OM Graphs (1)

TOTAL FINAL COGS 1 2 3 4 74 75 75 76 76 77 77 78 78 79 76 78 76 77 Total Days Inventory Year Days Year 1 Year 2 Year 3 Year 4 Year 5 $7.50 $8.00 $8.50 $9.00 $9.50 $10.00 $10.50 $11.00 Total COGS Year US Dollars

5 78

10-Year Treasury 4.35% -618752439370% Scrap Rate 0.01% -2723.56% MK OM FE Base Case NPV $1,458,087.34 Base Case NPV

Absolute Value Impact Probability Rationale 10.96% 10.96% High Low -1.60% 1.60% High Low 1.13% 1.13% High Low -0.29% 0.29% High High -0.05% 0.05% High High -0.03% 0.03% High High 10.96% 10.96% High High We are not very confident in o 10.96% 10.96% Low Low -6.06% 6.06% Low Low -3.54% 3.54% Low Low -0.69% 0.69% Low High 0.58% 0.58% Low High -0.51% 0.51% Low High 0.01% 0.01% Low High 0.00% 0.00% Low High Absolute Value Impact Probability 10.96% High Low 10.96% High High 10.96% High Low 6.06% High High 3.54% High Low 1.60% High Low 1.13% High Low 0.69% Low High 0.58% Low High 0.51% Low High 0.29% Low High 0.05% Low High 0.03% Low High Elasticities (% change due to 1% increase)

ns. We did our best, but reports are biased. For example, the research study that reported 70% of people have sensitive skin

purchase intent for the products Aveeno sells.

MK ASSUMPTIONS Segmentation Tree (In Millions) US adult individuals 18+ w/ Income > $60,000, with pierced ears 44,634,240 Individuals with Sensitive Skin 26,780,544 60% Organized Individuals 12,051,245 45% Growth Rate 1.50% Units at Trial 1 Units lost to competitors (competition adjustment) Year 1 0% Year 2 0% Year 3 20% Year 4 28% Year 5 32% ACV Year 1 14.00% Year 2 17.00% Year 3 22.00% Year 4 27.00% Year 5 33.00% Retailer Margin Units into independent retailers 50% Units online (Amazon) 40% Units into chain retailers 45% Units into Mass Merchants 40% 80/30 Adjustment % Probably Buy (adjusted at 30% and for selected price) 30.00% % Definitely Buy (adjusted at 80% and for selected price) 80.00% back to index

Sensitivity 100% 100% 100% 100%

MK Bases Model Total Segment Size Annual Sales (Units) Monthly Sales Year 1 12,051,245 94,823 7,902 Year 2 12,232,013 147,339 12,278 Year 3 12,415,494 210,013 17,501 Year 4 12,601,726 273,082 22,757 Year 5 12,790,752 366,838 30,570 back to index

Key Assumptions Total US Population in 2023 = 339,996,563 Go to MK Profile of the Retail

Five Year Sales Forecast Year 1 Target Market Size 12,051,245 Adjusted Purchase Intent @ Average Weighted Retail Price 32.89% ACV 14.00% Awareness 17.09% Trial units 94,823 Repeat Units 0 Bases Sales Units (Before Competition) 94,823 Competition adjustment (units lost to competition) 0 Total Units 94,823 Average weighted Manufacturers Selling Price $ 28.31 Manufacturer sales ($) $ 2,684,283 back to index

Year 2 Year 3 Year 4 12,232,013.47 12,415,493.67 12,601,726.08 32.25% 32.74% 34.04% 17.00% 22.00% 27.00% 21.54% 23.38% 24.40% 144,472 209,055 282,631 0 0 0 144,472 209,055 282,631 0 41,811 79,137 144,472 167,244 203,494 $ 28.43 $ 27.69 $ 26.60 $ 4,107,281 $ 4,630,320 $ 5,413,073

Year 5 Sensitivity 12,790,751.97 34.23% 100% 33.00% 25.39% 100% 366,838 0 366,838 117,388 249,450 $ 26.27 $ 6,553,137

Bases Model Forecast Year 1 Target Market: 12,051,245 Purchase Intent: Total Adjusted Purchase Intent 34.30% % ACV 14.00% % Awareness 19.63% # Trial Individuals 113,599 # of Trial Units Purchased 1 Bases Sales Units (Before competition) 113,599 Competition adjustment Total Units 113,599 Average weighted Manufacturers Selling Price $ 48.56 Manufacturer sales ($) $5,516,528

Year 2 Year 3 Year 4 Year 5 12,232,013 12,415,494 12,601,726 12,790,752 33.67% 33.47% 35.51% 35.73% 17.00% 22.00% 27.00% 33.00% 20.79% 21.68% 23.58% 25.69% 145,561 198,199 284,897 387,442 1 1 1 1 145,561 198,199 284,897 387,442 20.00% 30.00% 35.00% 145,561 158,559 199,428 251,838 $ 50.23 $ 48.95 $45.37 $ 44.72 $7,310,835 $7,760,684 $9,048,643 $11,262,710 Prof Variable cost #REF! #REF!

ESTIMATING REPEATS (BZK): Year 1 Year 2 Year 3 Year 4 # Trial Individuals 113,599 145,561 198,199 284,897 % Repeat Rate 43% 43.00% 43.00% 43.00% # Repeat Occasions per year 2 2 2 2 # Units at Repeat Occasion 1 1 1 1 TOTAL REPEAT UNITS (BZK) 97,695 125,182 170,451 245,012 Selling Price $8.00 $8.00 $8.00 $8.00 Profit $781,560.86 $1,001,458.41 $1,363,609.76 $1,960,093.15

Average Weighted Manu Weighted Year 1 % Manu. Total Units Units into independent Retailers 14.29% Units online (Amazon) 85.71% Units into chain retailer units into mass merchants Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 2 % Manu. Total Units Units into independent Retailers 29.41% Units online (Amazon) 70.59% Units into chain retailer Units into mass merchants Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 3 % Manu. Total Units Units into independent Retailers 17.77% Units online (Amazon) 54.55% Units into chain retailer 27.68% Units into mass merchants Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 4 % Manu. Total Units Units into independent Retailers 5.70% Units online (Amazon) 44.44% Units into chain retailer 12.44% Units into mass merchants 37.41% Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 5 % Manu. Total Units Units into independent Retailers 5.15% Units online (Amazon) 36.36% Units into chain retailer 11.24% Units into mass merchants 47.24% Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price back to index

ufacturer's Selling Price to Channel Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 28.31 $ 48.56 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 28.43 $ 50.23 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 27.69 $ 48.95 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 24.59 40.00% $ 40.99 $ 26.60 $ 45.37 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 24.59 40.00% $ 40.99 $ 26.27 $ 44.72

PURCHASE INTENT AND PRICE Our Retail Selling Price starts at $57.99 for year 1 and gradually decreases over t Price Cumulative PI $40.00 33.40% $52.00 30.00% $64.00 20.40% $76.00 16.40% $88.00 3.80% Purchase Intent Years 1-5 Year 1: Price $ 48.56 PI based on the demand curve 31.50% Cumulative Purchase Intent including CSR lif 32.89% Year 2: Price $ 50.23 PI based on the demand curve 30.86% Cumulative Purchase Intent including CSR lif 32.25% Year 3: Price $ 48.95 PI based on the demand curve 31.35% Cumulative Purchase Intent including CSR lif 32.74% Year 4: Price $ 45.37 PI based on the demand curve 32.65% Cumulative Purchase Intent including CSR lif 34.04% Year 5: Price $ 44.72 PI based on the demand curve 32.84% Cumulative Purchase Intent including CSR lif 34.23% Pivot Table Analysis: Year 1 Count of Expected Retail Price Column Labels Row Labels Definitely Not Buy $34-45.99 $46-57.99 2 $58-$69.99 $70-$81.99 1 $82-93.99 Grand Total 3 Price 57.99 Raw back to index

Probably Buy 21 Definitely Buy 13 The above Purchase Intent is merely for illustrative purposes and is based on a ra CSR Initiative LIf: CSR 1: Biodegradable Pinatex Leather Count of Likelihood of Purchase Intent Column Labels Row Labels Definitely Not Buy Significantly More Likely 2 Slightly More Likely 1 Would Not Change Grand Total 3 # of DB + PB responses Significantly More Likely 11 Slightly More Likely 18 Would Not Change 5 CSR 2: Donation to IMPACT Melanoma, the nation's leading skin cancer foundati Count of Likelihood of Purchase Intent Column Labels Row Labels Definitely Not Buy Significantly More Likely 2 Slightly More Likely Would Not Change 1 Grand Total 3 # of DB + PB responses Significantly More Likely 18 Slightly More Likely 11 Would Not Change 5 Total CSR Lif 1.39% Note:

" Purchase Intent vs. Expected Price Row Labels Definitely Not Buy $34-45.99 $46-57.99 2 $58-$69.99 $70-$81.99 1 $82-93.99 Grand Total 3 ^ column is price points we asked about in survey Price Adjusted PB $40.00 6.00% $52.00 16.00% $64.00 8.00% $76.00 10.00% $88.00 2.00% Afer conducting the Questionnaire Workshop, we determined that the revenue m those individuals who fitted our segmentation variables - individuals who were " eczema, dermatitis or other skin conditions?" Hence, although 127 surveyed out living with sensitive skin as well. Hence, we calculated purchase intent based off o psychographic varialbles, including answering "yes" to the "I am a Germaphobe... organized and having sensitive skin that increased purchase intent the most. Hen variables "organized" and having "sensitive skin." We decided to round up $57.55 profit from each sale to IMPACT Melanoma - due to the fact that Pinatex biodegra 1.39%.

the five years (see tab Average Weighted Manufacturer's Price to Sample Population Revenue Maximizing Price $57.55 Probably Not Buy Not Sure 3 2 2 1 4 1 5 8 80/30 Adj. PI $30 $40 $50 $6 0% 5% 10% 15% 20% 25% 30% 35% 40% f(x) = − 6.34920634 + 0.35448888888 Purchase Intent

6.3 12.60% 10.4 20.80% ange rather than the Demand Curve function; therefore it is slightly Probably Not Buy Not Sure 2 3 4 2 2 5 8 % of total DB+ PB responses CSR increase 32% 2.50% 53% 1.50% 15% 0 tion Probably Not Buy Not Sure 1 1 5 4 2 5 8 % of total DB+ PB responses CSR increase 53% 2.50% 32% 1.50% 15% 0

Probably Not Buy Not Sure 3 2 2 1 4 1 5 8 Adjusted DB PB * .3 2.00% 1.80% 6.00% 4.80% 2.00% 2.40% 12.00% 3.00% 4.00% 0.60%

Channel) 127 12,051,244 Cumulative PI Total Max Revenue 27.66% $191,859,849 Probably Buy Definitely Buy Grand Total 3 1 9 8 3 16 4 1 9 5 6 13 1 2 3 21 13 50 Cumulative PI 60 $70 $80 $90 $100 4920636E-05 x² + 0.002060317460317 x 88888 Price

33.40% different from the actual purchase intent calculated by the demand curve. Probably Buy Definitely Buy Grand Total 5 6 15 12 6 26 4 1 9 21 13 50 Total CSR Lif 0.81% 0.79% 0.00% 1.08% Probably Buy Definitely Buy Grand Total 8 10 22 8 3 16 5 12 21 13 50 Total CSR Lif 1.32% 0.49% 0.00% 1.39%

Probably Buy Definitely Buy Grand Total 3 1 9 8 3 16 4 1 9 5 6 13 1 2 3 21 13 50 Sample 50 Population 12,051,244 DB * .8 Sum Across Cumulative PI 1.60% 3.40% 33.40% 4.80% 9.60% 30.00% 1.60% 4.00% 20.40% 9.60% 12.60% 16.40% 3.20% 3.80% 3.80%

Pasted Data Probably Buy Definetely Buy 3 1 8 3 4 1 5 6 1 2 Total 21 13 # surveys within our target segment that maximize purchase intent, see note target market Quantity Revenue 4,001,320 $160,052,800 3,594,000 $186,888,000 2,443,920 $156,410,880 1,964,720 $149,318,720 455,240 $40,061,120

Year 0 IMC Schedule January Pull Paid Media: Online Advertising Meta Guerilla Events: Sponge on Walls GemBox Bench Outdoor: New York, NY Atlanta, GA Los Angeles CA Chicago, IL San Francisco, CA Miami, FL Houston, TX Boston, MA Phoenix, AZ Philadelphia, PE Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show Winter Las Vegas Gem & Jewelry Show One-time trade show setup cost Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE Year 1 IMC Schedule January Pull back to index

Paid Media: Online Advertising Meta Guerilla Events: Sponge on Walls GemBox Bench Outdoor: Tampa, FL (Transit Ads) 33602 Downtown Atlanta, GA (Billboards) 30303 Downtown Los Angeles CA (Billboards) 90015 LA Fashion District Chicago, IL (Street Furniture) 60601 Shopping District San Francisco, CA (Street Furniture) 94104 Downtown Miami, FL (Digital Billboards) 33460 West Palm Beach Houston, TX (Wildposting) 77002 Downtown Boston, MA (Billboards) 02199 Back Bay Phoenix, AZ (Transit Ads) 85003 Downtown Philadelphia, PA (Transit/Wildposting) 19106 Downtown Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show Winter Las Vegas Gem & Jewelry Show Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE Year 2 IMC Schedule January Pull Paid Media: Online Advertising Meta Guerilla Events:

Sponge on Walls GemBox Bench Outdoor: New York, NY (Billboards, Street Furniture, Wildposting, Transit) 10018 Garment District Atlanta, GA (Billboards) 30303 Downtown Los Angeles CA (Billboards) 90015 LA Fashion District Chicago, IL (Street Furniture) 60601 Shopping District San Francisco, CA (Street Furniture, Wallscape) 94104 Downtown Miami, FL (Digital Billboards) 33460 West Palm Beach Houston, TX (Wildposting) 77002 Downtown Boston, MA (Billboards) 02199 Back Bay Phoenix, AZ (Transit Ads) 85003 Downtown Philadelphia, PA (Transit, Wildposting, ) 19106 Downtown Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show - Fall Las Vegas Gem & Jewelry Show Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE Year 3 IMC Schedule January Pull Paid Media: Online Advertising Meta Guerilla Events: Sponge on Walls GemBox Bench Outdoor: New York, NY (Billboards, Street Furniture, Wildposting, Transit) 10018 Garment District

Atlanta, GA (Billboards) 30303 Downtown Los Angeles CA (Billboards) 90015 LA Fashion District Chicago, IL (Street Furniture)/ 60601 Shopping District San Francisco, CA (Street Furniture) 94104 Downtown Fort Lauderdale, FL (AVG Outdoor) 33301 Downtown Dallas, TX (Billboards) 75201 Downtown Boston, MA (Billboards) 02199 Back Bay Las Vegas, NV (Digital Billboards) 89108 Philadelphia, PA (Transit/Wildposting) 19106 Downtown Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show - Fall Las Vegas Gem & Jewelry Show Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE Year 4 IMC Schedule January Pull Paid Media: Online Advertising Meta Guerilla Events: Sponge on Walls GemBox Bench Outdoor: Portland, OR (Digital Billboards) 97204 Downtown Atlanta, GA (Billboards) 30303 Downtown Los Angeles CA (Billboards) 90015 LA Fashion District Chicago, IL (Street Furniture)/(Digital Billboards) 60601 Shopping District San Francisco, CA (Street Furniture) 94104 Downtown

Charolette. NC (Digital Billboards) 28202 Downtown Houston, TX (Wildposting) 77002 Downtown Boston, MA (Billboards) 02199 Back Bay Phoenix, AZ (Transit Ads) 85003 Downtown Seattle, WA (Billboards) 98125 Downtown Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show - Fall Las Vegas Gem & Jewelry Show Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE Year 5 IMC Schedule January Pull Paid Media: Online Advertising Meta Guerilla Events: Sponge on Walls GemBox Bench Outdoor: New York, NY (Billboards, Street Furniture, Wildposting, Transit) 10018 Garment District Atlanta, GA (Billboards) 30303 Downtown Los Angeles CA (Billboards) 90015 LA Fashion District Chicago, IL (Street Furniture) 60601 Shopping District San Francisco, CA (Street Furniture) 94104 Downtown Miami, FL (Digital Billboards) 33460 West Palm Beach Houston, TX (Wildposting) 77002 Downtown Boston, MA (Billboards) 02199 Back Bay Phoenix, AZ (Transit Ads) 85003 Downtown

