Business Plan

Micha Kakoun
Cell : 052-3316571
eMail: michael@cliclock.com

May 2007

Prepared by Yafit Rossen

www.Israel-Business-Plan.com

Disclaimer
This document details Cliclocks business plan for initiating a new
portal for analogue wristwatches widgets that are built for desktop PCs,
mobile devices and virtual wristwatches. Cliclock will create a market
place for users to consume, create and enjoy high quality analogue
wristwatch designs, both user generated and branded by commercial
companies. The document outlines the need and the opportunity in the
market, Cliclocks unique solution, and benefits for users and watch
manufacturers. The document also details financial forecasts of the
proposed operation for the next 5 years based on assumptions, market
data, and companys opinions.
The Business Plan is built to reflect in a reasonable and rational way, a
plan that is accurate for a certain time, based on known information,
assumptions and forecasts of the company. As all business plans, its
results are based on information that was available at the time of
preparation, by its accuracy, and its reliability and based on the
assumptions made. Changes in the economical factors as well as
additional information or various economic or business events, can
change the assumptions and as a result also the conclusions.
The business plan itself is not a guarantee for its execution. Therefore
it is possible that the business plan will not be executed as planed.

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Index
1. Prologue..................................................................................................
2. The rise of the Widgets............................................................................
3. The Opportunity.......................................................................................
4. Cliclock Widget ecosystem......................................................................
4.1 Clickclock.com.............................................................................
4.2 "Do it Yourself"...........................................................................
4.3 Design Competition...................................................................12
4.4 Downloading widgets.................................................................12
45. C-Watch the Virtual Wristwatch...............................................14
5. Business Model................................................................................
5.1 Premium Widgets..................................................................17
5.2 Free Widgets.............................................................................17
5.3 Advertising Revenues................................................................19
5.4 'We Donate' scheme..................................................................19
6. The Market.............................................................................................
6.1 Desktop Widgets........................................................................20
6.2 Mobile Widgets..........................................................................21
6.3 Japanese market.......................................................................23
6.4 Watch Industry...........................................................................23
7. Operation Plan.......................................................................................
8. Financial Forecast.................................................................................
8.1 General......................................................................................28
8.2 Cliclocks widget downloads......................................................28
8.3 Revenues Forecast....................................................................30
8.4 Manpower..................................................................................30
8.5 R&D Budget...............................................................................31
8.6 The Sales & Marketing budget...................................................31
8.7 The General & Administrative Budget........................................31
8.8 Profit & Loss & Cash Flow Forecast..........................................31
8.9 Financial needs..........................................................................33
9. About the Founder.................................................................................

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1. Prologue
Every year, a new phenomenon paves its way as the next evolutionary
step on the Internet. Each such phenomenon emerges from the
trenches of geek users, and in a short time turns mainstream, resulting
in the creation of enormous end-user value and satisfaction, as well as
pure business and commercial adoption. At the beginning, the
magnification of these new concepts is unseen by most, but their rise
is fast and undisputable. Such has been the rise of Instant Messaging,
File Sharing, Social Networks, Voice-over-IP, Blogs, Photo & Video
Sharing, and more. While the term "widget" has yet to be heard by
most internet users, year 2007 has been already foreseen by
NewsWeek magazine to be the "Year of the Widget.
Suddenly, from all directions, Widgets are taking the front stage.
Google claims its fastest growing business unit is iGoogle, a
personalized homepage where users can customize their "google"
homepage with a wide array of functional and/or entertaining widgets.
Microsoft launched recently its new Vista operating system with built-in
Widget galleries. Apple and many Linux distributions lead this
phenomenon by promoting the creation and distribution of Widgets
through their websites. Open source platforms (blogs, wikis, CMS, etc)
such as Wordpress and alike are also promoting the creation and use
of Widgets, as well as leading Browsers such as Opera, FireFox,
Safari, etc., and all the major social networking sites Facebook,
Myspace, Orkut to name a few.
Businesses are suddenly embracing widgets as a new source of
increasing brand loyalty and engaging users with their service or
products. Amazon.com just launched widgets to let customers show off
their favorite Amazon products on blogs, websites and social
networking pages. USA Today offers online users the ability to install
widgets on their blogs and personal web pages that contain news
updates and other information from the newspaper. Theres even a
conference where marketers can gather to talk about the latest in
widgets.
As happened with previous novel concepts on the internet, they where
soon discovered to be more than just "a new free thing on the block".
They were in fact disruptive technologies that changed an industry in
depress, and made it adapt to the new digital free world, and adapt its
business models in accordance. Such has been the case of filesharing and the music industry; blogs and the newspaper industry;
Voice-over-IP and Instant Messaging and the telecommunication
industry; Video sharing and the movie industry; and so forth.
Like the aforesaid above, Widgets are more than just a slick fancy
decoration for their desktop, mobile handset or blog. It's a disruptive
technology that is posed to bring change into traditional industries just
as happened in the newspaper industry, music, movies, etc.

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Cliclock is a unique widget platform that is positioned to lead this

disruptive change in the traditional Clocks & Watches industry. Through
its unique business model and holistic web and mobile proposition, it
will enable the clock & watches industry leverage this unique marketing
channel to enhance their brand recognition and monetization, and in
addition migrate to the 'virtual clock' world and profit from it
tremendously.

2. The rise of the Widgets

"Breaking down the Web into small, portable pieces is the smart trend that
everyone from Nokia to Google is betting on." (Om Malik, Business 2.0
Magazine, October 2006)
Widgets are small applications that deliver information from the web to
your computer, mobile, PDA, blog, social networking page, etc... If you
frequently use a computer whether at home or at work, chances are
there are certain web sites that you monitor throughout the day - to
check e-mail, weather, stock portfolios or sports stats. Widgets relieve
the user from the formal way of surfing which takes multiple steps to
track down headlines in one place and then check for e-mails in
another. Such an woefully outdated method paved way to the rising
popularity of "Widgets".
These mini-applications - Widgets (also dubbed gadgets or
dashboards) which were named so after "Window Gadgets", are
simple bits of code, easily dragged or downloaded and installed onto a
desktop or mobile phone, or pasted into a personal page, where they
are constantly updated with whatever information you want, or
whatever design you choose.
Its the exact opposite of what the web "used to be. Widgets bring the
web to the user, and not vise versa. In essence, it is what was once
referred to as "Push Technology". Moreover, analysts proclaim that
"widgets could signal the end of the 'page view' as a metric for
measuring a sites popularity" since these widgets are Always-On, and
refresh the data constantly, resulting in enormous page-views.
The mobile widget is a web application that is installed directly on the
mobile phone, so all the images, design and code is already on the
phone and can therefore be much bigger and spectacular than if it
needed to be loaded each time through a 3G or GPRS network
connection.
Another very important aspect of the widget environment is that the
run-time environment can do things a regular web browser is not able
to do: widgets can get access to the desktop/mobile device API and
consequently can interface to the PC or mobile phone hardware such
as GPS or camera and other applications like the calendar or contact
manager.

