Techpay.mobi mobile payment systems business plan.

CONFIDENTIAL

TechPay Mobile Payment Systems

TechPay -The easy way to shop and pay

Business Plan Prepared February 2016

Contact Information

Ross Markbreiter

[email protected]

866-607-1044

http://www.techpay.mobi

mailto:[email protected]

http://www.techpay.mobi/


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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with

third parties without the express written consent of the plan author.

Table of Contents

Executive Summary .................................................................................................................... 1

Who We Are ......................................................................................................................... 1

Financial Summary ............................................................................................................. 2

Company ....................................................................................................................................... 4

Management Team ............................................................................................................. 4

Products and Services ................................................................................................................. 9

Products and Services ........................................................................................................ 9

Competitors........................................................................................................................ 10

Target Market ............................................................................................................................ 11

Market Overview .............................................................................................................. 11

Market Needs .................................................................................................................... 13

Strategy and Implementation ................................................................................................. 14

Marketing Plan .................................................................................................................. 14

Milestones .......................................................................................................................... 16

Financial Plan ............................................................................................................................ 18

Generation of Revenue-Based on 2,774 stores and 100,000 users ............................ 18


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Projected Revenue Forecast ............................................................................................ 20

Personnel Plan ................................................................................................................... 22

Budget ................................................................................................................................. 23

Financial Statements ................................................................................................................ 25

Profit and Loss Statement ............................................................................................... 25

Balance Sheet ..................................................................................................................... 28

Cash Flow Statement ........................................................................................................ 30


1



Executive Summary

Who We Are

TechPay Mobile Payment Systems™, headquartered in Dana Point, California, is a

software development company.

TechPay has developed SwiftPay™, a revolutionary, proprietary mobile platform

designed specifically for grocery stores and supermarkets to benefit both the consumer

and the merchant.

Our product SwiftPay™, is a software solution that integrates into a merchant’s retail

system, helping to streamline the shopping process and save consumers time and

money.

This new standard of technology is not just a "Wallet" but a complete Point of Sale

(M-POS) system. SwiftPay™ allows consumers to enter their personal loyalty cards,

make a shopping list and scan manufacturer coupons from the internet, retailer

websites, retailer mobile APPS, newspapers, magazines and mailers. Once logged in

with a vendor’s loyalty card, SwiftPay™ shows discounts to the consumer, in real time

via their mobile device (apps available in both iOS and Android at no charge).

With one simple scan, the entire checkout process is complete.

Our primary customers are retail businesses that accept credit cards and/or debit cards;

and consumers, most specifically, moms.

TechPay is proud to have Kathy Ireland as our Brand Ambassador. Kathy has been a

longtime advocate for women, with Associated Press calling Kathy, “best friend to

working moms”. Kathy’s mission statement is “finding solutions for families,

especially busy moms”. And, SwiftPay is one of the ways busy moms are able to

streamline grocery shopping and save money all at the same time!

The kathy ireland brand is listed as the 31st most powerful brand globally, by License

Global Magazine, with annual merchandise sales of $2 billion, according to Forbes


2



Magazine. Kathy has been named #33 on Forbes 2015 Inaugural List of America's 50

Richest Self-Made Women. Kathy gracefully balances the roles of wife, mother, author,

humanitarian, activist and Chief Designer and CEO of kathy ireland Worldwide.

SwiftPay™, processes credit cards/debit cards, sends transactions via email, and saves

all sales data for both consumer and retailers. In addition, the system provides scan

statistics, which can analyze all sales using a private web portal, giving the retailer

insight into the buying patterns of each customer. And, no specific device or merchant

terminal is required; it can run on any system as it is software based.

There are three different ways to shop with a mobile device. 1. scan items and create a

QR code with payment information that was entered on the website or APP. Then

checkout using a pin and basket is saved and email receipt sent. 2. the cashier scans

item and uses the "pay now" button on app they chose payment option. 3. Scan, Pay

and Go. Consumer doesn’t have to see a cashier at all. Merchant can see sales, scan data

and run banner campaign from their portal.

