SpaceLightStudios-Cost-Volume-ProfitAnalysisandtheBusinessofYoga.pdf

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SPACE & LIGHT STUDIOS: COST-VOLUME-PROFIT ANALYSIS AND THE BUSINESS OF YOGA

Chua Wei Hwa, Koh Wei Chern and Wee Beng Geok

HBP No. NTU060Publication No: ABCC-2014-002

Print Copy Version: 8 Apr 2014

Assistant Professor Chua Wei Hwa, Assistant Professor Koh Wei Chern and Dr Wee Beng Geok prepared this case. It is based on interviews and public sources. Priya Subramanian provided research support and assistance in writing this case. As the case is not intended to illustrate either effective or ineffective practices or policies, the information presented refl ects the authors’ interpretation of events and serves merely to provide opportunities for classroom discussions.

COPYRIGHT © 2014 Nanyang Technological University, Singapore. All rights reserved. No part of this publication may be copied, stored, transmitted, altered, reproduced or distributed in any form or medium whatsoever without the written consent of Nanyang Technological University.

For copies, please write to The Asian Business Case Centre, Nanyang Business School, Nanyang Technological University, Nanyang Avenue, Singapore 639798Phone: +65-6790-4864/5706, Fax: +65-6791-6207, E-mail: [email protected]

As yoga grew in popularity in Singapore, there were many new yoga studios set up in attempts to tap into this growing service industry. Space & Light Studios Pte Ltd was one of them. A small and medium enterprise set up in December 2012, it differentiated itself by offering yoga classes that emphasised on the optimal alignment of the body. This case study explores the entrepreneurial journey of the owners of Space & Light Studios and examines the viability of this yoga business utilising Cost-Volume-Profi t analysis – a management accounting tool.

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This document is authorized for educator review use only by Shamal Mehta, California Miramar University until Nov 2021. Copying or posting is an infringement of copyright. [email protected] or 617.783.7860

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1 Space & Light Yoga. Anusara yoga Singapore, Lynn Sumei, Space & Light Yoga. Retrieved October 26, 2013, from http://www.space-andlightyoga.com/

2 Yong, D. (2008, November 30). Yoga practised here is secular, say instructors. The Straits Times.3 Singapore Sports Council. (2006, March 22). Sports Corporate – More Singaporeans Participating in Sports. Retrieved May 30, 2013, from

http://www.ssc.gov.sg/publish/Corporate/en/news/media_releases/2006_media_releases/More_Singaporeans_Participating_in_Sports.html

4 Singapore Sports Council. (2011). National Sports Participation Survey.5 ibid.6 The Singapore Flyer is a Ferris wheel in Singapore, which in 2013 stood as the largest Ferris wheel in the world. At a height of 165

metres, it is 5 metres taller than the Star of Nanchang and 30 metres taller than the London Eye.7 Alphonso, J. (2009, March 19). Chance to fl y high with yoga this April. My Paper.8 Yoga by the Sea sets record for most participants. (2009, October 5). Channel NewsAsia.9 Yourhealth. (2012, October 8). AsiaOne. Retrieved July 16, 2013 from http://yourhealth.asiaone.com/content/singapores-largest-yoga-

event-sees-record-turnout.

It is our wish that the transformational practice of yoga will help people find contentment, happiness and peace and in this way contribute to the well-being of this planet. May our shared humanity encourage us to open our hearts to live mindfully, love deeply and shine brightly so that together we will light up the world.1

Lynn and Sumei

INTRODUCTION

In December 2012, two ‘Anusara-Inspired’ yoga teachers, Lynn Yeo and Sumei Shum, took over the yoga business segment of Verita. At that time, Verita was a Singapore-based health and wellness centre that offered services ranging from health and nutrition consultations, and health assessments, to spa services and fi tness classes. The duo incorporated an equally owned limited exempt private company, and named their new yoga business – Space & Light Studios Pte Ltd (SLS). With a vision to promote and share the practice of yoga with as many as possible, the two partners focused on both retaining and expanding the studio’s yoga clientele. In addition, they believed that this would be the key to ensuring a sustainable business in the long run.

By May 2013, six months after taking over the yoga business, Lynn and Sumei had experienced the challenges of running a business and made diffi cult choices. Central to the issues they faced was how to minimise costs while maximising revenue. They needed to fi nd ways to maximise the studio space they had rented from Verita, negotiate shared services and facilities with Verita, and manage their team of

yoga instructors. At the same time, to be viable, they had to be able to balance managing the costs of their operations and pricing their yoga classes competitively. This was essential to retaining and attracting new students, while becoming profi table.

