The Ball & Chamber uses cloud based technology to provide real time athletic performance

data on musculoskeletal strength, power and speed. It provides world-wide gaming

instrumentation and holographic entertainment imaging using gravity in an integrated human
performance system. It is a modular, scalable unit. P. Gilliam

The Leviathan BALL

&

The Sisyphean CHAMBER

Contact Information
1st Capital Finance, Inc.
funding@theballandchamber.com
855-562-6178, extension 1
www.theballandchamber.com
110 Habersham Drive
Fayetteville, GA 30213, USA

U.S. Patent No. 7,803,092B

Executive Summary .....................................................................................................................................................1
Financial Highlights ....................................................................................................................................................2
Management ................................................................................................................................................................2
Products & Services ....................................................................................................................................................3
Competitors .................................................................................................................................................................3
Company Overview ......................................................................................................................................................4
Products and Services ................................................................................................................................................5
Strategy and Implementation ......................................................................................................................................6
Marketing Plan..............................................................................................................................................................7
Sales Projections .........................................................................................................................................................8
Personnel ......................................................................................................................................................................9
Projections: Monthly & Annual Financials Three (3) Years ........................................................................... 10-27

Executive Summary
This proposal offers a comprehensive business plan to manufacture and market patented devices primarily in the sports, fitness and health markets with secondary
applications for use in education, defense and entertainment niche markets. The design of these devices has been captured in one patent, namely United States
Patent No. 7,803,092B by Mr. Phillip Gilliam. The design has being reviewed by Edith Cowan University in Australia who leading researcher is prepared to validate its
efficacy. The manufacturer(s) and potential end-users within a cross section of industries have been identified. Customers have been captured in the form of Letters
of Interest from a representative mix of potential customers. The Ball and Chamber and associated merchandise are projected to have $ 25 million in sales by year
three. The broad spectrum of enhancements assignable with the patent rights can generate a 58% gross margin in year three with a 14% net margin.
We are seeking a funding to build the prototypes for two models. As this is Mr. Gilliams second patent, The Ball & Chamber can be incorporated at a separate entity
and capital can be considered seed funds. Alternatively, the Ball & Chamber can be introduced as the second product line of Antibody, Inc., maker of the
BodyGuard compression garments which are sold to a niche market of 80% of NFL teams. Incorporating the Ball and Chamber would result in a $ 2.5M offering
with $ 500K in Seed or Angel funding. Investor exit would be from existing Letters of Interest, including the US Navy and NFL Teams. Additional customers are
anticipated from researchers and universities as the roll-out plan and usage include peer reviewed and published scientific works outlining The Ball and Chambers
superiority as a human performance improvement system. If the Ball and Chamber is presented as a growth funding opportunity for Antibody, Inc. the offering price
would consist of $ 10M+ depending on the marketing strategy.
The Ball and Chamber consists of two models of custom designed integrated exercise systems with an inclined floor and The Leviathan Ball using
gravity as its inexhaustible energy source. Renderings reflect the promotion of fitness development through upper and lower body strength and stamina training.
Additional benefits include the improvement of balance, core strength and user center of gravity. Cardiovascular endurance is also improved. Technological
enhancements allow the devices to transmit instantaneous data on participants globally. The Ball and Chamber prototype will validate its research potential and
solidify its application as a gaming instrument. Even on a flat surface, with an adjustable maximum weight of over three hundred pounds, the Leviathan Ball is
immediately serviceable for competitive sports usage and team training. The base target audience is universal. The market desire for products that improve human
performance is inexhaustible.
The critical milestones include:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Receiving sufficient seed capital to manufacture a prototype.

Successfully delivering a prototype to researchers for validation of efficacy
The delivery and roll-out of the prototype as a FIBO 2013 entrant with high probability of winning.
Test marketing basic research to determine multi-channels and product acceptance.
Test marketing of media, public relations, pricing and product endorsement plans.
Recouping production and start-up costs while limited losses using cost savings strategy
Reaching worldwide retail distributions by year two with published research findings by Dr. Newton.
Timely exit of each market prior to new entrants with the anticipated degrade of intellectual property rights.
Attaining profitable and sustainable operations by year three with an insulated and diverse stream of revenue for investors through multiple product lines
based on normal and luxury good consumptions across several non-competing industries.

