Golf Entertainment Business Plan by Concord Business Plans

Premier Golf & Entertainment Facility in Canada BUSINESS PLAN | 2019

– Notice – The information presented in this document is highly sensitive and confidential and is to be used by authorized parties for the purpose of determining a preliminary indication of interest in Ball Flight Entertainment Group, (“Ball Flight Entertainment,” “Ball Flight” or “the Company.”) The recipient of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without the written permission of the Company. The information contained in the Business Plan was provided by the Company and other sources. It has been reviewed, approved, and released by the Company, who assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company, involve significant elements of subjective judgment and analysis, and are based on certain assumptions. Actual results may vary from estimates and projections and these variations may be material. No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct its own independent analysis and due diligence process. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY. For additional information, contact: BALL FLIGHT ENTERTAI NMENT GROUP Neil Hinchley Tel: (403) 819-9167 Email: neil.hinchley@ballflight-entertainment.com This Business Plan was prepared by:

CONCORD BUSINESS DEV ELOPMENT INC. 500-666 Burrard Street Vancouver, BC V6C 3P6 Canada Tel: (604) 689-2556 Fax: (604) 689-7758 Website: www.concordbusiness.com Email: info@concordbusiness.com

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

BUSINESS PLAN HIGHLI GHTS

Name of Company

Ball Flight Entertainment Group

Business

An activity-based entertainment facility focused on technologicallyenhanced golf operations, food & beverage operations and other leisure & recreation service offerings.

Products & Services

Golf and gaming activities with integrated technology that enables users to track their own metrics; High-end bar and restaurant; Craft brewing onsite; Community engagement and events.

Target Market

Calgary, AB; Niagara Falls, ON; Quinana Roo, Mexico.

Market Scope

The global sports industry is expected to reach $106.45 billion by 20221. Sports analytics are projected to reach $5.9 billion by 20242. The market for big data applications is anticipated to climb to $265 billion by 20243.

Competitive Advantage

Ball Flight is the first-of-its-kind entertainment facility to enter the Canadian market. The Company’s target demographics are ready for Ball Flight’s offering, with disposable income at an all-time high4 and global ubiquity of technology & data consumption5.

Funds Required

$7,000,000.

Revenue Projections

Year 1: $8,700,000; Year 2: $10,005,000; Year 3: $11,505,750; Year 4: $13,231,613; Year 5: $15,216,354.

TOTAL REVENUES AND O PERATING INCOME

YEAR 4

$7,014,772

$13,231,613

YEAR 3

$5,540,825

YEAR 2

$4,360,575

YEAR 1

$15,216,354

Operating Income

$11,505,750 $3,427,500

$10,005,000 $2,700,000

$8,700,000

Total Revenues

YEAR 5

“PwC Sports Outlook: At the gate and beyond.” PwC, 2018. “Sports Analytics Market Forecasts up to 2024.” Research and Markets, 2018. 3 “Global Big Data Market: Size, Share, Trends, Growth Opportunities & Revenue Analysis by Type of Data, by Components, by Application, by End-User & by Region.” Goldstein Research, 2018. 4 “Canada Disposable Personal Income.” Trading Economics, 2019. 5 “Global Consumer Spending on Media Content & Technology Forecast 2017-21.” PQ Media, 2018. 1 2

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

TABLE OF CONTENTS 1 1.1 1.2 1.3 1.3.1 1.4 1.5 1.6 1.7 1.8 2 2.1 2.2 2.3 2.4 2.4.1 2.4.2 2.4.3 2.4.4

EXECUTIVE SUMMARY ........................................................................................................................... 1 Company Overview ......................................................................................................................................1 Business Model ............................................................................................................................................1 Products & Services ......................................................................................................................................1 TrackMan Golf Systems .......................................................................................................................2 Market Size & Scope ....................................................................................................................................2 Capital Requirement & Use of Proceeds ......................................................................................................2 Revenue Summary .......................................................................................................................................3 Return on Investment ..................................................................................................................................3 The Opportunity ...........................................................................................................................................3 CORPORATE OVERVIEW ......................................................................................................................... 4 Corporate Data .............................................................................................................................................4 Mission .........................................................................................................................................................4 Management ................................................................................................................................................4 Strategic Alliances ........................................................................................................................................5 TrackMan Golf .....................................................................................................................................5 Refined Fool .........................................................................................................................................6 The Landing Group ..............................................................................................................................6 eFreshmeals .........................................................................................................................................6

BUSINESS MODEL .................................................................................................................................. 7

3.1 3.2 3.3 3.4 3.5 3.6

Purpose of the Company..............................................................................................................................7 Golf Operations ............................................................................................................................................7 Food & Beverage Operations .......................................................................................................................8 Food Preparation Operations.......................................................................................................................8 Contract Brewing Operations.......................................................................................................................8 Community Engagement ..............................................................................................................................8

PRODUCTS & SERVICES .......................................................................................................................... 9

4.1 4.1.1 4.2 4.2.1 4.2.2 4.2.3 4.3 4.3.1 4.3.2 4.3.3 4.3.4 5 5.1 5.2 5.2.1 5.2.2 5.3 5.4 5.4.1

The Technology ..........................................................................................................................................10 TrackMan Applications ......................................................................................................................10 The Venue ..................................................................................................................................................13 Prospect Location: Calgary, Alberta ..................................................................................................14 Flagship Location: Niagara Falls, Ontario..........................................................................................14 Venue Design .....................................................................................................................................14 The Experience ...........................................................................................................................................16 Golf Entertainment and Education ....................................................................................................16 Craft Brewing.....................................................................................................................................16 Food Services .....................................................................................................................................17 Community Engagement ...................................................................................................................17 MARKET & INDUSTRY ANALYSIS............................................................................................................18 Activity-Based Sports Entertainment .........................................................................................................18 The Allure of Immersive Experiences .........................................................................................................18 Drivers of Change ..............................................................................................................................19 Comparative Industries......................................................................................................................20 Investments in Sports Technology .............................................................................................................20 Entertainment in Canada ...........................................................................................................................21 Culture and Recreation Industry in Alberta .......................................................................................21

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

5.4.2 5.4.3 5.5 5.6 5.7 5.7.1 5.7.2 5.7.3

Culture and Recreation Industry in Ontario .......................................................................................21 Golf Entertainment in Canada ...........................................................................................................22 Food Service Industry .................................................................................................................................22 Canadian Craft Beer Market.......................................................................................................................22 Comparative US Markets ...........................................................................................................................23 Denver, Colorado ...............................................................................................................................23 Detroit, Michigan...............................................................................................................................24 Future Locations ................................................................................................................................24

COMPETITIVE LANDSCAPE ....................................................................................................................25

6.1 6.2

Competitive Analysis ..................................................................................................................................25 Competitive Advantage ..............................................................................................................................25

MARKETING PLAN.................................................................................................................................26

7.1 7.1.1 7.1.2 7.2 7.2.1 7.2.2 7.3 7.3.1 7.4 7.4.1 7.4.2 7.5 7.5.1 7.5.2 7.6 7.6.1

Marketing Strategy.....................................................................................................................................26 Information Gathering.......................................................................................................................26 Research & Development ..................................................................................................................26 Target Markets ...........................................................................................................................................26 Target Demographics ........................................................................................................................27 The Canadian Consumer ....................................................................................................................28 Brand Development Strategy .....................................................................................................................29 Brand Development Targets ..............................................................................................................29 Digital Marketing Strategy .........................................................................................................................29 Web Development Plan .....................................................................................................................29 Online Marketing Strategies..............................................................................................................30 Industry Associations .................................................................................................................................30 Organizations in Alberta ....................................................................................................................30 Provincial Recreation Organizations in Ontario ................................................................................31 Industry Expos, Events & Conferences .......................................................................................................31 Canadian Events ................................................................................................................................31

FINANCIAL ANALYSIS ............................................................................................................................32

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10

Assumptions ...............................................................................................................................................32 Capital Requirement & Use of Proceeds ....................................................................................................33 Revenue Summary .....................................................................................................................................33 Profitability & ROI ......................................................................................................................................34 Income Statement ......................................................................................................................................34 Balance Sheet .............................................................................................................................................35 Cash Flows ..................................................................................................................................................36 Benchmarks & Breakeven Analysis ............................................................................................................36 Ratios Analysis............................................................................................................................................37 Sensitivity Analysis .....................................................................................................................................37

BIBLIOGRAPHY .....................................................................................................................................38

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

EXECUTIVE SUMMARY

Ball Flight Entertainment

1.1

COMPANY OVERVIEW

Ball Flight Entertainment Group (“Ball Flight Entertainment,” “Ball Flight,” or “the Company”) is an activitybased entertainment venue focused on technologically-enhanced golf operations, high-end restaurant and bar operations and other leisure services offerings. The Company will be constructing its first facility in Calgary, AB and has identified a potential location in the area. Ball Flight is seeking to raise $7,000,000 for the purchase and construction of real estate, equipment for operations, inventory, marketing and other general expenses.

