Ann: Binding Term Sheet with FitLab LLC - Mayweather Training App, page-23

After seeing the Redleaf bullish assessment of MYQ I decided to do some research to see how good this really is and for those that got in early congrats to you. However I think Redleaf is a touch bullish on their modelling as they have $20m in revenues in FY18 (zero today so they have less then 6 months to get these numbers in). Just having a look at the Fitocracy deal which MYQ is targeting UP TO (and that's the key here) $9M in revenues based on a target of 500k subscribers per annum (out of 2m supposedly on their books). I think the reality will be very different and assumptions and targets are unrealistic based on the fickle nature of people and committing to pay for something (even if its a small amount). There has been plenty of stories (MSM is a classic example) of companies and their revenues projections not matching reality at least in the early part of a business life even with doing surveys and using various techniques to gain a possible market insight. Can I also say that this is an unproven business model so we are not really sure how this will down with potential subscribers. All I'm saying is I think the revenues projections are way too bullish from my experience