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  • 1. Heartbeat LLCProjections of IncomeOperation - Year One 1 2 3Revenue:Sales Contracts Set-up (New) 0 0 1,098Accrued Contracts - YTD 0 0 0Total Gross Revenue 0 0 1,098 Growth rate 0.0% 0.0%Cost of Goods Sold: IT DEPARTMENT 9,958 9,958 9,958 Sales Division 7,331 7,331 18,811 Marketing 16,692 16,692 16,692 Total COGS 33,980 33,980 45,460Gross Profit (33,980) (33,980) (44,362)Gross Profit % #DIV/0! #DIV/0! -4040%Operating Expenses: Customer Service 0 0 0 General & Administrative: 19,517 19,517 19,517 Total Op. Expenses 19,517 19,517 19,517 Percent of Gross Revenue #DIV/0! #DIV/0! 1777.5%Operating Profit (Loss) (53,497) (53,497) (63,879)Other Income (Expense): Interest Income (Expense) 0 0 0Net Income (Loss) (53,497) (53,497) (63,879)Income (Loss) % of Revenue #DIV/0! #DIV/0! -5818%
  • 2. 4 5 6 7 8 9 104,392 16,470 16,470 16,470 16,470 16,470 16,4701,098 5,490 21,960 38,430 54,900 71,370 87,8405,490 21,960 38,430 54,900 71,370 87,840 104,310400.0% 300.0% 75.0% 42.9% 30.0% 23.1% 18.8%9,958 9,958 9,958 9,958 9,958 9,958 9,95821,411 32,148 32,411 32,411 32,411 32,411 32,41116,692 16,692 16,692 16,692 16,692 16,692 16,69248,060 58,798 59,060 59,060 59,060 59,060 59,060(42,570) (36,838) (20,630) (4,160) 12,310 28,780 45,250-775% -168% -54% -8% 17% 33% 43%0 3,103 3,103 3,103 3,103 3,103 3,10319,517 19,517 19,517 19,517 19,517 19,517 19,51719,517 22,620 22,620 22,620 22,620 22,620 22,620355.5% 103.0% 58.9% 41.2% 31.7% 25.8% 21.7%(62,087) (59,458) (43,250) (26,780) (10,310) 6,160 22,6300 0 0 0 0 0 0(62,087) (59,458) (43,250) (26,780) (10,310) 6,160 22,630-1131% -271% -113% -49% -14% 7% 22%
  • 3. 11 12 Total16,470 16,470 137,250104,310 120,780 506,178120,780 137,250 643,43715.8% 13.6%9,958 9,958 119,49132,411 32,411 313,90416,692 16,692 200,30459,060 59,060 633,69961,720 78,190 9,72951% 57% 2%3,103 3,103 24,82419,517 19,517 234,20422,620 22,620 259,02818.7% 16.5% 40.3%39,100 55,570 (249,299)0 0 039,100 55,570 (249,299)32% 40% -39%
  • 4. Heartbeat LLCProjections of IncomeOperation - Year Two 1 2 3Revenue:Sales Contracts Set-up (New) 16,470 16,470 21,960Contracts Monthly Fees 137,250 153,720 170,190Total Gross Revenue 153,720 170,190 192,150Cost of Goods Sold: IT DEPARTMENT 11,216 11,066 11,066 SALES DIVISION 33,741 33,741 38,741 Marketing 82,692 82,692 82,692 Total COGS 127,648 127,499 132,499Gross Profit 26,072 42,692 59,652Gross Profit % 17% 25% 31%Operating Expenses: Customer Service 4,383 4,383 4,383 General & Administrative: 40,660 40,660 40,660 Total Op. Expenses 45,043 45,043 45,043 Percent of Gross Revenue 29.3% 26.5% 23.4%Operating Profit (Loss) (18,971) (2,351) 14,609Other Income (Expense): Interest Income (Expense) 0 0 0Net Income (Loss) (18,971) (2,351) 14,609Income (Loss) % of Revenue -12% -1% 8%
  • 5. 4 5 6 7 8 9 1021,960 21,960 27,450 27,450 27,450 32,940 32,940192,150 214,110 236,070 263,520 290,970 318,420 351,360214,110 236,070 263,520 290,970 318,420 351,360 384,30011,066 11,066 11,066 11,066 11,066 11,066 11,06639,141 38,741 43,741 55,763 55,763 60,763 60,76382,692 82,692 82,692 82,692 82,692 82,692 82,692132,899 132,499 137,499 149,521 149,521 154,521 154,52181,212 103,572 126,022 141,449 168,899 196,839 229,77938% 44% 48% 49% 53% 56% 60%4,383 4,246 4,246 4,284 4,284 4,284 4,28440,660 40,660 40,660 40,660 40,660 40,660 40,66045,043 44,906 44,906 44,944 44,944 44,944 44,94421.0% 19.0% 17.0% 15.4% 14.1% 12.8% 11.7%36,169 58,666 81,116 96,506 123,956 151,896 184,8360 0 0 0 0 0 036,169 58,666 81,116 96,506 123,956 151,896 184,83617% 25% 31% 33% 39% 43% 48%
  • 6. 11 12 Total32,940 38,430 318,420384,300 417,240 3,129,300417,240 455,670 3,447,72011,066 11,066 132,94260,763 65,763 587,42182,692 82,692 992,304154,521 159,521 1,712,667262,719 296,149 1,735,05463% 65% 50%4,284 4,284 51,72840,660 40,660 487,91444,944 44,944 539,64210.8% 9.9% 15.7%217,776 251,206 1,195,4120 0 0217,776 251,206 1,195,41252% 55% 35%
  • 7. Heartbeat, LLCProjections of IncomeOperation - Year Three 1 2 3Revenue:Sales Contracts Set-up (New) 38,430 38,430 43,920Contracts Monthly Fees 455,670 494,100 532,530Total Gross Revenue 494,100 532,530 576,450Cost of Goods Sold: IT DEPARTMENT 12,696 12,696 12,696 SALES DIVISION 87,066 86,666 91,666 Marketing 93,692 93,692 93,692 Total COGS 193,453 193,053 198,053Gross Profit 300,647 339,477 378,397Gross Profit % 61% 64% 66%Operating Expenses: Customer Service 11,625 11,625 11,625 General & Administrative: 55,990 55,990 55,990 Total Op. Expenses 67,615 67,615 67,615 Percent of Gross Revenue 13.7% 12.7% 11.7%Operating Profit (Loss) 233,033 271,863 310,783Other Income (Expense): Interest Income (Expense) 0 0 0Net Income (Loss) 233,033 271,863 310,783Income (Loss) % of Revenue 47% 51% 54%
  • 8. 4 5 6 7 8 9 1043,920 49,410 49,410 54,900 54,900 60,390 60,390576,450 620,370 669,780 719,190 774,090 828,990 889,380620,370 669,780 719,190 774,090 828,990 889,380 949,77012,696 12,696 12,696 12,696 12,696 12,696 12,69691,666 96,666 96,666 101,666 101,666 106,666 106,66693,692 93,692 93,692 93,692 93,692 93,692 93,692198,053 203,053 203,053 208,053 208,053 213,053 213,053422,317 466,727 516,137 566,037 620,937 676,327 736,71768% 70% 72% 73% 75% 76% 78%11,625 11,625 11,625 11,625 11,625 11,625 11,62555,990 55,990 55,990 55,990 55,990 55,990 55,99067,615 67,615 67,615 67,615 67,615 67,615 67,61510.9% 10.1% 9.4% 8.7% 8.2% 7.6% 7.1%354,703 399,113 448,523 498,423 553,323 608,713 669,1030 0 0 0 0 0 0354,703 399,113 448,523 498,423 553,323 608,713 669,10357% 60% 62% 64% 67% 68% 70%
  • 9. 11 12 Total65,880 65,880 625,860949,770 1,015,650 8,525,9701,015,650 1,081,530 9,151,83012,696 12,696 152,346111,666 111,666 1,190,38693,692 93,692 1,124,304218,053 218,053 2,467,036797,597 863,477 6,684,79479% 80% 73%11,625 11,625 139,50055,990 55,990 671,87467,615 67,615 811,3746.7% 6.3% 8.9%729,983 795,863 5,873,4200 0 0729,983 795,863 5,873,42072% 74% 64%
  • 10. Heartbeat, LLCProjections of IncomeOperation - Year Four 1 2 3Revenue:Sales Contracts Set-up (New) 65,880 65,880 71,370Contracts Monthly Fees 1,081,530 1,147,410 1,213,290Total Gross Revenue 1,147,410 1,213,290 1,284,660Cost of Goods Sold: IT DEPARTMENT 14,176 14,176 14,176 SALES DIVISION 72,498 72,098 72,098 Marketing 104,692 104,692 104,692 Total COGS 191,366 190,966 190,966Gross Profit 956,045 1,022,325 1,093,695Gross Profit % 83% 84% 85%Operating Expenses: Customer Service 21,745 21,745 21,745 General & Administrative: 79,395 79,395 79,395 Total Op. Expenses 101,140 101,140 101,140 Percent of Gross Revenue 8.8% 8.3% 7.9%Operating Profit (Loss) 854,905 921,185 992,555Other Income (Expense): Interest Income (Expense) 0 0 0Net Income (Loss) 854,905 921,185 992,555Income (Loss) % of Revenue 75% 76% 77%
