Capstone Idea

1. Fly your way.

2. $3.45 Billion
Consumer drone market revenue by 2022
70.28%
Market growth rate for only 5 years
80,000
Reported drone injuries annually

3. Value Proposition
Protect consumer’s hand Not affecting performance Cut and impact resistant NBA are homemade or cut-
proof kitchen gloves

4. 40-49 Yrs.
27%98%
2%
eCommerce Brick & Mortar
79% 21%
$ >= 100K
43% 25%
32%
Market Research

5. Macro Market [2017]
1.64M Drone Users
1.61M Drone Users
434K Drone Users
4.61M Drones

6. Market Segmentation
Criteria : User Behavior

7. Product Design
“DroneSleeve” Design
Outer Layer: Cut Resistant Mesh Fabric
(ANSI L5 - Cut Resistance / Breathable / Allow movement)
Inner Layer: Dri-Fit fabric + Shear Thickening Fluid
(Impact & Stab resistant - UL 752 Standard)
Safety + No Damage Breathable Ambidextrous Unobtrusive
Finger Tips : Touch Screen Sensitive
Key Attributes :

8. Operations Management
New York

9. Supply Chain Overview

10. Marketing Plan: Segments Targeted
Shop online
Concerned
about safety
Personal useOccasional
user

11. Marketing Plan: Main Focus
 ---------------------------
 ---------------------------
 ---------------------------
 ---------------------------
Focus on key attributes
Target marketing
Need Recognition
Online and offline channels

12. Marketing Plan: Online
Amazon
Sponsored ads
Google AdWords
Facebook Ads
YouTube Ads
Advertising Video Content
Creation
• Outsource to local creator
• 3 videos every 3 months
• Specific to targeted
segments
Blogger Reviews
• Influencers
• Expert advice
• Recommendations

13. Marketing Plan: Offline
Drone Conventions & Events Retail Stores
• Increase product awareness
• Network with drone
enthusiasts
• Promotional Band-Aids
• In-store retailer promotions
• Focused product placement

14. Pricing
Average price of helmet = $30
= approx. 10% price of bicycle
Average price of bicycle
= $350
Average price of
drone = $1,251
Price of sleeve
= $125

15. Pricing
Willingness to pay
+
Technology Quality Features Price Analysis
Price of DroneSleeve = $35

16. Startup Costs Sale Price Split
Unit Costs & Margins Breakeven Projection
Economic Model
8th Month of Operation
$34.99 | Direct Sale
$27.99 | Wholesale
Expense Breakdown
Unit Price $33.53
Variable Costs $10.32
Contribution Margin $23.21
$80,880
Incorporation Fees, Website Development,
Trademark, Initial Design Engineering,
Patent Design & Filing, Office Equipment

17. 4,610,169 57,194,960
# of US Drone Sales
2017 2022
Drone Users DroneSafe Coverage
Financial Projections

18. We are seeking….
$250,000 for 25% equity
(5 years, 8x return = $1.96M)
- DCF with 47% Discount Rate
- Founders Investment 6 x $10,000
- Investment Purpose
• Product Development
• Inventory Purchase Orders
• Initial Overhead

19. Who wants to
fly with us?

20. APPENDICES
1. Income statement year 1
2. Income statement years 2-5
3. Balance sheet
4. Statement of cash flow
5. Projected sales and inventory buying schedule
6. Valuation
7. General statistics
8. Demographic breakdown
9. Buying behavior
10. Market segmentation
11. Year 1 marketing budget
12. Operating model
13. 3PL vs warehouse management
14. Purchasing process
15. Value curve
16. Value chain

