Financial Model
Complete financial model for the ECOCORE production platform. Every cost, every margin, every participation term structured and transparent.
This financial model is provided for qualified participants only. Projections are based on stated production capacity and current market pricing. Past performance is not indicative of future results. This is not an offer to sell securities.
Cost of Goods Sold
Full cost stack from raw materials to delivered unit. No hidden costs. $10.00 all-in against $17.00 wholesale.
| Cost Category | Description | Per Block | Monthly (66K) |
|---|---|---|---|
| Raw Materials | Recycled EPS composite core (87% recycled content) | $4.20 | $277,200 |
| Cement / Binder | Structural binder and composite matrix materials | $1.80 | $118,800 |
| Direct Labor | MEC-140-ELEKTRO operator and line staff | $1.40 | $92,400 |
| Energy | Electricity and utilities for automated production line | $0.85 | $56,100 |
| Facility / Lease | Laughlin, Nevada manufacturing facility | $0.65 | $42,900 |
| Quality Control | Testing, certification compliance, and QA labor | $0.45 | $29,700 |
| Packaging / Handling | Palletizing, wrapping, and yard handling | $0.35 | $23,100 |
| Maintenance / Depreciation | MEC-140-ELEKTRO scheduled maintenance and depreciation reserve | $0.30 | $19,800 |
| Total COGS | All-in production cost per block | $10.00 | $660,000 |
Margin Analysis
At 3,000 blocks per day across 22 production days, the MEC-140-ELEKTRO line generates 66,000 units per month. Each unit carries $7.00 net margin.
Per Unit (1 Block)
Monthly (66,000 Blocks)
Annual Projection
Production Schedule
14-second cycle time. 3,000 to 4,000 blocks per day. 22 production days per month.
| Scenario | Blocks/Day | Blocks/Month | Gross Revenue | Net Margin |
|---|---|---|---|---|
| Conservative (75%) | 2,250 | 49,500 | $841,500 | $346,500 |
| Base Case (100%) | 3,000 | 66,000 | $1,122,000 | $462,000 |
| Full Capacity (133%) | 4,000 | 88,000 | $1,496,000 | $616,000 |
Participation Terms
Non-dilutive production participation. No equity, no board seats, no management interference. First-position lien on the MEC-140-ELEKTRO system as collateral.
Annual Preferred Return
12% annual preferred return on $2,000,000 principal. Priority position before any profit distribution begins.
Of Net Production Profit
Participant receives 60% of net production profit. At base case capacity, this equals $277,200 per month directed to the investor.
Principal + 12% Annual Yield
Full principal recovery of $2,240,000 (principal + 12% annual yield) projected within approximately 8 months from production start at base case output. 90-day execution to production launch.
60/40 Waterfall Schedule
| Month | Net Margin | Participant (60%) | Cumulative Paid |
|---|---|---|---|
| Month 1 | $462,000 | $277,200 | $277,200 |
| Month 2 | $462,000 | $277,200 | $554,400 |
| Month 3 | $462,000 | $277,200 | $831,600 |
| Month 4 | $462,000 | $277,200 | $1,108,800 |
| Month 5 | $462,000 | $277,200 | $1,386,000 |
| Month 6 | $462,000 | $277,200 | $1,663,200 |
| Month 7 | $462,000 | $277,200 | $1,940,400 |
| Month 8 | $462,000 | $277,200 | $2,217,600 |
| Month 9 ✓ | $462,000 | $277,200 | $2,494,800 |
Month 8 cumulative of $2,217,600 approaches the $2,240,000 target (principal + 12% annual yield). Full recovery completes in month 9 at base case. 90-day execution window precedes production start. Based on 66,000 blocks per month.
Post-Recovery: Long-Term Yield
Following full principal and yield recovery, the structure converts to a long-term production royalty.
Return Composition
Golden Ticket
Ignition Tranche participation is the only gateway to the ECOBUILT NV expansion round. Right of First Refusal on the $3.97M automation round.
Use of Proceeds
Platform handling and MEC-140-ELEKTRO acquisition from European manufacturer.
Transportation, industrial setup, and facility preparation in Laughlin, Nevada manufacturing facility.
R&D completion and final fire-rating certification for US market compliance.
Opportunity Zone lease deposit and working capital for EPS intake and production ramp-up.
Incentive Stack
Laughlin, Nevada. Federal Opportunity Zone. Arizona Quality Jobs. USDA B&I eligibility. EPA and FEMA alignment.
Respond within 24 hours to secure your position.