1. Business Plan
Contact: Don Russell
Phone: (312) 291-8317
Fax: (773) 818-6786
E-mail: drussell@piracycontroltechnology.com
www.piracycontroltechnology.com
www.mcvtechnology.com
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MISSION
The mission of Piracy Control Technology is to revolutionize,
reform, and restore control of music distribution by introducing
technologies that eliminate piracy and increase profitability.
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Table of Contents
Executive Summary ...................................................................................................... 4
Use Of Funds ................................................................................................................................. 5
Investor Proposition...................................................................................................................... 6
Company Ownership.................................................................................................................. 6
Company Location ..................................................................................................................... 6
Services .......................................................................................................................... 7
Product and Service Description............................................................................................... 7
Market Analysis Summary............................................................................................ 9
Market Segmentation ...............................................................................................................10
Market Needs .............................................................................................................................10
Competitive Comparison.........................................................................................................11
Strategy and Implementation Summary.................................................................. 12
Competitive Edge......................................................................................................................12
Marketing Strategy ....................................................................................................................12
Management Summary ............................................................................................. 14
Financial Projections................................................................................................... 18
Appendix ..................................................................................................................... 28
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Executive Summary
Since the sudden arrival of Napster in the late 20
th
century, the music industry has experienced an unprecedented
upheaval in revenues and profits. Although companies in this sector have gone to extreme measures to combat
piracy, including upending distribution chains and adding watermarks to promotional materials, experts have been
unable to develop a comprehensive solution that retains consumer access to music while eliminating the pirated
music market - until now.
Piracy Control Technology, Inc. (also referred to as “PC Tech”) is an Illinois-based start-up business. PC Tech is
the developer of Media Codec 5, or MCV, an innovative technology designed to prevent illegal piracy of music.
MCV is a revolutionary new security platform that will help to control, market, measure, report and manage music.
This end-to-end music licensing and entitlement management solution will allow complete control of the music
from the moment it is recorded to when it is downloaded and played on any portable device. Through a
comprehensive four-phase process, Piracy Control Technology will facilitate industry-wide implementation of its
powerful solution, providing record labels and recording artists with an effective tool against music piracy without
compromising consumers’ access to the music they enjoy. PC Tech is seeking funding to pay for its operational
costs. Piracy Control Technology will commence services immediately upon receipt of funding.
The music industry has suffered remarkable
setbacks in recent years, experiencing
dramatic declines in revenue and album
sales as music piracy has soared and the
monetary value of music itself has
plummeted. Major label revenues continued
their fall in 2010, totaling $7.5 billion, almost
half of the industry’s 2001 revenues of $14.4
billion. CD singles have comprised less than
0.1% of the sector’s revenues for the past
five years, and sales revenue from physical
formats fell 20.8% in 2009. These indicators
all confirm what industry experts have
forecast for years; without drastic and
immediate action, the music industry faces
an unsustainable and unprofitable future.
Piracy Control Technology’s powerful
technology will offer an unprecedented
solution to fulfill this market need. PC Tech
will not experience any significant competition and will benefit from a high demand among record labels for its
easy-to-integrate technology. As a result, Piracy Control Technology is positioned to instantly succeed in this
market and thrive for years to come.
Piracy Control Technology will engage in a variety of promotional tactics to generate interest in its unique anti-
piracy technology. PC Tech’s initial marketing strategy will include meetings, direct sales calls, presentations,
trade show attendance, print ads, public relations efforts, and a comprehensive website. Through these methods,
Piracy Control Technology intends to develop a strong reputation and identify itself as the premier provider of anti-
piracy technology for digital media.
Don Russell owns and operates PC Tech. Mr. Russell has extensive experience in the entertainment industry,
combined with a strong record of success that includes streamlining operations and maximizing productivity. He
is the Founder and Chief Executive Officer of Piracy Control Technology, and has been responsible for
coordinating all aspects of project development since its inception. Prior to launching PC Tech, Mr. Russell
served as Vice President of Marketing at Rockstar Beverage Corporation. He gained further experience serving
as the Creative Director of Expo Theatre Productions, and as Owner and President of PM Studios. Mr. Russell
began his career working as a Personnel Relations Supervisor at YBM Enterprises. He attended Columbia
College, and has years of experience as a performer, director, and producer in the entertainment field.
To achieve the Company’s objectives, Piracy Control Technology, Inc. is being capitalized by $456,000 in direct
owner investment, and is seeking $7,500,000 in additional funding through outside investment.
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Use Of Funds
The table below outlines the sources and uses of funding:
Loan $0
Ow ner Investment $456,000
Investor $7,500,000
Total Sources $7,956,000
Start-up Expenses
Development Salaries $470,100
Administrative Expenses $143,900
Business Expenses $190,000
Legal $128,900
MCV Technology $1,289,900
TMR Web Based Softw are $425,000
PC Tech Website (Update) $9,000
Softw are Plug-in $135,000
DKM Design (Program Update) $27,000
DKM Model Construction $96,000
Operational Manuals (Drafts) $10,000
Total Start-up Expenses $2,924,800
Start-up Assets
Starting Cash Balance $2,999,000
Other Current Assets $0
Office Equipment & Furniture $32,200
DKT Acquisition $2,000,000
Other Long-term Assets $0
Total Start-up Assets $5,031,200
Total Uses $7,956,000
SOURCES&USES
SOURCES OF FUNDS
USES OF FUNDS
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Investor Proposition
The following investor proposition uses a number of variables to determine a hypothetical share of the Company
in exchange for investment. The following scenario is up for negotiation and is dependent on operating and
valuation assumptions. The investor share is based on an investor-required rate of return of 50% per year, and a
Year 5 Company valuation at 5 times EBITDA. It should be noted that the rate of return is dependent on
subjective measurements of risk and reward, and valuations are subject to market conditions.