Philadelphia, PA (Transit/Wildposting) 19106 Downtown Influencer Marketing: Nano (JuliaWardPiercing, Didszabo, Tretuakovaaa, l_sophie_r, Jessicamsciciliano) Micro (TheJewelryLoupe, Lcpiercing, Aymiecahill, Neeneedive) Mid-Tier (Dimaondsinthelibrary, Jordanrisa) Macro (RendaGrella) Owned Media: Website Social Media Earned Media: WOM PR Carryover TOTAL PULL Push Trade Shows: Tucson Gem & Jewelry Show - Fall Las Vegas Gem & Jewelry Show Trade Magazine Rapaport Magazine TOTAL PUSH TOTAL IMC SCHEDULE

February March April May June July August September February March April May June July August September

February March April May June July August September

February March April May June July August September

February March April May June July August September

February March April May June July August September

October November December TOTAL COST Awareness $19,300 0.00% $4,050 0.00% $8,250 0.00% $7,000 0.00% 0.00% $22,000 $41,300 0.00% $41,300 0.00% October November December TOTAL COST Awareness

$293,430 16.09% $22,500 4.11% $22,500 4.11% $105,000 6.30% $54,000 3.24% $51,000 3.06% $155,930 4.68% $5,600 0.17% $14,160 0.42% $20,000 0.60% $5,280 0.16% $7,360 0.22% $38,400 1.15% $30,400 0.91% $8,000 0.24% $20,160 0.60% $6,570 0.20% $10,000 1.00% $2,500 -- $7,500 -- $10,000 0.00% $10,000 0.00% -- -- $5,000 1.00% -- -- 5,000$ 1.00% -- -- $308,430 17.09% $12,300 0.00% $4,050 0.00% $8,250 0.00% $22,000 0.00% $34,300 0.00% $342,730 17.09% October November December TOTAL COST Awareness $385,235 18.87% $30,000 3.66% $30,000 3.66% $105,000 6.30%

$54,000 3.24% $51,000 3.06% $230,235 6.91% $49,700 1.49% $14,160 0.42% $20,000 0.60% $19,955 0.60% $16,250 0.49% $39,840 1.20% $30,400 0.91% $8,000 0.24% $20,160 0.60% $11,770 0.35% $20,000 2.00% $2,500 -- $17,500 -- $1,500 0.00% 1500.0 0% -- -- $5,000 2.68% -- 0.68% $5,000 1% -- 1% $391,735 21.54% $12,300 0.00% $4,050 0.00% $8,250 0.00% $22,000 0.00% $34,300 0.00% $426,035 21.54% October November December TOTAL COST Awareness $386,746 19.84% $37,500 4.11% $37,500 4.11% $105,000 6.30% $54,000 3.24% $51,000 3.06% $214,246 6.43% $49,700 1.49%

$14,160 0.42% $20,000 0.60% $8,616 0.26% $7,360 0.22% $48,000 1.44% $31,840 0.96% $8,000 0.24% $20,000 0.60% $6,570 0.20% $30,000 3.00% $2,500 -- $17,500 -- $10,000 -- $1,500 0.00% $1,500 0% -- -- $5,000 3.54% -- 0.54% $5,000 1% -- 2% $393,246 23.38% $12,300 0.00% $4,050 0.00% $8,250 0.00% $14,000 0.00% $26,300 0.00% $419,546 23.38% October November December TOTAL COST Awareness $389,336 20.93% $45,000 4.65% $45,000 4.65% $105,000 6.30% $54,000 3.24% $51,000 3.06% $199,336 5.98% $45,040 1.35% $14,160 0.42% $20,000 0.60% $8,616 0.26% $7,360 0.22%

$29,600 0.89% $30,400 0.91% $12,000 0.36% $20,160 0.60% $12,000 0.36% $40,000 4.00% $2,500 -- $2,500 -- $10,000 -- $25,000 -- $1,500 0.00% $1,500 0% -- -- $5,000 3.47% -- 0.47% $5,000 1% -- 2% $395,836 24.40% $12,300 0.00% $4,050 0.00% $8,250 0.00% $14,000 0.00% $26,300 0.00% $422,136 24.40% October November December TOTAL COST Awareness $400,030 21.95% $45,000 4.65% $45,000 4.65% $105,000 6.30% $54,000 3.24% $51,000 3.06% $200,030 6.00% $49,700 1.49% $14,160 0.42% $20,000 0.60% $5,280 0.16% $7,360 0.22% $38,400 1.15% $30,400 0.91% $8,000 0.24% $20,160 0.60%

$6,570 0.20% $50,000 5.00% $2,500 -- $2,500 -- $20,000 -- $25,000 -- $1,500 0.00% $1,500 0% -- -- $5,000 3.44% -- 0.44% $5,000 1% -- 2% $406,530 25.39% $12,300 0.00% $4,050 0.00% $8,250 0.00% $14,000 0.00% $26,300 0.00% $432,830 25.39%

MK Profile of Retail Environment Channels ACV Total Online 12.00% Amazon 12.00% Independent 5.00% 5.00% Home Furnishing Chain Stores 33.00% Bed Bath & Beyond 11.00% Williams Sonoma 6.00% RH 3.00% Other Chains 13.00% Mass Merchants 50.00% Target 32.00% Walmart 12.00% Costco 6.00% Total 100.00% Analysis of Adjustment: Research-Based Breakdown of Retailer Sales by Category Groups: Online 12.00% Independent 5.00% Mass Merchants 50.00% Home Furnishing and Accessories Stores 33.00% back to index When analyzing the Profile of Retail Environment, it was evident that the greater ACV's are those in mass merchants and chain stores (home furnishing and accessories stores). Therefore, we chose mass merchants and chain stores as our primary in-person channels to sell the jewelry box, as depicted in the final ACV percentages by retailer type shown under the table "ACV". To obtain approximate ACV estimates via market research, we divided the revenues of the leading 5+ retailers sales within each retailer category by the sum of the revenues of all 5+ leading retailers for all category groups, with the exception of the 12% online ACV assumption.

ACV Year 1 Year 2 Year 3 Online 12.00% 12.00% 12.00% Independent 2.00% 5.00% 3.91% Home Furnishing 0.00% 0.00% 6.09% Mass Merchants 0.00% 0.00% 0.00% Total 14.00% 17.00% 22.00% Online ; 12.00% Independent ; 5.00% Mass Merchants ; 50.00% Home Furnishing and Accessories Stores; 33.00% Home Furnishing and Accessories Industry, 68.18B Sales in 2021 Online Independent Mass Merchants Home Furnishing and Accessories Stores

Year 4 Year 5 12.00% 12.00% 1.54% 1.70% 3.36% 3.71% 10.10% 15.59% 27.00% 33.00%

MK Guerilla Marketing Tactics Assumptions Provided by MK Faculty Cities 10 Locations Per City 3 Awareness 0.06% GermGuard Bench Target Segment 12,051,245 Awareness 0.06% City Budget $ 30,000 Average Price per Bench $ 700 Cities 10 Locations Per City 3 Individual Event Budget $ 21,000 Total Budget $ 51,000 Guerilla Marketing Awareness 3.06% /

GermGuard Sponges Target Segment 12,051,245 Awareness 0.06% City Budget $ 30,000 Average Price per sponge $ 800.00 Cities 10 Locations Per City 3 Individual Event Budget $ 24,000 Total Budget $ 54,000 Guerilla Marketing Awareness 3.24%

Initial Startup Costs INITIAL INVESTMENT IN FIXED ASSETS Long Term Balance Sheet Items (Can be depreciated - includes IS equip & Factory/office buildout costs) INITIAL INVESTMENT IN NET WORKING CAPITAL Cash (Additional Cash required in addition to Start Up costs) Raw Materials & Work in Process, Start-Up Period Only (Put Years 1-5 in table Below) Finished Goods Start-up Period Only (Put Years 1-5 in table Below) INITIAL OPERATING EXPENSES (INCOME STATEMENT, TAX DEDUCTIBLE) Product Development (Prototype, engineer, etc.) Pre-Marketing Expenses (Marketing expenses before Year 1) See Sales Projection Tutorial All Other (Miscellaneous non depreciated expenses, additional salaries, Rent etc.) Subtotal Start Up Operating Expenses Operating Inform UNITS SOLD Units into independent retailers Units online Units into chain retailer Units into mass merchants Total Units Sold MANUFACTURER SELLING PRICE To independent retailers For online sales To chain retailer To mass merchants Average WEIGHTED manufacturer's selling price to channel COST OF GOODS SOLD Total Variable Costs Including Freight ($) Fixed Production Costs ($) (Total MOH per year) Total Cost of Goods Sold SELLING & GENERAL ADMINISTRATIVE EXPENSES back to index Variable Cost Per Unit ($/Unit) (Total Direct Cost = Direct Labor + Direct Materials ) Total Outbound Freight ($) (The gross amount, Not Per Unit)