The individual responsible for the product, Phillip Gilliam, is the majority shareholder of Antibody, Inc., a manufacturer of custom compression sportswear for exercise
physiology and injury prevention successfully marketed to over eighty percent (80%) of National Football League (NFL) teams. Over a decade of strong relationships
with Coaches and Head Athletic Trainers gives Mr. Gilliam the credibility and reach necessary to change the world of sports, fitness and education with his vision of
The Ball & Chamber. In addition, due to the mass appeal of upper and lower body strength and conditioning, Mr. Gilliams network includes government, collegiate
and pharmacological industries.
This proposal offers the opportunity to form an equity partnership with Phillip Gilliam. The chosen investor(s) will be responsible for providing SEED through an IPO or
APO in exchange for a multi-million dollar, diverse and insulated, cross channel, multi-industry revenue stream.

Financial Highlights

Management
After eighteen years in the technology and engineering field, Phillip Gilliam founded Antibody, Inc. which has been operating for fifteen years in the Maryland/DC area
and later in Fayetteville, Georgia. Mr. Gilliam currently owns 85% of the common stock of the company with 15% sold to Mr. Sherman, a Partner in the Law Firm
of Dinsmore & Shohl of Ohio and Washington , DC. Antibody Inc. introduced a patented device, marketed as The Bodyguard which accommodates
musculoskeletal injuries to the shoulder, chest, bicep, triceps, upper back, groin, hamstring, quadriceps, hip, lower back, pelvis, knee, shin, ankle, elbow and wrist.
As a "one-man shop", Phillip Gilliams customized Bodyguard Compression garments, U.S. Patent No. 5,957,878, are designed based on the theory of Stored Elastic
Energy Transfer (SEET) which is the transfer of elastic energy from rubberized materials directly to the surface of the human body . As
SEET promoted the healing of human musculature and connective tissue, the Antibody, Inc. products have a grass roots, fraternal and loyal market of highly visible
and well known supporters in the National Football League (NFL) industry, the NBA, the Defense, Health Care industries, high net worth individuals and most
importantly the common man.
It is Mr. Gilliams intention to enter into an equity sharing arrangement, whereby his existing entity, Antibody, Inc. is leveraged to introduce The BALL&CHAMBER to
the market for a majority share of the company. Alternatively, Mr. Gilliam can remain in a Consultant or Management capacity within a new start-up organization,
specifically created to introduce the BALL&CHAMBER to its various markets.
In the first three years, the patent holder will retain Consultants familiar with The Ball and Chamber vision that can execute the business plan and implement the high
standards of quality and design. One Consultant will oversee manufacturing of the proprietary processes and methods to create The Ball. The other will focus on
timing of enhancements and maintain competitive advantage. Final exit strategies include IPO, patent assignment and/or ongoing royalties after the three year mark.

Products and Services

The first product consists of a one hundred percent (100%) portable, modular exercise room, currently known as The Sisyphean Chamber (The CHAMBER) and an
object, currently known as The Leviathan Ball (The BALL). The chamber is a ten (10) foot by twenty (20) foot fiberglass or other material made enclosures or
barriers with a horizontal base and inclined floor.
The inclined floor is padded to absorb impact and rubberized to increase the coefficient of friction relative to the shoes of the athlete. The angle of the incline or the
slope of the floor in the initial offering is fourteen (14) degrees relative to the base of The Chamber.
Immediate or future modifications or suggested safety guidelines include:

Branded rubberized , tactile athletic shoes is suggested to increase the coefficient of friction, make use of all lower body strength, and create a future
expansion into retailing a branded shoe line.

Branded tactile gloves will increase the coefficient of friction between the hands of the user.

The second product consists of The Sisyphean CHAMBER as a room on a semi-permanent foundation. This model of the chamber may or may not consist
of treadmill and/or hydraulic / movable floor technology to provide varying angles up to thirty (30) degrees:

Increased variability for the degree of human performance within the chamber

Includes entertainment, gaming, holographic and monitoring instrumentation

Allows dual use of the CHAMBER as a functioning office, banquet or meeting space

Provides a potential for secondary income source for end-users as a rental space

May include custom storage spaces for gaming objects and The BALL.

