Business Plan

Ava, Kennedy & Philip
Prince, LLC
Business Plan
Philip Prince
213-344-9275
[email protected]
Ava Avione
760-527-0608
[email protected]
Confidentiality Agreement
2
The undersigned reader acknowledges that the information provided by Ava, Kennedy & Philip Prince, LLC in this
business plan is confidential; therefore, the reader agrees not to disclose any information contained within the
business plan without the express written consent and permission of Ava, Kennedy & Philip Prince, LLC.
It is acknowledged by reader that any information to be furnished in this business plan is, in all respects, confidential
in nature (other than information that is in the public domain through other means), and that any disclosure or use of
same by reader may cause serious harm or damage to Ava, Kennedy & Philip Prince, LLC.
This document is to be returned to Ava, Kennedy & Philip Prince, LLC immediately upon request.
This is a business plan. It does not imply an offering of securities.
_____________________________________
Signature
___________________________________
Name (typed or printed)
______________________
Date
Mission Statement
3
“Ava Avione has been painting for more than 50 years and is one of the
world’s premier contemporary artists. She has created over 80 living
museums throughout the globe and her collections are owned by major
corporations and celebrities. She deals exclusively in the private market
which maintains the integrity and value of her work, that sell in excess
of $1 million for each piece. In addition to being a renowned artist, Ava
is also an accomplished architect, poet, photographer, writer, pilot and
Renaissance woman. 140 of her masterwork paintings will be copied
and be the basis of this innovative business venture, which will offer
unique clothing, exquisite bulk fabric, home décor items, and limited
edition paper prints to the worldwide market.”
Executive Summary
4
The retail apparel market has proven to be one of the consistently strong earning sectors during this time of economic fluctuation.
Ava, Kennedy & Philip Prince, LLC is technically a start-up company, however, it is led by a team of individuals with a long history
of marketing celebrity driven apparel products and high end silk products from the design stage, manufacturing, advertising,
marketing, sales distribution and business management. The background and experience level of the Ava, Kennedy & Philip Prince
management team provides Ava, Kennedy & Philip Prince with a tremendous competitive advantage in that Ava, Kennedy & Philip
Prince design capabilities and client base are of the highest caliber, while the cost of manufacturing, importing, sales, and delivery
are kept to a minimum, providing for maximized potential profit per item. Ava, Kennedy & Philip Prince, LLC‟s Managing Member
is the Web Event Network, headed by David Gianulias and his extensive staff of experienced professionals. Mr. Gianulias himself
is a seasoned entrepreneur with an extensive background in product creation and distribution, business management and a long
family tradition of successful company development. The design team is headed by Phillip Prince, a designer of high quality,
celebrity driven products that have graced the showrooms of Saks Fifth Avenue, Bloomingdales, Neiman Marcus, Lord „N Taylor,
Burdines, Macy‟s and many other niche, high-end specialty stores. A host of “behind the scenes” entertainment notables have
elected to provide both clients and expertise to Ava, Kennedy & Philip Prince including Paul Ring, Joel Newman, and Russ Regan,
among other prominent industry experts (their bios are given in the Management Summary below).
Ava, Kennedy & Philip Prince is partnering with Ava Avione, a master painter of dimensional expressionism with a 50 years of
creative experience. This strategic relationship will lead the company to offer the Ava Creations line of silk clothing, home décor
items, and fabric. The Company will also offer limited edition framed prints. Ava has created over 30,000 master paintings during
her highly acclaimed career and 140 of these will be used to create these unique items for Ava, Kennedy & Philip Prince. Being
involved in the private art dealing sector for many years, Ava is a seasoned businesswoman. She is an investor and will be actively
involved in the business management operations of this venture.
Ava, Kennedy & Philip Prince has begun the manufacture and distribution of its first premium silk jersey depicting the Fresco
design of the legendary Tony Dorsett emblazoned on a Ava, Kennedy & Philip Prince Game Jersey endorsed by the NFL Hall of
Famer for the Saks Fifth Avenue store chain. Saks anticipates selling 3-5 thousand of those initial Jerseys at a retail price of about
$200. In addition to sales to the general public, products designed and marketed by Ava, Kennedy & Philip Prince will be worn by
celebrities and musical groups. According to Cotton Incorporated, 55% of young fashion innovators aged 16-24 look to the
celebrities for fashion direction (obtained at: www.cottoninc.com).
Executive Summary cont.
5
Ava, Kennedy & Philip Prince will continually market its superior, art-laden silk-based jerseys, jackets, pants, sports apparel, and
accessories, through a variety of dynamic marketing campaigns including celebrity endorsements, social networking sites, userfriendly e-commerce websites, concert sponsorships, viral marketing, blog sites, conventional retail outlets, in-store displays, and all
other forms of Digital, Internet and Mobile Marketing technologies.
Ava, Kennedy & Philip Prince also has a licensing agreement with Insutex from Innovative Design, Inc. to use its fiber in the
production of its silk products. This fiber is insulating, windproof, and water resistant. Because of its licensing agreement, the
Company is able to provide clothing products designed for harsh, cold temperatures that can be worn at 40 degrees below zero.
Keys to Success
6
The following keys to success have been determined as essential to obtaining the Company’s primary
objectives:

Utilize the management team’s networking abilities to stay on the forefront of marketplace
innovation

Deliver a line of products that are of high quality and fashionable

Control all areas of the product – from conception to distribution

Perform operations at a low cost at all times

Introduce cutting edge materials in apparel that are made from the finest silk

Commitment to building a superior client base of celebrities and highly esteemed individuals/groups

Facilitate partnerships with well known retail establishments

Become a household brand in the retail fashion, home design, media and entertainment industries

Become a prominent force and continue to promote an influential product in music videos and
concerts
Business Objectives
7
Ava, Kennedy & Philip Prince proposes to leverage its competitive advantages to achieve the
following objectives:

Generate enough revenue and endorsement deals to expand its product line

Create a versatile brand and household name that changes the face of fashion

Become a recognizable sponsor of concerts and key celebrity events

Minimize costs to control the entire process of development through retail marketing

