INVESTOR PROFITABILITY
Investment in Food Security Co-Operative Aquafarms
FST is currently in the processes of being vetted to receive capital through Humanitarian Investment Grants and non-recourse loans. Capital funding is expected in OCTOBER 2017. Six Commercial Aquafarms $30 million is ear marked for the bricks and motar assets of the Company, this being six different types of Commercial Aquafarms, (see Commercial Aquafarm page) to display their performance and production outcomes. Residential Aquafarm Units $5 million is allocated for the development of the residential Urban and Suburban Aquafarm Units to the point of being able to mass produce both units for the world export market. Fish & Shellfish Feed $10 million is allocated for land purchase and establishment of the FST's proprietary fish and shellfish feeds. This will ensure a supply strategy to provide for all the Company's Aquafarm units and facilities in order to brand the ENVIROCULTURE™ food standard. Company Development and Education Program $5 million dollars is required to develop Company infrastructure, marketing, purchase order development, JV partner development Education Curriculum, Training program and secure the FST teams that will build and maintain the Aquafarm systems and develop the ENVIROCULTURE™ crops that provide for the feed blends. After the systems are built, training will commence. Then over a further 18 months, performance and production outcomes will be documented. The balance for the Company's worth is the pending patents, trademarks and formula blends which added together with the packages completed above, bring the Company's value to $100 million dollars. Net Earnings End of Year 4 for $30 million Investment in Commercial Aquafarms
The first of the six Commercial Aquafarms earnings from 1 million lbs of Organic sustainable Tilapia at $2.50/lb is $2.5 million dollars plus 5 million lbs of Organic Vegetables sold at $1.50/lb is $7.5 million dollars. The gross earnings is $10 million less operation expenses of $5 million for a net earnings of $5 million by year four. The second of the six Commercial Aquafarms earnings from 1 million lbs of Salmon at $ 5.00/lb is $5 million dollars plus 5 millions lbs of Vegetables sold at $1.50/lb is $7.5 million dollars. The gross earnings will be $12.5 million less operation expenses of $6 million for a net earnings of $6.5 million. The third of the six Commercial Aquafarms earnings from 1.1 million lbs of Spirulina at $20/lb is $20 million dollars as the gross earnings less $5 million operation expenses for a net earning of $15 million. The fourth of the six Commercial Aquafarms earnings from 1 million lbs of Shrimp at $15/lb is $15 million dollars plus 5 million lbs of Edible seaweed sold at $3.00/lb is $15 million dollars. The gross earnings is $30 million less operation expenses of $7.5 million for a net earnings of $22.5 million. The fifth of the six Commercial Aquafarm earnings from 250,000 lbs of abalone sold at $40/lb is $10 million dollars as the gross earnings less $2.5 million for a net earnings of $7.5 million. The sixth Commercial Aquafarm earnings from 250,000 lbs of rock lobster sold at $15/lb is $3.75 million dollars plus 1.5 million lbs of mussels, oysters sold at $3.00/lb is $4.5 million dollars. The gross earnings is $8.25 million dollars less operation expenses of $3.25 million is a net earnings of $5 million. Summary of Net Earnings in Year 4; Tilapia $5.0 million Salmon $6.5 million Spirulina $15.0 million Shrimp $22.5 million Abalone $7.5 million Rock Lobster $5.0 million Total Net Earnings by end of year 4 is $61.5 million from the $30 million Investment Equity. Summary of Sustained Net Earnings in Year 5, 6, 7, 8, 9 and 10; Tilapia $7.0 million up $2 million for added value with smoked fillets Salmon $8.5 million up $2 million for added value with smoked fillets Spirulina $15.0 million Shrimp $22.5 million Abalone $7.5 million Rock Lobster $5.0 million Total Net Earnings end of year 5, ... is $65.5 million from the $30 million Investment Equity. $5 million Investment for the Urban and Suburban Aquafarm Units
$5 million used to develop the residential Urban and Suburban Aquafarm Units which serve as marketing and education tools to inform the world of the Commercial Aquafarm Units and the ENVIROCULTURE™ food standard. This investment of $5 million is designed to produce a working, education and marketing tool, that can be used in communities around the world. Once initial factory is created to mass produce the units, the factory would fund itself through sales of the two units. This $5 million dollar investment is a valuable asset as this investment at least breaks-even each year for the first 5 years and profits come from added value sales attached to the units such as fish feed and fingerling sales from our hatchery. Profits on the actual residential units will come only when sales volume gets to the point to bring down the production cost of the units. $10 million Investment for Fish & Shellfish Feed and ENVIROCULTURE™ Brand Development
$10 million will be used to purchase land, establish a testing laboratory to develop protein based plant feed for fish and shellfish to produce our own sustainable feed supply. The strategy is to provide for all the Company's Aquafarm units whether company owned or sold to clients. Only using our brand of feed will guarantee the ENVIROCULTURE™ brand standards of production. This investment amount would provide for the heirloom seeds and plants to be grown; which provides a reliable source of seed, plants and cuttings for farmers to grow under contract. This investment amount would develop the proprietary feed blend that ensures the Company's Aquafarm units will have sufficient supplies at all times. The Company will have total control of its feed supply which will only increase profitability and strengthen the Company's ability to grow exponentially; again using this investment as a branding tool that breaks even in the first years and eventually will be a record breaking source of income.
