| Z E R O | FabricationAndi DedjaRenan (Ram) MarambaSeong PaikDavid Woodfork

The Problem

Knifemakers need to be in the shop Parts are the goal: sourcing and

engineering eat time No comprehensive, customer-

focused fabrication shops Existing shops have prohibitive

minimums

The idea

Six-step process:1. Creation2. Engineering3. Sourcing4. Fitting5. Assembling6. Finishing

Value chain service company that services steps 2-5

The solution in numbers

Comparison: Fabricating a set of folding knife partsHandmade Process CNC ProcessMaterials: Titanium 22.00$ Materials: Titanium 17.00$

Stainless Steel 17.00$ Stainless Steel 13.00$ Labor: 6@$20 160.00$ Labor: 1@$35 35.00$

Tooling: Cut, shape, and dril l 20.00$ Machine Minutes: 10@$1.50 15.00$ Other Services: Engineering 10@$20/50 4.00$ Tooling: Profile and dril l 20.00$

Heat Treat and Temper 50.00$ Other Services: Engineering 500/50 20.00$ Heat Treat and Temper 10.00$ Waterjet 12.00$

Total: 273.00$ 142.00$

70% markup still less than handmade parts

Knifemakers recoup majority of labor hours

More efficient material use

Competition

Five current service houses: two are not full-service, two have prohibitive minimumsCompetition

CAD/CAM Waterjet CNC Blade Min Frame Min Web ServiceZero Fabrication Y Y Y 50 50 YUniversal Outfitters Y Y Y 25 25 NChad Nichols Y Y Y 200 50 NHalpern Titanium Y Y Y 500 500 NH2O Knife Y Y N N/A N/A NNJ Steel Baron Y Y N N/A N/A N

Market

Knifemakers: estimated 3000 currently active

Not a volume market: monthly output usually less than three per month

High markups: 200% and above Backlogs: mid-level makers and

above have production issues and have backlogs that quickly extend past a year

Marketing Plan

Interactive, intuitive web portal Social media: Facebook and Instagram,

established knife industry portals Monthly raffles: medallions, bottle

openers, etc. from scrap material Establish dealer connection for clients Classic strategies: large presence at

knife trade shows 5% off each set with manufacturer

mark

Skills Profile

Market Experien

ce

HR Marketing

Project Managem

ent

Programming

Knowledge

Solid Works

Knowledge

Ram Maramba

X X X

Andi Dedja

X X

Seong Paik

X

David Woodfork

X

Operator O

Engineer O

Timeline

2015Quarter 1 Quarter 2 Quarter 3 Quarter 4Begin Production Debut at Blade Debut at Gathering 2400 SetsLaunch Website (200/mo)

2016Quarter 1 Quarter 2 Quarter 3 Quarter 4Hire Account Manager Debut Collab at Blade Debut Collab at Gathering 7200 Sets

Investment Returned (600/mo)

2017Quarter 1 Quarter 2 Quarter 3 Quarter 4Purchase 3rd CNC Debut Brand at Blade Debut Brand at Gathering 9600 SetsLaunch Private Label (1000/mo)

Financial Projections

REVENUE 2015 2016 2017Gross sales 480,000.00$ 1,620,000.00$ 3,240,000.00$ Net Sales 432,000.00$ 1,539,000.00$ 3,078,000.00$

COST OF SALESTotal Cost of Goods Sold 348,000.00$ 1,044,000.00$ 1,980,000.00$ Gross Profit (Loss) 84,000.00$ 495,000.00$ 1,098,000.00$

OPERATING EXPENSESSalaries and wages 114,400.00$ 114,400.00$ 161,200.00$ Advertising 17,500.00$ 10,000.00$ 10,000.00$ Rent 13,200.00$ 13,200.00$ 13,200.00$ Utilities 3,600.00$ 3,600.00$ 3,600.00$ Equipment 33,153.46$ 3,315.35$ 24,865.10$ Tooling 6,630.69$ 6,630.69$ 9,946.04$ Total Operating Expenses 188,484.15$ 151,146.04$ 222,811.13$

NET INCOME (LOSS) (104,484.15)$ 343,853.96$ 875,188.87$

Pro Forma Income StatementZero Fabrication LLC

2015-2017

Sources and Uses

Sources and Uses StatementZero Fabrication LLC

2015

Rent: Year's rent $ 12,000.00 Utilities: Power and misc utilities $ 3,600.00 Equipment: 2 Tormach PCNC 1100s $ 33,153.46 Raw Materials: Titanium, steel, and fasteners $ 4,700.00 Other Costs: Setup and tooling $ 8,288.37

Advertising: Website and misc advertisements $ 17,500.00

Knifemaker $ 41,600.00 CAM Engineer $ 41,600.00 Operator $ 31,200.00

Total Uses of Financing $ 193,641.83

Investment Capital 200,000.00$

Uses of Financing

Questions?