Build a uniform strategy for the launch of its multi-faceted product lines

Establish a prominent presence across all media outlets

Foster key relationships in the entertainment realm

Unleash an extensive marketing plan to attract global brand attention
Funding Objectives
8
The Company is seeking investment of $10 million as it moves from the pre-sales
development stage into the Sales and Marketing phase of it operations.
The owners have contributed approximately $1,000,000 to bring the development of
Ava, Kennedy & Philip Prince to its current level.
Funding is primarily allocated toward marketing, facilities (such as the Sample Shop,
Silk Farm Improvements, Showrooms, and housing), as well as working capital as
indicated in the financials below (see slide #27 Funding Objectives).
Having the Sample Shop based in China allows Ava, Kennedy & Philip Prince to meet
the buyer’s demands for Prototypes (garment samples). To date, Ava, Kennedy & Philip
Prince Prototypes were designed in the United States and manufactured in China. This
process always causes Prototype creation to take months. The Sample Shop allows Ava,
Kennedy & Philip Prince to manufacture Prototypes in a few days, The Prototypes
directly initiate sales. The Ava, Kennedy & Philip Prince Sample Shop will manufacture
high technology silk-ware. No Sample Shop of this kind exists anywhere in the world,
let alone placing it where Ava, Kennedy & Philip Prince owns its own Silk Farm,
Hangzhou City, the silk capital of China.
A complete financial forecast and use of funds may be found at the end of this
document.
Ownership and Company Structure
9
Ava, Kennedy & Philip Prince is a Limited Liability Company registered in the state of Nevada. Ava, Kennedy & Philip
Prince, LLC. It is owned by four business entities: Rock Shore Investments, LLC (25%), Design Financial Group (25%),
Ava Creations (5%) AZ Giles, LLC (25%), Fresco School Productions, Inc. (5%) and Transtar Transportations (5%).
The remaining 15% is held in the Ava, Kennedy & Philip Prince treasury for a possible future investor. The Company will
have three arms of operation including manufacturing/design, distribution, and marketing/entertainment. Ava, Kennedy
& Philip Prince is registered as an LLC at the following address:
4625 W. Nevso Drive, Suite 3
Las Vegas, Nevada 89103
10
Description of Ava, Kennedy &
Philip Prince, LLC
From a creative perspective, Ava, Kennedy & Philip Prince is a designer and manufacturer of first-to-market silk apparel
product that will gain immediate market attention via its celebrity endorsement with former NFL star and now hall-of-famer
Tony Dorsett. Founded by Phillip Prince, one of the most innovative, urban designers of today, the Company is well
prepared to launch a revolutionary style of silk that stretches, is thermal, lightweight, and luxurious. Mr. Prince has been
involved in fashion since the 1960s when he outfitted Jimi Hendrix, Mick Jagger, Alice Cooper, and Janis Joplin
among others. He created the world-famous tuxedo T-shirt worn by The Beatles at the Academy Awards in 1976. The
tuxedo shirt sold over $20 million in its first year. Since then, Mr. Prince has enjoyed preferred celebrity designer status
creating clothing for Cher, Mariah Carey, Toni Braxton, Smokey Robinson, Snoop Dogg, and others. Phillip Prince
went on to form New York City based International Design Team Corp. and began private label designing for Saks Fifth
Avenue, Bloomingdales, Neiman Marcus, Lord „N Taylor, Burdines, Macy‟s and other specialty stores. Mr. Prince
has said of his newly designed clothing, “I am very excited and proud to be involved in such an innovative product.
Combining silk with Insultex has created a brand new apparel category for the high fashion industry. Women will now be
able to ski in Aspen in sexy silk ski apparel, while simultaneously being protected from the winter weather and its harsh
elements” (obtained at the online press release on Yahoo.com: “Innovative Designs Signs Licensing Agreement with Phillip
Prince.”
A full range of clothing will soon be introduced by Ava, Kennedy & Philip Prince that includes sports jerseys, sportswear,
coats, jackets, and high fashion apparel. Its first product, the Tony Dorsett Signature Series Jersey is made from 100% pure
silk and features a very fine Fresco art image of the legendary Tony Dorsett in action on the football field as well as his
exclusive autograph signature inscribed on the high quality fabric.
Additional Phillip Prince‟s silk designs span a wide range of apparel categories targeted primarily at women, many of which
are also appropriate for men (see Market Segmentation). The Company‟s design collections will include the Fresco coat and
clothing collection, silk denim jackets coats, military jackets, Phillip Prince sports apparel, and shoes and accessories. An
additional collection includes the Speed City Fashion brand designed for the auto racing industry and the Silk Fashion
Gallery, which is catered towards professional working women who have a dignified fashion taste and lean towards high
quality silk products. Beyond that, the Ava, Kennedy & Philip Prince Luxury Collection includes jackets, skirts, suits, pants,
and accessories that will be targeted at women who generate incomes of $250,000 per year and higher.
Product Images
11
Overview of Prevalent Industries
12
Because the Company will have three business arms – marketing, manufacturing, and distribution – it will therefore
operate in three industries. According to Dun & Bradstreet, a provider of U.S. business credit information and credit
reports, Ava, Kennedy & Philip Prince will be a player in the Apparel Manufacturing (SIC codes 2253 and 2353), the
Retail Sector (SIC codes 52, 53, 54, 55, 56, 57, 58, and 59), and the Advertising and Marketing industry (SIC codes
7311, 7312, 7313, 7319, 7331, and 8743). An overview of the aforementioned industries is provided below, which
paints a broader picture of the probability for market success.
Apparel Manufacturing
The US apparel manufacturing industry includes about 10,000
companies that have combined annual revenue of about $20 billion.
Large companies include VF Corporation, Levi Strauss, and Warnaco.
The industry is fragmented: the 50 largest companies generate less
than 40 percent of revenue. The industry includes knitting mills, but
most apparel is cut and sewn.
Retail Sector
The US retail industry includes about 1 million outlets with combined
annual revenue of more than $4 trillion. Major companies include WalMart, Home Depot, Kroger, Costco, and Target. While large companies
dominate some retail sectors (such as mass merchandisers and
grocery stores), other sectors (such as auto dealers and convenience
stores) are highly disjointed. Many specialty retailers are single-store
operations.
Advertising and Marketing
The US advertising and marketing services industry includes about 35,000
companies with combined annual revenue of about $80 billion. Major
companies include Interpublic, Omnicom, Publicis, and WPP. The industry is
fragmented: the top 50 companies generate less than 40 percent of revenue.
Market Trends
13
It is necessary to analyze prominent market trends in the three industries in which Ava, Kennedy & Philip Prince will operate.
Consumer trends are constantly changing due to the economic climate; Ava, Kennedy & Philip Prince is aware of this and
intends to become a dominant force by paying close attention to any movement in the specific markets. This information was
provided by FirstResearch.com.
Consumer Spending Index Rises: The Consumer Spending Index grew by 1.4% in June 2009 from May 2009, a sign that
shoppers may be feeling optimistic about their spending habits and economic growth. This index is measured by tax burden,
initial unemployment claims, real wages, and real home prices as a way to record consumer cash flow and predict future
spending. Consumer spending figures for Q4 2009 show increases over Q3 (adjusted for the holidays) hard numbers become
available in February 2010. Markedly, a weakened housing market paired with the harsh economic conditions has driven
growth in the retail sector – retail sales (excluding restaurants and other food services) growth decreased by more than 6% to
just under 4% between 2004 and 2007.
Consolidation: U.S. apparel manufacturers have restructured efforts to decrease losses; some retailers and manufacturers are
also developing their own brands to stay afloat in the economic recession. To bolster profit margins, apparel businesses are
diversifying their revenue base with new product lines and directions – a key component that will be imperative to the success
of the Ava, Kennedy & Philip Prince business model.
Evolution of Advertising: To promote its various brands and products, Ava, Kennedy & Philip Prince will exploit the power
of Internet, mobile, and in-store advertising. Companies highly rely on the development of content-rich and visually
stimulating websites to spur brand recognition and product sales. Advertising experts report that in-store marketing is a
growing trend that has resulted in double-digit sales increases for the product being advertised. In-store advertising includes
the use of shelf-talkers and end-aisle displays. Finally, mobile marketing has exploded as a new and effective form of
advertising and is estimated to be worth a staggering $50 billion by 2014 (obtained at: mobilemarketer.com).
Celebrity Influence: Celebrities‟ power, money, and beauty are undoubtedly influential in reinforcing a product‟s name in the
fashion industry. Joanne Stoner, founder of Edressme.com comments, “What the celebrities choose impacts every market, not
just eveningwear. They‟ve turned into a virtual and literal spotlight on fashion.” Cotton Incorporated found that 55% of young
fashion innovators aged 16-24 look to the celebrities for fashion direction (obtained at: www.cottoninc.com).
Silk Market
14
Legend says that silk fibers were discovered in 2640 B.C. when the Lady His-Ling, wife of emperor Huang-II, accidentally had a
silkworm cocoon drop in her teacup and saw it dissolve into threads; when she fished it out of the cup, she saw how strong the
threads were. Silk dyes well, it can be woven or knit, and it's warm, making it ideal for the bite of Chinese winters. Silk is a highend fabric that has been worn and admired by both men and women for centuries.
After silkworm larvae hatch from their eggs, they eat local mulberry leaves for up to a month (the worms supposedly prefer them
chapped), and are then placed on wooden racks, where they start spinning cocoons. Before the silkworm can erupt as a moth,
though, it is steamed or baked, to prevent the cocoon from being damaged; one unbroken cocoon can produce up to a mile of silk
filament, which is then woven into thread.
There are five annual silk harvests. The first, in early spring, provides the strongest grade of fiber. Quality diminishes after that; the
last harvest, in October, is the pits, gritty and scratchy. The higher the grade, the better the "hand" - the way the fabric is feels and
drapes to the touch - and the better the fabric's ability to take dye.
World silk production has doubled during the last 30 years in spite of “man made” fibers
replacing silk for some of its uses. China and Japan are the main producers of silk.
Together, these countries produce more than 50% of the world production of silk each
year. In the late 1970s, China dramatically increased its silk production, which
cemented its spot as the world‟s leading producer of silk. In 2003, silk exports exceeded
$2.18 billion in the U.S. China‟s exports of silk commodities, including mulberry silk
and its products as well as silk-woven fabrics increased by 10.9% between January and
October 2003.
The Ava, Kennedy & Philip Prince product line is anchored by a stretch and woven
combination of pure Jersey woven silk combined with Insultex for thermal insulation.
There is no other fabric like it, or more desirable, for high end silk garments and, the
fabric is exclusive worldwide to Ava, Kennedy & Philip Prince.
Ava Creations
15
The Ava Creations line will include a variety of items all created using the art of Ava Avione. Ava‟s paintings have deep and rich
renaissance colors, being painted with true pigments rather than artist paints. The pigments reach to the bottom of the pool in every
color combined with gold leafing, metallic, pearlescent, and ground jewels. The materials reflect the paintings multi-dimensionally.
Finishes are brilliant shiny mirror like lacquers steeping the viewer in the past of Rembrandt oils combined with the future of
holographic illusions.
The images are as varied and unexpected as life, expressing extremes from asceticism to fecundity. Her statements cover full range
from spiritual realism to abstract emotion. With an emphasis on her architectural drafting and rendering background, Ava has mastered
the skills of artistry. She has been celebrated by celebrities and fine art collectors worldwide. Ava has created and helped execute many
revolutionary concept designs in architecture including resorts, temples, commercial projects, and shopping centers worldwide.
All items in the Ava Creations line will be produced in the U.S. and offered on a national market through online and a variety of other
promotional efforts.
Clothing: Large rolls of silk will be printed with Ava Avione‟s masterworks and then cut and sewn into high fashion clothing items
such as pants, jackets, shirts, blouses, skirts. This unique clothing line will be targeted toward professional working women with a taste
for elegant, high quality silk products.
Home décor: Bed sheets, pillowcases, blankets, wall coverings, etc.
Bulk Fabric: Rolls of printed silk will be marketed towards high profile fashion designers and interior decorators.
Framed Prints: Limited edition 20” x 30” framed paper prints will be available for $300.
Samples of Ava’s art that will be used can are shown on the following pages.
Ava Avione Art Samples
16
Ava Avione Art Samples cont.
17
Fresco Collection
18
Each individual personally identifies with the monuments of the past as the being part of the cultural identity – and in
doing so identifies with fresco paintings as the integral part of the “nation‟s heritage” even on a subconscious level.
Tapping into the cultural identity pool of “subconsciously pre-approved imagery” guarantees the acceptance and
consequently success of our “Fresco Fashion” lines.
Each line of clothing within the Company‟s Fresco Collections taps into the cultural heritage through created original
fresco art works inspired and using recognizable elements of the frescoes found throughout the history. Original Frescoes
will be hand painted by an acclaimed Fresco Master iLia Anossov (fresco) and his school (Fresco School). The elements
used are: color, techniques, styles, decorative forms and themes. The artworks are reproduced on silk fabrics from which
fashions are individually constructed and assembled into themed collections. Below are samples from the previously
produced Egyptian Fresco theme.
Fresco Collection cont.
19
What is Fresco?
In it's essence, fresco painting is an application of natural mineral pigments to a wet plaster, as plaster dries and becomes
limestone (marble) pigments get permanently bound into the surface of the wall. With earliest known examples from over
40,000 ago, fresco painting is the most practiced method of painting present in every culture and utilized by every known
civilization for decorating of the most treasured environments, palaces, public places. Below are two samples of iLia
Anossov‟s artwork that will be featured in the Fresco Collection.
There will be four Fresco Collections with yearly release of the new
collection and quarterly update of each year's collection with new
fashions, accessories, etc. using the theme of that year's collection.
Year One: “Roman Fresco Collection” representing Classic European
Fresco and Western Art/Civilization, inspired by Renaissance period,
Art of Roman Empire, Pompeii, with updates including Russian,
Mediterranean, Arabesque, and Egyptian
Year Two: “Fresco of the Americas” representing/inspired by frescoes
and art monuments created by cultures and civilizations of the
Americas, Aztec, Inca, Toltec, Rock Painting/frescoes of the Native
Americans
Year Three: “Asian Fresco Collection” representing/inspired by
frescoes and art monuments of cultures of the Asia - China, India,
Oceania, Etc.
Year Four: “Contemporary Fresco Collection” inspired by
contemporary frescoes.
Market Segmentation
20
Based on the aforementioned market analysis, Ava, Kennedy & Philip Prince, LLC has
designated the following groups as its primary target markets:

Women: 90% women; income of at least $250,000 and higher single, married,
fashionable, etc.

Ages 29-59 age group

Men: 10% of market; pay close attention to dressing in tandem with today‟s trends;
income of at least $250,000

