cavit financial model(1)

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Revenue Assumptions

Division A- BiopolymerScenario

Revenue Growth 1 2 32009 - - -2010 - - -2011 2.0% 20.0% 15.0%2012 2.0% 18.0% 17.0%

2013 2.0% 15.0% 18.0%2014 2.0% 10.0% 15.0%

2015 2.0% 8.0% 12.0%2016 2.0% 6.0% 10.0%2017 2.0% 4.0% 7.5%2018 2.0% 3.0% 3.0%

Scenario Revenues 1 2 3

2009 $0 $0 $0 2010 $18,000,000 $25,000,000 $36,000,000 2011 $18,360,000 $30,000,000 $41,400,000 2012 $18,727,200 $35,400,000 $48,438,000 2013 $19,101,744 $40,710,000 $57,156,840 2014 $19,483,779 $44,781,000 $65,730,366 2015 $19,873,454 $48,363,480 $73,618,010 2016 $20,270,924 $51,265,289 $80,979,811 2017 $20,676,342 $53,315,900 $87,053,297 2018 $21,089,869 $54,915,377 $89,664,896

Additional Sources of Revenue Scenario 1

International Licensing Revenue: Grants:

Burns Chronic Wounds Reconstruction AFFIRM Dept. of Defense2009 $500,000 2010 $1,000,000 $5,000,000 2011 $ 125,222,002 2012 $1,565,275 $ 292,184,671 2013 $3,130,550 $3,652,308 $ 30,406,107 2014 $4,695,825 $7,304,617 $380,076 2015 $6,261,100 $10,956,925 $760,153 2016 $7,826,375 $14,609,234 $1,140,229 2017 $7,904,639 $18,261,542 $1,520,305 2018 $7,983,685 $18,444,157 $1,900,382

Additional Sources of Revenue Scenario 3International Licensing Revenue: Grants:

Burns Chronic Wounds Reconstruction AFFIRM Dept. of Defense2009 $500,000 2010 $250,000,000 $1,000,000 $5,000,000 2011 $25,000,000 $250,000,000 $7,500,000 $5,000,000 2012 $25,000,000 $25,000,000 $250,000,000 $5,000,000 $5,000,000 2013 $25,000,000 $25,000,000 $25,000,000 $5,000,000 $5,000,000 2014 $25,000,000 $25,000,000 $25,000,000 2015 $25,000,000 $25,000,000 $25,000,000 2016 $25,000,000 $25,000,000 $25,000,000 2017 $25,000,000 $25,000,000 $25,000,000 2018 $25,000,000 $25,000,000 $25,000,000

Margin AssumptionsDivision A

2009 2010 2011Manufacturing (% of Revenues) 50% 50% 50%Lonza Sales Fee (% of Revenues) 15% 15% 15%Total Production Cost (% of Revenues) 65% 65% 65%Lonzas Share of Profit 50% 50% 50%McCoy's Profit (% of Revenues) 17.5% 17.5% 17.5%

Division BIn HUD Phase In PMA Phase

2009 2010 2011Manufacturing (% of Revenues) 85% 85% 85% Price Paid (per cm³) Administrative (% of Revenues) 15% 15% 15% Selling Price (per cm³) McCoy's Profit (% of Revenues) 0% 0% 0% Manufacturing (% of Revenues)

McCoy's Profit (% of Revenues)

Expense Assumptions2009 2010 2011

Operating ExpensesManufacturing Expenses- Division A $0 $12,500,000 $15,000,000 Manufacturing Expenses- Division B $0 $23,375,000 $46,750,000 Total Manufacturing Expense $0 $35,875,000 $61,750,000 Employee Expense HDE Application Clinical $30,000 $0 $0 HDE Application Technical $30,000 $0 $0 PMA Application Clinical $0 $100,000 $100,000 PMA Application Technical $0 $100,000 $100,000 Total Employee Expense $60,000 $200,000 $200,000 Laboratory: Trial Tech Transfer Verification Media Prep 1 $200,000 $400,000 $600,000 Media Release 1 $100,000 $200,000 $300,000

Lonza Skin Culture 1 $60,000 $120,000 $180,000 Cincinnati Skin Culture 1 $60,000 $60,000 $60,000 Lonza Mouse Graft Study 1 $50,000 $100,000 $150,000 Total Lab Expenses $470,000 $880,000 $1,290,000 Cost of Goods Sold $530,000 $36,955,000 $63,240,000

Sales, General & Administrative Lonza's "Sales and Marketing" Payments $0 $8,125,000 $9,750,000 CEO/Regulatory $100,000 $200,000 $200,000 COO/Corporate Liason $100,000 $200,000 $200,000 Senior Research Scientist Boyce $100,000 $100,000 $100,000 Adult Clinical Program Manager $50,000 $100,000 $225,000 National Securities 7% $525,000 $525,000 $0 Accounting Expenses Corporate Counsel $120,000 $200,000 $200,000 Total Personnel Expense $995,000 $9,450,000 $10,675,000 Patents $24,000 $24,000 $175,000 Office Supplies $1,200 $2,400 $4,800 Telephone, Internet Service $5,400 $10,800 $21,600 General Liability (Fire theft) $1,500 $3,000 $6,000 Product Liability $12,000 $24,000 $48,000 Key Man Insurance 3 Employees $5,400 $10,800 $21,600 Director & Officer Insurance $16,000 $32,000 $64,000 Employee Health Insurance $36,000 $72,000 $144,000 Marketing/Tradeshow/Conference $50,000 $100,000 $200,000 Employment Benefits $100,000 $200,000 $400,000 Travel $72,000 $144,000 $288,000 Increase in Patents & Legal due to Licensing Agreements 0 $25,000 $50,000 Increase in Travel due to Licensing Agreements 0 $25,000 $50,000 Additional Administrative Expense Related to HUD $0 $0 $0

Total Other Expenses $323,500 $673,000 $1,473,000 Total SG&A Expenses $1,318,500 $10,123,000 $12,148,000

R&D as % Gross Profit 10.0%R&D Expenses $0 $0 $0

Tax Rate Assumption2009 2010 2011 201235% 35% 35% 35%

Amortizaiton ScheduleYears to Amortize Intangibles 15

2009 2010 20112009 $ 4,000,000 $266,667 $266,667 $266,667 2010 $ 4,000,000 $266,667 $266,667 2011 $ - $0 2012 $ - 2013 $ -

Total Intangible Assets

2014 $ - 2015 $ - 2016 $ - 2017 $ - 2018 $ -

Total Amortization $266,667 $533,333 $533,333

Straight Line Depreciation ScheduleYears to Depreciat Office Equipment 5Years to Depreciate CAPEX 15

Capital Expenditures 2009 20102009 $ 30,000 $6,000 $6,000 2010 $ 30,000 $6,000 2011 $ 30,000 $ - 2012 $ 30,000 $ - 2013 $ 30,000 $ - 2014 $ - $ - 2015 $ - $ - 2016 $ - $ - 2017 $ - $ - 2018 $ - $ -

Total Depreciation $6,000 $12,000

CASH FLOW ASSUMPTIONS2009 2010 2011

Equity Issuance in Year 1 $7,500,000 $0 $0

Intangible AssetsLicensing payment Lonza Marketing & Distribution $2,000,000 $0 $0

Cutanogen Final Payment Lonza $0 $2,000,000 $0 Milestone Payment Boyce HDE app $1,000,000 $0 $0 Milestone Payment University Cincinati HDE APP $1,000,000 $0 $0 Milestone Payment Boyce PMA application $0 $1,000,000 $0 Milestone Payment University Cinncinati PMA APP $0 $1,000,000 $0 Total Intangible Asset Purchased $4,000,000 $4,000,000 $0 Amortization $266,667 $533,333 $533,333 Net Intangible Value $3,733,333 $7,200,000 $6,666,667

Capital Expenditures

Capital Expenditures $0 $0 $0 Asset Purchases Office Equipment $30,000 $30,000 $30,000

Total Capital Expenditures $30,000 $30,000 $30,000

Net Asset Value $24,000 $42,000 $54,000

Office Equipment Purchase

Balance Sheet Assumption2009 2010 2011

AssetsAccounts Receivable (% Revenues) 15% 15% 15%

Restricted Cash $0 $0 $0 Other Current Assets $0 $0 $0 Other Current Asssets $0 $0 $0 Existing Goodwill and Intangibles $0 $0 $0 Transaction Goodwill $0 $0 $0 Other Long-Term Assets $0 $0 $0

LiabilitiesAccounts Payable (% Revenues) 10% 10% 10%Other Current Liabilities $0 $0 $0 Existing Long-Term Debt $0 $0 $0 Exisiting Other Debt Affirm Grant Payment $500,000 $0

Other Long-Term Liabilities $0 $0 $0

Minority Interest $0 $0 $0

80%

If debt is incurred, make sure to account for interest

Valuation Assumptions

Cost of Equity- CAPM 2009 2010 2011 2012Risk Free Rate (20-Year Treasury) 4.47% 4.47% 4.47% 4.47%Beta 1.0 1.0 1.0 1.0Risk Premium 25% 25% 20% 20%Cost of Equity- CAPM 29.5% 29.5% 24.5% 24.5%

Cost of DebtMilestone Payments Interest 0% 0% 0% 0%Working Capital Working Capital as % of Revenues 2%

Terminal Value CalculationTerminal Growth Rate 3.0%Discount Rate 10.0%

% of Dividend to be Paid out of CF After Operations and Investing Activities Post 2009

1 2 3 423456789

1011

Division B- HUD/PMAScenario

Revenue Growth 12009 -2010 -2011 -2012 -

2013 -2014 -

2015 0.0%2016 0.0%2017 0.0%2018 0.0%

Scenario Revenues 1

2009 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0

Additional Sources of Revenue Scenario 1 Additional Sources of Revenue Scenario 2

International Licensing Revenue:

Burns Chronic Wounds$500,000 2009

$6,000,000 2010$125,222,002 2011 $ 125,222,002 $293,749,946 2012 $1,565,275 $ 292,184,671 $37,188,966 2013 $3,130,550 $3,652,308 $12,380,518 2014 $4,695,825 $7,304,617 $17,978,178 2015 $6,261,100 $10,956,925 $23,575,838 2016 $7,826,375 $14,609,234 $27,686,486 2017 $7,904,639 $18,261,542 $28,328,224 2018 $7,983,685 $18,444,157

Total Additional Revenue

Additional Sources of Revenue Scenario 3Total Revenues

Scenario 1$500,000 2009 $500,000

$256,000,000 2010 $24,000,000 $287,500,000 2011 $143,582,002 $310,000,000 2012 $312,477,146 $85,000,000 2013 $56,290,710 $75,000,000 2014 $31,864,297 $75,000,000 2015 $37,851,632 $75,000,000 2016 $43,846,761 $75,000,000 2017 $48,362,828 $75,000,000 2018 $49,418,093


2012 2013 2014 2015 201650% 50% 50% 50% 50%15% 15% 15% 15% 15%65% 65% 65% 65% 65%50% 50% 50% 50% 50%

17.5% 17.5% 17.5% 17.5% 17.5%

Division B In PMA Phase

2012 2013 2014 2015 Price Paid (per cm³) $25.00 $25.00 $20.00 $20.00 Selling Price (per cm³) $55.00 $55.00 $55.00 $55.00 Manufacturing (% of Revenues) 45% 45% 36% 36%McCoy's Profit (% of Revenues) 55% 55% 64% 64%

Expense Assumptions2012 2013 2014 2015 2016

$17,700,000 $20,355,000 $22,390,500 $24,181,740 $25,632,644 $70,125,000 $93,500,000 $116,875,000 $119,796,875 $122,791,797 $87,825,000 $113,855,000 $139,265,500 $143,978,615 $148,424,441

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$100,000 $100,000 $0 $0 $0 $100,000 $100,000 $0 $0 $0 $200,000 $200,000 $0 $0 $0

