WindVolt Final Business Plan

Nate Berenson, Todd Christy, Alex Krull, Otto Schiffauer

Table of Contents

Executive Summary………………………………………………………………………………………………………...2Product/Service Description…………………………………………………………………………………………...2Market/Industry Analysis……………………………………………………………………………………………….2Marketing/Management Plan………………………………………………………………………………………….2

Company Overview………………………………………………………………………………………………………...3

Product Plan…………………………………………………………………………………………………………………..4Features………………………………………………………………………………………………………………4Ventures……………………………………………………………………………………………………………...4Enhancements……………………………………………………………………………………………………..4

Product Strategy……………………………………………………………………………………………………………..5Demand……………………………………………………………………………………………………………….5Technology………………………………………………………………………………………………………….5Benefits……………………………………………………………………………………………………………….6

Market/ Industry Analysis Overall Market…………………………………………………………………………………………………….6Segmentation………………………………………………………………………………………………………6Entry Point………………………………………………………………………………………………………….7Barriers to Entry…………………………………………………………………………………………………7Competition………………………………………………………………………………………………………..7Opportunity………………………………………………………………………………………………………..8

Marketing Plan………………………………………………………………………………………………………………8Customer Research……………………………………………………………………………………………..8Target Customer Strategy……………………………………………………………………………………8

Operations Plan…………………………………………………………………………………………………………….13Development Plan………………………………………………………………………………………………

13Research, Development and Engineering ……………………………………………………………13Costs and Expenditures………………………………………………………………………………………14

Management Plan………………………………………………………………………………………………………...16Key Managers …………………………………………………………………………………………………...16

Risks……………………………………………………………………………………………………………………………17Finances………………………………………………………………………………………………………………………18Funding……………………………………………………………………………………………………………………….20

Sources and Uses of Funds…………………………………………………………………………………20

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Appendix……………………………………………………………………………………………………………………...23Executive Summary

Product/Service DescriptionWindVolt is a first-of-its-kind, car-mounted miniature wind turbine designed to enhance a vehicles performance overall, irrespective if it is gas-fueled or electric. The turbines can be mounted inside the grill, underneath the chassis, and inside the wheel wells. The generated electricity is then diverted to the dashboard electronics, headlights, air conditioning, and a spare battery. Strictly in EVs, WindVolt provides an on-the-go charging feature designed to increase driving range. Market/Industry AnalysisWindVolt’s unique renewable energy system is designed to increase fuel economy and driving range, while reducing range anxiety for EV owners. There are roughly 400,000 EV owners in the US and 40% (~160,000) reside in California. The Bay Area is home to two top-EV cities in San Jose and Fremont, which is where we’ll be headquartered. By 2020, the Department of Energy projects there to be three-to-five million EVs on the road; ideally, we will hold a large share of this market. Currently we have no competitors utilizing wind energy. WindVolt also aims to hold a significant market share of the gas-fueled vehicle market in the US. This way, our product can work to increase fuel economy and make a positive, long-term environmental impact with each vehicle. Our current plans are to sell WindVolt on our website and through our partnered auto parts retailers’ websites. Marketing PlanWindVolt will primarily market on our social media outlets and Google AdSense, as well as through our partnered auto parts retailers both online and in-store. We will also appear at trade shows in the Bay Area. WindVolt will also be featured in magazines such as Popular Science and Popular Mechanics. Management PlanWindVolt will be operated by a core group of four employees: CEO, CFO, COO, and CMO. There will also be two engineers who will be overseen by the CEO. FinancialWindVolt will be valued at an expected $20 million by the end of the third year of business. WindVolt will be sold for $1,000 per unit, and we expect to break even in January of Year Two of operations. FundingWindVolt is seeking an initial investment of $470,000 in return for 36.43% equity. Additionally, we will raise roughly $800,000 on our own, equaling 62.02% equity. We will apply for a $10,000 commercial loan, as well as incur $10,000 in credit card debt.

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Company Overview

IntroductionWindVolt is a Fremont, California based renewable energy company that looks to solve the market need for greater range and efficiency for electric vehicles. To do so, WindVolt will utilize wind power using the vehicles forward momentum. WindVolt was founded by Nate Berenson, Otto Schiffhauer, Todd Christy and Alex Krull at the University of Colorado Boulder. Currently our company is seeking initial investments in order to begin the hiring process of our engineers. WindVolt is an LLC, a limited liability company.

VisionOur vision is to solve the everyday problems EV drivers face - limited range and efficiency. When using internal gadgets such as the air condition, these problems are further enhanced. WindVolt looks to provide a clean, effective solution by harnessing wind power to generate energy. Gasoline powered engines suffer from this too. This is why WindVolt will start in the EV market and move to penetrate the gasoline market by Year Three. WindVolt seeks to provide everyone with a solution to their range and efficiency problems when driving.

Mission StatementWe are a renewable energy company in the automotive industry specializing in providing drivers with a discreet and efficient source of energy for increasing vehicle’s range and performance.

Business Model WindVolt will create value as an environmentally sustainable, high quality, and effective brand. Promotion of an environmental agenda appeals to a growing number of people looking to be earth friendly. A high quality and effective product gives us a guarantee that the customer will be happy with their purchase. As WindVolt is expected to increase range up to 20%, our customers will view the product as a worthwhile investment. Customers will purchase WindVolt either on our website or through one of our partnered automotive parts retailers. These two channels allow for both B-to-C and B-to-B distribution. WindVolt carries a high startup cost as we look to create a brand new technology. We will need $1.3million to purchase hard assets and begin production. Once our product hit the shelves in month six of fiscal Year One, we plan on a 75% increase in sales for Year Two, allowing us a positive cash flow of $354,200. Each WindVolt will cost the customer $1,000. Of which, $400 is used for production, and $250 or 25% is used to our contracted retailers. This leaves a margin of $350 per unit and $600 per unit for delivery and self-installation. We plan to implement WindVolts for the gas vehicle in Year Three. By this time, we will pay dividends in addition to generate $1,000,000 in profit.

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Product Plan

WindVolt is a car-mounted miniature wind turbine capable of enhancing a car’s performance through improved engine efficiency and longer battery life, for both gas-powered and electric vehicles. Using the downwind force generated by the vehicle’s forward momentum, the professionally installed WindVolt turbines generate electricity that can be diverted to the dashboard electronics, headlights, and the air conditioning system. WindVolt also acts as an on-the-go charger for electric-powered vehicles, thereby increasing driving range while alleviating driver anxiety.

FeaturesWindVolt seeks to improve the overall performance of your gas-powered or electric vehicle by using renewable energy to power the various electronics. Sold as both an aftermarket product and a stock feature in selective brands’ vehicles, WindVolt has the potential to transform not only a vehicle’s performance but a driver’s experience as well.

Product VenturesWindVolt’s renewable energy functionality will reduce long-term costs of gas and electric charging with reduced electricity flowing from the engine to the vehicle’s electronic components. WindVolt will be installed in strategic places along the vehicle, primarily inside the grille and on the underside, unaffected from drag resistance. One unit will cost $1,000 for a kit includes four turbines and the central generator.

Service VenturesWindVolt’s simple and effective design renders installation and use over a 20-year period of time efficient and cost-effective. The turbine’s four blades and housing are constructed from ultra-lightweight carbon fiber and stainless steel. WindVolt will reduce harmful emissions overtime by cutting fuel costs long term by 15%.

Retail VenturesWindVolt provides drivers with the opportunity to cut costs over 20 years. By using wind energy to power most electronic components in your vehicle, WindVolt customers will be able to save money on gas and electricity. WindVolt will be sold online as an aftermarket product on our website and in various automotive stores across the United States. In the future, WindVolt will be available as a standard or add-on feature for certain automotive company’s vehicles, with an emphasis on electronic vehicles.

50%

34%

16%

Where would you expect to find a WindVolt for pur-

chase?

Auto Parts Store (O'Reilly, AutoZone)

Online (www.windvolt.-com)Other

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Digital VenturesWindVolt will be available online on our website in addition to online retail outlets which includes AutoZone, Advanced Auto Parts and O’Reilly Auto Parts.

EnhancementsWindVolt turbines are made in the USA, providing jobs to Californians in the budding renewable energy sector. Sustainability is our primary focus for developing this product. We will use sustainability as a selling point to potential consumers. Warranties will vary depending on aftermarket kit size, ranging from six months to two years. Installation will be done by professionally trained mechanics, backed by our customer satisfaction warranty and full refund policy.

