BUSINESS PLAN

Founders:
Jack Smith | John Doe
COMPANY BUSINESS PLAN

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COMPANY BUSINESS PLAN

Mission
Statement
The mission of Company is to create a decentralized digital marketplace that supports the
creation of 3D digital assets and asset monetization via non-fungible tokens (NFTs).

Company will be the first 3D platform and marketplace supporting eCommerce and creativity
in a realtime environment.

Company wants to be the creative and payment gateway for the VR/AR/3D/NFT new
distributed global economy.

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COMPANY BUSINESS PLAN

Table of Contents

Mission Statement .................................................................................................................................................. 3

Table Of Contents ................................................................................................................................................... 4
Executive Summary................................................................................................................................................. 5
Objectives .............................................................................................................................................................. 10
Financial Objectives .............................................................................................................................................. 11
Start-Up Summary ................................................................................................................................................ 12
Mvp And Use Case ................................................................................................................................................ 14
Market Analysis Summary: Emerging 3D/AR Tech And Distributed Marketplaces ............................................. 15
Operational Strategy ............................................................................................................................................. 16
Company Structure ............................................................................................................................................... 16
Location ................................................................................................................................................................. 16
Target Market ........................................................................................................................................................ 16
Business/Pricing Model ....................................................................................................................................... 17
Milestones ............................................................................................................................................................. 17
Branding And Marketing ....................................................................................................................................... 18
Goals ...................................................................................................................................................................... 18
Keys To Success ................................................................................................................................................... 18
Marketing Campaign ............................................................................................................................................ 19
Competitive Analysis ............................................................................................................................................ 21
Competitive............................................................................................................................................................ 25
Advantages ............................................................................................................................................................ 25
Barriers To Entry ................................................................................................................................................... 25
SWOT Analysis ...................................................................................................................................................... 26
Risk Analysis ......................................................................................................................................................... 26
Return On Investment (ROI) .................................................................................................................................. 27
Management ......................................................................................................................................................... 28
About Jack Smith & John Doe ............................................................................................................................. 28
Project Management ............................................................................................................................................ 28
Organizational Chart ............................................................................................................................................. 29
Personnel Forecast ............................................................................................................................................... 30
Revenue Forecast.................................................................................................................................................. 31
Break-Even Analysis ............................................................................................................................................. 32
Projected Income Statement ................................................................................................................................ 33
Projected Cash Flow ............................................................................................................................................. 34
Projected Balance Sheet ....................................................................................................................................... 35
Sensitivity Analysis ............................................................................................................................................... 36
Appendix: Year One Financials ............................................................................................................................. 37

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COMPANY BUSINESS PLAN

Executive Summary
Company is a new business based in
State that is creating a decentralized
digital marketplace using point cloud
data to create and sell 3D digital assets,
mint NFTs, and support global AR
(augmented reality), and 3D printed
goods. Company will be a 3D
marketplace, sales, and marketing
platform. Led by successful
entrepreneur Jack Smith and emerging
tech visionary and creator John Doe, the
business aims to become a 3D/AR/NFT
marketplace for the next generation of
technology and commerce.
Company will bring 3D technology,
augmented reality, virtual reality, non-
fungible tokens (NFTs) to the general population, along with
the ability to create, work, sell and buy remotely in a 3D
virtual space in real time.

Problem:
eCommerce and M-Commerce (mobile e-commerce)
operate in a two-dimensional space at present, and the relationship between brick-and-mortar retail
and services and digital marketplaces is uncomfortable for many types of products, services, and
work. 3D visualization and manufacturing technologies such as 3D printing, have been advancing over
the previous two or three decades. Machine learning and deep learning using point clouds has also
been advancing. And finally, blockchain,
cryptocurrencies, and non-fungible tokens
(NFTs) offer alternatives to fiat currency and
traditional contracts and fulfillment.
Sample Company Name
These technologies will converge, but is there a
is registered in State and
marketplace, creation, and payment architecture
headquartered in City. Ownership
to support them? A number of emerging
is held by Jack Smith and John Doe.
businesses that have obtained significant equity
investment have pieces of the puzzle ... but
they’re not blending all of the tech together and
lack strong monetization strategies.

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COMPANY BUSINESS PLAN

There is no realtime 3D creation and rendering marketplace currently available for corporate markets
or consumers. Billions have been spent on hardware and software development, but the architecture
and platform to use and commercialize the technology and real-world use cases doesn’t currently
exist.

The Opportunity:
According to Grandview Research, the AR market alone is worth $26.75 billion as of 2021, and is
anticipated to reach $340.16 billion by 2028, growing at a stunning CAGR of 43.8%. Connecting the
world of augmented reality (AR) to the real world is only possible through 3D LiDAR scanning and
software and hardware that interprets the cloud points collected by the scans.
The ability to create and sell 3D representations (and tie them to real-world objects such as furniture,
clothing, and other goods and services) and then providing the ability to monetize and transact these
assets using non fungible tokens (NFTs) creates a decentralized, distributed global marketplace.
Company will provide a seamless, accessible way to connect the new, digital, virtual world with the
physical environment we live in on a daily basis.

Solution:
Think of Company as a creation and payment platform for the 3D, virtual reality, augmented reality
world that is rapidly developing. It will offer:

• Use of and purchase of real world

products in 3D environments

• Product placement and

marketing platform

• Realtime rendering and

use of 3D spaces

• Creation and sale of 3D/AR

products through NFTs

Company’s first use case will be furniture makers, interior design firms, and staging companies. The
platform will support scanning of interior or exterior spaces and placement and manipulation of 3D
images of real-world products. Then, it will facilitate in-platform ordering and purchases.

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COMPANY BUSINESS PLAN

Market Size:

Company is a distributed, decentralized network that supports several different industries and
potentially, a broad segment of the general population. It supports realtime use of 3D scanning
technology in virtual spaces as well as to support 3D printing. According to Grandview Research, the
global 3D scanning market is expected to reach $8 billion by 2025, at a CAGR of 8.4%.
The Augmented Reality market, as noted, is anticipated to reach $340.16 billion by 2028. The NFT
(non-fungible token) market increased over 2,000% between the fourth
quarter of 2020 and first quarter of 2021, with over $2 billion spent on
NFTs between January and March 2021 according to NonFungible.com.
In the area of Company's first use case - home furnishings and interior
design, Wayfair represents the largest share of online furniture sales
(33%), closely followed by Amazon.com (29%).
According to Grandview Research, eCommerce in
furniture and home goods will reach $99.97 billion by
2022.
All of these eCommerce opportunities offer products via
2D digital interfaces. Customers can choose from a
few manufacturer apps that allow them to place 2D
images of furnishings in 2D photos of their home, but
there's no link to purchase or to design opportunities
- outside of architectural and design firms using
industry-specific software and rendering files.

