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Entrepreneurship
06-0137-0023
(24) Pages
Page 2
AquaCool Technologies LLC
Table of Contents
Part I—Executive Summary ................................................................................... Page 3
Part II—Description of Proposed Business ........................................................... Page 4
Part III—Objectives of the Business ...................................................................... Page 5
Part IV—Proposed Business Strategies ................................................................. Page 5
Part V—Product(s) and/or Service(s) to be Provided .......................................... Page 7
Part VI—Management and Ownership of the Business ...................................... Page 9
Part VII—Marketing Analysis ............................................................................. Page 10
Part VIII—Financial Analysis .............................................................................. Page 13
Part IX—Supporting Documentation .................................................................. Page 16
Page 3
AquaCool Technologies LLC
Part I—Executive Summary
By developing innovation, and targeting key markets while providing advanced solutions,
AquaCool Technologies LLC (DBA AquaCool) will generate $270,000 of revenue by the first
year. A loan of $70,000 is being requested to acquire an inventory and to pay off the first year’s
major operating expenses so the business can focus on the essentials to start off and succeed.
The loan breakdown and predicted cash flow statement are described in Part VIII of this plan.
The business is a Limited Liability Company with Matthew Tewell as the Owner and General
Manager. Initially, the business will support a total of seven employees and five departments.
These include Engineering, Accounting, Sales, Service, and Shipping and Receiving. These all
report under one General Manager.
AquaCool focuses on small niche markets within the 21.7 billion dollar computer hardware
industry. Responding to opportunity, AquaCool has developed the Bare Die Mount product
family, a one of a kind solution for a common computing problem: overheating. By taking
advantage of selling online using eBay, Amazon, and an Ecommerce website, AquaCool will
appeal to both business and computer hobbyist markets that seek upgrades to their computer
systems. The eBay storefront and website home page design is located in Part IX–9.2.
All computers need cooling solutions, high performance systems such as the ones our target
markets use, need high performance options that AquaCool delivers. AquaCool’s competitive
edge derives from identifying the weaknesses of the competition, and responding to them with
better strategies. This strategy includes placing quality over quantity with item listing, item
category management, and extensive search engine optimization.
AquaCool’s business model incorporates the use of three elements:
1. Original hardware designer and vendor
2. Specialty computer hardware resale
3. Service, support, and installation
The business will mainly be sustained through designing new and original hardware. Hardware
resale through our stores will also be necessary to optimize usage of the marketplaces and to
further finance the business. Services are additionally offered as a solution to computer novices
that desire our professional and expert installation of our products.
The company logo is located in Part IX–9.2.1.
Page 4
AquaCool Technologies LLC
Part II—Description of Proposed Business
AquaCool Technologies LLC is a business startup to be owned and operated by its founder,
Matthew Tewell. It was formed to fill the market’s demand for quieter and cooler running
computer systems. The business utilizes an Ecommerce website and several online marketplaces
to sell specialty computer hardware and services for all types of systems. Usage of phone and
web orders processed through a secure merchant credit card processor, PayPal, and an AR charge
system will also be necessary. Through this flexible system we can deliver a wide range of
products to our clients that rely on computer systems for their business and recreational needs.
2.1 Business Model
Currently, there are three aspects of the business:
1. Original hardware designer and vendor
2. Specialty computer hardware resale
3. Service, support, and installation
As a computer hardware vendor, AquaCool will design original hardware such as the innovative
solution that solves a common problem with computing, the Bare Die Mount (details located in
Part IX–9.1.1). These products start by being designed from AquaCools’s engineering
department using CAD/CAM software. The approved drafts are sent to a domestic manufacture
for production. After production the units will be shipped through an industry standard freight
process. This process is outlined in Part IX–9.1.4). Finally, the products are ready to be
individually packaged and received via the inventory management software.
As a specialty computer hardware reseller, products are purchased through various distributors to
be resold through our marketplaces. This specialty hardware includes computer cooling
hardware and appearance accessories. Reselling hardware provides the business with cash flow
and return customers to further finance the business.
AquaCool also provides service, support, and installation through the Ecommerce website and
the eBay store. Typical services include Installation and Performance work. The services are
mainly offered as a solution for computer novices for professional installation and service.
2.2 Company Locations and Management
2.2.1 Corporate Headquarters
- Youngstown, Ohio
2.2.2 Management
- Privately held Limited Liability Company
Page 5
AquaCool Technologies LLC
Part III—Objectives of the Business
3.1 Mission Statement
AquaCool is built on the theory that information technology services; network consulting,
graphic arts, and engineering, are not inherently a do-it-yourself prospect. Business
professionals whom may not be system experts often rely on information technology as the
backbone of their business. These clients need to find quality vendors of reliable hardware to
substantiate their organization’s needs.