  • 11. 4 5 6 7 8 9 1071,370 76,860 76,860 82,350 82,350 87,840 87,8401,284,660 1,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,2901,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,290 1,850,13014,176 14,176 14,176 14,176 14,176 14,176 14,17672,098 72,098 72,098 72,098 72,098 72,098 72,098104,692 104,692 104,692 104,692 104,692 104,692 104,692190,966 190,966 190,966 190,966 190,966 190,966 190,9661,165,065 1,241,925 1,318,785 1,401,135 1,483,485 1,571,325 1,659,16586% 87% 87% 88% 89% 89% 90%21,745 21,745 21,745 21,745 21,745 21,745 21,74579,395 79,395 79,395 79,395 79,395 79,395 79,395101,140 101,140 101,140 101,140 101,140 101,140 101,1407.5% 7.1% 6.7% 6.4% 6.0% 5.7% 5.5%1,063,925 1,140,785 1,217,645 1,299,995 1,382,345 1,470,185 1,558,0250 0 0 0 0 0 01,063,925 1,140,785 1,217,645 1,299,995 1,382,345 1,470,185 1,558,02578% 80% 81% 82% 83% 83% 84%
  • 12. 11 12 Total93,330 93,330 955,2601,850,130 1,943,460 17,847,9901,943,460 2,036,790 18,803,25014,176 14,176 170,10672,098 72,098 865,576104,692 104,692 1,256,304190,966 190,966 2,291,9861,752,495 1,845,825 16,511,26490% 91% 88%21,745 21,745 260,94079,395 79,395 952,734101,140 101,140 1,213,6745.2% 5.0% 6.5%1,651,355 1,744,685 15,297,5900 0 01,651,355 1,744,685 15,297,59085% 86% 81%
  • 13. Heartbeat, LLCProjections of IncomeOperation - Year Five 1 2 3Revenue:Sales Contracts Set-up (New) 93,330 93,330 98,820Contracts Monthly Fees 2,036,790 2,130,120 2,223,450Total Gross Revenue 2,130,120 2,223,450 2,322,270Cost of Goods Sold: IT DEPARTMENT 15,656 15,656 15,656 SALES DIVISION 112,503 112,103 112,103 Marketing 115,692 115,692 115,692 Total COGS 243,851 243,451 243,451Gross Profit 1,886,270 1,980,000 2,078,820Gross Profit % 89% 89% 90%Operating Expenses: Customer Service 34,724 34,724 34,724 General & Administrative: 94,400 94,400 94,400 Total Op. Expenses 129,124 129,124 129,124 Percent of Gross Revenue 6.1% 5.8% 5.6%Operating Profit (Loss) 1,757,146 1,850,876 1,949,696Other Income (Expense): Interest Income (Expense) 0 0 0Net Income (Loss) 1,757,146 1,850,876 1,949,696Income (Loss) % of Revenue 82% 83% 84%
  • 14. 4 5 6 7 8 9 1098,820 104,310 104,310 109,800 109,800 115,290 115,2902,322,270 2,421,090 2,525,400 2,629,710 2,739,510 2,849,310 2,964,6002,421,090 2,525,400 2,629,710 2,739,510 2,849,310 2,964,600 3,079,89015,656 15,656 15,656 15,656 15,656 15,656 15,656112,103 112,103 112,103 112,103 112,103 112,103 112,103115,692 115,692 115,692 115,692 115,692 115,692 115,692243,451 243,451 243,451 243,451 243,451 243,451 243,4512,177,640 2,281,950 2,386,260 2,496,060 2,605,860 2,721,150 2,836,44090% 90% 91% 91% 91% 92% 92%34,724 34,724 34,724 34,724 34,724 34,724 34,72494,400 94,400 94,400 94,400 94,400 94,400 94,400129,124 129,124 129,124 129,124 129,124 129,124 129,1245.3% 5.1% 4.9% 4.7% 4.5% 4.4% 4.2%2,048,516 2,152,826 2,257,136 2,366,936 2,476,736 2,592,026 2,707,3160 0 0 0 0 0 02,048,516 2,152,826 2,257,136 2,366,936 2,476,736 2,592,026 2,707,31685% 85% 86% 86% 87% 87% 88%
  • 15. 11 12 Total120,780 120,780 1,284,6603,079,890 3,200,670 31,122,8103,200,670 3,321,450 32,407,47015,656 15,656 187,866112,103 112,103 1,345,636115,692 115,692 1,388,304243,451 243,451 2,921,8062,957,220 3,078,000 29,485,66492% 93% 91%34,724 34,724 416,68894,400 97,170 1,135,564129,124 131,894 1,552,2524.0% 4.0% 4.8%2,828,096 2,946,106 27,933,4120 0 02,828,096 2,946,106 27,933,41288% 89% 86%
  • 16. Heartbeat LLCProjections of IncomeCombine Years 1-5Revenue from Operation: Year One Year Two Year ThreeRevenue:Sales Contracts Set-up (New) 137,250 318,420 625,860Contracts Monthly Fees 506,178 3,129,300 8,525,970Total Gross Revenue 643,428 3,447,720 9,151,830 Growth rateCost of Goods Sold: IT DEPARTMENT 119,491 132,942 152,346 SALES DIVISION 313,904 587,421 1,190,386 Marketing 200,304 992,304 1,124,304 Total COGS 633,699 1,712,667 2,467,036 9,729 1,735,054 6,684,794Gross ProfitGross Profit %Operating Expenses: Customer Service 24,824 51,728 139,500 General & Administrative: 234,204 487,914 671,874 Total Op. Expenses 259,028 539,642 811,374 Percent of Gross RevenueOperating Profit (Loss) (224,475) 1,195,412 5,873,420Other Income (Expense):Interest Income (Expense)Net Income (Loss) (224,475) 1,195,412 5,873,420
  • 17. Year Four Year Five Combined955,260 1,284,660 3,321,45017,847,990 31,122,810 61,132,24818,803,250 32,407,470 64,453,698170,106 187,866 762,751865,576 1,345,636 4,302,9231,256,304 1,388,304 4,961,5202,291,986 2,921,806 10,027,19316,511,264 29,485,664 54,426,505260,940 416,688 893,680952,734 1,135,564 3,482,2901,213,674 1,552,252 4,116,94215,297,590 27,933,412 50,075,35815,297,590 27,933,412 50,075,358
  • 18. Heartbeat LLCProjection of Cash FlowsOperation - Year One 1 2Operating ActivitiesReceipts from Customers 0 0Payments for Cost of Goods Sold (33,980) (33,980)Payments for Operating Costs (19,517) (19,517)Interest Payments 0 0Taxes Paid 0 0Non-Cash Expenses: (Adding back) Depreciation 258 258 Amortization 0 0Cash Provided by or (Used) in Operations (53,239) (53,239)Financing Activities: L.O.C. 0 0 Notes Payable 0 0Cash Provided by or(Used) in Financing Activities 0 0Investing Activities: Purchases not on lease (15,500) 0 Equipment and Furniture Leases 0 0 Issue of Equity to Investors 250,000 0Cash Provided by or (Used) in Investing Activities 234,500 0Net Cash Flow This Month 181,261 (53,239)Beginning Cash Balance This Period 0 181,261Ending Cash Balance This Period 181,261 128,022
  • 19. 3 4 5 6 7 8 91,098 5,490 21,960 38,430 54,900 71,370 87,840(45,460) (48,060) (58,798) (59,060) (59,060) (59,060) (59,060)(19,517) (19,517) (22,620) (22,620) (22,620) (22,620) (22,620)0 0 0 0 0 0 00 0 0 0 0 0 0258 258 258 258 261 261 2610 0 0 0 0 0 0(63,621) (61,829) (59,200) (42,992) (26,519) (10,049) 6,4210 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 (150) 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 (150) 0 0(63,621) (61,829) (59,200) (42,992) (26,519) (10,049) 6,421128,022 64,401 2,572 (56,628) (99,620) (126,139) (136,188)64,401 2,572 (56,628) (99,620) (126,139) (136,188) (129,767)
  • 20. 10 11 12 Year One104,310 120,780 137,250 643,428(59,060) (59,060) (59,060) (633,699)(22,620) (22,620) (22,620) (259,028)0 0 0 00 0 0 0261 261 261 3,1140 0 0 022,891 39,361 55,831 (246,185)0 0 0 00 0 0 00 0 0 00 0 0 (15,650)0 0 0 00 0 0 250,0000 0 0 234,35022,891 39,361 55,831(129,767) (106,877) (67,516)(106,877) (67,516) (11,685)
  • 21. Heartbeat LLCProjection of Cash FlowsOperation - Year Two 1 2Operating ActivitiesReceipts from Customers 153,720 170,190Payments for Cost of Goods Sold (127,648) (127,499)Payments for Operating Costs (45,043) (45,043)Interest Payments 0 0Taxes Paid (Not displayed) 0 0Non-Cash Expenses: (Adding back) Depreciation 332 332 Amortization 0 0Cash Provided by or(Used in) Operations (18,639) (2,019)Financing Activities: L.O.C. 0 0 Notes Payable 0 0 Preferred Stock 0 0 Common Stock 0 0 Common Stock Options 0 0Cash Provided by or(Used in) Financing Activities 0 0Investing Activities: Purchases not on lease (8,300) 0 Equipment and Furniture Leases 0 0 Issue of Equity to Investors 0 0Cash Provided by or (Used in) Investing Activities (8,300) 0Net Cash Flow This Month (26,939) (2,019)Beginning Cash Balance This Period (11,685) (38,623)Ending Cash Balance This Period (38,623) (40,642)
