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•    Product Overview
•    Request for Funding
•    Segments
•    Selling Strategy
•    Process Flow
•    CSR Initiative
•    Financial Analysis




Thursday, July 08, 2010    Opassa Corporation   2
• TrueBeat: The Musicians’ Companion
      • A fully colored LCD screen that enables performers to see live scores during
        playback
      • Recording from other digital devices using the MIDI-IN and MIDI-OUT jacks
      • Customizable tempos with different queues and paces ranging from 30 to 470
        BPM
      • A built in microphone allowing users to tune their instruments with single notes
        or specified chords
      • Amplified playback to any speaker or microphone accessory with its standard
        audio input and output

• Competition




      Yamaha ClickStation             Roland Dr. Beat 90          Korg Beatlab
       Retail Price: $179             Retail Price: $222         Retail Price: $130

Thursday, July 08, 2010               Opassa Corporation                                   3
Thursday, July 08, 2010   Opassa Corporation   4
• NPV: $3.2 Million

                                           Net Present Value:
• Investor IRR: 71%
                                                 Project           $4,737,487

                                                 Investors         $3,182,947
• Terminal Value: $7.1 Million                                     $1,554,540
                                                 Friends, Family
                                           and Mgmt
• Paid in Capital: $2.15 Million
                                           IRR:

                                                 Project           77%

                                                 Investors         71%

                                                 Friends, Family   96%

                                           and Mgmt



Thursday, July 08, 2010     Opassa Corporation                                  5
Segmentation                                          Market Breakdown
  Teachers
   86,000
     1%               All-Stars                                                    Internet
                      754,000                                                       Dealers
                        13%                                                          14%

                                     Band
                                    Geeks                      Indepen.
                                   5,160,00                     Dealers
                                       0                         46%
                                     86%                                                Large
                                                                                        Retail
                                                                                       Dealers
                                                                                         40%




Thursday, July 08, 2010                       Opassa Corporation                                 6
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Branded Guitar Picks

Branded Drum Sticks

Branded Bumper Stickers
Brochures
YouTube Videos Release
Banner Ads
TrueBeat Giveaway
Large Marching Competitions
Medium Marching Competitions
Small Marching Competitions
Drum Corps World Ad




Thursday, July 08, 2010            Opassa Corporation                             7
Thursday, July 08, 2010   Opassa Corporation   8
Thursday, July 08, 2010   Opassa Corporation   9
Thursday, July 08, 2010   Opassa Corporation   10
Thursday, July 08, 2010   Opassa Corporation   11
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Thursday, July 08, 2010   Opassa Corporation   13
Thursday, July 08, 2010   Opassa Corporation   14
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
  POP Display in
  key Retailers




Thursday, July 08, 2010               Opassa Corporation                     15
Sales by Channel
                           100
                           90
                           80
                           70
                           60
                 Percent




                           50
                           40
                           30
                           20
                           10
                             0
                                   Year 1    Year 2    Year 3           Year 4    Year 5   Year 6
                                 % Direct Online      % B2B Online               % B2B Retail
Thursday, July 08, 2010                            Opassa Corporation                               16
Yearly ACV              Indirect Selling
                                                       •   Independent Retailers
                 25                                    •   Online E-tailers
                                                       •   Guitar Center
                                                       •   Sam Ash
                 20

                 15
                                                               Independent
     Total ACV




                 10
                                                               E-Tailer
                 5
                                                               Large Retailer
                 0
                      0   2        4               6       8
                 -5
                                Year

Thursday, July 08, 2010       Opassa Corporation                                   17
• Discovery
      • Online, free PDFs of educational value
      • Instructional videos and tutorials
• Main SEO/SEM Tactics
      • Keywords generated through Wordtracker:
             • Music Education
             • Music Theory
             • MIDI
      • Google Analytics
      • Partnerships with links to our websites
             • Bands of America
             • Youth Education in the Arts
• Investments in website design, graphic designer, flash
  videos, banner ads online

Thursday, July 08, 2010                 Opassa Corporation   18
San Francisco, CA




                          Fort Worth, TX




Thursday, July 08, 2010    Opassa Corporation   19
RESEARCH &
                      OFFICE SPACE                          DEVELOPMENT
                          6,500 ft2                                           PRODUCTION
                                                                                 AREA
                                                                                5,500 ft2

                                                               SALES




                                  BREAK ROOM               RAW MATERIALS           FINISHED GOODS
                                                         & WIP HOLDING AREA         HOLDING AREA




Thursday, July 08, 2010                        Opassa Corporation                               20
Thursday, July 08, 2010   Opassa Corporation   21
Cycle Time
                               Capacity Utilization
                                    Capacity
        100
    250,000
        250

         80
    200,000
        200
Percentage
 Seconds




         60
    150,000
        150
  Units




         40
    100,000
        100

          20
      50,000
          50

              0
              0
                      Year 1   Year 2      Year 3            Year 4   Year 5   Year 6




Thursday, July 08, 2010                 Opassa Corporation                              22
Environmental:
                                    •ISO 14000
                                        Suppliers who uphold global
                                        standards for environmental
                                        sustainability.



                                    VH1 Save the Music:
                                    •Has helped 1.4 million students across
                                    the country by creating more than
                                    1,700 music education programs
                                    •Unique product ID on box
                                    •$10 will be donated for every
                                    registered product ID



Thursday, July 08, 2010   Opassa Corporation                                  23
Retail: $175
                                                                Manufacturing: $88
                                          Retail: $205
                                       Manufacturing: $103

                    Retail: $215
                 Manufacturing: $113




Thursday, July 08, 2010                    Opassa Corporation                        24
• Funding Request
     • First 6 months: $650,000
     • First 3 years: $1,500,000
• Price Sensitivity Analysis
     • We are able to decrease our price up to 15% while remaining NPV positive
     • At Terminal Value 0, Investor IRR= 46%
                                         Net Income
                                          Cash Flows
          12000000
           $6,000,000
          10000000
           $5,000,000
            8000000
            $4,000,000
            6000000
            $3,000,000
                                                                         Net Income
            $2,000,000
            4000000                                                      Cash Flows
            $1,000,000
            2000000

                    0$-
           $(1,000,000) 0        2            44          5 6       78
           -2000000 0       1   2    3
                                           Year
                                                                6

Thursday, July 08, 2010                  Opassa Corporation                           25
• 95% likelihood NPV will above $0




Thursday, July 08, 2010       Opassa Corporation   26
• 90% likelihood of an IRR above 30%




Thursday, July 08, 2010      Opassa Corporation   27
Risks                                 Solutions
      China trade policies,                 Back up suppliers in U.S.
      restrictions, and regulations         Constant communication with
                                            Chinese suppliers
      Damage to the facility                Insurance

      Chase Production Planning             Adequate safety Stock

      Moore’s Law- Quickly outdated High quality supplies
      hardware
      Threats from competition      Price skimming, software
                                    updates


Thursday, July 08, 2010          Opassa Corporation                       28
• High IRR -> high return for investors
• Specific target market ->Word of mouth is important
• Price skimming to achieve increased purchase intent
• Keep costs low to ensure profitability
• Incorporate IS into operations to avoid
  miscommunication
• Continual software updates to stay ahead




Thursday, July 08, 2010   Opassa Corporation        29
Thank You So Much For Coming




Thursday, July 08, 2010          Opassa Corporation   30
ACV                                  ARM9 Micropressor and Moore’s Law
Operations Software                  Awareness Year 1
Administrative Software
Balance Sheet
Cash Flow Statement
Income Statement
Supply Chain
Base Case
Projected Sales in Units
House of Quality
Aggregate Plan
Make/Buy Analysis
Staffing Hierarchy
Base Cases
Purchase Intents
Thursday, July 08, 2010    Opassa Corporation                        31
Thursday, July 08, 2010   Opassa Corporation   32
Thursday, July 08, 2010   Opassa Corporation   33
Year 0       Year 1      Year 2           Year 3       Year 4      Year 5         Year 6


 Adobe Live
  Cycle ES $17,399          $     -      $1,200          $     -      $    -       $1,200      $899
 Adobe Flex     $2,793      $2,093       $598            $     -      $    -       $598        $299

  Autodesk
  Inventor      $5,598      $     -      $598            $     -      $    -       $598        $766
  Autodesk
    Vault       $598        $     -      $598            $     -      $    -       $598        $99