1.2

BUSINESS MODEL

Ball Flight Entertainment generates its revenues from five primary verticals:  Golf Operations: Participants rent allotted bay time with either a one-time purchase or a membership.  Food & Beverage Operations: The Company has established a partnership with The Landing Group for upscale restaurant and bar services.  Food Preparation Operations: Ball Flight has an additional source of revenue from pre-packaged meals as an alternative option to the restaurant venue, or for purchase during off-hours.  Contract Brewing Operations: The Company has also engaged Refined Fool Brewing Company for its craft-brewing operations on-site.  Community Engagement: Ball Flight Entertainment has the flexibility to host additional leisure services, activities and events due to the facility’s multi-use spaces throughout the two levels of the venue.

1.3

PRODUCTS & SERVICES

The Technology

The Venue

The Experience

Industry-leading golf tracking technology that measures all ball and club activities, delivering accurate metrics to shared and personal devices in real-time.

A 2-level facility in Calgary, AB that features multi-use spaces for seasonal offerings, a craft brewing facility on-site, with additional food & entertainment services.

A new kind of experience that caters to both the athletic motivation of the golf participant and the enthusiasm for unique, social activities.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

1.3.1

TrackMan Golf Systems

Ball Flight Entertainment will be utilizing TrackMan technology (software and hardware applications) for its premier entertainment facilities in Canada. TrackMan offers the first and only dual-radar tracking technology, a system that is able to track and analyze all movement before, during and after the swing of a golf club. The technology company also offers full ball flight data, from launch to landing and everything in between. These systems are incorporated into the various applications that Ball Flight will be utilizing in the launch of its first entertainment facility in Calgary.

1.4

MARKET SIZE & SCOPE

Ball Flight Entertainment is entering the sports-centric entertainment facility space at a time where capital funding for such ventures is at its peak. Between 2015 and 2018 alone, $383+ million has been raised through venture capital, seed funds, grants, angel investments and more.6 With the emergence of both big data applications and sports analytics, which are projected to reach $265 billion7 and $5.9 billion8, respectively, by 2024,

the Company is in a unique position to capitalize on a lucrative opportunity in a first-to-market venture. 1.5

CAPITAL REQUIREMENT & USE OF PROCEEDS

For the purposes of this Business Plan, the Company seeks to raise $7,000,000. The invested capital is intended to be utilized for the purchase and construction of real estate, equipment for operations, inventory, marketing and other general expenses. Capital Requirement Year 1

Office & Admin, $600,000 Advertising Costs $100,000

Building & Equipment Real Estate Properties Construction & Design Costs Equipment (Food & Beverage) Golf Equipment (Trachman) Inventory Subtotal

$ 1,200,000 $ 3,000,000 $ 1,000,000 $ 1,000,000 $ 100,000 $ 6,300,000

Advertising Costs Marketing $ Subtotal $

100,000 100,000

Building & Equipment $6,300,000

Office & Admin General Administration Legal & Insurance Contingency Subtotal

$ $ $ $

250,000 100,000 250,000 600,000

Total $ 7,000,000 “Sports Technology” Index by TNW, 2018. “Global Big Data Market: Size, Share, Trends, Growth Opportunities & Revenue Analysis by Type of Data, by Components, by Application, by End-User & by Region.” Goldstein Research, 2018. 8 “Sports Analytics Market Forecasts up to 2024.” Research and Markets, 2018. 6 7

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

1.6

REVENUE SUMMARY Revenue Summary

Total Revenues Total COGS Operating Expenses Operating Income

$ $ $ $

Year 1 8,700,000 2,575,000 3,425,000 2,700,000

$ $ $ $

Year 2 10,005,000 2,832,500 3,745,000 3,427,500

Year 3 11,505,750 3,087,425 4,057,750 4,360,575

$ $ $ $

Year 4 13,231,613 3,334,419 4,356,369 5,540,825

$ $ $ $

Year 5 15,216,354 3,567,828 4,633,754 7,014,772

TOTAL REVENUES & OPERATING INCOME Total Revenues

Operating Income

$20,000,000 $15,000,000 $10,000,000 $5,000,000 $YEAR 1

1.7

YEAR 2

YEAR 3

YEAR 4

YEAR 5

RETURN ON INVESTMENT Profitability and ROI Net Income Net Profit Margin (%) Initial Investment 5-Year ROI

$ $

Year 1 1,824,000 21% 7,000,000 26%

5-Year Annualized ROI

1.8

Year 2 2,406,000 24% 34%

Year 3 3,152,460 27% 45%

Year 4 4,096,660 31%

Year 5 5,275,818 35%

59%

75%

19%

THE OPPORTUNITY

Ball Flight Entertainment will be entering a new market in Canada (and upon future expansion, Mexico) where the demographics align seamlessly with the Company’s proposed offerings. Immersive experiences and activity-based establishments are frequently sought after by either millennials (young and agile 22-37 year olds who were raised alongside technology) and working-class individuals (consumers who have the means to spend their disposable income on new experiences and opportunities.) To date, there are 10.1 million millennials residing in Canada,9 20.8 million tourists visiting Canada annually10 and 40 million tourists visiting Mexico annually11. Furthermore, Calgary, AB is home to Ball Flight’s first venture, as well as one of the highest rates of disposable income12 and projected economic growth. 13 Ball Flight Entertainment has a unique opportunity to capitalize on a lucrative opportunity with a first-to-market venture.

“Millennials by the numbers: quick facts.” Nielsen, 2018. Statistics Canada, 2019. 11 “40 million tourists visited Mexico in 2017.” The Yucatan Times, 2018. 12 “Canada Disposable Personal Income.” Trading Economics, 2019. 13 “Markets to watch in 2019: Calgary.” PwC, 2018. 9

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

CORPORATE OVERVIEW

Strategic Partnerships

2.1

CORPORATE DATA BALL FLIGHT ENTERTAI NMENT CORPORATE DATA Name of Incorporation

Ball Flight Entertainment Group

Date of Incorporation

May 07, 2018

Address of Incorporation

NAICS Code(s) Website

2.2

200-605 11th Avenue SW Calgary, AB T2R 0EI Canada 713910: Golf courses and country clubs; 713990: All other amusement and recreation industries. ballflight-entertainment.com

Legal Counsel

Claudius Du Plooy

Management

Neil Hinchley (Managing Director)

MISSION

To offer world-class customer experiences by integrating golf and industry-leading technologies in a premier activity-based entertainment facility. 2.3

MANAGEMENT

NEIL HINCHLEY | MANAGING DIRECTOR TBA

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

2.4

STRATEGIC ALLIANCES

Ball Flight Entertainment has fostered and secured strategic partnerships with first-class technology, brewing and food services companies in Canada. 2.4.1

TrackMan Golf

TrackMan Golf (“TrackMan”) is a premier technology company that specializes in golf radar technology, analytics and software that caters to golf professionals and casual players alike. Ball Flight will be utilizing a number of products and systems developed by TrackMan for the purpose of integrating traditional driving range programs with state-of-the-art, digital capabilities such as key club and ball tracking and personalized activity and analytics reports. TrackMan’s current product offering includes: PRODUCT

TRACKMAN 4/3E

PRODUCT

F E AT U R E S

Industry-leading analysis:  Club and ball data,  Putting (TM4),  TPS and iOS integration,  Drawing tools,  Int./ext. video,  Screencasts,  Test centre and combine

F E AT U R E S

World-Class Range Experience:  Ball data for everyone,  Informed practice sessions,  Additional games.

TA R G E T S

 Manufacturers,  Teachers and fitters,  Professional players and clubs,  Casual players/individuals

TA R G E T S

 Golf clubs,  Range facilities,  Golfers and non-golfers alike.

TM RANGE

PRODUCT

F E AT U R E S

Player-Coach Interaction:  Activity overviews,  Screencast and reports,  Combine leaderboards  Communication and messages.

TA R G E T S

 Instructors,  Professional and serious players.

MYTRACKMAN

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

PRODUCT

F E AT U R E S

Educational Material:  Adaptive learning,  Free for all participants,  Test your knowledge,  Certifications.

TA R G E T S

 Instructors,  Golf enthusiasts.

TM UNIVERSITY

PRODUCT

F E AT U R E S

Industry-Leading Simulator:  Complete indoor studio,  Full TPS offering for practice,  Games for entertainment

TA R G E T S

 Golf clubs,  Wealthy individuals,  Indoor facilities.

T M S I M U L AT O R

To complete the Company’s vision of establishing a premier entertainment facility, Ball Flight will be utilizing local vendors and companies in the craft brewing and food services industries. Ball Flight endeavors to become the leader in hospitality services rendered by an activity-based entertainment establishment. 2.4.2

Refined Fool Refined Fool Brewing Company (“Refined Fool”) is an Ontario-based craft beer brewing company that specializes in premium quality microbrews. Having brewed over 110 different beers, Refined Fool is an exceptional alliance to enhance Ball Flight’s service offering.

2.4.3

The Landing Group The Landing Group is a premiere food services and restaurant company based out of Toronto, Ontario. Founded in 2010, Landing Group has worked to establish itself as a key player in the growing food services industry. The company acts as a parent company to: Harpers Landing Bar Grill Hub, Williams Landing and Hunters Landing.

