Business Plan

[10 December 2018]

Company name: KYAMOS LIMITEDStreet address: 37 Polyneikis Street, Strovolos City, state, ZIP: Nicosia, 2047, Cyprus Business phone: +357 99334791, +357 22108532Website URL: http://www.kyamosmultiphysics.com, http://eepurl.com/dvJ8-T Email address: kyamosmultiphysics@gmail.com

Confidentiality Agreement

The undersigned reader acknowledges that any information provided by KYAMOS in this business plan, other than information that is in the public domain, is confidential in nature, and that any disclosure or use of same by the reader may cause serious harm or damage to KYAMOS. Therefore, the undersigned agrees not to disclose it without express written permission from KYAMOS.

-Upon request, the undersigned reader will immediately return this document to KYAMOS.

___________________Signature

___________________Name (typed or printed)

___________________Date:

This is a business plan. It does not imply an offering of securities.

2

Table of Contents

Confidentiality Agreement................................................................................2I. Instructions: Executive Summary....................................................................4II. Instructions: Company Description................................................................5III. Instructions: Products & Services...............................................................10IV. Instructions: Marketing Plan......................................................................11

SWOT Analysis Worksheet................................................................................................11Competitive Analysis Worksheet.......................................................................................14

V. Instructions: Operational Plan.....................................................................18VI. Instructions: Management & Organization..................................................20

Organization Chart............................................................................................................24VII. Instructions: Financial Plan.......................................................................25VIII. Instructions: Appendices..........................................................................26APPENDIX A: PESTEL ANALYSIS.......................................................................26APPENDIX B: STAKEHOLDER ANALYSIS.............................................................27APPENDIX C: GAP ANALYSIS............................................................................29APPENDIX D: BUSINESS MODEL CANVAS..........................................................30APPENDIX E: KYAMOS STRATEGIC PLAN...........................................................31APPENDIX F: KYAMOS STRATEGY CANVAS........................................................32APPENDIX G: KYAMOS ROADMAP MVP.............................................................33APPENDIX H: KYAMOS POSITIONING................................................................34APPENDIX I: KYAMOS FINANCIAL PROJECTIONS 2018........................................35APPENDIX J: KYAMOS FINANCIAL PROJECTIONS 2019........................................36APPENDIX K: KYAMOS FINANCIAL PROJECTIONS 2020.......................................37APPENDIX L: KYAMOS FINANCIAL PROJECTIONS 2021........................................38APPENDIX M: KYAMOS FINANCIAL PROJECTIONS 2022.......................................39APPENDIX N: KYAMOS PROMOTIONAL FLYER....................................................40APPENDIX O: KYAMOS LANDING PAGE..............................................................41APPENDIX P: KYAMOS QUESTIONNAIRE............................................................42APPENDIX Q: KYAMOS AUDIO ADVERTISEMENT................................................44REFERENCES..................................................................................................45

3

I. Instructions: Executive Summary

KYAMOS develops software for scientists and engineers used as a tool to design and optimize engineering systems. KYAMOS software will be a cross-platform supported software written in software language C++. It will be enhanced with state of the art in-house scientific algorithms, wrapped up in a well-friendly and simple to use Graphical User Interface (GUI), that supports ready-made modules for engineers and non-engineers. KYAMOS provides three unique selling points: (a) real-time, live-insight into multiphysics engineering simulations, (b) ready-made customized modules for non-engineers, and (c) cloud-based solutions. KYAMOS is expected to grow into an engineering software company within five years into the Computer Aided Engineering (CAE) sector. Our target market is Research Institutes, Universities, Research Organizations, Consulting Engineering companies and small, medium and large engineering enterprises. We are targeting advanced technological countries starting from the Middle East (Israel and Arab countries), moving further to Europe and finally to the US, which is the largest market of CAE customers. Our ideal customers are mainly the companies which have large budgets to buy the software without discounts. The CAE market is currently 6.5 Billion US Dollars, increases at an Annual Growth Rate of 8-10% and is estimated to reach 12.5 Billion by 2025. Our main competition are well established companies such as ANSYS, COMSOL, MSC, SIEMENS PLM, OPENFOAM and SIMSCALE, that offer both free and proprietary software licenses. KYAMOS strategy is to utilize well established existing cross-platform packages (Geometrical, Mesh and Graphical) from the CAE industry which can be used for proprietary software combine with the state of the art in-house software to develop a state of the art software at low cost. The value of the MVP will boost enormously the worth value of the company since it will be comparable or outperform the existing competitors’ software that worth billions of dollars. One unique selling proposition is our flexibility in licensing options, the low pricing due to utilization of free standard modules from the industry, the speed and accuracy of the simulations by using the best scientific techniques in the market (Finite Element and Finite Volume), the ability to solve larger problems, faster. We are currently not seeking for investors, at least up until when the MVP is released in September 2019. We believe that the 12,000 € cash offered by IDEACY are enough to get KYAMOS getting started having revenues. Due to the low fixed and operational costs because of the nature of our product, we estimate the breakeven point within the second month from the release of the MVP. This 12,000 € seed funding, will go mainly to company registration expenses, audit expenses and the rest to marketing the product by travelling to well targeted events such as conferences, workshops and exhibitions to present KYAMOS product around Israel and Middle-East. We will reconsider seeking for investors at the time when the MVP is out and we have a record of sales. We then believe that KYAMOS will be able to attract the best value for money for its shareholders.

KYAMOS consists of a team of highly qualified academics and entrepreneurs. The CEO of KYAMOS is Dr. Antonis Papadakis. Dr. Papadakis graduated with a 4-year PhD scholarship from Cambridge University and currently he is a Professor of Engineering. He holds the position of Chairman of the Department of Electrical Engineering at Frederick University and the Coordinator of the MSc of Oil & Gas and Offshore Engineering. He has served from high profile positions within and outside the University. Dr. Papadakis is the developer of the KYAMOS software including the GUI and the algorithms. In the company, he has advisors with management, human resource and financial background. Specifically, Dr. George Stavrides is an experienced entrepreneur/manager/marketing expert for one of the largest agriculture companies in the world (Syngenta) and he is responsible for the business

4

aspects of the company. Mr. Michalis Papadopoulos is a certified chartered accountant with more than 20 years in auditing and acts as an advisor to the financial aspects of KYAMOS. Mr. Lakis Papadakis is a retired school Headmaster with specialization in graphic and interior design and will be aiding with the visuals aspects of the software and of the company. Dr. Katerina Papadaki is a Professor of Mathematics at LSE, UK and she is consulting the company in algorithm development and operations research. Mr. Andreas Papadopoulos has a business background with more than 30 years’ experience in human resource and public relations and he is the public relations/human resource advisor of the company. Dr. Stamatis Rossides is a Professor of Mechanical Engineer. He held the position of Head of Thermal Analysis in British Aerospace for 25 years. He specializes in multiphysics modelling and he is advising the company in the engineering aspects of the software.

II. Instructions: Company Description1. Company mission statement

KYAMOS mission is to develop software for scientists and engineers to design and optimize engineering systems.

2. Company philosophy and vision

KYAMOS philosophy is based on excellence, integrity, effectiveness, efficiency and user-friendliness, but most importantly on the ease and simplicity of use. KYAMOS vision is to establish itself as a dynamic, vibrant, innovative software company offering engineering-based solution and services at international level, acting as Software as a Service (SaaS) company. In the long future, we would like KYAMOS company to expand and establish itself as a software company offering solutions in other disciplines outside of engineering, such as those of game development and educational software.

3. Company goals

The short term goals of KYAMOS are the following: (a) Business plan creation, (b) Secure funding for the 2nd round of IDEACY, (c) Register KYAMOS company to the Cyprus Registrar of Companies, (d) KYAMOS Website Development, (e) Software development (Geometry editor-OpenCascade, Mesh Editor-NETGEN, Displaying Editor-PlPlot), (f) Licensing information incorporation, (g) Cross-platform compilation, (h) Benchmark testing, (i) Drag and drop capability, (j) Remote desktop capability for live customer support, (k) Cloud based capability, (l) Licensing system implementation – Crypto++B, (m) Customized variable definitions through scripting language, (n) Boundary and initial conditions, (o) Algorithm solver incorporation, (p) Benchmark readymade modules, (q) MPI/GPU algorithms, (r) Promotional video, and (s) Youtube Channel, Facebook, Twitter.

The medium-term goals start with the release of the MVP in September 2019. Our medium-term goal is to start selling licenses and slowly establishing KYAMOS as a software alternative to existing well-established software. It is also important to complete the first phase of the project, which is to raise 40,000 € from revenues. This will provide us with enough cash in order to hire a marketing/customer-support/IT employee. The aforementioned employee is expected to alleviate great weight from the CEO and Founder, to take on the next expansion phase both of the software and of the company.

5

Finally, our long-term goal is to provide real live insight into multiphysics simulations, where the simulation results interact live with configuration changes by the customer at near real time. Furthermore, by providing ready-made modules, we aim at targeting non-engineers in the engineering and science sector to use the software. Finally, to build or have available enough computing resources to provide customers with the option of using our cloud-based server solutions either free of charge or through a fee.

4. Target market

KYAMOS target audience is: a) Institutional customers – Universities, Research Institutes, Research Organizations,

Small, medium and large engineering enterprises, Small, medium and large engineering consulting companies(i) existing users of alternative products or (ii) potentially new users.

b) Individuals customers – Scientists and engineers at BSc, MSc and PhD level

5. Industry

KYAMOS industry falls within the Computer-Aided Engineering (CAE) and simulation industry i.e. in the engineering simulation software. CAE is a mature and well-established industry, however there are opportunities to attract new customers by offering ready made solutions in alternative outside R&D departments of companies.