Investment $7,500,000
Required Rate of Return 50%
Value of Investment (Year 5) $85,430,000
Year 5 Earnings $291,006,000
EBITDA Multiple 5
Projected Company Value (Year 5) $1,455,030,000
Equity Sold 6%
(Value of Investment/Value of Company)
INVESTORPROPOSITION
Company Ownership
Piracy Control Technology, Inc. is a C-Corporation registered in the states of California and Illinois.
The Company is wholly owned by Don Russell (90%) David Ubeda (5%) Neil Thakker (5%)
Company Location
The Company is located at:
47 W Polk Street
Suite 135
Chicago, IL 60605
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Services
Piracy Control Technology is a start-up technology development business based in Chicago. PC Tech is the
creator of a remarkable new solution to music piracy called Media Codec 5, or MCV. Modern music production is
almost entirely processed through digital devices and software, offering engineers, producers, and musicians
complete control over every song’s sound levels, arrangement, and more. Piracy Control Technology’s unique
technology equips music professionals with a powerful tool that embeds security features into a song’s MIDI
(Musical Instrument Digital Interface) signals. The following typical sound spectrum analysis of a song reveals the
visual manifestation of the virus in a song’s digital analysis, which is audibly unnoticeable. This virus is
highlighted in red lines.
MCV technology does not require the use dongles or other physical media in order for the technology to correctly
function. Physical devices can be lost, are much more difficult to update, and require too much on the part of the
end-user in order to ensure proper functionality. Through MCV's patent pending technology, PC Tech has been
able to find the ideal balance, protecting both the artist’s intellectual property and preserving the end-user’s
experience. MCVs are inserted into music during production, safely embedding the files deep within the song’s
data file. They are only enabled if a user attempts to make a digital copy of a song, disabling the secondary
source. This dependable security measure prevents illegal music piracy while ensuring law-abiding consumers
enjoy an unaffected listening experience. Piracy Control Technology intends to introduce its technology to the
music industry through a comprehensive four-part process:
Phase I: MCV Technology Implementation
Phase II: Creating Joint Ventures
Phase III: Launch The Music Room Software
Phase IV: Launch MCV Advisories through Digital Kiosk
Technology
Product and Service Description
Phase I: MCV Technology Implementation
The effectiveness of MCV technology is predicated on its widespread adoption and implementation. PC Tech will
work closely with record labels, recording artists, producers, and other music professionals to phase in the
inclusion of MCVs into new and existing recordings. Music piracy primarily occurs during post-production, either
out of recording studios, distribution warehouses, or record companies. This is why it is essential to utilize MCV
technology during the recording and production processes.
Phase II: Creating Joint Ventures
During PC Tech’s second phase, Piracy Control Technology will partner with a wide scope of MIDI sound module
and outboard gear manufacturers to develop stand-alone units capable of directly applying MCV technology to
songs as they are recorded. PC Tech’s product will be a rack mount unit that will communicate event messages
to digital recording studio software such as Pro Tools, Nuendo, and Cubase. By relying on MCV-based
technology to safely embed MCVs into modern recordings, music industry professionals will be able to instantly
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protect their product without the need for additional challenging or tedious processes. This phase will also
provide PC Tech with an additional stream of revenue.
Phase III: Launch The Music Room
In Piracy Control Technology’s third phase of operations, PC Tech will launch a software program called “The
Music Room.” This program will provide record companies with an innovative administration tool capable of
receiving all MCV-recorded files and performing additional tasks central to the music industry, including:
Tracking album progress
Viewing album layout and song structure
Establishing price per record
Establishing regional and national release dates for records
The Music Room will feature multiple “rooms” specialized for specific departments
of recording businesses, giving authorized users access to the information vital to
their particular area of work, such as sales, industry feedback, album budgets, and
retailer feedback. This product will be supported by a robust set of security
measures and technological enhancements to provide unparalleled protection of
data. The Music Room will consolidate key data into a single powerful software in
order to reduce costs, protect recordings, and equip professionals with an
unparalleled range of administrative options.
The Music Room Software will be the only software that will give record
companies the ability to access MCV music directly from the recording studios.
The Music Room is also the only software that will provide access to send records
and marketing materials directly to the Kiosks, as described below. The Music
Room will also combat piracy by limiting access to hard copies of the records,
which eliminates the possibility of the record ending up in the wrong hands.
Phase IV: Launch MCV Advisories through Digital Kiosk Technology
Users attempting to illegally receive, reproduce, or transfer music enhanced with MCVs will be alerted through a
series of on-screen pop-ups and packaging notices. These alerts will include warnings regarding the severe
damage a user can bring upon their computer or electronic device
by pirating music. In order to ensure that consumers retain a broad
range of options for legally receiving and enjoying music in a
variety of formats, PC Tech will establish Digital Kiosk Machines
through which to distribute music in addition to secured Internet
downloads and hard copy sales. Piracy Control Technology will
partner with various Digital Kiosk Machine manufacturers to
develop remote machines capable of receiving MCV-enhanced
records and promotional materials from record companies.
Consumers will be able to purchase records as compact discs,
MP3 downloads delivered directly to mobile music devices, or as a
proof of purchase available through machines that can be used as
a download voucher at a later time. Once music is purchased,
however, it will not be capable of being transferred, guaranteeing
that musicians and record industry professionals receive the sales
revenues that would normally be lost to piracy.
The Kiosks’ enormous hard drive space will store millions of mp3
files. This will give consumers access to titles that may be
otherwise hard to find. Kiosks will be introduced to the general
public as the new form of major and independent retail. Kiosks will
also service millions of consumers and revolutionize the shopping
experience.
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Market Analysis Summary
PC Tech will primarily operate in the Major Label Music Production industry in the United States, an economic
segment that has been severely impacted by falling album sales due to the systemic piracy of music on the
Internet. The following information on this industry is provided by market research firm IBISWorld.
1
1
“Major Label Music Production in the US Industry Report.” IBISWorld: Obtained December 2010.