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COMPANY BUSINESS PLAN

Marketing and Distribution: Target Market:

Company will market its platform via its initial
users: furniture manufacturers, retailers, and
interior designers. It will also market itself to
creative users through other digital platforms,
industry publications (tech and home furnishings),
and complementary apps. The novel concept of the
platform and its charismatic founders make
Company ideal for being featured in tech
publications, major media outlets, and YouTube
and/or network broadcasts. This business plan has
budgeted a customer acquisition cost of $2.50 per
new user, which includes incentive plans for early
adopters to sign up friends and associates (similar
to Pay Pal and Dropbox growth strategies).
Rabbithole is basing its early user base and
financial projections on the home furnishings and
interior design ecosystem. It will work directly
with leading home furnishings and home
improvement companies. To get an idea of the
size of the market, HOUZZ has 40 million unique
users in the U.S. alone, each of whom spent an
average of over $60,000 on home improvements
and renovations in 2019. HOUZZ has 1.5 million
professional members and 25 million MAU
(Monthly unique visitors). This market size is
substantial enough to support the initial user and
business projections as portrayed in this
business plan.

Competition and Competitive

Advantages:
Company faces competition in the 3D digital imaging
space from Matterport and Cupix. Matterport offers 3D
visualization software for real estate, enterprise,
education, and more. Cupix also offers cloud-based 3D
virtual tour software, and the company states they have
over 5,000 customers which "capture more than one
million sqft in 3D every day." In the NFT marketplace area,
OpenSea is branded as the largest NFT marketplace for
buying and selling NFTs. CryptoSlam, recipient of $20 million
in funding from Mark Cuban, is a sports memorabilia and

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 COMPANY BUSINESS PLAN

cryptocurrency-focused NFT marketplace which recently transacted a $500,000+ purchase for a

digital "CryptoPunk" minted four years ago with Ethereum.
Binance, the international cryptocurrency exchange, is launching an NFT marketplace and NFT futures
trading. In the realm of 3D Augmented Reality rendering, SketchUp offers a variety of levels of program
and was acquired by Google for $45 million, then sold to Trimble for $90 million. Sketchup receives
poor reviews from users due to a difficult and cumbersome interface. Spacemaker is a cloud-based
AI-assisted 3D rendering software.
All of these competitors take a SaaS approach to serving as a tool for various industries or purposes
- or, they are digital marketplaces for digital goods. None of the competitors combines the ability to
create 3D environments in real time, and market and sell them, or the ability to turn real-world products
and services into 3D representations and also present, manipulate, work with, and sell them.

Company competitive advantages include:

Three dimensional Realtime Use as 3D AR work Use for artists, Minting 3D

marketing and global rendering and platform for musicians, other platform products
commercialization set to manipulation of services like interior creators to create as NFTs and
scale exponentially by 3D point cloud design, architecture, and sell novel selling them as
means of a decentralized data renovations/contra 3D/AR/XR content "information
compounding ecosystem. cting with proof of work packages"

Management:
Jack Smith is a serial entrepreneur with a successful, high profile startup in urban agriculture under
his belt. John Doe is a multi-talented individual with a high level of expertise in emerging technology,
cryptocurrency, distributed computing and blockchain sectors. They are recruiting an all-star team of
developers and project leaders to create their vision for Company.

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COMPANY BUSINESS PLAN

The purpose of this plan is to provide investors or financial

institutions with the information necessary to evaluate the

Objectives scope and future growth of Company in the marketplace. In

addition to serving as a roadmap for management, the plan
will show that:

a massive market the correct capital

the management team
opportunity exists when structure will allow for a
set in place is visionary
analyzing the current long-lasting, profitable
and committed, and
market demands and business.
competitive landscape
for monetization and
commerce in 3D, AR, VR,
XR and NFTs;

To achieve the Company’s objectives, Company is seeking $5,000,000 in seed

funding and planning additional raises of $25,000,000 to further develop the
product and fully-monetize the platform. The funding will be utilized in
development of the MVP and subsequent platform development phases, and customer acquisition,
branding, and marketing. Company’s financial model shows consistent growth for the brand over the
next five years. By year five, plans call for the Company to achieve $616,232,078 in annual gross
revenue, with a net profit of $385,232,247 or approximately 62.5 %. The primary of four revenue
channels is NFT transaction processing fees, planned at 2.78% of each transaction.

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Revenue $7,949,315 $22,910,320 $76,136,898 $225,410,693 $616,232,078
Paid Users 1,505 3,763 9,406 28,219 84,656
Free Users 265,000 795,000 2,385,000 7,155,000 21,465,000
NFT Transactions 13,250 39,750 119,250 357,750 1,073,250

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COMPANY BUSINESS PLAN

Financial Objectives
The following table and graphs illustrate the financial goals of Company during the next five years. The financials are explained in detail
throughout the duration of the plan.

Financial Highlights ($1,000's)

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y1 Y2 Y3 Y4 Y5
Revenue 0 0 0 265 331 331 364 364 1,239 1,502 1,689 1,864 7,949 22,910 76,137 225,411 616,232

Gross Margin 0 0 0 218 273 273 300 300 1,063 1,292 1,450 1,603 6,773 19,509 66,204 196,597 533,272

Operating Expenses 400 236 236 236 236 236 236 236 236 236 236 236 2,999 5,611 9,841 19,860 45,636

EBITDA -400 -236 -236 -18 37 37 64 64 827 1,056 1,214 1,367 3,775 13,914 56,530 176,904 487,802

Net Profit -466 -302 -302 -84 -29 -29 -2 -2 761 990 1,148 1,301 2,981 10,979 44,527 139,623 385,232

Gross Margin/Revenue 0% 0% 0% 82% 82% 82% 82% 82% 86% 86% 86% 86% 85% 85% 87% 87% 87%

EBITDA/Revenue 0% 0% 0% -7% 11% 11% 18% 18% 67% 70% 72% 73% 47% 61% 74% 78% 79%

Net Profit/Revenue 0% 0% 0% -32% -9% -9% -1% -1% 61% 66% 68% 70% 38% 48% 58% 62% 63%

Net Cash Flow 4,683 -302 -302 -48 -20 -29 2 -2 847 1,016 1,170 1,318 8,332 21,086 59,352 128,144 369,541

Cash Balance - Ending 4,683 4,380 4,078 4,030 4,010 3,981 3,983 3,981 4,828 5,844 7,014 8,332 8,332 29,418 88,770 216,914 586,454

Projected Operating Highlights By Year ($1,000's)

$700,000
Revenue Gross Margin EBITDA Net Profit
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1 Year 2 Year 3 Year 4 Year 5

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 COMPANY BUSINESS PLAN

Start-Up Summary
The following tables and graphs detail the funding the business will need to bring the vision to reality.

