Executive Summary

Professional Athletic Equipment, Inc. will manufacture and market a protective device for young athletes. The trade name
"Body Armor" will serve as brand name and identity name for the product. The product is intended to help prevent injury from
blunt trauma to the chest, side, and abdomen. The device may also help prevent sudden death from commotio cordis (heart
stoppage due to external trauma). This injury occurs primarily in baseball but can also occur in soccer and other sports. A
United States patent on the device is in the application process and is pending.

This business plan is part of our regular business planning process. We revise this plan semi-annually.

In the next full year we intend to produce and market initial product. No sales have occurred to date.

We are projecting sales of 750 units per month on average in year one of marketing. This will place sales volume at $242,550
for the year. Management predicts sales exceeding $4 million and profitability in year three. Year three profits are expected to
be $593,570 before taxes.

Our keys to success and critical factors for the next year are, in order of importance:

 Initial product production on first three sizes.

 Test marketing and basic research to determine product acceptance.
 Test marketing of multi-channel distribution.
 Test marketing of media, PR, pricing, and product endorsement plans.
 Goal of recouping production start-up costs and first year depreciation on initial three molds in year one.

And after that:

 Limiting loss in year two to less than $200K.

 Reaching limited retail distribution in year three (2nd sales year).
 Attaining profitable operations in year three.

1.1 Objectives
Professional Athletic Equipment, Inc. has set a modest goal for year one sales. These targeted minimums when achieved will
bring us close to over-all break-even for year one and will provide a platform for limited business expansion in year two.

The sales targets by size are:

 Small--4500 units
 Medium--2250 units
 Large--2250 units
Attaining these targets will result in year one sales volume of $242,550 and will confirm a successful test.

Costs will be controlled to maintain projected margins at these modest sales levels. If sales exceed these goals additional
production and stepped-up marketing activity can be implemented quickly, although additional capital will be required on short
notice in order to fully implement growth. On the safe side, some sales may be missed in order to gear up for year two.

1.2 Mission
Professional Athletic Equipment, Inc. is a manufacturing and marketing company dedicated to protecting young athletes from
tragic injury and death. We intend to make quality, tested products and to make sufficient profit to generate a fair return for our
investors. Our initial product, the "Body Armor", will be sold via targeted direct marketing to consumers, who are the parents of
youth baseball participants. The "Body Armor" is intended both to help prevent injury and to improve athletic performance via its
confidence enhancing attributes among youthful sports participants. The "Body Armor" seeks to foster the enjoyment of sports
by young people. We intend to grow the business and to establish our brand as a product leader and innovator in its specialty
niche. We intend to finance continued growth both internally and externally and to develop and acquire new and additional
products once our marketing platform is established. We will conduct our business in accordance with Christian values and
strive to maintain a friendly, fair and creative work environment which respects ideas, hard work, and the dignity and worth of
the individual.

1.3 Keys to Success

The keys to success for Professional Athletic Equipment, Inc. are:

 Product Quality. New molds must be made and new production commenced. Suppliers of all components must be
found and initial orders placed. Timely delivery and assembly must be maintained with re-work and waste held to a
minimum.
 Marketing. Once quality product is available, the success of Professional Athletic Equipment, Inc. rests wholly in the
marketing venue. The "Body Armor" is a new product and consumers must be educated as to its availability and purpose.
Most critical to success is the control of media costs to generate sales.
 Management. While there is a temptation to grow a business exponentially, it is critical that Professional Athletic
Equipment, Inc. management concentrate first on proving product salability within certain price points, margin
requirements, distribution channels, and establish consumer acceptance. Once these answers are found, then controlled
expansion (which requires increased production and investment in inventory) can be executed with confidence.

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Professional Athletic Equipment, Inc. is a privately held Georgia Corporation founded by Dr. Jim Smith of Anytown. Dr. Smith is
the inventor and designer of "Body Armor." Prototypes have been produced, used, and tested. This business plan will serve as
the framework for bringing the product to market. All development costs to date have been born by Dr. Smith personally. At this
point Dr. Smith owns 100% of the common stock of Professional Athletic Equipment, Inc. It is his intention to invest further in
this expansion plan as well as to open limited initial investment via private placement. At this point the company can offer no
assurances of the marketability of its product, or that sufficient capital can be raised to execute its business plan.

2.1 Company Ownership

Dr. Jim Smith of Anytown, Ga. currently owns 100% of the common stock of Professional Athletic Equipment, Inc. It is his
intention to sell limited ownership to outside private investors in the first round of external financing. With success of initial
business plan executions, additional capital will be required. Further offerings to both individuals and institutions are planned.
Initial investors will be granted participation rights in any future offerings the company undertakes on a right-of-first-refusal
basis.

It is expected that stock option plans totaling no more than 15% of equity will be made available to key company management
personnel.

2.2 Start-up Summary

The start-up costs for Professional Athletic Equipment, Inc. are $250,000 minimum to $500,000 maximum. All start-up
assumptions are based on an actual infusion of $250,000 in new capital. These funds will be utilized to procure molds and raw
materials to fund production of initial inventory by our contract manufacturer, ABC Plastics. Cash outlay for capital equipment
will be $65,000. Investment in initial inventory will be $25,437. In addition, initial marketing costs, and overhead, including G &
A is included.

If $500,000 in new capital is secured from the initial offering the overage will be allocated to cash surplus and will serve to make
funds available to accelerate marketing plans with no delay to secure funding. This acceleration and use of funds will be
reflected in the first six-month revision of this business plan.

