Revenue Year 1

(x $1,000) 1 2 3 4 5 6 7 8 9 10 11
Pricing
Type Price/yr Y/Y%↗
A $35 5.0% $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3
B $50 5.0% $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4
C $90 5.0% $7 $7 $7 $7 $7 $7 $7 $7 $7 $7 $7
D $100 5.0% $8 $8 $8 $8 $8 $8 $8 $8 $8 $8 $8
E $110 5.0% $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9
F $150 5.0% $12 $12 $12 $12 $12 $12 $12 $12 $12 $12 $12

Clients
Type 1st Mo Start # M/M%↗
A 1 2 8.5% 2 2 2 3 3 3 3 4 4 4 5
B 2 3 7.5% 0 3 3 3 4 4 4 5 5 5 6
C 5 2 7.0% 0 0 0 0 2 2 2 2 3 3 3
D 12 2 5.0% 0 0 0 0 0 0 0 0 0 0 0
E 15 1 4.0% 0 0 0 0 0 0 0 0 0 0 0
F 18 1 3.0% 0 0 0 0 0 0 0 0 0 0 0
Total: 2 5 5 6 9 9 9 11 12 12 14

New Clients
Type 1 2 3 4 5 6 7 8 9 10 11
A 2 0 0 1 0 0 0 1 0 0 1
B 0 3 0 0 1 0 0 1 0 0 1
C 0 0 0 0 2 0 0 0 1 0 0
D 0 0 0 0 0 0 0 0 0 0 0
E 0 0 0 0 0 0 0 0 0 0 0
F 0 0 0 0 0 0 0 0 0 0 0
Total: 2 3 0 1 3 0 0 2 1 0 2

Revenue
Type
A $6 $6 $6 $9 $9 $9 $9 $12 $12 $12 $14
B $0 $12 $12 $12 $17 $17 $17 $21 $21 $21 $25
C $0 $0 $0 $0 $15 $15 $15 $15 $22 $22 $22
D $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
E $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
F $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total: $6 $18 $18 $21 $40 $40 $40 $47 $55 $55 $62

New Revenue
Type 1 2 3 4 5 6 7 8 9 10 11
A $6 $0 $0 $3 $0 $0 $0 $3 $0 $0 $3
B $0 $12 $0 $0 $4 $0 $0 $4 $0 $0 $4
C $0 $0 $0 $0 $15 $0 $0 $0 $7 $0 $0
D $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 E $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
F $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total: $6 $12 $0 $3 $19 $0 $0 $7 $7 $0 $7

Unadj. Commissions
Type Schedule
A Yr BD1 BD2 BD2 % $1 $1 $1 $2 $2 $2 $2 $2 $2 $2 $3
B 1 20.0% 10.0% 80% $0 $2 $2 $2 $3 $3 $3 $4 $4 $4 $5
C 2 15.0% 7.5% 80% $0 $0 $0 $0 $3 $3 $3 $3 $4 $4 $4
D 3 12.0% 6.0% 60% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
E 4 10.0% 5.0% 40% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
F 5 5.0% 2.5% 40% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total: $1 $4 $4 $4 $8 $8 $8 $9 $11 $11 $12
 Year 2 Year 3 Year 4 Year 5
12 Year 1 Year 2 Year 3 Year 4 Year 5

$3 $35 $36 $38 $40 $42

$4 $50 $52 $55 $57 $60
$7 $89 $94 $98 $103 $108
$8 $99 $104 $109 $115 $121
$9 $109 $115 $120 $126 $133
$12 $149 $156 $164 $172 $181

5 5 13 35 93 246
6 6 15 35 84 199
3 3 7 16 37 83
2 2 4 6 12 21
0 0 1 2 4 6
0 0 1 2 2 3
16 16 41 96 232 558

11 11 11 11 11 11
0 5 8 22 58 153
0 6 9 20 49 115
0 3 4 9 21 46
2 2 2 2 6 9
0 0 1 1 2 2
0 0 1 1 0 1
2 16 25 55 136 326