TechPay offers retailers the ability to customize and create a Mobile Payment system

for any company, along with banner ad capabilities, which can be considered as an

additional source of revenue.


3



Financial Summary

Overview

TechPay’s revenue will be generated based off a percentage on each credit card,

debit card or check sale, as well as license fees, maintenance packages, banner ads

and integration fees.

Projected Financial Highlights by Year


4



Company

Management Team

Ross Markbreiter Founder - Inventor - Chief Executive Officer

Ross Markbreiter is an entrepreneur and visionary, with executive experience in all

facets as CEO/CTO. He has been consistently ahead of the curve in anticipating future

technology and its impact on U.S. business. Ross is a pioneer in internet technology and

ecommerce; he founded and built The World Wide Web Store - one of the first full

service companies to setup email, and design, build and host websites in the mid 1990’s,

when the internet was still in its infancy. Mr. Markbreiter innovated the online

“shopping cart” and integrated online payment processing and merchant accounts for

his clients, before it became the norm of today’s ecommerce. He was the very first

online merchant with CardService International, now, First Data.

As an IT Director and Executive, Ross grew a now well-known startup company from

$100,000 (in annual sales) to more than $200 million in annual sales. Ross has provided

full service turnkey IT solutions, including: Virtual Gateway security; business systems

solutions (he was one of the first to facilitate client merchant accounts for online

businesses); apps for iPhones (and all other mobile devices); Domain Name

Registration; and, Search Engine Optimization (SEO).

As a visionary, Ross conceived the idea to build the new, revolutionary Mobile Payment

System “TechPay”, which will transform payment processing for retail businesses and

Mcommerce for consumers. His broad industry experience and technical knowledge

have enabled him to develop a unique, proprietary SwiftPay ™ the first technology

from TechPay Mobile Payment Systems, the most likely system of its kind to be

integrated in real world applications. In other words, his system is technically and

financially viable, intuitive (user friendly), and completely compatible with current

retail payment transaction infrastructure. TechPay will change the way the world will

shop and pay!


5



Michele Burke, Chief Operating Officer

Michele Burke brings more than 25 years’ experience in the areas of management,

operations, technology, marketing and business development.

She has most recently served as President and CEO of BC Connect, LLC, a leading

third-party software and services provider for the field services, REO and default

management industries. She pioneered the company’s unique enterprise architecture

model of systems design that enabled tiered workflow management, including multi-

level roles and rights management capabilities to meet compliance and information

security needs, and within five years went from a startup to a $10-million-dollar

company.

Prior to founding BC Connect, Michele launched The CBMB Group, an entrepreneurial

venture offering diverse strategic and integrated marketing communications expertise

to clients.

She served as Senior Vice President, Marketing for Countrywide Financial Corporation,

a former Fortune 150 Financial Services Company (NYSE: CFC), where she led all

marketing, advertising and pr initiatives for three divisions of CFC, its products and

services, and clients, for both B2B and B2C initiatives. She improved brand

consistencies, increased efficiencies and reduced time-to-market while optimizing

people, processes, and costs, saving the company $2.3 million in expenses in 2003.

Earlier in her career, Michele was on the agency side of marketing and advertising, in

which she held executive level positions for different full service marketing, advertising

and public relations agencies, developing and managing all aspects of new and existing

client relationships. Some of her clients included NASA, SpaceWeek International,

Space Center Houston, GTE (Internet Division), Nortel, Nocona and Diamond J Boots,

and Texas Children’s Hospital.


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Michele holds a Bachelor of Arts degree in Communications from Texas Tech

University, and a Jesse H. Jones Graduate School of Management Certificate from Rice

University.

Miles Robinson, Chief Development Officer

Miles Robinson became a professional drummer in his mid-teens, playing in venues

throughout Northern California, and gained extensive broadcast experience as a key

disc jockey for a well-known radio station.