 Autodesk
Manufacturing $11,196       $     -      $598            $      -     $    -       $598        $199

  AutoCAD
  Electrical    $22,392     $     -      $598            $      -     $    -       $598        $599

  Autodesk
  Showcase      $3,998      $      -     $598            $      -     $    -       $598        $ 699

   Total
Operations IT
   Costs      $63,974       $2,093       $4,788          $     -      $    -       $4,788      $3,560

Thursday, July 08, 2010                         Opassa Corporation                                            34
Year 0       Year 1         Year 2            Year 3       Year 4       Year 5          Year 6
   Adobe Master
   Collection             $9,192       $          -   $899           $          -    $    -       $899         $899.00

   ISP (5 Mbps)           $7,199       $7,199         $7,199         $7,199          $7,199       $7,199       $7,199

   Networking Solution    $7,459       $          -   $      -       $699            $    -       $   -        $   -

   Hardware

   Laptops                $11,200      $          -   $11,200        $      -        $11,200      $   -        $   -

   Custom Workstations $66,730         $          -   $66,730        $      -        $76,739      $   -        $   -

   Host Gator Service     $2,628       $2,628         $3,348         $5,859          $5,859       $5,859       $   -

   InMotion VPS           $1,019       $1,019         $1,019         $1,019          $1,019       $1,019       $1,019

   SEM/SEO                $10,400      $10,400        $12,480        $14,976         $22,464      $29,203      $37,964

   Infusion CRM           $4,939       $4,939         $4,939         $9,879          $9,879       $19,759      $39,518

   Microsoft Office Suite $595         $595           $595           $      -        $    -       $595         $595

   Mathematica            $5,198       $      -       $   -          $5,198          $    -       $       -    $      -

   PeaceTree 5 User       $699                        $   -          $      -        $    -       $       -    $       -
   Security Cisco
   Networking             $1,266       $1,266         $1,266         $1,266          $1,266       $1,266       $1,266

   Total Administrative
   IT Costs               $128,525     $28,047        $109,676       $46,095         $135,626     $65,800      $88,461

   Total IT Costs         $192,499     $30,140        $114,464       $46,095         $135,626     $70,588.     $92,021

   No SEO                 $182,099     $19,740        $101,984      $31,119          $113,162     $41,385      $54,057
Thursday, July 08, 2010                                Opassa Corporation                                                      35
Year                     0                  1                 2                  3            4             5              6
  Minimum Cash Balance                $    79,000       $   156,368        $   406,925       $   874,315   $ 1,313,565   $ 1,412,327   $ 1,793,700
  Accounts Receivable                 $         -       $   171,362        $   445,945       $   958,154   $ 1,439,523   $ 1,547,756   $ 1,965,699
  Raw Materials Inventory             $    48,551       $     97,102       $   256,754       $   451,214   $   577,421   $   763,186   $    903,090
  Finished Goods Inventory            $    39,156       $     78,312       $   214,709       $   385,405   $   473,627   $   638,053   $    735,445
  Current Assets                      $   166,707       $    503,146       $ 1,324,335       $ 2,669,090   $ 3,804,137   $ 4,361,324   $ 5,397,936
  Gross Fixed Assets                  $   174,301       $    175,567       $   304,053       $   354,609   $   493,105   $   561,271   $    611,827
  Depreciation                        $             0   $     58,353       $   116,707       $   185,172   $   281,336   $   391,134   $    452,688
  Net Fixed Assets                    $   174,301       $    117,214       $   187,346       $   169,437   $   211,768   $   170,137   $    159,139

  TOTAL ASSETS                        $   341,009       $   620,360        $ 1,511,681       $ 2,838,527   $ 4,015,906   $ 4,531,461   $ 5,557,075


  Accounts Payable                    $             0   $    46,148        $    72,318       $   135,354   $   190,506   $   215,642   $    266,274
  TOTAL Liabilities                   $             0   $    46,148        $    72,318       $   135,354   $   190,506   $   215,642   $    266,274



  Paid in Capital (Cumulative Plug)   $   649,413       $ 1,152,550        $ 1,533,061       $ 1,533,061   $ 1,533,061   $ 1,533,061   $   1,533,061
  Retained Earnings before
  dividends                           $   -308,403      $ -578,338         $   -93,699       $ 2,261,727   $ 6,024,034   $ 9,731,220   $ 14,826,550
  Dividends (Cumulative)              $             0   $           0      $           0     $ 1,091,617   $ 3,731,696   $ 6,948,463   $ 11,068,811
  Total Equity                        $   341,009       $   574,212        $ 1,439,362       $ 2,703,172   $ 3,825,399   $ 4,315,819   $ 5,290,800

  TOTAL LIABILTIES AND EQUITY         $   341,009       $   620,360        $ 1,511,681       $ 2,838,527   $ 4,015,906   $ 4,531,461   $ 5,557,075


  Net Working Capital Balance         $   166,707       $   456,998        $ 1,252,016       $ 2,533,735   $ 3,613,631   $ 4,145,681   $ 5,131,661
  Inventory Days COGS                                        0.09               0.16              0.16          0.14          0.16           0.15

Thursday, July 08, 2010                                                 Opassa Corporation                                                             36
(Thousands of Dollars)                                              Year
                           0          1               2              3              4             5             6

Initial Investment in
Fixed Assets               -174,301
Net Income                 -308,403   -269,934         484,638      2,355,427      3,762,306      3,707,186     5,095,330
+ Depreciation                   0        58,353          58,353         68,465         96,164     109,797          61,554
- Change in New
Working Capital            -166,707   -290,290        -795,018      -1,281,719     -1,079,895      -532,050     -985,980
- Change in Fixed
Assets (enter as neg. #)         0        -1,266      -128,486           -50,556    -138,495          -68,166       -50,556
Net Cash Flow              -475,111   -503,137        -380,511      1,091,617      2,640,079      3,216,766     4,120,348
Terminal Value of
Business *                                                                                        7,148,370
Total Cash Flow            -649,413   -503,137        -380,511      1,091,617      2,640,079     10,365,137     4,120,348
Investor Cash Flows        -519,530   -402,509        -304,409        764,131      1,848,055      7,255,596     2,884,243
Friends and Family
Cash Flows                 -129,882   -100,627            -76,102     327,485        792,023      3,109,541     1,236,104




Thursday, July 08, 2010                      Opassa Corporation                                                         37
Year
                                       1           2               3            4           5           6

       B2B Retail Units Sold            3,808        9,638         21,102       30,773      37,581      46,226
       % Sold through B2B Retail           40%         39%             38%          37%         36%         35%
       B2B Retail Unit Price                94          94              89           89          74          74
        B2B Retail Revenue            358,849     908,158     1,882,780      2,745,580    2,789,249   3,430,924
       B2B Online Units Sold               669       1,759          4,003        6,073       7,722       9,901
       % Sold through B2B Online           7%          7%              7%           7%          7%          8%
       B2B Online Unit Price                94          94              89           89          74          74
        B2B Online Revenue             63,094     165,795         357,212      541,855     573,182     734,913
       Direct Online Units Sold         5,033      13,227          30,096       45,653      58,052      74,432
       % Sold through Direct Online        53%         54%             55%          55%         56%         57%
       Direct Online Unit Price            188         188             178          178         148         148
       Direct Online Revenue          948,566    2,492,586    5,370,358      8,146,297    8,617,272 11,048,763




Thursday, July 08, 2010                      Opassa Corporation                                                   38
Year 0           Year 1           Year 2         Year 3         Year 4            Year 5         Year 6

Total Units Sold                                            9,512            24,625         55,202         82,499            103,356        130,561

Total Revenue                                           $    1,370,510 $      3,566,541 $    7,610,350 $   11,433,733 $      11,979,704 $    15,214,601
                                                             2%               6%             14%            20%               25%            32%

  Variable Costs                                        $     599,262 $       1,069,582 $    2,212,479 $    3,211,266 $       3,662,045 $     4,577,877

  Fixed Production Costs                                $     242,945 $        250,233 $       257,741 $      265,473 $         273,437 $      281,640

Total Cost of Goods Sold                                $     842,208 $       1,319,816 $    2,470,220 $    3,476,739 $       3,935,482 $     4,859,517

