CounterWatch™ - Investor Presentation Financial Forecast 2015-2016

2015 Income Forecast for CounterWatch™Start-up Year - Initial Small Test Orders in Two Pet Superstore Chains

Units Sold 54000

Column Entry January February March April May June July August September October November December Year to Date TotalGross Sales Revenue $0 $0 $0 $0 $86,400 $43,200 $129,600 $302,400 $0 $216,000 $172,800 $21,600 $972,000Gross Monthly Invoice Amounts (ref.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Direct Sales to Superstore Retailer $0 $0 $0 $0 $86,400 $43,200 $129,600 $302,400 $0 $216,000 $172,800 $0 $950,400

Total # Superstore Sales 0 0 0 0 2 1 1 2 0 1 1 0 8Direct Sales to Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,600 $21,600

Total # Distributor Sales 0 0 0 0 0 0 0 0 0 0 0 1 1International Direct Sales to Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total # Intl. Distributor Sales 0 0 0 0 0 0 0 0 0 0 5 0 5International Royalties in Perpituity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total # Licensse Payments 0 0 0 0 0 0 0 0 0 0 0 0 0Cust. Paid Ship Out Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Revenue (Non-Sales Revenue) $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($150,000) $150,000Revenue from Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Revenue from Investments or Loans $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($150,000) $150,000

Gross Revenue Total $300,000 $0 $0 $0 $86,400 $43,200 $129,600 $302,400 $0 $216,000 $172,800 ($128,400) $1,122,000

Direct Cost of Total Sales $180 $180 $3,180 $180 $45,131 $28,656 $67,607 $169,509 $180 $118,558 $96,082 $11,418 $540,859COG to Superstore Retailer $0 $0 $0 $0 $43,223 $21,612 $64,835 $151,281 $0 $108,058 $86,446 $0 $475,453COG to Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,806 $10,806COG to International Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Landed Costs - Imported Components $0 $0 $3,000 $0 $0 $6,000 $0 $12,000 $0 $6,000 $6,000 $0 $33,000Purchase Order Factoring Fee $0 $0 $0 $0 $1,728 $864 $2,592 $6,048 $0 $4,320 $3,456 $432 $19,440Product Liability Insurance $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $2,160Outbound Shipping Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Cost to Replace Damaged / Lost Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Compensation Paid Costs $9,222 $9,222 $9,222 $15,576 $9,222 $9,222 $15,576 $15,576 $21,577 $21,577 $15,399 $21,577 $172,966Employee Compensation Costs $8,375 $8,375 $8,375 $14,135 $8,375 $8,375 $14,135 $14,135 $19,575 $19,575 $13,975 $19,575 $156,980Stock Holder Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ACP Matched Employee Witholding Costs $641 $641 $641 $1,081 $641 $641 $1,081 $1,081 $1,497 $1,497 $1,069 $1,497 $12,009ACP Employer Paid Costs $206 $206 $206 $359 $206 $206 $359 $359 $504 $504 $355 $504 $3,977Sub-Contractor Labor & Comissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Fixed Costs Total $500 $500 $500 $3,100 $500 $1,100 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $31,700Office, Assembly and Warehouse $0 $0 $0 $2,600 $0 $600 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $25,700Remote Office Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000

Indirect Costs Total $91,295 $1,025 $78,675 $13,976 $8,675 $175 $9,217 $7,159 $7,925 $2,867 $2,867 $1,325 $225,182Advertising & Promotion $0 $0 $0 $1,901 $0 $0 $100 $0 $100 $0 $0 $0 $2,101General Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Packaging Supplies $0 $0 $0 $500 $0 $0 $1,042 $2,083 $0 $1,042 $1,042 $0 $5,708Shipping Charges (misc.) $0 $0 $0 $1,400 $0 $0 $0 $0 $0 $0 $0 $0 $1,400Office Phones $0 $0 $0 $0 $0 $0 $150 $150 $150 $150 $150 $150 $900Utilities $0 $0 $0 $0 $0 $0 $1,250 $1,750 $1,000 $1,500 $1,500 $1,000 $8,000Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Internet Services $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $902Professional Services (Accounting & Legal) $11,950 $850 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,800Bank Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Interest Paid On Late Payments & Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200Business Licenses and Patent Fees $3,970 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,970Tax Fees : Federal, State, and Local $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Travel Mileage Costs $200.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $200

