Software Model

Table of ContentsLumigradeFinancial Model: Table of Contents1)PRELIMINARY STATEMENTS-InstructionsPage 1-AssumptionsPage 22)SUMMARY STATEMENTS-Income StatementPage 4-Balance SheetPage 5-Statement of Sources & UsesPage 6-Revenue, Gross Margin, & Profit GraphPage 7-Breakeven ChartPage 83)DETAILED FINANCIAL STATEMENTS-Receipts & DisbursementsPage 9-Statement of Sources & UsesPage 12-Income StatementPage 15-Balance SheetPage 214)SALES PROJECTIONS AND MARGIN ANALYSES-Media ContentPage 24-Marketing StrategiesPage 27-Product ThreePage 30-ServicesPage 335)STAFFING PLANPage 366)EQUIPMENT PURCHASESPage 427)MANUFACTURING & INVENTORYPage 488)RENT & TAXESPage 519)FINANCING ACTIVITIESPage 54Created by:Source Address:Used with permission: www.exinfm.com/free_spreadsheets.html

InstructionsLumigradeFinancial Model: Instructions1)ENTERING INFORMATION INTO THE MODEL: The DETAIL Worksheet.-Enter all inputs & assumptions in either the Assumptions page or the DETAIL worksheet.-Inputs are shaded yellow and appear blue when entered.-All other cells are protected and their formulas cannot be altered or seen without unprotecting the sheet.-At the top of the worksheet are three check lines. Values in each of these cells should always equal zero.-For information on the principles of financial projections, please contact a Coopers & Lybrand Emerging Company Services Consultant.2)VIEWING THE RESULTS: The Assumptions Page, Summary Statements, and Revenue Growth and Breakeven Charts.-Click on the Assumptions tab to view all inputs and underlying assumptions for the financial model.-Click on the Summary Statements tab to view the annual Income Statement, Balance Sheet, and Statement of Sources & Uses for each of the five years projected.-At the top of the Summary Statements sheet are three check lines similar to those in the DETAIL worksheet. These should equal zero at all times as well.-Click on the Revenue Growth Chart tab to view the growth in revenues over the five-year projection period.-Click on the Breakeven Chart tab to view the cash flow breakeven point.-Data for the Assumptions page and Financial Charts are drawn automatically from the DETAIL worksheet. You do not need to add anything more to these sheets.3)CUSTOMIZING THE FINANCIAL MODEL-To view the formula cells, choose Protection from the TOOLS menu and select Unprotect Worksheet. To protect the sheet again, choose Protection and select Protect Worksheet.-The variable inputs in the DETAIL worksheet are designed to accomodate most business models; however, the financial model can be tailored to suit specific business needs or operating procedures.-Structural changes to the model, such as additional product lines, extra departments, or embedded sales forecasts, require modifications of the underlying formulas. To make such changes, please contact an ECS Consultant.4)PRINTING THE FINANCIAL STATEMENTS-To print the entire model, choose Print from the FILE menu and select "Entire Workbook". Click OK.-To print an individual worksheet (such as the Assumptions sheet only) click on the tab of the sheet you would like to print, choose Print from the FILE menu, and select "Selected Sheet". Click OK.