Gross Profit                                            $     528,302 $       2,246,724 $    5,140,130 $     7,956,993 $      8,044,221 $    10,355,083

  Start-Up Costs (non balance sheet)   $      308,403

  Fixed Administrative Costs                            $     339,443 $       1,061,265 $    1,335,978 $     2,240,396 $      2,502,043 $     2,925,716

  Marketing Costs                                       $     593,615 $        872,566 $     1,188,138 $     1,443,748 $      1,783,477 $     2,128,764

  Depreciation                                          $         58,353 $       58,353 $       68,464 $          96,164 $      109,797 $       61,554

Earnings Before Tax                    $     (308,403) $     (463,109) $       254,538 $     2,547,549 $     4,176,685 $      3,648,904 $     5,239,047

  Taxes                                $     -          $     -          $       91,633 $      917,117 $     1,503,606 $      1,313,605 $     1,886,057

Net Income                             $     (308,403) $     (463,109) $       162,904 $     1,630,431 $     2,673,078 $      2,335,298 $     3,352,990
COGS % Sales                                                61%               37%            32%            30%               33%            32%
Gross Margin                                                39%               63%            68%            70%               67%            68%
Net Income % Sales                                          -34%              5%             21%            23%               19%            22%
S,G&A % Sales                                               72%               56%            34%            33%               37%            34%

Thursday, July 08, 2010                                             Opassa Corporation                                                                39
Thursday, July 08, 2010   Opassa Corporation   40
Bases Model - Base Case
                                                                Band-Geeks                Teachers                   All-Stars
          Unit Price                                       $           215           $          215            $            215
          Target Users                                              5,160,000                   86,000                     754,000
          Total Adjusted Purchase Intent Trial             40.53%                    42.54%                    45.19%

          Awareness                                        4.43%                     0.77%                     1.79%
          Awareness generated from Competition             0.00%                     0.00%                     0.00%

          Total Awareness                                  4.43%                     0.77%                     1.79%
          ACV                                              9.60%                     9.60%                     9.60%
          Trial Rate (Total Adj Trial x Awareness x ACV)   0.17%                     0.03%                     0.08%

          Trial Users (Trial Rate x Target Users)          8,898                     27                        587
          Units at Trial                                              1                          1                           1
          Total Trial Units                                8,897                     27                        587
          Loss to Competition                              0%                        0%                        0%
          Total Trial Units after loss to Competition      8,897                     27                        587

          Total Trial Units per Year                       9,512
          Revenue realized at Retail Price                 $ 2,045,103
                                                                                              % Distribution                 Unit Price
          Gross Sales from Direct Online                   $ 1,082,268                           52.92%                          $215
          Gross Sales from B2B Online                      $        75,670                       7.04%                           $113
          Gross Sales from B2B Retail                      $       430,377                       40.04%                          $113


          Gross Revenue                                    $ 1,588,316
          Total Marketing Push Expenses                    $       341,943
          Total Marketing Pull Expenses                    $        40,000

Thursday, July 08, 2010                                              Opassa Corporation                                                   41
Year                             1                 2                    3               4              5              6

     Independent                85%       3,805   85%       12,751 45%        14,705   45%   19,870   44%   29,166   44%       35,598
     Internet                   15%       672     15%       2,328     16%     5,214    16%   7,308    17%   11,175   18%       14,251


     Guitar Center              0         -       0         -         32%     10,408   32%   14,084   31%   20,626   31%       25,197


     Sam Ash                    0         -       0         -         7%      2,392    7%    3,218    7%    4,673    7%        5,765

     Our Total Indirect sales   1%        4,477   1%        15,079 1%         32,719   1%    44,481   1%    65,640   1%        80,811




Thursday, July 08, 2010                                         Opassa Corporation                                                      42
Thursday, July 08, 2010   Opassa Corporation   43
Thursday, July 08, 2010   Opassa Corporation   44
Thursday, July 08, 2010   Opassa Corporation   45
Thursday, July 08, 2010   Opassa Corporation   46
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Thursday, July 08, 2010   Opassa Corporation   48
Thursday, July 08, 2010   Opassa Corporation   49
Make                                Buy
                                                         Additional
                          Equipment   Materials                         Other      Materials
                                                           Labor
     Year 1                54,790      14,845                   0      40,300       142,020

     Year 2                   0        49,549               28,735     46,345       474,019

     Year 3                31,075      98,158               29,885     53,297       939,041

     Year 4                31,075     137,608               31,080     61,291      1,316,450

     Year 5                88,865     184,525               64,646     70,485      1,765,286

     Year 6                68,365     230,867               67,232     81,058      2,208,630

      SUM                  274,170    715,552              221,578     352,776

 TOTAL COST                                                           $1,564,076   $6,845,445




Thursday, July 08, 2010                    Opassa Corporation                                   50
CEO
                                                      $130,000



   Operations         Marketing
                                                                    IS Manager   Accountant     Secretary
    Manager           Manager
                                                                     $79,500      $16.90/hr     $29,990
    $79,500               $79,500



  Assembly Line                     Graphic          Mechanical     Electrical    Software
                      Sales Staff                                                                IS Staff
     Worker                         Designer          Engineer      Engineer     Engineer (2)
                          $43,480                                                               $19.12/hr
    $27,630                         $46,750           $62,500        $62,250      $68,500




Thursday, July 08, 2010                        Opassa Corporation                                           51
CEO
                                                                  $158,165



                        Operations              Marketing
      CFO                                                                                       IS Manager      Secretary
                         Manager                Manager
    $96,724                                                                                      $96,724        $36,487
                         $96,724                  $96,724



                          Floor                                    Graphis         Mechanical    Electrical     Software
 Accountant (2)                                Sales Staff (4)                                                                IS Staff (2)
                        Supervisor                               Designer (2)       Engineer    Engineer (2)   Engineer (3)
    $41,123                                       $52,900                                                                      $46,537
                         $49,353                                  $56,879           $76,040      $79,387        $83,340



            Assembly Line
                                Janitorial Staff
             Worker (11)
                                     $27,492
              $33,616




Thursday, July 08, 2010                                             Opassa Corporation                                                  52
Bases Model - Base Case
                                                                                 Year 1
                                                                Band-Geeks      Teachers       All-Stars
                                                            $                $             $
           Unit Price                                       215.00           215.00        215.00

           Target Users                                     5,160,000      86,000        754,000
           Total Adjusted Purchase Intent Trial                     40.53%        42.54%         45.19%

            Awareness                                                 4.43%           0.77%          1.79%
            Awareness generated from Competition                      0.00%           0.00%          0.00%
           Total Awareness                                            4.43%           0.77%          1.79%
           ACV                                                        9.60%           9.60%          9.60%
           Trial Rate (Total Adj Trial x Awareness x ACV)             0.17%           0.03%          0.08%
           Trial Users (Trial Rate x Target Users)                    8,898              27            587

           Units at Trial                                   1               1              1
           Total Trial Units                                         8897.90          27.12          587.08
           Loss to Competition                                           0%             0%              0%
           Total Trial Units after loss to Competition               8897.90          27.12          587.08
           Total Trial Units per Year                                9512.11




Thursday, July 08, 2010                              Opassa Corporation                                       53
Year 2
                                                              Band Geeks         Teachers       All Stars
        TRIAL UNITS
        Target Users                                               5160000             86000      754000
        Total Adjusted Trial (Adj. Def + Adj. Prob)                 40.55%            42.61%      45.24%

        Awareness                                                       8.57%          0.82%       2.36%
        ACV                                                            14.40%         14.40%      14.40%

        Trial Rate (Total trial x Awareness x ACV)           0.005005946         0.000502583 0.001535

        Trial Users (Trial Rate x Target Users)              25830.68219         43.22214528 1157.753
        Units at Trial                                                 1                   1        1
        Total trial Units                                    25830.68219         43.22214528 1157.753
        Loss To Competition
        Total Trial Units Per Year                                                27031.6576
        Revenue:                                                                $5,811,806.38

        Units after loss to competition                                               21625.3
        Final Revenue                                                           $4,649,445.11


Thursday, July 08, 2010                           Opassa Corporation                                        54
Year 3
                                                            Band Geeks           Teachers       All Stars
      TRIAL UNITS
      Target Users                                                   5160000           86000      754000
      Total Adjusted Trial (Adj. Def + Adj. Prob)                     41.89%          44.39%      47.21%

