Table of Contents

Executive Summary .......................................................................................................................1 Financial Statements ......................................................................................................................3 Balance Sheet ...............................................................................................................................3 Income Statement .........................................................................................................................4 Statement of Cash Flows ..............................................................................................................5 Statement of Retained Earnings ...................................................................................................6 Statement of Shareholders Equity ...............................................................................................7 General Journal .............................................................................................................................8 General Journal ............................................................................................................................8 General Journal Notes ................................................................................................................13 Ratio Analysis ...............................................................................................................................14 Marketing & Operations .............................................................................................................17 Five-Year Marketing and Operations Plan .................................................................................17 Investor Relations PowerPoint ...................................................................................................20 Appendix .......................................................................................................................................39 Minimum Equity Requirements .................................................................................................39 Inventory Reconciliation ............................................................................................................40 General Ledger ...........................................................................................................................41 Expected Costs ...........................................................................................................................42 Schedule of Assumptions ...........................................................................................................43 Depreciation Schedule................................................................................................................43

Executive Summary
Company Description and History Founded in 2013 by entrepreneurs Sumegh Sodani, Victoria Scully, Marcus Stromeyer and Chris Kraft, BioBullet Inc. is disrupting the small arms ammunition market by offering, a first of its kind, biodegradable bullet. In doing so, the company reflects the founders passion for innovation, shooting, and conservation. After raising $8,975,000 in its first year from owners capital, common stock and bank loans, the companys operations have quickly expanded. The companys internet-based go-to-market strategy has allowed it to scale-up quickly and reach customers in all 50 states. In fact, revenues in 2015 were already a healthy $3,405,941. BioBullets impressive growth was recognized by The Dallas Morning News 2015 Small Business of the Year Award. Mission and Goals The companys mission, and pitch to initial investors, is quite bold: we want to become the leading brand of biodegradable bullets. With aggressive pricing and effective marketing, we believe that this entrepreneurial and flexible company can impose itself. However, while expansion is every business end goal, BioBullet Inc. will remain true to its core mission of conservation and giving back to the community. Management Team Chris Kraft (Chief Executive Officer) Mr. Kraft has over fifteen years of experience in armament manufacturing and industrial management. Marcus Stromeyer (Chief Financial Officer and Chief Information Officer) Mr. Stromeyer has overseen two successful start-ups and has a track record of successful exits. Sumegh Sodani (Lead Scientist) Mr. Sodani has over ten years of experience in applied biopolymer research and development. Victoria Scully (Chief Operating Officer). Ms. Scully has over twelve years of experience in operations and information management. Key Highlights of this Report This report highlights key financial statements that point to a growing and healthy business. BioBullet, Inc. would specifically highlight the following key statistics for all current and prospective investors: Year-over-year revenue growth was an impressive 63%. This clearly highlights both a market demand for this specific product and our ability to scale quickly. National firearm

BioBullet, Inc. 1

trends and the growth of the environmental movement make us optimistic about continued growth. Our investors are already experiencing a return on their investment. In our second year of operation issued dividends that amounted to an EPS of $0.10. Our team is committed to ensuring that our investors reap the benefits of our quick growth. Our return on assets (ROA) increased drastically from 2014 to 2015. This demonstrates that our company is making the right investments in order to establish itself as a market leader. While the ratio is still negative in year 2, we believe that robust growth in the future will result in a positive ROA within the next three years. Our products expansion has not been dependent on a very costly marketing campaign. In fact, in year one our marketing expenses were merely $150,000. This both validates the demand for our product and makes us optimistic about our efforts to diversify our product line and increase both revenue and profit.

By focusing on the fundamentals of a good business, BioBullet, Inc. has disrupted a market in only two years. Going forward, increased investment and scale will lead to continuing revenue growth and greater returns to investors.

. . Christopher Kraft, CEO

. . Marcus Stromeyer, CFO

For any questions or concern, please contact our office of investor relations at investors@biobullet.com.

BioBullet, Inc. 2

BioBullet, Inc.
Balance Sheet 2014 - 2015
2015 2014

Assets Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Assets Supplies Inventory Inventory Property, Equipment Other Assets Accumulated Depreciation Total Assets Liabilities Accounts Payable Accruals Note Payable/Bonds/Mortgage Total Liabilities Shareholder's Equity Common Stock Additional Paid In Capital Treasury Stock Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholder Equity

$ 5,313,110 474,587 (44,612) 20,000 3,620 826,209 943,143 (80,437) $ 7,455,620

$ 7,760,332 283,592 11,011 40,000 1,120 8,550 941,008 (40,557) $ 9,005,056

697,955 474,046 2,737,600 3,909,601 3,975,000 2,250,000 (1,215,000) (1,463,981) 3,546,019 $ 7,455,620

299,008 265,178 3,306,800 3,870,986 3,975,000 2,250,000 (1,090,930) 5,134,070 $ 9,005,056

BioBullet, Inc. 3

BioBullet, Inc.
Income Statement 2014 - 2015 2015 Revenues Service Revenue Expenses Loss on Sale of Equipment Cost of Goods Sold Salaries Expense Depreciation Expense Marketing Expense Supplies Expense Insurance Expense Interest Expense Payroll Taxes Expense R&D Expense General & Administrative Expense Bad Debt Expense Travel Expense Utilities Expense Net Income before Tax Income Tax Expense Retained Earnings $ 3,405,941 1,200 1,781,091 572,400 42,831 250,000 10,000 20,000 213,931 57,240 65,000 41,200 110,693 60,000 25,000 3,250,586 155,355 478,407 $ (323,052) 2014 $ 2,079,550 1,701,450 500,400 40,557 150,000 10,880 20,000 217,712 50,040 65,000 34,088 51,989 50,000 25,000 2,917,115 (837,565) 253,365 $ (1,090,930)