  • 22. 3 4 5 6 7 8 9192,150 214,110 236,070 263,520 290,970 318,420 351,360(132,499) (132,899) (132,499) (137,499) (149,521) (149,521) (154,521)(45,043) (45,043) (44,906) (44,906) (44,944) (44,944) (44,944)0 0 0 0 0 0 00 0 0 0 0 0 0332 349 349 349 366 366 3660 0 0 0 0 0 014,941 36,518 59,015 81,465 96,872 124,322 152,2620 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 (1,050) 0 0 (1,050) 0 00 0 0 0 0 0 00 0 0 0 0 0 00 (1,050) 0 0 (1,050) 0 014,941 35,468 59,015 81,465 95,822 124,322 152,262(40,642) (25,701) 9,767 68,782 150,247 246,068 370,390(25,701) 9,767 68,782 150,247 246,068 370,390 522,651
  • 23. 10 11 12 Year Two384,300 417,240 455,670 3,447,720(154,521) (154,521) (159,521) (1,712,667)(44,944) (44,944) (44,944) (539,642)0 0 0 00 0 0 0366 366 366 4,2390 0 0 0185,202 218,142 251,572 1,199,6510 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 (10,400)0 0 0 00 0 0 00 0 0 (10,400)185,202 218,142 251,572522,651 707,853 925,994707,853 925,994 1,177,566
  • 24. Heartbeat LLCProjection of Cash FlowsOperation - Year Three 1 2Operating ActivitiesReceipts from Customers 494,100 532,530Payments for Cost of Goods Sold (193,453) (193,053)Payments for Operating Costs (67,615) (67,615)Interest Payments 0 0Taxes Paid (Not displayed) 0 0Non-Cash Expenses: (Adding back) Depreciation 503 503 Amortization 0 0Cash Provided by or(Used in) Operations 233,536 272,366Financing Activities: L.O.C. 0 0 Notes Payable 0 0 Preferred Stock 0 0 Common Stock 0 0 Common Stock Options 0 0Cash Provided by or(Used in) Financing Activities 0 0Investing Activities: Purchases not on lease (8,200) 0 Equipment and Furniture Leases 0 0 Issue of Equity to Investors 0 0Cash Provided by or (Used in) Investing Activities (8,200) 0Net Cash Flow This Month 225,336 272,366Beginning Cash Balance This Period 1,177,566 1,402,901Ending Cash Balance This Period 1,402,901 1,675,267
  • 25. 3 4 5 6 7 8 9576,450 620,370 669,780 719,190 774,090 828,990 889,380(198,053) (198,053) (203,053) (203,053) (208,053) (208,053) (213,053)(67,615) (67,615) (67,615) (67,615) (67,615) (67,615) (67,615)0 0 0 0 0 0 00 0 0 0 0 0 0503 503 503 503 503 503 5030 0 0 0 0 0 0311,286 355,206 399,616 449,026 54,834 553,826 609,2160 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0311,286 355,206 399,616 449,026 54,834 553,826 609,2161,675,267 1,986,552 2,341,758 2,741,373 3,190,399 3,245,233 3,799,0581,986,552 2,341,758 2,741,373 3,190,399 3,245,233 3,799,058 4,408,274
  • 26. 10 11 12 Year Three949,770 1,015,650 1,081,530 9,151,830(213,053) (218,053) (218,053) (2,467,036)(67,615) (67,615) (67,615) (811,374)0 0 0 00 0 0 0503 503 503 6,0360 0 0 0669,606 730,486 796,366 5,435,3650 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 (8,200)0 0 0 00 0 0 00 0 0 (8,200)669,606 730,486 796,3664,408,274 5,077,879 5,808,3655,077,879 5,808,365 6,604,730
  • 27. Heartbeat LLCProjection of Cash FlowsOperation - Year Four 1 2Operating ActivitiesReceipts from Customers 1,147,410 1,213,290Payments for Cost of Goods Sold (191,366) (190,966)Payments for Operating Costs (101,140) (101,140)Interest Payments 0 0Taxes Paid (Not displayed) 0 0Non-Cash Expenses: (Adding back) Depreciation 667 667 Amortization 0 0Cash Provided by or(Used in) Operations 855,572 921,852Financing Activities: L.O.C. 0 0 Notes Payable 0 0 Preferred Stock 0 0 Common Stock 0 0 Common Stock Options 0 0Cash Provided by or(Used in) Financing Activities 0 0Investing Activities: Purchases not on lease (9,850) 0 Equipment and Furniture Leases 0 0 Issue of Equity to Investors 0 0Cash Provided by or (Used in) Investing Activities (9,850) 0Net Cash Flow This Month 845,722 921,852Beginning Cash Balance This Period 6,604,730 7,450,452Ending Cash Balance This Period 7,450,452 8,372,304
  • 28. 3 4 5 6 7 8 91,284,660 1,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,290(190,966) (190,966) (190,966) (190,966) (190,966) (190,966) (190,966)(101,140) (101,140) (101,140) (101,140) (101,140) (101,140) (101,140)0 0 0 0 0 0 00 0 0 0 0 0 0667 667 667 667 667 667 6670 0 0 0 0 0 0993,222 1,064,592 1,141,452 1,218,312 1,300,662 1,383,012 1,470,8520 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0993,222 1,064,592 1,141,452 1,218,312 1,300,662 1,383,012 1,470,8528,372,304 9,365,526 10,430,118 11,571,570 12,789,882 14,090,544 15,473,5569,365,526 10,430,118 11,571,570 12,789,882 14,090,544 15,473,556 16,944,408
  • 29. 10 11 12 Year Four1,850,130 1,943,460 2,036,790 18,803,250(190,966) (190,966) (190,966) (2,291,986)(101,140) (101,140) (101,140) (1,213,674)0 0 0 00 0 0 0667 667 667 8,0040 0 0 01,558,692 1,652,022 1,745,352 15,305,5940 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 (9,850)0 0 0 00 0 0 00 0 0 (9,850)1,558,692 1,652,022 1,745,35216,944,408 18,503,100 20,155,12218,503,100 20,155,122 21,900,474
  • 30. Heartbeat LLCProjection of Cash FlowsOperation - Year Five 1 2Operating ActivitiesReceipts from Customers 2,223,450 2,223,450Payments for Cost of Goods Sold (243,851) (243,451)Payments for Operating Costs (129,124) (129,124)Interest Payments 0 0Taxes Paid (Not displayed) 0 0Non-Cash Expenses: (Adding back) Depreciation 667 667 Amortization 0 0Cash Provided by or(Used in) Operations 1,851,143 1,851,543Financing Activities: L.O.C. 0 0 Notes Payable 0 0 Preferred Stock 0 0 Common Stock 0 0 Common Stock Options 0 0Cash Provided by or(Used in) Financing Activities 0 0Investing Activities: Purchases not on lease (5,050) 0 Equipment and Furniture Leases 0 0 Issue of Equity to Investors 0 0Cash Provided by or (Used in) Investing Activities (5,050) 0Net Cash Flow This Month 1,846,093 1,851,543Beginning Cash Balance This Period 21,900,474 23,746,567Ending Cash Balance This Period 23,746,567 25,598,110
  • 31. 3 4 5 6 7 8 92,322,270 2,421,090 2,525,400 2,629,710 256,836 2,849,310 2,964,600(243,451) (243,451) (243,451) (243,451) (243,451) (243,451) (243,451)(129,124) (129,124) (129,124) (129,124) (129,124) (129,124) (129,124)0 0 0 0 0 0 00 0 0 0 0 0 0667 667 667 667 667 667 6670 0 0 0 0 0 01,950,363 2,049,183 2,153,493 2,257,803 -115,071 2,477,403 2,592,6930 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 01,950,363 2,049,183 2,153,493 2,257,803 -115,071 2,477,403 2,592,69325,598,110 27,548,473 29,597,656 31,751,149 34,008,952 33,893,881 36,371,28427,548,473 29,597,656 31,751,149 34,008,952 33,893,881 36,371,284 38,963,977
  • 32. 10 11 12 Year Five3,079,890 3,200,670 3,321,450 30,018,126(243,451) (243,451) (243,451) (2,921,806)(129,124) (129,124) (131,894) (1,552,252)0 0 0 00 0 0 0667 667 667 8,0040 0 0 02,707,983 2,828,763 2,946,773 25,552,0720 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 (5,050)0 0 0 00 0 0 00 0 0 (5,050)2,707,983 2,828,763 2,946,77338,963,977 41,671,960 44,500,72341,671,960 44,500,723 47,447,496
