(4) exhibit d business plan (with financials an appendix) 16 0

ENGLISH LANGUAGE SCHOOL

Confidential Business Plan

Contact: Miles L. Hackley 210.900.0937 [email protected] 85 NE Loop 410 Suite 203 San Antonio, Texas 78216 USA

mailto:[email protected]

PROJECTIONS OR FORECASTS CONTAINED IN THIS BUSINESS PLAN, OR OTHER MATERIALS, MUST BE VIEWED ONLY AS ESTIMATES. ALTHOUGH ANY PROJECTIONS CONTAINED IN THIS MEMORANDUM ARE BASED UPON ASSUMPTIONS WHICH THE COMPANY BELIEVES TO BE REASONABLE, THE ACTUAL PERFORMANCE OF THE COMPANY MAY DEPEND UPON FACTORS BEYOND THE CONTROL OF THE COMPANY. NO ASSURANCE CAN BE GIVEN THAT THE COMPANY’S ACTUAL PERFORMANCE WILL MATCH ITS INTENDED RESULTS. THE ENGLISH LANGUAGE SCHOOL BUSINESS PLAN, WAS PREPARED BY THE COMPANY USING ASSUMPTIONS THAT INCLUDE SEVERAL FORWARD LOOKING STATEMENTS. EACH PROSPECTIVE INVESTOR SHOULD CAREFULLY REVIEW THE BUSINESS PLAN BEFORE PURCHASING CONVERTIBLE NOTES. MANAGEMENT MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR ACHIEVABILITY OF THE UNDERLYING ASSUMPTIONS AND PROJECTED RESULTS CONTAINED HEREIN. THEY HAVE ATTEMPTED TO EXPRESS THE REPRESENTATION OF OUR PLANS AND STATUS OF THESE PLANS IN A HONEST STRAIGHT FORWARD WAY. THEY HAVE WORKED FULLTIME FOR OVER FOUR YEARS IN PREPARATION FOR THIS PHASE IN OUR COMPANY’S DEVELOPMENT.

2

Contents

INTRODUCTION .................................................................................................................................. 6

1.1. Introducing a bright new Idea ................................................................................................. 6

1.2. An outstanding difference ....................................................................................................... 6

2. The Company ................................................................................................................................ 7

3. Our Courses and Classes .............................................................................................................. 7

3.1. English Language Proficiency Courses .................................................................................. 7

3.2. English for Special Purposes (ESP) ....................................................................................... 8

3.3. Corporate and Government Workplace Solutions ................................................................... 8

3.4. Teaching methods .................................................................................................................. 8

4. Industry Analysis and Trends ......................................................................................................... 8

4.1. Industry Analysis .................................................................................................................... 9

4.2. USA Market ............................................................................................................................ 9

5. Ancillary Products and Services .................................................................................................... 9

5.1. High School Diploma Courses ................................................................................................ 9

5.2. Textbooks and Study Guides .................................................................................................. 9

5.3. Video Lessons ........................................................................................................................ 9

6. Target Market .............................................................................................................................. 10

6.1. Local Market (San Antonio and Texas) ................................................................................. 10

6.2. USA Markets ........................................................................................................................ 10

6.3. International Markets ............................................................................................................ 10

7. The Competition .......................................................................................................................... 10

7.1. Local Competition ................................................................................................................. 10

7.2. National Competition ............................................................................................................ 11

7.3. International Competition ...................................................................................................... 11

8. Marketing Plan............................................................................................................................. 11

8.1. Marketing Overview .............................................................................................................. 11

8.2. Branding and Positioning ...................................................................................................... 11

8.3. Sales Team .......................................................................................................................... 11

8.4. Scaling – National................................................................................................................. 12

8.5. Scaling – International .......................................................................................................... 12

8.6. Public Relations .................................................................................................................... 12

9. Operations ................................................................................................................................... 12

9.1. Creative Production .............................................................................................................. 12

9.2. Office Administration ............................................................................................................ 13

9.2.1. Front office Reception, Registration and Records ............................................................. 13

9.2.2. Communications ............................................................................................................... 13

9.2.3. Back office ........................................................................................................................ 13

10. Key Management ..................................................................................................................... 13

10.1. Key Management Team .................................................................................................... 13

10.2. Advisory Board.................................................................................................................. 14

10.3. Management Structure ...................................................................................................... 14

11. Financial Summary .................................................................................................................. 14

11.1. Financial Overview ............................................................................................................ 14

11.2. Funds Required and Their Use ......................................................................................... 15

11.3. The Deal Structure ............................................................................................................ 15

11.4. Risk Analysis .................................................................................................................... 15

11.5. Exit Strategy ..................................................................................................................... 15

Financials ........................................................................................................................................... 17

Sales Projections 2013 - 2016....................................................................................................... 18

Income Statement 2013 .................................................................................................................. 19




Appendix ............................................................................................................................................ 25

Live on line courses ........................................................................................................................ 28

Classes and Schedule .................................................................................................................... 29

Schedule of Courses and Classes 2013 .......................................................................................... 29

Live On Line: ............................................................................................................................... 30

On Demand: ................................................................................................................................ 30

Proficiency Courses ..................................................................................................................... 31

Intensive 5 Level English Language Program .............................................................................. 31

Special Classes (ESP) ................................................................................................................. 32

High School Diploma Market ........................................................................................................... 34

Outsourcing Support Market ........................................................................................................... 34

Key Leaders (M. Hackley ................................................................................................................ 35

INTRODUCTION

1.1. Introducing a bright new Idea

English Language School operates in San Antonio,

Texas. We offer English Language Courses for non-

English speaking adults seeking to enter post

secondary schools or enter the US workforce.

After many years of teaching at the City of San Antonio

learning centers, we discovered that if ESL students

are to succeed in the academic mainstream, or in

higher level workplaces they must be able to do more

than identify vocabulary words, hold simple

conversations, or find the main idea in a reading

passage. Instead, they must be able to use the

English language as a tool for acquiring knowledge while engaging in the active analysis and critique of the

information presented in English by the instructors. Our solution – create a Content-Based ESL system

combined with a Live-On-Line classroom experience and tutoring to make learning twice as effective

and affordable.

A natural area of expansion for English Language School is the new High School Diploma division. This division

helps us better serve students who want to enter the workplace immediately or enroll in state supported

universities. It also benefits the vast number of English speaking high school dropouts in our country.

We are much more than just an English language school—we provide learning systems for those who have

specific post secondary or professional goals and plans.

1.2. An outstanding difference We make a BIG difference for our students. Most of our students are

hard working family people who are looking for chance at the American

dream. Many are well educated and have multiple skill sets. However,

their low English language proficiency levels and lack of a high school

diploma forces them take minimum wage jobs and cope with erratic and

irregular work schedules. These factors force them to drop English

classes before completing the course and thus remain in their frustrating

dilemma. Our new Live On Line English classes eliminate these issues and allows them to watch videos of any

missed classes whenever they like as often as necessary.

All our classes can be accessed from the student’s home or anywhere else that has an internet connection.

Instructors present an actual classroom which students can attend on line. Students are able to interact with the

instructors and other students just like sitting in the classroom – the only difference is that they attend from their

laptop at home or work. They see the whiteboard; ask questions from the voice over system or text chat.

Students also enjoy access to our hands on lab environment 24 hours a day and tutoring that allows the

instructor to assist in real time as if they were standing right next to the student. This system makes missing a

class less likely because they are recorded for re-play when ever and as often as the student needs.

The result—successful students.

http://www.esl180.com/diploma

2. The Company

2.1. Company Summary English Language School operates in San Antonio, Texas. We offer Live on Line an On demand courses while engaging in the active analysis and critique of the information presented in English by the instructors. Our solution – create a Content-Based ESL system combined with a Live-On-Line classroom experience and tutoring to make learning twice as effective and affordable.

We are much more than just a school—we provide learning systems for those who have specific post secondary or professional goals and plans. 2.2. The Company Mission Our mission is to provide the most effective and efficient English language learning system in the world and become the de facto provider for English Language learning just as Facebook has done in the social media arena.