$400,000 $200,000 $0 $0 $0 $200,000 $100,000 $0 $0 $0


$120,000 $60,000 $0 $0 $0 $0 $0 $0 $0 $0

$100,000 $50,000 $0 $0 $0 $820,000 $410,000 $0 $0 $0

$88,845,000 $114,465,000 $139,265,500 $143,978,615 $148,424,441

$11,505,000 $13,230,750 $14,553,825 $15,718,131 $16,661,219 $200,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $200,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $100,000 $100,000 $100,000 $100,000 $100,000 $375,000 $375,000 $375,000 $375,000 $375,000

$0 $0 $0 $0 $0

$200,000 $200,000 $200,000 $200,000 $200,000 $12,580,000 $15,905,750 $17,228,825 $18,393,131 $19,336,219

$200,000 $200,000 $200,000 $200,000 $100,000 $9,600 $19,200 $19,200 $19,200 $19,200

$43,200 $86,400 $86,400 $86,400 $86,400 $12,000 $24,000 $24,000 $24,000 $24,000 $96,000 $192,000 $192,000 $192,000 $192,000 $43,200 $86,400 $86,400 $86,400 $86,400

$128,000 $256,000 $256,000 $256,000 $256,000 $288,000 $576,000 $576,000 $576,000 $576,000 $400,000 $800,000 $800,000 $800,000 $800,000 $800,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 $576,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

$0 $0 $0 $0 $0

$2,696,000 $5,092,000 $5,092,000 $5,092,000 $4,992,000 $15,276,000 $20,997,750 $22,320,825 $23,485,131 $24,328,219

$32,280,495 $7,343,397 $5,539,602 $6,330,054 $7,087,762

Tax Rate Assumption2013 2014 2015 2016 201735% 35% 35% 35% 35%

Amortizaiton Schedule

2012 2013 2014 2015 2016$266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0 $0

$0

$533,333 $533,333 $533,333 $533,333 $533,333

Straight Line Depreciation Schedule

2011 2012 2013 2014 2015$6,000 $6,000 $6,000 $0 $0 $6,000 $6,000 $6,000 $6,000 $0 $6,000 $6,000 $6,000 $6,000 $6,000

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

$0 $0 $0

$18,000 $24,000 $30,000 $24,000 $18,000

CASH FLOW ASSUMPTIONS2012 2013 2014 2015 2016

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$533,333 $533,333 $533,333 $533,333 $533,333 $6,133,333 $5,600,000 $5,066,667 $4,533,333 $4,000,000

$0 $0 $0 $0 $0 $30,000 $30,000 $0 $0 $0

$30,000 $30,000 $0 $0 $0

$60,000 $60,000 $36,000 $18,000 $6,000

Balance Sheet Assumption2012 2013 2014 2015 2016

15% 15% 15% 15% 15%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10% 10% 10% 10% 10%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

If debt is incurred, make sure to account for interest


2013 2014 2015 2016 20174.47% 4.47% 4.47% 4.47% 4.47%

1.0 1.0 1.0 1.0 1.020% 15% 15% 10% 10%

24.5% 19.5% 19.5% 14.5% 14.5%

0% 0% 0% 0% 0%

5 6 7 8 9

Division B- HUD/PMAScenario

2 3- -- -- -- -

- -- -

2.5% 5.0%2.5% 5.0%2.5% 5.0%2.5% 5.0%

Scenario2 3

$0 $0 $27,500,000 $90,000,000 $55,000,000 $125,000,000 $82,500,000 $200,000,000

$110,000,000 $600,000,000 $137,500,000 $750,000,000 $140,937,500 $787,500,000 $144,460,938 $826,875,000 $148,072,461 $868,218,750 $151,774,272 $911,629,688

Additional Sources of Revenue Scenario 2

International Licensing Revenue: Grants:

Reconstruction AFFIRM Dept. of Defense$500,000 $500,000

$1,000,000 $5,000,000 $6,000,000 $7,500,000 $5,000,000 $137,722,002

$293,749,946 $ 30,406,107 $37,188,966

$380,076 $12,380,518 $760,153 $17,978,178

$1,140,229 $23,575,838 $1,520,305 $27,686,486 $1,900,382 $28,328,224


Total Revenues2 3

$500,000 $500,000 $58,500,000 $382,000,000

$222,722,002 $453,900,000 $411,649,946 $558,438,000 $187,898,966 $742,156,840 $194,661,518 $890,730,366 $207,279,158 $936,118,010 $219,302,064 $982,854,811 $229,074,847 $1,030,272,047 $235,017,874 $1,076,294,583


2017 201850% 50%15% 15%65% 65%50% 50%

17.5% 17.5%

Division B In PMA Phase

2016 2017 2018$20.00 $20.00 $20.00 $55.00 $55.00 $55.00

36% 36% 36%64% 64% 64%

Expense Assumptions2017 2018

$26,657,950 $27,457,689 $125,861,592 $129,008,132 $152,519,542 $156,465,820

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0

$152,519,542 $156,465,820

$17,327,668 $17,847,498 $1,000,000 $1,000,000 $1,000,000 $1,000,000

$100,000 $100,000 $375,000 $375,000

$0 $0

$200,000 $200,000 $20,002,668 $20,522,498

$100,000 $100,000 $19,200 $19,200 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$86,400 $86,400 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$24,000 $24,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):

$192,000 $192,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$86,400 $86,400 Assumed Growth Rate in Item Line Expense (Year 1 - 5):

$256,000 $256,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$576,000 $576,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$800,000 $800,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):

$1,600,000 $1,600,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):$1,152,000 $1,152,000 Assumed Growth Rate in Item Line Expense (Year 1 - 5):

$50,000 $50,000 $50,000 $50,000

$0 $0

$4,992,000 $4,992,000 $24,994,668 $25,514,498

$7,655,531 $7,855,205

Tax Rate Assumption201835%


2017 2018$266,667 $266,667 $266,667 $266,667

$0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0

$0

$533,333 $533,333

Straight Line Depreciation Schedule

2016 2017 2018$0 $0 $0 $0 $0 $0 $0 $0 $0

$6,000 $0 $0 $6,000 $6,000 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0

$12,000 $6,000 $0

CASH FLOW ASSUMPTIONS2017 2018

$0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$533,333 $533,333 $3,466,667 $2,933,333

$0 $0 $0 $0

$0 $0

$0 $0

Balance Sheet Assumption2017 2018

15% 15%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10% 10%$0 $0 $0 $0 $0 $0

$0 $0

$0 $0


20184.47%

1.010%

14.5%

0%

Forecasting Licensing Agreements and Royalty Payments CalculationsUSA STATISTICS USED FOR FORECASTING

Total expenditure on health as % GDP (2005)GDP (2008, official exchange rate)

S. Korea

05.9%²GDP (2008, official exchange rate) $ 857,500,000,000

Total Health Expenditure $ 50,592,500,000 Burns Market $ 69,681,520 Wounds $ 162,590,214 Reconstructive $ 12,310,402

Population and GDP figures from CIA world factbookHealth Data from WHO

2 Data reported from WHO on Republic of Korea Assumed Licensing Agreement as % of Mkt Value

S. KoreaTotal Health Expenditure $ 50,592,500,000 Implied Burns Market $ 69,681,520 Implied Wounds $ 162,590,214 Implied Reconstructive $ 12,310,402 Licensing Agreement Payment S. KoreaBurns Market $ 2,787,261 Wounds $ 6,503,609 Reconstructive $ 492,416

Additional Sources of Revenue Hlookup TableInternational Licensing

Burn1

2009 $ - 2010 $ - 2011 $ 125,222,002 2012 $ 1,565,275 2013 $ 3,130,550 2014 $ 4,695,825 2015 $ 6,261,100 2016 $ 7,826,375

Total Expenditure on Health as % of GDP (2005]

2017 $ 7,904,639 2018 $ 7,983,685

R&D as % of Gross Profit Under 0% Scenario 5.0%

100%100%100%100%100%100%100%100%100%100%

Forecasting Licensing Agreements and Royalty Payments Calculations

Health Care Expenditure15.2% Burns Market

$14,330,000,000,000 WoundsReconstructive

China Japan India Denmark Finland

4.7% 8.2% 5.0% 9.1% 7.5% $ 4,222,000,000,000 $ 4,844,000,000,000 $ 1,237,000,000,000 $ 369,600,000,000 $ 281,200,000,000

$ 198,434,000,000 $ 397,208,000,000 $ 61,850,000,000 $ 33,633,600,000 $ 21,090,000,000 $ 273,304,991 $ 547,078,268 $ 85,186,579 $ 46,323,870 $ 29,047,453 $ 637,711,647 $ 1,276,515,958 $ 198,768,685 $ 108,089,029 $ 67,777,390 $ 35,347,446 $ 149,899,445 $ 5,395,150 $ 12,986,125 $ 7,532,973

Population and GDP figures from CIA world factbookHealth Data from WHOData reported from WHO on Republic of Korea

4%China Japan India "Europe" Denmark

$ 198,434,000,000 $ 397,208,000,000 $ 61,850,000,000 $ 1,564,861,800,000 $ 33,633,600,000 $ 273,304,991 $ 547,078,268 $ 85,186,579 $ 2,155,298,692 $ 46,323,870 $ 637,711,647 $ 1,276,515,958 $ 198,768,685 $ 5,029,030,282 $ 108,089,029 $ 35,347,446 $ 149,899,445 $ 5,395,150 $ 557,200,235 $ 12,986,125

China Japan India "Europe" Total $ 10,932,200 $ 21,883,131 $ 3,407,463 $ 86,211,948 $ 125,222,002 $ 25,508,466 $ 51,060,638 $ 7,950,747 $ 201,161,211 $ 292,184,671 $ 1,413,898 $ 5,995,978 $ 215,806 $ 22,288,009 $ 30,406,107

Additional Sources of Revenue Hlookup TableInternational Licensing

Burn Chronic Wounds2 3 1 2 3

$ - $ - $ - $ - $ - $ - $ 250,000,000 $ - $ - $ - $ 125,222,002 $ 25,000,000 $ - $ - $ 250,000,000 $ 1,565,275 $ 25,000,000 $ 292,184,671 $ 292,184,671 $ 25,000,000 $ 3,130,550 $ 25,000,000 $ 3,652,308 $ 3,652,308 $ 25,000,000 $ 4,695,825 $ 25,000,000 $ 7,304,617 $ 7,304,617 $ 25,000,000 $ 6,261,100 $ 25,000,000 $ 10,956,925 $ 10,956,925 $ 25,000,000 $ 7,826,375 $ 25,000,000 $ 14,609,234 $ 14,609,234 $ 25,000,000

$ 7,904,639 $ 25,000,000 $ 18,261,542 $ 18,261,542 $ 25,000,000 $ 7,983,685 $ 25,000,000 $ 18,444,157 $ 18,444,157 $ 25,000,000

Forecasting FiguresScenario 2 Revs as % of Skin Graft Market ($11,000,000,000)

0.250% Year 10.500% Year 20.750% Year 31.000% Year 41.250% Year 5

Assumed Royalty PaymentAssumed Growth in Markets after first 5 years

NI Under Revenue Scenario 1 for Valuation Sheet in Print Doc2009 2010 2011 2012

Revenues $0 $25,000,000 $30,000,000 $35,400,000 COGS $530,000 $10,080,000 $10,670,000 $10,383,600 SG&A $1,318,500 $7,798,000 $8,265,000 $9,757,340 R&D $0 $0 $0 $0 Depreciation $6,000 $12,000 $18,000 $24,000 Amortization $266,667 $533,333 $533,333 $533,333 Pretax Profit ($2,121,167) $6,576,667 $10,513,667 $14,701,727 Tax $0 $2,301,833 $3,679,783 $5,145,604 Corresponding NI ($2,121,167) $4,274,833 $6,833,883 $9,556,122