Use of Start-up Funding Total Start-up Funding

Expenses Total Amount Being Requested $5,000,000

Legal Fees $12,000 Total Funds Already Received $0
Business Insurance $2,000 Total Funding $5,000,000
MVP Development $100,000 New Start-up Funding Being Requested
Marketing $50,000
Bank Amount Being Requested $0
0 $0
Line-of-Credit (LOC) Requested $0
Total Start-up Expenses $164,000
Investor Amount Being Requested $5,000,000
Long-term Assets
Total Amount Being Requested $5,000,000
Furniture & Equipment $5,000
Start-up Funding Already Received
Computer & Accessories $10,000
Owner Contribution $0
Total Long-Term Assets $15,000
Short-Term Assets Investor Contribution $0

Working Capital $2,500,000 Total Funding Already Received $0

Inventory $0 Start-up Capital and Liabilities

Total Short-Term Assets $2,500,000 Loss at Start-up (Start-up Expenses) ($164,000)
Total Expenses & Assets Total Funds Received & Requested $5,000,000
Total Start-up Expenses $164,000 Cash Balance on Starting Date $2,500,000
Total Start-up Assets $2,515,000
Total Funding Requirements $2,679,000

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 COMPANY BUSINESS PLAN

Company
Company is creating a decentralized,
distributed global marketplace for 3D
creation and commerce that will support
real-world creation and commercial activity
as well as digital and virtual creation,
commerce and activity.

It is intended to be a creation and payment

platform that supports the way that mobile,
3D, and distributed, decentralized networks
can blend the real world with the virtual
world. It will leverage the 3D LiDAR capacity
of the new iPhone and iPad to allow users to:

Support the creation and Create, render, and use 3D

sale of 3D/AR products spaces in realtime
through non-fungible
tokens (NFTs).

The entire design process will Enable designers and other

Enable businesses to present
and market their products to
customers in a realtime, 3D
environment
utilize machine learning creative professionals to
algorithms tethered to blockchain create designs that link to
layers as a means for governance, purchase of real world
security, and verification of work products in 3D environments

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COMPANY BUSINESS PLAN

MVP and Use Case

Company is already discussing its capabilities with established furniture manufacturers. The platform
will be able to support users creating 3D environments in their own home (or anywhere) and place
actual furniture and other home decor items into the 3D digital space. Company's platform can be
whitelabeled and branded for individual furniture companies. It can also be available for use by interior
designers, offering additional functionality and flexibility as compared to competitive products which
use different methods to emulate or simulate 3D environments. Now that iPad
Pro and the iPhone 12 include LiDAR scanning, anyone with these
devices can become a pro user of Company and create designs and
sell them via the platform.

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COMPANY BUSINESS PLAN

MARKET ANALYSIS SUMMARY:

Emerging 3D/AR Tech and Distributed Marketplaces
According to Markets and Markets December 2020 report, the global
3D mapping and modeling market was $3.8 billion in 2020, expected
to reach $7.6 billion by 2025, growing at a healthy 15% CAGR.

KBV Research predicted in December 2020 that the Global AR

(Augmented Reality) market would reach $89 billion by 2026,
growing at an astonishing CAGR of 46.3% annually. This market is
driven by the emergency of smart glasses developed by Microsoft,
Google Glass, and - expected in 2025, Apple Glasses and contact
lenses.

Global Industry Analysts' April 2021 report valuated the global Virtual
Reality (VR) market at $9.2 billion in 2020, expected to reach $89.1
billion by 2027, with a compound annual growth rate (CAGR) of
36.4%.

Commercially-available global cryptocurrency market studies are

clearly outdated and/or do not analyze key industry information, as
studies reported that the global market for cryptocurrency was less
than $1 billion in 2020, whereas Binance alone recorded over $1
billion in revenue and trillions in trading volume in the first quarter of
2021.

According to Grandview Research, the global Blockchain

technology market size is anticipated to reach $394.6
billion by 2028, growing at a CAGR of 82.4%. One of
blockchain's primary growth areas is in supply chain
management, authenticating transactions, reducing
error rates, and providing compliance support.
Blockchain is anticipated to impact financial services,
government, healthcare, media and entertainment, retail,
transportation, logistics, travel, and many other
industries.

Finally, the term M-Commerce is emerging to replace eCommerce, referring to the transition to mobile
use, replacing desktop or laptop computers. According to Global Industry Analysts, the global M-
Commerce market reached $1.9 trillion in 2020, expected to reach $6.6 trillion by 2027, for a CAGR of
19.8%. The U.S. M-Commerce market is the single largest segment, representing $504.2 billion in
2020; however, China's M-Commerce market is expected to reach $1.6 trillion by 2029, growing at a
rate of 24.8% annually. Leaders in this sector are Alibaba Group (China), Amazon.com, Apple Inc.,
PayPal and a variety of other providers.

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COMPANY BUSINESS PLAN

Operational Strategy

Company Structure

Company is a project of Content House LLC, a

Limited Liability Company registered in the state of
State. Ownership will be held by Jack Smith and
John Doe.

Location
State corporations have a variety of benefits and
flexibility which are well-suited to the
establishment of a distributed global marketplace
and platform like Company. First, State companies
can have anonymous shareholders, and offer
privacy to all owners and principals. Meeting
flexibility and location are additional benefits, and
State corporations do not need to pay state income
tax. Fees are modest and reporting requirements
are also modest, with $85 annual corporate fees.

Target Market
The primary target market for the initial use case and development phase of Company are interior
designers, home furnishing companies, fabricators, manufacturers, and potential buyers - in other
words, a similar target market to 2D platforms like Houzz, or recreation-focused platforms like
DecorMatters.

Houzz serves 40 million monthly users and has over 60 categories of home professionals, and 1.5
million professional members. Houzz charges a marketplace commission of 15%. Houzz obtains
customers primarily through referrals from Pinterest and Facebook and organic web search (Google),
and 72% of its users are homeowners between the ages of 25 and 54. Houzz does include a 3D imaging
feature through its IOS app, but this is reported to be ineffective and challenging to use.

Company could have the potential to develop into a massive M-Commerce giant in the 3D realm as
Amazon and Alibaba are in the 2D realm.

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COMPANY BUSINESS PLAN

Business/Pricing Model
Company will offer free memberships to
general users, $50 monthly subscriptions
for pro users, and business integrations or
whitelabeled platform development for
$150,000 per year.

It is planning to charge 2.78% of all NFT

transactions via the platform.