Product Strategy

TimelineOur standard package will feature four turbines, all ready for self-installation. We will debut WindVolt on our website and online through local automotive stores such as Advanced Auto Parts, O’Reilly Auto Parts and AutoZone. Trade and auto shows are the next place to introduce consumers to WindVolt. Producing more models of WindVolt will be the first step in appealing to a larger market. Nearly 90% of cars on US roads are gas powered, while 10% are electric/hybrid. Stepping into the gasoline market will occur in Year Three. By the end Year Three we will be working with car manufacturers directly to get WindVolt as a standard install in most vehicles. We hope to work with the federal government in reaching a subsidy for customers who purchase a vehicle with the WindVolt installed.

DifferentiationWindVolt allows you to be environmentally conscious while decreasing your financial burden. The product will increase distances you can drive, as well as power gadgets that otherwise would require gasoline and electricity. WindVolt is a new brand that stands for sustainability and environmental awareness, while at the same time addressing your financial concerns. WindVolt enters a market where there is virtually no competition.

DemandIn 2007, only 2% of cars on US roads were hybrid/electric. In 2015, that number rose to 10%. An 8% increase in eight years is a tremendous testament of our dedication to sustainability and environmental consciousness as a nation. People want to be conscious of the environment and be less dependent on fossil fuels; all of this begins with the car you drive. With over 210 million cars on the road in the US, WindVolt has the potential to connect with a massive customer base.

TechnologyWindVolt will have a team of top tier engineers focused on the design, installation and mechanics. Our engineers will provide us with the best possible prototypes of the turbines. WindVolt will hold a unique, tried and tested and patented design.

Evolution

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WindVolt, beginning as an add-on product; will evolve to a standard install with your new vehicle. From the beginning we would like to get local mechanics on board to install the product, as well as promote it. Dealerships and auto shops that work on cars have trained technicians who can install WindVolt.

Value PropositionWindVolt reduces the costs of your day-to-day commute, reduces stress and limits the release of harmful toxins into the environment. Many thought it was going to be impossible to reduce reliance on fossil fuels; however, WindVolt provides a healthier alternative

Key BenefitsPeace of Mind:

Produced & Manufactured in the United States. Customers will never again experience the stressful reality of a dead car batter One does not need an additional car to jump your battery.

Environmentally friendly: Customer is doing their part by increasing their vehicles range by 20%, thus

releasing fewer emissions into the atmosphere.Convenience:

Sold both online and through online retail stores. Informative website outlining features and benefits as well as DIY installation.

Cost saving: No longer does the air conditioning drain your mileage, WindVolt makes up for the

20% reduction in range.

Proprietary RightsWindvolt will have trademarks to the application and services associated with the name, logo, and product. To keep our idea safe, a utility patent will be filled. Utilizing wind-turbines and connecting a rechargeable battery will be the patentable idea for this product.

Stage of DevelopmentWindvolt is still in the conceptual stage and coming close to the design/prototype stage. The conceptual and design of this product will be the hardest and most time consuming part; however, if the prototype works well, the product will easily take off.

Market and Industry Analysis

Since the electric vehicle/ hybrids have gone to market back in 2009-2010, we see a relative constant increase in total electric drive market share compared to the rest of the market. The constant rise in total sales is intriguing for this market because people are becoming more environmentally aware which in turns provides more demand for the electric vehicle industry.

Segmentation

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WindVolt’s ideal customers are pro-renewable energy, environmentally conscious and tech-savvy baby boomers and millennia’s in the middle to upper class. These potential customers commute regularly and own an electric vehicle for their primary transportation needs. We are headquartering in Fremont, CA for a variety of reasons. California has 40% of all electric vehicles on the road, and it is the 2nd most popular location for EV rebates. According to Finnode USA, an electric vehicle statistics resource, nearly 2,000 Silicon Valley residents have put money down to reserve an electric vehicle. Pairing this with increased population growth and the tech boom going on there, headquartering in Fremont facilitates success. Targeting this specific market will be beneficial for WindVolt because initial installation costs will be high; however, the peace of mind and increased range WindVolt provides to its customers will greatly benefit the cost of operation for each owner. In the future, we expect to have WindVolt available to all electric drive cars throughout the country. Not using air conditioning can save up to 2% on fuel, so powering the air conditioning in gasoline cars would greatly increase our possible target market.

By 2020, the Department of Energy expects 3-5 million electric vehicles on the road, and with that arises two major problems: battery longevity and charging capability. On-the-go charging capabilities will solve both of these problems at once, and for half the cost of solar powered alternatives. Additionally, we anticipate that the 3-5 million owners of electric vehicles in 2020 will be right in our target segment of progressive, environmentally-conscious and tech-savvy middle-to-upper class individuals.

Entry Point:WindVolt provides drivers with a unique renewable energy system designed to increase fuel economy and reduce range anxiety in electric vehicles. Branching off of this, WindVolt will enter both the automotive industry and the renewable energy industry simultaneously. Over the past three years, electric vehicle sales have increased steadily, which is why we feel confident that entering these two industries is a successful two-pronged strategy.Curtailing to environmentally friendly segments, WindVolt has the best chance of entering the market in green emission cities such as Fremont, California. Many consumers are hesitant to switch to electric vehicles because the distance is greatly limited compared to gasoline-powered vehicles. Solving this problem will help consumers make the switch to electric vehicles with more peace of mind knowing they can travel farther with a backup rechargeable battery.

Competitive Environment To this date, there are no other companies looking to harness wind as an energy source while driving. WindVolt will therefore become the first of its kind to power electronics, air conditioning and increase the overall range of your electric vehicle. The closest competitor is these “slap on” rug like solar panels that are wind resistant up to 120 MPH and require exterior wiring to the engine block. The main competitor in this category is the Streamlight SolarStream Solar panel that can fit 4-5 on the roof of a car with a maximum output of 14W. The MSRP for one of these panels is $400, but are typically found on sale for $270. If you did line your entire roof, costs would be upwards of MSRP $2,000, or $1,350. Our $1,000

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unit will generate far more than 70W which is still 50% less than the 5-panel Streamlight package.

Barriers to Entry1. Outsourcing manufacturing to a contract manufacturer

a. Our headquarters in Fremont, California are where all operations will be run as well storage for materials and product.

2. Costs associated with researching the concept.a. Researching and testing WindVolt will take up the majority of our first year. We

will bring on engineers, test turbine designs and figure out installation points with the least resistance. Our success depends on WindVolt producing more energy than a solar panel install on your roof and quick/easy installation.

3. Marketing costs to promote brand awareness.a. Brand awareness is extremely important to recuperate our startup costs. This

will include bringing WindVolt to retailers as well as the training of technicians to install WindVolt. Marketing funds will also be used to start up a website that explains what WindVolt does, what the company stands for, and how to install for DIY users. Lastly, we will use the remaining funds to bring WindVolt to trade and auto shows demonstrating in-person how WindVolt works.

OpportunityOur product provides a tremendous benefit to not only the customer but to the environment as well. Also, with so many angel investors and venture capitalists located in the Bay Area, Fremont is an ideal place to launch our company.

Marketing Plan

Customer Research WindVolt conducted three surveys on a small sample (n = 60) matching our ideal customer profile. Results indicated that durability, price, and design were the three most imperative selling points. Additionally, results indicated that initial cost versus savings, production in America, and low maintenance/installation costs were the imperative factors for potentially purchasing our product. Lastly, potential consumers reported that they would be willing to pay a high initial cost if the product saves them money within the first few years of ownership.

Customer Profile WindVolt’s ideal consumer is an environmentally conscious, tech-savvy individual in their early 20s to early 60s with economic status in the middle-to-upper class. Beginning in Year Three, we will target progressive automotive companies such as Tesla. We expect that corporations interested in WindVolt will have annual revenues upwards of $900 million, employ over 3,000 people, and has headquarters west of the Mississippi.

