Heavy Lifting, Inc. is being formed in April, 2005 to develop a model and prototype for approval after trial by the FAA and thereafter as a provider of Heavy Lifting aircraft weight and balance systems and consultant services to the FAA and airports in the U.S., and subsequently around the world. Its office will be in Gold Coast City, California.
The company will provide Heavy Lifting aircraft weight and balance systems and consultant services to airport owners, aviation authorities, airlines, government agencies and other interested parties, such as insurers, manufacturers, accident investigation bodies and maintenance companies.
The founders of Heavy Lifting, Inc. are:
Heavy Lifting, Inc., a public unlisted company, will be registered in Gold Coast City, California and will authorize 30,000,000 shares of common and preferential stock. 10,000,000 shares will be set aside as founders' stock to be divided up amongst key founding shareholders as follows, based on their investment:
It is also envisaged that management stock options will be made available to key management personnel after operations commence. Founders' stock plus option stock will not total more than 33% of the authorized shares.
Initial seed capital is to be attracted by way of either an advance payment or other negotiated financial arrangement or both with:
The expected proceeds from the Private Placement are expected to be $2,000,000 at "seed" stage and $300,000,000 in I.P.O. proceeds (projected at $3 per share). Management cannot assure that an I.P.O. will be available at the time desired and at the price sought.
Heavy Lifting, Inc.'s start up costs are projected below, and will be provided directly from "seed" capital.
In the first year year we will build (2) Heavy Lifting machines as follows:
Once approved, Heavy Lifting will market the product extensively in US and Europe. Pricing for these Heavy Lifting systems is provisionally estimated at $1,000,000 each (sales of these prototypes are listed in the first month of the plan). Costing is estimated at $650-750,000 each reducing as R & D costs are absorbed. Costing includes consultant services, manufacture of Heavy Lifting locally and under license in Ireland and elsewhere in the world. These prototype materials costs are listed under Inventory, in the Start-up table, below. We will also need to buy equipment sufficient to begin the production process, listed as current and long-term assets, below.
The above figures assume a Deluxe Heavy Lifting Mk I model without customization. The Mk I model includes:
Securing sufficient funding to support the introduction to the aviation industry of Heavy Lifting systems. Specifically; the research and development costs associated with producing a computer model, a portable demonstration unit and funding for the building testing and operation of at least the first full scale unit in ground for FAA; the operation of this unit free of charge for 6 months to build an initial data base.
Due to the need for Government approval, the FAA has been approached on a personal basis. Heavy Lifting Systems needs to build, test and trial its product for a period of up to 6 months. Then the aviation authorities need time to develop rules, regulations and SOP's for using the Heavy Lifting Systems; they have given us a time frame of a further six months. This makes a total of one year for our start-up period, before payment for the first systems.
This is a necessary evil of creating a world first. It is akin to designing a new type of aircraft. First you must build it to demonstrate it will fly. In the Heavy Lifting case, the weigh bridge design is not new, but the application of the customized weigh bridge to aircraft, and the formulas in the software that allow weight & balance for such a complicated craft to be measured, are totally unique.
To fund our start-up requirements, we will take out a long-term loan, repayable over 10 years. We also need a large investment. For this investment, we are prepared to offer 20,000 shares of equity stock in the venture (see Company Ownership, above, for details). Dividends between start-up and 2010 will be dispersed. Details of the investment analysis can be found in the Financial Plan section, below.
Management intends to operate initially from a home office based in Gold Coast City, CA. Office space allocated is 200 sq ft at no charge during the first year of start-up. Virtual office services will be provided as necessary. All printing, faxing, copying and electronic mail will be provided at this office, except for embossed Logo and letterhead printing.
After start-up, in our first plan year, Heavy Lifting, Inc. will occupy commercial office space at [proprietary and confidential information removed]. This space is available at $100 sq. ft., plus parking fees and maintenance fees.
This space is sufficient for the following usage:
Later, regional offices are planned for locations to be leased in Montreal, Canada (North America Branch), Bangkok, Thailand (Asia and SE Asia Branch), and Dublin, Ireland (European Branch).