BiB, Smart Vending Machines FINANCIAL REPORT
18 February 2010 Pedro Parraguez Ruiz pedro.parraguez@advient.net
***All values are in pounds, in spite of the monetary symbol, due to software limitations***
BiB Smart Vending Machines
Table: Start-up Start-up Requirements Start-up Expenses 1 year office rent + related costs Design, engineering and prototyping costs Intellectual property protection at least in Chile, the US and the UK Technology Acquisitions Initial marketing, legal and other expenses Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements
$12,000 $120,000 $20,000 $50,000 $48,000 $250,000
$50,000 $0 $0 $50,000 $300,000
Academic Version
Page 1
BiB Smart Vending Machines Table: Sales Forecast Sales Forecast Year 1
Year 2
Year 3
Sales Drink Vending Machine Product Solds Food Vending Machine Product Solds 3rd Party Operators Payments IP Licences Franchises Total Sales
$42,239 $48,148 $35,480 $50,000 $0 $175,867
$55,000 $60,000 $70,000 $100,000 $0 $285,000
$120,000 $110,000 $140,000 $200,000 $150,000 $720,000
Direct Cost of Sales Drink Vending Machines Product Cost Food Vending Machine Product Cost 3rd Party Operators service costs IP Licences Franchises Subtotal Direct Cost of Sales
Year 1 $21,119 $16,049 $7,096 $5,000 $0 $49,265
Year 2 $27,500 $20,000 $14,000 $10,000 $0 $71,500
Year 3 $60,000 $36,667 $28,000 $20,000 $16,667 $161,333
Academic Version
Page 2
BiB Smart Vending Machines Table: Personnel Personnel Plan Year 1
Year 2
Year 3
Production coordination Personnel Production coordination Staff Other Subtotal
$20,000 $0 $20,000
$25,000 $0 $25,000
$25,000 $0 $25,000
Sales and Marketing Personnel Sales and Mkt Other Subtotal
$30,000 $0 $30,000
$35,000 $0 $35,000
$35,000 $0 $35,000
General and Administrative Personnel Administrative personal Other Subtotal
$30,000 $0 $30,000
$35,000 $0 $35,000
$35,000 $0 $35,000
R&D Personnel R&D Others Subtotal
$45,000 $0 $45,000
$55,000 $0 $55,000
$55,000 $0 $55,000
Total People
5
6
6
Total Payroll
$125,000
$150,000
$150,000
Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
$250,000 $50,000 $300,000
Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
$37,508 $50,000 $0 $50,000 $87,508
Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Other Current Liabilities (interest-free) Total Liabilities
$0 $0 $0 $0
Capital Planned Investment Chilean Government Subsidies Angel Investors Partners Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital
Total Capital and Liabilities Total Funding
$50,000 $150,000 $100,000 $0 $300,000 ($250,000) $50,000
$50,000 $300,000
Academic Version
Page 3
BiB Smart Vending Machines Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even
$25,626
Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
28% $18,448
Academic Version
Page 4
BiB Smart Vending Machines Table: Profit and Loss Pro Forma Profit and Loss
Cost of Goods Sold
Year 1 $175,867 $49,265 $20,000 $0 -----------$69,265
Year 2 $285,000 $71,500 $25,000 $0 -----------$96,500
Year 3 $720,000 $161,333 $25,000 $0 -----------$186,333
Gross Margin Gross Margin %
$106,602 60.62%
$188,500 66.14%
$533,667 74.12%
$30,000 $50,000 $6,000 ------------
$35,000 $150,000 $6,000 ------------
$35,000 $200,000 $7,000 ------------
$86,000
$191,000
$242,000
48.90%
67.02%
33.61%
$30,000
$35,000
$35,000
$20,000
$25,000
$30,000
$10,000 $6,000 $3,000 $3,600 $15,972 $0 ------------
$12,000 $6,180 $3,090 $3,708 $20,000 $0 ------------
$13,000 $6,365 $3,183 $3,819 $20,000 $0 ------------
$88,572
$104,978
$111,367
50.36%
36.83%
15.47%
$45,000 $1,800 $0 -----------$46,800 26.61% -----------$221,372
$55,000 $1,800 $0 -----------$56,800 19.93% -----------$352,778
$55,000 $1,800 $0 -----------$56,800 7.89% -----------$410,167
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred
($114,770) ($104,770) $1,280 $0
($164,278) ($152,278) $3,071 $0
$123,499 $136,499 $3,351 $30,538
Net Profit Net Profit/Sales
($116,049) -65.99%
($167,349) -58.72%
$89,611 12.45%
Sales Direct Costs of Goods Production coordination Payroll Other
Operating Expenses Sales and Marketing Expenses Sales and Marketing Payroll Buying/Producing the Machines Advertising/Promotion Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses General and Administrative Payroll Sales and Marketing and Other Expenses Depreciation Repairs & Maintanence Utilities Insurance Rent Other Total General and Administrative Expenses General and Administrative % R&D Expenses: R&D Payroll Others
Total R&D Expenses R&D % Total Operating Expenses
Academic Version
Page 5
BiB Smart Vending Machines
Academic Version
Page 6
BiB Smart Vending Machines
Academic Version
Page 7
BiB Smart Vending Machines
Table: Cash Flow Pro Forma Cash Flow Year 1
Year 2
Year 3
Cash from Operations Cash Sales Subtotal Cash from Operations
$175,867 $175,867
$285,000 $285,000
$720,000 $720,000
Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
$0 $0 $0 $24,280 $0 $0 $125,000 $325,147
$0 $0 $0 $4,856 $0 $0 $0 $289,856
$0 $0 $0 $0 $0 $0 $0 $720,000
Year 1
Year 2
Year 3
$281,917 $281,917
$440,349 $440,349
$617,389 $617,389
$0
$0
$0
$0
$0
$0
$0
Cash Received
Expenditures Expenditures from Operations Cash Spending Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent
$0
$0
$0
$0
$0
$0 $60,000 $0 $341,917
$0 $0 $0 $440,349
$0 $0 $0 $617,389
Net Cash Flow Cash Balance
($16,769) $33,231
($150,493) ($117,263)
$102,611 ($14,652)
Academic Version
Page 8
BiB Smart Vending Machines Table: Balance Sheet Pro Forma Balance Sheet Year 1
Year 2
Year 3
Current Assets Cash Other Current Assets Total Current Assets
$33,231 $0 $33,231
($117,263) $0 ($117,263)
($14,652) $0 ($14,652)
Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
$60,000 $10,000 $50,000 $83,231
$60,000 $22,000 $38,000 ($79,263)
$60,000 $35,000 $25,000 $10,348
Year 1
Year 2
Year 3
$0 $0 $0
$0 $0 $0
$0 $0 $0
$24,280 $24,280
$29,136 $29,136
$29,136 $29,136
$425,000 ($250,000) ($116,049) $58,951 $83,231
$425,000 ($366,049) ($167,349) ($108,399) ($79,263)
$425,000 ($533,399) $89,611 ($18,788) $10,348
$58,951
($108,399)
($18,788)
Assets
Liabilities and Capital Current Liabilities Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
Academic Version
Page 9