$14 $116 $313 $883 $2,471 $6,898

$25 $198 $538 $1,326 $3,329 $8,318
$22 $149 $484 $1,123 $2,678 $6,338
$17 $17 $286 $547 $1,043 $1,949
$0 $0 $95 $231 $379 $630
$0 $0 $91 $232 $344 $542
$78 $479 $1,808 $4,342 $10,245 $24,675

11 11 11 11 11
$0 $14 $24 $70 $194 $538
$0 $25 $39 $91 $234 $578
$0 $22 $31 $74 $181 $416
$17 $17 $17 $18 $57 $90
 $0 $0 $10 $10 $21 $22
$0 $0 $13 $14 $0 $15
$17 $78 $135 $277 $688 $1,659

$3 $23 $55 $152 $420 $1,166

$5 $40 $95 $222 $553 $1,368
$4 $30 $87 $187 $440 $1,028
$3 $3 $54 $89 $161 $292
$0 $0 $19 $40 $58 $91
$0 $0 $18 $40 $50 $76
$16 $96 $328 $731 $1,682 $4,021
 COGS Year 1
(x $1,000) Y/Y%↗ 1 2 3 4 5 6 7 8 9 10 11 12
Staff
Hourly
Hourly rate $12.00 3.0%
Seats: Start # 1 1 1 1 1 1 1 1 1 1 1 1 1
Add'l/Client 0.05 (-3.5%)
Total Hourly: $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784 $8,784
Salaried Load 21%
$/Mo
Exec Director $2,250 5.0% $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723 $2,723
Supervisor $870 5.0% $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053 $1,053
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Salaries: $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775 $3,775
Total Staff: $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559 $12,559
Overhead $/Mo
Total Overhead: $782 $782 $782 $782 $782 $782 $782 $782 $782 $782 $782 $782

Total COGS: $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341 $13,341
 COGS Year 2
(x $1,000) Year 1 Year 2
Staff
Hourly
Hourly rate
Seats: 1 2
Add'l/Client
Total Hourly: $105,408 $180,950
Salaried

Exec Director $32,670 $34,304

Supervisor $12,632 $13,264
$0 $0
Total Salaries: $45,302 $47,568
Total Staff: $150,710 $228,518
Overhead
Total Overhead: $9,384 $9,853