Endorsing Celebrities: Singers, song-writers, musicians, soloists, actors, actresses,
stage performers and musical.
Competition
21
Ava, Kennedy & Philip Prince understands the need to continually track and observe the competitive
landscape. Any business that provides similar apparel and/or silk products as an alternative to the
Company‟s offerings must be viewed as a primary or secondary competitor. The following competitor
has underscored the impetus of expanding the Company‟s silk apparel lines into its selected market. As
such, the Company plans to capitalize on the weaknesses of its main competitor to increase its
profitability and market share. Strengths and weaknesses of the primary competitor are highlighted
below.
August Silk
Strengths and Company Information: August Silk operates primarily through its e-commerce website,
www.augustsilk.com. Currently, this is the only dominant player in the silk apparel industry. With a
very broad product line consisting of jackets, pants, skirts, scarves, and dresses, August Silk has carved
itself a major position in the market. Founded in 1991, August Silk was the first to address the needs of
women‟s fashion demands with the introduction of washable woven silk.
Weaknesses: Based in Hong Kong, this competitor features a product that is higher in cost. The
company does not own a silk farm and everything with regard to its operations is contracted out. The
designers utilized by August Silk only specialize in silk design and do not dabble in other fabric types.
August Silk has not capitalized on celebrity driven product and the lift entertainment vehicles add to
sales and marketing efforts.
Competitive Advantages
22
Ava, Kennedy & Philip Prince has designed its business model to exceed the expectations of consumers and outperform
the aforementioned major competitor. As such, the Company plans build upon the following competitive advantages:
 Product was designed by one of the most influential designers of today for his one-of-kind silk garments
 This new type of silk that has been introduced to the market is unlike any other silk apparel product available
 Ava, Kennedy & Philip Prince has already fostered a relationship with Mr. Tony Dorsett to wear and promote the
clothing line for branding
and exposure purposes. A host of other “A List” athletes and celebrities have expressed similar interest and intend to
become part of the Ava, Kennedy & Philip Prince family.
Phillip Prince will utilize his name and connections to move his products into the apparel market
High-quality apparel that is unavailable today and that can be bought at a price that accommodates most incomes
The Company’s entertainment arm will be responsible for securing deals at concerts and at musical events, which will
undoubtedly lead to greater visibility among young individuals who look up to their celebrity icons and want to wear
what they’re wearing
 High quality, versatile product that is “sexy and trendy” yet able to withstand harsh winter elements
 Marketing/advertising arm of the company will orchestrate the promotion and placement of the product in retail
stores in the U.S. and globally
 Ava, Kennedy & Philip Prince’ management team consists of industry veterans who have relationships with
Hollywood’s hottest athletes and
stars, which Ava, Kennedy & Philip Prince will use to gain further endorsement deals
SWOT Analysis
23
Ava, Kennedy & Philip Prince, LLC has performed the following SWOT (strengths, weaknesses, opportunities, and threats) analysis
to better understand its position in the marketplace. The SWOT analysis will also enhance the Company‟s ability to recognize its
own unique strengths and weaknesses while taking advantage of market opportunities that may exist.
SWOT Analysis
Description
Strengths
Weaknesses
Opportunities
Threats
Application/Mitigation
First and foremost, the Company’s designer Phillip
Prince is well known in the fashion world and has
developed longstanding ties and relationships with
some of the most prominent industry players as
well as celebrities. Experienced, Global
Administrative Management is in place.
These strengths will speak well for initial market
success of its product lines. The Management
Team’s combined experience and access to
global distribution outlets will be one of the
Company’s primary competitive advantages.
The apparel market can fluctuate depending on the
state of the economy, and more retail stores are
developing their own brand as an additional source
of income.
In order to show its mass market appeal, the
Company’s celebrity driven products and a highly
dynamic and effective marketing strategy will
raise awareness and demonstrate its quality on a
global scale.
Attaining cash flow, strong yearly revenues, a
household name and brand, celebrity
endorsements, comfort and durability in its product
line, and customer satisfaction at the retail level
The Company’s base of connections,
management team, and expertise will be
instrumental to ensuring maximum marketplace
exposure and penetration.
Competing with thousands of other brands and
designers that promote the idea that their brand is
superior could be a challenge. However, Ava,
Kennedy & Philip Prince has the innovative
product, better price points and will always come
out on top when a comparison is made.
With strong funding bases and excellent
Management, Ava, Kennedy & Philip Prince will
implement its marketing plan and gain significant
market share. Celebrity driven product creates its
own buzz in the market and Ava, Kennedy &
Philip Prince is the only company in that market
space.
Risk Analysis
24
In order to mitigate any unforeseen market circumstances and to prepare for worst case scenarios, the Company has developed a
list of potential risks and their respective solutions.
Risk Analysis
Foreign Production
Ava, Kennedy & Philip Prince already owns a silk farm in the silk capital of the world,
Hang Chou, China, where more than 90% of the world’s silk is produced; this region
has the capacity to generate more than $100 million dollars worth of silk per year.
The Company anticipates acquiring a neighboring farm of approximately 1,000 acres.
Production overseas will keep up with consumer demand while keeping costs low –
and further, the ownership will oversee its assembly team to ensure ethical working
standards. Furthermore, the Company is building its own Sample Shop that will help
create jobs and garner the interest and support of the Chinese government.
Dependence on Large Retailers
Many apparel manufacturers depend on a few customers for most revenue
generated. Large clothing chains account for a large portion of industry sales. The
growth of large chains also cuts smaller manufacturers out of large orders because
they're unable to supply the quantity of goods needed. However; the Ava, Kennedy &
Philip Prince management team has over 400 years of combined experience and has
formed relationships, contacts, and connections within all the sectors of Hollywood’s
most highly esteemed and recognized celebrities. This ensures that thousands of
retail establishments, both nationally and globally will take immediate interest in the
unique lines developed by Ava, Kennedy & Philip Prince. The Company will also sell
online and at concerts and events through its connection with Stefanos Yohannes, a
leader in entertainment merchandising company.
Lower Profitability
Although a risk for most apparel manufacturers, Ava, Kennedy & Philip Prince
controls the process from design, manufacturing and distribution without having to
outsource to third parties. The unique Management and Design Team will control
metrics that insure the lowest cost-to-market and highest industry profitability.
24
Marketing Strategy
25
Ava, Kennedy & Philip Prince, LLC is currently utilizing a comprehensive marketing campaign to raise awareness of its
unique silk garments specifically tailored to the trendsetting individual. The Company‟s marketing and advertising business
arm oversees all advertising efforts to ensure that the target audience is well exposed to its products through its celebrity
connections and endorsements. The Company‟s experience working in the entertainment industry gives it a noticeable
competitive advantage in making sure that Ava, Kennedy & Philip Prince products are placed and worn in music videos, CD
covers, promotions, television shows and advertising, magazines, film projects and video games. Ava, Kennedy & Philip
Prince is preparing its lines for 2010 for scores of media projects and events. The following advertising methods and
modalities will underscore the Ava, Kennedy & Philip Prince brand, its superiority, and progressive design.
 Website Ava, Kennedy & Philip PrinceStyle.com in development with a QuickTime video established
 Search Engine Optimization of its website to garner a high ranking on search engines
 Word of Mouth buzz from industry insiders, designers, celebrities, and satisfied customers
 Celebrity Endorsements from prominent athletes, musicians, musical groups/brands, speakers, and actors
 Established Relationships and Connections
 Modular store retail outlets will be used to gain interest in China as a means to market the clothing products. These modular stores will include
media elements and dressing rooms. They are collapsible stores that are adaptable to any environment. It only takes 45 minutes to construct.
 In-store Displays to promote its brand and instill recognition of its name in the apparel industry
 Mobile marketing via “text to win” promotions for receiving jerseys and other apparel products
 Presence on Social Networks (i.e. Facebook and MySpace) via user profiles, viral discussion, blogsites, weblinks and corporate endorsements
 Merchandising at Concerts, Film Premiers, Sporting Events with the intention of outfitting major groups, solo acts, bands, actors, celebrities
 Celebrity and Corporate Attendance at Trade Shows
 Direct Marketing including e-mail, on-line, telephony, and all other forms of direct sales initiatives
Management Summary
26
Philip Prince, Lead Designer and Chairman
Mr. Prince has been involved in fashion designed since the 1960s when he outfitted
Jimi Hendrix, Mick Jagger, Alice Cooper, and Janis Joplin among others. He created
the world-famous tuxedo T-shirt worn by the Beatles at the Academy Awards in
1976. The tuxedo shirt brought in more than $20 million in its first year. Since then,
Mr. Prince has enjoyed preferred celebrity designer status as he has designed for
Cher, Mariah Carey, Toni Braxton, Smokey Robinson, Snoop Dogg, and others.
Phillip Prince went on to form New York City based International Design Team
Corp. and began private label designing for Saks Fifth Avenue, Bloomingdales,
Neiman Marcus, Lord „N Taylor, Burdines, Macy‟s, and other specialty stores.
In 1988, Phillip Prince made his first of many trips to China. He returned with a
commitment to concentrate his design work in silk. He developed new methods for
treating silk to produce previously unknown textures and characteristics that he has
submitted for patent approval. Mr. Prince continues to operate International Design
Team and has also incorporated Speed City Fast to concentrate on alternative silk
lines.
Mr. Prince complements his apparel design with extensive experience in designing
cosmetics and skin care products. Phillip Prince is a graduate of the New York
Fashion Institute of Technology. He also holds a Bachelor of Arts degree in Business
Administration and Advertising from Roosevelt University in Chicago.
As Founder, and the spirit behind Ava, Kennedy & Philip Prince, Mr. Prince is the
