BiB Financial Forecast

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

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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

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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

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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

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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

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BiB Smart Vending Machines

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BiB Smart Vending Machines

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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)

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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

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