GROWIFY

What Will You GROW?

Presented by:Erik Tetland

What is GROWIFI?

Who Will Buy it?

Are there Competitors?

$30 $50-$150 $800+

Why GROWIFI?

Mid-Range Price of $100

Why GROWIFI?

How is it Made?

Is it Risky?

Sales200 per month, 20% cushion to breakeven

Competition Small barrier to entry

Minimizing RiskKickstarter

Is it Feasible?

Equity Investment$45,000

Employment Opportunity$15-$30 per hour, PT or FT

Dividends$30,000 in year 3, and increasing

Any Questions?

Parts Quantity Cost EachPurchase Cost Total

Power Supply 1 $3.00 $3.00

Microcontroller 1 $3.00 $3.00

Lights 1 $5.00 $5.00

Pump 1 $4.00 $4.00

Fan 1 $3.00 $3.00

Hose 1 $0.50 $0.50

Switches 2 $1.00 $2.00

Buttons 2 $0.05 $0.10

Cables 15 $0.10 $1.50

Soldering Supplies 20 $0.05 $1.00

Housing 1 $5.00 $5.00

Blank Labels 1 $1.00 $1.00

Packaging 1 $3.00 $3.00

Total: $32.10

Direct Parts Cost Product #1

Direct Labour Cost Product #1

Total Cost Parts Average Shipping Cost Total direct costs per unit$32.10 $15.00 $53.93

Step 1 Preparing PartsStep 1A Wire Harness $1.05

Step 2 Preparing ControllerStep 2A Upload Software $0.18

Step 3 AssemblyStep 3A Housing $1.75Step 3B Attaching parts $1.05Step 3C Connecting Wires $0.35

Step 4 TestingStep 4A Testing $0.70Step 4B Packaging/Labeling $1.75

$6.83

Labour Costs per unit

Total direct labour cost:

Sensitivity Analysis (Sales)

Monthly Sales (Units) 120 150 210 175.5 202.5Net Income -$28,877 -$10,963 $27,115 $92,886 $149,314

172 215 301 252 2910 $23,229 $71,410 $169,144 $253,171

190 238 333 278 321$8,549 $34,379 $87,682 $195,655 $288,511

150 188 263 219 253-$12,290 $10,671 $51,268 $135,985 $208,970

2016 2017 2018 2019 2020

Future Possibilities

Supply Restaurants

Commercial Greenhouses

Seed Pods

Nutrient Solutions

The Team

Income StatementSales Revenue

Model 1 240,000 306,000 436,968 245,139 250,042 Model 2 - - - 318,362 470,858

Total 240,000 306,000 436,968 563,501 720,900

Cost of Goods Sold 172,945 206,723 272,256 267,203 311,303

Gross Margin 67,055 99,278 164,712 296,299 409,597

Management Costs 24,000 24,480 24,970 25,469 25,978 Marketing Costs 14,700 14,994 15,294 15,600 15,912 Software Development 6,000 6,120 6,242 6,367 6,495 Hardware Development 6,000 6,120 6,242 6,367 6,495 Interest 1,000 836 656 458 240

Total Expenses 51,700 52,550 53,404 54,261 55,119

Income before Taxes 15,355 46,727 111,308 242,038 354,478 Taxes 1,996 6,075 14,470 31,465 46,082

Net Income 13,359 40,653 96,838 210,573 308,396

Beg Retained Earnings - 13,359 54,012 113,698 236,636 Net Income(Loss) 13,359 40,653 96,838 210,573 308,396 Dividends - - 37,152 87,635 209,746 End Retained Earnings 13,359 54,012 113,698 236,636 335,286

Dividend Policy $50,000.00

COGSDirect Materials Per Unit 2,016 2,017 2,018 2,019 2,020

Model 1 32.10 77,040 96,300 134,820 74,151 74,151

Model 2 50.00 - - - 60,000 87,000

Direct Labour Cost

Model 1 6.83 16,380 20,475 28,665 15,766 15,766

Model 2 10.00 - - - 12,000 17,400

Average Shipping Cost

Model 1 15.00 36,000 45,000 63,000 34,650 34,650

Model 2 20.00 - - - 24,000 34,800

Direct Costs 129,420 161,775 226,485 220,567 263,767

Overhead

Lease 36,000 36,720 37,454 38,203 38,968

Utilities 6,000 6,120 6,242 6,367 6,495

Insurance 750 765 780 796 812

Capital Cost allowance 775 1,343 1,294 1,269 1,262

Overhead Costs 43,525 44,948 45,771 46,636 47,536

COGS 172,945 206,723 272,256 267,203 311,303

Average cost per Unit 72 69 65 76 77

Average sale price 100 102 104 161 178