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CONFIDENTIAL
LASAS Technologies, Inc. (A FLORIDA Disclaimers The forecasts contained herein are provided in connection with the evaluation of the risks and desirability of a potential investment in LASAS Technologies, Inc. ("LASAS" or the "Company"). There can be no assurance that actual results for the company will be equal to or near the results in these projections. This confidential business plan does not constitute an offer to sell, or a solicitation of an offer to purchase, securities. This business plan has been submitted on a confidential basis solely for the benefit of selected, highly qualified investors and is not for use by any other persons. This business plan contains forward looking statements, which may be identified by words such as "may," "intends," "expects," "anticipates," "estimates," and similar expressions. The forward looking statements, estimates and/or projections contained herein, or otherwise provided to the recipient, involve significant elements of subjective judgment and analysis. No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information herein, and nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or the future. This document does not purport to contain all of the information that may be required to evaluate the company and any recipient hereof should conduct an independent analysis. Certain information in the business plan has been obtained from outside sources which are believed to be accurate, but the accuracy of which cannot be assured. A financial forecast based on assumptions of the company's management is included in this business plan. Because the financial forecast is based on estimates of future events, the company cannot express any opinion on the accuracy of the financial forecast. There can be no assurance that the amounts shown and, particularly, that any of the varying levels of revenues and expenditures will be achieved. The revenue assumptions are totally dependent on the extent of future demand and reimbursements for the company's products and services, which are extremely difficult to predict. Any predictions and representations, written or oral, about such financial forecast or the company that do not conform to those contained in this business plan shall not be permitted and may not be relied upon. CONTACTS All communications, inquiries, and requests for information relating to this Confidential Business Plan or to a possible transaction involving the Company should be addressed to the following. LASAS Technologies, Inc. 2300 Maitland Center Pkwy Maitland, FL 32810 Phone: 407-838-1003 Fax: 407-838-1008 CORPORATION)
Barry Miller barrym@lasas.com Phone: 561-351-3651
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EXECUTIVE Company Overview
SUMMARY
LASAS Technologies, Inc. (LASAS) is a software solutions company with domain expertise in consumer finance and the recreational vehicle product markets. The company launched its software platform and began processing transactions in April of 2001 and is currently working with market participants to grow transaction volume and revenues. LASA$' software applications focus on the in-direct and direct consumer finance markets. The software applications are originally being offered to business participants in the recreational vehicle product markets. LASAS has a multi-channel strategy of offering the software to third parties and through the Company's marketplace, located at RpmOne.com. LASAS' software applications serve dealers (retailers), lenders (finance companies), manufacturers, and other business participants. The founders incorporated LASAS in 1998 and began conducting market research and developing relationships within the industry. In March of 2000 the Company raised its seed capital and began full time development on the Company's products and services. Focus LASAS' current efforts are focused on increasing transaction volume through the software solution called the F&I Center powered by the CreditMatch TM system. The F&I Center provides a platform to automate the finance/underwriting process among dealers (retailers) and lenders/ insurers, while improving the relationships and communication between these parties. LASAS will increase transaction volume and revenues through three channels: 1) the LASAS owned RpmOne.com on-line marketplace; 2) licensing the application to other marketplace developers as an ASP solution for integration into their websites; 3) developing alliances with providers of industry specific retail and dealership management systems to integrate the application into their products. LASAS' software solution offers several value added features around the core processing technology, as is shown below.
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Future Opportunities While LASAS is currently leveraging its knowledge and relationships to provide the software solution to the recreational vehicle markets, in the future LASAS' finance solution can be offered to other marketplaces where financing is a significant step in the buying process. Product markets that present future opportunities include lawn equipment, pianos, medical equipment, jewelry, and many others. Current Target Market
The market for recreational products such as RVs, Power Sports and Marine, as well as parts and services associated with these products is estimated to comprise 145 billion dollars in annual sales. The following products make up each primary product market segment: • • • RV's: Power Sports: Marine: motor coaches, travel trailers, fifth wheels, and truck camper tops motorcycles, ATVs, snowmobiles, personal watercraft and jet boats power boats, sail boats and yachts
The primary users of LASAS' software applications are Dealers (retailers), Lenders/Finance Companies, Insurance Companies, Manufacturers, and Wholesalers/Distributors.