Buying Decisions

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Primarily, we will target individual customers that match our ideal criteria. Secondly, after a period of two to three years, we will look to partner with one or more car manufacturers. Our goal is to become a standard feature or exclusive add-on feature for select vehicles, both gas-powered and electric. Equally as imperative is growing our brand, which we will achieve through a passionate customer base in the Bay Area. Customers who are attracted to the key benefits of WindVolt—sustainably-powered electronic components and increased fuel economy in gas-powered vehicles—are the most likely to purchase a product. WindVolt’s key capability to power electronics—primarily air conditioning—is critical because an EV’s battery can become drained more quickly, causing a reduction in driving range and an increase in a driver’s range anxiety. At $1,000 base price, WindVolt is a long-term investment.

In the event that a customer is not satisfied with their WindVolt, we offer a 100% money-back guarantee during the first nine months of ownership. We guarantee optimal performance and output to each of our customers as well as value our customers’ opinions and take into consideration both criticisms and compliments. Our product is available to customers online on our website, as well as online at select auto parts retailers based primarily in Fremont in the East Bay Area. Once a customer purchases a WindVolt, they can choose to either have it shipped to their residence or pick-up/install the product up in-store at one of our select auto parts retailers.

The San Francisco Bay Area is notorious right now for being one of the most progressive-thinking areas in the United States and is the epicenter for the burgeoning tech boom. Additionally, there are 48,000 EVs registered there as of June 2015. Secondly, Fremont has 14% of the population of Alameda County, and approximately 30% of those residents own EVs, according the California Center for Sustainable Energy. It has the second-most EV rebates (1,039 as of February 2014) next to nearby San Jose and it is the fourth largest Bay Area city. According to Fremont’s Sustainability Coordinator, Fremont is highly committed to reducing greenhouse gases—60% of which come from automobile emissions—which means more EV owners in a concentrated area and our target customer. Once a customer has purchased an EV and received their rebate, they will be more inclined to purchase a product that will increase the driving range of their EV.

Following the initial two-to-three year period of customer-targeted sales, we will try to partner with four automotive companies and scale up our production. These companies are Tesla, Toyota, Chevrolet, and Nissan, specifically targeting the Model S, Prius, Volt, and Leaf. We will constantly analyze the market in order to prevent a surplus of inventory during our initial sales period.

Customer BehaviorWe will advertise throughout the Bay Area using a strategic combination of primarily online advertisements. Subsequently, we will advertise in magazines such as Top Gear, Popular Mechanics, and Popular Science with a goal to show potential consumers the many benefits of WindVolt and the favorable return-on-investment.

Channel Strategy

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Our distribution plan will consist of two channels: retail and e-commerce. First, we will launch our product into the market via our website and Bay Area auto parts retailers such as AutoZone, O’Reilly, and Advanced Auto Parts. Due to how new WindVolt is, we will certify technicians at either of these select automotive retailers so customers can feel confident and comfortable that their purchase is worthwhile. Our goal is to execute same-day installations at all of our Bay Area locations, with our primary focus in Fremont and surrounding towns. Subsequently, our customers will be able to purchase a WindVolt on our website, in addition to the online stores of the three aforementioned auto parts retailers. That way, our customers can select the “in-store pick up” option and have their WindVolt installed in their vehicle that same day. All forms of online advertising will have a link to our online store—including each of our social media pages—as well as links to WindVolt on these select auto parts retailers’ websites.

Our initial offering will feature a turbine designed to fit inside the grill—with the potential for placement on the undercarriage and inside the wheel wells—of the Tesla Model S, Toyota Prius, Chevrolet Volt and Nissan Leaf vehicles. Within two years of initiating sales, we seek to introduce a larger variety of WindVolt models that are tailor-made to a variety of gas-powered vehicles. Nearly 90% of vehicles in the United States are gas-powered, so this progression will facilitate our stake in a new market segment. Within twelve to eighteen months, we anticipate to be working directly with large auto manufacturers to put WindVolt as an add-on or, more ideally, a standard feature in many vehicles. WindVolt exists to alleviate many automotive malfunctions, both seen and unforeseen. We are confident that by Year Three, we will have created the optimal WindVolt model that consistently and efficiently benefits the consumer.

PositioningWindVolt is a first-of-its-kind car-mounted miniature wind turbine designed to enhance a vehicle’s performance overall, irrespective if it is gas-fueled or electric. WindVolt is for tech-savvy and environmentally conscious vehicle owners who value a positive environmental impact over initial cost. Primarily, our focus is to reduce range anxiety associated with ownership of an EV. Subsequently, we strive to improve the fuel economy of gas-powered vehicles. WindVolt benefits EV owners by providing them with a renewable source of electricity as a means to increase the efficiency and range of their vehicle.

Branding StrategyOur brand is sustainability and innovation. As the first product to harness wind-powered energy while driving, WindVolt brings a powerful presence of alternative energy to an otherwise fossil fuel driven market. WindVolt will capitalize on the fact that it is revolutionary. Presenting a clean and environmentally conscious identity will help to gain the trust of consumers looking to join in on a cleaner future. We hope that the customer feels that they are contributing directly to a cleaner and sustainable future with their purchase of WindVolt.

Potential customers will be exposed to the many benefits WindVolt brings in each medium that we present our product. Online at both our retailers’ and our own website, potential customers will be able to view video demonstrations highlighting features such as

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installation and real-world success. At trade shows, individuals will be encouraged to grill our enthusiastic management team, in addition to viewing live demonstrations. Customer service will be available during business hours if any problems arise. All of this is done with a client-centric approach to presenting the many benefits of WindVolt and what we stand for.

Our core values have their foundation in sustainability, ingenuity, and social responsibility. As a company, we hope to bring these values to the general public to provide them with a better understanding of the benefits of our product. Ideally, our target customer base will help to spread these benefits, as they too are conscious of a sustainable future. These values reflect WindVolt’s culture as a sustainable brand focused on the environment. Proof of this lies within our core value of ingenuity, as we are a pioneering company in the use of wind energy for vehicles.

Digital StrategyWe design our website using Squarespace at $26 per month. It will feature an interactive tutorial highlighting product conception, design, manufacturing, and finally a demonstration, in addition to founder biographies, core values, and our mission statement. Customers can purchase our product on our website and have it shipped to either their residence or a nearby auto parts retailer that we are partnered with. A customer service hotline will be available during our business hours. Additionally, we will use social media to promote and connect with our customers.

Communication Strategy Years One & Two:Our primary objective is to build a strong reputation as a product that can reduce stress in every vehicle owner’s lives. We will address two key benefits of owning our product: first, having a system for staying ahead of an unforeseen problem (such as dead battery); second, despite the high initial cost our product will pay itself off in about a year, while helping to reduce harmful emissions overall. We plan on introducing WindVolt through select auto parts retailers in the East Bay Area, including O’Reilly Auto Parts, AutoZone, and Advanced Auto Parts. We will also be advertising online and around the Fremont area, as well as in magazines such as Popular Mechanics and Popular Science. Social media outlets will be one prominent source of communication as well. Lastly, we will present our product at auto shows in the Bay Area, giving live demonstrations as well as handing out marketing materials to potential customers.

Year Three:By this time, we will shift more focus towards gas-powered cars while continuing our expansion in the EV market. This is 90% of the automotive market in the United States and we wanted to allow ourselves enough time to work out every deficiency in our product before approaching such a large segment. Efficiency is the primary goal; we want to reduce emissions as much as possible from gas-powered vehicles. We plan to communicate the benefits of improved fuel-economy to this large market segment. Not only do we want every car in America to have a WindVolt installed, but we are also cognizant of future

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generations and the potential harm inflicted upon them if alternative energy companies do not try and amend our current habits.

Sales StrategyOnce we get WindVolt from concept to fully developed product, our Chief Sales Officer will seek to establish long-term connections with the aforementioned automotive parts retailers in Fremont and eventually the entire Bay Area. We are confident that local trade shows will be imperative to establishing these connections. Additionally, our ideal investors will have existing connections or channels to connect with these retailers, as well as car manufacturers.

Our primary sales team will consist of our CMO/CSO. We will compensate him using equity as well as commission-based pay, initially, and then transition to a higher base salary once sales are rise. We estimate that commission-based pay rate will be 10% or $100 per unit sold. We expect our CSO to bring in $750,000 in sales, yielding his pay at $75,000, with a potential for performance-based bonus of $25,000. These figures reflect our Year One speculations and expectations.

Pricing StrategyThe target launch price for one standard WindVolt unit is $1,000. To determine this, we primarily looked at potential customer feedback (value price) and payback period. Subsequently, we considered cost of production, R&D, marketing, and partnership (including installation). Following three potential customer surveys (n = 60), we received overwhelming positive feedback confirming our target sale price. As no other wind-powered device exists to compete with us, our potential customer base is our biggest motivator of price.