Allows an income stream for end users as fundraising source

Competitors
Due to its reach across industry, there are wide varieties of competitive forces. However, as The BALL&CHAMBER has never been introduced to the varying arena, it
maintains an intense competitive advantage against market entrants in the form of patented technology, trade secrets and proprietary processes.
Domestic competitors include the realm of fitness and sports related equipment. Large manufacturing and sporting goods companies similar to Johnson Outdoors,
Inc. Sports and Dicks Sporting Goods, Inc. have established brand names with efficient supply chains. They have seasoned distributions channels and partnerships.
Product costs for these entities are low due to economy of scale. Home gym equipment ranges in quality, grade and price range from $2,000 to $ 20,000+.

Enhancements to The Ball & Chamber have competition will occur in the following areas:
Movable Floor: The Athletic Republic of Albany, markets a hockey treadmill with a hydraulic floor.
Simulation of Team Sports: Professional and Amateur athletes typically use special centers such as the Athletic Republic football training facility franchises. Other
team training tools include the Fisher, seven (7) or five (5) man bull blocking sled system.
Ball Training: Medicine balls of various sizes, quality and price ranges.
Military, Fire and Police: Jacobs Ladder Exercise machine as a self-paced and self-powered machine in fitness gyms.
Office Space: Portable sheds, Greenhouses and Storage Rooms double as additional entertainment areas
Foreign competition arises mainly in the arena of manufacturing pressures caused by the lack of intellectual property right enforcements. Smaller, new entrants face
non-branded imitations that dilute market share.
According the 2011 Sporting Goods Manufacturers Association, State of the Industry Report:

"Globalization for manufacturing and sourcing has been standard for the industry for many years, but globalization is expanding to include
international sales and retail efforts. Now, the first major Chinese sports brand, Li Ning, is making inroads into the American market. Li Ning
invested $10 million in its U.S. business in 2010 with a goal of U.S. sales of $50 million. Li Ning opened a Portland, Oregon showroom in
2009 and signed endorsement deals with NBA players Shaquille O'Neal and Evan Turner"
The basic strategy of The BALL & CHAMBER team to combat new market entrants is to have a well-defined five year plan to roll out each new product line with such
timing to have left the market by the time new entrants have surpassed entry barriers.
This product provides a complete change in the landscape of sports. In addition, these units will change several corresponding industries by being used as an
exercise device for every branch of U.S. military. Division one (1) athletic programs can use the products as a recruiting tool. Public and private schools can purchase
the portable chamber or add the permanent device which can double as a fund raising tool and become eligible for funding to combat issues such as childhood
obesity. Exercise boot camps and gym franchises can easily transform existing free space into an area for smaller Ball & Chamber workouts.
Dr. Newton, the Lead Research scientist validating efficacy, states that new equipment designs are constantly being launched to tap the lucrative and competitive
commercial environment. The Ball and Chamber is a game changer since the methodology, manufacturing process, system and enhancements have never been
introduced. The technology is disruptive in its practical application combined with the future state of exercise physiology.

Strategy and Implementation

The BALL & CHAMBER is a newly patented device. It has no market comparison. Its general application in the areas of fitness, health and research aligns well
to global, multi-industry, multi-tiered, multi-channel market. Due to its scalable, modular nature, and the myriad of enhancements available, The Ball & Chamber can
be marketed as both a luxury and normal good, depending on the economic trends.
Pricing for the portable unit is $ 17,175.00 while the permanent unit is priced at $ 49,999. These prices reflect high end exercise equipment for the portable version.
The permanent version includes options for hydraulic and movable flooring, which if lowered serves as an office, banquet or entertainment space. Therefore it is
priced competitively with building a similar room.
The cost of goods sold is 60%' initially due to the newness of the manufacturing processes involved. Terms will be 5% 10 Days, net 30. The average collection time is
anticipated at 45 days. The decrease in costs over time will increase the profit margins to allow for factoring of receivables in the future.
Financing for the project will be from a Venture Capital firm recognizing the capability of the product to produce a diversified, insulated revenue stream for investors
across several industries:

Seed Money: Prototype, Research & Management Team(s) Compensation, Manufacturing Set-Up
Start-up: Enhancements and Marketing Domestic Tiers and Channels
First Round: Early Sales
Second-Round: Working Capital
Mezzanine: Expansion Foreign Tiers and Channels
Exit Strategy: IPO or Retained Earnings

Distribution will be maintained by headquarters with a central US manufacturing facility. Initially, The BALL&CHAMBER will be manufactured and assembled in
separate warehouses. In Year 3, make versus buy analysis will revisit the pros and cons of consolidation or leveraging industry accepted channels:

Product Summary
FY2013

FY2014

FY2015

142

826

1,239

75

85

The Chamber (Portable)

$17,175

$17,175

$17,175

The Chamber (Permanent)

$49,999

$49,999

$49,999

$2,438,850

$14,186,550

$21,279,825

$349,993

$3,749,925

$4,249,915

$2,788,843

$17,936,475

$25,529,740

The Chamber (Portable)

$11,450

$9,160

$7,328

The Chamber (Permanent)

$29,700

$23,760

$19,008

$1,625,900

$7,566,160

$9,079,392

$207,900

$1,782,000

$1,615,680

$1,833,800

$9,348,160

$10,695,072

$955,043

$8,588,315

$14,834,668

34%

48%

58%

Unit Sales
The Chamber (Portable)
The Chamber (Permanent)
Price Per Unit

Sales
The Chamber (Portable)
The Chamber (Permanent)
Total Sales
Direct Cost Per Unit

Direct Cost
The Chamber (Portable)
The Chamber (Permanent)
Total Direct Cost
Gross Margin
Gross Margin %

Sales Forecast

The sales forecast reflects adjustments in units sold according to the key milestones of the business. The initial sales are from indirect and grass roots marketing to
the existing Antibody, Inc. and Investor network. The business will grow when the relevant market is tapped and a defined message tailored to that audience is
created. In addition, entry into various health and fitness trade shows and exhibits will create spikes of revenue increase. Market share will be derived from the
following industries based on the April 2012 GDP:

Healthcare
Medical Laboratories & Research
Consumer Goods
Sporting Goods

10

56995.23B
96.76B (sub)
171423.00B
4.08B (sub)

The markup over cost ranges from 50 to 100% with a close watch on the economy and market entrants to dynamically allow the Management Team and Board to
capitalize on trends driving sales growth which represent the best margins for the business.
The target audience will be individuals and institutions with an age range of 25 to 64, with a 50-100% markup over cost. Levels of customization will be available in
increments, including higher end entertaining and gaming technology, including holographic imaging. Other channels will be used, such as the over six hundred
research universities, some of which, according to the Center for Measuring University performance, have over $ 40 million dollars annually to spend on research
budgets. The capability of the enhanced BALL & CHAMBER for monitoring human and animal subjects lead to the spike in sales anticipated to occur after the
research study, by Edith Cowan University, is published and refereed.

Figure provided by Sporting Goods Manufacturing Association, 2011

Another spike in sales is predicted after each industry trade show, with the projected 2013 FIBO exhibit as the unveiling event. The event will be held April 2013 in
Germany, central to where the prototype BALL & CHAMBER will be located in Australia for research. At FIBO, products and concepts receive awards and receive free
and broad publicity in Europe. This milestone will begin foreign market entry since the event features 58.100 visitors from almost 90 countries as of 2011. This
concentrated group of fitness enthusiasts will catapult The BALL & CHAMBERS success.

Personnel Plan
11

FY2012-2013

FY2013-2014

FY2014-2015

$150,000

$190,000

$262,500

COO (Consultant)

$55,000

$95,500

$148,750

SVP (Consultant)

$50,000

$60,000

$70,000

$255,000

$345,500

$481,250

Phillip Gilliam &/Or Antibody, Inc.

(Consultant)

Total

Performance of the duties will be divided to insure no key person dependency and insure plan continuity:

Phillip Gilliam and/or Antibody, Inc. will contract to oversee the roll-out of the product in all areas for Years 1-3. In Year 4, Mr. Gilliam will have a CEO
replacement as identified by Board.

One COO Consultant will be contracted to direct report to Mr. Gilliam for Years 1-3.

One VP Consultant will be contracted to represent the interest of Investors and direct report to Board.

A Board and additional Executive Team will be assembled based upon investor input.

Additional Contractors with subject matter expertise from the applicable industries targeted for entry will be retained according to identified direct marketing
strategy.

Additional Salaried Personnel will be hired with a minimum of:

1.
2.
3.
4.
5.
6.
7.
8.