3.2 Vision Statement
Providing business clients with the loyalties of a business partner with the economics of an
outside vendor is the highest priority. As a computer hardware and service provider, AquaCool
makes sure the client’s equipment, whether at home or at work runs with maximum efficiency
and reliability. AquaCool seeks to become a leader in the computer cooling market.
3.3 Objectives
- Effectively sell products to the home hobbyist and commercial markets.
- Increase total sales to more than $800,000 by the third year.
- Maintain at least 30% gross margin each year.
- Provide business clients the solutions they need that are cost effective.
3.4 Keys to Success
- Increase service sales to 20% of total sales each year and maintain that.
- Merchandize products into categories on eBay for easy navigation.
- Maintain at least 35% profit margin for all hardware resale products.
- Establish a history with various distributors for bulk ordering discounts.
- Differentiate from the competition by offering a better online shopping experience.
Part IV—Proposed Business Strategies
4.1 Short Term Goals
4.1.1 Design the BDM-2011 model of the Bare Die Mount after investor funding.
4.1.2 Acquire space from the Youngstown Business Incubator for our corporate
headquarters and initial service center locations.
4.1.3 Register a domain name for the Ecommerce website, www.AquaCool-Tech.com
4.1.4 Purchase all necessary office equipment upon investor funding.
4.2 Accomplished Goals
4.2.1 Design the BDM-1155 Bare Die Mount model (engineering design in Part IX–9.2.6)
4.2.2 Acquire a manufacturing quotation (located in Part IX–9.1.4)
4.2.3 Design an eBay storefront (design located in Part IX–9.2.2)
4.2.4 Design the front end for the Ecommerce website (design located in Part IX–9.2.4)
Page 6
AquaCool Technologies LLC
4.3 Long Term Goals and Future Plans
4.3.1 Use net profits as working capital to finance a larger inventory with more variety of
products to support return customers.
4.3.2 Grow into a regional service business providing liquid cooling service contracts and
on-site guarantees for small to medium sized business after 2017.
4.3.3 Open new positions as necessary to fulfill this growth.
4.3.4 Acquire another location to serve as a service center for services ordered online.
4.4 Payment Processing
4.4.1 PayPal credit card processing for 2.9% + $0.30 transaction fees.
4.4.2 PayPal to PayPal transactions induce a 2.5% transaction fee.
4.4.3 Shopify credit card processing 2.17% transaction fee.
4.4.4 Accounts receivable store credit.
4.5 Promotion
4.5.1 Large Facebook advertising campaigns.
4.5.2 Facebook page management (located in Part IX–9.2.3).
4.5.3 Advertising on specific forums such as ExtremeTech.com and overclock.net.
4.5.4 Search engine optimization handled by Shopify for the Ecommerce website.
4.5.5 Website will supply sales literature such as product brochures and catalogs.
4.6 Legal
4.6.1 Patent both designs of the Bare Die Mount.
4.6.2 Trademark AquaCool Technologies, the company logo, and the Bare Die Mount, to
keep the business protected under law.
4.7 Strategy and Implementation Summary
AquaCool attracts customers using various promotion tools such as search engine optimization,
social media, and forum advertisement to endorse the products. AquaCool will mainly use eBay
and the Ecommerce website for sales but will also fulfill orders through Amazon. Only items in
the inventory will be listed for sale, this is due to restrictions set by eBay’s policies. Drop
shipping methods and special orders will not be used because of this reason.
AquaCool will have a sales force consisting of two employees. These employees will manage
both the Ecommerce website and the eBay store. They will be also in charge of manual credit
card processing if necessary. In most cases the payment processing is handled automatically by
either PayPal or Shopify’s merchant processing. This method is typically reserved for bulk
ordering purchase orders.
The Bare Die Mount is only offered on eBay because it will be sold directly to the end consumer.
Serving as a distributor for the Bare Die Mount is not worth the risk due to lower margins and
the nature of this highly niche-oriented product.
Page 7
AquaCool Technologies LLC
Part V—Product(s) and/or Service(s) to be Provided
As a specialty computer hardware seller, we carry and sell both products designed by AquaCool
as well as products from established brands that can be used alongside with ours.
PowerParts is a complete line of cooling system hardware and accessories that enhance the
cooling performance of computer systems. It contains products that are designed by AquaCool
and from other brands. It is the most important line offered because all computers need cooling
systems. High performance machines, in which the hobbyists and businesses use, need custom
solutions that this line provides.
Aesthetics is another line carrying a variety of items that enhance the appearance of computer
systems for the computer hobbyist market. These products are ordered from distributors.
