Financial Overview
Financials Framework
Version: 1.0 Last Updated: 2026-01-28 Owner: Alem Basic Prepared by: John (Director)
Executive Summary
Financial structure, budget allocation, revenue streams, cost centers, 50% charity commitment, and investment strategy. Clear money flow, transparent accounting, and sustainable growth.
Key Principle: Profitable, sustainable, generous. Build a business that makes money AND gives back.
1. Revenue Streams
1.1 LumisCare (SaaS — Primary Revenue)
Model: Monthly recurring subscriptions
Pricing Tiers:
| Tier | Price | Includes | Target Customer |
|---|---|---|---|
| Starter | $49/month | Up to 50 patients, basic scheduling, documentation | Solo operators, new agencies |
| Professional | $99/month | Up to 200 patients, Vapi voice, analytics, compliance | Small agencies (5-20 caregivers) |
| Enterprise | $199/month | Unlimited patients, custom integrations, priority support, dedicated onboarding | Growing agencies (20+ caregivers) |
Discounts:
- Annual billing: 20% off (2 months free)
- Non-profit agencies: 10% off
- Beta users (first 20): 50% off for 6 months
Revenue Projections:
| Timeframe | Customers | Avg Price | MRR | ARR |
|---|---|---|---|---|
| Month 6 | 10 | $99 | $990 | $11,880 |
| Month 12 | 50 | $99 | $4,950 | $59,400 |
| Month 18 | 100 | $99 | $9,900 | $118,800 |
| Month 24 | 200 | $120 (mix) | $24,000 | $288,000 |
Assumptions:
- 30% trial-to-paid conversion
- 5% monthly churn
- 70% Starter, 25% Professional, 5% Enterprise
- Average customer lifetime: 20 months
Key Metrics:
- Customer Acquisition Cost (CAC): Target < $500
- Lifetime Value (LTV): Target > $2,000
- LTV/CAC Ratio: Target > 3:1
- Payback Period: Target < 6 months
1.2 Bosnian Payment App (Future Revenue)
Model: Transaction fees + premium features
Revenue Sources:
| Source | Rate | Notes |
|---|---|---|
| Merchant transaction fee | 0.5-1.5% | Lower than card networks (2-3%) |
| P2P instant transfer | 0.20 KM | Free standard, paid instant |
| Bill payment fee | 0.50-1.00 KM | Utility bills, telecom top-ups |
| Bank integration license | Annual fee (TBD) | Per-bank API access |
| Data insights | TBD | Anonymized transaction data (Phase 2+) |
Revenue Projections (Year 2+):
| Users | Avg Transaction/User/Month | Volume/Month | Revenue (1% fee) | MRR |
|---|---|---|---|---|
| 10,000 | 5 | 50,000 txns × 20 KM = 1M KM | 10,000 KM | ~€5,000 |
| 50,000 | 5 | 250,000 txns × 20 KM = 5M KM | 50,000 KM | ~€25,000 |
| 100,000 | 10 | 1,000,000 txns × 20 KM = 20M KM | 200,000 KM | ~€100,000 |
Timeline: GA launch Month 12+, meaningful revenue Month 18+
1.3 Crypto Trading (Secondary Income)
Model: Active trading for capital appreciation
Capital: $10,000 (approved by Alem 2026-01-28)
Strategy:
- 30% USDC reserve
- 20% ETH, 15% BTC, 10% SOL, 10% BNB
- 5% alt coins, 5% meme coins, 5% swing trading
- -5% stop-loss, +8-10% take-profit
Target ROI: 5%+ monthly (conservative), 60%+ annually
Revenue Contribution: Minor (not primary business), used to fund operations or reinvest.
2. Cost Structure
2.1 Cost Centers
Infrastructure & Hosting
| Category | Monthly | Notes |
|---|---|---|
| AWS (LumisCare) | $500-2,000 | Scales with users (ECS, RDS, S3, CloudFront) |
| Vapi voice AI | $100-500 | Per usage (voice-to-assessment) |
| Monitoring (Datadog, PagerDuty) | $100-300 | Infrastructure monitoring, on-call |
| CDN & DNS | $50-100 | CloudFront, Route53 |
| Total Infrastructure | $750-2,900/month |
SaaS Tools & Software
| Tool | Monthly | Purpose |
|---|---|---|
| Stripe | 2.9% + $0.30/txn | Payment processing |
| Intercom / Crisp | $50-200 | Customer support chat |
| Jira / Linear | $50-100 | Project management |
| Apollo.io | $100 | Sales outreach |
| LinkedIn Sales Navigator | $80 | Sales prospecting |
| Notion | $10-50 | Documentation |
| Auth0 / Clerk | $50-200 | Authentication |
| GitHub | Free-$50 | Code repository |
| Total SaaS | $390-780/month |
Development Services (SnowIT ↔ Fast Constructions)
Model: Fast Constructions pays SnowIT for development services.
