ANNUAL REPORT 2014-2015

330333 Hoover Rd.

Warren, MI 48088
Phone: 586-574-3100
Fax: 586-698-4204
www.sparkvei.weebly.com
Table of Contents
Financial Highlights.....5

Board of Directors and Management3

Corporate Message
Corporate Mission3
Management Philosophy......6
Product/Service.4
Revenue and Profitability.6
Corporate Culture..5
Financial Statement and Footnotes
Income Statement.9
Balance Sheet...5
Cash Budget.6
Management Discussion and Analysis
Financial Performance.1
Company Goals2
Marketing and Advertising Plan...3
Market Research...4
Advertising Campaign.3
Target Market..9
Trade Show Research...4
Corporate Website...5
Internet Sales Plan...8
Brand Awareness.6
Risk.5

Strategic direction...7
Additional VE Supporting Documentation
Annual Report.7
Bank Statement...6
Loan Amortization Table.7
Loan Payment Table...6
Copy of Contract8
1120 VE Form5

Financial Highlights

Each month Spark has been increasing their sales. A chart to prove our
increased sales has been provided directly below this paragraph. Our sales have
increased mostly because weve been sending out media blasts, and participating in
trade shows and business exposistions, but also due to talking about it to friends and
family, and putting up posters in places that are looked at commonly almost every

month, thus making our company known and increasing sales.

When a business first begins it relies on its surrounding areas and local intel to
provide a steady income. Then from there the business will expand to new areas and
new customers, thus gaining a higher income then from when the company first began.
Our company, Spark, started locally but has opened its doors and business to other
firms that are further away geographical yet within the same region due to the limited
amount of resources the company had. Our largest way of expanding geographical was
through the use of technology and visits to business expositions and trade shows.

A majority of our revenue is generated by customers that have bought our spark
gas cards. This is because at the beginning of our fiscal year our company only sold
and promoted Spark gas cards. In January of 2015 we expanded our products to
include vehicle accessories. As shown on the graph, our most popular item would be
the antenna toppers, followed by the spark card and then the phone holder, etc. Our
least popular item was the non-heated steering wheel. We believe the antenna toppers
were in high demand because they were the least expensive item out of all our products
we have to offer.

Profit Margin
The profit margin for the air fresheners that we now sell according to the research that
our Sales and Marketing department conducted on the prices of air fresheners would be
a total price of $2.84. This number was achieved this number by subtracting the
manufacturing cost of $2.16 of the air fresheners from the price we are currently selling
them at $5.00.
The next product that we are selling is the antenna toppers. The antenna toppers cost
$0.10 apiece. Spark sells the antenna toppers for $1.00, the profit margin of the
antenna toppers is $0.90.
Next on our product list of profit margins are the USB car chargers. Once researched, it
was found that Spark could buy the USB car chargers for $0.37 apiece. We decided to
sell them at a price of $4.99. The profit margin for this product is $4.62.
The car phone holder is our next product. The manufacturing cost of a normal phone
holder for a car is $2.18. Spark sells theses at a price of $10.00. That makes the profit
margin come to be $7.82.
The heated and non-heated steering wheels are the last items on Sparks product list.
For the heated steering wheel, buying them in large quantities will cost $8.99
individually. It was decided to sell the heated steering wheel at $21.99, thus making the
profit margin $13.00. The non-heated steering wheel, buying in large quantities is $5.99
apiece. Spark sold the non-heated steering wheel at $11.99, making the profit margin
$6.00.