NI Under Revenue Scenario 2 for Valuation Sheet in Print Doc2009 2010 2011 2012

Revenues $500,000 $58,500,000 $222,722,002 $411,649,946 COGS $530,000 $36,955,000 $63,240,000 $88,845,000 SG&A $1,318,500 $10,073,000 $12,048,000 $15,176,000 R&D $0 $0 $0 $32,280,495 Depreciation $6,000 $12,000 $18,000 $24,000 Amortization $266,667 $533,333 $533,333 $533,333 Pretax Profit ($1,621,167) $10,926,667 $146,882,669 $274,791,119 Tax $0 $3,824,333 $51,408,934 $96,176,891 Corresponding NI ($1,621,167) $7,102,333 $95,473,735 $178,614,227

Matrix CalculationsRevenue Matrix

US Company Value with a 0% Chance of the Skin Graft Getting FDA Approval2009 2010 2011 2012

US 0% Skin Graft $500,000 $31,000,000 $42,500,000 $35,400,000 COGS $530,000 $12,500,000 $15,000,000 $17,700,000

SG&A $1,318,500 $10,073,000 $12,048,000 $15,176,000 R&D $0 $0 $0 $885,000 Depr. & Amort $272,667 $545,333 $551,333 $557,333 EBIT ($1,621,167) $7,881,667 $14,900,667 $1,081,667 Taxes $0 $2,758,583 $5,215,233 $378,583 NI ($1,621,167) $5,123,083 $9,685,433 $703,083 Non-Cash Charges $272,667 $545,333 $551,333 $557,333 Less Net Working Capital ($10,000) ($610,000) ($230,000) $142,000 FCFF ($1,358,500) $5,058,417 $10,006,767 $1,402,417 PV of FCFF ($1,068,339) $3,072,521 $4,883,255 $549,829 Terminal Value $0 Sum of PV of FCFF $6,698,474 Value of Firm $6,698,474

US 100% Skin GraftRevenues $500,000 $58,500,000 $97,500,000 $117,900,000 COGS $530,000 $36,955,000 $63,240,000 $88,845,000 SG&A $1,318,500 $10,073,000 $12,048,000 $15,176,000 R&D $0 $0 $0 $32,280,495 Depr. & Amort $272,667 $545,333 $551,333 $557,333 EBIT ($1,621,167) $10,926,667 $21,660,667 ($18,958,828)Taxes $0 $3,824,333 $7,581,233 ($6,635,590)NI ($1,621,167) $7,102,333 $14,079,433 ($12,323,238)Non-Cash Charges $272,667 $545,333 $551,333 $557,333 Less Net Working Capital ($10,000) ($1,160,000) ($780,000) ($408,000)FCFF ($1,358,500) $6,487,667 $13,850,767 ($12,173,905)PV of FCFF ($1,068,339) $3,940,659 $6,759,108 ($4,772,883)Terminal ValueSum of PV of FCFF $16,549,853 Value of Firm $16,549,853

International RevenuesSouth Korea Burns $2,787,261 $34,841 Wounds $6,503,609 ReconstructiveSouth Korea Total $2,787,261 $6,538,449China Burns $10,932,200 $136,652 Wounds $25,508,466 ReconstructiveChina Total $10,932,200 $25,645,118Japan Burns $21,883,131 $273,539 Wounds $51,060,638 ReconstructiveJapan Total $21,883,131 $51,334,177

India Burns $3,407,463 $42,593 Wounds $7,950,747 ReconstructiveIndia Total $3,407,463 $7,993,341Europe

Burns $86,211,948 $1,077,649 Wounds $201,161,211 ReconstructiveEurope Total $86,211,948 $202,238,861

Incremental Change in SG&A Expenses as a result of Licensing Agreements (per Country)2009 2010 2011 2012

Patents & Legal $0 $5,000 $10,000 $10,000 Travel $0 $5,000 $10,000 $10,000 Total $0 $10,000 $20,000 $20,000

Value of South Korea Licensing Agreement2009 2010 2011 2012

Increase in Revenue $0 $0 $2,787,261 $6,538,449 Increase in Expenses $0 $10,000 $20,000 $20,000

$0 ($3,500) $968,541 $2,281,457 Increase in NI $0 ($6,500) $1,798,720 $4,236,992 Change in NWC $0 0 ($55,745) ($75,024)Change in FCFF $0 ($6,500) $1,742,974 $4,161,968 PV of FCFF $0 ($3,948) $850,563 $1,631,735 Value of South Korea Licensing Agreement $2,924,935

Value of China Licensing Agreement2009 2010 2011 2012


$0 ($3,500) $3,819,270 $8,968,791 Increase in NI $0 ($6,500) $7,092,930 $16,656,327 Change in NWC $0 0 ($218,644) ($294,258)Change in FCFF $0 ($6,500) $6,874,286 $16,362,069 PV of FCFF $0 ($3,948) $3,354,619 $6,414,888 Value of China Licensing Agreement $11,450,226

Value of Japan Licensing Agreement2009 2010 2011 2012


$0 ($3,500) $7,652,096 $17,959,962 Increase in NI $0 ($6,500) $14,211,035 $33,354,215 Change in NWC $0 0 ($437,663) ($589,021)Change in FCFF $0 ($6,500) $13,773,372 $32,765,194 PV of FCFF $0 ($3,948) $6,721,340 $12,845,874 Value of Japan Licensing Agreement $23,665,893

Value of India Licensing Agreement2009 2010 2011 2012


Increase (Decrease) in Taxes



$0 ($3,500) $1,185,612 $2,790,669 Increase in NI $0 ($6,500) $2,201,851 $5,182,671 Change in NWC $0 0 ($68,149) ($91,718)Change in FCFF $0 ($6,500) $2,133,702 $5,090,954 PV of FCFF $0 ($3,948) $1,041,236 $1,995,952 Value of India Licensing Agreement $3,495,956

Value of Europe Licensing Agreement2009 2010 2011 2012


$0 ($3,500) $30,167,182 $70,776,601 Increase in NI $0 ($6,500) $56,024,766 $131,442,259 Change in NWC $0 0 ($1,724,239) ($2,320,538)Change in FCFF $0 ($6,500) $54,300,527 $129,121,721 PV of FCFF $0 ($3,948) $26,498,399 $50,623,271 Value of Europe Licensing Agreement $93,030,003

NI ($1,621,167) $7,069,833 $95,408,735 $178,549,227 PV of FCFF ($1,068,339) $3,920,918 $45,225,265 $68,738,837

NI difference $0 $0 $0 Revenues $58,500,000 $222,722,002 $411,649,946 COGS $36,955,000 $63,240,000 $88,845,000 SG&A $10,123,000 $12,148,000 $15,276,000 R&D $0 $0 $32,280,495 Taxes $0 $3,806,833 $51,373,934 $96,141,891

NWC ($10,000) ($1,160,000) ($3,284,440) ($3,778,559)

FCFF ($1,358,500) $6,455,167 $92,675,628 $175,328,001 ($1,068,339) $3,920,918 $45,225,265 $68,738,837

$0 $0 $0 $0 ($1,068,339) $3,920,918 $45,225,265 $68,738,837




$ 2,178,160,000,000 $ 3,000,000,000 0.138% $ 7,000,000,000 0.321% $ 1,000,000,000 0.046%

France Germany Italy Netherlands Spain

11.2% 10.7% 8.9% 9.2% 8.2% $ 2,987,000,000,000 $ 3,818,000,000,000 $2,399,000,000,000 $ 909,500,000,000 $1,683,000,000,000

$ 334,544,000,000 $ 408,526,000,000 $ 213,511,000,000 $ 83,674,000,000 $ 138,006,000,000 $ 460,770,559 $ 562,666,654 $ 294,070,684 $ 115,244,977 $ 190,076,946 $ 1,075,131,303 $ 1,312,888,860 $ 686,164,928 $ 268,904,947 $ 443,512,873 $ 122,718,559 $ 144,230,219 $ 75,086,048 $ 24,931,330 $ 45,238,313

Finland France Germany Italy Netherlands $ 21,090,000,000 $ 334,544,000,000 $ 408,526,000,000 $ 213,511,000,000 $ 83,674,000,000 $ 29,047,453 $ 460,770,559 $ 562,666,654 $ 294,070,684 $ 115,244,977 $ 67,777,390 $ 1,075,131,303 $ 1,312,888,860 $ 686,164,928 $ 268,904,947 $ 7,532,973 $ 122,718,559 $ 144,230,219 $ 75,086,048 $ 24,931,330

Additional Sources of Revenue Hlookup TableInternational Licensing Grants

Reconstruction AFIRM1 2 3 1 2

$ - $ - $ - $ 500,000 $ 500,000 $ - $ - $ - $ 1,000,000 $ 1,000,000 $ - $ - $ - $ - $ 7,500,000 $ - $ - $ 250,000,000 $ - $ - $ 30,406,107 $ 30,406,107 $ 25,000,000 $ - $ - $ 380,076 $ 380,076 $ 25,000,000 $ - $ - $ 760,153 $ 760,153 $ 25,000,000 $ - $ - $ 1,140,229 $ 1,140,229 $ 25,000,000 $ - $ -

Market as % of Health Expenditures

$ 1,520,305 $ 1,520,305 $ 25,000,000 $ - $ - $ 1,900,382 $ 1,900,382 $ 25,000,000 $ - $ -

Forecasting FiguresScenario 2 Revs as % of Skin Graft Market ($11,000,000,000)

20%1%

NI Under Revenue Scenario 1 for Valuation Sheet in Print Doc2013 2014 2015 2016 2017

$40,710,000 $44,781,000 $48,363,480 $51,265,289 $53,315,900 $10,160,872 $9,741,889 $9,936,727 $10,135,462 $10,338,171 $13,875,067 $13,999,228 $14,125,873 $14,155,050 $14,286,811

$0 $0 $0 $0 $0 $30,000 $24,000 $18,000 $12,000 $6,000

$533,333 $533,333 $533,333 $533,333 $533,333 $16,110,728 $20,482,549 $23,749,547 $26,429,444 $28,151,585 $5,638,755 $7,168,892 $8,312,341 $9,250,305 $9,853,055

$10,471,973 $13,313,657 $15,437,205 $17,179,138 $18,298,530

NI Under Revenue Scenario 2 for Valuation Sheet in Print Doc2013 2014 2015 2016 2017

$187,898,966 $194,661,518 $207,279,158 $219,302,064 $229,074,847 $114,465,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542

$20,897,750 $22,220,825 $23,385,131 $24,228,219 $24,894,668 $7,343,397 $5,539,602 $6,330,054 $7,087,762 $7,655,531

$30,000 $24,000 $18,000 $12,000 $6,000 $533,333 $533,333 $533,333 $533,333 $533,333

$44,629,486 $27,078,258 $33,034,024 $39,016,308 $43,465,774 $15,620,320 $9,477,390 $11,561,909 $13,655,708 $15,213,021 $29,009,166 $17,600,868 $21,472,116 $25,360,600 $28,252,753

US Company Value with a 0% Chance of the Skin Graft Getting FDA Approval2013 2014 2015 2016 2017

$40,710,000 $44,781,000 $48,363,480 $51,265,289 $53,315,900 $20,355,000 $22,390,500 $24,181,740 $25,632,644 $26,657,950

$20,897,750 $22,220,825 $23,385,131 $24,228,219 $24,894,668 $1,017,750 $1,119,525 $1,209,087 $1,281,632 $1,332,898

$563,333 $557,333 $551,333 $545,333 $539,333 ($2,123,833) ($1,507,183) ($963,811) ($422,540) ($108,948)

$0 $0 $0 $0 $0 ($2,123,833) ($1,507,183) ($963,811) ($422,540) ($108,948)

$563,333 $557,333 $551,333 $545,333 $539,333 ($106,200) ($81,420) ($71,650) ($58,036) ($41,012)

($1,666,700) ($1,031,270) ($484,128) $64,757 $389,373 ($524,981) ($271,894) ($106,839) $12,484 $65,577

