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Confidentiality Agreement

The undersigned reader of NORDICPLANS Business Plan hereby acknowledges that the information
provided is completely confidential and therefore the reader agrees not to disclose anything found in the
business plan without the express written consent of NORDICPLAN ENTERTAINMENT.

It is also acknowledged by the reader that the information to be furnished in this business plan is in all
aspects confidential in nature, other than information that is in the public domain through other means
and that any disclosure or use of the same by the reader may cause serious harm and or damage to
NORDICPLAN ENTERTAINMENT..

Upon request this business plan document will be immediately returned to NORDICPLAN
ENTERTAINMENT.

This is a business plan. It does not imply an offer of any securities.

__________________________________________________

Signature

__________________________________________________

Printed Name
Mission

The worldwide gaming market is extremely large and growing, particularly within the free-
to-play MMO sector. Moreover, the industry is heavily concentrated around a few games
at a time that provide the best visual and gameplay experiences, as the popularity of World
of Warcraft demonstrated. Demons on the Horizon by the company sNordicplan expects to
dominate this market with its innovative MMO game.
Table of Contents
Executive Summary ............................................................................................................... 5
Product & Service Summary ...........................................................................................................5
Market Summary ...........................................................................................................................5
Vision ............................................................................................................................................6
Objectives ......................................................................................................................................6
Keys to Success ..............................................................................................................................6
Start-up Summary ..........................................................................................................................6

Product & Services ................................................................................................................ 7


Service Description.........................................................................................................................7

Industry Overview ................................................................................................................. 8


The Market ....................................................................................................................................8
Market Needs ................................................................................................................................8
Market Trends ...............................................................................................................................9
Market Growth ..............................................................................................................................9
Market Segmentation................................................................................................................... 10

Strategy & Implementation Summary .................................................................................. 11


Management Team ...................................................................................................................... 12
SWOT Analysis ............................................................................................................................. 12
Value Proposition ......................................................................................................................... 14
Competitive Comparison .............................................................................................................. 15
Marketing Plan............................................................................................................................. 16
Promotion Strategy ...................................................................................................................... 16

Financial Forecasts .............................................................................................................. 18


Start-up Summary ........................................................................................................................ 18
Financial Highlights ...................................................................................................................... 19
Financial Indicators ...................................................................................................................... 20
Revenue Forecast ......................................................................................................................... 21
Personnel Forecast ....................................................................................................................... 22
Projected Cash Flow ..................................................................................................................... 23
Projected Balance Sheet ............................................................................................................... 24
Sensitivity Analysis ....................................................................................................................... 25

Appendix............................................................................................................................. 26
EXECUTIVE SUMMARY

The MMO gaming industry represents 21% of the total gaming industry and is quickly growing, particularly
in Asian countries. Of these games, the most popular types are Fantasy with elements of Realism.
Moreover, out of the total MMO industry, the Free-to-Play model represents 60% of the total industry
valuation. Demons on the Horizon is an MMO game by passionate gamers at Nordicplan, a
design/software development and management consulting firm that is similar to World of Warcraft, in
that users can interact globally to fulfill quests, combat and compete for reputation and glory.

PRODUCT SUMMARY

Demons at the Horizon (D.E.A.T.H), the game is a free-to-play MMORPG, which is, it is a style of a
massive online multiplayer game that takes place in a virtual world. Other MMORPG games are similar to
the Sims online, Second Life and most closely similar, World of Warcraft. The game takes place in a
prehistoric world that is similar to Earth and enables each player to take on the role of different characters
from five different factions.

The user explores the virtual world similar to Earth and undertakes quests, interacts with tens of
thousands of other online games to combat, form alliances or fulfill objectives. The game features
unlimited player generated content with new player types that are unprecedented to the market with
dynamic game function integration and over 267 innovations in the MMO segment. In quests, virtual
world, characters and graphics will be the best of its class and far outperform and previous or existing
MMO games available on the market.

The game features five fractions of characters the user may select from, each delivering a unique game
play experience and enabling self-expression. Moreover, it has a unique PVP or PvE model, which means
that players can compete with other players online or play the game against the computer. This extends
the game even furthers into areas where Internet bandwidth may not be suitable to support online
gaming. Everything is connected through a centralized storyline created by an industry expert that
compels users to fulfill the game quests and build their character for fulfillment.