Professional Athletic Equipment, Inc. management intends to raise the initial capital with a private offering of cumulative
convertible preferred stock. The conversion would be at 3 shares of common to one share of preferred and would be exercised
at the end of year two. The interest would be accumulated at 8% per annum but not paid until time of conversion. For the
purpose of all charts and graphs included in this plan the interest is not treated as paid on a monthly basis, but will in fact be
held in reserve. Management reserves the right to utilize such reserve funds as operating capital if necessary. Repayment of
principal and interest is treated as a line item paid of $290,000 in 1998. If interest cannot be repaid at the end of the two year
term, preferred stock holders will have liquidation preference. Or preferred stockholders may exercise, at their option, to forgive
payment of interest in return for upgrading to a 4 to 1 conversion ratio. It is expected that all issued convertible preferred shares
will be retired by the end of year two of operations.

2.3 Company Locations and Facilities

A company office is presently maintained by Dr. Smith at 1234 Main Street, Anytown, Ga. 30000. Subsequent to funding the
office may be relocated to the Atlanta market area. Available office space has been located in Atlanta. This office space is small
and may be secured at nominal cost. As needs dictate office and/or distribution facilities will be expanded. Initially, the small
office will serve to manage marketing functions and sales/order processing.

Distribution will initially be handled by the contract manufacturer. Orders will be drop shipped directly from the plant. This
precludes the need to invest in distribution space at the outset. ABC Plastics is located in Anyplace, Ga. between Anytown and
Somewhere, off of Interstate Route 123 The plant has been visited by Professional Athletic Equipment, Inc. management and
has substantial capacity both for production and warehousing of inventory. Preliminary terms for production, material and
assembly costs and capital expenditures for molds are used as the cost basis in this plan. Shipping and handling expense will
be billed to the customer.

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Products
Professional Athletic Equipment, Inc. is in the business of providing protection against both serious and minor injury among
youthful sports participants. Such injuries may include painful bruises, broken ribs, spleen and kidney injuries, and more. The
primary function of the "Body Armor" is to improve performance and confidence. The product may also serve to protect its
wearer from the more severe outcomes resulting from commotio cordis. Death caused by a ball hitting the chest is a serious
problem in youth baseball and softball. The U.S. Consumer Product Safety Commission has documented 38 such deaths since
1973. In all but two cases, the autopsies revealed no pre-existing heart defects of any kind. Of further concern is the fact that
response to resuscitation efforts is poor. CPR is of little use when heart stoppage occurs. The injury produced by blunt external
trauma is a functional rather than a structural injury. The trauma of impact produces a variety of cardiac electrical abnormalities,
including repeatable arrhythmias and traumatic apnea.

The danger to young athletic participants is particularly high since almost all the energy of impact is transferred to the chest
because ball rebound after impact is minimal. In a child the layer of soft tissue in the chest wall is thinner than in an adult and
yields more readily than does a baseball.

Two areas of possible prevention have been researched extensively in the past:

1. Using balls with softer cores.

2. Various means of padded chest protection.

Changing the compression or size of the ball seems less pragmatic since chest impact from other sports projectiles such as
softballs and lacrosse balls also can cause sudden death. In addition, a study of baseballs with softer cores suggests they have
little protective effect and may, in some cases, actually increase the impact to the chest.

However, the limited protective padding worn by hockey players seems to offer some protection. Although hockey players
routinely receive chest blows, and the hockey puck travels at high speed and is harder than a baseball, relatively few players
have suffered commotio cordis.

Chest protection has not met with acceptance to date. The key issues are the high cost of outfitting teams with a protective
product and whether or not the wearing of such a product will hinder athletic performance and/or mobility.

Dr. Smith has designed a product that can be produced at low cost, that is lightweight, that has performed in independent
university tests as well as anything commercially available in energy absorption capability, and has been worn in competition
for more than a year by his own son and other players competing in youth baseball in Anytown, Georgia. The players
themselves report that their performance is not hindered in any way. They contend that performance is actually improved due
to the mental confidence they experience from wearing the "Body Armor." The fear of painful injury is reduced and hence the
boys perform with fundamentally sound baseball mechanics and with more confidence.

The management of Professional Athletic Equipment, Inc. feels that the "Body Armor" can be successfully marketed.

3.1 Sourcing
Product production costs have been estimated with the help of ABC Plastics of Anytown, Georgia.

Fixed, depreciable costs are for molds for each size and other equipment. Lead time for molds is 18 weeks. Lead time for
equipment to affix and shape the foam on the molded plastic part is 10 weeks.

 small mold-- $15,000

 medium mold--$17,000
 large mold-- $20,000
 foam equip-- $ 9,500
 glue equip-- $2,000
 rivet gun, misc--$1,500

Total Capital Equipment= $65,000

5 yr. straight line depreciation= $13,000 per year or $1,083 per month

Variable costs are as follows:

Molded part:

 small--$1.35
 med-- $1.45
 large--$1.55

Foam back (cut to size with holes):

 small--$3.75
 med-- $4.00
 large-- $4.25

Glue--.02 per part

Labor cost per assembly--$1.07

Rivets, velcro and loops (est.):

 small--$1.48
 med-- $1.48
 large-- $1.48

Thus, over all unit variable production cost is:

 small--$7.67
 med-- $8.02
 large-- $8.37

At 50% small sales, 25% medium sales, and 25% large sales ave. weighted unit cost is $7.94.

Production rate for assembly is 75 units/hour.