$5 million Investment of the FST Team
$5 million will provide the liquid funds to mobilize the FST team which will be ready to build the Aquafarm systems. The team has been prepared since December 2014, to move at a moments notice. Re-location of the team anywhere in the country is important to FST's strategy where the managers each hire their staff locally. The team has unique skills to provide a great head start to building the Aquafarms within the minimum time possible. The disciplines required are: building contractors, machine operators, civil engineers, electrical engineers, biologists, fish farmers, architects, designers, plant ecologists, chefs, marketing specialists, and accountants. These are the assets which currently exist within the team. $5 million dollars provides an experienced team committed from the beginning. The Investors Return on Equity (ROE) at end of Year 5
The breakeven point is approximately 3 years and 10 months from the $50 million dollar investment date. By the end of year 5, net earnings of $65.5 million dollars divided by the investment of $50 million dollars, times equity share of 45% is a Return on Equity of 65.5/50 x 0.45 = 59% ending year 5, with another twenty years of the same sustained ROE. Company Tangible Asset Value at end of Year 5 FST Values the Company at year 5 by using a multiplier of EBITDA (earnings before interest, taxes, depreciation, and amortization). 5 years of forecasted earnings would be 327.5 million dollars (65.5 million x 5 years ). This is an increase of $215.5 million dollars up from $112 million value today. For example, should the Investor's Value of share holding in the Company is 45% for $50 million dollars, an increase of the total Company value of $327.5 mil x 0.45 = $147.4 million dollars being the Investor's Tangible Asset Value at the end of year 5. These numbers are of course, if no additional Commercial Aquafarms are built Assumptions The calculations above are assumed forecasted tangible asset values based upon the both aquaculture (fish farming) industry construction of new intensive farming and operation expense, and the figures for greenhouse hydroponically grown vegetable which are based upon that industries standards as these are the closest forms of existing operations to the Commercial Aquafarm systems. Comparisons between Typical Aquaculture Fish Farming and FST's Commercial Aquafarms
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Comparisons between Greenhouse Hydroponic Systems and FST's Commercial Aquafarm Systems:
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Typical hydroponic greenhouse with costly retractable roof, frame and high sides plus hydroponic system costs an average of $1 million per acre. As with the FST greenhouse system, this structure allows growing in most temperatures 12 months of the year. This greenhouse structure also allows harvesting and planting to be done inside the greenhouse.
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FST's low tunnel system with vegetable grow tanks on the ground cost $350,000/acre, a saving of hundreds of thousands of dollars to do the same thing as the greenhouse opposite. Triple layered polycarbonate rounded sheets would replace the plastic film in this photo, designed to perform in extreme temperatures. Harvesting and planting is done from each end of the 200ft tunnel providing better use of land area.
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Company Intangible Asset Value to-date
FST's Intangible Assets are valued to-date at $100 million dollars of which is based upon the numerous pending patents of structures and systems already tested that now require only to be built. Trademarks and branding are also included in FST's intangible assets and the feed blends that are founded upon industry changing new type of plant based protein sources, provides all necessary components needed to develop and build this disruptive green technology independently. Within these three intangible assets of patents, branding and new fish feed the FST's team has the experience, strategy and enthusiasm to build this new technology and complete the vision and mission statement that is to increase food accessibility to the starving for their long term future in food security.
The existing World Aquaculture Fish Farming Industry currently valued at $175 billion dollars this year, is growing at 6% per year and is FST's number 1 target market, for income with Joint-Venture partner farmers and growers. Retrofits to existing fish farms is another opportunity and income stream, to apply our green technology in the aquaculture industry. Once recognized FST's revenue could easily include a large percentage of the expected $10 billion dollars expenditure per year on new aquaculture farms around the world.