Aprox. Miles Driven 357 0 0 0 0 0 0 0 0 0 0 0 357Business Meals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Travel, Lodging and or Show Event $0 $0 $3,500 $7,000 $8,500 $0 $3,500 $0 $3,500 $0 $0 $0 $26,000Tools & Equipment (under $250) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Tools & Equipment (over $250) $75,000 $0 $75,000 $3,000 $0 $0 $3,000 $3,000 $3,000 $0 $0 $0 $162,000

Net Product Profit Before Costs $300,000 $0 $0 $0 $43,177 $21,589 $64,766 $151,120 $0 $107,943 $86,354 ($139,206) $635,741Direct Sales to Superstore Retailer $0 $0 $0 $0 $43,177 $21,589 $64,766 $151,120 $0 $107,943 $86,354 $0 $474,947Direct Sales to Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,794 $10,794International Direct Sales to Distributor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0International Royalties in Perpituity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit After Costs $198,803 ($10,927) ($91,577) ($32,832) $22,872 $4,047 $32,951 $105,907 ($33,932) $68,749 $54,202 ($166,970) $151,294

Net Profit Margin After Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! 26% 9% 25% 35% #DIV/0! 32% 31% -79% #DIV/0!

2016 Income Forecast for CounterWatch™Second Year – Monthly Low Volume Sales in Pet Superstore Chains

Total Units Sold 602400

Column Entry January February March April May June July August September October November December Year to Date TotalGross Sales Revenue $777,600 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $10,065,600Gross Monthly Invoice Amounts (ref.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Direct Sales to Superstore Retailer $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $777,600 $9,331,200

Total # Superstore Sales 3 3 3 3 6 6 6 6 3 6 6 3 54Direct Sales to Distributor $0 $86,400 $0 $86,400 $0 $86,400 $0 $86,400 $0 $86,400 $0 $86,400 $518,400

Total # Distributor Sales 0 1 0 1 0 1 0 1 0 1 0 1 6International Direct Sales to Distributor $0 $0 $43,200 $0 $43,200 $0 $43,200 $0 $43,200 $0 $43,200 $0 $216,000

Total # Intl. Distributor Sales 0 0 1 0 1 0 1 0 1 0 9 0 13International Royalties in Perpituity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $216,000

Total # Licensse Payments 0 0 0 0 0 0 0 0 0 0 0 0 0Cust. Paid Ship Out Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Revenue (Non-Sales Revenue) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Revenue from Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Revenue from Investments or Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Revenue Total $777,600 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $820,800 $864,000 $10,065,600

Direct Cost of Total Sales $430,659 $475,610 $453,135 $475,610 $453,135 $475,610 $453,135 $475,610 $453,135 $475,610 $453,135 $475,610 $5,549,992COG to Superstore Retailer $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $389,007 $4,668,084COG to Distributor $0 $43,223 $0 $43,223 $0 $43,223 $0 $43,223 $0 $43,223 $0 $43,223 $259,338COG to International Distributor $0 $0 $21,612 $0 $21,612 $0 $21,612 $0 $21,612 $0 $21,612 $0 $108,058Landed Costs - Imported Components $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $25,920 $311,040Purchase Order Factoring Fee $15,552 $17,280 $16,416 $17,280 $16,416 $17,280 $16,416 $17,280 $16,416 $17,280 $16,416 $17,280 $201,312Product Liability Insurance $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $180 $2,160Outbound Shipping Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Cost to Replace Damaged / Lost Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Compensation Paid Costs $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $69,019 $828,223Employee Compensation Costs $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $62,595 $751,140Stock Holder Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ACP Matched Employee Witholding Costs $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $4,789 $57,462ACP Employer Paid Costs $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $1,635 $19,621Sub-Contractor Labor & Comissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Fixed Costs Total $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $51,000Office, Assembly and Warehouse $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $45,000Remote Office Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000