Hardware resale from other vendors will be used to maximize marketplace usage and to further
finance the business. Services are also offered and later discussed in section 5.2. Funding for
the initial inventory, broken down in Part VIII–8.4, is requested to get started.
5.2 Products Offered
5.2.1 PowerParts
PowerParts is used to fill the gap between computer hobbyists and businesses. Among this
line are individual cooling hardware, complete cooling units, and accessories. Its key
specifications include customization and versatility for adoption in any system.
5.2.1.1 AquaCool’s products
- The most important system offered for computer hobbyists and businesses. Initially
it will support the Bare Die Mount product family of computer cooling accessories.
- Bare Die Mount specifications located in Part IX–9.1.1.
- Future products include additional models of the Bare Die Mount for different
computer processors and systems.
- Additionally, universal water cooling radiator brackets will be designed for fixed
wall mount server racks, mobile server racks, and fixed full size server racks.
- Future ideas will also include ventilation displacers for workstations and servers as
an alternative to costly air conditioning.
5.2.1.2 Cooling hardware resale
- A secondary product system that will be used to further finance the business and to
maximize usage of the marketplaces.
- Products include other brands of cooling systems and components such as water
cooling components and accessories; plug and play All in One systems (AIO units
broken down in Part IX–8.4), and other cooling accessories such as cooling fans.
5.2.2 Aesthetics
- Specializes in improving the appearance of computer systems.
- Items include lighting accessories, colored braided cables, and laser-cut fan grills.
Page 8
AquaCool Technologies LLC
5.2 Services Offered
5.2.1 Installation Services
5.2.1.1 Mainstream liquid cooling
- Custom solution as a first step up above the AIO product line, this service offers the
basic install of a liquid cooling system into a desktop computer system.
- Only covers the cooling of a single computer processor.
- Customizable tubing and fitting color options available.
- $400 Flat rate price.
- $250 Average cost in parts.
- $150 Average profit.
5.2.1.2 Performance liquid cooling
- A step up from Mainstream option in that the installation covers the cooling of
more components. In particular a single processor and a single video adapter.
- Offers more cooling dissipation options than the Mainstream option such as a single
360mm or 420mm radiator.
- Customizable tubing and fitting color options available.
- $650 Flat rate price.
- $400 Average cost in parts.
- $250 Average profit.
5.2.1.3 Enthusiast liquid cooling
- Offers the most flexibility in heat dissipation options such as large stacked
radiators, multi radiators, and passive radiators.
- Can be configured to cool multiple video adapters, multiple processors, RAM and
other system devices.
- Loop design and color choice is consulted with the customer.
- Price is total parts cost and 40% service fee.
- Estimated total cost in parts to be above $850.
- Service Fee is 40%.
5.2.2 Performance work
5.2.2.1 Delidding
- Processor heat spreader removal service.
- With the combination of the Bare Die Mount bracket, a reduction in operating
temperatures on computer systems can be achieved.
- $49.95 Flat rate price.
- 10 Minutes per operation.
- $299 of revenue per six modifications.
- Performance gains documented in Part IX–9.2.5.
Page 9
AquaCool Technologies LLC
5.3 Service Fulfillment Process
1. The customer orders either flat rate service and pays for shipping both ways.
(B) The customer commits to buy the Enthusiast liquid cooling service.
2. The customer ships the item to be modified to our service center location.
(B) The customer is called and consulted about the system’s needs.
3. The customer ships the system or component to our location and the work is performed.
4. The system is shipped back to the customer.
(B) The customer is sent a final invoice through PayPal specifying the total cost including
shipping.
Part VI—Management and Ownership of the Business
6.1 Organizational Chart
6.2 Management Summary
Matthew Tewell is the founder of AquaCool Technologies, LLC and serves as the General
Manager. He has a proven track record of Ecommerce store management and experience with
product development. He is a key player in the organization from his industry experience using
eBay and ARI Network Services.
The general manager is in charge of directing each department to making sure the business meets
the company vision. There are six departments within the company. Engineering is responsible
for product design. Accounting is responsible for accounts receiving, purchasing, and business
administration. The sales force includes two employees; both manage the ecommerce aspects of
the business. Experience with eBay and HTML is essential. The shipping and receiving
department is responsible for shipping items to customers and receiving product into the
inventory management system. Service is responsible for installing and preforming service work
for customer equipment sent to the service center.
We plan on hiring two full time field technicians by early 2018 to support our acquisition into
the regional field installation and consulting field. The total budget for salaries is $150,000 for
the first year. The individual salaries are negotiated with the employees.
