Bornara AI — 2026 Business Plan (with 5-Year Vision)
Owner: Mahdi Moradi
Status: Draft
Version: 2.0.0
Last Updated: 2026-04-24
Applies To: Company
1. Executive Summary
Bornara AI operates as a Canadian sole proprietorship under the legal name of Mahdi Moradi. The
business launched in 2025 with website development and consulting, and is executing in 2026 with
a focused 2-stream strategy:
- Bornara Tools — A free, ad-supported online toolbox (35+ developer/AI/business tools)
generating passive revenue through Google AdSense
- Cookie Business — Homemade cookies sold locally and online, led by Narjes (wife)
Deferred to 2027:
- Giftifye.com — A curated Shopify gift store (on hold until Tools is stable)
- AI Agent Platform (SaaS) — A platform for building custom AI assistants
Opportunistic (not actively pursued):
- Tech Consulting — Take projects if they come through network
Strategic pivot (April 20, 2026): The original 4-stream plan was proven unrealistic
by Q1 results (zero progress on Giftifye and AI Platform). Two streams is the maximum
Mahdi can execute well on 17–20 hours/week alongside full-time employment.
2026 Revenue Target
- Minimum: $0
- Expected Range: $0–$2,400 (2026 is year 1 — expect mostly costs)
- Expected Net Loss: $8,000–$18,000 (including wife wages, home office, CCA — CRA-defensible)
2. Business Structure
| Item | Detail |
|---|
| Legal Name | Mahdi Moradi |
| Trade Name | Bornara AI |
| Business Type | Sole Proprietorship (Canadian) |
| Province | Alberta (Calgary) |
| Business Start Date | 2025 |
| Tax Filing | T2125 (Statement of Business Activities) |
| HST Registration | Not required until $30,000 revenue threshold |
| Incorporation | Planned at the start of the first fiscal year with proven income (see Section 5a) |
Trade Name Registration
Registered trade name "Bornara" — see
Trade Name Declaration
3. Revenue Streams (Detailed)
| Attribute | Detail |
|---|
| Platform | Next.js 15, Cloudflare Pages (free tier) |
| Niche | Developer utilities, AI-powered tools, business tools |
| Target Market | Developers, AI practitioners, small business owners |
| Revenue Model | Google AdSense ads (Phase 1), Premium tier (Phase 2) |
| 2026 Revenue Target | $0–$400 |
| URL | tools.bornara.com |
| Build Time | ~126 hours over 6 months (~4–5h/week coding) |
See: Bornara Tools project docs
3.2 Cookie Business — ACTIVE (Narjes-led)
| Attribute | Detail |
|---|
| Product | Homemade cookies — baking, packaging, local + online |
| Platform | Instagram (now), Shopify or local ordering (later) |
| Revenue Model | Direct-to-consumer sales |
| Target Market | Local Calgary + online gift market |
| 2026 Revenue Target | $300–$1,500 |
| Regulations | Cottage food ruling pending (Calgary AHS, by April 25) |
3.3 Tech Consulting — OPPORTUNISTIC
| Attribute | Detail |
|---|
| Services | Shopify setup, AI automation, web development |
| Target Clients | Network referrals only — not actively pursued |
| Revenue Model | Hourly consulting + project-based |
| 2026 Revenue Target | $0–$500 |
| Pricing | $50–$150/hour |
| Attribute | Detail |
|---|
| Status | On hold until Bornara Tools is stable |
| Assets preserved | Domain, branding, supplier research (from 2025) |
| Activation criteria | See 12-Month Roadmap |
| 2026 Revenue Target | $0 |
| Attribute | Detail |
|---|
| Status | Deferred to Q1 2027 |
| Technologies | Azure, Python, LangChain, FastAPI, CosmosDB |
| Activation criteria | See 12-Month Roadmap |
| 2026 Revenue Target | $0 |
4. 2025 Business History (For CRA Context)
| Item | Detail |
|---|
| Revenue | $0 |
| Expenses | ~$245.70 (hosting/domain) + domain renewals |
| Activities | Charity website, domain registrations, Giftifye branding, consulting friends |
| Narjes (Wife) Work | Logo design, brand identity, product research, supplier sourcing, dropshipping study, cookie recipe study, design mockups |
| Wife Payment | $1,500 cash (multiple payments, 1 hand-signed receipt for all) |
| Education | Udemy 1-year subscription (paid from personal account) |
| Equipment Purchased | None new in 2025 |
| Equipment (FMV) | Desktop $300, monitors $80, desk $100, printer $40 |
| Home Office | Not claimed (used $500 employment deduction instead) |
| T2125 Status | Not yet filed (as of March 2026) |
| Estimated Net Loss | ~$1,750–$2,500 |
| Toronto Business Trip | Flight, Uber, food, short-term car rental (see note) |
Toronto Trip Note: In 2025, Mahdi traveled to Toronto to meet friends about
potential business partnerships and consulting opportunities. No concrete deals
resulted. Expenses include flight, Uber, food, and a short-term car rental (stayed
with friends, no hotel). This trip is potentially deductible under CRA rules if the
primary purpose was business exploration — see
CRA Compliance Guide for travel deduction rules. Keep all
receipts. Since no concrete business resulted, claim conservatively or consult an
accountant before including.