2.4.4

eFreshmeals eFreshmeals offer healthy, ready-to-eat meals in Ontario. Meal preparation, assemblage and packaging are taken care of by the company and delivered to the customer. Ball Flight Entertainment will utilize the food preparation services of eFreshmeals as an alternative to the restaurant dining option for guests.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

BUSINESS MODEL

Ball Flight Verticals

3.1

PURPOSE OF THE COMPA NY

Ball Flight Entertainment intends to pursue rapid and surgical market penetration in strategic locations as a direct competitor of similar golf facilities, while offering a competitive edge with the integration of advanced technology, focus on social and unique physical programs coupled with modern craft beverage, food and entertainment revenue streams. Technology and sport (physical activities) are being integrated at an astonishing pace. Modern entertainment and social businesses are built around a commitment to strong customer service and utilization of emerging technologies in a fun, interactive environment. The consumer is looking for desirable social entertainment activities that integrate physical activity with technology, finer amenities and a unique brand.

3.2

GOLF OPERATIONS

The Company will be utilizing the technology services of TrackMan Golf, a company that designs and sells radarbased object tracking equipment and software. TrackMan applications include: cloud-based analytics and metrics dashboards for in-app use, target-based gaming challenges, virtual course simulators and more. As the golf services function across both indoor and outdoor areas, the operations are unaffected by weather and other external conditions. The Company will be generating revenues from the golf operations vertical from both one-time purchases and Ball Flight memberships. Membership programs will be developed to incentivize participants to visit the facility more frequently. The membership program will have limited barriers, as the ease of access for data tracking tools and information, that cannot be obtained elsewhere, will act as an incentive for the customer to return. The golf operations also have the flexibility to extend to broad entertainment and educational platforms, ranging from theme nights and off-season activities to leagues and professional development. Furthermore, Ball Flight’s facilities have the option to align with other physical activity-based businesses, such as yoga and other niche fitness services. Revenues from Ball Flight’s golf vertical is projected to reach $4.3 million by Year 5 of operations.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

3.3

FOOD & BEVERAGE OPER ATIONS

Ball Flight Entertainment has secured a franchise alignment with The Landing Group and a supply-chain collaboration with an on-site craft brewery: Refined Fool. Revenues generated by the food and beverage operations are projected to be the highest of the five verticals by Year 5 at $5.2 million. This is due to the fact that the Company is able to offer its multi-use spaces for various activities throughout the year, while the restaurant and bar will be operational year-round. This is also on par with comparative industries such as bowling and billiards14, whose primary source of income come from food & beverage operations.

3.4

FOOD PREPARATION OPERATIO NS

The Company has secured a material agreement with eFreshmeals for its pre-packed food options. Ball Flight has the capability to extend the utilization of restaurant operational equipment during off-hours. The Company also has on-site and delivery retail capabilities. The food preparation operations vertical can also be extended to local facilities, including the University of Calgary, local athletic facilities, gyms, yoga studios and more. Revenues from the food preparation operations in the Calgary facility are projected to generate $437,252 by Year 5.

3.5

CONTRACT BREWING OPE RATIONS

Ball Flight Entertainment has secured a material agreement with Refined Fool for its on-site craft brewing facility. Refined Fool offers supreme quality, variety in unique product profiles and branding. This alignment also secures all retail, distribution and production licenses for the facility. Along with the brew pub on-site, there will also be options for patio-seating, take-out retailing and manufacturing tours. Revenues from the contract brewing operations in the Calgary facility are projected to generate $874,503 by Year 5.

3.6

COMMUNITY ENGAGEMENT

Ball Flight is able to host multiple community events due to the flexibility and diversity of its multi-use spaces. These include: corporate events, special events, school and tourist excursions, networking events, professional leagues and tournaments, VIP events and more. Revenues from the community engagement operations in the Calgary facility are projected to generate $1.75 million by Year 5.

“Pool & Billiard Halls Industry in the US.” IBISWorld, 2019.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

PRODUCTS & SERVICES

Golf & Entertainment

THE Technology Industry-leading golf tracking technology that measures all ball and club activities, delivering accurate metrics to shared and personal devices in realtime.

THE Venue A two-level facility located in Calgary, Alberta that features multi-use spaces for seasonal offerings, a craft brewing facility on-site, along with food and additional entertainment services.

THE Experience A new kind of experience that caters to both the athletic motivation of the golf participant and the enthusiasm for unique, social activities often sought after by working-class individuals and groups. BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

4.1

THE TECHNOLOGY

Ball Flight Entertainment will be utilizing TrackMan technology (software and hardware applications) for its premier entertainment facilities in Canada. TrackMan offers the first and only dual-radar technology, a system that is able to track and analyze all movement before, during and after the swing of a golf club. The technology company also offers full ball flight data, from launch to landing and everything in between. These systems are incorporated into the various applications that Ball Flight will be utilizing in the launch of its first entertainment facility in Calgary. 4.1.1

TrackMan Applications

TRACKMAN 4/3E TrackMan 4 and 3e are the hardware components of TrackMan’s product offerings. TrackMan 4 is the first of its kind ball-tracking technology with a dual-radar system, utilizing short-range and long-range sensors to track putting, club and impact data, as well as long-range ball tracking. The product’s inherent “Launch Monitor” is able to capture every detail and movement with immaculate precision, including the ball’s exact impact location on the face of a club (see image below.) TRACKMAN 4: IMPACT L OCATION

AV G . I M PA C T H E I G H T

AV G . I M PA C T O F F S E T

AV G . D Y N A M I C L I E

61.2°

TOE

The dual radar technology enables even more data to be captured. Due to its focused, high-resolution radar beam, the TrackMan 4 launch monitor provides the user with the greatest detail and accuracy of the club and ball at the moment of impact. This advancement provides an excellent foundation for analysis and diagnosis.

Conclusive data is delivered in an easy-tounderstand format, empowering professionals and casual players alike to excel in their routines and athletic abilities.

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

TrackMan 3, the predecessor of TrackMan 4, has dominated the professional circuit in golf for more than a decade. With the ability to function both indoors and outdoors, the TrackMan 3 offers a multitude of features for users, including: real-time data-tracking capabilities across 26 different parameters, access to data and video footage of professional players to help users hone their own skills, and the ability to connect up to 6 different cameras for assured accuracy. TRACKMAN RANGE TrackMan Range offers a new kind of golf range experience – one that defines and enforces Ball Flight’s core mission of becoming a premier golf facility in the digital age. TrackMan Range utilizes radar technology and WiFi access points to connect to site servers and personal devices, delivering key golf analytics and tracking data in real-time.

Through various methods of system configuration, TrackMan data can appear on in-facility activity dashboards and screens, or direct to users’ devices across multiple range games. TrackMan Range is also adaptable to different driving ranges and layouts, offering field-radars when bays are covered by buildings across several floors, as well as back-radars, when bays are uncovered and offer a free line-of-sight. In its initial Calgary location, Ball Flight will be utilizing the former.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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MYTRACKMAN MyTrackMan offers cloud-based historical analytics of every swing by an individual within the Ball Flight facility. The real-time data offers incentives for professional and casual players alike to hone their skillsets and improve their abilities on the spot.

For decades, golf facilities, clubs and professionals have utilized TrackMan’s data for two primary reasons: precision and reliability. Users can be confident that the data they receive on their personal devices is accurate, offering incentive to continue generating better numbers and improving their personal skillsets. TrackMan is able to track a multitude of key club and ball statistics, a few of which include:

SMASH FACTOR Ball speed divided by club speed

SPIN RATE Amount of spin on ball immediately after impact

LAUNCH ANGLE Angle the ball takes off, relative to the ground

BALL SPEED Speed of ball immediately after impact

CLUB SPEED Determines a golfer’s potential distance

CARRY Distance the ball travels through the air

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

TM SIMULATOR TrackMan’s TM Simulator is applicable for facilities seeking to construct and operate indoor golf facilities, as Ball Flight Entertainment intends to do. The golf simulator comes equipped with stunning visuals and graphics, an immersive player environment and tour-graded technology to any indoor range. The TrackMan product is adaptable to any space, making it a highly attractive option for Ball Flight, whose facility features a variety of rooms and spaces.

4.2

THE VENUE

Ball Flight Entertainment will construct its first activity-based entertainment facility in Calgary, Alberta. The facility will include two levels, with indoor and outdoor golf platforms on both. The facility will also offer premier food services and a craft brewery on-site. An additional feature of the venue is the flexibility through its multi-use spaces. By way of Ball Flight’s facility design, the Company is afforded the ability to provide seasonal services and activities, including: beach volleyball, table tennis, foosball and other arcade games and activities, and more. MAIN LEVEL

1. Contract Craft Brewing Operations (Refined Tool) 2. Beach Volleyball Courts 3. Sand Patio Seating 4. Craft Brewing Operations Inventory 5. Professional Audio/Visual Equipment 6. Event Seating 7. Event Staging or Storage Area 8. Employee Exclusive Stairwell 9. Booth Seating Area 10. High-top Seating Area 11. Service Area

11. Service Area 12. Main Bar Area 13. Customer Washrooms 14. Concierge 15. Customer Service 16. Front Seating Area 17. CSR Office 18. Stairs (Upper/Lower Levels) 19. Golf Hitting Platform (Multi-Surface) 20. Entertainment Seating Area 21. Safety Netting for Lower Level

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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UPPER LEVEL

1. Upper level team offices 2. VIP Area (Segregate with private amenities 3. VIP Washrooms 4. Storage for patio events 5. Stage/Dance/Performance area 6. Patio Casual Seating – Sectional Couches 7. Patio Table Seating (Multi-Use Space) 9. Bar Service

4.2.1

10. Employee Exclusive Stairwell 11. Table Tennis Rooms (Multi-Use Space) 12. Customer Washrooms 13. Multi-Use Room 14. Open to Main Level 15. Foosball Waiting Room 16. Stairs to Main Level 17. Entertainment Seating Area 18. Golf-Hitting Platform (Multi-Surface)

Prospect Location: Calgary, Alberta

Ball Flight’s Calgary facility is located in the Northwest region, close to commercial areas and supplementing activity-based facilities, including horse racing and municipal facilities. This creates an exceptional opportunity for the Company as the location offers ease of access. Furthermore, the Calgary facility is in close proximity to dense residential areas and hotels, ensuring high-volume traffic from local residents and tourists alike. 4.2.2

Flagship Location: Niagara Falls, Ontario

Upon the completion, inauguration and proof-of-concept in Calgary, the Company intends to construct the same entertainment facility in Niagara Falls, Ontario. As the area is already an entertainment-centric region and massive tourist destination, the opportunity for Ball Flight is clear and unencumbered. 4.2.3

Venue Design

The interior design of all proposed and future facilities will be uniform in their appearance. Venue branding will include exterior signage for Ball Flight Entertainment. In the Company’s mission to merge traditional golf facilities with the modern consumers’ desire for social experiences, the interior design and decor will create an atmosphere that enhances the brand, promoting both an upscale and enjoyable experience.

