Tweraser Imports, Inc.

1.0 Executive Summary

Introduction
It is the mission of Tweraser Imports to provide complete import/export brokerage services
including purchase contracts, shipping, warehousing, and delivery scheduling. The company will
concentrate on special and cultural imports from Austria and the European Union to the unique
Bavarian retailers in the United States. Tweraser also plans to provide trade consultation
services to newly started firms created in the EU and desiring a presence in the U.S.A.
The Company
Tweraser Imports will be a limited liability partnership registered in the state of Florida for tax
purposes. Its founder is Mr. Wolfgang Tweraser, who has brought together a highly respected
group of individuals who are well versed in foreign trade processes.
The company has a limited number of private investors and does not plan to go public. The
company has its main offices in Hallandale Beach, Florida. The facilities include conference
rooms and office spaces. The company expects to begin offering its services in January.
The Services
Tweraser offers complete import/export brokerage services plus inventory consulting services.
As mentioned previously, this includes the following:

Supplier/buyer identification
Purchasing, contracting and consulting
Shipping
Warehousing
Delivery

It must be noted that Tweraser does not possess any warehousing facilities and intends to
outsource this particular service. We expect to earn revenues by charging a commission based
on the value of goods moved per order.
The Market
Tweraser will be concentrating on servicing just two types of clients, the importers of retail
goods from Europe, and the wholesalers of products from the European Union. For both market
segments, we have secured exclusive contracts or endorsements putting us in a unique position
to service these niche firms and their needs.
Profitability in these two markets is expected to be excellent, especially in the import section as
Florida draws in over a million tourists each year. We expect profitability in the co-op end to be
much slower in the first five years of operation, but it too will increase steadily.
Financial Considerations
Start-up assets required include expenses and cash needed to support operations until
revenues reach an acceptable level. Most of the company's liabilities will come from outside
private investors and management investment. However we have obtained a commitment from
T.D. Bank, with the principal to be paid off in two years. A long-term loan is sought that will be
paid off in ten years.
The company expects to reach profitability in year 2 and does not anticipate any serious cash
flow problems. We expect that about 3,500 units per month will guarantee a break-even point.

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Chart: Highlights

1.1 Mission
It is the mission of Tweraser Imports to provide complete import/export consultation and
brokerage services including purchase contracts, shipping, warehousing, and delivery. The
company will concentrate on special and cultural imports from Germany and Austria to the
unique goods and products from Western Europe and the E.U. Tweraser also plans to offer
Class A office space to companies looking to import or expand their operations to the United
States and Florida.
It is our long-term goal to become the preferred import company for the unique products of the
E.U. Our goal is to stimulate and facilitate the internationalization of small European exporters.
We offer a comprehensive set of solutions within a program aimed at the sustainability of
participating companies, especially in terms of market share and job creation. Tweraser Imports
has a combined 35 years of experience working in the import/export business. Our philosophy
is in creating a long-term relationship with clients so that the delivery of their products becomes
a seamless experience that promotes loyalty.
1.2 Keys to Success
Tweraser Imports' keys to long-term and profitability are as follows:

Differentiate our services to our niche clients so that they realize that we are better able to
serve their needs than a more generic competitor.
Keeping close contact with clients and establishing a well functioning long-term relationship
with them to generate repeat business and create a top notch reputation.
Establish a comprehensive service experience for our clients. This includes consultation,
product/client search, purchasing contracts, warehousing, shipping, delivery, and follow up
service analysis.

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1.3 Objectives
The three year goals for Tweraser Imports are the following:

Achieve break-even by year 2.

Retain our long-term contracts with local importers from Austria and the E.U., through
excellent customer service.
Become the premier importer of Austrian and European specialty products in Florida.

