RQM Technologies

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Tracking Device Maker Business Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Family Consumers 0% $0 $0 $0 $35,000 $45,000 $50,000 $60,000 $60,000 $65,000 $70,000 $75,000 $80,000
Channel Sales to OEMs 0% $0 $0 $0 $60,000 $70,000 $70,000 $70,000 $75,000 $75,000 $85,000 $50,000 $50,000
Businesses 0% $0 $0 $0 $14,000 $16,000 $18,000 $20,000 $23,000 $25,000 $27,500 $30,000 $33,000
Military 0% $0 $0 $0 $0 $0 $0 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Political 0% $0 $0 $0 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total Sales $0 $0 $0 $159,000 $181,000 $188,000 $225,000 $233,000 $240,000 $257,500 $230,000 $238,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Chipset $0 $0 $0 $55,650 $63,350 $65,800 $78,750 $81,550 $84,000 $90,125 $80,500 $83,300
Programming $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Packaging $0 $0 $0 $23,850 $27,150 $28,200 $33,750 $34,950 $36,000 $38,625 $34,500 $35,700
Subtotal Direct Cost of Sales $0 $0 $0 $79,500 $90,500 $94,000 $112,500 $116,500 $120,000 $128,750 $115,000 $119,000
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Steven M. Bloome (Pres/CEO) 0% $7,500 $7,500 $7,500 $7,500 $7,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500
Andrew J. Siska (CTO) 0% $7,500 $7,500 $7,500 $7,500 $7,500 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $10,000
CEO 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
CFO 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Reception/Secretarial 0% $0 $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total People 2 2 2 3 3 3 3 3 3 3 3 3
Total Payroll $15,000 $15,000 $15,000 $17,500 $17,500 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $21,000
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
Long-term Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $0 $0 $0 $159,000 $181,000 $188,000 $225,000 $233,000 $240,000 $257,500 $230,000 $238,000
Direct Cost of Sales $0 $0 $0 $79,500 $90,500 $94,000 $112,500 $116,500 $120,000 $128,750 $115,000 $119,000
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $79,500 $90,500 $94,000 $112,500 $116,500 $120,000 $128,750 $115,000 $119,000
Gross Margin $0 $0 $0 $79,500 $90,500 $94,000 $112,500 $116,500 $120,000 $128,750 $115,000 $119,000
Gross Margin % 0.00% 0.00% 0.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
Expenses
Payroll $15,000 $15,000 $15,000 $17,500 $17,500 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $21,000
Sales and Marketing and Other Expenses $0 $0 $12,500 $16,000 $17,500 $20,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising & Marketing Collateral $20,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Industrial Design $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357 $5,357
Rent $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900
Telephone $500 $500 $600 $600 $750 $750 $750 $50 $750 $750 $750 $750
Utilities $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Payroll Taxes $3,200 $3,200 $3,200 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,900 $4,900
Company Vehicles and related expenses 15% $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Trade Shows & Events $0 $0 $0 $0 $15,000 $15,000 $0 $0 $0 $0 $0 $0
Total Operating Expenses $49,057 $54,057 $66,657 $73,857 $90,507 $94,507 $84,507 $83,807 $84,507 $84,507 $85,007 $87,007
Profit Before Interest and Taxes ($49,057) ($54,057) ($66,657) $5,643 ($7) ($507) $27,993 $32,693 $35,493 $44,243 $29,993 $31,993
EBITDA ($49,057) ($54,057) ($66,657) $5,643 ($7) ($507) $27,993 $32,693 $35,493 $44,243 $29,993 $31,993
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($14,717) ($16,217) ($19,997) $1,693 ($2) ($152) $8,398 $9,808 $10,648 $13,273 $8,998 $9,598