Indirect Costs Total $9,825 $7,325 $10,575 $7,325 $7,075 $7,325 $10,575 $7,325 $10,575 $7,325 $7,075 $7,325 $99,652Advertising & Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0General Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Packaging Supplies $4,500 $5,000 $4,750 $5,000 $4,750 $5,000 $4,750 $5,000 $4,750 $5,000 $4,750 $5,000 $58,250Shipping Charges (misc.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Office Phones $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $1,800Utilities $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Internet Services $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $902Professional Services (Accounting & Legal) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Bank Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Interest Paid On Late Payments & Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200Business Licenses and Patent Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Tax Fees : Federal, State, and Local $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Travel Mileage Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0

Aprox. Miles Driven 0 0 0 0 0 0 0 0 0 0 0 0 0Business Meals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Travel, Lodging and or Show Event $0 $0 $3,500 $0 $0 $0 $3,500 $0 $3,500 $0 $0 $0 $10,500Tools & Equipment (under $250) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Tools & Equipment (over $250) $3,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000

Net Product Profit Before Costs $388,593 $431,770 $410,182 $431,770 $410,182 $431,770 $410,182 $431,770 $410,182 $431,770 $410,182 $431,770 $5,030,121Direct Sales to Superstore Retailer $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $388,593 $4,663,116Direct Sales to Distributor $0 $43,177 $0 $43,177 $0 $43,177 $0 $43,177 $0 $43,177 $0 $43,177 $259,062International Direct Sales to Distributor $0 $0 $21,589 $0 $21,589 $0 $21,589 $0 $21,589 $0 $21,589 $0 $107,943International Royalties in Perpituity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit After Costs $263,847 $307,796 $283,822 $307,796 $287,322 $307,796 $283,822 $307,796 $283,822 $307,796 $287,322 $307,796 $3,536,733

Net Profit Margin After Cost 34% 36% 35% 36% 35% 36% 35% 36% 35% 36% 35% 36% 35%

Manufacturing Facility for CounterWatch™

Location :

3,000 Sqf. Needed$1.25 Cost per Sqf. NNN

Department Area RequirementAproximate Area Size

Sqf. Needed

Administration

Office1 - President - Product Developer 10'x20' 200 Office2 - Operations Manager 10'x15' 150 Office3 - Bookkeeping 10'x15' 150

Media Dept.

Office4a - PR Media Rep - Domestic 10'x8' 80 2 11,185 22,370 Office4b - PR Media Rep - International 10'x8' 80

2 11,185 22,370Sales Dept. Monthly Mfg. Capacity : 44,740

Office4c - Sales Rep - Domestic 10'x8' 80 Office4d - Sales Rep - International 10'x8' 80

Assembly and QC Area

Office5 - Production Manager 10'x10' 100 (1) 10K Unit Monthly Shift Team 10'x20' 200 (1) 10K Unit Monthly Shift Team 10'x20' 200

Product Packaging Area

Supports (1) 10K Unit Monthly Shift Team 10'x8' 80 Supports (1) 10K Unit Monthly Shift Team 10'x8' 80

Shipping and Receiving Dept.

Shipping and Receiving Bench and Area 10'x20' 200

Warehouse

Receiving - CounterWatch Parts/Components 10'x20' 200General Inventory Stock 10'x20' 200Pending Domestic Dispatch 10'x20' 200Pending International Dispatch 10'x20' 200

TOTAL : 2,480 Sqf. Workspace Area

CounterWatch™Manufacturing Facility

Mfg. Facility SpecificsTBD - Low Cost Area

Desk and Shelving.Desk and Shelving.

CounterWatch™Monthly Production Capacity

CounterWatch™ Employee Facilities

$3,750.00CounterWatch™ : AVG MFG FACILITY Cost :

Night Shift Teams

Day Shift Teams

(1) 3'x5' Bench

Assembly & QC Depts.

Packaging Dept.

Desk and Shelving.(4) 3'x5' Tech Benches(4) 3'x5' Tech Benches

(1) 3'x5' Bench

Storage Racks-Shelves.Storage Racks-Shelves.

Desk and Shelving.

Desk and Shelving.Desk and File Cabinets.

Furnishings and Equipment

Large "L" Desk and Shelving.

Front Office

Media & Sales Depts.

Desk and Shelving.

Storage Racks-Shelves.Storage Racks-Shelves.