Production costs not included in Cost of Good sold (if any, you may not have any) Fixed Administrative Costs Marketing Expenses (Push and Pull) Excluding Manufacturers Reps ($) Manufacturer's Sales Reps Commission Expense (10% - excludes Online Units) IS EXPENSES Total SG&A Expenses Balance Sheet In Assumptions Accounts Receivable (Days AR Outstanding) - Online Sales Channel Accounts Receivable (Days AR Outstanding) - All other Sales Channels Accounts Payable (Days Payable Outstanding) - US Sourced Vendors Accounts Payable (Days Payable Outstanding) - Non-US Sourced Vendors Raw Materials & Work in Process (Time 0 is above in Start Up Section) Finished Goods (Time 0 is above in Start Up Section) Total Inventories Additional Investment in Fixed Assets, more capacity or replacement OTHER A Discount Rate Commission Paid to Manufacturers Reps Tax Rate Cash as a Percentage Sales Beta of Comparable Companies URBN WSM FOSL Discount Rate 10 year treasury rate Average Beta Historical Market Risk Premium Size Premium Discount Rate Note: We chose a midpoint between the size premium for the 10y and 10z decile companies in the Morningstar note, which have an for market cap. Because our NPV is approximately 1 million, we calculated 8.9+(11.6-8.9)/95 * 1 to get our size premium.

nly) $256,729 $39,875 $17,362 $14,611 $15,000 $41,300 $28,187 $84,487 13,546 42,492 29,724 11,607 12,850 81,277 101,980 91,224 90,442 90,709 - - 46,296 25,324 28,044 - - - 76,122 117,846 94,823 144,472 167,244 203,494 249,450 $29.00 $29.00 $29.00 $29.00 $29.00 $28.19 $28.19 $28.19 $28.19 $28.19 $0.00 $0.00 $25.84 $25.84 $25.84 $0.00 $0.00 $0.00 $24.59 $24.59 $28.31 $28.43 $27.69 $26.60 $26.27 $7.08 $7.11 $7.41 $7.32 $7.19 $84,075 $128,097 $148,288 $180,429 $221,175 $755,704 $1,154,643 $1,387,300 $1,669,289 $2,015,852 $169,121 $178,022 $243,862 $251,699 $264,049 $924,824 $1,332,665 $1,631,161 $1,920,988 $2,279,901

- - - - - $825,500 $1,370,265 $1,788,373 $2,050,024 $2,456,025 $342,730 $426,035 $419,546 $422,136 $432,830 $38,347 $120,802 $210,469 $300,726 $417,018 $114,714 $158,131 $177,544 $208,572 $237,497 $1,321,291 $2,075,234 $2,595,932 $2,981,459 $3,543,370 5) 5 45 30 0 $104,174 $158,160 $182,895 $222,245 $272,099 $87,664 $126,313 $154,605 $182,075 $216,093 $191,838 $284,473 $337,500 $404,320 $488,192 $0 $6,031 $40,987 $0 $6,031 10% See MK Instructions 27% Given Assumption (21% Federal, 6% State), no further research required 5% Given Assumption, up to a max of $300K, no further research required 1.51 1.53 2.18 4.23% 1.74 6.70% 11.57% 27.46% n a 96 and less than 1 million market cap. We used our NPV as a proxy

Sensitivity

100% 100%

Income Statement (In US Dollars) Start-up TOTAL REVENUES $ - Variable Costs Fixed Production Costs (allocated Manufacturing overhead) TOTAL COST OF GOODS SOLD GROSS PROFIT $ - One-time Start Up Expenses $ 84,487 Administrative Overhead (salaries) General operating expenses not already part of COGS IS Expenses Marketing Expenses Excluding Mfg Reps Commission Manufacturer's Sales Reps Commission Expense (10%) Depreciation on original PP&E Depreciation on new PP&E (purchased afer start-up) Earnings Before Tax $ (84,487) Taxes $ - NET INCOME $ (84,487) Statement of Retained Earnings Net Income $ (84,487) minus cash returned to investors (dividends) $ - Increase (Decrease) in Retained Earnings $ (84,487) Income Statement Financial Ratios COGS % Sales Gross Margin % Sales SG&A % Sales Marketing Expenses % Sales Net Income % Sales back to index

Year 1 Year 2 Year 3 Year 4 $ 2,684,283 $ 4,107,281 $ 4,630,320 $ 5,413,073 $ 755,704 $ 1,154,643 $ 1,387,300 $ 1,669,289 $ 169,121 $ 178,022 $ 243,862 $ 251,699 $ 924,824 $ 1,332,665 $ 1,631,161 $ 1,920,988 $ 1,759,459 $ 2,774,616 $ 2,999,159 $ 3,492,085 $ 825,500 $ 1,370,265 $ 1,788,373 $ 2,050,024 - - - - $ 114,714 $ 158,131 $ 177,544 $ 208,572 $ 342,730 $ 426,035 $ 419,546 $ 422,136 $ 38,347 $ 120,802 $ 210,469 $ 300,726 $ 26,713 $ 46,012 $ 59,158 $ 68,807 $ 411,454 $ 653,370 $ 344,069 $ 441,819 $ 111,093 $ 176,410 $ 92,899 $ 119,291 $ 300,362 $ 476,960 $ 251,170 $ 322,528 $ 300,362 $ 476,960 $ 251,170 $ 322,528 $ - $ (191,262) $ (122,870) $ (183,808) $ 300,362 $ 285,698 $ 128,301 $ 138,720 34.45% 32.45% 35.23% 35.49% 65.55% 67.55% 64.77% 64.51% 12.77% 10.37% 9.06% 7.80% 11.19% 11.61% 5.42% 5.96%

Year 5 $ 6,553,137 $ 2,015,852 $ 264,049 $ 2,279,901 $ 4,273,236 $ 2,456,025 - $ 237,497 $ 432,830 $ 417,018 $ 78,457 $ 651,409 $ - $ 651,409 $ 651,409 $ (425,422) $ 225,988 34.79% 65.21% 6.60% 9.94%

Balance Sheet (In US Dollars) Current Assets Cash reserves Accounts Receivable Raw Materials and WIP Finished Goods Inventory Current Assets Fixed Assets Gross Fixed Assets Accumulated Depreciation (cumulative) Net Fixed Assets TOTAL ASSETS Current Liabilities Accounts Payable Current Liabilities Equity Paid in Capital (cumulative) Retained Earnings (cumulative) Total Equity TOTAL LIABILTIES AND EQUITY Check Total Assets - Total Liabilities & Equity Net Working Capital Balance (Current Assets - Current Liabilities) Balance Sheet Financial Ratios Accounts Receivable Days DSO Total Inventory Days DOH (include RM, FPI & WIP categories) Accounts Payable Days DPO Cash Conversion Cycle Operating Cycle back to index

Time 0 Year 1 Year 2 $ 39,875 $ 134,214 $ 205,364 $ 330,939 $ 506,377 $ 17,362 $ 104,174 $ 158,160 $ 14,611 $ 87,664 $ 126,313 $ 71,848 $ 656,992 $ 996,214 $ 256,729 $ 263,399 $ 278,250 $ 26,713 $ 72,726 $ 256,729 $ 236,686 $ 205,524 $ 328,577 $ 893,677 $ 1,201,738 $42,709 $65,072 $42,709 $65,072 $ 413,064 $ 635,093 $ 635,093 $ (84,487) $ 215,875 $ 501,573 $ 328,577 $ 850,968 $ 1,136,666 $ 328,577 $ 893,677 $ 1,201,738 $ - $ - $ - $ 71,848 $ 614,282 $ 931,142 - 45.00 45.00 - 75.71 77.91 - 16.86 17.82 103.86 105.09 120.71 122.91

