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.