Business Plan 08

Table of Contents
Section Executive Summary Company Overview
Mission Statement Goal

Page 3 5

Products and Services

Cell Phone GPS Capabilities Accessories Pricing NavAssist Potential

Market and Competitive Analysis

Industry Overview Characteristics and Needs of Target Market Competition

Management and Personnel

Key Individuals Personnel

12

Operations Plan
Expansion Marketing

14

Critical Risks

18

Internal Risks External Risks

Financial Statements
Cash Flow Break-Even Analysis Income Statement Balance Sheet

21

Offering
Funds Required ROI Potential Exit Strategies

26

Appendix A (Technology) Appendix B (Personnel) Appendix C (Sales Forecast)

27 30 31

Executive Summary
Company Overview
NavAssist is a company that will provide visually

Market Analysis
The main target market of NavAssist for the first year of operations will consist of the visually impaired who are currently employed in the state of Arkansas. Arkansas has approximately 90,000 blind people, of which 30,000 are

impaired individuals with a device that will help improve employed. Few companies have offered GPS technology to their quality of life. We are dedicated to enabling our assist the blind; however, they have not been widely customers to overcome the mobility barrier by offering accepted due to high pricing and lack of training for the end them an affordable and high quality product. user. By eliminating those barriers we will attract this

Product and Services

Our product enhances the ability of the blind to fulfill two of their most important needs: navigation and communication. NavAssist will combine cutting edge GPS elements with an audio command system to facilitate navigation for the blind and visually impaired.

untapped market.

Management
The NavAssist management team will be operated by four key individuals with diverse backgrounds and work experience. Those four key individuals include: Ivan Gomez as Chairman, Kyle Wood as Chief Financial Officer, Kris Lance as Chief Marketing Officer, and Pablo Oropin as Chief Technology Officer. Each team member contributes unique skill sets and experiences that will strengthen the daily operations. The management team is committed to live out

Navassist

its vision of helping the blind improve their quality of life. To achieve this, delivering a cost-efficient and high quality product at all times is the priority. NavAssist management team is well prepared to handle all aspects of operations to achieve its goal.

extremely profitable company. After conservatively forecasting sales among the target market, we have constructed financial statements that reflect NavAssist strategy.

Offering
NavAssist seeks an initial first year investment of $625,000 in equity financing. NavAssist requires this capital to cover its start-up costs until cash flows are available. In return for your risk we offer 30% ownership

Operations
NavAssist aims to maintain operations that are simplistic, cost efficient, and that can be handled in a timely manner. ECCO Design, Inc. will provide the development and manufacturing of our device. NavAssist will then be in charge of installing the GPS software package and applications. At that point the device will be ready for the customer to order. Upon receiving an order, we will ship product to its destination by way of the UPS carrier.

in the NavAssist, Inc. We calculate an average per year rate of return on investment of 35% over the first five years of operations.

Financial Statements
NavAssist has an opportunity to explore an underserved market. By empowering this market with greater mobility, NavAssist has a huge potential to become an

Navassist

Goals

Company Overview
By using current technology NavAssist will create an innovative product that will cater to and assist the visually

NavAssist will combine cutting edge GPS elements with an audio command system to facilitate navigation within one foot for the blind and visually impaired. The device will be user-friendly and the operating system will be

impaired public. Our product will help the sight-impaired easily handled. This device will enhance mobility among the keep up with a very mobile and fast paced society. By visually impaired by complementing previously available using GPS technology alongside mobile communications, alternatives (e.g. seeing eye-dogs) and providing a holistic NavAssist will bring services that will help increase their depiction of their surroundings. The product will be functions in everyday life. manufactured in an economical and cost effective manner,

Mission Statement
The mission of NavAssist is to provide visually impaired individuals with a device that will help improve their quality of life. We are dedicated to enabling our customers to overcome the mobility barrier by offering them an affordable and high quality product.

making it affordable to the end user. Our intent is to enable the product to be included in the coverage of health insurance plans.

Product and Services

The product and service combination of NavAssist merges the technology in the cell phone and global

Navassist

positioning system (GPS) industries in a manner which is practical for improving the lifestyle of the blind. Our product enhances the ability of the blind to fulfill two of their most important needs: navigation and communication. We offer a device similar to a standard cell phone with GPS capabilities. However, our product is based mostly on the reliance of a voice command system that makes the instructions within the menu and the courses of action taken by the user audible. NavAssist also incorporates the latest and most precise GPS systems, helping the blind visualize their route down to a foot of distance.