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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4.3

THE EXPERIENCE

Ball Flight Entertainment offers a multitude of experiences for a variety of consumers who seek the same objective: to have an enjoyable experience. The Company seeks to merge the worlds of traditional driving ranges, which continues to see an increasing number of casual players (approximately 4.2 million Canadians15) and the digital era, where the Big Data market is projected to reach $136.3 Billion by 2027, from $55.6 Billion in 2018.16 4.3.1

Golf Entertainment and Education

Golf is an exciting sport that is attractive to a beginner user, but consistently challenging for the long-term participant (with the previous lack of accurate tracking tools and analytics.) Furthermore, while the activity is built on self-improvement, it is also driven by socialization and community. Ball Flight offers a new kind of experience that caters to both the athletic motivation of the golf participant, whether he is a professional or casual player, and the enthusiasm for unique, social activities often sought after by working-class individuals and groups. The Company’s partnership with TrackMan Golf enables participants to also engage in state-of-the-art golf education, where users can not only view, use and assess their own player metrics, but professional golfers’ metrics as well. The technology has been created to seamlessly integrate with the participants’ personal devices, creating a unique, personal experience within a social environment. 4.3.2

Craft Brewing

Ball Flight will be utilizing the craft brewing services of Refined Fool in its premier entertainment facility. Refined Fool’s offerings will include rotating taps along with traditional brands.

In addition to its craft beer selections, Ball Flight will offer a sophisticated beverage menu, including bottle services, unique cocktails and organic ingredients. 15 16

“Canadian Golf Consumer Behaviour Study.” NAVICOM/National Allied Golf Associations, 2019. “Analytics Comes of Age.” McKinsey, 2018.

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

4.3.3

Food Services

Ball Flight Entertainment will be utilizing the services of The Landing Group for its restaurant dining option within the facility, and eFreshmeals for its pre-packaged meal offerings. The two companies offer extensive and diverse menu options, with options for children, as well as consumers with food sensitivities. As the Company is in the business of athletic/physical activity services, Ball Flight has ensured that all food and beverage partnerships can cater to the health-conscious consumer. 4.3.4

Community Engagement

As Ball Flight’s facility is equipped with multi-use spaces, the Company has the flexibility to engage and cater to broad audiences and special events. Ball Flight can facilitate:          

Corporate Events; Bachelor/Bachelorette Parties; Special Events (Birthdays and Reunions); Weddings; Networking and Professional Events; School Trips and Tour Excursions; VIP Events; Leagues and Tournaments; Conferences; Professional Development (Education.)

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MARKET & INDUSTRY ANALYSIS

Sports and Leisure

5.1

ACTIVITY -BASED SPORT S ENTERTAINMENT

Ball Flight Entertainment seeks to break ground as the first activity-based entertainment facility of its kind in Canada. Similar, existing facilities in the United States have proven to be successful, with companies such as Topgolf Entertainment Group earning a valuation of USD$1.4 billion (CAD$1.86 billion) since opening their first facility in 200017. In an industry that is expected to reach $106.45 billion by 2022, with a CAGR of 3%18, combining physical activities with a traditional pub setting opens a new market targeting a booming demographic: millennials. Born between 1981 and 1996, millennials are the first generation to come of age with the new millennia and to see the evolution of the digital era. As consumers become increasingly reliable on social media to determine their spending habits, creating an atmosphere that is both attractive to millennials and one that encourages social sharing is crucial to success. With an advantage over the US market, Canadian consumers have a lower legal drinking age of 18, opening the door to the next generation of consumers: Generation Z.

This combined population (18-44) is the largest in Canada, making up 13.36 million adults.19 This offers Ball Flight the opportunity to appeal to 13+ million consumers with its activity-based entertainment facilities across Canada. With its extensive product and service offerings, some of which have not been introduced to the country before, the Company is in an advantageous position to capture a large share of the market.

5.2

THE ALLURE OF IMMERS IVE EXPERIENCES

Immersive activities have ranged from traditional bowling to more modern “escape rooms” that continue to grow increasingly popular among millennials across North America. More companies are working to cater to consumers’ emotional connections with their products through the creation of the immersive experiences. Having the ability to make consumers’ experiences shareable via social media platforms, such as Instagram or Facebook, create a more significant and long-lasting impact.20 Golf Delta, Inc., 2016. “PwC Sports Outlook: At the gate and beyond.” PwC, 2018. 19 “Resident population of Canada in 2018, by gender and age group (in millions).” Statista, 2019. 20 “Forget dinner and a movie, 'immersive' high-adrenaline adventures catching on with millennials.” Financial Post, 2015. 17 18

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

In professional sports, leagues and venues are continuously looking for new ways to attract consumers with new offerings in an attempt to keep attendance high. In a global market that is expected to be more than $1 billion by 202521, immersive sports media are seen as a viable source of prospective expansion for the sport market. Immersive activities provide the same thrill and entertainment factor that attending sporting events do, but put more control in the consumers’ hands. And while there are existing options within virtual reality (VR) platforms for golf, immersive activities, such as Ball Flight’s offering, create a social, shareable and meaningful experience. 5.2.1

Drivers of Change

The digital economy is several orders of magnitude greater in size and scope than it was a decade ago, and digital spending is projected to gain market share at a rapid pace. This is applicable not only to the Leisure and Recreation markets, but to the Entertainment and Media (E&M) sector as well, the sub-segments of which are related both directly and indirectly to Ball Flight’s offering. In a recent report by PwC titled “Perspectives from the Global Entertainment & Media Outlook 2018–2022,” the drivers of change were broken down as follows:

PERSONALISATION Consumers no longer want one-size-fits-all experiences. As a result, data analytics and technology that can support better decision-making with respect to content, distribution and user experience have become increasingly critical to success in the marketplace. UBIQUITOUS CONNECTIV ITY Ongoing investments in technology and broadband network infrastructure have expanded coverage, capacity, bandwidth and connectivity to the point where consumers and their devices are always connected and always on. These developments support an ever-expanding supply and diversity of content, experiences and applications that can be delivered directly and digitally to users. VALUE SHIFT TO PLATF ORMS As entertainment and media have digitised, social media and technology platforms have often been the primary beneficiaries of users’ growth in time and spending. The platforms have shown greater effectiveness in monetising across advertising, subscriptions and transactions. THE MOBILE CONSUMER As spending grows, the connected mobile device is rapidly becoming consumers’ primary means of accessing E&M content and services across virtually all markets worldwide. That makes it imperative for content creators, distributors and platforms to develop the means to reach and monetise mobile consumers directly through mobile experiences rather than through traditional sales and distribution approaches. 21

“PwC Sports Outlook: At the gate and beyond.” PwC, 2017.

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5.2.2

Comparative Industries

Ball Flight Entertainment is utilizing next-generation golf technology in the construction of an activity-based entertainment facility. And while it is the first golf-centric facility of its kind in Canada, the successes of other existing activity-based entertainment facilities can offer greater insight into the Company’s potential market share and opportunity.

BOWLING Similar to that of Ball Flight’s offering, bowling centers offer platforms for physical activities accompanies by food and beverage services. According to Technavio, bowling is projected to be a $3.2 billion industry by 2023.22 The report also stated that North America accounted for 39% of the market share in 2018. To date, there are 558 bowling centers in Canada, with revenues from operations ranging from $30,000 to $5,000,000 annually.23 BILLIARDS & CUE SPORTS In 2018, Pool and Billiards Halls in the United States generated $1.26 billion in revenues.24 The standard Pool Hall is comprised of Food & Drink, Arcade Games and Table Rental verticals, among other smaller revenue streams that differ per facility. Much like Ball Flight’s business model and financial projections, the Pool Hall industry’s primary revenue generator is the Food & Drink category. OTHER INDUSTRIES There have been other successful activity-based businesses built from hobby to profit centres to note. In recent years, axe-throwing facilities have been generating attention from investors and consumers alike.25 In fact, an axe-throwing/brew pub establishment in Eatontown, New Jersey generated $1.15 million in sales and 40,000 customers26 after less than two years in operation.