In addition, the platform is planning to

$17.5 USD per annual billing per monthly
active user (MAU).

Milestones
The tentative milestones are shown below.
Management reserves the right to make changes to this schedule as needed.

Milestones
START DATE DURATION (DAYS) MANAGER
Obtain Funding 7/1/2021 90.00 Chad Corzine
Achieve MVP 9/1/2021 45.00 Chad Corzine
Reach 265,000 Users 6/31/2022 365.00 Chad Corzine
Achieve Beta Product 1/30/2022 75.00 Chad Corzine
Expand Platform to New Uses 5/30/2022 125.00 Chad Corzine
Achieve 13,250 NFT Transactions 8/30/2022 365.00 Chad Corzine
Achieve $7.9 million in Gross Sales 7/1/2022 365.00 Chad Corzine

7/1/2021 90 DAYS 1/30/2022 75 DAYS

Obtain Funding Achieve Beta
Product

9/1/2021 45 DAYS 5/30/2022 125 DAYS

Achieve MVP Expand Platform
to New Uses

6/31/2022 365 DAYS 8/30/2022 365 DAYS

Reach 265,000 Achieve 13,250
Users NFT Transactions

7/1/2022 365 DAYS

Achieve $7.9 million
2.78% of NFT transactions is just one of the in Gross Sales
platform’s revenue streams.

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COMPANY BUSINESS PLAN

Branding and Marketing

Company will strive to meet the following objectives as it accomplishes specific keys to success:

Goals
Become a recognized market Brand the business as
leader in the 3D, AR/VR, and M- friendly to new users and
Commerce industry for 3D accessible to all levels of
products and work tech knowledge and skill

GOALS

Bring 3D environments and Create a friendly environment

NFTs/cryptocurrency knowledge for professional users and
to the general population home-based users alike

Keys to Success
• Company is entering an extremely fragmented marketplace that isn’t oriented toward B2C
consumer models. Its legacy competitors often have cumbersome and difficult to user
interfaces that are built on legacy technologies and legacy financial systems.

• Company will need to brand itself so that all potential customers can understand what it does,
and create a reliable image that can be trusted as it develops and grows

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COMPANY BUSINESS PLAN

Marketing Campaign
Marketing will be done through the following media:

NETWORKING

• Networking with furniture industry and design professionals

• Promotional connections with similar businesses including
home design marketplaces and/or businesses

ENDORSEMENT

• A financial industry or celebrity endorser (such as Mark Cuban for Bitcoin

and NFTs) can potentially help Rabbithole reach a wider target audience.

REFERRAL BONUSES

• A major growth strategy that proved effective for Pay Pal during its first
year of operation was the use of referral bonuses and incentives for current
customers to sign up new customers. No-commission stock trading
platforms like Robinhood and Webull offer sign-up bonuses of free stock
and additional free stock allocated randomly for people who successfully
use sign-up links for family and friends.

DIGITAL (WEBSITE & SOCIAL MEDIA)

• Company will be using a distributed, decentralized platform and development

model. However, any app must have a traditional website before it can proceed
with development and enter the Android or Apple marketplaces.

• Company will promote its services using established social media that is a good match, including
Instagram and Pinterest.

• About 40% of Houzz customers arrive at their site through web search. Company will use smart search
engine optimization strategies to achieve first place status in mobile device and voice-enabled
searches.

• Company is a great match for a video channel and/or podcast which will accelerate the process of
reaching targeted customers.

• The business also has have a strategy to reach out to old and new social media influencers to
encourage user engagement 19
COMPANY BUSINESS PLAN

• Digital And Traditional Media: • Press Release:

Company’s founders are charismatic and will Company’s founders are charismatic and will make
make great appearances on consumer-facing great appearances on consumer-facing new media,
new media, including podcasts, YouTube, and including podcasts, YouTube, and legacy media
legacy media platforms. platforms.

OTHERS

• Dedicated Sales And

• Word Of Mouth: Marketing Tea m:
In addition to investing in Company’s founders are charismatic
traditional and digital marketing and will make great appearances on
campaigns, the Company will consumer-facing new media,
rely on early adopters and net including podcasts, YouTube, and
promoters to provide word of legacy media platforms.
mouth via direct demonstrations
and social media.

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COMPANY BUSINESS PLAN

Competitive Analysis
The identified competitors and sectors are described below:

3D Digital Imaging

Matterport

Sunnyvale-based Matterport was established in 2011 and currently employs approximately 350
people and had a record revenue year in 2020 due to the COVID-19 crisis. Its cloud-based software is
primarily used to create digital twins of existing buildings. The business states they are "leading the
digital transformation of the built world." The virtual tour function of Matterport is the most popular
virtual tour software, supporting an 87% increase over 2019 revenues, to $85.9 million in 2020.
Matterport reports that it has 250,000 subscribers in 150 countries. It announced its compatibility with
iPhone 12 and iPad Pro as of May 4 2021, but the company sells 3D, 360-degree cameras for
approximately $3,200 USD, and offers free memberships which can accommodate one 3D model. A
starter membership is $9.99 USD monthly with 5 active models, a pro membership is $69 USD monthly
for 25 active models, and prices go up from there for 50 active models ($129/mo), 100 models
($309/mo), and 250 models ($689/mo). Spaces on free plans are automatically private. Only paid
plans can share plans with others. Developer tool access ranges from $50 to $1500 a month.

Cupix

Cupix was founded in 2015 and provides

software that interprets data from 360-
degree cameras. The software uses
computational geometry, computer
vision, 3D scanning, 3D printing and is
based in the cloud. The platform is used
in real estate, and for building,
remodeling, and management. Cupix was
founded by Seok-hoon (Simon) Bae, CEO
and continues to be privately-held. It has
received venture funding from Atinum
Investment, Murex Partners, Breeze
Investment, and Umi Construction,
achieving its most recent round of Series
B funding of $11.8 million in December 2020. Cupix has approximately 35 employees and reported
revenue of $2.5 million in the first quarter of 2021. Cupix prices its plans by gigabytes (GB) per month

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COMPANY BUSINESS PLAN

ranging from the free plan which offers 250 MB of workspace, Small ($24/mo - 3GB workspace),
Medium ($65/mo - 9 GB workspace), and Large ($190/mo up to 30 GB workspace). Cupix also offers
add-on packages with additional functionality for individuals using Google Maps ($29/mo), Architects
& Engineers ($69/mo), and teams to create and share 3D tours ($49/mo).