Miles performed, toured and recorded with many Grammy nominated and well-known

artists. He also recorded with Motown Records, and Warner Brothers Records and, at

Gold Star Studios with members of Phil Spector’s “Wrecking Crew”.

He then joined the multi-platinum and six-Grammy award-winning musical

giant, The 5th Dimension, as the drummer, recording and touring worldwide at

exemplary venues, including performances at the White House.

Miles later moved into the world of talent management and production. He joined a

management firm that became acquired by “kathy ireland Worldwide” (kiWW), and

was instrumental in the transfiguration of that company from a talent management

entity into a multi-billion-dollar design and marketing firm.

He served as Vice President of Production for kiWW, interfacing with manufacturers,

retailers, global strategic partners in all areas of brand recognition and utilization of his

music and production skills. While with kiWW, Miles produced and directed a

multitude of kiWW’s business and consumer film and video productions, including

projects with Janet Jackson and produced Dame Elizabeth Taylor’s last performance of

“Love Letters” with James Earl Jones. He was a core team member, enabling Kathy

Ireland’s company to be estimated in value by Forbes magazine in 2012 at

approximately $2 billion dollars in retail sales.


7



Ron Feuer, Chief Strategy Officer

Ron Feuer began his career as the keyboard player for the Grammy award winning

group “The 5th Dimension”, and later became the Musical Director.

He went on to tour and perform with many distinguished artists such as Peter

Frampton, The Dixie Chicks, The Temptations, Natalie Cole, Poison, Dave Koz and

Jason Mraz.

In 2012, Ron became the Musical Director for the hit show America’s Got Talent.

He also excelled in the world of television as both a composer and executive producer,

taking home a BMI music award for the theme song he wrote for the VH1 hit series

“Scott Baio 45 & Single” and ”Scott Baio 46 and Pregnant.” Ron’s music has graced TV

shows and series on many networks including HBO, NBC, CBS, Animal Planet, Tru TV,

WE, Fox, MTV, History and Discovery Channel.

Ron Feuer Executive Producer, produced and composed the music for such films as

“The Kiss” and “Mother’s Day.” Both films garnered numerous awards on the festival

circuit.

In 2013, Miles and Ron joined forces, and started their own company, Milestone

Venture Productions (MVP). They have developed and produced many commercial

and corporate videos and presentations for companies such as Macy’s, Fox Business

News’ Worldwide Business with Kathy Ireland; and American Family Insurance. In

addition, MVP has produced non-profit fundraising events for Boys and Girls Club;

Compton Junior Posse; and Providence Educational Foundation, to name just a few.

Robinson and Feuer bring more than 30 years of combined experience in the music and

entertainment business, as well as film and television production. Miles and Ron have

helped fuel the success of artists, entrepreneurs, and corporations in meeting their

strategic business and creative goals.


8



Nancy Kelly - Senior Executive Member, Card Processing

Ms. Kelly, Senior Executive Member, comes to TechPay LLC with nearly 20 years of

experience in the payment processing industry. During her tenure as senior manager

with Card Service International/FirstData, she grew her regional office’s annual

business volume more than twenty fold, with a group of highly experienced individuals

on her team.

Nancy credits her success to stellar customer service, strong networking - both inside

and outside the industry - and the ability to adjust to all of the Processing Industry

changes: from POS based transactions and later, debit cards to ecommerce, Mcommerce

and global online business.

A California native, Ms. Kelly has a wealth of colleagues, contacts and strategic

partners. She has worked closely with Ross Markbreiter in the industry for at least 15

years, while he was resident of The World Wide Web Store and now the founder and

Chief Executive Member of “TechPay”.

RPR Public Relations, Inc. - Executive PR

RPR Public Relations, Inc. is the PR firm of record for TechPay. Their PR and marketing

firm’s focus is on ROI and providing exceptional customer service and stellar results.

Since 2003, RPR’s experienced publicists have provided outstanding brand

management, public relations and marketing services to entrepreneurs, startups and

small-to-medium sized businesses located throughout the United States, Canada, South

America, Europe, the Middle East, Russia and Asia. This includes companies involved

in the technology, consumer product goods, B2B and B2C services, healthcare and

financial industries.