5.3

INVESTMENTS IN SPORT S TECHNOLOGY

Ball Flight Entertainment is entering the sports-centric entertainment facility space at a time where capital funding for such ventures is at its peak. Between 2015 and 2018 alone, $383+ million has been raised through venture capital, seed funds, grants, angel investments and more.27 With the emergence of both big data applications and sports analytics, which are projected to reach $265 billion28 and $5.9 billion29, respectively, by 2024,

the Company is in a unique position to capitalize on a lucrative opportunity in a first-to-market venture. “Global Bowling Centers Market 2019-2023.” Technavio, 2019. “Financial performance - Canadian Industry Statistics.” Statistics Canada, 2018. 24 “Pool & Billiard Halls Industry in the US.” IBISWorld, 2019. 25 “Axe-Throwing Bars: Why Mixing Weapons And Beer Is Surprisingly Good Business.” Fast Company, 2018. 26 “Two couples turned an axe-throwing hobby into a million-dollar business.” Yahoo! Finance, 2018. 27 “Sports Technology” Index by TNW, 2018. 28 “Global Big Data Market: Size, Share, Trends, Growth Opportunities & Revenue Analysis by Type of Data, by Components, by Application, by End-User & by Region.” Goldstein Research, 2018. 29 “Sports Analytics Market Forecasts up to 2024.” Research and Markets, 2018. 22 23

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

SPORTS TECHNOLOGY FUNDING ROUNDS $160,000,000.00 $140,000,000.00

$383+

$120,000,000.00 $100,000,000.00 $80,000,000.00

Million

$60,000,000.00 $40,000,000.00 $20,000,000.00 $2015

2016

2015 Venture Capital $ 133,800,000.00 Seed Fund $

4,809,945.38

Grant Angel $ Crowdfunding -

588,902.50

2017

2016

2018

2017

HAS BEEN RAISED IN THE SPORTS TECH SECTOR BETWEEN 2015-2018.

2018

73,232,225.00

$ 116,400,800.00

48,000,000.00

1,283,400.00

2,500,000.00

1,000,000.00

81,442.63

566,425.00

50,000.00

615,000.00

1,055,272.43

Denotes Investment in Golf Technology Source: Index by TNW (2019)

5.4

ENTERTAINMENT IN CAN ADA

According to PwC’s Global Entertainment and Media Outlet Report, media companies that combine technology with industry assets such as relationship management, customer insights, and data collected through various platforms will thrive.30 Applying these factors to the activity-based market has helped competitors become successful in these new ventures. 5.4.1

Culture and Recreation Industry in Alberta

The Information, Culture and Recreation industry accounted for 3.4% of total employment in Alberta in 2016 and is anticipated to grow at an average rate of 1.2% to 2021.31 Of those employed within the industry, 56.1% of workers are aged from 25 to 54 years,32 the same demographic that Ball Flight Entertainment will be targeting and catering to. 5.4.2

Culture and Recreation Industry in Ontario

The Information, Culture and Recreation industry in Ontario employed 313,000 individuals in 2017.33 The Canadian province also prides itself on creating and sustaining opportunities for local residents to participate in physical activities and events. One such example is the implementation of the Ontario Sport and Recreation Communities Fund (OSRCF), a grant program that supports a vision of getting and keeping Ontarians active in community sport, recreation and physical activity. To date, during the 2018-2019 fiscal year, the program has funded projects for tennis, squash, volleyball and other sports initiatives.34

“Millennials, Data, and Technology Shape Canada’s Entertainment and Media Future.” PwC, 2016. “Information, Culture and Recreation Industry: Industry Profiles 2018.” Government of Alberta, 2018. 32 Alis – Government of Alberta, 2019. 33 “Economic Data.” Government of Ontario, 2019. 34 “2018-19 Ontario Sport and Recreation Communities Fund (OSRCF).” Government of Ontario, 2019. 30 31

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5.4.3

Golf Entertainment in Canada

The Canadian Golf Industry is valued at $19.7 billion, with 5.7 million golfers participating annually35. Canadian golf participation rates are among the highest in the world, and golf tourism is estimated to be $1.9 billion annually. With 52 venues operating in the US, UK and Australia, Topgolf is currently assessing potential locations across Canada. While there is currently no direct competitor in Canada, Topgolf states that the country has been the most requested area for expansion.

Canadian consumers have voiced their desire for the game, with no existing options to satisfy it. 5.5

FOOD SERVICE INDUSTR Y

One of most profitable verticals Ball Flight intends to build and sustain is the Company’s food and beverage operations. The strategically-selected regions in which Ball Flight will open its premier operations offer considerable opportunities for the Company. The Canadian food service industry generates $75 billion in annual sales36, representing about 4% of the national Gross Domestic Product (GDP). Canada’s food service industry is comprised of a commercial sector (restaurants, bars, and caterers) and non-commercial sector (hospitals and hotels.) According to Statistics Canada’s Labour Force Survey, about 1.2 million Canadians are directly employed by the nation’s restaurant industry. Between 2019 and 2021, commercial food service sales will grow by an average of 3.9% per year.37 Adjusted for menu inflation, real sales will grow by 1.2% – on par with overall population growth.

By 2021, commercial food service sales will grow to $78 billion. 5.6

CANADIAN CRAFT BEER MARKET

The craft brewing industry in Canada continues to grow, increasing 17.6% from 2016 (695 operating breweries) to 2018 (817 operating breweries), generating $6.4 billion in revenue38. In Alberta alone, the province saw an increase in 40% operating breweries, providing a large selection for consumer options.39 Strong growth is expected to continue, with 125 existing and pending licenses at the start of 2019, up from 50 in 2016.40 The rapid growth can provide an exciting element of seasonal and rotating options, keeping the taps new for even the frequent visitor. The focus on potential partnerships with local craft brewers with the Company provides an advantage for local partnerships and recognition. Canada Golfs, 2009. “By the Numbers: Canada’s food service industry.” UFCW, 2017. 37 “Foodservice Industry Forecast.” Restaurants Canada, 2019. 38 “IBISWorld Industry Report 31212CA Breweries in Canada.” IBISWorld, 2018. 39 Beer Canada, 2017. 40 “The year in beer: Strong growth and a heady future for Alberta's craft scene.” CBC News, 2019. 35 36

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

5.7

COMPARATIVE US MARKE TS

Ball Flight Entertainment’s new venture will be the first of its kind in Canada, putting the Company in a unique position of being the first experience for consumers, fostering strong brand recognition and loyalty. Similar to the anticipated location, Denver, CO and Detroit, MI offer potential insight into how the markets will fair. With similar weather conditions, median income and other economic factors, Detroit and Denver offer many alternative activities for consumers and have both proven to be successful in the immersive activity industry. All three cities are home to multiple major professional sports teams, large universities, and growing economies. With economic growth comes increased disposable income for families. As a whole, Canada’s economic growth is gearing down to a sustainable pace, with consistent growth through 2020 leveling out at 1.4%.41

Calgary will see the highest economic growth rate in the country, at 2.3% in 2019.42 Calgary had an estimated 3.9 million visitors in 2018, higher than the anticipated average for Canada.43 The Company is poised to establish the alternative-golfing experience in Calgary as an additional attraction for visitors and locals alike in an area where the consumers have the additional money to spend. MEDIAN INCOME BY LOC ATION

$78.7k

$57.7k

$67.7k

DENVER, CO

DETROIT, MI

CALGARY, AB

Sources: CBC (2016), US Census (2017), Data USA (2016)

5.7.1

Denver, Colorado

Similar to Calgary, Denver boasts a thriving craft brewing scene. While there are over 230 existing and operational breweries44 in the city, Topgolf offers only nine local offerings. Notwithstanding, visitors still flock to the current location in South Denver, allowing them to open a second location with an anticipated 450,000 visitors per year north of the city by late 2019.45 With the similar weather, culture and entertainment options to that of Denver, there is an expected to be paralleled success in the Calgary market.

“Canada: Economic growth gearing down, but to a sustainable pace.” Deloitte, 2018. “Markets to watch in 2019: Calgary.” PwC, 2018. 43 “Canada to See Strong Increase in International Tourists in 2018.” The Conference Board of Canada, 2018. 44 “Colorado Breweries: Defining the Craft.” Colorado, 2018. 45 TopGolf, 2018. 41 42

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5.7.2

Detroit, Michigan

Michigan comes in fifth in the United States for number of breweries, with 235 in the Mitten State.46 Located 30 minutes outside of Detroit, Ann Arbor is home to the area’s fully-functioning alternative-golfing facility. TopGolf opened its USD$12.5 million facility in late December 2018.47 5.7.3

Future Locations

In addition to the two locations in Canada, the Company looks to expand to Mexico in Cabo San Lucas and Playa del Carmen. This will, once more, be a new frontier, as alternative golfing experiences have yet to open in these two cities. AARP Research conducted a survey of domestic and international travellers to analyze destinations, motivations and expectations for travel. According to the report, 64% of millennials travel either domestically or internationally annually, with an average of 2.6 trips planned per year.48 Mexico continues to be a popular travel destination for all generations with roughly 9% of international travel being to the country. In a study conducted by World Youth Student and Educational (WYSE) Travel Confederation, millennials cited three factors in what brings them happiness when they travel: destination, trip length, and activities, with Mexico being one of the few that caters to all three needs. The Quintana Roo state continues to be the number one travel destination in Mexico, being home to hotspots such as Tulum, Cancun and Playa del Carmen. This area saw an increase of 8.9% international tourists, while Cabo San Lucas saw an increase of 16.8% in 2017, making them the fourth highest in Mexico.49

Golf tourism continues to grow in Mexico, and Los Cabos was named the number one golf destination of the year for Latin America & The Caribbean.50 This presents an increasingly compelling opportunity for Ball Flight Entertainment. As the Company is targeting millennials, activity-seekers and golf enthusiasts, Los Cabos, along with other major Mexican cities, attracts all three target consumers. Upon completion of its first few operations across the Americas, future expansion into the tropical country will prove to be a lucrative feat.