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Market Analysis Summary
The sporting goods market as whole and the market for baseball equipment are multi-billion and multi-million dollar markets
respectively. The "Body Armor" represents a new sub catagory in the baseball products market. Currently, there are no
competitive entries in this segment. The only other chest protectors are worn by catchers. We define our user as any batter
and/or position player. The product is to be worn at all times beneath the uniform. The buyer is defined as the parent(s). The
targeted consumer is the Mom, whom management feels will be more receptive to the safety/protection message.

Complete industry specific data on markets, sub-markets, categories, trends and demographics are available in trade industry
reports. These reports are available for fees and with membership in trade organizations. The two most important industry trade
groups are the Sporting Goods Manufacturers Association located in N. Palm Beach, Fla. and the National Sporting Goods
Association located in Mount Prospect, Ill. The leading trade industry publication is Sporting Goods Business.

For the purpose of the test market, statistical market studies would not be valid. Our purpose is to prove salability. Market share
numbers will be minute. With successful test marketing, Professional Athletic Equipment, Inc. will join these above named
industry groups and utilize their data and research to project roll-out and expansion numbers.

4.1 Market Segmentation

As indicated, the product segment sought by Professional Athletic Equipment, Inc. is a new one. It can best be defined by the
demographic of its targeted customer. Since we seek to serve youth baseball as the only commercially available permanent
chest protection for position players the potential market size can be defined by its universe of participants.

In the latest survey of sports participation for boys ages 6 to 17 taken in 1994, 8.6 million participants played baseball. This
compares to 14.6 million for basketball and 8.1 million for football. Little League Baseball headquartered in Williamsport, Pa. is
the largest youth sports organization in the world with 2.9 million participants on 193,000 teams in 91 countries around the
world. Additionally other local leagues sponsored by parks and recreation departments and other regional leagues and
associations such as Dixie Baseball, Inc. and Youth Baseball Athletic League (YBAL) have many millions more participants.

Our market analysis is defined by potential users. Which media to utilize to cost effectively reach these users is the critical
decision path. The universe of potential customers exceeds 8 million users. It is projected to grow only moderately each year.
Although old customers will be replaced by new ones as they pass through the age demographic, it is impossible to estimate
erosion from re-sale or re-use at this point. Management recognizes that a market exists for used sporting goods equipment.

The Market Analysis table, and the Potential Market pie chart illustrates our key customer segments. The "other" catagory is
defined as a specific direct sales test with two leagues--one in Anytown and one in Anywhere.

We will concentrate heavily on the local, or Georgia market segment with direct marketing efforts. Any efforts in other market
areas will be accomplished only by overlapping media that does not incur incremental cost. Examples are on-line marketing or
infomercials run by design in other spot markets. With such a large potential market available, Professional Athletic Equipment,
Inc. management is confident of the ability to sell products in the conservative numbers estimated by first year production
availability.
Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Little League 3% 2,700,000 2,781,000 2,864,430 2,950,363 3,038,874 3.00%

All Other Leagues 3% 5,500,000 5,665,000 5,834,950 6,009,999 6,190,299 3.00%

Georgia Residents 8% 400,000 432,000 466,560 503,885 544,196 8.00%

Other 0% 5,000 5,000 5,000 5,000 5,000 0.00%

Total 3.25% 8,605,000 8,883,000 9,170,940 9,469,247 9,778,369 3.25%

4.2 Target Market Segment Strategy

By focusing our efforts on the parent(s) of youth baseball participants (primarily Moms), we can cost effectively (and editorially)
convey our safety and protection message.

Certain media have already been discovered through research. The following print media and specialty publications have been
identified:

1. Baseball Parent Magazine.

2. Sport Scene Magazine, published by the Consumer North American Youth Sports Institute.
3. Safety and Health, published by the National Safety Council.

In addition, there are Web sites and newsgroups that management has uncovered. Such as: rec.sport.baseball and
alt.sports.baseball which can provide targeted e-mail opportunities. Two separate software programs have been identified: One
that targets newsgroups for bulk e-mail, and another than conducts "on-line surveys" from identified groups. Both will be utilized
in Professional Athletic Equipment, Inc.'s marketing efforts.

We have located Web sites and links to equipment purchase locations and on-line sporting goods malls as well as a flow of
targeted customers. These include:

1. John Skilton's baseball links (more than 50 links).

 2. Society for American Baseball Research.
3. Baseball on the Net (mailing lists, newsgroups, commercial products, research).

A company in California called Focalink can provide World Wide Web advertising services with feedback and measured
response.

While business on the Web is still in its infancy, the value as a marketing tool cannot be discounted and actual sales are
expected to increase exponentially in the next three years.

The magazines and publications will offer exposure for education via PR and articles as well as a means to target media
effectiveness in small numbers. The premise is: If you advertise to a highly selected target audience you prove salability and
price point acceptance. Then you seek to extrapolate the results via broader based media.

4.3 Industry Analysis

The sporting goods industry as a whole remains healthy with annual growth between 5% and 10% Older sports, such as
baseball, are experiencing flat to moderate growth when compared to other segments. The fastest growing sport is in-line
skating. However, the over-all size of the baseball market and its volume of participants indicates to management that it could
be receptive to a new product entry, particularly one that offers such an important potential benefit. It is not expected that major
economic turns would have substantial effect on this market although they could effect discretionary spending for peripheral
items. The "Body Armor" could suffer although it is expected sales slippage would occur in low-to-middle income groups.
Higher income groups should remain the strongest base for sales.

