SCOR v Private Equity Placement

There are 2 other methods that you should compare to SCOR. A Reg A Offering and a Private Placement. As a general rule, I recommend that you raise capital through a private placement first and then consider later a Reg A or public offering depending on your size, profitability and future game plan.

1. Unless you are a fairly large operating company with sales greater than $10 million and earnings of $1 million you will not be able to justify the cost of a public offering

2. To justify a market being made in your security you will need multiple market makers willing to trade your shares on NASDAQ.

3. As a public company you will need to meet certain reporting requirements that will require an accounting staff experienced with the requirements needed for public companies which will add $200,000 - $300,000 in overhead.

4. There are initial and annual fees that you will also have to pay to maintain a public company listing.

The best first step is to hire someone like us to do a report that lists all the benefits and responsibilities each option entails. I would also recommend that we do a preliminary "Offering" document to see how it looks. It will be the best money you will spend since any decision you make will likely cost you six figures to execute. In the end, the document can be used to solicit indications of interest from different money sources including obtaining brokerage firm commitment for a public offering.

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