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Market Segmentation
Piracy Control Technology will introduce its product in multiple phases, designed to ease each particular segment
of the music industry toward a new standard in music protection. PC Tech will initially offer its technology to
major labels for use on all new and existing recordings. Over time, Piracy Control Technology will release
subsequent versions of its technology that can be sold to major label subsidiaries and branches. Eventually, the
technology will be available as a stand-alone unit for musicians and producers everywhere to use as part of the
production process. According to IBISWorld, there are a total of 236 major music labels and 834 independent
labels in the United States, providing PC Tech with a strong and thriving base of potential clients.
The final target market for PC Tech’s products will be consumers across the world. Following in the footsteps of
Redbox, which redefined the video market by providing a video-rental system through automated kiosks placed
strategically to attract a maximum of consumer traffic, PC Tech’s Kiosks will allow users to compile their own
customizable albums that will be copy-proof and competitively priced.
Market Needs
IBISWorld succinctly describes the key challenge facing today’s leading companies in the music industry:
2
“Piracy was once thought to be the great threat to the
industry as CD copying software proliferated and the
ability to transfer larger files online improved. As
intellectual property laws became more strictly
enforced and legitimate digital markets grew,
consumers' decreasing valuation of digital media has
emerged as the true challenge to the industry.
Consumers now have the opportunity to download
music from an almost limitless library via peer-to-peer
(P2P) websites for free or stream free music online 24
hours a day. Despite listening to greater volumes, the
free music revolution online subsequently has
consumers valuing their music less than ever.”
Every solution that has been attempted by record
labels, recording artists, and distributors has resulted
in negligible effects on the gradual devaluation of
music. As a result, it is clearer than ever before that
the industry must develop new ways to protect its property from online piracy. PC Tech’s remarkable product
provides a previously unimaginable solution to this issue by equipping the industry with a tool to immediately
protect recordings the minute they are completed, preempting the piracy that commonly occurs along record
distribution chains.
2
“Major Label Music Production in the US Industry Report.” IBISWorld: Obtained December 2010.
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Competitive Comparison
Piracy Control Technology is keenly aware of the need to evaluate its competitors. A detailed analysis of the
competitive landscape will prepare PC Tech for any potential market variables that may arise. PC Tech will be
the first to market with its technology, fulfilling a market need that has remained unsolved for more than a decade.
The slow transition of the music industry to a fully digital sector has been largely facilitated by Apple, which has
leveraged the popularity of iPods to establish iTunes and its online market. Although Apple represents PC Tech’s
most significant competitor, it will essentially lose its market share when record labels adopt Piracy Control
Technology’s technology and successfully begin curbing online music piracy. PC Tech will initially sign long-term
licensing contacts with record companies. As a result, PC Tech will be well-positioned to succeed and thrive in
this market.
For more information regarding PC Tech’s competitive advantages, see Competitive Edge.
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Strategy and Implementation Summary
Piracy Control Technology will develop a brand that emphasizes its innovative technology designed to curb music
piracy, thus increasing profitability in the music industry. PC Tech will also highlight its unique kiosks that allow
users to purchase songs or albums on-demand and at competitive prices. To increase brand awareness, Piracy
Control Technology has created a memorable logo. PC Tech will display this logo prominently on all marketing
materials and kiosk signage.
With its brand and guiding principles
established, Piracy Control Technology will
send a clear message about the advantages
its product offers prospective customers. PC
Tech will promote this message using a
comprehensive marketing strategy that
includes direct sales efforts, brochure
distribution, public relations, and a user-
friendly website. Piracy Control Technology
intends to use this approach to accomplish
the following objectives:
Establish itself as a trusted anti-
piracy resource for the music industry
Build a customer base that is large
enough to sustain business
Generate enough revenue to expand
operations
To achieve the aforementioned operational goals, Piracy Control Technology will build on its advantages, as
outlined in the following section.
Competitive Edge
Though PC Tech is unaware of any competing business that currently offers comparable technology, Piracy
Control Technology will experience indirect competition from Redbox and iTunes, both of which incorporate
technology to limit or prevent media piracy. However, iTunes recently began allowing users to purchase songs
free of digital rights management (DRM) encryption, and Redbox only offers movies and video games that are in
demand. Piracy Control Technology will capitalize on its competitors’ weaknesses by building on the following
strengths:
Unique technology mutates from album to album and is incurable
Designed to prevent piracy of electronic media
Knowledgeable and experienced staff
Endless supply of titles, not limited by hard copy selection on hand
Reinvents the music shopping experience
Marketing Strategy
Piracy Control Technology will use a direct sales approach and a variety of advertising channels to increase its
exposure among record labels and production companies. Specific channels will include the following:
Direct Sales
Brochures: PC Tech will create informative brochures for distribution to prospective customers. These
brochures will highlight the benefits of PC Tech’s technology and will provide its contact information.
Meetings: Piracy Control Technology will use direct sales calls, presentations, and appointments with
record labels and production companies throughout the United States. PC Tech will also arrange
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conference calls and webinar presentations when necessary. The benefits of a direct sales approach
include:
Increasing sales while lowering monthly marketing costs through increased efficiency
Immediate results, as these calls and meetings can generate orders instantly
Enhanced lead generation
Trade shows: PC Tech will attend relevant industry trade shows to increase brand awareness and
establish valuable business partnerships. Trade show attendance will include demo sessions,
PowerPoint presentations, question-and-answer periods, and distribution of informative literature.
Supplemental Marketing
Public relations: Piracy Control Technology intends to build a strong public relations campaign via
appropriate media outlets. Public relations efforts will include advertising, community support and
approval, customer relations, print articles, press releases, and events.
Website: PC Tech will create a comprehensive website to generate interest in its technology. This
website will be search engine optimized and contain a number of features including: product information,
company profile, contact information, testimonials, and demo videos.
Print media: Piracy Control Technology will place ads in industry trade publications. These
advertisements will include PC Tech’s contact information and web address, as well as a brief overview of
Piracy Control Technology’s capabilities.
Television advertising: PC Tech recognizes that television advertising is still an effective means of
reaching a large target population. For this reason PC Tech will create television commercials
introducing the new Digital Kiosk Technology and providing a virus advisory regarding the MCV format.
