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Investment Brief
March 2015CSB Technologies
Investment Brief
March 2015
2CSB Technologies
Overview
CSBTechnologies Inc., a Nevada corporation (“we”, or the “Company”), was formed in July 2014 to develop
enterprise resource planning solutions to the automotive and related services industries. In July, 2014, the Company
acquired Shop Boss Pro, a cloud-based software platform from Boss Software, which has been serving auto repair
shops since December 2011.
Shop Boss Pro is well-positioned to benefit from the emerging business trend of the shift to cloud-based software-
as-a-service offerings (as opposed to traditional desktop software), as well as the consumer trend to extend the
usage cycle of their vehicles to reduce debt obligations (as opposed to swapping out into a newer vehicle with
greater frequency which entails increased debt service payments).
The US automotive repair and maintenance services industry includes about 165,000 establishments (single-
location companies and units of multi-location companies) with combined annual revenue of about $85 billion.
Major companies include Meineke (a division of Driven Brands), Midas, Monro Muffler Brake, Precision Auto Care,
and Safelite Group.The industry is highly fragmented: the 50 largest companies generate less than 10 percent of
revenue.
From a competitive standpoint, demand depends on car usage and the number of cars on the road.The profitability
of individual companies has historically depended on convenient location and good marketing. Larger companies
have been able to maximize the use of expensive diagnostic equipment, with advantages in purchasing, distribution
and marketing. Small companies have competed on service and specialized services. In all cases, this industry is
labor intensive.
The industry is composed of national and regional chains, franchises and independent operators. Most shops are
independently owned, though a large percentage of these are franchises. Despite the advances in automotive
technology, the services industry remains a late adopter of emerging technologies.
Many auto repair Shops function with archaic desktop software that restricts their ability to grow in their market.
Customers getting repairs or maintenance performed on their vehicle have come to expect more. Our product
addresses this with one of the first Web-based applications for auto repair Shops that also allows customer
interaction. Customers can view images of needed repairs, receive updates and information via email and text
message, all while saving the shop owner time and money. We believe that our Company is well-positioned with a
differentiated product to offer the market as operators start more assertively embracing technology for diagnostic,
customer and store management as well as marketing support.
In addition, we believe that the highly fragmented nature of the automotive repair industry bodes well for our
business.The larger, established repair shops which represent 10% or so of the market, and which maintain regional
and national footprints, have in most cases vetted and adopted a management software platform. In some case,
such as Napa, the program is proprietary. We are not targeting these companies at this stage for business. Our focus
is on the remaining 90% of the market, which largely consists of smaller, independently owned businesses where
cost and functionality are paramount.
We believe that our platform technology has application to several additional markets, including motorcycle repair,
collision repair and other services such as plumbing, pest control and carpet cleaning. We intend to focus initially on
automotive repair, and as resources permit, we will expand our offering to new vertical markets which to scale our
revenue opportunity and value proposition.
Investment Brief
March 2015
3CSB Technologies
Investment
The Company seeks an A Round investment of $750,000 in growth capital which will be used for ramping sales
and marketing efforts, continuing to develop and enhance its software, and towards working capital purposes.
Upon completion of this financing, the Company anticipates that it will have the ability to operate profitably with
positive cash flow within 12-months. Capital will be raised in the form of private equity through a Reg D 506c private
placement.
Shareholders Current Out % ofTotal Post Offering Out % ofTotal
Chris Boshaw 1,500,000 90% 1,500,000 47%
Scott Boshaw 175,000 10% 175,000 6%
Current Offering - 0% 1,500,000 47%
1,675,000 100% 3,175,000 100%
Note: Assumes maximum offering
Company Data			
EntityType				California
Common Shares Authorized	 90,000,000
Preferred Shares Authorized	 5,000,000
Common Shares Outstanding	 1,675,000
Preferred Shares Outstanding	 -
Total Shares Outstanding		 1,675,000
Current Offering			$750,000
Shares Offered			1,500,000
Offering Price/Share		 $0.50
Shares Outstanding Post Offering	 3,175,000
Valuation (Pre-Offering)		 $837,500
Valuation (Post-Offering)	 	 $1,587,500
Use of Proceeds	
R&D 				 $100,000
Marketing				450,000
Working Capital 			 100,000
Financing & Misc. 		 100,000
Total 				 $750,000
Investment Brief
March 2015
4CSB Technologies
Consolidated Income Statement (Actual) 2012 2013 Q1 2014 2014
Income
IT Consulting $125,003 $127,862 $45,113 $92,000
Boss Software 8,696 48,860 23,299 93,195
Total Income 133,699 176,722 68,412 185,195
Cost of Goods Sold
Parts 9,311 9,313 836 3,344
Total Cost of Goods Sold 9,311 9,313 836 3,344
Gross Profit $124,388 $167,408 $67,576 $181,851
Gross Margin % 93% 95% 99% 98%
Expenses
Advertising 6,557 14,807 4,863 19,452
Payroll 74,882 90,382 25,468 101,870
Other 28,387 64,276 20,284 81,137
Total Expenses $109,826 $169,465 $50,615 $202,459
Operating Income $14,562 $(2,057) $16,961 $67,844
Operating Income Margin % 10.9% -1.2% 24.8% 36.6%
Net Income $14,562 $(2,271) $16,961
1
2012-Q1 2014 Customer Growth*
Note: 2014 full-year results are based on Company estimates.