BioBullet, Inc. 4

BioBullet, Inc.
Statement of Cash Flows 2014 - 2015
2015 2014

Cash Flows from Operating Expenses Net Income $ (323,052) Adjustments to Reconcile Net income to net cash provided by operating expenses: Depreciation Expense 42,831 Loss on disposal of equipment 1,200 Increase in accounts receivable (135,372) Increase in inventory (817,659) Decrease in prepaid expenses 20,000 Increase in supplies (2,500) Increase in accounts payable 398,947 Increase in accrued expenses payable 208,868 Net cash used by operating activities (606,737) Cash flow from investing activities Sale of equipment Purchase of equipment Purchase of property Net cash used in investing activites Cash flow from financing activities Increase in common stock Increase in treasury stock Payment of dividends Decrease in notes payable Net cash provided by financing activities Net increase in cash Cash at beginning of period Cash at end of period

$ (1,090,930)

40,557 (294,603) (8,550) (40,000) (1,120) 299,008 265,178 (830,460)

2,850 (9,135) (6,285)

(221,008) (144,000) (365,008)

6,225,000 (1,215,000) (50,000) (569,200) (1,834,200) (2,447,222) 7,760,332 $ 5,313,110 2,730,400 8,955,400 7,760,332 $ 7,760,332

BioBullet, Inc. 5

BioBullet, Inc.
Statement of Retained Earnings 2014 - 2015
2015 (1,090,930) (323,052) (1,413,982) 50,000 (1,463,982) 2014 (1,090,930) (1,090,930) (1,090,930)

Beginning retained earnings, Jan. 1 Net income Less: Dividends on common stock Ending retained earnings, Dec. 1

BioBullet, Inc. 6

BioBullet, Inc.
Statement of Shareholder's Equity 2014 - 2015 2015 Paid-In Capital Capital Stock Common Stock, $7 par value, 567,857 shares issued Total Capital Stock Additional Paid In Capital In Excess of Par - Common Stock Total Additional Paid-In Capital Less: Treasury Stock Total Paid-In Capital Retained Earnings Total Paid-In Capital and Retained Earnings Total Stockholder's Equity 2014

$ 3,975,000 3,975,000 2,250,000 1,215,000 5,010,000 (1,463,981) 3,546,019 $ 3,546,019

$ 3,975,000 3,975,000 2,250,000 2,250,000 6,225,000 (1,090,930) 5,134,070 $ 5,134,070

BioBullet, Inc. 7

BioBullet, Inc.
Date 1/1/2014 1/1/2014 1/1/2014 General Journal 2014-2015 Account Titles Note Cash N1 Common Stock - Owner's Equity Cash N2 Notes Payable - Loan Cash N3 Common Stock Additional Paid in Capital Supplies N4 Cash Equipment N5 Accounts Payable Pre-Paid Insurance Cash Property N6 Cash Notes Payable - Mortgage Inventory Accounts Payable Bad Debt Expense N7 Allowance for Doubtful Accounts Salaries & Wages Expense Cash Salaries & Wages Payable Salaries & Wages Expense - Benefits Cash Salaries & Wages Payable - Benefits Payroll Tax Expense Cash Payroll Tax Payable General & Administrative Expense Cash General & Administrative Payable Sales & Marketing Expense Cash Sales & Marketing Payable Travel Expense Cash Travel Payable Cash Accounts Receivable Revenue Cost-of-goods Sold Inventory Reference 101 303 101 203 101 301 302 105 101 107 201 104 101 107 101 203 106 201 516 103 502 101 202 502 101 202 511 101 202 515 101 202 506 101 202 517 101 202 101 102 400 501 106 Debit 825,000 $ $ 2,750,000 $ 2,750,000 $ 5,400,000 $ 3,150,000 $ 2,250,000 $ $ $ $ 12,000 $ 221,008 $ 60,000 $ 720,000 $ $ $ 1,710,000 $ 1,710,000 $ $ 51,989 $ 417,000 $ $ $ 83,400 $ $ $ 50,040 $ $ $ 34,088 $ $ $ 150,000 $ $ $ 50,000 $ $ $ 1,732,958 $ 346,592 $ 2,079,550 $ 1,701,450 $ 1,701,450 45,833 4,167 137,500 12,500 31,446 2,642 45,870 4,170 76,450 6,950 382,250 34,750 51,989 144,000 576,000 60,000 221,008 12,000 Credit 825,000

1/1/2014 1/1/2014 1/1/2014 1/1/2014

1/1/2014 1/1/2014 12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

BioBullet, Inc. 8

12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014

12/31/2014

12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014

12/31/2014 1/1/2015

Allowance for Doubtful Accounts Accounts Receivable Income Tax Cash Insurance Expense Pre-paid Insurance Interest Expense - Loan Interest Payable - Loan Notes Payable - Mortgage Cash Interest Expense - Mortgage Cash Accounts Payable Cash Research & Development Expense Cash Research & Development Payable Utilities Expense Cash Utilities Payable Depreciation Expense Accumulated Depreciation Accounts Payable Cash Supplies Expense Supplies Revenue Income Summary Income Summary Cost-of-goods Sold Bad Debt Expense Salaries & Wages Expense Salaries & Wages Expense - Benefits Payroll Tax Expense General & Administrative Expense Sales & Marketing Expense Travel Expense Income Tax Insurance Expense Interest Expense - Loan Interest Expense - Mortgage Research & Development Expense Utilities Expense Depreciation Expense Supplies Expense Retained Earnings Income Summary Supplies

N8

N9

N10 N11

N12

N13

103 102 525 101 509 104 526 202 203 101 526 101 201 101 512 101 202 529 101 202 505 108 201 101 508 105 400 600 600 501 516 502 502 511 515 506 517 525 509 526 526 512 529 505 508 306 600 105

$ $ $ $ $ $ $ $

63,000 $ 253,365 $ 20,000 $ 192,500 $ 19,200 $ 25,212 $ 93,000 $ 65,000 $ $ 59,583 5,417 22,917 2,083 40,557 93,000 25,212 19,200 192,500 20,000 253,365 63,000