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Desktop (PC) Widgets:

Mobile Clock Widget:

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3. The Opportunity
Across the board, from desktop widgets, to mobile widgets, continue to
web widgets, one of the most popular widget categories is "Date &
Time". Within this category, by far the most popular sub-category is
"Analogue Watches".
Watches and clocks are one of human's oldest inventions. Throughout
time and history, they have evolved in parallel with man's technological
advancement. Today, the most common type of watch is the
wristwatch, worn on the wrist and fastened with a watchband made of
leather, nylon or other plastics, metal links or even ceramic.
In the late 20th century, the Clocks & Watches industry suffered from a
new technological turbulence digital watches. The introduction of
digital watches shattered the prices of convenient watches, placing the
now expensive analogue watches as a fashionable worn "jewelry"
class of its own.
With no ability to compete on price, the analogue watch industry
emphasized the design and clarity of time presentation (in contrast to
the digital format), and positioned the watches as jewelry in addition to
their time-keeping function. This worked well in the high-end of the
market with luxury brands such as Rolex, Omega and alike that were
perceived as status symbols, and also in the mid-range market with
brands such as SWATCH, Tag Heuer, and others which were
perceived as fashionable designed goods.
Nonetheless, in recent years, the industry was taken by surprise by
another turbulence - mobile devices. These communication devices
are carried by users all day long. If digital watches shattered the prices
of watches, mobile devices practically evaporated prices altogether
because some people, mostly young, stopped buying watches and
started to use their mobile device as their time-keeping instrument.
According to a Los Angeles article, "young shoppers are shunning
watches for snazzier time-telling gadgets, such as cellphones and
iPods." According to the article, "the number of people who bought
watches not in the Rolex and Patek Philippe stratosphere dropped
12% from 2004," and the favorite brand for teens, Fossil,
acknowledged an 18.6% decline in wholesale U.S. sales of its
namesake brand.
A report from Piper Jaffray found that "teenagers who said they never
wore a watch rose to 59% from 48%. The number of teens who said
they wore a watch daily declined to 13% in this spring's survey,
compared with 18% of those polled in the fall. And 82% said they didn't
plan to buy a watch in the next six months, compared with 76% last
fall." Rob Callender at Teen Research Unlimited found that 87 percent
of teens use their mobile handsets to tell time.

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As Neely J.N. Tamminga at Piper Jaffray said, ""No matter how you
sliced the data, it looked incrementally worse for the fashion watch
industry when catering to teens." However, not all consumers are
teens, and not all people live in developed countries as the completely
different overall picture clearly demonstrates.
Nonetheless, against the general market belief, in recent years Swiss
Watch Industry has actually been growing by whopping double digits
year after year. Swiss wristwatches exports recorded an increase of
11.6% in value terms during 2006. The number of pieces exported
showed a very positive trend, with an increase of 6.7% in volume
terms, taking the monthly level to more than 2 million watches. Most of
this growth is fueled by the sudden increase in wealth in S.E. Asia
countries, with China leading the wave.
But even in western countries, people are not abandoning analogue
watches altogether. Most continue to buy luxury designed watches as
a status symbol (i.e. jewelry), while others are simply migrating to a
new online "digital" alternative, just as they did with music (e.g. from
physical CDs to digital music files), or news (e.g. from physical
newspapers to digital content), etc.
Both people that still wear wristwatches and those that don't, still want
to position their favorite watch design on their desktop computer for
continues timekeeping, decorate their blogs with their favorite watch
design, and "skin" their mobile with their favorite analogue design.
These are not physical products, but rather "virtual" watches or more
commonly known as "widgets", with one major characteristic
DESIGN.
Widgets are the new "mass public" clocks & watches of the 21st
century, while the "real thing" is left for the "status" holders. Widgets
come in cheap to produce (i.e. software code) and distribute (i.e.
internet, SMS links, etc.), multiple designs, skinable and easy to switch
from one design to another, recognizable, viral (i.e. send by email
attachment, MMS, Bluetooth, etc.), and above all people LOVE them.
They love their design, and they associate strongly with their brand
and what they represent.
Clocks & Watches is a huge multi billion Dollar DESIGN business. It is
a growing business, based on strong brand recognition and
association that enables it to charge premium prices in both developed
and developing countries, while positioning itself as a status item.
However, the new millennium holds great opportunity to reach the
mass public with cheaper virtual watches. And like in the aforesaid
internet revolutions, cultural consumption trends that derive from new
technologies traditionally appeal to the mass public and can
significantly enhance the recognition and sales of the real goods, may
it be a movie that suddenly becomes wildly known, or a new song or
a clock.
Cliclock is about to lead the watch industry, safely and profitably,
into this new digital millennium.

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4. Cliclock Widget ecosystem

Cliclock is an ecosystem for virtual analogue watches, namely "Clock
Widgets". It promotes the distribution and brand association and
consumption of analogue watches widgets for desktop PCs, mobile
phones, and at a later stage for physically worn LEDs that act as a
skinable virtual wrist-watch presenting any watch design as if it was the
real mechanical thing".

4.1 Clickclock.com
Cliclock.com website will serve as the leading portal for analogue
watches widgets for both desktop PCs and mobile phones. The portal
will feature both branded designs (SWATCH, Tag Heuer, U BOAT, IWC,
ORIS, FRANCK MULLER etc.) and unique designs prepared by
Cliclock's designers, and later-on by the users themselves (i.e. User
Generated Content through the "Do It Yourself" feature). The site will
be in English, and will later be translated into other popular languages
to better target and serve audiences of countries with large population
and enhanced mobile penetration, such as Germany, France, Spain,
etc.
Cliclock will also launch a localized version of its website for the
Japanese market due to its overwhelming potential. All the designs,
features, content and contests will be the same as in Cliclock.com but
the Cliclock.jp site will be in Japanese by default and emphasize
mobile widgets as its main entity because Japanese mobile browsing
is much more progressive than in other western developed countries,
and already surpassed the desktop market by a magnitude.
The Japanese market has traditionally shown great interest and
adoption to gadgets on one hand, and to design fashionable branded
goods such as watches, jewelry and electronic games. Combined the
phenomenal adoption of mobile internet places this market as a zone
of its own, in many respects equivalent in size and potential to the rest
of the world combined.
The widgets will be based on Flash Macromedia technology (available
for PCs running on either Windows OS, Apple OS, and Linux OS) or
Flash Lite technology (available for mobile handsets running on either
Symbian, Windows Mobile 5.0 and above, or forthcoming Android. It is
the most widely used mobile multimedia client, embedded in more than
500 million mobile phones as of Feb 2007).