21. DroneSafe, Inc.
Projected Income Statement
For the Year Ending May 31
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May TOTAL
REVENUE
e-Commerce / Direct Gross Sales -$ -$ -$ -$ 11,460.66$ 22,921.32$ 30,561.76$ 38,202.20$ 49,662.86$ 61,123.53$ 80,224.63$ 91,685.29$ 382,022.03$
Wholesale Gross Sales -$ -$ -$ -$ 2,412.60$ 4,825.20$ 6,433.60$ 8,041.99$ 10,454.59$ 12,867.19$ 16,888.19$ 19,300.79$ 80,419.94$
(Less Returns and Allowances) -$ -$ -$ -$ (277.47)$ (554.93)$ (739.91)$ (924.88)$ (1,202.35)$ (1,479.81)$ (1,942.26)$ (2,219.72)$ (9,248.84)$
Net Sales -$ -$ -$ -$ 13,595.79$ 27,191.59$ 36,255.45$ 45,319.31$ 58,915.11$ 72,510.90$ 95,170.56$ 108,766.35$ 457,725.07$
COST OF GOODS SOLD
Unit Packaging -$ -$ -$ -$ 620.60$ 1,241.21$ 1,654.94$ 2,068.68$ 2,689.28$ 3,309.89$ 4,344.23$ 4,964.83$ 20,893.67$
Product Manufacture / Procurement -$ -$ -$ -$ 1,654.94$ 3,309.89$ 4,413.18$ 5,516.48$ 7,171.42$ 8,826.37$ 11,584.61$ 13,239.55$ 55,716.45$
Shipping -$ -$ -$ -$ 78.61$ 157.22$ 209.63$ 262.03$ 340.64$ 419.25$ 550.27$ 628.88$ 2,646.53$
Cost of Goods Sold -$ -$ -$ -$ 2,354.16$ 4,708.32$ 6,277.75$ 7,847.19$ 10,201.35$ 12,555.51$ 16,479.11$ 18,833.26$ 79,256.66$
Gross Sales Profit (Loss) -$ -$ -$ -$ 11,241.64$ 22,483.27$ 29,977.70$ 37,472.12$ 48,713.76$ 59,955.39$ 78,691.45$ 89,933.09$ 378,468.41$
EXPENSES
Warehouse/Office Space Rental 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 20,000.00$
Utility Expenses 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 5,000.00$
Management Salaries 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 240,000.00$
Management Payroll Tax & Benefits 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 60,000.00$
Marketing Staff -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Warehouse Labor (incl. tax & ben) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Workers Compensation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Packing Expenses -$ -$ -$ -$ 1,241.21$ 2,482.42$ 3,309.89$ 4,137.36$ 5,378.57$ 6,619.78$ 8,688.46$ 9,929.67$ 41,787.34$
Amazon Per Sale Fee -$ -$ -$ -$ 380.85$ 761.71$ 1,015.61$ 1,269.52$ 1,650.37$ 2,031.23$ 2,665.98$ 3,046.84$ 12,822.12$
Amazon Subscription Fee -$ -$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 39.99$ 399.90$
Credit Card Fees -$ -$ -$ -$ 229.21$ 458.43$ 611.24$ 764.04$ 993.26$ 1,222.47$ 1,604.49$ 1,833.71$ 7,716.85$
Liability Insurance -$ -$ -$ -$ 29.80$ 59.60$ 79.46$ 99.33$ 129.12$ 158.92$ 208.58$ 238.38$ 1,003.19$
Accounting Software 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 41.67$ 500.00$
CRMSoftware 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 1,500.00$
Marketing Expense -$ -$ -$ 3,256.00$ 4,817.85$ 5,488.81$ 6,184.78$ 5,855.91$ 6,041.49$ 8,442.71$ 9,745.12$ 10,726.57$ 60,559.22$
Research & Development 14,933.33$ 14,933.33$ 14,933.33$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 1,666.67$ 59,800.00$
Website, Trademark, Incorporation 4,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,000.00$
Patent Amoratization 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 67.11$ 805.33$
Depreciation Expense 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 111.11$ 1,333.33$
Total Expenses 46,361.56$ 42,361.56$ 42,401.55$ 32,390.88$ 35,833.80$ 38,385.84$ 40,335.85$ 41,261.03$ 43,327.69$ 47,609.98$ 52,047.52$ 54,910.04$ 517,227.28$
Net Operating Income (Loss) (46,361.56)$ (42,361.56)$ (42,401.55)$ (32,390.88)$ (24,592.16)$ (15,902.57)$ (10,358.16)$ (3,788.91)$ 5,386.07$ 12,345.41$ 26,643.93$ 35,023.05$ (138,758.87)$
Income Taxes (@35%) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Income (Loss) (46,361.56)$ (42,361.56)$ (42,401.55)$ (32,390.88)$ (24,592.16)$ (15,902.57)$ (10,358.16)$ (3,788.91)$ 5,386.07$ 12,345.41$ 26,643.93$ 35,023.05$ (138,758.87)$
Retained Earnings (46,361.56)$ (88,723.11)$ (131,124.66)$ (163,515.54)$ (188,107.70)$ (204,010.26)$ (214,368.42)$ (218,157.34)$ (212,771.26)$ (200,425.86)$ (173,781.92)$ (138,758.87)$ (138,758.87)$
Assumptions
1 e-commerce represents 79% of our sales, and retail/wholesale represents 21% (based off survey results) 18 warehouse labor = 2 @ $46,730 (includes tax & benefits) - hired in year 3
Year 1 (2017-18)