25,000 $ $

40,557 $

$ 1,539,000 $ 1,539,000 $ 10,880 $ $ 2,079,550 $ 2,079,550 $ 3,170,480 $ 1,701,450 $ 51,989 $ 417,000 $ 83,400 $ 50,040 $ 34,088 $ 150,000 $ 50,000 $ 253,365 $ 20,000 $ 192,500 $ 25,212 $ 65,000 $ 25,000 $ 40,557 $ 10,880 $ 1,090,930 $ 1,090,930 $ 12,500 10,880

BioBullet, Inc. 9

1/1/2015 1/1/2015 1/1/2015 1/1/2015

1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 1/1/2015 12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

12/31/2014

Cash Equipment Accounts Payable Inventory Accounts Payable Bad Debt Expense Allowance for Doubtful Accounts Accounts Receivables Allowance for Doubtful Accounts Cash Accounts Receivables Salaries & Wages Payable Cash Salaries & Wages Payable - Benefits Cash Payroll Tax Payable Cash General & Administrative Payable Cash Sales & Marketing Payable Cash Travel Payable Cash Cash Accounts Receivables Research & Development Payable Cash Utilities Payable Cash Notes Payable - Loan Cash Salaries & Wages Expense Cash Salaries & Wages Payable Salaries & Wages Expense - Benefits Cash Salaries & Wages Payable - Benefits Payroll Tax Expense Cash Payroll Tax Payable General & Administrative Expense Cash General & Administrative Payable Sales & Marketing Expense Cash Sales & Marketing Payable Travel Expense Cash

N14

N15 N16

N17

101 107 201 106 201 516 103 102 103 101 102 202 101 202 101 202 101 202 101 202 101 202 101 202 102 202 101 202 101 203 101 502 101 202 502 101 202 511 101 202 515 101 202 506 101 202 517 101

$ $ 9,135 $ $ 2,598,750

12,500 9,135

$ 2,598,750 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 110,693 $ 38,000 $ 38,000 $ 34,750 $ 6,950 $ 4,170 $ 2,642 $ 12,500 $ 4,167 $ 283,592 $ 5,417 $ 2,083 $ 550,000 $ 477,000 $ $ $ 95,400 $ $ $ 57,240 $ $ $ 41,200 $ $ $ 250,000 $ $ $ 60,000 $ 55,000 229,167 20,833 35,017 6,183 52,470 4,770 87,450 7,950 437,250 39,750 550,000 2,083 5,417 283,592 4,167 12,500 2,642 4,170 6,950 34,750 38,000 38,000 110,693

BioBullet, Inc. 10

12/31/2014

12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014

12/31/2014

12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014

12/31/2014 12/31/2014

Travel Payable Cash Accounts Receivable Revenue Cost-of-goods Sold Inventory Allowance for Doubtful Accounts Accounts Receivable Income Taxes Cash Insurance Expense Pre-paid Insurance Interest Expense - Loan Interest Payable - Loan Notes Payable - Mortgage Cash Interest Expense - Mortgage Cash Accounts Payable Cash Research & Development Expense Cash Research & Development Payable Utilities Expense Cash Utilities Payable Depreciation Expense Accumulated Depreciation Accounts Payable Cash Supplies Expense Supplies Treasury Stock Cash Cash Accumulated Depreciation Loss on Disposal of Assets Equipment Revenue Income Summary Income Summary Cost-of-goods Sold Bad Debt Expense Salaries & Wages Expense Salaries & Wages Expense - Benefits Payroll Tax Expense General & Administrative Expense Sales & Marketing Expense

N18

N19 N20

N21

202 101 102 400 501 106 103 102 525 101 509 104 526 202 203 101 526 101 201 101 512 101 202 529 101 202 505 103 201 101 508 105 304 101 101 103 530 107 400 600 600 501 516 502 502 511 515 506

$ $ 2,838,284 $ 567,657

5,000

$ 3,405,941 $ 1,781,091 $ 1,781,091 $ $ $ $ $ $ 93,070 $ 478,407 $ 20,000 $ 189,560 $ 19,200 $ 24,371 $ 24,371 19,200 189,560 20,000 478,407 93,070

65,000 $ $ 59,583 5,417 22,917 2,083 42,831

25,000 $ $

42,831 $

$ 2,208,938 $ 2,208,938 $ 10,000 $ $ 1,215,000 $ 1,215,000 $ $ $ 2,850 2,950 1,200 $ $ 3,405,941 $ 3,405,941 $ 3,728,993 $ 1,781,091 $ 110,693 $ 477,000 $ 95,400 $ 57,240 $ 41,200 $ 250,000 7,000 10,000

BioBullet, Inc. 11

12/31/2014 12/31/2014

Travel Expense Income Tax Insurance Expense Interest Expense - Loan Interest Expense - Mortgage Research & Development Expense Utilities Expense Depreciation Expense Supplies Expense Loss on Disposal of Assets Retained Earnings Income Summary Retained Earnings - Dividends Cash

N22

517 525 509 526 526 512 529 505 508 530 306 600 202 306

$ $ $ $ $ $ $ $ $ $ $ $ 323,052 $ 50,000 $

60,000 478,407 20,000 189,560 24,371 65,000 25,000 42,831 10,000 1,200 323,052 50,000

