it's over folks....cash em in
Our objective is to exploit our IP through product development for sales and sub-licensing of our products to earn royalty revenue streams. We anticipate that total expenditures over the next 12 months will be approximately $7,000,000. These funds may be raised through equity or debt financings, sales of product, royalty streams from sub-licensing. Raising additional capital will result in further dilution in the equity ownership of the Company's shares by its current shareholders. There is no assurance that the Company will be able to maintain operations at a level sufficient for an investor to obtain a return on his investment in the Company's common stock.
We have no cash to fund our operations at this time, so we plan to seek debt financing as well as offer common stock in private placements during the next 12 months to raise minimum proceeds of $7,000,000. We believe the proceeds from such debt financing and private placements will enable us to expand our operations, buy inventory and start our marketing campaign. If we are able to raise the additional funding of $7,000,000 in debt financing and private placement transactions over the next 12 months to cover our minimum cash requirements, we anticipate that it would be allocated as follows:
•$750,000 for Cucoloris Films, Inc. to handle our marketing, branding, media, public relations and advertising;
•$ 1,850,000 to purchase start-up inventory;
•$ 750,000 for research and development;
•$ 600,000 for management salaries and wages;
•$ 600,000 to hire additional managers and staff in the sales, administration, Web development and investor relations departments for our US offices;
•$ 500,000 for transaction costs;
•$ 500,000 for demonstration units;
•$ 300,000 for professional services and filing requirements;
•$ 450,000 for marketing and promotion;
•$ 150,000 for travel and vehicles costs;
•$ 100,000 for operational infrastructure costs including rent, communications, and consumable supplies,
•$ 100,000 for miscellaneous promotion and tradeshows; and
•$ 350,000 for general working capital.
Due to the "start up" nature of the Company's business, the Company expects to incur losses as the Company conducts its ongoing sales and product development programs as well as its organization of the Company. We will require additional funding to continue our sales and product development programs, for operating expenses, for marketing expenses, to pursue regulatory approvals for our products, for any possible acquisitions or new technologies, and we may require additional funding to establish manufacturing capabilities in the future. We may seek to access the public or private equity markets whenever conditions are favorable. We may also seek additional funding through strategic alliances or collaborate with others. We cannot be certain that adequate funding will be available on terms acceptable to us, if at all. Because we are presently in the early stages of development and promotional stages of our business, we can provide no assurance that we will be successful with our efforts to establish revenue sufficient to operate at a break-even or profitable level. In order to pursue our existing operational plan, we are dependent upon the continuing financial support of creditors and stockholders until such time when we are successful in raising equity capital to finance the operations and capital requirements of the Company or until such time that we can generate sufficient revenue to maintain our operations.
In the process of carrying out its business plan, the Company may determine that it cannot raise sufficient capital to support any of its business divisions on acceptable terms, or at all. The Company's board of directors has a fiduciary duty to act in the best interests of the corporation and its shareholders. The board of directors may decide that it is in the best interests of the corporation and its shareholders to liquidate the business, enter into a new line of business or engage in a business combination with another business.
The Company is not currently a party to any contracts, letters of intent, commitments or agreements and is not currently engaged in active negotiations with respect to any acquisitions other than disclosed elsewhere in this report. The Company continues to seek business opportunities to either complement or accentuate its current business initiatives. |