NFT Marketplaces

OpenSea

OpenSea (OpenSea.io) identifies itself as "the world's first and largest digital marketplace for crypto
collectibles and NFTs." Categories in its marketplace include art, domain names (using .crypto
extension), virtual worlds created by the crypto community, trading cards, collectibles, sports, and
utility items. OpenSea maintains stats on all volume on its platform which supports trading in NFTs
and purchases using cryptocurrencies. As one example, the Golden State Warrior collection transacted
681.32 Ethereum in 7 days, for a total volume equivalent to $2,216,430 USD, and, although the highest
volume sports-related category, it is approximately 10% of the volume done by OpenSea's virtual
worlds, which contain hundreds of virtual collectibles and other assets. OpenSea was founded in 2017
by Alex Atallah and Devin Finzer. OpenSea charges 2.5% of the sales price of any of its items, which is
considered low for the sector. Traditional (2D, real world) auction websites take up to 15% of the
purchase price of items sold. OpenSea was launched to be "the Amazon or eBay of NFTs." OpenSea is
blockchain-based. Founder Devin Finzer says "We really wanted to bring on a lot of folks who combine
the crypto world with the sort of artist and creative world, because that’s where we see NFTs really
blossoming."

CryptoSlam

CryptoSlam was founded in 2018 to track NFTs from MLB Champions, the first major sports league-
licensed NFTs. CryptoSlam recently emerged in the news because they received $20 million in
venture funding from famed billionaire investor and sports mogul Mark Cuban. Cuban has publically
announced that his Dallas Maverick's team store had become the largest online store accepting
cryptocurrency Dogecoin in the world (DOGE is a former "joke" cryptocurrency which is rapidly
increasing in value). CryptoSlam was founded by Randy Wasinger and is based in Overland Park,
Kansas. CryptoSlam is an aggregator that tracks NFT sales across 3 different blockchain platforms,
including NBA Top Shots and CryptoPunks.

22
COMPANY BUSINESS PLAN

Centralized Trading
Platforms

Binance

Binance is a cryptocurrency and

financial services platform that
was founded in 2017 by
Changpeng Zhao and Yi He. The
business is not technically
headquartered in any nation. It is a
decentralized autonomous
organization (DAO) with branches
in 12 locations in 11 different
nations. The business has a
complex legal and regulatory
history, and was initially launched
in China, but left the City following
the government's ban on cryptocurrency in 2017. Because the business is privately owned, no firm
figures are available on business revenue, but Binance's average trade fee rate is .016%. It is
estimated they generated up to $1 billion in revenue based on trading volume in the first quarter of
2021.

3D Augmented Reality

SketchUp

SketchUp was founded in 1999 and currently has approximately 220 employees, according to
PitchBook. It provides 3D modeling software and recorded revenue of $156.4 million in 2021. The
business was acquired by Google for $45 million, then sold to Trimble (construction/architecture)
for $90 million. There are a number of CAD-based 3D modeling programs which are used in the
architecture, engineering, and construction industry and SketchUp is one of them. Its interface is
regarded as cumbersome and difficult to use by a number of users, and it's not considered a viable
alternative to AutoCAD by architects, although Trimble is expanding the software's adoption in the
construction industry. SketchUp Shop for personal use is $119 a year and uses pre-built models,
SketchUp Pro for desktop and cloud projects is $299 a year, and SketchUp Studio is $699 a year.It

23
COMPANY BUSINESS PLAN

also offers student and educator versions for $55/year, and is offered free to public K-12 students
and teachers through a Microsoft educator account.

Spacemaker

SpaceMaker.AI is a Norwegian company that was acquired by Autodesk in November 2020 for $252
million. It was founded in 2015 and uses artificial intelligence (AI) to optimize building site value.
SpaceMaker is a cloud-based platform that enables architecture, engineering, design, and
development teams to analyze and optimally design large building projects. It is suited for urban
planning projects and is in use in a number of European cities. Autodesk made the acquisition, along
with others supporting BIM (Building Information Management) and construction project
management as part of its competitive efforts with other sector leaders including Trimble and
Oracle.

Interior
Design/Furnishing
Platforms

Ikea

IKEA launched its IKEA Place virtual furniture placement app in the Apple App Store in 2019. The
software is presented as a 3D environment but the app is designed for iOS 11. In April 2021, the app
was revamped in April 2021, offering 3-D and realistic scaleability and placement of its furniture and
other goods in home environments, along with options for purchase.

DecorMatters

DecorMatters was founded in 2016 in Santa Clara, CA by Farris Wu, Fay Yang, and Jing Xue. The
platform uses AI, AR, and blockchain technology to support interior design, connecting directly to
furniture retailers. The app is available for iPhone and iPad and boasts over 3 million unique users,
including over 100,000 designers and 25 retailers who feature their products on the platform.
DecorMatters has approximately 18 employees as of 2021 and reported revenue of $1.5 million in
2020. The platform received $10 million from ZenStone Venture Capital in 2019 to "develop the
world’s first blockchain technology for the furniture industry to create an ad-hoc collaboration and
profit-sharing mechanism among interior designers, shoppers, and furniture businesses at scale."

24
COMPANY BUSINESS PLAN

The following is a listing of the primary competitive advantages of the Company upon entering the
market.

Unique vision

State location

COMPETITIVE
ADVANTAGES Multiple revenue streams

Creative business model

Cutting edge approach to

making the emerging tech

Barriers to Entry
According to Gartner, the barriers to
new entries into the M-Commerce
market remain the variety of
mobile devices and competing
app platforms, including iOS
and Android. 3D technology
barriers are rapidly lowering,
due to the inclusion of LiDAR
in the iPhone 12 and iPad.
The primary barrier to Company
entering the market will be
competition from established
businesses who want to maintain
their own proprietary apps and
platforms (like IKEA) or first-
generation marketplaces like
Houzz, which have established
business models and large client
bases who already rely upon their
service and the ecosystem.
25
COMPANY BUSINESS PLAN

SWOT Analysis
The following is a listing of the key strengths and weaknesses of Company, as well as the opportunities
and threats that exist within the marketplace.

S
STRENGTHS

• Experienced, serial entrepreneur founder

• Unique product and vision
• Location in State
• Distributed business model greatly lowers overhead
• Creative use of emerging and existing technology
• Multiple, robust revenue streams

W
WEAKNESSES

• Company needs funding and working capital

• Large competitors can use the same technology to establish
proprietary programs
• Talented programming team needs to be onboarded

OPPORTUNITIES

O
• Existing competitors provide piecemeal solutions
• Legacy e-Commerce and M-Commerce platforms are 2D, not
3D, and don’t accommodate cryptocurrency or blockchain
• The industries Rabbithole will serve are anticipated to grow
exponentially over the next 7 years
• Limitless expansion opportunities beyond home design and
furnishings

T
THREATS

• Instability of the US economy leads to unpredictable market

activity
• Larger companies that have more resources and the ability to
reach deeper into the market
• Other nations outlaw cryptocurrency or will not allow it to
supplement fiat currency
Risk Analysis
The risks involved with Company will be moderate. The technology exists to make the platform work,
and it is entering the marketplace at the ideal time. The Company stands as a viable business
opportunity that has the potential to deliver significant returns to any investor or lending institution.