THE YOGA SCENE IN SINGAPORE

In 2008, the yoga industry in Singapore was reported to be worth S$15 million to S$25 million a year.2 In the fi rst decade of the 21st century, yoga gained traction in Singapore, rising from the 19th most popular sport in 20013 to the 13th most popular in 2011.4 According to a 2011 Singapore Sports Council survey, there were approximately 37,000 regular yoga practitioners (those who practised yoga at least once a week), 85% of whom were females, making yoga the 8th most popular sporting activity among women in Singapore that year.5 Well-attended mass yoga events were also testament to the increasing popularity of yoga. The fi rst large mass yoga event, Yogamania, was held in 2009 and featured the opportunity to do yoga on the Singapore Flyer6 itself.7 In the same year, another mass yoga event – Yoga by the Sea, a women-only outdoor mass yoga workout event, earned an entry in the Singapore Book of Records for 2,068 participants doing yoga together.8 By 2012, Yoga by the Sea had 2,700 participants.9

The growing popularity of yoga had been associated by some to be due to an increasing interest in maintaining a healthy work-life balance. By the beginning of the 21st century, yoga, an ancient Indian practice that incorporated breathing techniques, physical exercise and meditation, had spread beyond its birthplace to become a popular “mind-body” practice in many countries across the world. To many yoga enthusiasts,

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10 U.S. National Institutes of Health. (2013, June). Yoga for Health. National Centre for Complementary and Alternative Medicine. Retrieved October 26, 2013, from http://nccam.nih.gov/health/yoga/introduction.htm

11 Yoga helped fi x her spine. (2009, July 27). The Straits Times.12 Forrest, Ana T. Fierce medicine: Breakthrough practices to heal the body and ignite the spirit. (2011). Harper Collins Publishers13 U.S. National Institutes of Health. (2013, June). Yoga for Health. National Centre for Complementary and Alternative Medicine. Retrieved

October 26, 2013, from http://nccam.nih.gov/health/yoga/introduction.htm14 Pure Yoga Singapore. (2013). Retrieved October 31, 2013, from http://www.pure-yoga.com/en/singapore/15 Phone liaison with Pure Yoga’s customer service offi cer. (2013, April 18).16 True Yoga – Singapore. (2013). Retrieved October 31, 2013, from http://www.trueyoga.com.sg/home17 Phone liaison with True Yoga’s customer service offi cer. (2013, April 18).18 Pilates is a body conditioning routine that helps build fl exibility and muscle strength.19 COMO Shambhala. (2013). Yoga Singapore: Offi cial site COMO Shambhala Urban Escape Singapore. Retrieved November 1, 2013,

from http://www.comoshambhala.com/singapore20 Yoga is the Movement. (2012). Yoga movement. Retrieved November 1, 2013, from http://yogamovement.com.sg/

the practice promoted the maintenance of a good physical form as well as the cultivation of a healthy mind.10 Furthermore, anecdotal evidence suggested that yoga could correct physical misalignments like scoliosis11,12 and helped in the management of lower back pain.13

In a census of sport facilities conducted by Singapore Sports Council in 2010/2011, there were 336 yoga studios in Singapore. These yoga studios varied in the size of their operations. In 2013, Pure Yoga, one of the larger studios in Singapore, had two locations. Its location in Singapore’s central business district was 11,000 square feet (sq ft). It had four studios for group classes and one personal training studio. The other Pure Yoga location, in the heart of Singapore’s shopping district, was 16,000 sq ft. It had fi ve studios and offered over 150 classes per week. At that time, Pure Yoga also had establishments in Hong Kong, Taipei and New York.14 In 2013, customers of Pure Yoga paid an average of $136 per month (depending on tenure of membership) for unlimited classes in the month.15

True Yoga was another big player in the yoga industry in Singapore and had a very similar set up to Pure Yoga. In 2013, True Yoga’s location in Singapore’s central business district was 21,000 sq ft. It had nine studios (a mix of group and personal training classes) and offered over 200 classes weekly.16 True Yoga’s branch in Singapore’s central shopping district was 13,000 sq ft and had seven studios, which offered over 200 classes weekly. True Yoga’s customers paid (i) a one-time ‘drop-in’ rate of $44.90; (ii) $35 to $40 per class (depending on number of classes bought) for class packages; or (iii) $150 to $190 per month (depending on tenure of membership) for unlimited classes in the month.17 Both Pure and True Yoga offered a large variety of yoga classes such as

Ashtanga yoga, Hatha yoga, Hot yoga, Yin yoga and Yoga Therapy, just to name a few.

