VSports

VSports Ammar, William, Omar, Christina, Chuyi 29-Mar-21 Initial Investment on VR Application Initial Software Development $140,000 Camera & Maintanence Coverage $6,000 Streaming Licence $211 Website Setup $100 Total $146,311 Revenue Stream (Year 1) Months Total Servicable Obtainable Market % of population that will purchase Subscription service Estimated Number of New Users on App (With Churn Rate) Cumulative Number of users on App % of people who have already used/own VR technology Estimated Number of Headset Purchases Estimated Number Headset of Rentals Number of people that will be marketed Vsports Revenue from Premium Subscription Service @ $40/Month Revenue from Headset Purchases/Rentals Advertising Revenue $0.58 per Impression Total Revenue ($) Costs Months Software Development Wages Marketing Activities/Cost of $6.50 per 1000 Impression Cameraman & Maintenance Wages Financial Accountant Wages Sales Representatives Wages Management Wages Streaming Server Wages Total Costs

Totals Months Net Income Tax Expense Net Income After Tax Cumulative Cash Flow -$146,311 Company Data Rate Annual Churn Rate 50% Monthly Churn Rate 4.16% Tax Rate 14% Evaluation Fixed Costs $ 179,431.13 Cost per user $0.10 Advertising Cost Per User Impression $0.06 Sales Price Per Unit $40 Breakeven Analysis (# of users to breakeven) 4503 Cash Build Rate Cash Burn Rate

1 2 3 4 $ 82,980,629.87 $ 79,539,059.87 $ 76,097,759.87 $ 72,656,439.87 $ 11,617,288.18 $ 11,135,468.38 $ 10,653,686.38 $ 10,171,901.58 $ 71,363,341.69 $ 68,403,591.49 $ 65,444,073.49 $ 62,484,538.29 $ 71,020,305.86 $ 139,423,897.35 $ 204,867,970.84 $ 267,352,509.12

5 6 7 8 9 3,590,581 3,590,581 3,590,581 3,590,581 3,590,581 12% 12% 12% 12% 12% 359,173 341,249 323,325 305,401 287,477 1,975,105 2,316,354 2,639,679 2,945,080 3,232,557 20% 20% 20% 20% 20% 215,505 204,750 193,995 183,264 172,487 35,917 34,125 32,332 30,528 28,747 500,000 500,000 500,000 500,000 500,000 14,366,920 13,649,960 12,933,000 12,216,040 11,499,080 54,594,590 51,870,000 49,145,390 46,426,560 43,696,690 $290,000 $290,000 $290,000 $290,000 $290,000 $ 69,251,510.00 $ 65,809,960.00 $ 62,368,390.00 $ 58,932,600.00 $ 55,485,770.00 5 6 7 8 9 $10,769.23 $10,769.23 $10,769.23 $10,769.23 $10,769.23 $8,500 $8,500 $8,500 $8,500 $8,500 $3,750 $3,750 $3,750 $3,750 $3,750 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $4,166.66 $4,166.66 $4,166.66 $4,166.66 $4,166.66 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $17.58 $17.58 $17.58 $17.58 $17.58 $36,370.13 $36,370.13 $36,370.13 $36,370.13 $36,370.13

10 11 12 3,590,581 3,590,581 3,590,581 12% 12% 12% 269,553 251,629 233,705 3,502,110 3,753,739 3,987,444 20% 20% 20% 161,733 150,978 140,223 26,955 25,163 23,370 500,000 500,000 500,000 10,782,120 10,065,160 9,348,200 40,972,350 38,247,760 35,523,150 $290,000 $290,000 $290,000 $ 52,044,470.00 $ 48,602,920.00 $ 45,161,350.00 10 11 12 $10,769.23 $10,769.23 $10,769.23 $8,500 $8,500 $8,500 $3,750 $3,750 $3,750 $5,833.33 $5,833.33 $5,833.33 $4,166.66 $4,166.66 $4,166.66 $3,333.33 $3,333.33 $3,333.33 $17.58 $17.58 $17.58 $36,370.13 $36,370.13 $36,370.13

10 11 12 $ 52,008,099.87 $ 48,566,549.87 $ 45,124,979.87 $ 7,281,133.98 $ 6,799,316.98 $ 6,317,497.18 $ 44,726,965.89 $ 41,767,232.89 $ 38,807,482.69 $ 580,112,561.25 $ 621,879,794.14 $ 660,687,276.83

Fact 50 percent of hulu users unsubscribe from subscription per year There has been a 7.35% increase in purchasing VR technology for the past 4 years Cost of advertising can range from $3-$10 per 1000 impressions

Assumptions Made 30% of new users would most likely rent a headset for first time usage It will cost $6.50 to market per 1000 impression

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Sports Fan Population/ People who watch sports Year 1 Canadian Population 38,048,738 Canadian Population Growth Rate 1.40% % of Canadian sports fans 75% Canadian Sports Fans Population 28,536,553 American Population 330,173,799 American Population Growth Rate 0.50% % of American Sports fans 67% American Sports Fans Population 221,216,445 Total Servicable Market 249,752,998 Users for Vsports Year 1 Servicable Market of American Sports fans population 221,216,445 Servicable Market of Canadian Sports fans population 28,536,553 Fact: % of US consumers who have used VR 19% Fact: % of Canadian consumers who have used VR 3.70% Assumption: % of Americans who would purchase Vsports streaming service 19% Assumption: % of Canadians who would purchase Vsports streaming service 3.70% Total Servicable Market 249,752,998 Total Servicable Obtainable Market 43,086,977

Source https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000901 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000901 https://mediaincanada.com/2017/06/22/nearly-one-third-of-canadians-watch-sports-every-day-study/ Projection https://www.census.gov/newsroom/press-releases/2019/popest-nation.html https://www.census.gov/newsroom/press-releases/2019/popest-nation.html https://www.marketingcharts.com/industries/sports-industries-80768 Projection Source In Citations Page https://mediaincanada.com/2017/06/22/nearly-one-third-of-canadians-watch-sports-every-day-study/