1	 Forecasted decline in IT Consulting revenues for 2014 reflects Company’s shift in business plan to focus solely on ShopBoss SaaS sales,
and phasing out of IT Consulting business through remainder of 2014.
Investment Brief
March 2015
5CSB Technologies
Our Product
Shop Boss Pro features:
—— Cloud-based.This means that shop owners and managers can effectively manage their
shop from any location (home, vacation, out of area or alternate business location).
—— Cloud-based Customer Interaction. An ARS using Shop Boss Pro will enable customers to find out the status
of their repair work in real time, as well as set an appointment online. We also include a Customer Notification
System via Email andText Message. In addition, online payment processing is planned for the near future.
—— Integrated Parts Pricing and LaborTime Guide for building estimates and quotes, without
the need of tedious books and phone calls to get the information for the quote.
—— Repair Orders – Creates and manages customer Estimates, Repair Orders and Vehicle Repair History.
—— Customer Interactive – Shop customers can view current repair status and make appointments online.
—— Ease of use –Shop Boss Pro uses large type and simple mouse clicks to make
the program easy to use. Most users require little if any training.
—— Current Shop Statistics – Home screen shows current production,
Month-to-Date Gross Profit and appointment hours.
—— AccountTracking – An ARS that conducts Business-to-Business sales can
track paid and unpaid invoices, as well as generate statements.
—— Integrated LaborTime Guide and Parts Price Guide – While some products offer this feature
most do not directly integrate it into the Estimating portion of their program.
—— Vehicle Issue Driven – Most ARS software simply lists the parts and labor required to make
repairs to a vehicle. Shop Boss Pro organizes all parts and labor by Vehicle Issue (the reason the
customer brought the vehicle into the shop). When the customer is presented the printed Repair
Order, all work performed is preceded by their Vehicle Issue. In this way the customer is made
comfortable that the concerns that brought them in to the shop were addresses properly.
—— Reporting – A wide variety of reports are available to help shop owners track
production, sources, technician efficiency and profitability.
—— Customer Follow-up – Email based follow up for service reminders,
specials, etc.This is offered as a free service to subscribers.
—— Online Payment Processing – Shop Boss Pro will soon offer online payment options for the
customers of each ARS, enabling a customer to pick up their vehicle after the ARS has closed.
—— R.C.E. – Rapid Customer Entry – Customer information entry is perhaps the slowest
part of the Repair Order Process, so we have added Drivers License Swiping and
Zip Code explosion to enter customer name and address quickly.
—— V.B.S. – VIN Barcode Scanning – ARS’s can use a barcode scanner to read the Vehicle Identification Number
from the vehicle.This is then translated intoYear, Make, Model, Engine, andTransmission information.
Our software currently consists of more than 320,000 lines of code and we have invested more than 5,300 man
hours into its development.
Investment Brief
March 2015
6CSB Technologies
Est. Value per Line2
$15.00 $40.00
Lines of Code 321,681.00 $4,825,215.00 $12,867,240
2005-2011 2012 2013 2014 to Date Total
Man Hours
Development
2,548.00 1,040.00 1,300.00 445.00 5,333.00
Cost/Man Hour $45.00 $114,660 $46,800 $58,500 $20,025 $239,985
2
Revenue Model
We employ a SaaS (Software-as-a-Service) revenue model, which is designed to lower the price barrier to customers
and maximize the recurring revenue, and leverage in the model for the vendor.
Our pricing structure is subscription-based which includes all future upgrades, ongoing support, and unlimited
users for each account. Additionally, our pricing structure is based on shop production, not an arbitrary monthly fee.