Cell Phone NavAssist cell phone system will use the GSM 900 and GSM 1800 frequencies so that it will work using any SIM card that cell phone companies may provide.
The appearance of the cellular telephone will have a close and an enter button will be a large, easily recognizable, and resemblance to a basic cell phone seen in the public today. centralized on the device. The phone will also have the nine It will include keypad buttons, a microphone, charger input, and a battery. The keypad buttons are the most important in the external design of the product. Up and down arrows

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digit keys below that. Upon pressing the enter button, an automated list of menu options will be voiced. The user can then select the option by: (1) verbal affirmation of the menu option title, (2) pressing enter as the option is being said, or (3) pressing the respective number of the desired command. With the joystick, the user has the option of scrolling directly to menu of their choice. Additionally, the phone will have voice dial-up for all the contacts in the address book, as well as a feature with warning commands for the status of the system (e.g. low battery, weak signal).

sidewalk.1 The information about the destination(s) will be entered through the keyboard and will be processed by the software to determine turn-by-turn directions by gathering data that is transmitted from the satellites to the GPS receiver. Our GPS contains ample memory for storing frequently traveled routes as it traces and stores user movement. Accuracy is notified to users based on the number of aligned satellites.2

Accessories
Many accessories will be offered to maximize the usefulness of

GPS Capabilities
The GPS system will be embedded in the NavAssist phone, and it will be able to advise an effective route when given a location. Accuracy is the defining quality of our GPS system, pinpointing the route within a foot of distance. The NavAssist utilizes the latest civil and military technology to
1

NavAssists guidance system and cell phone. Our headphone will help the user hear the commands

For more information, please refer to Appendix A, p. 27 Please refer to Appendix B, p. 30

guide users even while riding in a cab or walking down the

2

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accessories specified in the package. Shipping is for free. and respond to them as well. Protective casing and a remote-locater (similar to key locaters) will be offered for the device.3 Maps unique to specific cities and regions will be available to customers and can be easily uploaded onto our device from our website. These maps will ensure detailed and accurate information of the users area, including building information, street names, sidewalks, and other man-made and natural structures. Product/Service NavAssist Device Software Maps Total Product/Service price $570 $ 30 $600 There is an annual update fee for software upload for maps and points of interest of $30. Special locations layouts may be acquired for an extra cost of $10. The initial investment per customer is as following:

Pricing
NavAssist has created an affordable product to make it widely available to any visually impaired person who has the desire to improve his/her quality of life. Compared to other similar products in the market, our product is over sixty percent cheaper than the competition.4 The initial cost for NavAssist device is $570 and it includes all the

NavAssist Potential
NavAssist is aimed to serve clients who are legally blind and/or severely visually impaired. With the voice command system, GPS technology, and mobile communications, it is in our plans to adopt other services such as the news, weather forecasts, and satellite music

3 4

See also Appendix A, p. 27 Refer to Market and Competitive Analysis Section, p. 9

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stations for the comfort and enjoyment of the blind. Since our device is user-friendly and the technology can be easily adaptable, this enables us to tap into other markets; for example, clients with less severe visual impairment problems - especially the elderly. As GPS technology and mobile communications advances, our product will be modified accordingly. Upgrades of our product will be available for our customers with more capabilities and options that will enhance them with a higher quality of life. We also acknowledge that software will require attention in this regard as well. Maps of regions, city layouts, and points of interest change constantly. Our clients will be able to upload the most recent database of maps and have the most accurate information available at their fingertips at all times.

Market and competitive analysis

Industry overview
According to the American Foundation for the Blind, every seven minutes someone in America will become blind or visually impaired.5 Approximately 10 million Americans suffer from this kind of disability, and 1.3 million of them are legally blind. The Arkansas Department of Human Services reported in a news release in January 2002, that close to 90,000 Arkansans share this disability.6

Taken from the American Foundation for the Blind. <www.afb.org>

6 Quinn, Joe, Director of Communications DHS Division Helps Blind Arkansans Move into Workplace. Arkansas Department of Human Services. 18 Jan. 2002. < http://www.arkansas.gov/dhhs/oc/nrelease/blindvr.htm> accessed on 6 Feb. 2007.

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Nationally, among persons aged 21 to 64 that suffer from visual impairment, only 41.5% are employed.7 This data is significantly lower than the estimated 84% of The main target market of NavAssist for the first persons within this age who were employed without any year in phase one of operations will consist of the thirty kind of disability. In Arkansas the unemployment rate for percent (27,000) visually impaired who are currently blind people is 70%.8 employed in the state of Arkansas. NavAssist is currently Mobility is the major challenge for the visually exploring the possibility of obtaining insurance coverage for impaired, and their choices to travel are limited. The its device so it can be available to blind people that may not visually impaired need some type of assistance in this have the economic means. regard; whether by a human guide, a cane, a guide-dog, or Within the past three years, few companies have any other device, the blind cannot move from one place to made attempts to utilize GPS technology to assist the blind. another on their own. However, up until now, it has not been widely available. After interviewing a member of the administration at Arkansas School for the Blind and the Deaf, we were told that there is an extremely small percentage of blind people in Arkansas using a GPS guiding assistant of any form.
7

Characteristics & Needs of Target Market

After research, it is noticeable that the main deterrents of the technology are the high price of the products already available and the complexity of using the product. Many

Leonard, Robin. Statistics on Vision Impairment: A Resource Manual 2002 . < Research Institute at Lighthouse International. 5th Edition, April 2002. <http://www.lighthouse.org/downloads/researchstats.pdf> accessed on 6 Feb. 2007.
8

Quinn.