2.3. Development to Date English Language School began as a business enterprise in 2010 when the owners began teaching a few students from home. At that time clients were former students from the city learning centers seeking to gain better jobs or enter colleges or referees from former students. In early 2012, we executed a ‘soft launch’ to test the viability of the classes and services and to fine tune the on line system before implementing the larger marketing effort. The soft launch included College tutoring and Citizenship classes. This soft launch was quite successful from the pedagogical, technical and financial perspectives. Therefore, for the next several months we continued to develop and refine the Live on Line system and searched for a quality internet classroom platform and system.

In October 2012 we secured office space in the North Star Mall area in the Texas Community Bank building. During this period the company began to develop team members and operations in domestic and international portions of the business. We also began development of our On Demand courses for students who need to learn at their own pace and time. In August of 2013 we began international development in Haiti, Colombia and Saudi Arabia. We also have begun development of workplace ESL training modules for a variety of industry sectors.

2.4. Legal Status and Ownership The company is operating as a general partnership and is licensed to do business in the San Antonio, Texas area. M.L. Hackley and Sarah A. Hackley are sole owners. They are in the process of converting to an LLC in the state of Texas to reduce liability and accommodate the needs of investors.

3. Our Courses and Classes

3.1. English Language Proficiency Courses

Our 5 level Intensive English Courses are structured systems that enable students to master each

proficiency level in 16 weeks.

Our students “grow” within the language environment and growth takes proper nurturing and …time. Our aim is to

create motivated logical discourse learning vs. strings of unrelated words or sentences or temporary structured

discourse. The course system is a blended learning model that incorporates online learning, traditional classroom,

online labs, and real world field exercises. Emphasis is on developing a personal career plan and raising English

proficiency levels so that students can secure a ‘sustaining wage’ job in the shortest time possible. Each course

offers varying combinations of Social (Life Skills) and Academic lessons as well as grammar, speaking,

writing and listening skills.

http://www.esl180.com/

http://www.esl180.com/files/Directions_to_the_office_4.0.pdf

http://www.esl180.com/files/English_Language_Courses_explained_.pdf

3.2. English for Special Purposes (ESP)

Our specialized English classes are designed to help students prepare for Higher Education, Test Taking,

Professional and Business English and Workplace Preparation. We also offer custom Industry and Job

specific English classes for a variety of businesses and industries. Specific classes include: Job Search and

Workplace English, College Entrance Exam Tutoring, Accent Reduction, Citizenship Test Preparation

3.3. Corporate and Government Workplace Solutions

English Language School provides training courses and workshops to help our partners and their employees

improve communication between staff, management and clients. We focus on the specific needs of the

workplace, including context-specific vocabulary.

Classes and seminars for Hotel and Housekeeping, Business, Management & Professional teach client’s

staff to confidently speak, ask questions, give information and report emergencies.

These industry specific and job specific classes are custom designed for each client and can provide

outsourcing Language Solutions to global multinational corporations.

3.4. Teaching methods

We offer three methods of learning for all our courses and classes: Live On Line, On Demand and

Personal or Private Lessons.

3.4.1. Live-On-Line courses and classes

Live-On-Line classes are regularly scheduled sessions that keep our students motivated and on track to

reach their goals. Students are able to interact with the instructors and other students just like sitting in

the classroom – the only difference is that they attend from their laptop, I-phone or I-pad. They see the

whiteboard; ask questions from the voice over system or text chat.

Courses and classes are structured, follow a syllabus and meet at a designated class hours. There are

5 components to the learning system.

3.4.2. On Demand Course Systems

These interactive courses and classes are for students who prefer to be self taught or cannot attend

regular or structured classes. Students learn from home and at their own pace. This system provides the

same components and structure as the Live On Line courses, however, there are no regular classroom

meeting with teachers.

Students watch custom DVD’s on their computer or TV at home or work and the same personal tutoring

benefits are available as the Live On Line courses.

3.4.3. Personal One on One Lessons

Our one to one Private classes are tailored to students who need flexible schedules and specialized

course pace.

4. Industry Analysis and Trends

Throughout the country many immigrants are waiting months or even years to get into government-financed

English classes, which are often overcrowded and lack textbooks. A survey by the National Association of Latino

Elected and Appointed Officials found that in 12 states, 60 percent of English programs had waiting lists, ranging

from a few months in Colorado and Nevada to as long as two years in New Mexico and Massachusetts, where

the statewide list has about 16,000 names.

http://www.esl180.com/esp.html

The United States Department of Education counted 1.2 million adults enrolled in public English programs in

2005 — about 1 in 10 of the 10.3 million foreign-born residents 16 and older who speak English “less than

very well,” or not at all, according to census figures from the same year.

4.1. Industry Analysis

Of the 7 billion people on the earth today, less than 10% of the world’s population speaks English as their

native language. English-English is only the 3rd most commonly spoken language in the world today. But,

when it comes to a second language, more people want to learn English than all other languages combined.

Estimates indicate that is many as 2 billion people worldwide are either study in English or would like to learn

English. That’s because English is recognize as the language of the internet, commerce, medical, and

scientific research and many other fields. Learning English opens the door to a better life.

The current system uses a ‘one size fits all’ approach built under the assumption that all foreign-born adult learners,

regardless of degree of proficiency or prior education need English to meet the language demands of daily life.

4.2. USA Market

In the US waiting lists for class space attests to the overwhelming demand for ESL instruction. Some

immigrants who want to learn English may have to wait for months or years to get into ESL classes. In large

cities across the country, ESL programs frequently have waiting lists for classroom space. Some rural areas

have no available classes.

Most foreign-born residents live in six states -- California, Florida, Illinois, New Jersey, New York, and Texas

-- states that have experience establishing and maintaining programs for adult English language learners.

Other states have experienced recent and rapid growth in their immigrant populations. The following states

had an increase of more than 125% of foreign-born residents from 1990 to 2000.

The market is poised and awaiting a leader to emerge that will provide English language learning that is both

affordable and effective. Worldwide markets are opening up in every country; Students want to learn fast

and are committed to work hard to meet the task.

5. Ancillary Products and Services

5.1. High School Diploma Courses

To gain a competitive edge in the job market….many of my language students and thousands of others in San Antonio are looking for ways to get a High School Diploma as soon as possible. Texas Law, HB 123654, decrees that Home School program courses must be accepted by all Texas State University and colleges. These diplomas are also accepted by 95% of employers Our service is an at-your-own pace course. The GED is an exit strategy test that requires structured in class study and/or book purchases but no actual diploma. We plan to expand to 5 untapped growth markets using the following avenues to multiply the income by 4000 per month.

5.2. Textbooks and Study Guides

English Language School is developing its own textbook series to be published with a corresponding audio and video lesson segments. These textbooks are being created for both US and emerging markets and will be sold as standalone learning tools for students who elect to learn individually and independently

5.3. Video Lessons

We are in the process of building an extensive library of video and interactive learning tools. These programs will be produced for use with all our English classroom work and as independent learning tools for our On Demand users.

6. Target Market

Our business model primarily seeks out highly motivated adult professionals and skilled workers who are seeking

to re-enter their field here in the US. The target market includes professionals, skilled tradesmen entrepreneurs

and college students who have clear and specific goals.

6.1. Local Market (San Antonio and Texas)

San Antonio has the most significant foreign immigrant population in Texas (approximately one million).

Prospective students come from Mexico, South and Central America and the Middle East. We have been

working with students from the Defense Language Institute English Language Center (DLIELC)

and University of Texas and Incarnate Word.

6.2. USA Markets

There are millions throughout the US who are actively seeking to improve their English language proficiency.

We will concentrate on the major markets in Texas (San Antonio, Houston, Austin and Dallas) which contain

over 4 million.