AssumptionsLumigradeFinancial Model: AssumptionsLABELSCompany name to be used on all statements.................................................................................................................................................................................................................LumigradeDate projections first begin...............................................................................................................................................................................................................................July 1, 2012Name of 1st product line.....................................................................................................................................................................................................................................Media ContentName of 2nd product line.....................................................................................................................................................................................................................................Marketing StrategiesName of 3rd product line.....................................................................................................................................................................................................................................Product ThreeName of 4th product line.....................................................................................................................................................................................................................................ServicesName of department to be included in COGS.....................................................................................................................................................................................................................ContentName of 1st department to be included in operating expenses.............................................................................................................................................................................................EngineeringName of 2nd department to be included in operating expenses.............................................................................................................................................................................................Sales & MarketingName of 3rd department to be included in operating expenses.............................................................................................................................................................................................AdministrationSALESUNITS SALESFY 2013FY 2014FY 2015FY 2016FY 2017Media Content0.00.00.00.00.0Marketing Strategies0.00.00.00.00.0Product Three0.00.00.00.00.0Services0.00.00.00.00.0AVERAGE UNIT PRICEFY 2013FY 2014FY 2015FY 2016FY 2017Media Content0.00.00.00.00.0Marketing Strategies0.00.00.00.00.0Product Three0.00.00.00.00.0Services0.00.00.00.00.0COST OF GOODSAVERAGE UNIT COSTFY 2013FY 2014FY 2015FY 2016FY 2017Media Content0.00.00.00.00.0Marketing Strategies0.00.00.00.00.0Product Three0.00.00.00.00.0Services0.00.00.00.00.0Returns.................................................................................................................................................................................................."(as a percentage of Media Content revenue)....................................................................................................................................................................................0%Returns.................................................................................................................................................................................................."(as a percentage of Marketing Strategies revenue)....................................................................................................................................................................................0%Returns.................................................................................................................................................................................................."(as a percentage of Product Three revenue)....................................................................................................................................................................................0%Returns.................................................................................................................................................................................................."(as a percentage of Services revenue)....................................................................................................................................................................................0%BALANCE SHEETAccounts Receivable (adjustable up to 360 days)................................................................................................................................................................................................................(in days)................................................................................................................................................................................................................60 daysAccounts Payable (fixed at 30 days).....................................................................................................................................................................................................................(in days).....................................................................................................................................................................................................................30 daysSalaries Payable (fixed at 15 days)............................................................................................................................................................................................................................