  • 33. Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLYYEAR ONE Increment 1New Sales Contracts (Monthly) 0Number of Contracts 0Revenues:Sales Contracts Set-up (New) - based on 100 Bed Facility 0Contracts Monthly Fees 0Total Gross Revenue 0Cost of Goods Sold:IT DEPARTMENT 1 Vice President of Engineering 0 0 Manager of Engineering 6,667 6,667 Staff 0 0Benefits 33% 2,200Rent 263 263Software 300 300Insurance 0 0Telephone +Cell 300 300Freight & Postage 25 25Supplies 50 50Travel 100 100Depreciation 53 53 Total Engineering Operating Expense 9,958Sales Division Number of Sales Staff 1 Number of Sales Contracts 0 Sales Manager 5,000 5,000 Assistant to Sales Manager 0 0 Administrative Staff 0 0 Sales Staff Full-time Position 6,000 0Commissions on Contracts 0% 0Benefits & Payroll Taxes 33% 1,650Recruiting 400 0Rent 20 Sq feet per Salesperson 263 263Insurance Premiums 0 0Telephone + Cell 300 300Supplies 50 50Travel 1,500 0Meals 600 0Initial Training 0 0Incentives Accural 125,000 0Depreciation 68 68 Total Sales Division Operating Expense 7,331Number Salesmen 4Number of Contracts 0Marketing 1 Vp Mktg 5,000 5,000 Staff 0 0Benefits 33% 1,650Rent 175 175Insurance 0 0Telephone 300 300Freight & Postage 2,000 2,000Supplies 1,000 1,000Travel 1,500 1,500Advertising 60,000 5,000Depreciation 67 67 Total Marketing Operating Expense 16,692Total Cost of Goods Sold 33,980Gross Profit (33,980)Operating Expenses:
  • 34. Customer Service 0 Director 0 0 Assistant Director 0 0 Team Supervisor 0 0 Staff 2,000 0Benefits 33% 0Rent 175 0Insurance 0 0Telephone 100 0Postage 50 0Supplies 50 0Depreciation 0 0 Total Customer Serv. Operating Expense 0General & Administrative: 2Chief Executive Officer (CEO) 6,000 6,000Office Mgr/Receptionist 2,400 2,400Chief Financial Officer (CFO) 0 0Chief Legal Counsel (CLC) 0 0Accounting: Controller 0 0 Assistant Controller 0 0 Accounts Payable 0 0 Accounts Receivable 0 0 Payroll 0 0Human Resources Director 0 0 Office Receptionist 0 0Training Director 0 0 Assistant Director 0 0 Staff 0 0Benefits 33% 2,772Rent 263 525Insurance 2,500 2,500Telephone 50 100Freight & Postage 25 50Subscriptions & Licenses 50 100Supplies 100 200Travel 1,500 1,500Professional Services 3,000 3,000IPO Consultanting 0 0Seminars & Conferences 200 200Training 0 0Miscellaneous expenses 50 100Amortization of Goodwill 0 0Depreciation 70 70 Total General Admin. Operating Expense 19,517Total Operating Expenses 19,517Operating Profit (Loss) (53,497)Other Income (Expense) Interest Expense (Income) 0 0Net Income Before Taxes & Depreciation (53,497)Income Taxes - State & Federal 0Net Income After Taxes (53,497)Total Losses Yr-1 (53,497)CAPITAL EXPENDITURESIT Capital Expenditures: 1Equipment, Furniture, Computers Server 2,000 2,000 Desktop 750 750 Furniture 500 500 Telephone 125 125 Cell Phone 300 300 Monthly Engineering Capital Purchase 3,675
  • 35. Total Engineering Capital Purchase 3,675Sales Division Capital Expenditures:Equipment, Furniture, Computers Laptop 1,000 1,000 Desktop 750 750 Printer 300 300 Copier 0 0 Multi-Media Projector 1,000 1,000 Furniture 500 500 Telephone 125 125 Cell Phone 300 300 Monthly Sales Division Capital Purchase 3,975 Total Sales Division Capital Purchase 3,975Marketing Capital Expenditures:Equipment, Furniture, Computers Desktop 750 750 Multi-Media Projector 1,000 1,000 Furniture 500 500 Telephone 125 125 Monthly Marketing Capital Purchase 2,375 Total Marketing Capital Purchase 2,375Customer Service Capital ExpendituresEquipment, Furniture, Computers Desktop 750 750 Furniture 500 500 Telephone 125 125Monthly Customer Service Capital Expense 1,375Total Customer Service Capital Expense 1,375General Administration Capital Expense 1Equipment, Furniture, Computers Laptop computer 1,000 1,000 Server 0 0 Desktop computer 750 750 Small Printer 300 300 Printer 1,500 1,500 Copier 2,000 2,000 Multi-Media Projector 0 0 Furniture 500 500 Telephone 125 125 Cell phone 300 300 Monthly Customer Service Capital Expense 6,475 Total Customer Service Capital Expense 6,475 Total Purchases Year One 17,875 Total Deprecitation Year One 258
  • 36. 2 3 4 5 6 7 80 1 4 15 15 15 150 1 5 20 35 50 650 1,098 4,392 16,470 16,470 16,470 16,4700 0 1,098 5,490 21,960 38,430 54,9000 1,098 5,490 21,960 38,430 54,900 71,3701 1 1 1 1 1 10 0 0 0 0 0 06,667 6,667 6,667 6,667 6,667 6,667 6,6670 0 0 0 0 0 02,200 2,200 2,200 2,200 2,200 2,200 2,200263 263 263 263 263 263 263300 300 300 300 300 300 3000 0 0 0 0 0 0300 300 300 300 300 300 30025 25 25 25 25 25 2550 50 50 50 50 50 50100 100 100 100 100 100 10053 53 53 53 53 53 539,958 9,958 9,958 9,958 9,958 9,958 9,9581 1 1 1 1 1 10 1 2 2 2 2 25,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 00 0 0 0 0 0 00 6,000 6,000 6,000 6,000 6,000 6,0000 0 0 0 0 0 01,650 3,630 3,630 3,630 3,630 3,630 3,6300 400 0 0 0 0 0263 263 263 0 263 263 2630 0 0 0 0 0 0300 300 300 300 300 300 30050 50 50 50 50 50 500 1,500 1,500 1,500 1,500 1,500 1,5000 600 600 600 600 600 6000 0 0 0 0 0 00 1,000 4,000 15,000 15,000 15,000 15,00068 68 68 68 68 68 687,331 18,811 21,411 32,148 32,411 32,411 32,4114 4 4 4 4 4 40 0 0 0 0 0 01 1 1 1 1 1 15,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 01,650 1,650 1,650 1,650 1,650 1,650 1,650175 175 175 175 175 175 1750 0 0 0 0 0 0300 300 300 300 300 300 3002,000 2,000 2,000 2,000 2,000 2,000 2,0001,000 1,000 1,000 1,000 1,000 1,000 1,0001,500 1,500 1,500 1,500 1,500 1,500 1,5005,000 5,000 5,000 5,000 5,000 5,000 5,00067 67 67 67 67 67 6716,692 16,692 16,692 16,692 16,692 16,692 16,69233,980 45,460 48,060 58,798 59,060 59,060 59,060(33,980) (44,362) (42,570) (36,838) (20,630) (4,160) 12,310
  • 37. 0 0 0 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 2,000 2,000 2,000 2,0000 0 0 660 660 660 6600 0 0 175 175 175 1750 0 0 0 0 0 00 0 0 100 100 100 1000 0 0 50 50 50 500 0 0 50 50 50 500 0 0 68 68 68 680 0 0 3,103 3,103 3,103 3,1032 2 2 2 2 2 26,000 6,000 6,000 6,000 6,000 6,000 6,0002,400 2,400 2,400 2,400 2,400 2,400 2,4000 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 02,772 2,772 2,772 2,772 2,772 2,772 2,772525 525 525 525 525 525 5252,500 2,500 2,500 2,500 2,500 2,500 2,500100 100 100 100 100 100 10050 50 50 50 50 50 50100 100 100 100 100 100 100200 200 200 200 200 200 2001,500 1,500 1,500 1,500 1,500 1,500 1,5003,000 3,000 3,000 3,000 3,000 3,000 3,0000 0 0 0 0 0 0200 200 200 200 200 200 2000 0 0 0 0 0 0100 100 100 100 100 100 1000 0 0 0 0 0 070 70 70 70 70 70 7019,517 19,517 19,517 19,517 19,517 19,517 19,51719,517 19,517 19,517 22,620 22,620 22,620 22,620 (53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)0 0 0 0 0 0 0 (53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)0 0 0 0 0 0 0 (53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310) (53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)1 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0
  • 38. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 01 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0258 258 258 326 326 326 326
