powerpoint presentation · 2019-03-19 · company profile march 2019. 1. may 2015. kurt knewitz....
TRANSCRIPT
Company ProfileMarch 2019
1
May 2015 Kurt KnewitzFormation Date Founder/CEO
- Financial Snapshot -
Company History
Kurt Knewitz was the founder of 5 Star SWD LLC, a saltwater disposal company operating in the Eagle Ford Shale of South Texas. Kurt led the expansion process seeking saltwater disposal properties for acquisition. After several weeks of exhaustive search, he quickly realized there was a significant need in the industry for an online marketplace that could help buyers and sellers of SWD’s connect and transact more efficiently and cost-effectively.
The seed was planted and in May of 2015, Kurt sold his interest in 5 Star SWD and immediately leveraged his expertise building internet companies and launched BuySWD.com to fill a critical gap within the saltwater disposal industry.
2
3
34
$40MM+Total Value of Completed
Transactions
Total Transactions Completed Since Inception
220Current Inventory of Properties (0.5% of
SWD Market)
Closing Ratio
$750MMTotal BuySWD Inventory
Value
- BuySWD Startup Phase 2015-2018 -
15%
Company Snapshot
$1.5MM+Total BuySWD Revenue
Highly Profitable
Easily Scalable
Market Leader
Growing Industry
Brand Power
Experienced Mgmt
Upside Potential
4
Build the largest & most robust digital “ecosystem” enabling all SWD industry participants to interact and
transact in the most efficient and cost-effective manner.
Company Mission
5
$40MM+Total Transactions
Since Inception (7/15 – 12/18)
$1.5MM+Total Revenue Since Inception
(7/15-12/18)
$18MM+ $840K+Total Transactions
(1/18-12/18)Total Revenue(1/18-12/18)
$0$2,000,000$4,000,000$6,000,000$8,000,000
$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000
2015 2018
320% Sales Growth
Total Sales
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
2015 2018
420% Revenue Growth
Total Revenue
- Financial Snapshot of Startup Phase -
Financial SummaryStartup Phase (5/15-12/18)
6
$18MM
2Total # of Current
Employees
2018 Total Annual SWD Property Sales
$42MM
5Total # of Employees
To Be Hired
Total Offers Submitted & Pending Sales
- Financial Snapshot -
2019 Financial Projections2018 Actual 2019 Target
2018 Total Annual SWD Success Fees
$840K $1.58MMTotal Pending SWD
Success Fees
2019 Pending
$50MM
Total # of Employees Post Funding
2019 Total Projected SWD Property Sales
$1.5MM2019 Target Annual SWD Success Fees
7
7
220+
$750 MillionTotal Current BuySWD Inventory Value
Total Current SWD Inventory
40,000# of Saltwater Disposal
Wells in U.S.
Total BuySWD Current Market Share
$20BillionTotal SWD Market
Value
- BuySWD.com Current Market Share Snapshot -
BuySWD Current Inventory
Total SWD in U.S. BuySWD Current Inventory
0.5%
Current BuySWD Market Share
40,000 220
8
40,000# of Saltwater Disposal
Wells in U.S.
$20BillionTotal SWD Market
Value
2.0%800Target SWD Market
Share By 2021Target SWD Inventory
By 2021
- BuySWD.com Market Share Projections -
$3.0 BillionTarget SWD Inventory Value By 2021
BuySWD Target Inventory
Total U.S. BuySWD Target Inventory
2021 Target Market Share
9
220Total Current BuySWD
Inventory
$750MMTotal Current BuySWD
Inventory Value
- BuySWD.com Growth Projections -
15%Total BuySWD
Sales Ratio
$40MMTotal BuySWD
Transaction Value
34Total BuySWD Transactions
800Target BuySWD
Inventory
$3BTarget BuySWD Inventory Value
15%Total BuySWD
Sales Ratio
$180MMTarget BuySWD
Transaction Value
120Target BuySWD
Transactions
Startup Phase (’15-’18) Growth Phase (‘19-’21)
$6.75MMTotal Target BuySWD
Success FeesTotal BuySWD Success Fees
$1.58MM
10
25%Total Projected SWD Property
Sales Transactions
- BuySWD.com Investor Projections -
Projected Returns
$180MM
Growth Phase (‘19-’21)
$6.75MM
Percentage of Gross Sales Revenue To Be Distributed To Investors
$1.68MMTotal BuySWD Projected Income
Distributions Returned To InvestorsTotal Projected
BuySWD Success Fees
73% Estimated Return on Capital Contributed During Growth Phase (2019-2021) From BuySWD.com Alone, Not Including other BuySWD.com products (ie: SWDInvest.com,
SWDEquipment.com, MidstreamMarket.com, SWDJobs.com, SWDFund.com)
11
Total Capital Raise For Corporate Expansion
- Terms Of Offering -
Terms Of Offering
$2.3MM
Total Equity in BuySWD.com LLC &
BuySWD.com FOC LLC “Family of Companies”
• BuySWD.com v3.0• SWDInvest.com• MidstreamMarket.com• SWDEquipment.com• SWDJobs.com• SWDFund.com
• PermianPipeline.com• H2OPipeline.com• PermianSWD.com• SWDFinance.com• SWDLoans.com• SWDMarket.com• Saltwater-Disposal.com
Future Potential Addt’l Products
New Products To Be Developed
25%
Total Gross RevenueRecapture To “Payout” For
Participating Investors
“Family Of Companies”
25%
12
Total Projected BuySWD.com Family Of Companies Revenue