(in days)............................................................................................................................................................................................................................15 daysTaxes Payable (fixed at 90 days).............................................................................................................................................................................................................................(in days).............................................................................................................................................................................................................................90 daysInventory (adjustable up to 360 days)..........................................................................................................................................................................................................................(in days)..........................................................................................................................................................................................................................0 daysAvailable Credit Line.........................................................................................................................................................................................................................................(as a percentage of net accounts receivable)................................................................................................................................................................................................0%Maximum Credit Line Used.....................................................................................................................................................................................................................................(amount borrowed not to exceed)...................................................................................................................................................................................................$0Capital Equipment Lease Term (1 year minimum)..............................................................................................................................................................................................................(in years)..............................................................................................................................................................................................................3 yearsLong Term Borrowings Term (1 year minimum)..............................................................................................................................................................................................................(in years)..............................................................................................................................................................................................................5 yearsDEPRECIATIONHardwareSoftwareFurn & FixturesContent3 years3 years3 yearsEngineering3 years3 years3 yearsSales & Marketing3 years3 years3 yearsAdministration3 years3 years3 yearsEXPENSESHEADCOUNTFY 2013FY 2014FY 2015FY 2016FY 2017Content0.00.00.00.00.0Engineering0.00.00.00.00.0Sales & Marketing0.00.00.00.00.0Administration0.00.00.00.00.0TOTAL0.00.00.00.00.0PER PERSON EXPENSESSuppliesTravel & MealsPhone/PostageContent$100$500$100Engineering$100$500$100Sales & Marketing$100$2,500$300Administration$100$1,000$250EQUIPMENT PURCHASESHardwareSoftwareFurn & FixturesContent$3,000$1,500$1,000Engineering$3,500$1,500$1,000Sales & Marketing$2,500$1,000$1,000Administration$1,500$1,000$1,000Benefits & Taxes.......................................................................................................................................................................................(as a percentage of salaries).......................................................................................................................................................................................25%Salary Increases..................................................................................................................................................................................................(as an annual percentage)..................................................................................................................................................................................................5%Sales Commissions.....................................................................................................................................................................................................(as a percentage of sales).....................................................................................................................................................................................................100%Total Sales Through Commissions...................................................................................................................................................(as a percentage of total revenue)...................................................................................................................................................10%Business Insurance..................................................................................................................................................................................................