Our unit price is subject to change, however. The two models below illustrate price increases and decreases that are dependent on the success of our sales:

Channel Pricing

Channel Price Paid Per Unit

Consumer $1,000

WindVolt $650

Auto Parts Retailer $200

Materials Supplier $50

Our steel and plastic will cost $50 per unit. We anticipate that we will be able to drive this cost down as much as $20 as our production and sales grow. We estimate production costs in our Fremont headquarters to be $400 per unit. This includes the facility cost, payment

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for equipment, and labor. We chose to assemble each unit in Fremont to ensure optimal production quality.

Revenue ModelWe will begin sales during July of Year One, following a six-month R&D period. We predict that in Year One, we will be able to sell 750 WindVolt units. By the end of Year Two, we anticipate sales of 2,820 units. We are only targeting EV owners in the Fremont area during this time period because Fremont has the second-highest concentration in California. In Year Three, we will progress into the gas-powered vehicle market. We anticipate sales of 12,910 units.

Operations Plan

Operations StrategyAssembly in the United States allows us to oversee production and quickly adapt to any unforeseen issues, increasing efficiency. This is important for providing customers with a durable product that will endure all elements. Our company will be known for a quality product that saves money to help capture the marketplace.

Scope of OperationsThe design of the prototype will begin at our headquarters in Fremont, CA with our team of engineers. Initial blueprints will be molded into prototypes by contracting Moddler, a San Francisco-based 3D printing company known for high level of surface detail and work with designers/inventors. Prototypes will be tested with the application to the Prius, Model S, Leaf and Volt.

Once our prototypes are successful, we will hire a contract manufacturer based out of Fremont, CA to produce our product. The close proximity to our headquarters will allow oversight over production as well as move product quickly to be shipped. We will purchase the necessary steel used in the framing turbines and housing material from Baosteel, one of the largest steel producers in the world, located on the East China Sea. The carbon fiber will also come from Shanghai Kumho Sunny Plastics Co., Ltd., in China, which specializes in engineering plastics. The last materials needed are lithium batteries which will also be purchased through Chinese manufacturers and carbon fiber for the turbine from CDG Technology based out of Fremont, CA.

Research, Development, and EngineeringCurrently we do not have a prototype for WindVolt; however, our goal is to produce an operational prototype by May 1, 2016. Our hired engineers will work together using computer aided design (CAD) software to develop and design the first prototype. This “Stage 1” prototype will be tested for design flaws as well as optimal location on the vehicle. Utilizing the hot summer months when developing our prototype will allow us to more adequately test fuel economy savings in relation to air conditioning usage. Our “Stage 2” prototype will be completed by November 1, 2016, with emphasis on size and proficiency. We want the product to be small and inconspicuous while still generating adequate power. The next few months will consist of perfecting the product and preparing

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the final prototype for launch by July 1, 2017. All prototypes will be contracted out and produced by Moddler, a 3D printing company at a price of $5,000 per prototype due to the complexity of our product as well as a price comparison for more similar 3D-printed items.

We believe our product is intellectual property and will be filing for a patent. After doing a patent search, we found no other patented product and with the incredibly unique idea, we want to protect our product to the fullest extent. We are confident that a patent will not only facilitate a path towards creating long term wealth for our company, but it will also increase the value of our company, making us more enticing to larger companies seeking to obtain our product for themselves. A domestic utility patent for will cost $20,000.

Costs and ExpendituresWindvolt will be constructed out of stainless steel and carbon fiber to ensure a high quality product. The average price for stainless steel is $0.25 per pound and for carbon fiber, the price ranges from $8-12 per pound. We estimate that each Windvolt will require roughly $50 worth of materials with 90% of that cost coming from the four wind-blades on the turbine. The engineers we hire will receive an initial salary of $60,000 salary and will also receive a fully matched 401 k and small stock options as initial benefits to their salary. As employers/owners, we will only receive a salary of $40,000 that salary in an attempt to keep costs low. These salaries are only for the first year when we are still paying off debt; however, when sales begin to rise in the next few years, these salaries will double.

8 Mac Computers $9,000 total

2 CAD/Adobe software packs $4,000 total

Stainless Steel $50 for 200 lbs

Carbon Fiber $500 for 50 lbs

Copper Wire $100 for 100ft

Lithium Ion Battery $200 per battery

Generator/Converter $75

Group of managers: CEO: 17.02%

o Work to solidify wealthy investors for our product.o Oversees engineering sector.

CFO: 15%o In charge of budgeting newly acquired capital and tracking all expenditures. o Following product launch, monitors revenue and tracks financial progress.

COO: 15% o Operate day-to-day schedule, activities, & tasks.

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CMO: 15% o In charge of sales during the early stages of our venture, in addition to

managing the website and other marketing and advertising materials. Outside investors: 36.43%

The table below shows our projected sales forecast for the first three years. The first year of our contracted manufacturer, we want to form a lasting relationship where constant production can be achieved to produce large quantities necessary within a few years. Year One, we only sell product for the last six months of the year; however, we planned production quantities based on projected sales that can alter monthly if needed.

Year One - 750 units sold = 125 units per month = 29 units per week

Year Two - 2,820 units sold = 235 units per month = 54 units per week

Year Three - 4,935 units sold = 411 units per month = 95 units per week

InventoryIn order to operate our marketing strategy successfully we need to constantly overlook our inventory to make sure we are capable of fulfilling orders in a timely fashion. Ordering large quantities of materials from China allows us to keep materials stocked in our warehouse in case of a sudden increase in demand. Our first year we see ourselves selling 750 units; however, we want to have the materials to produce 1,000 units in case of an increase in demand. As we increase in monthly sales, we are going to keep producing at the same rate which will give us more inventory in the beginning of the year compared to the end. We are doing this because if our sales are much lower than anticipated, we can lower monthly production so units do not sit in inventory. However, if we notice a rise in sales, we can order more materials and produce more to keep up with demand.

Key Milestones

The first step is to secure funding from inside and outside investors. We will look to friends and family initially, and then to angel investors. Next we will need to secure a warehouse in the San Francisco Bay Area. This warehouse will be the centerfold of our prototyping and eventually, operations. Next we need to hire two highly qualified and experienced engineers. The hiring process should expand no longer than December of the year before WindVolt starts prototyping. This allows the new hires to get situated in the Fremont area. These engineers will be the initial lifeline to get WindVolt up and running. Once hired, the two engineers will be stationed in our warehouse designing and building WindVolts for the next year. The following step is to begin prototyping. As outlined in the operations plan, this process is a collaboration between our engineers and the 3D printing company, Moddler. We will secure a six month contract with Moddler to print out blueprints and schematics until the proper WindVolt is designed. Once the best WindVolt is prototyped we will look to secure a patent on its design. We expect to reach this milestone no later than

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April of year one. To assist us in the patent process, we will retain Christopher Peil, a Fremont based patent attorney.

While our design is being secured under the name WindVolt, we will begin importing materials from Baosteel and start production in our Fremont based warehouse. Orders to Baosteel will be placed in April with materials arriving in May, and production starting in June. Our COO will oversee this process a ensuring enough units are produced to meet expected demand in the third and fourth quarter of our first fiscal year. Meanwhile, during the same time that the designs are being finalized and the patent is being secured, our CMO will be working with our certified retailers to secure distribution and advertisement in their stores. Contracts with our retailers should be finalized by month six of our first fiscal year. A contract breakdown gives them a 25% cut and provides us with eye level placement of the product as well as one advertisement near the front door, and one near checkout. Once contracts are secured we will start to ship out WindVolts to our certified retailers. Shipping will occur from our warehouse, and will be carried out by our executives in year one, no additional hires are needed. Once on the shelves, our CMO will begin his tour of the United States promoting WindVolt. He will hit various auto and trade shows. Main focus will be in the southwest United States as our initial target market is those in hot and dry climates. At the same time, our website will become active - providing customers with the means to purchase WindVolt online.

In Year Two, we will extend contracts with Advanced Auto Parts, AutoZone and O’ Reilly for two additional years. Our target market will grow from the southwest United States to the entire United States. Production will continue to increase as demand goes up. In Year Three, we will introduce WindVolt to the gas powered market, giving us a two dimensional penetration to almost all vehicles on the road.