Board of Directors and Management

NYC Board of Directors: Iris Blanc, Nick Chapman, John Jastremski

Paul K. Cousino High School Principal: Stephen C. Bigelow, Ed.S

VE Coordinator: Deborah Prentiss

KatherineJoAnne Buiteweg CEO of Sparks

Jenna Kowalski CFO of Sparks
Danny Van COO of Sparks
Brooklin Adams - Vice President of Design and Layout.
Justin Alkass Vice President Accounting
Madison Cronch Vice President of Administration
Zachary Schulte- Vice President of Human Resources
Sandra Sou Vice President of Sales and Marketing

Monica Bailey - Accounts Receivable; Accounting

Anthony Brown Advertising Executive; Sales and Marketing
Juwan Campbell Media Specialist; Design and Layout
Jake Cerny Purchasing Manager; Sales and Marketing
Fong Change Accounts Payable; Accounting
Angelina Colonnesi Human Relations Specialist; Human Resources
Michkia Dockery Public Relations Specialist; Human Resources
Robert Downer III Assistant Vice President; Administration
Diellza Dullovi Public Relations Specialist
Kaltra Gorica Specialist; Administration
Lydia Karandal Specialist; Administration
Olivia Marchione Web Master; Design and Layout

Shelby Meyers Specialist; Administration

Madisyn Penz- Assistant Vice President; Administration
Kyra Phillips Human Relations Specialist; Human Resources
Katherine Sahutske Purchasing Manager; Accounting
Aida Sijamhodzic Payroll Supervisor; Accounting
Kenned Stouder Accounts Receivable; Accounting
Breanna Swinyer Sales Executive; Sales and Marketing
Paige Tewell Internal Specialist; Design and Layout
Katherine Vitella Historian
Jesalyn Wimbury Graphic Designer; Design and Layout

Madisyn Penz
Kaltra Gorcia
Lydia Karandal and Shelby Myers

Vice President of Administration:

Maddie Cronch

Jesalyn W imbury- Graphic Designer

Juw an Cam pbell- Media specialist
Paige Tewell- Internal specialist
Katherine Vitella-Historian
Olivia Merchine

Vice President of Web Page and

Media Design:
Brooklin Adam s

Chief Operations Ofcer (C00)

Danny Van

Angelina Colonessi
and M ykea Dockery

President of Human Relations and

Public Relations:
Zach Schulte

Vice President of Sales and

Marketing:
Sandra Sou

Chief Financial Of cer (CFO)

Jenna Kowalski

Kyra Phillips- Executive

Brenna Swinyer-sales executive
Anthony Brown- advertising executive
Jake C and
Katherine Sahutske
(Purchasing
Manager

Chief Executive Ofcer (CEO)

KatherineJoAnne Buiteweg

Robert Downer Assistant VP

Monica Bailey- Bank Manager
Aida Sijam hozic- payroll supervisor
Kennedy Stouder- accounts
reaceavable
Didi D Fong Chang-accounts payable

Vice President of Accounting:

Justin Alkass

Corporate Message
Mission Statement
We strive to make transportation affordable one swipe at a time.

Management Philosophy
Our managers make decisions by having the Vice Presidents of each department or the
Chiefs schedule meetings and having intellectual debates and conversations to apply to
the topic at hand for each meeting or problem. If the department cannot make a
unanimous decision the Chief Executive Officers will step in and with their help the
issue at hand will be resolved.

Product and Service

Sparks main product is gas cards; each gas card works with the participating gas
companies around the United States: Chevron, Exxon, and BP. Our cards, when used,
allow our customers to get 10% off each and every gas purchase! Additionally Spark
now also sells car accessories which include Hated and Non- Heated Steering Wheel
Covers, USB Chargers, Air Fresheners, Phone Holders, and Antenna Toppers. Each
accessory is able to fit any vehicle and different types of phones. So we can assure our
customers satisfaction, we have a website that runs 24/7 and is updated each time
there is an update or change within the company and company products. We provide
our customers multiple ways to reach our head management through technology and
mailbox. Spark works to insure our customers get a variety in our products while
providing the best experience possible while purchasing and/or using them.

Corporate Culture
At Sparks our values are to help our customers save money on gas, have good
customer service, and a welcoming and pleasant working environment. With the
welcoming and pleasant working environment we hope to increase predictability to have
a more efficient work force. Our vision is to help consumers save more and more each
year with new products and new product expansions or upgrades. Every day Spark is
trying to come up with new and exciting ideas for our company and consumers.