(as a percentage of total revenue)...................................................................................................................................................................................................1%Anticipated Bad Debt...................................................................................................................................................................................................(as a percentage of collections)........................................................................................................................................................................................................1%Interest Revenue...........................................................................................................................................................................................................................(as a percentage of cash balance).......................................................................................................................................................................................................4%Interest Expense On Credit Line....................................................................................................................................................................................................(as a percentage of outstanding balance)......................................................................................................................................................................................................10%Interest Expense On Capital Equipment Lease....................................................................................................................................................................................................(as a percentage of outstanding balance)......................................................................................................................................................................................................10%Interest Expense On Long Term Borrowings....................................................................................................................................................................................................(as a percentage of outstanding balance)......................................................................................................................................................................................................10%Combined Federal & State Tax Rate.................................................................................................................................................................................(as a percentage of positive cumulative income)...................................................................................................................................................40%Office Rent................................................................................................................................................................................................................(per square foot).......................................................................................................................................................................................................$1.50Minimum Office Space......................................................................................................................................................................................................................(square footage per person).......................................................................................................................................................................................................250 sq ftTerm of Office Lease......................................................................................................................................................................................................................(in months).......................................................................................................................................................................................................12 mosUtilities Expense...........................................................................................................................................................................................................(per square foot).......................................................................................................................................................................................................$0.15Maintanence Expense................................................................................................................................................................................................(per square foot).......................................................................................................................................................................................................$0.10