2.0 Company Summary

Tweraser Imports will be a limited liability partnership registered in the state of Delaware for tax
purposes. Its founder is Mr. Wolfgang Tweraser, a former master distributor with Fisher-Mills.
Mr. Tweraser has brought together a highly respected group of individuals who are well versed
in the various aspects of foreign trade processes.
The company has a limited number of private investors and does not plan to go public. The
company has its main offices in Hallandale Beach, Florida. The facilities we will build include
conference rooms and Class A office spaces. The company expects to begin offering its services
in January.
The company's main clients will be small to mid-sized exporters from the E.U. and start-up
companies throughout Europe. By focusing on small niche market entrepreneurs, we believe we
will be able to provide superior and more efficient service than other import/export firms.
2.1 Company Ownership
The company will have a number of outside private investors who will own 27% of the
company's shares. The rest will be owned by the senior management including Mr. Wolfgang
Tweraser. All other financing will come from loans.
2.2 Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Insurance
Utilities
Rent
Accounting and bookkeeping fees
Expensed equipment
Advertising
Other
Total Start-up Expenses

$2,000
$1,000
$200
$2,000
$2,000
$2,000
$4,000
$8,000
$21,200

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$38,550
$15,000
$10,000
$63,550

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Total Requirements

$84,750

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$21,200
$63,550
$84,750

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$25,000
$38,550
$0
$38,550
$63,550

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$9,000
$12,000
$2,000
$8,000
$31,000

Capital
Planned Investment
Mr. Wolfgang Tweraser

$46,000

Others
Additional Investment Requirement
Total Planned Investment

$7,750
$0
$53,750

Loss at Start-up (Start-up Expenses)

Total Capital

($21,200)
$32,550

Total Capital and Liabilities

$63,550

Total Funding

$84,750

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Chart: Start-up

3.0 Services
Tweraser offers complete import/export brokerage services plus inventory consulting services.
As mentioned previously, this includes the following:

Supplier/buyer identification
Purchasing process contracting and consulting
Shipping setup
Warehousing arrangements
Delivery

It must be noted that Tweraser does not possess any warehousing facilities and intends to
outsource this particular service. This means that we will have virtually no variable costs
associated with unit sales.
Tweraser will be importing such things as steins, figurines, Christmas gifts, germanic foodstuffs,
cuckoo clocks, and nutcrackers from Germany, where Mr. Tweraser has had extensive
experience. In addition Tweraser will be importing Scandinavian wool products such as sweaters
and other gift items.
Our revenue model is based on a commission rate charged to our clients scaled on the dollar
value of goods moved per order, and the consulting and rental fees charged.

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4.0 Market Analysis Summary

Tweraser will be concentrating on servicing just two types of clients, the importers of retail goods
from Europe, and the wholesalers of products from the European Union. For both market
segments, we have secured exclusive contracts or endorsements putting us in a unique
position to service these niche firms and their needs.
Profitability in these two markets is expected to be excellent, especially in the import section as
Florida draws in over a million tourists each year. We expect profitability in the co-op end to
be much slower in the first five years of operation, but it too will increase steadily.
4.1 Market Segmentation
Tweraser intends to be a small import/export company focused on clients serving a niche
market. Having secured a very advantageous contract with several European exporters and
gained the endorsement of the Pompano Beach city council, we plan to focus exclusively on
these market segments. Both have such high potential that we do not see a need to expand our
market reach for the foreseeable future.
Table: Market Analysis

Market Analysis
Potential Customers

Growth

European businesses
US Co-op presence
Total

1%
5%
3.58%

Year 1

Year 2

Year 3

Year 4

Year 5

34
72
106

34
76
110

34
80
114

34
84
118

34
88
122

CAGR
0.00%
5.14%
3.58%

4.2 Service Business Analysis

Imports
It is with our wide experience of the US market, which we help entrepreneurs to get quick and
practical results, with our Strategic Advisory service. This environment supports entrepreneurs
through consulting services, technical advice as well as:

Legal business support in the areas of intellectual property, design and drafting contracts.
Monitoring the registration and licensing processes of the company and products together
with government agencies.
Support in developing the business model, consulting, and arranging expert assistance.
Support in the general management of the companies selected while operating in US
territory.
Support the activities related to marketing, aimed at the inclusion of the company in the US
market.
Assistance in identifying the best tools and strategies for promotion and dissemination of
the companies and their products.
Guidance for identification of the target market and business opportunities.
Support the operation and logistics activities, including customs clearance, storage space in
the US, commodity inspection and verification of documentation needed to process.