4.3.1 Distribution Patterns

By far the dominate distribution channel for all sporting goods is retail, predominantly mass merchants and sporting goods
super-stores. The barriers to entry into these channels are substantial, including media and marketing budgets, ability to supply
product, "rent" for shelf space, and co-operative media and promotion budgets. Professional Athletic Equipment, Inc. will not
have the capability to undertake the costs involved to go directly into retail stores. In addition, retail margins absorb 40% to 50%
of sales price. Wholesale margins to the manufacturer are cut vs. other sales channels. Only volume sales can achieve desired
returns to the manufacturer. Thus, retail sales will not be targeted by Professional Athletic Equipment, Inc. until year three of
the plan with the possible exception of a limited test of a "truckload sale" concept.

We will pursue a "Multi-Channel Distribution" strategy of direct sales via differing media segments. These media segments will
include targeted direct marketing via print, catalogue, TV shopping, on-line shopping malls, and possibly infomercial.

The measure of success in each of these channels will be the control of media cost vs. sales results.

4.3.2 Industry Participants

Major manufacturers and marketers of baseball equipment include Rawlings, Wilson, Mizuno, and others. Professional Athletic
Equipment, Inc. management feels that these major players in the industry will not take significant notice of the sales and
marketing activities of Professional Athletic Equipment, Inc. until such time as Professional Athletic Equipment, Inc. sales reach
$10 to $20 million. That sales level marks the point at which a business is considered substantial enough for either competitive
activity or acquisition. It is expected that Professional Athletic Equipment, Inc. will have a defendable patent position in its
product but that cannot be assured at this time.

4.3.3 Main Competitors

There are none in our specific product catagory.

4.3.4 Competition and Buying Patterns

The single most important factor in our product is the bandwagon. The concept of "Critical Mass" is what Professional Athletic
Equipment, Inc. must overcome. The rich get richer, and the poor poorer. However, there is still room for new products and new
companies outside the main design types.

 In the main design types, market share generates more market share. Rawlings chest protectors for catchers, for
example, may not be the best, but it is the market leader. More people know it better than any other brand. Most
important, the retailers feature it. So it continues to dominate. Despite the existence of better products, it is the wisest
choice for the buyer.
 Buyers want brand names. Quality of products is hard to measure. Brand names assure quality. However, brand
names only operate in mainstream product types; there is room for smaller names with specific solutions that appeal
to buyers.
  Buyers are willing to pay high prices for solutions that work. While competitors chip away at market leaders for lower
prices, the leaders continue to command high prices.
 Channels discount heavily. Brand name, packaged goods become a commodity and are bought on price. Buyers will
pay a heavy premium for Mizuno glove over a lesser-known knockoff, but they happily pay $25 in a discount store
instead of $50 at a full-price retail store.
 There is no consensus about product copying. Estimates of its revenue impact vary from 10% to 60% of the
theoretical revenue manufacturers would receive if copying were impossible. Illegal product copying is a fact of life
that manufacturers live with because they have no other choice. There is evidence, however, that wholesale copying
of Big Bertha Drivers and King Cobra irons helped those products build their market share leads, which became their
key strengths.
 Impulse buying goes on with products below $100. Buyers have discovered products like stomach exercisers and
kitchen tools that were low priced and extremely useful. There is more freedom in the lower end of the market.
 Distribution channels are clogged. Lack of channels are a serious barrier to industry growth. Wal-mart and Sports
Authority stores are insufficient for the wealth of products available, and the constant flood of new products.
 Support becomes a serious factor at higher price levels. Companies that charge hundreds of dollars for widgets are
expected to answer user questions. Those that don't will suffer from bad reviews and poor word of mouth. However,
neither Wilson nor Rawlings have had reputations for good support, and both are successful. Our product catagory
will not require extensive support other than a product manual and a return/exchange procedure for defective
merchandise.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Little League 3% 2,700,000 2,781,000 2,864,430 2,950,363 3,038,874 3.00%
All Other Leagues 3% 5,500,000 5,665,000 5,834,950 6,009,999 6,190,299 3.00%
Georgia Residents 8% 400,000 432,000 466,560 503,885 544,196 8.00%
Other 0% 5,000 5,000 5,000 5,000 5,000 0.00%
Total 3.25% 8,605,000 8,883,000 9,170,940 9,469,247 9,778,369 3.25%
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Strategy and Implementation Summary

Our strategy is based on serving niche markets well. The world is full of small and medium-sized businesses that provide good
products and services apart from the major vendors who focus on high-volume orders only.

Also:

 What begins as a customized version of a standard product, tailored to the needs of a local customer, can eventually
become a niche product that will fit the needs of similar customers across the country. Our test market will be local,
Anytown primarily. Although certain media selections (on-line in particular) are broader in geographical scope.
 We are building our marketing infrastructure so that we can eventually reach specific kinds of customers across
broad geographic lines.
 We focus on satisfying the needs of small boys aged 6-16.
 We focus on follow-on technology that we can take to the masses, not leading edge technology that aims at the
experts and volume leaders.

5.1 Marketing Strategy

Our marketing strategy will be to use a combination of targeted media and public relations executions to stimulate direct sales
to the end users of our product. Since the product and its application are new, the task is one of education. Education and
change are very expensive when they are directed at a mass audience. Thus, it is to our great advantage that our audience can
be segmented into a small group and reached with more inexpensive (and even free!) media strategies.

