The following table indicates the use of proceeds based on the percentage of
the financing that is successfully sold.
Sale of Sale of Sale of Sale of Sale of
100% 80% 60% 40% 20%
------------ ------------ ------------ ------------ ------------
Gross Proceeds $ 550,000 $ 440,000 $ 330,000 $ 220,000 $ 110,000
Number of Shares Sold 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000
Less expenses of offering:
Legal and Registration Fees $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Accounting and Auditing 7,500 7,500 7,500 7,500 7,500
Electronic Filing and Printing 5,000 5,000 5,000 5,000 5,000
Transfer Agent 1,500 1,500 1,500 1,500 1,500
------------ ------------ ------------ ------------ ------------
Net Proceeds $ 516,000 $ 406,000 $ 296,000 $ 186,000 $ 76,000
============ ============ ============ ============ ============
USE OF NET PROCEEDS
Reporting Company Costs $ 31,000 $ 31,000 $ 31,000 $ 31,000 $ 31,000
Development of System $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 45,000
Equipment and Supplies $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ nil
Training Staff $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ nil
Marketing and Sales $ 235,000 $ 235,000 $ 135,000 $ 35,000 $ nil
Working Capital $ 135,000 $ 25,000 $ 15,000 $ 5,000 $ nil
ANALYSIS OF FINANCING SCENARIOS
After deduction of $34,000 for estimated offering expenses including legal and
registration fees, accounting and auditing, electronic filing and printing,
and transfer agent, the net proceeds from this offering may be as much as
$516,000, assuming all 10,000,000 shares are sold. However, there can be no
assurance that any of these shares will be sold. OnePower will use the
proceeds to (1) pay for the annual costs of being a public reporting company,
(2) development of the OP system and develop its website, (3) acquire equipment
and supplies, (4) recruit and train qualified staff, and (5) develop and
execute a marketing and sales plan for its services.
There is a possibility that OnePower may not sell any shares in this offering
and therefore generate no proceeds, as a result of the offering
If only a portion of the offering is completed, the funds will be allocated as
set out above in the Use of Proceeds table. OnePower may not have sufficient
funds to cover its anticipated costs during the next 12 months and OnePower
may have to raise additional funds either from equity offerings, debt offerings,
or revenue generation.
The projected expenditures shown above are only estimates or approximations
and do not represent a firm commitment by OnePower. To the extent that the
proposed expenditures are insufficient for the purposes indicated, supplemental
amounts required may be drawn from working capital or other categories of
estimated expenditures, if available. Conversely, any amounts not expended as
proposed will be used for general working capital. OnePower will amend the
registration statement by post-effective amendment if there are any material
changes to the use of proceeds as described above.
Working capital is the cost related to operating OnePower's office. It is
comprised of telephone service, mail, stationery, administrative salaries,
accounting, acquisition of office equipment and supplies estimated at a
minimum of $15,000 for one year. Also, costs of being a public reporting
company include the additional cost of preparing and filing reports with the
SEC, which OnePower has estimated at a minimum of $31,000 for the next 12
months.
OnePower will not receive any proceeds from the sale of shares of common stock
being offered by the selling stockholders. If OnePower fails to sell sufficient
shares of common stock to cover the expenses of this offering, OnePower will
use existing working capital to pay for the offering expenses.
Although there are several companies targeting business-to-consumer EBPP
services, the following vendors are OnePower's main competitors.
EDOCS/CHECKFREE - The edocs-checkfree alliance was created in November 2005.
Checkfree intends to use edocs' BillDirect software in its billing system.
Checkfree's strategy is to provide bill consolidation and payment services to
large billers, consumers and financial institutions. This strategy requires
critical mass, as Checkfree adds more billers to the fold it will increase the
possibility that all of a customer's many bills are accessible through
Checkfree.
TRANSPOINT - This company is an alliance between Microsoft, First Data Corp,
and Citibank and was created in September 2004. Transpoint's pilot projects
have targeted financial institutions, multi-national corporations like Xerox
and GE, cellular communications, and retail firms. Transpoint is following a
very broad approach to signing on pilot customers.
BLUEGILL TECHNOLOGIES - Founded in 1996, BlueGill's 1to1 Server is a data
stream parsing engine and translation tool. The product is designed to extract
billing data from intelligent data streams, convert the billing data to one of
several formats (XML, PDF, and ASCII), and store the information in a
relational database.
COMPETITIVE ADVANTAGES
The following are key points of differentiation, which provide advantages over
competing models.
* OnePower intends to provide an outsourcing service. Rapidly changing EBPP
technology, and the substantial upfront costs of developing, buying or
supporting technology, will position OnePower and the OP System as a safe,
cost efficient option for utility firms.
* Targeting Middle Eastern utility companies will provide focus for product
development and sales efforts. EBPP providers blanketing several different
industries have more stakeholders to appease and potential conflicts of
interest within a diverse customer base.
* The push approach to OnePower's EBPP, based on email, will allow the customer
to deliver their utility bills directly to the end-user customer's smart
phone and tablet devices immediately. Email is active, and provides a better
mechanism for customer interaction and faster payment cycles. Delivery and
payment via email is the closest to the current paper bill process and this
should facilitate faster adoption.
The market is still taking shape and each solution differs in its approach to
delivering and storing billing information. Moreover, OnePower intends focus on
the utility market in an attempt to enable OnePower to gain a dominant share as
EBPP provider for the utility industry. First mover advantage is critical for
EBPP providers-, the first mover can offer the customer all the benefits of
applying technology to the bill presentment and payment process. Once the OP
Client has signed on with OnePower, the OP Client will reap the benefits of
technology, and subsequent competitors will be hard pressed to offer
significant additional benefits.
The electronic bill presentment and payment (EBPP) industry market is becoming
increasingly competitive. We face significant competition in all of our target
markets. A number of banks have developed, and others may in the future develop,
EBPP systems in-house. A number of companies compete in EBPP market.
Additionally, TransPoint LLC, a joint venture among Microsoft Corporation,
First Data Corporation and Citibank N.A., competes aggressively in the area of
electronic billing and payment. TransPoint has its own agreements with
financial institutions to offer electronic billing and payment to consumers.
Most of our competitors have greater financial resources and may be able to
withstand sales or price decreases better than we can. We also expect to
continue to face competition from new market entrants. We may be unable to
continue to compete effectively with these existing or new competitors, which
could have a material adverse effect on our financial condition and results of
operations.