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Management Summary
Don Russell, Founder and Chief Executive Officer
Don Russell developed PC Tech’s key concept and has been in charge of coordinating all aspects of project
development up to this point. His expertise in the music and entertainment industry is what drives PC Tech and
provides its competitive advantage. Mr. Russell is passionate about preserving and promoting the evolution of
entertainment by creating a resource center that encourages constant development through networking and
communication on each level of one’s journey to success.
Mr. Russell has more than 15 years of experience and a strong track record of success that includes streamlining
operations and maximizing productivity. Prior to launching Piracy Control Technology, he served as Vice
President of Marketing at Rockstar Beverage Corporation. There, Mr. Russell was responsible for researching
and understanding product brand study demographics, producing promotions to target key areas, coordinating
product breakouts to maximize productivity, and acting as a liaison between various departments. Mr. Russell
gained additional experience by serving as the Creative Director of Expo Theatre Productions, where he prepared
and presented client presentations and maintained responsibility for hiring independent contractors. He was also
the President and Owner of PM Studios for more than three years, and served as a Personnel Relations
Supervisor at YBM Enterprises.
Mr. Russell attended Columbia College in Chicago and the University of Phoenix – Chicago campus. He has
extensive experience as a performer, producer, and director in the music industry. He has performed in or
directed several notable productions over the past 10 years. Some of his production credits include:
“Riverdance,” where he served as a principal artist
“Satin Suite,” where he performed as headliner on the Olive Garden Theater stage at Walt Disney World
“Broadway Soul Jam,” where he performed in Amsterdam as a headliner in the very popular and
successful musical directed by Maurice Hines
Mr. Russell’s innovation in the area of musical theater has captured the attention of many great icons such as:
Oprah Winfrey, on whose show Mr. Russell performed
Gregory Hines, with whom he has performed
President Bill Clinton, for whom Mr. Russell performed for at the opening ceremony for the 1996
Democratic National Convention
As sole owner of one of California’s premier recording studios, Mr. Russell has had the opportunity to work with
such talents as R. Kelly, The Brat, Onyx, Ideal, 112, Savion Glover, LeVert, The Nicolas Brothers, Sinbad, Bernie
Mac, and Steve Harvey. Mr. Russell has also directed or produced television commercials for such companies as
Honda, Seagram’s, McDonalds, Coca-Cola, Fujitsu, Nupremis, AMD, Unisys, and IBM.
Ronald E Sweeney,
Ronald Sweeney is a entertainment lawyer who represents a variety of recording artists, producers and writers.
Those clients include Jimmy “Jam” Harris and Terry Lewis, who collaborate on such top acts as Janet Jackson,
the S.O.S Band, the Force M.D.s Patti Austin Lil Wayne, Drake, and Nicki Minage to name a few. And as a
partner in Avant Garde Management Inc., Sweeney also served as agent for Klymaxx, the once popular all female
band that scaled the charts in the 90’s. Sweeney has represented over a hundred major recording artists.
Sweeney also, has his own practice with offices on the east and west coast, and sits on several boards.
Craig A. Nobles,
Once a DJ in Los Angeles, the California - bred music mogul’s journey began in 1973 entertaining the likes of
David Lee Roth and Eddie Van Halen while growing up in Pasadena. Contributing to some of the most popular
events in and around Greater Los Angeles, Craig Nobles fell in love with music and developing relationships with
artists, promoters, and executives alike. Heeding the advice of his mentor, Maurice Warfield, Nobles jumped at
the opportunity to shadow one of the greatest in the business. Though he would continue developing his skills as
a DJ and Socialite/Entrepreneur, Craig Nobles was determined to get the respect from the industry his
remarkable talent deserved, all while fine tuning his skills in the areas of marketing, sales, A&R, publicity, and
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promotions. “I thought this was it, but one day I just needed a change, so I moved to New York. “
Ironically, the fall of 1983 ushered in those changes, he moved to New York and again resumed entertaining
amongst the premieres of nightlife. This would lead to other projects including an assistant position with Harry
Belafonte and most notably BEAT STREET, where he taught the actors the DJ style of scratching and assisted in
the A&R administration of the soundtrack. Just a glimpse of things to come...Refusing to follow trends, Craig
Nobles awed his peers with his drive and passion for music.
Joining Grand Jury Productions, Craig Nobles balanced his daily duties as A&R, Marketing, Promotions, Sales,
Business Affairs, and Deal Negotiations on behalf of Grand Jury artists with major labels such as Interscope,
Warner Brothers, and RCA to name a few. Having grown within the era of Irving Azoff, Russell Simmons, Barry
Wiess, Steve Berman, Doug Morris, and Steve Rifkind – greatness was never an option.
“The formula I use is real and so are the results,” says Nobles. Time will only tell, but looking at history, the future
looks bright.
Specialties
- Experienced in budget allocation, forecasting, contract negotiating, marketing, imaging, strategic planning &
project management as well as building and maintaining partnerships.
- Knowledgeable on youth/pop culture and developing strategies for target demographics.
- Extensive knowledge and experience in recording, engineering, production of multi media.
- Experience in developing online campaigns, integrated sites, building/running online and ground street teams,
and grass roots marketing.
Shannon Aldridge, Project Lead
Shannon Aldridge has spent more than 15 years working in Entertainment and IT-related industries. While
residing in Atlanta and New York, Mr. Aldridge has worked for several well-known companies based in the United
States, including the USOC, NBC, NBA, and MLB. Mr. Aldridge was part of an innovative culture that saw the
rise and fall of several dot-com companies. Meanwhile, he forged ahead at NBA.com to create a subscription-
based model that helped to create and capitalize on a new revenue stream called Steaming Media. In early 2000,
Mr. Aldridge joined Major League Baseball to start what is now called MLB.com. With his foresight and direction,
MLB.com’s streaming media division led a team of talented professionals who created, produced, and delivered
to over 10 million monthly subscribers.