Lead Designer, Board Chairman and as a member of the Executive Committee he is
responsible for the expansion and Global Vision of the Company.
Management Summary continued
27
Ava Avione (aka Pamela Jeanne Weston)
An artist, architect, pilot, poet, businesswoman, and humanitarian, Ava Avione is truly a Renaissance
woman. Her career spans nearly fifty years, covering the globe. She is exuberant and sharp-minded,
deeply spiritually connected to life and to her art. Her methods have taken her primarily outside the
conventional art world.
Ava Avione is considered by many of the world‟s most notable art critics as one of the “finest living
artists in the world.” Her long list of clientele that includes the late Jacqueline Kennedy Onassis,
Madonna, Michael Jackson, the New York Stock Exchange, Queen Elizabeth, Patti Labelle and many
others.
Ava has exhibited in over eighty countries and has experimented with endless styles. She is a force of
art in nature of her own right, constantly creating a vibrant path of ever evolving art styles and
techniques. Her paintings range from that of scintillating energies, to super-realism, to her latest art
movement of dimensional expressionism.
Ava is also known as a corporate painter having been collected by over one hundred major
corporations. Ava has assisted thousands of artists in their philosophical and financial growth.
Ava‟s paintings have been successfully marketed worldwide from $10,000 for small pieces to $1
million for her large masterworks. Private dealers have sold over $500 Million worth of Ava‟s
paintings since 1983.
One of her missions has been to change the way artists fit into the world economy. “I have been able
to blend my passion with my creativity and many corporations have found these attributes connect
with their employees through my art.”
Management Summary continued
28
Ava and her paintings are larger than life and they have been an inspirational force to millions. Ava has exhibited in major museums,
magazines, newspapers, concerts, and in television and computer media worldwide. She has created and helped execute many
revolutionary concept designs in architecture including resorts, temples, commercial projects, and shopping centers worldwide. Her
paintings have graced billboards on Sunset Strip in Hollywood and in Beverly Hills.
She painted in eighteen karat gold for one year while in Rome studying Michelangelo‟s, Bernini‟s, and Leonardo De Vinci‟s
Architecture and Sculpture at the Vatican, creating exquisite paintings inspired by these studies.
Previously, Ava occupied (as the sole person) several high-rises in San Diego, CA, Dallas TX, San Francisco Bay Area, and Midland,
TX, where hundreds of her paintings were on display and amazing production and distribution occurred.
Ava was born in Boston, MA and now resides in Southern California on a large estate that also serves as her primary studio. She
attended University California, Berkeley, and received Bachelors and Masters degrees in Architecture from the University of Oregon.
She is generous and open-hearted, professional, fun, always surprising and a constant student: she recently completed a year of study
to learn computer encoding, website building and many other tech-based skills.
Bio by by Lenedra Carroll
Management Summary Continued
29
David Gianulias, Managing Member
Among the assets currently owned and under the oversight of Mr.Gianulias are the 3 G Companies and its affiliates. This is
a Newport Beach, California consortium of 46 companies with diversified interests in Entertainment, Design, Fashion,
Product Manufacture and Distribution, Communications, Real Estate Ownership/Construction/Management, Global Wine
Importing and Distribution for Hello Kitty, Kona Coffee Plantations and now Ava, Kennedy & Philip Prince. Originally a
third generation homebuilder, David Gianulias took control of Hester Development in 1996, adding to the more than 30,000
homes built and sold by his grandfather, Charley Hester and then focused on expanding the reach of 3 G Companies into the
market sectors mentioned above. His staff varies in size from 90 to 125 people that administrate, design, develop, exploit
and expand his consortium of companies. In mid 2009 Ava, Kennedy & Philip Prince founder, Phillip Prince approached Mr.
Gianulias to provide the management and direction for Ava, Kennedy & Philip Prince and assist him in achieving his “short
term goal” of creating a company doing $100 million a year while preparing to expand on a global basis. Mr. Gianulias
brought in his management team and staff and together they began to put the Ava, Kennedy & Philip Prince marketing plan
into effect. Mr. Gianulias has assembled the necessary management personnel to administrate all the components of the
sales and marketing efforts of Ava, Kennedy & Philip Prince and Phillip Prince. These industry professionals have over 400
years of experience in the Entertainment, Advertising, Communications, Design, Manufacturing and Leisure Time
Industries. Their credits include more than 100 Gold and 50 Platinum CDs, and clients that have won dozens of Grammies,
Emmys, 11 Academy Award Nominations and Academy Awards. In addition to the credits you will see below, the
management staff includes the responsible Agents for artists such as The Who, The Bee Gees, Canned Heat, Petula Clark,
Jimi Hendrix, The Mamas and The Papas, The Fifth Dimension, The Animals, Telly Savalas, John Casavettes, William
Shatner, and Richard Pryor. Their Personal Management Credits for Television & Film include Lawrence Olivier, Harry
Belafonte, Norman Fell, Janet Dubois, Ian McShane, Danny Gans and Harry Blackstone. Their Music Credits include
Jeffrey Osborne & L.T.D., The O‟Jays, Harold Melvin and the Bluenotes, Teddy Pendergras, Larry Graham & Graham
Central Station, Billy Paul, The Three Degrees, Lou Rawls, The Manhattans and The Trammps.
Management Summary Continued
30
Larry Windsor, General Manager
Mr. Windsor, a graduate of Cornell University with a law degree from the University of Connecticut, brings decades of
experience in corporate America, public service, and private law practice to Ava, Kennedy & Philip Prince.. While practicing law
in Florida, he was approached to serve on the national staff of presidential candidate Sen. Edward Kennedy. After the campaign,
he was recruited by Group W Cable (Westinghouse) during the cable boom of the 1980‟s. He rose to General Manager of the
Torrance, CA system and established revenue and profit margins to such a degree that he was named Manager of the Year for his
efforts building and leading a team of 85 employees and taking revenues from $0 as a start-up to $10 million in two years. When
Westinghouse divested its cable business, he was recruited by Adelphia Communications to manage public and government
relationships with 90 franchising authorities covering six Southern California counties for 1.2 million cable customers. In
addition to high level management skills in communications and media, Mr. Windsor has a background in product sales and
marketing for big box outlets throughout the U.S. and acts as the General Manager for Mr. Gianulias in the areas of product
distribution and marketing and the Hello Kitty Wine franchise. At Ava, Kennedy & Philip Prince Mr. Windsor and his staff are
responsible for overseeing the smooth flow of manufactured product through the various stages of sales, marketing, branding and
revenue collection.
Management Summary
31
Ian B. Fletcher, Fashion Director
Australian filmmaker Ian Fletcher is an acclaimed Producer, Director, Writer or Director of Photography on hundreds of
music videos on MTV. He has directed large touring productions: the Emmy nominated “Dirty Dancing” – World Tour, Cher‟s
“Love Hurts” – World Tour and has directed and written numerous extravaganzas for Toyota hosted by Jay Leno and featuring
performances by Natalie Cole and the Red Hot Chili Peppers. Prior to his film career, Mr. Fletcher was a noted interior
designer in his native Australia. For two years he was Marketing Director/Head Designer for the prestigious House of Pavelli.
Later, Mr. Fletcher was recruited as a fashion designer and marketing specialist for Levis, Waltons Ltd and Trent Nathan to
design collections and establish distribution and promotion for their clothing lines. As National Marketing Director for
Waltons Ltd, Mr. Fletcher managed over eighty large Department Stores and was responsible for tens of millions in purchases
by departmental buyers.
Mr. Fletcher‟s music video credits include artists from Cher, Natalie Cole, Olivier Newton John, Bill Medley, The Rembrandts
and Eric Carmen to hard-edged rock and rap acts like Coolio, DJ Quick, Ice Cube, Spearhead, Collective Soul, Tool, Vince
Neil (Motley Crew), Anthrax to list a few. He created promotional music for Director John Hughes in the feature films Weird
Science and Pretty in Pink. Most recently, Mr. Fletching has dedicated his efforts toward two distinct projects: Chi and FTT.
“Chi” – a cultural and entertainment project is prominent in Mr. Fletcher‟s activities and slated to be launched as a Fine Art
Antiquities Exhibition and Entertainment Spectacular in 2010. FTT (Ferrate Treatment Technologies) is a water treatment
company which received illustrious recognition when granted “The Best and Brightest” Environmental Award by the Wall
Street Journal in 2004. At Ava, Kennedy & Philip Prince, Mr. Fletcher is developing projects and financial planning for the
company‟s branding and commercialization.
Management Summary Continued
32
Russ Regan, Director of Marketing
Russ has over 40 years of experience in the music business. He was the President of Uni Records and 20th Century Records; and
worked at Polygram and Motown. He has been described as the “Man with the Golden Ear.” He played a major role in the careers
of Elton John, Neil Diamond, Barry White, Olivia Newton-John and the Beach Boys. He also supervised the soundtracks for
“Flashdance,” “Chariots of Fire,” “The Karate Kid,” “Spinal Tap,” and “A Chorus Line.” The musical recordings Russ has been
involved with during his career have racked up sales of over one billion records worldwide. Russ and his Recording Industry
affiliate network of Independent Promotion, Marketing and Sales professionals, have working relationships with the Presidents,
CEOs and/or Senior Vice Presidents of all of the major Record Companies including Warner Brothers, EMI, Arista/BMG/ J
Records (Clive Davis), Universal Records, Def Jam, Virgin, Capital, Dreamworks, Interscope and A&M Records. They also have
working relationships with the “A” list of recording artists including such notables as Trace Adkins, Taylor Swift, The Dixie
Chicks, Justin Timberlake, Snoop Dog, Avril Levine, Miley Cyrus (Hannah Montana), Janet Jackson, Usher, 50 Cent, Jay-Z,
Beyonce, Sean „P. Diddy‟ Combs and a long list of others. At Ava, Kennedy & Philip Prince, Russ and his affiliate networks are
responsible for presenting the Ava, Kennedy & Philip Prince lines and products to his contact base and closing agreements between
music artists, their sponsors and Ava, Kennedy & Philip Prince..
Joel Newman, Director of Marketing
Hailing from the home of the Rock and Roll Hall of Fame in Cleveland, Ohio, Mr. Newman‟s dynamic career in entertainment
marketing began in Los Angeles. Joining the leading independent music distributor on the West Coast, as head of
Los Angeles promotion, he represented more than 200 labels including Stax-Volt, A&M, Motown, and Mercury Recording
Companies. Polydor Records/London Records recruited Mr. Newman to become their West Coast Regional Promotion Manager,