When a repair shop creates more repair orders/invoices, they will pay a higher fee. Conversely, when a shop creates
fewer invoices, they pay a smaller fee. We also offer a free version of our product for smaller “shade-tree” shops.
Our cost structure is primarily based on the initial cost to develop our software product/service (see table directly
above), which is amortized over time against the number of customers that subscribe to the software-as-a-service.
Our only other direct cost is the cost for servers and Internet service, which is presently approximately $300/monthly
in total.This cost varies by the number of current subscriptions. At present, this translates into approximately $1.80
per subscriber/month.
Our cost of customer acquisition is derived from our monthly marketing budget, which is currently approximately
$1,800/month.This is a variable number. At an average of 10 customer additions/month, a consolidated $1,800
monthly marketing budget would translate into a customer acquisition cost of $180/customer. Adding 100 customers
would reduce that cost to $18.
One of the primary purposes of the current offering is to increase our monthly marketing budget, which we believe
will both drive customer additions, and also create stronger brand awareness in key markets and increase the
efficiency of our marketing investment.
Our software service has three price levels, based on monthly production, or the amount of invoices generated by
the customer per month:
Level Monthly Production Monthly Subscription Fee
Silver 0-29 Invoices $29.95
Gold 30-55 Invoices $69.95
Platinum 56+ Invoices $99.95
Add-Ons
Labor & Estimating Guide $29.95
2	 Value ranges based on generally accepted industry standards.
Investment Brief
March 2015
7CSB Technologies
On an average basis, we receive $65/monthly per customer.
Additional features that we intend to add which will result in additional fees include PayPal/Google integration and
online credit card processing.
Target Market & Availability
Our initial target market is the Automotive Repair Shop industry, particularly the smaller shops with 20 or fewer
employees as they are most likely to use pen and paper or older desktop software.There are more than 160,000 auto
repair shops in the U.S. and of those, 96.4% have less than 20 employees. With over 67% of small shops using some
sort of desktop software to manage their shop and assuming Shop Boss average cost of $65 per month (including
software, support and backup), this is a $100 million dollar per year industry that awaits the revolution of Cloud-
based Shop Management.
Market Opportunity Analysis Auto Repair Body Shops
Assumed Shops (Auto Repair) 160,000.00 44,000.00
Total Market Size (Annual) $124,800,000.00 $34,320,000.00
Shop Boss Avg. Monthly Fee $65.00 $65.00
Assumed Market Penetration
1% 3% 5%
Auto Repair Shops 1,600 4,800 8,000
SaaS Monthly Opportunity $104,000 $312,000 $520,000
SaaS Annual Opportunity $1,248,000 $3,744,000 $6,240,000
Auto Body Repair Shops 440.00 1,320.00 2,200.00
SaaS Monthly Opportunity $28,600.00 $85,800.00 $143,000.00
SaaS Annual Opportunity $343,200.00 $1,029,600.00 $1,716,000.00
Total Initial Opportunity Based on 1%-5% Market Share $1,591,200.00 $4,773,600.00 $7,956,000.00
Additional markets we intend to address include:
Motorcycle Repair Shops:
A web-based application designed specifically for the Motorcycle Repair Industry, focusing on the needs of the
Motorcycle Repair Shop. Includes features such as all major parts catalogs and labor time guides.
Auto Body Repair:
Shop Management Software and a fully integrated estimating solution, which manages invoices, repair history and
create insurance company compliant repair estimates all within the same application
Investment Brief
March 2015
8CSB Technologies
Competitive Landscape
The industry is highly fragmented with a few large companies employing a one-time license sales model, a
Software-as-a-Service (SaaS) sales model, or a combination of the two.
Software Company Pricing Model
Autobiz TABS One-time license purchase
ASA Automotive Systems Autorepair Master SaaS ($250/Month)+
Auto Repair Boss Palmer Products, Inc. 1x License or SaaS ($90-$173/Month)
FastTrack Risoria LTD SaaS ($120)+
Lankar Autogence, Inc. 1x License or SaaS ($159-$189/Month)
MaxxTraxx Pro Scott Systems SaaS ($50-$120/Month)
Mitchell Repair Center Mitchell International SaaS ($250/Month+) Single User
NapaTracs Napa Undisclosed
Omnique Circle Industries &Technologies SaaS ($50-$400/Month)
R.O. Writer Progressive Automotive Systems 1x License or SaaS ($299-$500/Month)
Shop Boss Pro CSBTechnologies SaaS ($30-$100/Month)
ShopController Alliance Automotive Systems SaaS (up to $199/Month)
WinWorks Autoshop Winworks Software 1x License ($1,995-$3,495) Single User
We believe that we will continue to win business and build our customer footprint based on (a) our price point and
(b) our rich feature set in a cloud-based environment.