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PC widgets will have a variety of features such as send to a friend

(for enhancing viral effect), along with direct access to Cliclocks
website for various types of interactions such as learning more about
the design/creator, switching to a different watch design, upgrading,
reminders, brightness, show/hide button, alarm clock, barometric
information, world time, switching ringing types, etc. The widgets will
synchronize the date and time with that of the PC and will feature a
cute animation every round hour.

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4.2 "Do it Yourself"

Cliclock.com will also include a Do it Yourself section where users will
be able to design, download to their own desktop/mobile or share their
designed analogue watch widgets with the rest of the Cliclock
community. The Do it Yourself section is a practice that involves a lot
of fun, creation and fulfillment by the users, especially when their
designs receive the appreciation of the community and get to be
downloaded extensively. Cliclock will also feature more niche and
specialty clocks such as numerological clocks, for the more intrigued
community members.

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4.3 Design Competition

In addition, Cliclock will include a Design Competition which will
facilitate user generated designs. The Design Competition will run on a
periodic basis once every 3 months, and will be sponsored and
facilitated with a known brand, that will color the competition in the
design prospects of that specific brand. Each competition will be
sponsored by a different brand, thus the design elements and
characteristics will change from one competition to the next.
Cliclock together with a known watch brand-name will embrace leading
designers from within the community and offer them job offers and
other incentives that will be mutual beneficial and highly respective as
part of Cliclocks Designer is Born initiative. The foundations of such
programs as Designer is Born have already become a standard on
TV shows (American Idol; The Apprentice; etc.) and also on the
internet, with known bloggers receiving job offers from online media
publishers, advertisement creators receiving top $ prices and
recognition of their ad in the media (e.g. including user generated ad
that went all the way to the SuperBall by Doritos), etc.

4.4 Downloading widgets

Cliclock.com will feature branded designs on its homepage, from which
a visitor can choose. With a click of a button, the user reaches a page
with display of the various types of available designs of the chosen
brand. The visitor can choose to download a widget of his choice either
to the PC or to his mobile device.

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Downloading to the PC simply involves a clicking a "download" link,

while downloading to the mobile device may vary between 2
possibilities (see enhancement in the business model section):
i.

A FREE (subsidized by the brand) Widget the user simply

writes his phone number and an SMS containing a direct link
for downloading is sent to him.

ii.

A Premium Widget the user is told to actively send an SMS

to a specific phone number (the user is then charged based on
this SMS), and as a reply he receives an SMS containing a
direct link for downloading the widget.

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45. C-Watch the Virtual Wristwatch

As the clock widgets world mature and become part of users daily life,
a new phenomenon is expected to rise virtual wristwatches. Just as
skinning a mobile device with a clock widget, these simple LEDs are
worn on the hand just as any wristwatch, but they are completely
skinable to the real physical appearance of the original wristwatch
i.e. they have the ability to present and switch between any digital
design, and thus look identical to the real physical design.
Dubbed as C-Watch, the virtual wristwatch (patented by Cliclock)
consists of:
Harware a wristwatch, processor, internal/external memory
unit, Bluetooth/USB cable, touch screen, buttons, speaker.
Software operating system, widget software, synchronization
software for the desktop PC.
As a distributor of clock widgets, Cliclock will benefit tremendously
from this trend, alongside its partners from the watch industry which
will be able to widen their market exposure, better compete among
themselves on design, compete with mobile handsets becoming an
alternate to wristwatches, and thus also market the real genuine
wristwatches and their brands.

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Page 15 of 38

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5. Business Model
Clicock is in essence a platform that serves the various clock
manufacturers either as a sales channel by selling branded widgets, or
by enhancing their brand recognition and awareness by mass
distribution of subsidized free widgets for the mass public.

5.1 Premium Widgets

Top-notch brands that are recognized by most people such as Rolex,
Omega and alike are more likely to choose the Premium Widgets rout,
where users are charged for any widget download and revenues are
split among the parties Brand, Cliclock and cellular operator. The
retail price for a branded widget will be $6, of which the cellular
operator normally requires 50% (i.e. $3 per each download) and the
reminder is split between Cliclock and the Brand.
While some brands will choose this rout in order to monetize their
brand name, the amount of free (i.e. subsidized by the brand) branded
widgets downloads is projected to overshadow the amount of retailed
priced widgets since it is simpler and free in the users' perspective.

5.2 Free Widgets

With free branded widgets, end-users receive a valuable and stylish
free of charge product. However, this also brings a huge value to
branded watch manufacturers. For the hundreds of unrecognized
brands within the watch industry, Cliclock brings an overwhelming
value through exponential market awareness of their various unique
watch designs and instant brand recognition. Without Cliclocks
platform and services, such market awareness would be virtually
impossible for the watch brands to achieve using any traditional
marketing channels, online and offline, above or under the line
marketing, and at any marketing budget. For the watch industry this is
another marketing channel, only with much higher return than
traditional advertising and marketing channels.
Moreover, Cliclocks platform and the services it provides to the clock
manufacturers sets the ground to an impulse purchase channel to the
potential users (versus the current "shopping around" purchasing
pattern) and it sets a constant reminder to the potential buyers, being
in front of their faces, by their wish 24x7, either on their desktop
PC/laptop, mobile cell phone, and later on through the virtual
wristwatch.