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The assistance period is of 24 months duration forecasting, during which will be provided
support and assistance in various aspects, such as the opening of the company in the US and
all related legal requirements, training, administration, finance, marketing, legal, logistics and
physical structure in Florida.
Tweraser looks to empower entrepreneurs to be self-sufficient in their promotional and sales
activities in the US. We support the introduction of new products, processes and services in the
US market, and to allow European exporters to participate in the American market. We will be
facilitating access to facilities and services necessary to build and maintain a successful US
commercial structure.
4.2.1 Assistance Program Highlights

Training, Education and Training

Training, Education and Training entrepreneurs in key managerial aspects such as:

Business management
Marketing of products and services in the US market
Accounting
Marketing
Legal assistance
Fundraising and contracts with lenders
Intellectual property rights and registrations

Infrastructure

Physical space for shared use, such as a meeting room, an area for demonstration
of products, processes and services of listed companies.
Private, Class A office space for entry level companies to offer potential clients a
professional, sophisticated office presence.
Support in identifying and hiring individualized physical space for the installation of
complete offices of each company admitted.

Consulting and Technical advice

Business legal support, intellectual property and design.

Product licensing with government agencies.
Assistance for the preparation and / or updating of the business plan.
Support in the preparation of requests for access to the private investors and
development agencies.

Marketing

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Tweraser Imports, Inc.

Support the promotion and dissemination of the companies as well as their

inclusion in networks and trade shows.
Advice on marketing and sales.

General Administration

Administrative support
Human Resources
Incorporation of companies
Bookkeeping and Accounting
Income tax returns (federal and state)
Finance and Controlling
Business Services

Operation and Logistics

Research and identify potential suppliers.

Distribution RFI (Request for Information) and RFQ (Request for Quotation).
Price negotiation, delivery time and payment terms.
Receiving, checking and inspection of goods and documents.
Storage.
Consolidation and shipping.

5.0 Strategy and Implementation Summary

Our firm's business strategy is to enter into a focused or niche market where it can offer a
higher standard of service to its specialized clients. This will allow us to charge slightly
higher fees to our clients for these differentiated services.
5.1 Sales Strategy
Tweraser intends to develop sales by establishing close contact with potential clients. We will
begin by offering a free consultation in terms of overall cost, service, and delivery. In addition,
we intend to promote our management team's extensive experience both with German gift
manufacturers and artisans, and our knowledge of the produce trade environment to draw in
our target market segments.
5.1.1 Sales Forecast
Sales are based on the various contracts we anticipate acquiring in the two market segments.
Revenues consist of a commission rate charged to our clients based on the dollar amount of
goods moved and include projected average costs plus an undisclosed profit margin. Sales are
expected to vary somewhat month to month, but are only slightly cyclical on the import end.
The exports are expected to be highly cyclical. The company does not have any significant
direct costs of sales.

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Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$127,000
$33,000
$160,000

$145,000
$56,000
$201,000

$189,000
$77,000
$266,000

Year 1
$0
$0
$0

Year 2
$0
$0
$0

Year 3
$0
$0
$0

Sales
Leavenworth imports
PCC farm exports
Total Sales
Direct Cost of Sales
Leavenworth imports
PCC farm exports
Subtotal Direct Cost of Sales