responsible for all formats of radio promotion, artist appearances in addition to overseeing five field representatives. He
participated in launching the careers of such acts as the Moody Blues, Al Green, ZZ Top and their first hit, “Tush.” He is an
ongoing supporter of the City of Hope, the National Academy of Recording Arts and Sciences and the National Association of
Record Merchandisers. At Ava, Kennedy & Philip Prince, Joel and he is affiliate networks are responsible for celebrity endorsements from the
music companies and artists. In addition, Joel has oversight of all music industry merchandising alliances.
Management Summary Continued
33
Kevin Dorsey, Vice President
Legendary producer Quincy Jones brought Mr. Kevin Dorsey into the business in 1984 after finishing Morehouse College in
Atlanta, Ga. As a Vocalist, Musician, Producer, Writer, Vocal Arranger, and Voice Over talent, Mr. Dorsey has worked with the top
artists of today and on some of the largest projects in the entertainment industry. Some of his credits include: The Color Purple,
Forrest Gump, Oh Brother Where Art Thou, Spiderman, The Fantastic Four, The Lion King, Men In Black, Austin Powers, Princess
Diaries, Law and Order, The A Team, Night Rider, American Idol, The Tonight Show, David Letterman, Elton John, Michael
Jackson, Lyle Lovett, Garth Brooks, Dolly Parton, Kenny Rogers, Stevie Wonder, Phil Collins, Rod Stewart, Sting, Luther Vandross,
Sammy Davis, Jr., Frank Sinatra, Gene Kelly, Ella Fitzgerald, and Ray Charles, among other prominent individuals and projects.
Additionally, Mr. Dorsey has served on the local and national boards of Aftra, and the Board of Governors for NARAS. Mr. Dorsey
is currently Chairman of the Artist Development Department at the California College of Music in Pasadena, CA. At Ava, Kennedy
& Philip Prince, Mr. Dorsey will use his network to generate celebrity product endorsement agreements to the Phillip Prince design
team.
Management Summary Continued
34
Paul Ring, Director of Universal Distribution
Paul Ring is a successful entrepreneur in the music industry. He is the CEO of Bungalo Records and Entertainment, a position which
encompasses management of all operations of the company including artist acquisition, budgeting, production, distribution, and
marketing. At age 19, Ring began his initial success in the music industry as a recording engineer with Capitol Records on the 1979
Grammy winning recording of “Boogie Oogie Oogie” with “Taste of Honey”. In 1980 through 1989 Ring had continued great success as
a recording engineer for Bobby Caldwell‟s #1 record “What you won‟t do for Love” and another #1 album for Greg Allman‟s comeback
record ”I‟m no angel”. With these and many other successful recordings Ring was all over the charts with top artists Smokey Robinson,
Jazz Crusaders, Gladys Knight, Jimmy Cliff, X, and the Temptations. In April 2000, Mr. Ring inked his own deal for Bungalo Records,
which is exclusively distributed by “Universal Music Distribution.” Bungalo‟s first major signing was platinum artist and producer DJ
QUIK. That was followed up with several more successful rap projects including Mack 10, Bizzybone and Suga Free. Mr. Ring‟s next
step was to build Bungalo‟s profile from the perennial West Coast rap label to a full service mainstream label. The current release schedule
boasts platinum artists Patti LaBelle, Carl Thomas, Tweet, and Heavy D. In January of 2007 Bungalo‟s release of Patti Labelle remained
at #1 on the Billboard charts for 10 weeks.
Mr. Ring has a heavy community involvement and awareness commitment with” The Points Of Lights Foundation” (POL) in bringing
relief to victims of Hurricane Katrina. Patti LaBelle‟s CD releases donate a portion of the proceeds to cancer research.
At Ava, Kennedy & Philip Prince, Mr. Ring will use his contacts in the film and music industries to expand the Ava, Kennedy & Philip
Prince promotion and artist endorsement base and generate brand awareness. All of the music related product developed by Ava, Kennedy
& Philip Prince will be released on the Bungalo/Universal label.
Management Summary Continued
35
JJ Brumfield, Marketing Associate
Mr. Brumfield previously served as the CEO of Movie Tunes, LLC, an in-cinema advertising company representing over 12,000
movie theatres nationwide. Prior to that he was the Co-Founder and CFO for Theatre Advertising Group, LLC a national sales
representation firm that represented Movie Tunes, Inc. in theatre national advertising sales. Here, he was responsible for
negotiating the acquisition of Movie Tunes, Inc. and securing the funding for the transaction. Previously was Co-Founder and
CFO of NBG Radio Network, Inc. a national radio syndication company with shows such as Hollywood Hamilton’s Weekend Top
30, Bigg Snoop Dogg Radio, Teein’ It Up with Peter Jacobsen, The John and Jeff Show, Dave Koz Radio Show, and many more.
He started the company with only one show, The Golden Age of Radio, and grew it producing more than 30 nationally syndicated
radio shows. Mr. Brumfield spent years in public accounting as well as playing professional golf at the Canadian PGA Tour level.
He attended Portland State University on a football scholarship and graduated with a Bachelor of Science in Accounting. At Ava,
Kennedy & Philip Prince, Mr. Brumfield will assist with all special marketing endeavors and expansion into the college and
university world where he and his partners control the advertising on 225 major U.S. college high def screens in the areas where
the students eat lunch and dinner.
Kennedy K. Sohn, Spokes Model
Ms. Sohn graduated from UCLA with a Bachelor of Arts degree in English in 2005. Since then, she has performed in numerous
stage plays and has worked with The Los Angeles Korean International Film Festival. Ms. Sohn has worked with Phillip
Prince as spokes model for The Modular Store Company and the House of Prince fashion companies. She will be featured as the
spokes model for Ava, Kennedy & Philip Prince in catalogs, billboards, TV commercials and Vogue magazine and other fashion
periodicals. As the Modular Store Company expands across Asia, Ms. Sohn will continue to demonstrate its use in malls on a
global scale.
Management Summary Continued
36
iLia Anossov –Artistic Director, Fresco Collection
To realize his vision, iLia Anossov (fresco) has intentionally created a dual career. A highly successful
professional fresco artist for the past 28 years, he‟s also the founder, owner and head instructor of the
well‐established Fresco School in Los Angeles, California. Since it‟s beginnings as The Nationwide Fresco
Painting Workshop Program in 1997, The Fresco School has grown to become the world‟s premiere
institution for instruction in the “Mother of All Arts,” the (buon) true fresco technique. Fresco has
unfortunately experienced a temporary decline throughout the turbulent 20th century, leaving only a handful
of living experts practicing this important and ancient art form. Through his continuous contributions to the
art of Fresco as both artist and educator, iLia is considered to be one of these recognized masters.
iLia has been widely exhibited in Russia, Europe and the U.S. including nine museum exhibitions and over 50 solo and group
exhibitions around the world. In 2003, he completed the “Albuquerque Fresco,” the largest contemporary buon fresco project in
the western US since Diego Rivera. Other commissions include large‐scale murals in world‐renowned sites such as the Grand
Central Market in Downtown Los Angeles, Augustus Tower and Caesars Palace in Las Vegas, Nevada as well as design and
production of the décor for the 76th Academy Awards Governors Ball. iLia‟s work and articles have been featured/published in a
number of catalogs, news papers, Internet art portals including Los Angeles Times, TrueFresco Art Network, Dan's Paper,
Downtown News (LA), Springfield News, Wall street Journal, Argonaut (LA), Pasadena Weekly, Pasadena Showcase House of
Design 2007, Faux Finish Magazine and many others.
Always eager to find more ways to infuse fresco into the lexicon of the contemporary world, iLia has designed a new line of
apparel, called The Fresco Collection. iLia teamed up with fashion designer Phillip Prince to head the Art Department of Ava,
Kennedy & Philip Prince, LLC. The collection consists of complete line of silk fashions with original modern fresco designs.
Another exclusive product of iLia‟s design for Ava, Kennedy & Philip Prince, LLC is a line of athletic jackets and football jerseys
called ¨The Tony Dorsett Hall of Fame Jackets and Jerseys.
Currently, iLia is creating a 3000 square foot fresco in the interior of a private residence in Malibu, California. His design for this
piece integrates several different styles of fresco and graffito from different eras of fresco history, similar to how frescoes appear
when one location is painted over time and time again over the course of many years. Blending the styles in this way, he layers
and juxtaposes the fresco designs, re-creating a stylized version that resembles centuries of frescoes being laid atop one another.
Management Summary Continued
37
John Kim, Interior Designer
John Kim is an established Practice Architect and Interior Designer who is currently working in HNTB Corporation – ranked one
of the top 10 firms of Architecture in the nation. His emphasis is in Interior Design, Planning in nationwide projects. His areas of
technical expertise include: REVIT, AutoCAD, Graphics, and 3D visualization. His background in Interior Design and
Architecture allows a broad, yet integrated viewpoint in approaching planning and design work. Mr. Kim is one of the Executive
Interior Designer for the modular stores of Ava, Kennedy & Philip Prince Company and the companies other retail outlets.
Relevant Work Experience includes the following:
Los Angeles International Airport Advanced Planning – Los Angeles, CA – Member on the Facilities on Advanced Planning Team
for implementation of the $11 billion LAX Master Plan. HNTB was responsible for planning, programming and design guidelines
for Intermodal Transportation Center, Consolidated Rental Car Facility, Ground Transportation Center, Central Terminal Area,
Tom Bradley International Terminal development, and West Satellite Concourse. Consistent with the Master Plan, planning
includes post 9/11 security improvements to make the airport more secure.
Reno AAA Ballpark – Reno, Nevada – Designer for the 8,500-seat ballpark, home of the Reno Aces, a farm club of the Arizona
Diamondback. The ballpark is adjacent to the Truckee River and will serve as a terminus from the casinos to the north. The
promenade to the ballpark will allow for retail and entertainment opportunities.
Weingart Stadium, East Los Angeles College – Los Angeles, CA - Designer for the renovation of existing 20,000 seat stadium
including upgrading seating and renovated press box, team facilities, coaches offices, weight room, training room, concessions
and restrooms. New visiting team facilities and terraced seating.
Mr. Kim earned a Bachelor of Science degree in Interior Design from Westwood College in California and is a member of the
IIDA and ASID in Los Angeles.
Management Summary Continued
38
Ka Ram Shin, Transportation Manager
Ka Ram Shin is currently the CEO of two companies: Transtar Transportation, a transportation business started in 1999, and G.P.
Enterprise, a management company started in 2008. Through these two businesses, Mr. Shin has worked with Hankook Tire,