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among the blind believe that a GPS guiding assistant product would be a valuable tool in their life. With this GPS guiding assistant, the visually impaired can obtain a broader sense of their surroundings that extends beyond the immediate awareness that their canes and seeing-eye dogs provide. Despite the obvious practical advantages, the drawbacks of the costs and complexity of use drive customers away. By integrating existing technology of GPS, cell phone, and PDA models, and catering the device to the blind, NavAssist will drive the price down and increase the products value to the user. Value will increase as clients begin to have multiple tools to improve their lifestyle in one reasonably-sized device. NavAssist will focus on the 27,000 potential blind customers who are employed in Arkansas and draw up to eight percent (2,700 customers) of that population to buy the product in the first year by reducing economic limitations set by previous products.

Competition
At present, the product and services offered by NavAssist have limited direct competition with other organizations. Very few companies have either produced integrated GPS navigation systems, or mobile communications for the visually impaired. The predominant competitors in this field are the following: Sendero Group, a Company based out of California, has developed a GPS navigation system that gives its user directions by a mechanical voice (voice command system). Senderos main market and research is done primarily in its home area. Sendero has had a main competitive advantage on adapting technology to the blind since the year 2000. It has developed roughly seven different products catered to the blind. However, its BrailleNote GPS does not provide cell phone capabilities and in addition totes a hefty price tag at $1,549.

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Trekker, designed and manufactured by Canadabased company, VisuAid, has developed an application adapted for the blind and visually impaired. The application provides talking menus, talking maps and GPS information that run in a personal digital assistant (PDA). Humanwares Pocket PC has been adapted to provide functionality to Trekkers application. Trekkers device has comparable characteristics to those of Senderos BrailleNote GPS, but it also lacks the advantages of cell-phone capabilities. Its complex design has often resulted in a non user-friendly interface with the visually impaired. Its price is $1,695. Although NavAssist has a disadvantage entering into this market niche, NavAssist has the comparative advantage of providing a device that has been meticulously designed for the up most functionality of the visually impaired while providing navigation assistance and mobile communication simultaneously. NavAssist also offers an advantage in price

over the competitors to make its device more accessible to those who need it.9

Management and Personnel

Key Individuals
The NavAssist management team will be operated by four key individuals with diverse backgrounds and work experience. Each team member contributes unique skill sets and experiences that will strengthen the daily operations. The management team is committed to live out its vision of helping the blind improve their quality of life. To achieve this, delivering a cost-efficient and high quality product at all times is the priority. NavAssist management team is well prepared to handle all aspects of operations to achieve its goal.10

10

See Product and Services Section, p. 8 Please refer to Appendix D, p. 32 Resumes

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Kyle Wood
(CFO) Chief Financial Officer/Owner inancial Responsibilities: Accounting procedures including preparation of financial statements and book keeping, financial analysis, and administrative management by ensuring that all of the business finances are uring are-up-to date and remain current.

Ivan Gomez
(CSPO) Chief Strategic Planning Of Officer & Chairman/Owner Responsibilities: Leading the strategy framework and strategic planning process while capturing and analyzing industry trends, competitive threats, expansion ts, opportunities, internal performance, and deliver of datadelivery driven insights to help the progress of the company.

Pablo Oropin
(CTO) Chief Technology Officer/Owner Responsibilities: In charge of software development, programming, testing software, creating training demos for customers, updating maps and Application Programming Interfaces, and overseeing t the technology development.

Kris Lance
(CMO) Chief Marketing O Officer & Public Relations/Owner Responsibilities: Development and implementation of marketing strategies and activities, training and directing the sales force, analyzing new trends and markets, and administrative management.

