikpay site will feature all services along withpertinent information.

Developing a user-friendly site is one of the primary design goals of the site allowing customersto easily and quickly navigate around the site, finding the information that they are seeking.

5.1 Website Marketing Strategy

Because of the Company's eight (8) partnerships and the potential to add more, we will launchon several popular websites throughout the USA, UK, and Europe.

Our next critical strategy is to implement paid and non-paid placements in search engines. Fora small fee, we will pay for potential customers to click through to our site from an

advertisement on a search engine page to the site. The non-paid method will be submission of the URL to all major search engines, particularly Google and Yahoo, so that QQwikpay displayswhen a prospective customer is searching for payment processing.

In addition to advertisements on search engines, we will advertise on billboards and withwebsites that have similar customer demographics.

5.2 Development Requirements

The website will require one full-time programmer to design and develop the site withprocessing integration 2 weeks.

6 0 Strategy and Implementation Summary


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6.1 SWOT Analysis

The following SWOT Analysis captures the key strengths and weaknesses within the Company,and describes the opportunities and threats facing the Company.

6.1.1 Strengths

Rates are considerably lower than top competitors. QQwikpay will be the first to offer a money back offer to consumers. High quality customer service.

6.1.2 Weaknesses

1. Large initial capital requirement.2. Ongoing expenses related to establishing and maintaining a processing network.3. The reluctance of merchants to change.

6.1.3 Opportunities

Businesses are selling to people across the world via multiple channels; therefore, thereis growing need of business owners to have a reliable and secure payment processing service inplace.1. Strong relationships with alliances offering source of referrals.

6.1.4 Threats

1. Emerging and local competition from European peers and global providers.

2. Price pressure from competitors.6.2 Competitive Edge


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Mobile merchants will pay 2.25% a full 45 cents less than the market leaders. Our profit willbe 1.13% on total volume processed.

6.3.2 Promotion Strategy

The Company plans to use an aggressive marketing program that will include onlineadvertising, print ads, billboards and other platforms to generate service awareness, and valueproposition.

6.4 Sales Strategy

QQwikpay will see a significant profit from its low fixed rate offer. Even though the Companycharges a lesser rate, we foresee the company will see a profit within the first year due to itsstrategic alliances offering a source of referral and online and offline advertising. Furthermore,the company's growing advertising program will generate the growth the company needs tosurvive.

6.4.1 Sales Forecast

Our sales forecast is presented in the chart and table below.

Table: Sales Forecast

Sales Forecast 2012 2013 2014

SalesPayment processing 518,400 559,872 615,859

0 0 0Total Sales 518,400 559,872 615,859

Direct Cost of Sales 2012 2013 2014Internet purchase 8,294.4 8,958.08 9,853.44


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Chart: Sales Monthly

Chart: Sales by Year

Payment processing

$0

0

6,400

12,800

19,200

25,600

32,000

38,400

44,800

J

Sales Monthly

640,000

Sales by Year


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6.7 Strategic Alliances

We are in the process of setting up with 8 different companies in order to efficiently handle thetransactions across the globe. The Company will seek further alliances as it grows into morecountries.

7.0 Management Summary

QQwikpay's management team is made up of the principal, and two employees. Each memberhas specific industry experience that will apply to their assignment.

7.1 Management Team

Chase Justin , founder and owner, is a serial entrepreneur and has been self employed sincehigh school. He has a business and accounting background that provides him with theknowledge needed to manage the company's operation.

Table: Personnel

Personnel Plan2012 2013 2014

Chase Justin 0 0 0Dillon Llyod 0 0 0Philip Ramirez 0 0 0Total People 0 0 0

Total Payroll 0 0 0

8.0 Financial Plan

We are seeking 365k to launch QQwikpay with a 15% ownership. We are seeking these funds


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8.1 Start-up Funding

QQwikpay start-up costs are detailed above, in the Start-up Table. The following table showshow these start-up costs will be funded by owner and investor capital.

