Appendix

The following information is presented to illustrate the financial details, projections, general assumptions and expected results. As in any business plan, success is solely dependent on the business execution and the circumstances that surround its operations.

Monthly Profit and Loss Projections of FY-1

  Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7 Month-8 Month-9 Month-10 Month-11 Month-12 Total Year 1
Gross Revenue $198,000 $198,000 $198,000 $198,000 $231,000 $231,000 $264,000 $297,000 $330,000 $363,000 $396,000 $396,000 $3,300,000
Direct Cost (10%) $9,900 $9,900 $9,900 $9,900 $11,550 $11,550 $13,200 $14,850 $16,500 $18,150 $19,800 $19,800 $330,000
Operating Income $188,100 $188,100 $188,100 $188,100 $219,450 $219,450 $250,800 $282,150 $313,500 $344,850 $376,200 $376,200 $2,970,000
Gross Margin (%) 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 90.00%
Expenses 0
Payroll $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $500,000
R&D Expenses $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $1,000,000
Marketing Expenses $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $330,000
Professionals/Consultants Fees $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $250,000
Insurance Costs $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $30,000
Management & Operational Cost $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $13,750 $165,000
Depreciation/Amortization of Assets $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $25,000
Misc. Expenses $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $200,000
Total Operating Cost $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $211,667 $2,500,000
EBIT -$23,567 -$23,567 -$23,567 -$23,567 $7,783 $7,783 $39,133 $70,483 $101,833 $133,183 $164,533 $164,533 $470,000
EBIT Margin (%) -12% -12% -12% -12% 3% 3% 15% 24% 31% 37% 42% 42% 14%
Taxes (24%) $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $112,800
Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Profit -$23,567 -$23,567 -$23,567 -$23,567 $7,783 $7,783 $70,483 $101,833 $133,183 $39,133 $164,533 $164,533 $357,200
Net Profit Margin (%) -12% -12% -12% -12% 3% 3% 15% 24% 31% 37% 42% 42% 11%

Quarterly Profit & Loss Projections

Year 4
Year 5
  Q1 Q2 Q3 Q4 Year 4 Q1 Q2 Q3 Q4 Year 4
Gross Revenue $4,851,000 $5,544,000 $6,006,000 $6,699,000 $23,100,000 $9,702,000 $11,088,000 $12,012,000 $13,398,000 $46,200,000
Direct Cost (10%) $242,550 $277,200 $300,300 $334,950 $1,155,000 $485,100 $554,400 $600,600 $669,900 $2,310,000
Operating Income $4,608,450 $5,266,800 $5,705,700 $6,364,050 $21,945,000 $9,216,900 $10,533,600 $11,411,400 $12,728,100 $43,890,000
Gross Margin (%) 0,95 0,95 0,95 0,95 0,95 0,95 0,95 0,95 0,95 0,95
Expenses
Payroll 250,000 250,000 250,000 250,000 1,000,000 300,000 300,000 300,000 300,000 1,200,000
R&D Expenses 250,000 250,000 250,000 250,000 1,000,000 250,000 250,000 250,000 250,000 1,000,000
Marketing Expenses 145,530 166,320 180,180 200,970 693,000 291,060 332,640 360,360 401,940 1,386,000
Professionals/Consultants Fees 100,000 100,000 100,000 100,000 400,000 125,000 125,000 125,000 125,000 500,000
Insurance Costs $12,500 $12,500 $12,500 $12,500 $50,000 $15,000 $15,000 $15,000 $15,000 $60,000
Management & Operational Cost $231,000 $231,000 $231,000 $231,000 $924,000 $462,000 $462,000 $462,000 $462,000 $1,848,000
Depreciation/Amortization of Assets $8,750 $8,750 $8,750 $8,750 $35,000 $8,750 $8,750 $8,750 $8,750 $35,000
Misc. Expenses $125,000 $125,000 $125,000 $125,000 $500,000 $187,500 $187,500 $187,500 $187,500 $750,000
Total Operating Cost $1,122,780 $1,143,570 $1,157,430 $1,178,220 $4,602,000 $1,639,310 $1,680,890 $1,708,610 $1,750,190 $6,779,000
EBIT $3,485,670 $4,123,230 $4,548,270 $5,185,830 $17,343,000 $7,577,590 $8,852,710 $9,702,790 $10,977,910 $37,111,000
EBIT Margin (%) 72% 74% 76% 77% 75% 78% 80% 81% 82% 80%
Taxes (24%) $775,320 $775,320 $775,320 $775,320 $3,101,280 $1,784,760 $1,784,760 $1,784,760 $1,784,760 $7,139,040
Interest Expense 145,530 166,320 180,180 200,970 693,000 291,060 332,640 360,360 401,940 0
Net Profit $3,340,140 $3,956,910 $4,368,090 $4,984,860 $16,650,000 $7,286,530 $8,520,070 $9,342,430 $10,575,970 $37,111,000
Net Profit Margin (%) 69% 71% 73% 74% 72% 75% 77% 78% 79% 80%