In contrast, an example of a boutique yoga studio in close physical proximity to SLS, was COMO Shambhala (COMO). In 2013, COMO offered yoga and pilates18 classes, naturopathy and massage therapy; it occupied 7,000 sq ft in a shopping mall right on the fringe of Singapore’s central shopping district. The space housed four yoga studios, two private pilates training studios, one group pilates reformer studio, one Gyrotonic studio, three massage and treatment rooms, and a retail space. COMO offered over 60 group yoga classes weekly and charged customers (i) a ‘drop-in’ rate of $40; (ii) $25 to $35 per class (depending on number of classes bought) for class packages; or (iii) $350 to $400 per month (depending on tenure of membership) for unlimited yoga and pilates group classes (packaged with naturopathy consultations, massage therapy sessions and complimentary private pilates sessions). COMO offered a smaller variety of yoga classes such as Hatha yoga, Iyengar yoga and Pre- and Post-Natal yoga.19

Another example of a relatively smaller yoga studio was Yoga Movement (YM). In 2013, YM was set up in two locations on the fringe of Singapore’s central business district, one of which was 2,500 sq ft and the other was 3,500 sq ft. Altogether, YM had four yoga studios for group classes and offered almost 100 group classes a week. The studio offered generic hot and non-hot yoga classes. Their pricing refl ected the studio’s no-frills philosophy. In 2013, YM charged customers a $25 one-time ‘drop-in’ rate, $17.50 per class for a block of 20 classes, and $19 per class for a block of 10 classes. However, there were additional charges for rental of towels and purchase of drinking water.20

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21 Friend, J. (2009). Anusara® Yoga Teacher Training Manual. (12th ed.). Anusara Press.22 Offi ce space slump? 2 state-owned sites pull in strong bids (2008, July 18). The Straits Times.23 Verita. (2013). Verita – Personalised Integrated Health. Retrieved August 1, 2013, from http://www.verita.com.sg24 Figures were obtained from Realis Real Estate Information System for commercial properties in Singapore’s central region from Jan

2013 to Jun 2013. Realis was provided by the Urban Redevelopment Authority of Singapore, Singapore’s land use planning and con-servation authority.

THE SPACE & LIGHT STORY

Lynn and Sumei’s yoga journey started with Ashtanga yoga, in 2001 and 2003 respectively; when Lynn was a practising ophthalmologist and Sumei was a corporate lawyer. In 2005, they discovered Anusara yoga. This form of yoga emphasised optimal alignment of the body (based on scientifi c principles of biomechanics) in yoga poses, and also explored the connection between yoga as a physical form of exercise and the philosophical aspects of its practice. Anusara yoga’s philosophy is uplifting and classes typically emphasised the ‘celebration of the heart’.21

As strong believers that an emphasis on optimal body alignment in yoga would promote safe practice and prevent injuries, Lynn and Sumei started formally training to be ‘Anusara-Inspired’ yoga teachers in 2009. They discovered that there were limited opportunities to learn Anusara yoga in Singapore and decided to set up an events management company – Space & Light Yoga LLP to organise Anusara yoga workshops. Their events management company brought acclaimed yoga teachers from abroad to Singapore to conduct Anusara yoga training workshops. Meanwhile, Lynn and Sumei had also started teaching yoga to their friends and family. Through the many informal classes they were holding, word about their yoga events spread among yoga enthusiasts in Singapore.

In April 2010, a friend introduced them to the owner of Verita who was interested to feature yoga classes as part of his wellness centre. By September 2010, Lynn and Sumei had started teaching ‘Anusara-Inspired’ yoga classes in the then newly opened Verita. The holistic health and wellness centre was located in a complex made up of old colonial-style buildings, which was formerly a government ministry’s offi ce complex.22 Situated on the outskirts of Singapore’s central district, Verita offered a lush green and serene environment where its customers could practice yoga in studios with open windows and fresh air. In addition to yoga, Verita also offered Pilates classes, spa services, corporate health retreats, educational

workshops and seminars. There were also nutritional counselling and naturopathic consultations as well as a café that served healthy meal options.23 The goal was to provide science-based alternative methods that were complementary to conventional medical treatment programmes.