Michigan.org, 2018. “Topgolf to open $12.5 million complex in Auburn Hills on Friday.” Crain’s Detroit Business, 2018. 48 “Travel Research: 2018 Travel Trends.” AARP, 2018. 49 “Results of Tourism Activity: Mexico.” Sectur Secretaría de Turismo, 2017. 50 “IAGTO Awards.” IAGTO, 2017. 46 47

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

COMPETITIVE LANDSCAPE

Golf Facilities

6.1

COMPETITIVE ANALYSIS

TOP GOLF Top Golf is a global golf-based recreation and entertainment facility with 52 locations across the United States, United Kingdom and Australia. Topgolf games can be played by all ages and skill levels, and the microchipped golf balls score themselves, providing players with instant feedback on each shot's accuracy and distance. Each TopGolf venue features climate-controlled hitting bays for year-round play, food, beverage, music and HDTVs on which various sports games are shown, such as football, basketball and golf. Topgolf also offers golf lessons, leagues, tournaments, concerts, and corporate and social events. DRIVE SHACK Drive Shack employs a similar sports-based model wherein the entertainment venue and services play a pivotal role. Drive Shack’s locations are all US-based, with new locations opening in North Carolina, Florida, Louisiana and Virginia in 2019. FLYING TEE Flying Tee is also a US-based golf entertainment facility with a single location in Oklahoma. The company utilizes a membership framework divided into 4 programs: player (a lifetime membership that is a requirement for all players), honor roll (a complimentary membership that includes benefits such as 20% off on bay time), clubhouse (paid membership includes ongoing benefits and perks for the users) and professional (purchased membership that allows users to rotate between 10 employees.) TRADITIONAL DRIVING RANGES Traditional driving ranges also serve to act as a competitor for Ball Flight as they offer one of the same components to consumers. When Ball Flight makes its entrance into the market, there will be a segment of consumers that may not immediately understand the value-add of the technological component and may resort to traditional driving ranges as they are accustomed to. This barrier will be mitigated with appropriate branding and marketing strategies that efficiently deliver the brand message to strategically-targeted consumers.

6.2

COMPETITIVE ADVANTAG E

Ball Flight Entertainment is the first-of-its-kind entertainment facility to enter the Canadian and Mexican markets. While there are competitors in the United States (listed above), they do not act as direct competition, enabling Ball Flight to take advantage of the business knowledge put forth by the existing companies. Furthermore, the Company’s target markets and demographics are ready for Ball Flight’s offering, with disposable income at an all-time high and global ubiquity of technology and data consumption.

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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MARKETING PLAN

Generating Growth

7.1

MARKETING STRATEGY

Ball Flight Entertainment will enter the immersive experience, sport and recreation industries in the Americas, beginning with three first-to-market facilities in Canada and Mexico. The Company will enforce a comprehensive marketing strategy to ensure the Ball Flight brand, mission and clearly-defined value proposition are all equally and consistently relayed to all stakeholders. The Company’s comprehensive strategy will include:       7.1.1

Thorough analysis of the competitive environment; Implementing the marketing mix; Determining all required resources; Launching new products and services as the business model evolves; Training of all part-time and full-time personnel; and Identifying key risks. Information Gathering

The Company will put extensive efforts in gathering information relative to Ball Flight’s business strategy, expansion plans and growth potential in identified target markets. The essential phases of the information gathering process include: discussions with high-level managers, discussions with mid-level managers, interviews with experts and industry professionals, secondary data analysis and internal, quantitative research (customer data.) 7.1.2

Research & Development

Ball Flight will perform comprehensive data analysis in the forms of primary and secondary research to better understand all variables associated with implementing the marketing strategy for a successful entry into the marketplace. Primary research will be focused on external data through the use of surveys, observations or experimentation (focus groups). Secondary research will be primary focused on utilizing existing resources such as company records, surveys, research reports and published books.

7.2

TARGET MARKETS

Ball Flight Entertainment will be targeting consumers across North America, with the first 3 regions including:  Calgary, AB, Canada  Niagara Falls, ON, Canada  Quintana Roo, Mexico

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

7.2.1

Target Demographics

The Company intends to build its operations to serve consumers of physical activities and sports (16.2 billion Canadians51), consumers of technology and data applications (global consumer spending on media content and technology reached $1.7 trillion in 201752) and consumers of craft beer products (an industry that was valued at $6.4 billion in Canada in 201853). All three target groups are comprised of predominately millennials, or individuals aged 22-37. This is on par with TopGolf’s demographics data, with the majority (53%) of participants aged between 18 and 34 years.

70%+ OF GUESTS ARE NON-GOLFERS

With 10.1 million millennials residing in Canada,54 20.8 million tourists visiting Canada annually55 and 40 million tourists visiting Mexico annually56,

Ball Flight Entertainment has a combined total of 70.9 million potential consumers upon the buildout of its first three facilities.

“Health characteristics, annual estimates.” Statistics Canada, 2018. “Global Consumer Spending on Media Content & Technology Forecast 2017-21.” PQ Media, 2018. 53 “IBISWorld Industry Report 31212CA Breweries in Canada.” IBISWorld, 2018. 54 “Millennials by the numbers: quick facts.” Nielsen, 2018. 55 Statistics Canada, 2019. 56 “40 million tourists visited Mexico in 2017.” The Yucatan Times, 2018. 51 52

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7.2.2

The Canadian Consumer

Ball Flight Entertainment is entering the Canadian marketplace at a time of healthy economic output. With consumer confidence, disposable personal income and consumer spending on the rise through to 2018, the Company is able to target Canadian consumers without economic barriers. DISPOSABLE PERSONAL INCOME IN CANADA (IN CAD MILLION)

Source: Trading Economics/Statistics Canada, 2019.

Disposable personal income reached an all-time high of $1.24 billion in Q2 2018.57 CONSUMER SPENDING IN CANADA (IN CAD MI LLION)

Source: Trading Economics/Statistics Canada, 2019. 57

“Canada Disposable Personal Income.” Trading Economics, 2019.

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

7.3

BRAND DEVELOPMENT STRATEGY

Brand is integral to the Ball Flight image in the marketplace and therefore a key asset to the business. The Company is building a unique identity to reinforce a positive reception upon entry into the new, targeted markets. The Company will work with a group of professionals in the creative, internet marketing, social media, offline events, and finance areas to develop brand equity. 7.3.1

Brand Development Targets

Ball Flight has the following principal strategic objectives:         

Continue Research and Development of the primary service; Develop promotional materials for all products including print materials, digital assets for website and social media profiles, and the mobile application; Develop in-house Marketing and Sales expertise; Develop comprehensive social media marketing campaigns; Develop effective sales performance targets; Administer the ongoing sales and marketing efforts; Maintain quality performance; Continued development of new markets.

The Company will undertake the following assignments in order to fulfill its operational targets:  Collaborate with Techs and Creatives to direct new product development and design direction, including evaluating processes for each category;  Develop major qualitative and quantitative consumer research and investigating purchase models, including membership and subscription models;  Create cross-promotions timed for the release of feature applications;  Work closely with Product Development in planning concepts and feature/functionality, ensuring that website offers innovation, quality and clear points of differentiation to consumers;  Establish a global communication process that provides timely information and facilitates coordination across geographic regions and business units.

7.4

DIGITAL MARKETING ST RATEGY

7.4.1

Web Development Plan

Ball Flight Entertainment will design its corporate website, which hosts information about the company and its products. The marketing strategy for the website will be based on inclusion of the internet address in all business material and products that the Company releases. The Web Development Plan will incorporate the following strategic targets:      

Responsive web design; Attractive, appealing and user-friendly design; Utilization of UX/UI best practices; A full set of ‘Calls to Action’ (CTA’s) to illicit consumer response and engage the target audience, as well as capture consumer data for future marketing strategies; A comprehensive Investor Relations section, including stock information, corporate governance, upto-date investor presentations, and required financial information.

