Question: Exhibit 1 SCOR-eSTORE.COM SCOR-eSTORE Timeline Month 12 18 Develop Operate Launch and run business Continue to run business prototype website for six months months 7
Exhibit 1 SCOR-eSTORE.COM SCOR-eSTORE Timeline Month 12 18 Develop Operate Launch and run business Continue to run business prototype website for six months months 7 to 12 pilot Competitive viewer? Expand? Buyout? Winning website? Exhibit 2 SCOR-eSTORE.COM Spreadsheet Model of a Viable Website Business with Formulas Scor-eStore Dot-Com Business Page-views growth 60% annua Page-views sigma 0.55 annual volatility Yearly EBITDA multiple 15.1 All numbers in thousands Initial-Mo. 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Page views 1 10.00 115.50 121.28 127.34 133.71 140.39 147.41 154.78 162.52 170.65 179.18 188.14 Conversion rate 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% Margin per purchase 0.88 $ 0.88 $ 0.88 5 0.88 5 0.88 5 0.88 $ 0.88 $ 0.88 $ 0.88 5 0.88 5 0.88 $ 0.88 Monthly operating cost 5.27 5.27 5.27 5.27 5.27 5.27 5.27 5.27 5.27 5.27 5.27 5.27 EBITDA 8.28 $ 8.96 $ 9.67 $ 10.42 $ 11.20 $ 12.03 $ 12.89 $ 13.80 $ 14.75 $ 15.75 $ 16.80 $ 17.91 Valuation 1,501 $ 1,623 $ 1,752 $ 1,888 $ 2,030 $ 2,179 $ 2,336 $ 2,500 $ 2,673 $ 2,855 $ 3,045 $ 3,245 Exhibit 2 (continued) Crystal Ball Formulas 1 Scor-eStore Dot Com Business 2 Page Views Growth 0.6 annual 3 Page views sigma 0.55 annual volatility 4 Yearly EBITDA multiple 15.1 Initial-Mo. Month 8 6 Page Views =CB.Triangular(90, 1 10, 130) =B6+B6*(Page_Views_Growth*(1/12)+Page_views_sigma*SQRT(1/12)*CB.Normal(0,1)) 7 Conversion Rate =CB.Triangular(0.08,0.14,0.2) =$B$7 8 Margin per purchase 0.88 =B8+CB.Normal(0,0.08) 9 Monthly operating cost =CB.Triangular(4.54,5.27,6) =B9 10 EBITDA =Page_Views*Conversion_Rate*Margin_per_purchase-Monthly_operating_cost =Page_Views*Conversion_Rate*Margin_per_purchase-Monthly_operating_cost 11 Valuation =MAX(0, Yearly_EBITDA_multiple*12*EBITDA) =MAX(0, Yearly_EBITDA_multiple*12*EBITDA) @Risk Formulas Scor-e Store Dot Com Business 2 Page Views Growth 06 annual 3 Page views sigma 0.55 annual volatility 4 Yearly EBITDA multiple 15.1 5 Initial Month 2 6 Page Views =Risk Triang(90, 110, 130) =B6+86*(Page_Views_Growth*(1/12)+Page_views_sigma*SQRT(1/12)*RiskNormal(0,1)) 7 Conversion Rate =Risk Triang(0.08,0.14,0.2) =$B$7 8 Margin per purchase 0.88 =B8+RiskNormal(0,0.08) 9 Monthly operating cost =Risk Triang(4.54,5.27,6) =B9 10 EBITDA =Page_Views*Conversion_Rate*Margin_per_purchase-Monthly_operating_cost =Page_Views*Conversion_Rate*Margin_per_purchase-Monthly_operating_cost 11 Valuation =Yearly_EBITDA_multiple* 12*EBITDA =Yearly_EBITDA_multiple*12*EBITDA