which is currently the number four tire company in the world. His company handles over 65% of Handkook‟s American product
line, transporting them through the U.S. He has also worked with TireCo, one of the fastest growing tire companies. Other clients
of Mr. Shin's businesses include Sony, Nexen, Jan-pro, Kumho, and many others.
Mr. Shin graduated from California State of Northridge with a Master's degree in Business Management.
Attala Zane Giles, Co-Director of Entertainment
Mr. Giles attended the University of Las Vegas and Akron University. In the early 1980s, he became a member of the group
“Switch” as a guitarist. Upon leaving the group, he signed a contract with Quest Records as a writer and producer working with
such artists as Patti Austin and James Ingram. Since this time, he has worked for Capital Records as the Director of A&R West
Coast, where he produced and collaborated with the Emotions, Earth Wind & Fire, the Jacksons, Janet Jackson, Jackie Jackson,
Arsenio Hall, Debbie Hall, the Culture Club, Vesta Williams, and many other prominent musicians and performers. He has
written and produced soundtracks and musical scores for such feature films as Can’t Buy Me Love, Ghost Busters II, and Ghost
Dad, which was performed by the famous Gladys Knight. He was chosen as one of the top four producers as published by R&B
Reports from 1989-1991. His song, “Good Woman,” was nominated for a Grammy for Gladys Knight‟s best vocal performance.
Moreover, he served as the Musical Director for the television shows Big Break and Different World. He wrote and produced
Gladys Knight‟s platinum selling album, “Just For You,” as well as the Grammy award winning album “Many Different Roads.”
Presently, Mr. Giles oversees the company, Hall of Fame Entertainment and has formed Jasic Records, a Caribbean Label
dedicated to Real Organic World Music, and has television distribution through Colours TV on the Dish Network. At Ava,
Kennedy & Philip Prince he is responsible for arranging endorsements with major music artists; producing the music for
advertising, promotions and special events; participating with the Executive Committee under Mr. Gianulias to assist in the
direction and expansion of the Company.
Advisors
39
Tony Dorsett
Mr. Dorsett has won a national college championship, the coveted Heisman Trophy, and a Super Bowl championship, earning him
a permanent place in both the NCAA and the NFL Halls of Fame. The same year of his Hall of Fame inductions, he was also
added to the Dallas Cowboys Ring of Honor. In September of 2001, his former high school, Hopewell High, honored their former
Viking by renaming their football stadium – the Tony Dorsett Stadium. Mr. Dorsett is a native of Aliquippa, Pennsylvania – just 30
minutes north of Pittsburgh. He played college football at the University of Pittsburgh and played professionally for the Dallas
Cowboys. He officially retired from playing football in 1990.
Tony has served on the board for Project Turnaround, a social outreach arm of Oak Cliff Bible Fellowship whose mission is to help
rebuild urban communities. He is presently on the board for the Gift for Life Foundation which educates people about kidney
diseases and the organ donation process. At Ava, Kennedy & Philip Prince, Mr. Dorsett will use his relationships in the sporting
and business world to help establish an Advisory Board of Directors. The Advisory Board will include a number of sports
celebrities along with prominent celebrities from the worlds of entertainment and business.
Funding Objectives
40
Initial funding goals are illustrated here. The
owners have already invested a significant amount
of capital as indicated below.
Primary uses of funding include purchase/lease of
the silk farm in China and roughly four months of
operating costs which will be incurred prior to
revenue generation.
Funds Already Spent
Art - Fresco
Prototype Dev. - Fresco Collection
Commercials
Dorsett Jersey
Silk Prototype - Velvet Collection
Prototype Dev.
Silk Denim Prototype
Military Jackets - Prototype
Non Fresco Art
Electronic Patterns
Sample Shop
Artwork Scan Templates
Startup Overhead Costs (2009)
Total
$
50,000
$
80,000
$
60,000
$
40,000
$
50,000
$
200,000
$
50,000
$
70,000
$
50,000
$
20,000
$
50,000
$
20,000
$
260,000
$ 1,000,000
Sources
Owner Invest. - Historical
Investor
Total Sources
$ 1,000,000
$ 9,483,491
$ 10,483,491
Uses
Marketing
Distribution
Silk Farm (improvement)
Sample shop
Showroom, setup
Corporate Residence (China)
Corporate Transportation (China)
Misc. Op. Costs (pre forecast)
Marketing
Inventory
Working Capital Need
Total
$
250,000
$
125,000
$
500,000
$
300,000
$
120,000
$
100,000
$
50,000
$
698,491
$ 2,090,000
$ 2,500,000
$
250,000
$ 9,483,491
Performance Objectives
41
•
First year performance goals are illustrated below. As with all forecasts found in this document, this is not intended as a
guarantee – but represent a logical estimation the Company believes to be achievable.
•
Detailed revenue assumptions are found in the Revenue Model. Detailed operating cost assumptions are found in the
Income Statement.
Revenue
Gross Margin
Total Costs
Net Income
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$Total Units
Total Yards
Revenue
Gross Margin
Total Costs
Net Income
73,400
80,740
88,814
97,704
107,475
118,217
130,045
143,059
157,368
173,103
199,067
228,926
1,600
1,760
1,936
2,130
2,343
2,577
2,835
3,119
3,431
3,774
4,340
4,991
$ 20,151,000 $ 22,166,100 $ 24,382,710 $ 26,823,860 $ 29,506,445 $ 32,455,025 $ 35,702,695 $ 39,276,425 $ 43,205,025 $ 47,524,730 $ 54,652,880 $ 62,850,655
$ 15,808,300 $ 17,389,130 $ 19,128,043 $ 21,043,130 $ 23,147,589 $ 25,460,706 $ 28,008,505 $ 30,812,117 $ 33,894,083 $ 37,282,872 $ 42,874,845 $ 49,305,963
$ 4,796,366 $ 5,230,636 $ 5,708,333 $ 6,234,396 $ 6,812,522 $ 7,447,985 $ 8,236,131 $ 9,006,249 $ 9,852,883 $ 10,783,799 $ 12,319,976 $ 14,086,633
$ 9,980,512 $ 11,008,052 $ 12,138,345 $ 13,383,152 $ 14,751,050 $ 16,254,576 $ 17,853,267 $ 19,675,614 $ 21,678,892 $ 23,881,605 $ 27,516,388 $ 31,696,614
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
“Total Yards” indicates fabric for sale rather than fabric used in the production of items for sale.
5 Year Revenue Model
42
Silktex
Volume Growth
May
Jun
10%
Jul
10%
Aug
10%
Sep
10%
Oct
10%
Nov
10%
Dec
10%
Jan
10%
Feb
10%
Mar
15%
Apr
15%
YR 1
vs. mth 12
YR 2
20%
YR 3
25%
YR 4
20%
YR 5
15%
Fresco Coat
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
1,600
1,100
1,760,000
200
320,000
50
80,000
400,000
1,360,000
1,760
1,100
1,936,000
200
352,000
50
88,000
440,000
1,496,000
1,936
1,100
2,129,600
200
387,200
50
96,800
484,000
1,645,600
2,130
1,100
2,343,000
200
426,000
50
106,500
532,500
1,810,500
2,343
1,100
2,577,300
200
468,600
50
117,150
585,750
1,991,550
2,577
1,100
2,834,700
200
515,400
50
128,850
644,250
2,190,450
2,835
1,100
3,118,500
200
567,000
50
141,750
708,750
2,409,750
3,119
1,100
3,430,900
200
623,800
50
155,950
779,750
2,651,150
3,431
1,100
3,774,100
200
686,200
50
171,550
857,750
2,916,350
3,774
1,100
4,151,400
200
754,800
50
188,700
943,500
3,207,900
4,340
1,100
4,774,000
200
868,000
50
217,000
1,085,000
3,689,000
4,991
1,100
5,490,100
200
998,200
50
249,550
1,247,750
4,242,350
34,836
71,870
1,155
83,009,850
206
14,805,220
52
3,701,305
18,506,525
64,503,325
89,838
1,190
106,875,777
210
18,876,761
53
4,719,190
23,595,951
83,279,826
107,806
1,225
132,098,950
214
23,105,241
54
5,776,310
28,881,551
103,217,399
123,977
1,262
156,471,333
219
27,102,469
55
6,775,617
33,878,086
122,593,246
Outerwear Units
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
6,700
$350.00
$2,345,000
$60.00
$402,000
$20.00
$134,000
$536,000
$1,809,000
7,370
$350.00
$2,579,500
$60.00
$442,200
$20.00
$147,400
$589,600
$1,989,900
8,107
$350.00
$2,837,450
$60.00
$486,420
$20.00
$162,140
$648,560
$2,188,890
8,918
$350.00
$3,121,300
$60.00
$535,080
$20.00
$178,360
$713,440
$2,407,860
9,810
$350.00
$3,433,500
$60.00
$588,600
$20.00
$196,200
$784,800
$2,648,700
10,791
$350.00
$3,776,850
$60.00
$647,460
$20.00
$215,820
$863,280
$2,913,570
11,870
$350.00
$4,154,500
$60.00
$712,200
$20.00
$237,400
$949,600
$3,204,900
13,057
$350.00
$4,569,950
$60.00
$783,420
$20.00
$261,140
$1,044,560
$3,525,390
14,363
$350.00
$5,027,050
$60.00
$861,780
$20.00
$287,260
$1,149,040
$3,878,010
15,799
$350.00
$5,529,650
$60.00
$947,940
$20.00
$315,980
$1,263,920
$4,265,730
18,169
$350.00
$6,359,150
$60.00
$1,090,140
$20.00
$363,380
$1,453,520
$4,905,630
20,894
$350.00
$7,312,900
$60.00
$1,253,640
$20.00
$417,880
$1,671,520
$5,641,380
376,093
$378.53
$142,360,603
$63.04
$23,707,398
$21.01
$7,902,466
$31,609,864
$110,750,738
451,312
$389.88
$175,957,861
$64.30
$29,017,881
$21.43
$9,672,627
$38,690,508
$137,267,353
519,009
$401.58
$208,422,167
$65.58
$34,037,988
$21.86
$11,345,996
$45,383,984
$163,038,183
Shirts/Blouses
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
8,300
$80.00
$664,000
$15.00
$124,500
$10.00
$83,000
$207,500
$456,500
9,130
$80.00
$730,400
$15.00
$136,950
$10.00
$91,300
$228,250
$502,150
10,043
$80.00
$803,440
$15.00
$150,645
$10.00
$100,430
$251,075
$552,365
11,047
$80.00
$883,760
$15.00
$165,705
$10.00
$110,470
$276,175
$607,585
12,152
$80.00
$972,160
$15.00
$182,280
$10.00
$121,520
$303,800
$668,360
13,367
$80.00
$1,069,360
$15.00
$200,505
$10.00
$133,670
$334,175
$735,185
14,704
$80.00
$1,176,320
$15.00
$220,560
$10.00
$147,040
$367,600
$808,720
16,174
$80.00
$1,293,920
$15.00
$242,610
$10.00
$161,740
$404,350
$889,570
17,791
$80.00
$1,423,280
$15.00
$266,865
$10.00
$177,910
$444,775
$978,505
19,570
$80.00
$1,565,600
$15.00
$293,550
$10.00
$195,700
$489,250
$1,076,350
22,506
$80.00
$1,800,480
$15.00
$337,590
$10.00
$225,060
$562,650
$1,237,830
25,882
$80.00
$2,070,560
$15.00
$388,230
$10.00
$258,820
$647,050
$1,423,510
465,876
$86.52
$40,307,592
$15.76
$7,341,740
$10.51
$4,894,493
$12,236,233
$28,071,358
559,051
$89.12
$49,820,165
$16.07
$8,986,286
$10.72
$5,990,858
$14,977,144
$34,843,021
642,909
$91.79
$59,012,018
$16.40
$10,540,920
$10.93
$7,027,280
$17,568,199
$41,443,818
Jackets
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
10,000
$350.00
$3,500,000
$40.00
$400,000
$20.00
$200,000
$600,000
$2,900,000
11,000
$350.00
$3,850,000
$40.00
$440,000
$20.00
$220,000
$660,000
$3,190,000
12,100
$350.00
$4,235,000
$40.00
$484,000
$20.00
$242,000
$726,000
$3,509,000
13,310
$350.00
$4,658,500
$40.00
$532,400
$20.00
$266,200
$798,600
$3,859,900
14,641
$350.00
$5,124,350
$40.00
$585,640
$20.00
$292,820
$878,460
$4,245,890
16,105
$350.00
$5,636,750
$40.00
$644,200
$20.00
$322,100
$966,300
$4,670,450
17,716
$350.00
$6,200,600
$40.00
$708,640
$20.00
$354,320
$1,062,960
$5,137,640
19,488
$350.00
$6,820,800
$40.00
$779,520
$20.00
$389,760
$1,169,280
$5,651,520
21,437
$350.00
$7,502,950
$40.00
$857,480
$20.00
$428,740
$1,286,220
$6,216,730
23,581
$350.00
$8,253,350
$40.00
$943,240
$20.00
$471,620
$1,414,860
$6,838,490
27,118
31,186
217,682
449,078
$350.00
$350.00
$367.50
$9,491,300 $10,915,100 $76,188,700 $165,036,165
$40.00
$40.00
$41.20
$1,084,720 $1,247,440 $8,707,280 $18,502,014
$20.00
$20.00
$20.60
$542,360
$623,720
$4,353,640
$9,251,007
$1,627,080 $1,871,160 $13,060,920 $27,753,020
$7,864,220 $9,043,940 $63,127,780 $137,283,145
561,348
$378.53
$212,484,252
$42.02
$23,590,088
$21.01
$11,795,044
$35,385,133
$177,099,119
673,618
$389.88
$262,630,691
$42.86
$28,874,285
$21.43
$14,437,143
$43,311,428
$219,319,263
774,661
$401.58
$311,086,174
$43.72
$33,869,550
$21.86
$16,934,775
$50,804,325
$260,281,849
38,319,600
6,967,200
1,741,800
8,709,000
29,610,600
145,848
300,874
$367.50
$51,046,800 $110,571,195
$61.80
$8,750,880 $18,594,013
$20.60
$2,916,960
$6,198,004
$11,667,840 $24,792,018
$39,378,960 $85,779,177
