Brilliant Points, Inc.
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 | |||||||||||||
| Upgrade Units | 5000% | $0 | $0 | $30 | $80 | $200 | $400 | $700 | $1,100 | $1,600 | $2,200 | $2,900 | $3,700 |
| Upgrade Kits (Net over cost of kit) | 0% | $0 | $0 | $1,470 | $3,920 | $9,800 | $19,600 | $34,300 | $53,900 | $78,400 | $107,800 | $142,100 | $181,300 |
| Licensing Revenue | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $0 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| 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 | |
| Upgrade Units | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Upgrade Kits (Net over cost of kit) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Licensing Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | ||
| Karl C. Hansen, Chairman/CEO/CTO/VP Engineering | 0% | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
| VP of Operations | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
| VP of Corporate Strategy, Business Development and Sales | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
| VP of Marketing | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
| Director of Finance | 0% | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 |
| Lisa Hansen, Executive Assistant, Market & Usability Research | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Office Manager | 0% | $0 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Order Fulfillment | 0% | $0 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
| Order Fulfillment | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Sales | 0% | $0 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Sales | 0% | $0 | $0 | $0 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Marketing | 0% | $0 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Marketing | 0% | $0 | $0 | $0 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Developer | 0% | $0 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 |
| Developer | 0% | $0 | $0 | $0 | $7,800 | $7,800 | $7,800 | $7,800 | $7,800 | $7,800 | $7,800 | $7,800 | $7,800 |
| Developer | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Total People | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | |
| Total Payroll | $67,500 | $98,500 | $98,500 | $121,300 | $121,300 | $121,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | |
| 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 | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
| 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 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gross Margin | $0 | $0 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| Gross Margin % | 0.00% | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Expenses | |||||||||||||
| Payroll | $67,500 | $98,500 | $98,500 | $121,300 | $121,300 | $121,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | |
| Sales and Marketing and Other Expenses | $13,000 | $16,000 | $23,000 | $33,000 | $45,000 | $55,000 | $57,000 | $67,000 | $69,000 | $79,000 | $81,000 | $81,000 | |
| Depreciation | TBD | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leased Equipment | TBD | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Utilities | See Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Insurance | TBD | $0 | $0 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Rent (Full Services, 1st year covered in startup costs) | See Note | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Payroll Taxes | 30% | $20,250 | $29,550 | $29,550 | $36,390 | $36,390 | $36,390 | $38,490 | $38,490 | $38,490 | $38,490 | $38,490 | $38,490 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $100,750 | $144,050 | $153,550 | $193,190 | $205,190 | $215,190 | $226,290 | $236,290 | $238,290 | $248,290 | $250,290 | $250,290 | |
| Profit Before Interest and Taxes | ($100,750) | ($144,050) | ($152,050) | ($189,190) | ($195,190) | ($195,190) | ($191,290) | ($181,290) | ($158,290) | ($138,290) | ($105,290) | ($65,290) | |
| EBITDA | ($100,750) | ($144,050) | ($152,050) | ($189,190) | ($195,190) | ($195,190) | ($191,290) | ($181,290) | ($158,290) | ($138,290) | ($105,290) | ($65,290) | |