- BuySWD Family Of Companies Investor Projections -
Projected Returns
$15.1MM
Growth Phase (‘19-’21)
3 Year Total Revenue Projections By Co
BuySWD.com SWDInvest.comMidstreamMarket.com SWDEquipment.comSWDFund.com SWDJobs.comMisc Income
$5.4MM$630K
$1.5MM
$4.3MM~$3.7MM
Total Projected Investor Returns @ 25% Gross Revenue Recapture
42-53%Total Projected Annualized Rate
of Return (ROR) To Investors
$2MM
$1MM
13
BUYERS
INVESTORS VENDORS
SELLERS
SERVICE PROVIDERS
The current BuySWD marketplace only connects buyers & sellers
OPERATORSOWNERS
- The BuySWD Marketplace -
14
BUYERS
INVESTORS VENDORS
SELLERS
SERVICE PROVIDERS
The NEW digital ecosystem will connect ALL industry participants
OWNERS OPERATORS
- The SWD Digital Ecosystem Model -
BuySWD.com - #1 Online Marketplace to Buy & Sell Saltwater Disposal Wells
Buyers, Sellers BuySWD.com Version 3.0 to be developed & launched by 5/1/19
SWDInvest.com – Investment platform for accredited investors to buy fractional interest in profitable SWD’s
Investors, Buyers, Sellers Currently in development scheduled for 2/1/19 launch date
MidstreamMarket.com – Online marketplace to Buy & Sell water midstream assets
Buyers, Sellers, Investors Scheduled to begin development on 3/1/19 for 6/1/19 target launch date
SWDEquipment.com – Online marketplace to Buy, Sell & Trade SWD related parts & equipment
Owners, Operators, Buyers, Sellers, Vendors, Service Providers
Scheduled to begin development on /1/19 for
SWDFund.com – Investment platform for institutional Investors (Income Fund/REIT)
Investors, Sellers, Buyers Scheduled to begin development on 6/1/19 for 7/1/19 target launch date
SWDJobs.com – SWD service provider network & employment portal
Owners, Operators, Buyers, Service Providers
Scheduled to begin development on 5/1/19 for 8/1/19 target launch date
15
The Future BuySWD.com “Family of Companies”
- BuySWD Future Development Plan -
15- Expansion Capital Allocation Table -
Use of ProceedsPersonnel $800,000 34.78%
Product Development $400,000 17.39%
Advertising/Marketing $200,000 8.70%
Office Space $80,000 3.48%
Equipment/Furnishings $120,000 5.22%
Contingency $180,000 7.83%
Technology Subscriptions $37,000 1.61%
Travel/Meals/Lodging $43,000 1.87%
Consulting $140,000 6.09%
Offering & Placement Cost $300,000 13.04%
TOTAL $2,300,000 100.00%
15- Personnel Plan -
Kurt Knewitz (Founder)
Marketing
Accounting
Administrative
Sales
Information Technology
Janitor & Bottle Washer
Startup Phase (‘15-’18) Growth Phase (‘19-’21)
Kurt Knewitz (Founder/CEO)
Jason Grounds (Managing Partner & VP
of Sales/Sales #2)
John Kelly (Managing Director –
SWDInvest.com)
Sales #3Marketing Manager
Sales #4
Sales #5 (opt)
SWDEquipment.com Manager
SWDJobs.com Manager
MidstreamMarket.com Manager
Office Manager
15- Potential Exit Snapshot -
Potential Exit Snapshot (3-Year)BuySWD.com & SWDInvest.com Revenue $10,300,000
Other BuySWD.com FOC LLC Business Units Not included
Total 3-Year Investor Cash Flow (25% Gross) $2,600,000
Sale of BuySWD.com & SWDInvest.com $15,200,000
Sale Proceeds To Investor (25%) $3,800,000
Total 3-Year Return On Investment (ROI) $6,400,000
Total 3-Year ROI (%) 270%
Average Annualized ROI (%) 90%
Investor 1-Unit EconomicsTotal Capital Contributions $2,300,000
Total # of Units Available 100
Total BuySWD.com FOC LLC Equity Available 100%
Investment Amount Per 1-Unit $23,000
Equity Per 1-Unit Investment 1.0%
Total Est. 3-Year Income Per 1-Unit $26,000
Total Est. Investor Proceeds on Exit $38,000
Total Est. 3-Year Return Per 1-Unit $64,000
Total Est. 3-Year Investor ROI Per 1-Unit 270%
NOTE: BuySWD.com FOC LLC investors will receive 25% equity in BuySWD.com and all “Family of Companies” to be developed. Investors will also receive 25% of gross revenue generated by all business units until 100% of capital contributed is returned and
then distributions will be calculated on a net income basis versus gross revenue.
16- BuySWD Family of Companies To Be Developed -
Contact Info:
John KellyP: (214) 460-6814
Disclaimer: Certain information set forth in this presentation contains “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-lookingstatements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from,the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v)sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier andother material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so thatthey may use such beliefs and opinions as one factor in evaluating an investment. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known andunknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securitieslaws. The reader is cautioned not to place undue reliance on forward-looking statements.