4a. Personal Financial Buffer & Funding Plan
Funding Sources
| Source | Owner | Bank | Limit | Rate | Priority |
|---|
| Personal LOC | Mahdi | BMO | $12,000 | ~9–11% variable | Draw first |
| Personal LOC | Narjes | RBC | $32,000 | ~10–12% variable | Draw second |
| Total available | | | $44,000 | | |
| Item | Detail |
|---|
| Draw Method | Gradual, as-needed — not a lump sum |
| Interest | Paid by the business (100% deductible on T2125 Line 8710) |
| Annual Interest Cost (est.) | $1,200–$4,500 (depending on balances drawn) |
| Business Account | RBC (same bank as Narjes's LOC — internal transfers are instant/free) |
How It Works
- Draw from Mahdi's BMO LOC first (lower rate); switch to Narjes's RBC LOC once BMO approaches $12K
- Transfer funds to the RBC business bank account before spending — never directly from LOC
- Each draw is documented with: date, amount, LOC source, purpose, and running balance
- Business pays the interest — tracked as a deductible expense (T2125 Line 8710)
- Principal repayment comes from business revenue once profitable
See LOC Funding Mechanics for full draw process, tracking log, and CRA rules.
Required Documentation (CRA)
Quarterly Draw Budget (2026 Estimate)
| Quarter | Estimated Draw | Cumulative | Purpose |
|---|
| Q1 | $3,000–$5,000 | $3K–$5K | Equipment, Shopify setup, software |
| Q2 | $2,000–$4,000 | $5K–$9K | Advertising, wife's wages, inventory |
| Q3 | $2,000–$4,000 | $7K–$13K | Scaling ads, brother contractor, platform |
| Q4 | $3,000–$5,000 | $10K–$18K | Holiday push, peak ad spend, year-end wages |
CRA Rules for LOC Interest Deduction
- Interest on money borrowed for business purposes is deductible (Income Tax Act s. 20(1)(c))
- Must trace each draw to a business expense — mixed-use loans lose deductibility
- Keep the LOC dedicated to business draws only (do not use for personal expenses)
- If audited, CRA will ask: "What was this money used for?" — your log answers that
Risk Controls
| Risk | Mitigation |
|---|
| Over-borrowing | Hard $25K cap; monthly balance review |
| Mixed personal/business use | Dedicated draws with documented purpose only |
| Interest exceeds budget | Draw conservatively; pay down from revenue |
| Business fails to repay | LOC remains personal liability; day job covers it |
| CRA questions deductibility | Full paper trail: draw log + bank statements + purpose |
4b. Insurance Plan
Current Status
No business insurance is required or recommended until the business has active revenue,
customer-facing operations, or physical product shipments. Insurance should be activated
at the point of first customer interaction, not at business registration.
Phased Insurance Approach
| Phase | Trigger | Insurance Type | Est. Cost |
|---|
| 0 | Now (planning/development) | None required | $0 |
| 1 | First Shopify sale (Giftifye or cookies) | General Liability (CGL) | $300–$500/yr |
| 2 | First food product shipped | Product Liability add-on | +$100–$300/yr |
| 3 | First consulting client (paid) | Professional Liability/E&O | $400–$800/yr |
| 4 | AI platform public launch (paid users) | Cyber Liability / Tech E&O | $500–$1,200/yr |
How Business Insurance Works
- CGL (Commercial General Liability): Covers third-party injury or property damage
claims. Purchased as an annual policy — covers the whole business, not per-project.
- Product Liability: Add-on to CGL for physical products (gifts, cookies). Covers
claims if a product causes harm (e.g., food allergy from cookies).