26
COMPANY BUSINESS PLAN

Return on Investment (ROI)

Company is currently seeking an equity investor. The Company has placed a value on the Company of
$150,000,000 dollars, and it is looking for a $30,000,000 dollar investment for 20 % of the company.
Below is a return scenario for this investment.

Return on Investment Projection

Company Valuation* Outstanding Shares Per Share Valuation

Issued & Committed $120,000,000 8,000,000 $15.0000

After Investment Group $150,000,000 10,000,000 $15.0000

Proposed Shares Per Share Dollar Investment

Investment Group (IG) 2,000,000 $15.0000 $30,000,000

10,000,000 Total Shares - ROI for the IG is as follows:

Company Valuation Per Share Price ROI for IG

Year 1 $150,000,000 $15.00 100%

Year 2 $150,000,000 $15.00 100%
Year 3 $150,000,000 $15.00 100%
Year 4 $2,405,895,883 $240.59 1604%
Year 5 $6,634,110,677 $663.41 4423%

Number of Shares Per Share Price Proceeds from Sale

(for IG) (for IG)

Year 1 2,000,000 $15.00 $30,000,000

Year 2 2,000,000 $15.00 $30,000,000
Year 3 2,000,000 $15.00 $30,000,000
Year 4 2,000,000 $240.59 $481,179,177
Year 5 2,000,000 $663.41 $1,326,822,135

*The assumed company valuation was based on a multiplier of 13.6 multiplied by EBITDA. This figure
is very conservatively estimated, if one views the revenue of Binance, for example.

27
COMPANY BUSINESS PLAN

Management

About Jack Smith & John Doe

Jack Smith is a successful entrepreneur who launched his own
company, the Urban Company, making home-based growing
products. Chad has been named one of “40 under 40” by several
industry publications.

John Doe is a Mixed Martial Artist and black belt Jiu Jitsu
instructor who has a deep interest in and affinity for emerging
technology, including blockchain, cryptocurrencies, non-
fungible tokens (NFTs), distributed networks and nodes, cloud
point analysis, augmented reality, virtual reality, machine
learning, and 3D computing and analysis. He has created the
mind map for Company and uncovered the ways these
MR. SMITH
emerging technologies can work together to revolutionize work,
commerce, and human creativity and potential.

Project Management
Mr.Smith & Mr.Doe are recruiting top
programming and project management talent to
create the Company platform. This business plan
outlines the team necessary to create the MVP,
and to proceed through development phases
beyond the Beta phase to full usability for free
and professional users.

MR. DOE

28
COMPANY BUSINESS PLAN

Organizational Chart

Founder/CEO

Legal and
Professional
Advisors

Chief Operating Sales and Customer Financial

Officer Marketing Service Management

Marketing/Sales Accounting and

Lead Developer
Staff Bookkeeping

Developers

UX/UI Team

29
COMPANY BUSINESS PLAN

Personnel Forecast
The personnel forecast below shows the staffing needs for the next five years.

Personnel Forecast
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Staff Count
President/CEO 1 1 1 1 1
Chief Operating Officer 1 1 1 1 1
Project Manager 0.5 1 1 1 1
Lead XR Developer 0.5 1 1 2 2
Lead Blockchain Dev 0.5 1 1 1 1
XR Developers 1 2 4 6 6
BE Developers 1 2 4 6 6
Blockchain Developer 1 1 1 1 1
UX/3D/Other Designers 3 3 3 3 3
Marketing and Sales 1 3 5 10 15
Total Personnel 10.5 16 22 32 37

Staff Salary
President/CEO $180,000 $200,000 $206,000 $212,180 $218,545
Chief Operating Officer $180,000 $185,400 $190,962 $196,691 $202,592
Project Manager $320,000 $329,600 $339,488 $349,673 $360,163
Lead XR Developer $156,000 $160,680 $165,500 $170,465 $175,579
Lead Blockchain Dev $249,600 $257,088 $264,801 $272,745 $280,927
XR Developers $110,000 $113,300 $116,699 $120,200 $123,806
BE Developers $197,600 $203,528 $209,634 $215,923 $222,401
Blockchain Developer $249,600 $257,088 $264,801 $272,745 $280,927
UX/3D/Other Designers $228,800 $235,664 $242,734 $250,016 $257,516
Marketing and Sales $0 $85,000 $87,550 $90,177 $92,882

Staff Salary - Total

President/CEO $120,000 $200,000 $206,000 $212,180 $218,545
Chief Operating Officer $120,000 $185,400 $190,962 $196,691 $202,592
Project Manager $160,000 $329,600 $339,488 $349,673 $360,163
Lead XR Developer $78,000 $160,680 $165,500 $340,931 $351,159
Lead Blockchain Dev $124,800 $257,088 $264,801 $272,745 $280,927
XR Developers $64,167 $226,600 $466,796 $721,200 $742,836
BE Developers $115,267 $407,056 $838,535 $1,295,537 $1,334,403
Blockchain Developer $145,600 $257,088 $264,801 $272,745 $280,927
UX/3D/Other Designers $133,467 $706,992 $728,202 $750,048 $772,549
Marketing and Sales $0 $255,000 $437,750 $901,765 $1,393,227
Total Payroll $1,061,300 $2,985,504 $3,902,835 $5,313,513 $5,937,328

30
COMPANY BUSINESS PLAN

Revenue Forecast
The following is a five-year revenue and direct cost forecast.