MARKET SUMMARY

The MMO market is expected to reach $19.5 B by 2016 with a CAGR of 10.4%. This will make the MMO
segment the worlds second largest gaming segment, accounting for 22.7% of all global revenues in the
gaming industry. The free-to-play model of the game is the most popular within the MMO industry,
primarily by less mature markets in Asia, Latin America and Eastern Europe where the growth is the
highest due to increased internet penetration. Consumers value the ability to interact with their friends
in a virtual fantasy environment with limitless quests and outstanding graphics.

History has demonstrated that games meeting these elements experience fast growth, extremely high
profit margins and enjoy majority market share. Most of the initial demand for the game is coming from
males ages 13-17 (33%) and ages 18-24 (38%). Women account for ~ 18% of the total demographics. The
majority of the fan base are in quickly developing economies of Southeast Asia, Latin America and in some
areas of Western Europe.
VISION

Our vision is to break the mold and re-state the standard for MMORPG gaming. Similar to the platforms
that preceded MMOTRPG, the company will carry characteristics from historically popular MMO games,
however our invented MMOTRPG segment will improve upon classics to eclipse their subscription levels.

OBJECTIVES

The company has core objectives that it must meet in order to achieve its financial objectives:

Complete a pre-release playable demo and trailer with pre-orders available.


Move into aggressive development until completion and launch an introductory event.
Raise Series (A) funding of 13 M for commercialization, global scaling and secondary games.
Release the product, support and quickly scale it in every global MMO market.

KEYS TO SUCCESS

The company has core values that it must meet in order that it will contribute to its success.

Continue the successful pre-launch popularity and interest of the game.


Successfully launch the fantasy style MMORPG game with its innovative features.
Provide game support and leverage pre-existing data to expand globally.
Gather information from users to improve the game and make second versions.
Maintain market positioning against current competition with intellectual property.

START-UP SUMMARY

The start-up period of $1 M consists of the 2014 FY, where seed-funding will be almost exclusively used
towards general operating expenses and to complete the game development and initiate testing. This
period will be extremely lean financially and rapidly focused towards the finalization of the game such
that it can be introduced onto the market and begin generating revenues immediately in 2015 FY. Funds
will also be used for the preparation of the Mezzanine Funding round of $8 M to growth the
commercialization and production towards an eventual re-purchase of shares at end of FY 3.
Startup
$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0
Expenses Assets Investment Loans

PRODUCT OVERVIEW
Nordicplan is developing an MMORPG fantasy game that will enable users to be actively engaged in their
own fantasy world with a focus on graphics quality, nearly unlimited quests that demand strategy and
interaction with other custom characters from five fractions. Our research shows that consumers desire
freedom and immersion in a virtual world that enables them to interact with other staff around the world.
We deliver this along with other key features described in the next sections and 267 innovations to the
market.

PRODUCT DESCRIPTION

The game includes key features that research demonstrates supports high adoption levels and longer,
more active gameplay along with innovative elements that the market has never seen before.

New Hardcore PvE and PvP Model: The PvE model enables players to play independently within the
environment, not requiring interaction with other players to have gameplay. The PvP model is what
MMORPG are most recognized for and fuel popularity, where the interaction with other players is the
core of the gaming experience. The combination enables the game to be still played when it is near the
end of its life cycle or the very early stages such that PvE quests always exist.

Innovative Player Types: Players want creativity in gaming experience, which is why Fantasy style games
are the most popular within MMORPG. There will be five fractions that players can choose to construct a
player that best meets their personality and contribute to a truly online gaming world with characters as
diverse as the offline realm. These characters are all designed by experts in the industry and offer a
humanistic feel with elements of fantasy.
Inspirational Storylines: The game will have a very strong storyline that will inspire users to connect with
Nordicplan and engage in a truly innovative storyline. The most popular MMO games in history have
always introduced innovations and storylines far different from anything already available. Smaller players
then create replications and perform far less in terms of profitability and user adoption.

Free to Play Model: The game will have free to play capability, meaning that users can play at no monthly
cost and be exposed to advertisements instead. This will in turn increase the paid subscribers to not be
exposed to advertisements and increase the overall global fan base. The free to play games constitute the
majority of the MMO market and demonstrate incredible market share opportunities.

INDUSTRY OVERVIEW

The MMO industry, particularly MMORPG, has some of the highest growth rates and profit margins
available out of any industry. Because of its ability to quickly scale and meet exit strategies, it remains a
profitable segment. The industry growth is focused towards a younger audience in developing economies
where internet penetration is increasing and exposing new opportunities for gaming in the region.
However, disposable incomes in these regions are small and focused around the free to play model
.Hence, the game will also focus subscription based growth and merchandise sales in Europe, the United
States and areas with higher consumption budgets of youth.

