NSAV Holding Inc (NSAV)

[JPS02]

Preliminary estimate of NSAV pps valuation at $0.0103

Purpose: To calculate a preliminary estimate of the NSAV pps valuation based on the Code Kush volume and pricing information only communicated to shareholders as of May 6/15.

Notes: i) There may be other revenue sources or streams (i.e. RFID) for which volume and pricing information have not been communicated to shareholders and accordingly have been excluded from the calculations below.

ii)The calculations below have not been verified by an independent party or reviewed, please do your own DD and do not buy and sell NSAV securities based on the calculations below.

Key Assumptions

1. The pps valuation calculations below are based on revenues starting from the acquisition of Pyrotree, and not before.

2. 50% of new customers that purchase a custom designed website will purchase the 'Informative Website' package at $1,250 (http://codekush.com) and 50% will purchase the 'Ecommerce/Subscription' package at $2,500 (http://codekush.com)

3. A/S is maxed out with an o/s = 3 billion (http://www.otcmarkets.com/stock/NSAV/profile)

4. No growth factors to estimate revenue and net income growth for future years have been included in the calculations below. Accordingly, the valuation below is based on one year and not the typical 3-5 years time horizon discounted back at the weighted average cost of capital.

Revenue Calculations

5. Based on the new customers added every month information communicated in the May 5/15 PR (http://ih.advfn.com/p.php?pid=nmona&article=66715832) the following product mix assumption is made for this valuation:

2 weeks = 188 new customers added
1 month equivalent = 188 x 2 = 376 new customers

In order to perform a pps valuation, a normalization of a 1 month equivalent of new customers is required to ensure that the number of new customers signed up every month during the year is achievable:

376 new customers/month - 40% = 225 new customers/month

6. For this valuation, an assumption is made that only 60% of the new customers will purchase a custom designed website.

Customer designed website purchased = 225 x 60% = 135 new customers/month

7. Monthly maintenance revenues = 225 new customers/month x 12 months = 2,700 new customers/ year

Month 1 = 225 customers x $199/month = $44,775
Month 2 = (225 customers x 2) x $199/month = $89,550
Month 3 = (225 customers x 3) x $199/month = $134,325
Month 4 = (225 customers x 4) x $199/month = $179,100
Month 5 = (225 customers x 5) x $199/month = $223,875
Month 6 = (225 customers x 6) x $199/month = $268,650
Month 7 = (225 customers x 7) x $199/month = $313,425
Month 8 = (225 customers x 8) x $199/month = $358,200
Month 9 = (225 customers x 9) x $199/month = $402,975
Month 10= (225 customers x10) x $199/month = $447,750
Month 11= (225 customers x11) x $199/month = $492,525
Month 12= (225 customers x12) x $199/month = $537,300

Total maintenance revenues for 1 year = $3,492,450

8. Website design customers = 135 new customers/month x 12 months = 1,620 new customers/year

As per assumption #2, website design revenues = (810 customers x $1,250/customer) + (810 customers x $2,500/customer)

= $1,012,500 + $2,025,000

Total website design revenues = $3,037,500

Total Pyrotree revenues = $3,492,450 + $3,037,500 $ 6,529,500

PPS Valuation

9. We do not have any information on gross profit margins for the MJ POS systems that NSAV is working on; therefore, we will take a conservative estimate of 75%.

Gross Profit margin = $6,529,500 x 75% = $4,897,463

10. Operating expenses per the 2015 Q1 10Q filed on April 21/15 (http://ih.advfn.com/p.php?pid=nmona&article=66508421) were reported as $70,569 for 3 months.

The annual operating expenses equivalent = $282,276.

For the purposes of this valuation and to generate a conservative valuation, we will triple the annual amount of operating expenses to $846,828.

11. Pyrotree's estimated net income = $4,897,463 - $846,828 = $4,050,635

12. Since NSAV owns 51% of Pyrotree as per the 8-K filed on April 27/15 (http://ih.advfn.com/p.php?pid=nmona&article=66593029), NSAV's portion of the estimated net income:

= $4,050,635 x 51% = $2,065,824

13. An o/s of 3 billion shares will be used to calculate the EPS as per assumption #3 above

EPS = $2,065,824/3,000,000,000 shares outstanding = $0.0007

14. P/E ratios used in the MJ industry range from 15-20 times (http://seekingalpha.com/instablog/822743-rise51/3067885-cannabis-industry-valuation-of-creative-edge-nutrition).

For the purposes of this valuation, a P/E ratio of 15 on the low end will be used even thought the expected growth that NSAV will experience has not been factored in the calculations above.

PPS = 15 * $0.0007 EPS = $0.0103 pps

Go NSAV!