Synerducate Team

Revenue Assumptions &

Calculations

Assumptions

We will offer renewal discounts (marginal cost of delivery is low, cost of acquiring customers is higher) modeled on a 25% renewal discount. There will be customer losses as not everyone will renew. We will have a phased approach to UK vs other regions and so revenues will increase in different regions over different timescales. We are only considering revenue for the first 6 lesson module. No price differentiation by region. There will be cancellations and chargebacks but they are not addressed here. Numbers in the schools are derived from CIA Factbook We've assumed that we pick up 10% of the available schools in the first year of selling in a region and then add 5% growth to sales each year there's going to be a natural ceiling but we doubt we'll hit it in the first few years. Year one sales in each region will have an introductory discount equivalent to the renewal discount.

School & Student numbers Country Number of

Primary Schools

Source Children per school year (000's)

English speaking %

No. English Speaking children

Canada 20000 Est 378,571 58 219571

USA 200000 Est 4,500,000 82 3690000

UK 21000 Res 357,143 100 357143Australia 6357 Res 285,714 82 234285

Ireland 3200 Res 62143 100 62142

New Zealand 1200 Res 1000 100 1000

TOTAL 251,757 5,584,571 4564142

Projected Sales to Schools

Region Year 1 Year 2 Year 3 Year 4 Year 5 Region TotalUK 2000 3000 4000 5000 6000 20000USA 0 9000 14000 19000 24000 66000Canada 0 2000 3000 4000 5000 14000Ireland 0 2000 3000 4000 5000 14000Australia 0 700 1200 1800 2400 6100New Zealand 0 120 180 240 300 840

Total Sales 2000 16820 25380 34040 42700 120940

Customer Renewal % 80Unit Price £50Renewal Discount % 25

School Revenue by regionRegion Year 1 Year 2 Year 3 Year 4 Year 5 Region TotalUK £75,000 £130,000 £170,000 £210,000 £250,000 £835,000USA £0 £450,000 £610,000 £810,000 £1,010,000 £2,880,000Canada £0 £100,000 £130,000 £170,000 £210,000 £610,000Ireland £0 £100,000 £130,000 £170,000 £210,000 £610,000Australia £0 £35,000 £53,000 £78,000 £102,000 £268,000New Zealand £0 £6,000 £7,800 £10,200 £12,600 £36,600

Total Revenue £75,000 £821,000 £1,100,800 £1,448,200 £1,794,600 £5,239,600

Sales type Year 1 Year 2 Year 3 Year 4 Year 5Renewal Sales 1600 13456 20304 27232 34160New Sales 400 3364 5076 6808 8540

Revenue Year 1 Year 2 Year 3 Year 4 Year 5Annual Revenue £75,000 £821,000 £1,100,800 £1,448,200 £1,794,600Cumulative Revenue £75,000 £896,000 £1,996,800 £3,445,000 £5,239,600