US 100% Skin Graft$150,710,000 $182,281,000 $189,300,980 $195,726,226 $201,388,361 $114,465,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542

$20,897,750 $22,220,825 $23,385,131 $24,228,219 $24,894,668 $7,343,397 $5,539,602 $6,330,054 $7,087,762 $7,655,531

$563,333 $557,333 $551,333 $545,333 $539,333 $7,440,520 $14,697,740 $15,055,846 $15,440,471 $15,779,288 $2,604,182 $5,144,209 $5,269,546 $5,404,165 $5,522,751 $4,836,338 $9,553,531 $9,786,300 $10,036,306 $10,256,537

$563,333 $557,333 $551,333 $545,333 $539,333 ($656,200) ($631,420) ($140,400) ($128,505) ($113,243)

$4,743,471 $9,479,444 $10,197,234 $10,453,134 $10,682,628 $1,494,110 $2,499,253 $2,250,354 $2,015,224 $1,799,133

International Revenues

$69,682 $104,522 $139,363 $174,204 $175,946$81,295 $162,590 $243,885 $325,180 $406,476

$492,416 $6,155 $12,310 $18,466 $24,621$643,393 $273,268 $395,559 $517,850 $607,042

$273,305 $409,957 $546,610 $683,262 $690,095$318,856 $637,712 $956,567 $1,275,423 $1,594,279

$1,413,898 $17,674 $35,347 $53,021 $70,695$2,006,059 $1,065,343 $1,538,525 $2,011,707 $2,355,069

$547,078 $820,617 $1,094,157 $1,367,696 $1,381,373$638,258 $1,276,516 $1,914,774 $2,553,032 $3,191,290

$5,995,978 $74,950 $149,899 $224,849 $299,799$7,181,314 $2,172,083 $3,158,830 $4,145,577 $4,872,461

$85,187 $127,780 $170,373 $212,966 $215,096$99,384 $198,769 $298,153 $397,537 $496,922

$215,806 $2,698 $5,395 $8,093 $10,790$400,377 $329,246 $473,921 $618,597 $722,808

$2,155,299 $3,232,948 $4,310,597 $5,388,247 $5,442,129$2,514,515 $5,029,030 $7,543,545 $10,058,061 $12,572,576

$22,288,009 $278,600 $557,200 $835,800 $1,114,400$26,957,823 $8,540,578 $12,411,343 $16,282,108 $19,129,105

Incremental Change in SG&A Expenses as a result of Licensing Agreements (per Country)2013 2014 2015 2016 2017

$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $20,000 $20,000 $20,000 $20,000 $20,000

Value of South Korea Licensing Agreement2013 2014 2015 2016 2017

$643,393 $273,268 $395,559 $517,850 $607,042 $20,000 $20,000 $20,000 $20,000 $20,000

$218,187 $88,644 $131,446 $174,247 $205,465 $405,205 $164,624 $244,113 $323,602 $381,577 $117,901 $7,403 ($2,446) ($2,446) ($1,784)$523,106 $172,027 $241,667 $321,157 $379,794 $164,769 $45,355 $53,332 $61,915 $63,964

Value of China Licensing Agreement2013 2014 2015 2016 2017

$2,006,059 $1,065,343 $1,538,525 $2,011,707 $2,355,069 $20,000 $20,000 $20,000 $20,000 $20,000

$695,121 $365,870 $531,484 $697,097 $817,274 $1,290,938 $679,473 $987,041 $1,294,610 $1,517,795

$472,781 $18,814 ($9,464) ($9,464) ($6,867)$1,763,719 $698,287 $977,578 $1,285,146 $1,510,928

$555,540 $184,103 $215,735 $247,759 $254,465

Value of Japan Licensing Agreement2013 2014 2015 2016 2017

$7,181,314 $2,172,083 $3,158,830 $4,145,577 $4,872,461 $20,000 $20,000 $20,000 $20,000 $20,000

$2,506,460 $753,229 $1,098,590 $1,443,952 $1,698,361 $4,654,854 $1,398,854 $2,040,239 $2,681,625 $3,154,100

$883,057 $100,185 ($19,735) ($19,735) ($14,538)$5,537,911 $1,499,039 $2,020,505 $2,661,890 $3,139,562 $1,744,344 $395,221 $445,891 $513,177 $528,755

Value of India Licensing Agreement2013 2014 2015 2016 2017

$400,377 $329,246 $473,921 $618,597 $722,808 $20,000 $20,000 $20,000 $20,000 $20,000

$133,132 $108,236 $158,872 $209,509 $245,983 $247,245 $201,010 $295,049 $389,088 $456,825 $151,859 $1,423 ($2,894) ($2,894) ($2,084)$399,104 $202,433 $292,155 $386,194 $454,741 $125,711 $53,371 $64,474 $74,453 $76,586

Value of Europe Licensing Agreement2013 2014 2015 2016 2017

$26,957,823 $8,540,578 $12,411,343 $16,282,108 $19,129,105 $20,000 $20,000 $20,000 $20,000 $20,000

$9,428,238 $2,982,202 $4,336,970 $5,691,738 $6,688,187 $17,509,585 $5,538,376 $8,054,373 $10,570,370 $12,420,918 $3,505,621 $368,345 ($77,415) ($77,415) ($56,940)

$21,015,206 $5,906,721 $7,976,958 $10,492,955 $12,363,979 $6,619,419 $1,557,305 $1,760,377 $2,022,901 $2,082,300

$28,944,166 $17,535,868 $21,407,116 $25,295,600 $28,187,753 $10,703,893 $4,734,609 $4,790,162 $4,935,428 $4,805,203

$0 $0 $0 $0 $0

$7,343,397 $15,585,320 $9,442,390 $11,526,909 $13,620,708 $15,178,021

$4,475,020 ($135,251) ($252,353) ($240,458) ($195,456)

$33,982,519 $17,957,950 $21,706,096 $25,600,476 $28,531,631 $10,703,893 $4,734,609 $4,790,162 $4,935,428 $4,805,203

$0 $0 $0 $0 $0 $10,703,893 $4,734,609 $4,790,162 $4,935,428 $4,805,203


Sweden Switzerland UK

9.2% 11.4% 8.2% $ 512,900,000,000 $ 492,600,000,000 $2,787,000,000,000

$ 47,186,800,000 $ 56,156,400,000 $ 228,534,000,000 $ 64,990,818 $ 77,344,731 $ 314,762,001 $ 151,645,242 $ 180,471,040 $ 734,444,669 $ 17,699,166 $ 15,391,602 $ 91,385,901

Spain Sweden Switzerland UK $ 138,006,000,000 $ 47,186,800,000 $ 56,156,400,000 ### $ 190,076,946 $ 64,990,818 $ 77,344,731 $ 314,762,001 $ 443,512,873 $ 151,645,242 $ 180,471,040 $ 734,444,669 $ 45,238,313 $ 17,699,166 $ 15,391,602 $ 91,385,901

Additional Sources of Revenue Hlookup TableGrants

AFIRM Dept. of Defense3 1 2 3

$ 500,000 $ - $ - $ - $ 1,000,000 $ 5,000,000 $ 5,000,000 $ 5,000,000 $ 7,500,000 $ - $ 5,000,000 $ 5,000,000 $ 5,000,000 $ - $ - $ 5,000,000 $ 5,000,000 $ - $ - $ 5,000,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ -

NI Under Revenue Scenario 1 for Valuation Sheet in Print Doc2018$54,915,377 $10,544,934 $14,421,207

$0 $0

$533,333 $29,415,902 $10,295,566 $19,120,336

NI Under Revenue Scenario 2 for Valuation Sheet in Print Doc2018

$235,017,874 $156,465,820 $25,414,498

$7,855,205 $0

$533,333 $44,749,018 $15,662,156 $29,086,861

US Company Value with a 0% Chance of the Skin Graft Getting FDA Approval2018

$54,915,377 ***From 2010 Onward Assumes Lab Expenses and Employee Expenses for HUD are Done upon FDA FAILURE$27,457,689

$25,414,498 ***Dropped R&D To 5% if HUD NOT APPROVE$1,372,884

$533,333 $136,973 $47,941 $89,033

$533,333 ($31,990)$590,376 $86,861

Assumes Terminal Value is Zero, Update when you get SG&A numbers for this scenario and have a realistic 2018 FCFF

US 100% Skin Graft$206,689,650 $156,465,820 What is Difference Between SG&A for him if HUD Does NOT GET APPROVE???????$25,414,498

$7,855,205 $533,333

$16,420,793 $5,747,278

$10,673,516 $533,333

($106,026)$11,100,823

$1,633,235

International Revenues

$177,705$410,540$30,776

$619,022

$696,996$1,610,222

$88,369$2,395,587

$1,395,186$3,223,203

$374,749$4,993,138

$217,247$501,891$13,488

$732,626

$5,496,550$12,698,301$1,393,001

$19,587,853

Incremental Change in SG&A Expenses as a result of Licensing Agreements (per Country)2018

$10,000 $10,000 $20,000

Value of South Korea Licensing Agreement2018

$619,022 $20,000

$209,658 $389,364

($240)$389,124 $57,251

Value of China Licensing Agreement2018

$2,395,587 $20,000

$831,455 $1,544,131

($810)$1,543,321

$227,065

Value of Japan Licensing Agreement2018

$4,993,138 $20,000

$1,740,598 $3,232,540

($2,414)$3,230,126

$475,240

Value of India Licensing Agreement2018

$732,626 $20,000

$249,419 $463,207

($196)$463,010 $68,122

Value of Europe Licensing Agreement2018

$19,587,853 $20,000

$6,848,748 $12,719,104

($9,175)$12,709,929

$1,869,978

$29,021,861 $4,330,890

$0

$15,627,156

($118,861)

$29,436,334 $4,330,890

$0 $4,330,890

Other Potentially Useful Forecasting StatisticsS. Korea China Japan India Denmark

0-14 Population 8,166,097 265,167,835 17,149,265 362,874,979 997,66415-64 Population 35,093,893 964,906,976 81,721,301 741,248,288 3,616,764

65 + Population 5,248,982 108,538,157 28,208,113 61,955,950 886,082Population Growth 0.266% 0.655% -0.191% 1.548% 0.280%

47.0%² 61.2% 17.8% 81.0% 15.9%Public Expenditure ### ### ### ### ###Private Expenditure ### ### ### ### $5,347,742,400

Private Expenditure on Health as % of Total Expenditures on Health (2005)

***From 2010 Onward Assumes Lab Expenses and Employee Expenses for HUD are Done upon FDA FAILURE

Assumes Terminal Value is Zero, Update when you get SG&A numbers for this scenario and have a realistic 2018 FCFF

What is Difference Between SG&A for him if HUD Does NOT GET APPROVE???????

