Enlightened “Angel” Investment Financing Required This is a unique financial opportunity, with significantly reduced risk, therefore justifying a loan rather than equity investment, because it is a Strategic Reorganization of two (2) 40 year old companies, adding proprietary technology and experienced management. This is not exactly a Start Up. The “production driven”, American Pro Forma Financial Model details how a $1,000,000 Private “Angel” Investment Loan, (repaid from cash flow) plus a $500,000 Lease Line of Credit, over five years, for the acquisition of the 3-Axis CNC Routers and CNC Leather cutting machinery, can yield: cash positive in one year, a NET income of $1,000,000, within 2 years, with a 15% market share. Even better, this plan also permits over $20,000,000 in cumulative NET income before taxes, with a 25%+ market share, within the first five years of operation. This Business Plan provides a 20 times Return on Investment (R.O.I.) Loan over 5 years, if all occurs as planned. Even more amazing, is that there is an up-side potential of 2X-3X times net income, if existing Federal Consumer Protection Laws are enforced. (The full Excel Pro Forma analysis is on the attached CD titled American Pro Forma)
While the author of this Business Plan is from the Silicon Valley and has been involved in large Venture Capital Investments, which is reflected in the quality of this Business Plan, there is more to this Plan than just making MONEY. Obviously, if this were not a sound business venture there would be no reason to fund it. However, one needs to remember the “Mission” of the American Indian Prevention Coalition is Health Care. The enlightened vision is that by building a series of companies, career paths and gainful employment for hundreds of tribal members is possible. This particular market opportunity is more unique, because there is sufficient Cash generated by this Cow, to fund the American Indian Prevention Coalition, itself, and wean the organization from dependence on Government Grants. As an example, included in the Cost of Goods are the salaries for 75 employees providing $10,000,000 over five years, which is a significant benefit, that is not directly reflected in the Pro Forma Financial Statement, that is in addition to the $20,000,000 in net profit before taxes. Therefore, rather than seeking an equity investment, with returns of 15 to 20 times the investment over five years, should permit an enlightened “Angel” Investor to loan Pathfinder Leathers the initial $1,000,000 for Cash Flow to fund the Company in the first year of operations. The Use of Proceeds are detailed below. The Pro Forma Financials do include servicing the loan at 7% interest as well as the initial $250,000 lease line of credit at the same rate. There is sufficient cash flow to service the original $1,000,000 Loan at a higher interest rate, however, obviously a lower rate would be preferred, but the cash flow is there to pay higher rates, if required. Use of Proceeds $400,000 for Cash Flow to fund the Company in the first year of operations $250,000 for Up-Front Royalties Fee for the Proprietary Technology, the U.S. Patent # 6,344,262 $ 50,000 for the purchase of the Assets of Hercules Tree Company of Moab, Utah $ 50,000 for the purchase of the Assets of the Superior Saddle Tree Company of Benton California $250,000 for Contingency Reserves for the Unexpected $1,000,000 Private “Angel” Investment Loan – 7% Interest – Repaid over 60 Months from Cash Flow + $500,000 Lease Line of Credit, over 5 years, for the acquisition of the five (5) 3-Axis CNC Routers
1,000,000
24,000,000
750,000
19,000,000
500,000
14,000,000
250,000
9,000,000
1
4
7 1
1
1
0
4,000,000
-250,000
-1,000,000
-500,000
55 58 6 64 37 40 43 46 49 52 1 22 25 28 3 34
NET INCOME (LOSS) BEFORE TAXES
44
“262 PATENT ROYALTY