Company Summary
Puddle Jumpers Airlines is being formed in July 1996 as a South State Corporation. Its offices will be in Atlanta, Georgia. The founder of Puddle Jumpers is Kenneth D. Smith. Mr. Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the members of Puddle Jumpers's management team follow.
Company Ownership
Puddle Jumpers Airlines, Inc. will authorize 20,000,000 shares of common stock. One million shares are to be set aside as founder's stock to be divided among key management personnel. It is also expected that management stock options will be made available to key management personnel after operations commence. It is expected that founders stock plus option stock will not total more than 15% of authorized shares.
Initial "seed" capital is to be attracted via a convertible debenture sold by Private Placement. This round of funding will have premium conversion privileges vs. later rounds and "bridge" capital. The company has plans to proceed to a public offering prior to initiating revenue service. The expected proceeds from Private Placement are expected to be $300,000 at "seed" stage, $3.5 million in "bridge" funding, and $10 million in IPO proceeds (projected at $6 per share). Management cannot assure that an IPO will be available at the time desired and at the price sought.
A sample of the offering proposed for "seed" investment is included with this plan.
Start-Up Summary
In the second year of operations, Puddle Jumpers will expand revenue by adding flights to the most demanded and popular routes in current operation. This will serve to make our schedule the most convenient to these destinations, improving further our competitive advantage. The routes expected to be expanded first include Chicago, New York, and Atlanta. Second level expansions would include Philadelphia, Dallas, Washington D.C., Orlando, and Detroit.
| Start-Up Expenses | |
| Legal | $40,000 |
| Stationery, etc. | $3,000 |
| Business Plans | $3,000 |
| Placement Memorandums | $3,000 |
| Investment Banking Retainer | $25,000 |
| Underwriting Consultant | $30,000 |
| Offering Publicity | $60,000 |
| Rent | $6,000 |
| Government Compliance | $20,000 |
| CEO Salary (6 mos.) | $48,000 |
| Company Identity and Marketing | $40,000 |
| Operating Expenses (1 year) | $40,000 |
| Expensed equipment | $6,000 |
| Other | $0 |
| Total Start-up Expense | $324,000 |
| START-UP ASSETS NEEDED | |
| Cash Requirements | $0 |
| Other Short-Term Assets | $0 |
| Total Short-Term Assets | $0 |
| Long-Term Assets | $0 |
| Total Assets | $0 |
| Total Start-Up Requirements | $324,000 |
| Left to Finance | $0 |
| START-UP FUNDING PLAN | |
| Investment | |
| Investor 1 | $250,000 |
| Investor 2 | $100,000 |
| Other | $0 |
| Total Investment | $350,000 |
| SHORT-TERM LIABILITIES | |
| Unpaid Expenses | $0 |
| Short-Term Loans | $0 |
| Interest-Free Short-Term Loans | $0 |
| Subtotal Short-Term Liabilities | $0 |
| Long-Term Liabilities | $0 |
| Total Liabilities | $0 |
| Loss at Start-Up | ($350,000) |
| Total Capital | $0 |
| Total Capital and Liabilities | $0 |
| Checkline | $0 |
Company Locations and Facilities
Management plans to lease a small office in suburban Atlanta immediately upon closing "seed" funding.
Strategy and Implementation Summary