Options:
Option A: Revenue Share
- SnowIT receives 50% of Fast Constructions revenue
- Example: $1,000 MRR → $500 to SnowIT, $500 to Fast Constructions
- Pros: Aligned incentives, SnowIT shares upside
- Cons: Variable income for SnowIT, complex accounting
Option B: Fixed Monthly Retainer
- SnowIT receives $3,000-$10,000/month (market rate for BiH dev team)
- Pros: Predictable, simple, easier for tax/transfer pricing
- Cons: Not aligned with revenue growth
Option C: Hybrid
- Base retainer ($2,000/month) + 25% revenue share
- Pros: Balanced, some predictability + upside
- Cons: Still complex accounting
Recommendation: Start with Option B (Fixed Retainer) — $5,000/month to SnowIT. Simpler for early stage.
Documented in Development Services Agreement (see LEGAL-STRUCTURE.md).
Marketing & Sales
| Category | Monthly | Notes |
|---|---|---|
| Cold outreach tools | $200 | Apollo, LinkedIn |
| Advertising (Google, Facebook) | $500-2,000 | Scale with revenue |
| Content creation | $200-500 | Blog, videos (mostly internal) |
| Conferences / events | $0-1,000 | Occasional |
| Total Marketing | $900-3,700/month |
Professional Services
| Service | Frequency | Cost | Notes |
|---|---|---|---|
| Accountant (US) | Monthly or quarterly | $200-500/month | Tax filing, bookkeeping |
| Accountant (BiH) | Quarterly | $100-300/quarter | SnowIT accounting |
| Lawyer | As needed | $200-400/hour | Contracts, IP, compliance |
| Patent attorney | One-time + ongoing | $3K-6K (provisional), $50K-110K (full) | File within 60 days |
| Total Professional Services | $300-1,000/month | (average) |
Insurance
| Type | Annual | Monthly |
|---|---|---|
| Cyber liability | $2,000-5,000 | $170-420 |
| Professional liability (E&O) | $1,500-3,000 | $125-250 |
| General liability | $500-1,000 | $40-85 |
| Total Insurance | $4,000-9,000/year | $335-755/month |
Team Compensation (SnowIT)
Current: All agents are virtual (no direct cost to Alem yet).
Future (if hiring real humans):
| Role | Salary (BiH market) | Annual Cost |
|---|---|---|
| Senior Developer (BiH) | €2,000-3,000/month | €24K-36K |
| Junior Developer (BiH) | €1,000-1,500/month | €12K-18K |
| QA Engineer (BiH) | €1,500-2,500/month | €18K-30K |
| DevOps (BiH) | €2,500-4,000/month | €30K-48K |
| US Sales Rep (part-time) | $3,000-5,000/month | $36K-60K |
Note: Currently deferred. Agents (virtual) have no direct cost. Asmir (SnowIT partner) may hire real humans when revenue supports it.
2.2 Total Burn Rate (Early Stage)
Before meaningful revenue:
| Category | Monthly Low | Monthly High |
|---|---|---|
| Infrastructure | $750 | $2,900 |
| SaaS tools | $390 | $780 |
| Development (SnowIT payment) | $5,000 | $5,000 |
| Marketing | $900 | $3,700 |
| Professional services | $300 | $1,000 |
| Insurance | $335 | $755 |
| Total Burn | $7,675/month | $14,135/month |
Average: ~$10,000/month burn in early stage (pre-revenue)
Runway: Depends on capital available.
- If $60K available → 6 months runway (at $10K/month burn)
- If $100K available → 10 months runway
Break-even target: 100 customers × $99/month = $9,900 MRR (covers $10K/month burn)
3. Capital Allocation
3.1 Current Capital
Trading Capital: $10,000 (allocated to Nick for crypto trading)
Operating Capital: TBD (Alem to clarify)
Questions for Alem:
- How much operating capital is available for LumisCare?
- Should we raise external funding (angel, seed) or bootstrap?
- What is acceptable burn rate before break-even?
