Organically Changing The Building Materials Industry - WHITEPAPER - Moxy OID
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Organically
Changing
The Building
Materials
Industry
Clean Tech
New Material
WHITEPAPER
2020 MOXY OID Technology Management Ltd.
Copyright 2020 CERLOS Inc. All rights reserved
TABLE OF CONTENTS
DISCLAIMER____________________________________________________________________________ 4
IMPORTANT NOTICE____________________________________________________________________ 5
INTRODUCTION_________________________________________________________________________ 6
EXECUTIVE SUMMARY_______________________________________________________________________________ 7
OUR VISION AND VALUE PROPOSITION________________________________________________________________ 9
OBJECTIVES_________________________________________________________________________________________ 10
PROBLEMS AND SOLUTION____________________________________________________________ 11
PROBLEMS WITH EXISTING MATERIALS______________________________________________________________ 13
MOXY OID DELIVERS SOLUTIONS____________________________________________________________________ 16
MATERIAL INPUT INGREDIENTS______________________________________________________________________ 17
SOLUTION IS CERLOS________________________________________________________________________________ 18
COMPANY AND TECHNOLOGY DEVELOPMENT HISTORY________________________________ 19
PRODUCT______________________________________________________________________________ 22
MANUFACTURING____________________________________________________________________________________ 25
INGREDIENTS________________________________________________________________________________________ 27
CERLOS ATTRIBUTES________________________________________________________________________________ 28
PRODUCT CHARACTERISTICS________________________________________________________________________ 29
MARKET ANALYSIS_____________________________________________________________________ 30
SUMMARY___________________________________________________________________________________________ 32
GLOBAL MARKET SIZE FOR SIDING/CLADDING, ROOFING AND PANELS_______________________________ 33
SIDING/CLADDING - MARKETING ENTRY PRODUCT___________________________________________________ 34
EVOLUTION OF SIDING/CLADDING PRODUCTS_______________________________________________________ 35
COMPETITION__________________________________________________________________________ 36
SAINT-GOBAIN’S CERTAINTEED______________________________________________________________________ 37
LP’S CANEXEL_______________________________________________________________________________________ 38
JAMES HARDIE FIBER CEMENT ______________________________________________________________________ 39
COMPETITIVE EDGE__________________________________________________________________________________ 40
MOXY OID Technology Management Ltd.
WHITEPAPER 2020
Copyright 2020 CERLOS Inc. All rights reserved
2
MARKET STRATEGY____________________________________________________________________ 41
CERLOS CERTIFIED REPRESENTATIVE PROGRAM____________________________________________________ 42
ONLINE STRATEGY___________________________________________________________________________________ 44
PARTNERSHIPS________________________________________________________________________ 45
FINANCIALS___________________________________________________________________________ 47
7 YEAR SALES FORECAST AND POTENTIAL UPSIDE________________________________________________ 55
TEAM__________________________________________________________________________________ 56
FAQ____________________________________________________________________________________ 60
MOXY OID Technology Management Ltd.
WHITEPAPER 2020
Copyright 2020 CERLOS Inc. All rights reserved
3
DISCLAIMER
Except where specifically indicated, the statements and information set
forth in this Whitepaper are not intended to recite current or historical
facts, and constitute forward looking statements. Forward-looking
statements may include the words “may,” “will,” “could,” “should,” “would,”
“believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or other words
or expressions of similar meaning. These forward looking statements
are based on the current beliefs, plans, objectives, goals, expectations,
anticipations and/or intentions of MOXY OID with respect to future
events. Although MOXY OID believes that the expectations reflected in the
forward looking statements are reasonable, MOXY OID cannot guarantee
the successful establishment or operation of its systems and business or
any future results, level of activity, performance or achievements.
Many factors discussed in this Whitepaper or otherwise affecting the
matters discussed herein, some or all of which ma y be currently unknown
to MOXY OID or beyond MOXY OID’s control, will be important in determining
the ability of MOXY OID to establish and operate its systems and business.
Consequently, actual results may differ materially from those that might
be anticipated from the statements and information set forth herein. In
light of these and other uncertainties, the statements and information set
forth in this Whitepaper are for informational purposes only, should not
be relied upon in making any purchase or other decision, are subject to
change, and are not intended to establish or indicate any representation,
warranty, commitment, undertaking, promise or contract made on the part
of MOXY OID to any person. MOXY OID does not undertake any obligation
to publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 4
IMPORTANT NOTICE
Recipients of this White Paper are mandated to read the Disclaimer before proceeding further.
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 5
Copyright 2020 CERLOS Inc. All rights reserved
INTRODUCTION
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 6
Copyright 2020 CERLOS Inc. All rights reserved
INTRODUCTION
EXECUTIVE SUMMARY
MOXY OID is set to fundamentally change the near trillion-dollar building materials market with its
Trade Secret - sustainable and ultra-high- performance products branded as CERLOS. Our CERLOS
products have the following qualities;
Fire-resistant, achieving a Class A fire rating.
Termite, insect, rodent and bird resistant.
Mold resistant.
Water-resistant and all-weather stable, won’t shrink or swell.
It can be cut, machined, drilled, and otherwise worked in the field.
It can be molded to almost any shape in manufacturing.
MOXY OID is headquartered in Vancouver, BC, Canada, and utilizes proprietary technology to
address a real need in the Global building material marketplace. The company intends to
manufacture highly marketable building products and is expecting to reach annual sales of
USD$643 million by the seventh year of operation.
In 2016, USD$28.9 billion in damages were caused by building fires, insects like termites and
floodings, when most of the losses were preventable. Meanwhile, construction materials around
the world are not recyclable at the end of their lifecycle and deemed hazardous waste. Every day
80,000 ACRES of forests disappear either form wildfires or through logging to create wood products
and building materials.
MOXY OID answers the markets’ demand for innovative and sustainable building materials. The
composition and properties of CERLOS products contribute to the higher profitability of MOXY OID
while being sustainable and environmentally friendly.