In 2005 Mr. Aldridge moved to Chicago to take on another project of rebuilding two companies under one
ownership group. Within one year both companies, NCI Technology and HiTide Media, had undergone extensive
renovation, employee training and technology deliverables. As Vice President, Mr. Aldridge was given the task of
assembling the right team of professionals, dedicated hardware installation and new client acquisitions. By year
two, both companies on were on the leading edge of Digital Data Collection and HD Video Delivery systems in
Chicago.
In 2007, Mr. Aldridge started SlantMedia with the vision to bring the same expertise and skill to smaller start-up
companies that need proper guidance, development, and strategies to help them navigate through ever-changing
technological, social and economic business models. After four years of successful growth, SlantMedia has
positioned itself as a unique company that can function within small to midsize companies’ budgets to consult,
create, and produce anything its partners require.
Nathan J. Tumulty, Chief Technology Officer
Nathan Tumulty, MCSE, brings over 15 years of experience managing and developing software solutions for mid-
to large-sized companies. He began his career as a network engineer at Aon Reinsurance, supporting the entire
North American enterprise. Soon after, he then started his first company, iDesign LLC, whose first contract was
for the Budnet real-time route accounting and business intelligence application for Anheuser-Busch. His company
would go on to carve a niche out in the real estate industry and was instrumental in the development of the initial
RETS platform for real estate property databases. Seeing the ever-increasing amounts of data, he steered the
company even further toward the development of data mining tools and platforms. In 2006, in a joint project with
Epsilon and Acxiom, he managed a group of over 20 software engineers in four states to complete a real-time
data append technology that the companies would eventually license to their clients in the education space, a
product which is still used to this day. In 2008, he sold his company and moved to Chicago. Then in 2009, he
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joined with SlantMedia and began work on several social media projects, including real-time applications for the
mobile space.
June A. Barrett, Administrative Assistant
As a Business Developer Consultant with over 30 years of business experience, which started at an early age
working in the family-owned retail business started by her parents, June Barrett has been providing direction in
every aspect of developing a solid foundation for new and existing companies and organizations. She has worked
with more than 20 businesses and not-for-profit organizations, developing business strategies that headed their
operations in an upward, more successful position.
Ms. Barrett worked toward her Bachelors of Science degree in Business Administration at Roosevelt University.
She formed June’s Point of View Productions in Chicago as an answer to the demand for her business insight
and expertise as an Event Producer six years ago. She created numerous opportunities and an outlet for local
entertainers she booked to perform in events she produced. These large ethnic multi-day events attracted
attendance levels of well over 100,000 people.
For Ms. Barrett, becoming an Event Producer was an evolutionary process that included starting in promotions, to
cash management, to office administrator, which further included vendor coordination, logistics for national
entertainers, developing a family pavilion, programming the entertainment stage within the pavilion, and
coordinating participating organizations and sponsors. In the process of this evolution, she found that the event
business is a perfect fit with her organizational qualities, professional respectful attitude to all involved, keen
sense of people's personalities, endless resources, and commitment to achieve perfection in the finished product.
The concept of a resource center for entertainers was developed from a wish Ms. Barrett had to assist the weak
entertainment industry in Chicago. Opportunities for artists were slowly vanishing and frustration was running
high. Ms. Barrett set out to help local artists find other outlets besides yearly events to continue performing and
get paid while at the same time honing their crafts. The answer was The Music Room, an online resource center
to serve all professionals and artists in the music industry. The Music Room was an inexpensive and interactive
easy-to-use website. The seed was planted. The Music Room became a reality. It grew into a young sprig but it
just never received enough water for growth to become a tree.
Ms. Barrett’s extensive knowledge of producing and business development is what every new start-up needs for a
successful launch and what existing companies, too: need fresh energy to streamline daily operations and
maximize productivity, putting them on a path to positive growth.
Sally A. Lee, Chief Financial Officer
Sally Lee brings more than two decades of organizational expertise and experience to PC Tech, and is able to
provide quality service in an integrity-filled, team-oriented environment. Her managerial and communication skills
have been developed through a variety of finance-related positions, most recently as Staff Accountant for The
Pritzker Group in Chicago. Her duties in this position included procedure development and implementation for
financial processing and analyses, increasing efficiencies without compromising established controls, and
creating and generating customized reporting for ongoing strategic planning for trusts, portfolio investments,
private equity, and venture capital sectors. In all aspects of this position, Ms. Lee upheld the highest degree of
fiduciary standards for the ultra-high net worth family.
Prior to her position with The Pritzker Group, Ms. Lee performed financial accounting and administration roles for
GVW Holdings Corporation, preceded by a two-year position as Controller for Blue Pearl Stone Tech, LLC. From
1995 to 2003, she was the Senior Accountant for Spectrum Stone Group, Inc., and began her career as a
Bookkeeper and Administrative Assistant for All-Line Electric Company and PaulMarc Electric Company,
respectively. She holds a Bachelor of Arts degree in Sociology from State University of New York, where she
additionally completed graduate-level coursework in sociology. Ms. Lee also studied mathematics and
mathematics education at DePaul University.
Sean Mulroney, Corporate Attorney
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Sean Mulroney graduated from the Loyola University of Chicago School of Law and entered the public practice of
law whereby he served as Associate Regional Counsel for the United States Environmental Protection Agency,
Region V. He worked at USEPA for almost 10 years, where he specialized in toxic and hazardous litigation,
serving as lead counsel on several of the region’s most complex cases. Mr. Mulroney now has his own law
practice specializing in litigation, corporate start-up, entertainment and city business licensing.
Mr. Mulroney has been involved in several start-up companies focusing on internet broadcasting, broadband
service providing, community website development, online music sequencing, and environmental consulting.
Additionally, he currently is an owner of two of Chicago’s most successful nightclubs and restaurants. Mr.
Mulroney performs regularly with several musical groups and the Ravenswood Community Orchestra.