Net Profit ($34,340) ($37,840) ($46,660) $3,950 ($5) ($355) $19,595 $22,885 $24,845 $30,970 $20,995 $22,395
Net Profit/Sales 0.00% 0.00% 0.00% 2.48% 0.00% -0.19% 8.71% 9.82% 10.35% 12.03% 9.13% 9.41%
Pro Forma 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
Cash from Operations
Cash Sales $0 $0 $0 $79,500 $90,500 $94,000 $112,500 $116,500 $120,000 $128,750 $115,000 $119,000
Cash from Receivables $0 $0 $0 $0 $2,650 $79,867 $90,617 $94,617 $112,633 $116,617 $120,292 $128,292
Subtotal Cash from Operations $0 $0 $0 $79,500 $93,150 $173,867 $203,117 $211,117 $232,633 $245,367 $235,292 $247,292
Additional Cash Received
Sales Tax, VAT, HST/GST Received 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 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $0 $79,500 $93,150 $173,867 $203,117 $211,117 $232,633 $245,367 $235,292 $247,292
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $15,000 $15,000 $15,000 $17,500 $17,500 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $21,000
Bill Payments $645 $19,457 $23,134 $38,105 $223,353 $175,525 $174,323 $206,380 $195,665 $200,577 $215,746 $175,684
Subtotal Spent on Operations $15,645 $34,457 $38,134 $55,605 $240,853 $194,525 $193,323 $225,380 $214,665 $219,577 $234,746 $196,684
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $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 $50,000
Subtotal Cash Spent $15,645 $34,457 $38,134 $55,605 $240,853 $194,525 $193,323 $225,380 $214,665 $219,577 $234,746 $246,684
Net Cash Flow ($15,645) ($34,457) ($38,134) $23,895 ($147,703) ($20,658) $9,793 ($14,264) $17,969 $25,790 $546 $608
Cash Balance $333,655 $299,199 $261,065 $284,960 $137,257 $116,599 $126,392 $112,129 $130,097 $155,887 $156,433 $157,041
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $349,300 $333,655 $299,199 $261,065 $284,960 $137,257 $116,599 $126,392 $112,129 $130,097 $155,887 $156,433 $157,041
Accounts Receivable $0 $0 $0 $0 $79,500 $167,350 $181,483 $203,367 $225,250 $232,617 $244,750 $239,458 $230,167
Inventory $0 $0 $0 $0 $87,450 $99,550 $103,400 $123,750 $128,150 $132,000 $141,625 $126,500 $130,900
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $349,300 $333,655 $299,199 $261,065 $451,910 $404,157 $401,482 $453,509 $465,529 $494,714 $542,262 $522,392 $518,108
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated 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 $349,300 $333,655 $299,199 $261,065 $451,910 $404,157 $401,482 $453,509 $465,529 $494,714 $542,262 $522,392 $518,108
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $18,695 $22,079 $30,605 $217,500 $169,751 $167,431 $199,863 $188,998 $193,338 $209,916 $169,051 $192,371
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $18,695 $22,079 $30,605 $217,500 $169,751 $167,431 $199,863 $188,998 $193,338 $209,916 $169,051 $192,371
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $18,695 $22,079 $30,605 $217,500 $169,751 $167,431 $199,863 $188,998 $193,338 $209,916 $169,051 $192,371
Paid-in Capital $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000
Retained Earnings ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($100,700) ($150,700)
Earnings $0 ($34,340) ($72,180) ($118,840) ($114,890) ($114,895) ($115,249) ($95,654) ($72,769) ($47,924) ($16,954) $4,041 $26,436
Total Capital $349,300 $314,960 $277,120 $230,460 $234,410 $234,406 $234,051 $253,646 $276,531 $301,376 $332,346 $353,341 $325,736
Total Liabilities and Capital $349,300 $333,655 $299,199 $261,065 $451,910 $404,157 $401,482 $453,509 $465,529 $494,714 $542,262 $522,392 $518,108
Net Worth $349,300 $314,960 $277,120 $230,460 $234,410 $234,405 $234,051 $253,646 $276,531 $301,376 $332,346 $353,341 $325,736