- Professional Liability / E&O: Covers claims of negligence, errors, or bad advice
in consulting/services. Annual policy. Some clients may require proof of E&O.
- Cyber Liability: Covers data breaches, system failures for the SaaS platform.
Not needed until you have paying users storing data.
Insurance Budget (2026)
| Scenario | When | Annual Cost |
|---|
| No sales yet | Now–Q1 | $0 |
| Shopify sales begin | Q2 | $300–$500 |
| + Cookie shipping | Q2–Q3 | $400–$800 |
| + Consulting active | As needed | +$400–$800 |
| Full coverage (all) | Q3–Q4 | $800–$1,500 |
All insurance premiums are 100% deductible on T2125 (Line 8690).
Recommended Providers (Alberta)
- Zensurance — Online small business insurance, quick quotes
- NEXT Insurance — Designed for small/solo businesses
- Wawanesa — Canadian, good for home-based businesses
- Intact Insurance — Major Canadian provider
Action
Do not purchase insurance until Phase 1 trigger. Budget $500–$1,000 for 2026.
5. Five-Year Vision (2026–2030)
Year 1 — 2026: Foundation & Launch
- Launch all four revenue streams
- Generate $5,000–$8,500 revenue
- Build brand presence
- Develop AI platform MVP
- Establish CRA-compliant documentation system
- Expected loss: $10,000–$20,000
Year 2 — 2027: Growth & Scaling
- Scale Shopify to $15,000–$25,000 revenue
- Launch AI platform publicly with paid subscribers
- Expand consulting client base
- Begin corporate gifting partnerships
- Scale cookie business with local events
- Target: Break even or small profit
Year 3 — 2028: Profitability
- Combined revenue: $50,000–$80,000
- AI platform generates recurring SaaS revenue
- Shopify stores optimized and profitable
- Consider hiring first part-time employee
- Evaluate HST registration (likely required)
- Target: Net profit $10,000–$20,000
Year 4 — 2029: Expansion
- Revenue: $80,000–$150,000
- Incorporate (Bornara AI Inc.) — see Section 5a below
- Expand team (contractors, part-time staff)
- AI platform enterprise features
- Multiple Shopify stores or brands
- Target: Net profit $30,000–$50,000
Year 5 — 2030: Scale
- Revenue: $150,000–$300,000
- Full team operations
- AI platform marketplace with third-party templates
- Franchise or license cookie business model
- Potential investment or acquisition opportunities
- Target: Net profit $60,000–$100,000
5a. Incorporation Decision Framework
| Decision Factor | Rule |
|---|
| When to incorporate | January 1 of the first year where prior-year net profit ≥ $50K |
| Why January 1 | Avoids mid-year complexity (two T2125 filings, stub periods) |
| Accountant consultation | Required 3–6 months before incorporation date |
| Trigger monitoring | Review annually at year-end (December) |
| Current status | Not required — no net profit yet |
Decision process:
- At year-end 2027 (and each year after), review actual net profit
- If profit exceeds $50K, consult accountant in Q1 of the following year
- If accountant confirms benefit, incorporate effective January 1 of the next year
- Example: 2028 profit = $60K → consult accountant Q1 2029 → incorporate Jan 1, 2029 or
Jan 1, 2030
This is not urgent — the business has no profit yet. The framework is here so the trigger
is documented and not missed.
5b. CRA Reasonable Expectation of Profit (REOP)
CRA uses the REOP test to determine if a business is legitimate or a hobby used for tax
deductions. This is critical because Bornara AI shows losses in 2025 and expects losses in
2026.
The CRA Position
- There is no fixed 5-year rule in Canadian tax law. The "5-year" idea is a common
misconception. CRA can challenge business losses at any time.
- However, CRA generally allows year-1 and year-2 losses for legitimate startups if
there is a documented growth plan and evidence of business activity.
- The key test is: "Does this business have a reasonable expectation of profit?"
- CRA looks at: business plan, time invested, revenue trajectory, and whether the owner
is taking steps to become profitable.
