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Overview
2
Table of Contents
Appendix ...................................................................................................................... 25
3
Table of Figures
Figure 1: Organizational Chart ............................................................................................................................12
Figure 2: Post-Financing Expenses ......................................................................................................................16
Figure 3: Financial Highlights ..............................................................................................................................17
Figure 4: Financial Indicators ..............................................................................................................................18
Figure 5: Revenue Forecast .................................................................................................................................19
Figure 6: Profit & Loss .........................................................................................................................................20
Figure 7: Cash Flow .............................................................................................................................................21
Figure 8: Wages & Payroll ...................................................................................................................................22
Figure 9: Balance Sheet .......................................................................................................................................23
Figure 10: Scenario Analysis ................................................................................................................................24
Figure 11: Break-Even Analysis ...........................................................................................................................25
Figure 12: 12 Month Profit & Loss ......................................................................................................................26
Figure 13: 12 Month Cash Flow Statement.........................................................................................................27
4
Executive Summary
Product & Service Summary
Johanson 3 engages in designing, engineering, and partnering with top companies for joint
ventures and licensing agreements. The Johanson 3 provides five models that have each been
uniquely engineered to serve a specific customer demographic:
1. Junior Cargo Bike: This model is designed specifically for children ages 6-10 and is a
smaller edition of the standard version carrying a payload up to 200 pounds and reaching
speeds of 9.4 mph.
2. Urban 1 Cargo Bike: This version is created for teenagers and women for casual use.
3. Urban 2 + Cargo Bike: A larger version of the Urban 1 Cargo Bike for taller people, this
model is larger and supports more cargo with a speed up to 28 mph in urban areas.
4. Rhino Cargo Bike: This bike model has been engineered to support rugged terrain and
massive payloads. It supports up to 660 lbs. of weight, making it ideal for deliveries and
off-roading.
5. X-Plorer Cargo Bike: The X-Plorer is a more sophisticated version designed to meet the
needs for the entire family; it is highly versatile and reaches speeds up to 50 mph and
supports a trailer (trailer will be supplied as part of the accessories).
Market Summary
Johanson 3 will be launching its bikes and accessories with strategic partners internationally,
entering a new market each year beginning with the United States. The company will be
competing within the Motorcycle, Bike and parts manufacturing industry. According to IBIS World
Industry Research, this industry generates $5.8 billion in revenue annually at a growth rate
proportional to GDP. However, the largest market is estimated to be in Asia, where the market
size is 2-3x larger.
Vision
A world where Johanson 3 brings comfortable, portable, and eco-friendly mobility to consumers
and the companies that they work and to revive the market with quality American made
products.
5
Mission
To create the vehicle designs and foundational IP that underlie the most efficient, comfortable,
and productive electric vehicles that minimize space and energy use.
Johanson 3 has the following objectives the management will fulfill within a five year period:
Keys to Success
Johanson 3 will emphasize the following internal qualities that will yield a competitive edge:
Startup Summary
The startup summary covers the remaining FY 2015 and is designed to finalize all Johanson 3
models and complementary accessories for the market. It is also used to gain initial awareness
so that sales may be generated immediately in Q1 of FY 2016. Total startup costs requested by
investors is $3.5 M (USD), with the full breakdown of expenses and return on investment provided
in the financial forecast section.
6
Startup Expenses
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Startup Operating Startup Engineering Startup Marketing & Startup Payroll (Inc. Cash on Hand
Costs Costs PR Contractors)
Service Description
The applications of the cargo bikes and potential for new revenue streams are limitless. As the
company grows, new revenue streams will continue to emerge that will deliver new opportunities.
At the present time, there are three revenue streams on the bike royalties, accessory sales,
leasing, insurance, franchising and customization for the licensees and vertical markets.
Junior
ENGINES(S) 1
7
8
Accessories
The accessories will be licensed under the Johanson 3 brand and complement the style of each
bike. The company expects that accessories will account for (15%) of cumulative trike sales and
will be focused around storage equipment and protective gear. The company will distribute the
accessories on the website, directly market to Johanson 3 buyers, and enter into strategic
partnerships with existing vendors.
Customization
Some enterprise buyers will use the Johanson 3 for custom applications that will require unique
modifications. Many consumers may also prefer uniquely customized trikes, which will require the
licensee to provide the additional revenue for custom design to the company. This will serve as
an additional revenue stream.