According to (Wasserman, 2018) in 2018, it is expected that a steady growth of 8.5% will occur based on research conducted by Cambashi CAE Observatory. Areas such as Design Space Exploration is expected to grow by 10% according to Ora Research and intrinSIM. ANSYS executives believe that the simulation utilization is expected to double in 2018, covering also product design into manufacturing and operations. An important challenge will be to combine machine learning into CAE software. Emphasis is given to convince new users to use these software faster. Autodesk believes that simulation technologies will become a part of mainstream engineering, especially in the design process, pushing new users to CAE in 2018, hence making CAE more pervasive. A trend towards near instant simulation results with ANSYS Discovery Live shows the need for interactive live engineering simulations. CAE vendors are concentrating to make software as pervasive as possible and simplified. According to Svante Littmarck, president and CEO of COMSOL, Inc., and Sumanth Kumar, vice president at Dassault Systèmes in 2018, the democratization of simulation will move to the next level where CAE software will be used by people outside the R&D departments, targeting new industries with GUI. This shows the essential of user-friendliness and simplicity of the software. David Heiny, CEO of SimScale said that the architecture, engineering and construction (AEC) industry has shown interest for SimScale, hence suggesting that readymade solution platforms in this area is their way forward to attract new customers.

MSC software are targeting new levels of ease of use and productivity to the simulation process. According to Brian Shepherd, CTO of MSC Software, “Customers in the aerospace, automotive, machinery and heavy equipment industries will especially appreciate the additional process integration capabilities and extended support for interoperability for scenarios where MSC’s core products of MSC Nastran and Patran are

6

established.” It is obvious that the industry moves towards ready-made modules that will convince more customers to use their products, a model that COMSOL Multiphysics has used very successfully to attract new customers.

According to a report by Grand View Research, Inc (Research, 2017), the global CAE market is anticipated to reach $12.8 billion by 2025, mainly due to the rapid growth of the wearable industry in the electronics industry.

The KYAMOS software will be a proprietary software license which means that the software published, in this case KYAMOS, grants the usage of one or more copies of the software under the end-user license agreement (EULA), however the ownership remains with the publisher of the software. Hence, certain rights of the software remain with the publisher, hence in the EULA terms will be included that define the use of the software, such as terms of distributions and number of installations allowed. Since ownership remains with the publisher, the user must opt and accept the software license.

According to Autodesk (Morrical, 2014), there are five options when dealing with licensing software.

a) Standalone license It can be installed on one computer or assigned to a physical person. The vendors occasionally will allow a second installation in another computer; however, the basis is that each person/computer needs an individual license. The positive outcome of this licensing is that it is readily available to the person, however it is not accessible to others unless that computer is borrowed.

There are three types of sublicenses, the annual, the perpetual and the consumption licenses (Leh, 2014).

(i) Annual license is also known as the subscription or Software as a Service (SaaS) license. The annual licenses usually include technical support, maintenance and hosting. They are available in cloud or hosted environments. Typical lifetime contracts span a period of 4-5 years. The advantage is that licensing payments are spread over a certain period of 5 years, hence low upfront costs, you have the option to opt out so risk is on the vendor rather than the customer. Disadvantage of such licenses for the customer is that he/she is leasing the software without gaining ownership in the long run. Payment fees are expected to come out from the organizations operational budget rather than the capital budget.

(ii) Perpetual license is considered the opposite of annual license. A payment for the software is made up-front as one time-purchase and the customer owns the software in perpetuity. This licensing model has the risk of loosing contact with the customer. The customer needs to decide upfront the number of licenses. Payment fees are expected to come out from the organizations capital budget rather than the operational budget. In this type of license, the risk is mostly carried by the customer rather than from the vendor and it is the responsibility of the customer, to implement all upgrades, updates and maintaining the software and hosting environment.

(iii) Consumption license is considered the pay as you go license. It is a shared risk, shared reward license between the vendor and the customer. Payments are paid after the software is used. This is the licensing model preferred by young vendors and avoided by mature vendors. This is ideal for startup extended enterprise efforts

7

since buyers have little commitment and can opt out anytime. No license is owned by the buyer and vendors are usually flexible to tie the license to the needs of the companies. Payments can be monthly, quarterly or annually. The advantage of the consumption license is that responsibility of maintenance and hosting remains on the vendor and the customer has low upfront costs, hence it is convinced easier to use the product. It is expected that in the long run, it will be more expensive than rather buying the software using an annual or perpetual license.

b) Networked licensing It is a shared licensing model since multiple people need access to the software. There is a cap on the maximum number of people that can use the software simultaneously. Option is also given to customers to add extra people to the license since it is fairly easy to be implemented. However, the downside of this is that the customers will need IT experience to maintain the license, hence KYAMOS does not believe this is a good licensing model. c) Site licensing In site licensing, you pay a single flat fee for everyone in the premises or office to use. These licenses are very cost effective for large enterprises, however If you are a small medium company, you may end up paying licensing fees for access not necessary. From the point of the vendor, a track of the static IP of the customer is necessary to ensure correct licensing practices are enforced. d) Cloud licensing It is similar to a networked license, however the only difference it that license server instead of being in the office, it exists on the cloud and of course you maintain the license server. Again, a limit on the simultaneous usages of the users is enforced. Network connection is necessary for the software to be operated, and additional license seats can easily be added.

e) Subscription license In this licensing model, software is rented on subscription rather than bought as a perpetual license. This gives the advantage that license is paid gradually on a monthly, quarterly or annual basis, and not paid upfront. This kind of licensing is good for SME’s that do not have cash to pay upfront, that would like to use the software. In this licensing scheme, the option of the software existing on a server with the customer not downloading the software is also another option. These types of software, are good for temporary solutions and short-term projects, where access to the software is needed for a limited amount of time. The negative side of this type of software is to keep track of subscription licenses which needs a lot of overhead from the vendor company.

KYAMOS pricing strategy is to gather as much cash, as early as possible and to have a simplistic license model, hence it has been decided to sell standalone licenses of either annual, perpetual or consumption license depending on the needs of the customer. However, when sales start, we will not exclude the other forms of license, if we feel that most of our potential customers demand some other type of license.

6. Legal structure

KYAMOS has opted to operate as a limited liability company from the outset. Although the sole trader route, is considered by many as safer way of running a business, especially at the start up stage when revenues are generally low and the burden of compliance can prove overwhelming for some, the CEO and Founder has appreciated a

8

number of factors that have led him to take the strategic decision of operating his venture as a limited company, from day 1.

Of course, beginning as a sole trader is without doubt the simplest way to start a business. On the contrary, setting up in business as a limited company involves a more complex formation process, and the financial and administrative responsibilities of running a limited company are certainly greater than those of a sole trader.

For KYAMOS, operating as a company from the outset, promotes the aspirations of the venture and acknowledges the fact that there is absolute commitment to navigate successfully in the business world. Key benefits-applicable to KYAMOS’ individual circumstances- of operating as a company are explained below:

1. Sense of trust and commitment to purposeKYAMOS is privileged to be operating in an industry of where it is vital to gain the trust of the client, and in fact business will be won by forming strategic partnerships with those to be served. To gain the trust of its partners, KYAMOS will need not only to be, but also to be seen and perceived as a serious, professional, committed counterparty with solid foundations and long-term aspirations. It is widely accepted that limited company status is perceived to be the most appropriate structure, which allows transparency and shows a strong sense of legality and respect and acknowledgment of laws and regulations, i.e. elements that KYAMOS will count on in making the way forward in the business world.

2. Limited liability statusThere is an element of reassurance of ‘limited liability’ which is particularly useful for KYAMOS. Being a startup, it is only natural that the business will have to take risks. The founder himself will do the same. Success’s worst enemy is fearing failure. It is vital that decisions are taken without bias nor excessive fears or concerns. One benefit of having a company, is therefore the ‘limited liability’ of the founder- not to be personally liable for any financial losses made by the business. A layer of protection should things go wrong is always useful. However, the point here is not having an ‘’insurance policy’’ in place, but instead to have protection and allow the founder in these early stages to make unbiased business decisions without excessive fears of what might happen at personal level in the event of things turning out not as hoped.

3. Funding considerationsFinding funding can be difficult for all types of businesses in the current climate. But because a limited company is a distinct entity from its owners, it may be easier for a company to secure business finance than it is for their sole trader counterparts. Funding sources include grants, bank financing, as well as new equity capital from an outside investor, and it is widely accepted that businesses prefer to deal with businesses.

TaxThe main advantage from a financial point of view, of running a business as a limited company is that it is likely to pay less personal tax than a sole trader. As a director and shareholder of a limited company, it will be up to the founder to identify a balanced way of drawing money out of the business, for example either a combination, or a choice between a salary and dividends.

Conclusion

9

In conclusion, while a limited company carries financial and administrative burdens such as the obligation for annual audits, tax returns, annual licensing costs and filing requirements, it is considered the most appropriate structure for doing/conducting proper business practices, with transparency, elevating the venture’s image in the eyes of stakeholders. After all, the time when an investor may need to be introduced, or employees to be compensated with indirect means may not be far away. A limited company makes things easier, either by direct granting of shares or, for example the ability to have stock option plans in place. While it may be early on in the process, it is always good to look ahead, and even theoretical possibilities we can think of now, weigh to the direction of incorporating KYAMOS from right from the outset.

10

III. Instructions: Products & Services1. Your company’s products and/or services:

We provide software and online services in the Computer Aided Engineering (CAE) sector. The software is developed in-house in KYAMOS and does not use any external contractors. Essential partners will be marketing agencies which specialize in targeted campaigns in the target countries. There will also be a need for marketing/sales personnel within the company to follow the targeted campaigns. The marketing/sales personnel will be visiting the potential customers and addressing their specific needs, at least to convince them to become customers.

