The following table details the Company’s intended use of proceeds from this
offering, for the first twelve (12) months after successful completion of the
Offering. None of the expenditures itemized are listed in any particular order
of priority or importance. Assuming that 100% of the Offering is sold, the
gross aggregate proceeds will be allocated as follows:
Expenditure Item (1) Allocated
Proceeds
$
Legal Fees 15,000
Accounting Fees 20,000
Other Fees (2) 10,000
Administrative 5,000
Capital Equipment 500,000
Professional Fees 600,000
Physical Infrastructure 1,500,000
Product Development R&D 1,100,000
Process Control System 350,000
Cost of Goods 3,300,000
Website design, development,
hosting & maintenance 100,000
Total: 7,500,000
(1) The above expenditures are defined as follows:
Legal Fees : Fees paid to our attorney for preparation and filing of SEC
documents, and other State and Federal documents, as well as preparation of
contracts and agreements, and consultation on business matters relating to
operation of the business. This item includes offering costs.
Audit Fees : Fees paid to our independent auditor to audit and review our
financial statements in relation to SEC reporting requirements once we are
required to do so. This item includes offering costs.
Other Fees : Fees paid to our accountants for ongoing financial statement
preparation. Fees paid to the transfer agent for issuing corporate stock and
facilitating subsequent stock transactions and oversight, and any other fees
that may be paid for ongoing corporate services. This item includes offering
costs.
Administrative : Any monies paid for communications, postage and shipping,
office supplies and other miscellaneous items that are administrative in
nature.
Capital Equipment : Expenses relating to Engineering Software and Hardware,
Assembly Line construction, Work benches, Machinery, Engineer and Software test
equipment and test clothing
Professional Fees : Expenses related to Software Engineers, Mechanical
Engineers, Quality and Test Engineering.
Physical Infrastructure : Expenses relating to additional office space,
warehouse space, and conference center.
Product Development R&D : Development of Software, PCB/BCBA controller boards
for locker systems, dispensing systems, vend assurance hardware and software,
New product lines.
Process Control System : Expenses relating to Inventory Management, CRM Sales
System, employee training.
Cost of Goods : Required inventory for existing orders relating to three of our
largest clients.
Website design, development, hosting and maintenance : Monies paid to
independent contractors to build, host and maintain the Company website.
There is no assurance that we will be able to raise the entire amount of this
Offering. The following chart details how we will use the proceeds if we raise
only 50% of this offering:
(2) These items include a total of $10,000 in offering costs
There is no minimum amount we are required to raise in this offering and any
funds received will be immediately available to us.
If only 50% of this Offering is sold, the Company will have to strictly curtail
its development plans. It will only utilize its attorney to do what is
necessary to meet its SEC, State and Federal reporting and licensing
requirements. Its audit requirements will be met at the same level as would be
done if 100% of the stock offering were sold. We will look to other less
expensive ways of having our financials prepared and we will engage our
transfer agents for only the most necessary tasks. We will look to other more
creative ways of financing our operations. The President will pay for any
additional expenses as necessary. Any expenses paid by the president will be
on a shareholder’s loan basis.
If less than 50% of the Offering is sold, the Company will have to severely
curtail its development plans and may be forced to cease operations until
additional funding can be found, of which there is no assurance. Investors in
this Offering may lose all of their investment if we are forced to cease
operations.
No proceeds from this Offering will be paid to our officers and directors in
the form of commissions, salary, or other compensation.
The vending industry is highly competitive. We compete in both the vending
manufacturing and vending operations segment of the industry with companies
that offer the same services that we do. Many of our competitors have
significantly greater resources than we do. Although we believe we have an
competitive advantage based upon the lower pricing of our products, a
substantial decline in price could adversely affect consumer demand for our
products and reduce our competitive advantage. Although we believe that there
are significant barriers to entry to new competitors in the vending market due
to, among other things, the substantial capital outlay required to purchase the
number of machines needed to achieve competitive operating efficiencies, a
competitor with significant financial resources may be able to compete with us.
There can be no assurance that any competitors will not be able to raise the
required capital to effectively compete with us.
In addition, we may face new competition as we seek to expand into
international markets and develop new products, services and enhancements. Many
of the competitors have greater experience than we do in operating in these
international markets. Moreover, new products that we intend to develop, such
as advertising, may subject us to competition from companies with significantly
greater technological resources and experience. Many of our potential
competitors have longer operating histories, greater name recognition, larger
customer bases and significantly greater financial, technical, marketing and
public relations resources than we have. These competitors may be able to
undertake more extensive marketing campaigns, adopt more aggressive pricing
policies and make more attractive offers to consumers and businesses. Our
competitors might succeed in developing technologies, products or services that
are more effective, less costly or more widely used than those that have been
or are being developed by us or that would render our technologies or products
obsolete or noncompetitive. We cannot be certain that we will be able to
compete effectively with current or future competitors. Competitive pressures
could seriously harm our business, financial condition and results of
operations and our ability to achieve sufficient cash flow to service our
indebtedness.
Company Description
At AVT, Inc., our primary focus is on the design and manufacture of vending and
product dispensing systems which utilize an inventive approach on development,
integration of technology and advertising media. AVT's designs are innovative
in that our systems exploit the use of an integrated PCs,
having internet
connectivity among a variety of other components that work in concert with the
PC such as, printers, credit card readers, wireless devices, RF modules and
just about any peripheral that is capable of connecting to a PC. As a design
manufacture, creator of specialty application software and integrator of
technology, our products define the cutting edge of the vending and dispensing
industry and position us as a leader and industry innovator.
We were originally incorporated under the laws of the State of Delaware on
February 25, 1969 as Infodex, Incorporated. In October, 2005, we acquired
Automated Vending Technologies, Inc., a Nevada corporation and began focusing
our business on vending operations. In December, 2006 we merged our operating
wholly owned subsidiary into the parent company and in January of 2008, we
changed our state of domicile to the State of Nevada and renamed the company
to “AVT, Inc.” We operate in the State of California as “AVT Vending, Inc.”
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Our offices are located at:
AVT, Inc.
341 Bonnie Circle, Suite 102
Corona, CA 92880
Our Telephone Number is: (951) 737-1057