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The Web Development Plan will follow a two-fold approach:

7.4.2

Online Marketing Strategies

Efficient online marketing strategies are a crucial component of Ball Flight’s marketing strategy as the Company is a driver, in part, of online applications and a social sharing experience. The Company will utilize the following proven online marketing strategies:  Conversion Rate Optimization (CRO)  Using videos on landing pages increase conversion rates by 86%.58  90% of users who search a product/service online has not made their mind up about a brand prior to starting the search.59  Local Search Engine Optimization (SEO)  72% of consumers who did a local search visited a store or facility within 5 miles.60  30% of mobile searched are related to a location.61  Local searches lead 50% of mobile users to visit stores or facilities within 24 hours.62  Organic Search  Google is responsible for 94% of total organic web traffic.63  61% of marketers state improving SEO and growing organic presence is the top inbound marketing priority.64  70-80% of search engine users are focused solely on organic results.65

7.5

INDUSTRY ASSOCIATION S

The Company will form alliances with industry organizations in all regions in which Ball Flight is operational, which will include the provinces of Alberta and Ontario and the Quinana Roo region in Mexico. 7.5.1    

Organizations in Alberta Athletics Alberta Alberta Golf Alberta Sport Connection Alberta Schools Athletic Association

Wordstream, 2018. Status Labs, 2018. 60 Wordstream, 2016. 61 Google, 2016. 62 Google, 2018. 63 Web Presence Solutions, 2017. 64 Hubspot, 2018. 65 MarTech, 2018. 58 59

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

7.5.2

Provincial Recreation Organizations in Ontario

Upon the build-out of its Ontario facility, Ball Flight will have the option of aligning with a Provincial Recreation Organization (PRO.) PROs are non-profit incorporated organizations with a mandate to provide recreation programs and/or leadership and skills training for the recreation sector. PROs provide a wide range of recreation opportunities throughout the province. They ensure that recreation activities and programs are available at reasonable cost, physically accessible to all, environmentally friendly, safe, cost effective and meet the needs of Ontarians. PROs have a history of assisting the ministry to deliver its priorities. Existing Provincial Recreation Organizations include, but are not limited to:    

Aboriginal Sport Circle Boys and Girls Clubs Canadian Intramural Recreation Association – Ontario (CIRA) Ontario Fitness Council (OFC)

7.6

INDUSTRY EXPOS, EVEN TS & CONFERENCES

7.6.1

Canadian Events

THE CANADIAN GOLF COURSE MANAGEM ENT CONFERENCE March 4-7 | Banff, AB CALGARY GOLF SHOW March 23-24, 2019 | Calgary, AB ATHLETICS ALBERTA – PERFORMANCE COACH WO RKSHOP 2019 April 24-28, 2019 | Calgary, AB CANADA SPORTS ANALYT ICS AND TECHNOLOGY C ONFERENCE June 21, 2019 | Toronto, ON GOLF INDUSTRY EXPO TBA | Alliston, ON

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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FINANCIAL ANALYSIS

5-Year Projections

8.1

ASSUMPTIONS Revenue Assumptions

Golf Operations $ Restaurant & Bar Operations $ Food Preparation Operations $ Contract Brewing Operations $ Community Engagement $ Special Projects $ Other Income $ Total Sales $

Year 1 2,500,000 3,000,000 250,000 500,000 1,000,000 250,000 1,200,000 8,700,000

Cost of Goods Sold Golf Operations $ Restaurant & Bar Operations $ Food Preparation Operations $ Contract Brewing Operations $ Community Engagement $ Special Projects $ Total Cost of Goods Sold $

500,000 1,350,000 100,000 250,000 250,000 125,000 2,575,000

Gross Margin

6,125,000

$ $ $ $ $ $ $

Year 2 2,875,000 3,450,000 287,500 575,000 1,150,000 287,500 1,380,000 10,005,000

550,000 1,485,000 110,000 275,000 275,000 137,500 2,832,500

7,172,500

$ $ $ $ $ $ $

Year 3 3,306,250 3,967,500 330,625 661,250 1,322,500 330,625 1,587,000 11,505,750

599,500 1,618,650 119,900 299,750 299,750 149,875 3,087,425

8,418,325

$ $ $ $ $ $ $

Year 4 3,802,188 4,562,625 380,219 760,438 1,520,875 380,219 1,825,050 13,231,613

$ $ $ $ $ $ $

Year 5 4,372,516 5,247,019 437,252 874,503 1,749,006 437,252 2,098,808 15,216,354

647,460 1,748,142 129,492 323,730 323,730 161,865 3,334,419

692,782 1,870,512 138,556 346,391 346,391 173,196 3,567,828

9,897,194

11,648,526

Ongoing Business Expenses Expenses Operating Expenses Staff Salaries Benefits Consulting Fees Entertainment Marketing Maintenance Costs Equipment Leases Management Salaries Corporate Overhead Utilities General & Administration

Total Operating Costs

32 |

$ $ $ $ $ $ $ $ $ $ $ $

Year 1 375,000 1,200,000 250,000 100,000 37,500 112,500 150,000 75,000 375,000 150,000 300,000 300,000

3,425,000

$ $ $ $ $ $ $ $ $ $ $ $

Year 2 412,500 1,320,000 275,000 110,000 41,250 123,750 165,000 82,500 405,000 162,000 324,000 324,000

3,745,000

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

$ $ $ $ $ $ $ $ $ $ $ $

Year 3 449,625 1,438,800 299,750 119,900 44,963 134,888 179,850 89,925 433,350 173,340 346,680 346,680

4,057,750

$ $ $ $ $ $ $ $ $ $ $ $

Year 4 485,595 1,553,904 323,730 129,492 48,560 145,679 194,238 97,119 459,351 183,740 367,481 367,481

4,356,369

$ $ $ $ $ $ $ $ $ $ $ $

Year 5 519,587 1,662,677 346,391 138,556 51,959 155,876 207,835 103,917 482,319 192,927 385,855 385,855

4,633,754

8.2

CAPITAL REQUIREMENT & USE OF PROCEEDS

Office & Admin, $600,000

Year 1

Advertising Costs $100,000

Building & Equipment Real Estate Properties Construction & Design Costs Equipment (Food & Beverage) Golf Equipment (Trachman) Inventory Subtotal

$ 1,200,000 $ 3,000,000 $ 1,000,000 $ 1,000,000 $ 100,000 $ 6,300,000

Advertising Costs Marketing $ Subtotal $

Building & Equipment $6,300,000

100,000 100,000

Office & Admin General Administration Legal & Insurance Contingency Subtotal

$ $ $ $

250,000 100,000 250,000 600,000

Total $ 7,000,000

8.3

REVENUE SUMMARY Revenue Summary

Total Revenues Total COGS Operating Expenses Operating Income

$ $ $ $

Year 1 8,700,000 2,575,000 3,425,000 2,700,000

$ $ $ $

Year 2 10,005,000 2,832,500 3,745,000 3,427,500

$ $ $ $

Year 3 11,505,750 3,087,425 4,057,750 4,360,575

$ $ $ $

Year 4 13,231,613 3,334,419 4,356,369 5,540,825

$ $ $ $

Year 5 15,216,354 3,567,828 4,633,754 7,014,772

REVENUE & OPERATING INCOME

YEAR 2

YEAR 3

YEAR 4

$7,014,772

$15,216,354 $5,540,825

$13,231,613 $4,360,575

$3,427,500

$10,005,000 $2,700,000

$8,700,000 YEAR 1

Operating Income

$11,505,750

Total Revenues

YEAR 5

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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8.4

PROFITABILITY & ROI Profitability and ROI

Revenue Gross Margin Gross Margin (%) Net Income Net Profit Margin (%) 5-Year ROI 5-Year Annualized ROI

8.5

Year 1 8,700,000 6,125,000 70% 1,824,000 21% 26% 19%

$ $ $

Year 2 10,005,000 7,172,500 72% 2,406,000 24% 34%

$ $ $

Year 3 11,505,750 8,418,325 73% 3,152,460 27% 45%

$ $ $

Year 4 13,231,613 9,897,194 75% 4,096,660 31% 59%

$ $ $

Year 5 15,216,354 11,648,526 77% 5,275,818 35% 75%

$ $ $

INCOME STATEMENT Income Statement Year 1

Year 2

Year 3

Year 4

Year 5

Revenues Golf Operations $ Restaurant & Bar Operations $ Food Preparation Operations $ Contract Brewing Operations $ Community Engagement $ Special Projects $ Other Income $ Total Revenues $

2,500,000 3,000,000 250,000 500,000 1,000,000 250,000 1,200,000 8,700,000

$ $ $ $ $ $ $ $

2,875,000 3,450,000 287,500 575,000 1,150,000 287,500 1,380,000 10,005,000

$ $ $ $ $ $ $ $

3,306,250 3,967,500 330,625 661,250 1,322,500 330,625 1,587,000 11,505,750

$ $ $ $ $ $ $ $

3,802,188 4,562,625 380,219 760,438 1,520,875 380,219 1,825,050 13,231,613

$ $ $ $ $ $ $ $

4,372,516 5,247,019 437,252 874,503 1,749,006 437,252 2,098,808 15,216,354

Golf Operations Restaurant & Bar Operations Food Preparation Operations Contract Brewing Operations Community Engagement Special Projects Total Cost of Goods Sold

$ $ $ $ $ $ $

500,000 1,350,000 100,000 250,000 250,000 125,000 2,575,000

$ $ $ $ $ $ $

550,000 1,485,000 110,000 275,000 275,000 137,500 2,832,500

$ $ $ $ $ $ $

599,500 1,618,650 119,900 299,750 299,750 149,875 3,087,425

$ $ $ $ $ $ $

647,460 1,748,142 129,492 323,730 323,730 161,865 3,334,419

$ $ $ $ $ $ $

692,782 1,870,512 138,556 346,391 346,391 173,196 3,567,828

6,125,000

7,172,500

8,418,325

9,897,194

11,648,526

Operating Expenses Staff Salaries Benefits Consulting Fees Entertainment Marketing Maintenance Costs Equipment Leases Management Salaries Corporate Overhead Utilities General & Administration