CERLOS can be described as a new, engineered wood product utilizing 100% natural ingredients
with no chemical additives, unprecedented aesthetic possibilities, and excellent handling
characteristics.
CERLOS products have a unique advantage over competing, traditional products by the unlimited
supply/origin of the raw materials used in its manufacturing. Furthermore, the combination of its
properties, and the fact that at the end of each cycle use, the product can be recycled (cradle to
cradle).
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 7
INTRODUCTION
EXECUTIVE SUMMARY
In addition, in almost all cases CERLOS products are superior in performance to comparable
products at a price point equal to or less expensive than their comparable. CERLOS products are
made in an environmentally responsible way. Our proprietary, low-cost, low-energy process converts
wood fibers and agricultural residues into high-performance building products for green building.
MOXY OID is at a pivotal point, shifting from $22.5 million in R&D to an operating profitable company
by commencing manufacturing of its market entry product, CERLOS Siding/Cladding.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 8
INTRODUCTION
OUR VISION AND VALUE PROPOSITION
VISION
MOXY OID will become a global supplier of sustainable building products, initially
accelerating High-Capacity manufacturing operations in North America, followed by
Europe, Latin America, and Asia-Pacific.
MOXY OID’s market launch product line will be siding/cladding/fascia, followed by roofing
products, and then panel boards, displacing competitive, yet inferior, plywood, oriented
strand board (OSB), mediumand high-density fiberboard (MDF/HDF) and other engineered
wood, fiber cement, plastic MgO boards, and other composite products including drywall.
VALUE PROPOSITION
To improve the quality of life physically, financially, and environmentally by providing a cost-
effective eco-friendly building material that is fire, mold, rot, and insect resistant.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 9
INTRODUCTION
OBJECTIVES
MOXY OID’S OBJECTIVES ARE:
1. Patent applications.
2. Select a site for establishing a high capacity manufacturing facility in the Pacific Northwest.
The site should have rail and road transport access. The facility should be 60,000 to 80,000
square feet with a surrounding area of 10 to 20 acres to accommodate materials in and
out. Initially, we prefer to lease the property and buildings.
3. Using traditional media to market CERLOS products to the building material community.
4. Use influencer marketing to bring CERLOS products to the attention of home and building
owners.
5. Introduce the CERLOS Certified Representatives program with the intent to create a strong
regional and national salesforce that is trained to use and promote CERLOS products.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 10PROBLEMS AND SOLUTION
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 11
Copyright 2020 CERLOS Inc. All rights reservedPROBLEMS AND SOLUTION
There are severe ecological and economic problems
associated with the existing building materials in terms of
their properties, input ingredients that are used to
manufacture them, the manufacturing process itself, and their
environmental impact.
MOXY OID tackled and solved these problems one by one in the span of 18 years of research and
development, with more than $22 million spent. The result is our revolutionary building material
CERLOS.
CERLOS products are fire, insects/bird/rodent, rot and mold resistant, water and all-weather stable
(will not shrink or swell), or decay or are influenced by environmental hazards. MOXY OID
manufactures superior performance, sustainable, energy efficient, and cost-effective building
materials that install easily with conventional carpentry tools. MOXY OID’s manufacturing
processes are environmentally responsible and petroleum-free, addressing market needs for
building “green.” Their products are designed to meet the most stringent testing requirements of
the industry and demonstrate superior performance in all key attributes.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 12PROBLEMS AND SOLUTION
PROBLEMS WITH EXISTING MATERIALS
The building materials industry suffers from technology stagnation, and not a lot has happened in
building materials over the past 50 years. One may remember OSB (oriented strand board) some
30 years ago was flaky and fell apart easily. Today, it does not. Why? Well, one of the few things
that have improved with engineered wood materials is the resins (glue). However, their unfavorable
characteristics, such as being easily flammable, prone to shrink, swell, rot when wet, and easily
damaged by insects, rodents, and birds remain constant.
Other products like fiber cement have been developed, but being 85% to 90% by volume Portland
cement, they are cement, act like it, and require cement tools. Fiber cement products are brittle and
are adversely affected by moisture, freeze/thaw. Cement is corrosive on metals and requires non-
corrosive, galvanized or stainlesssteel cladding nails. But if not for the reasons referenced above,
fiber cement contains silica dust, a known carcinogen (cancer-causing agent). The health and
welfare of the installers who are rarely seen taking any precautions from the silica dust are at great
risk.
Like fiber cement, magnesium boards (mag-board or MgO board) perform better than fiber cement
but tend to be a little more expensive than fiber cement, and is a hygroscopic product, known to
produce a problem named “crying boards” when applied in a very humid climate.
Newer plastic products have also been developed, like Wood-Plastic Composites (WPCs), that are
produced by thoroughly mixing ground wood particles and heated thermoplastic resin. Sustainable/
Eco- Friendly? Certainly not in our view.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 13PROBLEMS AND SOLUTION
PROBLEMS WITH EXISTING MATERIALS
SHORTCOMINGS OF CURRENT BUILDING MATERIALS,
COSTS BILLIONS OF DOLLARS ANNUALLY TO
PROPERTY OWNERS.
ADDRESSING THE US MARKET ALONE:
$23 Billion
Fire Damage USA
Source: NFPA, Michael J. Karter, Sept, 2016
$5 Billion
Termite Damage USA
Source: USDA- Forest Service, 2015
$2.5 Billion
Water Damage USA
Source: 2011 ACE Insurance Underwriters study
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 14PROBLEMS AND SOLUTION
PROBLEMS WITH EXISTING MATERIALS
BUT IT’S NOT
JUST DOLLARS.
Home fire occurs every 88 seconds.
Fire death every 2 hours and 34 minutes.
‘Flammable cladding, installed on Grenfell
Tower in a recent renovation, is thought to have
contributed to the rapid spread of the fire.’ 1
‘In 2017, there were 1,319,500 fires reported in
the United States. These fires caused 3,400
civilian deaths.2
1 “How the tragedy unfolded at Grenfell Tower - BBC News.”