Our USA expansion plan will extend to Florida (4 Million); East Coast - Washington DC, New York City, and

Boston (6 Million); and in the West – Southern California and Arizona (10 Million)

6.3. International Markets

On the international scale we will concentrate our efforts on emerging countries. We already have a

presence in Colombia, Haiti, and Saudi Arabia with plans for Romania and Russia.

7. The Competition

Worldwide the competition in the ESL world is wide and varied. Institutions, from Major Universities across the

nation to government sponsored free learning centers. Additionally, there are a wide variety of computer

interactive and audio courses available as well.

7.1. Local Competition

San Antonio offers free classes conducted and sponsored by local school districts and offered

through various learning centers throughout the city. These are 4 hour a week traditional “closed”

classes and are usually limited to two levels of basic lessons. Many students begin at this level and

once some proficiency is developed they move on to city colleges or private lessons.

Community colleges offer a 4 subject range (Reading, Listening, Writing, etc.) of English courses to

students in traditional classroom format and are charging rates of $365 per course lesson per quarter

for 10 hour per week classes. Sadly, even the school officials admit that students are still not

prepared to succeed in mainline courses and typically drop out after a few months.

Universities such as University of Texas and Incarnate Word offer extensive English language

courses that focus on effectively preparing students for mainline course success. These courses are

intensive and cost upwards from $5,000 per year. Students who are having challenges at this level

often come to us for tutoring help.

Private schools offer Conversational and social English classes in the traditional classroom setting.

Some will come to the student’s home or workplace. The cost for private lessons is usually $60 per

hour and group classes are $25 -35 per hour.

http://www.dlielc.edu/Welcome_dli1.html

7.2. National Competition

Nearly every major community and all our target regions in America have the same programs described in the

“Local Competition” section above. To date all offer traditional hourly classroom courses and lessons. A few

government run programs offer ‘distance learning’ courses using interactive lessons and limited teacher

interaction on line or by phone.

7.3. International Competition

International competition includes all the same organizations and procedures offered in the U. S. and a few big

players such as English Town and 30+ year old company that operates in manner very similar to ours. They do

not however, offer regular Live on Line classroom sessions. English Town earns over $50 Million annually.

8. Marketing Plan

English Language School has a three tiered marketing plan designed to reach a worldwide market and become

the defacto English language school worldwide.

8.1. Marketing Overview

Currently reaches qualifying individual student learners via email and social networking, and direct mail

systems to students from their current database. We also draw students from local programs and other

language schools by conducting free introductory seminars.

Second level growth will come from alliances with post secondary and trade schools. The school also offers

industry and job specific training to employers in the restaurant, hospital, construction and hotel industries.

The strategic sales plan focuses on scaling the business by marketing to international government and

private institutions worldwide.

Our strategic plan includes a goal to reach 1000 English language students before year 2 and 4000 by the end of

the fourth year. To accomplish these objectives we focus on four specific lucrative market segments. While each

of these areas is unique in focus and structure we will be able to customize and modify courses and systems.

8.2. Branding and Positioning

Our strategic marketing plan calls for reaching the qualifying students in the San Antonio Texas area

beginning with our current database of over 250 former students and expanding to the use of local print,

radio and internet marketing systems.

The second phase of the plan being is worked now for developing relationships with private and trade

schools as well as local businesses that currently employ large numbers of non-English speaking

workers. For this commercial market we shall focus on industry specific and/or job specific English

Language training.

Offering our servicers to foreign embassies and business men.

Outsourcing companies with an urgent need to train middle management team members in other

countries to communicate effectively with their US counterparts and upper management.

8.3. Sales Team

All company personnel are considered to be members of the sales team, from the office staff to the on line

teachers. All employees will receive financial bonuses if the company reaches overall sales goals. The

specific sales force shall be comprised of three key members:

Sales managers

General sales representatives

Advertising specialists for each venue

Each commissioned salesman is assigned specific venues and is responsible for filling and maintaining 5

new Live on Line students and 10 new On Demand students per month for each assigned region. The sales

teams will work from the field making direct or face-to-face approaches. Most of the follow-up will be done

on line using our highly specialized web-video conferencing system.

The Vice President and director of sales will oversee, manage and direct the entire process with the sales

team and will also develop sales in other cities and regions.

8.4. Scaling – National

The sales management team has designed a sales strategy model that can be modified to fit the unique

requirements of each city or region. This model includes:

A corporate prospect database developed by the home office.

Making preliminary sales phone calls and email contacts to the corporate prospects from home office

Sales manager setting up a temporary office to (a) make client sales calls and (b) hire a local sales

manager to build a team and manage the sales division.

8.5. Scaling – International

International locations will employ a similar system used as described in section 8.4, with the addition of

creating an internet café/classroom base to benefit students who do not have computers or internet access.

We currently have a presence in Colombia, Haiti and Saudi Arabia. Near future plans include Russia and

Romania.

8.6. Public Relations

A well planned public relations campaign can be far more effective than advertising. Therefore, English

Language School will launch a concurrent PR campaign that will issue press releases and news stories to

city and local newspapers, Business Journals and television and radio stations in all target cites and venues.

Furthermore we have developed a strategic agreement with the Non Profit Organization, The Helping Hands

International to provide a limited number of scholarships and grants to deserving students.

9. Operations

At the core of the English Language School’s strategic concept are four central systems:

Creative Production of Courses and Classes

Office Administration - Registration and Records

Strategic Sales from a national and international level

Technical Support

9.1. Creative Production

On Demand Courses, Video Lessons and Learning resources will be produced and developed exclusively for

English Language School by GAT Productions in Austin Texas. All course programs, videos, textbooks and

other learning materials will be produced in strict accordance to company requirements. The contract with

them calls for the production of the following before January 2014.

Creation of text books and artwork for all levels US

Audio recording of each lesson for all proficiency levels

Produce teaching video lessons for our own copyrighted video library

Production of 3rd

world text books with audio lessons

9.2. Office Administration

9.2.1. Front office Reception, Registration and Records

Front office staff will maintain all student registration and customer service both in office and on line.

They will also maintain all records for both students and teachers including classroom attendance

records and teacher evaluation.

9.2.2. Communications

The front office staff will also receive incoming calls and message staff, teachers and students when

necessary. They will also create and maintain all student, teacher and sales prospect databases.

9.2.3. Back office

Teacher and student administration records for payments, refunds and all other bookkeeping procedures

will be maintained by a two person team. This team will also prepare bookkeeping and accounting

information to be transferred to the company accounting firm.

10. Key Management

10.1. Key Management Team

Miles L. Hackley, CEO, Project Manager brings an array of experience and management skills to the

English Language School team. He is experienced in both media and sales and is a capable project

developer. Hackley founded English Language School in 2010, after four years of teaching ESL for the city

of San Antonio, Texas at the Ferrari Learning Center.

Hackley has produced and aired television commercials and built marketing divisions in a variety of

enterprises for over four decades. In 1988 Hackley began as President and CEO of Joshua House

Communications, an international non-profit radio broadcast systems. During his fifteen year tenure there he

developed a studio and radio program production, projects in Moscow, Russia and Kiev, Ukraine. Hackley

remains as Chairman of the board of directors for Joshua House

Sarah Anne Hackley, President and CFO is a graduate of the Arcadia University International Business

School in Philadelphia. Sarah has a keen interest in international business development and has traveled to

and/or studied in Romania, Switzerland, France, Haiti and Panama where she has a number of business

contacts. She has worked in a variety of business environments since high school and has acquired a

special acumen for creating financial strategies and marketing planning.

She also serves as Vice President and Coordinator of Development for The Helping Hands International

where she is working to build a diverse and sustainable local student funding base for Jehovah Jireh School

in Port Au Prince, Haiti.

Charles M. Daniel, Technical Director, has over 30 years experience as chef technician in a wide variety of work

settings including NASA, High performance vehicle specialist. Mr. Daniel has been a licensed pilot for over 30 years.

LeRoy Nienow, Resource Creative Director, is an accomplished writer, producer and director. He has

written a wide body of work for over 30 years. Mr. Nienow’s writing and recording experience will greatly

benefit the English Language School as direct and produce new video and audio lessons and courses.