2. The problem the product or service solves:

There is a lack for better insight in the design of engineering systems. Imagine a scientist or engineer that designs engineering systems and needs to optimize its product. He will spend long hours waiting for the simulation results, to form a better design, which is counter-productive and time-consuming. KYAMOS offers a solution by providing real-time, live simulations which allows the scientist and engineer to instantly decide on the optimized design of their product. Additionally, we are targeting people who are not engineers by providing ready-made custom modules.

Finally, we provide friendly GUI & ease of use for non-engineers, accuracy, cost-effectiveness and most importantly, cloud computing services.

3. Any proprietary features that give you a competitive advantage:

We do not have any proprietary features regarding the KYAMOS software that gives as a competitive advantage.

4. How we will price our product or service:

We will offer various types of licenses depending on the type of customers. The licenses will cost 10,000 €, however the duration of the license will vary accordingly during an adjustment period of 4 years since the release of the MVP in September 2019. Specifically, in the 1st year, even perpetual licenses will be offered to companies at 10,000 €, such that to gather as much money, as early as possible. During the 2nd year, we will be offering 3-year duration licenses again at 10,000€, in the 3rd year, for 2 years duration and in the 4th year, 1-year duration licenses. In the later stages, when we have proven sales and record, we will slowly increase our prices at 20% increase for a period of 5 years, until we reach the competitors prices. For individual BSc students and MSc students, we will offer completely free versions of the software on an annual basis, for PhD students, we will be offering annual licenses of the order of 500 € or free of charge, if they recommend KYAMOS to other potential customers and annual University licenses for 5,000 €. These prices will include cloud-based computing services, if available, with a limitation of usage on cores/hour. Our costs will be the marketing/customer-support/IT staff, as well as server maintenance and operational costs of the KYAMOS company. By offering a marketing strategy customized on customers needs, we maximize the possibility of securing customers from all financial backgrounds. Our profit margin is very high of the

11

order of 90% due to the nature of the product we sell, which is a software. The only costs we have in the first 3 years from the release of the MVP is the salary of the marketing/customer support/IT employee.

IV. Instructions: Marketing Plan This section provides details on KYAMOS industry, the competitive landscape, our target market and how we will market our business to our customers.

1. Market research

The CAE industry is of the order of 6 Billion US $ and it is growing at a steady annual growth rate of 8-10% and it is expected to reach 12.8 Billion US $ by 2025. We expect to get a small portion of the industry but enough to have KYAMOS grow into a large respectable CAE company. There is a great need for customized ready-made modules that targets non-engineers outside the R&D departments, as well as provide real-live, time simulations that greatly provide insight into multiphysics engineering simulations.

We will gather data regarding our competitors through primary and secondary research. Primary data will be gathered by KYAMOS through online websites, engineering forums and colleagues/friends that utilize the software of the competitors, from people working at competitors’ companies, as well as from potential customers that will come in contact, in our attempt to sell the product. Additionally, market data will also be collected through secondary research, such as online journals, engineering websites and on-line resources that analyze the market.

2. Barriers to entry

KYAMOS has no high startup or production costs, and there is no need for specialized technologies or patents. We may face issues to find highly qualified employees hence we will also advertise any positionings abroad as well. We expect to face brand recognition challenges since we are entering a well-established market, so we will need to convince customers: (a) on the technological advantages of our product when compared to competitors, (b) on the better pricing or (c) better services that KYAMOS provides. There are no tariffs, quotas or any unionization of the industry.

3. Threats and opportunities

SWOT Analysis Worksheet

Strengths Weaknesses Opportunities ThreatsProduct/ Service Offering

Versatile/flexibleFriendly GUICross platform

Startup company, so sensitive to external factors

Existing competitors offer only part of solutions we

Similar products could be developed by other

12

(Windows/Linux/MacOS)High performance computing solutions (CPU-GPU)Faster problem solvingLarger problem-solving capabilityAccurate problem solvingCloud based server solutionsInnovative algorithms outperforming our competitorsIn-house development and maintenance of the websiteNo licensing/IPR issues-based on free tools

MVP will be ready in one yearNo actual premises to host the companyMultidisciplinary project that needs to marry multiple expertise

will offer companies with much larger budgets

Brand/ Marketing

Links with SIMPLY GROW, company marketing campaign for US

Exploitation of contacts and links with academia and industry Access to investors through IDEACY

Staff/HR KYAMOS members have full time jobsKYAMOS members are married with children which require extra

Exploit company’s credible CVs to gain trust from customers, creditors and investors

International aspect will require long trips and valuable time from team membersPossible

13

attention unavailability of highly specialized personnel in CyprusWithdrawal of founding team member and CEOUnforeseen medical reasons of founding member and CEO

Finance Low costMinor expenses until MVP is released

Low cost because of use of free modules that allows to target new sectors, such as small SME’sAccess to seed-funding through IDEACYSpace available to host servers and website

Change of financial status of our creditors/investorsPotential investors may be unable to understand high technical issuesChange of interest of loans from creditors, if any

Operations/Management

Low taxes since based in CyprusTeam has expertise in science, engineering, business, financial and corporate aspectsTeam members know each other

No customer service experienceNo prior business operations management experienceNo prior-business experience from CEO and Founder

Registrar legislation changes can affect KYAMOS proposition

Market Potential customers already exist

Nearly non-existent market in CyprusLarge number of existing companies offer

Increased market share for many years for CAE market

Large software companies can shut us down if we are identified as a threat

14

similar solutions Any law suits regarding IPR issuesLicensing changes or discontinuation of free packages used by KYAMOS

 There are no strengths that can help improve the weaknesses of the company or combat any threats.

4. Product/service features and benefits

The most important feature of the product is that it will provide real-live, time insight into the multiphysics simulations and that it will provide ready-made customized modules for non-engineers in engineering firms. Furthermore, it will provide cloud-based solutions both for distributed MPI and GPGPU computing. Finally, it will be efficient, effective, simple to use, able to solve larger problems, faster.

KYAMOS will be delivered online by downloading from the website. The software will be guaranteed during the licensing duration and ongoing support, if needed will be provided through online remote desktop support. There will be online training sessions and there will be a refund policy, if the customer is unhappy within the first month in using the product.

5. Target customer

The target customers are scientists and engineers in the age group from 20-70 years old that work at Universities, Research Institutes, engineering consulting firms and small, medium and large engineering enterprises that utilize CAE software. They must be holders of degrees, mostly engineering degrees, and are going to be based geographically in technologically advanced countries.

6. Key competitors

We are entering a well-established market, hence there is immense competition in the business. However, there is an annual growth rate of 8-10% and it is forecasted to continue at this rate for the next 10 years, forecasted to reach 12.8 Billion US $ by 2025. Hence, there is an opportunity to grasp a portion of this new market that is created. This new market is mostly non-engineering companies that could benefit from utilizing ready-made customized modules to increase productivity in their businesses. There are competitors that offer free and proprietary software. The main competitors for free software are OpenFoam and SimScale, and for proprietary software are ANSYS, Comsol Multiphysics, MSC, NEI Nastran, Silvaco, Matlab and Siemens PLM. In order to evaluate properly our competitors, we will need to know the exact prices, the benefits/features their software offer, their size/profitability and their market strategies. We intend to collect this information in great detail close to the release of the MVP in September 2019 and we intend to gather this information from online forums, from their existing customers, from working personnel of competitors, from websites and by contacting the companies as potential customers.

15

Competitive Analysis WorksheetFor each factor listed in the first column, we assess whether we think it’s a strength or a weakness (S or W) for our business and for our competitors. Then, we rank how important each factor is to our target customer on a scale of 1 to 5 (1 = very important; 5 = not very important). Finally, we use this information to explain our competitive advantages and disadvantages.

FACTOR KYAMOS ANSYS FLUENT

COMSOL Multiphysic

sOPENFOAM

Importance to

Customer

Products S S S W 1

Price S W W S 1

Quality S S S S 1

Selection W S S S 4

Service W S S W 3

Reliability S S S S 2

Stability S S S S 3

Expertise W S S S 3

Company Reputation W S S S 3

Location S S S S 5

Appearance S W S W 3

Sales Method S W W S 2

Advertising W S S W 2

Image W S S S 3

The quality of the product is a strength for KYAMOS, however the same stands for all the main key competitors. Regarding the selection, this will be a weakness for KYAMOS since the already established competitors with thousands of employees will be offering more selections and more broad solutions and features. To mitigate this problem, we will utilize

16

free software under the LGPL/MIT/BSD/Apache licenses from the industry, already tested, to mitigate this problem as much as possible. Regarding the service, we have a weakness due to the low number of customer support personnel, however we will be mitigating this problem as much as possible by offering share screen remote access for customer support. Regarding reliability, we expect that KYAMOS will be as reliable as of our competitors’ software, however in the expertise area, the other companies will outperform KYAMOS due to their long years of experience in the market. Our competitors also have a good reputation in the market, whereas KYAMOS has no reputation and will prove itself through time and its operation’s track record. Regarding the location of the companies, KYAMOS has a competitive advantage that is based in Cyprus that offers a low tax regime and a well-organized legal system, however it is geographically located far away from the most technological companies, which are based mostly in the UK and the US. Regarding the appearance, we expect KYAMOS to outperform most of our competitors, likewise with COMSOL that offers a very nice, simple and friendly to use product. The sales method can be one of our biggest strengths since we can have flexibility in offering different licenses with different durations, whereas our competitors lack flexibility in sales to the customers. Regarding advertising, this will be a weakness since KYAMOS budget is very limited when compared with our competitors which have nearly unlimited amount of resources for advertising. Finally, regarding the image, KYAMOS has no prior image, whereas our competitors have already established a strong image in the market, hence they are the successful companies offering CAE solutions.