Chart: Sales Monthly

Sales Monthly
$20,000
$18,000
$16,000
$14,000
$12,000

Tweraser imports

$10,000

Rental/consulting fees

$8,000
$6,000
$4,000
$2,000
Mont h 12

Mont h 11

Mont h 10

Mont h 9

Mont h 8

Mont h 7

Mont h 6

Mont h 5

Mont h 4

Mont h 3

Mont h 2

Mont h 1

$0

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Chart: Sales by Year

Sales by Year
$270,000
$240,000
$210,000
$180,000

Tweraser imports

$150,000

Rental/consulting fees

$120,000
$90,000
$60,000
$30,000
$0
Year 1

Year 2

Year 3

5.2 Marketing Strategy

Tweraser intends to leverage its contacts with the Pompano city council and the Puget
Consumers Co-op in order to draw in new clients. The city council works very closely with local
businesses in facilitating all aspects of business management in order to keep tourism flowing.
Because of this, Tweraser has already signed contracts with nine Leavenworth businesses and
we expect to gain a dominant market share within the town.
The PCC will be recommending Tweraser Imports, Inc. to its new farmers as long as we can
keep shipping costs within accepted limits. Therefore we expect to have a large proportion of
member farmers use our services.
6.0 Management Summary
Company officers include our President, Mr. Wolfgang Tweraser, our head of exports Ms. Hannah
Mills, and our head of imports, Mr. Steve Iltheus.
6.1 Personnel
Tweraser's management brings to the company strong capabilities in all aspects of trade
relations, logistics, contracting and selling.
Mr. Wolfgang Tweraser is a former master distributor with Fisher-Mills, one of the nation's
largest import/export firms. During his 10 years with Fisher-Mills he worked exclusively on
trade contracts with Germany. In 1996 Mr. Tweraser accepted a position with Eagle Distributors
as a department head. By introducing American wines into eastern Europe and the former
Soviet republics he demonstrated his flair for opening new markets. Mr. Tweraser has an MBA in
finance and an BS in International Relations.

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Ms. Hannah Mills graduated with honors from the University of Oregon, having earned a
bachelors degree in marketing in 1988. From 1988-1994 Ms. Mills worked for Stanford
Distributors working with canning companies in the midwest region. In 1995 she went to work
for Anderson Consulting in their International Trade division. Four years later, Ms. Mills became
vice president of A.V. Imports.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Mr. Wolfgang Tweraser - President

Mrs. Hannah Mills
Mr. Steve Iltheus
Other
Total People

$36,000
$36,000
$24,000
$0
3

$36,000
$36,000
$36,000
$0
3

$45,000
$45,000
$36,000
$0
3

Total Payroll

$96,000

$108,000

$126,000

7.0 Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have
enough investment to cover these losses, and have an additional credit line available if sales do
not match predictions.
7.1 Important Assumptions
We are assuming approximately 50% sales on credit and average interest rates of 10%. These
are considered to be conservative in case our predictions are erroneous.
Since Tweraser is an import/export broker, the firm has no variable costs associated with it.
Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

1
10.00%
10.00%
30.00%
0

2
10.00%
10.00%
30.00%
0

3
10.00%
10.00%
30.00%
0

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Tweraser Imports, Inc.

7.2 Break-even Analysis

Our break-even analysis is based on the assumptions that our gross margin is 100%. In other
words, we will have insignificant direct cost of sales. Since each market segment is so
completely different, it is difficult to assign an average per unit revenue figure. However, it is
believed that during the first three years, average revenue per unit per month will be about
$4.00, due to the fact that, initially, we may be working with smaller companies projects. We
expect that about 3,500 units per month will guarantee break even.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$14,067

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$14,067

Chart: Break-even Analysis

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Tweraser Imports, Inc.

7.3 Projected Profit and Loss

The following table itemizes our revenues and associated costs. We expect to be paying higher
costs in marketing and advertising than other companies as we attempt to build sales volume.
We expect monthly profits to begin in April 2004 and yearly profits to occur in 2005.
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

$160,000
$0
$0
$0

$201,000
$0
$0
$0

$266,000
$0
$0
$0

Gross Margin
Gross Margin %

$160,000
100.00%

$201,000
100.00%

$266,000
100.00%

$96,000
$8,400
$0
$12,000
$3,600
$3,000
$14,400
$24,200
$7,200

$108,000
$8,000
$0
$12,000
$3,600
$3,000
$16,200
$12,000
$8,000

$126,000
$8,000
$0
$13,000
$4,000
$3,000
$18,900
$10,000
$10,000

$168,800

$170,800

$192,900

($8,800)
($8,800)
$2,035
$0

$30,200
$30,200
$1,820
$8,514

$73,100
$73,100
$1,600
$21,450

($10,835)
-6.77%

$19,866
9.88%

$50,050
18.82%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Travel
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

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Chart: Profit Monthly

Chart: Profit Yearly

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Tweraser Imports, Inc.