Neil Thakkar, Investment Consultant
Neil Thakkar earned his B.A. in Business Management and Entrepreneurship. The networks Mr. Thakkar has
established with other business owners and investors have allowed him to engage in a number of business and
real estate endeavors. For the last four years Mr. Thakkar has become a very successful investor in the
Chicagoland area and continues to grow his portfolio of properties both in residential and commercial real estate.
His experience in facilitating acquisitions and implementing exit strategies is the foundation for Mr. Thakkar’s
continued success. Having built strong relationships with other investors has allowed him to raise capital to fund
start-up businesses and development projects while offering a competitive rate of return. He sees his role as a
trusted advisor who builds stable, lifelong relationships with clients, partnering with them to meet short-, mid-, and
long term financial goals.
David E. Ubeda, Business Development
David E. Ubeda, M.S., owns and operates World Class Acquisitions (WCA), a real estate acquisitions company
based in Downers Grove, Illinois. Mr. Ubeda is a successful real estate investor, buying and selling over $50
million in real estate, and enjoys his role as a national success coach. Mr. Ubeda’s company is committed to
providing win-win solutions to as many struggling home owners as possible.
Mr. Ubeda is a gifted songwriter and musician and has extensive music recording and touring experience as a
solo artist. He is the owner of Latin Soul Heaven Productions.
Mr. Ubeda is passionate about education and enjoys teaching at the University of Phoenix’s John Sperling School
of Business, where he teaches business and management courses as an associate faculty member. Mr. Ubeda
is currently completing a doctoral degree (Ed.D.) at the University of Phoenix’s School of Advanced Studies.
When Mr. Ubeda is not assisting struggling home owners, teaching, or coaching others to pursue their passion
and purpose, he continues to enjoy spending quality time with his family and friends. He has expressed,
“spending time with my family and friends keeps me rooted and I feel like the wealthiest man on earth when I am
with them.”
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Financial Projections
The following table and graph illustrate the financial goals of the Company during the next five years:
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $239,562,217 $266,341,987 $294,572,934 $324,472,733 $356,291,713
Gross Margin $239,545,133 $266,322,904 $294,551,551 $324,448,705 $356,264,643
Operating Expenses $51,363,923 $57,033,455 $63,025,024 $59,608,521 $65,394,243
EBITDA* $188,316,690 $209,424,929 $231,662,007 $264,975,664 $291,005,880
Net Profit $122,973,656 $136,038,142 $150,492,242 $172,146,120 $189,065,760
Profitability Ratios
Gross Margin/Revenue 100% 100% 100% 100% 100%
EBITDA/Revenue 79% 79% 79% 82% 82%
Net Profit/Revenue 51% 51% 51% 53% 53%
Debt Ratios
Debt Ratio (Total Debt/Total Assets) 33.40% 3.75% 2.67% 2.01% 1.67%
Interest Coverage Ratio N/A N/A N/A N/A N/A
Debt Service Coverage Ratio N/A N/A N/A N/A N/A
Net Cash Flow $187,314,754 $82,256,855 $151,719,657 $172,933,957 $190,382,085
Cash Balance - Ending $190,313,754 $272,570,609 $424,290,266 $597,224,223 $787,606,308
*Earnings before interest, taxes,
depreciation & amortization
FINANCIALHIGHLIGHTS
Financial Highlights
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Direct Costs
Operating Expenses
Net Profit
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The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue
and include “cost of goods.”
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
MCV Chips $3,360,000 $3,864,000 $4,443,600 $5,110,140 $5,876,661
Softw are Plug-ins $2,933,333 $3,373,333 $3,879,333 $4,461,233 $5,130,418
MCV Licensing Contract $52,500,000 $60,375,000 $69,431,250 $79,845,938 $91,822,828
Technical Support $32,550 $37,433 $43,047 $49,504 $56,930
Music Room Softw are Dow n Payment $175,000,000 $175,000,000 $175,000,000 $175,000,000 $175,000,000
Music Room Softw are Balance $0 $17,105,263 $34,210,526 $51,315,789 $68,421,053
Music Room Softw are Training $7,500 $7,500 $7,500 $7,500 $7,500
Facial Recognition Add-On $58,000 $58,000 $58,000 $58,000 $58,000
Digital Kiosk Push Fees $4,167 $4,792 $5,510 $6,337 $7,288
Digital Kiosk Mechanics Fees $5,666,667 $6,516,667 $7,494,167 $8,618,292 $9,911,035
Total Revenue $239,562,217 $266,341,987 $294,572,934 $324,472,733 $356,291,713
Direct Cost of Revenue
MCV Chips $0 $0 $0 $0 $0
Softw are Plug-ins $13,333 $15,333 $17,633 $20,278 $23,320
MCV Licensing Contract $0 $0 $0 $0 $0
Technical Support $0 $0 $0 $0 $0
Music Room Softw are Dow n Payment $0 $0 $0 $0 $0
Music Room Softw are Balance $0 $0 $0 $0 $0
Music Room Softw are Training $3,750 $3,750 $3,750 $3,750 $3,750
Facial Recognition Add-On $0 $0 $0 $0 $0
Digital Kiosk Push Fees $0 $0 $0 $0 $0
Digital Kiosk Mechanics Fees $0 $0 $0 $0 $0
Subtotal Cost of Revenue $17,083 $19,083 $21,383 $24,028 $27,070