In July 2012, when Verita’s yoga manager left for another job opportunity, Lynn and Sumei were asked to take over the vacant role temporarily. In the months that followed and after discussions with Verita’s owner, the idea of them taking over the yoga segment of the wellness centre’s business took shape. As personal believers of a healthy and holistic lifestyle, Lynn and Sumei were excited at the prospect of owning and running the yoga studio at Verita.

THE TAKEOVER

Lynn and Sumei offi cially took over the yoga business on 1 December 2012. Instead of paying Verita a lump sum to “buy over” its yoga business, SLS took on the liability of honouring all existing yoga client packages that remained unfulfi lled as of that date. There were more than 70 clients who had purchased one-year unlimited class packages at a promotional price offered by Verita and these packages had varying outstanding tenures. In addition, there were over 100 clients with fully paid, but unfulfi lled classes, with varying time validity (time validity lasted no more than a year). SLS rented a 1,900 sq ft space within the Verita building. At that time, the minimum monthly rent for a commercial space in Verita’s vicinity in Singapore was $1.62 per square foot. The median rent was $5.89 per square foot and the maximum rent was $19.06 per square foot.24 Initial costs outlay for SLS included a refundable security deposit amounting to 3 months rent, paid to Verita. The lease agreement would end in August 2014, with an option to renew for another 3 to 5 years. SLS also paid a monthly fee of $3,500 to Verita for the use of shared facilities and administrative services. Such facilities included SLS yoga clients’ use of shower and towel facilities in Verita. Furthermore,

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25 Figures have been adjusted for class discussion.

Verita’s front desk receptionists handled some parts of SLS’s miscellaneous administrative matters (for example, signing clients in for yoga classes). SLS also paid Verita for use of the ‘Salt Cave’ for conducting salt stretch classes at a graduated rate based on headcount. There was also discussion on revenue sharing between Verita and SLS when SLS’s business hit a minimum profi t threshold.

Lynn and Sumei spent an additional $10,000 to build a partition to divide the studio into two smaller spaces of approximately 1,100 sq ft and 800 sq ft. They named the larger room, Space studio, and the smaller one, Light studio. This division would enable them to increase the number of class offerings.

THE SLS YOGA BUSINESS

Lynn and Sumei continued to be the primary yoga teachers at SLS subsequent to the takeover. They continued to teach ‘Anusara-Inspired’ yoga classes. While not all the teachers at SLS were ‘Anusara-Inspired’, all yoga classes at SLS were focused on proper physical alignment in yoga poses. Lynn and Sumei maintained a team of teachers that shared this teaching philosophy. In 2013, there were three main categories of yoga classes offered at SLS – (i) group classes, (ii) classes conducted in the ‘Salt-Cave’ (these were semi-private classes); and (iii) private classes. Group yoga classes were the predominantly offered type, and there were about 40 group yoga classes a week held in the Space studio and the Light studio (See Exhibit 1 – Space & Light Studios – Generic Weekly Group Class Schedule). SLS clients could choose to pay a ‘drop-in’ rate when they attended a class, buy a fi xed number of classes with varying time validity, or buy an unlimited number of classes for a fi xed period of time. (See Exhibit 2 – Space & Light Studios – Yoga Price List in 2013).

Salt stretch classes were conducted in a ‘Salt Cave’ within Verita. At that time, Verita offered halotherapy as part of its spa facilities. The ‘Salt Cave’ was an enclosed room where fi ne particles of therapeutic-grade pure salt were dispersed into the air by a nebuliser. The belief was that salt had anti-bacterial and anti-infl ammatory properties, which could accelerate

wound-healing. Hence, inhaling salt particles could clear the respiratory tract and break down mucous. In addition, the anti-infl ammatory qualities of salt could also possibly repair and regenerate tissue in skin conditions. Therefore, holding yoga classes in the ‘Salt Cave’ had the added benefi t of halotherapy. These salt stretch classes required prior appointment and a minimum of two clients. There was also a limit of fi ve clients maximum in the class. For each salt stretch class, SLS would pay Verita a minimum of $30 for rental of the ‘Salt Cave’; and a maximum of $45, depending on the headcount.

For clients who preferred more individual attention or required therapy for injuries, SLS offered the option of private yoga classes. These classes required prior appointment and clients had the choice of one-on-one sessions or arranging to take these classes with a partner. (See Exhibit 2 – Space & Light Studios – Yoga Price List in 2013).