18 May. 2018,
https://www.bbc.co.uk/news/uk-england-london-40272168
Accessed 27 Sept. 2019.
2 “U.S. civilian fire deaths 1977-2017 | Statista.”
https://www.statista.com/statistics/376703/us-civilian-fire-
deaths/
Accessed 27 Sept. 2019.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 15PROBLEMS AND SOLUTION
MOXY OID DELIVERS SOLUTIONS
CERLOS PRODUCTS ARE:
FIRE MOLD
RESISTANT RESISTANT
TERMITE WATER
RESISTANT STABLE
ROT
CERL S COMPOSITES
WEATHER
RESISTANT RESISTANT
EASY TO GUN
CUT NAILABLE
SUSTAINABLE
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 16PROBLEMS AND SOLUTION
PROBLEMS WITH EXISTING
MATERIAL INPUT INGREDIENTS
80,000 ACRES OF
FORESTS DISAPPEAR
FROM THE EARTH
EVERY DAY!3
Through July 2019, over 7,200 square miles of
the Brazilian rainforest has burned - an
aggregated area nearly the size of New Jersey.4
Forests destroyed through burning, release
carbon into the atmosphere as carbon dioxide, a
climate-changing greenhouse gas.
Forests are destroyed for another reason as well,
to produce raw materials for energy, consumer
paper products, housing, and construction.
3 “Tree Facts | One Tree Planted.”
https://onetreeplanted.org/pages/tree-facts
Accessed 27 Sep. 2019.
4 “Map: See how much of the Amazon forest is burning, how
it ....”
29 August 2019
https://www.nationalgeographic.com/environment/2019/08/
amazon-fires-cause-deforestation-graphic-map/
Accessed 30 Sep. 2019.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 17PROBLEMS AND SOLUTION
SOLUTION IS CERLOS
SUSTAINABLE MATERIAL INPUT
OUR PRIMARY
INGREDIENT IS
LIGNOCELLULOSIC
FIBER.
Lignocellulosic fiber is basically the cells of all living
plants. Specifically, it refers to plant dry matter
(biomass) which is the most abundantly available raw
material on the Earth.
https://en.wikipedia.org/wiki/Lignocellulosic_biomass
Our primary ingredient therefore, can come from straw,
corn stalks, or from any agricultural, or tree waste.
CERLOS can replace wood construction and housing
materials that require tree logs in enormous quantities,
thus eliminating the need for cutting down forests.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 18COMPANY AND TECHNOLOGY
DEVELOPMENT HISTORY
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 19
Copyright 2020 CERLOS Inc. All rights reservedCOMPANY AND TECHNOLOGY
DEVELOPMENT HISTORY
Following 18+ years of R&D and approximately $22M in R&D investments, a combination of
ingredients and procedures resulted in the remarkable new building material, CERLOS.
It all started with Alan Heywood in 1985, co-founder of MOXY OID and inventor of CERLOS. The
technology and process knowledge were developed from a combination of several intellectual
properties.
The primary discoveries that triggered the start of the search for a new composite building material
were published in the 1960s and ’70s. Mr. D.A. Alan Heywood, working off those publications
tenaciously performed in-depth research, development, and testing of ingredients, formulas, and
processes.
Alan purchased a patent from Dr. Laszlo Paszner and formed C-Max Technologies International
Inc. The patent had good prospects but failed in every attempt to produce any quality samples.
Research and development continued for 16 years until 2002 with $8+ million of funding and $4
million in-kind contributions as testing equipment and a laboratory by MacMillan Bloedel5 between
1994 and 1997. Good fortune comes to those prepared to work to find solutions, and ultimately,
solutions were found. Alan develops CERLOS after numerous testing of formulations and many
years of research.
5 “MacMillan Bloedel - Wikipedia.” https://en.wikipedia.org/wiki/MacMillan_Bloedel. Accessed 30 Sep. 2019.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 20COMPANY AND TECHNOLOGY
DEVELOPMENT HISTORY
In the following years, $1 million spent on research and design, a preliminary manufacturing line
was prepared as a result of the engagement with Corvallis Tool Company of Oregon, OR 97370.
Corvallis specializes in the design, engineering, manufacturing, installation supervision and start-
up of custom industrial machinery and control systems for a wide variety of wood product
manufacturers.
In January 2012 and with $2 million in funding, MOXY OID Technology Management LTD was
incorporated to aid in the management and commercialization of the technology.
A $7 million, four (4) year design, engineering, and development program was commissioned
between 2012 and 2017. The program resulted in several proprietary processing steps with unique
equipment for a large-scale Pilot Plant production facility and validated commercial quality and
quantity for CERLOS production. The Pilot Plant was built in Holland with VDL Enabling Technologies
Group, an engineering and equipment manufacturing firm. This extensive information will be used
in the High-Volume manufacturing line.
For the period of 2018 to 2019, MOXY OID is in preparation and development of websites, corporate
documents, legal documents, and requirements for the funding of a High- Volume manufacturing
facility.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 21PRODUCT
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 22
Copyright 2020 CERLOS Inc. All rights reservedPRODUCT
CERLOS IS ORGANICALLY CHANGING THE
BUILDING MATERIALS INDUSTRY.
Our new construction material to date has been successfully tested in a vast array of different
forms of structural and value-added building products.
In each and every case, improvements were made in economics and end-product quality. CERLOS
products demonstrate many profound and dramatic characteristic improvements over the products
that are currently in use. A product having the improved characteristics of this new technology
presents a worldwide opportunity, and to date, no evidence of any other company or research
organization proclaims to have discovered anything close to this new material. The ratios of the
ingredients within the blends or formulate vary by design according to the required end-product
specifications.