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Cliclock will present watch design collections of various watch brands

on the Cliclock websites, and promote their download and installation
by its community of users and visitors. For each user that downloads
and installs a branded design widget, Cliclock will charge the brand
manufacturer a constant one-time fee. Desktop widget fee is expected
to be $0.5 while a mobile handset widget which is more "valuable" to
the watch manufacturer due to the viral effect of the user's friends
seeing and imitating him will be priced at $1.5 per installation. In
essence, the more people download the free widgets, the more
revenues that Cliclock receives from its partner watchmaker brands.
Today, a co-registration lead on the internet can cost anywhere from $1
to $10, and a single cost-per-click on Google Adwords for the keyword
"watches" costs $1, while the keyword "swatch" costs $0.5 (i.e. for the
cost of 1 click, a brand manufacturer already has his full design
installed on the potential buyer's desktop or mobile device). In light of
this, having a fully branded watch design in the face of a potential
buyer all day long, 7 days a week, for the cost of merely $1-$1.5, with
all the direct sales opportunities (through a clickable link on the widget
to a sales page) and impulse purchase and viral effect, is an
opportunity that branded watch manufacturers are not likely to
disregard.
In practical terms, this means that an average watch manufacturer
which sells 40,000 wristwatches per year for some $20M in revenues
can place merely $1.5M in marketing of widgets (7.5% of his
revenues), and can suddenly have an enthusiastic community and
viral marketing tool of 1,000,000 people around the world, going
around with mobile handsets skinned in the design and brand of the
clock manufacturer, and a direct sales channel to these community of
enthusiastic potential buyers (for more market snapshots see the next
chapter).

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In order to magnify its reach to mobile users, Cliclock will sign indirect
distribution agreements with cellular operators (through a third party
that already has distribution agreements with many cellular operators),
splitting its revenues with them for each branded widget that is
downloaded through their "closed gardens" where most mobile surfing
occurs. This is a tremendous opportunity for mobile operators since
these widgets have a business model behind them, and because they
appeal to their entire audience (in contrast to games or wallpapers that
appeal only to partial audience).

5.3 Advertising Revenues

In addition, Cliclock will enjoy advertising revenues from its websites.
The company estimates it can achieve a high advertising price in the
range of $60 CPM (cost per thousand banner impressions) in contrast
to market norm of non-focused audience ranging at $5-$10 CPM. This
is very realistic since Cliclock has only one banner per page (versus 56 banners in a normal page, each costing some $15 CPM on average),
and due to the highly focused audience of its websites.

5.4 'We Donate' scheme

Cliclock plans to co-operate with various organizations that are active
for the benefit of the community and the environment in large. In the
'We Donate' category, various designs will be available for purchase
while the revenues from these purchases will be shared with the
aforesaid organizations. These will possibly include organizations such
as: Greenpeace, Save the Dolphins, Red Cross, Doctors without
Boarders, Unicef, etc.
Beyond the financial contribution that this mechanism provides to such
organizations, it also serves as a major source of added value to
Cliclock. This is so due to the placement of backlinks in the websites of
these organizations (i.e. higher ranking in search engine, and derived
visitor traffic from these websites), and through the exposure it
provides to Cliclock's products. Having backlinks and download links in
clock brands' website also achieves this same added value and
increases the amount of visitors and downloads.

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6. The Market
Today, there are over 2.7 billion mobile handsets worldwide. This is a
staggering x2 the amount of fixed land lines, x3 as many PCs, and
nearly x2 as many TV sets, so even though in percentage points PC
and laptops are the dominant means for applications, in absolute
numbers mobile is approaching this number very fast and is due to
bypass and become the premier media and applications device within
the coming years.
During 2007 the first PC to Mobile cross-over is occurring, with more
users accessing the internet via mobile phone than PC. As an always
on & always carried device, it is not surprising that the Japanese
regulator reports that those who access the web via mobile phone do
so more frequently than those who access via a PC. Similar data now
coming from several converged (broadband and mobile phone) web
services like Flirtomatic in the UK. It's no wonder Google's new CEO
Eric Schmidt, says the future of the internet is mobile.

6.1 Desktop Widgets

Through 2005 and 2006, Internet growth has maintained an aggressive
pace; the US alone reached over 205 million active Internet users by
the end of 2006. Globally, Internet usage is growing at a faster rate as
European adoption rates approach US levels and major Asian markets
continue to gain momentum. This growth in high-speed access has
created unprecedented consumer demand in Internet-distributed rich
media, with Widgets taking front stage, and "personal
taste"/personalization replacing the old "fit for everyone" attitude.
Desktop Widgets have gained popularity in parallel to high-speed
access, the wider acknowledgment and the rise of browser plugins,
particularly Firefox. Suddenly, users were amazed by the wealth of
opportunities embedded in these small plug0ins that are so easy to
download through the browser's download manager, update at will, and
use as an add-on feature. Plugin creators on the other hand, found
fertile ground for easily creating small applications and distributing
them through the browser built0in mechanism. From there, the
evolution towards desktop "plugins" dubbed widgets, gadgets,
dashboard and a host of other names was short.
Today, desktop widgets are a rising thing. The distribution of desktop
widgets has gained phase with the new Apple Dashboard, Microsoft
Windows Vista Sidebar, Google Desktop Gadgets, and the first market
mover Yahoo! Widgets (which is based on acquired company
Konfabulator). However, desktop widget market is still in its infancy
stages, with none of the platforms presenting any business model, and
with no specialization or focus on any section (e.g. finance, date and
time, etc), thus it's a bit of everything.

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The main desktop widget distributors in the market are

Dashboard - the widget engine released with Mac OS X v10.4.
Google Desktop - a free utility that helps a user search their
desktop for files and includes gadgets/ widgets for the desktop.
Kapsules - a free project for Microsoft Windows that first aimed
to replicate the above Mac OS X v10.4 functionality, and is now
compatible with many scripting languages.
Klipfolio - a free desktop dashboard and sidebar application for
Microsoft Windows that uses user contributed Klips.
Microsoft Gadgets - a free desktop tools for various purposes,
such as weather information, text messaging, and gas prices.
The Opera Browser - supports widgets and has a library of
user-created widgets available for download.
SpringWidgets - the first widget engine that works on the
desktop, in blog sidebars and MySpace pages using the same
file. It is owned by Fox Interactive Media and allows a user to
"pop" widgets off the page if you have the engine installed".
SuperKaramba - the widget system for KDE, and has been
added to the core releases thereof. The ideas present in it have
been added to Plasma (KDE), the new panel system for KDE 4
(Linux distributions).
Yahoo! Widget Engine (previously known as Konfabulator) Yahoo's widget engine, which allows their widgets to be
displayed directly on the desktop, or on a splash screen, similar
to that of Mac OS X's
NewsGator - provides the NewsGator Widget Framework, a
platform for creating ad-based widgets that integrate with a
publisher's analytics and ad systems.
All the various widget distributors and platforms above are competitors
to Cliclock's offering. However, Cliclock's focus on the Date & Time
category, along with its branded widget collections and stunning
business model set it apart from the lot and position it as a class of its
own.