Table: Start-up Funding

Start-up Funding Start-up Expenses to Fund 0Start-up Assets to Fund 365,000

Total Funding Required 365,000AssetsNon-cash Assets from Start-up 0Cash Requirements from Start-up 365,000Additional Cash Raised 0Cash Balance on Starting Date 365,000Total Assets 365,000

Liabilities and Capital

LiabilitiesCurrent Borrowing 0Long-term Liabilities 0Accounts Payable (Outstanding Bills) 0Other Current Liabilities (interest-free) 0Total Liabilities 0

Capital

Planned InvestmentOwner 0Investor 36,500Investor 36,500


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Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even 2,195

Assumptions:Average Percent Variable Cost 2%Estimated Monthly Fixed Cost 2,160

Chart: Break-even Analysis

0

640

1,280

1,920

(640 )

(1,280 )

(1,920 )

0 768 1 536 2 304 3 072 3 840

Break-even Analysis


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Table: Profit and Loss

Pro Forma Profit and Loss2012 2013 2014

Sales 518,400 559,872 615,859Direct Cost of Sales 8,294 8,958 9,853Other Costs of Sales 0 0 0Total Cost of Sales 8,294.4 8,958 9,853

Gross Margin 510,105 550,913 606,005

Gross Margin % 98.40% 98.40% 98.40%

ExpensesPayroll 0 0 0Marketing/Promotion 25,920 27,520 27,520Depreciation 0 0 0Insurance 0 0 0Payroll Taxes 0 0 0Other 0 0 0

Total Operating Expenses 25,920 27,520 27,520

Profit Before Interest and Taxes 484,185 523,393 578,485EBITDA 484,185 523,393 578,485

Interest Expense 0 0 0Taxes Incurred 145,255 157,018 173,545

Net Profit 338,929 366,375 404,940Net Profit/Sales 65.38% 65.44% 65.75%

Chart: Profit Monthly


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Chart: Profit Yearly

Chart: Gross Margin Monthly

0

64,000

128,000

192,000

256,000

320,000

384,000

2012 2013 2014

Profit Yearly

44,800

Gross Margin Monthly


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Chart: Gross Margin Yearly

8.4 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet theneeds of the company as the business generates sufficient cash flow to support operations.

0

64,000

128,000

192,000

256,000

320,000384,000

448,000

512,000

576,000

640,000

2012 2013 2014

Gross Margin Yearly


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Table: Cash Flow

Pro Forma Cash Flow 2012 2013 2014

Cash Received

Cash from OperationsCash Sales 518,400 559,872 615,859Subtotal Cash from Operations 518,400 559,872 615,859

Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0 0 0New Current Borrowing 0 0 0New Other Liabilities (interest-free) 0 0 0New Long-term Liabilities 0 0 0Sales of Other Current Assets 0 0 0Sales of Long-term Assets 0 0 0New Investment Received 365,000 0 0Subtotal Cash Received 838,400 559,872 615,859

Expenditures 2012 2013 2014

Expenditures from OperationsCash Spending 0 0 0Bill Payments 165,012 192,049 209,487Subtotal Spent on Operations 165,012 192,049 209,487

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out 0 0 0Principal Repayment of Current Borrowing 0 0 0Other Liabilities Principal Repayment 0 0 0Long-term Liabilities Principal Repayment 0 0 0Purchase Other Current Assets 0 0 0Purchase Long-term Assets 0 0 0Dividends 0 0 0


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Chart: Cash

8.5 Projected Balance Sheet

The following table presents the Balance Sheet for QQwikpay.

Net Cash Flow

Cash Balance

0

128,000

256,000

384,000

512,000

640,000

768,000

896,000

1,024,000

J a

n

F e b

M a r

A p r

M a y

J u

n

J

u l

A u g

S e p

O c t

N o v

D e c

Cash


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Table: Balance Sheet

Pro Forma Balance Sheet 2012 2013 2014

Assets

Current AssetsCash 993,387 1,361,209 1,767,581Other Current Assets 0 0 0Total Current Assets 993,387 1,361,209 1,767,581

Long-term AssetsLong-term Assets 0 0 0Accumulated Depreciation 0 0 0Total Long-term Assets 0 0 0Total Assets 993,387 1,361,209 1,767,581