      Awareness                                                       12.85%           0.86%       2.98%
      ACV                                                             23.20%          23.20%      23.20%

      Trial Rate (Total trial x Awareness x ACV)              0.01248436         0.000888759 0.0032661

      Trial Users (Trial Rate x Target Users)                 64419.2946         76.43325886 2462.6402
      Units at Trial                                                   1                   1         1
      Total trial Units                                       64419.2946         76.43325886 2462.6402
      Loss To Competition
      Total Trial Units Per Year                                                 66958.36804
      Revenue:                                                                 $13,726,465.45

      Units after loss to competition                                                 53566.7
      Final Revenue                                                            $10,981,172.36



Thursday, July 08, 2010                         Opassa Corporation                                          55
Year 4
                                                             Band Geeks         Teachers         All Stars
   TRIAL UNITS
   Target Users                                                       5160000           86000      754000
   Total Adjusted Trial (Adj. Def + Adj. Prob)                         41.89%          44.39%      47.21%

   Awareness                                                           17.15%           0.93%       3.61%
   ACV                                                                 27.60%          27.60%      27.60%

   Trial Rate (Total trial x Awareness x ACV)                0.019823588          0.001143078       0.0047

   Trial Users (Trial Rate x Target Users)                   102289.7138          98.30470903     3543.73
   Units at Trial                                                      1                    1           1
   Total trial Units                                         102289.7138          98.30470903     3543.73
   Loss To Competition
   Total Trial Units Per Year                                                     105931.7481
   Revenue:                                                                     $21,716,008.35

   Units after loss to competition                                                     84745.4
   Final Revenue                                                                $17,372,806.68

Thursday, July 08, 2010                          Opassa Corporation                                          56
Year 5

                                                                    Band Geeks       Teachers       All Stars
          TRIAL UNITS
          Target Users                                                   5160000           86000       754000
          Total Adjusted Trial (Adj. Def + Adj. Prob)                     45.43%          48.19%       47.43%

          Awareness                                                       21.45%           1.00%        4.23%
          ACV                                                             32.00%          32.00%       32.00%

          Trial Rate (Total trial x Awareness x ACV)                 0.0311773       0.001546706    0.0033876

          Trial Users (Trial Rate x Target Users)                    160875.06       133.0167366    2554.2808
          Units at Trial                                                     1                 1            1
          Total trial Units                                          160875.06       133.0167366    2554.2808
          Loss To Competition
          Total Trial Units Per Year                                                 163562.3563
          Revenue:                                                                 $28,623,412.34

          Units after loss to competition                                                130849.9
          Final Revenue                                                            $22,898,729.88

Thursday, July 08, 2010                             Opassa Corporation                                          57
Year 6
                                                                Band Geeks        Teachers        All Stars
        TRIAL UNITS
        Target Users                                                   5160000           86000        754000
        Total Adjusted Trial (Adj. Def + Adj. Prob)                     45.43%          48.19%        47.43%

        Awareness                                                       25.75%           1.07%         4.86%
        ACV                                                             34.40%          34.40%        34.40%

        Trial Rate (Total trial x Awareness x ACV)               0.040235643       0.001778751 0.007924642

        Trial Users (Trial Rate x Target Users)                   207615.917       152.9725626 5975.180327
        Units at Trial                                                     1                 1           1
        Total trial Units                                         207615.917       152.9725626 5975.180327
        Loss To Competition
        Total Trial Units Per Year                                                 213744.0699
        Revenue:                                                                 $37,405,212.23

        Units after loss to competition                                                170995.3
        Final Revenue                                                            $29,924,169.79


Thursday, July 08, 2010                           Opassa Corporation                                           58
Year 1                                            Base Case                    Worst Case                   Best Case                Costs

                      Impressi Total      Band-                        Band-                        Band-
Promotion Vehicle     ons      Target Mkt Geeks     Teachers All-Stars Geeks     Teachers All-Stars Geeks   Teachers All-Stars Total Cost    CPM
PULL                            6,000,000
 Branded Guitar Picks           6,000,000
 Branded Drum Sticks            6,000,000
 Branded Bumper
 Stickers                       6,000,000
 Brochures                      6,000,000

 Youtube Videos       75,000   6,000,000 0.125% 0.078% 0.078% 0.100% 0.063% 0.063% 0.167% 0.104% 0.104%

                     33,000,0                                                                         $                                     $
 Banner Ads          00       6,000,000 2.365% 0.039% 0.346% 2.365% 0.039% 0.339% 2.365% 0.039% 0.346%165,000.00                            5.00
                                                                                                      $
 TrueBeat Giveaways 6,553     6,000,000 0.027% 0.027% 0.000% 0.022% 0.022% 0.022% 0.036% 0.036% 0.000%185,000.00
 Large Marching                                                                                       $
 Competitions        666,000 6,000,000 0.944% 0.126% 0.630% 0.708% 0.094% 0.472% 1.417% 0.189% 0.944%95,000.00
 Medium Marching                                                                                      $
 Competitions        222,001 6,000,000 0.315% 0.042% 0.210% 0.218% 0.031% 0.157% 0.472% 0.063% 0.315%65,000.00
 Small Marching                                                                                       $
 Competitions        111,001 6,000,000 0.157% 0.021% 0.105% 0.118% 0.016% 0.079% 0.231% 0.031% 0.154%17,894.44
                                                                                                      $                                     $
 Drum Corps World Ad 28,500 6,000,000 0.083% 0.024% 0.012% 0.067% 0.019% 0.010% 0.111% 0.032% 0.016%9,340.00                                51.88
PUSH                          6,000,000
                                                                                                      $
 POP Display in Key  158,222 6,000,000 0.132% 0.132% 0.132% 0.105% 0.105% 0.105% 0.176% 0.176% 0.176%40,000.00

 Public Relations                           0.28%      0.28%    0.28%    0.28%      0.28%    0.28% 0.283% 0.283% 0.283%
                                                                                                         $
Total                                      4.432% 0.772% 1.795% 3.986% 0.673% 1.530% 5.258% 0.953% 2.338%577,234.44
Combined                                   6.999%               6.189%               8.549%

Thursday, July 08, 2010                                        Opassa Corporation                                                                   59
Year 6                                             Base Case                  Worst Case                 Best Case                Costs

                        Impressi Total      Band-                      Band-                      Band-
 Promotion Vehicle      ons      Target Mkt Geeks   Teachers All-Stars Geeks   Teachers All-Stars Geeks   Teachers All-Stars Total Cost    CPM
 PULL                             6,279,570
 Branded Guitar Picks             6,279,570
 Branded Drum Sticks              6,279,570
 Branded Bumper
 Stickers                        6,279,570
 YouTube Videos
 Release                  75000 6,279,570 0.119% 0.075% 0.075% 0.096% 0.060% 0.060% 0.159% 0.100% 0.100%
                        33,000,0                                                                             $                             $
 Banner Ads                   00 6,279,570 2.260% 0.038% 0.330% 2.260% 0.038% 0.330% 2.260% 0.038% 0.330%165,000.00                        5.00
 Large Marching                                                                                              $
 Competitions*           666,000 6,279,570 0.944% 0.126% 0.630% 0.708% 0.094% 0.472% 1.417% 0.189% 0.944%185,000.00
 Medium Marching                                                                                             $
 Competitions*           222,001 6,279,570 0.315% 0.042% 0.210% 0.218% 0.031% 0.157% 0.472% 0.063% 0.315%95,000.00
 Small Marching                                                                                              $
 Competitions*           111,001 6,279,570 0.157% 0.021% 0.105% 0.118% 0.016% 0.079% 0.231% 0.031% 0.154%65,000.00
                                                                                                             $                             $
 Drum Corps World Ad      28500 6,279,570 0.079% 0.023% 0.011% 0.064% 0.018% 0.009% 0.106% 0.030% 0.015%9,340.00                           51.88
                                                                                                             $
                                                                                                             1,273,859.0
 Student online Discount 3750.89 6,279,570                                                                   3
 PUSH                            6,279,570
 POP Display in key                                                                                          $
 Retailers               158222 6,279,570 0.126% 0.126% 0.126% 0.101% 0.101% 0.101% 0.168% 0.168% 0.168%40,000.00
                                 6,279,570
  Public Relations               6,279,570 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283%
  Word of Mouth
  Cumulative                     6,279,570 21.500% 0.358% 3.142% 21.500% 0.358% 3.142% 21.500% 0.358% 3.142%
                                                                                                             $
                                                                                                             1,833,199.0
 Total                                     25.784% 1.091% 4.911% 25.347% 0.999% 4.633% 26.596% 1.259% 5.451%3
 Combined                                  31.787%               30.979%               33.307%
Thursday, July 08, 2010                                     Opassa Corporation                                                                     60
Cumulative PI: All Stars                                                        Cumulative PI: Teachers
       60.00%                                                                 60.00%