These improved characteristics are achieved by a natural, environmental process called
Mineralization, which is when organic fiber is strengthened as the porous gaps in the fibers or cells
are filled in. This process can occur naturally under certain conditions resulting into petrified wood
or fossils and can also occur biologically with the formation of our bones, egg shells, teeth or coral.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 23PRODUCT
COMMERCIAL USE OF MINERALIZATION HAS NEVER BEEN ACHIEVED SO FAR…
UNTIL MOXY INVENTED CERLOS
MOXY’s breakthrough is the development of a controlled mineralization process of plants and
trees that provides an inexpensive material strengthened through a natural process. Part of the
breakthrough is the manufacturing process itself.
Examples of Natural or Biological Mineralization:
Teeth
Teeth are the mineralized enamel
and dentine cells.
Petrified Wood
Petrified wood is a common
mineralization of wood.
Shells
Any exoskeleton is the result of a
mineralized process.
Fossils
Fossils are often the mineralization
of bones.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 24PRODUCT
MANUFACTURING
A total of $7 million dollars in developing a proprietary manufacturing process was completed in a
Pilot plant in Holland with VDL Enabling Technologies Group.
The main benefits of the proprietary MOXY OID process during manufacturing are lowpressure
forming and rapid low-energy curing. Additional benefits such as zero waste and zero discharge
are inherent in this safe manufacturing process.
Economically, this fast curing, continuous low-pressure process system requires a very low capital
investment per manufacturing line when compared to all other competitive manufacturing facilities.
It is also important to note that MOXY OID’s unique proprietary processes have the flexibility in
manufacturing to make more than just solid flat products. The benefit of this is that by altering
density in products a lower manufacturing cost can be achieved by reducing the input ingredients
and also grant the flexibility to create almost every construction product with CERLOS.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 25PRODUCT
MANUFACTURING
THESE ARE SOME EXAMPLES OF PRODUCTS
THAT CERLOS CAN BE SHAPED INTO
SIDING/CLADDING ROOFING TILE SHEATING I BEAMS
LAMINATES PIPE POLES TRIM LAMINATED
STRUCTURES
BLOCKS POSTS
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 26PRODUCT
INGREDIENTS
CERLOS material can eliminate the need to cut down forests as the input ingredients can be
farmed. Remarkably, there are only three, all of them commonly available ingredients used to make
CERLOS products. The primary ingredient is lignocellulosic fiber, which is basically every living
plant’s fiber. Therefore, the fiber can come from agricultural waste and other organic material
sources, even those sources currently considered unusable in the production of building materials.
The second ingredient is a commonly available, inexpensive, non-toxic mineral. The mineral is
available worldwide and is used in food supplements and so is very eco-friendly. The last ingredient
is a commonly available non-toxic liquid. This liquid is used in agricultural applications, is
inexpensive, and easily obtained in very large quantities.
CERLOS products are ecologically positive and 100% recyclable.
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 27PRODUCT
CERLOS ATTRIBUTES
Extensive sample testing of the CERLOS products has been carried out. The product
testing covered a myriad of tests for weather-ability, flame spread and combustion,
modulus of elasticity, rupture, hardness and tension, and were performed on
thousands of samples.
By comparison, CERLOS products combine the best attributes of hydrated cement (Portland
cement) products like fire resistance and compression strength, with the best characteristics of
composite wood products having flexural or bending capabilities.
We sometimes use the term “engineered wood” to describe CERLOS, although this description
fails to adequately express the unique opportunities CERLOS brings to the building world. We will
introduce it into the marketplace using products that will be familiar to architects and builders so
that they will initially understand ways in which CERLOS can be used in preference to current
choices. But it is as much a substitute for wood itself, as it is for engineered wood, fiber cement
boards, plastics, or other composites. In fact, we believe that CERLOS can be used in so many
ways that it will fundamentally change the building materials marketplace.
Unlike wood-based products, which may have up to 20.0 to 25.0% variations in their engineered
characteristics at production, CERLOS products have only 0.5 to 3.0% variation. This more precise
characteristic dramatically reduces the need to overengineer which reduces costs.
Additionally, engineered wood products have poor moisture stability with shrink and swelling
characteristics of 15.0 to 20.0% making the products undesirable for many applications. Any
extended exposure to moisture will destroy any of these wood products. CERLOS products,
however, maintain a low coefficient of 0.5 to 1.0% shrink and swell.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 28PRODUCT
PRODUCT CHARACTERISTICS
CERLOS products are primarily created to address the shortcomings of currently
available wood composite products and other products such as fiber cement and
plastic used primarily in the building materials industry. CERLOS products have
competitive advantages over virtually all of its competitive building materials in
performance, price point, and being environmentally friendly from start to finish.
MOLD RESISTANT
They are also resistant to all types of mold, mildew, and fungus.
TERMITE RESISTANT
Resistant to pests such as termites, rodents, and insects.
FIRE RESISTANT
A further milestone advantage is our excellent fire performance. This mineralized fiber
product has excellent temperature transfer resistance. CERLOS products are not
flammable, and in full-scale tests, we achieved a Class A spread of flame rating and
enjoyed an excellent rating in all “destruction by fire” tests.
WATER STABLE
Our moisture stability is another advantage over the most competitive products.
EASY TO CUT
CERLOS products can be sawn, nailed, glued, sanded, or painted using standard
carpentry tools.
WEATHER RESISTANT
Water and all-weather stable (will not shrink or swell), or decay or be influenced by
environmental hazards.
SUSTAINABLE
CERLOS products thanks to their proprietary manufacturing process and natural
ingredients are ecologically positive and 100% recyclable.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 29MARKET ANALYSIS
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 30
Copyright 2020 CERLOS Inc. All rights reservedMARKET ANALYSIS
The construction industry is the one that shapes the world around us. As humans,
we have 4 basic needs, air, water, food and shelter. We are constantly building or
modifying the environment around us to make it more habitable. Whether you are
deep into a desert, jungle, or in the middle of a metropolitan city, everywhere you
look you will see some type of human-made construction.