Global MMO Games Market Revenue | Per Region

NAM LATAM APAC EMEA

THE MARKET

The total revenues generated in the gaming market are $70.4B in 2013, 21% (14.9B) are from the MMO
industry with 14% growth YoY. The market for MMO games is extremely concentrated, World of Warcraft,
which we expect to outperform had 53% of the global MMO market share in 2006.
Global Games Market Revenues | Per Platform

PC Boxed Download Casual/Social Mobile Mobile Consoles

MARKET NEEDS

We have spent three years conducting research into what consumers in the MMO industry want, and our
management team are gamers passionate about creating amazing experiences in the industry. We have
determined that players want a fantasy world with a compelling storyline, extremely large number of
quests that they can fulfill with friends integrated with social media and creative characters that enable
them to express their personality to interact with other players in the virtual world. Quality graphics are
also very important as it enables are more immersive gaming experience, as demonstrated by the core
characteristics of the most popular games historically in the MMO industry.

MARKET TRENDS

There is still a considerable amount of internet penetration potential globally. This demonstrates that
there is still tremendous market potential for the MMO sector, particularly for the free to play model
where demographics may not be able to afford the subscription based models. In areas where
subscriptions can be purchased, such as North America and Europe, the subscriptions based MMO games
are growing quickly and provide another opportunity to have increased sales in the regions where internet
growth is slower.

MARKET GROWTH

The market growth is coming from two segments. The first is the North American and European economy
for subscription based MMORPG and the second is developing economies and Asian economies for the
free to play model. This offers diversified revenues and game adoption maximization in each respective
region.
MARKET SEGMENTATION

Our Facebook followers demonstrate that the majority of our potential users will be males between ages
13 34. However, a considerable amount will also come from females with the same age distribution. We
have segmented our market based on gamer profiles and value drivers. Much of our existing traffic is
coming from Indonesia, Brazil, the United States and areas within Europe, the Middle East and Southeast
Asia.

Casual Gamer: A casual gamer is a player whose time or interest in playing games is limited. Casual gamers
tend to play games designed for ease of gameplay and don't spend much time playing more involved
games. The genres that casual gamers play vary, and they might not own a specific video game console to
play their games. Casual gamer demographics vary greatly from those of other video gamers, as the typical
casual gamer is older and more predominantly female.

Core Gamers: A core or mid-core gamer is a player with a wider range of interests than a casual gamer
and is more likely to enthusiastically play different types of games, but without the amount of time spent
and sense of competition of a hardcore gamer. The mid-core gamer enjoys games but may not finish every
game they buy, doesn't have time for long MMO quests, and is a target consumer.

Hardcore Gamer: This is where our dedicated fan base will rest. Hardcore gamers extend gaming into
their lifestyle and may represent the stereotypical game geek. They are frequent purchasers of games,
prefer to expend significant time on games, and are more likely to try to "master" their games by
completing as many objectives as possible. Hardcore gamers may take part in video game culture such as
competitions, events and conventions. Competitions may involve organized tournaments, leagues, or
ranked play integrated into the game.
The hardcore game model, in contrast, are games that are more engaging and demand more time on the
end of the user. They often consist of upgrades, ongoing storylines and several quests. The levels of
difficulty can also be greater for hardcore games, which enables the game to be tailored to the unique
performance of every player. Within our game the player vs. environment capability enables us more
control over the difficulty level.

STRATEGY & IMPLEMENTATION SUMMARY


The initial focus of Nordicplan is to raise $1 M in order to finance the payroll of the development team,
experts in the industry that have worked on major game releases internationally. The funding will also
cover the pre-release sales and initial kickstarter revenue campaign for pre-release game demos and beta
testing. The kickstarter will consist of special competitions to facilitate initial demand and convert the
existing social media users onto loyal game players.

The company will later request $13 M in order to begin commercialization and global sales of the game
and continue to refine the content based on the feedback of its users. It will have multiple sources of
revenues consisting of advertisements with the free to play model, subscriptions for those that prefer to
avoid advertisements and box sales of the actual game to be played online. Merchandise will also be sold
in electronic format and able to be purchased on the website.
MANAGEMENT TEAM

John Doe Chief Executive Officer

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Susan Miller Chief Operating Officer


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Kevin Jones -Chief Financial Officer


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Adrian Wilcourt Legal Compliance


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ORGANIZATIONAL CHART

Adrian
Board/Investors
Wilcourt/Legal

John Doe/CEO

Susan Kevin
Miller/COO Jones/CFO

Marketing
Sales Director Accounting
Director

Sales Reps Collections


SWOT ANALYSIS
Strengths

Invented the MMOTRPG market, which PC gamer will write an article over (including the game).
This enables us mastery over the MMOTRPG segment as the pioneers and innovators.
Some of the best staff in the gaming industry that have worked on major international game
productions/releases and have extensive industry experience. .
Introduction of over 200 innovative features, a compelling storyline and content.
Ability of the free to play or subscription model, enabling targeting of both developing economies
and larger more mature markets with slower growth and higher disposable income.
Five fractions and character design features that enable users to express their characters
personality and interact in a truly virtual world with diverse characters.