General Manager
(1)
Engineering
(1)
Accounting
(1)
Sales
(2)
Shipping and Recieving
(1)
Service
(1)
Page 10
AquaCool Technologies LLC
Part VII—Marketing Analysis
AquaCool focuses on both national and international sales that products and services can be
purchased online and delivered through direct mail. The target markets include both the
computer hobbyist and business markets. These markets both need computers for their
recreational and work usage. They need our products because all computers need cooling
solutions. High performance machines such as the ones our target market’s use need the
solutions that AquaCool provides.
7.1 Indirect Competitors
There are three main types of computer stores within the industry including:
1. Computer dealers: Focused on a few main brands of hardware, their service and
support is usually not very good and their prices are higher than the larger stores.
Nearly all large enterprises (250+ employees) buy boxed systems from these computer
dealers for faster deployment of systems and common hardware grounds for system
upkeep. Often, these systems are not as effective as custom made systems.
2. Mail order computer superstores: Focusing on having high availability with massive
catalogs of products, they often have very aggressive pricing, and little support. The
major disadvantage from the perspective of the consumer is the lack of detail for
individual products listed on the marketplace. For a computer superstore to be
successful, product must be accurately described with in-depth product information.
Merchandizing products into categories is critical as well as intuitive navigation of the
marketplace that direct high volume traffic into purchases is essential.
3. Mail order computer hardware stores: These stores offer competitive pricing of
boxed products. For the purely price-oriented buyer, who buys boxes and expects no
service, these are very good choices. This model of resellers orients to niche markets,
because they can focus on providing that niche with a very specific solution.
AquaCool is based off of the mail order computer hardware store model. This model works best
because it responds to the market’s demand. The market has shown that it buys based off of
price and any potential benefits. Once a reliable distribution network is established, we can
fulfill this demand and build up a reputation as a reliable computer hardware vendor and reseller.
Page 11
AquaCool Technologies LLC
7.2 Market Segmentation
7.2. Home computer hobbyist market ($21.7 Billion as of 2015, Part IX–9.3, Source 3)
7.2.1. Mainstream PC gamers (26% Market share)
7.2.2. Performance PC gamers (30% Market share)
7.2.3. Enthusiast PC gamers (44% Market Share)
7.3. Commercial computer market ($63 Billion as of 2011, Part IX–9.3, Source 4)
7.3.1. Small businesses
- Less than 50 employees with 10 to 25 workstations which may include up to 5
high performance work stations.
7.3.2. Medium sized businesses
- 50 to 250 Employees with more than a hundred workstations which may include
10 to 50 high performance workstations.
7.3 Home Computer Hobbyist Market
1. Mainstream
Consumers in this category are most likely to purchase a prebuilt system. They are
gaming hobbyists, not necessarily hardware experts. They are more likely to order our
services, not our hardware.
2. Performance
Consumers in this category are likely to custom build a gaming system and have the
product knowledge of our hardware. They are more likely to purchase Aesthetics, and
not PowerParts.
3. Enthusiast
Consumers in this category are the likeliest to buy our products, if competitively priced
and if the products supply the solutions they need. They are hardware experts and
enjoy installing the equipment themselves.
The High End PC market is not only for gaming, it also includes high end workstations that can
be dual functioned for recreational use and for work use.
Ted Pollak, Senior Gaming Analyst at Jon Peddie Research notes that the 21.5 billion dollar
industry is twice the size of the console gaming system market. He has also stated:
“We continue to see a shift in casual console customers moving to mobile. While
this is also occurring in the lower end PC gaming world, more money is being
directed to mid and high range PC builds and upgrades by gamers. Committed
PC gamers are generally not interested in pure content consumption platforms.
They are power users and pay thousands for the ability to play games at very high
settings and then do business, video/photo editing, content creation and other
tasks with maximum horsepower at their disposal in a desktop ergonomic
environment.” (Part IX–9.3, Source 3)
Page 12
AquaCool Technologies LLC
7.4 Market Needs
All computers need cooling systems. High performance machines such as the ones the hobbyists
and businesses use need high performance cooling systems and custom solutions that AquaCool
provides.
Businesses and enterprises are used to buying computer equipment through computer dealers
who do not provide the customization or the service optimal for their organization’s needs.
These businesses typically do not purchase custom computer systems; they prefer the common
hardware grounds that a centralized vendor can provide. This comes with a drawback, often
times these systems run at hotter temperatures due to overlooked design limits of the machine.
This can result over time with higher failure rates and data losses. The commercial market
imposes a huge potential for AquaCool, particularly the Bare Die Mount. Applications of this
product can result in up to a 20°C load temperature decrease (Part IX–9.2.5) that previously, only
costly water cooling applications could obtain.