John Pretto - Senior Executive Board Member

Scott Preble - Senior Executive Board Member


9



Products and Services

TechPay™ has developed SwiftPay™, a revolutionary, proprietary mobile platform

designed specifically for grocery stores and supermarkets to benefit both the consumer

and the merchant.

Our product SwiftPay ™, is a software solution that integrates into a merchant’s retail

system, helping to streamline the shopping process and save consumers time and

money.

This new standard of technology is not just a "Wallet" but a complete Point of Sale(POS)

system. SwiftPay™ allows consumers to enter their personal loyalty cards, make a

shopping list and scan manufacturer coupons from the internet, retailer websites,

retailer mobile APPS, newspapers, magazines and mailers. Once logged in with a

vendor’s loyalty card, “SwiftPay” ™ shows discounts to the consumer, in real time via

their mobile device (apps available in both iOS and Android at no charge). With one

simple scan, the entire checkout process is complete.

SwiftPay™, processes credit cards/debit cards, sends transactions via email, and saves

all sales data for both consumer and retailers. In addition, the system provides scan

statistics, which can analyze all sales using a private web portal, giving the retailer

insight into the buying patterns of each customer. And, no specific device or merchant

terminal is required; it can run on any system as it is software based.

There are three different ways to shop with a mobile device. 1. scan items and create a

QR code with payment information that was entered on the website or APP. Then

checkout using a pin and basket is saved and email receipt sent. 2. the cashier scans

item and uses the "pay now" button on app they chose payment option. 3. Scan, Pay

and Go. Consumer doesn’t have to see a cashier at all. Merchant can see sales, scan data

and run banner campaign from their portal.


10



TechPay™ offers retailers the ability to customize and create a Mobile Payment system

for any company, along with banner ad capabilities, which can be considered as an

additional source of revenue.

Competitors

TechPay Mobile Payments Systems is the only offering of its kind.

Apple Pay™ Is a way to pay, B2C consumers use their mobile device to pay for

products. Apple Pay requires an NFC enabled device and NFC enabled terminals. It is

just a way to pay.

Square™ Is a B2B company and predominately has customers that are small business

and do fewer transactions at a time. Square is a way to pay and B2C

LevelUp™ is for restaurants and other businesses. Their mobile app is used for check

out/paying purposes only. A way to Pay LevelUP ™ Is B2C

SamSung Pay™ For galaxy devices. Same as Apple Pay but for Android.

TechPay Mobile Payment Systems ™ is scalable and can support unlimited users, and is

integrated into the merchant/retailer’s POS system. With TechPay you can shop and pay!

TechPay does not require any specific device or merchant terminal; it can run on any

system, as it is software based. TechPay is designed for both B2B and B2C.


11



Target Market

Market Overview

The “Mobile Space” is a surging enterprise, and experts anticipate within the next five

years, most retailers will transition to mobile payment systems.

According to a recent Statistica.com report, there are approximately 184.2 million

current smartphone users in the U.S. It is estimated by 2020 there will be 220 million

smartphone users.

A 2015 Statistica.com report identified there are 2 million retail businesses in the U.S.

Of that 2 million, 110,000 are chain stores, and 37,716 are grocery stores, all who can

utilize and benefit from m-commerce.

According to the new edition of Deloitte’s annual Technology, Media &

Telecommunications (TMT) Predictions report, in-store mobile payments will increase

by more than 1,000% worldwide this year with 5% of the world’s smartphones being

used to make a payment in a store at least once a month, up from under 0.5% in mid-

2014.

2015 will be the “first year in which the multiple prerequisites for mainstream adoption

— satisfying financial institutions, merchants, consumers and device vendors — have

been sufficiently addressed”, the authors conclude.