(1) 6'x8' Bench and Shelving.

Shipping Dept. & Warehouse

Manufacturing Cost for CounterWatch™

CounterWatch™ : AVG MFG Cost per Unit : $9.00CounterWatch™ : DIST. Cost per Unit : $18.00 50% MFG GM Selling to DIST.CounterWatch™ : DLR Cost per Unit : $21.25 15% DIST GM Selling Wholesale to Retailer

CounterWatch™ : MSRP : $46.95 55% Retailer GM Selling MSRP to Customer

Part or ComponentSource Country Vendor Name

1k-10K Unit Cost

Unit Cost @10k-50K

Unit Cost @50k-100K

Electronic Components - China

1) DC Motor - Gear Reduction China Various $3.00 $2.00 $1.75 2) Integrated Electronics PCB China TBD $2.50 $2.25 $1.85

- Landed Costs of Imported Components

1) SGS, Shipping, Duties & Brokerage Fees China Port Landed Under MOQ $0.60 $0.50 cost of imported goods @ 25%

TOTAL : Under MOQ $4.85 $4.10

Plastic Injected Parts - Outside Contractor

1) Lower Chassis USA Mold House Under MOQ $0.69 $0.50 2) Top Cover Housing USA Mold House Under MOQ $0.69 $0.50 3) Spray Fluid Reservior Assy. USA Mold House Under MOQ $0.52 $0.50 4) Spray Fluid Pump Assy. USA Mold House Under MOQ $0.14 $0.10

TOTAL : Under MOQ $2.04 $1.60

Plastic Injected Parts - Outside Contractor

1) Spray Fluid Nozzle Assy. USA Delta Industries Under MOQ $0.30 $0.20

Miscellaneous Parts - Vendors

1) O-Ring Type Seals (Piston & Nozzle) USA Parker Seals $0.0020 $0.0017 $0.0015 2) Fluid Pickup Tube & Filter USA McMaster Carr $0.0020 $0.0017 $0.0015 3) Check Valve Spring USA McMaster Carr $0.0020 $0.0017 $0.0015 4) Check Valve Balls USA McMaster Carr $0.0020 $0.0017 $0.0015 5) Fastener Screws USA Various $0.0020 $0.0017 $0.0015

TOTAL : Under MOQ $0.0085 $0.0075

Assembly Labor - Labor

1) Labor - Assemble and QC Test USA Self or Various $0.85 $0.85 $0.85

Packaging Cost

1) Clamshell Packaging for CounterWatch USA Impact Mfg Under MOQ $0.75 $0.70 2) Pack in Clamshell Packaging USA Self or Various $0.15 $0.10 $0.05

TOTAL Cost per Unit : Under MOQ $9.75 $8.26

Possible to cut cost up to 15%.

CounterWatch™Manufacturing Cost - COG Per Assembled & Packaged Unit

Channel Gross Margins

Notes





Manufacturing Labor for CounterWatch™

CounterWatch™ : AVG MFG Cost per Unit : $9.00CounterWatch™ : DIST. Cost per Unit : $18.00 50% MFG GM Selling to DIST.CounterWatch™ : DLR Cost per Unit : $21.25 15% DIST GM Selling Wholesale to Retailer

CounterWatch™ : MSRP : $46.95 55% Retailer GM Selling MSRP to Customer

Produciton Shift TeamEmployee

WageTime Needed

in MinutesProduct Step

Cost

Assembly Tech - Assembly Labor $14.50 - -

UPPER TOP COVER HOUSING 1) Install Electronic Component PCB $14.50 0.15 $0.04 2) Install Voice Module Speaker $14.50 0.15 $0.04 3) Install Battery Contact Rails & Cover $14.50 0.15 $0.04$14.50LOWER CHASSIS $14.50 1) Install Voice Module Mic & Switches $14.50 0.15 $0.04 Assy Tech1 23 173 2) Install Spray Fluid Pump $14.50 0.15 $0.04 Assy Tech2 23 173 3) Install DC Motor Gear Reduction Motor $14.50 0.15 $0.04 Assy Tech3 23 173 4) Install Spray Reservior Pickup Tube and Filter $14.50 0.10 $0.02 TOTAL : 519