Industry Overview
The company will begin by entering the United States market and later expand into India,
Malaysia, Europe, and other regions. The majority of market potential is in the Asia-Pacific and
Western Europe, where the regions are estimated to continue their overall market contribution to
4.0 M electronic bicycles by 2020.
The Johanson 3 is unlike any option on the market and is uniquely position in its own industry
class against scooters and electric bicycles. The three wheeled option provides 2-3x the payload
of anything on the market, with more stability with a third wheel, and still at a comparable price to
any electric option.
The Market
Because Johanson 3 is competing in many markets as a substitute product for golf carts,
motorcycles, scooters, bicycles, and two-wheelers, its total market potential is considerably large.
Overall, the estimated market size reaches 56 M potential buyers, with an estimated global market
size of $682.6 B between Europe and the United States market alone.
Johanson 3 delivers ideal market positioning because it solves the problem of most electric
mobility options having no payload option or sacrificing a smaller compact size for greater
capacity. This places the Johanson 3 as the idea option for commuters that need to have the
same traveling size as a bike, but not compromise speed or payload of a small vehicle.
9
Market Needs
Electric vehicles are too high priced for the ordinary consumer and are overly large.
Motorcycles are overly high priced as a substitute to automobiles.
Scooters carry a low payload capacity and less stability than the Johanson models.
Two-wheelers allows no payload and has a limited speed and short battery life.
Two-wheelers also are excessively expensive and dangerous with no stability.
Market Trends
People around the world are seeking alternative sources of transportation as they become more
aware of the impact on the environment and streets become more crowded. Many consumers are
also replacing automobiles with electric bikes or other similar substitutes, given the cost saving
advantages and greater mobility in crowded urban environments. The Johanson 3 capitalizes on
the long-term changes in the market.
Market Growth
10
Market Segmentation
Each Johanson 3 model is designed to attract a different consumer group and unique application.
In general, there are two groups that may use Johanson 3 product line. This includes enterprise
customers that integrate Johanson 3 into their existing business operations (E.g. factories, golf
courses, malls) and consumer class (E.g. commuters, leisure, and children). The ideal
demographic includes people between the ages of 30-60 with an annual income of at least
$50,000 in urban or sub-urban environments.
The strategy of Johanson 3 is two-fold. The company will develop licensing agreements with
strategic partners in a new target geography in each year of operations. Initial marketing will be
performed in each target region by Johanson 3 (6-12) months in advance before the licensee
agreement is formed with the utilization of a local marketing specialist. This will gather preliminary
interest and market awareness to increase leverage in negations with potential licensees, but
also immediately result in pre-orders and sales when the bike is sold in each market.
Ongoing marketing support will be provided by Johanson 3, in addition to constant research &
development for product enhancement. The company will focus on its core competencies of
research, design, and engineering at a low cost by working with the worlds top contractors. The
internal management team will continually re-asses the company position to consider markets to
enter and the strategic plan on a frequent basis.
Management Team
11
ALEKS GULCHENKO | Marketing Manager
Field manager at Philip Morris, responsible of sales and marketing, customer support
and distribution, 2009
Sales manager for International Global Spirits Holding
Studied at Kiev Humanitarian University, international relationship & management
Product Designer / engineer with 22 years of professional client facing, hands on,
highly technical product designs. Carrying over 100 projects from concept to
manufacturing and expertise.
CEO of Epoch Product Design (Oregon USA)
He was the director of Design at Foarm Inc.
Principal designer & founder of Zany concepts from 1989-1994 California USA
12
SWOT Analysis
Strengths
Weaknesses
The company has not yet actively reached out to potential strategic partners.
Opportunities
Threats
Some countries may attempt to make variations of the technology. This will be mitigated
by heavy branding to distinguish Johanson 3 against anything else in the future.
The technology and competitors are limited by battery power and new materials.
Value Proposition
The key value proposition of the company is the resolution of the pain points that consumers have
in the transportation sector. Consumers want mobility that is fast, portable, and affordable with a
sleek design. Eco-friendly and made in the United States are additional brand enriching qualities
that the company delivers that will strengthen the value proposition and create consumer loyalty.
13
Competitive Comparison
The Johanson 3 delivers unique positioning against anything available on the market, at a price
comparable to low cost providers. The unique difference is greater stability, payload and speed
without sacrificing the dynamic portability of a bicycle. Gasoline based scooters offer comparable
speeds to the Johanson 3, but are poor for the environment, bulky in size and offer a limited
payload. In contrast, electric bicycles are very small but are limited in their payload capacity,
limited to one rider, and restrained in their top speeds.