DETAIL.XLSLumigradeAssumptions inEnter existingJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Sources & Uses Checkgray cells are enteredor year-to-date00000000000000000000000000000Rec. & Disb. Checkinto and refer to theentries in this00000000000000000000000000000Balance Sheet Check"Assumptions" page.column.00000000000000000000000000000RECEIPTS & DISBURSEMENTSLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017BEGINNING CASH00000000000000000000000000000ReceiptsCollections00000000000000000000000000000Financings00000000000000000000000000000Borrowings00000000000000000000000000000Interest Revenue00000000000000000000000000000Total receipts00000000000000000000000000000DisbursementsSalaries00000000000000000000000000000Benefits & Empl Taxes00000000000000000000000000000Incentives/commissions00000000000000000000000000000Direct Material00000000000000000000000000000Returns00000000000000000000000000000Advertising00000000000000000000000000000Promotional Material00000000000000000000000000000Trade Shows00000000000000000000000000000Supplies/Materials00000000000000000000000000000Travel & Meals00000000000000000000000000000Telephone/Postage00000000000000000000000000000Maintenance & Repair00000000000000000000000000000Rent00000000000000000000000000000Utilities00000000000000000000000000000Insurance00000000000000000000000000000Consultants00000000000000000000000000000Professional Services00000000000000000000000000000Taxes00000000000000000000000000000Equipment Purchases00000000000000000000000000000Debt Repayments00000000000000000000000000000Interest Expense00000000000000000000000000000Prior Accounts Payable00000000000000000000000000000Total Disbursements00000000000000000000000000000Changes in Cash00000000000000000000000000000ENDING CASH00000000000000000000000000000STATEMENT OF SOURCES AND USESLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017BEGINNING CASH00000000000000000000000000000Sources of CashNet Income00000000000000000000000000000Add Depr/Amort00000000000000000000000000000Issuance of Preferred Stock00000000000000000000000000000Issuance of Common Stock00000000000000000000000000000Plus Changes In:Accounts Payable (30 days)00000000000000000000000000000Salaries Payable (15 days)00000000000000000000000000000Taxes Payable (90 days)00000000000000000000000000000Additions to Line of Credit (0% of net A/R)00000000000000000000000000000Additions to Capital Equipment Lease (3 years)00000000000000000000000000000Additions to Long Term Debt (5 years)00000000000000000000000000000Total Sources of Cash00000000000000000000000000000Uses of CashBuyback of Preferred Stock00000000000000000000000000000Buyback of Common Stock00000000000000000000000000000Less Changes In:Net Accounts Rec00000000000000000000000000000Inventory (0 days)00000000000000000000000000000Gross Fixed Assets00000000000000000000000000000Reductions To Credit Line00000000000000000000000000000Reductions To Capital Equipment Lease00000000000000000000000000000Reductions To Long Term Debt00000000000000000000000000000Total Uses00000000000000000000000000000CHANGES IN CASH00000000000000000000000000000ENDING CASH00000000000000000000000000000INCOME STATEMENTLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017RevenueMedia Content00000000000000000000000000000Marketing Strategies00000000000000000000000000000Product Three00000000000000000000000000000Services00000000000000000000000000000Total Revenue00000000000000000000000000000ExpensesCost of Goods SoldDirect Labor00000000000000000000000000000Other Direct Costs00000000000000000000000000000Direct Materials00000000000000000000000000000Returns00000000000000000000000000000Total COGS00000000000000000000000000000Gross Margin00000000000000000000000000000% of Sales0%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%Operating ExpensesENGINEERINGHeadcount00000000000000000000000000000Salary00000000000000000000000000000Incentives00000000000000000000000000000Benefits & Taxes00000000000000000000000000000Consultants00000000000000000000000000000Supplies/ Materials$100 per person00000000000000000000000000000Travel & Meals$500 per person00000000000000000000000000000Telephone/Postage$100 per person00000000000000000000000000000Operations Setup00000000000000000000000000000Depreciation00000000000000000000000000000Total Expenses00000000000000000000000000000% of Sales0%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%SALES & MARKETINGHeadcount00000000000000000000000000000Salary00000000000000000000000000000Incentives/Commissions100.0% of sales10% of revenue00000000000000000000000000000Benefits & Taxes00000000000000000000000000000Supplies$100 per person00000000000000000000000000000Travel & Meals$2,500 per person00000000000000000000000000000Telephone/Postage$300 per person00000000000000000000000000000Depreciation00000000000000000000000000000Total Expenses00000000000000000000000000000% of Sales0%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%INCOME STATEMENTLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Adv/PromotionAdvertising00000000000000000000000000000Trade Shows00000000000000000000000000000Collateral00000000000000000000000000000Total Adv/Promotion00000000000000000000000000000% of Sales0%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%ADMINISTRATIONHeadcount00000000000000000000000000000Salary00000000000000000000000000000Incentives00000000000000000000000000000Benefits & Taxes00000000000000000000000000000Office Supplies$100 per person00000000000000000000000000000Travel & Meals$1,000 per person00000000000000000000000000000Telephone/Postage$250 per person00000000000000000000000000000Insurance1.0% of revenue00000000000000000000000000000Professional Services00000000000000000000000000000Bad Debt1.0% of collect00000000000000000000000000000Office Rent00000000000000000000000000000Utilities$0.15 per sq ft00000000000000000000000000000Maint/Repair$0.10 per sq ft00000000000000000000000000000Depreciation00000000000000000000000000000Total Expenses00000000000000000000000000000% of Sales0%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%Total Operating Exp00000000000000000000000000000% of Sales0%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%Income Before Int & Taxes00000000000000000000000000000% of Sales0%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%InterestInterest Revenue (4% of cash)4.0% of balance00000000000000000000000000000Interest Expense (10% of Credit Line)10.0% of balance00000000000000000000000000000Interest Expense - (10% of Cap. Equip. Lease)10.0% of balance00000000000000000000000000000Interest Expense - (10% of Long Term Debt)10.0% of balance00000000000000000000000000000Net Interest Revenue00000000000000000000000000000Income Before Taxes00000000000000000000000000000Tax