Finland France Germany Italy Netherlands Spain Sweden Switzerland861,202 11,968,714 11,238,882 7,870,226 2,902,872 5,864,419 740,518 1,188,171

3,506,287 41,892,404 54,384,520 38,511,780 11,324,401 27,306,506 5,930,396 5,176,918

882,786 10,559,015 16,706,356 11,744,206 1,525,726 7,354,077 1,703,464 1,239,3780.098% 0.549% -0.053% -0.047% 0.412% 0.072% 0.158% 0.276%

22.2% 20.1% 23.1% 23.4% 35.1% 28.6% 18.3% 40.3%### ### ### ### ### ### ### ###

$ 4,681,980,000 ### ### ### ### ### ### ###

UK10,219,88741,020,711

9,872,6070.279%

12.9% $ 199,053,114,000 $ 29,480,886,000

Income Statement

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Sales $500,000 $58,500,000 $222,722,002 $411,649,946 $187,898,966 $194,661,518 $207,279,158 $219,302,064 $229,074,847 $235,017,874 % Growth NA 11600.0% 280.7% 84.8% -54.4% 3.6% 6.5% 5.8% 4.5% 2.6%

Cost of Goods Sold $530,000 $36,955,000 $63,240,000 $88,845,000 $114,465,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542 $156,465,820 Gross Profit ($30,000) $21,545,000 $159,482,002 $322,804,946 $73,433,966 $55,396,018 $63,300,543 $70,877,623 $76,555,306 $78,552,054 Gross Profit Margin -6.0% 36.8% 71.6% 78.4% 39.1% 28.5% 30.5% 32.3% 33.4% 33.4%

SG&A $1,318,500 $10,123,000 $12,148,000 $15,276,000 $20,997,750 $22,320,825 $23,485,131 $24,328,219 $24,994,668 $25,514,498 SG&A (% of Sales) 263.7% 17.3% 5.5% 3.7% 11.2% 11.5% 11.3% 11.1% 10.9% 10.9%

R&D $0 $0 $0 $32,280,495 $7,343,397 $5,539,602 $6,330,054 $7,087,762 $7,655,531 $7,855,205 R&D (% of Sales) 0.0% 0.0% 0.0% 7.8% 3.9% 2.8% 3.1% 3.2% 3.3% 3.3%

EBITDA ($1,348,500) $11,422,000 $147,334,002 $275,248,452 $45,092,819 $27,535,591 $33,485,358 $39,461,642 $43,905,107 $45,182,351 EBITDA Margin -269.7% 19.5% 66.2% 66.9% 24.0% 14.1% 16.2% 18.0% 19.2% 19.2%

Depreciation $6,000 $12,000 $18,000 $24,000 $30,000 $24,000 $18,000 $12,000 $6,000 $0 Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333

Pretax Income ($1,621,167) $10,876,667 $146,782,669 $274,691,119 $44,529,486 $26,978,258 $32,934,024 $38,916,308 $43,365,774 $44,649,018 Pretax Margin -324.2% 18.6% 65.9% 66.7% 23.7% 13.9% 15.9% 17.7% 18.9% 19.0%

Income Taxes $0 $3,806,833 $51,373,934 $96,141,891 $15,585,320 $9,442,390 $11,526,909 $13,620,708 $15,178,021 $15,627,156 Effective Tax Rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%Net Income to Common ($1,621,167) $7,069,833 $95,408,735 $178,549,227 $28,944,166 $17,535,868 $21,407,116 $25,295,600 $28,187,753 $29,021,861 Net Income Margin -324.2% 12.1% 42.8% 43.4% 15.4% 9.0% 10.3% 11.5% 12.3% 12.3%

Cash Flow Statement

Cash Flow from Operating Activities:Net Income

Plus: DepreciationAmortization

Funds Flow from Operations

(Increase) / Decrease in Accounts Receivable(Increase) / Decrease in Other Current Assets

(Increase) / Decrease in Current Operating Assets

Increase / (Decrease) in Accounts PayableIncrease / (Decrease) in Other Current Liabilities

Increase / (Decrease) in Current Operating Liabilities

(Increase) Decrease in Operating Working Capital

(Increase) / Decrease in Other Long-Term AssetsIncrease / (Decrease) in Other Long-Term Liabilities

Cash Flow from Operations

Cash Flow from Investing Activities:Less: Capital Expenditures

Cash Flow from Investing

OPERATING CASH FLOW AFTER INVESTING ACTIVITIES

Cash Flow from Financing Activities:Cash Flow from Anticipated Debt and Equity Issuance

Anticipated Issuance of New Common Equity IssuanceTotal Anticipated Debt and Equity Issuance

Total Change in Cash

Beginning Cash BalanceTotal Change in Cash

Ending Cash Balance

Cash Flow Statement

2009 2010 2011 2012 2013 2014 2015

($1,621,167) $7,069,833 $95,408,735 $178,549,227 $28,944,166 $17,535,868 $21,407,116

$6,000 $12,000 $18,000 $24,000 $30,000 $24,000 $18,000 $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333

($1,348,500) $7,615,167 $95,960,068 $179,106,560 $29,507,499 $18,093,201 $21,958,449

($75,000) ($8,700,000) ($24,633,300) ($28,339,192) $33,562,647 ($1,014,383) ($1,892,646)$0 $0 $0 $0 $0 $0 $0

($75,000) ($8,700,000) ($24,633,300) ($28,339,192) $33,562,647 ($1,014,383) ($1,892,646)

$50,000 $5,800,000 $16,422,200 $18,892,794 ($22,375,098) $676,255 $1,261,764 $0 $0 $0 $0 $0 $0 $0

$50,000 $5,800,000 $16,422,200 $18,892,794 ($22,375,098) $676,255 $1,261,764

($25,000) ($2,900,000) ($8,211,100) ($9,446,397) $11,187,549 ($338,128) ($630,882)

$0 $0 $0 $0 $0 $0 $0 $500,000 ($500,000) $0 $0 $0 $0 $0

($873,500) $4,215,167 $87,748,968 $169,660,163 $40,695,048 $17,755,073 $21,327,567

$4,030,000 $4,030,000 $30,000 $30,000 $30,000 $0 $0

($4,030,000) ($4,030,000) ($30,000) ($30,000) ($30,000) $0 $0

($4,903,500) $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567

$7,500,000 $0 $0 $0 $0 $0 $0 $7,500,000 $0 $0 $0 $0 $0 $0

$2,596,500 $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567

$0 $2,596,500 $2,781,667 $90,500,635 $260,130,798 $300,795,846 $318,550,919 $2,596,500 $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567 $2,596,500 $2,781,667 $90,500,635 $260,130,798 $300,795,846 $318,550,919 $339,878,486

Cash Flow Statement

2016 2017 2018

$25,295,600 $28,187,753 $29,021,861

$12,000 $6,000 $0 $533,333 $533,333 $533,333

$25,840,934 $28,727,086 $29,555,195

($1,803,436) ($1,465,918) ($891,454)$0 $0 $0

($1,803,436) ($1,465,918) ($891,454)

$1,202,291 $977,278 $594,303 $0 $0 $0

$1,202,291 $977,278 $594,303

($601,145) ($488,639) ($297,151)

$0 $0 $0 $0 $0 $0

$25,239,788 $28,238,447 $29,258,043

$0 $0 $0

$0 $0 $0

$25,239,788 $28,238,447 $29,258,043

$0 $0 $0 $0 $0 $0

$25,239,788 $28,238,447 $29,258,043

$339,878,486 $365,118,275 $393,356,722 $25,239,788 $28,238,447 $29,258,043

$365,118,275 $393,356,722 $422,614,765

Balance Sheet

2009 2010

ASSETS

Cash and Marketable Securities $2,596,500 $2,781,667 Restricted Cash $0 $0 Accounts Receivable $75,000 $8,775,000 Other Current Assets $0 $0

Total Current Assets $2,671,500 $11,556,667

Property, Plant & Equipment $24,000 $42,000 Existing Goodwill and Intangibles $3,733,333 $7,200,000 Transaction Goodwill $0 $0 Other Long-Term Assets $0 $0

Total Assets $6,428,833 $18,798,667

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts Payable $50,000 $5,850,000 Other Current Liabilities $0 $0

Total Current Liabilities $50,000 $5,850,000

Existing Long-Term Debt $0 $0 Existing Other Debt $500,000 $0

Total Debt $500,000 $0

Other Long-Term Liabilities $0 $0 Total Liabilities $550,000 $5,850,000

Minority Interest $0 $0

Stockholders' Equity $5,878,833 $12,948,667 Total Liabilities and Stockholders' Equity $6,428,833 $18,798,667

Balance Sheet

2011 2012 2013 2014 2015 2016

$90,500,635 $260,130,798 $300,795,846 $318,550,919 $339,878,486 $365,118,275 $0 $0 $0 $0 $0 $0

$33,408,300 $61,747,492 $28,184,845 $29,199,228 $31,091,874 $32,895,310 $0 $0 $0 $0 $0 $0

$123,908,935 $321,878,290 $328,980,691 $347,750,147 $370,970,360 $398,013,584

$54,000 $60,000 $60,000 $36,000 $18,000 $6,000 $6,666,667 $6,133,333 $5,600,000 $5,066,667 $4,533,333 $4,000,000

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$130,629,602 $328,071,623 $334,640,691 $352,852,814 $375,521,693 $402,019,584

$22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206 $0 $0 $0 $0 $0 $0

$22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206

$0 $0 $0 $0 $0 $0

$108,357,401 $286,906,628 $315,850,794 $333,386,662 $354,793,778 $380,089,378 $130,629,602 $328,071,623 $334,640,691 $352,852,814 $375,521,693 $402,019,584

Balance Sheet

2017 2018

$393,356,722 $422,614,765 $0 $0

$34,361,227 $35,252,681 $0 $0

$427,717,949 $457,867,447

$0 $0 $3,466,667 $2,933,333

$0 $0 $0 $0

$431,184,616 $460,800,780

$22,907,485 $23,501,787 $0 $0

$22,907,485 $23,501,787

$0 $0 $0 $0 $0 $0

$0 $0 $22,907,485 $23,501,787

$0 $0

$408,277,131 $437,298,992 $431,184,616 $460,800,780

51 05/03/2023 14:09:23

INCOME STATEMENT

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Sales $500,000 $58,500,000 $222,722,002 $411,649,946 $187,898,966 $194,661,518 $207,279,158 $219,302,064 $229,074,847 $235,017,874 % Growth NA 11600.0% 280.7% 84.8% -54.4% 3.6% 6.5% 5.8% 4.5% 2.6%

Cost of Goods Sold $530,000 $36,955,000 $63,240,000 $88,845,000 $114,465,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542 $156,465,820 Gross Profit ($30,000) $21,545,000 $159,482,002 $322,804,946 $73,433,966 $55,396,018 $63,300,543 $70,877,623 $76,555,306 $78,552,054 Gross Profit Margin -6.0% 36.8% 71.6% 78.4% 39.1% 28.5% 30.5% 32.3% 33.4% 33.4%

SG&A Expense $1,318,500 $10,123,000 $12,148,000 $15,276,000 $20,997,750 $22,320,825 $23,485,131 $24,328,219 $24,994,668 $25,514,498 SG&A (% of Sales) 263.7% 17.3% 5.5% 3.7% 11.2% 11.5% 11.3% 11.1% 10.9% 10.9%

R&D Expense $0 $0 $0 $32,280,495 $7,343,397 $5,539,602 $6,330,054 $7,087,762 $7,655,531 $7,855,205 R&D (% of Sales) 0.0% 0.0% 0.0% 7.8% 3.9% 2.8% 3.1% 3.2% 3.3% 3.3%

EBITDA ($1,348,500) $11,422,000 $147,334,002 $275,248,452 $45,092,819 $27,535,591 $33,485,358 $39,461,642 $43,905,107 $45,182,351 EBITDA Margin -269.7% 19.5% 66.2% 66.9% 24.0% 14.1% 16.2% 18.0% 19.2% 19.2%

Depreciation $6,000 $12,000 $18,000 $24,000 $30,000 $24,000 $18,000 $12,000 $6,000 $0 Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333

Pretax Income ($1,621,167) $10,876,667 $146,782,669 $274,691,119 $44,529,486 $26,978,258 $32,934,024 $38,916,308 $43,365,774 $44,649,018 Pretax Margin -324.2% 18.6% 65.9% 66.7% 23.7% 13.9% 15.9% 17.7% 18.9% 19.0%

Income Taxes $0 $3,806,833 $51,373,934 $96,141,891 $15,585,320 $9,442,390 $11,526,909 $13,620,708 $15,178,021 $15,627,156 Effective Tax RateNet Income to Common ($1,621,167) $7,069,833 $95,408,735 $178,549,227 $28,944,166 $17,535,868 $21,407,116 $25,295,600 $28,187,753 $29,021,861 Net Income Margin -324.2% 12.1% 42.8% 43.4% 15.4% 9.0% 10.3% 11.5% 12.3% 12.3%

