University Patents, Inc.
Appendix
| Sales Forecast | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | |||||||||||||
| License Sales | 0% | $0 | $0 | $0 | $12,750 | $0 | $0 | $12,750 | $0 | $0 | $0 | $12,750 | $12,750 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $0 | $0 | $12,750 | $0 | $0 | $12,750 | $0 | $0 | $0 | $12,750 | $12,750 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Travel Cost Per License | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
| Demo Model | $0 | $0 | $0 | $1,000 | $0 | $0 | $1,000 | $0 | $0 | $0 | $1,000 | $1,000 | |
| Legal | $0 | $0 | $0 | $1,000 | $0 | $0 | $1,000 | $0 | $0 | $0 | $1,000 | $1,000 | |
| Subtotal Direct Cost of Sales | $700 | $700 | $700 | $2,700 | $700 | $700 | $2,700 | $700 | $700 | $700 | $2,700 | $2,700 | |
| Personnel Plan | |||||||||||||
| 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 Payroll | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Pro Forma Profit and Loss | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | $0 | $0 | $0 | $12,750 | $0 | $0 | $12,750 | $0 | $0 | $0 | $12,750 | $12,750 | |
| Direct Cost of Sales | $700 | $700 | $700 | $2,700 | $700 | $700 | $2,700 | $700 | $700 | $700 | $2,700 | $2,700 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $700 | $700 | $700 | $2,700 | $700 | $700 | $2,700 | $700 | $700 | $700 | $2,700 | $2,700 | |
| Gross Margin | ($700) | ($700) | ($700) | $10,050 | ($700) | ($700) | $10,050 | ($700) | ($700) | ($700) | $10,050 | $10,050 | |
| Gross Margin % | 0.00% | 0.00% | 0.00% | 78.82% | 0.00% | 0.00% | 78.82% | 0.00% | 0.00% | 0.00% | 78.82% | 78.82% | |
| Expenses | |||||||||||||
| Payroll | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $500 | $0 | $0 | $0 | $500 | $0 | $0 | $0 | $500 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Computer Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $80 | $80 | $80 | $80 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | |
| Insurance | $80 | $80 | $80 | $80 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | |
| Payroll Taxes | 15% | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
| ISP Access | 15% | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 |
| Information Services | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $45 | $45 | $45 | $45 | |
| Total Operating Expenses | $6,130 | $6,130 | $6,130 | $6,630 | $6,140 | $6,140 | $6,140 | $6,640 | $6,145 | $6,145 | $6,145 | $6,645 | |
| Profit Before Interest and Taxes | ($6,830) | ($6,830) | ($6,830) | $3,420 | ($6,840) | ($6,840) | $3,910 | ($7,340) | ($6,845) | ($6,845) | $3,905 | $3,405 | |
| EBITDA | ($6,830) | ($6,830) | ($6,830) | $3,420 | ($6,840) | ($6,840) | $3,910 | ($7,340) | ($6,845) | ($6,845) | $3,905 | $3,405 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($6,830) | ($6,830) | ($6,830) | $3,420 | ($6,840) | ($6,840) | $3,910 | ($7,340) | ($6,845) | ($6,845) | $3,905 | $3,405 | |
| Net Profit/Sales | 0.00% | 0.00% | 0.00% | 26.82% | 0.00% | 0.00% | 30.67% | 0.00% | 0.00% | 0.00% | 30.63% | 26.71% | |
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $0 | $0 | $0 | $3,188 | $0 | $0 | $3,188 | $0 | $0 | $0 | $3,188 | $3,188 | |
| Cash from Receivables | $0 | $0 | $0 | $0 | $319 | $9,244 | $0 | $319 | $9,244 | $0 | $0 | $319 | |
| Subtotal Cash from Operations | $0 | $0 | $0 | $3,188 | $319 | $9,244 | $3,188 | $319 | $9,244 | $0 | $3,188 | $3,506 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $30,000 | $0 | $0 | |
| Subtotal Cash Received | $0 | $0 | $0 | $3,188 | $319 | $9,244 | $3,188 | $319 | $9,244 | $30,000 | $3,188 | $3,506 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Bill Payments | $61 | $1,830 | $1,830 | $1,913 | $4,247 | $1,840 | $1,907 | $3,790 | $2,324 | $1,845 | $1,912 | $3,862 | |
| Subtotal Spent on Operations | $5,061 | $6,830 | $6,830 | $6,913 | $9,247 | $6,840 | $6,907 | $8,790 | $7,324 | $6,845 | $6,912 | $8,862 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $5,061 | $6,830 | $6,830 | $6,913 | $9,247 | $6,840 | $6,907 | $8,790 | $7,324 | $6,845 | $6,912 | $8,862 | |
| Net Cash Flow | ($5,061) | ($6,830) | ($6,830) | ($3,726) | ($8,928) | $2,404 | ($3,719) | ($8,471) | $1,920 | $23,155 | ($3,724) | ($5,355) | |
| Cash Balance | $51,189 | $44,359 | $37,529 | $33,803 | $24,875 | $27,279 | $23,559 | $15,088 | $17,008 | $40,164 | $36,439 | $31,084 | |
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $56,250 | $51,189 | $44,359 | $37,529 | $33,803 | $24,875 | $27,279 | $23,559 | $15,088 | $17,008 | $40,164 | $36,439 | $31,084 |
| Accounts Receivable | $0 | $0 | $0 | $0 | $9,563 | $9,244 | $0 | $9,563 | $9,244 | $0 | $0 | $9,563 | $18,806 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $56,250 | $51,189 | $44,359 | $37,529 | $43,366 | $34,119 | $27,279 | $33,122 | $24,332 | $17,008 | $40,164 | $46,002 | $49,890 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $56,250 | $51,189 | $44,359 | $37,529 | $43,366 | $34,119 | $27,279 | $33,122 | $24,332 | $17,008 | $40,164 | $46,002 | $49,890 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $1,769 | $1,769 | $1,769 | $4,186 | $1,779 | $1,779 | $3,712 | $2,262 | $1,784 | $1,784 | $3,717 | $4,200 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $1,769 | $1,769 | $1,769 | $4,186 | $1,779 | $1,779 | $3,712 | $2,262 | $1,784 | $1,784 | $3,717 | $4,200 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $1,769 | $1,769 | $1,769 | $4,186 | $1,779 | $1,779 | $3,712 | $2,262 | $1,784 | $1,784 | $3,717 | $4,200 |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $100,000 | $100,000 | $100,000 |
| Retained Earnings | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) | ($13,750) |
| Earnings | $0 | ($6,830) | ($13,660) | ($20,490) | ($17,070) | ($23,910) | ($30,750) | ($26,840) | ($34,180) | ($41,025) | ($47,870) | ($43,965) | ($40,560) |
| Total Capital | $56,250 | $49,420 | $42,590 | $35,760 | $39,180 | $32,340 | $25,500 | $29,410 | $22,070 | $15,225 | $38,380 | $42,285 | $45,690 |
| Total Liabilities and Capital | $56,250 | $51,189 | $44,359 | $37,529 | $43,366 | $34,119 | $27,279 | $33,122 | $24,332 | $17,009 | $40,164 | $46,002 | $49,890 |
| Net Worth | $56,250 | $49,420 | $42,590 | $35,760 | $39,180 | $32,340 | $25,500 | $29,410 | $22,070 | $15,225 | $38,380 | $42,285 | $45,690 |
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