                               y = -1E-07x3 + 6E-05x2 - 0.008x + 0.947
       50.00%                                 R² = 0.998
                                                                              50.00%


       40.00%
                                                                              40.00%


       30.00%
                                                                              30.00%


       20.00%
                                                                              20.00%

       10.00%

                                                                              10.00%

        0.00%
                                                                                                  y = -8E-08x3 + 3E-05x2 - 0.004x + 0.706
                $-   $100.00      $200.00     $300.00     $400.00                                                R² = 0.999
                                                                               0.00%
                                Cumulative PI                                          $-      $100.00     $200.00       $300.00      $400.00

                                Poly. (Cumulative                                                                  Poly.…
                                PI )



Thursday, July 08, 2010                                             Opassa Corporation                                                          61
Cumulative PI: Band Geeks                                         Cumulative Purchase Intent
         50.00%                                                             60.00%



                                                                            50.00%
         40.00%


                                                                            40.00%
         30.00%

                                                                            30.00%

         20.00%
                                                                            20.00%


         10.00%
                                                                            10.00%
                       y = -8E-08x3 + 3E-05x2 - 0.004x + 0.659
                                      R² = 0.999                                          y = -8E-08x3 + 3E-05x2 - 0.004x + 0.686
                                                                                                         R² = 0.999
          0.00%                                                              0.00%
                  $-      $100.00    $200.00    $300.00          $400.00             $-     $100.00      $200.00        $300.00     $400.00
                                         Poly.…
                                                                                                               Poly.…




Thursday, July 08, 2010                                           Opassa Corporation                                                          62
Thursday, July 08, 2010   Opassa Corporation   63