Products & Services
LASAS' software application provides the platform to enable faster, more efficient financing of products, as well as reporting, communication, and CRM (Customer Relationship Management) tools for business participants.
Product
F&I Center
Features
Processes customer financing • Electronic Applications • Automated Decisioning • Reporting • Communication • Incentive Programs Processes insurance products • Applications • Quotes • Binding Coverage
Benefits
Dealers c_it I c--FUdff app-fiiE'_i_-fi get _ immediate responses frommultiple finance companies. Lenders benefit by reducing the number of applications that are manually processed. Lenders can communicate with dealers through customized alerts and introduce incentives. Insurance products can be automatically quoted or applications can be automatically routed to providers using data from credit applications. Dealers get quick quotes and binding capability.
F&I Center The F&I Center creates an electronic marketplace where lenders and dealers can consummate consumer finance transactions. LASAS' CreditMatch application utilizes proprietary technology to provide a decision engine that streamlines the financing process, allowing faster approvals and more efficient communication between borrowers and lenders. Lenders and dealers can also use the Finance Center's management reporting tools to analyze the latest financing trends and historical reports down to the transaction level. Why is the LASAS solution needed? The current process of sending applications and receiving lender decisions is time consuming and costly for both dealers and lenders. The current, paper based loan approval process is slow and expensive for both lenders and dealers Dealers often lack sufficient funding sources and the dealers business is negatively effected by lenders exiting the market Attracting qualified applicants is time intensive and expensive for lenders Confidential 4
Changes to lending programs are not communicated effectively resulting in lost sales for lenders and dealers Communication barriers make it difficult for lenders to change their lending criteria
Credit
Match
The LASAS CreditMatch system utilizes proprietary technology to match applicants with a lender's financial products. Matches are made using each lender's criteria, which can range from a simple Beacon score to many lending variables, making it possible for: Lenders Dealers to reduce to reduce processing paperwork an overview costs and reach new markets and customers satisfaction
and increase of the transaction
sales
and customer
The diagram below provides
process
within the Finance Center.
Dealer Lender Funds
:
__
e
Lending Criteria Manufacturer Incentives Ma Documents Dealer Sends
0
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Recent Product Development Business Development _ _
Milestones
Financing
_
Completed first release of software application in April ZOgl Wffff an-I-g-fi-nTd p product enhancements to be developed over the following 120 days. Currently working with businesses that will participate in the pilot program for the RpmOne.com marketplace. These companies include American Investment Financial, Bank of America, Deutsche Financial Services, Firstar, Marine One, Thor Credit, American Motorcycle Leasing and approximately 120 dealers. LASAS has concluded an agreement to integrate its software into Land N Sea's marketplace and is currently working with Motorcycle World on a similar agreement. Land N Sea is the largest wholesale distributor in the Marine market and is partial owned by Brunswick. Motorcycle World is a wholly owned subsidiary of Bell & Howell. LASAS is working with many other market participants such as Harley Davidson, other lenders, and ancillary product companies. LASAS has raised a total of $598,000 in equity financing and is currently working with business participants and angel investors to raise additional funds.
Financial
Projections charged for transactions conducted
LASAS will generate revenue from fees and commissions using LASAS software solutions.
Revenue
Sources
Credit Match Fees Advertising, Exchange, & Other Fees
98% 2%
Lenders, dealers and other participants will pay royalties to LASAS based on loans funded using the CreditMatch system LASAS will earn fees for products traded on the product exchange and catalogues
Financing
Sought
Total through all rounds of funding: $2.0 million from market participants, private investors and venture capital. LASAS will use the capital investment to complete its staffing plan, continue product development, execute the sales and marketing plans, and support operations.