Foldable
- -
Dismountable
- - -
CO2 free
-
Price $2 050 - 3400 $2050 3400 $2450 - 4770 $1360 - 4100
1500 - 2500 1500 - 2500 1800 - 3500 1000 - 3000
Marketing Plan
The marketing plan consists of helping licensees and joint venture partners for leases to promote
the Johanson 3 product line to consumers. It will do this by promoting the brand as a whole,
creating direct to consumer sales materials to aid in the decision process, and directly helping
companies in their promotions to target demographics. Johanson 3 will use internal marketing
help, but also work with marketing specialists by region so that each brand may be uniquely
tailored to the culture the company enters.
14
Promotion Strategy
Public relations
Relationships will be established with major news outlets to seek national coverage in top publications in
each market focus. Initially, coverage will be sought in literature read by early adopters such as Crunch
base, Wired, and Entrepreneur magazine. PR will then target the mass demographic by gaining national
news coverage, mainstream magazines and newspapers like USA Today, NBC, and ABC channels.
Social Media
Social media will be a major outlet for brand engagement and customer loyalty. Pages are created and
managed for all major social media outlets including Twitter, YouTube, Facebook, and Instagram.
Promotional campaigns may also be implemented in the future that encourage users to engage on the
social media website to create more content and engagement, or promote the sharing of their Johanson
3 bike with the potential to win free accessories.
When a buyer visits a Johanson 3 vendor, it is critical that they are properly informed about the benefits
of the product. The company will also engage in promotional displays, sales brochures, informational
videos, and sales training so that consumers are completely informed when making a purchase. Trade
shows will also be visited to find partnerships/venders, but also direct consumer trade shows so that
consumers may see a fully assembled model and experience the quality of the design in person.
Website
The website has already been developed and is being marketing via SEO. It features an e-commerce style
with unique branding for the overall company. Visitors may learn about Johanson 3 as a company, its
vision, and about each product to determine the most suitable one for their needs. The website will be
continually improved and integrated with the social media websites so that user created content may be
integrated.
15
Financial Forecasts
The company is seeking a total of $3.5 M in financing at a valuation of $70.0 M for 5% equity. The
ownership team has already invested $2.0 M since the companys inception in R&D and initial
branding. The company exit strategy is to have an IPO within 10 years and for a strategic investor
to take part in the companys exit strategy. The financial forecasts assume that the companies
continues with the licensing business model, also offering customization, and accessories as a
contribution to overall profits. The appendix includes an alternative scenario of the company
establishing its own assembly line in order to acquire greater profits from each model sold.
Startup Summary
Startup Expenses
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Startup Operating Startup Engineering Startup Marketing & Startup Payroll (Inc. Cash on Hand
Costs Costs PR Contractors)
16
Financial Highlights
The financial highlights are how the company is projected to perform over the course of the next twelve months
and three to five years. The projections are based on comparable facilities based on estimated revenue range
and size, along with geographic location. We have assumed that for at least the first six-months of post-money
financing that expenses may be greater than revenues while the company invests into growth.
Financial Highlights ($000)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 2016 2017 2018 2019 2020
Revenue 2545 52 86 72 87 132 133 169 242 299 434 538 4791 9266 17133 27472 46131
Gross Margin 2545 52 85 71 85 129 129 163 235 289 420 517 4720 9052 16633 26542 44634
Operating Expense 165 165 165 165 165 165 165 165 165 165 165 165 1980 4677 7640 11511 18348
EBITDA 2380 (113) (80) (94) (148) (104) (104) (69) 2 56 187 285 1925 3406 7829 13543 24444
Net Profit 1416 (81) (60) (69) (101) (75) (75) (54) (11) 21 100 158 897 1895 4548 10589 19828
Gross Margin/Revenue 0% 0% 0% 0% 98% 98% 97% 97% 97% 96% 97% 96% 99% 98% 97% 97% 97%
EBITDA/Revenue 0% 0% 0% 0% -170% -79% -78% -41% 1% 19% 43% 53% 40% 37% 46% 49% 53%
Net Profit/Revenue 0% 0% 0% 0% -116% -57% -56% -32% -5% 7% 23% 29% 19% 20% 27% 39% 43%
Net Cash Flow 2380 (113) (954) (94) (148) 35 (104) (69) 71 56 187 74 1321 2047 4701 10742 19980
Cash Balance - Ending 2415 2301 1348 1254 1106 1141 1038 968 1039 1095 1282 1356 1356 3403 8104 18846 38826
Projected Cash Flow By Year ($000) Projected Net Income By Year ($000)
45000 25000
40000
35000 20000
30000
25000 15000
20000
15000
10000
10000
5000
5000
0
Year 1 Year 2 Year 3 Year 4 Year 5
0
Net Cash Flow Cash Balance Year 1 Year 2 Year 3 Year 4 Year 5
17
Financial Indicators
.