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TrueBeat Final Presentation

  • 1.
  • 2. Product Overview • Request for Funding • Segments • Selling Strategy • Process Flow • CSR Initiative • Financial Analysis Thursday, July 08, 2010 Opassa Corporation 2
  • 3. • TrueBeat: The Musicians’ Companion • A fully colored LCD screen that enables performers to see live scores during playback • Recording from other digital devices using the MIDI-IN and MIDI-OUT jacks • Customizable tempos with different queues and paces ranging from 30 to 470 BPM • A built in microphone allowing users to tune their instruments with single notes or specified chords • Amplified playback to any speaker or microphone accessory with its standard audio input and output • Competition Yamaha ClickStation Roland Dr. Beat 90 Korg Beatlab Retail Price: $179 Retail Price: $222 Retail Price: $130 Thursday, July 08, 2010 Opassa Corporation 3
  • 4. Thursday, July 08, 2010 Opassa Corporation 4
  • 5. • NPV: $3.2 Million Net Present Value: • Investor IRR: 71% Project $4,737,487 Investors $3,182,947 • Terminal Value: $7.1 Million $1,554,540 Friends, Family and Mgmt • Paid in Capital: $2.15 Million IRR: Project 77% Investors 71% Friends, Family 96% and Mgmt Thursday, July 08, 2010 Opassa Corporation 5
  • 6. Segmentation Market Breakdown Teachers 86,000 1% All-Stars Internet 754,000 Dealers 13% 14% Band Geeks Indepen. 5,160,00 Dealers 0 46% 86% Large Retail Dealers 40% Thursday, July 08, 2010 Opassa Corporation 6
  • 7. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Branded Guitar Picks Branded Drum Sticks Branded Bumper Stickers Brochures YouTube Videos Release Banner Ads TrueBeat Giveaway Large Marching Competitions Medium Marching Competitions Small Marching Competitions Drum Corps World Ad Thursday, July 08, 2010 Opassa Corporation 7
  • 8. Thursday, July 08, 2010 Opassa Corporation 8
  • 9. Thursday, July 08, 2010 Opassa Corporation 9
  • 10. Thursday, July 08, 2010 Opassa Corporation 10
  • 11. Thursday, July 08, 2010 Opassa Corporation 11
  • 12. Thursday, July 08, 2010 Opassa Corporation 12
  • 13. Thursday, July 08, 2010 Opassa Corporation 13
  • 14. Thursday, July 08, 2010 Opassa Corporation 14
  • 15. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec POP Display in key Retailers Thursday, July 08, 2010 Opassa Corporation 15
  • 16. Sales by Channel 100 90 80 70 60 Percent 50 40 30 20 10 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 % Direct Online % B2B Online % B2B Retail Thursday, July 08, 2010 Opassa Corporation 16
  • 17. Yearly ACV Indirect Selling • Independent Retailers 25 • Online E-tailers • Guitar Center • Sam Ash 20 15 Independent Total ACV 10 E-Tailer 5 Large Retailer 0 0 2 4 6 8 -5 Year Thursday, July 08, 2010 Opassa Corporation 17
  • 18. • Discovery • Online, free PDFs of educational value • Instructional videos and tutorials • Main SEO/SEM Tactics • Keywords generated through Wordtracker: • Music Education • Music Theory • MIDI • Google Analytics • Partnerships with links to our websites • Bands of America • Youth Education in the Arts • Investments in website design, graphic designer, flash videos, banner ads online Thursday, July 08, 2010 Opassa Corporation 18
  • 19. San Francisco, CA Fort Worth, TX Thursday, July 08, 2010 Opassa Corporation 19
  • 20. RESEARCH & OFFICE SPACE DEVELOPMENT 6,500 ft2 PRODUCTION AREA 5,500 ft2 SALES BREAK ROOM RAW MATERIALS FINISHED GOODS & WIP HOLDING AREA HOLDING AREA Thursday, July 08, 2010 Opassa Corporation 20
  • 21. Thursday, July 08, 2010 Opassa Corporation 21
  • 22. Cycle Time Capacity Utilization Capacity 100 250,000 250 80 200,000 200 Percentage Seconds 60 150,000 150 Units 40 100,000 100 20 50,000 50 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Thursday, July 08, 2010 Opassa Corporation 22
  • 23. Environmental: •ISO 14000 Suppliers who uphold global standards for environmental sustainability. VH1 Save the Music: •Has helped 1.4 million students across the country by creating more than 1,700 music education programs •Unique product ID on box •$10 will be donated for every registered product ID Thursday, July 08, 2010 Opassa Corporation 23
  • 24. Retail: $175 Manufacturing: $88 Retail: $205 Manufacturing: $103 Retail: $215 Manufacturing: $113 Thursday, July 08, 2010 Opassa Corporation 24
  • 25. • Funding Request • First 6 months: $650,000 • First 3 years: $1,500,000 • Price Sensitivity Analysis • We are able to decrease our price up to 15% while remaining NPV positive • At Terminal Value 0, Investor IRR= 46% Net Income Cash Flows 12000000 $6,000,000 10000000 $5,000,000 8000000 $4,000,000 6000000 $3,000,000 Net Income $2,000,000 4000000 Cash Flows $1,000,000 2000000 0$- $(1,000,000) 0 2 44 5 6 78 -2000000 0 1 2 3 Year 6 Thursday, July 08, 2010 Opassa Corporation 25
  • 26. • 95% likelihood NPV will above $0 Thursday, July 08, 2010 Opassa Corporation 26
  • 27. • 90% likelihood of an IRR above 30% Thursday, July 08, 2010 Opassa Corporation 27
  • 28. Risks Solutions China trade policies, Back up suppliers in U.S. restrictions, and regulations Constant communication with Chinese suppliers Damage to the facility Insurance Chase Production Planning Adequate safety Stock Moore’s Law- Quickly outdated High quality supplies hardware Threats from competition Price skimming, software updates Thursday, July 08, 2010 Opassa Corporation 28
  • 29. • High IRR -> high return for investors • Specific target market ->Word of mouth is important • Price skimming to achieve increased purchase intent • Keep costs low to ensure profitability • Incorporate IS into operations to avoid miscommunication • Continual software updates to stay ahead Thursday, July 08, 2010 Opassa Corporation 29
  • 30. Thank You So Much For Coming Thursday, July 08, 2010 Opassa Corporation 30
  • 31. ACV ARM9 Micropressor and Moore’s Law Operations Software Awareness Year 1 Administrative Software Balance Sheet Cash Flow Statement Income Statement Supply Chain Base Case Projected Sales in Units House of Quality Aggregate Plan Make/Buy Analysis Staffing Hierarchy Base Cases Purchase Intents Thursday, July 08, 2010 Opassa Corporation 31
  • 32. Thursday, July 08, 2010 Opassa Corporation 32
  • 33. Thursday, July 08, 2010 Opassa Corporation 33
  • 34. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Adobe Live Cycle ES $17,399 $ - $1,200 $ - $ - $1,200 $899 Adobe Flex $2,793 $2,093 $598 $ - $ - $598 $299 Autodesk Inventor $5,598 $ - $598 $ - $ - $598 $766 Autodesk Vault $598 $ - $598 $ - $ - $598 $99 Autodesk Manufacturing $11,196 $ - $598 $ - $ - $598 $199 AutoCAD Electrical $22,392 $ - $598 $ - $ - $598 $599 Autodesk Showcase $3,998 $ - $598 $ - $ - $598 $ 699 Total Operations IT Costs $63,974 $2,093 $4,788 $ - $ - $4,788 $3,560 Thursday, July 08, 2010 Opassa Corporation 34
  • 35. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Adobe Master Collection $9,192 $ - $899 $ - $ - $899 $899.00 ISP (5 Mbps) $7,199 $7,199 $7,199 $7,199 $7,199 $7,199 $7,199 Networking Solution $7,459 $ - $ - $699 $ - $ - $ - Hardware Laptops $11,200 $ - $11,200 $ - $11,200 $ - $ - Custom Workstations $66,730 $ - $66,730 $ - $76,739 $ - $ - Host Gator Service $2,628 $2,628 $3,348 $5,859 $5,859 $5,859 $ - InMotion VPS $1,019 $1,019 $1,019 $1,019 $1,019 $1,019 $1,019 SEM/SEO $10,400 $10,400 $12,480 $14,976 $22,464 $29,203 $37,964 Infusion CRM $4,939 $4,939 $4,939 $9,879 $9,879 $19,759 $39,518 Microsoft Office Suite $595 $595 $595 $ - $ - $595 $595 Mathematica $5,198 $ - $ - $5,198 $ - $ - $ - PeaceTree 5 User $699 $ - $ - $ - $ - $ - Security Cisco Networking $1,266 $1,266 $1,266 $1,266 $1,266 $1,266 $1,266 Total Administrative IT Costs $128,525 $28,047 $109,676 $46,095 $135,626 $65,800 $88,461 Total IT Costs $192,499 $30,140 $114,464 $46,095 $135,626 $70,588. $92,021 No SEO $182,099 $19,740 $101,984 $31,119 $113,162 $41,385 $54,057 Thursday, July 08, 2010 Opassa Corporation 35