Weaknesses

The game still requires development and is not yet ready for commercialization, therefore it must
operate swiftly and with a lean budget until it is introduced.
The game introduction must be successful and there is much emphasis placed on this period as it
will be its first massive exposure to the market.

Opportunities

There are already over 180,000 social media followers, which will be relatively easy to convert
into game players, given that they have already expressed interest.
The website traffic is dispersed globally, demonstrating both an interest and a presence in Asian
markets, Latin American markets, North America and European markets.
The overall MMO market is quickly growing, particularly in developing markets and the internet
penetration is still not saturated, enabling strong future market growth.
The most popular genera of the MMO segment is fantasy, which the game delivers in a fantasy
style environment with massive amounts of gaming content and quests.

Threats

The market is highly concentrated and also depends on existing games on the market. If a game
is released with enormous popularity just before Nordicplans product, it could compete fiercely
for market share.
The overall gaming and technology industry is rapidly changing and it is hard to forecast the future
of the gaming technology industry and adapt to changes compared to more traditional economy
markets.

VALUE PROPOSITION

Gamers enjoy playing MMO games that provide an immersive fantasy role playing experience that enables
them to interact with their friends, the liberty to pursue quests that interest them with an innovative
storyline, customize their character and gain a reputation on the game to keep them playing more. These

14
elements both build an addictive and sharing game experience that historys most popular MMORPG
games have all shared.

World of Warcraft has reached over 7 million subscribers and is among the most popular games to have
ever been released in history. Our model is very similar to World of Warcraft, which shares all elements
described above to validate market demand. Users interact in a virtual world to fulfill quests, combat each
other, join factions with unique characters and rise among the ranks. The game requires a subscriptions
to be paid, which ours does not if users are exposed to advertisements. Moreover, our game takes the
successful characteristics of World of Warcraft and brings it into a new atmosphere, with new characters,
an innovative storyline and compelling quests.

MMORPG COMPETITIVE COMPARISON

Blizzard: Blizzard Entertainment, Inc. is an American video game developer and publisher founded on
February 8, 1991, under the name Silicon & Synapse by three graduates of UCLA, Michael Morhaime, Allen
Adham and Frank Pearce and is currently a subsidiary of American company Activision Blizzard. It holds
ownership for the World of Warcraft and Diablo games. These games are similar to Nordicplans product
with the fantasy MMORPG style with quests and character interaction, however Nordicplan offers an
innovative fantasy world and storyline that users cannot experience in either of these games.

NCSoft: NCSOFT is a South Korea-based online, video and mobile game development company that has
produced Lineage, City of Heroes, WildStar, Guild Wars and Aion.

Shanda: Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, creator of Final
Fantasy and publisher in China. They are the creators of Maple Storm.

Nexon: Nexon Co. Ltd. is a South Korean developer and publisher of video games. Founded in Seoul
in1994, Nexon's headquarters is currently located in Tokyo, Japan.

Tencent: Tencent Holdings Limited is a Chinese investment holding company whose subsidiaries provide
mass media, entertainment, Internet and mobile phone value-added services, and operate online
advertising services in China. They are responsible for many free to play MMORPG games, its
headquarters are in Nanshan District, Shenzhen.

The current MMORPG industry is very concentrated with the most popular games on the market and
subsequent versions released. However, users will often switch when a when a new game enters the
market, particularly if it offers an innovative experience unlike anything else on the market.

15
MARKETING PLAN
Pricing Strategy

The game will primarily remain under the free to play model with money from advertisements, as this will
create a larger overall fan base and bring in more overall revenues. The revenues will be diversified from
subscriptions of users, box sales of the game and merchandise.

120 for a subscription price valid for one year.


The box price of the game will be 29, sold on the website.
Merchandise will be sold for 40 on average, 50 for e-merchandise.
Advertising will be sold on the website that free to play gamers will be exposed to.