There has been a tectonic shift in the way consumers spend their time online. In October

2014, 52% of the time consumers spent online occurred within smartphone and tablet

apps, according to new data provided exclusively to Internet Retailer from web and


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mobile measurement firm comScore Inc. 40% of online time was spent in web browsers

on desktops and laptops and 8% spent in web browsers on smartphones and tablets.

https://www.internetretailer.com/2014/12/10/mobile-apps-dominate-time-consumers-

spend-online.

The global smartphone audience surpassed the 1 billion mark in 2012 and was

estimated to total 1.75 billion in 2014. eMarketer expects smartphone adoption to

continue on a fast-paced trajectory through 2017. Nearly two-fifths of all mobile phone

users—close to one-quarter of the worldwide population—used a smartphone at least

monthly in 2014. By the end of the forecast period, smartphone penetration among

mobile phone users globally will near 50%. - See more at:

http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-

Billion-2014/1010536#sthash.ch7q41RX.dpuf.

NCH Marketing Services, Inc., an international coupon processing company, says that

77 percent of all US households use coupons (particularly in markets where their value

is doubled). It is a common misconception that only lower income shoppers use

coupons to save money. In fact, a recent survey by NCH Marketing Services revealed 75

percent of customers in all income brackets use coupons sometimes, with the highest

rate of coupon clippers, 82.9 percent, having an income of $25,000 - $50,000.

NCH Marketing Services, conducted a telephone survey of 1,000 consumers and found:

• Three out of four shoppers use coupons.

If a consumer loses their credit card(s) or their wallet gets stolen, it is a major issue.

They have to call to cancel their cards, check statements, wait days or weeks to get new

cards and cannot do anything until a new one is received. Using one of TechPay Mobile

Payment Systems, card information is stored on your phone. If a phone is lost or stolen,

data can be erased and a new phone issued the same day, and all data restored.

Payment and application of coupons through mobile devices is the future. The numbers

are rising. 16 % of businesses will add MPOS in the next year. Mpos will replace

existing POS systems.

http://www.internetretailer.com/2014/12/10/mobile-apps-dominate-time-consumers-

http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-


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Market Needs

Mobile is the future and future of accepting payments. The numbers are rising. 16 % of

business will ad Mpos in the next year. Mpos will replace existing Pos systems.


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Strategy and Implementation

Marketing Plan

As mentioned previously, Kathy Ireland is TechPay’s™ Brand Ambassador. Ms. Ireland

will be included in various marketing, advertising and promotional campaigns and

initiatives.

TechPay™ is different than most mobile payment systems, as it is more of an Mpos

system. Our goal is to be the first to integrate our platform into grocery stores, and co-

market with retailers and processors through in-store advertising, Facebook, Twitter,

other social media, and where applicable, joint advertising with merchants on television

and newspaper.

We will partner with NCR to integrate into two of NCR’s Pos systems v 6.1 and 6.2.

There are currently 1500+ stores running ACS-IR and 2000+ running ACS Base. Once

integrated, TechPay™ would own the intellectual property/software update.

As part of the partnership with NCR, they will give TechPay™ the names and contacts

of stores who use the system. This would be certified and free to retailers.

Once these plans and processes have been successfully implemented, we will move

forward with other POS companies to do the same. And, partner with major retailers

and credit card processors.

In addition, TechPay™ will develop enhancements for its mobile apps to include

reward programs and enhanced shopping experiences and add new technologies as

they are developed

The sales management program, salesforce.com will be used by the TechPay sales team

as its business development and management software.


15



Positioning

TechPay the easy way to shop and pay- Mobile payment system for retails and

consumers.

Pricing

We integrate into each retailer and the cost will vary. The APP IS Free for the consumer.

It is our plan to have our first major integration with NCR in two POS systems made

for grocery stores. Then move into other Pos system integrations with NCR and other

companies that create POS systems for businesses.

Promotion

Television, radio, print, digital, social media (e.g. Facebook, Twitter, Blogs),

co- marketing, in-store advertising and events will be included in a detailed marketing

plan, for which Kathy Ireland will be a part of several promotional initiatives.

Partnerships with credit card processors, emagazines, and tradeshows will also be part

of TechPay’s marketing plan.