180,666
$14,453,280
$2,709,990
$1,806,660
$4,516,650
$9,936,630
372,701
$84.00
$31,306,884
$15.45
$5,758,230
$10.30
$3,838,820
$9,597,051
$21,709,833
5 Year Revenue Model
43
Silktex
Pants
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
May
$6,700
$200
$1,340,000
$40
$268,000
$20
$134,000
$402,000
$938,000
Jun
$7,370
$200
$1,474,000
$40
$294,800
$20
$147,400
$442,200
$1,031,800
Jul
$8,107
$200
$1,621,400
$40
$324,280
$20
$162,140
$486,420
$1,134,980
Aug
$8,918
$200
$1,783,600
$40
$356,720
$20
$178,360
$535,080
$1,248,520
Sep
$9,810
$200
$1,962,000
$40
$392,400
$20
$196,200
$588,600
$1,373,400
Oct
$10,791
$200
$2,158,200
$40
$431,640
$20
$215,820
$647,460
$1,510,740
Nov
$11,870
$200
$2,374,000
$40
$474,800
$20
$237,400
$712,200
$1,661,800
Dec
$13,057
$200
$2,611,400
$40
$522,280
$20
$261,140
$783,420
$1,827,980
Jan
$14,363
$200
$2,872,600
$40
$574,520
$20
$287,260
$861,780
$2,010,820
Feb
$15,799
$200
$3,159,800
$40
$631,960
$20
$315,980
$947,940
$2,211,860
Mar
$18,169
$200
$3,633,800
$40
$726,760
$20
$363,380
$1,090,140
$2,543,660
Apr
$20,894
$200
$4,178,800
$40
$835,760
$20
$417,880
$1,253,640
$2,925,160
Accessories
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
3,400
$50.00
$170,000
$10.00
$34,000
$5.00
$17,000
$51,000
$119,000
3,740
$50.00
$187,000
$10.00
$37,400
$5.00
$18,700
$56,100
$130,900
4,114
$50.00
$205,700
$10.00
$41,140
$5.00
$20,570
$61,710
$143,990
4,525
$50.00
$226,250
$10.00
$45,250
$5.00
$22,625
$67,875
$158,375
4,978
$50.00
$248,900
$10.00
$49,780
$5.00
$24,890
$74,670
$174,230
5,476
$50.00
$273,800
$10.00
$54,760
$5.00
$27,380
$82,140
$191,660
6,024
$50.00
$301,200
$10.00
$60,240
$5.00
$30,120
$90,360
$210,840
6,626
$50.00
$331,300
$10.00
$66,260
$5.00
$33,130
$99,390
$231,910
7,289
$50.00
$364,450
$10.00
$72,890
$5.00
$36,445
$109,335
$255,115
8,018
$50.00
$400,900
$10.00
$80,180
$5.00
$40,090
$120,270
$280,630
9,221
$50.00
$461,050
$10.00
$92,210
$5.00
$46,105
$138,315
$322,735
10,604
$50.00
$530,200
$10.00
$106,040
$5.00
$53,020
$159,060
$371,140
Jerseys
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
6,700
$200.00
$1,340,000
$30.00
$201,000
$20.00
$134,000
$335,000
$1,005,000
7,370
$200.00
$1,474,000
$30.00
$221,100
$20.00
$147,400
$368,500
$1,105,500
8,107
$200.00
$1,621,400
$30.00
$243,210
$20.00
$162,140
$405,350
$1,216,050
8,918
$200.00
$1,783,600
$30.00
$267,540
$20.00
$178,360
$445,900
$1,337,700
9,810
$200.00
$1,962,000
$30.00
$294,300
$20.00
$196,200
$490,500
$1,471,500
10,791
$200.00
$2,158,200
$30.00
$323,730
$20.00
$215,820
$539,550
$1,618,650
11,870
$200.00
$2,374,000
$30.00
$356,100
$20.00
$237,400
$593,500
$1,780,500
13,057
$200.00
$2,611,400
$30.00
$391,710
$20.00
$261,140
$652,850
$1,958,550
14,363
$200.00
$2,872,600
$30.00
$430,890
$20.00
$287,260
$718,150
$2,154,450
15,799
$200.00
$3,159,800
$30.00
$473,970
$20.00
$315,980
$789,950
$2,369,850
18,169
$200.00
$3,633,800
$30.00
$545,070
$20.00
$363,380
$908,450
$2,725,350
20,894
$200.00
$4,178,800
$30.00
$626,820
$20.00
$417,880
$1,044,700
$3,134,100
1,760
$20.00
$35,200
$5.00
$8,800
$2.00
$3,520
$12,320
$22,880
1,936
$20.00
$38,720
$5.00
$9,680
$2.00
$3,872
$13,552
$25,168
2,130
$20.00
$42,600
$5.00
$10,650
$2.00
$4,260
$14,910
$27,690
2,343
$20.00
$46,860
$5.00
$11,715
$2.00
$4,686
$16,401
$30,459
2,577
$20.00
$51,540
$5.00
$12,885
$2.00
$5,154
$18,039
$33,501
2,835
$20.00
$56,700
$5.00
$14,175
$2.00
$5,670
$19,845
$36,855
3,119
$20.00
$62,380
$5.00
$15,595
$2.00
$6,238
$21,833
$40,547
3,431
$20.00
$68,620
$5.00
$17,155
$2.00
$6,862
$24,017
$44,603
3,774
$20.00
$75,480
$5.00
$18,870
$2.00
$7,548
$26,418
$49,062
4,340
$20.00
$86,800
$5.00
$21,700
$2.00
$8,680
$30,380
$56,420
4,991
$20.00
$99,820
$5.00
$24,955
$2.00
$9,982
$34,937
$64,883
48,319
$300.00
$14,495,625
$60.00
$2,899,125
$0.00
$0
$2,899,125
$11,596,500
53,156
$300.00
$15,946,875
$60.00
$3,189,375
$0.00
$0
$3,189,375
$12,757,500
58,481
$300.00
$17,544,375
$60.00
$3,508,875
$0.00
$0
$3,508,875
$14,035,500
64,331
$300.00
$19,299,375
$60.00
$3,859,875
$0.00
$0
$3,859,875
$15,439,500
70,763
$300.00
$21,228,750
$60.00
$4,245,750
$0.00
$0
$4,245,750
$16,983,000
81,375
$300.00
$24,412,500
$60.00
$4,882,500
$0.00
$0
$4,882,500
$19,530,000
93,581
$300.00
$28,074,375
$60.00
$5,614,875
$0.00
$0
$5,614,875
$22,459,500
Bulk Fabric - Yards
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
Paper Prints
Price
Revenue
Mat. COGS / Unit
Mat. COGS
Labor / Unit
Labor
Total COGS
Margin
1,600
$20.00
$32,000
$5.00
$8,000
$2.00
$3,200
$11,200
$20,800
30,000
$300.00
$9,000,000
$60.00
$1,800,000
$0.00
$0
$1,800,000
$7,200,000
33,000
36,300
39,938
43,931
$300.00
$300.00
$300.00
$300.00
$9,900,000 $10,890,000 $11,981,250 $13,179,375
$60.00
$60.00
$60.00
$60.00
$1,980,000 $2,178,000 $2,396,250 $2,635,875
$0.00
$0.00
$0.00
$0.00
$0
$0
$0
$0
$1,980,000 $2,178,000 $2,396,250 $2,635,875
$7,920,000 $8,712,000 $9,585,000 $10,543,500
YR 1
$145,848
$29,169,600
$5,833,920
$2,916,960
$8,750,880
$20,418,720
74,015
$3,700,750
$740,150
$370,075
$1,110,225
$2,590,525
145,848
$29,169,600
$4,375,440
$2,916,960
$7,292,400
$21,877,200
34,836
$696,720
$174,180
$69,672
$243,852
$452,868
653,175
$195,952,500
$39,190,500
$0
$39,190,500
$156,762,000
YR 2
$300,874
$210
$63,183,540
$41
$12,396,009
$21
$6,198,004
$18,594,013
$44,589,527
YR 3
$376,093
$216
$81,348,916
$42
$15,804,932
$21
$7,902,466
$23,707,398
$57,641,518
YR 4
$451,312
$223
$100,547,349
$43
$19,345,254
$21
$9,672,627
$29,017,881
$71,529,468
YR 5
$519,009
$229
$119,098,381
$44
$22,691,992
$22
$11,345,996
$34,037,988
$85,060,393
152,698
$52.50
$8,016,645
$10.30
$1,572,789
$5.15
$786,395
$2,359,184
$5,657,461
190,873
$54.08
$10,321,457
$10.51
$2,005,312
$5.25
$1,002,656
$3,007,968
$7,313,490
229,048
$55.70
$12,757,344
$10.72
$2,454,506
$5.36
$1,227,253
$3,681,759
$9,075,585
263,405
$57.37
$15,111,062
$10.93
$2,879,133
$5.47
$1,439,567
$4,318,700
$10,792,362
300,874
$210.00
$63,183,540
$30.90
$9,297,007
$20.60
$6,198,004
$15,495,011
$47,688,529
376,093
$216.30
$81,348,916
$31.52
$11,853,699
$21.01
$7,902,466
$19,756,165
$61,592,751
451,312
$222.79
$100,547,349
$32.15
$14,508,941
$21.43
$9,672,627
$24,181,568
$76,365,781
519,009
$229.47
$119,098,381
$32.79
$17,018,994
$21.86
$11,345,996
$28,364,990
$90,733,391
71,870
$21.00
$1,509,270
$5.15
$370,131
$2.06
$148,052
$518,183
$991,087
89,838
$21.63
$1,943,196
$5.25
$471,919
$2.10
$188,768
$660,687
$1,282,509
107,806
$22.28
$2,401,799
$5.36
$577,631
$2.14
$231,052
$808,683
$1,593,116
123,977
$22.95
$2,844,933
$5.47
$677,562
$2.19
$271,025
$948,586
$1,896,347
1,347,570
$315.00
$424,484,550
$61.80
$83,279,826
$0.00
$0
$83,279,826
$341,204,724
1,684,463
$324.45
$546,524,020
$63.04
$106,181,810
$0.00
$0
$106,181,810
$440,342,211
2,021,356
$334.18
$675,503,823
$64.30
$129,966,561
$0.00
$0
$129,966,561
$545,537,262
2,324,559
$344.21
$800,134,140
$65.58
$152,450,750
$0.00
$0
$152,450,750
$647,683,391
Tot. Units/Yds.
75,000
82,500
90,750
99,834
109,818
120,794
132,880
146,178
160,799
176,877
203,407
233,917
979,579
3,368,409
4,210,515
5,052,621
5,810,515
Total Rev./period $20,151,000 $22,166,100 $24,382,710 $26,823,860 $29,506,445 $32,455,025 $35,702,695 $39,276,425 $43,205,025 $47,524,730 $54,652,880 $62,850,655 $438,697,550 $950,301,639 $1,223,514,728 $1,512,265,332 $1,791,278,589
COGS
$4,342,700 $4,776,970 $5,254,667 $5,780,730 $6,358,856 $6,994,319 $7,694,190 $8,464,308 $9,310,942 $10,241,858 $11,778,035 $13,544,692 $94,542,267 $200,894,831 $256,141,208 $313,517,083 $367,755,608
Total Margin
$15,808,300 $17,389,130 $19,128,043 $21,043,130 $23,147,589 $25,460,706 $28,008,505 $30,812,117 $33,894,083 $37,282,872 $42,874,845 $49,305,963 $344,155,283 $749,406,808
$967,373,520
$1,198,748,248 $1,423,522,981
Margin %
78%
78%
78%
78%
78%
78%
78%
78%
78%
78%
78%
78%
78%
79%
79%
79%
79%
First Year Income Statement
44
Silktex
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Year 1
Revenue
COGS
$
$
20,151,000 $ 22,166,100 $
4,342,700 $ 4,776,970 $
24,382,710 $
5,254,667 $
26,823,860 $
5,780,730 $
29,506,445 $ 32,455,025 $ 35,702,695 $ 39,276,425 $ 43,205,025 $ 47,524,730 $ 54,652,880 $ 62,850,655 $ 438,697,550
6,358,856 $ 6,994,319 $ 7,694,190 $ 8,464,308 $ 9,310,942 $ 10,241,858 $ 11,778,035 $ 13,544,692 $ 94,542,267
Gross Margin
Percent
$
15,808,300 $ 17,389,130 $
78.4%
78.4%
19,128,043 $
78.4%
21,043,130 $
78.4%
23,147,589 $ 25,460,706 $ 28,008,505 $ 30,812,117 $ 33,894,083 $ 37,282,872 $ 42,874,845 $ 49,305,963 $ 344,155,283
78.4%
78.4%
78.4%
78.4%
78.4%
78.4%
78.4%
78.4%
78.4%
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
Operating Costs
U.S. Salaries
Payroll Tax
Chinese Salaries
Showroom Lease
Print Advertising
Studio Lease
Art Development
Corp. Autos
Travel
Utilities
Prototype Dev.
Insurance
Shipping
Legal
Accounting
Models
Maintenance
Internet
Training
Other
Interest
Depr. & Amor.
Op. Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Pre-Tax Income
$
Cumulative Op. Profit
Taxes
35%
Net Income
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
15,354,634 $ 16,935,464 $
76%
76%
$
32,290,098
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
18,674,377 $
77%
50,964,475
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
20,589,464 $
77%
71,553,939
$
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
26,333
2,633
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
17,556
185,310
453,666
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
101,333
10,133
8,333
30,000
15,000
10,000
50,000
5,000
20,000
5,000
50,000
2,000
5,000
3,000
2,500
5,000
1,000
5,000
5,000
23,331
185,310
541,941
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
766,000
76,600
100,000
360,000
180,000
120,000
600,000
60,000
240,000
60,000
600,000
24,000
60,000
36,000
30,000
60,000
12,000
60,000
60,000
245,322
2,223,719
5,973,641
22,693,923 $ 25,007,040 $ 27,466,564 $ 30,270,176 $ 33,352,142 $ 36,740,931 $ 42,332,904 $ 48,764,022 $ 338,181,642
77%
77%
77%
77%
77%
77%
77%
78%
77%
$
15,354,634
$
5,374,122 $
5,927,412 $
6,536,032 $
7,206,312 $
7,942,873 $ 8,752,464 $ 9,613,297 $ 10,594,562 $ 11,673,250 $ 12,859,326 $ 14,816,516 $ 17,067,408 $ 118,363,575
94,247,862
$ 119,254,902
$ 146,721,466
$ 176,991,643
$ 210,343,785
$ 247,084,716
$ 289,417,620
$ 338,181,642
$
338,181,642
$
9,980,512 $ 11,008,052 $
12,138,345 $
13,383,152 $
14,751,050 $ 16,254,576 $ 17,853,267 $ 19,675,614 $ 21,678,892 $ 23,881,605 $ 27,516,388 $ 31,696,614 $ 219,818,067
% growth
Cash Flow Adjustments
Add: Depr. & Amor.
$
185,310 $
185,310
Add: Incr. Payables
$
37,678 $
Sub: Incr. in Rec.
$ (20,151,000) $ (19,143,450)
Sub: Incr. in Inv.
$
1,414,325 $
(108,568)
Total Adjustments
$ (18,513,687) $ (19,066,708)
Total Cash Flow
Cumulative Cash Flow
EBITDA
$
$
$
$
$
185,310
(14,004,945)
(119,424)
(13,939,059)
$
$
$
$
$
185,310
(15,408,319)
(131,516)
(15,354,524)
$
$
$
$
$
185,310
(6,873,418)
(144,532)
(6,832,639)
$
185,310 $
185,310
$
$
44,138
$ (7,557,657) $ (8,315,831)
$ (158,866) $ (174,968)
$ (7,531,213) $ (8,261,351)
$
185,310 $
185,310
$
$
$ (9,149,832) $ (10,064,396)
$ (192,530) $
(211,659)
$ (9,157,052) $ (10,090,744)
$
185,310
$
$ (11,069,715)
$
(232,729)
$ (11,117,134)
$
185,310
$
$ (14,551,064)
$
(384,044)
$ (14,749,799)
$
185,310
$
$ (18,380,855)
$
(441,664)
$ (18,637,209)
$
2,223,719
$
81,816
$ (154,670,481)
$
(886,173)
$ (153,251,119)
$
(8,533,175) $
(8,058,656) $
(1,800,714) $
(1,971,373) $
7,918,411 $ 8,723,363 $ 9,591,916 $ 10,518,563 $ 11,588,148 $ 12,764,471 $ 12,766,589 $ 13,059,405 $
$
(8,533,175) $
(16,591,831) $
(18,392,545) $
(20,363,918) $
(12,445,507) $
15,539,944 $ 17,120,774 $
18,859,687 $
20,774,774 $
$
(3,722,144) $
5,869,772
$
16,388,335
$
27,976,483
$
40,740,954
$
53,507,543
$
66,566,948
$
66,566,948
66,566,948