12

One front desk reception to greet customers

A/R - A/P to receive payments for services/products
Investor Relations Team
Customer Service Team
Manufacturing and Supply Chain Relationship Team
Marketing Team
Legal / Compliance / Oversight Team
Others As Identified

The Financial Projections for Year 1 - 3 reflect Mr. Gilliam and two direct reports. These are all contracted positions with the assumptions that in Year 4, there will be
an IPO with a buy-out of those roles.
Assumption: Any projections after Year 3 should show new weighting with a greater percentage of gross revenue assigned to the wage earner line item as new hires
are on boarded during succession planning.
These new individuals added to payroll will remove the key person dependency upon the start-up team. They should be identified and recruited by Year 2 at a
minimum to allow for a complete year of transition.

Budget
FY2013

FY2014

FY2015

$385,000

$553,500

$803,850

Employee Related Expenses

$0

$0

$0

Marketing & Promotion

$0

$358,726

$510,592

Rent & Utilities

$0

$1,076,188

$1,531,785

Taxes

$0

$358,726

$510,592

Office Supplies

$0

$179,368

$255,296

Legal / Insurance / Benefits

$0

$2,690,468

$3,829,464

Salary / Wage Earners

$0

$1,614,280

$2,297,679

Amortization & Depreciation

$0

$358,726

$510,592

Start-Up Costs

$225,000

$0

$0

Research: Edith Cowan

$150,000

$0

$0

$760,000

$7,189,982

$10,249,850

Expenses
Salary

Total Expenses

Total start-up requirements include research expenses, prototyping, and manufacturing set up. Other expenses include insurance, regulatory research, legal costs,
logo design, stationery and related expenses. The start-up costs are to be financed by seed funding / equity investment, long-term loan financing with an IPO or
Retained Earnings as the loan exit strategy.

13

Profit and Loss

FY2012-2013

FY2013-2014

FY2014-2015

Revenue

$2,788,843

$17,936,475

$25,529,740

Direct Cost

$1,833,800

$9,348,160

$10,695,072

$955,043

$8,588,315

$14,834,668

34%

48%

58%

$385,000

$553,500

$803,850

Employee Related Expenses

$0

$0

$0

Marketing & Promotion

$0

$358,726

$510,592

Rent & Utilities

$0

$1,076,188

$1,531,785

Taxes

$0

$358,726

$510,592

Office Supplies

$0

$179,368

$255,296

Legal / Insurance / Benefits

$0

$2,690,468

$3,829,464

Salary / Wage Earners

$0

$1,614,280

$2,297,679

Amortization & Depreciation

$0

$358,726

$510,592

Start-Up Costs

$225,000

$0

$0

Research: Edith Cowan

$150,000

$0

$0

Total Expenses

$760,000

$7,189,982

$10,249,850

Operating Income

$195,043

$1,398,333

$4,584,818

$39,009

$279,667

$916,964

$156,034

$1,118,666

$3,667,854

6%

6%

14%

Gross Margin
Gross Margin %
Expenses
Salary **include Personnel Plan +
Tolerance for Investor Identified Core
Team Members (e.g. Manuf., Mrktng)

Income Taxes
Net Profit
Net Profit / Sales

14

Gross Margin by Year

15

Net Profit (or Loss) by Year

16

17

Financial Overview

18

19

Budget
FY2013

Sep '12

Oct '12

Nov '12

Dec '12

Jan '13

Feb '13

Mar '13

Apr '13

May '13

Jun '13

Jul '13

Aug '13

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,084

$32,084

$32,084

$32,084

Start-Up
Costs

$225,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Research:
Edith Cowan

$150,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Expenses

$407,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,084

$32,084

$32,084

$32,084

Sep '13

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Salary

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

Marketing &
Promotion

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Rent & Utilities

$88,074

$88,074

$89,104

$89,104

$89,104

$89,104

$89,104

$89,104

$89,104

$92,104

$92,104

$92,104

Taxes

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Office Supplies

$14,679

$14,679

$14,851

$14,851

$14,851

$14,851

$14,851

$14,851

$14,851

$15,351

$15,351

$15,351

Legal /
Insurance /
Benefits

$220,184

$220,184

$222,760

$222,760

$222,760

$222,760

$222,760

$222,760

$222,760

$230,260

$230,260

$230,260

Salary / Wage
Earners

$132,110

$132,110

$133,656

$133,656

$133,656

$133,656

$133,656

$133,656

$133,656

$138,156

$138,156

$138,156

Amortization &
Depreciation

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Start-Up Costs

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Research:
Edith Cowan

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$589,246

$589,246

$595,599

$595,599

$595,599

$595,599

$595,599

$595,599

$595,599

$614,099

$614,099

$614,099

Expenses
Salary

FY2014
Expenses

Total Expenses

20

FY2015

Sep '14

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

$66,987

$66,987

$66,987

$66,987

$66,987

$66,987

$66,988

$66,988

$66,988

$66,988

$66,988

$66,988

Employee
Related
Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Marketing
&
Promotion

