NovOculi

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Eye Surgery Equipment Maker Business Plan

Company Summary

NovOculi, Inc. will research and develop biomedical devices to aid in the treatment of a variety of ophthalmologic diseases and conditions. Initially, its customers will be those individuals that desire permanent refractive correction but do not wish to risk the multitude of complications associated with the current procedure, LASIK.

The company is currently developing its patent-applied technology to final product and approval stage. It is also seeking to establish its corporate identity in the medical products field.

2.1 Company Ownership

The company will be incorporated in North Carolina. It will have authorized 15 million ordinary shares and 150,000 preferred shares. The rights and privileges of these shares will be stated in the company's Articles of Incorporation.

The proposed share capital of the company prior to capital raising

Owner
Percentage of Shares Owned
Dr. Daniel Burnett
65%

Joseph Hewitt

10%

Andy Rubinson
10%

Joseph Walker

10%

Dr. Terry Kim
5%

The company has raised seed capital from its principals.

Additional working capital will be raised in two sections. Section 1 will be conducted in January of Year 1 and will raise money for use in accordance with the business plan. Section 2 will raise additional funds in Year 3 of the business plan, but will be conducted only if sufficient research grants are not obtained in Year 2. It is deemed likely by the company's industry consultants that the research grants will be obtained and, therefore, section 2 will not be necessary.

2.2 Start-up Summary

The key elements in the start-up plan for the company are:

  • Formulation of the strategic business plan.
  • The establishment of a corporate identity.
  • The establishment of a location and place of doing business.
  • Funding of working capital requirements, purchases of other equipment and assets deemed necessary for the principle operating activities of the company, and additional capital raising alternatives.
  • Initiation of Research and Development of existing and future products.

Costs of raising capital through private placement.

Startup seed funding was raised from the founders of the company for these purposes. This funding will be available in late 2001 and these tasks have either been completed successfully or are in the final process of completion.

These are treated purely as start-up expenses and initial working capital by this plan. The founders' investment is treated as cash-on-hand as of the start of this plan on January 1, 2002. The remainder of the start-up capital required, as well as capital required, for the continuation of operations in the first six months will be provided by selling shares via a private placement to key investors. The capital obtained through this fund-raising exercise is expected to provide an additional boost and the business plan calls for these funds to be infused for the purposes of operating the business, in accordance with this business plan.

Start-up
Requirements
Start-up Expenses
Legal $5,000
Stationery etc. $1,000
Consultants $5,000
Insurance $2,000
Rent $5,000
Expensed equipment $15,000
Other $0
Total Start-up Expenses $33,000
Start-up Assets
Cash Required $317,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $0
Total Assets $317,000
Total Requirements $350,000
Start-up Funding
Start-up Expenses to Fund $33,000
Start-up Assets to Fund $317,000
Total Funding Required $350,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $317,000
Additional Cash Raised $0
Cash Balance on Starting Date $317,000
Total Assets $317,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Dr. Daniel Burnett $130,000
Joseph Hewitt $70,000
Dr. Terry Kim $70,000
Andy Rubinson $40,000
Joseph Walker $40,000
Additional Investment Requirement $0
Total Planned Investment $350,000
Loss at Start-up (Start-up Expenses) ($33,000)
Total Capital $317,000
Total Capital and Liabilities $317,000
Total Funding $350,000

2.3 Company Locations and Facilities

The company will initially be based in the Research Triangle Park area in North Carolina. The website (www.NovOculi.com) has already been registered, and the trademark process has been initiated.

In view of the strategic plan to contract with a third party for all manufacturing requirements, the facilities needed will be mainly offices for personnel and storage space for inventory. After Year 5, when the market for our products reaches our anticipated milestone, the company will explore the feasibility of constructing its own manufacturing facilities.

Ophthalmologist training for the NICS procedure will be available at six collaborative research centers in the following cities: San Francisco, Boston, Atlanta, Philadelphia, Kansas City and Durham, NC. Each site will be coordinated by, but financially independent of, NovOculi and will have in-depth training sessions led by a prominent ophthalmic surgeon.

Initial research and development (R&D) will be accomplished through a collaborative effort with the Stanford University Department of Ophthalmology, who provides NovOculi's initial research facilities.