Staryoo.com is a new company that will provide a Web-based Internet trading platform for Chinese investors. The formation of Staryoo.com is in anticipation of the very rapid growth in Internet trading due to recent government Internet programs and China's imminent membership into the WTO. Staryoo.com will provide investors with a group of features and a level of investing sophistication that has not been available with current trading platforms in China.
Staryoo.com will be created as a Cayman Islands Corporation to take advantage of its tax-free status. Initially, Staryoo.com will be owned by Starmile System Engineering, Inc. and its principal officers. No officer will own greater than 10% of the company. Additional wholly-owned subsidiaries will be incorporated in Hong Kong, Shanghai, and Delaware.
Starmile System Engineering Inc. provided initial seed capital. This capital has been used for operating expenses and software development expenses required since company inception. The use of proceeds are detailed in the following chart and table:
Staryoo.com currently leases 5,000 sq. ft. of office space from Jiaotong University in Shanghai, China. Annual costs of our space is $30,000, or $2,500 per month, not including utilities. We estimate that this facility will accommodate up to 60 employees and will be satisfactory through Year 1. We believe that additional space will be easily secured at a rate satisfactory to Staryoo.com in the current facility maintained by Jiaotong University.
Our initial United States offices are located at 3750 Cheerful Dr., Suite 111, Sunnyvale, California in the heart of the U.S. high tech industry, where we share approximately 650 sq. ft. with Starmile. Annual costs of our space is $15,600, or $1,300 per month, plus escalations.
This plan anticipates the following growth in facility space required: in January 1, Year 2 increase facility space to 10,000 sq. ft in Shanghai, and in June 1, Year 2 increase facility space to 2,500 sq. ft. in the United States. We believe that the United States space will be easily secured at a rate estimated at approximately $3.00 per sq. ft. per month.