Management Plan

WindVolt will have executive positions held by the four founders: Nate Berenson, Alex Krull, Otto Schiffhauer, and Todd Christy. Executives will be compensated with 15% ownership of the company with the Chief Executive Officer owning slightly more at 17.02% of the company.

Chief Executive Officer: Mr. Nate BerensonMr. Berenson will oversee all other executive branches as well as leading the entire WindVolt team. He is a senior majoring in Psychology with a minor in Business Analytics and Finance from the University of Colorado, Boulder. His leadership in his fraternity and experience as the University of Colorado Campus Ambassador for Southern Tide make Mr. Berenson the perfect CEO for WindVolt.

Chief Financial Officer: Mr. Todd ChristyMr. Christy is a senior at the University of Colorado, Boulder majoring in Economics and minoring in Business Entrepreneurship. Responsible for all financial aspects of the business as well as data analysis and overall strategic planning, Mr. Christy will work closely with the CEO to maintain a financially stable and growing business.

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Chief Operations Officer: Mr. Otto SchiffhauerA senior majoring in International Affairs and minoring in Spanish, Business Analytics and Finance, Mr. Schiffhauer has the background to lead, organize, and oversee the daily operations of the company. Prior experience leading group projects and sports teams makes Mr. Schiffhauer the perfect COO for WindVolt. Mr. Schiffhauer will oversee daily operations and report directly to the CEO while working with the CFO to monitor strategic planning.

Chief Marketing/Sales Officer: Mr. Alex KrullMr. Krull is a senior at the University of Colorado at Boulder majoring in Political Science and minoring in Business Innovation. Mr. Krull has visited China on official business matters and is an excellent salesman/negotiator. He also marketed for the Glendale town mayor where he generated content and increased website views. With a creative mindset and outgoing personality, Mr. Krull is the perfect CMO/CSO, helping WindVolt become a renowned product.

Advisory Board/Board of Directors:As a small startup, we do not want to allocate sufficient funds for Board Members of either type. However, we will speak with various business professionals that hold us to a higher and more proficient standard such as Dr. Keith Stockton. With his expertise, our executive representatives will learn about the difficulties startup businesses face and how to overcome these obstacles.

Risks

MarketThe size of the EV market could be a concern if people do not continue to purchase electric vehicles. Inherently there are more gasoline powered cars on the road than EV, which is why we plan to penetrate both markets by Year Three. Another distress is that of the price $1,000. 59% of our survey respondents agree that this is a fair price, but that leaves almost half with a concern. To combat this we will heavily emphasize WindVolt’s effectiveness at increasing range by up to 20%. Focus on the short payback period gives the customer assurance that WindVolt is a good investment.

Competitor’s response, predatory pricingAs it stands currently, our only competition is the rooftop solar panel. We will combat this product by weighing heavily on its ineffectiveness and unnatural look when installed. Once our patent is secured, our intellectual property is protected and no one will be able to use our wind harnessing technology.

StrategyOur biggest agreement will be with AutoZone, Advanced Auto Parts, and O’Reilly Auto Parts. These retailers are the lifeline for on-the-shelf WindVolts. Our agreements give them ~20% per unit sold.

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OperationalBaosteel, China’s leading steel manufacturer will provide us with most of the parts needed for WindVolt. Each order with Baosteel will be carried out up to two months in advance in order to ensure that materials arrive on time. I have personally visited Baosteel and can attest to the level of quality. When combining the materials from Baosteel with that of our plastics and wiring manufacturers, it is crucial that we keep a very organized warehouse to avoid wrong components going in wrong products.

TechnologyWindVolt hinges on the success of our engineers. Our executives will ensure that our engineers have everything they need, as well as a healthy compensation package. We have allotted them six months to develop the perfect WindVolt in a warehouse that is equipped with the best technology. Once the ideal WindVolt is built, the technology will immediately be patented and the engineers will sign a secrecy document.

FinancialPurchasing overseas runs an inherent risk that the USD may become weaker as time goes on. In China though, the dollar has been strong for a number of years and shows no signs of slowing down. We will take full advantage of this and continue to purchase from Baosteel until the dollar becomes weak. Purchasing various items on credit begs the question of interest rates. We plan to obtain enough capital upfront that we will only need to use credit in dire situations. Interest rates are something we do not want to get involved with on a large scale.

Macro-economicThe economy must remain in a healthy state if WindVolt is to succeed. Initially we will sell to EV drivers. As an add-on, potential customers will not make a $1,000 investment unless they are economically stable. We don’t anticipate any governmental regulation to an add-on of a car, nor do we anticipate any governmental approval. If something does come up with the government though, our engineers are retained for the entire first year, allowing them to fix whatever the government has a problem with.

Financial Plan

Key DriversIntroducing a new, high-tech product to the automotive industry, our main goal is to sell WindVolt and bring in revenue in order to keep grow and expand our business. The main source of acquiring revenue will be sales through our online website where a customer can order a WindVolt and pick it up at one of three designated automotive parts retail stores; AutoZone, O’Reilly Auto Parts, and Advanced Auto Parts. Our second key driver is gross profit margin. Based on the cost to manufacture, margins, and potential customer surveys, a WindVolt will cost a customer $1,000. In Year One, the prototype year, costs of goods sold will be $650 per unit, followed $575 per unit in Year Two and $450 per unit in Year Three. We will hire a contract manufacturer for large scale production following Year One which will lower our cost of production and overall increase net income. Our third key driver is cash flow. Our initial operating cost totals to roughly $1.3 million, with $750,000

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of this in product inventory and $50,000 in working capital. We also expect to have $35,000 in legal and licensing fees. Year One is our prototype year and will only sell product in the last two quarters. After Year One, we expect roughly $500,000 in debt. After Year Two, we expect a net income of $184,000 and $2. 7million following Year Three. We will have negative cash flows of $281,000 following Year One; however, this will increase to $350,000 in Year Two and increase to $2.7million in Year Three.

Revenue Forecast/MarginsYear One: After 6 months of developing the most efficient prototype, advertising, and careful market research conducted through the first year, we project to sell 750 units at a price of $1,000 per unit. Year Two: Our first full year of sales, we project our sales to grow by 65%. By the end of the year, we project to sell 2,820 units, still at the price of $1,000 per unit.

Year Three: Our primary goal for this year is reducing variable cost by 23%, which reduces the cost per unit from $650 to $500. After three years of perfecting the design of WindVolt, we plan on creating a more efficient product for the consumer as well as a cheaper method of distribution from manufacturer to consumer. We will also be introducing a separate WindVolt product designed for gas powered vehicles. By the end of the year, we project to sell a total of 12,910 units; 4,935 electric and 7,950 gas. We plan to continue to sell each WindVolt at the original price of $1,000.

Cost of RevenueOur monthly fixed operating expenses will be $11,942 with a majority of these expenses spent towards conferences and seminars, along with rent for the storage warehouse. We will employ six executives who will receive equity towards WindVolt and as receive a $40,000 yearly salary with a 3% raise at the end of each year. $120,000 of our labor costs will go our two engineers; each will receive $60,000 per year and will receive stock options. These engineers will be in charge of perfecting the design of the product to ensure efficiency and durability.

ExpensesOur executives will earn a $40,000 salary the first year; however, this small figure reflects the state of our growing business and will increase yearly. In Year Three, the executive salaries will increase 100%, to $80,000. The two engineers we hire in Year One will be paid $60,000 each with stock options. In addition to first year salaries, research and development expenses include $12,000 for the 3D printing of the initial prototype of WindVolt contracted out to Moddler as well as $750,000 for initial inventory of WindVolt. In Year One, we plan to allocate $5,000 for advertising costs and $5,000 for marketing costs. Additionally, $12,000 is allocated for travel costs to trade shows, one of our primary ways to brand and sell WindVolt. We also have $20,000 to keep a lawyer on retainer for

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the entire year and an additional $15,000 for any licensing or permit issues we may encounter.

Financial ProjectionsWe project to have $50,000 in working capital beginning in Year One to be used for some smaller-item startup costs, including the down payment for rent, utilities, supplies, and advertising/promoting. We expect to spend a total of about $24,000 on these items, leaving us with about $26,000 in cash to have for unseen startup costs that we might incur. We don't have any accounts receivable because we expect that our partnered retailers will pay us in full for each inventory shipment, due their small size. Additionally, we will be prototyping at least half of year one, which also supports no accounts receivables.