Vernell Matthews Shiley - Colombia, Edna Juarez Jasso – Mexico, Saad Muthyib – Saudi Arabia and

Denel Villere –Haiti are all serving as Development Coordinators in their respective countries. These men

and women have set up a base of operations and learning stations to accommodate language school

students. They also follow up on corporate prospects.

10.2. Advisory Board

An informal Advisory Board will be formed to provide guidance to the officers and staff. The Advisory

Board will meet quarterly and members of the committee are available as resources to the company on an

ongoing basis.

10.3. Management Structure

The CEO and CFO will be involved in the day-to-day operation of all aspects of the company. They shall

direct the administrative and financial aspects of the company and work closely with the administrators and

managers to help guide and support activities over which they have responsibility. However, each

administrator and manager shall be given a wide degree of decision-making authority in his or her assigned

areas.

11. Financial Summary

11.1. Financial Overview

The English Language School three-year financials are displayed in Table 1 (Additional Information is found in

Appendix A.4). Because of the investment requirements and the need to increase industry awareness during the

first part of year 1, the Company may not achieve profitability for 3 to 9 months. However, by the end of the year

revenues are expected to approach $224,612. Year 2 revenues are expected to reach $3.8 million with net income

of $ 2 million. The Company is seeking $160,000 in financing with a ROI for investors of 50%.

English Language School intends to be a long-term business with international prominence, and will achieve

this by extending beyond our initial U.S. launch market. Since there are few firms that currently specialize in

live on line courses and with tutoring, there is plenty of room for continuous growth

The most desirable option for exit is a merger or buyout by a large corporation. We believe with strong cash

flows and a substantial customer base it will be particularly attractive to potential corporate investors within

five years. The possibility also exists for an expansion in two to three years to China. This option would

provide additional capital to fund that rollout.

11.2. Funds Required and Their Use

English Language School seeks a financial participant to provide $160,000 in financing to implement the

company's strategy. Due to the extremely high margins involved in services, the company will realize cash

inflow from existing clients. The primary need for capital is to produce the on demand courses, build a sales

team, and establish a suitable base of operations

11.3. The Deal Structure

The investor has a conversion option with the Convertible Note. The conversion option is designed to allow

the investor to convert from a convertible note position to an equity position. The convertible note position

pays an interest payment of nine (9%) and at maturity, the convertible note will pay the last interest payment

and the entire invested principle will be returned back to each investor or the convertible note may be

converted or exchanged into an ownership or equity position in English Language School, LLC. The

Company has an option to prepay or call the convertible note anytime within the first 36 months, at the sole

discretion of the Company, with a 20% prepayment principle bonus paid to the investor if the Company calls

the bonds before maturity plus any accrued interest.

The company projects a return on investment of 50% within three years.

11.4. Risk Analysis Although English Language School represents an excellent investment opportunity, there are inherent risks in the development of this online product, including:

Student enrollments are lower than expected;

Small business commerce is lower than anticipated;

Multiple competitors appear overnight;

Unmet teacher training and deployment schedules

11.5. Exit Strategy There are three primary means of an exit strategy for investors: Note Conversion: Participants in the Private Placement secured by a convertible note that elect not to exercise conversion provision will exit pursuant to the terms described in the Private Placement Memorandum (PPM) and Note agreements.

Merger or Acquisition: For equity investors, including any PPM participants that have exercised their conversion option: Merger or acquisition is a likely scenario. English Language School views this as the most viable harvest strategy for both the founders and the investors if the right opportunity presents itself. English Language School is an attractive acquisition for current big players such as English Town or a potential player who would like access to our dedicated students and customers.

Financials

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Rom

ania

0

00

00

00

03750

45005250

600019,5

00

US

A$6,8

55

$10,2

83

$13,7

10

$37,4

63

$51,1

73

$74,9

25

$98,9

18

$126,3

38

$157,1

85

$181,1

78

$205,1

70

$222,7

88

1,1

85,9

83

Book S

ale

s$3,0

00

$3,0

00

$3,0

00

$4,5

00

$4,5

00

$4,5

00

$4,5

00

$4,5

00

$4,5

00

36,0

00

To

tal

$7

,53

0$

11

,63

3$

16

,74

8$

44

,85

0$

58

,89

8$

82

,98

8$

11

3,9

18

$1

43

,43

8$

18

0,1

35

$2

06

,97

8$

23

3,8

20

$2

54

,28

8$

1,3

55

,22

0

Ye

ar 2M

on

th 1

Mo

nth

2M

on

th 3

Mo

nth

4M

on

th 5

Mo

nth

6M

on

th 7

Mo

nth

8M

on

th 9

Mo

nth

10M

on

th 11

Mo

nth

12To

tal

Stud

en

ts585

560595

590635

620675

670725

720775

800

Colom

bia4,050

4,2534,556

5,0635,569

6,2786,480

6,2786,480

7,0887,493

7,69571,280

Haiti

$4,050$4,253

$4,556$5,063

$5,569$6,278

$6,480$6,278

$6,480$7,088

$7,493$7,695

71,280

Saudia A

rabia $13,500

$14,175$15,188

$16,875$18,563

$20,925$21,600

$20,925$21,600

$23,625$24,975

$25,650237,600

Rom

ania 13,500

14,17515,188

16,87518,563

20,92521,600

20,92521,600

23,62524,975

25,650237,600

Ru

ssia$4,650

$4,800$4,650

$4,800$5,250

$5,550$5,700

35,400

Egypt

$4,650$4,800

$4,650$4,800

$5,250$5,550

$5,70035,400

US

A263,918

246,780270,773

267,355298,208

287,930325,643

322,225359,938

356,520394,233

411,3803,804,900

Book S

ales4,500

4,5004,500

4,5004,500

4,5006,750

6,7506,750

6,7506,750

6,75067,500

To

tal

$3

03

,51

8$

28

8,1

35

$3

14

,76

0$

31

5,7

30

$3

50

,97

0$

35

6,1

35

$3

98

,15

3$

39

2,6

80

$4

32

,44

8$

43

5,1

95

$4

77

,01

8$

49

6,2

20

$4

,56

0,9

60

Ye

ar 3M

on

th 1

Mo

nth

2M

on

th 3

Mo

nth

4M

on

th 5

Mo

nth

6M

on

th 7

Mo

nth

8M

on

th 9

Mo

nth

10M

on

th 11

Mo

nth

12To

tal

Stud

en

ts1,040

9801,030

1,0401,120

1,1001,180

1,1601,240

1,2201,300

1,330

Colom

bia$5,414

$5,414$5,129

$4,844$5,699

$6,269$6,411

$6,554$6,696

$6,839$6,981

$7,12473,372

Haiti

5,4147,695

7,2906,885

8,1008,910

9,1139,315

9,5189,720

9,92310,125

102,006

Saudia A

rabia $18,046

$25,650$24,300

$22,950$27,000

$29,700$30,375

$31,050$31,725

$32,400$33,075

$33,750340,021

Rom

ania $18,046

$25,650$24,300

$22,950$27,000

$29,700$30,375

$31,050$31,725

$32,400$33,075

$33,750340,021

Ru

ssia18,046

5,7005,400

5,1006,000

6,6006,750

6,9007,050

7,2007,350

7,50089,596

Egypt

$5,700$5,700

$5,400$5,100

$6,000$6,600

$6,750$6,900

$7,050$7,200

$7,350$7,500

77,250

Brazil

$6,600$6,750

$6,900$7,050

$7,200$7,350

$7,50049,350

Cuba

1,9802,025

2,0702,115

2,1602,205

2,25014,805

US

A$461,340

$419,400$454,725

$467,280$526,545

$515,160$574,425

$563,040$622,305

$610,920$670,185

$694,1256,579,450

Book S

ales$6,750

$6,750$6,750

$6,750$6,750

$6,750$9,750

$9,750$9,750

$9,750$9,750

$9,75099,000

To

tal

$5

38

,75

6$

50

1,9

59

$5

33

,29

4$

54

1,8

59

$6

13

,09

4$

61

8,2

69

$6

82

,72

4$

67

3,5

29

$7

34

,98

4$

72

5,7

89

$7

87

,24

4$

81

3,3

74

$7

,76

4,8

72

Income Statement Year 1 (all numbers in $100)