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Personnel
NavAssists personnel requirements for the first year of operations (phase one) will consist of the following:

room for expansion upon request. The estimated space necessary for operations is 5,000 square feet with a total cost of $4,000 per month. Scott Hamilton warehouse is a heated and air-conditioned facility. The remodeling needed

Office Type Jan '08 Feb '08 Mar'08 Apr '08 May '08 Jun '08 Jul '08 Aug '08 Sep '08 Oct '08 Nov '08 Dec '08 AR Manager 4 4 4 4 4 4 4 4 4 4 4 4 Staf 6 6 6 6 8 8 8 8 8 8 9 14

is minimal and the offices can be easily equipped inside of the warehouse. The equipment requirements consist of basic office equipment and specific software that will enable us to carry the day-to-day operations. The estimated cost for the computers, desks, and accessories the first year is roughly

Operations Plan
NavAssist aims to maintain operations that are simplistic, cost efficient, and that can be handled in a timely manner. The operations will be directed out of the main facilities located in Scott Hamilton warehouse, Little Rock, AR. Scott Hamilton warehouse provides NavAssist with flexibility of operations since additions to original demands can be done almost instantaneously, thus, leaving NavAssist

$135,000. The software needed consist of the Application Programming Interface (OpenAPI), licensed by MapQuest with an annual cost of $5,000, and Visual Studio for general programming with a cost of $500. NavAssist operations begin at ECCO Design Inc. which will provide the development and manufacture of our device. ECCO Design is a New York based consultancy, which is highly experienced in helping businesses to develop innovative products that our users desire. It is also

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experienced in the telephony industry, and it recently has developed a PDA phone that is used by major user
ECCO Design End User

individually inspected and then passed to the engineering Department. At this point, programmers will upload the interface and maps, and will check that the devices perform at their optimal level. Finally, the devices will be carefully packed along with their accessories and stored at the warehouse until shipment. Once the Sales Department receives an order for the product, NavAssist will send an invoice to UPS for package pick-up. UPS will be responsible and liable for the product until it is delivered to the end user. Once the product is received and used by the end user, a NavAssists employee will contact the customer via telephone and ensure full customer satisfaction. If the customer requires assistance in how to further use the device, one of our programmers will proficiently guide them in trouble-shooting. In case of a defective product, it will be returned to the warehouse via UPS at the expense of

providers such as AT&T and

Follow-up

T-Mobile. Choosing

NavAssist

UPS

ECCO Design, will allow NavAssist

to obtain the device manufactured by Asian companies that presently deal with ECCO Design in a cost effective and timely manner. The estimated price for the development of the device is $80,000, plus a manufactured cost per unit of $212. After the manufacturing process, the devices will be shipped to NavAssist warehouse where they will be

NavAssist. NavAssists employees will also contact customers periodically concerning updates of maps and improvements in software that will be conveniently available

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in two forms: download at the NavAssist website, or delivery of CD Software upon request. NavAssist will provide a one-year manufacturer warranty for its device. In the case of a manufacture flaw, the device will be returned to ECCO Design for inspection and/or replacement.

Expansion
In Phase one, the first year of operations, NavAssist is expected to acquire eight percent of the employed blind people in the state of Arkansas. After spending a year in our home office in Little Rock, AR, we will expand by opening an office in Dallas, Texas. This is represented as phase 2 on the graphic. We will have trained managers and staff in December of the previous year in the Little Rock office to open the Dallas office. Our plan is to aggressively advertise the NavAssist name in Dallas and the surrounding area. Due to the large population in the small area, we foresee sales in the first year at Dallas to be $1,440,000, selling to 2,400 customers. In phase 3, starting in 2010, we will open an office in Houston, Texas. Again, the densely populated area will allow us to advertise aggressively and yield high sales. We plan to see

Phase 1 Phase 2

Phase 3

$1,800,000 in revenues from the first year of operation at the Houston office. In the following years we hope to expand the area of coverage in both Texas offices. In

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Dallas, we look to sale to the entire central region of the state, and in Houston, we hope to reach extend its boundaries as far as Louisiana. We predict sales will climb in each region until we 40% of our target market. When it appears we are approaching that mark in Arkansas we will begin selling a newly improved model of our product. We will then be able return to the early adopters of our device, as they will be looking for an upgrade. We predict that it will necessary to release the new GPS cell phone within year 2010 or 2011. Beyond our five year strategy, we have considered the idea of opening additional offices in the southeast region and opening up an avenue for online orders.

distinctive characteristics.

Therefore, NavAssists

marketing plan will focus on providing the most information about the benefits of the product and service while forming a bridge of a lasting relationship with the customer. This will be achieved through the following ways:

Expos NavAssist will design expos to specifically give potential customers the opportunity to test out the product and see how they can interact with their surroundings. Also, NavAssist will provide substantial information about its product and how the blind person can benefit from it. This marketing technique allows for personal interaction with the clients, allowing them to express their inquiries about the product and service, and the restrictions that may impede them from purchasing the product. Expos provide NavAssist with a first-hand-experience in identifying specific

Marketing
NavAssist will have a unique marketing strategy through different channels of communication that will help the visually impaired learn about its product. Mass advertising through media such as television will be of little use to NavAssist since its target market possesses

