Based on detailed financial projections from our Balance Sheet, if the company receives the sought after approximately $500,000 in funding, it will operate profitably..
The following table and chart show our projected Break-even Analysis.
The table below contains the projected profit and loss information for IWA.
The IWA formula for success is based on consistent revenues generated from specific sponsorship packages and advertising revenues created by our television programming.
Within each weekly program there are 14 minutes of commercial advertising time broken down into either 60-second, 30-second, or 20-second spots. We are entitled to keep up to 10 minutes of that commercial time for re-sale.
Also, within the format of our television programming there are 5 basic "segments" plus an open and a close. It is our intent to find major sponsors to host at least 4 of these segments wherein each sponsor will contribute $250,000 annually to be the exclusive or "official" presentor of that segment of the show each week.
TV advertising revenue projections are based on the IWA selling 28 30-second spots per show, at a cost of $1,500, each adding up to $43,000 per show, or $504,000 in gross annual advertising sales. Less ad agency commissions (15%), this nets out to $428,000 in annual advertising revenue to the IWA.
Our pay-per-view income projections are based on our share (40%) of quarterly events with a 0.2% buy rate at $19.95 per household. This nets out to $3.8 million in annual pay-per-view revenues to the IWA.
Attendance revenue is modestly based on 1,500 tickets sold per month/event @ $10 each over the 12 shows per year. Site fees are based on a minimum of $20,000 per TV taping plus travel, rooms, and food. This nets out to $180,000 in annual gate attendance or site fees revenues to the IWA.
Merchandise projections at events are conservatively based on each of the 1,500 in attendance spending $1 each per show over the 12 shows per year. This nets out to $18,000 in annual live event merchandise revenues to the IWA.
Food and beverage revenues at live events ate based on each of the 1,500 in attendance spending $2 each per show over the 12 shows per year. This nets out to $ 36,000 in annual food and beverage revenues to the IWA.
All financial projects herein are conservative and within reason by industry standards.
The following table and chart show our projected cash flow.
The Balance Sheet below contains important cash flow information, as well as assets, liabilities, and capital expectations.
The following table contains information from the entertainment industry, as determined by the Standard Industry Classification (SIC) Index code 7999, Amusement and Recreation, Not Elsewhere Classified.