Financial Statements and Footnotes

Income Statement
Sales revenues
Trade fair revenues
Contractual sales to non-VE entities
Other than trade fair revenues
Total sales revenues
Cost of goods sold or services provided
Gross profit
Operating expenses
Salaries
Rent
Depreciation
Payroll tax
Advertising
Promotion
Insurance
Pension or 401 (k)
Interest
Supplies
Utilities
Other
Total operating expenses

Projected
$
$
$
$
$
$

Actual

60,000.00
60,000.00
9.00
49,400.00

$
$
$
$
$
$

15,618.23
4,006.52
19,624.75
21.29
34,925.11

$
89,073.00
$
935.00
$
8,955.00
$
2,183.00
$
$
$
$
$
$
$
762.00
$
$ 101,908.00

$
$
$
$
$
$
$
$
$
$
$
$
$

232,715.01
525.00
8,955.00
26,132.00
550.00
762.00
269,639.01

In the income statement it is filled out to figure out the numbers for sales
revenues, cost of goods sold, gross profit, and operating expenses. We find these
numbers by completing and constantly updating are journals. We find how much our
rent is and utilities and other expenses that we pay. When we attended the trade show
in February, we met a lot of different companies and made deals to buy their products if
they bought ours. This increased our sales and helped us to get closer to our
projections.

Description
Cash balance at
beginning of period:
Receipts of cash:
Sales
Receipts of accounts
receivable
Loan proceeds
Other
Total receipts
Beginning balance +
cash receipts
Payments:
Cost of merchandise
Salaries
Accounts payable
Rent
Advertising/ promotion
Payroll tax
Insurance
Accounting and legal
fees
Utilities
Interest
Pension, 401(k)
Freight out
Sales tax

Projected
Budget

Actual Budget

$ 45,118.77

$ 232,215.01

Increase/Decrease
from Projected
Budget

$ 60,000.00

$ 34,925.11

$
$
$

(187,096.24)
25,074.89

$
$
$
$ 60,000.00

$
$
$
$ 34,925.11

$
$
$
$

25,074.89

$105,118.77

$ 292,215.01

(187,096.24)
(19.54)
(16,462.86)
5,607.72
-

% of
Increase/Decrea
se from
Projected
Budget
-24.12%
NULL
239.28%
NULL
NULL
NULL
239.28%

$
1.75
$ 15,517.73
$
$ 6,132.72
$
$
$
-

$ 21.29
$ 31,980.59
$
$ 525.00
$
$
$
-

$
$
$
$
$
$
$
$
$

-56.18%

$
$ 762.00
$
$
$
$
-

$
$
$
$
$
$

762.00
1.04
7.00

$
$
$
$
$
$

(1.04)
(7.00)

NULL

Other or miscellaneous
Corporate tax
Total payments

$
$
$ 22,414.20

$
$
$ 33,296.92

$
$
$

(10,882.72)

NULL
NULL

Cash balance at end

of period: (line 3 - line
4)

$ 78,503.53

$ 82,704.57

(4,201.04)

-1868.67%

Net increase or
decrease in cash (line
2 - line 4)

$ 33,384.76

$ 37,585.80

(4,201.04)

-794.68%

NULL
-8.96%
-94.26%
NULL
109.36%
NULL
NULL
NULL

0.00%
NULL
NULL
0.00%
0.00%

-205.96%

The cash budget is filled out to figure out and compare our projected budget with
our actual budget. We compare the cash balance at the beginning period, the total
receipts, beginning balance and cash receipts, our total payments and our cash balance
at the end of the period. This will show us if we reached our projections or if we were
short. We compare our projected sales to our current sales and we also compare
salaries, rent and payroll tax.

