Revenue & Costs Assumptions

1. Revenue Assumptions

i) % of carbon credit tokens type issued: CCRO = 50%, CCRS = 30%, CCRF = 20%.

ii) Issuers of CCRO: only CarbonDEX Treasury

iii) Issuers of CCRS: only CarbonDEX Treasury

iv) Issuers of CCRF: 3rd party issuers (traders, carbon credit project owners).

v) Carbon Credit Tokens 100% sell down period = 90 days.

vi) The expected carbon credit issuance volumes and market prices that we used for the treasury & exchange revenue analysis are based on the research from Trove Research as shown in Fig. 48 below, for our projected financial model (base case) we used the lowest VCM market volume and lowest average carbon credit prices. We then apply our own assumptions on the CarbonDEX market share of the volumes and the profit margin or mark-up on the market prices.

Fig. 47: VCM projected low demand and low price forecast

vii) Assumptions for CarbonDEX’s annual % share of the VCM market volume are shown in Fig. 49 below. CarbonDEX target is to reach a 5% share of the VCM market volume in 10 years' time. The projected carbon credit issuance & sales volume for CarbonDEX in USD is shown in Fig. 50.

Fig. 48: Projected % Market Share of the VCM Market

Fig. 49: Projected carbon credit token issuance/sales volume

viii) Profit margin (mark-up): CCRO = 20%, CCRS = 30%. The mark-ups for CCRF do not affect the financial model, since the issuers are 3rd parties, hence CarbonDEX treasury will not be using any funds to purchase the carbon credits on an upfront basis (for CCRS tokens) and gradual basis (for CCRO tokens).

ix) As the carbon credit tokens sales volume, so will the CCOIN trading volumes from the Public wallet. The increase in demand will naturally lead to an increase in the future price of CCOIN. For the purpose of the financial model, we assumed that the users will only purchase the CCOINs in order to purchase the CCRS, CCRF & CCRO. Our assumptions on the future price of CCOIN are shown in Fig. 51 below. Another factor that we took into account in our future price assumptions is the fact that if we kept the future CCOIN too low throughout the 20 years period, the number of CCOINs required to provide the liquidity pool (from Treasury LP wallet) and to purchase the carbon credit tokens (from Public wallet), will be far greater than the available supply of CCOINs in those wallets. The future increase in CCOIN prices does not affect our Treasury funds since the repurchase price of CCOIN from the 3rd party issuers of CCRF tokens (Issuer wallet) is at the same level as the price of CCOIN agreed for the liquidity pool pricing. We also assume that the Treasury will not conduct any CCOIN trading activities from its Treasury reserves wallets.

Fig. 50: Projected price of CCOIN

x) The main source of revenue for CarbonDEX is from the Treasury operation revenues (Fig. 52) followed by DEX trading fees and from TRANSAK's markup fee (Fig. 53).

Fig. 51: Projected Revenue from Treasury Operation

Fig. 52: Projected Revenue from Exchange & TRANSAK operations

2. Costs Assumptions

The Costs assumptions are as shown:

i) Personnel: Number of personnel until end of Year 4: 18 pax, number of directors: 3 pax. Annual Salary costs increment across the board Year 3 & Year 4 (10%), Year 5 - Year 20 (20%), 10% will be the actual salaries increment for existing employees, anything above 10% its actually to recruit new staffs, this will start from Year 5 onwards.

ii) Health Insurance costs increment: 3% p.a.

iii) Office rentals increment: 5% p.a.

iv) IT & Communication costs increment: 3% p.a.

v) Only PR & advertising costs increment: 5% p.a.

vi) Company registration renewable costs increment: 5% p.a.

vii) Company annual audit & secretarial fees increment: 3% p.a.