2013

January February March April May June July August September October November December Year to Date

Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

Accounts Receivable 2,190 1,833 3,507 3,964 2,610 0 0 7,855 11,958 16,060 41,500 56,560

Domestic Gross Sales $2,190 $1,833 $3,507 $3,964 $2,610 - - $6,855 $10,283 $13,710 $37,463 $51,173 $133,586

International Gross Sales - - - - - - - $675 $1,350 $3,038 $4,388 $9,450

Other Revenue - - - - - - $1,000 $1,000 $1,000 $1,000 $1,000 $5,000

Owners Investment (SSA) $1,548 $1,548 $1,548 $1,548 $6,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $1,548 $23,576

Outside Investment $8,000 $45,000 $53,000

Total Gross Income $3,738 $3,381 $5,055 $5,512 $9,158 $1,548 $1,548 $17,403 $58,506 $17,608 $43,048 $58,108 $224,612



General/Administrative

Salaries- Miles - - - - - - $2,000 $3,800 $3,800 $9,600

Sales Manager - - - - - - $2,000 $2,000 $3,000 $3,000 $10,000

Tech Manager - - - - - - - $500 $500 $1,200 $1,200 $3,400

Operations Manager - - - - - - - $0

Education Mangager - - - - - - - $0

Sitting President - - - - - - - $5,000 $5,000

Front Desk Worker - - - - - - - $600 $1,200 $1,200 $1,200 $1,500 $5,700

Sales Rep Cost - - - - - - - $2,667 $3,333 $4,000 $8,000 $10,667 $28,667

Sales (Field Agents) - - - - - - - $320 $320 $320 $320 $320 $1,600

Total Salaries and Wages - - - - - - - $3,587 $7,353 $10,020 $17,520 $25,487 $63,967

SSA - - - - - - - $203 $417 $568 $994 $1,446 $3,629

Wages Taxed $54 $110 $150 $263 $382 $960

Medicare - - - - - - - $52 $107 $145 $254 $370 $928

Operating Expenses

General and Administrative Costs - - - - - - - $3,896 $7,987 $10,884 $19,031 $27,684 $69,483

Teachers/Independent Contractors - - - - - - - $1,120 $1,400 $1,680 $3,360 $4,480 $12,040

Total Advertisig Cost - - - - - - - $137 $137 $137 $137 $137 $687

Travel $313 $474 $0 $0 $557 $144 $300 $1,000 $1,000 $3,000 $2,000 $8,788

Toner $200 $200

Paper $25 $25 $25 $25 $25 $125

Ink $35 $35 $35 $35 $35 $175

Software/Hardware $3,450 $350 $0 $250 $0 $4,050

Incorperation $450 $0 $0 $0 $0 $450

Coffee $9 $9 $9 $9 $9 $9 $9 $25 $25 $25 $25 $25 $188

Vonage Phone $18 $18 $18 $18 $18 $18 $18 $28 $28 $28 $28 $28 $266

Time Warner/Internet $52 $52 $52 $52 $52 $52 $52 $150 $150 $150 $150 $150 $1,114

Office Rent $769 $769 $769 $769 $769 $769 $768 $768 $768 $768 $768 $8,455

Hotel Outreach $260 $260 $260 $260 $260 $1,300

Internet Colombia $54 $54 $54 $54 $54 $270

Internet Haiti $50 $50 $50 $50 $50 $250

Web Pages $25 $25 $25 $25 $25 $25 $25 $38 $38 $38 $38 $38 $365

Cell Phone $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $850

Computer Equipment $905 $250 $1,155

Furniture/Printers $300

GAT Productions $2,500 $2,500 $2,500 $2,500 $10,000

Web Page Updating $1,500 $1,500

GAT Incorperation $400 $0 $400

GAT Phone $20 $20 $20 $20 $80

GAT Address - - - - - - - $20 $20

Computer Maintaince - - - - - - - $350 $350

Other Office Supplies $84 $132 $46 $0 $383 $381 $45 $45 $45 $45 $45 $45 $1,295

Video Production Euipment - - - - - - - $3,000 - - $3,000

Petrol $68 $0 $84 $0 $313 $0 $0 $0 $0 $0 $0 $0 $464

Food $84 $13 $39 $12 $56 $60 $0 $263

Bank Fees and Overdraft Fees $20 $159 $152 $204 $37 $58 $125 $0 $0 $0 $0 $0 $755

Restaurants $119 $193 $90 $90 $227 $222 $80 $80 $80 $80 $80 $1,343

Video /DVD Service $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $208

Reatail $154 $36 $111 $9 $533 $155 - - - $998

Dry Cleaning $0 $5 $0 $0 $0 $10 - $40 $40 $40 $40 $40 $215

Withdrawls $120 $20 $173 $513 $2,655 $20 - $3,500

Auto Maintainance $0 $0 $130 $0 $0 $131 - $261

Other Payments $120 $259 $380 $331 $251 $415 - $1,756

Colombia Payment - - - - - - - $150 $150 $150 $150 $150 $750

Total General/Administrative expenses - - - - - - - $3,896 $7,987 $10,884 $19,031 $27,684 $69,483

Total operating expenses $2,021 $2,231 $2,145 $2,098 $6,859 $2,018 $1,110 $7,823 $9,193 $10,203 $11,133 $11,353 $68,186

Total Expenses $2,021 $2,231 $2,145 $2,098 $6,859 $2,018 $1,110 $11,719 $17,180 $8,385 $30,163 $39,037 $124,967

Net income before taxes $1,717 $1,150 $2,910 $3,414 $2,299 ($470) $438 $5,684 $41,325 $9,223 $12,885 $19,071 $99,645

Taxes on income $14,464 $3,228 $4,510 $6,675 $28,876

Net income after taxes $1,717 $1,150 $2,910 $3,414 $2,299 ($470) $438 $5,684 $26,862 $5,995 $8,375 $12,396 $70,769

Net Income (Loss) $1,717 $1,150 $2,910 $3,414 $2,299 ($470) $438 $5,684 $26,862 $5,995 $8,375 $12,396 $70,769

Income

Operating Expenses

Income Statement 2013

Income Statement Year 2

2014



Accounts Receivable 300,018 284,635 311,260 312,230 347,470 352,635 392,403 386,930 426,698 429,445 471,268 490,470

Domestic Gross Sales $263,918 $246,780 $270,773 $267,355 $298,208 $287,930 $325,643 $322,225 $359,938 $356,520 $394,233 $411,380 $3,804,900

International Gross Sales $35,100 $36,855 $39,488 $43,875 $48,263 $63,705 $65,760 $63,705 $65,760 $71,925 $76,035 $78,090 $688,560

Other Revenue $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000


Outside Investment $0

Total Gross Income $301,566 $286,183 $312,808 $313,778 $349,018 $354,183 $393,951 $388,478 $428,246 $430,993 $472,816 $492,018 $4,524,036

January February March April May June July August September October November December

Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount


Salaries- Miles $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $7,000 $7,000 $7,000 $7,000 $7,000 $70,000

Sales Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Tech Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Operations Manager - $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $44,000

Education Mangager - $4,000 $4,000 $4,000 $4,000 $4,000 $20,000

Sitting President $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000

Front Desk Worker $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000

Sales Rep Cost $14,667 $19,333 $24,667 $30,667 $35,333 $40,000 $44,667 $78,000 $74,667 $79,333 $78,667 $84,667 $604,667

Sales (Field Agents) $960 $960 $960 $960 $960 $960 $960 $1,920 $1,920 $1,920 $1,920 $1,920 $16,320

Total Salaries and Wages $34,627 $43,293 $48,627 $54,627 $59,293 $63,960 $68,627 $108,920 $105,587 $110,253 $109,587 $115,587 $922,987