  • 36. Year 0 1 2 3 4 5 6 Minimum Cash Balance $ 79,000 $ 156,368 $ 406,925 $ 874,315 $ 1,313,565 $ 1,412,327 $ 1,793,700 Accounts Receivable $ - $ 171,362 $ 445,945 $ 958,154 $ 1,439,523 $ 1,547,756 $ 1,965,699 Raw Materials Inventory $ 48,551 $ 97,102 $ 256,754 $ 451,214 $ 577,421 $ 763,186 $ 903,090 Finished Goods Inventory $ 39,156 $ 78,312 $ 214,709 $ 385,405 $ 473,627 $ 638,053 $ 735,445 Current Assets $ 166,707 $ 503,146 $ 1,324,335 $ 2,669,090 $ 3,804,137 $ 4,361,324 $ 5,397,936 Gross Fixed Assets $ 174,301 $ 175,567 $ 304,053 $ 354,609 $ 493,105 $ 561,271 $ 611,827 Depreciation $ 0 $ 58,353 $ 116,707 $ 185,172 $ 281,336 $ 391,134 $ 452,688 Net Fixed Assets $ 174,301 $ 117,214 $ 187,346 $ 169,437 $ 211,768 $ 170,137 $ 159,139 TOTAL ASSETS $ 341,009 $ 620,360 $ 1,511,681 $ 2,838,527 $ 4,015,906 $ 4,531,461 $ 5,557,075 Accounts Payable $ 0 $ 46,148 $ 72,318 $ 135,354 $ 190,506 $ 215,642 $ 266,274 TOTAL Liabilities $ 0 $ 46,148 $ 72,318 $ 135,354 $ 190,506 $ 215,642 $ 266,274 Paid in Capital (Cumulative Plug) $ 649,413 $ 1,152,550 $ 1,533,061 $ 1,533,061 $ 1,533,061 $ 1,533,061 $ 1,533,061 Retained Earnings before dividends $ -308,403 $ -578,338 $ -93,699 $ 2,261,727 $ 6,024,034 $ 9,731,220 $ 14,826,550 Dividends (Cumulative) $ 0 $ 0 $ 0 $ 1,091,617 $ 3,731,696 $ 6,948,463 $ 11,068,811 Total Equity $ 341,009 $ 574,212 $ 1,439,362 $ 2,703,172 $ 3,825,399 $ 4,315,819 $ 5,290,800 TOTAL LIABILTIES AND EQUITY $ 341,009 $ 620,360 $ 1,511,681 $ 2,838,527 $ 4,015,906 $ 4,531,461 $ 5,557,075 Net Working Capital Balance $ 166,707 $ 456,998 $ 1,252,016 $ 2,533,735 $ 3,613,631 $ 4,145,681 $ 5,131,661 Inventory Days COGS 0.09 0.16 0.16 0.14 0.16 0.15 Thursday, July 08, 2010 Opassa Corporation 36
  • 37. (Thousands of Dollars) Year 0 1 2 3 4 5 6 Initial Investment in Fixed Assets -174,301 Net Income -308,403 -269,934 484,638 2,355,427 3,762,306 3,707,186 5,095,330 + Depreciation 0 58,353 58,353 68,465 96,164 109,797 61,554 - Change in New Working Capital -166,707 -290,290 -795,018 -1,281,719 -1,079,895 -532,050 -985,980 - Change in Fixed Assets (enter as neg. #) 0 -1,266 -128,486 -50,556 -138,495 -68,166 -50,556 Net Cash Flow -475,111 -503,137 -380,511 1,091,617 2,640,079 3,216,766 4,120,348 Terminal Value of Business * 7,148,370 Total Cash Flow -649,413 -503,137 -380,511 1,091,617 2,640,079 10,365,137 4,120,348 Investor Cash Flows -519,530 -402,509 -304,409 764,131 1,848,055 7,255,596 2,884,243 Friends and Family Cash Flows -129,882 -100,627 -76,102 327,485 792,023 3,109,541 1,236,104 Thursday, July 08, 2010 Opassa Corporation 37
  • 38. Year 1 2 3 4 5 6 B2B Retail Units Sold 3,808 9,638 21,102 30,773 37,581 46,226 % Sold through B2B Retail 40% 39% 38% 37% 36% 35% B2B Retail Unit Price 94 94 89 89 74 74 B2B Retail Revenue 358,849 908,158 1,882,780 2,745,580 2,789,249 3,430,924 B2B Online Units Sold 669 1,759 4,003 6,073 7,722 9,901 % Sold through B2B Online 7% 7% 7% 7% 7% 8% B2B Online Unit Price 94 94 89 89 74 74 B2B Online Revenue 63,094 165,795 357,212 541,855 573,182 734,913 Direct Online Units Sold 5,033 13,227 30,096 45,653 58,052 74,432 % Sold through Direct Online 53% 54% 55% 55% 56% 57% Direct Online Unit Price 188 188 178 178 148 148 Direct Online Revenue 948,566 2,492,586 5,370,358 8,146,297 8,617,272 11,048,763 Thursday, July 08, 2010 Opassa Corporation 38
  • 39. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Units Sold 9,512 24,625 55,202 82,499 103,356 130,561 Total Revenue $ 1,370,510 $ 3,566,541 $ 7,610,350 $ 11,433,733 $ 11,979,704 $ 15,214,601 2% 6% 14% 20% 25% 32% Variable Costs $ 599,262 $ 1,069,582 $ 2,212,479 $ 3,211,266 $ 3,662,045 $ 4,577,877 Fixed Production Costs $ 242,945 $ 250,233 $ 257,741 $ 265,473 $ 273,437 $ 281,640 Total Cost of Goods Sold $ 842,208 $ 1,319,816 $ 2,470,220 $ 3,476,739 $ 3,935,482 $ 4,859,517 Gross Profit $ 528,302 $ 2,246,724 $ 5,140,130 $ 7,956,993 $ 8,044,221 $ 10,355,083 Start-Up Costs (non balance sheet) $ 308,403 Fixed Administrative Costs $ 339,443 $ 1,061,265 $ 1,335,978 $ 2,240,396 $ 2,502,043 $ 2,925,716 Marketing Costs $ 593,615 $ 872,566 $ 1,188,138 $ 1,443,748 $ 1,783,477 $ 2,128,764 Depreciation $ 58,353 $ 58,353 $ 68,464 $ 96,164 $ 109,797 $ 61,554 Earnings Before Tax $ (308,403) $ (463,109) $ 254,538 $ 2,547,549 $ 4,176,685 $ 3,648,904 $ 5,239,047 Taxes $ - $ - $ 91,633 $ 917,117 $ 1,503,606 $ 1,313,605 $ 1,886,057 Net Income $ (308,403) $ (463,109) $ 162,904 $ 1,630,431 $ 2,673,078 $ 2,335,298 $ 3,352,990 COGS % Sales 61% 37% 32% 30% 33% 32% Gross Margin 39% 63% 68% 70% 67% 68% Net Income % Sales -34% 5% 21% 23% 19% 22% S,G&A % Sales 72% 56% 34% 33% 37% 34% Thursday, July 08, 2010 Opassa Corporation 39
  • 40. Thursday, July 08, 2010 Opassa Corporation 40
  • 41. Bases Model - Base Case Band-Geeks Teachers All-Stars Unit Price $ 215 $ 215 $ 215 Target Users 5,160,000 86,000 754,000 Total Adjusted Purchase Intent Trial 40.53% 42.54% 45.19% Awareness 4.43% 0.77% 1.79% Awareness generated from Competition 0.00% 0.00% 0.00% Total Awareness 4.43% 0.77% 1.79% ACV 9.60% 9.60% 9.60% Trial Rate (Total Adj Trial x Awareness x ACV) 0.17% 0.03% 0.08% Trial Users (Trial Rate x Target Users) 8,898 27 587 Units at Trial 1 1 1 Total Trial Units 8,897 27 587 Loss to Competition 0% 0% 0% Total Trial Units after loss to Competition 8,897 27 587 Total Trial Units per Year 9,512 Revenue realized at Retail Price $ 2,045,103 % Distribution Unit Price Gross Sales from Direct Online $ 1,082,268 52.92% $215 Gross Sales from B2B Online $ 75,670 7.04% $113 Gross Sales from B2B Retail $ 430,377 40.04% $113 Gross Revenue $ 1,588,316 Total Marketing Push Expenses $ 341,943 Total Marketing Pull Expenses $ 40,000 Thursday, July 08, 2010 Opassa Corporation 41
  • 42. Year 1 2 3 4 5 6 Independent 85% 3,805 85% 12,751 45% 14,705 45% 19,870 44% 29,166 44% 35,598 Internet 15% 672 15% 2,328 16% 5,214 16% 7,308 17% 11,175 18% 14,251 Guitar Center 0 - 0 - 32% 10,408 32% 14,084 31% 20,626 31% 25,197 Sam Ash 0 - 0 - 7% 2,392 7% 3,218 7% 4,673 7% 5,765 Our Total Indirect sales 1% 4,477 1% 15,079 1% 32,719 1% 44,481 1% 65,640 1% 80,811 Thursday, July 08, 2010 Opassa Corporation 42
  • 43. Thursday, July 08, 2010 Opassa Corporation 43
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  • 49. Thursday, July 08, 2010 Opassa Corporation 49
  • 50. Make Buy Additional Equipment Materials Other Materials Labor Year 1 54,790 14,845 0 40,300 142,020 Year 2 0 49,549 28,735 46,345 474,019 Year 3 31,075 98,158 29,885 53,297 939,041 Year 4 31,075 137,608 31,080 61,291 1,316,450 Year 5 88,865 184,525 64,646 70,485 1,765,286 Year 6 68,365 230,867 67,232 81,058 2,208,630 SUM 274,170 715,552 221,578 352,776 TOTAL COST $1,564,076 $6,845,445 Thursday, July 08, 2010 Opassa Corporation 50
  • 51. CEO $130,000 Operations Marketing IS Manager Accountant Secretary Manager Manager $79,500 $16.90/hr $29,990 $79,500 $79,500 Assembly Line Graphic Mechanical Electrical Software Sales Staff IS Staff Worker Designer Engineer Engineer Engineer (2) $43,480 $19.12/hr $27,630 $46,750 $62,500 $62,250 $68,500 Thursday, July 08, 2010 Opassa Corporation 51
  • 52. CEO $158,165 Operations Marketing CFO IS Manager Secretary Manager Manager $96,724 $96,724 $36,487 $96,724 $96,724 Floor Graphis Mechanical Electrical Software Accountant (2) Sales Staff (4) IS Staff (2) Supervisor Designer (2) Engineer Engineer (2) Engineer (3) $41,123 $52,900 $46,537 $49,353 $56,879 $76,040 $79,387 $83,340 Assembly Line Janitorial Staff Worker (11) $27,492 $33,616 Thursday, July 08, 2010 Opassa Corporation 52