22,879,233 $ 25,192,350 $ 27,651,874 $ 30,455,486 $ 33,537,452 $ 36,926,241 $ 42,518,214 $ 48,949,332 $ 340,405,361
Five Year Income Statement
45
Silktex
Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
COGS
$ 438,697,550 $ 950,301,639 $ 1,223,514,728 $ 1,512,265,332 $ 1,791,278,589
$ 94,542,267 $ 200,894,831 $ 256,141,208 $ 313,517,083 $ 367,755,608
Gross Margin
Percent
$ 344,155,283 $ 749,406,808 $
78.4%
78.9%
Operating Costs
U.S. Salaries
Payroll Tax
Chinese Salaries
Showroom Lease
Print Advertising
Studio Lease
Art Development
Corp. Autos
Travel
Utilities
Prototype Dev.
Insurance
Shipping
Legal
Accounting
Models
Maintenance
Internet
Training
Other
Interest
Depr. & Amor.
Op. Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Pre-Tax Income
15%
Cumulative Op. Profit
Taxes
Net Income
766,000
76,600
100,000
360,000
180,000
120,000
600,000
60,000
240,000
60,000
600,000
24,000
60,000
36,000
30,000
60,000
12,000
60,000
60,000
245,322
2,223,719
5,973,641
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
338,181,642
$ 1,080,079,144
EBITDA
$
1,799,490
179,949
330,750
389,376
259,200
172,800
864,000
86,400
345,600
86,400
864,000
34,560
86,400
51,840
43,200
86,400
17,280
86,400
86,400
403,160
2,223,719
8,497,324
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,052,194
205,219
463,050
404,951
311,040
207,360
1,036,800
103,680
414,720
103,680
1,036,800
41,472
103,680
62,208
51,840
103,680
20,736
103,680
103,680
483,792
69,222
7,483,484
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,325,669
232,567
607,753
421,149
373,248
248,832
1,244,160
124,416
497,664
124,416
1,244,160
49,766
124,416
74,650
62,208
124,416
24,883
124,416
124,416
580,550
69,222
8,802,977
958,876,196 $ 1,191,264,765 $ 1,414,720,004
78%
79%
79%
$
4,644,940,109
$ 118,363,575 $ 259,664,126 $
335,606,669 $
416,942,668 $
495,152,001
$ 219,818,067 $ 482,233,377 $
623,269,527 $
774,322,097 $
919,568,003
119%
Cash Flow Adjustments
Add: Depr. & Amor.
$
2,223,719
Add: Incr. Payables
$
81,816
Sub: Incr. in Rec.
$ (154,670,481)
Sub: Incr. in Inv.
$
(886,173)
Total Adjustments
$ (153,251,119)
Cumulative Cash Flow
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 338,181,642 $ 741,897,503 $
77%
78%
growth
Total Cash Flow
1,566,200
156,620
210,000
374,400
216,000
144,000
720,000
72,000
288,000
72,000
720,000
28,800
72,000
43,200
36,000
72,000
14,400
72,000
72,000
335,966
2,223,719
7,509,306
967,373,520 $ 1,198,748,248 $ 1,423,522,981
79.1%
79.3%
79.5%
$
$
$ 2,223,719 $
$
25,017 $
$ (30,934,096) $
$
(799,136) $
$ (29,484,496) $
$
519,315,830
$
29%
66,566,948 $ 452,748,881 $
66,566,948
2,038,955,340
$
$ 340,405,361 $ 744,121,222 $
2,223,719
20,983
(46,401,144)
(1,150,966)
(45,307,408)
3,230,220,105
24%
$
$
$
$
$
69,222
23,406
(46,401,144)
(1,195,331)
(47,503,846)
19%
$
$
$
$
$
69,222
26,138
(41,761,030)
(1,129,969)
(42,795,639)
577,962,120 $
726,818,251 $
876,772,364
1,097,277,949
1,824,096,200
2,700,868,564
$
961,099,915 $ 1,191,333,987
$
$ 1,414,789,226
First Year Balance Sheet
46
Silktex
OPEN
May
Jun
Jul
Assets
Short Term Assets
Cash
Inventory
Accounts Rec.
Pre-Paid Exp.
Acc. Depr. & Amor.
Total S-T Assets
$
250,000 $ (8,283,175)
$ 2,500,000 $ 1,085,675
$
$ 20,151,000
$ 6,463,491 $ 6,463,491
$
$
(179,541)
$ 9,213,491 $ 19,237,450
$ (16,341,831) $
$ 1,194,243 $
$ 39,294,450 $
$ 6,463,491 $
$
(359,083) $
$ 30,251,270 $
Long-Term Assets
Real Property
Building/Improve.
Equipment
Other
Acc. Depr. & Amor.
Total L T Assets
$
$
600,000
$
470,000
$
$
$ 1,070,000
$
$
$
$
$
$
Other Assets
Goodwill
$
Goodwill
$
Total Other Assets $
-
$
$
$
$
$
$
$
$
$
600,000
470,000
(5,769)
1,064,231
-
$
$
$
600,000
470,000
(11,537)
1,058,463
-
$
$
$
$
$
$
$
$
$
Total Assets
$ 10,283,491 $ 20,301,681 $ 31,309,733 $
Liabilities
Acc. Payable
Cur. Borrowing
Note Payable
Total Liabilities
$
$
$
$
-
Shareholders Equity
Common Stock
$ 9,483,491
Addtl.Paid In Cap. $ 1,000,000
Ret. Earnings
$
Shareholder Eq.
$ 10,483,491
$
$
$
$
37,678
37,678
$ 9,483,491
$ 1,000,000
$ 9,980,512
$ 20,464,003
Aug
Sep
Oct
Feb
Mar
Apr
Year 1
(20,113,918)
1,445,183
68,707,714
6,463,491
(718,166)
55,784,304
$
$
$
$
$
$
(12,195,507)
1,589,714
75,581,131
6,463,491
(897,707)
70,541,122
$ (3,472,144)
$ 1,748,580
$ 83,138,788
$ 6,463,491
$ (1,077,249)
$ 86,801,467
$ 6,119,772 $ 16,638,335
$ 1,923,548 $ 2,116,077
$ 91,454,619 $ 100,604,451
$ 6,463,491 $ 6,463,491
$ (1,256,790) $ (1,436,331)
$ 104,704,639 $ 124,386,022
$ 28,226,483 $ 40,990,954 $ 53,757,543
$ 2,327,736 $ 2,560,465 $ 2,944,509
$ 110,668,846 $ 121,738,561 $ 136,289,626
$ 6,463,491 $ 6,463,491 $ 6,463,491
$ (1,615,873) $ (1,795,414) $ (1,974,956)
$ 146,070,683 $ 169,958,057 $ 197,480,213
$ 66,816,948 $ 66,816,948
$ 3,386,173 $ 3,386,173
$ 154,670,481 $ 154,670,481
$ 6,463,491 $ 6,463,491
$ (2,154,497) $ (2,154,497)
$ 229,182,596 $ 229,182,596
600,000
470,000
(17,306)
1,052,694
$
$
$
$
$
$
600,000
470,000
(23,074)
1,046,926
$
$
$
$
$
$
600,000
470,000
(28,843)
1,041,157
$
$
600,000
$
470,000
$
$
(34,611)
$ 1,035,389
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
$
37,678
37,678
$
$
$
$
37,678
37,678
$
$
$
$
37,678
37,678
$ 9,483,491 $
$ 1,000,000 $
$ 20,988,564 $
$ 31,472,055 $
9,483,491
1,000,000
33,126,909
43,610,400
$
$
$
$
9,483,491
1,000,000
46,510,061
56,993,552
$
$
$
$
9,483,491
1,000,000
61,261,111
71,744,602
Tot. Liab. and Eq. $ 10,483,491 $ 20,501,681 $ 31,509,733 $
Jan
$
$
$
$
$
$
56,831,230 $
37,678
37,678
Dec
(18,142,545)
1,313,667
53,299,395
6,463,491
(538,624)
42,395,383
43,448,078 $
$
$
$
$
Nov
43,648,078 $
57,031,230 $
-
600,000
470,000
(40,380)
1,029,620
-
$
$
$
$
$
$
$
$
$
600,000
470,000
(46,148)
1,023,852
-
$
$
$
600,000
470,000
(51,917)
1,018,083
-
$
$
$
$
$
$
$
$
$
600,000
470,000
(57,685)
1,012,315
-
$
$
$
$
$
$
$
$
$
600,000
470,000
(63,454)
1,006,546
-
$
$
$
600,000
470,000
(69,222)
1,000,778
-
$
$
$
$
$
$
$
$
$
600,000
470,000
(69,222)
1,000,778
-
71,582,280 $ 87,836,856 $ 105,734,260 $ 125,409,874 $ 147,088,766 $ 170,970,372 $ 198,486,759 $ 230,183,374 $ 230,183,374
$
$
$
$
37,678
37,678
$ 9,483,491
$ 1,000,000
$ 77,515,687
$ 87,999,178
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$
$
$
$
81,816
81,816
$ 9,483,491 $ 9,483,491 $ 9,483,491 $ 9,483,491 $ 9,483,491 $ 9,483,491 $ 9,483,491
$ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
$ 95,368,953 $ 115,044,568 $ 136,723,460 $ 160,605,065 $ 188,121,453 $ 219,818,067 $ 219,818,067
$ 105,852,444 $ 125,528,059 $ 147,206,951 $ 171,088,556 $ 198,604,944 $ 230,301,558 $ 230,301,558
71,782,280 $ 88,036,856 $ 105,934,260 $ 125,609,874 $ 147,288,766 $ 171,170,372 $ 198,686,759 $ 230,383,374 $ 230,383,374
Five Year Balance Sheet
47
Silktex
Year 1
Year 2
Year 3
Year 4
Year 5
Assets
Short Term Assets
Cash
Inventory
Accounts Rec.
Pre-Paid Exp.
Acc. Depr. & Amor.
Total S-T Assets
$ 66,816,948 $ 519,565,830 $ 1,097,527,949
$ 3,386,173 $ 4,185,309 $
5,336,275
$ 154,670,481 $ 185,604,577 $ 232,005,721
$ 6,463,491 $ 6,463,491 $
6,463,491
$ (2,154,497) $ (4,308,994) $
(6,463,491)
$ 229,182,596 $ 711,510,212 $ 1,334,869,945
$ 1,824,346,200 $ 2,701,118,564
$
6,531,606 $
7,661,575
$ 278,406,865 $ 320,167,895
$
6,463,491 $
6,463,491
$
(6,463,491) $
(6,463,491)
$ 2,109,284,671 $ 3,028,948,033
Long-Term Assets
Real Property
Building/Improve.
Equipment
Other
Acc. Depr. & Amor.
Total L T Assets
$
$
$
$
$
$
$
$
$
$
$
$
Other Assets
Goodwill
Goodwill
Total Other Assets
$
$
$
Total Assets
$ 230,183,374 $ 712,441,768 $ 1,335,732,278 $ 2,110,077,782 $ 3,029,671,922
Liabilities
Acc. Payable
Cur. Borrowing
Note Payable
Total Liabilities
$
$
$
$
Shareholders Equity
Common Stock
Addtl.Paid In Cap.
Ret. Earnings
Shareholder Eq.
$ 9,483,491 $ 9,483,491 $
9,483,491 $
9,483,491 $
9,483,491
$ 1,000,000 $ 1,000,000 $
1,000,000 $
1,000,000 $
1,000,000
$ 219,818,067 $ 702,051,444 $ 1,325,320,971 $ 2,099,643,068 $ 3,019,211,071
$ 230,301,558 $ 712,534,935 $ 1,335,804,462 $ 2,110,126,559 $ 3,029,694,562
Tot. Liab. and Eq.
$ 230,383,374 $ 712,641,768 $ 1,335,932,278 $ 2,110,277,782 $ 3,029,871,922
600,000
470,000
(69,222)
1,000,778
-
81,816
81,816
$
$
$
$
$
$
$
$
$
$
$
$
$
600,000
470,000
(138,444)
931,556
-
106,833
106,833
$
$
$
$
$
$
$
$
$
$
$
$
$
600,000
470,000
(207,667)
862,333
-
127,816
127,816
$
$
$
$
$
$
$
600,000
470,000
(276,889)
793,111
-
151,223
151,223
$
$
$
$
$
$
$
$
$
$
$
$
$
600,000
470,000
(346,111)
723,889
-
177,360
177,360
U.S. & China Payroll Summary
48
U.S. Staff
Philip Prince
Zane Giles
Kennedy K Sohn
Business Affairs
David G.
Joel Newman
CEO
Ava Avione
International Dir.
Ilia Anossov
Admin. Asst. - L.A.
Admin. Asst. - Newport
Gen. Mgr. Newport
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Total
Chinese Staff
Pattern Maker
Secretary/Bilingual
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Expansion Personnel
Total
Total Payroll
May
Jun
$
$
$
$
$
$
$
$
$
$
$
$
$
11,333
4,000
4,000
7,000
Jul
$
$
$
$
$
$
$
$
$
$
$
$
$
11,333
4,000
4,000
7,000
Aug
$
$
$
$
$
$
$
$
$
$
$
$
$
11,333
4,000
4,000
7,000
Sep
$
$
$
$
$
$
$
$
$
$
$
$
$
11,333
4,000
4,000
7,000
Oct
$
$
$
$
$
$
$
$
$
$
$
$
$
11,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
26,333 $
26,333 $
26,333 $
26,333 $
26,333 $
$
$
May
4,167 $
4,167 $
Jun
4,167 $
4,167 $
Jul
4,167 $
4,167 $
Aug
4,167 $
4,167 $
Sep
4,167 $
4,167 $
$
8,333 $
8,333 $
8,333 $
8,333 $
8,333 $
$
34,667 $
34,667 $
34,667 $
34,667 $
34,667 $
11,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Nov
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Dec
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Jan
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Feb
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Mar
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
Apr
8,333
8,333
8,333
8,333
8,333
8,333
8,333
11,333
8,333
8,333
4,000
4,000
7,000
$
$
$
$
$
$
$
$
$
$
$
$
$
26,333 $ 101,333 $ 101,333 $ 101,333 $ 101,333 $ 101,333 $ 101,333 $
YR 1
50,000
50,000
50,000
50,000
50,000
50,000
50,000
136,000
50,000
50,000
48,000
48,000
84,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
766,000 $ 1,566,200 $
Oct
4,167 $
4,167 $
Nov
4,167 $
4,167 $
Dec
4,167 $
4,167 $
Jan
4,167 $
4,167 $
Feb
4,167 $
4,167 $
Mar
4,167 $
4,167 $
Apr
4,167 $
4,167 $
YR 1
50,000 $
50,000 $
$
$
8,333 $
8,333 $
8,333 $
8,333 $
8,333 $
8,333 $
8,333 $
100,000 $
34,667 $ 109,667 $ 109,667 $ 109,667 $ 109,667 $ 109,667 $ 109,667 $
YR 2
120,000
120,000
120,000
120,000
120,000
120,000
120,000
149,600
120,000
120,000
50,400
50,400
88,200
99,600
48,000
YR 2
52,500
52,500
52,500
52,500
$
$
$
$
$
$
YR 3
126,000
126,000
126,000
126,000
126,000
126,000
126,000
157,080
126,000
126,000
52,920
52,920
92,610
104,580
50,400
104,580
50,400
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,799,490 $
YR 3
55,125
55,125
55,125
55,125
55,125
55,125
$
$
$
$
$
$
$
$
YR 4
132,300
132,300
132,300
132,300
132,300
132,300
132,300
164,934
132,300
132,300
55,566
55,566
97,241
109,809
52,920
109,809
52,920
109,809
52,920
YR 5
138,915
138,915
138,915
138,915
138,915
138,915
138,915
173,181
138,915
138,915
58,344
58,344
102,103
115,299
55,566
115,299
55,566
115,299
55,566
115,299
55,566
2,325,669
YR 4
57,881
57,881
57,881
57,881
57,881
57,881
57,881
57,881
YR 5
60,775
60,775
60,775
60,775
60,775
60,775
60,775
60,775
60,775
60,775
607,753
2,933,422
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,052,194 $
210,000 $
330,750 $
$
$
$
$
$
$
$
$
$
$
463,050 $
866,000 $ 1,776,200 $
2,130,240 $
2,515,244 $
Mgmt. Commission ### $ 2,015,100 $ 2,216,610 $ 2,438,271 $ 2,682,386 $ 2,950,645 $ 3,245,503 $ 3,570,270 $ 3,927,643 $ 4,320,503 $ 4,752,473 $ 5,465,288 $ 6,285,066 $ 43,869,755 $ 95,030,164 $ 122,351,473 $ 151,226,533 $ 179,127,859
Ten percent of total revenue will be paid to management.