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customer needs and enables it to adapt its marketing strategies in a timely manner. Expos will be held every quarter during the year to increase the awareness of NavAssist product and to attract new customers. Literature ad Digital Demos Literature and digital demos will be distributed in schools, institutions, and government associations for the blind. Through these mediums, NavAssist intends to educate the blind population about the benefits that they can receive by using its product. Contact information, as well as a request forms, will be endorsed to the literature and digital demos for potential customers that desire to know more about the product and service. Word-of-mouth NavAssist recognizes that blind people usually have strong and bonding relationships with one another. That is why NavAssist will focus on building long lasting relationships with customers. Being helpful and assertive is a priority for NavAssist. With this strategy NavAssist is

confident that word-of-mouth will spread throughout its networks of friendships and acquaintances. NavAssists Web Page NavAssist Web Page will be the permanent medium of communication that provides broad information about the company, the products and services that it sells, and reviews of customers that are already using the product.

Critical Risks
Due to the exclusivity of our market, NavAssist has potential risks which are seen in any startup business plus others specific to our situation. We have forecasted these concerns, and we have devised brief plans with which to counter act these potential threats. It is essential for our success to implement a corrective strategy before a potential threat becomes a problem with financial repercussions. It is our goal to turn weaknesses into

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strengths and threats into opportunities. We distinguish internal risks from external risks below.

the device effectively to the visually impaired. Some of the most popular selling techniques will fail to develop a desire for the product among the visually impaired. There are also

Internal Risks
Lack of Experience in a Small Market In the relatively small visually impaired market, it is crucial to know their needs, wants, likes, and dislikes. As a new business in the field, it will require some catch up on research in their market. We have greatly reduced this threat by gathering information from organizations, institutions, and other businesses established for the visually impaired. They have explored what works and what fails: we have and will continue learning from that. Obviously, there is no substitute for first hand experience, but our constant attentiveness to current trends in the market should offset a huge hit. Staffing Risks Our sales will be sent to a unique set of customers. It will be very important to obtain the ability to showcase

certain common courtesies one should be aware of amongst the visually impaired. When our sales force is promoting the product we must insure the fact that they know how to respect the customers and bring product appeal to life for them. To meet this need we highly encourage prior experience with visually impaired when hiring staff. We will also have periodic in house seminars to keep staff and managers sharp on selling strategies. Over Estimation of Market Demand We feel we have forecasted sales conservatively, but have considered the threat of great market resistance to the technology. After research, we have found expense and lack of training to be unrivaled deterrents in the acceptance of similar devices. We are prepared to adjust prices to meet desired sales, but we would prefer to increase an expense to offer more training sessions (refer to Advertising

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Expense in Financial Statements). Our goal is to make use of the device common knowledge among the target market. Product familiarity is the key to wide distribution of our product.

Costs Increase The cost of our product is definitely vulnerable to fluctuation. An increase in production costs would directly affect the price we offer to our customers. We are willing to incur the extra costs without raising the price significantly if this occurs early in the business life, but after our name gains credibility, we expect that our market will be accepting of a price increase.

External Risks
Competition Offering New and existing companies may be able to offer the product at a reduced price. As price is a major factor in the industry, they would instantly be a threat. Our first projected line of defense is to have already established a reliable and respected brand name among the blind that they will prefer despite a higher price. If we have not gained that brand recognition, we are prepared to increase training for the product or decrease the price, resembling the solution mentioned to neutralize an over estimation of market demand.

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Cash Flow Statement

NavAssist, Inc. Statement of Cash Flow For the Years Ended December 31, 2008-2012 2008 Net CashFlow from Operating Activities Net Income Add: Depreciation Expense Less: Increase Inventory Increase Supplies Cash Provided by/Used for Operations Cash Flows from Investing Activities Payment for Purchase of Equipment Payment for Purchase of Furniture Cash Provided by/Used for Investing Activities Cash Flows from Financing Activities Received from Capital Contributions Cash Provided by Financing Activities 2009 2010 2011 2012

$49,855 21,000 (279,840) (1,000) (209,985)

$326,495 48,000 (16,960) (1,000) 356,535

$1,002,040 69,000 (312,700) (1,000) 757,340

$2,052,895 69,000 (291,500) 0 1,830,395

$2,398,240 69,000 (106,000) 0 2,361,240

(75,000) (60,000) (135,000)

(75,000) (60,000) (135,000)

(75,000) (60,000) (135,000)

0 0 0

0 0 0

625,000 625,000

0 0

0 0

0 0

0 0

Net Increase in Cash Beginning Cash Balance Ending Cash Balance

280,015 0 $280,015

221,535 280,015 $501,550

622,340 501,550 $1,123,890

1,830,395 1,123,890 $2,954,285

2,361,240 2,954,285 $5,315,525

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Break-Even Analysis

1,600,000

R e v e n u e s

1,400,000 1,200,000

Total Revenues Total Costs

Profit

1,000,000 800,000 600,000 400,000 200,000 0 0 250 500 750 1000 1250 1500 1750 2000 2250 2500

Variable Costs

Fixed Costs

Units Sold

As expressed in the chart above, NavAssist will become profitable in the first year of operations after attaining 2002 units sold, which represents revenues of roughly 1.2 million.