  • 53. Bases Model - Base Case Year 1 Band-Geeks Teachers All-Stars $ $ $ Unit Price 215.00 215.00 215.00 Target Users 5,160,000 86,000 754,000 Total Adjusted Purchase Intent Trial 40.53% 42.54% 45.19% Awareness 4.43% 0.77% 1.79% Awareness generated from Competition 0.00% 0.00% 0.00% Total Awareness 4.43% 0.77% 1.79% ACV 9.60% 9.60% 9.60% Trial Rate (Total Adj Trial x Awareness x ACV) 0.17% 0.03% 0.08% Trial Users (Trial Rate x Target Users) 8,898 27 587 Units at Trial 1 1 1 Total Trial Units 8897.90 27.12 587.08 Loss to Competition 0% 0% 0% Total Trial Units after loss to Competition 8897.90 27.12 587.08 Total Trial Units per Year 9512.11 Thursday, July 08, 2010 Opassa Corporation 53
  • 54. Year 2 Band Geeks Teachers All Stars TRIAL UNITS Target Users 5160000 86000 754000 Total Adjusted Trial (Adj. Def + Adj. Prob) 40.55% 42.61% 45.24% Awareness 8.57% 0.82% 2.36% ACV 14.40% 14.40% 14.40% Trial Rate (Total trial x Awareness x ACV) 0.005005946 0.000502583 0.001535 Trial Users (Trial Rate x Target Users) 25830.68219 43.22214528 1157.753 Units at Trial 1 1 1 Total trial Units 25830.68219 43.22214528 1157.753 Loss To Competition Total Trial Units Per Year 27031.6576 Revenue: $5,811,806.38 Units after loss to competition 21625.3 Final Revenue $4,649,445.11 Thursday, July 08, 2010 Opassa Corporation 54
  • 55. Year 3 Band Geeks Teachers All Stars TRIAL UNITS Target Users 5160000 86000 754000 Total Adjusted Trial (Adj. Def + Adj. Prob) 41.89% 44.39% 47.21% Awareness 12.85% 0.86% 2.98% ACV 23.20% 23.20% 23.20% Trial Rate (Total trial x Awareness x ACV) 0.01248436 0.000888759 0.0032661 Trial Users (Trial Rate x Target Users) 64419.2946 76.43325886 2462.6402 Units at Trial 1 1 1 Total trial Units 64419.2946 76.43325886 2462.6402 Loss To Competition Total Trial Units Per Year 66958.36804 Revenue: $13,726,465.45 Units after loss to competition 53566.7 Final Revenue $10,981,172.36 Thursday, July 08, 2010 Opassa Corporation 55
  • 56. Year 4 Band Geeks Teachers All Stars TRIAL UNITS Target Users 5160000 86000 754000 Total Adjusted Trial (Adj. Def + Adj. Prob) 41.89% 44.39% 47.21% Awareness 17.15% 0.93% 3.61% ACV 27.60% 27.60% 27.60% Trial Rate (Total trial x Awareness x ACV) 0.019823588 0.001143078 0.0047 Trial Users (Trial Rate x Target Users) 102289.7138 98.30470903 3543.73 Units at Trial 1 1 1 Total trial Units 102289.7138 98.30470903 3543.73 Loss To Competition Total Trial Units Per Year 105931.7481 Revenue: $21,716,008.35 Units after loss to competition 84745.4 Final Revenue $17,372,806.68 Thursday, July 08, 2010 Opassa Corporation 56
  • 57. Year 5 Band Geeks Teachers All Stars TRIAL UNITS Target Users 5160000 86000 754000 Total Adjusted Trial (Adj. Def + Adj. Prob) 45.43% 48.19% 47.43% Awareness 21.45% 1.00% 4.23% ACV 32.00% 32.00% 32.00% Trial Rate (Total trial x Awareness x ACV) 0.0311773 0.001546706 0.0033876 Trial Users (Trial Rate x Target Users) 160875.06 133.0167366 2554.2808 Units at Trial 1 1 1 Total trial Units 160875.06 133.0167366 2554.2808 Loss To Competition Total Trial Units Per Year 163562.3563 Revenue: $28,623,412.34 Units after loss to competition 130849.9 Final Revenue $22,898,729.88 Thursday, July 08, 2010 Opassa Corporation 57
  • 58. Year 6 Band Geeks Teachers All Stars TRIAL UNITS Target Users 5160000 86000 754000 Total Adjusted Trial (Adj. Def + Adj. Prob) 45.43% 48.19% 47.43% Awareness 25.75% 1.07% 4.86% ACV 34.40% 34.40% 34.40% Trial Rate (Total trial x Awareness x ACV) 0.040235643 0.001778751 0.007924642 Trial Users (Trial Rate x Target Users) 207615.917 152.9725626 5975.180327 Units at Trial 1 1 1 Total trial Units 207615.917 152.9725626 5975.180327 Loss To Competition Total Trial Units Per Year 213744.0699 Revenue: $37,405,212.23 Units after loss to competition 170995.3 Final Revenue $29,924,169.79 Thursday, July 08, 2010 Opassa Corporation 58
  • 59. Year 1 Base Case Worst Case Best Case Costs Impressi Total Band- Band- Band- Promotion Vehicle ons Target Mkt Geeks Teachers All-Stars Geeks Teachers All-Stars Geeks Teachers All-Stars Total Cost CPM PULL 6,000,000 Branded Guitar Picks 6,000,000 Branded Drum Sticks 6,000,000 Branded Bumper Stickers 6,000,000 Brochures 6,000,000 Youtube Videos 75,000 6,000,000 0.125% 0.078% 0.078% 0.100% 0.063% 0.063% 0.167% 0.104% 0.104% 33,000,0 $ $ Banner Ads 00 6,000,000 2.365% 0.039% 0.346% 2.365% 0.039% 0.339% 2.365% 0.039% 0.346%165,000.00 5.00 $ TrueBeat Giveaways 6,553 6,000,000 0.027% 0.027% 0.000% 0.022% 0.022% 0.022% 0.036% 0.036% 0.000%185,000.00 Large Marching $ Competitions 666,000 6,000,000 0.944% 0.126% 0.630% 0.708% 0.094% 0.472% 1.417% 0.189% 0.944%95,000.00 Medium Marching $ Competitions 222,001 6,000,000 0.315% 0.042% 0.210% 0.218% 0.031% 0.157% 0.472% 0.063% 0.315%65,000.00 Small Marching $ Competitions 111,001 6,000,000 0.157% 0.021% 0.105% 0.118% 0.016% 0.079% 0.231% 0.031% 0.154%17,894.44 $ $ Drum Corps World Ad 28,500 6,000,000 0.083% 0.024% 0.012% 0.067% 0.019% 0.010% 0.111% 0.032% 0.016%9,340.00 51.88 PUSH 6,000,000 $ POP Display in Key 158,222 6,000,000 0.132% 0.132% 0.132% 0.105% 0.105% 0.105% 0.176% 0.176% 0.176%40,000.00 Public Relations 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.283% 0.283% 0.283% $ Total 4.432% 0.772% 1.795% 3.986% 0.673% 1.530% 5.258% 0.953% 2.338%577,234.44 Combined 6.999% 6.189% 8.549% Thursday, July 08, 2010 Opassa Corporation 59
  • 60. Year 6 Base Case Worst Case Best Case Costs Impressi Total Band- Band- Band- Promotion Vehicle ons Target Mkt Geeks Teachers All-Stars Geeks Teachers All-Stars Geeks Teachers All-Stars Total Cost CPM PULL 6,279,570 Branded Guitar Picks 6,279,570 Branded Drum Sticks 6,279,570 Branded Bumper Stickers 6,279,570 YouTube Videos Release 75000 6,279,570 0.119% 0.075% 0.075% 0.096% 0.060% 0.060% 0.159% 0.100% 0.100% 33,000,0 $ $ Banner Ads 00 6,279,570 2.260% 0.038% 0.330% 2.260% 0.038% 0.330% 2.260% 0.038% 0.330%165,000.00 5.00 Large Marching $ Competitions* 666,000 6,279,570 0.944% 0.126% 0.630% 0.708% 0.094% 0.472% 1.417% 0.189% 0.944%185,000.00 Medium Marching $ Competitions* 222,001 6,279,570 0.315% 0.042% 0.210% 0.218% 0.031% 0.157% 0.472% 0.063% 0.315%95,000.00 Small Marching $ Competitions* 111,001 6,279,570 0.157% 0.021% 0.105% 0.118% 0.016% 0.079% 0.231% 0.031% 0.154%65,000.00 $ $ Drum Corps World Ad 28500 6,279,570 0.079% 0.023% 0.011% 0.064% 0.018% 0.009% 0.106% 0.030% 0.015%9,340.00 51.88 $ 1,273,859.0 Student online Discount 3750.89 6,279,570 3 PUSH 6,279,570 POP Display in key $ Retailers 158222 6,279,570 0.126% 0.126% 0.126% 0.101% 0.101% 0.101% 0.168% 0.168% 0.168%40,000.00 6,279,570 Public Relations 6,279,570 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% 0.283% Word of Mouth Cumulative 6,279,570 21.500% 0.358% 3.142% 21.500% 0.358% 3.142% 21.500% 0.358% 3.142% $ 1,833,199.0 Total 25.784% 1.091% 4.911% 25.347% 0.999% 4.633% 26.596% 1.259% 5.451%3 Combined 31.787% 30.979% 33.307% Thursday, July 08, 2010 Opassa Corporation 60
  • 61. Cumulative PI: All Stars Cumulative PI: Teachers 60.00% 60.00% y = -1E-07x3 + 6E-05x2 - 0.008x + 0.947 50.00% R² = 0.998 50.00% 40.00% 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% y = -8E-08x3 + 3E-05x2 - 0.004x + 0.706 $- $100.00 $200.00 $300.00 $400.00 R² = 0.999 0.00% Cumulative PI $- $100.00 $200.00 $300.00 $400.00 Poly. (Cumulative Poly.… PI ) Thursday, July 08, 2010 Opassa Corporation 61
  • 62. Cumulative PI: Band Geeks Cumulative Purchase Intent 50.00% 60.00% 50.00% 40.00% 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% y = -8E-08x3 + 3E-05x2 - 0.004x + 0.659 R² = 0.999 y = -8E-08x3 + 3E-05x2 - 0.004x + 0.686 R² = 0.999 0.00% 0.00% $- $100.00 $200.00 $300.00 $400.00 $- $100.00 $200.00 $300.00 $400.00 Poly.… Poly.… Thursday, July 08, 2010 Opassa Corporation 62
  • 63. Thursday, July 08, 2010 Opassa Corporation 63

Editor's Notes

  1. $1.5 Million over 3 years
  2. Insert Color Key