7. Positioning/Niche

KYAMOS software will be presented as a state of the art software. It will be promoted for excellence, speed, effectiveness, simplicity of use, ability to solve larger problems, faster, efficiency and user-friendliness. It will offer three innovations: (a) real live insight into multiphysics engineering simulations, (b) ready-made customized solutions for non-engineers, and (c) cloud-based solutions.

8. How you will market your product/service

KYAMOS will be advertised online through its website, its landing page, as well as through online adds such as google. We will generate a mail list of interested stakeholders through our landing page and we will update them regarding our product. We will also attempt to utilize search engine optimization. Most importantly, we will target trade shows and scientific and engineering events, where potential customers are grouped together. We will also utilize our academic contacts to promote our products, mainly through word of mouth and referrals. We will provide special discount to those customers that will refer our product to their collaborators and friends. Additionally, it will be advertised on online platforms that advertise software products. Finally, it will be advertised especially in engineering forums. We intend to identify these engineering forums and make sure we participate or advertise to promote our product. The main marketing campaign will be a targeted campaign starting from target countries. Hence, we are targeting Israel and Middle East as our prime target, hence we will identify potential customers and contact them directly. In the first few years, we may also travel to convince customers to buy our products. Later on, we will try and use our contacts in Europe to identify potential customers and finally, we will target the US market, which is the largest market in the world in terms of engineering countries, possibly with the help of our strategic partners SIMPLY GROW (http://www.simplygrow.co). In the meantime, any prestigious customers that use our product, will be advertised as customers who trust KYAMOS to increase credibility of KYAMOS in the attempt of attracting new future customers.

17

We believe in simplicity and user-friendliness. Also, we believe there should be an interactive, costless communication between the customers and the product. Hence, we intend to incorporate share screen capability for online live customer support, as well as an automatic panel for customers to share their concerns, complaints and suggestions. To get valuable feedback regarding the KYAMOS product, we will firstly identify potential engineers in Cyprus by researching and contacting Universities, Research Institutes, engineering-based companies and large research organisations, in an attempt to identify persons that could potentially be interested to participate in this questionnaire. Then, we will take their personal details and invite them via email to participate through a google documents questionnaire that is free of charge into evaluating the KYAMOS product, taking into consideration the GDPR regulations. Due to the limited numbers that may be interested in Cyprus, we will use our academic contacts abroad to identify other potential people to answer the questionnaire from collaborating Universities. Finally, we will post the questionnaire online in engineering forums, as well as on the website for those that would be interested to complete it online.

Finally, we will also utilize social media marketing, email marketing, public relations, networking, word-of-mouth and referrals to attract as many customers as possible.

9. Promotional budget

Regarding our promotional budget, for advertising purposes, it will be mainly spent for traveling to large conferences and events to promote the product, mostly around Cyprus such as Israel and Middle East. Specifically, during the first 4 months from the release of the MVP, we will be spending on average 500 €/month, for the next 8 months, 1,000 €/month, 2,000 €/month for another 12 months, 3,000 €/month for another 12 months and finally 4,000 € for 4 months, amounting to a total of 88,000 € during a period of 40 months from the release of the MVP, provided that the Financial Projections are estimated correctly.

10. Pricing

The KYAMOS software to be developed lies within the Computer Aided Engineering (CAE) business. We plan to adopt an average price and compete for quality and service. This will allow KYAMOS to enter an already established market and manage to get a small portion of the industry. The prices will be set by comparing the services that our main competitors provide with the services that KYAMOS will provide at the time of release of the MVP, which is September 2019. Services that will define KYAMOS price will be speed of online customer support, cloud computing services, number of ready-made modules offered, high performance protocols used, the number of design engineering problems to solve, whether it provides real-live insight capability, accuracy of results, cross-platform capability, speed and accuracy, user-friendliness and credibility, benchmark tests and examples incorporated. Our main competitor sells perpetual licenses from 40,000-120,000 €. We believe that we will have a comparable product, but we will be unable to sell at such a price due to credibility issues. Hence, we will start selling in the 1st year with a cost of 10,000 €, annual licenses of one, two or three years duration, or even perpetual licenses, since our sales strategy is to raise as much money as possible, as early as possible. In the second year, we will offer the same price, however given the record of sales, we will be offering licenses of 10,000 € only as annual licenses maybe for two-year duration. In the third year, given the increased record in the sales, we will be selling one-year annual licenses again at 10,000 € for companies. Our strategy is to sell KYAMOS also at Universities and Research

18

Institutes with reduced prices as much as 50% discount, however with the strategy to raise as much money as possible, especially in the beginning of the sales campaign.

11. Location or proposed location

Regarding location of the company, KYAMOS will not need any actual premises since it is a software company offering Software as a Service (SaaS). This will inevitably minimize fixed costs of the company and will ensure financial viability, especially in the first few years of the company. We estimate that within five years, we will need to establish our own offices, since by then, we will enough cash to support these fix costs, as well as the salaries of the employees to host the premises. It is estimated that the company will be based in Nicosia since (a) the CEO and Founder lives there, and (b) there are excellent law and audit firms to support KYAMOS. Since the building will not be visited by customers, we will choose a location at the outskirts of Nicosia, that it will be close to the capital, but cheap at the same time.

12. Distribution channels

The methods of distribution to use such that we sell our products or services is direct sales by person to person, ecommerce mostly through the website, inside sales force through our marketing and sales employees and outside sales representatives that will perform target marketing and sales campaigns. Specifically, we are in collaboration with an outside sales marketing company SIMPLY GROW (http://www.simplygow.co) to launch targeted campaigns in the US. The company is also considering taking shares from their promotional campaign which is key to success at the early stages where KYAMOS cash flow will be very limited.

19

V. Instructions: Operational Plan1. Production

The product to be produced is a software hence it will be produced on a personal computer from the Technology team. The service to be delivered is the software itself in the form of an executable depending on the platform of the user. The user will be able to download the software from the website. A free version will be also available for a trial period of one month. The website will be hosted on an existing windows platform and will be accessible to the public. The cost to produce the software will be the working hours of the CEO, founder and scientific director of the company, as well as advising hours from the advisors, when revenues start coming in. The MVP product will be released in September 2019 and it encompasses algorithms and work for five years, so the cost of the product is estimated to be at 500,000 € (5 years, 100,000 € each). A more detailed and thorough evaluation of the product and of the company will be performed if needed at the time.

2. Quality control

To maintain quality control, we will be testing each release version with a beta version running a series of standardized tests every time and check consistency and performance. We will also include an online portal within the software, where we will be collecting comments from the users to be addressed from future releases of the KYAMOS software.

3. Location

KYAMOS company will be based in Nicosia, Cyprus. During the first 5 years, the company will not be hosted at any specific premises and no cost will be necessary. An already existing address will be used that has no additional costs to the company.

4. Legal environment

There is a well-established legal environment in Cyprus regarding corporate business. The company will be registered at Dr. K. Chrysostomides & CO, LLC, a leading Cyprus law firm, specialized in corporate business at an international level. There will be no specific licensing, permits, trademarks, copyrights, patents, insurance, environmental, health or workplace regulations affecting our business or any special regulations affecting our industry.

5. Personnel

The MVP will be released in September 2019. During the first year from the release of the MVP, we estimate that 12 licenses, one for each month will be sold. During the first 4 months, all the work will be performed by the CEO of the company to ensure quality of customer support and minimize costs at the same time. At the 5th month after 4 licenses are sold, we will hire a marketing/customer-support/IT employee. His primary job will be to travel abroad either together with the CEO or alone to market, promote and sell the product, such that sales are boosted. However, due to a limited budget, the employee when

20

not marketing KYAMOS, he will also have to help maintain the website and the MPI and GPU servers, as well as providing customer support to clients, and helping also in the further development of the KYAMOS software. To conclude, he/she will be assisting the CEO of the company on a daily basis by removing considerable daily load.

6. Inventory

No inventory will be necessary for the KYAMOS software company.

7. Suppliers

We do not have any suppliers for KYAMOS since we sell software and we do not have any inventory.

8. Credit policies

We do not intend to offer any credit policies to the customers, however we are willing to offer discounts and promotional licenses.

21

VI. Instructions: Management & Organization1. Biographies

Antonis Papadakis (CEO and Founder)

Dr. Papadakis has graduated with a PhD on a full time 4-year scholarship from Cambridge University, Department of Engineering, Trinity College, UK in 2004. Thereafter, he worked as a Postdoctoral Fellow in the Compact Muon Solenoid (CMS) experiment at the European Laboratory for Particle Physics (CERN) for 3.5 years and he was a member of the team which discovered the Higgs particle in 2012 (Nobel Prize in Physics). Currently, Dr. Papadakis is an Associate Professor at Frederick University Cyprus, Chairman of the Department of Electrical Engineering and Coordinator of the MSc in Oil & Gas and Offshore Engineering. He is also the Director of the Center for Computational Analysis – KYA (http://kya.frederick.ac.cy), which specializes in high performance computing simulations of multidisciplinary problems across all the field of engineering. Dr. Papadakis has solid expertise in the field of numerical and experimental modelling. His main publications focus: (a) on numerical modelling of plasma physics and general mass and charge transport related processes, (b) solar cell modelling, (c) electromagnetic field measurements both of numerical and experimental type, and (d) high energy physics. Three of his papers (two from the Institute of Physics, and one from Elsevier) have received honorary mention from the journals. He has supervised a total of 40 final year projects and 20 MSc theses mostly related to solar PV, both at cell and module level and has published a number of international conference publications related to renewables. He is an author in 44 peer-reviewed journal publications and 30 international conference publications. He has also acted as Co-Chairman of the DEMSEE 2014 International conference and he is currently organizing the DEMSEE2018 International Conference in September 2018. He is also a reviewer in 13 international scientific journals. In the past, Dr. Papadakis has coordinated 2 Cyprus Research Promotion Foundation projects, one as Project Coordinator (high energy physics) and one as Scientific Coordinator (power electronics). He has also participated in a government incubator funded program regarding live fingerprinting recognition. He is also the Frederick coordinator in the CSRC Phase 1 Teaming project.