Total COGS: $160,094 $238,371

 Oper. Expense Year 1 Year 2
(x $1,000) 1st Mo Salary? Amt Y/Y%↗ 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 Year 2
General & Admin Load: 21%
CEO 1 Y $60 5% 5 5 5 5 5 5 5 5 5 5 5 5 60 62
CFO 1 Y $70 5% 6 6 6 6 6 6 6 6 6 6 6 6 69 73
COO 1 Y $36 5% 3 3 3 3 3 3 3 3 3 3 3 3 36 37
Head of Legal 1 Y $20 5% 2 2 2 2 2 2 2 2 2 2 2 2 20 21
Professional Fees 4 N $20 3% 0 0 0 2 2 2 2 2 2 2 2 2 15 20
Rent 1 N $12 3% 1 1 1 1 1 1 1 1 1 1 1 1 12 12
Office Equipment 1 N $12 3% 1 1 1 1 1 1 1 1 1 1 1 1 12 12
Office Supplies 1 N $12 3% 1 1 1 1 1 1 1 1 1 1 1 1 12 12
Miscellaneous 1 N $12 3% 1 1 1 1 1 1 1 1 1 1 1 1 12 12
0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total G&A 19 19 19 21 21 21 21 21 21 21 21 21 247 262
Sales & Marketing
Head of Marketing 1 Y $20 5% 2 2 2 2 2 2 2 2 2 2 2 2 20 21
Travel & Entertainment 2 N $36 3% 0 3 3 3 3 3 3 3 3 3 3 3 33 37
Conferences 3 N $20 3% 0 0 2 2 2 2 2 2 2 2 2 2 17 20
Website & Graphics 1 N $12 5% 1 1 1 1 1 1 1 1 1 1 1 1 12 12
Marketing Programs 1 N $12 70% 1 1 1 1 1 1 1 1 1 1 1 1 12 20
Internet Advertising 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total S&M 4 7 9 9 9 9 9 9 9 9 9 9 103 120
R&D
CIO 1 Y $65 5% 5 5 5 5 5 5 5 5 5 5 5 5 64 67
Software 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
Cloud Services 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
Licenses and Permits 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
Patent/Trademark Fees 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
Online Services 1 N $10 5% 1 1 1 1 1 1 1 1 1 1 1 1 10 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total R&D 10 10 10 10 10 10 10 10 10 10 10 10 114 119
Total Headcount 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Total Oper. Expense 33 36 38 40 40 40 40 40 40 40 40 40 464 501
 Capital Expense Year 1 Year 2
(x $1,000) Buy Mo Life Price 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 Year 2
DEPRECIATION sched.
PP&E
Building 37 240 $1,300 5 5 5 5 5 5 5 5 5 5 5 5 65 65
HW/SW -1 60 $100 2 2 2 2 2 2 2 2 2 2 2 2 20 20
Communications -1 36 $50 1 1 1 1 1 1 1 1 1 1 1 1 17 17
Equipment 1 60 $100 2 2 2 2 2 2 2 2 2 2 2 2 20 20
Furniture 2 60 $50 1 1 1 1 1 1 1 1 1 1 1 1 10 10
Vehicles 4 48 $200 4 4 4 4 4 4 4 4 4 4 4 4 50 50
Leasehold Imprvemt
Construction 38 60 $250 4 4 4 4 4 4 4 4 4 4 4 4 50 50
Fixtures 42 60 $30 1 1 1 1 1 1 1 1 1 1 1 1 6 6
Furniture 42 60 $15 0 0 0 0 0 0 0 0 0 0 0 0 3 3
Depreciation Expense 20 20 20 20 20 20 20 20 20 20 20 20 241 241
Accum Depreciation 20 40 60 80 100 120 140 160 181 201 221 241 241 481
AMORTIZATION sched.
Patent 1 120 $50 0 0 0 0 0 0 0 0 0 0 0 0 5 5
Copyrights/TMs -1 120 $175 1 1 1 1 1 1 1 1 1 1 1 1 17 17
IP/Trade Secrets -1 120 $150 1 1 1 1 1 1 1 1 1 1 1 1 15 15
Goodwill 18 120 $15 0 0 0 0 0 0 0 0 0 0 0 0 2 2
Amortization Expense 3 3 3 3 3 3 3 3 3 3 3 3 39 39
Accum Amortization 3 7 10 13 16 20 23 26 29 33 36 39 39 78
(x $1,000) 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE
Type
A 6 6 6 9 9 9 9 12 12 12 14 14 116 313 883 2,471 6,898
B 0 12 12 12 17 17 17 21 21 21 25 25 198 538 1,326 3,329 8,318
C 0 0 0 0 15 15 15 15 22 22 22 22 149 484 1,123 2,678 6,338