3.2 Funding Strategy
Option A: Bootstrap
- No external investors
- Grow slowly with revenue
- Pros: Full control, no dilution
- Cons: Slower growth, limited capital
Option B: Angel / Seed Round
- Raise $100K-500K from angels or small VCs
- Pros: Faster growth, capital for marketing and team
- Cons: Dilution (10-20%), investor expectations
Option C: Grants & Credits
- Apply for Google for Startups ($100K-$350K GCP credits)
- Apply for AWS Activate ($5K-$100K credits)
- Healthcare innovation grants
- Pros: No dilution, free resources
- Cons: Application process, limited to credits (not cash)
Recommendation: Start with Option C (Grants) + Option A (Bootstrap), raise Option B only if growth justifies it.
Action Items:
- Apply to Google for Startups (John prepares, Alem approves)
- Apply to AWS Activate
- Research healthcare innovation grants (Selma)
3.3 Investment Strategy (Trading)
Capital: $10,000 (approved)
Allocation (Target):
- 30% USDC (reserve): $3,000
- 20% ETH: $2,000
- 15% BTC: $1,500
- 10% SOL: $1,000
- 10% BNB: $1,000
- 5% alt coins: $500
- 5% meme coins: $500
- 5% swing trading: $500
Risk Management:
- -5% stop-loss on all positions (auto-sell if loss exceeds 5%)
- +8-10% take-profit targets
- Max 30% in any single asset
- Monthly rebalancing
Expected Returns:
- Conservative: 3-5% monthly ($300-500/month on $10K)
- Moderate: 5-8% monthly ($500-800/month)
- Aggressive: 10%+ monthly ($1,000+/month) — higher risk
Use of Profits:
- 50% reinvested (compound growth)
- 50% to operating expenses or charity
Responsible: Nick (execution), John (oversight), Alem (strategy approval)
4. Charitable Giving (50% Commitment)
4.1 Policy
Commitment: 50% of all net profits donated to charity.
Which Entity?
- Fast Constructions (USA) — recommended (tax-deductible in US)
- OR Alem Basic (individual) — if taking distributions
Net Profit Definition:
- Revenue - COGS - Operating Expenses - Taxes = Net Profit
- 50% of Net Profit → Charity
- 50% of Net Profit → Retained earnings or distributions
Frequency: Annually (easier accounting, better for tax deduction)
Example (Year 1):
- Revenue: $100,000
- Expenses: $60,000
- Net Profit: $40,000
- Charity: $20,000 (50%)
- Retained: $20,000 (50%)
4.2 Charity Selection
Focus Areas:
- Healthcare access (aligned with LumisCare mission)
- Underserved communities (US and Bosnia)
- Education (STEM, healthcare training)
- Disaster relief (if needed)
Criteria:
- US-registered 501(c)(3) or equivalent
- Verified via GuideStar, Charity Navigator, or BBB Wise Giving Alliance
- Transparent financials (>80% of funds to programs, not overhead)
- Proven impact
Potential Charities:
- Direct Relief (healthcare access)
- Partners in Health (underserved communities)
- Doctors Without Borders (global health)
- Local BiH charities (if Payment App succeeds)
Decision: Alem selects charities (or delegates to John with approval).
4.3 Transparency & Marketing
Public Commitment:
- Publish on lumiscare.com/impact (transparency page)
- "50% of profits → charity. We care about your patients AND your community."
- Use as marketing differentiator ("Healthcare software that gives back")
Annual Report:
- "In 2026, we donated $X to [charities]."
- List charities, amounts, impact
- Share on LinkedIn, blog, email to customers
Tax Benefits:
- US: Corporate charitable donations deductible up to 10% of taxable income (C-corp)
- Bosnia: Limited deductibility (consult accountant)
- Norway (Alem personal): ~12,000 NOK/year deductible
5. Budget Planning
5.1 Monthly Budget (Early Stage)
| Category | Budgeted | Actual (Month X) | Variance |
|---|---|---|---|
| Revenue | $990 | $X | +/- Y% |
| Expenses | |||
| ├─ Infrastructure | $1,500 | $X | +/- Y% |
| ├─ SaaS tools | $500 | $X | +/- Y% |
| ├─ Development (SnowIT) | $5,000 | $X | +/- Y% |
| ├─ Marketing | $1,000 | $X | +/- Y% |
| ├─ Professional services | $500 | $X | +/- Y% |
| ├─ Insurance | $500 | $X | +/- Y% |
| Total Expenses | $9,000 | $X | +/- Y% |
| Net Profit/(Loss) | ($8,010) | $X |
Budget Owner: John (prepares), Alem (approves)
Review Cadence: Monthly (Monthly Business Review)
Adjustments: John can adjust <10% variance, Alem approves >10% variance.