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

Rent &
Utilities

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$128,172

$128,172

$131,172

Taxes

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

Office
Supplies

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,362

$21,362

$21,862

Legal /
Insurance /
Benefits

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$320,429

$320,429

$327,929

Salary /
Wage
Earners

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$192,257

$192,257

$196,757

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

Start-Up
Costs

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Research:
Edith
Cowan

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$851,023

$851,023

$851,023

$851,023

$851,023

$851,023

$851,024

$851,024

$851,024

$857,380

$857,380

$875,880

Expenses
Salary

Amortizatio
n&
Depreciatio
n

Total
Expenses

21

FY2013

FY2014

FY2015

$385,000

$553,500

$803,850

Employee Related Expenses

$0

$0

$0

Marketing & Promotion

$0

$358,726

$510,592

Rent & Utilities

$0

$1,076,188

$1,531,785

Taxes

$0

$358,726

$510,592

Office Supplies

$0

$179,368

$255,296

Legal / Insurance / Benefits

$0

$2,690,468

$3,829,464

Salary / Wage Earners

$0

$1,614,280

$2,297,679

Amortization & Depreciation

$0

$358,726

$510,592

Start-Up Costs

$225,000

$0

$0

Research: Edith Cowan

$150,000

$0

$0

$760,000

$7,189,982

$10,249,850

Expenses
Salary

Total Expenses

22

FY2013

Sep '12

Oct '12

Nov '12

Dec '12

Jan '13

Feb '13

Mar '13

Apr '13

May '13

Jun '13

Jul '13

Aug '13

Revenue

$0

$49,999

$17,175

$187,399

$171,750

$256,099

$223,275

$290,449

$309,150

$393,499

$377,850

$512,198

Direct Cost

$0

$29,700

$11,450

$121,300

$114,500

$167,100

$148,850

$190,000

$206,100

$258,700

$251,900

$334,200

Gross Margin

$0

$20,299

$5,725

$66,099

$57,250

$88,999

$74,425

$100,449

$103,050

$134,799

$125,950

$177,998

0%

41%

33%

35%

33%

35%

33%

35%

33%

34%

33%

35%

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,084

$32,084

$32,084

$32,084

Start-Up
Costs

$225,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Research:
Edith
Cowan

$150,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total
Expenses

$407,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,083

$32,084

$32,084

$32,084

$32,084

Operating
Income

($407,083)

($11,784)

($26,358)

$34,016

$25,167

$56,916

$42,342

$68,366

$70,966

$102,715

$93,866

$145,914

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$9,826

$29,183

($407,083)

($11,784)

($26,358)

$34,016

$25,167

$56,916

$42,342

$68,366

$70,966

$102,715

$84,040

$116,731

0%

(24%)

(153%)

18%

15%

22%

19%

24%

23%

26%

22%

23%

Gross
Margin %
Expenses
Salary

Income
Taxes
Net Profit
Net Profit /
Sales

23

FY2014

Sep '13

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

$1,467,894

$1,467,894

$1,485,069

$1,485,069

$1,485,069

$1,485,069

$1,485,069

$1,485,069

$1,485,069

$1,535,068

$1,535,068

$1,535,068

Direct Cost

$765,440

$765,440

$774,600

$774,600

$774,600

$774,600

$774,600

$774,600

$774,600

$798,360

$798,360

$798,360

Gross Margin

$702,454

$702,454

$710,469

$710,469

$710,469

$710,469

$710,469

$710,469

$710,469

$736,708

$736,708

$736,708

48%

48%

48%

48%

48%

48%

48%

48%

48%

48%

48%

48%

Salary

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

$46,125

Marketing
&
Promotion

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Rent &
Utilities

$88,074

$88,074

$89,104

$89,104

$89,104

$89,104

$89,104

$89,104

$89,104

$92,104

$92,104

$92,104

Taxes

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Office
Supplies

$14,679

$14,679

$14,851

$14,851

$14,851

$14,851

$14,851

$14,851

$14,851

$15,351

$15,351

$15,351

Legal /
Insurance /
Benefits

$220,184

$220,184

$222,760

$222,760

$222,760

$222,760

$222,760

$222,760

$222,760

$230,260

$230,260

$230,260

Salary /
Wage
Earners

$132,110

$132,110

$133,656

$133,656

$133,656

$133,656

$133,656

$133,656

$133,656

$138,156

$138,156

$138,156

Amort. &
Dep.