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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Tweraser Imports, Inc.

7.4 Projected Cash Flow

The following is our cash flow table and chart. We do not expect to have any short-term cash
flow problems even though we will be operating at a loss for the first year. Our short-term loan
will be repaid in three equal payments in 2004-2006. Our long-term loan will be paid off in ten
years.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$80,000
$62,767
$142,767

$100,500
$96,084
$196,584

$133,000
$125,999
$258,999

$0
$0
$0
$0
$0
$0
$0
$142,767

$0
$0
$0
$0
$0
$0
$0
$196,584

$0
$0
$0
$0
$0
$0
$0
$258,999

Year 1

Year 2

Year 3

$96,000
$70,247
$166,247

$108,000
$73,711
$181,711

$126,000
$88,568
$214,568

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
$1,200
$0
$0
$4,000
$171,447

$0
$2,000
$1,000
$1,200
$0
$0
$10,000
$195,911

$0
$0
$1,000
$1,200
$0
$0
$42,000
$258,768

Net Cash Flow

Cash Balance

($28,680)
$9,869

$673
$10,543

$231
$10,774

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
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
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

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Chart: Cash

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Tweraser Imports, Inc.

7.5 Projected Balance Sheet

The following table is the Project Balance Sheet for Tweraser Imports.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$9,869
$17,233
$15,000
$42,103

$10,543
$21,649
$15,000
$47,192

$10,774
$28,650
$15,000
$54,424

$10,000
$0
$10,000
$52,103

$10,000
$0
$10,000
$57,192

$10,000
$0
$10,000
$64,424

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$6,588
$9,000
$8,000
$23,588

$6,011
$7,000
$7,000
$20,011

$7,393
$7,000
$6,000
$20,393

Long-term Liabilities
Total Liabilities

$10,800
$34,388

$9,600
$29,611

$8,400
$28,793

$53,750
($25,200)
($10,835)
$17,715
$52,103

$53,750
($46,035)
$19,866
$27,581
$57,192

$53,750
($68,169)
$50,050
$35,631
$64,424

$17,715

$27,581

$35,631

Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.6 Business Ratios

We have included industry standard ratios from the trade consultant industry for comparison.
Our NAICS industry class is currently Miscellaneous Nondurable Goods Merchant Wholesale 424990. Our projections indicate a healthy company that will be able to obtain and retain longterm profitability.

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Tweraser Imports, Inc.

Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

25.63%

32.34%

6.98%

Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

33.08%
28.79%
80.81%
19.19%
100.00%

37.85%
26.23%
82.52%
17.48%
100.00%

44.47%
23.28%
84.48%
15.52%
100.00%

26.80%
43.95%
75.76%
24.24%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

45.27%
20.73%
66.00%
34.00%

34.99%
16.79%
51.77%
48.23%

31.65%
13.04%
44.69%
55.31%

31.78%
17.26%
49.04%
50.96%

100.00%
100.00%
106.77%
0.00%
-5.50%

100.00%
100.00%
90.12%
0.00%
15.02%

100.00%
100.00%
81.18%
0.00%
27.48%

100.00%
100.00%
85.31%
1.02%
1.90%

1.78
1.78
66.00%
-61.16%
-20.80%

2.36
2.36
51.77%
102.90%
49.62%

2.67
2.67
44.69%
200.67%
110.98%

1.88
1.48
3.41%
55.78%
7.72%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