  • 39. 9 10 11 12 Year One15 15 15 15 12580 95 110 12516,470 16,470 16,470 16,470 137,25071,370 87,840 104,310 120,780 506,17887,840 104,310 120,780 137,250 643,4281 1 1 1 120 0 0 0 06,667 6,667 6,667 6,667 80,0040 0 0 0 02,200 2,200 2,200 2,200 26,401263 263 263 263 3,150300 300 300 300 3,6000 0 0 0 0300 300 300 300 3,60025 25 25 25 30050 50 50 50 600100 100 100 100 1,20053 53 53 53 6369,958 9,958 9,958 9,958 119,4911 1 1 12 2 2 25,000 5,000 5,000 5,000 60,0000 0 0 0 00 0 0 0 06,000 6,000 6,000 6,000 60,0000 0 0 0 03,630 3,630 3,630 3,630 39,6000 0 0 0 400263 263 263 263 2,8880 0 0 0 0300 300 300 300 3,60050 50 50 50 6001,500 1,500 1,500 1,500 15,000600 600 600 600 6,0000 0 0 0 015,000 15,000 15,000 15,000 125,00068 68 68 68 81632,411 32,411 32,411 32,411 313,9044 4 4 40 0 0 01 1 1 15,000 5,000 5,000 5,000 60,0000 0 0 0 01,650 1,650 1,650 1,650 19,800175 175 175 175 2,1000 0 0 0 0300 300 300 300 3,6002,000 2,000 2,000 2,000 24,0001,000 1,000 1,000 1,000 12,0001,500 1,500 1,500 1,500 18,0005,000 5,000 5,000 5,000 60,00067 67 67 67 80416,692 16,692 16,692 16,692 200,30459,060 59,060 59,060 59,060 633,69928,780 45,250 61,720 78,190 9,729
  • 40. 1 1 1 1 80 0 0 0 00 0 0 0 00 0 0 0 02,000 2,000 2,000 2,000 16,000660 660 660 660 5,280175 175 175 175 1,4000 0 0 0 0100 100 100 100 80050 50 50 50 40050 50 50 50 40068 68 68 68 5443,103 3,103 3,103 3,103 24,8242 2 2 2 246,000 6,000 6,000 6,000 72,0002,400 2,400 2,400 2,400 28,8000 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 02,772 2,772 2,772 2,772 33,264525 525 525 525 6,3002,500 2,500 2,500 2,500 30,000100 100 100 100 1,20050 50 50 50 600100 100 100 100 1,200200 200 200 200 2,4001,500 1,500 1,500 1,500 18,0003,000 3,000 3,000 3,000 36,0000 0 0 0 0200 200 200 200 2,4000 0 0 0 0100 100 100 100 1,2000 0 0 0 070 70 70 70 84019,517 19,517 19,517 19,517 234,20422,620 22,620 22,620 22,620 6,160 22,630 39,100 55,570 (249,299)0 0 0 0 0 6,160 22,630 39,100 55,570 (249,299)0 0 0 0 0 6,160 22,630 39,100 55,570 (249,299) 6,160 22,630 39,100 55,570 (249,299)1 1 1 10 0 0 0 2,0000 0 0 0 7500 0 0 0 5000 0 0 0 1250 0 0 0 3000 0 0 0 3,675
  • 41. 0 0 0 0 3,6750 0 0 0 1,0000 0 0 0 7500 0 0 0 3000 0 0 0 00 0 0 0 1,0000 0 0 0 5000 0 0 0 1250 0 0 0 3000 0 0 0 3,9750 0 0 0 4,1000 0 0 0 7500 0 0 0 1,0000 0 0 0 5000 0 0 0 1250 0 0 0 2,3750 0 0 0 2,3750 0 0 0 7500 0 0 0 5000 0 0 0 1250 0 0 0 1,3750 0 0 0 1,3751 1 1 10 0 0 0 1,0000 0 0 0 00 0 0 0 7500 0 0 0 3000 0 0 0 1,5000 0 0 0 2,0000 0 0 0 00 0 0 0 5000 0 0 0 1250 0 0 0 3000 0 0 0 6,4750 0 0 0 6,4750 0 0 0 17,875326 326 326 326 3,640
  • 42. Heartbeat LLC Proforma of Projected Earnings - DATA SHEET ONLYYEAR TWO Increment 1New Sales Contracts (Monthly) 15Number of Contracts 140Revenues:Sales Contracts Set-up (New) - Based on 100 bed facility x6 16,470Contracts Monthly Fees 137,250Total Gross Revenue 153,720Cost of Goods Sold:IT DEPARTMENT 1 Vice President of Engineering 0 0 Manager of Engineering 7,500 7,500 Staff 0 0Benefits 33% 2,475Rent 263 263Software 300 300Insurance 0 0Telephone + Cell 300 300Freight & Postage 50 50Supplies 75 75Travel 200 200Depreciation 53 53 Total Engineering Operating Expense 11,216SALES DIVISION Number of Sales Staff 1 Number of Sales Contracts 4 Sales Manager 5,000 5,000 Assistant to Sales Manager 0 0 Administrative Staff 0 0 Sales Staff Full Time 7,000 7,000Commissions on Contracts 0% 0Benefits & Payroll Taxes 33% 3,960Recruiting 400 0Rent 263 263Insurance 0 0Telephone + Cell 300 300Supplies 50 50Travel 1,500 1,500Meals 600 600Initial Training 0 0Incentives Accural 290,000 15,000Depreciation calculation good for 3 xxx 68 68 Total Sales Division Operating Expense 33,741Number Salesmen 6Number of Contracts 1Marketing 1 Director VP Mrkt 5,000 5,000 Staff 0 0Benefits 33% 1,650Rent 175 175Insurance 0 0Telephone 300 300Freight & Postage 3,000 3,000Supplies 1,000 1,000Travel 1,500 1,500Advertising 70,000 70,000Depreciation 67 67 Total Marketing Operating Expense 82,692Total Cost of Goods Sold 127,648Gross Profit 26,072Operating Expenses:
  • 43. Customer Service 1 Director 0 0 Assistant Director 0 0 Team Supervisor 0 0 Staff 3,000 3,000Benefits 33% 990Rent 175 175Insurance 0 0Telephone 150 150Postage 25 25Supplies 25 25Depreciation 18 18 Total Customer Serv. Operating Expense 4,383General & Administrative: 5Chief Executive Officer (CEO) 6,000 6,000Office Mgr/Receptionist 3,400 3,400Chief Financial Officer (CFO) 0 0Chief Legal Counsel (CLC) 0 0Accounting: Controller 0 0 Assistant Controller 0 0 Accounts Payable 0 0 Accounts Receivable 0 0 Payroll 0 0Human Resources: Director 0 0 Office Receptionist 0 0Training: Director 0 0 Assistant Director 0 0 Staff 0 0Benefits 33% 3,102Rent 263 1,313Insurance 2,500 2,500Telephone 50 250Freight & Postage 50 250Subscriptions & Licenses 75 375Supplies 150 750Travel 2,500 12,500Professional Services 9,000 9,000IPO Consultanting 0 0Seminars & Conferences 400 400Training 0 0Miscellaneous expenses 150 750Amortization of Goodwill 0 0Depreciation 70 70 Total General Admin. Operating Expense 40,660Total Operating Expenses 45,043Operating Profit (Loss) (18,971)Other Income (Expense) Interest Expense (Income) 0 0Net Income Before Taxes & Depreciation (18,971)Income Taxes - State & Federal 0Net Income After Taxes (18,971)Total Losses Yr-2 (18,971)CAPITAL EXPENDITURESIT Capital Expenditures: 1Equipment, Furniture, Computers Server 2,000 0 Desktop 750 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Engineering Capital Expense 425
  • 44. Total Engineering Capital Purchase 425Sales Division Capital Expenditures:Equipment, Furniture, Computers Laptop 1,000 1,000 Desktop 750 750 Printer 300 300 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 500 Telephone 125 125 Cell Phone 300 300 Monthly Sales Division Capital 2,975 Total Sales Division Capital Purchase 2,975Marketing Capital Expenditures:Equipment, Furniture, Computers Desktop 750 750 Multi-Media Projector 0 0 Furniture 500 0 Telephone 125 125 Monthly Marketing Capital Purchase 875 Total Marketing Capital Purchase 875Customer Service Capital ExpendituresEquipment, Furniture, Computers Desktop 750 750 Furniture 500 500 Telephone 125 125 Monthly CS Capital Purchase 1,375 Total Customer Service Capital 1,375General Administration Capital Expenses 1Equipment, Furniture, Computers Laptop computer 1,000 1,000 Server 2,000 0 Desktop computer 750 750 Small Printer 300 300 Printer 1,500 1,500 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 500 Telephone 125 125 Cell phone 300 300 Monthly G&A Capital Purchase 4,475 Total G&A Capital Purchases 4,475 Total Purchases Year Two 10,125 Total Deprecitation Year One 276