Management
Chris Boshaw, Founder and CEO
Prior to founding CSBTechnologies to focus specifically on cloud-based ERP/CRM software solutions to the
automotive and related services industry, Mr. Boshaw founded Boss Software in 2011, and is responsible for the
development and strategic vision of the Company’s software platform. Prior to Boss Software, Mr. Boshaw owned
and operated Fastech, an IT services company based in Poway, California, and Finance, Sales and Lease Manager at
Automobile Industry, in San Diego, California.
Scott Boshaw,VP of Sales
Prior to joining CSBTechnologies, Inc., Mr. Boshaw has served as VP of Sales since 2011. Prior to Boss Software, Mr.
Boshaw served as computer repair technical at Poway Computer Repair, and salesman at Superior Water.
Investment Brief
March 2015
9CSB Technologies
Pro Forma Summary Financial Tables
2014 2015 2016 2017
Total Revenue $185,195 $262,490 $553,645 $1,153,091
Total Direct Costs 8,384 12,698 25,508 50,601
Gross Margin 176,811 249,792 528,137 1,102,490
Total Operating Expenses 343,861 562,358 698,853 394,397
Operating Income (Loss) (167,050) (312,566) (170,716) 708,093
Total Other Income - 3,726 636 1,079
IncomeTaxes - - - 189,952
Net Income (Loss) (167,050) (308,840) (170,080) 519,220
EBITDA (Loss) $(167,050) $(312,566) $(170,716) $708,093
% -90% -119% -31% 61%
Total Current Assets $565,687 $257,253 $88,767 $610,481
Fixed Assets, Net - - - -
Total Other Assets - - - -
Total Assets 565,687 257,253 88,767 610,481
Total Current Liabilities 833 1,239 2,834 5,327
Total LongTerm Liabilities - - - -
Total Equity 564,854 256,014 85,933 605,153
Total Liabilities and Equity $565,687 $257,253 $88,767 $610,481
Total Cash From (For) Operating Activities $(217,127) $(326,864) $(240,270) $401,954
Total Cash From (For) Investing Activities - - - -
Total Cash From (For) Financing Activities 750,000 - - -
Net Increase (Decrease) In Cash 532,873 (326,864) (240,270) 401,954
Cash and Cash Equivalents-End $532,873 $206,009 $(34,261) $367,694
Exit Strategy
We are focused on becoming a leading auto shop management software company, and believe our platform has
appeal and application in several other automotive environments, such as motorcycle repair and collision repair.
As we prove out our business plan and capture market share, we anticipate that our business and expanding
customer base will be perceived as an attractive and complimentary business to larger, more established companies
operating in our market. In addition to this potential exit through M&A, we will consider alternative methods to
offering our shareholders liquidity opportunities such as dividends, share buybacks and even a potential public
offering.
Investment Brief
March 2015
10CSB Technologies
DISCLAIMER
This is Not an Offer to Purchase or Sell Securities.This overview is for informational purposes and is not an offer to sell or a solicitation
of an offer to buy any securities in CSBTechnologies, and may not be relied upon in connection with the purchase or sale of any security.
Shares of CSBTechnologies, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated
pursuant to the Securities Act of 1933, as amended) and who are interested in investing in CSBTechnologies on their own behalf. Any offering
or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription
documents, all of which should be read in their entirety.
To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law.
Cautionary Note Regarding Forward-Looking Statements/Pursuant to the U.S. Private Securities Litigation Reform Act of 1995
This investment brief contains, and our officers and representatives may from time to time make, “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,”
“may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements
we make regarding launch of products, sales, markets, marketing strategies, our estimates on future financial performance, revenue growth
and earnings, anticipated levels of capital expenditures and our belief that offering proceeds will provide sufficient liquidity to fund our
business operations over the next 36 months.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current
beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events
and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results
and financial condition may differ materially from those indicated in the forward-looking statements.Therefore, you should not rely on any of
these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those
indicated in the forward-looking statements include, among others, the following:
•	 Our net sales and profitability depend on our ability to continue to conceive, design and market products that appeal to our consumers.
•	 Competition in our markets could reduce our net sales and profitability.
•	 General economic conditions affect the Company’s results.