Use of Funds
Staffing Systems Office Development & Equipment $600,000 500,000 250,000 150,000 500,000 $2,000,000
Legal & Prof. Services Sales & Marketing
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LASAS
Team
The Company has employed talented individuals to fill several key positions. The current employees provide a diversified background with experience from the recreational vehicle industry, the auto industry, finance, technology development, e-commerce, and marketing. The current headcount for the Company is 11. Five of the employees are responsible for software development and the other six are responsible for product development, business development, marketing, and all operational tasks.
Management
Team
Barry Miller Chairman, CEO, and Co-Founder Prior to founding LASAS, Barry served as Vice President of Administration & Development for Oxbow Technologies, LLC (OTL), a company owned by Bill Koch. Barry was responsible for establishing strategic relationships, establishing company operations, and the design, development, and implementation of OTL's products and services. Barry graduated from the University of Central Florida as the standard bearer of his class. Sean Hayes President, CO0, and Co-Founder Sean most recently worked with BMW on the design and implementation of the first online credit application system, allowing dealers to apply for credit online and receive instant decision approvals within minutes. Sean was also involved in the implementation of the "Pre-owned" lease system, which resulted in a 77% rise in dealer usage of the target product. Sean graduated from the University of Central Florida with a degree in liberal arts. David Gunn Vice President, Marketing David most recently worked as an Associate Brand Manger with Florida Power and Light where he led FPL's B2B e-business initiatives, including content management for the FPL web site, fpl.com. David also led a project to implement on-line account sign-up and maintenance via fpl.com. Prior to FPL, David worked for Price Waterhouse and earned his MBA from Cornell University. John P. Maglio Vice President, Technology Prior to joining LASAS, Mr. Maglio worked for Florida Power & Light as a Technical Architect, and for the Walt Disney Company as a Systems Administrator. Mr. Maglio's expertise is focused in the area of object-oriented analysis and design, project management, and component-based development. John graduated from the University of Central Florida with a double major in business and MIS. Dan Williams Legal Counsel Dan Williams is responsible for all legal matters for the Company. Prior to joining LASAS Dan Williams worked for Bobo, Spicer, Ciotoli, Fulford, DeBevoise, and Romaguera, P.A. in North Palm Beach, Florida as an associate attorney. Dan specialized in civil litigation in the areas of insurance defense and other corporate matters. Prior to completing his JD, Dan worked for the legal department of Bertelsmann, Inc. Dan has received a Masters degree from Indian University of Pennsylvania and his JD from Widener University School of Law.
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Advisory
Board
LASAS has chosen to elect an Advisory Board to increase the probability of success in the marketplace. The Company has selected senior executives with relevant industry, technology, and finance backgrounds. The Advisory Board members will be entitled to receive scheduled presentations on the products and services the Company plans to offer in the marketplace. In addition, officers of LASAS will regularly contact members of the Advisory Board to discuss pertinent company strategies. David McCammon and Mark McCammon Mr. David McCammon and Mr. Mark McCammon are managing directors of a recently founded LBO firm, Strength Capital. Mr. David McCammon previously served as the Vice President of Finance for Ford Motor Company. Mr. Mark McCammon was previously employed by T.Rowe Price and recently earned his MBA from Harvard Business School. John Mantione Mr. Mantione is Vice President & General Manager, Fields Motorcars of Florida, Inc. John is responsible for managing three facilities, generating over $90,000,000 in annual sales. Mr. Mantione has been elected to many industry committees and boards including the following: 2000 National Technology Committee - Reviewing trends in information systems and selecting technologies for the future; National Advisory Board for ADP relations - Representing 150 dealer customers of ADP to improve relations. Peter Jones Peter is the Principal behind IBSG, a consulting company that provides F&I consulting to dealers in the recreational vehicle product markets. IBSG is also a reseller of various insurance based products and services. Prior to founding IBSG, Peter was the Director of National Sales for the Consumer Finance Division at Bombardier Capital. Peter managed the North American sales force in the RV, Marine and Recreational product industries. Peter's prior position was the Leasing Product Manager for the Auto Finance Division for First Union National Bank. Peter also worked as an F&I sales consultant for GMAC.
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