Other Direct Costs $0 $0 $0 $0 $0
Total Direct Costs $17,083 $19,083 $21,383 $24,028 $27,070
Gross Margin $239,545,133 $266,322,904 $294,551,551 $324,448,705 $356,264,643
Gross Margin % 100% 100% 100% 100% 100%
REVENUEFORECAST
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The table below shows the units and pricing assumptions underlying the revenue forecast:
Year 1 Year 2 Year 3 Year 4 Year 5
Units
MCV Chips 8,400,000 9,660,000 11,109,000 12,775,350 14,691,653
Softw are Plug-ins 2,667 3,067 3,527 4,056 4,664
MCV Licensing Contract 21 24 28 32 37
Technical Support 210 242 278 319 367
Music Room Softw are Dow n Payment 1 1 1 1 1
Music Room Softw are Balance 0 1 2 3 4
Music Room Softw are Training 1 1 1 1 1
Facial Recognition Add-On 1 1 1 1 1
Digital Kiosk Push Fees 8,333 9,583 11,021 12,674 14,575
Digital Kiosk Mechanics Fees 56,666,667 65,166,667 74,941,667 86,182,917 99,110,354
Total Units 65,077,901 74,839,586 86,065,525 98,975,354 113,821,657
Unit Price
MCV Chips $0.40 $0.40 $0.40 $0.40 $0.40
Softw are Plug-ins $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00
MCV Licensing Contract $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00
Technical Support $155.00 $155.00 $155.00 $155.00 $155.00
Music Room Softw are Dow n Payment $175,000,000.00 $175,000,000.00 $175,000,000.00 $175,000,000.00 $175,000,000.00
Music Room Softw are Balance $0.00 $17,105,263.16 $17,105,263.16 $17,105,263.16 $17,105,263.16
Music Room Softw are Training $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00
Facial Recognition Add-On $58,000.00 $58,000.00 $58,000.00 $58,000.00 $58,000.00
Digital Kiosk Push Fees $0.50 $0.50 $0.50 $0.50 $0.50
Digital Kiosk Mechanics Fees $0.10 $0.10 $0.10 $0.10 $0.10
Direct Unit Cost
MCV Chips $0.00 $0.00 $0.00 $0.00 $0.00
Softw are Plug-ins $5.00 $5.00 $5.00 $5.00 $5.00
MCV Licensing Contract $0.00 $0.00 $0.00 $0.00 $0.00
Technical Support $0.00 $0.00 $0.00 $0.00 $0.00
Music Room Softw are Dow n Payment $0.00 $0.00 $0.00 $0.00 $0.00
Music Room Softw are Balance $0.00 $0.00 $0.00 $0.00 $0.00
Music Room Softw are Training $3,750.00 $3,750.00 $3,750.00 $3,750.00 $3,750.00
Facial Recognition Add-On $0.00 $0.00 $0.00 $0.00 $0.00
Digital Kiosk Push Fees $0.00 $0.00 $0.00 $0.00 $0.00
Digital Kiosk Mechanics Fees $0.00 $0.00 $0.00 $0.00 $0.00
UNITASSUMPTIONS
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Year 1 Revenue Monthly
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Revenue By Year
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
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The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table
below, gross margin equals revenue minus direct costs. The “bottom line” or profit (as measured before and after
interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $239,562,217 $266,341,987 $294,572,934 $324,472,733 $356,291,713
Total Cost of Revenue $17,083 $19,083 $21,383 $24,028 $27,070
Gross Margin $239,545,133 $266,322,904 $294,551,551 $324,448,705 $356,264,643
Gross Margin/Revenue 100% 100% 100% 100% 100%
Expenses
Marketing $35,930,000 $39,950,000 $44,190,000 $38,940,000 $42,760,000
Rent & Utilities $134,400 $144,700 $155,000 $165,300 $175,600
Travel & Entertainment $24,000 $25,200 $26,500 $27,800 $29,200
Ongoing Development $11,980,000 $13,320,000 $14,730,000 $16,220,000 $17,810,000
Insurance $5,400 $5,700 $6,000 $6,300 $6,600
Professional Services $20,000 $21,000 $22,100 $23,200 $24,400
Misc $2,400,000 $2,660,000 $2,950,000 $3,240,000 $3,560,000
Depreciation $135,480 $135,480 $135,480 $135,480 $135,480
Payroll Taxes & Benefits $95,823 $100,614 $105,645 $110,927 $116,473
Total Personnel $638,820 $670,761 $704,299 $739,514 $776,490
Total Op. Expenses $51,363,923 $57,033,455 $63,025,024 $59,608,521 $65,394,243
Profit Before Interest and Taxes $188,181,210 $209,289,449 $231,526,527 $264,840,184 $290,870,400
EBITDA $188,316,690 $209,424,929 $231,662,007 $264,975,664 $291,005,880
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $65,207,554 $73,251,307 $81,034,284 $92,694,064 $101,804,640
Net Profit $122,973,656 $136,038,142 $150,492,242 $172,146,120 $189,065,760
Net Profit/Revenue 51.3% 51.1% 51.1% 53.1% 53.1%
PROFORMAPROFIT&LOSS
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The charts below demonstrate when the Company is expected to become profitable. Break-even occurs when
revenue exceeds expenses.
Revenue & Expenses
Year 1 Monthly
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Revenue
Expenses
Revenue & Expenses
Years 1 to 5
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Expenses
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The following depictions of the Company’s projected cash flow show that the Company expects to maintain
sufficient cash balances over the five years of this plan. The “pro forma cash flow” table differs from the “pro
forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out
of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items
and exclude funding and investment illustrations.