•	 Intellectual property disputes relating to our products could increase our costs.
•	 Impairment charges could impact our future financial position and results of operations.
•	 A limited number of our shareholders can exert significant influence over the Company.
•	 We are dependent upon certain key members of management.
Any forward-looking statement made by us in this investment brief is based only on information currently available to us and speaks only as
of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new information, future developments or otherwise.
For More Information, Contact:
Financial Representative
Thomas Carter
Capital Services Group
Thomas@capservegroup.com
760-845-7545
Company
Chris Boshaw
858-435-0227
chris@shopbosspro.com

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CSB Technologies - Investment Brief - 2014

  • 2. Investment Brief March 2015 2CSB Technologies Overview CSBTechnologies Inc., a Nevada corporation (“we”, or the “Company”), was formed in July 2014 to develop enterprise resource planning solutions to the automotive and related services industries. In July, 2014, the Company acquired Shop Boss Pro, a cloud-based software platform from Boss Software, which has been serving auto repair shops since December 2011. Shop Boss Pro is well-positioned to benefit from the emerging business trend of the shift to cloud-based software- as-a-service offerings (as opposed to traditional desktop software), as well as the consumer trend to extend the usage cycle of their vehicles to reduce debt obligations (as opposed to swapping out into a newer vehicle with greater frequency which entails increased debt service payments). The US automotive repair and maintenance services industry includes about 165,000 establishments (single- location companies and units of multi-location companies) with combined annual revenue of about $85 billion. Major companies include Meineke (a division of Driven Brands), Midas, Monro Muffler Brake, Precision Auto Care, and Safelite Group.The industry is highly fragmented: the 50 largest companies generate less than 10 percent of revenue. From a competitive standpoint, demand depends on car usage and the number of cars on the road.The profitability of individual companies has historically depended on convenient location and good marketing. Larger companies have been able to maximize the use of expensive diagnostic equipment, with advantages in purchasing, distribution and marketing. Small companies have competed on service and specialized services. In all cases, this industry is labor intensive. The industry is composed of national and regional chains, franchises and independent operators. Most shops are independently owned, though a large percentage of these are franchises. Despite the advances in automotive technology, the services industry remains a late adopter of emerging technologies. Many auto repair Shops function with archaic desktop software that restricts their ability to grow in their market. Customers getting repairs or maintenance performed on their vehicle have come to expect more. Our product addresses this with one of the first Web-based applications for auto repair Shops that also allows customer interaction. Customers can view images of needed repairs, receive updates and information via email and text message, all while saving the shop owner time and money. We believe that our Company is well-positioned with a differentiated product to offer the market as operators start more assertively embracing technology for diagnostic, customer and store management as well as marketing support. In addition, we believe that the highly fragmented nature of the automotive repair industry bodes well for our business.The larger, established repair shops which represent 10% or so of the market, and which maintain regional and national footprints, have in most cases vetted and adopted a management software platform. In some case, such as Napa, the program is proprietary. We are not targeting these companies at this stage for business. Our focus is on the remaining 90% of the market, which largely consists of smaller, independently owned businesses where cost and functionality are paramount. We believe that our platform technology has application to several additional markets, including motorcycle repair, collision repair and other services such as plumbing, pest control and carpet cleaning. We intend to focus initially on automotive repair, and as resources permit, we will expand our offering to new vertical markets which to scale our revenue opportunity and value proposition.