Gross Profit

$ $ $ $ $ $ $ $ $ $ $ $

375,000 1,200,000 250,000 100,000 37,500 112,500 150,000 75,000 375,000 150,000 300,000 300,000

$ $ $ $ $ $ $ $ $ $ $ $

412,500 1,320,000 275,000 110,000 41,250 123,750 165,000 82,500 405,000 162,000 324,000 324,000

$ $ $ $ $ $ $ $ $ $ $ $

449,625 1,438,800 299,750 119,900 44,963 134,888 179,850 89,925 433,350 173,340 346,680 346,680

$ $ $ $ $ $ $ $ $ $ $ $

485,595 1,553,904 323,730 129,492 48,560 145,679 194,238 97,119 459,351 183,740 367,481 367,481

$ $ $ $ $ $ $ $ $ $ $ $

519,587 1,662,677 346,391 138,556 51,959 155,876 207,835 103,917 482,319 192,927 385,855 385,855

Operating Expenses

3,425,000

3,745,000

4,057,750

4,356,369

4,633,754

Operating Income

2,700,000

3,427,500

4,360,575

5,540,825

7,014,772

Depreciation Pre-tax Income Income Tax Net Income

$ $ $ $

420,000 2,280,000 456,000 1,824,000

$ $ $ $

420,000 3,007,500 601,500 2,406,000

$ $ $ $

420,000 3,940,575 788,115 3,152,460

$ $ $ $

420,000 5,120,825 1,024,165 4,096,660

$ $ $ $

420,000 6,594,772 1,318,954 5,275,818

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BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

8.6

BALANCE SHEET Balance Sheet

Cash

Year 1 $ 2,154,250

Year 2 4,867,350

Year 3 8,297,525

Year 4 12,635,055

Accounts Receivable

261,000

561,150

906,323

1,303,271

Inventory

Other Operating Total Current Assets Capital Expenditures Depreciation Total Fixed Assets Other Assets Amortization Total Intangible Assets Total Assets

$ $ $ $ $ $ $ $ $

700,000 3,115,250 6,300,000 420,000 5,880,000 8,995,250

$ $ $ $ $ $ $ $ $

700,000 6,128,500 6,300,000 840,000 5,460,000 11,588,500

$ $ $ $ $ $ $ $ $

700,000 9,903,848 6,300,000 1,260,000 5,040,000 14,943,848

$ $ $ $ $ $ $ $ $

700,000 14,638,326 6,300,000 1,680,000 4,620,000 19,258,326

$ $ $ $ $ $ $ $ $

700,000 20,565,831 6,300,000 2,100,000 4,200,000 24,765,831

Accounts Payable Total Current Liabilities

$ $

171,250 171,250

$ $

358,500 358,500

$ $

561,388 561,388

$ $

779,206 779,206

$ $

1,010,894 1,010,894

Long-Term Liabilities

Total Long-Term Liabilities Total Liabilities

$ $

171,250

$ $

358,500

$ $

561,388

$ $

779,206

$ $

1,010,894

$ $ $ $ $ $

7,000,000 1,824,000 8,824,000 8,995,250

$ $ $ $ $ $

7,000,000 4,230,000 11,230,000 11,588,500

$ $ $ $ $ $

7,000,000 7,382,460 14,382,460 14,943,848

$ $ $ $ $ $

7,000,000 11,479,120 18,479,120 19,258,326

$ $ $ $

7,000,000 16,754,937 23,754,937 24,765,831

Shareholders' Equity APIC Capital Stock Other Financing Retained Earnings Total Equity Total Liability & Equity

Year 5 18,106,070

$ $

1,759,762

$ $

$1,010,894

$23,754,937

$779,206

$18,479,120

$19,258,326

$561,388

$14,382,460

$14,943,848

Total Equity

$358,500

$11,230,000

$11,588,500

Total Liabilities

$171,250

$8,824,000

$8,995,250

Total Assets

$24,765,831

BALANCE SHEET OVERVIEW

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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8.7

CASH FLOWS Cash Flow Statement Year 1

Year 2

Year 3

Year 4

Year 5

Operating Activities Net Income Depreciation Amortization Subtotal Accounts Receivables Accounts Payables Increase in Inventory Other Operating

$ $ $ $ $ $ $ $

1,824,000 420,000 2,244,000 (261,000) 171,250 (700,000)

$ 2,406,000 $ 420,000 $ $ 2,826,000 $ (300,150) $ 187,250 $ $ -

$ $ $ $ $ $ $ $

3,152,460 420,000 3,572,460 (345,173) 202,888 -

$ $ $ $ $ $ $ $

4,096,660 420,000 4,516,660 (396,948) 217,818 -

$ $ $ $ $ $ $ $

5,275,818 420,000 5,695,818 (456,491) 231,688 -

Subtotal Operating Cash flow

$ $

(789,750) 1,454,250

$ (112,900) $ 2,713,100

$ $

(142,285) 3,430,175

$ $

(179,130) 4,337,530

$ $

(224,803) 5,471,015

Capital Expenditures Other Assets Spending Cash after Investing

$ $ $

(6,300,000) (6,300,000)

$ $ $

Other Long-Term Debt Dividends Paid Increases in APIC Capital Stock Other Financing Cash after Financing

$ $ $ $ $ $

7,000,000 7,000,000

$ $ $ $ $ $

$ $ $

2,154,250 2,154,250

$ 2,154,250 $ 2,713,100 $ 4,867,350

Beginning Cash Cash Flow Year End Cash

8.8

$ $ $

4,867,350 3,430,175 8,297,525

$ $ $

8,297,525 4,337,530 12,635,055

$ $ $

12,635,055 5,471,015 18,106,070

BENCHMARKS & BREAKEV EN ANALYSIS Benchmarks & Break Even Analysis

Revenues COGS Fixed Costs Variable Costs EBIT BE % Break Even

$ $ $ $ $

Year 1 8,700,000 2,575,000 1,125,000 2,300,000 2,700,000 29% $2,558,824

$ $ $ $ $

Year 2 10,005,000 2,832,500 1,215,000 2,530,000 3,427,500 26% $2,618,433

$ $ $ $ $

Year 3 11,505,750 3,087,425 1,300,050 2,757,700 4,360,575 23% $2,642,473

$ $ $ $ $

Year 4 13,231,613 3,334,419 1,378,053 2,978,316 5,540,825 20% $2,635,379

$ $ $ $ $

Year 5 15,216,354 3,567,828 1,446,956 3,186,798 7,014,772 17% $2,601,997

$ $ $ $ $

Average 11,731,743 3,079,434 1,293,012 2,750,563 4,608,734 22% $2,570,304

BREAK EVEN ANALYSIS Revenues

$20,000,000

Break Even

$15,000,000 $10,000,000 $5,000,000 $YEAR 1

36 |

YEAR 2

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

YEAR 3

YEAR 4

YEAR 5

8.9

RATIOS ANALYSIS Ratio Analysis Year 1

Working Capital Current Ratio

Net Profit Margin Return On Assets (ROA) Operating Income Margin Return On Equity Gross Profit Margin Debts To Assets Capitalization Debt To Equity Debt To Working Capital Cash Turnover Sales To Assets Fixed Asset Turnover

Year 2 Year 3 Liquidity Ratios 2,944,000 $ 5,770,000 $ 9,342,460 $ 18.19 17.09 17.64 Profitability Ratios 20.97% 24.05% 27.40% 20.28% 20.76% 21.10% 31.03% 34.26% 37.90% 20.67% 21.42% 21.92% 70.40% 71.69% 73.17% Financial Leverage Ratios 1.90% 3.09% 3.76% 2.39% 4.87% 7.42% 1.94% 3.19% 3.90% 5.82% 6.21% 6.01% Efficiency Ratios 3.88 3.54 3.22 0.97 0.86 0.77 1.48 1.83 2.28

Year 4

Year 5

13,859,120 $ 18.79

19,554,937 20.34

30.96% 21.27% 41.88% 22.17% 74.80%

34.67% 21.30% 46.10% 22.21% 76.55%

4.05% 10.02% 4.22% 5.62%

4.08% 12.62% 4.26% 5.17%

2.93 0.69 2.86

2.67 0.61 3.62

8.10 SENSITIVITY ANALYSIS Sensitivity Analysis 1

Sensitivity Analysis 2

Revenue COGS Operating Expenses

110% 100% 100%

Revenue COGS Operating Expenses Operating Income

$ $ $ $

Operating Profit %

37.30%

9,570,000 2,575,000 3,425,000 3,570,000

Sensitivity Analysis 3

Revenue COGS Operating Expenses

100% 110% 110%

Revenue COGS Operating Expenses Operating Income

$ $ $ $

Operating Profit %

24.14%

8,700,000 2,832,500 3,767,500 2,100,000

Sensitivity Analysis 4

Revenue COGS Operating Expenses

100% 90% 90%

Revenue COGS Operating Expenses Operating Income

$ $ $ $

Operating Profit %

37.93%

8,700,000 2,317,500 3,082,500 3,300,000

Revenue COGS Operating Expenses

110% 90% 90%

Revenue COGS Operating Expenses Operating Income

$ $ $ $

Operating Profit %

43.57%

9,570,000 2,317,500 3,082,500 4,170,000

BALL FLIGHT ENTERTAINMENT BUSINESS PLAN

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