BioBullet, Inc. 12

General Journal Notes

N1: Owners original investment. Owners received 117,857 shares at par value of $7.00. N2: Five year loan at a 7 percent interest rate to increase liquidity. N3: Authorization to issue up to 1.5 million shares of stock with a par value of $7.00. 450,000 are initially sold at $12.00 per share. N4: Supplies purchased include general supplies and gasoline for forklift. N5: Equipment purchased includes computer systems, security cameras, office desks, chairs, filing cabinets, safe, reception desk, a logo, automated cartoner, and a forklift. N6: Purchased a warehouse in Texas with a 20 percent down payment and a 30-year mortgage with a 4.377 percent interest rate. N7: Using the percentage-of-sales method, estimated bad debt expense is 2.5 percent of sales due to the high demand for bullets. N8: Write-off of uncollectible accounts. N9: Payment for equipment bought on account. N10: See depreciation schedule. N11: Payment for inventory bought on account. N12: Closing the books. N13: Supplies purchased include general supplies and gasoline for forklift. N14: Equipment purchased includes computer systems, office desks, chairs, and filing cabinets. N15: Using the percentage-of-sales method, estimated bad debt expense is 3.25 percent of sales due to anemic economic growth. N16: Collected on accounts written off in 2014. N17: Paid back portion of loan. N18: Write-off of uncollectible accounts. N19: Purchase of 90,000 shares of treasury stock at $13.50 per share. N20: Sale of forklift at a loss. N21: Closing the books. N22: Authorization and issuance of $0.105 dividend per share.

BioBullet, Inc. 13

Ratio Analysis BioBullet, Inc.

Ratio Analysis 2014 - 2015 2015 1.954 -0.039 -0.074 0.105 0.367 2014 2.447 -0.242 -0.425 0 0.367

Current Ratio Return on Assets Return on Equity Earnings Per Share Debt to Total Assets Current Ratio

The Current Ratio is a liquidity ratio that shows the companys ability to pay short-term obligations, usually over a twelve-month period. The higher the ratio, the more capable the company is of paying its obligations. A ratio less than 1 indicates that a company would most likely not be able to repay obligations if they became due at that point. The ratio can also give an example of the efficiency of a companys operating cycle or its ability to turn its product into cash. 2014: 2.447 = ($8,064,048) / ($3,294,986) 2015: 1.954 = ($6,512,477) / ($3,333,601)

As indicated in bold, for both 2014 and 2015 BioBullet, Inc. had a current ratio greater than one, indicating that the firm has had sufficient liquidity to meet its short-term obligations over the past two years. Although the current ratio decreased from 2.447 to 1.954 over the course of two years, this was a consequence of BioBullet, Inc. seeking to reduce its liabilities--specifically its loan--to a manageable level in order to ensure that it would not face debilitating interest payments in the future Return on Assets The Return on Assets (ROA) ratio is an indicator of how profitable a firm is relative to its assets. Importantly, ROA can be understood as how efficient management is at using its assets to generate earnings. 2014: -0.242 = ($-1,090,930) / [($0 + $9,005,056)] 2015: -0.039 = ($-323,052) / [($9,005,056 + $7,455,620)]

As indicated above, BioBullet, Inc. has had a negative ROA for the 2014-2015 fiscal period. Although this may be concerning for mature firms as it would indicate that management turning a loss relative to current assets, BioBullet, Inc. is a relatively young firm and has been using its assets to capitalize and grow the firm over the past two years. Importantly, because the ROA has

BioBullet, Inc. 14

substantially increased over the past two years, it indicates that the firm has made the right investments and has a popular product; BioBullet, Inc.s management expects a positive ROA within the next three years as we develop new product lines and continue robust sales domestically. Return on Equity Return on Equity (ROE) measures the amount of net income earned as a percentage of shareholders equity. Thus it represents a measure of the companys profitability by revealing how much income it earns with the money its shareholders have invested in it. 2014: -0.425 = ($-1,090,930) / [* ($0 + $5,134,070 2015: -0.074 = ($-323,052) / [* ($3,546,019 + $5,134,070)

The calculated ROE ratios for 2014 and 2015 indicate that the company still is not returning a profit for stockholders, and that for every dollar they have invested in shares of the company, their equity stake is now valued at less than a dollar. This is not an unexpected result, as the high startup costs involved in starting BioBullet - including its substantial capital costs - would lead investors to anticipate a negative return early on. Additionally, the improvement in the negative ROE can be tied to the substantial increase in revenues in 2015, an improvement that greatly outweighs the smaller increase in expenses from 2014 to 2015. Thus, the improvement in net income outweighs the increase in the value of the shareholders equity, leading to an improvement in ROE from -0.425 to -0.074. Debt to Total Assets The debt to total assets ratio measures how much of the companys assets have been financed by debt. This is a measure a company's financial risk because the more assets are financed by debt, the less the company actually owns. 2014: 0.367 = ($3,306,800) / ($9,005,056) 2015: 0.367 = ($2,737,600) / ($7,455,620) The ratio of debt to total assets does not change between year 1 and year 2. Such a result is expected because the decrease in debt is paid for with cash, an asset. In other words, the decrease in debt from $3,306,800 to $2,737,600 also came with a decrease in cash/assets from $9,005,056 to $7,455,620. This simultaneous movement explains why the two ratios are so similar. Earnings per Share Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. 2014: 0 = ($0) / (567,857) 2015: 0.105 = ($50,000) / (477,857)

BioBullet, Inc. 15

The EPS went up from 0 to 0.105 between year 1 and year 2. This is expected because there were no dividends issued in year 1. This results in an EPS of 0 in year 1. In year 2, on the other hand, we issued $50,000 of dividends. Therefore, the EPS was 0.105.