SSA $1,964 $2,456 $2,759 $3,099 $3,364 $3,628 $3,893 $6,179 $5,990 $6,255 $6,217 $6,557 $52,361

Wages Taxed $519 $649 $729 $819 $889 $959 $1,029 $1,634 $1,584 $1,654 $1,644 $1,734 $13,845

Medicare $502 $628 $705 $792 $860 $927 $995 $1,579 $1,531 $1,599 $1,589 $1,676 $13,383

Operating Expenses

General and Administrative Costs $37,613 $47,027 $52,820 $59,337 $64,406 $69,475 $74,544 $118,312 $114,691 $119,760 $119,036 $125,554 $1,002,576

Teachers/Independent Contractors $6,160 $8,120 $10,360 $12,880 $14,840 $16,800 $18,760 $32,760 $31,360 $33,320 $33,040 $35,560 $253,960

Total Advertisig Cost $450 $450 $450 $450 $450 $450 $900 $900 $900 $900 $900 $900 $8,100

Travel $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000

Toner $200 $200

Paper $25 $25 $25 $25 $25 $25 $25 $50 $50 $50 $50 $50 $425

Ink $35 $35 $35 $35 $35 $35 $35 $70 $70 $70 $70 $70 $595

Software/Hardware $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $300

Incorperation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Coffee $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300

Vonage Phone $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $216


Office Rent $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $9,216

Hotel Outreach $260 $0 $0 $0 $0 $0 $0 $260 $260 $260 $260 $260 $1,560

Internet Colombia $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420

Internet Haiti $50 $50 $50 $50 $50 $50 $50 $50 $0 $400

Web Pages $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $456

Cell Phone $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200

Computer Equipment $1,200 $1,200 $2,400

Furniture/Printers $400

GAT Productions $7,500 $7,500 $15,000

Web Page Updating $1,500 $1,500 $3,000

GAT Incorperation $0

GAT Phone $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240

GAT Address - $0

Computer Maintaince - $350 $350 $700

Other Office Supplies $45 $45 $45 $45 $45 $45 $45 $45 $45 $45 $45 $45 $540

Video Production Euipment - - - - - - - $0 - - - - $0

Petrol $0

Food $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300

Bank Fees and Overdraft Fees $0

Restaurants $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $960


Reatail $0

Dry Cleaning $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $480

Withdrawls $0

Auto Maintainance $0

Other Payments $0

Colombia Payment - $0

Total General/Administrative expenses $37,613 $47,027 $52,820 $59,337 $64,406 $69,475 $74,544 $118,312 $114,691 $119,760 $119,036 $125,554 $1,002,576


Total Expenses $48,204 $65,718 $66,551 $74,088 $81,467 $88,147 $96,026 $155,913 $159,343 $159,522 $156,668 $165,705 $1,317,351

Net income before taxes $253,362 $220,465 $246,257 $239,690 $267,551 $266,036 $297,925 $232,565 $268,903 $271,471 $316,148 $326,313 $3,206,685

Taxes on income $88,677 $77,163 $86,190 $83,891 $93,643 $93,113 $104,274 $81,398 $94,116 $95,015 $110,652 $114,210 $1,122,340

Net income after taxes $164,685 $143,302 $160,067 $155,798 $173,908 $172,924 $193,651 $151,167 $174,787 $176,456 $205,496 $212,103 $2,084,345

Net Income (Loss) $164,685 $143,302 $160,067 $155,798 $173,908 $172,924 $193,651 $151,167 $174,787 $176,456 $205,496 $212,103 $2,084,345

Income

Operating Expenses



2015



Accounts Receivable 533,006 496,209 527,544 536,109 607,344 612,519 673,974 664,779 726,234 717,039 778,494 804,624

Domestic Gross Sales $461,340 $419,400 $454,725 $467,280 $526,545 $515,160 $574,425 $563,040 $622,305 $610,920 $670,185 $694,125 $6,579,450

International Gross Sales $70,666 $75,809 $71,819 $67,829 $79,799 $96,359 $98,549 $100,739 $102,929 $105,119 $107,309 $109,499 $1,086,422

Other Revenue $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000



Total Gross Income $534,554 $497,757 $529,092 $537,657 $608,892 $614,067 $675,522 $666,327 $727,782 $718,587 $780,042 $806,172 $7,696,448




Salaries- Miles $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $84,000

Sales Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Tech Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Operations Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Education Mangager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000



Sales Rep Cost $82,667 $90,000 $89,333 $96,667 $96,000 $103,333 $106,667 $138,667 $130,667 $137,333 $138,667 $149,333 $1,359,333

Sales (Field Agents) $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $23,040

Total Salaries and Wages $113,587 $120,920 $120,253 $127,587 $126,920 $134,253 $137,587 $169,587 $161,587 $168,253 $169,587 $180,253 $1,730,373

SSA $6,444 $6,860 $6,822 $7,238 $7,200 $7,616 $7,805 $9,621 $9,167 $9,545 $9,621 $10,226 $98,164

Wages Taxed $1,704 $1,814 $1,804 $1,914 $1,904 $2,014 $2,064 $2,544 $2,424 $2,524 $2,544 $2,704 $25,956

Medicare $1,647 $1,753 $1,744 $1,850 $1,840 $1,947 $1,995 $2,459 $2,343 $2,440 $2,459 $2,614 $25,090

Operating Expenses


Teachers/Independent Contractors $25 $37,800 $37,520 $40,600 $40,320 $43,400 $44,800 $58,240 $54,880 $57,680 $58,240 $62,720 $536,225

Total Advertisig Cost $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000

Travel $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000

Toner $200 $200

Paper $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $850

Ink $70 $70 $70 $70 $70 $70 $70 $140 $140 $140 $140 $140 $1,190


Incorperation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Coffee $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300

Vonage Phone $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $216


Office Rent $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $9,216

Hotel Outreach $260 $260 $260 $260 $260 $260 $1,560

Internet Colombia $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420

Internet Haiti $0

Web Pages $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $456

Cell Phone $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200


Furniture/Printers $0 $400

GAT Productions $7,500 $7,500 $15,000

Web Page Updating $1,500 $1,500 $3,000

GAT Incorperation $0

GAT Phone $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240

GAT Address - $0

Computer Maintaince - $350 $350 $700


Video Production Euipment - - - - - - - - - - - - $0

Petrol $0

Food $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300


Restaurants $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $960


Reatail $0

Dry Cleaning $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $480

Withdrawls $0


Other Payments $0

Colombia Payment - $0



Total Expenses $128,397 $179,078 $170,924 $184,320 $180,816 $191,661 $196,682 $247,611 $242,712 $245,653 $249,961 $263,328 $2,481,144

Net income before taxes $406,157 $318,679 $358,168 $353,337 $428,076 $422,405 $478,840 $418,715 $485,070 $472,933 $530,080 $542,844 $5,215,304

Taxes on income $142,155 $111,538 $125,359 $123,668 $149,827 $147,842 $167,594 $146,550 $169,775 $165,527 $185,528 $189,995 $1,825,356

Net income after taxes $264,002 $207,141 $232,809 $229,669 $278,250 $274,563 $311,246 $272,165 $315,296 $307,407 $344,552 $352,848 $3,389,948

Net Income (Loss) $264,002 $207,141 $232,809 $229,669 $278,250 $274,563 $311,246 $272,165 $315,296 $307,407 $344,552 $352,848 $3,389,948

Income

Operating Expenses



2016



Accounts Receivable 857,165 936,520 1,015,915 1,189,250 1,292,665 1,420,120 1,525,115 1,630,150 1,735,225 1,840,340 1,945,495 2,050,690

Domestic Gross Sales $715,165 $780,420 $845,715 $990,850 $1,080,165 $1,169,520 $1,258,915 $1,348,350 $1,437,825 $1,527,340 $1,616,895 $1,706,490 $14,477,650

International Gross Sales $141,000 $155,100 $169,200 $197,400 $211,500 $249,600 $265,200 $280,800 $296,400 $312,000 $327,600 $343,200 $2,949,000