Exp00000000000000000000000000000Net Income00000000000000000000000000000% of Sales0%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%BALANCE SHEETLumigrade1-Jul-12ExistingMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017ASSETSCurrent AssetsCash000000000000000000000000000000Gross Accounts Receivable (60 days)000000000000000000000000000000Allow for Doubtful Accts (1%)000000000000000000000000000000Net Accounts Rec000000000000000000000000000000Inventory (0 days)000000000000000000000000000000Total Current Assets000000000000000000000000000000Gross Fixed AssetsComputer Hardware00000000000000000000000000000Computer Software00000000000000000000000000000Furniture & Fixtures00000000000000000000000000000Total Gross Fixed Assets000000000000000000000000000000Accumulated DepreciationComputer Hardware00000000000000000000000000000Computer Software00000000000000000000000000000Furniture & Fixtures00000000000000000000000000000Total Accum Deprec000000000000000000000000000000Net Fixed Assets000000000000000000000000000000TOTAL ASSETS000000000000000000000000000000LIABILITIESShort Term LiabilitiesAccounts Payable (30 days)30 days000000000000000000000000000000Salaries Payable (15 days)15 days000000000000000000000000000000Taxes Payable (90 days)90 days000000000000000000000000000000Line of Credit (0% of net A/R)0% of net AR$0 max000000000000000000000000000000Current Portion of Capital Equipment Lease000000000000000000000000000000Current Portion of Long Term Debt000000000000000000000000000000Total ST Liabs000000000000000000000000000000Long Term LiabilitiesCapital Equipment Lease (3 years)3 years000000000000000000000000000000Long Term Debt (5 years)5 years000000000000000000000000000000Total LT Liabs000000000000000000000000000000TOTAL LIABILITIES000000000000000000000000000000EquityPreferred Stock000000000000000000000000000000Common Stock000000000000000000000000000000Retained Earnings000000000000000000000000000000Total Equity000000000000000000000000000000LIABILITIES & EQUITY000000000000000000000000000000SALES PROJECTIONS & MARGIN ANALYSISMedia Content1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Unitss.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Units00000000000000000000000000000Prices.k.u. 11.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Revenues.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Revenue00000000000000000000000000000Proportion of Total Revenues0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%COGSUnit Costs.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Direct Materials Costs.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Direct Materials00000000000000000000000000000Returns (0% of product revenue)0.0% of revenue00000000000000000000000000000Total COGS00000000000000000000000000000GROSS MARGIN00000000000000000000000000000Gross Margin % of Sales0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%SALES PROJECTIONS & MARGIN ANALYSISMarketing Strategies1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Unitss.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Units00000000000000000000000000000Prices.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Revenues.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Revenue00000000000000000000000000000Proportion of Total Revenues0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%COGSUnit Costs.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Direct Materials Costs.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Direct Materials00000000000000000000000000000Returns (0% of product revenue)0.0% of revenue00000000000000000000000000000Total COGS00000000000000000000000000000GROSS MARGIN00000000000000000000000000000Gross Margin % of Sales0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%SALES PROJECTIONS & MARGIN ANALYSISProduct Three1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Unitss.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Units00000000000000000000000000000Prices.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Revenues.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Revenue00000000000000000000000000000Proportion of Total Revenues0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%COGSUnit Costs.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Direct Materials Costs.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Direct Materials00000000000000000000000000000Returns (0% of product revenue)0.0% of revenue00000000000000000000000000000Total COGS00000000000000000000000000000GROSS MARGIN00000000000000000000000000000Gross Margin % of Sales0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%SALES PROJECTIONS & MARGIN ANALYSISServices1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017Unitss.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Units00000000000000000000000000000Prices.k.u. 11.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Revenues.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Revenue00000000000000000000000000000Proportion of Total Revenues0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%COGSUnit Costs.k.u. 10.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00s.k.u. 20.