BioBullet, Inc. 16

Five-Year Marketing and Operations Plan

Summary This five-year marketing and operations plan for BioBullet, Inc. has been created to secure additional funding for growth and to inform employees and investors on the companys current status and future direction. Although BioBullet Inc. was launched only two years ago, the company has experienced greater-than-anticipated demand for its product, and research has shown that the target market will continue to grow. The company is interested in extending the product line as well as continuing to innovate our product. Over the next five years, BioBullet, Inc. can increase its distribution, offer an improved product, and win new customers. Company Description BioBullet, Inc. was founded in 2013 by entrepreneurs Chris Kraft, Marcus Stromeyer, Sumegh Sodani, and Victoria Scully. Chris Kraft, the Chief Executive Officer, has over fifteen years of experience in armament manufacturing and industrial management. Marcus Stromeyer, the Chief Financial Officer and Chief Information Officer, has overseen two successful start-ups. Sumegh Sodani, the Lead Scientist, has over ten years of experience in applied biopolymer research and development. Victoria Scully, the Chief Operating Officer, has over twelve years of experience in operations and information management. BioBullet Inc. reflects the founders passion for innovation and concern for the environment. As part of the global effort to move towards a sustainable and renewable approach to living, BioBullet, Inc. is offering the BioBullet, a first of its kind, biodegradable bullet. BioBullet, Inc. is currently doing a majority of sales online, utilizing the advantages of a digitized culture. Our warehouse is located in Austin, Texas, but through use of the internet we have had sales in all 50 states. However, our product has attracted the biggest following in the south and midwest. In addition, sales have dramatically increased in the last two years, and BioBullet, Inc. is currently working to expand its manufacturing capabilities. BioBullet, Inc. is committed to giving back to the community by contributing to local conservation programs. Ultimately, the company would like to develop and fund its own environmental program. This plan will outline how BioBullet, Inc. intends to introduce a new product, expand its distribution, enter new markets, and protect the environment. BioBullet, Inc.s Mission and Goals BioBullet, Inc.s mission is to be the leading producer and marketer of the biodegradable bullet to consumers who share a passion for hunting and protecting the environment. BioBullet, Inc. wants to inspire people to express their right to bear arms in an environmentally friendly way. In addition, the company strives to design programs for preserving the natural environment. Core Competencies

BioBullet, Inc. 17

BioBullet, Inc. seeks to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that BioBullet does. BioBullet, Inc. has already developed core competencies in (1) offering a high-quality, branded product whose image is recognizable among consumers; (2) developing a reputation among retailers as a reliable supplier; (3) supplying high-quality products to consumers and continuing to maintain strong relationships. The company intends to build on these competencies through future marketing efforts. Competitors in the Bullet Market What differentiates BioBullet, Inc. from its competition is their dedication to environmentally conscious products that are as high quality and competitively priced as the other bullets on the market. One damaging effect caused by regular bullets is lead poisoning in the environment. Cleaning up lead from a particular range can become an enormous economic burden as well as a danger to the health of the hunters and the animals that inhabit the environment (Ammunition). Small fragments of lead can be present in hunter-harvested deer and bear, particularly in ground meat (Ammunition). Lead fragments left behind from bullets also harm the environment that the animals inhabit, making them more susceptible to become sick and die from dead poisoning (Ammunition). BioBullet Inc. produces bullets that are lead free. The BioBullet eliminates the environmental damage produced by regular bullets at a competitive price. By comparing the total cost of each bullet, it is clear that in every case the green ammunition is cheaper throughout the life cycle of the round (Lillie). The BioBullet allows the consumer to enjoy recreational shooting without harming the environment. The Target Market The target market for BioBullet Inc. is consumers in the Southern and Midwestern geographical regions, as well as states that have less restrictive gun laws. BioBullet Inc. markets towards people who enjoy the outdoors, hunting, hiking, shooting at ranges and other such activities. Other potential clients include military, police, security, and other organizations that utilize bullets in significant quantities. The target market is for both recreational as well as occupational use. Marketing Plan The following discussion outlines some of the details of the proposed marketing plan for BioBullet, Inc. products. Product Strategy. BioBullet, Inc. offers a product that is one of a kind--a biodegradable bullet. At this time in history, there are two major concerns: the preservation of our environment and the preservation of our constitution. BioBullet puts both of these concerns to ease. Because of BioBullet, Americans can express their right to bear arms without having to harm this beautiful nation--it is really a win-win for everyone. The demand for bullets in America is at an all time high and is expected to continue to rise. More bullets means more lead contamination, and more destruction of the environment. The BioBullet stops this cycle. With the BioBullet, the increasing production of bullets does not have to negatively affect the environment.

BioBullet, Inc. 18

Distribution Strategy. The BioBullet is currently marketed and sold via the internet. Online sales have had a great success and continue to increase. Online sales allows convenience for the customer and the ability to customize their order. Because all sales are online, BioBullet offers incentives and rewards to high-value customers. Promotional Strategy. BioBullet, Inc. communicates our value proposition with consumers and retailers in a variety of ways including a combination of print, radio, television, and web advertising. Information about BioBullet Inc., including the company and its products, is available via the internet, direct mailing, or in person. BioBullet, Inc.s promotional efforts also seek to differentiate the company from its competitors. BioBullet, Inc. relies on internet and media driven campaigns to establish a presence. When a personal contact is formed, the company works to establish a reliable, open relationship to help convey the BioBullet message, demonstrate the products unique qualities, and build relationships with customers. BioBullet, Inc. has sales representatives that travel across the country to meet with the heads of gun ranges, local communities, and law enforcement as well as the general public to both educate and promote the BioBullet. As distribution expands, BioBullet, Inc. will adjust to meet the greater demand by increasing staff and making more frequent trips. Pricing Strategy. BioBullet, Inc. has priced its product with competition in mind. Its current offering price is 8% below the leading competitor with a lead-based product. BioBullet, Inc. is offering a cheaper, more environmentally friendly bullet that is still as capable and durable as the alternatives on the market.

BioBullet, Inc. 19

BioBullet, Inc. 20

Sumegh, Victoria, Chris and Marcus

Movie Clip
BioBullet, Inc. 21

BioBullet, Inc. 22

BioBullet, Inc. 23

BioBullet, Inc. 24

BioBullet, Inc. 25

BioBullet, Inc. 26

BioBullet, Inc. 27

BioBullet, Inc. 28

Marketing Plan:

Target Market

Online Sales

BioBullet, Inc. 29

Pricing Strategy

Promotional Strategy

Website and Blog

BioBullet, Inc. 30

BioBullet, Inc. 31

BioBullet, Inc. 32

Key Financial Takeaways

Bottom Line: Ratio analysis indicates a financially healthy and growing firm.