Other Revenue $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000



Total Gross Income $858,713 $938,068 $1,017,463 $1,190,798 $1,294,213 $1,421,668 $1,526,663 $1,631,698 $1,736,773 $1,841,888 $1,947,043 $2,052,238 $17,457,226




Salaries- Miles $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $84,000

Sales Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Tech Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Operations Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000

Education Mangager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000



Sales Rep Cost $146,667 $157,333 $154,667 $165,333 $162,667 $173,333 $177,333 $198,667 $210,667 $222,667 $253,333 $270,667 $2,293,333

Sales (Field Agents) $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $3,840 $3,840 $3,840 $3,840 $3,840 $32,640

Total Salaries and Wages $177,587 $188,253 $185,587 $196,253 $193,587 $204,253 $208,253 $231,507 $243,507 $255,507 $286,173 $303,507 $2,673,973

SSA $10,074 $10,680 $10,528 $11,133 $10,982 $11,587 $11,814 $13,133 $13,814 $14,495 $16,235 $17,218 $151,695

Wages Taxed $2,664 $2,824 $2,784 $2,944 $2,904 $3,064 $3,124 $3,473 $3,653 $3,833 $4,293 $4,553 $40,110

Medicare $2,575 $2,730 $2,691 $2,846 $2,807 $2,962 $3,020 $3,357 $3,531 $3,705 $4,150 $4,401 $38,773

Operating Expenses


Teachers/Independent Contractors $61,600 $66,080 $64,960 $69,440 $68,320 $72,800 $74,480 $83,440 $88,480 $93,520 $106,400 $113,680 $901,600

Total Advertisig Cost $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $10,000

Travel $200 $200 $400

Toner $100 $100 $100 $100 $100 $100 $100 $150 $150 $150 $150 $150 $1,350

Paper $140 $140 $140 $140 $140 $140 $140 $160 $160 $160 $160 $160 $1,640

Ink $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


Incorperation $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $275

Coffee $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $18 $198

Vonage Phone $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,100


Office Rent $260 $260 $260 $260 $260 $260 $1,300

Hotel Outreach $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $385

Internet Colombia $0

Internet Haiti $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $418

Web Pages $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,100

Cell Phone $1,200 $1,200


Furniture/Printers

GAT Productions $1,500 $1,500 $3,000

Web Page Updating $0

GAT Incorperation $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $220

GAT Phone $0

GAT Address $350 $350 $350 $700

Computer Maintaince $300 $300 $300 $600


Video Production Euipment - - - - - - - - - - - - $0

Petrol $0

Food $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $550


Restaurants $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $880


Reatail $0

Dry Cleaning $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $440

Withdrawls $0


Other Payments $0

Colombia Payment $0



Total Expenses $259,286 $279,843 $268,126 $284,193 $281,676 $298,092 $302,267 $338,816 $364,391 $374,965 $422,006 $448,764 $3,663,139

Net income before taxes $599,427 $658,225 $749,337 $906,605 $1,012,537 $1,123,576 $1,224,396 $1,292,882 $1,372,382 $1,466,923 $1,525,037 $1,603,474 $12,935,374

Taxes on income $209,799 $230,379 $262,268 $317,312 $354,388 $393,251 $428,538 $452,509 $480,334 $513,423 $533,763 $561,216 $4,527,381

Net income after taxes $389,627 $427,846 $487,069 $589,294 $658,149 $730,324 $795,857 $840,373 $892,049 $953,500 $991,274 $1,042,258 $8,407,993

Net Income (Loss) $389,627 $427,846 $487,069 $589,294 $658,149 $730,324 $795,857 $840,373 $892,049 $953,500 $991,274 $1,042,258 $8,407,993

Income

Operating Expenses


Appendix

Click the file below to see presentation describing all our courses and classes

Live on line courses

http://www.esl180.com/files/live_on_line_presentation_2.pdf

Texas Haiti Riyadh Romania

12:00 AM 1:00 AM 8:00 AM 5:00 PM

1:00 AM 2:00 AM 9:00 AM 6:00 PM

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3:00 AM 4:00 AM 11:00 AM 8:00 PM

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6:00 AM 7:00 AM 2:00 PM 11:00 PM

7:00 AM 8:00 AM 3:00 PM 12:00 AM

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9:00 AM 10:00 AM 5:00 PM 2:00 AM

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12:00 PM 1:00 PM 8:00 PM 5:00 AM

1:00 PM 2:00 PM 9:00 PM 6:00 AM

2:00 PM 3:00 PM 10:00 PM 7:00 AM

3:00 PM 4:00 PM 11:00 PM 8:00 AM

4:00 PM 5:00 PM 12:00 AM 9:00 AM

5:00 PM 6:00 PM 1:00 AM 10:00 AM

6:00 PM 7:00 PM 2:00 AM 11:00 AM

7:00 PM 8:00 PM 3:00 AM 12:00 PM

8:00 PM 9:00 PM 4:00 AM 1:00 PM

9:00 PM 10:00 PM 5:00 AM 2:00 PM

10:00 PM 11:00 PM 6:00 AM 3:00 PM

11:00 PM 12:00 AM 7:00 AM 4:00 PM

Classes and Schedule

CLASS NAME START END TEACHER DAYS Room #

Accent Reduction 9:00 AM 10:00 AM M Hackley Fri - Sat 1

O P E N 9:00 AM 10:00 AM Staff Fri - Sat 2




Business 12:00 AM 10:00 AM M Hackley Fri - Sat 1

0 English - Basic Skills 12:00 AM 1:00 AM Acosta Mon-Thur SAR 1

0 English - Basic Skills 12:00 AM 1:00 AM Staff Mon-Thur ALL 2

O P E N 12:00 AM 1:00 AM Staff Mon-Thur 3

1 English - Elementary 1:30 AM 2:30 AM Staff Mon-Thur SAR 1

2 English - Limited Working 1:30 AM 2:30 AM Staff Mon-Thur ALL 2

2 English - Limited Working 1:30 AM 2:30 AM M. Hackley Mon-Thur ALL 3

1 English - Elementary 3:00 AM 4:00 AM Staff Mon-Thur ROM 1

2 English - Limited Working 3:00 AM 4:00 AM M. Hackley Mon-Thur ALL 2

O P E N 3:00 AM 4:00 AM Staff Mon-Thur ALL 3

3 English - Professional Working 4:30 AM 5:30 AM Staff Mon-Thur ALL 1



1 English - Elementary 8:00 AM 9:00 AM M. Hackley Mon-Thur All 1

0 English - Basic Skills 8:00 AM 9:00 AM Jasso Mon-Thur All 2

O P E N 8:00 AM 9:00 AM Staff Mon-Thur All 3

2 English - Limited Working 9:30 AM 10:30 AM M. Hackley Mon-Thur All 1

2 English - Limited Working 9:30 AM 10:30 AM Acosta Mon-Thur All 2

3 English - Professional Working 9:30 AM 10:30 AM Staff Mon-Thur All 3

3 English - Professional

Working

11:00 AM 12:00 PM M. Hackley Mon-Thur All 1

4 English - Full Professional 11:00 AM 12:00 PM Acosta Mon-Thur All 2

0 English - Basic Skills 11:00 AM 12:00 PM Franklin Mon-Thur COL 3

M A IN T E N A N C E 12:00 PM Mon-Thur

0 English - Basic Skills 12:30 PM 1:30 PM Staff Mon-Thur ALL 1

O P E N 12:30 PM 1:30 PM Staff Mon-Thur ALL 2

O P E N 12:30 PM 1:30 PM Staff Mon-Thur ALL 3

0 English - Basic Skills 2:00 PM 3::00 PM M. Hackley Mon-Thur All 1

0 English - Basic Skills 2:00 PM 3::00 PM Franklin Mon-Thur COL 2

O P E N 2:00 PM 3::00 PM Staff Mon-Thur All 3

0 English - Basic Skills 3:30 PM 4:30 PM Jasso Mon-Thur All 1

2 English - Limited Working 3:30 PM 4:30 PM Acosta Mon-Thur All 2

O P E N 3:30 PM 4:30 PM Staff Mon-Thur All 3

1 English - Elementary 5:00 PM 6:00 PM S. Hackley Mon-Thur HAI 1



4 English - Full Professional 6:30 PM 7:30 PM M Hackley Mon-Thur All 1

1 English - Elementary 6:30 PM 7:30 PM Franklin Mon-Thur COL 2

1 English - Elementary 6:30 PM 7:30 PM Wilson Mon-Thur All 3

2 English - Limited Working 8:00 PM 9:00 PM Acosta Mon-Thur All 1



2 English - Limited Working 9:30 PM 10:30 PM Wilson Mon-Thur All 1



M A IN T E N A N C E 11:00 PM Mon-Thur

Schedule of Courses and Classes 2013

For the complete 24 hour list of classes click here.