7.5 Competitive Edge
A common expectation that sellers assume is that the customers fully understand the products
listed. In many cases this is not true. The Enthusiast user may, but not necessarily the
Mainstream user. AquaCool has perfected a category system that is easily navigated. This is
critical to direct traffic into making informed transactions. This will give the store the
competitive edge to differentiate ourselves in the market.
AquaCool also provides free technical support through the use of emailing and phone to establish
positive customer satisfaction and increase repeat customers.
7.6 Pricing Policy
7.6.1 Bare Die Mount
The Bare Die Mount cost to produce is based off the manufacturing method. Currently, using
the plastic injection molding method, the cost to produce each unit is $0.75, excluding the
tooling which is counted as an asset. The MSRP for the BDM-1155 model is $49.99. The
BDM-2011 model is $99.99. The Bare Die Mount price is based off of performance gains. The
market has shown that it is willing to pay hundreds more for water cooling systems that have less
performance gains than the Bare Die Mount.
7.6.2 Hardware Resale
Ordering costs are part of a margin squeeze. The hardware vendors dictate the MSRP value.
Due to the lack of true distribution channels that other industries have, our costs are based off of
bulk ordering discounts set by the distributors. Often times these distributors are the vendors
themselves. In this case, to take advantage of lower costs, the inventory must be bulk ordered.
Page 13
AquaCool Technologies LLC
Part VIII—Financial Analysis
8.1 Loan Breakdown and Usage
Item Frequency Amount Total
Inventory (Breakdown in 8.4) Per Year 42,348 42,348
Office and Shipping Supplies Per Year 5,000 5,000
Promotion Per Year 2,000 2,000
Mold Manufacturing Per BDM Model (2) 5,112 10,225
Patent Fee's Per BDM Model (2) 65 130
Office Space Rent Per Month (12) 400 4,800
Office Utilities Per Month (12) 300 3,600
Business License One time 125 125
Front End Ecommerce Website Development One time 100 100
Shopify Ecommerce Website Back End Per Year 179 179
Credit Card Readers Per Unit (2) 199 399
Overhead Expenses N/A 1,092 1,092
Total Loan Usage 56,922 70,000
8.2 Predicted Cash Flow Statement
Projected Period 2015 2016 2017
Revenue
Bare Die Mount Sales 174,980 174,980 174,980
Resale Hardware Sales 50,901 50,901 50,901
Services 45,176 45,176 45,176
Total Revenue 271,057 271,057 271,057
Expenses
Inventory Provided by loan 43,848 42,348
eBay Fees (12.5%) 33,882 33,882 33,882
eBay Store Yearly Subscription Fees 180 180 180
Office Supplies Provided by loan 5,000 5,000
Promotion Provided by loan 2,000 2,000
Salaries 150,000 150,000 150,000
Mold Manufacturing Provided by loan 0 0
Patent Fee's Provided by loan 0 0
Property Utilities Provided by loan 3,600 3,600
Property Rent Provided by loan 4,800 4,800
Research and Development 1,000 800 500
Total Expenses $185,062 244,110 242,310
Net Income 85,995 26,947 26,947
Page 14
AquaCool Technologies LLC
8.4 Inventory Breakdown
Vendor Part Description Quantity and Price Order
Cost
Resale
Value
Net Sales
AquaCool BDM-1155
BDM-2011
500 Units x $0.75
1,500 Units x $0.75
$375 $1,125
$24,995
$149,985
$24,620
$148,860
Alpha Cool
(Quoted
from
FrozenCPU
.com, Inc)
3/8” x 5/8” Comp. Fitting
45° Angle Adptr. - CH.
45° Angle Adptr. - BL.
90° Angle Adptr. - CH.
90° Angle Adptr. - BL.
30 Units x $5.00
20 Units x $3.99
20 Units x $3.99
15 Units x $5.99
15 Units x $5.99
$150.00
$79.80
$79.80
$80.85
$80.85
$224.70
$139.80
$139.80
$134.85
$134.85
$74.70
$54.00
$54.00
$54.00
$54.00
Phobya
(Quoted
from
FrozenCPU
.com, Inc)
Green 1000mL Coolant
Red 1000mL Coolant
3/8” x 5/8” Comp. Fitting - SL.
3/8” x 5/8” Comp. Fitting - BL.
3/8” Barb Fitting - BL.
3/8” Barb Fitting - GLD.
3/8” Barb Fitting - SL.