Revenue Forecast
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Total
Advanced Tool Paid
1,505 3,763 9,406 28,219 84,656
Memberships
NFT Sales Revenue 13,250 39,750 119,250 357,750 1,073,250
User Data Revenue Per DAU 265,000 795,000 2,385,000 7,155,000 21,465,000
Business Integrations 12 30 60 120 240

Price
Advanced Tool Paid
$50.00 $50.00 $50.00 $50.00 $50.00
Memberships
NFT Sales Revenue $108.42 $108.42 $108.42 $108.42 $108.42
User Data Revenue Per DAU $17.50 $17.50 $17.50 $17.50 $17.50
Business Integrations $150,000.00 $150,000.00 $350,000.00 $500,000.00 $500,000.00

Revenue
Advanced Tool Paid
$75,250 $188,125 $470,313 $1,410,938 $4,232,813
Memberships
NFT Sales Revenue $1,436,565 $4,309,695 $12,929,085 $38,787,255 $116,361,765
User Data Revenue Per DAU $4,637,500 $13,912,500 $41,737,500 $125,212,500 $375,637,500
Business Integrations $1,800,000 $4,500,000 $21,000,000 $60,000,000 $120,000,000
Total Revenue $7,949,315 $22,910,320 $76,136,898 $225,410,693 $616,232,078

Direct Cost
Advanced Tool Paid
$15.00 $15.00 $15.00 $15.00 $15.00
Memberships
NFT Sales Revenue $21.68 $21.68 $21.68 $21.68 $21.68
User Data Revenue Per DAU $1.75 $1.75 $1.75 $1.75 $1.75
Business Integrations $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00

Direct Cost of Revenue

Advanced Tool Paid
$22,575 $56,438 $141,094 $423,281 $1,269,844
Memberships
NFT Sales Revenue $287,313 $861,939 $2,585,817 $7,757,451 $23,272,353
User Data Revenue Per DAU $463,750 $1,391,250 $4,173,750 $12,521,250 $37,563,750
Business Integrations $180,000 $450,000 $900,000 $1,800,000 $3,600,000
Subtotal Cost of Revenue $953,638 $2,759,627 $7,800,661 $22,501,982 $65,705,947

31
COMPANY BUSINESS PLAN

Break-Even Analysis
The following break-even analysis shows the revenue necessary to break even in the first year of
operation. Break-even is where revenue equals expenses. As shown below, the Company is expected
to incur average monthly fixed costs of $249,944 in Year 1. To cover fixed costs and variable costs,
which rise and fall with revenue, the Company must, on average, achieve revenue of $332,222 per
month to break even.

Year 1 Break-even Analysis

Monthly Revenue Break-even $332,222

Assumptions:
Average Monthly Revenue $662,443
Average Monthly Variable Cost $164,059
Estimated Monthly Fixed Cost $249,944

Year 1 Break-even Analysis

$300,000

$200,000

$100,000

$0

($100,000)

($200,000)

($300,000)
$0 $332,222 $664,443

32
COMPANY BUSINESS PLAN

Projected Income Statement

Company intends to deploy its funding to maximize growth and profitability. Below is the projected
income statement of the Company:

Pro Forma Income Statement

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Revenue $7,949,315 $22,910,320 $76,136,898 $225,410,693 $616,232,078
Subtotal Cost of Revenue $953,638 $2,759,627 $7,800,661 $22,501,982 $65,705,947
Merchant Credit Card Fees $222,581 $641,489 $2,131,833 $6,311,499 $17,254,498
Total Cost of Revenue $1,176,219 $3,401,115 $9,932,494 $28,813,482 $82,960,445

Gross Margin $6,773,096 $19,509,205 $66,204,404 $196,597,211 $533,271,633

Gross Margin/Revenue 85.20% 85.15% 86.95% 87.22% 86.54%

Expenses
Digital Workspace $25,000 $37,500 $56,250 $84,375 $126,563
General Insurance Liability $5,000 $6,250 $7,813 $9,766 $12,207
Business License/Permits $600 $615 $630 $646 $662
Telephone/Internet $12,000 $18,000 $27,000 $40,500 $60,750
Dedicated Server Costs $94,433 $141,649 $212,474 $318,711 $446,195
Marketing & Advertising $300,000 $450,000 $675,000 $1,012,500 $1,518,750
App Development/Maintenance $48,000 $52,800 $66,000 $82,500 $103,125
User Churn $265,000 $463,750 $811,563 $1,420,234 $2,485,410
User Acquisition $662,500 $1,325,000 $3,975,000 $11,925,000 $35,775,000
Travel & Entertainment $48,000 $49,200 $50,430 $51,691 $52,983
Startup Cost $164,000 $0 $0 $0 $0
Legal and Compliance $300,000 $307,500 $315,188 $323,067 $331,144
Repair & Maintenance $0 $0 $0 $0 $0
Miscellaneous Expenses $12,000 $12,120 $12,241 $12,364 $12,487
Depreciation $1,500 $16,500 $166,500 $166,500 $166,500
Payroll Taxes $0 $0 $0 $0 $0
Total Personnel $1,061,300 $2,730,504 $3,465,085 $4,411,748 $4,544,101
Total Operating Expenses $2,999,333 $5,611,388 $9,841,173 $19,859,602 $45,635,877

Profit Before Interest and Taxes $3,773,763 $13,897,816 $56,363,231 $176,737,609 $487,635,756
EBITDA $3,775,263 $13,914,316 $56,529,731 $176,904,109 $487,802,256
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $792,490 $2,918,541 $11,836,278 $37,114,898 $102,403,509

Net Profit $2,981,273 $10,979,275 $44,526,952 $139,622,711 $385,232,247

Net Profit/Revenue 37.50% 47.92% 58.48% 61.94% 62.51%

33
COMPANY BUSINESS PLAN

Projected Cash Flow

The following depicts Company’s projected cash flow:

Pro Forma Cash Flow

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Cash Received
Revenue $7,949,315 $22,910,320 $76,136,898 $225,410,693 $616,232,078
Proceeds from Line-of-
$0 $0 $0 $0 $0
Credit
Proceeds from Bank Loan $0 $0 $0 $0 $0
Owner Contribution $0 $0 $0 $0 $0
Proceeds From Long-
$0 $0 $0 $0 $0
term Assets
Proceeds from Investor $5,000,000 $10,000,000 $15,000,000 $0 $0
Subtotal Cash Received $12,949,315 $32,910,320 $91,136,898 $225,410,693 $616,232,078

Expenditures
Expenditures from
Operations
Total Personnel $1,061,300 $2,730,504 $3,465,085 $4,411,748 $4,544,101
Bill Payments $3,377,444 $8,943,697 $26,819,482 $77,855,427 $217,147,234
Subtotal Spent on
$4,438,744 $11,674,201 $30,284,567 $82,267,176 $221,691,335
Operations

Additional Cash Spent

Investor Repayment $0 $0 $0 $15,000,000 $25,000,000
Start-up Costs $164,000 $0 $0 $0 $0
Principal Loan
$0 $0 $0 $0 $0
Repayment
Purchase Inventory $0 $0 $0 $0 $0
Purchase Long-term
$15,000 $150,000 $1,500,000 $0 $0
Assets
Dividends Paid $0 $0 $0 $0 $0
Subtotal Cash Spent $4,617,744 $11,824,201 $31,784,567 $97,267,176 $246,691,335

Net Cash Flow $8,331,571 $21,086,119 $59,352,331 $128,143,517 $369,540,743

Cash Balance $8,331,571 $29,417,690 $88,770,020 $216,913,537 $586,454,280

Year 1 Cash
$10,000,000
$8,000,000 Net Cash Flow Cash Balance
$6,000,000
$4,000,000
$2,000,000
$0
-$2,000,000
Month 10

Month 11

Month 12
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

34
COMPANY BUSINESS PLAN

Projected Balance Sheet

Following is the projected balance sheet of Company.