Net Income has increased 70.4 % with an 11.4 % increase in expenses. Profitability expected no later than 2017

BioBullet, Inc. 33

$130,000 R&D investment has reduced the cost of the BioBullet by 11.5%, saving $237,623 in manufacturing costs

Expect manufacturing costs to decrease another 3-5 %

To guarantee the long-term financial health of the firm, BioBullet is focused on reducing debt as quickly as possible

Negative cash flow, decreasing assets by 17.2 %

Cash Flows
2015 2014

Cash Flows from Operating Expenses Net Income (606,737) (323,052)

BioBullet, Inc. 34

(1,090,930) (830,460)

Net Cash Used by Operating Activities

Cash Flows
2015 (9,135) 2014 (221,008) (144,000) (6,285) (365,008)

Cash Flows from Investing Activities Purchase of Equipment Purchase of Property

BioBullet, Inc. 35

Net Cash Used in Investing Activities

Cash Flows
2015 2014
6,225,000 (1,215,000) (50,000) (1,834,200) (8,955,400)

Cash Flow from Financing Activities

Increase in Common Stock

Increase in Treasury Stock Payment of Dividends

BioBullet, Inc. 36

Net Cash Provided by Financing Activities

Cash Flows

2015
(2,447,222) (5,313,110)

2014
(7,760,332) (7,760,332)

BioBullet, Inc. 37

Net Increase in Cash

Cash at End of Period

Thank You
BioBullet, Inc. 38

BioBullet, Inc.
Minimum Equity Requirements 2014 - 2015 Cash Requirement 2014 From Operations Revenues Expenses Operating Cash From Investing Sources of Cash Use of Cash $ $ $ 2,079,550 1,785,253 75,000 $ $ $ Cash Requirement 2015 3,405,941 1,425,407 135,000

$ $

2,124,708

$ $

2,767,085

Minimum Equity Requirements 2014-2015 Personal Equity Shareholder Equity* Debt Total Equity Needed: *Cost of Share: $7.00 Authorized Shares: 1,500,000 $825,000.00 $1,925,000.00 $2,750,000.00 $5,500,000.00

BioBullet, Inc. 39

BioBullet, Inc.
Inventory Reconciliation 2014 - 2015 2015 157,500 16.50 2,598,750 154,816 22.00 3,405,941 3,160 52,132 2014 95,000 18.00 1,710,000 94,525 22.00 2,079,550 475 8,550

Units Purchased* Cost/Unit Total Cost Units Sold Price/Unit Total Revenue Ending Inventory Value *Each carton has 100 bullets

$ $

$ $

$ $

BioBullet, Inc. 40

BioBullet Inc. General Ledger

Closing Entries Debit 3,162,726 605,657 93,070 Credit Debit Credit Debit Credit

Closing Entries

General Ledger Account 10,707,958 346,592 63,000 60,000 12,000 1,710,000 941,008 40,557 1,632,000 19,200 1,931,008 265,178 3,326,000 3,975,000 2,250,000 1,215,000 50,000 3,405,941 1,781,091 572,400 2,208,938 72,678 569,200 2,607,885 281,546 12,500 2,598,750 9,135 2,950 2,947,626 63,000 51,989 20,000 10,880 1,701,450 5,609,948 414,662 148,693 20,000 10,000 1,781,091 7,000 42,831

Ref

Begin Year One Debit Credit

Final Balance

End Year One

End Year Two

End Year Two

2,079,550 1,701,450 500,400 1,701,450 500,400

1,090,930 2,079,550

323,052 3,405,941 1,781,091 572,400

BioBullet, Inc. 41
40,557 150,000 40,557 150,000 42,831 250,000 10,880 20,000 50,040 65,000 34,088 51,989 50,000 253,365 217,712 25,000 18,662,238 18,662,238 0 6,340,960 6,340,960 10,880 20,000 50,040 65,000 34,088 51,989 50,000 253,365 217,712 25,000 10,000 20,000 57,240 65,000 41,200 110,693 60,000 478,407 213,931 25,000 1,200 14,328,396

42,831 250,000

5,313,110 474,587 44,612 20,000 3,620 826,209 943,143 80,437 697,955 474,046 2,737,600 3,975,000 2,250,000 1,215,000 50,000 (1,413,981) -

Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Assets Supplies Inventory Inventory Property, Equipment Accumulated Depreciation Other Assets Accounts Payable Accruals Note Payable/Bonds/Mortgage Common Stock Additional Paid In Capital Treasury Stock Dividends Retained Earnings Revenues Cost of Goods Sold Salaries Expense Office Expense Rent Expense Depreciation Expense Marketing Expense Amortization Expense Supplies Expense Insurance Expense Payroll Taxes Expense R&D Expense General & Administrative Expense Bad Debt Expense Travel Expense Income Tax Interest Expense Utilities Expense Loss on Sale of Equipment 14,329,596 3,728,993

101 102 103 104 105 106 107 108 109 201 202 203 301 302 304 305 306 400 501 502 503 504 505 506 507 508 509 511 512 515 516 517 525 526 529 530

7,760,332 283,592 (11,011) 40,000 1,120 8,550 941,008 40,557 299,008 265,178 3,306,800 3,975,000 2,250,000 2,079,550 1,701,450 500,400 40,557 150,000 10,880 20,000 50,040 65,000 34,088 51,989 50,000 253,365 217,712 25,000

7,760,332 283,592 (11,011) 40,000 1,120 8,550 941,008 40,557 299,008 265,178 3,306,800 3,975,000 2,250,000 (1,090,930) -

5,313,110 474,587 44,612 20,000 3,620 826,209 943,143 80,437 697,955 474,046 2,737,600 3,975,000 2,250,000 1,215,000 50,000 (1,090,930) 3,405,941 1,781,091 572,400 42,831 250,000 10,000 20,000 57,240 65,000 41,200 110,693 60,000 478,407 213,931 25,000 1,200 0