5.1.1 Promotion Strategy

The long-range goal is enough visibility to leverage the product line into other more expensive media with more reach and into
other regions and generate interest for evolution into retail channels. To do that::

 Public relations services at $3,000 per month for the next year are intended to generate awareness of editors and
product information insertions, reviews, etc. This is maintained for year one and two.
 Advertising at $5,000 per month concentrating on special interest magazines. We will experiment with general-
interest parenting magazines, keeping careful track of results. Advertising will either move product through, enabling more
production and additional sales, or will be cut back after four months at this level. Year two of sales reflects sales
penetration into retail channels and advertising is projected at $800,000 or 20% of projected sales.
 Trade shows: None until year two.
5.1.2 Distribution Strategy
We need to establish a corporate identity, logo, design of brand name, packaging, and standard media copy and executions. It
is estimated that a budget of $15,000 initially with any overage coming out of the advertising allotment of $5,000 per month will
be sufficient.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-
going basis with careful considerations of returns generated.

5.1.3 Positioning Statement

We believe that our focused marketing strategy will work with targeted distribution. We will use direct-response marketing and
UPS shipping to reach a targeted audience throughout the country.

We will utilize one retail-oriented special event coordinated with local TV and print media. This will encompass a "truckload
sale" of merchandise in conjunction with an appearance by Greg McMichael of the Atlanta Braves. We will need to sell this
concept to a local retail store. This will also serve to test the salability of the product at retail.

In addition we will test at least two direct sales programs to parents through participating league endorsement programs at the
beginning of the baseball season in 1997. It is expected that one league in the Anytown market will be targeted. The Anytown
league should be middle income families.

5.1.4 Pricing Strategy

Three sizes of Body Armor will be available, priced as follows:

 Small--$24.95
 Medium--$27.95
 Large--$29.95

Sales are expected to be skewed 50% small, 25% medium, and 25% large. Thus, weighted average unit revenue at full retail is
pegged at $26.95.

These prices are considerably higher (30% to 50%) than brand name catcher's chest protectors available in retail stores. This
price is low enough to encourage impulse buying, experimentation, and repeat buying. The price is also high enough to suggest
quality and effectiveness. The overall goal is to price for value. Management believes that the impulse to purchase is a
psychological one and that a concerned parent will spend this price (and perhaps more) for the protection the product offers
while a price-sensitive customer may not buy even at a lower price.

In order to effectively market this product without the initial advantages of large production runs, and in order to have sufficient
funds available for media, these prices dictate minimums for test marketing. A lesser price will not yield enough margin to
properly promote the product.

Shipping and handling expense on drop shipments will be charged to the customer. Thus, in this plan these figures are not
included in either revenue or expense projections.

5.2 Sales Strategy

Initially all sales are direct response. At the beginning of year two we will look to expand to other channels which will entail the
hiring of a sales manager and investigation and decisions on rep organizations. Actual retail sales will not take place until year
three. It is estimated that one full year of pre-sell with the major chains and participation in industry trade shows will be required
to penetrate retail channels.

In addition, this expansion will be coordinated with a strategic plan to raise more capital in order to insure media, co-op, and
endorsement programs.

5.2.1 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales at $242,000 in test year 1
which represents 9,000 units sold via direct marketing. We are forecasting sales to increase to $4,042,500 in year two with
expanded media expenditures and reach. This reflects an increase to 25,000 units sold via direct marketing and 125,000 units
sold in initial retail penetration. The direct cost of sales is not margin adjusted here but it is adjusted on the P & L statement.
Sales Forecast

Year 1 Year 2 Year 3

Sales

Body Armor $0 $242,550 $4,042,500

Other $0 $0 $0

Total Sales $0 $242,550 $4,042,500

Direct Cost of Sales Year 1 Year 2 Year 3

Body Armor $0 $63,520 $1,191,000

Other $0 $0 $0

Subtotal Direct Cost of Sales $0 $63,520 $1,191,000

5.3 Milestones
The first milestone for Professional Athletic Equipment, Inc. is design and prototype production of a fully functional product. This
has been achieved with founder funding. The prototype was developed in 1994.

The second milestone is to test the effectiveness of the product. This has been completed at the University of Tennessee at the
Southern Impact Research Center, L.L.C. The product tested favorably vs. any commercially available "competitive" product.
The test results are included in an addendum to this plan. Test costs were also founder funded. Testing was completed in
January 1996.

The third milestone is to obtain a U.S. Patent on the product. Patent application is currently pending. Legal fees have been born
by the founder. Patent application was filed in December 1995 and revised in April 1996.

The next significant milestone to be achieved for Professional Athletic Equipment, Inc. will be the successful subscription to the
private placement offering. Initial capital of $250 to $500K enables the implementation of the test market. All costs of marketing
the private placement are to be born by the founder. Target date for completion of the offering is August 1996.
The subsequent milestone will then be product production. Start-up production costs are expected to be $65,000 for
depreciable molds and manufacturing equipment. An additional $25,437 will be spent to produce the initial inventory of 1500
small units, 850 medium units, and 850 large units. Molds are to be ordered by September 1996.

Corporate identity executions will take place in November 1996. This will include logos, trademarking, package design, and
advertising and promotion copy executions. Expenditure is estimated at $15,000.

The next, and most significant milestone, will be the sale of initial inventory through test market executions. The successful sale
of product will then launch the expanded production and marketing efforts with significant confidence for success. Sales
success will also trigger additional small production runs to enable marketing and sales efforts to continue. Cash flow needs will
be addressed by additional debt/equity offerings as conditions dictate. Banking relationships will also be established at that
point. Initial sales are expected in February or March 1997.