The other half of FST's application of this disruptive green technology is in Vegetable Production where, a second likely major income stream awaits, in the Global Fruit and Vegetables, Processing industry. Forecasted to grow to $271.3 billion dollars in 2015, the industry revenue is expected to expand at $9 billion dollars each year for the next five years to 2020, reaching $315.2 billion. Recognition of FST's ENVIROCULTURE™ food standard and the cost of production savings, sustainability, near zero carbon footprint and quality of vegetable obvious by the taste and flavor would provide demand for our Aquafarm produces that would allow FSC to secure the lion's share of this $9 billion dollar a year income stream, limited only by our ability or inability to build these commercial aquafarm facilities.
The FST's Commercial Aquafarm Systems has answered the call for a more eco-friendly way of fish farming with ZERO DISCHARGE and substantially reduced to near ZERO CARBON FOOTPRINT in both aquaculture and vegetable production. This potential alone has established FST's INTANGIBLE ASSETS to $100 million dollars upon the possibility of securing large percentages of both aquaculture and vegetable growing industries within the next five years.
The existing World Aquaculture Fish Farming Industry currently valued at $175 billion dollars this year, is growing at 6% per year and is FST's number 1 target market, for income with Joint-Venture partner farmers and growers. Retrofits to existing fish farms is another opportunity and income stream, to apply our green technology in the aquaculture industry. Once recognized FST's revenue could easily include a large percentage of the expected $10 billion dollars expenditure per year on new aquaculture farms around the world.
The other half of FST's application of this disruptive green technology is in Vegetable Production where, a second likely major income stream awaits, in the Global Fruit and Vegetables, Processing industry. Forecasted to grow to $271.3 billion dollars in 2015, the industry revenue is expected to expand at $9 billion dollars each year for the next five years to 2020, reaching $315.2 billion. Recognition of FST's ENVIROCULTURE™ food standard and the cost of production savings, sustainability, near zero carbon footprint and quality of vegetable obvious by the taste and flavor would provide demand for our Aquafarm produces that would allow FSC to secure the lion's share of this $9 billion dollar a year income stream, limited only by our ability or inability to build these commercial aquafarm facilities.
The FST's Commercial Aquafarm Systems has answered the call for a more eco-friendly way of fish farming with ZERO DISCHARGE and substantially reduced to near ZERO CARBON FOOTPRINT in both aquaculture and vegetable production. This potential alone has established FST's INTANGIBLE ASSETS to $100 million dollars upon the possibility of securing large percentages of both aquaculture and vegetable growing industries within the next five years.
Company's Forecasted Intangible Asset Value in 5 Years
FSC founders believe in 5 years time existing fish farmers would be booked for retrofits around the world up to an amount of $2.5 billion dollars for the next 5 years.
FSC founders believe in 5 years time to have secured 50% of the $10 billion dollar annual aquaculture revenue and market share amounting to an income stream of $25 billion over the five 5 years.
FSC founders believe in 5 years time to have secured 50% of the $9 billion dollar annual fruit and vegetable revenue and market share amounting to an income stream of $22.5 billion over 5 years.
The total forecasted Value of the Company's Intangible Assets at the end of year 5 would be 2.5 + 25 + 22.5 = $50 billion dollars.
The Company's Grand Total of Forecasted Asset Value at the end of year 5, where tangible assets are valued at $327.5 million from earlier calculations plus intangible assets valued at $50 billion is a grand total of $50.327 billion dollars.
Partner's Equity share in 5 years time at 45% of 50.327 is $22.647 billion dollars.
FSC founders believe in 5 years time to have secured 50% of the $10 billion dollar annual aquaculture revenue and market share amounting to an income stream of $25 billion over the five 5 years.
FSC founders believe in 5 years time to have secured 50% of the $9 billion dollar annual fruit and vegetable revenue and market share amounting to an income stream of $22.5 billion over 5 years.
The total forecasted Value of the Company's Intangible Assets at the end of year 5 would be 2.5 + 25 + 22.5 = $50 billion dollars.
The Company's Grand Total of Forecasted Asset Value at the end of year 5, where tangible assets are valued at $327.5 million from earlier calculations plus intangible assets valued at $50 billion is a grand total of $50.327 billion dollars.
Partner's Equity share in 5 years time at 45% of 50.327 is $22.647 billion dollars.