Year-by-Year REOP Strategy
| Year | Revenue | Loss | REOP Defence |
|---|
| 2025 | $0 | <$3,000 | Startup year: domain, hosting, planning. Minimal deductions. |
| 2026 | $360–$2,400 | $6K–$13K | First full year: 2 streams active, real revenue, growth plan. |
| 2027 | $8K–$33K | Break even | Revenue growth + more streams active demonstrates trajectory. |
| 2028 | $43K | Profit | Profitable — REOP question is resolved. |
2025 Filing Strategy
Context: 2025 had $0 revenue and minimal activity. Deductions claimed should be
conservative to avoid wasting the early-year goodwill CRA extends to startups.
| 2025 Deduction | Recommended Amount | Notes |
|---|
| Hosting/domains | ~$245.70 | Actual receipted expenses |
| Wife's wages | $500–$1,500 | Only if documented with receipts |
| Equipment FMV (CCA start) | $520 (Year 1 CCA) | Half-year rule on $520 FMV items |
| Home office | $0 | Used $500 employment deduction |
| Total 2025 deductions | $750–$2,300 | Keep under $3,000 as planned |
Important: Do NOT inflate 2025 deductions. A <$3,000 loss with $0 revenue is
perfectly normal for a startup year and will not raise CRA flags. The real REOP
evidence comes from 2026 — having revenue, multiple active streams, and a growth plan.
Evidence to Maintain for REOP Defence
6. SWOT Analysis
Strengths
- Focused execution (2 streams, not 4 — learned from Q1)
- Near-zero startup cost for Bornara Tools (Vercel free tier)
- Technical expertise in full-stack development and AI
- Wife independently leads cookie business
- Full-time employment provides financial stability during growth
- All deferred assets (Giftifye branding, AI Platform docs) preserved for 2027
Weaknesses
- Limited time (9-5 job + kitchen job constraint)
- No existing customer base
- First-time running e-commerce (cookies) and ad-revenue site
- Single developer for Tools (bus factor = 1)
Opportunities
- AI/developer tool audience has high ad RPM ($6–$15)
- SEO compounding: each tool is a permanent traffic asset
- Cookie market is growing (home baking trend)
- Cross-promotion across future streams (Tools → Consulting → Giftifye)
- Tax losses offset employment income during growth phase
Threats
- SEO takes 3–6 months to show results (patience required)
- Cookie business depends on cottage food ruling
- Ad revenue is seasonal and volatile
- Burnout risk from 2 jobs + business
- CRA audit risk if documentation is insufficient
7. Success Metrics
2026 KPIs (Revised)
| Metric | Target |
|---|
| Total Revenue | $360–$2,400 |
| Bornara Tools: tools live | 35 |
| Bornara Tools: monthly visits | 10,000+ by December |
| Bornara Tools: AdSense approved | By July 2026 |
| Cookie orders | 20–50 |
| Cookie Instagram followers | 500+ |
| Consulting projects | 0–2 (opportunistic) |
| Narjes timesheets filed | Monthly, every month |
| CRA documentation complete | Activity log + expense log |
8. Risk Mitigation
| Risk | Mitigation |
|---|
| CRA Audit | Maintain comprehensive documentation (see CRA guide) |
| No Revenue | Tools costs $0 to run; cookies have low overhead |
| Burnout | 2 streams max; strict time blocks; hard stop 10:30 PM |
| Slow SEO | SEO compounds over time; Q4 seasonal boost helps |
| Cookie not legal (Calgary) | Drop cookies, reallocate hours to Tools |
| Ad revenue lower than projected | Tools runs at $0 hosting; API is the only real cost |
| Giftifye never starts | Assets preserved; no money lost by waiting |
9. Getting First Revenue
- Cookie local sales — Sell to friends, family, neighbours once cottage food ruling confirmed
- Cookie Instagram — Build followers through recipe content, take DM orders
- Bornara Tools launch — Get 8 tools live by end of May, start SEO indexing
- AdSense application — Submit when 20+ pages exist (June target)
- Consulting (if it comes) — LinkedIn posts about AI/dev tools, accept referrals
Revenue Timeline
| Channel | Stream | Timeline | Cost |
|---|
| Friends/family | Cookies | May 2026 | $0 |
| Instagram DMs | Cookies | May–Jun | $0 |
| Google AdSense | Bornara Tools | Jul 2026+ | $0 |
| Network referral | Consulting | Anytime | $0 |
| ProductHunt | Bornara Tools | Aug 2026 | $0 |
10. Next Steps
- Get cottage food ruling from Calgary AHS (by April 25)
- Start coding Bornara Tools on May 1 (repo + scaffold)
- Narjes: continue cookie recipe testing + Instagram content
- Begin paying Narjes monthly with documentation (May)
- Set up CRA activity log and expense tracking
- Monthly review: check if schedule is sustainable