Pro Forma Balance Sheet

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Assets
Current Assets
Cash $8,331,571 $29,417,690 $88,770,020 $216,913,537 $586,454,280
Inventory $0 $0 $0 $0 $0
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $8,331,571 $29,417,690 $88,770,020 $216,913,537 $586,454,280

Long-term Assets
Long-term Assets $15,000 $165,000 $1,665,000 $1,665,000 $1,665,000
Accumulated
$1,500 $18,000 $184,500 $351,000 $517,500
Depreciation
Total Long-term
$13,500 $147,000 $1,480,500 $1,314,000 $1,147,500
Assets

Other Assets
Other Assets $0 $0 $0 $0 $0
Total Assets $8,345,071 $29,564,690 $90,250,520 $218,227,537 $587,601,780

Liabilities and Capital

Current Liabilities
Accounts Payable $363,798 $604,142 $1,763,020 $5,117,326 $14,259,321
Current Borrowing $0 $0 $0 ($15,000,000) ($40,000,000)
Other Current
$0 $0 $0 $0 $0
Liabilities
Subtotal Current
$363,798 $604,142 $1,763,020 ($9,882,674) ($25,740,679)
Liabilities

Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $363,798 $604,142 $1,763,020 ($9,882,674) ($25,740,679)

Paid-in Capital $5,000,000 $15,000,000 $30,000,000 $30,000,000 $30,000,000

Retained Earnings $0 $2,981,273 $13,960,548 $58,487,500 $198,110,212
Earnings $2,981,273 $10,979,275 $44,526,952 $139,622,711 $385,232,247
Total Capital $7,981,273 $28,960,548 $88,487,500 $228,110,212 $613,342,459
Total Liabilities and
$8,345,071 $29,564,690 $90,250,520 $218,227,537 $587,601,780
Capital

Net Worth $7,981,273 $28,960,548 $88,487,500 $228,110,212 $613,342,459

*Liabilities in Years 4 and 5 denote investment repayment and interest.

35
COMPANY BUSINESS PLAN

Sensitivity Analysis
The sensitivity analysis below assumes that revenues are 10% higher or 10% lower than figures
projected earlier in this business plan.

Best Case Scenario (Revenue Increases by 10%)

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Revenue $8,744,247 $25,201,352 $83,750,587 $247,951,762 $677,855,285
Cost of Goods $1,293,841 $3,741,227 $10,925,743 $31,694,830 $91,256,489
Gross Margin $7,450,406 $21,460,125 $72,824,844 $216,256,932 $586,598,796
Gross Margin/Revenue 85.20% 85.15% 86.95% 87.22% 86.54%
Operating Expenses $2,999,333 $5,611,388 $9,841,173 $19,859,602 $45,635,877
Net Profit $3,333,053 $12,520,502 $49,757,100 $155,153,891 $427,360,706
Cash Flow $8,683,350 $22,627,346 $64,582,479 $143,674,696 $411,669,202
Cash Balance $8,683,350 $31,310,696 $95,893,175 $239,567,872 $651,237,073
Net Profit/Revenue 38.12% 49.68% 59.41% 62.57% 63.05%

Best Case 1.1

Worst Case Scenario (Revenue Decreases by 10%)

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Revenue $7,154,384 $20,619,288 $68,523,208 $202,869,623 $554,608,870
Cost of Goods $1,058,597 $3,061,004 $8,939,244 $25,932,133 $74,664,400
Gross Margin $6,095,787 $17,558,284 $59,583,963 $176,937,490 $479,944,469
Gross Margin/Revenue 85.20% 85.15% 86.95% 87.22% 86.54%
Operating Expenses $2,999,333 $5,611,388 $9,841,173 $19,859,602 $45,635,877
Net Profit $2,254,551 $9,438,048 $39,296,805 $124,091,532 $343,103,788
Cash Flow $7,604,848 $19,544,892 $54,122,183 $112,612,337 $327,412,284
Cash Balance $7,604,848 $27,149,740 $81,271,923 $193,884,260 $521,296,544
Net Profit/Revenue 31.51% 45.77% 57.35% 61.17% 61.86%

Worst case 0.9

36
COMPANY BUSINESS PLAN

APPENDIX: Year One Financials

Year One Income Statement

MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12
Revenue $0 $0 $0 $264,945 $331,182 $331,182 $364,300 $364,300 $1,239,300 $1,501,800 $1,688,654 $1,863,654
Subtotal Cost of Revenue $0 $0 $0 $39,191 $48,989 $48,989 $53,888 $53,888 $141,388 $167,638 $191,084 $208,584
Merchant Credit Card Fees $0 $0 $0 $7,418 $9,273 $9,273 $10,200 $10,200 $34,700 $42,050 $47,282 $52,182
Total Cost of Revenue $0 $0 $0 $46,610 $58,262 $58,262 $64,088 $64,088 $176,088 $209,688 $238,367 $260,767

Gross Margin $0 $0 $0 $218,336 $272,920 $272,920 $300,212 $300,212 ######### $1,292,112 $1,450,287 $1,602,887
Gross Margin/
N/A N/A N/A 82.41% 82.41% 82.41% 82.41% 82.41% 85.79% 86.04% 85.88% 86.01%
Revenue

Expenses
Digital Workspace $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083
General Insurance Liability $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Business License/
$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Permits
Telephone/
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Internet
Dedicated Server Costs $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869 $7,869
Marketing & Advertising $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
App Development/Maintenance $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
User Churn $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
User Acquisition $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208 $55,208
Travel & Entertainment $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Startup Cost $164,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Legal and Compliance $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Repair & Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Miscellaneous Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Payroll Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Personnel $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442 $88,442
Total Operating Expenses $400,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278 $236,278

Profit Before Interest and Taxes ($400,278) ($236,278) ($236,278) ($17,942) $36,642 $36,642 $63,934 $63,934 $826,934 $1,055,834 $1,214,010 $1,366,610
Interest on Loan Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041 $66,041

Net Profit ($466,319) ($302,319) ($302,319) ($83,983) ($29,399) ($29,399) ($2,107) ($2,107) $760,893 $989,793 $1,147,969 $1,300,569
Net Profit/Revenue N/A N/A N/A -31.70% -8.88% -8.88% -0.58% -0.58% 61.40% 65.91% 67.98% 69.79%

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