Cost & Revenue Model Summary

Year1 % Year2 % Year3 %Revenue 1,910,820 1 2,503,371 1 3,944,163 1 Cost of Goods Sold 144536455% 76% 167378079% 67% 284542734% 72%Gross Margin 465,455.50 0.24 829,590.19 0.33 1,098,736.04 0.28 Cost of Sales APP and Marketing 4058579% 2% 4406158% 2% 5339058% 1%Cost of Product Development 11940000% 6% 13731000% 5% 15790650% 4%Costs of Salaries Wages and benefits 264,000 0 501,600 0 613,800 0 Other Operating expenses 83400 0.0436 87570 0.034981 91948.5 0.023313Total Expenses 347,400 0 589,170 0 705,749 0 Net Profit before Taxes & Finance Leverage 118,055.50 0.0618 240420.1858 0.096039 392987.5387 0.099638Finance Leverage 89,638 0 113,148 0 177,559 0 Taxes 7,104 0 31,818 0 53,857 0 Net Profit 2131296% 1% 9545448% 4% 16157156% 4%

Assumptions:Finance Leverage as % of Cost and Expenses

GPS Device + Pet collar : Pet tracker deviceVariables &

Year 1 Year 2 Year 3UNITS 16.262 21.954 37.322 Increase Per Month/Year 35% 35% 70%Pet Collar List Price $ 125,00 112,50 100,00 Pet Collar List Price Increment -10% -10% -10%Discount % 30% 30% 30%Maintainance Fee $ 487.869 724.485 1.231.625 Advertisement Incomes 50.000 100.000 Sales Revenues 1.910.820 2.503.371 3.944.163 Costs of Goods soldGPS device 1.071.512 1.185.522 2.015.387 Collar 65.049 96.598 164.217 GPS & Collar Cost Increment -10% -10% -10%Import Costs 113.656 128.212 217.960 packaging 16.262 21.954 37.322 Insurance 16.262 21.954 37.322 App/Media 162.623 219.541 373.220 Total COGS 1.445.365 1.673.781 2.845.427

Gross Margin $ 465.456 829.590 1.098.736 Gross margin % 24,4% 33,1% 27,9% Assumptions:Discounts for selling with distributors and other channels, Amazon, Walmart, Petsmart, PetcoApp Media is the cost of Mainanining the App and the Online tracking service.GPS Device tendence is to cost less year by yearCosts: instead of going down as purchase power and volume for purposes of modeling remain the sameCollar and GPS Cost from Made in ChinaMaintenance Fee Charge is an average rate, but after second year growth 10% per year

Cost of sales on Marketing and APP/WEB Capability

year 1 year 2 year 2

Web Site permanent Development 3.000 3.600 4.320 Web Site Development OTO 4.500 Web Corporate Site hosting 336 672 672 Web Dominium Cost 50 100 150 Internet Marketing 1.200 1.440 1.728 Online Support 3.000 3.600 4.320 Advertising 12.000 14.400 17.280 Trade and Pet shows 6.000 7.200 8.640 Networking Events 4.800 5.760 6.912 Entertainment 2.400 2.880 3.456 Subscriptions 600 900 1.350 ERP & CRM Software and System 2.700 3.510 4.563

Total MKG and APP / Web 40.586 44.062 53.391

Assumptions:website development 4500Hosting Costs in pesos (exchange Rate $1.900):

Year 1 Year2 year 3Software and Licences 3.000,00$ 3.450,00$ 3.967,50$ Hardware Outsourcing Cost per Equipment 9.000,00$ 10.350,00$ 11.902,50$ Maintainance Agreements 6.000,00$ 6.900,00$ 7.935,00$ Software lease 6.000,00$ 6.900,00$ 7.935,00$ Hardware Lease 6.000,00$ 6.900,00$ 7.935,00$ Media and training materials 12.000,00$ 13.800,00$ 15.870,00$ Computer Supplies 3.000,00$ 3.450,00$ 3.967,50$ Training 6.000,00$ 6.900,00$ 7.935,00$ Total Software and hardware 51.000,00$ 58.650,00$ 67.447,50$

Information Technology 6.000,00$ 6.900,00$ 7.935,00$ LAN ServerInternet - Connectivity Equipment

Systems integration 42.000,00$ 48.300,00$ 55.545,00$ data base serverApplication serverWeb server

Software development and Testing 20.400,00$ 23.460,00$ 26.979,00$ Development ServerDevelopment DB serverTest hardware and softwareTest equipment

Estimated per year 119.400,00$ 137.310,00$ 157.906,50$

increase of 15%

Product Development

Salaries & Benefits CostsHeadcount Salary YR 1 Yr 2 yr3

People People People

Sales 45.000,00$ 90.000,00$ 90.000,00$ Makg -$ 40.000,00$ 40.000,00$ Operations & Administration 40.000,00$ 80.000,00$ 80.000,00$ Technical 30.000,00$ 30.000,00$ 60.000,00$ Systems 60.000,00$ 90.000,00$ 120.000,00$ finance 25.000,00$ 50.000,00$ 75.000,00$

Direct HR Cost 200.000,00$ 380.000,00$ 465.000,00$ Employee Costs of benefits 32% 64.000,00$ 121.600,00$ 148.800,00$ Cost of salaries 264.000,00$ 501.600,00$ 613.800,00$

Assumptions: 32% of wages burden: Taxes, pension plan, medical insurance, social security, fringe benefits, etc. (Carga Social)Technical, Systems and Finance in Colombian Cost

Operational Expenses

year 1 year 2 year 3Rent 28.800 30.240 31.752 Phone Local Service 4.200 4.410 4.631 Offi ce and Admin 37.800 39.690 41.675 Accounting and Other Licenses 5.100 5.355 5.623 Legal 7.200 7.560 7.938 Licence and Permits 300 315 331

Total operational expenses 83.400 87.570 91.949

Assumptions (Each item include the following):

Local servicelong distance800 serviceCell Phonne

Total Phone

Offi ce & AdminpostageOffi ce & Shippingbanking FeesMiscellaneous

Total Office and Admin

Accounting and Other G&A LicensesAccounting GeneralGeneralOther fees

Total

legalCorporatePartnertship Agreementspatent protection

Total Legal

Phone Details