Extraordinary ExpensesAs a small start-up, WindVolt hopes to have no extraordinary expenses or income. We will not have the financial ability to vary expenses from our day-to-day operations. Being based in Fremont with California as the main target market; we do not expect any infrequent or unusual events in nature to affect our projected sales.

Rent on office space: $20,000 per year with no depreciation Equipment (computer and software related): $15,000 with a 60% depreciation rate Office furniture and fixtures: $10,000 with 20% depreciation rate Other fixed assets: $1,000

Funding Requirements As we begin production halfway through Year One, six months of expenses will incur without any sales. In Year One, we will require $1,029,589 in cash outflow. Roughly $120,000 will go to the engineers, with another $240,000 going to executives. We also plan to have $750,000 worth of inventory on hand to be flexible with the demand. Our projected sales for year one put us at a cash inflow of $750,000, leaving us with $279,589 in negative cash flow and a line of credit of $248,944. Combining our startup funds, $1,289,996 as well as our six-month R&D phase, WindVolt will not see profit in Year One. WindVolt looks to Year Three to make a profit. We are confident in our technology and sales forecast, allowing us to be comfortable with a large amount of debt. Year One is largely a staging phase allowing us to prep WindVolt for Years Two and Three.

In the first quarter alone of Year Two we will draw on $570,000 worth of sales, more than 75% of total sales in Year One. From here we see an increase every quarter, topping out at $2,820,000 of cash inflow at the end of Year Two, with $2,465,791 of outflow, giving us a positive cash flow of $354,209. At the beginning of Year Three, we will have $373,564 cash on hand, and $2,047,500 in sales for the first quarter. Combined with month two, this is enough cash on hand to cover the quarterly dividends of $100,000 we will begin to pay out. We timed these dividends specifically to pay out in year three so we would not incur a large amount of debt when they go out. The second, third and fourth quarters of Year Three are very lucrative for WindVolt. Our cash inflows top out at $12,910,000, cash outflow at $10,214,244 and a positive cash flow of $2,695,756.

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All funding for WindVolt will be done up front, with $799,996 coming from our sources, and $470,000 coming from outside investors. An additional $20,000 is also needed to front a commercial loan and credit card debt. Due to this, we will not need any additional funding in Years Two or Three. In fact, we will be able to pay back our investors by the end of Year Three. Our steady increase in cash flow allows us to be flexible with the money we do have on hand.

Funding StrategiesOur primary mode of equity funding consists of our pooled savings and assets. In order to retain our majority ownership when we are seeking out additional funding from angel investors and venture capitalists, we will be required to amass a projected total of $470,000. Upon completion of this goal, we will have 62.02% equity stake in WindVolt. We will also seek out funding from friends and family members. Based on the size of each donation, we will determine their share of equity. Our secondary mode of equity funding comes from angel investors. Our ideal angel investor will expect a cash flow payback in return for a sizeable investment greater than $100,000. We are looking towards angel investors in the Bay Area that share our vision for WindVolt. One such angel investor comes to mind, due to his well-known success in Silicon Valley: Chris Sacca. Sacca typically gives out 40 investments per year ranging from $75,000 - $300,000. We would be ecstatic to receive an investment upwards of $100,000. Our tertiary mode of equity funding will be venture capital. Our target venture capital investment is $470,000 for 36.43% stake in WindVolt. In relation to the summed owners’ equity, we are willing to increase the equity for our venture capitalist, but we must stress that we will not concede majority ownership to an outside influence. We firmly believe in seeing WindVolt go where we have envisioned it. We will also engage in two modes of debt financing: opening a line of credit with a bank—which, on our Financial Plan includes both the commercial loan of $10,000 for 0.78% stake in WindVolt and the line of credit for $248,944—and credit card debt in the amount of $10,000 and 0.78% stake in WindVolt.

Non-traditional FinancingWith the initial launch of the prototype, we will offer our customers an opportunity to pre-order a WindVolt at a 5% drop in price. We will offer this because it will allow customers to support our business through the first six months after launch where we are making no products. This opportunity allows us to acquire capital without having to immediately spend it. We will execute this through a soft-launch at the beginning of the year. We will not offer stake in the business to customers for pre-orders, and we will not offer suppliers an opportunity to help finance the business.

After Year Two, we want to establish a partnership with Tesla to implement WindVolt into every Tesla vehicle. We will brand WindVolt to Tesla as an opportunity to further benefit the customer with peace-of-mind from an extended battery life and range of the vehicle under a single charge. We will want to sign a licensing agreement with Tesla in which

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every Tesla owner will have the opportunity to purchase a WindVolt as an after-market item in the vehicle that can be installed in new and used cars. This agreement will allow WindVolt to enter an already established market and access to an established sales and distribution network. WindVolt will most likely receive much less revenue because of Tesla’s cut in each product sold; however, it will allow a huge opportunity to reach many more potential customers.

FundingDuring our initial stages, our funding requirement will be $1,540,491 (1,820,000(Total startup funds) +279,509(First year loss)=1,540,491). We will be taking a small loan out for $10,000 at 7% interest, paying it off over 84 months at $150.93. In Year Three, we will introduce a WindVolt for gasoline-powered vehicles. With the addition of this second type of WindVolt we will be able to focus on a much larger percentage of the driving community (90%) and we will no longer need outside investments to help support our company.

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Appendix

WindVoltProjected Income Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

IncomeProduct/Service A: Electric car WindVolt - - - - - - 100,000 110,000 120,000 130,000 140,000 150,000 750,000 Product/Service B: - - - - - - - - - - - - -

- -

Total Income - - - - - - 100,000 110,000 120,000 130,000 140,000 150,000 750,000

Cost of SalesProduct/Service A: Electric car WindVolt - - - - - - 65,000 71,500 78,000 84,500 91,000 97,500 487,500 Product/Service B: - - - - - - - - - - - - -

- -

Total Cost of Sales - - - - - - 65,000 71,500 78,000 84,500 91,000 97,500 487,500

Gross Margin - - - - - - 35,000 38,500 42,000 45,500 49,000 52,500 262,500

Total Salary and Wages 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 416,990

Fixed Business ExpensesAdvertising 417 417 417 417 417 417 417 417 417 417 417 417 5,004 Car and Truck Expenses 121 121 121 121 121 121 121 121 121 121 121 121 1,452 Bank & Merchant Fees - - - - - - - - - - - - - Contract Labor 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Conferences & Seminars 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Customer Discounts and Refunds - - - - - - - - - - - - - Gasoline 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Miscellaneous 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Insurance (Liability and Property) - - - - - - - - - - - - - Licenses/Fees/Permits 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 Legal and Professional Fees 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004 Office Expenses & Supplies 334 334 334 334 334 334 334 334 334 334 334 334 4,008 Postage and Delivery 75 75 75 75 75 75 75 75 75 75 75 75 900 Rent (on business property) 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004 Rent of Vehicles and Equipment - - - - - - - - - - - - - Sales & Marketing 417 417 417 417 417 417 417 417 417 417 417 417 5,004 Taxes-Other - - - - - - - - - - - - - Telephone and Communications 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Travel 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Utilities 167 167 167 167 167 167 167 167 167 167 167 167 2,004

Total Fixed Business Expenses 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 117,780

Other ExpensesAmortized Start-up Expenses 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 12,333 147,999 Depreciation 987 987 987 987 987 987 987 987 987 987 987 987 11,840 Interest

Commercial Loan 58 58 57 57 56 56 55 54 54 53 53 52 664 Commercial Mortgage - - - - - - - - - - - - - Line of Credit - 38 343 650 959 1,270 1,584 1,584 1,629 1,656 1,660 1,660 13,032 Credit Card Debt 58 58 57 56 55 54 53 53 52 51 50 49 645 Vehicle Loans - - - - - - - - - - - - - Other Bank Debt - - - - - - - - - - - - -

Taxes - - - - - - - - - - - - - Total Other Expenses 13,437 13,473 13,777 14,083 14,390 14,700 15,012 15,010 15,054 15,080 15,082 15,081 174,179

Net Income (58,001) (58,037) (58,341) (58,647) (58,954) (59,264) (24,576) (21,075) (17,619) (14,144) (10,646) (7,145) (446,449)