22. DroneSafe, Inc.
Projected Income Statement
For the Year Ending May 31
Year 4 (2020-21) Year 5 (2021-22)
Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) TOTAL Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) TOTAL Jun - May Jun - May
REVENUE
e-Commerce / Direct Gross Sales 356,611.54$ 455,670.30$ 534,917.31$ 633,976.07$ 1,981,175.21$ 914,737.35$ 1,168,831.06$ 1,372,106.02$ 1,626,199.73$ 5,081,874.16$ 12,174,569.96$ 23,279,434.58$
Wholesale Gross Sales 75,070.75$ 95,923.73$ 112,606.12$ 133,459.11$ 417,059.72$ 192,562.52$ 246,052.11$ 288,843.79$ 342,333.38$ 1,069,791.80$ 2,562,884.23$ 4,900,583.43$
(Less Returns and Allowances) (8,633.65)$ (11,031.88)$ (12,950.47)$ (15,348.70)$ (47,964.70)$ (22,146.00)$ (28,297.66)$ (33,219.00)$ (39,370.66)$ (123,033.32)$ (294,749.08)$ (563,600.36)$
Net Sales 423,048.64$ 540,562.15$ 634,572.96$ 752,086.47$ 2,350,270.23$ 1,085,153.88$ 1,386,585.51$ 1,627,730.81$ 1,929,162.45$ 6,028,632.64$ 14,442,705.11$ 27,616,417.65$
COST OF GOODS SOLD
Unit Packaging 19,310.80$ 24,674.92$ 28,966.21$ 34,330.32$ 107,282.24$ 49,533.77$ 63,293.15$ 74,300.65$ 88,060.03$ 275,187.60$ 659,262.83$ 1,260,600.24$
Product Manufacture / Procurement 51,495.48$ 65,799.78$ 77,243.21$ 91,547.51$ 286,085.98$ 132,090.05$ 168,781.73$ 198,135.07$ 234,826.75$ 733,833.61$ 1,758,034.20$ 3,361,600.64$
Shipping 2,446.04$ 3,125.49$ 3,669.05$ 4,348.51$ 13,589.08$ 6,274.28$ 8,017.13$ 9,411.42$ 11,154.27$ 34,857.10$ 83,506.62$ 159,676.03$
Cost of Goods Sold 73,252.32$ 93,600.18$ 109,878.47$ 130,226.34$ 406,957.31$ 187,898.09$ 240,092.01$ 281,847.14$ 334,041.06$ 1,043,878.30$ 2,500,803.65$ 4,781,876.91$
Gross Sales Profit (Loss) 349,796.33$ 446,961.97$ 524,694.49$ 621,860.14$ 1,943,312.92$ 897,255.78$ 1,146,493.50$ 1,345,883.67$ 1,595,121.39$ 4,984,754.34$ 11,941,901.46$ 22,834,540.75$
EXPENSES
Warehouse/Office Space Rental 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 20,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 40,000.00$ 40,000.00$ 40,000.00$
Utility Expenses 1,250.00$ 1,250.00$ 1,250.00$ 1,250.00$ 5,000.00$ 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 10,000.00$ 10,000.00$ 10,000.00$
Management Salaries 60,000.00$ 60,000.00$ 81,000.00$ 81,000.00$ 282,000.00$ 81,000.00$ 81,000.00$ 81,000.00$ 109,350.00$ 352,350.00$ 437,400.00$ 590,490.00$
Management Payroll Tax & Benefits 15,000.00$ 15,000.00$ 20,250.00$ 20,250.00$ 70,500.00$ 20,250.00$ 20,250.00$ 20,250.00$ 27,337.50$ 88,087.50$ 109,350.00$ 147,622.50$
Marketing Staff -$ -$ -$ -$ -$ 10,937.50$ 10,937.50$ 10,937.50$ 10,937.50$ 43,750.00$ 43,750.00$ 43,750.00$
Warehouse Labor (incl. tax & ben) -$ -$ -$ -$ -$ 23,365.00$ 23,365.00$ 23,365.00$ 23,365.00$ 93,460.00$ 93,460.00$ 93,460.00$