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Direct Materials Costs.k.u. 100000000000000000000000000000s.k.u. 200000000000000000000000000000Total Direct Materials00000000000000000000000000000Labor00000000000000000000000000000Other Direct Costs00000000000000000000000000000Returns (0% of product revenue)0.0% of revenue00000000000000000000000000000Total COGS00000000000000000000000000000GROSS MARGIN00000000000000000000000000000Gross Margin % of Sales0.0%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%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%STAFFING PLANLumigrade1-Jul-12ExistingMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017ContentSenior Application Engineer000000000000000000000000000000Inventory000000000000000000000000000000Technical Support Mgr.000000000000000000000000000000Technical Support000000000000000000000000000000Tech. Support Assistant000000000000000000000000000000Total Staff000000000000000000000000000000EngineeringCTO000000000000000000000000000000System Administration000000000000000000000000000000Project Manager000000000000000000000000000000Programming000000000000000000000000000000Quality Assurance000000000000000000000000000000Total Staff000000000000000000000000000000Sales & MarketingVP Marketing000000000000000000000000000000Mktg. Manager000000000000000000000000000000VP Sales000000000000000000000000000000Sales Representative000000000000000000000000000000Sales Engineer000000000000000000000000000000VP Business Development000000000000000000000000000000Customer Support000000000000000000000000000000Mktg. Assistant000000000000000000000000000000Total Staff000000000000000000000000000000AdministrationCEO000000000000000000000000000000CFO000000000000000000000000000000COO000000000000000000000000000000HR Manager000000000000000000000000000000Office Manager000000000000000000000000000000Admin. Assistant000000000000000000000000000000Total Staff000000000000000000000000000000TOTAL EMPLOYEES000000000000000000000000000000revenue per employee00000SALARIES PAIDLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017CONTENTAnnual SalarySenior Application Engineer$000000000000000000000000000000Inventory$000000000000000000000000000000Technical Support Mgr.$000000000000000000000000000000Technical Support$000000000000000000000000000000Tech. Support Assistant$000000000000000000000000000000Total Salaries Paid00000000000000000000000000000ENGINEERINGAnnual SalaryCTO$000000000000000000000000000000System Administration$000000000000000000000000000000Project Manager$000000000000000000000000000000Programming$000000000000000000000000000000Quality Assurance$000000000000000000000000000000Total Salaries Paid00000000000000000000000000000SALES & MARKETINGAnnual SalaryVP Marketing$000000000000000000000000000000Mktg. Manager$000000000000000000000000000000VP Sales$000000000000000000000000000000Sales Representative$000000000000000000000000000000Sales Engineer$000000000000000000000000000000VP Business Development$000000000000000000000000000000Customer Support$000000000000000000000000000000Mktg. Assistant$000000000000000000000000000000Total Salaries Paid00000000000000000000000000000ADMINISTRATIONAnnual SalaryCEO$000000000000000000000000000000CFO$000000000000000000000000000000COO$000000000000000000000000000000HR Manager$000000000000000000000000000000Office Manager$000000000000000000000000000000Admin. Assistant$000000000000000000000000000000Total Salaries Paid00000000000000000000000000000TOTAL SALARIES PAID00000000000000000000000000000Benefits & Taxes on Salary25% of salaries25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%25%Annual Salary Growth Factor5.0% per year100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%105.0%110.3%115.8%121.6%CAPITAL PURCHASESLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017CONTENTLease (Yes/No)Computer Hardware$3,000 per personNo00000000000000000000000000000Computer Software$1,500 per personNo00000000000000000000000000000Furniture & Fixtures$1,000 per personNo00000000000000000000000000000Total Purchases for Period00000000000000000000000000000of which Leased00000000000000000000000000000ENGINEERINGLease (Yes/No)Computer Hardware$3,500 per personNo00000000000000000000000000000Computer Software$1,500 per personNo00000000000000000000000000000Furniture & Fixtures$1,000 per personNo00000000000000000000000000000Total Purchases for Period00000000000000000000000000000of which Leased00000000000000000000000000000SALES & MARKETINGLease (Yes/No)Computer Hardware$2,500 per personNo00000000000000000000000000000Computer Software$1,000 per personNo00000000000000000000000000000Furniture & Fixtures$1,000 per personNo00000000000000000000000000000Total Purchases for Period00000000000000000000000000000of which Leased00000000000000000000000000000ADMINISTRATIONLease (Yes/No)Computer Hardware$1,500 per personNo00000000000000000000000000000Computer Software$1,000 per personNo00000000000000000000000000000Furniture & Fixtures$1,000 per personNo00000000000000000000000000000Total Purchases for Period00000000000000000000000000000of which Leased00000000000000000000000000000TOTAL PURCHASES FOR PERIOD00000000000000000000000000000of which leased00000000000000000000000000000DEPRECIATIONLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017CONTENTComputer Hardware (3 years)3 years00000000000000000000000000000Computer Software (3 years)3 years00000000000000000000000000000Furniture & Fixtures (3 years)3 years00000000000000000000000000000Total Depreciation for Period00000000000000000000000000000ENGINEERINGComputer Hardware (3 years)3 years00000000000000000000000000000Computer Software (3 years)3 years00000000000000000000000000000Furniture & Fixtures (3 years)3 years00000000000000000000000000000Total Depreciation for Period00000000000000000000000000000SALES & MARKETINGComputer Hardware (3 years)3 years00000000000000000000000000000Computer Software (3 years)3 years00000000000000000000000000000Furniture & Fixtures (3 years)3 years00000000000000000000000000000Total Depreciation for Period00000000000000000000000000000ADMINISTRATIONComputer Hardware (3 years)3 years00000000000000000000000000000Computer Software (3 years)3 years00000000000000000000000000000Furniture & Fixtures (3 years)3 years00000000000000000000000000000Total Depreciation for Period00000000000000000000000000000TOTAL DEPRECIATION FOR PERIOD00000000000000000000000000000MANUFACTURING & INVENTORYLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017CONTENTLaborHeadcount00000000000000000000000000000Salary00000000000000000000000000000Incentives00000000000000000000000000000Benefits & Taxes00000000000000000000000000000Total Labor00000000000000000000000000000Other Direct CostsSupplies/ Materials$100 per