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INCOME STATEMENT
N avA s t, Inc. s is Income Statement For the Y ear E nded D ecember 31, 2008 January Sales (C O Goods Sold) ost f Gros M s argin Expenses: Adv ertising Licensing fee Product dev elopm ent R ent U tilities Supplies D epreciation Wages Salaries C omm isions (T otal Expenses) E arnings B efore Interes & Taxes t T axes (35%) N Income et $6,000 (2,120) 3,880 34,500 450 80,000 4,000 800 100 0 16,000 10,200 300 (146,350) (142,470) 49,865 ($92,606) February $9,000 (3,180) 5,820 5,700 450 3,000 4,000 800 100 0 16,000 10,200 450 (40,700) (34,880) 12,208 ($22,672) March $30,000 (10,600) 19,400 15,300 450 3,000 4,000 800 100 0 16,000 10,200 1,500 (51,350) (31,950) 11,183 ($20,768) April $39,000 (13,780) 25,220 5,400 450 3,000 4,000 800 100 0 16,000 10,200 1,950 (41,900) (16,680) 5,838 ($10,842) May $60,000 (21,200) 38,800 8,400 450 3,000 4,000 800 150 0 16,000 13,600 3,000 (49,400) (10,600) 3,710 ($6,890) June $93,000 (32,860) 60,140 16,800 450 3,000 4,000 800 150 0 16,000 13,600 4,650 (59,450) 690 (242) $449 July $108,000 (38,160) 69,840 7,400 450 3,000 4,000 800 150 0 16,000 13,600 5,400 (50,800) 19,040 (6,664) $12,376 August $141,000 (49,820) 91,180 10,300 450 3,000 4,000 800 150 0 16,000 13,600 7,050 (55,350) 35,830 (12,541) $23,290 Septem ber $174,000 (61,480) 112,520 14,600 450 3,000 4,000 800 150 0 16,000 13,600 8,700 (61,300) 51,220 (17,927) $33,293 October $192,000 (67,840) 124,160 7,000 450 3,000 4,000 800 150 0 16,000 13,600 9,600 (54,600) 69,560 (24,346) $45,214 N ember ov $228,000 (80,560) 147,440 15,000 450 3,000 4,000 800 200 0 16,000 15,300 11,400 (66,150) 81,290 (28,452) $52,839 D ecember $240,000 (84,800) 155,200 20,000 450 3,000 4,000 800 200 21,000 16,000 22,100 12,000 (99,550) 55,650 (19,478) $36,173 Year End $1,320,000 (466,400) 853,600 160,400 5,400 113,000 48,000 9,600 1,700 21,000 192,000 159,800 66,000 (776,900) 76,700 (26,845) $49,855

N avA s t, Inc. s is Income Statement For the Y ear E nded D ecember 31, 2009 January Sales (C O Goods Sold) ost f Gros M s argin Expenses: Adv ertising Licensing fee Product dev elopm ent R ent U tilities Supplies D epreciation Wages Salaries C omm isions (T otal Expenses) E arnings B efore Interes & Taxes t T axes (35%) N Income et $90,000 (31,800) 58,200 42,938 450 3,000 11,000 2,000 500 0 37,917 30,600 4,500 (132,904) (74,704) 26,146 ($48,558) February $111,000 (39,220) 71,780 16,388 450 3,000 11,000 2,000 500 0 37,917 30,600 5,550 (107,404) (35,624) 12,468 ($23,156) March $159,000 (56,180) 102,820 43,988 450 3,000 11,000 2,000 500 0 37,917 30,600 7,950 (137,404) (34,584) 12,104 ($22,480) April $180,000 (63,600) 116,400 15,525 450 3,000 11,000 2,000 500 0 37,917 30,600 9,000 (109,992) 6,408 (2,243) $4,165 May $216,000 (76,320) 139,680 24,150 450 3,000 11,000 2,000 550 0 37,917 30,600 10,800 (120,467) 19,213 (6,725) $12,489 June $264,000 (93,280) 170,720 48,300 450 3,000 11,000 2,000 550 0 37,917 30,600 13,200 (147,017) 23,703 (8,296) $15,407 July $279,000 (98,580) 180,420 21,275 450 3,000 11,000 2,000 550 0 37,917 30,600 13,950 (120,742) 59,678 (20,887) $38,791 August $309,000 (109,180) 199,820 29,613 450 3,000 11,000 2,000 550 0 37,917 30,600 15,450 (130,579) 69,241 (24,234) $45,007 Septem ber $384,000 (135,680) 248,320 41,975 450 3,000 11,000 2,000 550 0 37,917 30,600 19,200 (146,692) 101,628 (35,570) $66,058 October $402,000 (142,040) 259,960 20,125 450 3,000 11,000 2,000 550 0 37,917 30,600 20,100 (125,742) 134,218 (46,976) $87,242 N ember ov $441,000 (155,820) 285,180 43,125 450 3,000 11,000 2,000 650 0 37,917 37,800 22,050 (157,992) 127,188 (44,516) $82,672 D ecember $525,000 (185,500) 339,500 57,500 450 3,000 11,000 2,000 650 48,000 37,917 46,800 26,250 (233,567) 105,933 (37,077) $68,857 Year End $3,360,000 (1,187,200) 2,172,800 404,900 5,400 36,000 132,000 24,000 6,600 48,000 455,000 390,600 168,000 (1,670,500) 502,300 (175,805) $326,495