Workers Compensation -$ -$ -$ -$ -$ 2,173.75$ 2,173.75$ 2,173.75$ 2,173.75$ 8,695.00$ 8,695.00$ 8,695.00$
Packing Expenses 38,621.61$ 49,349.83$ 57,932.41$ 68,660.64$ 214,564.48$ 33,022.51$ 42,195.43$ 49,533.77$ 58,706.69$ 183,458.40$ 439,508.55$ 840,400.16$
Amazon Per Sale Fee 11,850.74$ 15,142.61$ 17,776.10$ 21,067.97$ 65,837.42$ 30,398.09$ 38,842.01$ 45,597.14$ 54,041.05$ 168,878.29$ 404,579.19$ 773,610.46$
Amazon Subscription Fee 119.97$ 119.97$ 119.97$ 119.97$ 479.88$ 119.97$ 119.97$ 119.97$ 119.97$ 479.88$ 479.88$ 479.88$
Credit Card Fees 7,132.23$ 9,113.41$ 10,698.35$ 12,679.52$ 39,623.50$ 18,294.75$ 23,376.62$ 27,442.12$ 32,523.99$ 101,637.48$ 243,491.40$ 465,588.69$
Liability Insurance 927.19$ 1,184.74$ 1,390.78$ 1,648.34$ 5,151.06$ 2,378.32$ 3,038.96$ 3,567.48$ 4,228.12$ 13,212.87$ 31,653.88$ 60,526.53$
Accounting Software 125.00$ 125.00$ 125.00$ 125.00$ 500.00$ 125.00$ 125.00$ 125.00$ 125.00$ 500.00$ 500.00$ 500.00$
CRMSoftware 375.00$ 375.00$ 375.00$ 375.00$ 1,500.00$ 375.00$ 375.00$ 375.00$ 375.00$ 1,500.00$ 1,500.00$ 1,500.00$
Marketing Expense 36,649.65$ 38,531.51$ 47,229.39$ 66,673.50$ 189,084.05$ 72,084.80$ 77,787.00$ 93,436.91$ 146,428.30$ 389,737.01$ 824,137.05$ 1,508,832.84$
Research & Development 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 20,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 20,000.00$ 20,000.00$ 20,000.00$
Website, Trademark, Incorporation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Patent Amoratization 201.33$ 201.33$ 201.33$ 201.33$ 805.33$ 201.33$ 201.33$ 201.33$ 201.33$ 805.33$ 805.33$ 805.33$
Depreciation Expense 333.33$ 333.33$ 333.33$ 333.33$ 1,333.33$ 333.33$ 333.33$ 333.33$ 333.33$ 1,333.33$ 1,333.33$ 1,333.33$
Total Expenses 182,586.05$ 200,726.74$ 248,681.67$ 284,384.60$ 916,379.06$ 312,559.35$ 341,620.91$ 375,958.30$ 487,746.54$ 1,517,885.10$ 2,710,643.61$ 4,607,594.73$
Net Operating Income (Loss) 167,210.28$ 246,235.23$ 276,012.82$ 337,475.53$ 1,026,933.87$ 584,696.43$ 804,872.59$ 969,925.37$ 1,107,374.85$ 3,466,869.24$ 9,231,257.85$ 18,226,946.01$
Income Taxes (@35%) (9,957.99)$ (86,182.33)$ (96,604.49)$ (118,116.44)$ (310,861.25)$ (204,643.75)$ (281,705.41)$ (339,473.88)$ (387,581.20)$ (1,213,404.23)$ (3,230,940.25)$ (6,379,431.10)$
Net Income (Loss) 157,252.29$ 160,052.90$ 179,408.33$ 219,359.10$ 716,072.62$ 380,052.68$ 523,167.18$ 630,451.49$ 719,793.65$ 2,253,465.01$ 6,000,317.61$ 11,847,514.91$
Retained Earnings 18,493.41$ 178,546.32$ 357,954.65$ 577,313.75$ 1,293,386.37$ 1,673,439.05$ 2,196,606.23$ 2,827,057.72$ 3,546,851.37$ 5,800,316.38$ 11,800,633.98$ 23,648,148.89$
Year 2 (2018-19) Year 3 (2019-20)

