Design & Development Plans

 Development Status & Tasks

 Difficulties & Risks
 Product Improvement & New Products
 Costs
 Proprietary Issues
Development Status & Tasks

 Formation of technical team

 Development of prototype
 Testing
 Patenting
Difficulties & Risks

 Capital Issues
 Storage pace limited by the number of languages
 Translation Issues
 Efficiency of translation
 Speed Issues
 The speed is ideally instantaneous but it is not practical
Product Improvement & New Products

 Software updates
 Additional language support
 Integration of microphone and sound systems for larger
customers demands (universities)
Costs

 Translating Software and editor

 Microphone, microprocessor, speaker, LCD, etc.
 Salaries (management and testing pay)
 Production line
 Registered patent agent and patenting fees
Proprietary Issues

 The software used for language translation would be bought

with rights to make script changes
 No similar patents has been found
 Our competitive advantage!
Manufacturing & Operations Plans
 Operating Cycle
 Geographical Location
 Facilities & Improvements
 Strategy & Plans
 Regulatory & Legal Issues
Operating Cycle

 X
Geographical Location

 X
Facilities & Improvements

 X
Strategies & Plans

 X
Regulatory & Legal Issues

 X
Management Team
 Organization
 Key Management Personnel
 Management Compensation & Ownership
 Other Investors
 Employment and Other Agreements and Stock Option and
Bonus Plans
 Board of Directors
 Other Shareholders, Rights & Restrictions
 Supporting Professional Advisors & Services
Shannon

 Superintendent
 leader of the team and will monitor the progress of the entire project
 B.Sc. Mechanical Engineering
 manage accounts and financial of the project and arrange effective
meetings
Mohamed

 Critical Analyst
 calculate the risks and problems and deal with all the legal issues
affiliated with project
 B.Sc. Chemical Biomedical Engineering
 look after the spinoff technology
Ravish

 Production Manager
 project management experience from his work two work terms at Suncor
Energy
 B.Sc.. Electrical Engineering
 produce the idea of Instant translating device into a working model
known as Trans-Vo-Text
Scott

 Finance and Group Controller

 assign salaries of the members of the management team and will set up
the budget for the business
 B.Sc. in Chemical Engineering
 managed various projects at Companies like ATCO Gas, AECON
Industrial and Ainsworth Engineering
Effat
 Advance Information and Technology Expert
 analyze similar existing technologies for Trans-Vo-Text and will help in improving
the device
 B.Sc. Electrical Engineering
Ahmed
 Marketing manager
 look for present and potential customers, initially in the domestic market and later
in the international market as the business progresses
 B.Sc.. Chemical Engineering
 has good communication skill and wide social network
Management Team Lags
 At the moment, it consists of Engineers only
 Legal Advisor
 Accountant
 Other business and entrepreneurship experts may be hired
Overall Schedule
 The entire schedule has been divided into 4 different
phases:
 Phase I: Incorporation phase
 Phase II: Production phase
 Phase III: Profitability phase
 Phase IV: Future plans
 Gantt Chart
Critical Risks
 No previous operating experience
 Financial projection too low
 Sale projections high
 Competitors releases a product that is similar
The Financial Plan
 Actual Income Statements & Balance Sheets
 Pro Forma Income Statements
 Pro Forma Cash Flow Analysis
 Breakeven Chart & Calculation
 Cost Control
Actual Income Statements & Balance Sheets

 Systran (leading supplier of language translating software)