PROMOTION STRATEGY
Promotional Offers & Contests

Several timed events have been planned marketing events have been planned that tie in the game with
the opportunity to receive rewards. A name the game idle feature will be integrated, in which games are
invited to receive riddles over a 12 month period and guess the name of the game. Winners of this riddle
will receive discounts and other incentives. This is estimated to bring in 5 M projected social media fan
base.

Another competition is the opportunity for users to win a branded car of the game for one month, which
they can win through engagement in competitions on the webpage and interacting with the website. This
is also estimated to bring in another 5 M into the social media fan base and drive traffic to the website
through the consumer publically driving the car around.

Current MMORPG Market Share

8%
5%
7% 30%

12%
38%

AAA MMOTRPG Games Blizzard NCSoft Shanda Nexon Tencent

16
Public relations

There will be several low cost staff hired with gaming experience to talk about the product as gamers in
different forums, spark engagement and interact with other gamers to spark interest in Nordicplans
game. In addition to the more user focused environment, we will also release market changes and updates
to the press and fan base to spread awareness and maintain interest of potential players before the game
has been released to maximize pre-order sales and immediately convert those potential users when the
game is released.

Social Media

We believe that the best marketing method is word of mouth, discussions between friends and other
consumers that serve as conversions and referrals. We will leverage this through our social media
channels of Twitter, Facebook and YouTube along with all other popular channels to help spread this word
of mouth through shared content and giving the users something to share and discuss in relation to the
game. We can also retain them for subsequent releases of the game in the future.

Targeted Advertising

With a highly segmented audience focusing on hardcore MMORPG gamers, we can have a strong ROI in
both Internet advertising and targeted physical advertising. While this advertising method can be
expensive, our audience is also very reactive towards new games and always easily alerted regarding new
gaming experiences, as opposed to other advertising in different industries where people are frequently
non-responsive to new product releases.

Website Strategy

The website will be very similar to other MMORPG websites, serving as a branding hub, social media hub,
and place to hear news/share content amongst other users and view recordings or promos of the game.
During the kickstarter and pre-release period it will serve as the place to be if users want to receive
discounts, prizes and other promotional offers by competing in challenges or interacting with early
adopters. Having more content and user engagement will also help us later down the road as we analyze
website traffic to improve our web metrics and improve our long-term search engine rankings.

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FINANCIAL FORECASTS
Nordicplan AB is a Swedish Public Company that in the process of raising Seed Capital in the amount of
$1,000,000. This seed capital will be applied towards general operating expenses to finalize the
development and release a playable demo if its game, fund the initial Kickstarter event and a playable
trailer.

The funding will also be used as a preparation for a second round of $8,000,000 to be raised for the
commercialization of the game and global scaling, along with research and development of the future
game sequel. The investment will be structured at 1,000 common shares with a par value of $850 per
share. Each share will receive an annual interest accrual of 5% for three years. Nordicplan will repurchase
all shares at the end of the third year, along with all accrued interest for a total repayment of $977,500,
or $977.50 per share.

START-UP SUMMARY

The start-up period covers the 2014 FY, pre-revenue generation for the game. Our expenses are focused
around completing the development of the game very financially lean and schedule.

Startup Expenses Startup Liabilities


Wages & Payroll 323,610.00 Liabilities and Capital
Team Asset Leasing 162,400.00 Current Borrowing -
Group Asset Leasing - Long-Term Liabilities -
OTC - Accounts Payable -
Insurance/Rent/Power 22,464.00 Other Current Liabilities -
Total Startup Expenses 508,474.00
Startup Investments
Startup Assets Planned Investment
Cash on Hand 13,491,526.00 Owner -
Total Startup Assets 13,491,526.00 Investor 14,000,000.00
Total Planned Investment 14,000,000.00
Total Requirements
Total Startup Expenses 508,474.00 Startup Funding
Total Startup Assets 13,491,526.00 Total Liabilities -
Total Requirements 14,000,000.00 Total Planned Investment 14,000,000.00
Total Funding 14,000,000.00

18
FINANCIAL HIGHLIGHTS

Our management team has extensive experience managing budgets, conducting budgeting and preparing
forecasts. We have high confidence based on this experience that there will be little deviation for our
forecast of both expenses and revenues. Revenue from each product and its growth will depend upon the
stage of the game, the revenue forecast section outlines growth rate and profit margin expectations.
Financial Highlights ($000)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 454 454 454 454 454 454 454 454 454 454 454 454 5450 174000 1187520 3590080 3054320
Gross Margin 385 385 385 385 385 385 385 385 385 385 385 385 4615 121800 853264 2601056 2215024
Operating Expense 299 299 299 299 299 299 299 299 299 299 299 299 3588 7211 538541 1864390 1598822
EBITDA 65 65 65 65 65 65 65 65 65 65 65 65 781 114083 313923 735399 614192
Net Profit 38 38 38 38 38 38 38 38 38 38 38 38 455 91097 250969 665421 546233