D 0 0 0 0 0 0 0 0 0 0 0 17 17 286 547 1,043 1,949
E 0 0 0 0 0 0 0 0 0 0 0 0 0 95 231 379 630
F 0 0 0 0 0 0 0 0 0 0 0 0 0 91 232 344 542
Total Revenue 6 18 18 21 40 40 40 47 55 55 62 78 479 1,808 4,342 10,245 24,675
COGS 13 13 13 13 13 13 13 13 13 13 13 13 160 238 461 927 2,083
Gross Margin (8) 5 5 8 27 27 27 34 41 41 48 65 319 1,570 3,881 9,317 22,591
GM% -131% 27% 27% 37% 67% 67% 67% 72% 76% 76% 78% 83% 67% 87% 89% 91% 92%
Commissions
BD-1 0 1 1 1 2 2 2 2 2 2 2 3 19 66 292 1,009 2,412
BD-2 0 1 1 2 3 3 3 4 4 4 5 6 38 131 219 336 804
Total Commissions 1 2 2 3 5 5 5 6 7 7 7 9 58 197 511 1,346 3,216
Oper. Expense
Headcount 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
G&A 19 19 19 21 21 21 21 21 21 21 21 21 247 262 274 286 299
S&M 4 7 9 9 9 9 9 9 9 9 9 9 103 120 138 165 209
R&D 10 10 10 10 10 10 10 10 10 10 10 10 114 119 125 132 138
Total OpEx 33 36 38 40 40 40 40 40 40 40 40 40 464 501 537 582 646
EBITDA (42) (34) (35) (34) (18) (18) (18) (11) (5) (5) 1 16 (202) 871 2,833 7,389 18,729
Capitalization
Depreciation 20 20 20 20 20 20 20 20 20 20 20 20 241 241 241 224 224
Amortization 3 3 3 3 3 3 3 3 3 3 3 3 39 39 39 39 39
Total Captlzat'n 23 23 23 23 23 23 23 23 23 23 23 23 280 280 280 263 263
EBIT (65) (57) (59) (58) (41) (41) (41) (35) (28) (28) (22) (8) (482) 592 2,553 7,126 18,466
INTEREST & TAXES
Int. Exp/(Inc) 3 3 3 3 3 3 3 3 3 3 3 3 30 30 30 30 30
Taxes @ 25% (17) (15) (15) (15) (11) (11) (11) (9) (8) (8) (6) (3) (128) 140 631 1,774 4,609
Total Int & Taxes (14) (12) (13) (13) (8) (8) (8) (7) (5) (5) (4) (0) (98) 170 661 1,804 4,639
Net Income (51) (45) (46) (45) (33) (33) (33) (28) (23) (23) (18) (8) (384) 421 1,893 5,322 13,827
Net Margin 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 23% 44% 52% 56%
Free Cash Flow (95) (69) (20) (219) (8) (7) (7) (3) 2 3 7 17 (398) 709 2,188 3,984 14,034
 Balance Sheet Year 1 Year 2
(x $1,000) 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 Year 2
ASSETS
Current Assets
Cash & Equiv % Rev 377 306 283 61 51 42 32 27 27 27 32 47 47 585
Accts Receivable 10% 1 2 2 2 4 4 4 5 5 5 6 8 8 22
Total Curr Assets 378 307 285 63 55 46 36 32 33 33 38 55 55 607
Long-Term Assets
Fixed + Intang 625 675 675 875 875 875 875 875 875 875 875 875 875 890
(Acc Dep/Amort) (23) (47) (70) (93) (117) (140) (163) (186) (210) (233) (256) (280) (280) (559)
Net Fixed Assets 602 628 605 782 758 735 712 689 665 642 619 595 595 331
Total Assets 980 936 890 845 813 781 748 721 698 675 657 650 650 937
LIABILITIES
Current Liabilities % Rev:
Accounts Payable 5% 0 1 1 1 2 2 2 2 3 3 3 4 4 11
Short-Term Debt 12.5% 80 80 80 80 80 80 80 80 80 80 80 80 80 80
Total Current Liab ↕ rates 80 81 81 81 82 82 82 82 83 83 83 84 84 91
Long-Term Debt 10.0% 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Total Liabilities 280 281 281 281 282 282 282 282 283 283 283 284 284 291
EQUITY
Common Stock → 750 750 750 750 750 750 750 750 750 750 750 750 750 750
Preferred Stock → 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Add'l Paid-in-Capital → 0 0 0 0 0 0 0 0 0 0 0 0 0
Retained Earnings (51) (95) (141) (186) (219) (251) (284) (312) (335) (358) (376) (384) (384) (104)
Total Equity 699 655 609 564 531 499 466 438 415 392 374 366 366 646