Financial Model: Assumptions
Vusion, Inc.
LABELS Company name to be used on all statements Date projections first begin Name of 1st product line Name of 2nd product line Name of 3rd product line Name of 4th product Name of department to be included in COGS Name of 1st department to be included in operating expenses Name of 2nd department to be included in operating expenses Name of 3rd department to be included in operating expenses Manufacturing R&D Sales & Marketing Administration Vusion, Inc. July 1, 1999 Analyzer Analyzer Royalties Sensor Chips
SALES Sensor Chips Sold per Analyzer per year FY 2000 FY 2000 FY 2001 4,800 250 FY 2001 50 FY 2002 150 FY 2003 300 82 FV FY 2005 2004 600 1,000
UNIT SALES Analyzer Royalties (OEM Analyzer units sold) Sensor-Chips AVERAGE UNIT PRICE Analyzer Royalties Sensor Chips
1,052 10,195 41,000 FY 2002 4,800 250 FY 2003 4,800 250
90,200 172,700 FY 2005 4,800 250
FY 2004 4,800 250
CONTRACT AND GRANT REVENUES FY 2000 SBIR Grants NIST ATP Grants Contract Revenue*** 300,000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 -
- 1,000,000
- 3,750,000 12,750,000 12,750,000 12,750,000 9,000,000
***Two contract revenue sources are assumed in the model. $15MM in July 2000 over 4 years and $45MM in July 2001 over 5 years. In addition, margins on Contract Revenue are at 5%.
COST OF GOODS AVERAGE UNIT COST Sensor Chips Returns Returns Royalties to University FY 2000 FY 2001 6.25 FY 2002 5.50 FY 2003 5.20 FY 2004 5.00 FY 2005 4.90 5% 0% 8%
(as a percentage of Sensor Chips revenue) (as a percentage of revenue) (as a percentage of OEM Royalties and Sensor Chip Revenues)
BALANCE SHEET Accounts Receivable (adjustable up to 360 (in days) days) Accounts Payable (fixed at 30 days) Salaries Payable (fixed at 15 days) Taxes Payable (fixed at 90 days) Inventory (adjustable up to 360 days) Available Credit Line Maximum Credit Line Used Capital Equipment Lease Term (1 year minimum) Long Term Borrowings Term (1 year minimum) DEPRECIATION Heavy Manufacturing & Research Manufacturing R&D Sales & Marketing Administration (in days) (in days) (in days) (in days) (as a percentage of net accounts receivable) (amount borrowed not to exceed) (in years) (in years)
60 days 30 days 15 days 90 days 180 days 65% $2,000,000 3 years 5 years
Hardware 5 years 5 years 3 years 3 years 5 years
Software 3 years 3 years 3 years 3 years
Furn & Fixtures 5 years 5 years 5 years 5 years
EXPENSES HEADCOUNT Manufacturing R&D Sales & Marketing Admunstration TOTAL FY 2000 2 5 1 5 13 FY 2001 7 24 8 11 50 FY 2002 13 26 9 13 61 FY 2003 14 28 9 13 64 FY 2004 15 30 9 13 67 FY 2005 15 30 9 13 67
SPONSORED RESEARCH AGREEMENTS University of Texas PER PERSON EXPENSES Manufacturing R&D Sales & Marketing Administration EQUIPMENT PURCHASES Manufacturing R&D Sales & Marketing Administration Benefits & Taxes Salary Increases Sales Commissions Total Sales Through Commissions Business Insurance Anticipated Bad Debt Interest Revenue Interest Expense On Credit Line Interest Expense On Capital Equipment Lease Interest Expense On Long Term Borrowings Combined Federal & State Tax Rate Office Rent Minimum Office Space Term of Office Lease Manufacturing Rent Minimum Manufacturing Space Term of Facilities Lease Utilities Expense Maintenance Expense
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 750,000 750,000 Supplies 300 4,000 500 400 Hardware 3,500 30,000 2,500 2,500 Travel & Meals 300 300 3,000 800 Software 2,000 2,000 1,000 1,000 Phone/Postage 250 250 1,000 500 Furn & Fixtures 1,500 1,500 1,500 1,500 25% 5% 5% 100% 1% 1% 3.5% 8.5%' 8.5% 8.5% 40% $1.00 150 sq ft 72 mos $1.00 150 sq ft 72 mos $0.20 $0.05
(as a percentage of salaries) (as an annual percentage) (as a percentage of sales) (as a percentage of total revenue) (as a percentage of total revenue) (as a percentage of collections) (as a percentage of cash balance) (as a percentage of outstanding balance) (as a percentage of outstanding balance) (as a percentage of outstanding balance) (as a percentage of positive cumulative income) (per square foot) (square footage per person) (in months) (per square foot) (square footage per person) (in months) (per square foot) (per square foot)