$29,358

$29,358

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$29,701

$30,701

$30,701

$30,701

Total
Expenses

$589,246

$589,246

$595,599

$595,599

$595,599

$595,599

$595,599

$595,599

$595,599

$614,099

$614,099

$614,099

Operating
Income

$113,208

$113,208

$114,870

$114,870

$114,870

$114,870

$114,870

$114,870

$114,870

$122,609

$122,609

$122,609

Income
Taxes

$22,642

$22,642

$22,974

$22,974

$22,974

$22,974

$22,974

$22,974

$22,974

$24,521

$24,522

$24,522

Net Profit

$90,566

$90,566

$91,896

$91,896

$91,896

$91,896

$91,896

$91,896

$91,896

$98,088

$98,087

$98,087

Revenue

Gross
Margin %
Expenses

24

Net Profit /
Sales

FY2015

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

Sep '14

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,119,018

$2,136,193

$2,136,193

$2,186,192

$887,840

$887,840

$887,840

$887,840

$887,840

$887,840

$887,840

$887,840

$887,840

$895,168

$895,168

$914,176

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,231,178

$1,241,025

$1,241,025

$1,272,016

58%

58%

58%

58%

58%

58%

58%

58%

58%

58%

58%

58%

Salary

$66,987

$66,987

$66,987

$66,987

$66,987

$66,987

$66,988

$66,988

$66,988

$66,988

$66,988

$66,988

Marketing &
Promotion

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$127,141

$128,172

$128,172

$131,172

Taxes

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

Office Supplies

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,190

$21,362

$21,362

$21,862

Legal / Insurance /
Benefits

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$317,853

$320,429

$320,429

$327,929

Salary / Wage
Earners

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$190,712

$192,257

$192,257

$196,757

Amort. & Dep.

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,380

$42,724

$42,724

$43,724

Total Expenses

$851,023

$851,023

$851,023

$851,023

$851,023

$851,023

$851,024

$851,024

$851,024

$857,380

$857,380

$875,880

Operating Income

$380,155

$380,155

$380,155

$380,155

$380,155

$380,155

$380,154

$380,154

$380,154

$383,645

$383,645

$396,136

$76,031

$76,031

$76,031

$76,031

$76,031

$76,031

$76,031

$76,031

$76,031

$76,729

$76,729

$79,227

$304,124

$304,124

$304,124

$304,124

$304,124

$304,124

$304,123

$304,123

$304,123

$306,916

$306,916

$316,909

14%

14%

14%

14%

14%

14%

14%

14%

14%

14%

14%

14%

Revenue
Direct Cost
Gross Margin
Gross Margin %
Expenses

Rent & Utilities

Income Taxes
Net Profit
Net Profit / Sales

25

FY2013

FY2014

FY2015

Revenue

$2,788,843

$17,936,475

$25,529,740

Direct Cost

$1,833,800

$9,348,160

$10,695,072

$955,043

$8,588,315

$14,834,668

34%

48%

58%

$385,000

$553,500

$803,850

Employee Related Expenses

$0

$0

$0

Marketing & Promotion

$0

$358,726

$510,592

Rent & Utilities

$0

$1,076,188

$1,531,785

Taxes

$0

$358,726

$510,592

Office Supplies

$0

$179,368

$255,296

Legal / Insurance / Benefits

$0

$2,690,468

$3,829,464

Salary / Wage Earners

$0

$1,614,280

$2,297,679

Amortization & Depreciation

$0

$358,726

$510,592

Start-Up Costs

$225,000

$0

$0

Research: Edith Cowan

$150,000

$0

$0

Total Expenses

$760,000

$7,189,982

$10,249,850

Operating Income

$195,043

$1,398,333

$4,584,818

$39,009

$279,667

$916,964

$156,034

$1,118,666

$3,667,854

6%

6%

14%

Gross Margin
Gross Margin %
Expenses
Salary

Income Taxes
Net Profit
Net Profit / Sales

26