10 Units x $9.99
10 Units x $9.99
25 Units x $3.99
25 Units x $3.99
15 Units x $1.99
15 Units x $1.99
15 Units x $1.99
$99.99
$99.99
$99.75
$99.75
$29.85
$29.85
$29.85
$159.90
$159.90
$174.75
$174.75
$59.85
$59.85
$59.85
$59.91
$59.91
$75.00
$75.00
$30.00
$30.00
$30.00
PrimoChill
(Quoted
from
FrozenCPU
.com, Inc)
3/8” x 5/8” GR. Tubing
3/8” x 5/8” WH. Tubing
3/8” x 5/8” Rubber Tubing
7/16” x 5/8” UV GR. Tubing
7/16” x 5/8” WH. Tubing
7/16” x 5/8” UV BLU. Tubing
7/16” x 5/8” BL. Tubing
100 Feet x $1.50/Ft
100 Feet x $1.50/Ft
300 Feet x $1.50/Ft
80 Feet x $1.50/Ft
80 Feet x $1.50/Ft
80 Feet x $1.50/Ft
50 Feet x $1.50/Ft
$150.00
$150.00
$450.00
$120.00
$120.00
$120.00
$75.00
$250.00
$250.00
$ 630.00
$200.00
$200.00
$200.00
$125.00
$100.00
$100.00
$180.00
$80.00
$80.00
$80.00
$50.00
Bitspower
(Quoted
from
FrozenCPU
.com, Inc)
3/8” x 5/8” Comp. Fitting - CH.
3/8” x 5/8” Comp. Fitting - Bl.
Rotary Ext. - SL.
Rotary Ext. - BL.
Rotary Ext. - WH.
50 Units x $8.99
50 Units x $8.99
25 Units x $7.99
25 Units x $7.99
25 Units x $7.99
$449.50
$449.50
$199.75
$199.75
$199.75
$649.50
$649.50
$249.75
$249.75
$249.75
$200.00
$200.00
$50.00
$50.00
$50.00
XSPC
(Quoted
from
FrozenCPU
.com, Inc)
3/8” x 5/8” Comp. Fitting - CH.
3/8” x 5/8” Comp. Fitting - BL.
7/16” x 5/8” Comp. Fitting - CH.
7/16” x 5/8” Comp. Fitting - BL.
45° Rotary Adptr. - CH.
45° Rotary Adptr. - BL.
90° Rotary Adptr. - CH.
90° Rotary Adptr. - BL.
3/8” Barb Fitting - CH.
1/2” Barb Fitting - BL.
1/2” Barb Fitting - CH.
SLI Flow Bridge
240mm Radiator
280mm Radiator
25 Units x $3.99
25 Units x $3.99
20 Units x $3.99
20 Units x $3.99
15 Units x $3.99
15 Units x $3.99
10 Units x $4.99
10 Units x $4.99
15 Units x $.99
10 Units x $.99
10 Units x $.99
5 Units x $6.99
10 Units x $39.99
10 Units x $44.99
$99.75
$99.75
$79.80
$79.80
$59.85
$59.85
$49.90
$49.90
$14.85
$14.85
$14.85
$34.95
$399.90
$449.90
$149.75
$149.75
$119.80
$119.80
$97.35
$97.35
$69.90
$69.90
$33.75
$22.50
$22.50
$59.95
$549.50
$629.90
$50.00
$50.00
$40.00
$40.00
$37.50
$37.50
$20.00
$20.00
$18.90
$7.65
$7.65
$25.00
$149.10
$180.00
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AquaCool Technologies LLC
360mm Radiator
420mm Radiator
Raystorm Intel 1155 CPU Block
Raystorm Intel 2011 CPU Block
Drive Bay Res. and Pump COM.
D5 Variation Pump
170mm Tube Res. Pump Combo
270mm Tube Res. Pump Combo
3/8” x 5/8” UV BL. Tubing
3/8” x 5/8” UV GR. Tubing
3/8” x 5/8” WH. Tubing
3/8” x 5/8” CL. Tubing
10 Units x $54.99
10 Units x $59.99
10 Units x $39.99
10 Units x $39.99
10 Units x $114.99
15 Units x $69.99
5 Units x $119.99
5 Units x $124.99
50 Feet x $1.99/Ft
50 Feet x $1.99/Ft
50 Feet x $1.99/Ft
25 Feet x $1.99/Ft
$549.90
$599.90
$399.90
$399.90
$1,149.90
$1,049.85
$599.95
$624.95
$99.50
$99.50
$99.50
$49.75
$999.90
$749.90
$599.90
$599.90
$1,499.90
$1,349.85
$749.95
$799.95
$125.00
$125.00
$125.00
$75.00
$450.00
$150.00
$200.00
$200.00
$350.00
$300.00
$150.00
$175.00
$25.50
$25.50
$25.50
$25.25
EKWB
(Quoted
From EK
Waterblock
d.o.o)
110mm Tube Res.