Anna Rossides (Legal Advisor)

Anna Rossides is a Partner practicing in the Corporate and Commercial Department of the firm, regularly advising on corporate and commercial transactions involving Cyprus vehicles, especially acquisitions, joint ventures, corporate restructurings, secured project financing and securitization. Anna has considerable experience in multi-million IPO transactions on regulated and unregulated markets (such as AIM) and foreign stock exchanges (including the LSE, Toronto SE and Frankfurt SE) and in listings of loan notes and GDRs on such markets.

She is also recognized for her strong expertise in the area of Competition law; frequently assisting prestigious clients in diverse industries on challenging competition and antitrust matters and representing corporate clients before the Cyprus Commission for the Protection of Competition.

22

She has over the years repeatedly been listed, highly recommended and singled out as a Leading Lawyer in her areas of practice in several international legal directories, including, Legal 500 EMEA, IFLR1000, Chambers Europe, Who’s Who Legal: Banking, the International Who’s Who of Competition Lawyers & Economists, the International Who’s Who of Business Lawyers and Global Competition Review.

Katerina Papadaki (Mathematical Algorithms & Operations Research Advisor)

Dr. Katerina is an Associate Professor of Management Sciences in the Department of Mathematics at the London School of Economics and Political Science (LSE, UK). She received her PhD from Princeton University from the Department of Operations Research and Financial Engineering. A major component of her research has been in developing algorithms to solve discrete deterministic and stochastic optimization problems that arise in dynamic resource allocation problems with applications involving physical resources (transportation networks, drone routing), radio resource allocation (wireless communication networks), and financial optimization problems. She has also been working on game theoretic problems (patrolling games) for network security. She is an associate editor of Optimization Letters and a member of INFORMS and IEEE.

Her expertise lies in the areas of: discrete optimization (deterministic and stochastic); stochastic dynamic programming; approximate dynamic programming algorithms; power efficient routing and scheduling in mobile networks; drone path optimization; patrolling games for network security.

Dr. George Stavrides (Marketing Advisor)

Dr. Stavrides hold a PhD from Cambridge University in Biology and an MBA from INSEAD. He is currently working in SYNGENTA located in Basel, Switzerland, one of the largest agriculture companies in the world.

Syngenta Crop Protection AG Global Product Lead, Biocontrols-Global Marketing 2015 - Present (over 3

years) Biocontrols portfolio manager (biofungicides and bioinsecticides). Strategy

cycle, biocontrols. Evaluation and execution of new license-in and acquisition opportunities.

Global Product Manager, biological fungicide and post-harvest portfolios-Global Marketing 2014 - 2015 (about 1 year)

Biofungicides portfolio manager (5 products). Evaluation of new license-in and acquisition opportunities. Extensive 3rd party engagement and relationship building. Product

Global Strategy and Operations Manager-Global Marketing 2013 - 2014 (about 1 year)

Deputy to Head of Insecticides. Strategy focus year, various cross-functional initiatives. Lead, neonicotinoid intelligence team. Ad interim product manager Pyrethroids

Global Regulatory Manager-R&D 2010 - 2012 (over 2 years) Regulatory manager Fungicides, Plant Growth Regulators and Crop

Enhancement. Regulatory lead strobilurin licensing agreements. Global regulatory intelligence coordinator

Global Product Registration Manager-R&D 2009 - 2010 (9 months)23

Responsible for Azoxystrobin, the biggest company molecule, at that time (lead and supported sales >1.4bn USD in 2010). Oversight of all relevant regulatory activities

Registration specialist-R&D 2008 - 2009 (over 1 year) Cross-indication registration support. Design and execution of 50-country

survey on Brand Architecture and label requirements; ad interim registration manager, herbicides.

Diabetes Research TechnologiesGeneral Manager 2004 - 2006 (almost 2 years)Business incubator hosted company. Business plan implementation. General management, day-to-day-activities.

Yasoo HealthResearch associate 2003 - 2004 (over 1 year)Project and industrial relationship management; grant application preparation and defense

The Sanger Institute / Genome Research LtdPost-doctoral research associate 2002 - 2003 (8 months)Genome mapping, large scale DNA analysis, gene hunting (lab and bioinformatics); management support, technical staff and 2 PhD students

Mr. Lakis Papadakis (Graphic Designer Advisor)

Mr. Lakis is a freelance graphic designer. He graduated with a Diploma of ABIID (Associate of the British Institute of Interior Design) from Willesden College of Technology (London). He has a long experience in graphic design of more than 40 years. He has also worked as a High School Teacher for the Cyprus Ministry of Education and Culture for more than 40 years and has served from several positions, such as Vice Head Master and Head Master, where he retired in 2014.

Mr. Andreas Papadopoulos (Banking, Insurance & Human Resource Advisor)

Mr. Andreas was a Bank Branch Manager (Full Service Branch) at Retail Banking Division at the Bank of Cyprus (ex Laiki Bank) from 2002-2013, a Manager of Business Development at Retail Banking Division in Laiki Bank from 2000-2002, a Manager of Business Development and Planning at Finance Division at Laiki Bank, Head of Sales Support and Public Relations at Marketing Department at Laiki Bank from 1992-1995, Marketing and Business Development Officer at Marketing Department at Laiki Bank from 1989-1992, Marketing Officer at Credit Card Services at Laiki Bank from 1988-1989, Administration and Finance Manager at Fortune Travel Ltd from 1987-1988. He holds a Master of Business Administration (M.B.A.) in Finance with Grade 3.0 from Long Island University, New York from 1984-1985 and a Bachelor's Degree with major in Management and Marketing and minor in Economics from 1979-1984 at Long Island University, New York.

Mr. Michael Papadopoulos (Financial & Audit Advisor)24

Mr. Michael has 11 years of experience with Deloitte and a further 3 years within a Big 4 audit company. He offers audit and assurance services. He holds a Bachelor in Accounting & Finance, he is a Member of the Institute of Certified Public Accountants (ICPAC) in Cyprus, he holds a Professional Diploma in International Financial Reporting (Dip.IFR) from ACCA, UK, he is a Certified Internal Control Specialist (CICS) with Internal Control Institute (ICI, U.S.), a Certified Management Accountant (CMA) with IMA (US) and Associate Chartered Accountant (ACA) with ICAEW.

Michael has mainly worked on major energy & resources clients as well as multinational groups and with clients in the financial services sector (investment funds and banks). He was involved in the Oil & Gas industry in Cyprus from its infancy, when the first ever operator initiated its exploration in Cyprus waters. He has been the acting Director in charge of audit and other attestation services provided to the operator, with extensive involvement in the statutory audit, as well as with the certification of Special Purpose Cost Recovery Statements as required by the provisions of the Production Sharing Contract signed by the Operator and the Cyprus Government. International clients include multinational conglomerates and private equity/hedge funds investing in financial assets, as well as real property. Considerable exposure in banking and related services has been acquired by serving on the audit teams of retail banks as well as participating in special purpose banking related, non-audit projects. Significant exposure over group financial statements prepared under IFRS as adopted by the EU.

With the current firm he works for, he contributes in his capacity as: Member of the IFRS Consultation Team Member of the IFRS Facilitation Team Member of the Firm’s Oil & Gas Industry leadership team Acting Group leader Acting student counsellor & mentor, with regular participation in the Firm’s

recruitment process for trainees and experienced hires

Dr. Stamatis Rossides (Multiphysics Engineering Advisor)

Dr. Rossides joined the Department of Mechanical Engineering at Frederick University Cyprus as a faculty member in 2004 and was an Associate Professor and the Head of the Department from 2007 until January 2018, where he retired at the age of 70 years old. He received his BSc and PhD in Mechanical Engineering from the University College Cardiff, UK in 1976 and 1980, respectively. He also received a Law Degree from the College of Law, London, UK in 2000. He is a Member of the Engineering Council, UK, and Full Member of the Institution of Mechanical Engineering, UK and of the Technical Chamber of Cyprus (ETEK). Prior to joining the faculty in 2004, Dr. Rossides held the position of Team Leader of the Thermal Analysis and Tribology groups of MATRA British Aerospace Dynamics Missile Systems Company, UK and Plessey Aerospace, UK. Dr. Rossides has over 25 years of experience in the Aerospace Industry. The scope of his research is wide, covering numerous areas of the mechanical engineering discipline, including, among others, thermal analysis, new materials, tribology, surface engineering, NDT and phase change materials. Research projects in relation to the aforementioned areas were either company funded, or carried out in collaboration with academic institutions, governmental departments, the European Space Agency and/or other Institutions. Dr. Rossides

25

acquired his managerial experience and knowledge during his long-standing position as Team Leader in British Aerospace and Plessey Aerospace. Dr. Rossides was a member of the UK Rolling Bearing and Airframe Standards committees, representing the interest of the Society of British Aerospace Companies Limited (SBAC), from 1987 to 1990. Dr. Rossides has published 2 journal papers and more than 30 technical papers and he is the author of the ESDU International, London, items “Lock nuts and other thread locking devices’, No. 87023 and “Applying, measuring and maintaining pretension in steel bolts”, No. 86014. His main research interests are thermal analysis using Finite Element methods, electronic cooling, sensors, tribology, surface Engineering, Non-Destructive Testing, phase-change materials, vibration loosening of fasteners and new materials. He is currently the President of the Cyprus Consumer Association after he has served for two years as a Vice-President. He is also a committee member of the Cyprus standardization organization.

