|Pictured left is inventor Fritz McDermott holding a new production model. He had built several crude prototypes and designed a workable engineering model in 1998.
BAFI™ was invented and developed in 1996 by the founders and key management of the Company. The current management team financed all of the research & development, stage development, engineering, legal/regulatory compliance, and planning development for building and financing the production of the BAFI™ systems.
The Company's co-founders and shareholders have invested approximately $1,400,000 towards the development and test market of the BAFI™ systems.
To date, the Company has invested substantial amounts through its founders, management and certain debt instruments. Management has agreed to offer limited stock to selected investors to provide operating capital and inventory supplies for its' distribution channels.
The Company is offering its' equity as an investment opportunity to selected individuals interested in purchasing common stock.
The Company's management has the experience and resources to move the Company from a privately held position to a public company. The Company has an experienced attorney and Board Member, Dr. Chris Evans, who has a strong legal expertise in SEC law and taking companies public. The Company has the capability to manage an IPO and currently has resources with investor relation firms and investment banks ( underwriters ) as they prepare to take the Company public and seek stock promotion in the future. The Company has initiated discussions with public relation firms and investment banking firms regarding their prospective involvement in managing a proposed offering.
PROJECTED FINANCIAL INFORMATION
The Company is executing its strategic growth plan as set forth herein. Management believes that BAFI™ has the potential for generating a satisfactory return on investment. Table-1 depicts the Company's initial estimates of potential revenues and profits for the first three years after execution of its marketing program. Please refer to part III of the Financial Information for more detailed projected financial information including assumptions. While there can be no assurances of future financial performance, the Company believes that the assumptions upon which such projections have been based are reasonable and attainable.
Table 1. Summary Pro Forma Financial Information
|Total Year 1||Total Year 2||Total Year 3|
|Total Units Sold|
|2nd Generation Systems||0||12,285||19,419|
|2nd Generation Systems||$0||$930,000||$1,470,000|
|Total Gross Sales||$4,530,000||$21,315,000||$39,975,000|
|Total Cost of Sales||$2,875,675||$5,770,000||$6,969,250|
|Net Income (pre tax)||$511,975||$13,231,550||$28,519,750|
EQUITY INVESTMENT GOALS
The Company has approximately 65 shareholders from its' first stage financing program. Ingen Technologies is offering a second stage financing program to selective investors interested in the purchase of common stock. The amount of capital raised will be an aggregate amount of $ 2,000,000 and will be used for additional patent filings, inventory, operations and sales & marketing development.
There are firm commitments with various distributors to introduce the product to their consumers. These initial distribution channels will develop the cash flow to sufficiently move the business into a profitable position within 2 years.
The Company manufactures and assembles the product through Advanced Engineering & Tooling based in Riverside, California. This company owns several large tooling companies, one of which is Magnotek, Inc., and has the experience and resources to complete product assembly and deliver acceptable quantities and maintain quality of up to 200,000 BAFI™ units per month.
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