Liabilities and Capital 2012 2013 2014

Current Liabilities

Accounts Payable 14,457 15,904 17,335Current Borrowing 0 0 0Other Current Liabilities 0 0 0Subtotal Current Liabilities 14,457 15,904 17,335

Long-term Liabilities 0 0 0Total Liabilities 14,457 15,904 17,335

Paid-in Capital 640,000 640,000 640,000Retained Earnings 0 338,929 705,305Earnings 338,929 366,375 404,940.Total Capital 978,929 1,345,305 1,750,245Total Liabilities and Capital 993,387 1,361,209 1,767,581

Net Worth 978,929 1,345,305 1,750,245


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Table: Investment Offering

Investment Offering Seed Round 1 Round 2 ExitProposed Year: 1 2 3 7

Valuation, Investment, SharesInvestment Amount 365,000 0 0Equity Share Offering Percentage 15% 0.00% 0.00%Valuation 2,433,333 0 0 43,000,000Investor Exit Payout 4,024,800 0 0

Investor Years Until Exit 6 5 4Investor IRR 48.56% 0.00% 0.00%

Share Ownership Year 1 Year 2 Year 3 Year 7Founders' Shares 10,000 10,000 10,000 10,000Stock Split Multiple 0 0 0Stock Options Issued 0 0 0 0Investor Shares Issued 1,429 0 0Price per share 244.00 0.00 0.00 3,762.50Options Holders' Shares 0 0 0 0

Year 1 Investors' Shares 1,429 1,429 1,429 1,429Year 2 Investors' Shares 0 0 0Year 3 Investors' Shares 0 0Total Shares Outstanding 11,429 11,429 11,429 11,429

Equity Ownership Percentage Year 1 Year 2 Year 3 Year 7Founders' Equity 85.00% 85.00% 85.00% 85.0%Option Holders' Equity 0.00% 0.00% 0.00% 0.00%Year 1 Investors' Equity 15.0% 15.0% 15.0% 15.0%Year 2 Investors' Equity 0.00% 0.00% 0.00%Year 3 Investors' Equity 0.00% 0.00%Total Equity 100.00% 100.00% 100.00% 100.00%Investors' Equity 15.0% 15.0% 15.0% 15.0%Founders' & Employees' Equity 85.0% 85.0% 85.0% 85.0%


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8.8 Payback

As the table below shows, the initial investor will find that the payback period on thatinvestment will be five years. Our desire is to find an investor who recognizes the potential forlong-term gain.

Table: Payback

Payback

Projected Payback CalculationInvestment 2012 2013 2014 2015 2016

Investment 365,000Cash Returns by Year 73,000 73,000 73,000 73,000 73,000Combination as Income Stream (365,000) 73,000 73,000 73,000 73,000 73,000Cumulative Net Cash Flow toInvestors

(365,000) (292,000) (219,000) (146,000) (73,000) 0

Payback Period 5 years

Chart: Payback Period

128 000

192,000256,000

320,000Payback Period


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Appendix

Table: Sales Forecast

Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales

Payment processing 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200

0 0 0 0 0 0 0 0 0 0 0 0

Total Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Internet purchase 691 691 691 691 691 691 691 691 691 691 691 691

0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Direct Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691

Page 1


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Appendix

Table: Personnel

Personnel Plan


Chase Justin 0 0 0 0 0 0 0 0 0 0 0 0

Dillon Llyod 0 0 0 0 0 0 0 0 0 0 0 0

Philip Ramirez 0 0 0 0 0 0 0 0 0 0 0 0

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll 0 0 0 0 0 0 0 0 0 0 0 0

Page 2


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Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200

Direct Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691

Other Costs of Sales 0 0 0 0 0 0 0 0 0 0 0 0

Total Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691

Gross Margin 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508

Gross Margin % 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40%

Expenses

Payroll 0 0 0 0 0 0 0 0 0 0 0 0

Ma rk eti ng/ Pro mot io n 2,160 2, 160 2 ,16 0 2, 16 0 2 ,160 2 ,16 0 2, 160 2 ,16 0 2, 16 0 2 ,160 2 ,16 0 2, 16 0