The company believes that it can reach an increasng net profit margin due to economies of scale. Through
investments in capital expenditures, it may decrease its general and administrative expenses. Financial
indicators are based upon the performance of comparable companies in the same asset class, revenue
range and age both from publicly available information and our internal database of research.
Financial Indicators
Year 1 Year 2 Year 3
Profitability %'s:
Gross Margin 99% 98% 97%
Net Profit Margin 19% 20% 27%
EBITDA to Revenue 40% 37% 46%
Return on Assets 19% 29% 41%
Return on Equity 19% 29% 41%
Financial Indicators
120%
100%
80%
60%
40%
20%
0%
Year 1 Year 2 Year 3
18
Revenue Forecast
Revenue Forecast
2016 2017 2018 2019 2020
Revenue Forecast
Johanson 3 | USA 1,420,173 2,863,856 5,727,712 8,591,568 11,360,000
Johanson 3 | India - 1,420,173 2,863,856 5,727,712 8,591,568
Accessories - 639,000 1,491,000 2,769,000 4,473,000
Licensing Fees 2,500,000 2,500,000 2,500,000 1,250,000 5,000,000
Johanson 3 | Europe - - 1,420,173 2,863,856 5,727,712
Johanson 3 | South Korea & Malaysia - - - 1,420,173 4,262,445
Customization 100,000 150,000 225,000 337,500 600,000
Johanson | South America - - - - -
Franchising 624,487 1,248,974 1,873,461 2,508,672 3,135,840
Leasing 96,000 384,000 960,000 1,920,000 2,880,000
Insurance 50,045 60,055 72,065 83,807 100,568
Total Revenue $ 4,790,705 $ 9,266,057 $ 17,133,267 $ 27,472,288 $ 46,131,133
Revenue By Year
50000
40000
30000
20000
10000
0
2016 2017 2018 2019 2020
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
19
Projected Profit and Loss
The profit and loss assume that the company will have margins at a comparable level to companies within
its industry. While management might not have incurred exactly for future operating expenses, they have
been assumed to reasonable reach comparable profit margins to industry comparables. The management
will operate with minimal expenditures to focus on R&D and commercialization expenses until the
company has sufficient income to support dividend distribution.
Expenses
Utilities $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500
Travel $ 50,000 $ 65,000 $ 84,500 $ 109,850 $ 142,805
Office Supples & Materials $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Car Lease $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Intellectual Property $ 275,000 $ 275,000 $ 275,000 $ 275,000 $ 275,000
Contract & Legal $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
Insurance $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
Office & Showroom Rental $ 140,000 $ 168,000 $ 201,600 $ 241,920 $ 290,304
United States Liability Insurance $ 5,859 $ 5,859 $ 5,859 $ 5,859 $ 5,859
Recall Insurance $ 3,662 $ 3,662 $ 3,662 $ 3,662 $ 3,662
Engineering Costs $ 650,000 $ 780,000 $ 936,000 $ 1,123,200 $ 1,347,840
Sales & Marketing $ 239,535 $ 463,303 $ 856,663 $ 1,373,614 $ 2,306,557
Other Taxes (10%) $ 479,071 $ 926,606 $ 1,713,327 $ 2,747,229 $ 4,613,113
Other Risk Insurance $ 1,464 $ 1,464 $ 1,464 $ 1,464 $ 1,464
Total Operating Expenses $ 1,979,591 $ 2,823,894 $ 4,213,075 $ 6,016,798 $ 9,121,604
Wages & Payroll $ 815,055 $ 968,470 $ 1,164,105 $ 1,487,770 $ 1,842,250
Depreciation, Amortization & Taxes $ 1,027,944 $ 1,511,762 $ 3,280,789 $ 2,953,718 $ 4,616,179
Net Income $ 897,106 $ 1,894,518 $ 4,548,058 $ 10,589,378 $ 19,827,787
Net Income/Revenue 19% 20% 27% 39% 43%
20
Break-Even Analysis
NET UNITS NET REVENUE FIXED COST VARIABLE COST TOTAL COST TOTAL PROFIT
- $0 $1,979,591 $0 $1,979,591 -$1,979,591
500 $284,000 $1,979,591 $8,520 $1,988,111 -$1,704,111
1,000 $568,000 $1,979,591 $17,040 $1,996,631 -$1,428,631
