CONFIDENTIAL
GDK Electronics brand of products
p.o.box 5552
Sherman Oaks,California,91413
1-877-619-2277
FAX 1-877-285-3445
Email gdkss@hotmail.com
Home Page
http://boughtupcom.freeservers.com
B.Plan (Readme)
Business Plan TABLE OF CONTENTS Version 5.11.1998.0
EXECUTIVE SUMMARY
The Company
Financial Goals
THE MANAGEMENT
GDK HISTORY
[PRODUCT, SERVICE] DESCRIPTION
OBJECTIVES
Long Term
Short Term
COMPETITORS
OUR COMPETITIVE ADVANTAGES
PRICING
SPECIFIC MARKETS TARGETING NEW MARKETS
Growth Strategy
Market size and Share
LOCATION
RESEARCH & DEVELOPMENT
HISTORICAL FINANCIAL DATA
PROFORMA FINANCIAL DATA
Proforma Cash Flow Analysis
Sales Forecasts
Cash flow variables
Income Statement
Risks and variables
Proforma Balance Sheet
Cost control
Ratio Analysis
Financial Standards
Breakeven Point
EFFECTS OF LOAN OR INVESTMENT
Vendor and Supplier
Investor exit plans
ADDITIONAL INFORMATION
Human Resources
Manufacturing
Marketing
Sales
Investments
Training
New Products
Business
Summary
Marketing efforts,Ammendments,
prospectus,enclosures
Patent
Current events,marketing plan,financial plan
EXECUTIVE SUMMARY
I. Type of Business:Security Control,Equipt.& systems
IPO as a product development company
To grant licenses to Consumer and Government entities that want to mass
produce GDK intellectual property.
Electronic sensor integrators.
Connecting custom switches to the application
with the improved logic clock US pat.5360997
II. The Market:
Component suppliers for the major automakers.
Automotive aftermarkets
Trac Auto,Pep Boys,Sears...
Home and business security
III. Business Goal:
To get 30% of the 4 billion integrator
market in the US.
IV. Investment Required:
\\$500,000-$3,500,000 for IPO and Founders expenses
Current Events Updates http://members.tripod.com/geraldk/gdkplan.htm
The Big three automakers are making standards for the production of
automobiles and the patent 5360997,that GDK Electronics has a "march in rights"
to produce,has been introduced to them to begin building to those
electrical standards.ISO 9000 and QS 9000 certification and D.O.T.
mandates will assure the public has options for GDK anti-theft system
installations at the automobile factory/dealer and retail outlets
for multi-purpose use by the consumers of automobiles.The uses include
Security,Energy savings,Circuit integration and sensor to application
connections.The automobile industry is our main focus to attain market
share while there also exists market share in a wide variety of other
industries.GDK Electronics environment protecting manufacturing process
will protect the company from pollution laws.Page 28.5 shows Profitability.
The "March in rights" of the two patents claimed by GDK Electronics
are currently being marketed so are owned out right by GDK Electronics.
The environmental manufacturing process and Federal contractor status keeps the company ahead of the
competition.
The company owns 56 computer software programs published in the USA.
We are still a private company,the Business Plan refers to us as a
product development company and future corporation.
Thank you,
Gerald Krug
Founder GDK Electronics
The following summary information is qualified in its entirety by the
detailed information and financial statements appearing on prospectus
p.24,the Offering Circular. See "Risk Factors" for a discussion of certain
factors that should be considered in connection with an investment in
the Common Stock offered thereby.
The Company
GDK Electronics, Inc. produces and markets in the United
States high quality electronic circuits and computer programs. The
Companys' flagship product, named GDKss614 is the patent 5360997.
This type of circuit has 22 uses and is unique in its single pulse trigger
and reset operation.GDK mass produces with out the conventional toxic
processes and will be ISO 9000 certified.In addition,The ss614 will be AEC tested
for stresses that occure in automobiles. The Company plans to sell
10,000 unit blocks to the U.S.military before selling one to the private sector.
The Companys' 6 years of development has made an organization
presentable to the PNGV(Partnership for a New Generation of Vehicles)
and the D.O.D. list of SBIR research topics.
The Company plans on employing five sales representatives to assist its
distributors and to organize promotional events, festivals and other
marketing activities.The Companys' packaging, promotional materials
and advertising is created by Mezzin/Brown Inc. ("Mezzina/Brown"),
a New York advertising agency,and posted on the internet.
The Company continues to be a leading producer of sensor integrators by investing
substantially in business to business marketing activities. Immediately following the
Stock Offering, the Company plans to hire additional sales representatives, enhance its
promotional activities and commence advertising. The Company also plans to actively
encourage its shareholders to help promote the Companys' products to their friends,
acquaintances and local retail establishments.
The Company produces its circuits with "Just in time" methods whenever
necessary at bonded warehouses according to contract specifications required
by the customer as a private label custom manufacturer.