5.2 Annual Budget (Year 1)
Revenue Target: $59,400 ARR (50 customers × $99/month)
Expense Budget:
| Category | Annual | Notes |
|---|---|---|
| Infrastructure | $18,000 | Scales with users |
| SaaS tools | $6,000 | |
| Development (SnowIT) | $60,000 | $5K/month |
| Marketing | $24,000 | Heavy in early months |
| Professional services | $12,000 | Includes patent filing |
| Insurance | $6,000 | |
| Total Expenses | $126,000 |
Net Loss (Year 1): ~$66,600 (need capital to cover)
Path to Profitability:
- Break-even: ~100 customers (Month 12-15)
- Profitable: >100 customers + growing
Funding Needed (Year 1):
- Operating capital: $70,000 (covers net loss + buffer)
- Trading capital: $10,000 (already allocated)
- Total: $80,000
Sources:
- Alem personal capital
- Angel investors
- Grants (Google, AWS)
- Trading profits (if Nick successful)
6. Financial Reporting
6.1 Monthly Reporting (John → Alem)
By 5th of each month:
P&L (Profit & Loss):
| Line Item | Current Month | Last Month | YTD |
|---|---|---|---|
| Revenue | $X | $Y | $Z |
| COGS | $X | $Y | $Z |
| Gross Profit | $X | $Y | $Z |
| Operating Expenses | |||
| ├─ Infrastructure | $X | $Y | $Z |
| ├─ SaaS tools | $X | $Y | $Z |
| ├─ Development | $X | $Y | $Z |
| ├─ Marketing | $X | $Y | $Z |
| ├─ Professional services | $X | $Y | $Z |
| ├─ Insurance | $X | $Y | $Z |
| Total OpEx | $X | $Y | $Z |
| Net Profit/(Loss) | $X | $Y | $Z |
Cash Flow:
| Category | Current Month | Last Month |
|---|---|---|
| Cash In (revenue) | $X | $Y |
| Cash Out (expenses) | $X | $Y |
| Net Cash Flow | $X | $Y |
| Cash Balance (end of month) | $X | $Y |
Runway: X months (at current burn rate)
Charitable Giving Accrual: $X (50% of net profit YTD, paid annually)
6.2 Quarterly Reporting
Includes:
- Full P&L, cash flow, balance sheet (if applicable)
- Customer metrics (MRR, churn, LTV, CAC)
- Trading performance (ROI, Sharpe ratio)
- Variance analysis (budget vs actual)
- Forecast update (next quarter)
Reviewed at Quarterly Planning Meeting.
6.3 Annual Reporting
Includes:
- Annual financial statements (P&L, balance sheet, cash flow)
- Tax filings (prepared by accountant)
- Charitable giving summary (donations made)
- Performance vs budget
- Next year budget
Published: Transparency report on lumiscare.com/impact (charity only, not full financials)
7. Tax Strategy
7.1 Tax Jurisdictions
| Entity | Jurisdiction | Tax Type | Rate | Filing |
|---|---|---|---|---|
| Fast Constructions (USA) | US Federal + State | Corporate income tax | 21% federal + 0-9% state | Quarterly estimated, annual return |
| SnowIT (Bosnia) | Bosnia & Herzegovina | Corporate income tax | 10% | Quarterly or annual |
| Alem Basic (individual) | Norway | Personal income tax | Progressive (up to ~50%) | Annual |
7.2 Tax Optimization (Legal)
Strategies:
- Charitable deductions: 50% of profit → charity (US tax deductible)
- R&D credits: Apply for R&D tax credits (US, BiH) — software development qualifies
- Transfer pricing: Document SnowIT → Fast Constructions payment at market rate (avoid tax authority challenges)
- Depreciation: Depreciate software development costs over time (GAAP/tax rules)
- Loss carryforward: Year 1 losses offset future profits (US allows carryforward)
Accountants:
- US: Hire US accountant for Fast Constructions (Q1)
- BiH: Engage BiH accountant for SnowIT (Q1)
- Norway: Alem's personal accountant (for distributions)
7.3 Transfer Pricing Documentation
Required: If Fast Constructions pays SnowIT >€10K/year, document that payment is at "arm's length" (market rate).
Method:
- Benchmark BiH software developer rates: $50-100/hour or $3K-10K/month retainer
- Document hours worked by SnowIT team
- Invoice monthly with breakdown
- Keep records for tax authorities
Owner: Dženan (compliance) + accountants
8. Document Control
| Version | Date | Changes | Author |
|---|---|---|---|
| 1.0 | 2026-01-28 | Initial document | John |
Next Review: 2026-04-01 (quarterly)
Owner: Alem Basic Maintained By: John (Director)
End of Financials Document
Clear revenue model. Clear cost structure. Clear charity commitment. Build profitably, scale sustainably, give generously.