$14.50SPRAY FLUID RESERVOIR NOZZLE $14.50 1) Assemble Spray Nozzle $14.50 0.20 $0.05 QC Tech1 69 520 2) Affix Spray Nozzle to Housing $14.50 0.15 $0.04

$14.50SPRAY FLUID RESERVOIR $14.50 1) Bond Spray Fluid Reservior to Lower Chassis $14.50 0.60 $0.15 Units 2) Install O-Ring to Fill Plug Screw to Reservior $14.50 0.15 $0.04 Weekly Production 2,601

ASSEMBLE TOP COVER TO LOWER CHASSIS Monthly Production 11,185 1) Connect Wire Harness $14.50 0.10 $0.02 2) Connect Spray Nozzle Tube to Pump $14.50 0.10 $0.02 Monthly 3) Affix Top Cover to Lower Chassis (4) Screws 0.20 $0.05 Mfg. to DIST. Profit $100,611 4) Affix Rubber Feet Pads atop (4) Screws 0.10 $0.02 Mfg. Labor Cost Total $24,768

$14.50

TOTAL Assembly Time & Cost : 2.6 $0.63 $75,843

QC Tech - Quality Control Labor $15.50

TEST COUNTERWATCH FOR OPERATIONTest for Leakage and Operation $15.50 0.9 $0.22

TOTAL QC Time & Cost : 0.87 $0.22

TOTAL Production Labor : 3.465 min @ $0.85 Mfg. Labor Cost

Monthly Shift Team Nets :

Per Shift Team

CounterWatch™Manufacturing Production Labor Cost - 10K Units Monthly Shift Team

Channel Gross Margins

(3) Assy. Techs & (1) QC Tech

CounterWatch™ Units BuiltPer Shift Team

EmployeeUnits per

HourUnits per

Shift

Shift Hours 7.5

Short-Term Investment Loan Fund up to $300,000

Product Launch to Market Phase or for Startup Year Manufacturing ________________________________________________________________________________________________________________________________________________________

Current List of Investors

Type Date Funded

Loan Amount

Loan Term In Years

APR % ROI Amount (P&I)

1 2 22.50% $02 2 22.50% $03 2 22.50% $04 2 22.50% $05 2 22.50% $06 2 22.50% $07 2 22.50% $08 2 22.50% $09 2 22.50% $0

10 2 22.50% $0

11 2 22.50% $012 2 22.50% $013 2 22.50% $014 2 22.50% $015 2 22.50% $016 2 22.50% $017 2 22.50% $018 2 22.50% $019 2 22.50% $020 2 22.50% $021 2 22.50% $022 2 22.50% $0

23 2 22.50% $024 2 22.50% $025 2 22.50% $0

Total Amount of Loans : $0 Term Interest : $0

Level 1 - $1,000+

Level 2 - $25,000+

Level 3 - $50,000+

Investor Name

List of Foreign Exclusive Manufacturing and or Distribution Licensees________________________________________________________________________________________________________________________________________________________

Current List of ForeignManufacturing and Distribution Licensees

Country - Licensee Name

Date of License

Licensing Fee Royalty Advance

Term of License Royalty Paid to Licensor

CanadaMulti-Vet Ltd.

TBA $100,000Non-Refundable

5 yearsRenewable

5% of Gross Annual Sales

CounterWatch™AUTOMATIC SPRAY DETERRENT SYSTEM

USPTO Private PAIR Registered; Inventor #126527

Current IP Status of Utility Patent

PATENT PENDINGReg. No. 14486090Filed 09/15/14

Current IP Status of Design Patent

PATENT PENDINGReg. No. 29507159Filed 10/24/14

Current IP Status of USPTO PCT Foreign FilingAwaiting Investor Capital Infusion.Reg. No. TBATo be Filed TBA

Current Registered Trademark StatusReg. No. TBATo be Filed 10/30/14

Intellectual Property InformationProperty Rights and Status

CounterWatch™ Sentry

Emerge Products, LLCSeattle, WA USA

Website : TBA

Contact Info :Shawn [email protected]

*** Please Contact Me For More Details ***

Let’s Talk… about our options

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