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WindVoltProjected Income Statement - Year Two


IncomeProduct/Service A: Electric car WindVolt180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 2,820,000 Product/Service B: - - - - - - - - - - - - -

- -

Total Income 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 2,820,000

Cost of SalesProduct/Service A: Electric car WindVolt117,000 123,500 130,000 136,500 143,000 149,500 156,000 162,500 169,000 175,500 182,000 188,500 1,833,000 Product/Service B: - - - - - - - - - - - - -

- -

Total Cost of Sales 117,000 123,500 130,000 136,500 143,000 149,500 156,000 162,500 169,000 175,500 182,000 188,500 1,833,000

Gross Margin 63,000 66,500 70,000 73,500 77,000 80,500 84,000 87,500 91,000 94,500 98,000 101,500 987,000





Commercial Loan 52 51 50 50 49 49 48 48 47 46 46 45 581 Commercial Mortgage - - - - - - - - - - - - - Line of Credit 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 19,916 Credit Card Debt 48 47 46 46 45 44 43 42 41 40 39 38 520 Vehicle Loans - - - - - - - - - - - - - Other Bank Debt - - - - - - - - - - - - -

Taxes 3,111 3,811 4,511 5,211 5,911 6,612 7,312 8,012 8,712 9,412 10,112 10,812 83,540 Total Other Expenses 18,190 18,889 19,588 20,286 20,985 21,684 22,382 23,081 23,779 24,478 25,177 25,875 264,395

Net Income 63 2,864 5,665 8,467 11,268 14,069 16,871 19,672 22,474 25,275 28,076 30,878 185,642

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WindVoltProjected Income Statement - Year Three


IncomeProduct/Service A: Electric car WindVolt315,000 332,500 350,000 367,500 385,000 402,500 420,000 437,500 455,000 472,500 490,000 507,500 4,935,000 Product/Service B: 300,000 350,000 400,000 500,000 550,000 650,000 725,000 800,000 850,000 900,000 950,000 1,000,000 7,975,000

- -

Total Income 615,000 682,500 750,000 867,500 935,000 1,052,500 1,145,000 1,237,500 1,305,000 1,372,500 1,440,000 1,507,500 12,910,000

Cost of SalesProduct/Service A: Electric car WindVolt204,750 216,125 227,500 238,875 250,250 261,625 273,000 284,375 295,750 307,125 318,500 329,875 3,207,750 Product/Service B: 195,000 227,500 260,000 325,000 357,500 422,500 471,250 520,000 552,500 585,000 617,500 650,000 5,183,750

- -

Total Cost of Sales 399,750 443,625 487,500 563,875 607,750 684,125 744,250 804,375 848,250 892,125 936,000 979,875 8,391,500

Gross Margin 215,250 238,875 262,500 303,625 327,250 368,375 400,750 433,125 456,750 480,375 504,000 527,625 4,518,500





Commercial Loan 44 44 43 43 42 41 41 40 39 39 38 37 492 Commercial Mortgage - - - - - - - - - - - - - Line of Credit 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 19,916 Credit Card Debt 37 36 36 35 34 33 32 31 30 29 28 27 386 Vehicle Loans - - - - - - - - - - - - - Other Bank Debt - - - - - - - - - - - - -

Taxes 28,833 33,558 38,283 46,508 51,233 59,458 65,934 72,409 77,134 81,859 86,584 91,309 733,102 Total Other Expenses 43,894 48,618 53,341 61,565 66,288 74,512 80,985 87,459 92,182 96,906 101,629 106,353 913,734

Net Income 102,961 121,862 140,764 173,665 192,566 225,468 251,369 277,271 296,172 315,074 333,975 352,877 2,784,024

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WindVoltBalance Sheet - Year One

Base Period End of Year One

AssetsCurrent Assets

Cash 50,000 19,355 Accounts Receivable - - Inventory 750,000 750,000 Prepaid Expenses 418,996 279,331 Other Current 25,000 16,667

Total Current Assets 1,243,996 1,065,352

Fixed AssetsReal Estate-Land 0 0 Buildings 20,000 20,000 Leasehold Improvements 0 0 Equipment 15,000 15,000 Furniture and Fixtures 10,000 10,000 Vehicles 0 0 Other Fixed Assets 1,000 10,600

Total Fixed Assets 46,000 55,600

Less: Accumulated Depreciation - 11,840

Total Assets 1,289,996 1,109,111

Liabilities and Owner's EquityLiabilities

Accounts Payable - 19,500 Loan Payable 10,000 8,853 Mortgage Payable - - Credit Card Debt 10,000 8,269 Vehicle Loans - - Other Bank Debt - - Line of Credit Balance - 248,944

Total Liabilities 20,000 285,565

Owner's EquityCommon Stock 1,269,996 1,269,996 Retained Earnings - (446,449) Dividends Dispersed - -

Total Owner's Equity 1,269,996 823,547

Total Liabilities and Owner's Equity 1,289,996 1,109,111

Statement Balances Statement Balances

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WindVoltBalance Sheet - Year Two

End of Year One End of Year Two


Cash 19,355 370,348 Accounts Receivable - - Inventory 750,000 750,000 Prepaid Expenses 279,331 139,665 Other Current 16,667 8,333




Less: Accumulated Depreciation 11,840 23,680

Total Assets 1,109,111 1,309,866


Accounts Payable 19,500 37,700 Notes Payable 8,853 7,622 Mortgage Payable - - Credit Card Debt 8,269 6,413 Vehicle Loans - - Other Bank Debt - - Line of Credit Balance 248,944 248,944


Owner's EquityCommon Stock 1,269,996 1,269,996 Retained Earnings (446,449) (260,808) Dividends Dispersed - -

Total Owner's Equity 823,547 1,009,188


Statement Balances Statement Balances

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WindVoltBalance Sheet - Year Three

End of Year Two End of Year Three


Cash 370,348 3,059,576 Accounts Receivable - - Inventory 750,000 750,000 Prepaid Expenses 139,665 - Other Current 8,333 (0)




Less: Accumulated Depreciation 23,680 35,520

Total Assets 1,309,866 3,848,856


Accounts Payable 37,700 195,975 Notes Payable 7,622 6,303 Mortgage Payable - - Credit Card Debt 6,413 4,423 Vehicle Loans - - Other Bank Debt - - Line of Credit Balance 248,944 248,944


Owner's EquityCommon Stock 1,269,996 1,269,996 Retained Earnings (260,808) 2,523,216 Dividends Dispersed - 400,000

Total Owner's Equity 1,009,188 3,393,212


Statement Balances Statement Balances28

WindVoltProjected Cash Flow Statement - Year Two


Beginning Cash Balance 19,355 38,699 58,943 71,255 98,499 129,243 145,753 183,498 224,742 245,451 293,696 345,440

Cash InflowsIncome from Sales 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 2,820,000 Accounts Receivable - - - - - - - - - - - - -

Total Cash Inflows 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 2,820,000

Cash OutflowsInvesting Activities

New Fixed Assets Purchases 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Inventory Addition to Bal. Sheet - - - - - - - - - - - - - Cost of Sales 113,100 122,200 128,700 135,200 141,700 148,200 154,700 161,200 167,700 174,200 180,700 187,200 1,814,800

Operating ActivitiesSalaries and Wages 34,638 34,638 34,638 34,638 34,638 34,638 34,638 34,638 34,638 34,638 34,638 34,638 415,650 Fixed Business Expenses 10,109 10,109 10,109 10,109 10,109 10,109 10,109 10,109 10,109 10,109 10,109 10,109 121,313 Taxes - - 11,433 - - 17,734 - - 24,036 - - 30,337 83,540

Financing Activities - Loan Payments 349 349 349 349 349 349 349 349 349 349 349 349 4,187 Line of Credit Interest 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 19,916 Line of Credit Repayments - - - - - - - - - - - - - Dividends Paid - - - - - - - - - - - - -

Total Cash Outflows 160,656 169,756 187,689 182,756 189,256 213,490 202,256 208,756 239,291 221,756 228,256 265,092 2,469,006

Cash Flow 19,344 20,244 12,311 27,244 30,744 16,510 37,744 41,244 20,709 48,244 51,744 24,908 350,994

Operating Cash Balance 38,699 58,943 71,255 98,499 129,243 145,753 183,498 224,742 245,451 293,696 345,440 370,348