person00000000000000000000000000000Travel & Meals$500 per person00000000000000000000000000000Telephone/Postage$100 per person00000000000000000000000000000Depreciation00000000000000000000000000000Total Other Direct Costs00000000000000000000000000000Total Operations00000000000000000000000000000Inventory (0 days)0 daysINVENTORY: BeginningMedia Content00000000000000000000000000000Marketing Strategies00000000000000000000000000000Product Three00000000000000000000000000000Services00000000000000000000000000000Total Beginning Inventory00000000000000000000000000000ADD: PurchasesMedia Content00000000000000000000000000000Marketing Strategies00000000000000000000000000000Product Three00000000000000000000000000000Services00000000000000000000000000000Total Purchases00000000000000000000000000000LESS: Materials ExpenseMedia Content00000000000000000000000000000Marketing Strategies00000000000000000000000000000Product Three00000000000000000000000000000Services00000000000000000000000000000Total Materials Expense00000000000000000000000000000INVENTORY: EndingMedia Content00000000000000000000000000000Marketing Strategies00000000000000000000000000000Product Three00000000000000000000000000000Services00000000000000000000000000000Total Ending Inventory00000000000000000000000000000RENT & TAXESLumigrade1-Jul-12ExistingMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017RENTTotal Office Square Footage000000000000000000000000000000Square Footage per Person (250 ft. minimum)250 sq ft min00000000000000000000000000000Price per Square Foot$1.50 per sq ft12 years1.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.501.50Total Office Rent (12 month lease)00000000000000000000000000000TAXESCumulative Loss00000000000000000000000000000Taxable Income00000000000000000000000000000Tax Expense (40%)40% of earnings00000000000000000000000000000FINANCING ACTIVITIESLumigrade1-Jul-12Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12TotalMonth 13Month 14Month 15Month 16Month 17Month 18Month 19Month 20Month 21Month 22Month 23Month 24TotalTotalTotalTotal11:22 PMJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13FY 2013Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14FY 2014FY 2015FY 2016FY 2017DEBTAdditions To:Line of Credit00000000000000000000000000000Capital Equipment Lease00000000000000000000000000000Long Term Borrowings00000000000000000000000000000Total Additions00000000000000000000000000000Payments To:Line of Credit00000000000000000000000000000Capital Equipment Lease00000000000000000000000000000Long Term Borrowings00000000000000000000000000000Total Payments00000000000000000000000000000EQUITYIssuance of:Preferred Stock0000000000000000000000000000Common Stock00000000000000000000000000000Total Equity Investment00000000000000000000000000000Buyback of:Preferred Stock00000000000000000000000000000Common Stock00000000000000000000000000000Total Stock Buyback00000000000000000000000000000

Summary StatementsCHECKSFY 2013FY 2014FY 2015FY 2016FY 2017Balance Sheet Check$0$0$0$0$0S & U to Income Stmt$0$0$0$0$0S & U to Balance Sheet$0$0$0$0$0LumigradeIncome Statement ($)FY 2013FY 2014FY 2015FY 2016FY 2017RevenueMedia Content$0$0$0$0$0Marketing Strategies$0$0$0$0$0Product Three$0$0$0$0$0Services$0$0$0$0$0Total Revenue$0$0$0$0$0Cost of Goods Sold$0$0$0$0$0Gross Margin$0$0$0$0$0% of Revenue0%0%0%0%0%Operating ExpensesEngineering$0$0$0$0$0% of Revenue0%0%0%0%0%Marketing/Sales$0$0$0$0$0% of Revenue0%0%0%0%0%Administration$0$0$0$0$0% of Revenue0%0%0%0%0%Total Operating Expenses$0$0$0$0$0% of Revenue0%0%0%0%0%Income Before Int & Taxes$0$0$0$0$0% of Revenue0%0%0%0%0%Interest Expense$0$0$0$0$0Interest Revenue$0$0$0$0$0Income Before Taxes$0$0$0$0$0Tax Exp$0$0$0$0$0Net Income$0$0$0$0$0% of Revenue0%0%0%0%0%LumigradeBalance Sheet ($)FY 2013FY 2014FY 2015FY 2016FY 2017ASSETSCurrent AssetsCash$0$0$0$0$0Net Accounts Rec$0$0$0$0$0Inventory (0 days)$0$0$0$0$0Total Current Assets$0$0$0$0$0Gross Fixed Assets$0$0$0$0$0Less Accum Depreciation$0$0$0$0$0Net Fixed Assets$0$0$0$0$0TOTAL ASSETS$0$0$0$0$0LIABILITIESShort Term LiabilitiesAccounts Payable (30 days)$0$0$0$0$0Salaries Payable (15 days)$0$0$0$0$0Taxes Payable (90 days)$0$0$0$0$0Line of Credit (0% of net A/R)$0$0$0$0$0Current Portion of Capital Equipment Lease$0$0$0$0$0Current Portion of Long Term Debt$0$0$0$0$0Total Short Term Liabilities$0$0$0$0$0Long Term LiabilitiesCapital Equipment Lease (3 years)$0$0$0$0$0Long Term Debt (5 years)$0$0$0$0$0Total Long Term Liabilities$0$0$0$0$0TOTAL LIABILITIES$0$0$0$0$0EquityPreferred Stock$0$0$0$0$0Common Stock$0$0$0$0$0Retained Earnings$0$0$0$0$0Total Equity$0$0$0$0$0LIABILITIES & EQUITY$0$0$0$0$0LumigradeStatement of Sources & Uses ($)FY 2013FY 2014FY 2015FY 2016FY 2017BEGINNING CASH$0$0$0$0$0Sources of CashNet Income$0$0$0$0$0Add Depr/Amort$0$0$0$0$0Issuance of Preferred Stock$0$0$0$0$0Issuance of Common Stock$0$0$0$0$0Plus Changes In:Accounts Payable (30 days)$0$0$0$0$0Salaries Payable (15 days)$0$0$0$0$0Taxes Payable (90 days)$0$0$0$0$0Additions to Line of Credit (0% of net A/R)$0$0$0$0$0Additions to Capital Equipment Lease (3 years)$0$0$0$0$0Additions to Long Term Debt (5 years)$0$0$0$0$0Total Sources of Cash$0$0$0$0$0Uses of CashLess Changes In:Net Accounts Rec$0$0$0$0$0Inventory (0 days)$0$0$0$0$0Gross Fixed Assets$0$0$0$0$0Reductions To Credit Line$0$0$0$0$0Reductions To Capital Equipment Lease$0$0$0$0$0Reductions To Long Term Debt$0$0$0$0$0Total Uses$0$0$0$0$0CHANGES IN CASH$0$0$0$0$0ENDING CASH$0$0$0$0$0

Revenue Growth Chart000000000000000

RevenueGross MarginNet Income$MMForecasted Revenue, Gross Margin, & Income

Breakeven Chart000000000000000000000000000000000000000000000000

ReceiptsDisbursements$ (000s)Cash Flow Breakeven

Graph InputRevenue GrowthFY 2013FY 2014FY 2015FY 2016FY 2017Revenue00000Gross Margin00000Net Income00000Cash Flow BreakevenJul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Receipts000000000000000000000000Disbursements000000000000000000000000