VeriType
Financial Projections
Income Statement
Year One Sales (a) Software Support Education Maintenance & Licensing Total Sales Cost of Goods Sold (b) Gross Profit Operating Expenses Wages (c) Research & Development (c) Business Partner Fees Marketing Support (d) Rent (e) Payroll Tax Expense Total Operating Expenses Other Expenses Interest Expense (f) Depreciation Expense (g) Other SG&A (e) Total Other Expenses Net Income 24,232 16,217 205,900 246,350 (1,291,816) 20,040 25,849 425,005 470,894 361,286 15,268 28,886 989,155 1,033,309 6,402,108 287,083 375,000 126,000 72,000 185,383 499,500 460,000 1,609,500 382,000 72,000 139,860 572,350 485,000 6,167,750 430,000 72,000 160,258 7,887,358 3,262,500 12,112,500 435,000 326,250 30,015 1,610,000 1,207,500 489,375 101,430 Year Two Year Three
4,023,750 15,419,375 3,995,040 15,322,775
1,045,467 3,162,860
Referring Schedules a) Sales Forecast and Schedule of Revenues b) Sales Forecast and COGS c) Personnel d) Marketing e) Admin f) Debt g) Depreciation ** VeriType is an LLC, therefore income taxes will flow through to the company investors. Balance Sheet
Year One Assets: Year Two Year Three
Current Assets Cash Accounts Receivable (a) Inventory (b) Total current assets: Property, Plant and Equipment (c) Less: Accumulated depreciation Net property, plant and equipment Total assets: Liabilities and Stockholders' Equity Current liabilities Notes payable (d) Accounts payable (e) Total current liabilities Long-term liabilities Total liabilities: Stockholders' equity Partners Capital (f) Accumulated Capital Partners' Retained Capital Total liabilities and stockholders' equity 1,600,000 2,350,000 2,350,000 (1,291,816) (930,530) 5,477,371 308,184 1,419,470 7,827,371 479,085 1,555,706 7,924,284 34,568 1,276 35,844 135,057 170,901 39,339 1,179 40,519 95,718 136,237 44,769 1,195 46,964 50,949 96,913 418,102 77,200 16,217 60,983 946,707 6,731,605 530,164 1,100,896 7,178 113,725 42,067 71,658 31,403 129,500 69,119 60,381
418,102 1,484,048 7,863,903
479,085 1,555,706 7,924,284
Notes and Referring Schedules a) Assumes 30/60/90 day collections of 40%/40%/20% and includes bad debt writeoff of 3% b) COGS c) Property d) Debt e) Assumes 30/60/90 day payments of 33%/33%/33% f) Capital Statement of Cash Flows
Cash Flows From Operations Net income Adjustments to reconcile net income to Cash Provided by Operations Depreciation Decrease (increase) in Operating Assets Accounts receivable Inventory Total Cash Flows From Operations Cash Flows From Investing Activities (530,164) (570,732) (7,178) (24,225) 16,217 25,849 28,886 Year One Year Two Year Three (1,291,816) 361,286 6,402,108
(1,275,599) (150,206) 5,836,037
Purchase of equipment Total Cash Flows From Investing Activities Cash Flows From Financing Activities Borrowing of long-term debt Repayment of long-term debt Sales of stock Total Cash Flows From Financing Activities Net Cash Flows Cash, End of Period
(75,924) (75,924) 200,000 (30,375) 1,600,000 1,769,625 418,102 418,102
(36,622) (36,622)
(15,759) (15,759)
(34,568) 750,000 715,432
(39,339) (39,339)
528,605 5,780,939 946,707 6,731,605