  • 3. Investment Brief March 2015 3CSB Technologies Investment The Company seeks an A Round investment of $750,000 in growth capital which will be used for ramping sales and marketing efforts, continuing to develop and enhance its software, and towards working capital purposes. Upon completion of this financing, the Company anticipates that it will have the ability to operate profitably with positive cash flow within 12-months. Capital will be raised in the form of private equity through a Reg D 506c private placement. Shareholders Current Out % ofTotal Post Offering Out % ofTotal Chris Boshaw 1,500,000 90% 1,500,000 47% Scott Boshaw 175,000 10% 175,000 6% Current Offering - 0% 1,500,000 47% 1,675,000 100% 3,175,000 100% Note: Assumes maximum offering Company Data EntityType California Common Shares Authorized 90,000,000 Preferred Shares Authorized 5,000,000 Common Shares Outstanding 1,675,000 Preferred Shares Outstanding - Total Shares Outstanding 1,675,000 Current Offering $750,000 Shares Offered 1,500,000 Offering Price/Share $0.50 Shares Outstanding Post Offering 3,175,000 Valuation (Pre-Offering) $837,500 Valuation (Post-Offering) $1,587,500 Use of Proceeds R&D $100,000 Marketing 450,000 Working Capital 100,000 Financing & Misc. 100,000 Total $750,000
  • 4. Investment Brief March 2015 4CSB Technologies Consolidated Income Statement (Actual) 2012 2013 Q1 2014 2014 Income IT Consulting $125,003 $127,862 $45,113 $92,000 Boss Software 8,696 48,860 23,299 93,195 Total Income 133,699 176,722 68,412 185,195 Cost of Goods Sold Parts 9,311 9,313 836 3,344 Total Cost of Goods Sold 9,311 9,313 836 3,344 Gross Profit $124,388 $167,408 $67,576 $181,851 Gross Margin % 93% 95% 99% 98% Expenses Advertising 6,557 14,807 4,863 19,452 Payroll 74,882 90,382 25,468 101,870 Other 28,387 64,276 20,284 81,137 Total Expenses $109,826 $169,465 $50,615 $202,459 Operating Income $14,562 $(2,057) $16,961 $67,844 Operating Income Margin % 10.9% -1.2% 24.8% 36.6% Net Income $14,562 $(2,271) $16,961 1 2012-Q1 2014 Customer Growth* Note: 2014 full-year results are based on Company estimates. 1 Forecasted decline in IT Consulting revenues for 2014 reflects Company’s shift in business plan to focus solely on ShopBoss SaaS sales, and phasing out of IT Consulting business through remainder of 2014.
  • 5. Investment Brief March 2015 5CSB Technologies Our Product Shop Boss Pro features: —— Cloud-based.This means that shop owners and managers can effectively manage their shop from any location (home, vacation, out of area or alternate business location). —— Cloud-based Customer Interaction. An ARS using Shop Boss Pro will enable customers to find out the status of their repair work in real time, as well as set an appointment online. We also include a Customer Notification System via Email andText Message. In addition, online payment processing is planned for the near future. —— Integrated Parts Pricing and LaborTime Guide for building estimates and quotes, without the need of tedious books and phone calls to get the information for the quote. —— Repair Orders – Creates and manages customer Estimates, Repair Orders and Vehicle Repair History. —— Customer Interactive – Shop customers can view current repair status and make appointments online. —— Ease of use –Shop Boss Pro uses large type and simple mouse clicks to make the program easy to use. Most users require little if any training. —— Current Shop Statistics – Home screen shows current production, Month-to-Date Gross Profit and appointment hours. —— AccountTracking – An ARS that conducts Business-to-Business sales can track paid and unpaid invoices, as well as generate statements. —— Integrated LaborTime Guide and Parts Price Guide – While some products offer this feature most do not directly integrate it into the Estimating portion of their program. —— Vehicle Issue Driven – Most ARS software simply lists the parts and labor required to make repairs to a vehicle. Shop Boss Pro organizes all parts and labor by Vehicle Issue (the reason the customer brought the vehicle into the shop). When the customer is presented the printed Repair Order, all work performed is preceded by their Vehicle Issue. In this way the customer is made comfortable that the concerns that brought them in to the shop were addresses properly. —— Reporting – A wide variety of reports are available to help shop owners track production, sources, technician efficiency and profitability. —— Customer Follow-up – Email based follow up for service reminders, specials, etc.This is offered as a free service to subscribers. —— Online Payment Processing – Shop Boss Pro will soon offer online payment options for the customers of each ARS, enabling a customer to pick up their vehicle after the ARS has closed. —— R.C.E. – Rapid Customer Entry – Customer information entry is perhaps the slowest part of the Repair Order Process, so we have added Drivers License Swiping and Zip Code explosion to enter customer name and address quickly. —— V.B.S. – VIN Barcode Scanning – ARS’s can use a barcode scanner to read the Vehicle Identification Number from the vehicle.This is then translated intoYear, Make, Model, Engine, andTransmission information. Our software currently consists of more than 320,000 lines of code and we have invested more than 5,300 man hours into its development.