Gross Margin/Revenue 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 70% 72% 72% 73%
EBITDA/Revenue 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 66% 26% 20% 20%
Net Profit/Revenue 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 52% 21% 19% 18%

Net Cash Flow 65 65 26 65 65 26 65 65 26 65 65 26 625 91266 251139 665590 546403


Cash Balance - Ending 65 130 156 221 286 312 377 442 468 534 599 625 625 91891 343030 1008620 1555023

Projected Operating Highlights By Year ($000) Projected Revenues By Year ($000)


4000000 4000000
3500000 3500000
3000000
3000000
2500000
2500000
2000000
1500000 2000000
1000000 1500000
500000 1000000
0
500000
Year 1 Year 2 Year 3 Year 4 Year 5
0
Revenue Gross Margin EBITDA Net Profit Year 1 Year 2 Year 3 Year 4 Year 5

Projected Cash Flow By Year ($000) Projected Net Income By Year ($000)
1800000 700000
1600000
600000
1400000
1200000 500000
1000000
800000 400000
600000 300000
400000
200000 200000
0 100000
Year 1 Year 2 Year 3 Year 4 Year 5
0
Net Cash Flow Cash Balance Year 1 Year 2 Year 3 Year 4 Year 5

19
FINANCIAL INDICATORS

Financial Indicators
Year 1 Year 2 Year 3
Profitability %'s:
Gross Margin 85% 70% 72%
Net Profit Margin 8% 52% 21%
EBITDA to Revenue 14% 66% 26%
Return on Assets 3% 86% 70%
Return on Equity 3% 86% 70%

Financial Indicators
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Year 1 Year 2 Year 3

Gross Margin Net Profit Margin EBITDA to Revenue Return on Assets

20
REVENUE FORECAST

Nordicplans cost of revenues range depending on the product being offered, however they will be
consistent across all geographies and channels. Our forecasts do not account for software piracy risk that
may change forecasts depending on region, as MMO games cannot be pirated because of their online
usage.

Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Forecast
Kickstarter Event 4,000,260 - - - -
Pre-Orders 1,450,000 174,000,000 - - -
E-Merchandise - - 200,000,000 800,000,000 700,000,000
Merchandise - - 160,000,000 640,000,000 560,000,000
Subscribers - - 479,520,000 1,918,080,000 1,678,320,000
Box Sales - - 348,000,000 232,000,000 116,000,000
Total Revenue 5,450,260 174,000,000 1,187,520,000 3,590,080,000 3,054,320,000

Direct Cost of Revenue


Kickstarter Event 400,026 - - - -
Pre-Orders 435,000 52,200,000 - - -
E-Merchandise - - 6,000,000 24,000,000 21,000,000
Merchandise - - 80,000,000 320,000,000 280,000,000
Subscribers - - 143,856,000 575,424,000 503,496,000
Box Sales - - 104,400,000 69,600,000 34,800,000
Subtotal Cost of Revenue 835,026 52,200,000 334,256,000 989,024,000 839,296,000

Year 1 Revenue Monthly


454,300
454,280
454,260
454,240
454,220
454,200
454,180
454,160
454,140
454,120
454,100
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 By Year
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Year 1 Year 2 Year 3 Year 4 Year 5

21
PERSONNEL FORECAST

Personnel Forecast
Year 1 Year 2 Year 3 Year 4
Personnel Count
Senior Management 4 4 7 7
Project Management 9 13 15 19
Concept Design Team 23 28 36 50
High End Graphics Team 28 28 28 54
Development Team 32 32 32 64
Communication 4 6 16 32
Support 8 10 44 88
Total Personnel 108 121 178 314
Personnel Salaries
Senior Management 69000 69000 115000 115000
Project Management 87400 103960 159160 177560
Concept Design Team 128340 156400 183080 260360
High End Graphics Team 197800 197800 197800 377200
Development Team 176640 176640 176640 353280
Communication 18400 29440 69920 139840
Support 38640 45080 180320 360640
Total Salaries 716,926 778,320 1,081,920 1,783,880
Additional Costs
Payroll Expenses 214866 223496 324576 535164
Total Salary Expenses 931,792 1,001,816 1,406,496 2,319,044