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NavAssist, Inc. Income Statement For the Years Ended December 31, 2008 2008 Sales (Cost Of Goods Sold) Gross Margin Expenses: Advertising Licensing fee Product development Rent Utilities Supplies Depreciation Wages Salaries Commisions (Total Expenses) Earnings Before Interest & Taxes Taxes (35%) Net Income 2009 2010 2011 2012

$1,320,000 $3,360,000 $6,900,000 $10,200,000 $11,400,000 (466,400) (1,187,200) (2,438,000) (3,604,000) (4,028,000) 853,600 2,172,800 4,462,000 6,596,000 1,193,900 5,400 36,000 208,000 14,000 9,800 69,000 650,000 741,600 510,000 (3,437,700) 3,158,300 (1,105,405) $2,052,895 7,372,000 1,338,400 5,400 36,000 212,000 14,000 10,000 69,000 650,000 777,600 570,000 (3,682,400) 3,689,600 (1,291,360) $2,398,240

160,400 404,900 949,400 5,400 5,400 5,400 113,000 36,000 36,000 48,000 132,000 200,000 9,600 24,000 12,000 1,700 6,600 9,200 21,000 48,000 69,000 192,000 455,000 650,000 159,800 390,600 644,400 66,000 168,000 345,000 (776,900) (1,670,500) (2,920,400) 76,700 (26,845) $49,855 502,300 (175,805) 1,541,600 (539,560)

$326,495 $1,002,040

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Balance Sheet
NavAssist, Inc. Balance Sheet December 31, 2008-2012 2008 Assets: Current Assets Cash Inventory Office Supplies Property and Equipment Furniture Accummulated Depreciation-Furniture Equipment Accummulated Depreciation-Equipment Total Assets: Liabilities: Stockholder's Equity: Contributed Capital Retained Earnings Total Liabilities and Stockholder's Equity 2009 2010 2011 2012

$ 280,015 279,840 1,000 60,000 (6,000) 75,000 (15,000) $674,855

501,550 296,800 2,000 120,000 (24,000) 150,000 (45,000) $1,001,350

1,123,890 609,500 3,000 180,000 (48,000) 225,000 (90,000) $2,003,390

2,954,285 901,000 3,000 180,000 (72,000) 225,000 (135,000) $4,056,285

5,315,525 1,007,000 3,000 180,000 (96,000) 225,000 (180,000) $6,454,525

$625,000 49,855 $674,855

$625,000 376,350 $1,001,350

$625,000 1,378,390 $2,003,390

$625,000 3,431,285 $4,056,285

$625,000 5,829,525 $6,454,525

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Offering
Funds Required
NavAssist seeks an initial first year investment of $625,000 in equity financing. NavAssist requires this capital to cover its start-up costs until cash flows are available. Our start-up costs will include, among other things, expenses for renting a facility out of which to operate, equipment and furniture, initial product development, stocking an inventory, and advertising.

Return on Investment
In return for your risk we offer 30% ownership in the NavAssist, Inc. We calculate an average per year rate of return on investment of 35% over the first five years of operations.

Exit Strategy
There are basically two different exit strategies offered to NavAssist investors. At the fifth years end of operations, the investors have the opportunity to sell their shares back at 35% per year rate of return. At this time, NavAssist plans to become a public traded company, and investors have the choice to either sell their shares at their convenience, or retain ownership in NavAssist.