GLOBAL CONSTRUCTION OUTPUT IS EXPECTED TO RISE TO
US$12.9 TRILLION IN 2022, UP FROM US$10.8 TRILLION IN 2017. 6
6 “Global Construction Outlook to 2022: Q3 2018 Update ....”
https://www.globaldata.com/store/report/gdcn0010go--global-construction-outlook-to-2022-q3-2018-update/
Accessed 2 Oct. 2019
GLOBAL CONSTRUCTION MATERIALS MARKET PROJECTED
TO REACH US$1 TRILLION BY 2020.7
7 “Construction Materials Market Trends - Global Industry Analysts.”
https://www.strategyr.com/MarketResearch/Construction_Materials_Market_Trends.asp
Accessed 2 Oct. 2019.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 31MARKET ANALYSIS
SUMMARY
A US$1 TRILLION addressable
construction materials market is
an enormous opportunity for
a product with the characteristics
of CERLOS.
This report8 presents historical demand data from the years 2004, 2009 and 2014 and forecasts for
2019. The companies profiled include James Hardie Building Products, Elementia (Mexico)
subsidiaries Plycem USA and Allura, the Nichiha USA subsidiary of Nichiha (Japan) and GAF
Materials.
8 “Construction Materials Market Trends - Global Industry Analysts.” https://www.strategyr.com/MarketResearch/Construction_Materials_
Market_Trends.asp. Accessed 2 Oct. 2019.
US demand for fiber cement products is forecast to grow 6.0 percent annually through 2019, with
annual siding/cladding market valued at $18 billion. Rebounding construction expenditures,
specifically in new housing construction, will fortify demand.
Growth in fiber cement siding/cladding used in single-family housing will be supported by fiber
cement’s high levels of market penetration in the South and West, the US regions that will experience
the strongest levels of growth in population and thus housing demand grows.
The residential market is the dominant market share and new housing will drive that demand
through 2019. The residential market makes up the majority of fiber cement demand. While new
housing demand for fiber cement products will increase at the fastest pace through 2019, residential
improvement and repair will continue to account for a larger portion of residential demand. Sales
of existing housing will generate demand for fiber cement products as homeowners look to increase
the values of their properties before going to market. Even when properties are not changing hands,
fiber cement products will make inroads in re-siding/cladding and exterior trim applications.
Non-residential segment to gain market share while exterior fiber cement products aesthetic
properties make them well suited for residential markets, the material has seen increased usage in
the non-residential market in recent years, particularly for fiber cement backerboard. Fiber cement
product demand in the non-residential market is forecast to grow 5.8 percent annually through
2019 to 710 million square feet. The gains will be driven primarily by rebounding nonresidential
building construction demand. Additionally, fiber cement siding/cladding and exterior trim will
benefit from a design trend in commercial buildings that favors a more authentic, exposed-wood
exterior. Fiber cement product manufacturers have responded to this demand by developing new
wood-like products aimed at commercial buildings.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 32MARKET ANALYSIS
GLOBAL MARKET SIZE FOR SIDING/
CLADDING, ROOFING AND PANELS
Our market entry approach begins with introducing our first CERLOS siding/cladding product,
followed by CERLOS roofing and, finally, CERLOS panels. We will put our focus in these products,
in this priority.
Our direction will start with the Siding/Cladding market then move to Roofing and panels.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 33MARKET ANALYSIS
SIDING/CLADDING - MARKETING
ENTRY PRODUCT
MOXY OID, based on our revolutionary proprietary technology, has started to develop an international
market position in high performance, environmentally- sound building materials with its first
product - Siding/Claddings. After we establish our position in the market we will move forward with
the introduction of roofing products and then panel products.
We are preparing to finance and build our High-Capacity manufacturing facility, where we will
improve upon the efficiency and capacity of the pilot line to produce and introduce CERLOS starting
in the North American market.
Siding/Cladding is the “lowest hanging fruit.” for product
introduction and the marketplace is huge, according to
the Freedonia Group 2017 Forecast, the Global Siding/
Cladding market was $89 Billion in 2017, $18 Billion of
that in North America. The global siding/cladding market
is expected to reach an estimated $102.0 billion by 2023,
with a CAGR of 4.3% from 2018 to 2023.9
Siding/Cladding requires very few regulatory certifications
as it is a non-structural decorative product. The market is
relatively fragmented with fiber cement as the fastest
growing siding/cladding product due to its visual likeness
to wood yet is low maintenance, and fire resistance.
Many “Homes” magazines are claiming that this type of
siding/cladding will reward homeowners with a higher
resale value than any other current siding/cladding.
9 “The global siding market is expected to reach an estimated ....” 4 Feb. 2019
https://www.prnewswire.com/news-releases/the-global-siding-market-is-expected-
to-reach-anestimated102-0-billion-by-2023-with-a-cagr-of- 4-3-from-2018-
to-2023--300789108.html.
Accessed 2 Oct. 2019.
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EVOLUTION OF
SIDING/CLADDING PRODUCTS
Siding/Cladding has a long history with many materials once being the main for this specific
part of construction. This is the history of the last centur y’s siding/cladding materials.
Wood was once the leading siding/cladding material, but wood has a tendency to
deteriorate, causing maintenance problems, and as wood prices rose, nearly all the
siding/cladding market converted to non-wood products.
Asbestos in the 1920’s was the first practical alternative to wood siding/cladding. It
would not burn or get eaten by termites or other insects, and it was a harder alternative
to wood.
In the 1930’s, steel was being used for siding/cladding, and it had the same advantages
as aluminum. But steel siding/cladding is heavy and difficult for installers to work
with, expensive to ship, conducts electricity, and is susceptible to rusting.
Aluminum siding/cladding in the 1940’s, caught the attention because it is lightweight
and easy to use. On the other hand it was easy to dent, and because aluminum siding/
cladding is painted, a scratch would expose the raw aluminum underneath. Aluminum
production is energy-intensive and expensive in the 1970’s.
In the same decade and early 50’s, Asphalt siding/cladding became a popular siding/
cladding material in low-cost development homes. Asphalt siding/cladding resisted
weathering and was widely available in imitation and stone.