6.2 Mobile Widgets

2008 will mark the start of a new paradigm in the way people access the
Internet on the move = mobile widgets. (David Pollington, Vodafone Group
R&D, May 2007)
The first to implement a working mobile widget engine was Opera back
in October 2004, it was called Opera Platform. While the Opera
Platform was hard to install and more or less a proof-of-concept
approach, Opera 9 for mobile, the browser that is soon to be released,
also features widgets and comes pre-installed in many devices.
New versions of the Netfront browser and the OpenWave MIDAS
project are announced to feature support not only for Ajax, but also for
widgets. This shows that all major browser vendors in the mobile area

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have realized the importance of Ajax and widget support (e.g. critical
mass).
On April 16, 2007 Nokia announced their S60 platform would support
widgets in subsequent releases, and while nobody has really seen it
yet, as it looks Apple's iPhone will not only feature Ajax powered
widgets, but widgets will be the iPhones main way to add applications
to the device.
While all hardware manufacturers are laying the necessary foundations
and hardware support for mobile widgets, and while some
manufacturers and mobile browsers such as Opera distribute a handful
of bundled widgets with their product, mobile widgets market is still a
market in potential only. There are 2 main reasons for this:
1. Technical barrier there are 3 different leading mobile
operating systems (i.e. Symbian; Windows Mobile; Brew) and a
forth new entrant by Google (dubbed Android), with each
manufacturer having dozens of different mobile handsets, each
of which needs the application to be designed according to its
operating system and well as unique characteristics (e.g.
screen resolution, memory, internet connection, etc). Today, the
authors of most widgets available are private creators without
the means and resources to adjust their widget to dozens of
different handsets. As a result, these widgets match only a
handful of mobile phones. Moreover, due to the lack of
hardware support until recently, not many mobile widgets have
been created to-date
2. Distribution barrier today, most mobile content and
application downloads are performed within the mobile
operators' "closed gardens" (i.e. users browse the operator's
internal portal and consume content from it rather than surf
outside the portal to the vast web in search for mobile specific
content). Since mobile operators have no interest in adding free
content/applications into their closed gardens, and since mobile
widgets as a B2C venture had no business model behind them
until now, they have not been embraced by the mobile operator
community for wide distribution.
As a result of the above, Cliclock does not see any current direct
competitor in the mobile market. The few non-branded clock widgets
distributed by the various vendors (i.e. Nokia, Opera, etc) are seen by
the company as a market opening, in which these vendors bring the
users to the attention that such widgets exist, thus opening awareness
and ultimately bringing them to Cliclock's unique branded stylish
designs.
In this yet premature market, the current major Mobile Widgets
distributors are:
Opera - supports widgets and has a library of user-created
widgets available for download.
Webwag - widgets on mobile
Widsets - application that brings UI widgets to mobile phones.
Page 22 of 38

Joemoby - The first J2ME mobile engine to be compatible with

the W3C draft standards for Widgets (XHTML/CSS/AJAX).

6.3 Japanese market

Cliclock plans to localize its website and products to the Japanese
market. This will open the company an opportunity of 130 million
Japanese. Japan is the world's second largest economy (after the
United States, at around US$4.5 trillion in terms of nominal GDP). It is
also the world's largest international creditor and the sixth largest
exporter and importer and a member of the United Nations, G8, and
APEC. Japan is also a leading nation in the fields of scientific research,
technology, machinery, and medical research with the world's third
largest budget for research and development at $130 billion.
The Japanese population is technology oriented with a high use of
gadgets and has one of the most advanced mobile markets in the
world. Walk down the streets of any urban centre in Japan and you'll
see the same picture over and over again. People with cell phones
either glued to their hand or to their ear. This huge market with high
adoption for new technologies and mobile penetration is a real
opportunity for Cliclock. Japan has today over 100 million mobile
handsets, of which 90% support Cliclock's widgets technology.
During 2007 the first PC to Mobile cross-over will occur, with more
users accessing the internet via mobile phone than PC. As an always
on & always carried device, it is not surprising that the Japanese
regulator reports that those who access the web via mobile phone do
so more frequently than those who access via a PC. Similar data now
coming from several converged (broadband and mobile phone) web
services like Flirtomatic in the UK. It's no wonder Google's new CEO
Eric Schmidt, says the future of the internet is mobile.
With such a huge audience that is so equip to mobile applications and
is so hooked on gadgets in general and stylish branded watches in
specific, and with no direct competitor in this market, Cliclock sees a
huge potential in this market, both for mobile widgets, as well as
desktop widgets.

6.4 Watch Industry

The Clocks & Watches industry has traditionally been a Swiss
dominated industry. While manufacturing has shifted over the years to
developing countries such as China, the core craftsmanship which is
the basis of this 5 century old industry, and the associated knowledge
and know-how remains largely in Swiss hands.
Today, the clocks & watches industry is Switzerlands 3rd largest
exporter, with exports of 25 million wrist-watches per annum, which
account for 14 billion Swiss Franks of exports per annum (over 11
billion USD).

Page 23 of 38

Historically, the Swiss watch and clock industry has always had a
specialized horizontal structure in which suppliers, craftsmen and subcontractors supply movements and external parts to assemblers called
"tablisseurs", who put the final product together. However, to a lesser
extent, the industry has also developed a vertically integrated structure
in which watches and clocks are sometimes made entirely by the same
company, in this case called a "manufacture".
During the 1970s and early 1980s, technological upheavals
(appearance of the quartz technology) and the difficult economic
situation resulted in a reduction in the size of the industry: the number
of employees fell from some 90,000 in 1970 to a little over 30,000 in
1984, a figure which has remained stable over the years (40,000
employees in 2004) while the number of companies decreased from
about 1,600 in 1970 to about 600 today. With 24.9 million wristwatches
shipped per year, an average watch manufacturer sells about 40,000
watches per annum at an average price of $410.
The average number of employees per company has remained
constant, at just under 70 people per company in 2004, as in 1970.
The great majority of watch companies are small sized companies
(employing less than 100 people) while a very little number (less than
10) are each employing over 500 people.
With their worldwide reputation for quality and styling, Swiss watches
are not however the only ones to compete for the flavors of customers.
They have many competitors in the markets, the most serious of these
being the Japanese and Hong Kong producers. However, most of the
competition from other countries such as China, Hong Kong, etc.
targets the low-end of the market, as elaborated hereunder.
China exported the largest number of wrist watches in 2006 with 691.6
million units. This was 14% down on 2005 and the second successive
fall on this scale for China. Hong Kong followed the same trend with a
14% decline to 521.1 million pieces. Far behind the Asian producers,
Switzerland ranked third with 24.9 million wristwatches. Volumes were
2% higher.
Main watch exporting countries:
Countries
China
Hong Kong
Switzerland
Germany
USA
France
Japan

Units shipped in millions

691.6
521.1
24.9
13.5
7.3
4.4
3.6

Change in % in 2006
-14%
-14%
+2%
+22%
-23%
-11%
-7%

Page 24 of 38

The large quantities of wrist watches exported by China consisted for

the most part of electronic timepieces. Their average export price was
1 dollar, unchanged on 2005. In the case of Hong Kong, the
corresponding price was 8 dollars. Swiss watches do not fall in to the
same category.
Their average export price rose once again to pass the 400 dollars
mark (at 410 dollars). Germany reported an average value of 60
dollars close to the United States with 65 dollars.