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 38,699 58,943 71,255 98,499 129,243 145,753 183,498 224,742 245,451 293,696 345,440 370,348

WindVoltProjected Cash Flow Statement - Year One


Beginning Cash Balance 50,000 10,000 10,000 10,000 10,000 10,000 10,000 10,703 10,000 10,000 10,000 12,927

Cash InflowsIncome from Sales - - - - - - 100,000 110,000 120,000 130,000 140,000 150,000 750,000 Accounts Receivable - - - - - - - - - - - - -

Total Cash Inflows - - - - - - 100,000 110,000 120,000 130,000 140,000 150,000 750,000


New Fixed Assets Purchases 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Inventory Addition to Bal.Sheet - - - - - - - - - - - - - Cost of Sales - - - - - - 52,000 70,200 76,700 83,200 89,700 96,200 468,000

Operating ActivitiesSalaries and Wages 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 34,749 416,990 Fixed Business Expenses 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 9,815 117,780 Taxes - - - - - - - - - - - - -

Financing Activities - Loan Payments 349 349 349 349 349 349 349 349 349 349 349 349 4,187 Line of Credit Interest - 38 343 650 959 1,270 1,584 1,584 1,629 1,656 1,660 1,660 13,032 Line of Credit Repayments - - - - - - - - - - - - - Dividends Paid - - - - - - - - - - - - -

Total Cash Outflows 45,713 45,751 46,056 46,363 46,672 46,983 99,297 117,497 124,042 130,569 137,073 143,573 1,029,589

Cash Flow (45,713) (45,751) (46,056) (46,363) (46,672) (46,983) 703 (7,497) (4,042) (569) 2,927 6,427 (279,589)

Operating Cash Balance 4,287 (35,751) (36,056) (36,363) (36,672) (36,983) 10,703 3,207 5,958 9,431 12,927 19,355

Line of Credit Drawdowns 5,713 45,751 46,056 46,363 46,672 46,983 - 6,793 4,042 569 - - 248,944

Ending Cash Balance 10,000 10,000 10,000 10,000 10,000 10,000 10,703 10,000 10,000 10,000 12,927 19,355

Line of Credit Balance 5,713 51,464 97,520 143,884 190,556 237,540 237,540 244,333 248,375 248,944 248,944 248,944

29

WindVoltBreakeven Analysis

Breakeven Analysis Dollars PercentAnnual Sales Revenue 750,000$ 100.00%Cost of Sales 487,500 65.00%Gross Margin 262,500 35.00%

Salaries and Wages 416,990 Fixed Operating Expenses 141,788 Total Fixed Business Expenses 558,778

Breakeven Sales Calculation 558,778 35.00%

Breakeven Sales in Dollars 1,596,507$

WindVoltProjected Cash Flow Statement - Year Three


Beginning Cash Balance 370,348 556,644 733,091 732,488 980,184 1,245,006 1,300,252 1,641,823 2,015,770 2,094,615 2,512,561 2,954,132

Cash InflowsIncome from Sales 615,000 682,500 750,000 867,500 935,000 1,052,500 1,145,000 1,237,500 1,305,000 1,372,500 1,440,000 1,507,500 12,910,000 Accounts Receivable - - - - - - - - - - - - -

Total Cash Inflows 615,000 682,500 750,000 867,500 935,000 1,052,500 1,145,000 1,237,500 1,305,000 1,372,500 1,440,000 1,507,500 12,910,000


New Fixed Assets Purchases 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Inventory Addition to Bal.Sheet - - - - - - - - - - - - - Cost of Sales 357,500 434,850 478,725 548,600 598,975 668,850 732,225 792,350 839,475 883,350 927,225 971,100 8,233,225

Operating ActivitiesSalaries and Wages 57,982 57,982 57,982 57,982 57,982 57,982 57,982 57,982 57,982 57,982 57,982 57,982 695,789 Fixed Business Expenses 10,413 10,413 10,413 10,413 10,413 10,413 10,413 10,413 10,413 10,413 10,413 10,413 124,953 Taxes - - 100,674 - - 157,200 - - 215,476 - - 259,752 733,102

Financing Activities - Loan Payments 349 349 349 349 349 349 349 349 349 349 349 349 4,187 Line of Credit Interest 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 1,660 19,916 Line of Credit Repayments - - - - - - - - - - - - - Dividends Paid - - 100,000 - - 100,000 - - 100,000 - - 100,000 400,000

Total Cash Outflows 428,704 506,054 750,603 619,804 670,179 997,254 803,429 863,554 1,226,155 954,554 998,429 1,402,056 10,220,772

Cash Flow 186,296 176,446 (603) 247,696 264,821 55,246 341,571 373,946 78,845 417,946 441,571 105,444 2,689,228

Operating Cash Balance 556,644 733,091 732,488 980,184 1,245,006 1,300,252 1,641,823 2,015,770 2,094,615 2,512,561 2,954,132 3,059,576

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 556,644 733,091 732,488 980,184 1,245,006 1,300,252 1,641,823 2,015,770 2,094,615 2,512,561 2,954,132 3,059,576

Line of Credit Balance 248,944 248,944 248,944 248,944 248,944 248,944 248,944 248,944 248,944 248,944 248,944 248,944

30

31

Outside Investors38%

CEO17%

CFO15%

COO15%

CMO15%

Ownership

CEO

Nate Berenson

CFO

Todd Christy

COO

Otto Schiffhauer

VP Sales & Marketing

Alex Krull

Professional Business Advisors

32

Not Important10%

Important49%

Very Important41%

How Important is the Range of Your EV?

26%

37%

13%

24%

Customer's Desired Return on Investment

6 Months 1 Year2 Years 3 or More Years

Customer Feedback Survey Results

33

Works Cited

"10 Cities Where People Buy the Most Electric Vehicles." The Cheat Sheet. N.p., 13 June 2015. Web. 01 Dec. 2015.

"A Carbon Conundrum - American Forests." American Forests. N.p., n.d. Web. 14 Nov. 2015.

"AfterOil EV - Annual Fuel Savings." AfterOil EV - Annual Fuel Savings. N.p., n.d. Web. 01 Dec. 2015.

"Benefits and Considerations of Electricity as a Vehicle Fuel." Alternative Fuels Data Center:. U.S. Department of Energy, n.d. Web. 25 Oct. 2015.

"Build & Price." 2016 Ford C-MAX Energi Plug-in/Hybrid Electric Car. N.p., n.d. Web. 25 Oct. 2015.

"Cars." Detailed List of Electric and Plug-in Hybrids. N.p., n.d. Web. 01 Nov. 2015.

"Driving to a Sustainable Future." TerraPass. N.p., 01 Oct. 2015. Web. 25 Oct. 2015.

"Electric Car Infographic With Ton Of Fun Stats." CleanTechnica. N.p., 03 Aug. 2015. Web. 12 Nov. 2015.

"Electric Car Market Statistics." Electric Vehicle Market Statistics 2015. N.p., n.d. Web. 17 Nov. 2015.

"Electric Vehicles - SF Electric Drive." Sfenvironment.org. San Francisco Department of the Environment, n.d. Web. 10 Oct. 2015.

"Plug-in Hybrid Electric Vehicles Learn More About the New Label." Learn More About the Fuel Economy Label for Plug-in Hybrid Electric Vehicles. N.p., n.d. Web. 29 Sept. 2015.

Schaal, Eric. "10 Electric Vehicles With the Best Range in 2015." The Cheat Sheet. N.p., 12 Nov. 2015. Web. 21 Nov. 2015.

"Streamlight SolarStream™." Series -. Sunlight Solar Stream, n.d. Web. 01 Dec. 2015. Zach. "15 Electric Cars Hitting The Market In 2015." EV Obsession. N.p., 30 Dec. 2014. Web.

01 Dec. 2015.

"Streetsblog USA." MIT Study: Vehicle Emissions Cause 58,000 Premature Deaths Yearly in U.S. N.p., n.d. Web. 11 Oct. 2015.

"U.S. Energy Information Administration - EIA - Independent Statistics and Analysis." California Leads the Nation in the Adoption of Electric Vehicles. N.p., n.d. Web. 10 Oct. 2015.

"Why Is Fremont the East Bay's Epicenter for Electric Cars?" - San Jose Mercury News. N.p., n.d. Web. 28 Nov. 2015.

34

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