***Income statement assumes FDA approval and licensing agreements with all countries planned are successful

52 05/03/2023 14:09:23

BALANCE SHEET

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ASSETS

Cash and Marketable Securities $2,596,500 $2,781,667 $90,500,635 $260,130,798 $300,795,846 $318,550,919 $339,878,486 $365,118,275 $393,356,722 $422,614,765 Restricted Cash $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accounts Receivable $75,000 $8,775,000 $33,408,300 $61,747,492 $28,184,845 $29,199,228 $31,091,874 $32,895,310 $34,361,227 $35,252,681 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $2,671,500 $11,556,667 $123,908,935 $321,878,290 $328,980,691 $347,750,147 $370,970,360 $398,013,584 $427,717,949 $457,867,447

Property, Plant & Equipment $24,000 $42,000 $54,000 $60,000 $60,000 $36,000 $18,000 $6,000 $0 $0 Existing Goodwill and Intangibles $3,733,333 $7,200,000 $6,666,667 $6,133,333 $5,600,000 $5,066,667 $4,533,333 $4,000,000 $3,466,667 $2,933,333 Transaction Goodwill $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Assets $6,428,833 $18,798,667 $130,629,602 $328,071,623 $334,640,691 $352,852,814 $375,521,693 $402,019,584 $431,184,616 $460,800,780

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts Payable $50,000 $5,850,000 $22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206 $22,907,485 $23,501,787 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Liabilities $50,000 $5,850,000 $22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206 $22,907,485 $23,501,787

Existing Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Existing Other Debt $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Debt $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Long-Term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $550,000 $5,850,000 $22,272,200 $41,164,995 $18,789,897 $19,466,152 $20,727,916 $21,930,206 $22,907,485 $23,501,787

Minority Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Stockholders' Equity $5,878,833 $12,948,667 $108,357,401 $286,906,628 $315,850,794 $333,386,662 $354,793,778 $380,089,378 $408,277,131 $437,298,992 Total Liabilities and Stockholders' Equity $6,428,833 $18,798,667 $130,629,602 $328,071,623 $334,640,691 $352,852,814 $375,521,693 $402,019,584 $431,184,616 $460,800,780

53 05/03/2023 14:09:23

CASH FLOW STATEMENT

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Cash Flow from Operating Activities:

Net Income ($1,621,167) $7,069,833 $95,408,735 $178,549,227 $28,944,166 $17,535,868 $21,407,116 $25,295,600 $28,187,753 $29,021,861 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Plus: Depreciation $6,000 $12,000 $18,000 $24,000 $30,000 $24,000 $18,000 $12,000 $6,000 $0 Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Funds Flow from Operations ($1,348,500) $7,615,167 $95,960,068 $179,106,560 $29,507,499 $18,093,201 $21,958,449 $25,840,934 $28,727,086 $29,555,195

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (Increase) / Decrease in Accounts Receivable ($75,000) ($8,700,000) ($24,633,300) ($28,339,192) $33,562,647 ($1,014,383) ($1,892,646) ($1,803,436) ($1,465,918) ($891,454)(Increase) / Decrease in Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

(Increase) / Decrease in Current Operating Assets ($75,000) ($8,700,000) ($24,633,300) ($28,339,192) $33,562,647 ($1,014,383) ($1,892,646) ($1,803,436) ($1,465,918) ($891,454)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Increase / (Decrease) in Accounts Payable $50,000 $5,800,000 $16,422,200 $18,892,794 ($22,375,098) $676,255 $1,261,764 $1,202,291 $977,278 $594,303 Increase / (Decrease) in Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Increase / (Decrease) in Current Operating Liabilities $50,000 $5,800,000 $16,422,200 $18,892,794 ($22,375,098) $676,255 $1,261,764 $1,202,291 $977,278 $594,303

(Increase) Decrease in Operating Working Capital ($25,000) ($2,900,000) ($8,211,100) ($9,446,397) $11,187,549 ($338,128) ($630,882) ($601,145) ($488,639) ($297,151)

(Increase) / Decrease in Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Increase / (Decrease) in Other Long-Term Liabilities $500,000 ($500,000) $0 $0 $0 $0 $0 $0 $0 $0

Cash Flow from Operations ($873,500) $4,215,167 $87,748,968 $169,660,163 $40,695,048 $17,755,073 $21,327,567 $25,239,788 $28,238,447 $29,258,043

Cash Flow from Investing Activities: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Less: Capital Expenditures $4,030,000 $4,030,000 $30,000 $30,000 $30,000 $0 $0 $0 $0 $0 Cash Flow from Investing ($4,030,000) ($4,030,000) ($30,000) ($30,000) ($30,000) $0 $0 $0 $0 $0

OPERATING CASH FLOW AFTER INVESTING ACTIVITIES ($4,903,500) $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567 $25,239,788 $28,238,447 $29,258,043 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash Flow from Financing Activities: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash Flow from Anticipated Debt and Equity Issuance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Anticipated Issuance of New Common Equity Issuance $7,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Anticipated Debt and Equity Issuance $7,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Change in Cash $2,596,500 $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567 $25,239,788 $28,238,447 $29,258,043 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Beginning Cash Balance $0 $2,596,500 $2,781,667 $90,500,635 $260,130,798 $300,795,846 $318,550,919 $339,878,486 $365,118,275 $393,356,722 Total Change in Cash $2,596,500 $185,167 $87,718,968 $169,630,163 $40,665,048 $17,755,073 $21,327,567 $25,239,788 $28,238,447 $29,258,043

Ending Cash Balance $2,596,500 $2,781,667 $90,500,635 $260,130,798 $300,795,846 $318,550,919 $339,878,486 $365,118,275 $393,356,722 $422,614,765

54 05/03/2023 14:09:23

REVENUE AND MARGIN ASSUMPTIONS

Division A- Biopolymer Division B- HUD/PMARevenue Growth Revenue Growth

2009 - 2009 -2010 - 2010 -2011 20.0% 2011 -2012 18.0% 2012 -

Additional Sources of Revenue Total Annual Revenues2013 15.0% 2013 -2014 10.0% 2014 - International Licensing Revenue: Grants:2015 8.0% 2015 2.5% Burns Chronic Wounds Reconstruction AFFIRM Dept. of Defense 2009 $500,000 2016 6.0% 2016 2.5% 2009 $500,000 $500,000 2010 $58,500,000 2017 4.0% 2017 2.5% 2010 $1,000,000 $5,000,000 $6,000,000 2011 $222,722,002 2018 3.0% 2018 2.5% 2011 $125,222,002 $7,500,000 $5,000,000 $137,722,002 2012 $411,649,946

2012 $1,565,275 $292,184,671 $293,749,946 2013 $187,898,966 Revenues Revenues 2013 $3,130,550 $3,652,308 $30,406,107 $37,188,966 2014 $194,661,518

2009 $0 2009 $0 2014 $4,695,825 $7,304,617 $380,076 $12,380,518 2015 $207,279,158 2010 $25,000,000 2010 $27,500,000 2015 $6,261,100 $10,956,925 $760,153 $17,978,178 2016 $219,302,064 2011 $30,000,000 2011 $55,000,000 2016 $7,826,375 $14,609,234 $1,140,229 $23,575,838 2017 $229,074,847 2012 $35,400,000 2012 $82,500,000 2017 $7,904,639 $18,261,542 $1,520,305 $27,686,486 2018 $235,017,874 2013 $40,710,000 2013 $110,000,000 2018 $7,983,685 $18,444,157 $1,900,382 $28,328,224 2014 $44,781,000 2014 $137,500,000 2015 $48,363,480 2015 $140,937,500 2016 $51,265,289 2016 $144,460,938 2017 $53,315,900 2017 $148,072,461 2018 $54,915,377 2018 $151,774,272


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Manufacturing (% of Revenues) 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Lonza Sales Fee (% of Revenues) 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%Total Production Cost (% of Revenues) 65% 65% 65% 65% 65% 65% 65% 65% 65% 65%Lonzas Share of Profit 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 McCoy's Profit (% of Revenues) 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5%

Division B In HUD Phase In PMA Phase 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Manufacturing (% of Revenues) 85% 85% 85% Price Paid (per cm³) $ 25.00 $ 25.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 Administrative (% of Revenues) 15% 15% 15% Selling Price (per cm³) $ 55.00 $ 55.00 $ 55.00 $ 55.00 $ 55.00 $ 55.00 $ 55.00 McCoy's Profit (% of Revenues) 0% 0% 0% Manufacturing (% of Revenues) $ 0.45 $ 0.45 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36

McCoy's Profit (% of Revenues) $ 0.55 $ 0.55 $ 0.64 $ 0.64 $ 0.64 $ 0.64 $ 0.64


55 05/03/2023 14:09:23

EXPENSE ASSUMPTIONS

Operating Expenses 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Manufacturing Expenses- Division A $0 $12,500,000 $15,000,000 $17,700,000 $20,355,000 $22,390,500 $24,181,740 $25,632,644 $26,657,950 $27,457,689 Manufacturing Expenses- Division B $0 $23,375,000 $46,750,000 $70,125,000 $93,500,000 $116,875,000 $119,796,875 $122,791,797 $125,861,592 $129,008,132 Total Manufacturing Expense $0 $35,875,000 $61,750,000 $87,825,000 $113,855,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542 $156,465,820 Employee Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Senior Research Scientist Boyce $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 HDE Application Clinical $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 HDE Application Technical $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 PMA Application Clinical $0 $100,000 $100,000 $100,000 $100,000 $0 $0 $0 $0 $0 PMA Application Technical $0 $100,000 $100,000 $100,000 $100,000 $0 $0 $0 $0 $0 Total Employee Expense $60,000 $200,000 $200,000 $200,000 $200,000 $0 $0 $0 $0 $0 Laboratory: Trial Tech Transfer Verification $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Media Prep 1 $200,000 $400,000 $600,000 $400,000 $200,000 $0 $0 $0 $0 $0 Media Release 1 $100,000 $200,000 $300,000 $200,000 $100,000 $0 $0 $0 $0 $0 Lonza Skin Culture 1 $60,000 $120,000 $180,000 $120,000 $60,000 $0 $0 $0 $0 $0 Cincinnati Skin Culture 1 $60,000 $60,000 $60,000 $0 $0 $0 $0 $0 $0 $0 Lonza Mouse Graft Study 1 $50,000 $100,000 $150,000 $100,000 $50,000 $0 $0 $0 $0 $0 Total Lab Expenses $470,000 $880,000 $1,290,000 $820,000 $410,000 $0 $0 $0 $0 $0 Cost of Goods Sold $530,000 $36,955,000 $63,240,000 $88,845,000 $114,465,000 $139,265,500 $143,978,615 $148,424,441 $152,519,542 $156,465,820