2. Gaps

We do not have any major gaps in management or experience, but neither we can afford economically to hire any personnel, especially through the first years, until the company starts having considerable revenues. The model of the company is to use well qualified advisors such as legal, financial, audit, marketing and banking advisors, which are part of the management team, especially in the beginning. As the company grows, we will start hiring permanent staff to address increased volume and complexity.

3. Advisors

a. Attorney: Mrs. Anna Rossidesb. Accountant/Financial: Mr. Michael Papadopoulosc. Board of directors: Dr. Antonis Papadakisd. Advisory board: Dr. George Stavrides and Dr. Stamatis Rossidese. Marketing: Dr. George Stavridesf. Insurance agent: Mr. Andreas Papadopoulosg. Banker: Mr. Andreas Papadopoulosh. Human Resource: Mr. Andreas Papadopoulosi. Operations Research and Algorithms: Dr. Katerina Papadakij. Graphic design: Mr. Lakis Papadakisk. Mentors and other advisors: IDEACY

The above advisors working with CEO and founder of KYAMOS cover all the necessary disciplines of law, finance, insurance, banking and marketing sectors, necessary for the successful operation of KYAMOS within the first 3 years of operation from the release of the MVP.

4. Organization Chart

Organization Chart

TECHNOLOGY TEAMMANAGEMENT TEAM

ANTONIS PAPADAKIS(CEO & FOUNDER)

26

STAMATIS ROSSIDES(ENGINEERING MULTIPHYSICS

ADVISOR)

MICHAEL PAPADOPOULOS

(FINANCE & AUDIT ADVISOR)

27

VII. Instructions: Financial PlanThe table below shows the profit and losses of KYAMOS for the first three years since the release of the MVP in September 2019. Regarding customers, we anticipate to start making sales within the first month in September 2019 and sell on average one license per month for the whole year. Hence, 4 licenses by the end of 2019 and 12 licenses by the end of August 2020. From September 2020 and the second year from the MVP, the sales will be increased to two licenses per month, hence 20 licenses will be sold by the end of academic year 2020. The same pattern will follow, selling 3 licenses per month since September 2021 and a total of 88 licenses will be reached by the end of calendar year 2022. Our goal is to gather as much money as possible, as early as possible, hence the following pricing strategy will be followed. The licenses will be sold at 10,000 € starting from offering perpetual licenses during the first year, 3-year duration annual licenses for the second year, 2-year duration licenses for the third year and annual licenses in 2022. Regarding the operating expenses, we include the registration of the KYAMOS company into Cyprus Registrar of Companies, audit expenses, marketing expenses, and travelling expenses. Salaries for the personnel start on the 5th month from the release of the MVP, when a marketing/customer-support/IT employee is hired at a salary of 2,000 € /month.

2018 2019 2020 2021 2022

Customers 0 4 20 48 88

Revenues 0 40000 160000 280000 400000

Operating Expenses 800 3800 17800 53800 65800

Starting Balance 12000 10200 46400 164600 390800

Ending Balance 10200 46400 164600 390800 725000

1. Break-even calculationThe break even will occur very early in the project, within the first two-months of the MVP launch. This is due to the very low fixed costs at the beginning of KYAMOS operation and due to its software nature.

2. Use of capital

28

KYAMOS is currently not seeking funding from investors. The situation will be reassessed when the MVP is launched. We believe that seed funding, if to be sought, it should be after the MVP is launched and few sales have been performed such that the best deal with the investor is reached.

29

VIII. Instructions: Appendices

APPENDIX A: PESTEL ANALYSIS

APPENDIX B: STAKEHOLDER

ANALYSIS

Stakeholders Analysis1 Customers2 Software suppliers3 Software advertisers4 Employees5 Directors6 Shareholders7 Investors8 Creditors9 Engineering forums/agencies and Business support groups (Secondary

stakeholders) 10 Trade unions (Secondary stakeholders)11 Government

Political Tax policy can affect sales and

revenues at international level Government policy and

environmental laws can create a new market for design of engineering-based solutions

Economic The economic environment in

Cyprus is expected to affect KYAMOS since any fund raising will probably affect the early stages of the company

Any loan/interest rates may greatly affect KYAMOS initial stages of development

Office renting as well as office equipment and salaries of the employees will be affected by the economic situation in Cyprus

Tax rates and regulations will also affect KYAMOS financials

Insurance rates for office premises will also affect the company’s economics

Extreme weather conditions will result in increased expenses for heating/cooling of office premises and company’s computer server electricity consumption Social

Economic growth can greatly affect interested customers and sales

Interest rates can affect greatly any loans of the company or money coming from the investors

Exchange rates will greatly affect sales since KYAMOS will be based mainly on international sales

Environmental The weather conditions in Cyprus

are expected to greatly affect the employees’ efficiency

Any extreme weather conditions could result in power outages due to overloading of the electricity grid especially during the summer period, affecting company’s server operations

Technological Always need to check for any

disruptive computational solutions that could benefit or put KYAMOS at risk such as GPU or quantum computing solutions

Cheap cloud-based solutions could affect greatly the operations of KYAMOS

Power consumptions of KYAMOS servers and their upgrade could greatly affect the costs of KYAMOS

Legal Need to ensure that IPR issues are

addressed adequately Need to foresee any law changes

that could potentially affect the KYAMOS operations such as data management of the customers (GDPR)

Any procedural laws from the Registrar of Companies in Cyprus can greatly affect KYAMOS operations. This could involve procedures, incorporation fees, accounting balances and generic corporate practices

30

Stakeholders Analysis Strategic Objectives1 Customers A cheap user-friendly,

computationally efficient, accurate engineering solution software, cross-platform with continuous upgrades, customer sales and technological support offering disruptive solutions such as HPC capabilities and services

2 Software suppliers To provide them with an attractive product at an attractive price such that they can maximize sales of the software. A good website of the company for referral purposes will aid in selling more products to customers

3 Software advertisers To provide them with a visually attractive advertisement

4 Employees To employ people which are highly capable and motivated. Objective is to keep the employees happy, motivated and dedicated. Also, to have a clear understanding of the mission, vision and objectives of the company and their role/fit in the company and to ensure that they have prospects for promotion either financial or positional

5 Directors To keep directors happy and involved in the process and decision making of the company with freedom to express their views

6 Shareholders The strategic objective is to maximize the profits of the shareholders and to best their shares wisely for better future profit

7 Investors To keep the investors happy and show considerable and steady progress and growth

8 Creditors To meet the deadlines regarding payments of loans

9 Engineering forums/agencies and Business support groups (Secondary stakeholders)

To establish the KYAMOS software as a credible alterative and develop credibility within their circles

10 Trade unions (Secondary stakeholders) To be considered as a caring employer for your employees, to respect laws to and not to violate any rights of the employees

11 Government To obey all the government rules and regulations and have no implications with the law and the regulatory

31

authorities

Strategic Objectives Activity1 Customer appealing software We are currently developing software

which take into consideration appearance, user-friendliness, speed, capability, scalability and accuracy

2 Attractive Product We are taking into consideration appearance, cost and capability such that our product can be attractive for marketing and sales purposes

3 Appealing to eye software We place important efforts during development time to include high quality graphics with appealing to the eye colors, keeping visual effects as simple as possible and using basic colors such as those of the rainbow

4 Happy and motivated employees We currently do not have any employees however when we have, we intend to keep them happy and motivated by allowing them freedom of thinking and operation, as well as provide them with an incentive to work harder

5 Happy and motivated directors We wish to keep directors involved in the decision-making process and get the best contribution from them

6 Maximize shareholders profits and create growth potential

To keep shareholders happy, we intend to always optimize our actions, taking always into consideration their best interests both in the short and long term

7 Company steady progress and growth Similar to shareholders, we intend to invest their money as wisely as possible, with their best interests in our actions

8 Due payment of loans We intend not to borrow, and if so, to keep a minimalistic approach, ensuring that we can always meet creditors payment deadlines

9 Be established as credible software engineering solution

To create credible groups, make our presence felt in the forums and broadcast a feeling of professionalism and flexibility

10 Compliant with basic laws of trade unions We intend to identify the rights of the employees and ensure that are respected with the help of the human resource manager

11 Government regulations compliant Identify any laws and regulations that concern the activities of the company and ensure that criteria are met with

32

the help of our legal and financial/audit advisors

APPENDIX C: GAP ANALYSISAs is: A team of highly motivated individuals consisting of academics and entrepreneurs in the process of developing an engineering solution multiphysics software

To be: A fully operational engineering software company that provides disruptive computationally efficient solutions.

Gap: The gap involves various steps such as the formation of the company, the built-up and maintenance of the website, the production of the MVP product, the consideration of acquisition of any creditors/investors, the release of the product including the advertising, identifying and targeting different target group of customers. Most importantly, the operations of the company, the sales acquisitions, the customer services actions and practices, employee hiring and human resource management, the business plan creation, market research to be performed and potential customers to be identified.

33

APPENDIX D: BUSINESS MODEL CANVAS

34

APPENDIX E: KYAMOS STRATEGIC PLAN

35

Company: __________________________________________KYAMOS © 2018 Paris Cleanthous, CIIM

Develop friendly Graphical User Interface Software

Cheap Software Computationally efficient/accurate

Attractive Pricing Schemes Objectives

State of Play State of Play State of Play State of Play State of Play

Keep software design as simple as possible with only necessary tabs

and options.