Depreciation 0 0 0 0 0 0 0 0 0 0 0 0

Insurance 0 0 0 0 0 0 0 0 0 0 0 0

Payroll Taxes 15% 0 0 0 0 0 0 0 0 0 0 0 0Other 0 0 0 0 0 0 0 0 0 0 0 0

Total Operating Expenses 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160

Profit Before Interest and Taxes

40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348

EBITDA 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348

Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0

Taxe s I nc urr ed 1 2,104 12, 104 12 ,10 4 12, 10 4 12 ,104 12 ,10 4 12, 104 12 ,10 4 12, 10 4 12 ,104 12 ,10 4 12, 10 4

Net Profit 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244Net Profit/Sales 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38%

Page 3


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Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200

Subtotal Cash from Operations 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200

Additional Cash Received

Sales Tax, VAT, HST/GSTReceived

0.00% 0 0 0 0 0 0 0 0 0 0 0 0

New Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0

New Other Liabilities (interest-free)

0 0 0 0 0 0 0 0 0 0 0 0

New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0

Sales of Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0

Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0New Investment Received 365,000 0 0 0 0 0 0 0 0 0 0 0

Subt ota l C as h R ec ei ve d 3 92 ,52 0 43 ,200 43 ,2 00 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43, 20 0 43, 20 0 43, 20 0

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from Operations

Cash Spending 0 0 0 0 0 0 0 0 0 0 0 0

Bill Payments 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956

Subtota l Spent on Operations 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956

Additional Cash Spent

Sales Tax, VAT, HST/GST PaidOut

0 0 0 0 0 0 0 0 0 0 0 0

Principal Repayment of CurrentBorrowing

0 0 0 0 0 0 0 0 0 0 0 0

Other Liabilities PrincipalRepayment

0 0 0 0 0 0 0 0 0 0 0 0

Long-term Liabilities PrincipalRepayment

0 0 0 0 0 0 0 0 0 0 0 0

Purchase Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0

Purchase Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0

Dividends 0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Cash Spent 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956

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Appendix

Net Cash Flow 362,701 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076

Cash Balance 682,701.44

700,777.44

718,853.44

736,929.44

755,005.44

773,081.44

791,157.44

809,233.44

827,309.44

845,385.44

863,461.44

881,537.44

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Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets StartingBalances

Current Assets

Cash 365,000 682,701.44

700,777.44

718,853.44

736,929.44

755,005.44

773,081.44

791,157.44

809,233.44

827,309.44

845,385.44

863,461.44

881,537.44

Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Current Assets 365,000 682,701.

44700,777.

44718,853.

44736,929.

44755,005.

44773,081.

44791,157.

44809,233.

44827,309.

44845,385.

44863,461.

44881,537.

44

Long-term Assets

Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0Accumulated Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Assets 365,000 682,701.

44700,777.

44718,853.

44736,929.

44755,005.

44773,081.

44791,157.

44809,233.

44827,309.

44845,385.

44863,461.

44881,537.

44

Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Current Liabilities

Ac coun ts P aya bl e 0 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0Other Current Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0Subtotal Current Liabilities 0 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457

Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0 Tota l L iabi li ti es 0 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7

Paid-in Capital 365,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000Retained Earnings 0 0 0 0 0 0 0 0 0 0 0 0 0Earnings 0 18,076 56,488.3

2

84,732.8 112,976.

64

141,221.

12

169,464.

96

197,709.

44

225,953.

28

254,197.

76

282,441.

6

310,686.

08

338,929.

92 Total Capital 365,000 651,568 696,488.32

724,732.8

752,976.64

781,221.12

809,464.96

837,709.44

865,953.28

894,197.76

922,441.6

950,686.08

978,929.92

Total Liabi li ties and Capital 365,000 682,701.44

710,945.92

739,189.76

767,434.24

795,678.08

823,922.56

852,166.4

880,410.88

908,654.72

936,899.2

965,143.04

993,387.52

Net Worth 365,000 651,568 696,488 724,732 752,976 781,221 809,464 837,709 865,953 894,197 922,441 950,686 978,929

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