Sales, General & Administrative 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Lonza's "Sales and Marketing" Payments $0 $8,125,000 $9,750,000 $11,505,000 $13,230,750 $14,553,825 $15,718,131 $16,661,219 $17,327,668 $17,847,498 CEO/Regulatory $100,000 $200,000 $200,000 $200,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 COO/Corporate Liason $100,000 $200,000 $200,000 $200,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Adult Clinical Program Manager $50,000 $100,000 $225,000 $375,000 $375,000 $375,000 $375,000 $375,000 $375,000 $375,000 National Securities 7% $525,000 $525,000 $0 $0 $0 $0 $0 $0 $0 $0 Corporate Counsel $120,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Total Personnel Expense $995,000 $9,450,000 $10,675,000 $12,580,000 $15,905,750 $17,228,825 $18,393,131 $19,336,219 $20,002,668 $20,522,498 Patents $24,000 $24,000 $175,000 $200,000 $200,000 $200,000 $200,000 $100,000 $100,000 $100,000 Office Supplies $1,200 $2,400 $4,800 $9,600 $19,200 $19,200 $19,200 $19,200 $19,200 $19,200 Telephone, Internet Service $5,400 $10,800 $21,600 $43,200 $86,400 $86,400 $86,400 $86,400 $86,400 $86,400 General Liability (Fire theft) $1,500 $3,000 $6,000 $12,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 Product Liability $12,000 $24,000 $48,000 $96,000 $192,000 $192,000 $192,000 $192,000 $192,000 $192,000 Key Man Insurance 3 Employees $5,400 $10,800 $21,600 $43,200 $86,400 $86,400 $86,400 $86,400 $86,400 $86,400 Director & Officer Insurance $16,000 $32,000 $64,000 $128,000 $256,000 $256,000 $256,000 $256,000 $256,000 $256,000 Employee Health Insurance $36,000 $72,000 $144,000 $288,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 Marketing/Tradeshow/Conference $50,000 $100,000 $200,000 $400,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 Employment Benefits $100,000 $200,000 $400,000 $800,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 Travel $72,000 $144,000 $288,000 $576,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 Administrative Expense Related to HUD $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Other Expenses $323,500 $673,000 $1,473,000 $2,696,000 $5,092,000 $5,092,000 $5,092,000 $4,992,000 $4,992,000 $4,992,000 Total Expenses $1,318,500 $10,123,000 $12,148,000 $15,276,000 $20,997,750 $22,320,825 $23,485,131 $24,328,219 $24,994,668 $25,514,498

Tax Rate Assumption2009 2010 2011 2012 2013 2014 2015 2016 2017 201835% 35% 35% 35% 35% 35% 35% 35% 35% 35%

56 05/03/2023 14:09:23

DEPRECIATION AND AMORTIZATION SCHEDULE


Years to Amortize Intangibles 15

Total Intangible Assets 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2009 $ 4,000,000 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667

2010 $ 4,000,000 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667

2011 $ - $0 $0 $0 $0 $0 $0 $0 $0

2012 $ - $0 $0 $0 $0 $0 $0 $0

2013 $ - $0 $0 $0 $0 $0 $0

2014 $ - $0 $0 $0 $0 $0

2015 $ - $0 $0 $0 $0

2016 $ - $0 $0 $0

2017 $ - $0 $0

2018 $ - $0

Total Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333

Depreciation Schedule

Years to Depreciat Office Equipment 5

Years to Depreciate CAPEX 15

Capital Expenditures 2009 2010 2011 2012 2013 2014 2015 2016 2017 20182009 $ 30,000 $ - $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0 $0 $0 $0

2010 $ 30,000 $ - $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0 $0 $0

2011 $ 30,000 $ - $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0 $0

2012 $ 30,000 $ - $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0

2013 $ 30,000 $ - $6,000 $6,000 $6,000 $6,000 $6,000 $0

2014 $ - $ - $0 $0 $0 $0 $0

2015 $ - $ - $0 $0 $0 $0

2016 $ - $ - $0 $0 $0

2017 $ - $ - $0 $0

2018 $ - $ - $0

Office Equipment Purchase

57 05/03/2023 14:09:23

OTHER FINANCIAL ASSUMPTIONS

Cash Flow Assumptions2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Equity Issuance in Year 1 $7,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

Intangible Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Licensing payment Lonza Marketing & Distribution $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cutanogen Final Payment Lonza $0 $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 Milestone Payment Boyce HDE app $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Milestone Payment University Cincinati HDE APP $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Milestone Payment Boyce PMA application $0 $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 Milestone Payment University Cinncinati PMA APP $0 $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 Total Intangible Asset Purchased $4,000,000 $4,000,000 $0 $0 $0 $0 $0 $0 $0 $0 Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 Net Intangible Value $3,733,333 $7,200,000 $6,666,667 $6,133,333 $5,600,000 $5,066,667 $4,533,333 $4,000,000 $3,466,667 $2,933,333

Capital Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Asset Purchases Office Equipment $30,000 $30,000 $30,000 $30,000 $30,000 $0 $0 $0 $0 $0 Total Capital Expenditures $30,000 $30,000 $30,000 $30,000 $30,000 $0 $0 $0 $0 $0 Net Asset Value $24,000 $42,000 $54,000 $60,000 $60,000 $36,000 $18,000 $6,000 $0 $0

Balance Sheet Assumption2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AssetsAccounts Receivable (% Revenues) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

Restricted Cash $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Asssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Existing Goodwill and Intangibles $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Transaction Goodwill $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

LiabilitiesAccounts Payable (% Revenues) 33% 33% 33% 33% 33% 33% 33% 33% 33% 33%

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Existing Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Exisiting Other Debt Affirm Grant Payment $500,000 $0 $0 $0 $0 $0 $0 $0 $0

Other Long-Term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Minority Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

80%% of Dividend to be Paid out of "CF After Operations and Investing Activities" Post 2009

58 05/03/2023 14:09:23

FORECASTING INTERNATIONAL LICENSING AGREEMENT AND ROYALTY PAYMENT CASH FLOWS

USA STATISTICS USED FOR FORECASTING

Total expenditure on health as % GDP (2005) 15.2%GDP (2008, official exchange rate) $14,330,000,000,000

Health Care Expenditure $ 2,178,160,000,000 Market as % of Health Expenditures

Burns Market $ 3,000,000,000 0.138%

Wounds $ 7,000,000,000 0.321%

Reconstructive $ 1,000,000,000 0.046%

S. Korea China Japan India Denmark Finland France Germany Italy Netherlands Spain Sweden Switzerland UK

5.9% 4.7% 8.2% 5.0% 9.1% 7.5% 11.2% 10.7% 8.9% 9.2% 8.2% 9.2% 11.4% 8.2%

$ 857,500,000,000 $ 4,222,000,000,000 $ 4,844,000,000,000 $ 1,237,000,000,000 $ 369,600,000,000 $ 281,200,000,000 $ 2,987,000,000,000 $3,818,000,000,000 $ 2,399,000,000,000 $ 909,500,000,000 $1,683,000,000,000 $ 512,900,000,000 $ 492,600,000,000 $ 2,787,000,000,000

$ 50,592,500,000 $ 198,434,000,000 $ 397,208,000,000 $ 61,850,000,000 $ 33,633,600,000 $ 21,090,000,000 $ 334,544,000,000 $ 408,526,000,000 $ 213,511,000,000 $ 83,674,000,000 $ 138,006,000,000 $ 47,186,800,000 $ 56,156,400,000 $ 228,534,000,000 Burns Market $ 69,681,520 $ 273,304,991 $ 547,078,268 $ 85,186,579 $ 46,323,870 $ 29,047,453 $ 460,770,559 $ 562,666,654 $ 294,070,684 $ 115,244,977 $ 190,076,946 $ 64,990,818 $ 77,344,731 $ 314,762,001 Wounds $ 162,590,214 $ 637,711,647 $ 1,276,515,958 $ 198,768,685 $ 108,089,029 $ 67,777,390 $ 1,075,131,303 $ 1,312,888,860 $ 686,164,928 $ 268,904,947 $ 443,512,873 $ 151,645,242 $ 180,471,040 $ 734,444,669 Reconstructive $ 12,310,402 $ 35,347,446 $ 149,899,445 $ 5,395,150 $ 12,986,125 $ 7,532,973 $ 122,718,559 $ 144,230,219 $ 75,086,048 $ 24,931,330 $ 45,238,313 $ 17,699,166 $ 15,391,602 $ 91,385,901

**WHO data for health expenditures as % of GDP available for all countries except S. Korea, where Republic of Korea information was used as proxy

S. Korea China Japan India "Europe"

Total Health Expenditure $ 50,592,500,000 $ 198,434,000,000 $ 397,208,000,000 $ 61,850,000,000 $ 1,564,861,800,000 Assumed Skin Graft PenetrationBurns Market $ 69,681,520 $ 273,304,991 $ 547,078,268 $ 85,186,579 $ 2,155,298,692

Wounds $ 162,590,214 $ 637,711,647 $ 1,276,515,958 $ 198,768,685 $ 5,029,030,282 0.250% Yeaer 1Reconstructive $ 12,310,402 $ 35,347,446 $ 149,899,445 $ 5,395,150 $ 557,200,235 0.750% Year 2

1.000% Year 3Assumed Licensing Agreement as % of Mkt Value 4% 1.636% Year 4See following page for justification 5.000% Year 5

Licensing Agreement Payment Assumed Royalty Payment 20% S. Korea China Japan India "Europe" Total

1% Burns Market $ 2,787,261 $ 10,932,200 $ 21,883,131 $ 3,407,463 $ 86,211,948 $ 125,222,002

Wounds $ 6,503,609 $ 25,508,466 $ 51,060,638 $ 7,950,747 $ 201,161,211 $ 292,184,671

Reconstructive $ 492,416 $ 1,413,898 $ 5,995,978 $ 215,806 $ 22,288,009 $ 30,406,107

Population and GDP data from CIA World factbook 2008 figures

Health care expenditure statistics from World Health Organization

Total Expenditure on Health as % of GDP (2005)**

GDP (2008, official exchange rate)Total Health Expenditure

Assumed Growth in Markets after first 5 years

59 05/03/2023 14:09:23

LICENSING AGREEMENT COMPARISONS

Lisencee Licensor Products Date Sales Milestones Total Note Royaltee Fees

Schering Plough Santarus 3/11/2008 $ 15,000,000 $ 27,500,000 $ 37,500,000 $ 80,000,000 $ 1,600,000,000 1 5.00%

Sanofi-Aventis AEterna Zentaris 3/9/2009 $ 30,000,000 $135,000,000 $ 165,000,000 $ 3,700,000,000 2 4.46%

Par Pharmaceuticals Paddock Laboratories the acquisition of Testosterone Gel 9/13/2006 $ 6,000,000 $ 6,000,000 $ 250,000,000 3 2.40%

Cases Where Numerical Royaltee Fees Were Provided:

6/9/2009

Smart Personalized Medicine Health Discover Corp 8/29/2008

Supergen Inc J&J's Cilag GmbH 7/6/2006

*Data from Capital IQ unless noted otherwise1 Data from Capital IQ, market estimate was for 2007 from A.C. Neilsen, a marketeing research firm, as well as company estimates2 Market estimates from report: "Benign Prostatic Hyperplasia - Novel Therapeutics and Reformulations will Drive Market Growth" available at ResearchandMarkets.com3 Market Value is the expected revenues from the product as reported when the deal was announced

Upfront License Fee

Potential Regulatory Milestones

Value of Drug Market

% Paid relative to market size

Schering-Plough is seeking FDA approval to sell omeprazole/sodium

bicarbonate product in a 20 mg dosage strength of omeprazole in the U.S. over-the-counter (OTC) heartburn

market

low double digit royalty, In turn, Santarus will be obligated to pay

royalties to the University of Missouri on net sales

a development, commercialization and licensing agreement with sanofi-

aventis for the development, registration and marketing of cetrorelix in benign prostatic hyperplasia (BPH)

for the U.S. market.

"escalating double digit" royalties on future US sales

Valeant Pharmaceuticals International

Penwest Pharmaceutical Co, and Endo Pharmaceutical Co

allows Valeant to market OPANA ER, the extended release formulation of oxymorphone, in Canada, Australia

and New Zealand

Valeant has agreed to pay royalties ranging from 10% to 20% of net sales of the OPANA products in each of the

three countries, subject to royalty reductions upon patent expiry or

generic entry.to work to develop a superior breast cancer prognostic test using HDC's

support vector machine (SVM) technology

HDC will receive a 15% equity position in Smart Personalized Medicine, LLC based on up to a $5 million

initial investment from Smart Personalized Medicine, LLC investors

a per test royalty up to 7.5% based on Net Proceeds received from the

sale of the new breast cancer prognostic test.diseases relating to malfunctioning

blood-forming stem cells made by MGI

SuperGen will earn a royalty on worldwide net sales starting at 20%

and escalating to a maximum of 30%.