Utilize only tools which are freely available

Develop state-of-the art numerical solution algorithms

Develop specialized packages for different types of customers

Use high quality icons and images.

Check licensing/ Intellectual Property Right of any software

used in KYAMOS to avoid complications with law (could

become expensive)

Test the algorithms through benchmark tests and demonstrate

superiority

Elure customers with trial versions/free 1 year subscriptions

Use basic colours (blue, red, green, yellow) as background software

colours.

Solid testing before releasing to avoid complications with

customers

Utilize disruptive numerical technologies such as MPI/GPU

combination

Offer financial/service incentives if customers introduce more

customers

Prohibit the user to press unnenessary tabs and icons at

wrong time. Hide from the user any complicated numerical

calculations and display only nice friendly status-bars

Activities

36

APPENDIX F: KYAMOS STRATEGY CANVAS

Low (1) High (10) CSF Low (1) High (10)

x Software Compatibility o3 o1,o2o1: COMSOL Multiphysics

x User Friendliness of Software o3 o2 o1o2: ANSYS/FLUENT

x Computational Efficiency/Accuracy o3 o1 o2o3: OPENFOAM

x Attractive Pricing Schemes o1,o2 o3x: KYAMOS

x Widely Based Engineering Solutions o3 o1,o2

x Company Track Record o3 o1 o2

x Customer Service/Support o3 o2 o1

x Software Upgrades o3 o2 o1

Importance to Company PerformanceMedium Satisfactory

37

APPENDIX G: KYAMOS ROADMAP MVP

Year 2018 2019Months Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Business Plan XCompany Registration X XGPU server setup X XWebsite XRPF 75000 Grant for Startups and 125000 for Postdoc XAdvertising Video Clip & Online Media Pages X XGUI development X XReal live simulations on GPUSoftware DevelopmentExamples & Documentation IncorporatedCloud Computing Service Support (GPU)Software IntegrationPre-launch activities (Promotion & Advertising)

38

APPENDIX H: KYAMOS POSITIONING

CSF1

Software Compatibility x

Low (1) 2 3 4 5 6 7 8 9 High(10)

CSF2

User Friendliness of Software x Opportunity

Low (1) 2 3 4 5 6 7 8 9 High(10)

CSF3

Computational Efficiency/Accuracy

x Opportunity

Low (1) 2 3 4 5 6 7 8 9 High(10)

CSF4

Attractive Pricing Schemes x Opportunity

Low (1) 2 3 4 5 6 7 8 9 High(10)

CSF5

Widely Based Engineering Solutions x

Low (1) 2 3 4 5 6 7 8 9 High(10)

CSF6

Company Track Record x

Low (1) 2 3 4 5 6 7 8 9 High(10)

39

APPENDIX I: KYAMOS FINANCIAL PROJECTIONS 2018

Typical Startup CompanyMonthly Operating Plan: 2018

Income Statement TotalJanuary February March April May June July August September October November December 2018

Bookings (Volume)New - - - - - - - - - - - - - Renewals - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Total Bookings - - - - - - - - - - - - -

Revenues ( Price x Volume)Contract Fees - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Net Revenues - - - - - - - - - - - - -

Cost of SalesData Center - - - - - - - - - - - - - Service Expense - - - - - - - - - - - - -

Total Cost of Sales - - - - - - - - - - - - -

Gross Profit - - - - - - - - - - - - - Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Operating ExpensesEngineering - - - - - - - - - - - - -

% of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Salaries/Benefits - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Sales - - - - - - - - - - - - - % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Commissions - - - - - - - - - - - - - Salaries/Benefits - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Marketing - - - - - - - - - - - - - % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Salaries/Benefits - - - - - - - - - - - - - SEM/SEO/PR - - - - - - - - - - - - - Events/Conferences - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

General/Administrative - - - - - - 300 300 300 300 300 300 1,800 % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Salaries/Benefits - - - - - - - - - - - - - Rent/Office - - - - - - - - - - - - - Legal/Accounting - - - - - - 300 300 300 300 300 300 1,800 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Total Operating Expense - - - - - - 300 300 300 300 300 300 1,800

Operating Income/(Loss) - - - - - - (300) (300) (300) (300) (300) (300) (1,800)Depreciation - - - - - - - - - - - - - Interest - - - - - - - - - - - - - Taxes - - - - - - - - - - - - -

Net Income/(Loss) - - - - - - (300) (300) (300) (300) (300) (300) (1,800)

Headcount - - - - - - - - - - - - -

Starting Balance 0 - - - - - - 11,700 11,400 11,100 10,800 10,500 10,200 Investment Received 0 12000Ending Balance - - - - - - 11,700 11,400 11,100 10,800 10,500 10,200

Income Statement Metrics

New Customers 0 0 0 0 0 0 0 0 0 0 0 0 0Renewals (75%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Cumulative Customers 0 0 0 0 0 0 0 0 0 0 0 0 0Average Monthly Fee $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Revenues per Employee #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Expense per Employee #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

40

APPENDIX J: KYAMOS FINANCIAL PROJECTIONS 2019

Typical Startup CompanyMonthly Operating Plan: 2019

Income Statement TotalJanuary February March April May June July August September October November December 2019

Bookings (Volume)New - - - - - - - - 1 1 1 1 4 Renewals - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Total Bookings - - - - - - - - 1 1 1 1 4

Revenues ( Price x Volume)Contract Fees - - - - - - - - 10,000 10,000 10,000 10,000 40,000 Services - - - - - - - - - - - - -

Net Revenues - - - - - - - - 10,000 10,000 10,000 10,000 40,000

Cost of SalesData Center - - - - - - - - - - - - - Service Expense - - - - - - - - - - - - -

Total Cost of Sales - - - - - - - - - - - - -

Gross Profit - - - - - - - - 10,000 10,000 10,000 10,000 40,000 Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100.0% 100.0% 100.0% 100.0% 100.0%

Operating ExpensesEngineering - - - - - - - - - - - - -

% of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0% 0% 0% 0% 0%Salaries/Benefits - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Sales - - - - - - - - - - - - - % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0% 0% 0% 0% 0%Commissions - - - - - - - - - - - - - Salaries/Benefits - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Marketing - - - - - - - - 500 500 500 500 2,000 % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 5% 5% 5% 5% 5%Salaries/Benefits - - - - - - - - - - - - - SEM/SEO/PR - - - - - - - - - - - - - Events/Conferences - - - - - - - - 500 500 500 500 2,000 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

General/Administrative 150 150 150 150 150 150 150 150 150 150 150 150 1,800 % of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 2% 2% 2% 2% 5%Salaries/Benefits - - - - - - - - - - - - - Rent/Office - - - - - - - - - - - - - Legal/Accounting 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Total Operating Expense 150 150 150 150 150 150 150 150 650 650 650 650 3,800

Operating Income/(Loss) (150) (150) (150) (150) (150) (150) (150) (150) 9,350 9,350 9,350 9,350 36,200 Depreciation - - - - - - - - - - - - - Interest - - - - - - - - - - - - - Taxes - - - - - - - - - - - - -

Net Income/(Loss) (150) (150) (150) (150) (150) (150) (150) (150) 9,350 9,350 9,350 9,350 36,200

Headcount - - - - - - - - - - - - -

Starting Balance 10200 10,050 9,900 9,750 9,600 9,450 9,300 9,150 9,000 18,350 27,700 37,050 46,400 Investment ReceivedEnding Balance 10,050 9,900 9,750 9,600 9,450 9,300 9,150 9,000 18,350 27,700 37,050 46,400

Income Statement Metrics

New Customers 0 0 0 0 0 0 0 0 1 1 1 1 4Renewals (75%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Cumulative Customers 0 0 0 0 0 0 0 0 1 2 3 4 4Average Monthly Fee $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Revenues per Employee #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Expense per Employee #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

41

APPENDIX K: KYAMOS FINANCIAL PROJECTIONS 2020

Typical Startup CompanyMonthly Operating Plan: 2020

Income Statement TotalJanuary February March April May June July August September October November December 2020

Bookings (Volume)New 1 1 1 1 1 1 1 1 2 2 2 2 16 Renewals - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Total Bookings 1 1 1 1 1 1 1 1 2 2 2 2 16

Revenues ( Price x Volume)Contract Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 160,000 Services - - - - - - - - - - - - -

Net Revenues 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 160,000

Cost of SalesData Center - - - - - - - - - - - - - Service Expense - - - - - - - - - - - - -

Total Cost of Sales - - - - - - - - - - - - -

Gross Profit 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 160,000 Margin 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Operating ExpensesEngineering 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

% of Revenue 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 15%Salaries/Benefits 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Other - - - - - - - - - - - - -

Sales - - - - - - - - - - - - - % of Revenue 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Commissions - - - - - - - - - - - - - Salaries/Benefits - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Marketing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 2,000 2,000 2,000 16,000 % of Revenue 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%Salaries/Benefits - - - - - - - - - - - - - SEM/SEO/PR - - - - - - - - - - - - - Events/Conferences 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 2,000 2,000 2,000 16,000 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

General/Administrative 150 150 150 150 150 150 150 150 150 150 150 150 1,800 % of Revenue 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1%Salaries/Benefits - - - - - - - - - - - - - Rent/Office - - - - - - - - - - - - - Legal/Accounting 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Total Operating Expense 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 4,150 4,150 4,150 4,150 41,800

Operating Income/(Loss) 6,850 6,850 6,850 6,850 6,850 6,850 6,850 6,850 15,850 15,850 15,850 15,850 118,200 Depreciation - - - - - - - - - - - - - Interest - - - - - - - - - - - - - Taxes - - - - - - - - - - - - -