1,500 $852,000 $1,979,591 $25,560 $2,005,151 -$1,153,151
2,000 $1,136,000 $1,979,591 $34,080 $2,013,671 -$877,671
2,500 $1,420,000 $1,979,591 $42,600 $2,022,191 -$602,191
3,000 $1,704,000 $1,979,591 $51,120 $2,030,711 -$326,711
3,500 $1,988,000 $1,979,591 $59,640 $2,039,231 -$51,231
4,000 $2,272,000 $1,979,591 $68,160 $2,047,751 $224,249
4,500 $2,556,000 $1,979,591 $76,680 $2,056,271 $499,729
5,000 $2,840,000 $1,979,591 $85,200 $2,064,791 $775,209
5,500 $3,124,000 $1,979,591 $93,720 $2,073,311 $1,050,689
6,000 $3,408,000 $1,979,591 $102,240 $2,081,831 $1,326,169
6,500 $3,692,000 $1,979,591 $110,760 $2,090,351 $1,601,649
7,000 $3,976,000 $1,979,591 $119,280 $2,098,871 $1,877,129
7,500 $4,260,000 $1,979,591 $127,800 $2,107,391 $2,152,609
8,000 $4,544,000 $1,979,591 $136,320 $2,115,911 $2,428,089
$5,000,000
$4,500,000
COST-VOLUME-PROFIT
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
0
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
7500
8000
500
Number of Bikes
21
Projected Cash Flow
Cash Outflows
Investing Activities
New Fixed Assets Purchases $ - $ - $ - $ - $ -
Inventory Addition to Bal.Sheet $ - $ - $ - $ - $ -
Cost of Sales $ 71,009 $ 214,201 $ 500,587 $ 930,165 $ 1,497,086
Operating Activities
Salaries and Wages $ 543,370 $ 968,470 $ 1,164,105 $ 1,487,770 $ 1,842,250
Fixed Business Expenses $ 1,979,591 $ 4,677,105 $ 7,639,728 $ 11,511,256 $ 18,347,831
Taxes $ 875,361 $ 1,359,179 $ 3,128,205 $ 2,801,135 $ 4,463,595
Financing Activities
Loan Payments $ - $ - $ - $ - $ -
Line of Credit Interest $ - $ - $ - $ - $ -
Line of Credit Repayments $ - $ - $ - $ - $ -
Dividends Paid $ - $ - $ - $ - $ -
Year 1 Cash
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Month 9
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 10
Month 11
Month 12
(500,000)
(1,000,000)
(1,500,000)
22
Projected Balance Sheet
The projected balance sheet assumes that there are no dividend draws and all cash flow is re-invested
back into the company at the end of the year. The balance sheet does not assume any line of credits or
account receivables that are outstanding at the end of the year and that the company will have paid off
all liabilities. Likewise, it assumes that all accounts will pay within thirty-days and there will be no
delinquency of payments.
Long-term Assets
Long-term Assets $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000
Accumulated Depreciation $ 8,333 $ 16,667 $ 25,000 $ 33,333 $ 41,667
Total Long-term Assets $ 241,667 $ 233,333 $ 225,000 $ 216,667 $ 208,333
Total Assets $ 4,697,106 $ 6,591,624 $ 11,139,683 $ 21,729,062 $ 41,556,849
Long-term Liabilities $ - $ - $ - $ - $ -
Total Liabilities $ - $ - $ - $ - $ -
23
Sensitivity Analysis
Revenue
$35,000,000
$30,000,000
Best Case
$25,000,000
$20,000,000
Most Likely
$15,000,000
$10,000,000
Worst Case
$5,000,000
$-
Year 1 Year 2 Year 3 Year 4 Year 5
24
Appendix
Gross Margin $ 2,544,913 $ 51,518 $ 84,949 $ 70,855 $ 85,136 $ 129,044 $ 129,319 $ 163,391 $ 234,646 $ 288,864 $ 419,653 $ 517,408
Gross Margin/Revenue 100% 99% 99% 98% 98% 98% 97% 97% 97% 96% 97% 96%
Expenses
Utilities $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042
Travel $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167
Office Supples & Materials $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083
Car Lease $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250
Intellectual Property $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917 $ 22,917
Contract & Legal $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250 $ 6,250
Total Operating Expenses $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966 $ 164,966