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Appendix A (Technology)
NavAssist Components A lithium battery that operates between 15 and 20 hours A battery charger Input/Output USB port for uploading and downloading software and maps 512 kbs of memory storage Magellan Serial GPS receiver 10 alphanumeric keys with Braille keyboard, 1 key for send, 1 key for receive, and a mini joystick A crystal microphone (optimum for cell phone usage).11 NavAssist Software, which will merge MapQuest API, and GPS receiver software Circuit Board and Microprocessor designed by ECCO Design Company

GPS information The government of the United States of America is the only institution that operates the Global Positioning System's accuracy and maintenance. The Earth has 24 United States military satellites for the GPS, 12 in each hemisphere. Those 24 satellites rotate around the earth 2 times a day.

http://www.geosoft-gps.de/images/Gps_config.jpg
11

This microphone has an attached a diagram to the crystal. The crystal will create a signal when sound waves hit the diagram.

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A normal GPS receiver picks up around 12 satellites, but the accuracy of your actual position is not very reliable; it ranges around 20 feet. For instance, if the GPS receiver tells you that you are 1 foot away from Wal-Mart, it may be that you are actually are 20 feet away from Wal-Mart. For blind people this represents a huge dilemma because their current

location given by the GPS receiver has to be as accurate as possible to the genuine one. Thus, NavAssist uses a GPS receiver that will be able to register around 16 satellites at a time. 15 of these satellites are United States military satellites and 1 of them will be a geostationary one (it is statitc: it doesnt not rotate around the earth) called Wide Area Augmentation System (WAAS). NavAssist GPS receiver will then be able to have an accuracy of around 1 foot which is as close as possible to the real position; that can make the difference between a sidewalk and a highway. How does NavAssist GPS system work?

Longitude

NavAssist contains a GPS receiver whose purpose is to track at least 16 satellites. This GPS receiver indicates the altitude and latitude of the current location of the device. This information is used to compare it with the database inside the device by using our

NavAssist software so that the device will be

Latitude
http://www.enchantedlearning.com/usa/activity/latlong/mapanswers.GIF

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able to determine nearby places, streets, avenues, etc.

NavAssist GPS receiver is a Magellan Serial receiver which uses the NMEA 0183 protocol (this protocol is used by most GPS receivers, and its purpose is to define how data is transmitted between a satellite and GPS receiver). This GPS receiver will be able to pick up the WAAS satellite necessary for the accuracy of our system.

NavAssist Software Given the altitude and longitude by our GPS receiver, our software will be able to generate detailed information about the speed and the direction at which our blind costumer is traveling at. This software will calculate those parameters by

measuring altitude and longitude samples every half-second from the GPS receiver. Furthermore, this software will be able to calculate the distance and direction from a street or intersection to where our blind customer wants to go by requesting the altitude and longitude coordinates from the place of destination and applying mathematical algorithms. NavAssist software will also complete a text to speech conversion so that our device can interact with our blind costumers. This capability will be made possible by using SAPI 4.0a SDK Suite within our software which is a free open-source application programming interface that converts text to speech.

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Appendix B (Personnel)
Office AR Type Manager Staff Manager Staff Manager Staff Jan '08 4 6 Feb '08 4 6 Mar'08 4 6 Apr '08 4 6 May '08 4 8 Jun '08 4 8 Jul '08 4 8 Aug '08 4 8 Sep '08 4 8 Oct '08 4 8 Nov '08 4 9 Dec '08 4 14

TX-Dal

TX-Hou

Office AR

Type Manager Staff Manager Staff Manager Staff

Jan '09 4 9 3 8

Feb '09 4 9 3 8

Mar'09 4 9 3 8

Apr '09 4 9 3 8

May '09 4 9 3 8

Jun '09 4 9 3 8

Jul '09 4 9 3 8

Aug '09 4 9 3 8

Sep '09 4 9 3 8

Oct '09 4 9 3 8

Nov '09 4 11 3 10

Dec '09 4 16 3 10

TX-Dal

TX-Hou

Office AR

Type Manager Staff Manager Staff Manager Staff

2010 4 12 3 12 3 10

2011 4 12 3 12 3 12

2012 4 12 3 12 3 12

TX-Dal

TX-Hou

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Appendix C (Sales Forecast)

Total Sales Arkansas Texas-Dallas Texas-Houston Total # customers # Customers Arkansas # Customers Texas-Dallas # Customers Texas-Houston

2008 $1,320,000 1,320,000 0 0 2,200 2,200 0 0

2009 $3,360,000 1,920,000 1,440,000 0 5,600 3,200 2,400 0

2010 $6,900,000 2,940,000 2,160,000 1,800,000 11,500 4,900 3,600 3,000

2011 $10,200,000 3,720,000 3,360,000 3,120,000 17,000 6,200 5,600 5,200

2012 $11,400,000 4,080,000 3,720,000 3,600,000 19,000 6,800 6,200 6,000

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