Year 3 Year 4 Year 5 $ 231,516 $ 270,654 $ 327,657 $ 570,861 $ 667,365 $ 828,346 $ 182,895 $ 222,245 $ 272,099 $ 154,605 $ 182,075 $ 216,093 $ 1,139,877 $ 1,342,339 $ 1,644,195 $ 332,302 $ 353,695 $ 376,982 $ 131,883 $ 200,690 $ 279,147 $ 200,419 $ 153,005 $ 97,835 $ 1,340,296 $ 1,495,343 $ 1,742,030 $75,329 $91,656 $112,355 $75,329 $91,656 $112,355 $ 635,093 $ 635,093 $ 635,093 $ 629,874 $ 768,594 $ 994,582 $ 1,264,967 $ 1,403,687 $ 1,629,675 $ 1,340,296 $ 1,495,343 $ 1,742,030 $ - $ - $ - $ 1,064,548 $ 1,250,683 $ 1,531,840 45.00 45.00 46.14 75.52 76.82 78.16 16.86 17.42 17.99 103.67 104.41 106.31 120.52 121.82 124.29

Statement of Cash Flow (In US Dollars) Start-up Initial Investment in Fixed Assets $ (256,729) Net Income $ (84,487) + Depreciation +/- Change in Net Working Capital $ (71,848) - Change in Fixed Assets Net Free Cash Flow $ (413,064) Terminal Value of Business Total Cash Flow $ (413,064) Net Present Value: Including TV $929,524 Internal Rate of Return: Including TV 30% Discount Rate 27.46% Perpetuity Decline Rate -20.00% Payback Period Note: back to index

Our Perpetuity Decline rate is calculated as 100/7. Although the average life cycle of typical home products based on our research is around 6 years, we believe our product will experience a longer life cycle of 10 years for the following reasons. First, because our product is the first to introduce UV technology to a jewelry organizer, we can obtain a U.S. utility patent, which is generally granted for 20 years from the date the patent application is filed. This patent will drive demand for our product as opposed to other substitutes. Our BZK sponge earring board innovation has never yet been created or patented by another firm or product. Secondly, we believe consumers will continue to be interested in this innovation well beyond the average 6 years because it is highly unlikely that a better skin-and- jewelry care solution will emerge within the next 10 years since Benzalkonium Chloride has been in common use as a pharmaceutical preservative and antimicrobial since the 1940s. People will always experience sensitive skin, and there will always be demand for BZK as a solution to bacteria-induced skin irritation. Thirdly, we hired a Chief Quality Manager and Head of Product in years 4 and 5 to ensure we continue updating our product features to appeal to consumers past the 5- year peak maturity date. We also plan to hire an ex- Mckinsey consultant as our CMO or someone with a background in marketing: they will know that as we reach maturity and as distribution becomes more intensive, GermGuard may need to focus their promotion on the difference between existing products and lower pricing due to increased competition. These people-management decisions will drive our product's success forward past the 5 year peak maturity point. https://www.fhio.org/articles/furniture-life-expectancy-how-long-should-it-last https://www.netsuite.com/portal/resource/articles/business-strategy/product-lif https://www.nibusinessinfo.co.uk/content/growth-and-maturity-stage-product-li

Year 1 Year 2 Year 3 Year 4 Year 5 $ 300,362 $ 476,960 $ 251,170 $ 322,528 $ 651,409 $26,713 $46,012 $59,158 $68,807 $78,457 $ (542,434) $ (316,860) $ (133,406) $ (186,134) $ (281,158) ($6,670) ($14,851) ($54,052) ($21,393) ($23,287) $ (222,029) $ 191,262 $ 122,870 $ 183,808 $ 425,422 $ 896,463 $ (222,029) $ 191,262 $ 122,870 $ 183,808 $ 1,321,885

fe-cycle.shtml ife-cycle

Major Equipment Depreciation Equipment Year 0 Production Line CapEx Automated Glue Dispenser $0 Soldering Machine $0 BZK Mixer Machine $0 Packaging Machine $0 Conveyer Belt Table $0 Chairs $0 Ventilators $0 Warehouse CapEx Pallet Racks $0 Inventory Trolleys $0 Weight Scales $0 Office CapEX Electronic Security System $0 Pod of Desks and Chairs $0 6 Pod of Desks and Chairs $0 Executive Suite Desks and Chairs $0 Factory Build-Out Costs $0 IS Assets ERP Upfront Cost $0 ERP Cost per employee $0 ERP Maintenence Fee $0 Laptops $0 Desktop $0 Printers $0 Photocopier $0 Annual Depreciation $0 Accumulated Depreciation (cumulative) $0 Gross Fixed Assets Equipment Year 0 Production Line CapEx Automated Glue Dispenser $2,280 Soldering Machine $6,031 BZK Mixer Machine $6,978 Packaging Machine $1,399 Conveyer Belt Table $3,841 Chairs $420 Ventilators $592 Warehouse CapEx $0 Pallet Racks $395 Inventory Trolleys $2,850 back to index

Weight Scales $4,950 Office CapEX $0 Electronic Security System $241 Pod of Desks and Chairs $26,217 6 Pod of Desks and Chairs $0 Executive Suite Desks and Chairs $562 Factory Build-Out Costs $173,440 IS Assets ERP Upfront Cost $20,000 ERP Cost per employee $0 ERP Maintenence Fee $0 Laptops $3,000 Desktop $1,533 Printers $500 Photocopier $1,500 Gross Fixed Assets $256,729 Accumulated Gross Fixed Assets $256,729

Year 1 Year 2 Year 3 Year 4 Year 5 $456 $456 $456 $456 $456 $4,825 $24,124 $33,774 $43,423 $53,073 $1,396 $1,396 $1,396 $1,396 $1,396 $280 $280 $280 $280 $280 $768 $768 $768 $768 $768 $84 $84 $84 $84 $84 $118 $118 $118 $118 $118 $33 $33 $33 $33 $33 $570 $570 $570 $570 $570 $990 $990 $990 $990 $990 $48 $48 $48 $48 $48 $2,622 $2,622 $2,622 $2,622 $2,622 $0 $0 $3,496 $3,496 $3,496 $70 $70 $70 $70 $70 $14,453 $14,453 $14,453 $14,453 $14,453 $4,000 $4,000 $4,000 $4,000 $4,000 $1,080 $2,760 $5,040 $7,680 $10,800 $54 $138 $252 $384 $540 $1,000 $1,000 $1,000 $2,000 $2,000 $511 $511 $511 $365 $1,095 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $26,713 $46,012 $59,158 $68,807 $78,457 $26,713 $72,726 $131,883 $200,690 $279,147 Year 1 Year 2 Year 3 Year 4 Year 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,031 $6,031 $0 $6,031 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $34,956 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,400 $8,400 $11,400 $13,200 $15,600 $270 $420 $570 $660 $780 $0 $0 $0 $6,000 $0 $0 $0 $1,095 $1,533 $876 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,670 $14,851 $54,052 $21,393 $23,287 $263,399 $278,250 $332,302 $353,695 $376,982

Average Weighted Manu Weighted Year 1 % Manu. Total Units Units into independent Retailers 14.29% Units online (Amazon) 85.71% Units into chain retailer - units into mass merchants - Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 2 % Manu. Total Units Units into independent Retailers 29.41% Units online (Amazon) 70.59% Units into chain retailer units into mass merchants Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 3 % Manu. Total Units Units into independent Retailers 17.77% Units online (Amazon) 54.55% Units into chain retailer 27.68% units into mass merchants Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 4 % Manu. Total Units Units into independent Retailers 5.70% Units online (Amazon) 44.44% Units into chain retailer 12.44% units into mass merchants 37.41% Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price Year 5 % Manu. Total Units Units into independent Retailers 5.15% Units online (Amazon) 36.36% Units into chain retailer 11.24% units into mass merchants 47.24% Average Weighted Manufacturer's Selling Price to Channel Average Weighted Retailer Price back to index

ufacturer's Selling Price to Channel Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 - - - - - - $ 28.31 $ 48.56 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 28.43 $ 50.23 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 27.69 $ 48.95 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 24.59 40.00% $ 40.99 $ 26.60 $ 45.37 Manu. Selling Price Retailer Margin Retail Selling Price $ 29.00 50.00% $ 57.99 $ 28.19 40.00% $ 46.99 $ 25.84 45.00% $ 46.99 $ 24.59 40.00% $ 40.99 $ 26.27 $ 44.72