23. DroneSafe, Inc.
Projected Balance Sheet
For the Year Ending May 31
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
ASSETS
Current Assets:
Cash and Cash Equivalents 231,736.67$ 189,553.33$ 147,330.01$ 115,117.35$ 90,644.97$ 69,447.62$ 63,937.05$ 40,512.47$ 53,865.51$ 76,532.05$ 65,590.28$ 117,212.22$
Accounts Recievable -$ -$ -$ -$ 2,412.60$ 4,825.20$ 6,433.60$ 8,041.99$ 10,454.59$ 12,867.19$ 16,888.19$ 19,300.79$
Inventories -$ -$ -$ -$ 5,414.56$ 706.25$ 20,481.18$ 12,633.98$ 2,432.63$ 40,099.16$ 23,620.05$ 4,786.79$
Total Current Assets 231,736.67$ 189,553.33$ 147,330.01$ 115,117.35$ 98,472.13$ 74,979.07$ 90,851.82$ 61,188.44$ 66,752.74$ 129,498.41$ 106,098.52$ 141,299.79$
Non-Current Assets:
Property, Plant, and Equipment 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$
Less: Accumulated Deprecition (111.11)$ (222.22)$ (333.33)$ (444.44)$ (555.56)$ (666.67)$ (777.78)$ (888.89)$ (1,000.00)$ (1,111.11)$ (1,222.22)$ (1,333.33)$
Intangible Assets (Patent) 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$
Less: Accumulated Amortization (67.11)$ (134.22)$ (201.33)$ (268.44)$ (335.56)$ (402.67)$ (469.78)$ (536.89)$ (604.00)$ (671.11)$ (738.22)$ (805.33)$
Total Assets 263,638.44$ 221,276.89$ 178,875.34$ 146,484.46$ 129,661.02$ 105,989.74$ 121,684.26$ 91,842.66$ 97,228.74$ 159,796.18$ 136,218.08$ 171,241.13$
LIABILITIES
Current Liabilities:
Accounts Payable -$ -$ -$ -$ 7,768.72$ -$ 26,052.68$ -$ -$ 50,222.04$ -$ -$
Income Taxes Payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Current Liabilities -$ -$ -$ -$ 7,768.72$ -$ 26,052.68$ -$ -$ 50,222.04$ -$ -$
Non-Current Liabilities:
Other Liabilities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Liabilities -$ -$ -$ -$ 7,768.72$ -$ 26,052.68$ -$ -$ 50,222.04$ -$ -$
STOCKHOLDERS' EQUITY
Preferred Stock (Founder's Investment) 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$
Common Stock (Venture Capital Investment) 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$
Retained Earnings (46,361.56)$ (88,723.11)$ (131,124.66)$ (163,515.54)$ (188,107.70)$ (204,010.26)$ (214,368.42)$ (218,157.34)$ (212,771.26)$ (200,425.86)$ (173,781.92)$ (138,758.87)$
Total Stockholders' Equity 263,638.44$ 221,276.89$ 178,875.34$ 146,484.46$ 121,892.30$ 105,989.74$ 95,631.58$ 91,842.66$ 97,228.74$ 109,574.14$ 136,218.08$ 171,241.13$
Total Liabilities and Stockholder's Equity 263,638.44$ 221,276.89$ 178,875.34$ 146,484.46$ 129,661.02$ 105,989.74$ 121,684.26$ 91,842.66$ 97,228.74$ 159,796.18$ 136,218.08$ 171,241.13$
Year 1 (2017-18)
Year 4 (2020-21) Year 5 (2021-22)
Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Jun - May Jun - May
ASSETS
Current Assets:
Cash and Cash Equivalents 270,057.26$ 447,067.16$ 623,295.59$ 841,374.22$ 1,225,335.69$ 1,751,675.51$ 2,383,478.42$ 3,096,793.25$ 9,085,714.23$ 20,923,096.21$
Accounts Recievable 25,023.58$ 31,974.58$ 37,535.37$ 44,486.37$ 64,187.51$ 82,017.37$ 96,281.26$ 114,111.13$ 213,573.69$ 408,381.95$
Inventories 7,325.23$ 9,360.02$ 10,987.85$ 13,022.63$ 18,789.81$ 24,009.20$ 28,184.71$ 33,404.11$ 87,528.13$ 167,365.69$
Total Current Assets 302,406.08$ 488,401.76$ 671,818.81$ 898,883.23$ 1,308,313.01$ 1,857,702.08$ 2,507,944.40$ 3,244,308.49$ 9,386,816.05$ 21,498,843.86$
Non-Current Assets:
Property, Plant, and Equipment 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$
Less: Accumulated Deprecition (1,666.67)$ (2,000.00)$ (2,333.33)$ (2,666.67)$ (3,000.00)$ (3,333.33)$ (3,666.67)$ (4,000.00)$ (5,333.33)$ (6,666.67)$
Intangible Assets (Patent) 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$ 12,080.00$
Less: Accumulated Amortization (1,006.67)$ (1,208.00)$ (1,409.33)$ (1,610.67)$ (1,812.00)$ (2,013.33)$ (2,214.67)$ (2,416.00)$ (3,221.33)$ (4,026.67)$
Total Assets 331,812.75$ 517,273.76$ 700,156.15$ 926,685.89$ 1,335,581.01$ 1,884,435.41$ 2,534,143.06$ 3,269,972.49$ 9,410,341.38$ 21,520,230.52$
LIABILITIES
Current Liabilities:
Accounts Payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Income Taxes Payable 3,319.33$ 28,727.44$ 32,201.50$ 39,372.15$ 68,214.58$ 93,901.80$ 113,157.96$ 129,193.73$ 269,245.02$ 531,619.26$
Total Current Liabilities 3,319.33$ 28,727.44$ 32,201.50$ 39,372.15$ 68,214.58$ 93,901.80$ 113,157.96$ 129,193.73$ 269,245.02$ 531,619.26$
Non-Current Liabilities:
Other Liabilities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Liabilities 3,319.33$ 28,727.44$ 32,201.50$ 39,372.15$ 68,214.58$ 93,901.80$ 113,157.96$ 129,193.73$ 269,245.02$ 531,619.26$
STOCKHOLDERS' EQUITY
Preferred Stock (Founder's Investment) 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$
Common Stock (Venture Capital Investment) 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$
Retained Earnings 18,493.41$ 178,546.32$ 357,954.65$ 577,313.75$ 957,366.43$ 1,480,533.61$ 2,110,985.10$ 2,830,778.75$ 8,831,096.36$ 20,678,611.27$
Total Stockholders' Equity 328,493.41$ 488,546.32$ 667,954.65$ 887,313.75$ 1,267,366.43$ 1,790,533.61$ 2,420,985.10$ 3,140,778.75$ 9,141,096.36$ 20,988,611.27$
Total Liabilities and Stockholder's Equity 331,812.75$ 517,273.76$ 700,156.15$ 926,685.89$ 1,335,581.01$ 1,884,435.41$ 2,534,143.06$ 3,269,972.49$ 9,410,341.38$ 21,520,230.52$
Year 2 (2018-19) Year 3 (2019-20)