-6.77%
-61.16%

9.88%
72.03%

18.82%
140.47%

n.a
n.a

4.64
56
11.36
28
3.07

4.64
71
12.17
31
3.51

4.64
69
12.17
27
4.13

n.a
n.a
n.a
n.a
n.a

1.94
0.69

1.07
0.68

0.81
0.71

n.a
n.a

$18,515
-4.32

$27,181
16.59

$34,031
45.69

n.a
n.a

0.33
45%
1.05
9.03
0.00

0.28
35%
1.28
7.29
0.50

0.24
32%
1.26
7.47
0.84

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 19

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$11,000
$0
$11,000

$13,000
$0
$13,000

$13,000
$0
$13,000

$12,000
$0
$12,000

$10,000
$0
$10,000

$8,000
$2,000
$10,000

$12,000
$4,000
$16,000

$9,000
$4,000
$13,000

$8,000
$5,000
$13,000

$9,000
$5,000
$14,000

$10,000
$6,000
$16,000

$12,000
$7,000
$19,000

Sales
Leavenworth imports
PCC farm exports
Total Sales
Direct Cost of Sales

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Leavenworth imports

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

PCC farm exports

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Page 1

Appendix
Table: Personnel

Personnel Plan
Mr. Wolfgang Tweraser - President
Mrs. Hannah Mills
Mr. Steve Iltheus
Other
Total People
Total Payroll

0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$11,000

$13,000

$13,000

$12,000

$10,000

$10,000

$16,000

$13,000

$13,000

$14,000

$16,000

$19,000

Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Costs of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales

Gross Margin

$11,000

$13,000

$13,000

$12,000

$10,000

$10,000

$16,000

$13,000

$13,000

$14,000

$16,000

$19,000

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Payroll

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Sales and Marketing and Other

Expenses
Depreciation

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$500

$500

$500

$300

$300

$300

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rent

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Utilities

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

Insurance

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$1,200
$1,200
$600

$1,200
$3,000
$600

$1,200
$1,000
$600

$1,200
$2,000
$600

$1,200
$2,000
$600

$1,200
$3,000
$600

$1,200
$2,000
$600

$1,200
$1,000
$600

$1,200
$2,000
$600

$1,200
$3,000
$600

$1,200
$1,000
$600

$1,200
$3,000
$600

Total Operating Expenses

$13,550

$15,350

$13,350

$14,350

$14,350

$15,350

$13,850

$12,850

$13,850

$14,650

$12,650

$14,650

Profit Before Interest and Taxes

($2,550)

($2,350)

($350)

($2,350)

($4,350)

($5,350)

$2,150

$150

($850)

($650)

$3,350

$4,350

EBITDA

($2,550)

($2,350)

($350)

($2,350)

($4,350)

($5,350)

$2,150

$150

($850)

($650)

$3,350

$4,350

$174

$173

$173

$172

$171

$170

$169

$168

$168

$167

$166

$165

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Gross Margin %

Expenses

Payroll Taxes
Travel
Other

Interest Expense
Taxes Incurred

15%
15%

Net Profit

($2,724)

($2,523)

($523)

($2,522)

($4,521)

($5,520)

$1,981

($18)

($1,018)

($817)

$3,184

$4,185

Net Profit/Sales

-24.77%

-19.41%

-4.02%

-21.01%

-45.21%

-55.20%

12.38%

-0.14%

-7.83%

-5.83%

19.90%

22.03%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$5,500

$6,500

$6,500

$6,000

$5,000

$5,000

$8,000

$6,500

$6,500

$7,000

$8,000

$9,500

$0

$183

$5,533

$6,500

$6,483

$5,967

$5,000

$5,100

$7,950

$6,500

$6,517

$7,033

$5,500

$6,683

$12,033

$12,500

$11,483

$10,967

$13,000

$11,600

$14,450

$13,500

$14,517

$16,533

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$5,500

$6,683

$12,033

$12,500

$11,483

$10,967

$13,000

$11,600

$14,450

$13,500

$14,517

$16,533

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Spending

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Bill Payments

$2,191

$5,784

$7,457

$5,556

$6,522

$6,554

$7,470

$5,986

$5,052

$6,044

$6,750

$4,882

$10,191

$13,784

$15,457

$13,556

$14,522

$14,554

$15,470

$13,986

$13,052

$14,044

$14,750

$12,882

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$4,000

$0

$0

$0

$0

Subtotal Cash Spent

$10,291

$13,884

$15,557

$13,656

$14,622

$14,654

$15,570

$18,086

$13,152

$14,144

$14,850

$12,982

Net Cash Flow

($4,791)