10,000 20,000 57,240 65,000 41,200 110,693 60,000 478,407 213,931 25,000 1,200 3,727,793

BioBullet, Inc.
Expected Costs 2014 - 2015
Item 3 2 3 1 1 Notes Quantity 2014 Quantity 2015

BioBullet, Inc. 42

Computer Systems Security Cameras Desk Chairs Administrative Office Supplies Filing Cabinets Safe Reception Desk Logo Property Buildings Utilities Secretary Materials Engineers IT Employees Sales Marketing Chemical Enginneer Bookkeeper Bullets Bullet Trays BioBullet Packaging Automated Cartoner Auditing Services Accounting Services Pallets Equipment Forklift Gasoline for Forklift Television Radio Advertising Print Web General Services Software State Incorporation Fees Legal Monthly Retainer/ Basic business needs (per hour) Sales Travel $300/shipment Shipping Research & Development R&D Tax on Profit Taxes Pre-Paid Insurance Insurance Loan Interest Interest Mortgage Interest 1 1 2 1 3 1 1 1 15,750,000 315,000 157,500 4 37 2,400 1 1 1 1 1 145 1 5 1 1,594,691 1 2,250,000 556,800

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C12 C12 C12 C12 C12 C12 C13 C14 C15 C16 C17 C18 C19 C20 C21 C21 C21 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30 C31

2 3 9 10 1 4 1 1 1 1 1 1 1 1 2 1 1 1 9,500,000 190,000 95,000 1 4 28 1 2,400 1 1 1 1 1 1 120 1 3 1 844,550 1 2,750,000 576,000

Cost/Unit 2014 $ 1,499.99 $ 199.99 $ 599.99 $ 279.99 $ 1,200.00 $ 189.99 $ 499.99 $ 1,727.99 $ 400.00 $ 720,000.00 $ 25,000.00 $ 32,000.00 $ 60,000.00 $ 55,000.00 $ 55,000.00 $ 50,000.00 $ 70,000.00 $ 40,000.00 $ 0.13 $ 2.40 $ 0.20 $ 197,000.00 $ 300.00 $ 65.00 $ 6,999.99 $ 4.50 $ 50,000.00 $ 50,000.00 $ 25,000.00 $ 25,000.00 $ 500.00 $ 588.00 $ 250.00 $ 50,000.00 $ 600.00 $ 65,000.00 $ 0.30 $ 60,000.00 $ 0.07 $ 0.04377 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Cost 2014 3,000 600 5,400 2,800 1,200 760 500 1,728 400 720,000 25,000 32,000 60,000 55,000 110,000 50,000 70,000 40,000 1,235,000 456,000 19,000 197,000 1,200 1,820 7,000 10,800 50,000 50,000 25,000 25,000 500 588 30,000 50,000 1,800 65,000 253,365 60,000 192,500 25,212

Cost/Unit 2015 $ 1,499.99 $ $ 599.99 $ 279.99 $ 1,700.00 $ 189.99 $ $ $ $ $ 25,000.00 $ 32,000.00 $ 60,000.00 $ 55,000.00 $ 55,000.00 $ 50,000.00 $ 70,000.00 $ 40,000.00 $ 0.12 $ 2.40 $ 0.20 $ 197,000.00 $ 300.00 $ 65.00 $ $ 4.50 $ 75,000.00 $ 75,000.00 $ 50,000.00 $ 50,000.00 $ 750.00 $ $ 250.00 $ 60,000.00 $ 600.00 $ 65,000.00 $ 0.30 $ 78,000.00 $ 0.07 $ 0.04377

Total Cost 2015 4,500 1,200 840 1,700 190 25,000 32,000 120,000 55,000 165,000 50,000 70,000 40,000 1,811,250 756,000 31,500 1,200 2,405 10,800 75,000 75,000 50,000 50,000 750 36,250 60,000 3,000 65,000 478,407 78,000 157,500 24,371

Schedule of Assumptions
C1: Computer system price based on Apple iMac product (http://store.apple.com/us/buymac/imac). C2: Security Camera price based off of price provided by Office Depot (http://www.officedepot.com/a/products/353275/D-Link-DCS-2132L-HD-DayNight/). C3: Desk price based off of price provided by Office Depot (http://www.officedepot.com/a/products/998850/HON-Metro-Classic-Series-KneespaceCredenza/?cm_cat=). C4: Price of chairs based off of price provided by Office Depot (http://www.officedepot.com/a/products/510830/Realspace-PRO-Quantum-9000-Series-Mesh/). C5: Office supplies purchase includes office materials such as pens, pencils, paper, staplers, planners, calendars, scissors, envelopes, and other basic supplies. This cost was estimated based off of prices given by Office Depot. C6: Filing cabinet price based off of price provided by Office Depot (http://www.officedepot.com/a/products/475679/Realspace-PRO-25-D-4-Drawer/). C7: Safe price based off of price provided by Office Depot (http://www.officedepot.com/a/products/465934/Sentry-Safe-Biometric-Fire-Safe/). C8: Reception desk price based off of price provided by Office Depot (http://www.officedepot.com/a/products/359122/OFM-Single-Marque-Reception-Station-With/). C9: BioBullet, Inc. plans to allocate this amount for creation of a logo. C10: Property price is based on purchasing this specific property: Crown Plaza III, 11496 Luna Road, Farmers Branch, TX 75234 (http://www.txreproperties.com/properties.html#). C11: Utilities based on average utilities for commercial businesses in Austin, TX (http://www.puc.texas.gov/industry/electric/rates/NCrate.aspx). C12: BiolBullet, Inc.s wages for employee positions are based on median wages reported by Georgetown University Public Policy Institute (http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/HardTimes.2013.2.pdf). C13: BioBullet, Inc. assumed that it could create a 9mm bullet that was 75 percent biodegradable. To determine the cost of each bullet, we first determined the mass of a 9mm bullet (http://en.wikipedia.org/wiki/9%C3%9719mm_Parabellum) and its associated casing (http://www.glockpost.com/forums/showthread.php?t=6121); 75 percent of the mass of a typical 9mm bullet is 50.3488 grams (0.111 lbs). To determine the cost of a bullet, we then divided a ton of polymer priced at $1860.93 (http://plasticker.de/preise/preise_ecebd_en.php) by the mass of a bullet to determine how many bullets we could produce per ton of polymer and at what cost. We assumed a 90 percent efficiency rate for the polymer. We added an additional $0.015 to the cost of the bullet to account for additional materials such as copper and gunpowder. For 2014, the