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 5,450,260.00 174,000,000.00 1,187,520,000.00 3,590,080,000.00 3,054,320,000.00


Subtotal Cost of Revenue 835,026.00 52,200,000.00 334,256,000.00 989,024,000.00 839,296,000.00
Total Cost of Revenue 835,026.00 52,200,000.00 334,256,000.00 989,024,000.00 839,296,000.00

Gross Margin 4,615,234.00 121,800,000.00 853,264,000.00 2,601,056,000.00 2,215,024,000.00


Gross Margin/Revenue 85% 70% 72% 72% 73%

Expenses

Team Asset Leasing 322,028.00 522,580.00 567,580.00 699,128.00 1,222,904.00


Group Asset Leasing 1,000,000.00 1,400,000.00 1,500,000.00 243,000,000.00 213,000,000.00
Insurance/Rent/Power 65,880.00 88,344.00 89,208.00 154,440.00 155,304.00
OTC 200,000.00 200,000.00 2,000,000.00 5,000,000.00 10,000,000.00
Sales & Marketing 2,000,000.00 5,000,000.00 225,628,800.00 682,115,200.00 580,320,800.00
Support/Operations/Distribution - - 190,003,200.00 574,412,800.00 488,691,200.00
HW and Link - - 118,752,000.00 359,008,000.00 305,432,000.00
Total Operating Expenses 3,587,908.00 7,210,924.00 538,540,788.00 1,864,389,568.00 1,598,822,208.00
Wages & Payroll 246,369.83 506,100.29 799,929.32 1,267,117.47 2,009,946.62
Depreciation, Amortization & Taxes 325,682.57 22,986,086.47 62,954,147.87 69,978,748.40 67,958,623.91
Net Income 455,273.60 91,096,889.23 250,969,134.81 665,420,566.13 546,233,221.46
Net Income/Revenue 8% 52% 21% 19% 18%

PROJECTED PROFIT AND LOSS

22
PROJECTED CASH FLOW

Pro Forma Cash Flow


Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Cash Balance - 624,764.94 91,891,145.50 343,029,771.65 1,008,619,829.11
Cash Inflows
Income from Sales 5,450,260.00 174,000,000.00 1,187,520,000.00 3,590,080,000.00 -
Accounts Receivable - - - - -
Total Cash Inflows 5,450,260.00 174,000,000.00 1,187,520,000.00 3,590,080,000.00 3,054,320,000.00

Cash Outflows

Investing Activities
New Fixed Assets Purchases - - - - -
Inventory Addition to Bal.Sheet - - - - -
Cost of Sales 835,026.00 52,200,000.00 334,256,000.00 989,024,000.00 839,296,000.00

Operating Activities
Salaries and Wages 246,369.83 506,100.29 799,929.32 1,267,117.47 2,009,946.62
Fixed Business Expenses 3,587,908.00 7,210,924.00 538,540,788.00 1,864,389,568.00 1,598,822,208.00
Taxes 156,191.23 22,816,595.14 62,784,656.54 69,809,257.07 67,789,132.58

Financing Activities
Loan Payments - - - - -
Line of Credit Interest - - - - -
Line of Credit Repayments - - - - -
Dividends Paid - - - - -

Total Cash Outflows 4,825,495.06 82,733,619.44 936,381,373.85 2,924,489,942.53 2,507,917,287.20


Cash Flow 624,764.94 91,266,380.56 251,138,626.15 665,590,057.47 546,402,712.80
Operating Cash Balance 624,764.94 91,891,145.50 343,029,771.65 1,008,619,829.11 1,555,022,541.91
Ending Cash Balance 624,764.94 91,891,145.50 343,029,771.65 1,008,619,829.11 1,555,022,541.91

Year 1 Cash
700,000

600,000

500,000

400,000

300,000

200,000

100,000

-
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Net Cash Flows Cash Balance

23
PROJECTED BALANCE SHEET

Pro Forma Balance Sheet


Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash 624,765 91,891,146 343,029,772 1,008,619,829 1,555,022,542
Other Current Assets 338,983 169,491 - (169,491) (338,983)
Total Current Assets 963,748 92,060,637 343,029,772 1,008,450,338 1,554,683,559

Long-term Assets
Long-term Assets 13,491,526 13,491,526 13,491,526 13,491,526 13,491,526
Accumulated Depreciation - - - - -
Total Long-term Assets 13,491,526 13,491,526 13,491,526 13,491,526 13,491,526
Total Assets 14,455,273 105,552,162 356,521,297 1,021,941,863 1,568,175,085