Spark
Balance Sheet
Assets
Current Assets
Cash
Investments in stock
Accounts receivable
Merchandise in inventory
Supplies

Projected

Actual

$
$
$
$
$

45,119.00
-

$
$
$
$
$

248,342.49
228.60
810.49
-

Total Current Assets

Fixed Assets
Computers
Less: accumulated depreciation
Furniture and fixtures
Less: accumulated depreciation
Office equipment
Less: accumulated depreciation

45,119.00

249,381.58

$
$
$
$
$
$

21,238.00
4,248.00
23,534.00
4,707.00

$
$
$
$
$
$

21,238.00
4,248.00
44,771.14
4,707.00

Total Fixed Assets

53,727.00

74,964.14

Total Assets

98,846.00

324,345.72

Current liabilities
Accounts payable
Sale tax payable
Salaries payable
Payroll tax payable
401 K payable
Other payable
Corporate tax payable
Total Current Liabilities

$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$

288.16
293,554.79
293,842.95

Long Term Liabilities

Loan payable

Total Liabilities

$
$

45,119.00

Liabilities and Stockholders Equity

Stockholders Equity
Paid-in capital
Common stock,
Additional paid in capital
In excess of par value
Retained earnings
Total Stockholders Equity
Total Liabilities and Stockholders Equity

40,064.00

$
$
$
$

$
$

85,183.00

$
$

293,842.95

249,381.58
53,727.00
596,951.53

The balance sheet is filled out to figure out our current balance. We fill it in to
look at our current assets, our fixed assets, and our current and total liabilities.
We dont invest in any stocks and we dont take out any loans from anyone
because we find it unnecessary to do so. We also dont plan on doing these things
anytime in the future. We project to have more sales and that will help us complete our
goal of not taking out any loans.

Company Goals:

In the first year, we planned to break even. Spark did not break even. With all the hard
work all the employees have put in, we were close to breaking even. The Employees
goals is to work together and have everyone on the same page. Our motto is Team
Work. Its the number thing to do in our company. In the future we plan to expand with
our products. We plan we have different colored cards. We also plan to sell steering
wheel covers, heated steering wheel covers, antenna toppers, USB charger and air
fresheners. We plan to finish this year off strong and continue to exceed and break
even.

Marketing and Advertising Plan:

We had a goal at the beginning of the year to come up with multiple marketing
strategies. We started up multiple social media sites such as twitter and a weebly
account. Our companys design and layout department made a commercial that got
over 300 views in 3 months. Our company put up flyers around the school to expand
our viewing of the company. We planned to keep up with our twitter page, emails and
weebly but didnt go as well as planned. After not doing so well with social media and
the emails we went to the trade show on February 21 st with a more understanding of our
company. We had businesses cards that were handed out and we had a raffle where
every Spark card you bought you would receive one ticket and with the purchase of a
card plus and accessory you got 2 raffle tickets. At the end of the day we pulled our
tickets for a chance to win the prizes such as Spark t-shirts, usb ports and antenna
toppers. Though this whole advertising plan we got in contact with a few gas companies
such as BP, Chevron, and Exxon.

Market Research
Our company Spark decided on gas cards because though conducted research,
we have found that gas prices in the US are going up at a steady yet high rate, its
getting tougher for people to afford gas. According to NRP, in the year of 2012, gas
prices were $3.75/gal. That price would leave a fairly large dent in ones wallet. As a
company, we not only want to help people save money on gas, but we also saw an
opportunity for a profit in the area of business. Looking at all of the numbers, selling gas
cards to help people save money was a very smart idea on our part.

Advertising campaign

We chose to display our company by creating a website that tells our customers
everything they may need to know along with ways to reach our company, media blast
just as a friendly reminder to all those who may let the gas card slip from their mind, and
also a poster displaying around the school, city, and handing out flyers at the tradeshow
describing what products we have to offer to anyone that may be interested. The few
ways that we advertised our company Spark worked because not only are we getting
more sales from a wide variety of customers, but we have also been getting positive
feedback from many of our satisfied customers as well. We had personal feedback from
a few and when we take a look at our charts from the beginning of our company to
current time have shown an increase in customers.
Target Markets
Our company has research and found out that are target market is teenagers in high
school but really can be for anyone that can drive a car. We decided it was mostly
directed towards teens in high school though because they are the ones who are
always going out, whether its to a friends house or to the movies, maybe a dinner date.
We took a serve in our school of all the kids who drive and over seventy percent of the
participant would invest into a spark gas card. It was mostly the seniors and juniors who
said they would purchase it because they are the majority of the drivers in our school.
Not only would they buy our gas cards, but also the accessories we offer, such as the
steering wheel cover, the USB charger and especially the antenna toppers. We dont
only sell to adolescence, but from the research we have conducted, young adults are
the majority of our sales.
Trade Show Research