Distribution

We sell to the retailer, who then markets to their customers to use the system.

We will conduct co-marketing with each retailer.


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Milestones

Milestone Due Date Who's Responsible Details

SwiftPay TM Completed TechPay SwiftPay TM the first working system from TechPay has been completed.

MVP Partnership Completed TechPay LLC and MVP Media

TechPay and MVP Media Partner and added to LLC OA

Filed Trademarks Completed TechPay TechPay Mobile Payment Systems SwiftPay registered.

Partner with kiWW Completed MVP, kiWW,TechPay Partner with kiWW

Update SwiftPay for all ios and iphones use.

March 01, 2016 CEO Update SwiftPay APP design and server side to be applicable for all ios and iphones, and Android

Transition from LLC to C Corp

April 01, 2016 CEO Transition from LLC to C Corp

Trademarks May 31, 2016 File New Trademarks File all new trademarks

Get into NCR update June 01, 2016 TechPay, NCR, SNT Get SwiftPay TM into NCR update to be available August 2015

Update Filed for Patents June 01, 2016 TechPay LLC Update Patents filed.

Update Patents and add Trademarks

June 01, 2016 CEO Update patents to non- provisional patents and file additional trademarks

Kathy Ireland Marketing Materials

June 30, 2016 MVP Kathy Ireland Video and Marketing materials completed.

Pilot Running July 01, 2016 CEO COO CTO Get into a store for a pilot.

Update Website July 31, 2016 Marketing Update Website to WordPress and new design


17



Financial Plan

Generation of Revenue-Based on 2,774 stores and 100,000 users

We will integrate into each retailer system separately, and because each is unique, the

cost will vary. A percentage fee of each debit/credit card and check sale transaction will

be collected and we will receive a monthly residual from the credit card processor.

Using Authorize.net as our virtual gateway will also generate a monthly residual based

on volume of sales. These fees are estimated to be approximately $10,000 per grocery

store per month.

Revenue will also be generated by running banner ads on each mobile phone on behalf

of the merchant’s customer base and target companies such as Proctor and Gamble, and

Kellogg's to have exclusive advertising on the APP. Banner advertising is also available

in the consumer and retailer portal. This can create an additional estimated $10,000 per

store per month. Additional revenue fees will be generated by charging license,

maintenance and integration fees to the merchants.

As stated earlier, the Application is free for the consumer.

According to the USDA, the average amount a family of four spends on groceries per

week is $239. Based on this statistic, we have incorporated $956 per month into the

following projected revenue scenario:

In this plan we will show projected revenue based on one national retail grocery chain

that has 2,774 stores, with 100,000 users.

This equates to 36 SwiftPay APP users per store.


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Projected revenue is based on the scenario that a family of 4 spends approximately

$956 per month on groceries.

Additional revenue projections include:

A rate of .05 cents per transaction on Credit card processing

License Fee of $1500. per store

Authorize.net fee of $20 per month, and .20 cents per transaction per store

Please note: The proposed financials indicate only one national retail grocery chain. As

we grow and increase merchant chains and retailers, these numbers will increase

significantly.


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Projected Revenue Forecast

Revenue Forecast

FY2016 FY2017 FY2018 FY2019 FY2020

Revenue

Percentage of each sale of

credit card $5,736,000

$1,147,200

$2,944,000

$5,888,000

$117,760,000

transaction

License Fee per

store $3,900,602 $4,752,000 $5,702,400 $6,842,880 $8,211,456

Banner

advertising $144,000

$172,800

$207,360

$248,832

$298,598

Authorize.net .20 per $960,000

$1,152,000

$1,382,400

$1,658,880

$1,990,656

transaction

Authorize.net

gateway fees $633,600 $760,320 $912,384 $1,094,861 $1,313,833 $20 Per Mo.