Units Revenue AR Total 94,823 13,546 $ 392,769 $ 48,424 81,277 $ 2,291,513 $ 282,515 $ 330,939 Units Revenue AR 144,472 Total 42,492 $ 1,232,049 $ 151,896 101,980 $ 2,875,232 $ 354,481 $ 506,377 Units Revenue AR 167,244 Total 29,724 $ 861,843 $ 106,255 91,224 $ 2,571,973 $ 317,093 46,296 $ 1,196,503 $ 147,514 $ 570,861 Units Revenue AR 203,494 Total 11,607 $ 336,536 $ 41,491 90,442 $ 2,549,917 $ 314,373 25,324 $ 654,479 $ 80,689 76,122 $ 1,872,141 $ 230,812 $ 667,365 Units Revenue AR 249,450 Total 12,850 $ 372,598 $ 47,098 90,709 $ 2,557,447 $ 323,273 28,044 $ 724,788 $ 91,616 117,846 $ 2,898,304 $ 366,359 $ 828,346

Accounts Payable Calculation Year 1 UNITS SOLD 94,823 Total cost for US-Sourced Direct Materials $519,629 Sponge $0.11 Total $5.48 Accounts Payable $42,709 back to index

Year 2 Year 3 Year 4 144,472 167,244 203,494 $791,707 $916,498 $1,115,148 $0.11 $0.11 $0.11 $5.48 $5.48 $5.48 $65,072 $75,329 $91,656

Year 5 249,450 $1,366,983 $0.11 $5.48 $112,355

Comparable Companies Name Germ Guard Gembox Ticker GEGG Stock exchange S&P Stock price closing on Dec 1, 2023 N/A The most recent fiscal year - The most recent fiscal year ending month - Industry code (SIC) and name - Industry name - Income Statement Financial Ratios COGS % Sales 34.79% Gross Margin % Sales 65.21% SG&A % Sales 20.16% Marketing Expenses % Sales 6.60% Net Income % Sales 9.94% Balance Sheet Financial Ratios Accounts Receivable Days 46.14 Total Inventory Days 78.16 Accounts Payable Days 17.99 Cash conversion cycle 106.31 ROE 0.40 CAPM Beta (5Y Monthy) 1.74 # of shares outstanding (diluted) - Market Capitalization - Total (interest bearing) debt - D/E ratio - back to index

Urban Outfitters Williams Sonoma Fossil URBN WSM FOSL Nasdaq NYSE Nasdaq $ 36.79 $ 178.85 $ 1.15 2023 2023 2022 January January December 5311 57220000 5944 Department Stores Household Appliance Stores Jewelry Stores 70.10% 57.60% 50.63% 29.80% 42.40% 49.37% 25.10% 25.12% 48.96% - - - 3.30% 13.00% -2.62% 6.42 4.87 44.72 63.79 106.37 161.14 27.97 37.13 81.91 42.24 74.11 123.95 0.09 0.66 -0.11 1.51 1.53 2.18 94,144,062 69,100,000 51,841,000 $3,463,560,041 $12,358,535,000 $59,617,150 $890,374,000 $1,636,451,000 $425,920,000 1.05 1.74 2.07

Column1 Year 1 Year 2 Year 3 Contribution Margin $ 1,928,579 $ 2,952,637 $ 3,243,020 Contribution Margin% 71.85% 71.89% 70.04% Total FC $ 1,517,125 $ 2,299,267 $ 2,898,951 Contribution Margin/unit $ 20.34 $ 20.44 $ 19.39 Break Even Point (Desired NI #units) $ 1,517,125 $ 2,299,267 $ 2,898,951 Break Even Sales $ 2,111,602 $ 3,198,407 $ 4,139,065 Break Even (Units) 74,593 112,503 149,500 Units Sold 94,823 144,472 167,244 Total Cost $ 2,272,828 $ 3,453,911 $ 4,286,251 Revenue $ 2,684,283 $ 4,107,281 $ 4,630,320 back to index

Year 4 Year 5 $ 3,743,784 $ 4,537,285 69.16% 69.24% $ 3,301,964 $ 3,885,876 $ 18.40 $ 18.19 $ 3,301,964 $ 3,885,876 $ 4,774,254 $ 5,612,316 179,479 213,637 203,494 249,450 $ 4,971,253 $ 5,901,728 $ 5,413,073 $ 6,553,137

GENERAL ASSUMPTIONS STARTUP INVENTORY ASSUMPTIONS Service Level Raw materials and finished goods produced early by Factory Build-Out Cost per Sq Ft CAPACITY ANALYSIS ASSUMPTIONS Automated Glue Machine Automated Packager Automated Mixer Machine Total Number of DL assemblers Factory Cycle Time in Minutes Factory Capacity in Units Capacity Utilization Capacity Analysis Assumptions Station Number Station 1 Station 2 Station 3 Station 4 Factory Cycle Time BOX ASSEMBLING STEPS Steps 1 2 3 4 5 6 7 8 SG&A ASSUMPTIONS Administrative Salaries Executive Department CEO CMO back to index

CFO COO (Certified Six Sigma Champion) Finance Department Financial Accountant Purchaser Tax Accountant Marketing and Sales Department Head of Sales Head of Product Customer Service Representative Operations Department Distribution Manager Chief Quality Manager (Certified Six Sigma Black Belt) Production Manager (Certified Six Sigma Green Belt) Human Resources and Talent Acquisition HR Manager 360-Degree Feedback Coach Benefits 30% Total Salaries Salaries Growth Rate MOH Line Supervisor Salary Janitor Hourly Salary (Outsourced Part-Time) Hours of Factory and Office Cleanup Per Day # of Working Days in a Year # of Working Weeks # of Working Days in a Week # of Working Hours in a Week Factory and Warehouse Size Increase % Size of Factory and Warehouse Size in Sq Ft Annual Rent Increase % Annual Rent per Sq Ft of Factory Space, Springfield, MO Annual Rent Expense Factory Insurance PRODUCT DEMAND Worst case forecast (units) Most likely forecast (units) Cost per gallon of water General Overhead Electricity Usage in KWH Per Sq. Ft. Gallons of water per square foot Cost per KWH of Electricity

Best case forecast (units) Mean demand per year (units) Standard deviation of demand per year (units) Mean demand per week (units) Standard deviation of demand per week (units) Scrap rate Box Box Manufacture BZK Sponge BZK Solution 0.13% 120 ml per box Sponge Glue UV Lights Copper Wiring 5g per box 260-280nm UV Lights USB-C Port Timer Battery Packaging White Paper Box Shredded Crinkle Cut Paper Filling BILL OF MATERIALS Parts Box BZK Sponge UV Lights Packaging RAW MATERIAL Box Manufacture BZK Solution 0.13% 120 ml per box Sponge Glue Copper Wiring 5g per box 260-280nm UV Lights USB-C Port Timer Battery White Paper Box Shredded Crinkle Cut Paper Filling

Total OM DIRECT LABOR Number of Line Workers Line Worker Wages # of Working Days in a Year # of Working Weeks # of Working Days in a Week # of Working Hours in a Week LOGISTICS ASSUMPTIONS Outbound cost TOTAL NUMBER OF EMPLOYEES Number of: Managers/Executives Other Personnel

95.34% 2 months of business $20 Given assumption in guidelines - $20 for Year 1 Year 2 1 1 1 1 1 1 4 6 1 0.8 120000 150000 79.02% 96.31% Year 1 (process time in mins) Year 2 (process time in mins) 0.45 0.45 1 0.75 1 0.8 0.7 0.7 1 0.8 Order of box construction Estimated Time (min) Quality Check Base Box 0.25 Add Sponge 0.1 Soak Sponge 0.1 Solder UV Lights 1 Connect Timer 0.5 Connect Charging Cable 0.5 Quality Check 0.3 Package 0.4 Year 1 Year 2 $200,000 $206,000 $200,000 $206,000 We selected this service level based on o ensuring customer demand is met and s

$200,000 $200,000 $75,000 $77,250 $65,000 $66,950 $95,000 $97,850 $190,500 $316,215 $825,500 $1,370,265 3.00% 3.00% Year 1 Year 2 $80,000 $82,400 $14.50 $14.94 2.00 3.00 250.00 250.00 50.00 50.00 5.00 5.00 8.00 8.00 $0.004 $0.004 6.60 6.60 14.60 14.60 $0.08 $0.08 0.00% 0.00% 8,672 8,672 5.00% 5.00% $3.95 $4.15 $34,254 $35,967 $12,000 $12,000 Year 1 Year 2 47,411 72,236 94,823 144,472