Page 25 of 38

7. Operation Plan
Cliclock is in progress of filing provisional patents on its unique widgets
and C-Watch virtual wristwatch design concepts. These will cover
North America, Japan, Europe and Israel. has filed for 3 patents. In
addition, Cliclock has already designed the website look & feel, and
has set the ground for working together with a marketing firm that
specializes in search-engine optimization and marketing, and with a
mobile specialist for support for its mobile widget development and
DRM.
Cliclock has adopted a guerilla approach of running to the market with
a moderate development budget, supported by a compelling business
offer. Commencing the fund raise of $150,000 that will support
Cliclocks development and marketing activities, the company plans to
initiate and complete its website development within 3 months, and
also design a series of some 50 widget that will enable it to open shop
to the vast public.
The website will enable scrolling among brands and widgets,
downloading a widget to the PC or mobile, billing mechanism, sending
of download links via SMS, and also widget templates for the 'Do it
Yourself', for both desktop PCs, and the for Mobile cell phones.
The focus in the mobile arena on Macromedia Flash Lite 1.0 is not
accidental. Macromedia Flash, the mobile version of Flash client for
PC, is owned and promoted by Adobe, the leading multimedia enabling
technology developer. It's flash Lite for mobile phone is embedded in
most 3G phones, and supported across manufacturers and different
operating platforms. All mobile devices shipped today by NTT DoCoMo
support and ship with Flash Lite pre-installed in them, and are a
primary target market for Cliclock mobi. Cliclock will launch its mobile
widget platform based on Flash Lite 1.0 (while the current version is
flash Lite 2.0, and version 3.0 is said to be on its way out to the
market).
Cliclock will later recruit a Japanese marketer to tailor its marketing
efforts and advertisements to the local Japanese market. In addition,
as the act gets together with the website in place and the Widget
templates ready, Cliclock will hire initiate contacts with the various
Swiss watch manufacturers.
The focus on the Swiss watch manufacturers makes it much easier for
Cliclock, as there are basically 600 potential clients, each with less
than 100 employees (i.e. it is easy to reach the marketing manager/
decision maker), and with an average turnover of roughly $20M each.

Page 26 of 38

8. Intellectual Property
Cliclock has filed a patent on 3 related inventions to the US Patent
Office. These 3 patent applications consist of:
1. The first among the 3 provisional patents that was filed by the
company refers to the Business Method developed by the
company and is dubbed Pay-Per-Clock. This type of patent is
applicable only in the USA.
2. The second among the 3 provisional patents that was filed by the
company refers to a skinable clock in which a mobile device or
any other electronic means with a display (e.g. iPod, wall clocks,
PDAs, etc) can display a skinable and configurable watch design.
3. The third among the 3 provisional patents that was filed by the
company refers to a display, with skinable attributes, such that
make it a virtual wristwatch.
The company will strive to develop these provisional patents into a
valuable portfolio of intellectual property assets that cover both the
technological aspects as well as the business methods of its operation.
This patent portfolio is well balanced and consists of all 3 aspects
involved in this industry business method (patent application #1),
software (patent application #2), hardware (patent application #3). This
will enable the company in the future to create an eco-system of watch
design, through its marketplace of designs, along with licensing its
virtual watch technology to watch manufacturers.

Page 27 of 38

9. Financial Forecast
9.1 General
Cliclock's financial forecast was drawn for a 5-year period starting from
the end of the initial fund raising. The first year was presented in
quarters to enable better insight of the initial stage cash-flow and
expense pattern. All figures are stated in thousands of US Dollars.
The default business model is of brand subsidization. There is no
ability to know in advanced how many brands will chose the free rout
(in which they market their brand name) versus those that will chose
the premium rout (in which they monetize their brand name). The
assumption is that most will choose the free rout since is provides the
best value for money as it both increases their public awareness and
enhances their indirect sales. However, for conservative reasons, the
P&L section also includes a proforma P&L of Premium of premium rout
only.

9.2 Cliclocks widget downloads

The company will bring traffic to its website using various marketing
channels: PR (Public Relation) activity using articles, bloggers etc. to
create awareness of its new service which is totally free for the end
user! In addition the company will use SEO (Search Engine
Optimization) to position its websites in the first page result of relevant
keyword searches (i.e. watches, clocks, etc.). The company plans to
hire a professional company that specializes in SEO activity.
The main traffic is expected to come from advertisements using
banners and adwords (based on pay per click model) in different
websites and search engines. These marketing activities will be done
in cliclock.com and cliclock.co.jp separately.
Widget downloads to mobile devices will come from business
development activity with brands (i.e. placing download links on their
websites), mobile operators and content companies that will promote
these downloads in their closed gardens portals for a share in the
revenues, community and donation websites that enjoy a share of the
revenues and will be encouraged to promote this, and so forth. In
addition, users that visit cliclock.com and cliclock.co.jp are also
expected to download their favorite clock widgets to their mobile
devices.
Based on the marketing strategy, the company plans to bring about
49,000 new visitors in the first quarter of Cliclock.com release, climbing
with the aid of internet campaign, heavy PR and word of mouth to
140,000 visitors in the second quarter and totaling 459,000 in the first
year. In the second year, the company estimates 3.5M visitors to its
website, rising to 10.7 million in the third year.