Total Revenue $11,374,202 $7,984,320 $11,148,544 $15,733,453 $129,574,543

Direct Cost

Percentage of each sale of credit card

$57,360

$11,472

$29,440

$58,880

$1,177,600

transaction

Authorize.net

.20 per $9,600 transaction fee

$11,520 $13,824 $16,589 $19,907

Authorize.net

gateway fees $6,336

$7,603

$9,124

$10,949

$13,138

Banner

Advertising $120,000

$120,000

$120,000

$120,000

$120,000

License and Maintainance $120,000 fees

$120,000

$120,000

$120,000

$120,000

Total Direct

Cost $313,296

$270,595

$292,388

$326,418

$1,450,645


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Gross Margin $11,060,906 $7,713,725 $10,856,156 $15,407,035 $128,123,898

Gross Margin % 97% 97% 97% 98% 99%

Revenue by Year

About the Revenue Forecast

According to the USDA, the average amount a family of four spends on groceries per

week is $239.

Based on this statistic, we have incorporated the following projected revenue scenario:

One national retail grocery chain that has 2,774 stores

100,000 users which equates to 36 SwiftPay APP users per store

Family of 4 spends approximately $956 per month on groceries


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Additional revenue projections include:

A rate of .05 cents per transaction on Credit card processing

License Fee of $1500. per store

Authorize.net fee of $20 per month, and .20 cents per transaction per store

Please note: The proposed financials indicate only one national retail grocery chain. As

we grow and increase merchant chains and retailers, these numbers will increase

significantly.