These arrangements provide the Company a substantial capacity without requiring it to
make significant capital investments in plant or equipment. The Company believes that its
contract arrangements makes it a low cost producer responsive to the vast changes in
technology. As distribution of the Companys' products expands, the Company plans to sell
additional contract arrangements with independently owned distributors globally.
GDK Electronics is considered a Micro-Cap and seeks to be included in such a fund.
The Founder owns ten million shares @\\$2.61 of the common stock of GDK Corporation.
("GDK Capital") the stockholder trading board, an investment bank and brokerage firm
formed at capitalization by the Founder will arrange the public offering of securities through
the Internets' World Wide Web. GDK Capital also intends to develop and operate on the World
Wide Web a digital stock market through which investors will be able to
buy and sell certain securities without having to use traditional
brokers or be subject to the spreads of market makers. The Company
acquired its shares in GDK Capital in exchange for granting certain
licenses to GDK Capital. Subsequent to the Company's acquisition of such
shares, GDK Capital has sold 0 shares for \\$0,underwriting $200,000,000,76,628,352 shares.
The Company currently owns 87 percent of the outstanding equity of GDK Capital 173,900,000
or 66,628,352 shares.
GDK electronics,to be formed as a corporation in [Month, Year] in
[City, California] by Gerald D. Krug in response to the following market conditions:
o Start-up, growth opportunities exist in
sensor circuit up integrators and timing circuit products.
o The need for efficient manufacturing and
public education in these overlooked markets.
o GDK has one customer who is willing to place a large order within the next three months.
o Several other prospective customers have expressed serious interest in doing business within six
months.
I previously owned a company that was active in the auto alarm industry.
Over the past few years I spent much time studying ways to improve performance and increase
profits.
This plan is a result of that study.
The basic components of this plan are:
o Competitive pricing
o Expand the markets
o Increased advertising
o Lower our unit costs
o Manufacture pollution free
o Sign contracts
o Increase creative advertising
o Increase office staff
o Maintain Intranet on Internet
o Establish profitability
To this end, I need investment from private individuals,Franchisers,
and/or companies. A total of \\$507,776 is being raised so yearly interest can finance working capital,
equipment, aquisitions, licenses,and employees. The company will be incorporated and the
Prospectus lists common stock issued to investors to raise an additional amount of \\$200,000,000.
Money is to be used for the National expansion,Founder and Filling orders only.
Financial Goals
Year 1 Year 2 Year 3 30% home sales
Systems 2000 24,000 8,000,000 8,000,000 systems
Sales (000's) 320 3,840 1,300,000 \\$1.3 billion
Net Income(000's) 146 1,746 585,000
Earnings Per Share \\$.0002 $.002 $7.63
\\$5.02 over par,$2.61
76,628,352 Shares
\\$2.61 each
(see page 12)
THE MANAGEMENT
FOUNDER-Since 8-17-93
Gerald D.Krug
Published Author,Announcer,Computer programmer,Inventor
Business owner,Electro/Mechanical engineer.
Mr.Krug began the development of this business in
1994.
___________________
Chief Executive Officer
Robert E.Henderson
Known in Canada for establishing "Business Land"
and has an internet presence with partners.
http://www.osborne-group.com/r_henderson.html
___________________
President
Ben Krug
Currently handling the GDK IPO.
___________________
Chief Information Officer
Darrell Pine 818-784-8211
___________________
www.impactexecutives.com
Unpaid advisors in related fields p.33
At 70 employees create management line:programs,human resources,finances
accounting,controller,V.P. of operations.
Total Executive Compensation;
No monies paid or negotiated for to date.
Independent contractor sales ICS
You'll need to file a form 1099 with the IRS for any
unincorporated ICS whom you pay over \\$600 in any calendar
year. The 1099 is a one-page tax form that documents how much
you paid your ICS. (If your ICS are incorporated or you
pay them less than $600, you don't need to file a 1099.) If
your ICS has a taxpayer ID number, use that, but otherwise
use his or her Social Security number. (You'll find that most
ICS don't have their own taxpayer ID numbers.) You're
legally required to give each ICS a copy of his or her 1099
by January 31 of the year after you made payment and you must
file the 1099s with the IRS by February 28.
If you don't get an ID number from your ICS, you'll have to
do what is called backup withholding. This means you withhold
31 percent of all payments over \\$599 to the ICS, and send
the money directly to the IRS. Backup withholding is a
bookkeeping hassle, however. It's much easier to simply file
a 1099.
Qualify an ICS with a written ICS agreement.
HISTORY-Growth Stages
1.Creativity 2.Direction 3.Delegation 4.Coordination 5.Collaboration
Existence Survival Success Take-off Resource maturity
GDK Electronics was conceived in 1993 and is in first stage financing.
To this point the following has been accomplished:
o A prospective [customer/client] list has been drawn up,and up-dated via
Internet searches file named caretail.htm
o This business plan has been drawn up,and investor
Prospectus,and all art for every detail.
We are now able to adequately address the markets we have targeted. We have
adjusted our staff, redirected our advertising and sales force, and have added the
[Product/Service]s necessary to meet the needs and expectations of customers. CONTINUE