150mm Tube Res.
250mm Tube Res.
1000mL UV Lime GR. Fluid
1000mL UV BLU. Fluid
1000mL Red Fluid
Intel Cooling Block - Acetal
Intel Cooling Block - Copper
Intel Cooling Block - Nickel
AMD Cooling Block - Acetal
AMD Cooling Block - Copper
AMD Cooling Block - Nickel
GTX 780/Titan Cooling Block
GTX 980 Cooling Block
5 Units x $29.99
5 Units x $49.99
5 Units x $44.99
10 Units x $6.99
10 Units x $6.99
10 Units x $6.99
5 Units x $49.99
5 Units x $69.99
5 Units x $69.99
5 Units x $49.99
5 Units x $69.99
5 Units x $69.99
10 Units x $89.99
20 Units x $89.99
$149.95
$249.95
$224.95
$66.90
$66.90
$66.90
$249.95
$349.95
$349.95
$249.95
$349.95
$349.95
$899.90
$1,799.80
$229.75
$274.50
$314.95
$99.90
$99.90
$99.90
$374.95
$484.95
$484.95
$374.95
$464.95
$464.95
$1,349.90
$2,599.80
$79.80
$24.55
$90.00
$33.00
$33.00
$33.00
$125.00
$135.00
$135.00
$125.00
$135.00
$135.00
$450.00
$800.00
Corsair
(Quoted
From
Corsair
Component
s, Inc)
H75 AIO System
H80i AIO System
H100i AIO System
H105 AIO System
H110 AIO System
5 Units x $59.99
5 Units x $69.99
10 Units x $89.99
10 Units x $89.99
10 Units x $99.99
$299.95
$349.95
$899.90
$899.90
$999.90
$424.95
$549.95
$1,249.90
$1,249.90
$1,299.90
$125.00
$200.00
$350.00
$350.00
$300.00
Swiftech
(Quoted
from
FrozenCPU
.com, Inc)
8-Way PWM Cable Splitter
MCP655 Water Pump
GTX 980 Cooling Block
7970 Cooling Block
GTX 780 Cooling Block
R9 Cooling Block
50 Units x $4.99
20 Units x $79.90
25 Units x $100.00
25 Units x $110.00
25 Units x $100.00
30 Units x $100
$249.50
$1,599.80
$2,500.00
$2,750.00
$2,500.00
$3,000.00
$499.50
$2,399.00
$3,999.75
$4,499.75
$3,749.75
$5,399.70
$250.00
$799.20
$1,499.75
$1,749.75
$1,249.75
$2,399.70
Paratherm Paratherm NF Transfer Oil
55 Gallons
$1,278.20 +
$528.45 Freight
$1,806.65 $2,273.92 $677.68
Misc. Extra Overhead for Other Items N/A $5,000 N/A N/A
Total $42,348 $225,881 $183,533
Net Sales of Inventory $183,533
Page 16
AquaCool Technologies LLC
Part IX—Supporting Documentation
9.1 Appendix
9.1.1 Bare Die Mount Product Family
The Bare Die Mount is product family of replacement retention brackets designed by AquaCool
Technologies LLC. These products allow all platforms of computer systems to run cooler and
increase overhead for overclocking (increasing performance). The different models of this
product family are named after the types of sockets and processors they fit.
Overheating on the Intel Core i series Ivy Bridge and Haswell processors during load is prevalent
in many systems. Overheating in this case is caused by the chipset vendors applying inefficient
thermal compound between the processor die, and the aluminum heat spreader attached to it
(also known as IHS1). The lower grade thermal compound and the combination of the IHS are
shown in tests (Part IX–9.2.7) to reduce cooling efficiency of the system (Part IX–9.2.5).
When the modification, “delidding” is performed, the IHS is removed and exposes the CPU die.
With the installation of the Bare Die Mount retention bracket2, the cooling system has a direct
thermal connection to the processor die, resulting in lower load temperatures.
AquaCool did not invent the delidding modification, AquaCool invented the alternate retention
bracket that serves as an easy to install for delidded computer processors.
The BDM-1155 is a retention bracket designed for Intel LGA-1155 sockets, with an install base
typically in high end home desktops and in medium end workstations. The BDM-2011 is the
same concept but is designed to work with LGA-2011 sockets. Computers with an LGA-2011
socket and processor are typically very high end with an install base in data centers, servers, and
high end workstations.