Vinyl or PVC because a popular siding/cladding material in the late 1950’s and early
1960’s, but because of problems with expansion and contraction, discoloration and
brittleness, it eventually fell out of popularity.
In the 1960’s it was Hardboard the most widely used siding/cladding material.
Hardboard is generally made of wood chips and epoxy resin and was sold primed and
painted on site. Manufacturers of hardboard became the subject of several class-
action lawsuits the products were suffering from moisture absorption, causing them
to swell, peel, crumble and develop fungus.
Since its introduction in the 1980’s Fiber Cement siding/cladding is a relative
newcomer, considering the fact that fiber cement is being used as a building material
in Europe for more than a century now. It looks like real wood, but it is brittle and
heavy as it is composed of Portland cement, pulp fiber, sand, and special additives.
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WHITEPAPER 2020 MOXY OID Technology Management Ltd. 36
Copyright 2020 CERLOS Inc. All rights reservedCOMPETITION
SAINT-GOBAIN’S CERTAINTEED
As a new entry into the siding/cladding market, MOXY OID will face old players and established
competitors. Big companies have almost all of the Siding/Cladding market share like LP with its
engineered wood prefinished siding/cladding, Saint-Gobain with its CertainTeed’s vinyl siding/
cladding, and Jamie Hardie with its fiber cement siding/cladding, but as you can see below they
are all inferior to CERLOS characteristics.
Below we analyze each and every one of these big competitors in comparison to CERLOS.
CertainTeed Corporation is a North American manufacturer, building materials for both commercial
and residential construction and is a wholly-owned subsidiary of Saint-Gobain SA, based in Paris.10
CertainTeed’s vinyl siding/cladding is NOT class A fire rated; on the contrary, its petroleum-derived,
which makes it an effective fire accelerant. CertainTeed’s siding/cladding warps under certain
conditions and has poor shadow lines. CERLOS, on the other hand, is a class A rated fire-resistant
material, has superior weatherability, UV - stability and deeper shadow lines.
10 “CertainTeed - Wikipedia.” https://en.wikipedia.org/wiki/CertainTeed. Accessed 7 Oct. 2019.
VINYL SLIDING VINYL SLIDING
COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS
Petroleum-derived, fire accelerant Insect/mold resistant
Not Class A fire rated Class A fire rated
Warps Superior weatherability
Poor “shadow” lines Deepest “shadow” lines
Difficult to mach if damaged UV - Stability
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LP’S CANEXEL
LP is an American building materials manufacturer known for producing oriented strand board
(OSB) panels and engineered wood building products.11 It’s CanExel prefinished siding/cladding is
subject to insect and rodent damage, requires special coating, and warps from water exposure.
Also, it’s not class A fire rated because of its petroleum-based resins. CERLOS, on the contrary, is
insect and mold resistant, class A fire rated, durable with no toxic emissions, water-stable with
superior weatherability, and can be easily installed and coated with normal coating.
11 “Louisiana-Pacific - Wikipedia.” https://en.wikipedia.org/wiki/Louisiana-Pacific . Accessed 7 Oct. 2019
ENGINEERED WOOD SIDING ENGINEERED WOOD SIDING
COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS
Subject to insect/mold damage Insect/mold resistant
Petroleum-based resins Durable & no toxic emissions
Not Class A fire rated Class A fire rated
Warps from water, weathering Superior weatherability
Special coatings needed Ease of coating and installations
Water - stable
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JAMES HARDIE FIBER CEMENT
James Hardie Fiber Cement
James Hardie Industries PLC is an industrial building materials company headquartered in Ireland
and specializes in fiber cement products.12 James Hardie’s fiber cement siding/cladding almost
acts like normal cement, it cannot be stained, it’s fragile, it warps, and it cracks. It also requires
galvanized fasteners and special tools to work with. On top of everything, Fiber cement contains
Silica dust, something that, James Hardie, SAFETY DATA SHEET, states that when inhaled it may
cause cancer.
CERLOS products DO NOT contain any toxic dust, and it is actually environmentally positive. As
opposed to fiber cement, it is mold resistant, water-stable, easily stained and painted and can be
worked easily with standard carpentry tools.
12 “James Hardie Industries - Wikipedia.” https://en.wikipedia.org/wiki/James_Hardie_Industries . Accessed 7 Oct. 2019
FIBER CEMENT SIDING FIBER CEMENT SIDING
COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS
Fragile, warps, cracks Mold resistant
Needs predrill. special tools Water - stable
Cannot be Stained Standard carpentry tools
Requires galvanized fasteners Easily stained, painted
Silica dust a carcinogen Through color available
James Hardie SAFETY DATA SHEET No toxic dust emissions
“May cause cancer if dust from product is inhaled”
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 39COMPETITION
COMPETITIVE EDGE
MOXY OID’S COMPETITIVE EDGE IS
COMPRISED OF SEVERAL FACTORS:
Our Trade secret material CERLOS is superior Safer and more environmentally friendly
in performance to comparable products. manufacturing and ingredients.
Manufacturing facilities cost 1/10 Manufacturing costs are less
of that of competitors. than that of competitors.
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 40MARKET STRATEGY
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 41
Copyright 2020 CERLOS Inc. All rights reservedMARKET STRATEGY
CERLOS CERTIFIED
REPRESENTATIVE PROGRAM
Word of mouth recommendations for a brand new product
such as CERLOS lends itself best for market acceptance.
Although most building owners and homeowners have an
idea of what products they would like to integrate on their
new home or during renovation, the contractor or builder
they have entrusted the construction to normally will
influence the materials used. Financially motivated and
financially committed builders and contractors are the
solution to a successful brand new product distribution in a
controlled manner.