Liabilities and Capital


Current Liabilities
Accounts Payable - - - - -
Current Borowing - - - - -
Other Current Liabilities - - - - -
Subtotal Current Liabilities - - - - -

Long-term Liabilities - - - - -
Total Liabilities - - - - -

Common Stock 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000


Retained Earnings 455,274 91,552,163 342,521,298 1,007,941,864 1,554,175,085
Total Capital 14,455,274 105,552,163 356,521,298 356,521,298 1,568,175,085
Total Liabilities and Capital 14,455,273 105,552,162 356,521,297 1,021,941,863 1,568,175,085

Breakeven Analysis

$18,000,000

$16,000,000
COST-VOLUME-PROFIT

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0
70000

100000

110000

120000

130000

140000

150000

160000
0

10000

20000

30000

40000

50000

60000

80000

90000

NET UNITS

24
SENSITIVITY ANALYSIS

Best Case Scenario (Revenue Increase by 15% )


Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 6,267,799.0 200,100,000.0 1,365,648,000.0 4,128,592,000.0 3,512,468,000.0
Cost of Goods Sold 960,279.9 60,030,000.0 384,394,400.0 1,137,377,600.0 965,190,400.0
Gross Margin 5,307,519.1 140,070,000.0 981,253,600.0 2,991,214,400.0 2,547,277,600.0
Gross Margin/Revenue 85% 70% 72% 72% 73%
Operating Expenses 3,587,908.0 7,210,924.0 538,540,788.0 1,864,389,568.0 1,598,822,208.0
EBIT 1,719,611.1 132,859,076.0 442,712,812.0 1,126,824,832.0 948,455,392.0
EBIT/Revenue 27% 66% 32% 27% 27%

Worst Case Scenario (Revenue Decrease by 15% )


Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 4,632,721.0 147,900,000.0 1,009,392,000.0 3,051,568,000.0 2,596,172,000.0
Cost of Goods Sold 709,772.1 44,370,000.0 284,117,600.0 840,670,400.0 713,401,600.0
Gross Margin 3,922,948.9 103,530,000.0 725,274,400.0 2,210,897,600.0 1,882,770,400.0
Gross Margin Revenue 85% 70% 72% 72% 73%
Operating Expenses 3,587,908.0 7,210,924.0 538,540,788.0 1,864,389,568.0 1,598,822,208.0
EBIT 335,040.9 96,319,076.0 186,733,612.0 346,508,032.0 283,948,192.0
EBIT/Revenue 7% 65% 18% 11% 11%

Revenue
4,500,000,000.00

4,000,000,000.00

3,500,000,000.00

3,000,000,000.00

2,500,000,000.00

2,000,000,000.00

1,500,000,000.00

1,000,000,000.00

500,000,000.00

-
Year 1 Year 2 Year 3 Year 4 Year 5

Best Case Most Likely Worst Case

25
APPENDIX

Year 1 Profit & Loss


Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue 454,163 454,163 454,163 454,163 454,163 454,163 454,163 454,163 454,193 454,223 454,253 454,283
Subtotal Cost of Revenue 69,583 69,583 69,583 69,583 69,583 69,583 69,583 69,583 69,586 69,589 69,592 69,595
Total Cost of Revenue 69,583 69,583 69,583 69,583 69,583 69,583 69,583 69,583 69,586 69,589 69,592 69,595

Gross Margin 384,580 384,580 384,580 384,580 384,580 384,580 384,580 384,580 384,607 384,634 384,661 384,688
Gross Margin/Revenue 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%

Expenses
Team Asset Leasing 26,836 26,836 26,836 26,836 26,836 26,836 26,836 26,836 26,836 26,836 26,836 26,836
Group Asset Leasing 83,333 83,333 83,333 83,333 83,333 83,333 83,333 83,333 83,333 83,333 83,333 83,333
Insurance/Rent/Power 5,490 5,490 5,490 5,490 5,490 5,490 5,490 5,490 5,490 5,490 5,490 5,490
OTC 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667
Sales & Marketing 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667
Support/Operations/Distribution - - - - - - - - - - - -
HW and Link - - - - - - - - - - - -
Total Operating Expenses 298,992 298,992 298,992 298,992 298,992 298,992 298,992 298,992 298,992 298,992 298,992 298,992

EBIT 85,588 85,588 85,588 85,588 85,588 85,588 85,588 85,588 85,615 85,642 85,669 85,696
EBIT/Revenue 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19%