60 05/03/2023 14:09:23

DISCOUNTED CASH FLOW VALUATION

WACC Calculation2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Owners Equity $5,878,833 $12,948,667 $108,357,401 $286,906,628 $315,850,794 $333,386,662 $354,793,778 $380,089,378 $408,277,131 $437,298,992 Total Debt $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Capital $6,378,833 $12,948,667 $108,357,401 $286,906,628 $315,850,794 $333,386,662 $354,793,778 $380,089,378 $408,277,131 $437,298,992

Equity/Total Capital 0.921615760457764 1 1 1 1 1 1 1 1 1Debt/Total Capital 0.078384239542236 0 0 0 0 0 0 0 0 0

Cost of Equity- CAPM 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Risk Free Rate (20-Year Treasury) 4.47% 4.47% 4.47% 4.47% 4.47% 4.47% 4.47% 4.47% 4.47% 4.47%Beta 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0Risk Premium 25% 25% 20% 20% 20% 15% 15% 10% 10% 10%Cost of Equity- CAPM 29.5% 29.5% 24.5% 24.5% 24.5% 19.5% 19.5% 14.5% 14.5% 14.5%

Cost of DebtMilestone Payments Interest 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018WACC 27.2% 29.5% 24.5% 24.5% 24.5% 19.5% 19.5% 14.5% 14.5% 14.5%

FCFF Calculation2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Income ($1,621,167) $7,069,833 $95,408,735 $178,549,227 $28,944,166 $17,535,868 $21,407,116 $25,295,600 $28,187,753 $29,021,861 Plus Non-Cash Charges Depreciation $6,000 $12,000 $18,000 $24,000 $30,000 $24,000 $18,000 $12,000 $6,000 $0 Amortization $266,667 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 Less Change in Net Working Capital ($10,000) ($1,160,000) ($3,284,440) ($3,778,559) $4,475,020 ($135,251) ($252,353) ($240,458) ($195,456) ($118,861)FCFF ($1,358,500) $6,455,167 $92,675,628 $175,328,001 $33,982,519 $17,957,950 $21,706,096 $25,600,476 $28,531,631 $29,436,334

Value of FirmTerminal Value CalculationTerminal Growth Rate 3.0%Discount Rate 10.0%Terminal Value $12,615,572

PV of Cash Flows ($1,068,339) $3,920,918 $45,225,265 $68,738,837 $10,703,893 $4,734,609 $4,790,162 $4,935,428 $4,805,203 $4,330,890

Sum of PV of Cash Flows $151,116,866 PV of Terminal value $1,856,096Value of Firm $152,972,962

Net Working Capital is Assumed to Be 10.0%of Revenues

61 05/03/2023 14:09:23

PROBABILITY MATRIX

USA South Korea China Japan India Europe Value of Firm

0% $6,698,474 $0 $0 $0 $0 $0 $6,698,474 5% $7,191,043 $146,247 $572,511 $1,183,295 $174,798 $4,651,500 $13,919,394 10% $7,683,612 $292,494 $1,145,023 $2,366,589 $349,596 $9,303,000 $21,140,313 15% $8,176,181 $438,740 $1,717,534 $3,549,884 $524,393 $13,954,500 $28,361,233 20% $8,668,750 $584,987 $2,290,045 $4,733,179 $699,191 $18,606,001 $35,582,152 25% $9,161,319 $731,234 $2,862,557 $5,916,473 $873,989 $23,257,501 $42,803,072 30% $9,653,888 $877,481 $3,435,068 $7,099,768 $1,048,787 $27,909,001 $50,023,992 35% $10,146,457 $1,023,727 $4,007,579 $8,283,063 $1,223,585 $32,560,501 $57,244,911 40% $10,639,026 $1,169,974 $4,580,091 $9,466,357 $1,398,383 $37,212,001 $64,465,831 45% $11,131,595 $1,316,221 $5,152,602 $10,649,652 $1,573,180 $41,863,501 $71,686,751 50% $11,624,164 $1,462,468 $5,725,113 $11,832,946 $1,747,978 $46,515,001 $78,907,670 55% $12,116,732 $1,608,714 $6,297,624 $13,016,241 $1,922,776 $51,166,501 $86,128,590 60% $12,609,301 $1,754,961 $6,870,136 $14,199,536 $2,097,574 $55,818,002 $93,349,509 65% $13,101,870 $1,901,208 $7,442,647 $15,382,830 $2,272,372 $60,469,502 $100,570,429 70% $13,594,439 $2,047,455 $8,015,158 $16,566,125 $2,447,169 $65,121,002 $107,791,349 75% $14,087,008 $2,193,701 $8,587,670 $17,749,420 $2,621,967 $69,772,502 $115,012,268 80% $14,579,577 $2,339,948 $9,160,181 $18,932,714 $2,796,765 $74,424,002 $122,233,188 85% $15,072,146 $2,486,195 $9,732,692 $20,116,009 $2,971,563 $79,075,502 $129,454,107 90% $15,564,715 $2,632,442 $10,305,204 $21,299,304 $3,146,361 $83,727,002 $136,675,027 95% $16,057,284 $2,778,688 $10,877,715 $22,482,598 $3,321,159 $88,378,502 $143,895,947

100% $16,549,853 $2,924,935 $11,450,226 $23,665,893 $3,495,956 $93,030,003 $151,116,866

Values of geographic business segments calculated excluding terminal value

Probability of Skin Graft Approval

62 05/03/2023 14:09:23

COMPARATIVE COMPANY ANALYSIS

Copmarative Company Analysis Trading MultiplesCollagen Sales

(Data Presented in Millions of $US)

Company Name Market Cap TEV P/BV P/Diluted EPS TEV/EBITDA Est. CY P/EPS Est. CY P/EPS Est. CY+1Biosyntech Inc. (TSX:BSY) $ 28.9 $ 33.4 NM NM 17.3x NM NM NMCytori Therapeutics, Inc. (NasdaqGM:CYTX) $ 121.0 $ 112.6 NM NM 8.9x NA NM NMIntegra LifeSciences Holdings Corp. (NasdaqGS:IART) $ 748.4 $ 1,094.1 2.0x 21.5x 1.6x 7.4x 12.6x 10.9xOrthovita Inc. (NasdaqGM:VITA) $ 381.9 $ 388.0 8.5x NM 4.1x NM NM 58.4xOsteotech Inc. (NasdaqGM:OSTE) $ 78.1 $ 78.3 1.0x NM 0.8x NA NM 86.8x

Implied Multiples for McCoy (2010 data) $ 152,972,962.0 $ 152,972,962.0 8.1x NA 2.6x 13.4x NA NA

High 8.5x 21.5x 17.3x 7.4x 12.6x 86.8xLow 1.0x 21.5x 0.8x 7.4x 12.6x 10.9xMean 3.8x 21.5x 6.5x 7.4x 12.6x 52.0xMedian 2.0x 21.5x 4.1x 7.4x 12.6x 58.4x

Note: Data Provided by Capital IQ, Reuters, Publicly Available SEC FilingsNote: Data as of: 06/22/09

Comparative Company Analysis Operating StatisticsCollagen Sales


Company Name Return on Assets Return on Equity Return on Capital Est. LT Growth RateBiosyntech Inc. (TSX:BSY) -1835.4 -3174.6 -3331.9 -55.8 -2561.6 -71.4 NA -18.3 39.2Cytori Therapeutics, Inc. (NasdaqGM:CYTX) 35.8 -396.4 -418.8 -73.7 NM NM NA 16.8 12.1Integra LifeSciences Holdings Corp. (NasdaqGS:IART) 62.6 17.1 12.4 5.2 10.7 5.8 15.6 13.0 31.6Orthovita Inc. (NasdaqGM:VITA) 66.3 -8.4 -11.9 -4.0 -16.0 -4.5 30.0 35.0 29.9Osteotech Inc. (NasdaqGM:OSTE) 53.0 8.2 2.5 0.2 -0.5 0.3 NA -6.2 1.9

Implied Multiples for McCoy (2010 data) 36.8 19.5 18.6 37.6 54.6 g= b(ROA + D/E(ROA-i(1-t))

High 66.3 17.1 12.4 5.2 10.7 5.8 30.0 35.0 39.2Low -1835.4 -3174.6 -3331.9 -73.7 -2561.6 -71.4 15.6 -18.3 1.9Mean -323.5 -710.8 -749.6 -25.6 -641.9 -17.4 22.8 8.1 22.9Medium 53.0 -8.4 -11.9 -4.0 -8.3 -2.1 22.8 13.0 29.9


M&A Comparative Analysis Trading MultiplesCollagen Sales


Acquirer Target Closed Date Total Transaction Size Implied Equity Value Implied EV Implied EV/Revenues Implied EV/EBITDAIntegra Lifesciences Holding Corp (NasdaqGS: IART) Theken Spine, LLC 8/1/2008 $ 185.9 $ 46.8 15.2x 6.9x $ 185.7 5.3x 30.3xIntegra Lifesciences Holding Corp (NasdaqGS: IART) IsoTis, Inc. 10/29/2007 $ 69.8 51.47 NM 1.4x $ 65.3 1.5x NM

High $ 185.9 51.5x 15.2x 6.9x $ 185.7 5.3x 30.3xLow $ 185.9 51.5x 15.2x 6.9x $ 185.7 5.3x 30.3xMean $ 185.9 51.5x 15.2x 6.9x $ 185.7 5.3x 30.3xMedian $ 185.9 51.5x 15.2x 6.9x $ 185.7 5.3x 30.3x


TEV/Total Rev Est. CY

LastFiscal Yr

GrossMargin (%)

LastFiscal YrEBITDA

Margin (%)

LastFiscal Yr

EBITMargin (%)

1 Yr Total Rev Growth


Implied Equity Value/ LTM NI

Implied Equity Value/ BV

63 05/03/2023 14:09:23

COMPARATIVE COMPANY ANALYSIS

Copmarative Company Analysis Trading MultiplesCell Generation


Company Name Market Cap TEV P/BV P/Diluted EPS TEV/EBITDA Est. CY P/EPS Est. CY P/EPS Est. CY+1Genzyme Corp. (NasdaqGS:GENZ) $ 14,788.5 $ 14,215.5 2.0x 32.7x 2.9x 7.4x 16.6x 12.2xIntercytex Group Plc (AIM:ICX) $ 18.3 $ 10.7 1.4x NM 9.3x NM NM NMRTI Biologics, Inc. (NasdaqGM:RTIX) $ 232.2 $ 228.0 0.8x NM 1.4x 12.5x 40.0x 22.2x

High 2.0x 32.7x 9.3x 12.5x 40.0x 22.2xLow 0.8x 32.7x 1.4x 7.4x 16.6x 12.2xMean 1.4x 32.7x 4.5x 10.0x 28.3x 17.2xMedian 1.4x 32.7x 2.9x 10.0x 28.3x 17.2x


Comparative Company Analysis Operating StatisticsCell Generation


Company Name Return on Assets Return on Equity Return on Capital Est. LT Growth RateGenzyme Corp. (NasdaqGS:GENZ) 75.1 20.8 12.7 4.7 6.6 5.4 15.5 22.1 18.0Intercytex Group Plc (AIM:ICX) 5.9 -697.8 -69882.4 -60.2 -103.7 -71.8 NA NA NARTI Biologics, Inc. (NasdaqGM:RTIX) 46.9 9.9 4.4 1.1 -30.1 1.2 52.2 20.0 25.5

High 75.1 20.8 12.7 4.7 6.6 5.4 52.2 22.1 25.5Low 5.9 -697.8 -69882.4 -60.2 -103.7 -71.8 15.5 20.0 18.0Mean 42.6 -222.4 -23288.4 -18.2 -42.4 -21.7 33.8 21.1 21.7Median 46.9 9.9 4.4 1.1 -30.1 1.2 33.8 21.1 21.7


TEV/Total Rev Est. CY

LastFiscal Yr

GrossMargin (%)

LastFiscal YrEBITDA

Margin (%)

LastFiscal Yr

EBITMargin (%)



cavit financial model(1)

Business