In the month of May 2013, SLS had 250 clients attending the group yoga classes. The average revenue that SLS earned each time a client visited a group class steadily increased from December 2012 to May 2013. In the fi rst two months, the average revenue per client visit was $10. In the subsequent two months, this number had grown to $15. By April and May 2013, the average revenue per client visit was $21. In the same six months, the average revenue per client visit to a private and salt stretch class was $130 and $70 respectively.25 (See Exhibit 3 – Number of Group, Private & Salt Stretch Classes Conducted Monthly in 2013 and Exhibit 4 – Monthly Number of Client Visits for Group, Private & Salt Stretch Classes in 2013).

In addition to regularly scheduled classes, internal workshops were also held from time to time. Some examples of such internal workshops were foundation yoga for beginners, yoga for back pain, and yoga for athletes. Pricing for these workshops varied. From time to time, group yoga classes were also specially organised for employees of corporate clients. External instructors could also utilise the yoga studios for a fee of $90 per hour for the Light studio and $160 per hour for the Space studio. Lynn and Sumei continued to organise workshops through their LLP outfi t and held these workshops at the SLS studios.

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SLS subscribed to a web-based business management software, MINDBODY (MB), developed for the health and wellness industry. In 2013, over 4,000 yoga studios worldwide utilised the MB software.26 The software cost SLS US$70 monthly, which included up to fi ve administrator user accounts (regardless of the number of client accounts set up). MB (i) allowed SLS to keep records of their operations; (ii) provided SLS a platform for managing and analysing client information that could be used for targeted marketing; and (iii) provided SLS tools for effi cient staff and resource allocation. For instance, each time a client attended a class, his or her client account would be updated. As such, through MB, SLS could send clients newsletters and alerts regarding expiry of their class packages via email. Conversely, clients who wanted to keep track of their class packages could log into their MB client accounts. In addition, MB gave SLS easy access to class attendance information, which facilitated scheduling and resource allocation decision-making.

When Lynn and Sumei took over the yoga business in December 2012, Verita had six part-time yoga teachers (including Lynn and Sumei) who were paid on a per class basis. In the subsequent six months, SLS increased the number of yoga teachers to nine. Lynn and Sumei took the quality of their teaching team seriously. Teachers were selected based on factors such as their training background, and whether their teaching philosophy placed an emphasis on optimal alignment of the body. Teachers in SLS were paid a fl at rate per class, regardless of whether it was a group class, salt stretch class or private yoga class. In the beginning of 2013, informal sources revealed that studios in Singapore paid the yoga teachers they employed a range of $35 to $150 for a class that lasted 60 to 90 minutes. At that time, the average rate for yoga teachers was known to be around $60 per class.

In the case of internal workshops conducted by SLS‘s in-house yoga teachers, there were varied revenue sharing arrangements.

CURRENT ISSUES AND CHALLENGES

In May 2013, Lynn and Sumei assessed that SLS was running at only 30% to 40% of capacity. This meant that they had to (i) retain Verita’s clients who had unfulfi lled class packages at the point of their takeover, beyond these clients’ existing commitments to the studio; and (ii) reach out to broader client segments and attract new clients.

When SLS took over, Verita’s yoga clients were mostly females in their 30s and 40s. Due to Verita’s unique location, which was off the main road, many of its clientele drove cars. Furthermore, the free parking spaces in the complex offered an additional incentive for these clients. While the location of Verita (and correspondingly SLS), with its lush surroundings was a strong selling point; it also unfortunately rendered Verita less accessible to those who did not own cars. In an attempt to increase client traffi c fl ow and accessibility, Verita started a shuttle bus service in April 2013 to shuttle clients to and from a nearby MassRapid Transit (Train) station. SLS paid an additional fee of $700 monthly to Verita for their share of this shuttle bus service.

Fundamentally, the yoga classes were the core of SLS’s business. A key factor in attracting new clients and retaining the existing clients was the quality of yoga classes offered at SLS, which invariably depended on having effective yoga instructors. Given the competitiveness of the yoga industry at that time, one of SLS’s key challenges was retaining and attracting good yoga instructors. On the fl ip side, the demand for yoga teachers was a likely factor contributing to the prevalence of yoga teacher training programmes (including the Anusara workshops). The large number of teacher trainee graduates available made the selection of yoga teachers no easy task.

26 Yoga Studio Software: Scheduling, Membership & More. (2013). MindBody Online. Retrieved July 16, 2013, from https://www.mind-bodyonline.com/yogaDo

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On top of quality classes, of interest to SLS’s clients was the scheduling of yoga classes. Firstly, SLS had to offer a comparable number of weekly group yoga classes to competitor studios. Secondly, different segments of customers had different preferences in terms of the class timeslots. SLS had to balance the needs of the different customer segments. In order to address these concerns, Lynn and Sumei were examining the feasibility of starting lunch time yoga classes.

