This is a presentation for my Management class. We had to create a new and innovative consumer product as our semester long project. We created a vitamin based gum that stimulated natural energy in those that consumed the product. This is our final presentation and product propossal.

1. Tom O’Connor Julia Walker Lauren Dusak Kristina Gentilozzi Kaitlin McQuade Frank Marallo Derek Szu-Tu Lauren Faga Brandon Miniman Sean Helmig Carolyn McCarthy Chuck Sgammato Mike Pattavina Angela Russo M ax1m I nnovations

10. CM and Net Income Wholesale Price: $1.59 Cost: - $0.14 Contribution Margin: $1.45 Projected Net Income Contribution Margin Maxim Innovations

11. Break Even Maxim Innovations

17. Existings Products **** It is a proven fact that Vitamin B12’s absorption is inhibited by certain vitamins, including Vitamin C, 1 of the 10 essential vitamins found in Vitaball Purpose: Distribution: Target Market: Maxim Innovations Energy Seeking Adults! Children Sticks Gumballs Delivers Vitamin B12 to promotes the production of red blood cells, increased metabolism and more ENERGY Delivers 100% Recommended Daily Allowance of 10 essential vitamins Boost 12 Vitaball

18. Vitamin B12 Absorption Through Tongue According to the article, Vitamin B12 Cobalamin , sublingual (under the tongue) delivery of Vitamin B12, such as through a gum or tablet form, is most effective. This method of delivery allows the for the quickest way for B12 to be absorbed straight into the bloodstream. Maxim Innovations

19. Functional Gum Market “ Wrigley, Cadbury and Hershey all continue to take steps in new product development …. If a smaller company develops a functional gum type that is able to challenge the existing hierarchy of teeth whitening gums, it is likely that they would make an attractive target to one of these larger players.” Quote on www.gmid.euromonitor.com. Maxim Innovations

20. Taste Preference Maxim Innovations Source: Euromonitor International estimates 10.00 10.00 10.00 Lemon 9.00 9.00 9.00 Apple 7.00 7.00 7.00 Juicy Fruit 6.00 6.00 6.00 Cinnamon 5.00 4.00 4.00 Wintergreen 4.00 5.00 5.00 Bubble Gum 3.00 3.00 3.00 Mint 2.00 2.00 2.00 Peppermint 1.00 1.00 1.00 Spearmint 2006 2005 2004 Rank Table 7 Leading Flavors for Gum 2004-2006

21. Have you had your B12 today? Recommended Dietary Allowances for Vitamin B12 Source: www.ods.od.nih.gov Maxim Innovations 2.4 19+ 2.4 14-18 1.8 9-13 1.2 4-8 0.9 1-3 Allowance (μg/day) Age (years)

24. Ad Cost per year Rate Base per year Men’s Fitness 668,360 6,500,000 Men’s Health 1,461,600 17,500,000 Women’s Health 834,756 7,500,000 Shape 1,202,640 19,200,000 Total $ 4,167,356 50,700,000 Yr 1 Sports Illustrated 2,222,755 23,400,000 Self 1,230,636 16,800,000 4,167,356 50,700,000 Total $ 7,620,747 90,900,000 Yr 2 Magazine Advertising Costs Maxim Innovations

26. Year One: $4,294,377 Year Two: $7,767,665 Year Three: $8,136,182 Year Four: $8,494,800 Year Five: $8,494,800 Total Advertising Costs Per Year Maxim Innovations

27. Valuation of Company Residual Value $16,093,533 NPV $9,093,533 Projected Sales Price $25,187,066 Maxim Innovations

28. Break Even (10% increase best case) Maxim Innovations

29. Projected Income (10% sales increase) NPV = $14,419,233 IRR = 38% Maxim Innovations

30. Sales Figures (Expected) Maxim Innovations 305,772 552 46 5322 Total 19,944 72 6 277 Trader Joes 17,616 48 4 367 Bally 6,480 48 4 135 Sports Clubs 24,000 60 5 400 LA Fitness 25,536 48 4 532 Gold's Gym 8,592 48 4 179 World Gym 9,264 48 4 193 Whole Foods 33,000 60 5 550 Vitamin Works 9,600 60 5 160 Vitamin Shoppe 151,740 60 5 2529 GNC Stores Total # boxes # boxes/ yr # boxes / month # Stores YEAR 2008

34. Taxes (Expected) Maxim Innovations $ 4,514,224 $ 3,423,476 $ 2,479,680 $ 913,079 $ (509,131) $ (773,755) $ - Tax Payable $ - $ - $ - $ 913,079 $ (509,131) $ (890,137) $ (773,755) Total NOL $ 4,514,224 $ 3,423,476 $ 2,479,680 $ 1,422,210 $ 381,006 $ - $ - Income Tax Expense $ - $ - $ - $ - $ - $ (116,382) $ (773,755) NOL $ 4,514,224 $ 3,423,476 $ 2,479,680 $ 1,422,210 $ 381,006 $ (116,382) $ (773,755) Tax Expense $ 13,277,129 $ 10,069,046 $ 7,293,175 $ 4,182,971 $ 1,120,606 $ (342,301) $ (2,275,749) Earnings before Taxes 2014 2013 2012 2011 2010 2009 2008

35. Taxes (Worst Case) Maxim Innovations $ 3,634,959 $ 2,658,897 $ 1,306,256 $ (508,573) $ (1,376,741) $ (912,784) $ - Tax Pay $ - $ - $ 1,306,256 $ (508,573) $ (1,376,741) $ (1,376,741) $ (912,784) Total NOL $ 3,634,959 $ 2,658,897 $ 1,814,829 $ 868,168 $ - $ - $ - Income Tax Exp $ - $ - $ - $ - $ (36,083) $ (463,957) $ (912,784) NOL $ 3,634,959 $ 2,658,897 $ 1,814,829 $ 868,168 $ (36,083) $ (463,957) $ (912,784) Tax Exp $ 10,691,055 $ 7,820,286 $ 5,337,732 $ 2,553,435 $ (106,125) $ (1,364,578) $ (2,684,659) EBIT 2014 2013 2012 2011 2010 2009 2008

36. Taxes (Best Case) Maxim Innovations $ 4,954,752 $ 3,806,205 $ 2,812,105 $ 1,641,947 $ (57,285) $ (646,835) $ - Tax Payable $ - $ - $ - $ 1,641,947 $ (57,285) $ (646,835) $ (704,240) Total NOL $ 4,954,752 $ 3,806,205 $ 2,812,105 $ 1,699,231 $ 589,551 $ 57,405 $ - Income Tax Expense $ - $ - $ - $ - $ - $ - $ (704,240) NOL $ 4,954,752 $ 3,806,205 $ 2,812,105 $ 1,699,231 $ 589,551 $ 57,405 $ (704,240) Tax Expense $ 14,572,800 $ 11,194,721 $ 8,270,897 $ 4,997,739 $ 1,733,972 $ 168,837 $ (2,071,293) Earnings before Taxes 2014 2013 2012 2011 2010 2009 2008