  • 6. Investment Brief March 2015 6CSB Technologies Est. Value per Line2 $15.00 $40.00 Lines of Code 321,681.00 $4,825,215.00 $12,867,240 2005-2011 2012 2013 2014 to Date Total Man Hours Development 2,548.00 1,040.00 1,300.00 445.00 5,333.00 Cost/Man Hour $45.00 $114,660 $46,800 $58,500 $20,025 $239,985 2 Revenue Model We employ a SaaS (Software-as-a-Service) revenue model, which is designed to lower the price barrier to customers and maximize the recurring revenue, and leverage in the model for the vendor. Our pricing structure is subscription-based which includes all future upgrades, ongoing support, and unlimited users for each account. Additionally, our pricing structure is based on shop production, not an arbitrary monthly fee. When a repair shop creates more repair orders/invoices, they will pay a higher fee. Conversely, when a shop creates fewer invoices, they pay a smaller fee. We also offer a free version of our product for smaller “shade-tree” shops. Our cost structure is primarily based on the initial cost to develop our software product/service (see table directly above), which is amortized over time against the number of customers that subscribe to the software-as-a-service. Our only other direct cost is the cost for servers and Internet service, which is presently approximately $300/monthly in total.This cost varies by the number of current subscriptions. At present, this translates into approximately $1.80 per subscriber/month. Our cost of customer acquisition is derived from our monthly marketing budget, which is currently approximately $1,800/month.This is a variable number. At an average of 10 customer additions/month, a consolidated $1,800 monthly marketing budget would translate into a customer acquisition cost of $180/customer. Adding 100 customers would reduce that cost to $18. One of the primary purposes of the current offering is to increase our monthly marketing budget, which we believe will both drive customer additions, and also create stronger brand awareness in key markets and increase the efficiency of our marketing investment. Our software service has three price levels, based on monthly production, or the amount of invoices generated by the customer per month: Level Monthly Production Monthly Subscription Fee Silver 0-29 Invoices $29.95 Gold 30-55 Invoices $69.95 Platinum 56+ Invoices $99.95 Add-Ons Labor & Estimating Guide $29.95 2 Value ranges based on generally accepted industry standards.
  • 7. Investment Brief March 2015 7CSB Technologies On an average basis, we receive $65/monthly per customer. Additional features that we intend to add which will result in additional fees include PayPal/Google integration and online credit card processing. Target Market & Availability Our initial target market is the Automotive Repair Shop industry, particularly the smaller shops with 20 or fewer employees as they are most likely to use pen and paper or older desktop software.There are more than 160,000 auto repair shops in the U.S. and of those, 96.4% have less than 20 employees. With over 67% of small shops using some sort of desktop software to manage their shop and assuming Shop Boss average cost of $65 per month (including software, support and backup), this is a $100 million dollar per year industry that awaits the revolution of Cloud- based Shop Management. Market Opportunity Analysis Auto Repair Body Shops Assumed Shops (Auto Repair) 160,000.00 44,000.00 Total Market Size (Annual) $124,800,000.00 $34,320,000.00 Shop Boss Avg. Monthly Fee $65.00 $65.00 Assumed Market Penetration 1% 3% 5% Auto Repair Shops 1,600 4,800 8,000 SaaS Monthly Opportunity $104,000 $312,000 $520,000 SaaS Annual Opportunity $1,248,000 $3,744,000 $6,240,000 Auto Body Repair Shops 440.00 1,320.00 2,200.00 SaaS Monthly Opportunity $28,600.00 $85,800.00 $143,000.00 SaaS Annual Opportunity $343,200.00 $1,029,600.00 $1,716,000.00 Total Initial Opportunity Based on 1%-5% Market Share $1,591,200.00 $4,773,600.00 $7,956,000.00 Additional markets we intend to address include: Motorcycle Repair Shops: A web-based application designed specifically for the Motorcycle Repair Industry, focusing on the needs of the Motorcycle Repair Shop. Includes features such as all major parts catalogs and labor time guides. Auto Body Repair: Shop Management Software and a fully integrated estimating solution, which manages invoices, repair history and create insurance company compliant repair estimates all within the same application
  • 8. Investment Brief March 2015 8CSB Technologies Competitive Landscape The industry is highly fragmented with a few large companies employing a one-time license sales model, a Software-as-a-Service (SaaS) sales model, or a combination of the two. Software Company Pricing Model Autobiz TABS One-time license purchase ASA Automotive Systems Autorepair Master SaaS ($250/Month)+ Auto Repair Boss Palmer Products, Inc. 1x License or SaaS ($90-$173/Month) FastTrack Risoria LTD SaaS ($120)+ Lankar Autogence, Inc. 1x License or SaaS ($159-$189/Month) MaxxTraxx Pro Scott Systems SaaS ($50-$120/Month) Mitchell Repair Center Mitchell International SaaS ($250/Month+) Single User NapaTracs Napa Undisclosed Omnique Circle Industries &Technologies SaaS ($50-$400/Month) R.O. Writer Progressive Automotive Systems 1x License or SaaS ($299-$500/Month) Shop Boss Pro CSBTechnologies SaaS ($30-$100/Month) ShopController Alliance Automotive Systems SaaS (up to $199/Month) WinWorks Autoshop Winworks Software 1x License ($1,995-$3,495) Single User We believe that we will continue to win business and build our customer footprint based on (a) our price point and (b) our rich feature set in a cloud-based environment. Management Chris Boshaw, Founder and CEO Prior to founding CSBTechnologies to focus specifically on cloud-based ERP/CRM software solutions to the automotive and related services industry, Mr. Boshaw founded Boss Software in 2011, and is responsible for the development and strategic vision of the Company’s software platform. Prior to Boss Software, Mr. Boshaw owned and operated Fastech, an IT services company based in Poway, California, and Finance, Sales and Lease Manager at Automobile Industry, in San Diego, California. Scott Boshaw,VP of Sales Prior to joining CSBTechnologies, Inc., Mr. Boshaw has served as VP of Sales since 2011. Prior to Boss Software, Mr. Boshaw served as computer repair technical at Poway Computer Repair, and salesman at Superior Water.