Of relevance was also the variety of group yoga classes offered at SLS. To that end, Lynn and Sumei considered promoting different styles of group classes tailored to more specifi c needs of different target customers (for e.g. offering gentle yoga classes to attract older customers).

In an effort to attract new clients, Lynn and Sumei considered working with DEAL.com.sg to increase the public’s awareness of their studio and to encourage new clients to try out yoga classes at SLS. At that time, Verita had offered a ‘groupon deal’ on groupon.com, which attracted 600 participants to try the Pilates classes offered at Verita at a discounted rate. That presented an opportunity for Lynn and Sumei to cross-

sell their yoga classes to other new Verita clients. Furthermore, the duo was actively exploring the use of social media to promote SLS. For example, SLS utilised their Facebook page to continually update clients of new class offerings and promotions.

In an effort to generate alternative forms of revenue, SLS started dabbling in retail. They were selling a healthy food bar – ‘Kindbar’. Moreover, they were in talks to retail Lululemon27 and other imported yoga apparel. The idea was that a retail corner that carried attractive merchandise would bring more customers to SLS and might entice them to join the yoga classes.

Ultimately, a business would only be sustainable in the long run if it could generate suffi cient revenue in excess of the fi xed and variable costs it incurred. Firstly, it was crucial that SLS priced their classes competitively with respect to other studios. Needless to say, the prices of yoga classes were important to current and potential clients. Secondly, Lynn and Sumei had to consider the costs of SLS’s operations. However, given that SLS had positioned itself as a boutique yoga studio, it needed to invest suffi ciently in the maintenance and improvement of its service quality to be able to retain and attract new clients.

27 Lululemon Athletica was a popular international yoga-inspired athletic apparel company, based in Vancouver.Do

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Package Price (S$) Price Per Class (S$) NotesFirst-time Trial50% off 1st class 19Single ClassRegular 39Full-time Student 28

12-class package3-month validity 378 31.506-month validity 398 33.16

24-class package3-month validity 628 26.166-month validity 698 29.0812-month validity 828 34.50

36-class package3-month validity 868 24.116-month validity 1,018 28.27

Unlimited packages1 month 368 21.64 (at 4 classes / week)3 months 858 20.42 (at 3 classes / week)6 months 1,598 19.02 (at 3 classes / week)1 year 2,400 14.28 (at 3 classes / week)

Salt packages (booking required)

Min 2, Max 5 pax

Single (60 min) 70 Min 2, Max 5 pax3-class package (60 min) 205 68.33 2-month validity5-class package (60 min) 330 66.00 3-month validity

Private Yoga (One-on-one)1 class (60 min) 1505-class package (60 min) 675 135 2-month validity10-class package (60 min) 1,250 125 3-month validity

Private Yoga (Duo)1 class (60 min) 190 95/pax/class5-class package (60 min) 860 (430/pax) 86/pax/class 2-month validity10-class package (60 min) 1,540 (770 pax) 77/pax/class 3-month validitySource: Space & Light Studios Brochure, 2013.

EXHIBIT 2

SPACE & LIGHT STUDIOS – YOGA PRICE LIST IN 2013

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EXHIBIT 3

NUMBER OF GROUP, PRIVATE & SALT STRETCH CLASSES CONDUCTED MONTHLY IN 2013*

EXHIBIT 4

MONTHLY NUMBER OF CLIENT VISITS FOR GROUP, PRIVATE & SALT STRETCH CLASSES IN 2013*

No. of Classes Group Private SaltDec 2012 112 7 0Jan 2013 137 21 6Feb 2013 113 15 0Mar 2013 143 33 1Apr 2013 135 10 1May 2013 155 18 6

Client Visits Group Private SaltDec 2012 296 7 0Jan 2013 1,009 21 18Feb 2013 699 15 0Mar 2013 998 33 2Apr 2013 907 10 2May 2013 1,048 18 12

*Note: The fi gures have been adjusted by the Authors for teaching purposes.

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EXHIBIT 5

SPACE & LIGHT STUDIOS – PHOTOS

Source: Lynn Yeo & Sumei Shum, Space & Light Studios, (2014).

Source: Lynn Yeo & Sumei Shum, Space & Light Studios, (2014).Do

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EXHIBIT 5(CONTINUED)

SPACE & LIGHT STUDIOS – PHOTOS

Source: Lynn Yeo & Sumei Shum, Space & Light Studios, (2014).

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