Page 28 of 38

The financial model assumes that 1 of every 20 visitors (5%) will

download a PC widget
The financial model assumes that 1 of every 10 visitors (10%) will
download a mobile widget since it would be the more 'attractive'
package. This is an average number, and obviously will be higher in
some countries such as Japan, and lower in others.
Based on these assumptions, PC widget installation is expected to
grow from 22,950 in the first year, to 199,950 during the second year,
and up to 3,343,950 by the end of the fifth year. Mobile widgets will
grow from 152,847 installations in the first year, to 2M during the
second year, and up to 23.7 million during the fifth year as presented in
the chart below.

These are conservative estimates for the installation of such a wealth

of widget designs compared to current market analogue watch widget
consumption, for example:
Opera Widgets has an analogue watch widget, barely
designed, that has been downloaded and installed by 799,052
people within less than 2 years (from its first presentation in
January 2006).
Yahoo Widgets has several dozens of analogue watches, with a
mean download and installation of over 10,000 people per
widget. The more favorable analogue watch widgets on Yahoo
scored in the area of 2 million downloads per widget.
(i.e. see http://widgets.yahoo.com/widgets/analog-clock-1 )
With a direct link to Cliclock.com embedded in every widget, users are
more than likely to return periodically and download a different widget
design once in a while. The model assumes that 60% of the
accumulated base will download a widget design at a rate of once a
year.

Page 29 of 38

9.3 Revenues Forecast

Cliclock's business model will be based primarily on one of the
following revenues streams:
1. Free (subsidized) widgets Brands will pay Cliclock $0.5 for every
branded PC widget it distributes, and $1.5 for every branded
mobile widget it distributes.
2. Retail widgets Brands will charge Cliclock $1.2 for every branded
widget it distributes.
In addition, Cliclock will enjoy the following revenue streams:
1. A fixed price of $1,000 per watch brand for presenting their watch
designs on the Cliclock websites. The number of watch collections
with whom Cliclock will sign agreements is expected to be 1 brand
in the first year, rising to 5 brand collections in the second year,
growing to 8, 12, and 20 brands in the corresponding years.
2. CPM advertisements Watch brands will be able to promote their
brand through ads showing on the Cliclock sites. The cost per
1,000 ads (CPM) is expected to be $60 CPM (due to the highly
focused traffic and functions of the website and because each page
will host ONLY 1 banner), Cliclock will be able to charge higher ad
prices than in non-focused sites such as dig.com which charge $5$15 CPM and host an average of 5 banners per page).
Since there is no ability to know the portion of subsidized versus
premium widgets in the overall revenue mix (although it will obviously
be skewed towards free in light of users' willingness to download and
consume more widgets, hence Cliclock's enhanced revenues from this
rout), we projected revenues and performance for both routs.
Assuming Cliclock will distribute ONLY subsidized widgets, the
company estimates revenues will reach $313 thousand during the first
year of operation, and increase to $3.6 million in the second year,
$11.7 in the third year and up to $25 million and $41.4 million in the
fourth and fifth year respectively.
Assuming Cliclock will distribute ONLY retail widgets (all other
parameters stay the same), the company estimates revenues will
reach $165 thousand during the first year of operation, and increase to
$1.7 million in the second year, $5.4 in the third year and up to $11.4
million and $18.5 million in the fourth and fifth year respectively.

Page 30 of 38

Revenues Sensitivity Analysis - 5th year ($K)

Retail
Widget
scenario

100%
80%
60%
40%
20%
0%

0%
$18,455

Free (subsidized) widgets scenario

20%
40%
60%

80%

100%

$23,053
$27,651
$32,250
$36,848
$41,446

9.4 Manpower
The companys manpower setup comprises of a small team. The initial
team will include 4 people: CEO and R&D team that includes: Cellular
DRM Expert, Flash programmer, and Designer. This team will increase
to 7 people during the second year adding a full-time flash
programmer, a Japanese marketer/webmaster and a marketing
manager. This team will later grow in accordance with the increase in
revenues and operations up to 15 people in the fifth year.
The attached tables in the following pages show the projections for the
number of employees and the overall wage expenses anticipated
during the 5 years of operation. The salaries table includes on the left
column an annual salary per position (employer cost including social
benefits). From the second year of employment and onwards, an
annual increase of 5% in all salaries is included.

9.5 R&D Budget

The R&D budget includes initial turn-key project salaries for the R&D
team, cost of licenses and R&D equipment, designers cost and other.

9.6 The Sales & Marketing budget

The Sales and Marketing budget includes salaries to the product
manager, mobile manager, Marketing manager, and Marketing
consulting expenses, PR, travel expenses, marketing material and
other. In addition, the company will consider hiring the consulting
services of Mr. Ran Regev, an online marketing strategies expert. Mr.
Regev has rich experience in internet and mobile industries; he served
as the Marketing Manager of Empire Online, was the owner at
Gambleron & PassItOn and was a Business marketing manager at
orange Israel.

9.7 The General & Administrative Budget

The General and Administrative budget includes mainly salaries, legal
and auditing, travel expenses, and office rental and maintenance.
These costs will remain relatively low until the company grows over the
years.

Page 31 of 38

9.8 Profit & Loss & Cash Flow Forecast

Financial projections below have been built for the 2 different
scenarios:
1. all widget revenues derive from subsidized widgets.
2. all widget revenues derive from retail widgets.
In the "all subsidized" scenario, the company is expected to post a loss
of $16 thousand in the first year. In the second year, the company will
reach an operating profit of $2.2 million. In the third year the company
is expected to report an operating profit of $7.9 million and an
operating profit of $28 million in the fifth year. The accumulated
operating profit by the end of the fifth year is expected to reach $54.9
million.

In the "all retail" scenario, the company is expected to post a loss of

$162 thousand in the first year. In the second year, the company will
reach an operating profit of $337 thousand. In the third year the
company is expected to report an operating profit of $1.6 million and
an operating profit of $5 million in the fifth year. The accumulated
operating profit by the end of the fifth year is expected to reach $9.9
million.

Page 32 of 38

9.9 Financial needs

The company is looking to raise $150,000 required to develop and
launch the cliclock.com website and widget ecosystem within 3-4
months of completing the round. The company has a strong business
model and expects to generate revenues from its product inception.
The following tables present the companys financial forecast for the
subsidized scenario.