  • 9. Investment Brief March 2015 9CSB Technologies Pro Forma Summary Financial Tables 2014 2015 2016 2017 Total Revenue $185,195 $262,490 $553,645 $1,153,091 Total Direct Costs 8,384 12,698 25,508 50,601 Gross Margin 176,811 249,792 528,137 1,102,490 Total Operating Expenses 343,861 562,358 698,853 394,397 Operating Income (Loss) (167,050) (312,566) (170,716) 708,093 Total Other Income - 3,726 636 1,079 IncomeTaxes - - - 189,952 Net Income (Loss) (167,050) (308,840) (170,080) 519,220 EBITDA (Loss) $(167,050) $(312,566) $(170,716) $708,093 % -90% -119% -31% 61% Total Current Assets $565,687 $257,253 $88,767 $610,481 Fixed Assets, Net - - - - Total Other Assets - - - - Total Assets 565,687 257,253 88,767 610,481 Total Current Liabilities 833 1,239 2,834 5,327 Total LongTerm Liabilities - - - - Total Equity 564,854 256,014 85,933 605,153 Total Liabilities and Equity $565,687 $257,253 $88,767 $610,481 Total Cash From (For) Operating Activities $(217,127) $(326,864) $(240,270) $401,954 Total Cash From (For) Investing Activities - - - - Total Cash From (For) Financing Activities 750,000 - - - Net Increase (Decrease) In Cash 532,873 (326,864) (240,270) 401,954 Cash and Cash Equivalents-End $532,873 $206,009 $(34,261) $367,694 Exit Strategy We are focused on becoming a leading auto shop management software company, and believe our platform has appeal and application in several other automotive environments, such as motorcycle repair and collision repair. As we prove out our business plan and capture market share, we anticipate that our business and expanding customer base will be perceived as an attractive and complimentary business to larger, more established companies operating in our market. In addition to this potential exit through M&A, we will consider alternative methods to offering our shareholders liquidity opportunities such as dividends, share buybacks and even a potential public offering.
  • 10. Investment Brief March 2015 10CSB Technologies DISCLAIMER This is Not an Offer to Purchase or Sell Securities.This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in CSBTechnologies, and may not be relied upon in connection with the purchase or sale of any security. Shares of CSBTechnologies, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in CSBTechnologies on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law. Cautionary Note Regarding Forward-Looking Statements/Pursuant to the U.S. Private Securities Litigation Reform Act of 1995 This investment brief contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding launch of products, sales, markets, marketing strategies, our estimates on future financial performance, revenue growth and earnings, anticipated levels of capital expenditures and our belief that offering proceeds will provide sufficient liquidity to fund our business operations over the next 36 months. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements.Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: • Our net sales and profitability depend on our ability to continue to conceive, design and market products that appeal to our consumers. • Competition in our markets could reduce our net sales and profitability. • General economic conditions affect the Company’s results. • Intellectual property disputes relating to our products could increase our costs. • Impairment charges could impact our future financial position and results of operations. • A limited number of our shareholders can exert significant influence over the Company. • We are dependent upon certain key members of management. Any forward-looking statement made by us in this investment brief is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. For More Information, Contact: Financial Representative Thomas Carter Capital Services Group Thomas@capservegroup.com 760-845-7545 Company Chris Boshaw 858-435-0227 chris@shopbosspro.com