24. DroneSafe, Inc.
Projected Statement of Cash Flows
For the Year Ending May 31
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
CASH FLOW FROM OPERATING ACTIVITIES
Net Income (46,361.56)$ (42,361.56)$ (42,401.55)$ (32,390.88)$ (24,592.16)$ (15,902.57)$ (10,358.16)$ (3,788.91)$ 5,386.07$ 12,345.41$ 26,643.93$ 35,023.05$
Adjustments:
Depreciation on Fixed Assets 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$ 178.22$
Decrease (Increase) in Current Assets:
Accounts Recievable -$ -$ -$ -$ (2,412.60)$ (2,412.60)$ (1,608.40)$ (1,608.40)$ (2,412.60)$ (2,412.60)$ (4,021.00)$ (2,412.60)$
Inventory -$ -$ -$ -$ (5,414.56)$ 4,708.32$ (19,774.93)$ 7,847.19$ 10,201.35$ (37,666.53)$ 16,479.11$ 18,833.26$
Increase (Decrease) in Current Liabilities:
Acounts Payable -$ -$ -$ -$ 7,768.72$ (7,768.72)$ 26,052.68$ (26,052.68)$ -$ 50,222.04$ (50,222.04)$ -$
Income Taxes Payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Cash Provided By Operating Activities (46,183.33)$ (42,183.33)$ (42,223.32)$ (32,212.66)$ (24,472.38)$ (21,197.35)$ (5,510.58)$ (23,424.58)$ 13,353.05$ 22,666.54$ (10,941.77)$ 51,621.94$
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property, Plant, and Equipment (32,080.00)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Cash Used in Investing Activities (32,080.00)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
CASH FLOWS FROM FINANCING ACTIVITIES
Founder's Investment 60,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Venture Capital Investment 250,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Cash Provided (Used) in Financing Activities 310,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Increase (Decrease) in Cash 231,736.67$ (42,183.33)$ (42,223.32)$ (32,212.66)$ (24,472.38)$ (21,197.35)$ (5,510.58)$ (23,424.58)$ 13,353.05$ 22,666.54$ (10,941.77)$ 51,621.94$
Beginning Cash Balance -$ 231,736.67$ 189,553.33$ 147,330.01$ 115,117.35$ 90,644.97$ 69,447.62$ 63,937.05$ 40,512.47$ 53,865.51$ 76,532.05$ 65,590.28$
Ending Cash Balance 231,736.67$ 189,553.33$ 147,330.01$ 115,117.35$ 90,644.97$ 69,447.62$ 63,937.05$ 40,512.47$ 53,865.51$ 76,532.05$ 65,590.28$ 117,212.22$
Year 1 (2017-18)
Year 4 (2020-21) Year 5 (2021-22)
Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Jun - May Jun - May
CASH FLOW FROM OPERATING ACTIVITIES
Net Income 157,252.29$ 160,052.90$ 179,408.33$ 219,359.10$ 380,052.68$ 523,167.18$ 630,451.49$ 719,793.65$ 6,000,317.61$ 11,847,514.91$
Adjustments:
Depreciation on Fixed Assets 534.67$ 534.67$ 534.67$ 534.67$ 534.67$ 534.67$ 534.67$ 534.67$ 2,138.67$ 2,138.67$
Decrease (Increase) in Current Assets:
Accounts Recievable (5,722.80)$ (6,951.00)$ (5,560.80)$ (6,951.00)$ (19,701.14)$ (17,829.86)$ (14,263.89)$ (17,829.86)$ (99,462.56)$ (194,808.27)$
Inventory (2,538.44)$ (2,034.79)$ (1,627.83)$ (2,034.79)$ (5,767.18)$ (5,219.39)$ (4,175.51)$ (5,219.39)$ (54,124.02)$ (79,837.56)$
Increase (Decrease) in Current Liabilities:
Acounts Payable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Income Taxes Payable 3,319.33$ 25,408.11$ 3,474.05$ 7,170.65$ 28,842.44$ 25,687.22$ 19,256.16$ 16,035.77$ 140,051.29$ 262,374.24$
Net Cash Provided By Operating Activities 152,845.04$ 177,009.90$ 176,228.43$ 218,078.63$ 383,961.47$ 526,339.81$ 631,802.91$ 713,314.84$ 5,988,920.98$ 11,837,381.98$
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property, Plant, and Equipment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Cash Used in Investing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
CASH FLOWS FROM FINANCING ACTIVITIES
Founder's Investment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Venture Capital Investment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Cash Provided (Used) in Financing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net Increase (Decrease) in Cash 152,845.04$ 177,009.90$ 176,228.43$ 218,078.63$ 383,961.47$ 526,339.81$ 631,802.91$ 713,314.84$ 5,988,920.98$ 11,837,381.98$
Beginning Cash Balance 117,212.22$ 270,057.26$ 447,067.16$ 623,295.59$ 841,374.22$ 1,225,335.69$ 1,751,675.51$ 2,383,478.42$ 3,096,793.25$ 9,085,714.23$
Ending Cash Balance 270,057.26$ 447,067.16$ 623,295.59$ 841,374.22$ 1,225,335.69$ 1,751,675.51$ 2,383,478.42$ 3,096,793.25$ 9,085,714.23$ 20,923,096.21$
Year 2 (2018-19) Year 3 (2019-20)