Milestones

Milestone Start Date End Date Budget Manager Department

Product Design 6/1/1994 6/1/1994 PAID JS Exec

Product Testing 6/31/1995 1/31/1996 PAID JS Exec

Patent Application 1/1/1996 4/1/1996 PAID JS Exec

Private Placement Funding 5/1/1996 8/31/1996 PAID TC Finance

Capital Equipment 9/1/1996 9/30/1996 $65,000 TC Finance

Corporate Identity 3/15/1996 11/15/1996 $15,000 TC Marketing

Production of Inventory 10/15/1996 1/15/1997 $25,437 TC Exec

Totals $105,437
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Management Summary
Professional Athletic Equipment, Inc. will have a very thin management team at inception. Production management will in effect
be subcontracted via the use of a contract manufacturer. Key internal needs are for general financial control, strategic planning,
and sales and marketing implementation.

6.1 Management Team

 Dr. James B. Smith, M.D.: President and Founder. Dr. Smith is a practicing physician in Anytown, Ga. His design of
the Body Armor and willingness to invest his personal funds in the project represents his commitment to success. He has
recognized the need for an effective product to protect youthful sports participants. Dr. Smith will manage the business on
a passive basis throughout the test marketing phase.
 Timothy J. Clark: Chief Operating Officer. Mr. Clark is the principal of Lintel Capital in Anytown, Georgia. He is the
author of this business plan. Mr. Clark will manage operations during the first year and throughout the test marketing
phase. He has previously managed successful start-ups and early stage business ventures. He will also assist in capital
raising efforts via Lintel Capital in both first and subsequent stage offerings. Mr. Clark will also advise the company on
management succession.
 Mr. Rick L. Jones C.P.A.: Mr. Jones of Haddocks, Maddocks, Bollix, Jones & Co. will handle the company's
accounting.
 Patent attorneys are: Needle & Haystack P.C. of Anytown.

Board of Directors consists of Mssrs. Smith, Evans, The Honorable Robert L. Anyname, Superior Court Judge, and William R.
Offenboughten, Manager of Distributor Sales for A-B-C-D Company.
6.2 Management Team Gaps
Key management team gaps are the lack of a permanent C.O.O. and a permanent V.P. Sales and Marketing. It is expected
that such key people will be readily available in the Anytown employment market when needed.

6.3 Personnel Plan

Personnel needs in year two and three will be for G & A staff, particularly in order processing. The potential also exists to
outsource such services via a product fulfillment center. Product shipping and handling will be handled at the manufacturing
point and may be supplemented with temporary employees as required. At present a line item in personnel requirements of
$60,000 is budgeted for these functions (personnel burden of 20% is also calculated on this amount). No permanent staffing
decisions will be made until year two when the business plan is revised going into roll-out in year three. All expenditures
represent estimates at this time.

Personnel Plan

Year 1 Year 2 Year 3

C.O.O. $18,000 $36,000 $60,000

VP Sales and Marketing $0 $48,000 $48,000

CEO $0 $0 $72,000

Processing and Shipping $0 $60,000 $60,000

Total People 0 0 0

Total Payroll $18,000 $144,000 $240,000

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Financial Plan
Professional Athletic Equipment, Inc. desires to finance growth through a combination of equity/debt investment and internally
generated cash flow. Because of the cost of initial tooling and inventory and marketing costs of establishing a market presence,
the business will be financed primarily by investment in the early stages and is expected to burn cash. The target of break-even
in year one will only apply if one stops at selling initial inventory and stops marketing or does not engage in additional
production. Obviously, any of those courses would hinder growth. Thus, it is expected that additional investment will be
required.

The most important indicator in our case is inventory turnover. We have to make sure that turnover stays above 5 on all
production subsequent to test marketing, or we will be clogged with inventory.

Collection days are very important. We do not want to let our average collection days to get above 45 under any circumstances.
This could cause a serious problem with cash flow, because working capital will be tight. Fortunately, most sales in test
marketing will be direct via credit card. Thus, business at this stage will be basically for cash. Retail distribution entails 30 to 60
day billing cycles. Every effort will be made to collect on time and to offer billing term discounts. Major retailers are notoriously
slow in payments. Even when sales are for cash, this plan assumes 45 day payments on all sales in order to be conservative
on cash flow demands.

We must maintain gross margins of 70% and hold marketing costs to 30% of sales in all direct sales channels.

In retail channels gross margins based on wholesale pricing must be 40% and marketing costs held to 15% of sales. Volumes
must be significant to support these numbers. An accurate forecast of retail sales potential can only be made after significant
product acceptance by consumers. Estimates for year three retail sales contained in this plan should be considered as such.
Subsequent plan revisions will have a higher degree of accuracy.

7.1 Break-even Analysis

The break-even analysis shows that Professional Athletic Equipment, Inc. has a good balance of fixed costs and sufficient
sales strength to remain healthy. Our break-even point is close to 1430 units per month, while our sales forecast for the next
year calls for 750 units per month on average.

Some costs included in the plan may be trimmed if necessary. Thus, there is room to cut the gap to break-even in year two with
interim plan revision on the cost side, particularly by limiting ad and promotion expense and some fixed expense. The break
even number of 1430 units a month is an extremely conservative break-even number since it assumes full marketing and
media expenditures as called for by the plan. These expenses are treated as "fixed" when in fact they are "variable". Thus,
break even is based on full expenditures.

The initial production run will be 3200 units or approximately one third of the first year's projected sales. This will preserve
operating capital and incoming sales revenue will permit the company to function with some cash flow reserve during the first
year. A close to break-even performance in year one on a new consumer product would be outstanding.

Since production gear up is short once molds are in place, additional production runs can be done on short notice. For the
purpose of this first plan we have used a "zero inventory" model. That is, after the production run initially, we produce to need,
which is driven by sales. Generally direct or mail order sales can ship within 30 days and often collect via credit card up front.
Subsequent plans will include inventory balance on an on-going basis which will yield more accurate cash flow numbers in year
two and three.

