The following table sets forth management’s estimate of the allocation of net
proceeds expected to be received from this offering. Actual expenditures may
vary from these estimates. Pending such uses, we will invest the net proceeds
in investment-grade, short-term, interest bearing securities. In the event that
the entire offering is not sold, the proceeds received would be used for
purchase of raw materials and component parts. Purchase of automated machine
tools, marketing and increasing receivables and working capital would be
deferred until funds were available.
100% of the 50% of the 25% of the
Offering or Offering or Offering or
5,000,000 2,500,000 1,250,000
shares sold shares sold shares sold
Total Proceeds $ 5,000,000 $ 2,500,000 $ 1,250,000
Less:
Commission (1) -0- -0- -0-
Offering expenses $ 30,000 30,000 30,000
Net Proceeds $ 4,970,000 $ 2,470,000 $ 1,220,000
Use of Net Proceeds
Purchase of test equipment,
improvements in facilities &
inventory: $ 1,250,000 $ 1,000,000 $ 500,000
Additional Accounting & Admin.
Expense: 100,000 100,000 75,000
Computers & Programming: 150,000 150,000 150,000
Increase in working capital:(2) 1,470,000 500,000 300,000
Funding for Acquisitions &
Expansion 2,000,000 720,000 195,000
Total use of net proceeds: $ 4,970,000 $ 2,470,000 $ 1,220,000
(1) We plan to have our officers and directors offer and sell the shares.
They will receive no discounts or commissions. To the extent that our
officers and directors sell the shares, the proceeds, which allocated for
commissions will be additional working capital. We do not have any
agreements, arrangements or understandings with any broker/dealers to
offer or sell our shares, although we may, at our discretion, retain such
to assist in the offer and sale of shares. This represents the maximum
underwriting discounts and commissions we will pay if broker/dealers are
used to sell the shares.
(2) Working capital will be applied to support cash flow, payroll and as a
reserve for unexpected expenses.
electrical
appliances, such as video recorders, laptop computers and cell phones, shipped
to Service Team’s repair center in San Diego, California. Service Team then
repairs or replaces the television or other electrical appliance and returns
it to the owner. Our customers are major manufacturers of televisions or other
electrical appliances, or warranty insurance companies that are insuring the
warranty of the television or electrical appliance. Our long term business plan
is to continue developing our service and repair operations. Despite our
limited operations to date, we are not a shell company and do not intent to
merge with, or sell the company to, a private operating company in a reverse
merger transaction.
------
The Company leases office and shop space from Cairo Properties, 7111 Engineer
Road, San Diego, California 92111. Telephone number : (855) 830-8111
Fax : (858) 429-7665.