The design of the trade fair booth was to draw attention, we went with a color theme
and our business logo colors are yellow and blue. Yellow is a bright color and it brings
attention to itself. We also made a little road in front of our booth and had a gas can on
the table to represent the fact we sell gas cards and we will save them money. We also
had other attention grabbers such as a light on the table, candy, and a banner.
To promote ourselves before we were just sending out emails and using social media.
We never really did any sales besides our school. At the trade show we got a chance to
actually promote ourselves by doing some sales pitches. We got more clients and we
changed the way we were selling the cards because we got some complaints. So the
fact we were saving them money started to show more.

Internet sales

Our website has been active since the beginning of November of 2014. Sales
have increased progressively throughout the year. We a spike in sales around the
beginning of March. There has also been a steady increase of sales towards the end of
March and through the month of April. We expect most of our sales to come from online
sales and social media advertising. Sales also continue to go up with us keeping track
of the steady income of invoices and advertising Spark to other local firms who are
interested in our product. As expected we had a decrease in sales throughout the fiscal
year. Christmas time was the lowest amount of activity in our sales and also website
activity. With every decrease in sales we also increased the following weeks or months.

Brand Awareness

A few different ways we were able to create awareness for our companys product were
through social media, posters, our website, and good old fashion just telling people
about it. We mostly got it out when we went to the trade show and set up an amazing
booth for people to come up and talk to us about. An attention grabber. After the
customer caught interest in what we were all about, we then continued to explain how
our gas card worked in greater detail. The customer then filled out an order form and
started buying our product. Apart from the trade show, back at home we created a
twitter account for our company. We then followed a bunch of people that we knew and
tweeted things that would eventually direct them to our website and purchase our
products. A third way we were about to create awareness for our products was standing
by a restaurant and handing out flyers about our website and product and what we were
all about. One of the biggest contributors to getting peoples attention about our product
was our teacher. She not only would talk up our company, but also tell some of her
other students to check out our website and see what were about. These simple
methods of promoting our product allowed us to make many sales and help customers
to the best of our abilities.

Discussion of Business Risks

There are a few risks we as a business have taken, but eventually we overcame. The
risks include the starting the business itself, trying to find partners for the business,
changing our prices and adding new products to sell.
Risk Identified

Risk Addressed

The parents always have to pay for not

We can address this with market research

only their own gas but their kids gas as

efforts directed at our target market to

well

ensure we are addressing their product

Companies that we partner with may want

needs
We will identify different deals with the

more than what were willing to give.

other companies to ensure that we keep

them happy but take care of ourselves as

Our company has been getting many

well.
We changed our prices to $110 for year

complaints about our prices. We knew we

round gas card

had to change our prices.

By selling new products, we took the risk

We ended up selling the new products

of spending more money than we would

quite a bit, so the amount we got back

be making off of the products.

from selling the products broke even and

exceeded the cost of buying and
producing.

Strategic Direction
In the middle of our fiscal year Spark decided that it would be a great chance to expand
our product line. Other than selling gas cards, a few departments in the company had a
meeting and concluded with the finalized products. Our new product line consists of

USB chargers, heated and non-heated steering wheels, phone holders, antenna
toppers, and air fresheners. It has only been two months since Spark has updated the
site with these new products. Sales have been receiving promising numbers and if any
products are generating low sales, then we will discontinue that item. Since Spark
expanded the product line not too long ago, there will not be any changes for the time
being. Other than products, each department is determined to improve their skills. In
each department, they are finding better ways to become efficient and learning the
ropes of the business.