7.2 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. They key underlying
assumptions are:

 We assume a slow-growth economy, without major recession.

 We assume of course that there are no unforeseen changes in technology to make products immediately obsolete.
 We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.

General Assumptions

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 0.00% 0.00% 0.00%

Other 0 0 0

7.3 Key Financial Indicators

 The most important indicator in our case is inventory turnover. We have to make sure that turnover stays above 5, or
we are clogged with inventory.
 Collection days is very important. We do not want to let our average collection days get above 45 under any
circumstances. This could cause a serious problem with cash flow, because our working capital situation is chronically
tight.
 We must maintain gross margins of 45 percent at the least, and hold marketing costs to no more than 20% of sales.

7.4 Projected Profit and Loss

All expenses estimated in this initial plan are considered to be accurate but not firm. Flexibility is assumed as the plan
progresses through execution. Also, the assumption here is that we only raise $250,000 in initial capital. If we actually raise
$500,000 it may or may not alter the sales forecast and increase advertising and promotion activity, but it will serve as a buffer
of cash reserve.

The plan now projects a moderate loss in 1997, the first year of sales. This will be considered very acceptable when considered
against the need to spend to introduce a new product. In fact, it is achievable only since we are pursuing low-cost channels of
distribution in the test. Our over-all objective here remains only to prove salability and test various channels and promotional
strategies, not to make an instant profit.

Year two assumes new sales into retail with a corresponding reduction in margin on the sales into that channel. Volumes
increase as do ad and promo expenditures. Only one or two small retail chain or independent stores (assuming multiple
locations) would be required to generate the sales volume sought provided the product has proven to be acceptable to
consumers. We are thus forecasting a roll-over to profitability in 1998 with a strong bottom line. These are realistic targets.

If this is achieved, it would be a good time for management to look at a major financing, other acquisitions, and an aggressive
national expansion of the "Body Armor."
Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $0 $242,550 $4,042,500

Direct Cost of Sales $0 $63,520 $1,191,000

Lost Margin on Retail units $0 $0 $992,500

Total Cost of Sales $0 $63,520 $2,183,500

Gross Margin $0 $179,030 $1,859,000

Gross Margin % 0.00% 73.81% 45.99%

Expenses

Payroll $18,000 $144,000 $240,000

Marketing/Promotion $23,700 $112,800 $868,600

Depreciation $1,500 $6,000 $6,000

Rent $1,500 $6,000 $24,000

Utilities $750 $6,000 $12,000

Insurance $3,249 $18,830 $18,830

Payroll Taxes $0 $0 $0

Other $0 $0 $0

Total Operating Expenses $48,699 $293,630 $1,169,430

Profit Before Interest and Taxes ($48,699) ($114,600) $689,570

EBITDA ($47,199) ($108,600) $695,570

Interest Expense $0 $1,000 $1,455

Taxes Incurred $0 $0 $0

Net Profit ($48,699) ($115,600) $688,115

Net Profit/Sales 0.00% -47.66% 17.02%

7.5 Projected Cash Flow

Cash flow in year two, 1997, needs a closer look on a month-to-month basis. Since this will be entirely a function of actual sales
vs. inventory turns it will be addressed in detail in subsequent plan revisions. At this juncture, the "produce as needed"
philosophy of management still is the operative mode. Subsequent revisions of this plan in years two and three will switch to a
full inventory, payables, and receivables model. The following chart represents the use of cash from initial investment in 1996.
Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $0 $242,550 $4,042,500

Subtotal Cash from Operations $0 $242,550 $4,042,500

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $20,000 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $250,000 $0 $0

Subtotal Cash Received $250,000 $262,550 $4,042,500

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $18,000 $144,000 $240,000

Bill Payments $49,529 $172,802 $2,867,919

Subtotal Spent on Operations $67,529 $316,802 $3,107,919

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $10,900

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $65,000 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $132,529 $316,802 $3,118,819

Net Cash Flow $117,471 ($54,252) $923,681

Cash Balance $117,471 $63,219 $986,900

7.6 Projected Balance Sheet

Preliminary Balance Sheet is estimated.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $117,471 $63,219 $986,900

Inventory $25,437 $0 $0

Other Current Assets $0 $0 $0

Total Current Assets $142,908 $63,219 $986,900

Long-term Assets

Long-term Assets $65,000 $65,000 $65,000

Accumulated Depreciation $1,500 $7,500 $13,500

Total Long-term Assets $63,500 $57,500 $51,500

Total Assets $206,408 $120,719 $1,038,400

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $5,107 $15,018 $255,484

Current Borrowing $0 $20,000 $9,100

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $5,107 $35,018 $264,584

Long-term Liabilities $0 $0 $0

Total Liabilities $5,107 $35,018 $264,584

Paid-in Capital $250,000 $250,000 $250,000

Retained Earnings $0 ($48,699) ($164,299)

Earnings ($48,699) ($115,600) $688,115

Total Capital $201,301 $85,701 $773,816

Total Liabilities and Capital $206,408 $120,719 $1,038,400

Net Worth $201,301 $85,701 $773,816

7.7 Business Ratios

Business ratio estimates are preliminary, and the Industry Profile is based on Standard Industry Code #3949, Sporting and
Athletic Goods.