9.1.2 Bare Die Mount Production Costs
The unit cost to produce either model of the Bare Die Mount is $0.75 once the molding
and tooling is manufactured. The initial cost to produce both models is $11,412
including molding cost. The quoted cost estimate from the manufacturer is located in
9.1.4.
1 IHS is an acronym for “Intel Heat Spreader”.
2 The retention bracket firmly applies pressure on the processor for necessary electrical connection.
Page 17
AquaCool Technologies LLC
AquaCool Technologies LLC Matt_tewell@live.com 330-651-2332
9.1.3 Logistics
9.1.3.1 FOB Origin
- Epsilon Industries, Inc. will ship freight on board (FOB) to Dallas for no added charge.
9.1.3.2 Shipping Agent and Transloading
- At the FOB Origin a shipping agent will be contracted as needed to transload the freight
for the carrier to further transport
9.1.3.3 Freight Carrier and DAP
- Carrier: UPS
- Service: UPS Freight LTL
- Deliver at point: Warehouse facility in Youngstown, Ohio
9.1.3.4 Freight Class and Rate
- Freight Class: 150
- Quoted Rate: 528.45 USD (extra overhead cost in Cash Flow Statement)
9.1.4 Bare Die Mount Quotatation
Page 18
AquaCool Technologies LLC
9.1.5 Youngstown Business Incubator
9.1.5.1 Features and Support
- Variety of office space ranging from 110 - 825 square feet. This can be configured to
accommodate company growth.
- Very flexible terms with options for free rent period and modest lease rates.
- Access to office, technology, and prototype testing equipment
- Conference rooms range from 8 - 60 seats
- Break room including free coffee, digital screens, vending machines, and a wide variety
of snacks to create a stress free environment for employees
- Secure 50 slot parking facility
- Access to a climate controlled warehouse with storage equipment
- Commercialization process support
- Counseling on marketing strategies
- 3D printers and additive manufacturing technology Support
9.1.5.2 Location
- 241 West Federal Street, Youngstown, Ohio
9.2 Supporting Media
Figure 9.2.1 Company Logo
Page 19
AquaCool Technologies LLC
Figure 9.2.2 Preliminary eBay Store Front Design
AquaCool
Page 20
AquaCool Technologies LLC
Figure 9.2.3 Facebook Page
(Individuals Blurred for
Privacy)
Page 21
AquaCool Technologies LLC
Figure 9.2.4 Preliminary Website Home Page Design
Works Cited Source 2 and Source 5
Page 22
AquaCool Technologies LLC
Figures 9.2.4 – 9.2.5 BDM-1155 Prototype Model and Delidding Modification Results
Figure 9.2.6 Final Engineering Design of BDM-1155
(Works Cited Source 3)
Page 23
AquaCool Technologies LLC
Figure 9.2.7 Delidding Modification Performance Comparison
Figure 9.2.8 LGA-1155 Stock Retention Bracket Application
Figure 9.2.9 Computer Gaming Hardware Industry Market
(Works Cited Source 6)
(Works Cited Source 3)
Page 24
AquaCool Technologies LLC
9.3 Works Cited
1) "8 Reasons Consumers Like To Shop Online – Cater To Them For Online Retail
Success." UpstreamCommerce. N.p., 14 Feb. 2012. Web. 31 Mar. 2015.
<http://upstreamcommerce.com/blog/2012/02/14/8-reasons-consumer-likes-shop-
online>.
2) "Apogee HD - Rouchon Industries Inc., Dba Swiftech - PC Liquid Cooling Systems CPU
Cooler VGA Water Block Heatsink Pump Radiator Heat Exchanger Kit." Swiftech. N.p.,
n.d. Web. 31 Mar. 2015. <http://www.swiftech.com/ApogeeHD.aspx>.
3) Peddie, Jon. "Jon Peddie Research - a Technically Oriented Marketing, Research, and
Management Consulting Firm in the Graphics Industry." PC Gaming Hardware Market
Report. Jon Peddie Research, n.d. Web. 22 Feb. 2015.
<http://jonpeddie.com/publications/pc_gaming_hardware_market_report/>.
4) "Server Market Forecast - Cloud Computing And The Coming Recession." ITCandor.
N.p., 06 Sept. 2011. Web. 22 Feb. 2015. <http://www.itcandor.com/server-forecast-
q311/>.
5) "SlashGear 16Core Water Cooled Opteron Server." Overclock.net. N.p., n.d. Web. 31
Mar. 2015. <http://www.overclock.net/t/470314/slashgear-16core-4x4-water-cooled-
opteron-server>.
6) User, “Delidded my i7-3770K, loaded temperatures drop by 20°C at 4.7GHz” #1
AnandTech < http://forums.anandtech.com/showthread.php?t=2261855>
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