25. DroneSafe, Inc.
Projected Sales
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May TOTAL
# OF UNITS SOLD - - - - 414 827 1,103 1,379 1,793 2,207 2,896 3,310 13,791
SALES REVENUE
e-Commerce / Direct Gross Sales -$ -$ -$ -$ 11,460.66$ 22,921.32$ 30,561.76$ 38,202.20$ 49,662.86$ 61,123.53$ 80,224.63$ 91,685.29$ 385,842.25$
Wholesale Gross Sales -$ -$ -$ -$ 2,412.60$ 4,825.20$ 6,433.60$ 8,041.99$ 10,454.59$ 12,867.19$ 16,888.19$ 19,300.79$ 81,224.14$
(Less Returns and Allowances) -$ -$ -$ -$ (229.21)$ (458.43)$ (611.24)$ (764.04)$ (993.26)$ (1,222.47)$ (1,604.49)$ (1,833.71)$ (7,716.85)$
Net Sales -$ -$ -$ -$ 13,644.05$ 27,288.09$ 36,384.12$ 45,480.15$ 59,124.20$ 72,768.25$ 95,508.32$ 109,152.37$ 459,349.55$
Year 1 (2017-18)
Year 4 (2020-21) Year 5 (2021-22)
Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) TOTAL Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) TOTAL Jun - May Jun - May
# OF UNITS SOLD 12,874 16,450 19,310.80 22,887 71,521 33,023 42,195 49,534 58,707 183,458 439,509 840,400
SALES REVENUE
e-Commerce / Direct Gross Sales 356,611.54$ 455,670.30$ 534,917.31$ 633,976.07$ 1,981,175.21$ 914,737.35$ 1,168,831.06$ 1,372,106.02$ 1,626,199.73$ 5,081,874.16$ 12,174,569.96$ 23,279,434.58$
Wholesale Gross Sales 75,070.75$ 95,923.73$ 112,606.12$ 133,459.11$ 417,059.72$ 192,562.52$ 246,052.11$ 288,843.79$ 342,333.38$ 1,069,791.80$ 2,562,884.23$ 4,900,583.43$
(Less Returns and Allowances) (7,132.23)$ (9,113.41)$ (10,698.35)$ (12,679.52)$ (39,623.50)$ (18,294.75)$ (23,376.62)$ (27,442.12)$ (32,523.99)$ (101,637.48)$ (243,491.40)$ (465,588.69)$
Net Sales 424,550.06$ 542,480.63$ 636,825.08$ 754,755.66$ 2,358,611.42$ 1,089,005.13$ 1,391,506.55$ 1,633,507.69$ 1,936,009.11$ 6,050,028.48$ 14,493,962.80$ 27,714,429.32$
Year 2 (2018-19) Year 3 (2019-20)
DroneSafe, Inc.
Projected Inventory Buying Schedule
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Projected Unit Sales - - - - 414 827 1,103 1,379 1,793 2,207 2,896 3,310
Inventory Schedule
Order Placed with Manufacturer - - 1,365 - 4,579 - - 8,826 - - 13,320 -
Inventory on Hand (End of Period) - - - - 952 124 3,600 2,220 428 7,047 4,151 841
Inventory Costs
Per Order Cost (Pay When Received) -$ -$ -$ -$ 7,768.72$ -$ 26,052.68$ -$ -$ 50,222.04$ -$ -$
Inventory Carrying Cost (End of Period) -$ -$ -$ -$ 5,414.56$ 706.25$ 20,481.18$ 12,633.98$ 2,432.63$ 40,099.16$ 23,620.05$ 4,786.79$
Year 1 (2017-18)
Year 4 (2020-21) Year 5 (2021-22)
Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Q1 (Jun - Aug) Q2 (Sep - Nov) Q3 (Dec - Feb) Q4 (Mar - May) Jun - May Jun - May
Projected Unit Sales 12,874 16,450 19,311 22,887 33,023 42,195 49,534 58,707 439,509 840,400
Inventory Schedule
Order Placed with Manufacturer 16,808 19,597 23,244 34,036 43,113 50,268 59,624 66,648 512,248 853,006
Inventory on Hand (End of Period) 1,287 1,645 1,931 2,289 3,302 4,220 4,953 5,871 15,383 29,414
Inventory Costs
Per Order Cost (Pay When Received) 75,790.76$ 95,634.97$ 111,506.30$ 132,261.12$ 193,665.27$ 245,311.40$ 286,022.66$ 339,260.45$ 2,914,692.79$ 4,853,605.06$
Inventory Carrying Cost (End of Period) 7,325.23$ 9,360.02$ 10,987.85$ 13,022.63$ 18,789.81$ 24,009.20$ 28,184.71$ 33,404.11$ 87,528.13$ 167,365.69$
Inventory Order Lead Time = 60 days (2 months)
Inventory Orders are Placed Quarterly with a Safety Stock Equivalent to 10% of Projected Quarterly Sales
Year 2 (2018-19) Year 3 (2019-20)

