VXGaming sells an online gaming platform that allows players to participate in tournaments with cash prizes. The summary projects: 1) Developing a mod for Counter-Strike: Source to launch in 6 months, aiming to capture 3% of its 100,000 players. 2) Projections estimate 125 concurrent players in the first month, growing by 125 players per month until reaching 3,000 players. 3) The company expects to break even in September 2010, earning $320,000 that month after starting with -$220,000 in balance.

1. Financial Presentation By Christian Gregertsen CEO/Owner VXGaming, LLC

2. Introduction/ Product Description VXGaming sells a service that enables gamers to play online game tournaments with real cash at stake. The software consists of: VXGaming Pay To Play (P2P) Platform. Is downloadable as an addon for existing games, such as Counter Strike by Valve Software. A community portal (http://www.vxgaming.net) Lets the gamer create a profile and manage their account. Lets the gamer communicate with other players.

3. Assumptions used in projections The first P2P Platform will be developed as a mod for Counter Strike Source (CS:Source). Initial development and deployment will take 6 months. CS:Source averages ~100,000 concurrent players. We assume we can capture 3% of this market [3,000 concurrent players market capacity]. On average each game round lasts 20 minutes with a $2 entry fee per player. [Per player: 20mins/$2 = 10mins/1$, $0.1/min/player Gross Sales] 75% of entry fee is paid back out to player-base, house keeps 25%. Ramp Up: 125 concurrent players first month, increasing by 125 players/month until market capacity is reached.

4. Startup Costs

5. Salaries

6. Revenue, Sales, and Profit Projections 125 concurrent players first month. Increases by 125 players each month until market capacity of 3000 concurrent players is reached.

7. First Year Growth

8. VXGaming, LLC will break even in September of 2010. VXGaming enters September with a -$220,000 balance. VXGaming is expected to earn $320,000 in September leaving us with $100,000 profit. Break Even

9. Cost of Goods Sold Each game tournament has an entry fee. At the end of each tournament 75% of the fees are paid out to the winning player. This is the cost of goods sold. Example: 30 players join a $2 game. $60 is collected in sales. $45 is paid out to winning gamer [75%]. $15 is kept as profit. 25% Profit Margin on sales.

10. Methods used for Year 2 and 3 forecast We assume 125 player growth per month until market capacity of 3000 is reached. Gaming server costs are estimated at $1/month player 1 Customer Service Rep is hired per 125 players @ $32,000 year. Year 2 Office Space is increased to 4,000sqft. Year 3 Office Space is increased to 6,000sqft. Rent/Utilities/Maintenance evenly scale linearly to increased staff and office space.

11. 3 Year Forecast

12. Major Expense Line Items Travel in March [$5,000] Plane Ticket/Food/Accommodations for Game Developers Conference in San Francisco. Office Supplies Increase from [$200] to [$3,000] July-December Each month after launch a new CS rep is hired to keep up with increased number of concurrent players. The cost of a new computer, chair and desk is included in office supply costs.

13. Measuring Performance The main performance indicator after launch is Monthly Net Profit. Pre-launch the main performance indicator is software completion percentage. In order to launch on the projected launch date: Need to complete 20% each month for 5 months. One month scheduled for deployment.

14. Unique Performance Indicator Average Concurrent Players [over 24 hours/monthly] / Server Capacity. Example: 178 average concurrent players within the last 24 hours / 250 server capacity. 71.2% daily performance. Example: 200 average concurrent players over the last month / 250 server capacity. 80.0% monthly performance. Important for noticing changing trends in the market. Lets us know when we need to upgrade/downgrade server capacity.

15. Key Factors Affecting Profitability Two main factors affect profitability Concurrent Players [The number of players playing on our servers at any given time] Average stake of played games [The higher the stakes are, the more profit we earn]

16. Pro Forma