Net Income/(Loss) 6,850 6,850 6,850 6,850 6,850 6,850 6,850 6,850 15,850 15,850 15,850 15,850 118,200

Headcount 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Starting Balance 46400 53,250 60,100 66,950 73,800 80,650 87,500 94,350 101,200 117,050 132,900 148,750 164,600 Investment ReceivedEnding Balance 53,250 60,100 66,950 73,800 80,650 87,500 94,350 101,200 117,050 132,900 148,750 164,600

Income Statement Metrics

New Customers 1 1 1 1 1 1 1 1 2 2 2 2 16Renewals (75%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Cumulative Customers 4 5 6 7 8 9 10 11 12 14 16 18 20Average Monthly Fee $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 1,000 Revenues per Employee $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 160,000 Expense per Employee $ 3,150 $ 3,150 $ 3,150 $ 3,150 $ 3,150 $ 3,150 $ 3,150 $ 3,150 $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 41,800

42

APPENDIX L: KYAMOS FINANCIAL PROJECTIONS 2021

Typical Startup CompanyMonthly Operating Plan: 2021

Income Statement TotalJanuary February March April May June July August September October November December 2021

Bookings (Volume)New 2 2 2 2 2 2 2 2 3 3 3 3 28 Renewals - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Total Bookings 2 2 2 2 2 2 2 2 3 3 3 3 28

Revenues ( Price x Volume)Contract Fees 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 30,000 30,000 30,000 30,000 280,000 Services - - - - - - - - - - - - -

Net Revenues 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 30,000 30,000 30,000 30,000 280,000

Cost of SalesData Center - - - - - - - - - - - - - Service Expense - - - - - - - - - - - - -

Total Cost of Sales - - - - - - - - - - - - -

Gross Profit 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 30,000 30,000 30,000 30,000 280,000 Margin 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Operating ExpensesEngineering 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

% of Revenue 10% 10% 10% 10% 10% 10% 10% 10% 7% 7% 7% 7% 9%Salaries/Benefits 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Other - - - - - - - - - - - - -

Sales - - - - - - - - - - - - - % of Revenue 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Commissions - - - - - - - - - - - - - Salaries/Benefits - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Marketing 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 28,000 % of Revenue 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%Salaries/Benefits - - - - - - - - - - - - - SEM/SEO/PR - - - - - - - - - - - - - Events/Conferences 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 28,000 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

General/Administrative 150 150 150 150 150 150 150 150 150 150 150 150 1,800 % of Revenue 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%Salaries/Benefits - - - - - - - - - - - - - Rent/Office - - - - - - - - - - - - - Legal/Accounting 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Total Operating Expense 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 5,150 5,150 5,150 5,150 53,800

Operating Income/(Loss) 15,850 15,850 15,850 15,850 15,850 15,850 15,850 15,850 24,850 24,850 24,850 24,850 226,200 Depreciation - - - - - - - - - - - - - Interest - - - - - - - - - - - - - Taxes - - - - - - - - - - - - -

Net Income/(Loss) 15,850 15,850 15,850 15,850 15,850 15,850 15,850 15,850 24,850 24,850 24,850 24,850 226,200

Headcount 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Starting Balance 164600 180,450 196,300 212,150 228,000 243,850 259,700 275,550 291,400 316,250 341,100 365,950 390,800 Investment ReceivedEnding Balance 180,450 196,300 212,150 228,000 243,850 259,700 275,550 291,400 316,250 341,100 365,950 390,800

Income Statement Metrics

New Customers 2 2 2 2 2 2 2 2 3 3 3 3 28Renewals (75%) 0 0 0 0 0 0 0 0 1 0 1 0 2

Cumulative Customers 20 22 24 26 28 30 32 34 36 39 42 45 48Average Monthly Fee $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 Revenues per Employee $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 280,000 Expense per Employee $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 4,150 $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 53,800

43

APPENDIX M: KYAMOS FINANCIAL PROJECTIONS 2022

Typical Startup CompanyMonthly Operating Plan: 2022

Income Statement TotalJanuary February March April May June July August September October November December 2022

Bookings (Volume)New 3 3 3 3 3 3 3 3 4 4 4 4 40 Renewals - - - - - - - - - - - - - Services - - - - - - - - - - - - -

Total Bookings 3 3 3 3 3 3 3 3 4 4 4 4 40

Revenues ( Price x Volume)Contract Fees 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 40,000 40,000 40,000 40,000 400,000 Services - - - - - - - - - - - - -

Net Revenues 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 40,000 40,000 40,000 40,000 400,000

Cost of SalesData Center - - - - - - - - - - - - - Service Expense - - - - - - - - - - - - -

Total Cost of Sales - - - - - - - - - - - - -

Gross Profit 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 40,000 40,000 40,000 40,000 400,000 Margin 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Operating ExpensesEngineering 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

% of Revenue 7% 7% 7% 7% 7% 7% 7% 7% 5% 5% 5% 5% 6%Salaries/Benefits 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Other - - - - - - - - - - - - -

Sales - - - - - - - - - - - - - % of Revenue 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Commissions - - - - - - - - - - - - - Salaries/Benefits - - - - - - - - - - - - - Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Marketing 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 4,000 4,000 4,000 4,000 40,000 % of Revenue 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%Salaries/Benefits - - - - - - - - - - - - - SEM/SEO/PR - - - - - - - - - - - - - Events/Conferences 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 4,000 4,000 4,000 4,000 40,000 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

General/Administrative 150 150 150 150 150 150 150 150 150 150 150 150 1,800 % of Revenue 1% 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 0% 0%Salaries/Benefits - - - - - - - - - - - - - Rent/Office - - - - - - - - - - - - - Legal/Accounting 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Travel/Entertainment - - - - - - - - - - - - - Other - - - - - - - - - - - - -

Total Operating Expense 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 6,150 6,150 6,150 6,150 65,800

Operating Income/(Loss) 24,850 24,850 24,850 24,850 24,850 24,850 24,850 24,850 33,850 33,850 33,850 33,850 334,200 Depreciation - - - - - - - - - - - - - Interest - - - - - - - - - - - - - Taxes - - - - - - - - - - - - -

Net Income/(Loss) 24,850 24,850 24,850 24,850 24,850 24,850 24,850 24,850 33,850 33,850 33,850 33,850 334,200

Headcount 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Starting Balance 390800 415,650 440,500 465,350 490,200 515,050 539,900 564,750 589,600 623,450 657,300 691,150 725,000 Investment ReceivedEnding Balance 415,650 440,500 465,350 490,200 515,050 539,900 564,750 589,600 623,450 657,300 691,150 725,000

Income Statement Metrics

New Customers 3 3 3 3 3 3 3 3 4 4 4 4 40Renewals (75%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Cumulative Customers 48 51 54 57 60 63 66 69 72 76 80 84 88Average Monthly Fee $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 Revenues per Employee $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 400,000 Expense per Employee $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 5,150 $ 6,150 $ 6,150 $ 6,150 $ 6,150 $ 65,800

44

APPENDIX N: KYAMOS PROMOTIONAL FLYER

45

APPENDIX O: KYAMOS LANDING PAGE

46

APPENDIX P: KYAMOS QUESTIONNAIRE

Instructions: Please complete the following questionnaire related to engineering multiphysics software by placing an X in the appropriate box.

DO NOT WRITE YOU NAME ON THE QUESTIONAIRE.

YES NO COMMENTS

1. Do you own a personal computer either a desktop or laptop?

2. Which operating system do you use?

3. Do you have access to supercomputing facilities? If Yes, please specify which.

4. How important is a friendly Graphical User Interface (GUI)?

5. Would you prefer a simplistic or complicated graphical user interface software?

6. Would you consider free cloud computing services as an attractive package?

7. Would you mind/care if your data were processed remotely and sent back to you?

8. What do you consider as a reasonable price for a good credible engineering-based software?

9. Would you be interested in participating in free webinars regarding the KYAMOS software product.

10. Would you be willing to pay for participating in seminars either in person or online?

11. In which area of engineering are you currently active?

12. Are you a self-employed?

13. Are you part of a larger organisation?

14. How many hours per day would you/are you willing to spend in using an engineering

47

User Survey Questionnaire for KYAMOS Software

multiphysics based software?

15. A licensing scheme of which the 1st year is free and then you had to pay fee, would it be attractive?

16. Do you find the existing software in the market satisfactory in terms of capability? Please state I do not know, if not applicable to you.

17. Would you be willing to try a new disruptive engineering software as KYAMOS for free?

18. Do you find the existing software in the market expensive? Please state N/A, if you do not know.

19. What do you feel is missing currently from the existing engineering based multiphysics software? Please specify N/A if not relevant to you.

20. Would you be willing to become member of our group and receive newsletters and other promotional information?

21. Would you find introductory seminars in solving multiphysics engineering problems useful?

48

APPENDIX Q: KYAMOS VIDEO ADVERTISEMENT

https://www.youtube.com/watch?v=L8A9OAdEvUs

49

REFERENCESLeh, J. (2014). The 3 Licensing Models of an LMS (or Any Enterprise Software). Retrieved

from https://talentedlearning.com/3-license-models-of-lms/Morrical, K. (2014). 5 Options for Software Licenses: Which One Is Best for Your Business? Research, G. V. (2017). CAE (Computer Aided Engineering) Market Worth $12.8 Billion By

2025. Retrieved from https://www.grandviewresearch.com/press-release/global-computer-aided-engineering-cae-market

Wasserman, S. (2018). Engineering Simulation Software in 2018 and Beyond. Retrieved from https://www.engineering.com/DesignSoftware/DesignSoftwareArticles/ArticleID/16124/Engineering-Simulation-Software-in-2018-and-Beyond.aspx

50