Financial Results Projection

1. Pro-forma Income Statement (5 years)

Table 1: CarbonDEX - Proforma Income Statement

i) Depreciation rate for furniture & fitting (incl. renovation) is 10%, ii) Depreciation rate for Office Equipment is 10%, iii) Depreciation rate for Computers, Peripherals and Server is 20%

2. CarbonDEX Project Valuation

Based on the 5 years financial projections, we derived a valuation of US$11,778,059 by applying a discount rate of 20% on the Project's Net Cash Flows.

Table 2: CarbonDEX Net Present Value calculation

3. Scenario Analysis

The scenario analysis was done by using the low, mid& high market volume & price projections that were provided by Trove Research that can be accessed below:

VOLUNTARY CARBON MARKET PROJECTIONS

The base case (Low Demand & Low Price) valuation is shown in the yellow cells, the maximum negative net cash flow for the base case is USD1,854,810.

Table 3: Scenario Analysis on CarbonDEX's Valuation

As prices increase the maximum negative net cash flows increases due to the higher trading capital required up front to purchase carbon credits for CCRS token issuance.

4. Projected Shareholder's Internal Rate of Return

The shareholder’s IRR (equity only) also includes the terminal value at end of year 5. This is calculated by applying a discount rate of 25% on projected Net Cash Flows for FYE 6, 7, 8, 9, and 10. The Terminal Value @ FYE 5 is USD 87,750,059 and the value of 30% share is USD 26,325,018.

As for the projected dividend income, we assumed a dividend rate of 20% p.a. Starting from FYE 3 onwards. Based on the investment value, projected dividend, and terminal value we calculated a shareholder’s IRR of 58.9% over a period of 5 years with a payback period of 4.10 years.

Fig. 53: 30% Shareholders' Cash Flow - Equity only

The 30% shareholders are also entitled to 100,000,000 CCOIN from the Ecosystem Partners Allocation. This amount is subjected to 36 months lock-up period with 11 quarterly vesting periods of equal amounts starting 6 months after the amount has been allocated. The 30% shareholders are free to sell the CCOIN to the market after each quarterly vesting period.

For the purpose of calculating the IRR, we assumed that the 30% shareholder will sell CCOINs as they are vested based on the price projection as per Fig. 58 below.

Based on the investment amount, projected dividend proceeds from the sale of CCOINs, and Terminal Value we calculated a shareholder’s IRR of 117% over a period of 5 years with a payback period of 1.55 years.

Fig. 54: 30% Shareholders' Cash Flow - Equity + CCOIN