189,645 288,944 102,725 156,511 23,706 36,118 2,054 3,130 3,352 5,108 Year 1 Mean per week Stdev per week 0.01% 2,054 3,352 2,054 3,352 2,054 3,352 2,054 3,352 2,054 3,352 16,436 26,820 2,054 3,352 2,054 3,352 2,054 3,352 2,054 3,352 2,054 3,352 Name of the supplier Material Required per unit Ji'an Huihua Bags And Cases Co., Ltd. 1 ATC Medical, United States 1 Shanghai Shu Rui International Co 1 Zhejiang Good Adhesive Co., Ltd. 1 Shaanxi Hanye Iron And Steel Co., Ltd. 1 TaoYaun Optoelectronics Shenzhen Co. Ltd. 8 Shenzhen Shouhan Technology Co., Ltd. Technology Co., Ltd. 1 Chun'an Qiandaohu Perfect Electronic Technology Co., Ltd. 1 Huizhou Winpow Electronic Co., Ltd. 1 Fuzhou Sencai Paper Products Co., Ltd. 1 Qingdao Progress Industrial Co., Ltd. 1

Year 1 Year 2 4 6 14 14 250 250 50 50 5 5 8 8 10% Year 1 Year 2 2 4 7 10

r total factory spaces larger than 10,000 Year 3 Year 4 Year 5 1 1 2 1 1 1 1 1 1 8 9 10 0.6 0.5 0.4 200000 240000 300000 83.62% 84.79% 83.15% Year 3 (process time in mins) Year 4 (process time in mins) Year 5 (process time in mins) 0.45 0.45 0.23 0.5 0.5 0.35 0.6 0.4 0.4 0.35 0.35 0.1 0.6 0.5 0.4 Year 3 Year 4 Year 5 $212,180 $218,545 $225,102 $212,180 $218,545 $225,102 our business's optimal service level shown below that to minimizes total cost including stockout costs while stockouts are avoided.

$206,000 $212,180 $218,545 $206,000 $212,180 $218,545 $79,568 $81,955 $84,413 $90,000 $92,700 $95,481 $60,000 $61,800 $100,000 $103,000 $106,090 $100,000 $103,000 $68,959 $71,027 $73,158 $100,000 $103,000 $106,090 $90,000 $100,786 $103,809 $106,923 $100,000 $75,000 $412,701 $473,082 $566,775 $1,788,373 $2,050,024 $2,456,025 3.00% 3.00% 3.00% Year 3 Year 4 Year 5 $84,872 $87,418 $90,041 $15.38 $15.84 $16.32 4.00 4.00 5.00 250.00 250.00 250.00 50.00 50.00 50.00 5.00 5.00 5.00 8.00 8.00 8.00 $0.004 $0.004 $0.004 6.60 6.60 6.60 14.60 14.60 14.60 $0.08 $0.08 $0.08 115.31% 0.00% 0.00% 18,672 18,672 18,672 5.00% 5.00% 5.00% $4.35 $4.57 $4.80 $81,314 $85,380 $89,649 $12,000 $12,000 $12,000 Year 3 Year 4 Year 5 83,622 101,747 124,725 167,244 203,494 249,450

334,488 406,988 498,899 181,181 220,452 270,237 41,811 50,874 62,362 3,624 4,409 5,405 5,913 7,195 8,819 Year 2 Year 3 Mean per week Stdev per week Mean per week 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 25,042 40,863 28,989 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 3,130 5,108 3,624 $/unit $2.99 $0.30 $0.11 $0.01 $0.01 $0.80 $0.06 $0.80 $0.32 $0.05 $0.03

$5.48 Year 3 Year 4 Year 5 8 9 10 14 14 14 250 250 250 50 50 50 5 5 5 8 8 8 Year 3 Year 4 Year 5 4 4 4 15 18 22

Sensitvity Cycle Time 1 0.8 Takt Time 1.27 0.83 Back to Index

100%

3 Year 4 Year Stdev per week Mean per week Stdev per week Mean per week 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 47,304 35,272 57,557 43,238 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405 5,913 4,409 7,195 5,405

0.6 0.5 0.4 0.72 0.59 0.48

r 5 Stdev per week 8,819 8,819 8,819 8,819 8,819 70,555 8,819 8,819 8,819 8,819 8,819

MANUFACTURING OVERHEAD Year 1 RENT EXPENSE Annual Sales 94,823 No. of working days in a year 250 Annual Rent Expense $34,254.40 Annual Rent Expense per unit of output $0.36 INDIRECT LABOR Annual Janitor Wages $7,250.00 Annual Cleaners Wages per unit of output $0.08 Line Supervisor Salary $80,000.00 Line Supervisor Salary per unit of output $0.84 Benefits $24,000.00 Benefits per unit of output $0.25 OVERHEAD COSTS Utilities Expenses per unit of output $11,616.14 Utilities Expenses per unit of output $0.12 Factory Insurance $12,000.00 Factory Insurance per unit of ouput $0.13 Total MOH $169,120.54 Total MOH per unit $1.78 Cost Driver Quantity Automated Glue Dispenser (0.8 kWh) 1 Soldering Machine (0.85 kWh) 1 BZK Mixer Machine (0.35 kWh) 1 Packaging Machine (0.24 kWh) 1 Conveyer Belt Table (0.746 kWh) 1 Ventilator (0.245 kWh) 2 General Misc. Electicity (per square foot) 8672.00 Water Usage (per square foot) 126611.20 Total Cost Cost Driver Quantity Automated Glue Dispenser (0.8 kWh) 1 Soldering Machine (0.85 kWh) 2 back to index

BZK Mixer Machine (0.35 kWh) 1 Packaging Machine (0.24 kWh) 1 Conveyer Belt Table (0.746 kWh) 1 Ventilator (0.245 kWh) 2 General Misc. Electicity (per square foot) 8672.00 Water Usage (in gallons) 126611.2 Total Cost Cost Driver Quantity Automated Glue Dispenser (0.8 kWh) 1 Soldering Machine (0.85 kWh) 3 BZK Mixer Machine (0.35 kWh) 1 Packaging Machine (0.24 kWh) 1 Conveyer Belt Table (0.746 kWh) 1 Ventilator (0.245 kWh) 2 General Misc. Electicity (per square foot) 18672 Water Usage (in gallons) 272611.2 Total Cost Cost Driver Quantity Automated Glue Dispenser (0.8 kWh) 1 Soldering Machine (0.85 kWh) 3 BZK Mixer Machine (0.35 kWh) 1 Packaging Machine (0.24 kWh) 1 Conveyer Belt Table (0.746 kWh) 1 Ventilator (0.245 kWh) 2 General Misc. Electicity (per square foot) 18672 Water Usage (in gallons) 272611.2 Total Cost Cost Driver Quantity Automated Glue Dispenser (0.8 kWh) 1 Soldering Machine (0.85 kWh) 4 BZK Mixer Machine (0.35 kWh) 1 Packaging Machine (0.24 kWh) 1 Conveyer Belt Table (0.746 kWh) 1 Ventilator (0.245 kWh) 2 General Misc. Electicity (per square foot) 18672 Water Usage (in gallons) 272611.2 Total Cost

Year 2 Year 3 144,472 167,244 250 250 $35,967.12 $81,314.23 $0.25 $0.49 $11,201.25 $15,383.05 $0.08 $0.09 $82,400.00 $84,872.00 $0.57 $0.51 $24,720.00 $25,461.60 $0.17 $0.15 $11,733.18 $24,830.66 $0.08 $0.15 $12,000.00 $12,000.00 $0.08 $0.07 $178,021.55 $243,861.54 $1.23 $1.46 Year 1 KWH or Gallons Usage Per Unit Cost per unit of consumption 0.8 $0.06 0.85 $0.07 0.35 $0.03 0.24 $0.02 0.75 $0.06 0.25 $0.02 6.60 $0.08 14.60 $0.004 Year 2 KWH or Gallons Usage Per Unit Cost per unit of consumption 0.8 $0.06 0.85 $0.07