BioBullet, Inc. 43

cost of bullets was $0.13 per bullet. For 2015, we assumed that we would benefit from efficiencies and the cost of the bullet would decrease to $0.115 per bullet. C14: Cost of the bullet trays provided by Midway USA (http://www.midwayusa.com/product/125282/frankford-arsenal-perfect-fit-reloading-tray-39mm-luger-9mm-makarov-50-round-blue). We assumed a 60 percent wholesale discount. N15: Using the percentage-of-sales method, estimated bad debt expense is 3.25 percent of sales due to anemic economic growth. C15: C22: Cost of boxes to hold the bullets provided by TopBrass (http://www.midwayusa.com/product/125282/frankford-arsenal-perfect-fit-reloading-tray-39mm-luger-9mm-makarov-50-round-blue). We assumed a 40 percent wholesale discount. C16: Cost of automated cartoner provided by PackagingEquipmentSale.com (http://www.packagingequipmentsale.com/Automatic_cartoner_equipment.html). C17: Cost of auditing services provided by CostHelper.com (http://smallbusiness.costhelper.com/accountants.html). C18: Cost of pallets provided by Uline (http://www.uline.com/BL_8206/Industrial-PlasticPallets). C19: Cost of forklift provided by Used-PalletRack.com (http://store.used-palletrack.com/usednissan-cushion-sit-down-forklift-lp-kcp-h01a15pv-1996/?gclid=CIjxoPPy_bkCFRKg4 AodhSwAWg). C20: BioBullet, Inc.s conservative estimate for gasoline costs during 2014 - 2015. C21: BioBullet, Inc.s authorized budget for advertising. C22: BioBullet, Inc.s authorized budget for software support. C23: Incorporated BioBullet, Inc. in Delaware (http://corp.delaware.gov/Aug11Fee.pdf). C24: BioBullet, Inc.s authorized budget for legal services. C25: BioBullet, Inc.s authorized budget for travel. C26: BioBullet produces 95,000 100-bullet cases of ammunition in 2014 and 157,500 cases in 2015, with volumes of 1237 and 2050 cubic feet, respectively (1 carton = 0.013ft3). A 53 Dry Van Truck has a volume of 3,950 cubic feet. We assumed 3 delivery shipments in 2014, and 5 in 2014. Lowest potential price is $200. Factoring in a variety of incidentals and assuming we would not qualify for the lowest quoted price, we conservatively assumed $300 per shipment (http://www.freightquote.com/freight/rates/texas-to-california.aspx; http://www.gwtrans.com/dry-freight-trucking/; http://www.walmart.com/ip/9mm-100-RoundGMJ-Ammunition-Pack/22027232). C27: BioBullet, Inc.s authorized budget for research & development. C28: 30 percent tax on profits from sales.

BioBullet, Inc. 44

C29: Purchased a three-year insurance policy for $60,000. C30: 7 percent interest rate for loan. C31: 4.377 percent interest rate for a thirty-year commercial mortgage with a twenty percent down payment (https://www.wellsfargo.com/mortgage/rates/).

BioBullet, Inc. 45

BioBullet, Inc.
Depreciation Schedule 2014 - 2015

Item

Property Computer Systems Security Cameras Desk Chairs Filing Cabinets Safe Reception Desk Logo Automated Cartoner Pallets Forklift

Purchase Value $ 720,000 $ 1,500 $ 200 $ 600 $ 280 $ 190 $ 500 $ 1,728 $ 400 $ 197,000 $ 65 $ 7,000

FY 2014 Salvage Value Useful Life $ 129,600 39 $ 350 3 $ 30 5 $ 100 5 $ 25 5 $ 35 5 $ 100 10 $ 350 5 $ 10 $ 32,000 8 $ 5 3 $ 1,100 4

Annual Depreciation Quantity Total Depreciation $ 15,138 1 $ 15,138 $ 383 2 $ 767 $ 34 3 $ 102 $ 100 9 $ 900 $ 51 10 $ 510 $ 31 4 $ 124 $ 40 1 $ 40 $ 276 1 $ 276 $ 40 1 $ 40 $ 20,625 1 $ 20,625 $ 20 28 $ 560 $ 1,475 1 $ 1,475 $ 40,557

BioBullet, Inc. 46

Item Property Computer Systems Security Cameras Desk Chairs Filing Cabinets Safe Reception Desk Logo Automated Cartoner Pallets Forklift

Purchase Value $ 720,000 $ 1,500 $ 200 $ 600 $ 280 $ 190 $ 500 $ 1,728 $ 400 $ 197,000 $ 65 $ 7,000

FY 2015 Salvage Value Useful Life $ 129,600 39 $ 350 3 $ 30 5 $ 100 5 $ 25 5 $ 35 5 $ 100 10 $ 350 5 $ 10 $ 32,000 8 $ 5 3 $ 1,100 4

Annual Depreciation Quantity Total Depreciation $ 15,138 1 $ 15,138 $ 383 5 $ 1,917 $ 34 3 $ 102 $ 100 11 $ 1,100 $ 51 13 $ 663 $ 31 5 $ 155 $ 40 1 $ 40 $ 276 1 $ 276 $ 40 1 $ 40 $ 20,625 1 $ 20,625 $ 20 65 $ 1,300 $ 1,475 1 $ 1,475 $ 42,831