22



Personnel Plan

Personnel Table

FY2016 FY2017 FY2018 FY2019 FY2020

Chief Executive

Officer $150,000 $180,000 $216,000 $259,200 $311,040

MVP-Executive

Vision Strategist $120,000

$132,000

$145,200

$159,720

$175,692

Senior Executive

CC Processing $57,600

$63,360

$69,696

$76,666

$84,332

IT Director $96,000 $105,600 $116,160 $127,776 $140,554

COO $125,000 $150,000 $180,000 $216,000 $259,200

CEO-Assistant $48,000 $52,800 $58,080 $63,888 $70,277

Executive Sales

Manager $96,000 $105,600 $116,160 $127,776 $140,554

Sales Rep $24,000 $28,800 $34,560 $41,472 $49,766

Clerical Assistant $38,400 $42,240 $46,464 $51,110 $56,221

Office Assistant $28,800 $31,680 $34,848 $38,333 $42,166

Total $783,800 $892,080 $1,017,168 $1,161,941 $1,329,802


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About the Personnel Plan

Hire New Employees as needed

Budget

Budget Table

supplies $20,000

FY2016 FY2017 FY2018 FY2019 FY2020

Operating Expenses

Salary $783,800

$892,080

$1,017,168

$1,161,941

$1,329,802

Employee Related $156,760 Expenses

$178,416

$203,434

$232,388

$265,960

Production PR

and Marketing $250,000

$250,000

$250,000

$250,000

$250,000

Office Facility $60,000 $60,000 $60,000 $60,000 $60,000

Office Supplies $18,000 $18,000 $18,000 $18,000 $18,000

Insurance $2,400 $2,400 $2,400 $2,400 $2,400

Office setup

NCR Integration $110,000

Research and

Development $186,000 $186,000 $186,000 $186,000 $186,000

Total Operating

Expenses $1,586,960

$1,586,896

$1,737,002

$1,910,729

$2,112,162


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Revenue by Year


25



Financial Statements

Profit and Loss Statement

Profit and Loss Statement

supplies $20,000

Interest Incurred

FY2016 FY2017 FY2018 FY2019 FY2020

Revenue $11,374,202 $7,984,320 $11,148,544 $15,733,453 $129,574,543

Direct Costs $313,296 $270,595 $292,388 $326,418 $1,450,645

Gross Margin $11,060,906 $7,713,725 $10,856,156 $15,407,035 $128,123,898

Gross Margin % 97% 97% 97% 98% 99%

Operating Expenses

Salary $783,800

$892,080

$1,017,168

$1,161,941

$1,329,802

Employee Related $156,760 Expenses

$178,416

$203,434

$232,388

$265,960

Production PR

and Marketing $250,000

$250,000

$250,000

$250,000

$250,000

Office Facility $60,000 $60,000 $60,000 $60,000 $60,000

Office Supplies $18,000 $18,000 $18,000 $18,000 $18,000

Insurance $2,400 $2,400 $2,400 $2,400 $2,400

Office setup

NCR Integration $110,000

Research and

Development $186,000 $186,000 $186,000 $186,000 $186,000

Total Operating

Expenses $1,586,960

$1,586,896

$1,737,002

$1,910,729

$2,112,162

Operating

Income $9,473,946

$6,126,829

$9,119,154

$13,496,306

$126,011,736


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Depreciation and Amortization

Income Taxes

Total Expenses

Net Profit

Net Profit / Sales

Gross Margin by Year

$1,894,790 $1,225,366 $1,823,830 $2,699,261 $25,202,348

$3,795,046 $3,082,857 $3,853,220 $4,936,408 $28,765,155

$7,579,156 $4,901,463 $7,295,324 $10,797,045 $100,809,388

67% 61% 65% 69% 78%


27



Net Profit (or Loss) by Year


28



Balance Sheet

FY2016 FY2017 FY2018 FY2019 FY2020

Cash $9,473,950 $13,705,989 $21,599,775 $33,272,251 $156,584,726

Accounts Receivable

$0 $0 $0 $0 $0

Inventory

Other Current Assets

Total Current

Sales Taxes Payable

Short-Term Debt

Prepaid Revenue

Total Current

$1,894,790 $1,225,366 $1,823,830 $2,699,261 $25,202,348

Assets $9,473,950 $13,705,989 $21,599,775 $33,272,251 $156,584,726

Long-Term Assets

Accumulated Depreciation

Total Long-Term Assets

Total Assets $9,473,950 $13,705,989 $21,599,775 $33,272,251 $156,584,726

Accounts Payable $0 $0 $0 $0 $0

Income Taxes

Payable $1,894,790 $1,225,366 $1,823,830 $2,699,261 $25,202,348

Liabilities

Long-Term Debt

Total Liabilities $1,894,790 $1,225,366 $1,823,830 $2,699,261 $25,202,348

Paid-in Capital

Retained Earnings

$7,579,160

$12,480,623

$19,775,945

$30,572,990

Earnings $7,579,160 $4,901,463 $7,295,322 $10,797,045 $100,809,388


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Total Owner's

Equity $7,579,160 $12,480,623 $19,775,945 $30,572,990 $131,382,378

Total Liabilities

& Equity $9,473,950

$13,705,989

$21,599,775

$33,272,251

$156,584,726


30



Cash Flow Statement

Cash Flow Statement

Net Cash Flow from Operations

Net Profit

FY2016 FY2017 FY2018 FY2019 FY2020

Depreciation and Amortization

Change in Accounts Receivable

Change in Inventory

Change in Accounts Payable

Change in Income Tax Payable

Change in Sales Tax Payable

Change in Prepaid Revenue

Net Cash Flow from Operations

Investing & Financing

Assets Purchased or Sold

Investments Received

Change in Long- Term Debt

$7,579,156 $4,901,463 $7,295,324 $10,797,045 $100,809,388

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,894,790

($669,424)

$598,464

$875,431

$22,503,087

$9,473,946

$4,232,039

$7,893,788

$11,672,476

$123,312,475


31



Change in Short-Term Debt

Dividends & Distributions

Net Cash Flow from Investing & Financing

Cash at Beginning

of Period $4 $9,473,950 $13,705,987 $21,599,775 $33,272,251

Net Change in Cash $9,473,946 $4,232,039 $7,893,788 $11,672,476 $123,312,475

Cash at End of

Period $9,473,950 $13,705,989 $21,599,775 $33,272,251 $156,584,726

Cash Flow by Year


32



Net Profit by Year

Techpay.mobi mobile payment systems business plan.

Economy & Finance

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