0.35 $0.03 0.24 $0.02 0.75 $0.06 0.25 $0.02 6.60 $0.08 14.60 $0.004 Year 3 KWH or Gallons Usage Per Unit Cost per unit of consumption 0.8 $0.06 0.85 $0.07 0.35 $0.03 0.24 $0.02 0.75 $0.06 0.25 $0.02 6.60 $0.08 14.60 $0.004 Year 4 KWH or Gallons Usage Per Unit Cost per unit of consumption 0.8 $0.06 0.85 $0.07 0.35 $0.03 0.24 $0.02 0.75 $0.06 0.25 $0.02 6.60 $0.08 14.60 $0.00 Year 5 KWH or Gallons Usage Per Unit Energy Usage Per Unit 0.8 0.06 0.85 0.07 0.35 0.03 0.24 0.02 0.75 0.06 0.25 0.02 6.60 0.08 14.60 0.004

Year 4 Year 5 Sensitivity 203,494 249,450 250 250 $85,379.94 $89,648.93 100% $0.42 $0.36 $15,844.54 $20,399.85 $0.08 $0.08 $87,418.16 $90,040.70 $0.43 $0.36 $26,225.45 $27,012.21 $0.13 $0.11 $24,830.66 $24,947.71 $0.12 $0.10 $12,000.00 $12,000.00 $0.06 $0.05 $251,698.75 $264,049.40 100% $1.24 $1.06 Total Cost $103.68 $117.05 $19.85 $9.33 $90.16 $19.45 $4,636.05 $6,620.58 $11,616.14 Total Cost $103.68 $234.09

$19.85 $9.33 $90.16 $19.45 $4,636.05 $6,620.58 $11,733.18 Total Cost $103.68 $351.14 $19.85 $9.33 $90.16 $19.45 $9,982.05 $14,255.01 $24,830.66 Cost per unit of consumption $103.68 $351.14 $19.85 $9.33 $90.16 $19.45 $9,982.05 $14,255.01 $24,830.66 Energy Usage Per Unit $103.68 $468.18 $19.85 $9.33 $90.16 $19.45 9982.0512 14255.0145856684 $24,947.71

CAPACITY UTILIZATION Year 1 Year 2 Year 3 Year 4 Total Number of Machines 3 3 3 3 Automated BZK Mixer Machine 1 1 1 1 Automated Glue Machine 1 1 1 1 Packaging Machine 1 1 1 1 Total Number of DL assemblers 4 6 8 9 Factory Cycle Time 1 0.8 0.6 0.5 Factory Capacity 120,000 150,000 200,000 240,000 Total Capacity Utilization 79.02% 96.31% 83.62% 84.79% CYCLE TIME Year 1 Year 2 Year 3 Year 4 Station 1 0.45 0.45 0.45 0.45 Station 2 1 0.75 0.5 0.5 Station 3 1 0.8 0.6 0.4 Station 4 0.7 0.7 0.35 0.35 Total Factory Cycle Time 1 0.8 0.6 0.5 Takt Time 1.27 0.83 0.72 0.59 STATION CAPACITY UTILIZATION 1 2 3 4 Station 1 45% 56% 75% 90% Station 2 100% 94% 83% 100% Station 3 100% 100% 100% 80% Station 4 70% 88% 58% 70% Average Capacity Utilzation 79% 84% 79% 85% EFFICIENCY 1 2 3 4 Station 1 36% 54% 63% 76% Station 2 79% 90% 70% 85% Station 3 79% 96% 84% 68% Station 4 55% 84% 49% 59% Total Efficiency 62% 81% 66% 72% Back to Index

1 2 3 4 0% 20% 40% 60% 80% 100% 120% Station 1 Station 2 Station 3 Station 4 Total Efficiency Year Efficiency

PROCESS TASKS TIMES Year 5 Station Step Order of GemGuard construction 4 1 1 Quality Check Base Box 1 2 Add Sponge 2 3 Soak Sponge 1 2 4 Solder UV Lights 10 3 5 Connect Timer 0.4 6 Connect Charging Cable 300,000 4 7 Quality Check 83.15% 8 Package Factory Total Year 5 Year 2 0.23 Station Step Order of box construction 0.35 1 1 Quality Check Base Box 0.4 2 Add Sponge 0.1 3 Soak Sponge 0.4 2 4 Solder UV Lights 0.48 3 5 Connect Timer 6 Connect Charging Cable 4 7 Quality Check 5 8 Package 58% Factory Total 88% 100% Year 3 25% Station # Step Order of box construction 68% 1 1 Quality Check Base Box 2 Add Sponge 3 Soak Sponge 5 2 4 Solder UV Lights 48% 3 5 Connect Timer 73% 6 Connect Charging Cable 83% 4 7 Quality Check 21% 8 Package 56% Factory Total Year 4 Station # Step Order of box construction 1 1 Quality Check Base Box 2 Add Sponge 3 Soak Sponge 2 4 Solder UV Lights 3 5 Connect Timer

3 6 Connect Charging Cable 4 7 Quality Check 8 Package Factory Total Year 5 Station # Step Order of box construction 1 1 Quality Check Base Box 2 Add Sponge 3 Soak Sponge 2 4 Solder UV Lights 3 5 Connect Timer 6 Connect Charging Cable 4 7 Quality Check 8 Package Factory Total 60% 80% 100% 120% Capacity Utilzation 1 2 3 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1 0.8 0.6 1.27 0.83 0.72 Cycle Time Takt Year Minutes 5

1 2 0% 20% 40% Station 1 Station 2 Station 4 Average Cap

Estimated Time (min) Grouped Cycle Time Workers Machine Name Machines Needed 0.25 0.45 1 0.1 Glue Machine 1 0.1 BZK Machine 1 1 1 1 Solder Machine 0.5 1 1 0.5 0.3 0.7 1 0.4 Packager 1 3.15 1 4 3 Estimated Time (min) Grouped Cycle Time Workers Machine Name Machines Needed 0.25 0.45 1 0.1 Glue Machine 1 0.1 BZK Machine 1 1 0.75 2 Solder Machine 0.5 0.8 2 0.5 0.3 0.7 1 0.4 Packager 1 3.15 0.8 6 3 Estimated Time (min) Grouped Cycle Time Workers Machine Name Machines Needed 0.25 0.45 1 0.1 Glue Machine 1 0.1 BZK Machine 1 1 0.5 3 Solder Machine 0.5 0.6 3 0.5 0.3 0.35 1 0.4 Packager 1 3.15 0.6 8 3 Estimated Time (min) Grouped Cycle Time Workers Machine Name Machines Needed 0.25 0.45 1 0.1 Glue Machine 1 0.1 BZK Machine 1 1 0.5 3 Solder Machine 0.5 0.4 4

0.5 0.4 4 0.3 0.35 1 0.4 Packager 1 3.15 0.5 9 3 Estimated Time (min) Grouped Cycle Time Workers Machine Name Machines Needed 0.25 0.23 1 0.1 Glue Machine 2 0.1 BZK Machine 1 1 0.35 4 Solder Machine 0.5 0.4 4 0.5 0.3 0.1 1 0.4 Packager 1 3.15 0.4 10 4 4 5 0.5 0.4 2 0.59 0.48 Time

3 4 5 Station 3 pacity Utilzation Year

Utilization 45.00% 100.00% 100.00% 70.00% 79.02% Utilization 56.25% 93.75% 100.00% 87.50% 96.31% Utilization 75.00% 83.33% 100.00% 58.33% 83.62% Utilization 90.00% 100.00% 80.00%

80.00% 70.00% 84.79% Utilization 57.50% 87.50% 100.00% 25.00% 83.15%

CAPACITY ANALYSIS Year 1 Total # of machines required to meet current year's demand 3 Total # of DL machine operators/assemblers required to meet current year's demand 4 Factory cycle time (minutes) 1 Factory capacity (in number of units per year) 120,000 Annual Demand 94,823 Capacity Utilization (average for the year) 79.02%

Year 2 Year 3 Year 4 Year 5 3 3 3 4 6 8 9 10 0.8 0.6 0.5 0.4 150,000 200,000 240,000 300,000 144,472 167,244 203,494 249,450 96.31% 83.62% 84.79% 83.15%

OM TIME 0 STARTUP INVENTORY Materials Startup Costs Raw Materials & Work in Process, Start-Up Period Only $17,362 Finished Goods Start-up Period Only $14,611 OM TIME 0 STARTUP COSTS Materials Startup Costs CAPEX (incl. Factory Buildout Costs) $230,196 MOH $28,187 New Product Development Costs $15,000.00 Note: Our New Product Development Cost consists of a 15,000 custom market research study conducted b Back to Index