26. Sales Projections
http://www.grandviewresearch.com/industry-analysis/consumer-drone-market
https://www.tractica.com/newsroom/press-releases/consumer-drone-sales-to-increase-tenfold-to-67-7-million-units-annually-by-2021/
Drones Sold
per Year in
the US
Potential US
Customers
2.81 Drones per
User
Geographic
Presence
Customers in
Targeted
Location
Product
Awareness (39%)
Customers
Aware of
DroneSleeve
Projected
Sales
Willingness to Buy
(12.8%)
18,813,000 6,695,000 3,727,000 1,435,000 183,500
Example: Year 3 (2019-2020)

28. General statistics

29. Demographic breakdown

30. Buying behavior

31. Market Research

32. Market Research

33. Segmentation

34. Marketing Budget

35. Operations:
Operating Model
Customer can purchase DroneSleeve using:
DroneSafe web portal
Amazon web portal
Nearest brick and mortar store
DroneSafe leverages competency of 3PL provider
to ensure smooth operations during initial years
DroneSafe also makes use of Amazon fulfillment
center to sell and deliver DroneSleeve.

36. Operations: 3PL v/s
Warehouse management
DroneSafe will utilize the vast
experience of 3PL providers in
logistics management and advanced
inventory management.
DroneSafe will learn the nuts and
bolts of day to day handling of
operations during the first 2 years and
ramp up quickly to operate its own
warehouse from year 3.
Based on CBA, the cost of owning a
warehouse and contracting a 3PL are
similar for the first 2 years.
Shipment Size = 6.5kgs/carton
Each Carton holds 600 gloves
Carton Dimension 58 × 26 × 35 Centimeters
= 23 × 10 × 14 inches
Maximum Order = 35000 gloves
Pallet Size 48 * 40 inches
Height of rack 4 feet
Consignment Receiving Fee $30
Storage fees $12/pallet
Locate, Pick and Pack fee $3 per order, 30c for each additional item
Outbound Logistics Freight Charge
3PL costs
No.of cartons 59
No.of cartons/pallet 24
Max Pallets required 3
Storage costs 432.00$
Receiving Fee 30.00$
Pack fee 325,959.00$ Sales Projected in year 2 = 108,653
Total Costs 326,421.00$
Cost for a Maximum order of 35000
Area of Warehoue 4000 SF
Lease rate $10/SF/Yr
Total rental rate $40,000
No.of Warehouse Employees 2
Salary of Warehouse Employees/person $46,730
total Salary Expense $93,460
Packing cost $1.5 per unit
Total Packing Cost 162979.5
Utility bills $10,000
Total traceable Costs $306,440
Typical Warehouse Cost

37. Purchasing Process

38. Value Curve

39. Value Chain