 Pro Forma Income Statements

2010 2011 2012 2013

Year 0 1 2 3

Revenues $ - $ - $ 300,000 $ 690,000

Expenses $ - $ 227,100 $ 301,700 $ 301,700
Patent $ - $ 10,000 $ - $ 20,000
CCA
Equipment (30%) $ - $ 4,279 $ 7,275 $ 4,193
Loan (Interest
15%) $ - $ (4,280) $ (21,467) $ (1,649)
Taxable Income $ - $ (245,659) $ (30,442) $ 362,458
Income Tax (40%) $ - $ (98,263) $ (12,177) $ 144,983
Net Income $ - $ (147,395) $ (18,265) $ 217,475
 Pro Forma Balance Sheets
Cost/Unit ($/Unit) Units Price ($)
Office
Computer $ 1,000 5 $ 5,000
Printer $ 500 1 $ 500
Scanner $ 100 1 $ 100
Cost/Month ($/Month) Months Price ($)
Phone Rental
$ 20 4 $ 80
Fax Round of Funding Seed
$
Office Round 1 100 Round 2 1 Round
$ 3100 Round
$ 4 Day B4 IPO800 12 $ 9,600
TableYear $ 1 2
200 32 $ 4004 5 6
Phone $ 100 12 $ 1,200
ChairInvestor Own = Total all rounds $ 40% 62%75 68% 8 $ 600
72% 64% 58%
Projector
2 Founders Own $ 40% 1,000
22% 20% 2 $ 2,00018% 16% 14%
TotalVPs
Office
& Empliyees Own  
Internet 20% 16%   12% $ 8,780 11% $ 20% 28%25 12 $ 300
Total Company Utilities100% 100% 100% 100% $ 100% 100%
200 12 $ 2,400
R&D Stationary $ 100 12 $ 1,200
Software code writing software $ Rental
Total 200 1 $ 200     $ 14,700
Co Sales $M
Microphone $ $ - $ - 10 $ 1.00 11 $$ 19.00 110 $ 33.25 $ 39.90
Processor
Co Value Pre-Money $M $ $ 1.00 $ 5.0050 $ 95.00 11 $$ 190.00 550 $ 285.00 $ 313.50
Display $ 20 11 $ 220
BatteryCash from Investors $M $Salaries
$ 0.50 $ 2.5020 $ 9.50 11 $$ 19.00 220 $ 15.68 $ -
Input/output
Co Valueparts
Post-Money $M $Prototype
$ 1.50 development
$ 7.50 and
5 $testing
104.50 (2 Staff)
11 $$ 209.0055 $$ 300.68 $ 6,000
313.50 12 $ 72,000
Power Package Management
$ team (3 Staff)
20 1 $ 20 $ 12,000 12 $ 144,000
Co
Shelves Value/Co Sales $ $ - $ - 50 $ 104.50 2 $$ 11.00 100 $ 9.04 $ 7.86
Total Shares Opportunity
5,000 promotion
10,000and consultant (2 Staff)
12,000 1 $ 14,000 $ 16,000 5,000
18,000 12 $ 60,000
Electric and audio oscilloscopes and meters $ 500 500
Plastic $/Share
case manufacturing unit Total
$ $ Salaries
- $ 7,000
- $ 8.71 1 $$ 7,000 0.79  $ 0.57 $ 0.44   $ 276,000
Miscellaneous parts
Investors' and shop supplies
Multiple $ 55.30 500
11.06 6.08 1 $ 500
3.35 1.84 1.00
TotalPercent
R&D Return/Yr   130% 98%   88% $ 9,475
48% 39% 0%
Marketing
Travel $ 10,000
Licensing and search for venture capitalist
PatentWealth: $000
(Canadian filling)
Advertising
$ 150 1 $ 150 Day B4 IPO $ 1,000
Seed
Patent examination Total
$ Marketing 200 1 $ 200   $28,000   $ 11,000
Final Round 1 patent
issuing of $ 150 1 $ 150 $30,800
Maintenance
Round 2fee $ 75 1 $ 75 $46,200
TravelRound 3 $ Yearly expenses1,000
Total 9 $ 9,000   $41,580   $ 301,700
OtherRound
business
4 costs $ 700 1 $ 700 $20,790
TotalInvestors
Licensing Own = Total all rounds     $ 10,275 $167,370

Total Fixed Expenses     $ 28,530

Pro Forma Cash Flow Analysis
Breakeven Chart & Calculation

 MARR = 41%
 Break even will occur on the 3rd quarter of 2012
 Variations:
 High revenues
 Small expenses
 Fixed costs, R&D and testing are initial
 Beyond 3 years salaries and rents are predominant
Cost Control

 Obtained semi-annually
 Experiences management team work efficiently
 Budget:
 Time
 Money
 Reliable financial sources and trends
Proposed Company Offering
 Desired Financing
 Offering
 Capitalization
 Use of Funds
 Investors’ Return
Desired Financing

 initial investment of $227,100 per year is required for the first

and second year of business
 investment will be increased to $301,700 per year to improve
the quality of the business by increasing marketing funds
 40% initial investment which make a total of $90,840 will be
provided by angel investors (friend, family, government and
investors)
Offering

 price of Trans-Vo-Text is estimated to be $500 per unit

 Assuming that the sales will grow and therefore generate
80% profit, the estimated payback period is three years and
six months
Capitalization

 the shares of the company will be given to the members of

the management team and thus each member will hold a
share of 16.67%
 40% of the shares will be in hands of the investor
Investors’ Return

 Investors Ownership:
 40%
 62%
 68%
 72%
 64%
 58%
 Investor Return:
 130%
 98%
 88%
 48%
 39%
 0%
Questions?