EBIT $ 2,379,947 $ (113,448) $ (80,017) $ (94,111) $ (79,830) $ (35,922) $ (35,647) $ (1,575) $ 69,680 $ 123,898 $ 254,688 $ 352,442
EBIT/Revenue -92% -27% -27% -1% -92% -27% -27% -1% 29% 41% 59% 66%
25
Year 1 Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Revenue
$ 2,545,424 $ 52,234 $ 85,951 $ 72,258 $ 87,100 $ 131,793 $ 133,168 $ 168,780 $ 242,190 $ 299,426 $ 434,440 $ 537,941
New Current Borrowing
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Long-Term Liabilities
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Other Current Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Investment Received
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Subtotal Cash Received
$ 2,545,424 $ 52,234 $ 85,951 $ 72,258 $ 87,100 $ 131,793 $ 133,168 $ 168,780 $ 242,190 $ 299,426 $ 434,440 $ 537,941
Expenditures
26
Pro Forma Profit and Loss
Expenses
Utilities $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500
Travel $ 50,000 $ 65,000 $ 84,500 $ 109,850 $ 142,805
Office Supples & Materials $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Car Lease $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Intellectual Property $ 275,000 $ 275,000 $ 275,000 $ 275,000 $ 275,000
Contract & Legal $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
Insurance $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
Office & Showroom Rental $ 140,000 $ 168,000 $ 201,600 $ 241,920 $ 290,304
United States Liability Insurance $ 5,859 $ 5,859 $ 5,859 $ 5,859 $ 5,859
Recall Insurance $ 3,662 $ 3,662 $ 3,662 $ 3,662 $ 3,662
Engineering Costs $ 650,000 $ 780,000 $ 936,000 $ 1,123,200 $ 1,347,840
Sales & Marketing $ 239,535 $ 463,303 $ 856,663 $ 1,373,614 $ 2,306,557
Other Taxes (10%) $ 479,071 $ 926,606 $ 1,713,327 $ 2,747,229 $ 4,613,113
Other Risk Insurance $ 1,464 $ 1,464 $ 1,464 $ 1,464 $ 1,464
Total Operating Expenses $ 1,979,591 $ 2,823,894 $ 4,213,075 $ 6,016,798 $ 9,121,604
Wages & Payroll $ 815,055 $ 968,470 $ 1,164,105 $ 1,487,770 $ 1,842,250
Depreciation, Amortization & Taxes $ 1,027,944 $ 1,511,762 $ 3,280,789 $ 2,953,718 $ 4,616,179
Net Income $ 897,106 $ 1,894,518 $ 4,548,058 $ 10,589,378 $ 19,827,787
Net Income/Revenue 19% 20% 27% 39% 43%
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Pro Forma Profit and Loss (Assembly Line Scenario)
Expenses
Utilities $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500
Travel $ 50,000 $ 65,000 $ 84,500 $ 109,850 $ 142,805
Office Supples & Materials $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Car Lease $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Intellectual Property $ 275,000 $ 275,000 $ 275,000 $ 275,000 $ 275,000
Contract & Legal $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
Insurance $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
Office & Showroom Rental $ 140,000 $ 168,000 $ 201,600 $ 241,920 $ 290,304
United States Liability Insurance $ 5,859 $ 5,859 $ 5,859 $ 5,859 $ 5,859
Recall Insurance $ 3,662 $ 3,662 $ 3,662 $ 3,662 $ 3,662
Engineering Costs $ 650,000 $ 1,300,000 $ 2,600,000 $ 5,200,000 $ 10,400,000
Sales & Marketing $ 850,073 $ 2,124,053 $ 4,651,913 $ 8,296,203 $ 13,658,733
Other Taxes (10%) $ 850,073 $ 2,124,053 $ 4,651,913 $ 8,296,203 $ 13,658,733
Other Risk Insurance $ 1,464 $ 1,464 $ 1,464 $ 1,464 $ 1,464
Total Operating Expenses $ 2,961,131 $ 6,202,091 $ 12,610,911 $ 22,565,161 $ 38,571,560
Wages & Payroll $ 815,055 $ 968,470 $ 1,164,105 $ 1,487,770 $ 1,842,250
Depreciation, Amortization & Taxes $ 1,280,633 $ 2,221,522 $ 5,082,065 $ 4,872,595 $ 6,653,815
Net Income $ 1,213,640 $ 2,996,658 $ 7,287,473 $ 16,525,246 $ 28,839,813
Net Income/Revenue 14% 14% 16% 20% 21%
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