MOXY OID has developed an innovative yet proven method of the new product to market through
direct sales with the development of its CERLOS Certified Representative program. (CCR). Building
materials have traditionally been distributed either from distributors to dealers or directly to
dealers, then the dealers price and sell the products to contractors/builders. Contractors are
constantly looking for new ways to generate profit without having to charge the building-owner
additionally and using CERLOS does just that. A CCR can improve both their and their clients’
quality of life through safer homes and a cleaner environment using a superior product at a lower
installed price compared to other standard building materials, all while enjoying increased profit
margins.
CCR program is an opportunity for contractors and builders alike to have access to this brand new,
high-demand, and limited production proprietary building material for safer homes and a cleaner
environment.
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CERLOS CERTIFIED
REPRESENTATIVE PROGRAM
THIS DISTRIBUTION MODEL OFFERS A LIST OF EXCLUSIVITY BENEFITS:
Purchasing CERLOS directly at wholesale.
CERLOS product and installation training.
Listed and promoted on Website as a CCR.
Sent warranty work.
Sent referrals for CERLOS installations.
Benefit from National advertising and ongoing support.
Manage CERLOS Recycle Bins.
Receive up to the first 8,000 Square feet of CERLOS at 100% discount.
Lifetime 3% annual rebate on yearly purchases over 60,000 sq/ft.
10 COMPANIES HAVE ALREADY PAID MOXY TO
BECOME A CCR AND MANY MORE HAVE EXPRESSED
INTEREST TO BECOME ONE.
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 43MARKET STRATEGY
ONLINE STRATEGY
Website
MOXY OID’s website will be the virtual business card and portfolio for the company. It will be the
online home of our products where we showcase their superior characteristics and technical
information and highlight the research that brought us here and current ongoing research that will
bring us into the future. The key to the success of the website strategy is combining a very well-
designed front end, with a back end capable of recording success stories and comments. Our
website will also be the online home of our CCR’s where they will be able to order and purchase
CERLOS products, track their performance and history and find marketing and promotion material.
Social Media Influencer Marketing
Over the last two decades, social media has become an integral part of people’s lives—and a crucial
way for brands to reach new audiences. As numerous studies have documented, most people,
particularly homeowners, are known to buy based on the conversation and recommendations of
trusted friends, family and colleagues. Finding the people that influence their peers’ decisions
where to shop and what to buy has long been viewed as the Holy Grail of marketing. Increasingly,
online social media networks are being seen as venues for locating these influencers.
As more users joined social media platforms like Facebook, Youtube, Instagram, Pinterest,
Snapchat, and Twitter, many of them became content creators themselves, curating and crafting
their own stories, photos, and videos for others to see.
This is how social media influencers were born and quickly attracted the attention of marketers.
Influencer marketing is when companies partner with influencers in order to increase brand
awareness or conversions among a specific target audience.
According to this study,13 the average earned media value per dollar spent on influencer marketing
is $5,20. Earned media is publicity a firm gains from promotional efforts other than paid advertising.
Earned media value is a monetary representation of this publicity. Businesses who understand
influencer marketing gain impressive returns, up to $18 in earned media value for every dollar they
spend on influencer marketing.
This goes hand in hand with the CERLOS Certified Representative program and will complement
the whole Go-Market-Strategy.
13 “The State of Influencer Marketing 2019 : Benchmark Report [+ ....” 28 May. 2019,
https://influencermarketinghub.com/influencer-marketing-2019-benchmark-report/ Accessed 8 Oct. 2019.
MOXY OID Technology Management Ltd.
WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 44PARTNERSHIPS
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 45
Copyright 2020 CERLOS Inc. All rights reservedPARTNERSHIPS
MOXY OID have developed relationships with other big bulding materials manufacturing companies.
Some of them officially expressed their interest in CERLOS products with Letters of Intent (LOI).
Specifically, Kingspan Unidek B.V. a manufacturer of structural
insulated panels (SIP’s) expressed its interest in researching the
technical and economical applicability of CERLOS on its structural
insulated panels. Upon the delivery of ‘proof of principle’, MOXY
OID and Kingspan intend to negotiate a business relationship and
a purchase agreement for CERLOS SipSkin panel boards. For
reference Kingspan is a company founded in 1966, is headquarted
in Ireland and has an annual revenue of $4.3 billion.14
Earth & Eternity BV is a Dutch private company specializing in
building affordable and net-zero buildings. E&E is also a
manufacturer of shiplap siding/claddings, where it combines its
proprietary Solidpaint with a special MDF substrate. They want
to replace this MDF substrate with a material that is water and
weather stable, has minimum reaction to fire, is more stable in
terms of shrinking and swelling and has a better price/
performance ratio. Therefore E&E in a letter of intend, expressed
its interest in researching the technical and economical
applicability of CERLOS on its cladding concept and upon the
delivery of ‘proof of principle’, to negotiate a business relationship
with MOXY OID and a purchase agreement for CERLOS Siding/
Cladding panel boards. Additionally, expressed its interest in
becoming a CERLOS Certified Representative.
VDL Technologies in a letter of support (LOS) expressed their
confidence in our long-term cooperation, and that together with
MOXY OID will be successful in bringing a CERLOS production
line to the level of manufacturing sellable boards. VDL was
founded in 1953, is headquartered in the Netherlands and has a
revenue of $5 billion per year.
OUR OTHER PARTNER
14 “ Structural Insulated Panel Technology | Kingspan | Great Britain.”
https://www.kingspan.com/gb/en-gb/products/engineered-timber-systems/structural-insulated-panel-
technology .
Accessed 17 Oct. 2019.
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 46FINANCIALS
WHITEPAPER 2020 MOXY OID Technology Management Ltd. 47
Copyright 2020 CERLOS Inc. All rights reservedFINANCIALS
7 YEAR SALES FORECAST
THE SALES FORECAST SHOWS A CONSISTENT INCREASE IN SALES OVER THE NEXT
SEVEN-YEAR PERIOD. FACTORS INCLUDE:
▶▶ Increasing brand awareness.
▶▶ Increasing recognition of superior product performance.
▶▶ Increasing awareness of health and environmentally friendly characteristics.