| Interest Expense | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($102,417) | ($145,717) | ($153,717) | ($190,857) | ($196,857) | ($196,857) | ($192,957) | ($182,957) | ($159,957) | ($139,957) | ($106,957) | ($66,957) | |
| Net Profit/Sales | 0.00% | 0.00% | -10247.78% | -4771.42% | -1968.57% | -984.28% | -551.30% | -332.65% | -199.95% | -127.23% | -73.76% | -36.19% | |
| 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 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| Subtotal Cash from Operations | $0 | $0 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| 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 | $1,500 | $4,000 | $10,000 | $20,000 | $35,000 | $55,000 | $80,000 | $110,000 | $145,000 | $185,000 | |
| 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 | $67,500 | $98,500 | $98,500 | $121,300 | $121,300 | $121,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | $128,300 | |
| Bill Payments | $1,164 | $35,327 | $47,533 | $57,278 | $73,957 | $85,890 | $95,693 | $99,990 | $109,723 | $111,990 | $121,723 | $123,657 | |
| Subtotal Spent on Operations | $68,664 | $133,827 | $146,033 | $178,578 | $195,257 | $207,190 | $223,993 | $228,290 | $238,023 | $240,290 | $250,023 | $251,957 | |
| 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 | $0 | |
| Subtotal Cash Spent | $68,664 | $133,827 | $146,033 | $178,578 | $195,257 | $207,190 | $223,993 | $228,290 | $238,023 | $240,290 | $250,023 | $251,957 | |
| Net Cash Flow | ($68,664) | ($133,827) | ($144,533) | ($174,578) | ($185,257) | ($187,190) | ($188,993) | ($173,290) | ($158,023) | ($130,290) | ($105,023) | ($66,957) | |
| Cash Balance | $2,997,336 | $2,863,509 | $2,718,976 | $2,544,398 | $2,359,141 | $2,171,951 | $1,982,958 | $1,809,668 | $1,651,645 | $1,521,355 | $1,416,331 | $1,349,375 | |
| 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 | $3,066,000 | $2,997,336 | $2,863,509 | $2,718,976 | $2,544,398 | $2,359,141 | $2,171,951 | $1,982,958 | $1,809,668 | $1,651,645 | $1,521,355 | $1,416,331 | $1,349,375 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $3,066,000 | $2,997,336 | $2,863,509 | $2,718,976 | $2,544,398 | $2,359,141 | $2,171,951 | $1,982,958 | $1,809,668 | $1,651,645 | $1,521,355 | $1,416,331 | $1,349,375 |
| 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 | $3,066,000 | $2,997,336 | $2,863,509 | $2,718,976 | $2,544,398 | $2,359,141 | $2,171,951 | $1,982,958 | $1,809,668 | $1,651,645 | $1,521,355 | $1,416,331 | $1,349,375 |
| 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 | $33,753 | $45,643 | $54,826 | $71,105 | $82,705 | $92,371 | $96,335 | $106,001 | $107,935 | $117,601 | $119,535 | $119,535 |
| Current Borrowing | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $250,000 | $283,753 | $295,643 | $304,826 | $321,105 | $332,705 | $342,371 | $346,335 | $356,001 | $357,935 | $367,601 | $369,535 | $369,535 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $250,000 | $283,753 | $295,643 | $304,826 | $321,105 | $332,705 | $342,371 | $346,335 | $356,001 | $357,935 | $367,601 | $369,535 | $369,535 |
| Paid-in Capital | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 | $3,750,000 |
| Retained Earnings | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) | ($934,000) |
| Earnings | $0 | ($102,417) | ($248,133) | ($401,850) | ($592,707) | ($789,563) | ($986,420) | ($1,179,377) | ($1,362,333) | ($1,522,290) | ($1,662,247) | ($1,769,203) | ($1,836,160) |
| Total Capital | $2,816,000 | $2,713,583 | $2,567,867 | $2,414,150 | $2,223,293 | $2,026,437 | $1,829,580 | $1,636,623 | $1,453,667 | $1,293,710 | $1,153,753 | $1,046,797 | $979,840 |
| Total Liabilities and Capital | $3,066,000 | $2,997,336 | $2,863,509 | $2,718,976 | $2,544,398 | $2,359,141 | $2,171,951 | $1,982,958 | $1,809,668 | $1,651,645 | $1,521,355 | $1,416,331 | $1,349,375 |
| Net Worth | $2,816,000 | $2,713,583 | $2,567,867 | $2,414,150 | $2,223,293 | $2,026,437 | $1,829,580 | $1,636,623 | $1,453,667 | $1,293,710 | $1,153,753 | $1,046,797 | $979,840 |
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