($7,201)

($3,523)

($1,156)

($3,138)

($3,687)

($2,570)

($6,486)

$1,298

($644)

($333)

$3,551

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing

0.00%

Expenditures from Operations

Subtotal Spent on Operations

Additional Cash Spent

Long-term Liabilities Principal Repayment

Page 5

Appendix
Cash Balance

$33,759

$26,558

$23,035

$21,879

$18,741

$15,053

$12,484

$5,998

$7,296

$6,652

$6,319

$9,869

Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$38,550
$0
$15,000
$53,550

$33,759
$5,500
$15,000
$54,259

$26,558
$11,817
$15,000
$53,375

$23,035
$12,783
$15,000
$50,818

$21,879
$12,283
$15,000
$49,163

$18,741
$10,800
$15,000
$44,541

$15,053
$9,833
$15,000
$39,887

$12,484
$12,833
$15,000
$40,317

$5,998
$14,233
$15,000
$35,231

$7,296
$12,783
$15,000
$35,079

$6,652
$13,283
$15,000
$34,935

$6,319
$14,767
$15,000
$36,085

$9,869
$17,233
$15,000
$42,103

$10,000
$0
$10,000
$63,550

$10,000
$0
$10,000
$64,259

$10,000
$0
$10,000
$63,375

$10,000
$0
$10,000
$60,818

$10,000
$0
$10,000
$59,163

$10,000
$0
$10,000
$54,541

$10,000
$0
$10,000
$49,887

$10,000
$0
$10,000
$50,317

$10,000
$0
$10,000
$45,231

$10,000
$0
$10,000
$45,079

$10,000
$0
$10,000
$44,935

$10,000
$0
$10,000
$46,085

$10,000
$0
$10,000
$52,103

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$2,000
$9,000
$8,000
$19,000

$5,533
$9,000
$8,000
$22,533

$7,273
$9,000
$8,000
$24,273

$5,338
$9,000
$8,000
$22,338

$6,304
$9,000
$8,000
$23,304

$6,303
$9,000
$8,000
$23,303

$7,269
$9,000
$8,000
$24,269

$5,819
$9,000
$8,000
$22,819

$4,851
$9,000
$8,000
$21,851

$5,817
$9,000
$8,000
$22,817

$6,589
$9,000
$8,000
$23,589

$4,655
$9,000
$8,000
$21,655

$6,588
$9,000
$8,000
$23,588

Long-term Liabilities
Total Liabilities

$12,000
$31,000

$11,900
$34,433

$11,800
$36,073

$11,700
$34,038

$11,600
$34,904

$11,500
$34,803

$11,400
$35,669

$11,300
$34,119

$11,200
$33,051

$11,100
$33,917

$11,000
$34,589

$10,900
$32,555

$10,800
$34,388

$53,750
($21,200)
$0
$32,550
$63,550

$53,750
($21,200)
($2,724)
$29,826
$64,259

$53,750
($21,200)
($5,248)
$27,303
$63,375

$53,750
($21,200)
($5,770)
$26,780
$60,818

$53,750
($21,200)
($8,292)
$24,258
$59,163

$53,750
($21,200)
($12,813)
$19,738
$54,541

$53,750
($21,200)
($18,333)
$14,218
$49,887

$53,750
($21,200)
($16,352)
$16,198
$50,317

$53,750
($25,200)
($16,370)
$12,180
$45,231

$53,750
($25,200)
($17,388)
$11,163
$45,079

$53,750
($25,200)
($18,204)
$10,346
$44,935

$53,750
($25,200)
($15,020)
$13,530
$46,085

$53,750
($25,200)
($10,835)
$17,715
$52,103

$32,550

$29,826

$27,303

$26,780

$24,258

$19,737

$14,217

$16,198

$12,180

$11,162

$10,346

$13,530

$17,715

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 6