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 0.00% 1566.67% -2.30%

Percent of Total Assets

Inventory 12.32% 0.00% 0.00% 26.00%

Other Current Assets 0.00% 0.00% 0.00% 26.30%

Total Current Assets 69.24% 52.37% 95.04% 75.10%

Long-term Assets 30.76% 47.63% 4.96% 24.90%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 2.47% 29.01% 25.48% 35.50%

Long-term Liabilities 0.00% 0.00% 0.00% 14.20%

Total Liabilities 2.47% 29.01% 25.48% 49.70%

Net Worth 97.53% 70.99% 74.52% 50.30%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 0.00% 73.81% 45.99% 37.50%

Selling, General & Administrative Expenses 0.00% 121.47% 28.96% 23.50%

Advertising Expenses 0.00% 2.47% 0.15% 1.60%

Profit Before Interest and Taxes 0.00% -47.25% 17.06% 2.70%

Main Ratios

Current 27.98 1.81 3.73 2.27

Quick 23.00 1.81 3.73 1.18

Total Debt to Total Assets 2.47% 29.01% 25.48% 49.70%

Pre-tax Return on Net Worth -24.19% -134.89% 88.92% 5.40%

Pre-tax Return on Assets -23.59% -95.76% 66.27% 10.70%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 0.00% -47.66% 17.02% n.a

Return on Equity -24.19% -134.89% 88.92% n.a

Activity Ratios

Inventory Turnover 0.00 0.00 0.00 n.a

Accounts Payable Turnover 10.70 12.17 12.17 n.a

Payment Days 27 20 16 n.a

Total Asset Turnover 0.00 2.01 3.89 n.a

Debt Ratios

Debt to Net Worth 0.03 0.41 0.34 n.a

Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios

Net Working Capital $137,801 $28,201 $722,316 n.a

Interest Coverage 0.00 -114.60 473.93 n.a

Additional Ratios

Assets to Sales n.a. 0.50 0.26 n.a

Current Debt/Total Assets 2% 29% 25% n.a

Acid Test 23.00 1.81 3.73 n.a

Sales/Net Worth 0.00 2.83 5.22 n.a

Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
 Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12

Sales

Body Armor 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Month Month Month

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12

Body Armor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

C.O.O. 0% $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

VP Sales and Marketing 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CEO 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Processing and Shipping 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Pro Forma Profit and 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

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Lost Margin on Retail units $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Expenses

Payroll $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Marketing/Promotion $0 $0 $0 $0 $0 $0 $450 $450 $450 $450 $18,450 $3,450

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $500 $500 $500

Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $500 $500 $500

Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $250 $250 $250

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,083 $1,083 $1,083

Payroll Taxes 20% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $0 $0 $0 $0 $0 $0 $3,450 $3,450 $3,450 $5,783 $23,783 $8,783

Profit Before Interest and

$0 $0 $0 $0 $0 $0 ($3,450) ($3,450) ($3,450) ($5,783) ($23,783) ($8,783)
Taxes

EBITDA $0 $0 $0 $0 $0 $0 ($3,450) ($3,450) ($3,450) ($5,283) ($23,283) ($8,283)

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit $0 $0 $0 $0 $0 $0 ($3,450) ($3,450) ($3,450) ($5,783) ($23,783) ($8,783)

Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Cash from Operations

Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash from Operations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Additional Cash Received

Sales Tax, VAT, HST/GST

0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $250,000 $0 $0 $0 $0 $0

Subtotal Cash Received $0 $0 $0 $0 $0 $0 $250,000 $0 $0 $0 $0 $0

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Bill Payments $0 $0 $0 $0 $0 $0 $15 $450 $450 $1,359 $27,472 $19,783

Subtotal Spent on Operations $0 $0 $0 $0 $0 $0 $3,015 $3,450 $3,450 $4,359 $30,472 $22,783

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

Other Liabilities Principal

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment

Long-term Liabilities Principal

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $65,000 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $0 $0 $0 $0 $0 $0 $3,015 $3,450 $68,450 $4,359 $30,472 $22,783

Net Cash Flow $0 $0 $0 $0 $0 $0 $246,985 ($3,450) ($68,450) ($4,359) ($30,472) ($22,783)

Cash Balance $0 $0 $0 $0 $0 $0 $246,985 $243,535 $175,085 $170,726 $140,254 $117,471

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Assets Starting Balances

Current Assets

Cash $0 $0 $0 $0 $0 $0 $0 $246,985 $243,535 $175,085 $170,726 $140,254 $117,471

Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25,437 $25,437 $25,437

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $0 $0 $0 $0 $0 $0 $0 $246,985 $243,535 $175,085 $196,163 $165,691 $142,908

Long-term Assets

Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $65,000 $65,000 $65,000 $65,000

Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500 $1,000 $1,500

Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $65,000 $64,500 $64,000 $63,500

Total Assets $0 $0 $0 $0 $0 $0 $0 $246,985 $243,535 $240,085 $260,663 $229,691 $206,408

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Liabilities

Accounts Payable $0 $0 $0 $0 $0 $0 $0 $435 $435 $435 $26,796 $19,607 $5,107

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $0 $0 $0 $0 $0 $0 $0 $435 $435 $435 $26,796 $19,607 $5,107

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $0 $0 $0 $0 $0 $0 $0 $435 $435 $435 $26,796 $19,607 $5,107

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000

Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings $0 $0 $0 $0 $0 $0 $0 ($3,450) ($6,900) ($10,350) ($16,133) ($39,916) ($48,699)

Total Capital $0 $0 $0 $0 $0 $0 $0 $246,550 $243,100 $239,650 $233,867 $210,084 $201,301

Total Liabilities and Capital $0 $0 $0 $0 $0 $0 $0 $246,985 $243,535 $240,085 $260,663 $229,691 $206,408

Net Worth $0 $0 $0 $0 $0 $0 $0 $246,550 $243,100 $239,650 $233,867 $210,084 $201,301

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