es Bandwidth$480,000$600,000$720,000$720,000Application Package Software$120,000$140,000$160,000$160,000Application Maintenance$101,510$105,632$109,921$114,384Telecommunication$2,075$4,342$15,482$43,159Number of staff527139416Cost of PCs per staff per quarter$5,400$5,400$5,400$5,400Hours per quarter$2,0002,0002,0002,000Cost per hour$203$211$220$229 7. Proposed Company Offering7.1 Proposed Company OfferingThe objective of this section is to indicate the amount of money that is being sought for TapNet.7.2 Desired FinancingBased on real-time cash flow projects we need $19,350,000.00 over the next three years.The breakdown is:SharesIPO priceSecured from Offering 3,850,000 $5.00 19,250,000 Loans from Directors 100,000 Total Cash Flow from Offering19,350,000 OfferingSharesType of StockCommonPercent of Company that investors will hold after Offering50,000 5%Securities sold through private placementPreferred7.3 CapitalizationCurrent Outstanding Shares0Proposed Outstanding Shares 3,850,000 Available to Public4,000,000 40%Retained by Directors/Executives/Board5,100,000 51%Remained authorized but unissued200,000 2%Reserved for Stock Options for future employees200,000 2%Total Shares Authorized10,000,000 100%Use of FundsThe capital raised during this offering will be used in the following ways:On-going Operations12,288,701 Implement Technology Platform2,187,556 Marketing Costs260,000 Networks & Assets4,474,800 Legal20,000 Total Use of Funds19,231,057 7.4 Investors ReturnRate of Return over 4 years226%7.5 Exit StrategyDirectors propose an outright sale of TapNet with in 48 months of launching offering. (1/2005)...