▶▶ Tightening government regulations concerning environmental and health issues.
Production and sales will start 16 months after the beginning of setting up the manufacturing line
and facilities. The net sales for year 2,3,4,5, 6 and 7 are $26 million, $61M, $151M, $305M, $440M
and $634M respectively.
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7 YEAR SALES FORECAST
For comparison, James Hardie’s North America The important elements of the production
sales for Fiber Cement in 2017 were $1.5 Billion forecast are shown in the Production Projections
or 2,215.400,000 sq. ft. of finished product at chart 6.6. Total production can increase in an
the price of $0.67 per square feet. exponential curve over the projected next “seven
years.” The Company estimates a conservative
Earnings before interest, tax, depreciation, and market share beginning for its market entry
amortization (EBITDA) is a measure of a product CERLOS Siding/Cladding in only the
company’s operating performance. Essentially, U.S. Market of 0.07% in year 1 of production to
it’s a way to evaluate a company’s performance 2.03% in year four of production.
without having to factor in financing decisions,
accounting decisions or tax environments.15 MARKET SHARE
Estimated EBITDA for year 2,3,4,5,6 and 7 of
production is $9.3M $32.8M $86.6M $185.6M
$271.5M and $404.9M respectively.
15 “Ebitda | Definition of Ebitda by Merriam-Webster.” 12 Sep. 2019,
https://www.merriam-webster.com/dictionary/EBITDA . Accessed
8 Oct. 2019.
The Company will operate its manufacturing
facility, launch a go-to-market campaign and
sales operations, hire employees, lease/ open a
new office commensurate with expansion
needs, and expand electronic media capabilities. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7
Additionally, revenues could be enjoyed by
MOXY OID’s introduction in established The Company has not budgeted for sale prices
territories of other products like CERLOS roofing to increase and that material costs remain
tiles, which is an even larger market place to constant for the next five years. Although once
siding/cladding or numerous other products market shares are attained, demand for CERLOS
that CERLOS solves in current product shortfalls. may increase and we may be able to increase
The Company will also expand by geographical our sale price to fiber cement pricing.
expansion throughout the USA/Canada, then Additionally, we do expect input material costs
Europe and Asia. This will enable the Company to decrease taking into account the savings
to keep growing sales, keep up with demand from purchasing in growing economic quantities.
and deliver on a timely basis.
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WHITEPAPER 2020 Copyright 2020 CERLOS Inc. All rights reserved 49FINANCIALS
INCOME STATEMENT
INCOME
CONSOLIDATED
FINANCIAL Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7
PROJECTIONS
Net Sales 0 26,080,719 61,530,981 151,684,649 305,252,256 440,893,157 634,147,220
Cost of Goods Sold
Input Ingredients 0 12,575,002 24,743,751 54,103,147 104,765,919 151,133,459 210,219,074
Freight in/out 0 3,026,258 5,954,748 13,020,280 25,212,612 36,371,267 50,590,612
Less: Ending
0 2,608,072 6,153,098 15,168,465 30,525,226 44,089,316 63,414,722
inventory
Total Cost of
0 12,993,188 20,738,662 51,954,962 99,453,305 143,415,411 197,394,964
Goods Sold
Gross Profit (Loss) 0 13,087,531 40,792,319 99,729,686 205,798,951 297,477,746 436,752,256
EXPENSES
OPERATIONS Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7
Salaries & Wages 996,000 996,000 2,220,000 2,460,000 3,012,000 3,012,000 3,012,000
Office/Lab/
Warehouse & 84,000 84,000 84,000 84,000 84,000 84,000 84,000
utilities
Telephone/
Internet hosting/ 8,400 8,400 8,400 8,400 8,400 8,400 8,400
network
Travel 48,000 48,000 60,000 60,000 60,000 60,000 60,000
Office supplies 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Office equipment
2,400 2,000 2,000 2,000 2,000 2,000 2,000
purchase
Vehicle expenses 24,000 24,000 48,000 72,000 72,000 72,000 72,000
Equipment
- Purchase 0 0 0 0 0 0 0
(lab 300k)
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INCOME STATEMENT
Equipment
45,000 455,857 1,309,914 2,973,029 5,017,585 6,618,942 7,366,242
- Lease
Depreciation 240,000 477,750 697,207 896,754 1,071,891 1,231,824 1,434,459
Manufacturing
60,000 240,000 240,000 240,000 240,000 240,000 240,000
Facility (Plant)
Energy 4,350 12,000 26,850 73,350 127,500 172,500 243,000
Plant Staff 60,000 904,750 2,075,000 4,494,900 8,521,300 11,962,200 16,678,500
Other
152,334 152,636 850,175 1,402,571 1,605,296 2,092,654 2,301,662
(Contingency)
Total Direct
1,725,684 3,406,594 7,622,747 12,768,204 19,823,173 25,557,720 31,503,463
Expenses
Professional Fees 16,500 49,000 60,000 60,000 60,000 60,000 60,000
Accounting 16,000 16,000 16,000 16,000 16,000 16,000 16,000
Legal 55,000 60,000 60,000 60,000 60,000 60,000 60,000
Consultants 22,500 30,000 30,000 30,000 30,000 30,000 30,000
POS Materials/
110,000 155,000 166,000 166,000 166,000 166,000 166,000
Internet
Total Indirect
220,000 310,000 332,000 332,000 332,000 332,000 332,000
Expenses
Total Expenses 1,945,684 3,716,594 7,954,747 13,100,204 20,155,173 25,889,720 31,835,463
EBIT -1,945,684 9,370,937 32,837,572 86,629,482 185,643,778 271,588,026 404,916,793
Tax provision -389,137 1,485,051 6,567,514 17,325,896 37,128,756 54,317,605 80,983,359
Net Profit -1,945,684 5,940,203 26,270,058 69,303,586 148,515,022 217,270,421 323,933,435
0.0 508% 17.73% 31.19% 66.83% 97.77% 145.77%
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