Page 33 of 38

Revenues Forecast ($000) - when 100% of cellular downloads are subsidized (paid by Brands)

Website & Desktop

PC clocks
Website Advertising

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

0
0

0
9

0
25

1
49

1
83

12
637

45
1,930

109
3,773

202
5,616

Mobile
Cellular clocks

"

1.5

1.5

1.5

1.5

0.5

0 0

70

135

229

2,967

9,766

21,163

0.5

35,628

1 1

Total Revenues

24

0.50.5

33

96

184

313

3,616

11,741

25,044

41,446

Cost of Sales ($000)

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Advertising
Servers
SMS No.
SEO

0
6

10
6
3

20
6
3
3

40
6
3
3

70
24
5
9

750
30
10
36

3,000
35
10
36

7,000
40
10
36

12,000
50
10
36

Total

19

32

52

108

826

3,081

7,086

12,096

Page 34 of 38

Personnel Structure (No. of Employees)

G&A
CEO
Business Dev.
Administration

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

1
1

1
1

__
1

__
1

__
1

__
1

__
1

__
2

__
2

1
1
1
__
3

1
1
1
__
3

__
0

0
0
0
__
0

1
__
1

1
1
__
2

1
1
1
__
3

1
1
1
__
3

1
1
__
2

0
0
0
1
1
__
2

1
1
1
__
4

1
1
2
__
6

2
1
2
__
7

2
1
3
__
9

10

13

15

S&M
Product manager
Mobile manager
Marketing Manager

R&D
Freelance Designer
DRM Expert
Flash programmer
Webmaster Japan
Designer

Total

__
0

__
0

1
1

1
1

__
0

1
__
3

__
2

1
__
1

Salaries ($ 000)
Annual
salary

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

60
60
18

15
0
0
______
15

15
0
0
______
15

15
0
0
______
15

15
0
0
______
15

60
0
0
______
60

63
63
0
______
126

66
66
0
______
132

69
69
21
______
160

73
73
22
______
168

S&M
Product manager
Mobile manager
Marketing Manager

60
60
36

0
0
0
______
0

0
0
0
______
0

0
0
0
______
0

0
0
0
______
0

0
0
0
______
0

0
0
38
______
38

0
66
40
______
106

69
69
42
______
181

73
73
44
______
190

R&D
Freelance Designer
DRM Expert
Flash programmer
Webmaster Japan
Designer

20
20
60
48
20

0
5
15
0
5
______
25

0
5
15
0
0
______
20

0
0
0
0
5
______
5

0
0
0
12
5
______
17

0
10
30
12
15
______
67

21
0
63
50
21
______
155

44
0
66
53
44
______
207

46
0
139
56
46
______
287

73
0
146
58
73
______
350

40

35

20

32

127

319

445

627

707

G&A
CEO
Business Dev.
Administration

Total

Page 35 of 38

Sales & Marketing Budget ($000)

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Salaries
Marketing consulting
Public Relations
Travel Expenses
Marketing material
Other

0
9

0
9
3
5

5
5
2

0
9
3
5
2

0
27
6
15
5
8

38
36
25
30
5
20

106
60
30
60
10
30

181
72
30
100
20
70

190
84
50
150
30
100

Total

21

19

19

61

154

296

473

604

General & Administrative Budget ($ 000)

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Salaries
Rental
Legal
Auditing
Office expenses
Computers
Office equipment
Other

15

15

2
1
1

2
1
1

15
3
2
1
1

15
3
2
1
1
2
1
2

60
6
8
4
4
2
1
8

126
20
15
5
20
8
10
20

132
25
15
6
30
6
30
30

160
30
15
7
40
6
50
50

168
30
15
8
50
4
70
70

Total

21

21

27

24

93

224

274

358

415

Research & Development Budget ($ 000)

Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Salaries
licenses & equipment

25

20

17

67
0

155
10

207
25

287
30

350
30

Total

25

20

17

67

165

232

317

380

Page 36 of 38

Profit & Loss Forecast ($ 000) - ALL Subsidized Widgets (paid by brands)
Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Revenues
Desktop widgets
Advertising
Mobile widgets
Total Revenues

0
0
0
0

0
9
24
33

0
25
70
96

1
49
135
184

1
83
229
313

12
637
2,967
3,616

45
1,930
9,766
11,741

109
3,773
21,163
25,044

202
5,616
35,628
41,446

Cost of Sales

19

32

52

108

826

3,081

7,086

12,096

Gross Profit

-6

15

64

133

205

2,790

8,660

17,958

29,350

77%

74%

72%

71%

Operational Costs
R&D
Sales & Marketing
General & Administrative

Operating Profit (Loss)

Accumulated operating
profit (loss)

25
2
21
______
48

20
21
21
______
62

5
19
27
______
51

17
19
24
______
60

67
61
93
______
221

165
154
224
______
543

232
296
274
______
802

317
473
358
______
1,147

380
604
415
______
1,398

-54

-47

13

73

-16

2,247

7,857

16,811

27,952

62%

67%

67%

67%

2,232

10,089

26,900

54,851

-54

-101

-88

-16

-16

Profit & Loss Forecast ($ 000) - ALL Retail Widgets (paid by users)
Q1

Q2

Q3

Q4

Year1

Year2

Year3

Year4

Year5

Revenues
Desktop widgets
Advertising
Mobile widgets
Total Revenues

0
0
0
0

0
9
9
18

0
25
25
50

0
49
49
97

0
83
83
165

0
637
1,069
1,706

0
1,930
3,519
5,449

0
3,773
7,626
11,399

0
5,616
12,839
18,455

Cost of Sales

19

32

52

109

826

3,081

7,086

12,096

Gross Profit

-6

-1

18

45

56

Operational Costs
R&D
Sales & Marketing
General & Administrative

Operating Profit (Loss)

Accumulated operating
profit (loss)

25
2
21
______
48

20
21
21
______
62

5
19
24
______
48

17
19
24
______
60

67
61
90
______
218

-54

-63

-30

-15

-162

-54

-117

-147

-162

-162

880

2,368

4,313

6,359

52%

43%

38%

34%

165
154
224
______
543

232
296
274
______
802

317
473
358
______
1,147

380
604
415
______
1,398

337

1,565

3,165

4,961

20%

29%

28%

27%

176

1,741

4,906

9,867

Page 37 of 38

9. About The Founder

Micha Kakoun - Aged 37, Micha Kakoun is the owner of the HagdudHaivri designers shop, which is a specialty shop founded over 10
years ago and regarded an institution in the field of fashion. Micha has
extensive dining experience and has managed restaurants and bars
for more than 10 years. He is engaged in the Cliclock venture for the
past 12 months and has already carried out extensive business and
intellectual property research in the field, has applied for provisional
patents, prepared a detailed business and operational plan,
constructed a team and built a prototype for presentation on both a PC
and a mobile device.

Micha Kakoun
Cell : 052-3316571
eMail: michael@cliclock.com

Page 38 of 38