  • 45. 2 3 4 5 6 7 815 20 20 20 25 25 25155 175 195 215 240 265 29016,470 21,960 21,960 21,960 27,450 27,450 27,450153,720 170,190 192,150 214,110 236,070 263,520 290,970170,190 192,150 214,110 236,070 263,520 290,970 318,4201 1 1 1 1 1 10 0 0 0 0 0 07,500 7,500 7,500 7,500 7,500 7,500 7,5000 0 0 0 0 0 02,475 2,475 2,475 2,475 2,475 2,475 2,475113 113 113 113 113 113 113300 300 300 300 300 300 3000 0 0 0 0 0 0300 300 300 300 300 300 30050 50 50 50 50 50 5075 75 75 75 75 75 75200 200 200 200 200 200 20053 53 53 53 53 53 5311,066 11,066 11,066 11,066 11,066 11,066 11,0661 1 1 1 1 2 24 4 4 4 4 6 65,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 00 0 0 0 0 0 07,000 7,000 7,000 7,000 7,000 14,000 14,0000 0 0 0 0 0 03,960 3,960 3,960 3,960 3,960 6,270 6,2700 0 400 0 0 0 0263 263 263 263 263 525 5250 0 0 0 0 0 0300 300 300 300 300 600 60050 50 50 50 50 100 1001,500 1,500 1,500 1,500 1,500 3,000 3,000600 600 600 600 600 1,200 1,2000 0 0 0 0 0 015,000 20,000 20,000 20,000 25,000 25,000 25,00068 68 68 68 68 68 6833,741 38,741 39,141 38,741 43,741 55,763 55,7636 6 6 6 6 6 61 1 1 1 1 1 11 1 1 1 1 1 15,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 01,650 1,650 1,650 1,650 1,650 1,650 1,650175 175 175 175 175 175 1750 0 0 0 0 0 0300 300 300 300 300 300 3003,000 3,000 3,000 3,000 3,000 3,000 3,0001,000 1,000 1,000 1,000 1,000 1,000 1,0001,500 1,500 1,500 1,500 1,500 1,500 1,50070,000 70,000 70,000 70,000 70,000 70,000 70,00067 67 67 67 67 67 6782,692 82,692 82,692 82,692 82,692 82,692 82,692127,499 132,499 132,899 132,499 137,499 149,521 149,52142,692 59,652 81,212 103,572 126,022 141,449 168,899
  • 46. 1 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03,000 3,000 3,000 3,000 3,000 3,000 3,000990 990 990 990 990 990 990175 175 175 38 38 76 760 0 0 0 0 0 0150 150 150 150 150 150 15025 25 25 25 25 25 2525 25 25 25 25 25 2518 18 18 18 18 18 184,383 4,383 4,383 4,246 4,246 4,284 4,2845 5 5 5 5 5 56,000 6,000 6,000 6,000 6,000 6,000 6,0003,400 3,400 3,400 3,400 3,400 3,400 3,4000 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03,102 3,102 3,102 3,102 3,102 3,102 3,1021,313 1,313 1,313 1,313 1,313 1,313 1,3132,500 2,500 2,500 2,500 2,500 2,500 2,500250 250 250 250 250 250 250250 250 250 250 250 250 250375 375 375 375 375 375 375750 750 750 750 750 750 75012,500 12,500 12,500 12,500 12,500 12,500 12,5009,000 9,000 9,000 9,000 9,000 9,000 9,0000 0 0 0 0 0 0400 400 400 400 400 400 4000 0 0 0 0 0 0750 750 750 750 750 750 7500 0 0 0 0 0 070 70 70 70 70 70 7040,660 40,660 40,660 40,660 40,660 40,660 40,66045,043 45,043 40,660 40,660 40,660 40,660 40,660 (2,351) 14,609 36,169 58,666 81,116 96,506 123,9560 0 0 0 0 0 0 (2,351) 14,609 36,169 58,666 81,116 96,506 123,9560 0 0 0 0 0 0 (2,351) 14,609 36,169 58,666 81,116 96,506 123,956 (2,351) 14,609 36,169 58,666 81,116 96,506 123,9561 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0
  • 47. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 750 00 0 0 0 0 500 00 0 0 0 0 0 00 0 0 0 0 1,250 00 0 0 0 0 1,250 01 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 750 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 250 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 1,000 0 0 0 00 0 1,000 0 0 0 00 0 1,000 0 0 1,250 0276 276 276 276 276 276 276
  • 48. 9 10 11 12 Year Two30 30 30 35 290320 350 380 41532,940 32,940 32,940 38,430 318,420318,420 351,360 384,300 417,240 3,129,300351,360 384,300 417,240 455,670 3,447,7201 1 1 1 120 0 0 0 07,500 7,500 7,500 7,500 90,0000 0 0 0 02,475 2,475 2,475 2,475 29,700113 113 113 113 1,506300 300 300 300 3,6000 0 0 0 0300 300 300 300 3,60050 50 50 50 60075 75 75 75 900200 200 200 200 240053 53 53 53 63611,066 11,066 11,066 11,066 132,9422 2 2 26 6 6 65,000 5,000 5,000 5,000 60,0000 0 0 0 00 0 0 0 014,000 14,000 14,000 14,000 126,0000 0 0 0 06,270 6,270 6,270 6,270 61,3800 0 0 0 400525 525 525 525 4,7250 0 0 0 0600 600 600 600 5,400100 100 100 100 9003,000 3,000 3,000 3,000 27,0001,200 1,200 1,200 1,200 10,8000 0 0 0 030,000 30,000 30,000 35,000 290,00068 68 68 68 81660,763 60,763 60,763 65,763 446,6406 6 6 61 1 1 11 1 1 15,000 5,000 5,000 5,000 60,0000 0 0 0 01,650 1,650 1,650 1,650 19,800175 175 175 175 2,1000 0 0 0 0300 300 300 300 3,6003,000 3,000 3,000 3,000 36,0001,000 1,000 1,000 1,000 12,0001,500 1,500 1,500 1,500 18,00070,000 70,000 70,000 70,000 840,00067 67 67 67 80482,692 82,692 82,692 82,692 992,304154,521 154,521 154,521 159,521 1,712,667196,839 229,779 262,719 296,149 1,735,054
  • 49. 1 1 1 1 120 0 0 0 00 0 0 0 00 0 0 0 03,000 3,000 3,000 3,000 36,000990 990 990 990 11,88076 76 76 76 1,2320 0 0 0 0150 150 150 150 1,80025 25 25 25 30025 25 25 25 30018 18 18 18 2164,284 4,284 4,284 4,284 51,7285 5 5 5 606,000 6,000 6,000 6,000 72,0003,400 3,400 3,400 3,400 40,8000 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 03,102 3,102 3,102 3,102 37,2241,313 1,313 1,313 1,313 15,7502,500 2,500 2,500 2,500 30,000250 250 250 250 3,000250 250 250 250 3,000375 375 375 375 4,500750 750 750 750 9,00012,500 12,500 12,500 12,500 150,0009,000 9,000 9,000 9,000 108,0000 0 0 0 0400 400 400 400 4,8000 0 0 0 0750 750 750 750 9,0000 0 0 0 070 70 70 70 84040,660 40,660 40,660 40,660 487,91440,660 40,660 40,660 40,660 501,063 151,896 184,836 217,776 251,206 1,195,4120 0 0 0 0 151,896 184,836 217,776 251,206 1,195,4120 0 0 0 0 151,896 184,836 217,776 251,206 1,195,412 151,896 184,836 217,776 251,206 1,195,4121 1 1 10 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 425
  • 50. 0 0 0 0 4250 0 0 0 1,0000 0 0 0 7500 0 0 0 3000 0 0 0 00 0 0 0 00 0 0 0 5000 0 0 0 1250 0 0 0 3000 0 0 0 2,9750 0 0 0 2,9750 0 0 0 7500 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 8750 0 0 0 8750 0 0 0 1,5000 0 0 0 1,0000 0 0 0 1250 0 0 0 2,6250 0 0 0 2,6251 1 1 10 0 0 0 1,0000 0 0 0 00 0 0 0 1,5000 0 0 0 3000 0 0 0 1,5000 0 0 0 00 0 0 0 00 0 0 0 7500 0 0 0 1250 0 0 0 3000 0 0 0 5,4750 0 0 0 5,4750 0 0 0 12,375276 276 276 276 3,312
  • 51. Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLYYEAR Three Increment 1New Sales Contracts (Monthly) 35Number of Contracts 450Revenues:Sales Contracts Set-up (New) 38,430Contracts Monthly Fees 455,670Total Gross Revenue 494,100Cost of Goods Sold:IT DEPARTMENT 1 Vice President of Engineering 0 0 Manager of Engineering 8,500 8,500 Staff 0 0Benefits 33% 2,805Rent 263 263Software 300 300Insurance 0 0Telephone + cell 300 300Freight & Postage 75 75Supplies 100 100Travel 300 300Depreciation 53 53 Total Engineering Operating Expenses 12,696SALES DIVISION Number of Sales Staff 3 Number of Sales Contracts 8 Sales Manager 5,000 5,000 Assistant to Sales Manager 3,000 3,000 Administrative Staff 0 0 Sales Staff Full-time Position 8,000 24,000Commissions on Contracts 0% 0Benefits & Payroll Taxes 33% 10,560Recruiting 400 400Rent 263 788Insurance 0 0Telephone + cell 600 1,800Supplies 50 150Travel 1,500 4,500Meals 600 1,800Initial Training 0 0Incentives 570,000 35,000Depreciation calculation good for 3 xxx 68 68 Total Sales Division Operating Expenses 87,066Number Salesmen 6Number of Contracts 6Marketing 1 Director VP Mrkt 5,000 5,000 Staff 0 0Benefits 33% 1,650Rent 175 175Insurance 0 0Telephone 300 300Freight & Postage 4,000 4,000Supplies 1,000 1,000Travel 1,500 1,500Advertising 80,000 80,000Depreciation 67 67 Total Marketing Operating Expense 93,692Total Cost of Goods Sold 193,453Gross Profit 300,647Operating Expenses:
  • 52. Customer Service 2 Director 0 0 Assistant Director 0 0 Team Supervisor 0 0 Staff 4,000 8,000Benefits 33% 2,640Rent 175 350Insurance 0 0Telephone 200 400Postage 50 100Supplies 50 100Depreciation 35 35 Total Customer Serv. Operating Expense 11,625General & Administrative: 7Chief Executive Officer (CEO) 6,000 6,000Office Mgr/Receptionist 4,400 4,400Chief Financial Officer (CFO) 0 0Chief Legal Counsel (CLC) 0 0Accounting Controller 0 0 Assistant Controller 0 0 Accounts Payable 0 0 Accounts Receivable 0 0 Payroll 0 0Human Resources Director 0 0 Office Receptionist 0 0Training Director 0 0 Assistant Director 0 0 Staff 0 0Benefits 33% 3,432Rent 263 1,838Insurance 2,500 2,500Telephone 50 350Freight & Postage 75 525Subscriptions & Licenses 100 700Supplies 175 1,225Travel 3,500 24,500Professional Services 9,000 9,000IPO Consultanting 0 0Seminars & Conferences 400 400Training 0 0Miscellaneous expenses 150 1,050Amortization of Goodwill 0 0Depreciation 70 70 Total General Admin. Operating Expenses 55,990Total Operating Expenses 55,990Operating Profit (Loss) 233,033Other Income (Expense) Interest Expense (Income) 0 0Net Income Before Taxes & Depreciation 233,033Income Taxes - State & Federal 0Net Income After Taxes 233,033Total Losses Yr-3 233,033CAPITAL EXPENDITURESIT Capital Expenditures: 1Equipment, Furniture, Computers Server 2,000 0 Desktop 750 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300
  • 53. Monthly Engineering Capital Expense 425 Total Engineering Capital Puchase 425Sales Division Capital Expenditures:Equipment, Furniture, Computers Laptop 1,000 0 Desktop 750 0 Printer 300 0 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Sales Division Capital 425 Total Sales Division Capital Purchase 425Marketing Capital Expenditures:Equipment, Furniture, Computers Desktop 750 0 Multi-Media Projector 0 0 Furniture 500 0 Telephone 125 0 Monthly Marketing Capital Purchase 0 Total Marketing Capital Purchase 0Customer Service Capital ExpendituresEquipment, Furniture, Computers Desktop 750 0 Furniture 500 0 Telephone 125 0 Monthly Customer Service Capital 0 Total Customer Service Capital 0General Administration Capital Expenses 1Equipment, Furniture, Computers Laptop computer 1,000 1,000 Server 0 0 Desktop computer 750 750 Small Printer 300 300 Printer 1,500 1,500 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 500 Telephone 125 125 Cell phone 300 300 Monthly G&A Capital Purchase 4,475 Total G&A Capital Purchases 4,475Total Purchases Year Three 5,325Total Deprecitation Year One 293
  • 54. 2 3 4 5 6 7 835 40 40 45 45 50 50485 525 565 610 655 705 75538,430 43,920 43,920 49,410 49,410 54,900 54,900494,100 532,530 576,450 620,370 669,780 719,190 774,090532,530 576,450 620,370 669,780 719,190 774,090 828,9901 1 1 1 1 1 10 0 0 0 0 0 08,500 8,500 8,500 8,500 8,500 8,500 8,5000 0 0 0 0 0 02,805 2,805 2,805 2,805 2,805 2,805 2,805263 263 263 263 263 263 263300 300 300 300 300 300 3000 0 0 0 0 0 0300 300 300 300 300 300 30075 75 75 75 75 75 75100 100 100 100 100 100 100300 300 300 300 300 300 30053 53 53 53 53 53 5312,696 12,696 12,696 12,696 12,696 12,696 12,6963 3 3 3 3 3 38 8 8 8 8 8 85,000 5,000 5,000 5,000 5,000 5,000 5,0003,000 3,000 3,000 3,000 3,000 3,000 3,0000 0 0 0 0 0 024,000 24,000 24,000 24,000 24,000 24,000 24,0000 0 0 0 0 0 010,560 10,560 10,560 10,560 10,560 10,560 10,5600 0 0 0 0 0 0788 788 788 788 788 788 7880 0 0 0 0 0 01,800 1,800 1,800 1,800 1,800 1,800 1,800150 150 150 150 150 150 1504,500 4,500 4,500 4,500 4,500 4,500 4,5001,800 1,800 1,800 1,800 1,800 1,800 1,8000 0 0 0 0 0 035,000 40,000 40,000 45,000 45,000 50,000 50,00068 68 68 68 68 68 6886,666 91,666 91,666 96,666 96,666 101,666 101,6666 6 6 6 6 6 66 6 6 6 6 6 61 1 1 1 1 1 15,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 01,650 1,650 1,650 1,650 1,650 1,650 1,650175 175 175 175 175 175 1750 0 0 0 0 0 0300 300 300 300 300 300 3004,000 4,000 4,000 4,000 4,000 4,000 4,0001,000 1,000 1,000 1,000 1,000 1,000 1,0001,500 1,500 1,500 1,500 1,500 1,500 1,50080,000 80,000 80,000 80,000 80,000 80,000 80,00067 67 67 67 67 67 6793,692 93,692 93,692 93,692 93,692 93,692 93,692193,053 198,053 198,053 203,053 203,053 208,053 208,053339,477 378,397 422,317 466,727 516,137 566,037 620,937
  • 55. 2 2 2 2 2 2 20 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 08,000 8,000 8,000 8,000 8,000 8,000 8,0002,640 2,640 2,640 2,640 2,640 2,640 2,640350 350 350 350 350 350 3500 0 0 0 0 0 0400 400 400 400 400 400 400100 100 100 100 100 100 100100 100 100 100 100 100 10035 35 35 35 35 35 3511,625 11,625 11,625 11,625 11,625 11,625 11,6257 7 7 7 7 7 76,000 6,000 6,000 6,000 6,000 6,000 6,0004,400 4,400 4,400 4,400 4,400 4,400 4,4000 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03,432 3,432 3,432 3,432 3,432 3,432 3,4321,838 1,838 1,838 1,838 1,838 1,838 1,8382,500 2,500 2,500 2,500 2,500 2,500 2,500350 350 350 350 350 350 350525 525 525 525 525 525 525700 700 700 700 700 700 7001,225 1,225 1,225 1,225 1,225 1,225 1,22524,500 24,500 24,500 24,500 24,500 24,500 24,5009,000 9,000 9,000 9,000 9,000 9,000 9,0000 0 0 0 0 0 0400 400 400 400 400 400 4000 0 0 0 0 0 01,050 1,050 1,050 1,050 1,050 1,050 1,0500 0 0 0 0 0 070 70 70 70 70 70 7055,990 55,990 55,990 55,990 55,990 55,990 55,99055,990 55,990 55,990 55,990 55,990 55,990 55,990 271,863 310,783 354,703 399,113 448,523 498,423 553,3230 0 0 0 0 0 0 271,863 310,783 354,703 399,113 448,523 498,423 553,3230 0 0 0 0 0 0 271,863 310,783 354,703 399,113 448,523 498,423 553,323 271,863 310,783 354,703 399,113 448,523 498,423 553,3231 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0
  • 56. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 01 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0293 293 293 293 293 293 293
  • 57. 9 10 11 12 Year Three55 55 60 60 570810 865 925 98560,390 60,390 65,880 65,880 625,860828,990 889,380 949,770 1,015,650 8,525,970889,380 949,770 1,015,650 1,081,530 9,151,8301 1 1 1 120 0 0 0 08,500 8,500 8,500 8,500 102,0000 0 0 0 02,805 2,805 2,805 2,805 33,660263 263 263 263 3,150300 300 300 300 3,6000 0 0 0 0300 300 300 300 3,60075 75 75 75 900100 100 100 100 1,200300 300 300 300 3,60053 53 53 53 63612,696 12,696 12,696 12,696 152,3463 3 3 3 368 8 8 8 965,000 5,000 5,000 5,000 60,0003,000 3,000 3,000 3,000 36,0000 0 0 0 024,000 24,000 24,000 24,000 288,0000 0 0 0 010,560 10,560 10,560 10,560 126,7200 0 0 0 400788 788 788 788 9,4500 0 0 0 01,800 1,800 1,800 1,800 21,600150 150 150 150 1,8004,500 4,500 4,500 4,500 54,0001,800 1,800 1,800 1,800 21,6000 0 0 0 055,000 55,000 60,000 60,000 570,00068 68 68 68 816106,666 106,666 111,666 111,666 1,190,3866 6 6 6 726 6 6 6 721 1 1 15,000 5,000 5,000 5,000 60,0000 0 0 0 01,650 1,650 1,650 1,650 19,800175 175 175 175 21000 0 0 0 0300 300 300 300 3,6004,000 4,000 4,000 4,000 480001,000 1,000 1,000 1,000 120001,500 1,500 1,500 1,500 18,00080,000 80,000 80,000 80,000 96000067 67 67 67 80493,692 93,692 93,692 93,692 1,124,304213,053 213,053 218,053 218,053 2,467,036676,327 736,717 797,597 863,477 6,684,794
