Summary of Financial Plan
Company Growth
The company expects to become a sizable operation in a short amount of time, achieving $50 million in
revenue in year 2, then maintains 5% revenue growth each year thereafter. We expect the cost of goods sold to average about 50% of total sales, with other sources of income from dealer licensing and lease programs. Operating expenses as a percentage of t
otal sales will be higher in the early years and lower in the out years as the company gains efficiencies in its operations over the long term. In year 2, we expect the company to generate over $20 million in profits before taxes and over $12 million in profits after taxes. For the Balance Sheet estimates, we've explicitly accounted for and recognized the payments due to Mr. Ronald
Brown for the capital value of the invention and patents he holds. Brown will sell these patents and related production rights to the company for slightly more than $49 million, payable over a 5-year period. A recent, independent assessment of the intellectual capital and value associated placed the total amount at slightly over $60 million. The company will start with a net asset position of slightly less than $11 million. The initial investments we are seeking will be the only debt incurred by the company over the next 5 years,
based on our expected success and company management. These funds will be used to build an
organization that produces and sells one of the greatest innovations in the commercial transportation and
trucking industry of the past 100 years. We believe the ability we have to bring the industry into the 21st
century, use today's technology and create products that significantly reduce carbon emissions throughout
the world will be handsomely rewarded. These rewards will be shared with and extended to our original
investors along with the company's eventual shareholders.