Cash Flow
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow
Cash Balance
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Revenue $239,562,217 $266,341,987 $294,572,934 $324,472,733 $356,291,713
New Current Borrow ing $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sale of Other Current Assets $0 $0 $0 $0 $0
Sale of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $239,562,217 $266,341,987 $294,572,934 $324,472,733 $356,291,713
Expenditures
Expenditures from Operations
Personnel Expenses $638,820 $670,761 $704,299 $739,514 $776,490
Bill Payments $51,608,643 $183,414,371 $142,148,979 $150,799,262 $165,133,138
Subtotal Spent on Operations $52,247,463 $184,085,132 $142,853,278 $151,538,776 $165,909,628
Additional Cash Spent
Current Borrow ing Repay. $0 $0 $0 $0 $0
L-T Liabilities Principal Repay. $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $52,247,463 $184,085,132 $142,853,278 $151,538,776 $165,909,628
Net Cash Flow $187,314,754 $82,256,855 $151,719,657 $172,933,957 $190,382,085
Cash Balance $190,313,754 $272,570,609 $424,290,266 $597,224,223 $787,606,308
CASHFLOW
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The balance sheet below highlights the Company’s projected assets, liabilities, and capital:
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash $190,313,754 $272,570,609 $424,290,266 $597,224,223 $787,606,308
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $190,313,754 $272,570,609 $424,290,266 $597,224,223 $787,606,308
Long-term Assets
Long-term Assets $2,032,200 $2,032,200 $2,032,200 $2,032,200 $2,032,200
Accumulated Depreciation $135,480 $270,960 $406,440 $541,920 $677,400
Total Long-term Assets $1,896,720 $1,761,240 $1,625,760 $1,490,280 $1,354,800
Total Assets $192,210,474 $274,331,849 $425,916,026 $598,714,503 $788,961,108
Liabilities and Capital
Current Liabilities
Accounts Payable $64,205,617 $10,288,851 $11,380,785 $12,033,142 $13,213,988
Current Borrow ing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $64,205,617 $10,288,851 $11,380,785 $12,033,142 $13,213,988
Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $64,205,617 $10,288,851 $11,380,785 $12,033,142 $13,213,988
Paid-in Capital $7,956,000 $7,956,000 $7,956,000 $7,956,000 $7,956,000
Retained Earnings ($2,924,800) $120,048,856 $256,086,998 $406,579,241 $578,725,360
Earnings $122,973,656 $136,038,142 $150,492,242 $172,146,120 $189,065,760
Total Capital $128,004,856 $264,042,998 $414,535,241 $586,681,360 $775,747,120
Total Liabilities and Capital $192,210,474 $274,331,849 $425,916,026 $598,714,503 $788,961,108
BALANCESHEET
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The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in
this business plan:
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $275,496,549 $306,293,285 $338,758,874 $373,143,643 $409,735,470
Cost of Goods $19,646 $21,946 $24,591 $27,633 $31,131
Gross Margin $275,476,903 $306,271,340 $338,734,283 $373,116,011 $409,704,340
Gross Margin/Revenue 100% 100% 100% 100% 100%
Operating Expenses $51,363,923 $57,033,455 $63,025,024 $59,608,521 $65,394,243
Net Profit $145,673,437 $162,004,625 $179,211,019 $203,779,868 $223,801,563
Net Profit/Revenue 53% 53% 53% 55% 55%
Cash Flow $212,003,426 $106,553,164 $180,472,257 $204,587,914 $225,154,467
Cash Balance $215,002,426 $321,555,590 $502,027,847 $706,615,761 $931,770,228
BESTCASESCENARIO
REVENUE IS 15% GREATER THAN PROJECTED
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $203,627,884 $226,390,689 $250,386,994 $275,801,823 $302,847,956
Cost of Goods $14,521 $16,221 $18,176 $20,424 $23,010
Gross Margin $203,613,363 $226,374,468 $250,368,818 $275,781,399 $302,824,947
Gross Margin/Revenue 100% 100% 100% 100% 100%
Operating Expenses $51,363,923 $57,033,455 $63,025,024 $59,608,521 $65,394,243
Net Profit $98,131,223 $110,071,659 $121,773,466 $140,512,371 $154,329,957
Net Profit/Revenue 48% 49% 49% 51% 51%
Cash Flow $162,470,436 $56,291,955 $123,000,848 $141,300,189 $155,646,248
Cash Balance $165,469,436 $221,761,391 $344,762,239 $486,062,428 $641,708,676
WORSTCASESCENARIO
REVENUE IS 15% LESS THAN PROJECTED
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Appendix
M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12
Revenue
M CV Chips $211,093 $221,648 $232,730 $244,367 $256,585 $269,415 $282,885 $297,030 $311,881 $327,475 $343,849 $361,041
Software Plug-ins $184,288 $193,502 $203,177 $213,336 $224,003 $235,203 $246,963 $259,312 $272,277 $285,891 $300,186 $315,195
M CV Licensing Contract $3,298,334 $3,463,251 $3,636,413 $3,818,234 $4,009,146 $4,209,603 $4,420,083 $4,641,087 $4,873,142 $5,116,799 $5,372,639 $5,641,271
Technical Support $2,045 $2,147 $2,255 $2,367 $2,486 $2,610 $2,740 $2,877 $3,021 $3,172 $3,331 $3,498
M usic Room Software Down Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $175,000,000
M usic Room Software Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
M usic Room Software Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,500
Facial Recognition Add-On $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $58,000
Digital Kiosk Push Fees $262 $275 $289 $303 $318 $334 $351 $368 $387 $406 $426 $448
Digital Kiosk M echanics Fees $356,011 $373,811 $392,502 $412,127 $432,733 $454,370 $477,088 $500,943 $525,990 $552,289 $579,904 $608,899
Total Revenue $4,052,033 $4,254,634 $4,467,366 $4,690,734 $4,925,271 $5,171,535 $5,430,111 $5,701,617 $5,986,698 $6,286,033 $6,600,334 $181,995,851
Direct Cost of Revenue
M CV Chips $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Software Plug-ins $838 $880 $924 $970 $1,018 $1,069 $1,123 $1,179 $1,238 $1,300 $1,364 $1,433
M CV Licensing Contract $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technical Support $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
M usic Room Software Down Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
M usic Room Software Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
M usic Room Software Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,750
Facial Recognition Add-On $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Digital Kiosk Push Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Digital Kiosk M echanics Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cost of Revenue $838 $880 $924 $970 $1,018 $1,069 $1,123 $1,179 $1,238 $1,300 $1,364 $5,183
Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Direct Costs $838 $880 $924 $970 $1,018 $1,069 $1,123 $1,179 $1,238 $1,300 $1,364 $5,183
Gross M argin $4,051,195 $4,253,755 $4,466,442 $4,689,765 $4,924,253 $5,170,465 $5,428,989 $5,700,438 $5,985,460 $6,284,733 $6,598,970 $181,990,668
Gross M argin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
REVENUEFORECAST