[Type the document title]

Live On Line: Regularly scheduled sessions that keep our students motivated and on track to reach their goals.

Classes can be accessed from the student’s home or anywhere else that has an internet connection.

Instructors present an actual classroom which students can attend on line. Students are able to

interact with the instructors and other students just like sitting in the classroom – the only difference is

that they attend from their laptop at home or work. They see the whiteboard; ask questions from the

voice over system or text chat.

Courses and classes are structured, follow a syllabus and meet at a designated class hours. There are 5 components to the learning system.

1. Downloadable Print and Recorded Lessons: each Sunday evening students receive weekly work assignments via email. It will include lesson plan with links to related video and audio lessons as well as grammar print lessons and tests.

2. Regular Class Sessions Mon – Thu: they log into the class at a designated hour. The

teacher will review all the day’s lesson; respond to lesson related questions; and conduct reading and speaking lessons.

3. Class Sessions are recorded and available for review as often as needed. 4. Weekly Tutoring Sessions are available to address any special challenges

On Demand: On line interactive courses and classes for students who prefer to be self taught or cannot attend regular or structured classes we offer On Demand classes. Students learn from home and at their own pace. This system provides the same components and structure as the Live On Line courses, however there are no regular classroom meeting with teachers. Students watch custom DVD’s on their computer or TV at home or work and the same personal tutoring benefits are available as the Live On Line courses.

Proficiency Courses Online classes are scheduled around the clock 24 hours a day students can log on from any country in the world.

Intensive 5 Level English Language Program Our English Language classes contain 5 progressive proficiency levels and each course level contain 63 classroom hours of classroom study. Students can choose from our two main study options:

1) the Intensive 16 week course (4 months) which meets four days weekly or 2) the regular 32 week (8 months) which meets two days each week.

Tutoring is also available to provide extra support and individual attention. If they miss a session, they’ll always be able to watch and listen to a replay of it at their convenience. Levels 1 & 2 are our most popular courses. They are designed for the students who want to learn basic social English communication: to go shopping, attend schools, communicate at work. These classes build confidence in using social and life skills while developing written and verbal communication skills. All classes include grammar and verb usage skills. Our level 3 and 4 courses are designed for the strong student who wants to go on to college, enroll in technical or professional schools, or go into business for themselves. This class focuses on more difficult content and academic work and they study with upper level peers. To enroll students must have completed levels 2 or scored above level 2 on our evaluation exam. The Basic English Course provides core or foundational understanding of the alphabet, phonological awareness, and early phonics. They have command of a significant number of high-frequency words.

Basic English

http://www.esl180.com/files/DESCRIPTION_OF_COURSES_with_all_star_books_10.0.pdf

http://www.esl180.com/files/DESCRIPTION_OF_COURSES_with_all_star_books_10.0.pdf

Special Classes (ESP) Customized and special courses and classes are designed to meet the unique specific needs of the student. They are personal achievement based, industry specific and job specific classes. TOEFL and IELTS Test Preparation TOEFL and IELTS test-preparation programs that helps to bridge the gap between general English language knowledge and recognized acceptance of your abilities by colleges, universities and employers. Many students learning English know that strong English skills alone are not enough to guarantee success on these required tests. To succeed on this test, students need specialized skills and strategies for improved performance on the test. US Citizenship This class will help students prepare to become United States citizens. Comprehension of study materials will be necessary to assure success in the program. The class will include U.S. history, government and geography and the study of American customs and culture. Computer Fundamentals Students learn basic computer and internet operations. They also learn the basic programs (MS Word, Excel and PowerPoint) Accent Reduction and pronunciation We focus on changing regional accents to increase personal and professional opportunities. Students learn to:

Engaging in extensive conversations, presentations, and telephone calls and get greater understanding from listeners

Be more confident and effective, both socially and professionally

Improve professional image Greater understanding from listeners New Business Start Up Basics Immigrants are one of the fastest-growing segments of small business owners in the United States and will be a sizeable portion of owners by 2017, according to Intuit Inc.'s Future of Small Business Report, co-authored by the Institute for the Future.

http://esl180.com/files/_What_is_the_TOEFL_test.pdf

Click on the file below to read the entire article

HIGH SCHOOL DIPLOMA MARKET

OUTSOURCING SUPPORT MARKET

Serving major companies that are outsourcing to other countries promises to be the most

lucrative and stable sales division. As the company becomes fully established we shall focus

more heavily on this market.

Outsourcing Statistics

Total number of U.S. jobs outsourced in 2011 2,273,392

Percent of CFO’s surveyed

who said their firm is currently outsourcing 35 %

Percent of CFO’s who favored India 24 %

Percent of CFO’s who favored China 18 %

Outsourcing By Sector Percent of Companies

Manufacturing 53 %

IT Services 43 %

R&D 38 %

Distribution 26 %

Call or Help Centers 12 %

Business Start Ups and Plans

English Language School Language School San Antonio, TX

Lifeport Air Transport Air Charter Service Priest River, ID

Fresh Water Bottling Bottle Water Manufacturing Moscow, Russia

Joshua House Communications International Radio Ministry Austin, TX

Cali Bike Tours Touring Agency Long Beach, CA

The Helping Hands International Non Profit Organization Port Au Prince, Haiti

Raised Bed Garden Designs Garden Company San Antonio, TX

Soothing Nature Massage Medical Massage Therapy San Antonio, TX

AdVues Indoor Advertising Digital Indoor Advertising San Antonio, TX

Healthy Tap/ TX Health Products Water Treatment San Antonio, TX

Global Currency Exchange Currency Trading Firm Austin, TX

San Antonio Good News Alternative Newspaper San Antonio, TX

Lighthouse Ministry Ministry to homeless San Jose, CA

Busy Bees Home Care Housecleaning Service San Jose, CA

Metropolitan Housing Exchange Rooming house projects San Jose, CA

Los Angeles Recovery Service Collections and Investigation Los Angeles, CA

Consulting & Development Projects

Chase Manhattan Bank San Antonio, TX

KNLE Radio Austin, TX

Family Radio Worldwide Oakland, CA

City National Bank Beverly Hills, CA

Bank of America Pasadena, CA

Unity State Bank Dayton, Ohio

Transamerica Finance Dayton, Ohio

Specialty Skills and Services

Business Start up and Development

Business, Marketing and Sales Plan Creation

Fundraising and Sales

Staff training – Operations, Production and Sales

Producer of training videos

Radio and Audio production

Ad Hoc Software System & process development

Campaign development or product launch

Copywriting

Press/news release

Business film scripts (training and information)

Radio commercials/PSAs

Scripts for nontheatrical films for education, business, industry

Brochures, fliers, booklets for business

Business letters

Newsletters, desktop publishing/production

Translation (commercial, for government agencies) Key Leaders (M. Hackley

M . L . H a c k l e y III

Four Decades of Dependable E x p e r i e n c e

(4) exhibit d business plan (with financials an appendix) 16 0

Documents

usa page

underlying assumptions

companys actual performance

high school diploma

industry analysis

projected results

intended results

companys development