  • 58. 2 2 2 2 240 0 0 0 00 0 0 0 00 0 0 0 08,000 8,000 8,000 8,000 96,0002,640 2,640 2,640 2,640 31,680350 350 350 350 4,2000 0 0 0 0400 400 400 400 4,800100 100 100 100 1200100 100 100 100 120035 35 35 35 42011,625 11,625 11,625 11,625 139,5007 7 7 76,000 6,000 6,000 6,000 72,0004,400 4,400 4,400 4,400 528000 0 0 0 00 0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 03,432 3,432 3,432 3,432 41,1841,838 1,838 1,838 1,838 22,0502,500 2,500 2,500 2,500 30,000350 350 350 350 4,200525 525 525 525 6,300700 700 700 700 8,4001,225 1,225 1,225 1,225 14,70024,500 24,500 24,500 24,500 294,0009,000 9,000 9,000 9,000 1080000 0 0 0 0400 400 400 400 48000 0 0 0 01,050 1,050 1,050 1,050 12,6000 0 0 0 070 70 70 70 84055,990 55,990 55,990 55,990 671,87455,990 55,990 55,990 55,990 671,874 608,713 669,103 729,983 795,863 5,873,420 00 0 0 0 0 0 608,713 669,103 729,983 795,863 5,873,4200 0 0 0 0 608,713 669,103 729,983 795,863 5,873,420 608,713 669,103 729,983 795,863 5,873,4201 1 1 10 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 300
  • 59. 0 0 0 0 4250 0 0 0 4250 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 4250 0 0 0 4250 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 01 1 1 10 0 0 0 1,0000 0 0 0 00 0 0 0 7500 0 0 0 3000 0 0 0 1,5000 0 0 0 00 0 0 0 00 0 0 0 5000 0 0 0 1250 0 0 0 3000 0 0 0 4,4750 0 0 0 4,4750 0 0 0 5,325293 293 293 293 3,516
  • 60. Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLYYEAR Four Increment 1New Sales Contracts (Monthly) 60Number of Contracts 1045Revenues:Sales Contracts Set-up (New) 65,880Contracts Monthly Fees 1,081,530Total Gross Revenue 1,147,410Cost of Goods Sold:IT DEPARTMENT 1 Vice President of Engineering 0 0 Manager of Engineering 9,500 9,500 Staff 0 0Benefits 33% 3,135Rent 263 263Software 300 300Insurance 0 0Telephone + cell 300 300Freight & Postage 100 100Supplies 125 125Travel 400 400Depreciation 53 53 Total Engineering Operating Expenses 14,176SALES DIVISION Number of Sales Staff 4 Number of Sales Contracts 10 Sales Manager 6,000 6,000 Assistant to Sales Manager 4,000 4,000 Administrative Staff 0 0 Sales Staff Full-time Position 9,000 36,000Commissions on Contracts 0% 0Benefits & Payroll Taxes 33% 15,180Recruiting 400 400Rent 263 1,050Insurance 0 0Telephone + cell 300 1,200Supplies 50 200Travel 1,500 6,000Meals 600 2,400Initial Training 0 0Training Incentives 0Depreciation calculation good for 3 xxx 68 68 Total Sales Division Operating Expenses 72,498Number Salesmen 6Number of Contracts 6Marketing 1 Director VP Mrkt 5,000 5,000 Staff 0 0Benefits 33% 1,650Rent 175 175Insurance 0 0Telephone 300 300Freight & Postage 5,000 5,000Supplies 1,000 1,000Travel 1,500 1,500Advertising 90,000 90,000Depreciation 67 67 Total Marketing Operating Expense 104,692Total Cost of Goods Sold 191,366Gross Profit 956,045Operating Expenses:Customer Service 3
  • 61. Director 0 0 Assistant Director 0 0 Team Supervisor 0 0 Staff 5,000 15,000Benefits 33% 4,950Rent 175 525Insurance 0 0Telephone 250 750Postage 75 225Supplies 75 225Depreciation 70 70 Total Customer Serv. Operating Expense 21,745General & Administrative: 9Chief Executive Officer (CEO) 6,000 6,000Office Mgr/Receptionist 5,400 5,400Chief Financial Officer (CFO) 0 0Chief Legal Counsel (CLC) 0 0Accounting Controller 0 0 Assistant Controller 0 0 Accounts Payable 0 0 Accounts Receivable 0 0 Payroll 0 0Human Resources Director 0 0 Office Receptionist 0 0Training Director 0 0 Assistant Director 0 0 Staff 0 0Benefits 33% 3,762Rent 263 2,363Insurance 2,500 2,500Telephone 50 450Freight & Postage 100 900Subscriptions & Licenses 150 1,350Supplies 200 1,800Travel 4,500 40,500Professional Services 12,000 12,000IPO Consultanting 0 0Seminars & Conferences 500 500Training 0 0Miscellaneous expenses 200 1,800Amortization of Goodwill 0 0Depreciation 70 70 Total General Admin. Operating Expenses 79,395Total Operating Expenses 79,395Operating Profit (Loss) 854,905Other Income (Expense) Interest Expense (Income) 0 0Net Income Before Taxes & Depreciation 854,905Income Taxes - State & Federal 0Net Income After Taxes 854,905Total Losses Yr-4 854,905CAPITAL EXPENDITURESIT Capital Expenditures: 1Equipment, Furniture, Computers Server 2,000 0 Desktop 750 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Engineering Capital Purchases 425 Total Engineering Capital Purchases 425
  • 62. Sales Division Capital Expenditures:Equipment, Furniture, Computers Laptop 1,000 0 Desktop 750 0 Printer 300 0 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Sales Division Capital Purchases 425 Total Sales Division Capital Purchases 425Marketing Capital Expenditures:Equipment, Furniture, Computers Desktop 750 0 Multi-Media Projector 1,000 0 Furniture 500 0 Telephone 125 125 Monthly Marketing Capital Purchases 125 Total Marketing Capital Purchases 125Customer Service Capital Expenditures 2Equipment, Furniture, Computers Desktop 750 1,500 Furniture 500 1,000 Telephone 125 250 Monthly Customer Service Capital Expenses 2,750 Total Customer Service Capital Expenses 2,750General Administration Capital Expenses 3Equipment, Furniture, Computers Laptop computer 1,000 3,000 Server 2,000 0 Desktop computer 750 2,250 Small Printer 300 900 Printer 1,500 4,500 Copier 2,000 0 Multi-Media Projector 1,000 0 Furniture 500 1,500 Telephone 125 375 Cell phone 300 900 Monthly G&A Capital Purchases 13,425 Total G&A Capital Purchases 13,425Total Purchases Year Four 17,150Total Deprecitation Year One 328
  • 63. 2 3 4 5 6 7 860 65 65 70 70 75 751105 1170 1235 1305 1375 1450 152565,880 71,370 71,370 76,860 76,860 82,350 82,3501,147,410 1,213,290 1,284,660 1,356,030 1,432,890 1,509,750 1,592,1001,213,290 1,284,660 1,356,030 1,432,890 1,509,750 1,592,100 1,674,4501 1 1 1 1 1 10 0 0 0 0 0 09,500 9,500 9,500 9,500 9,500 9,500 9,5000 0 0 0 0 0 03,135 3,135 3,135 3,135 3,135 3,135 3,135263 263 263 263 263 263 263300 300 300 300 300 300 3000 0 0 0 0 0 0300 300 300 300 300 300 300100 100 100 100 100 100 100125 125 125 125 125 125 125400 400 400 400 400 400 40053 53 53 53 53 53 5314,176 14,176 14,176 14,176 14,176 14,176 14,1764 4 4 4 4 4 410 10 10 10 10 10 106,000 6,000 6,000 6,000 6,000 6,000 6,0004,000 4,000 4,000 4,000 4,000 4,000 4,0000 0 0 0 0 0 036,000 36,000 36,000 36,000 36,000 36,000 36,0000 0 0 0 0 0 015,180 15,180 15,180 15,180 15,180 15,180 15,1800 0 0 0 0 0 01,050 1,050 1,050 1,050 1,050 1,050 1,0500 0 0 0 0 0 01,200 1,200 1,200 1,200 1,200 1,200 1,200200 200 200 200 200 200 2006,000 6,000 6,000 6,000 6,000 6,000 6,0002,400 2,400 2,400 2,400 2,400 2,400 2,4000 0 0 0 0 0 00 0 0 0 0 0 068 68 68 68 68 68 6872,098 72,098 72,098 72,098 72,098 72,098 72,0986 6 6 6 6 6 66 6 6 6 6 6 61 1 1 1 1 1 15,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 01,650 1,650 1,650 1,650 1,650 1,650 1,650175 175 175 175 175 175 1750 0 0 0 0 0 0300 300 300 300 300 300 3005,000 5,000 5,000 5,000 5,000 5,000 5,0001,000 1,000 1,000 1,000 1,000 1,000 1,0001,500 1,500 1,500 1,500 1,500 1,500 1,50090,000 90,000 90,000 90,000 90,000 90,000 90,00067 67 67 67 67 67 67104,692 104,692 104,692 104,692 104,692 104,692 104,692190,966 190,966 190,966 190,966 190,966 190,966 190,9661,022,325 1,093,695 1,165,065 1,241,925 1,318,785 1,401,135 1,483,4853 3 3 3 3 3 3
  • 64. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 015,000 15,000 15,000 15,000 15,000 15,000 15,0004,950 4,950 4,950 4,950 4,950 4,950 4,950525 525 525 525 525 525 5250 0 0 0 0 0 0750 750 750 750 750 750 750225 225 225 225 225 225 225225 225 225 225 225 225 22570 70 70 70 70 70 7021,745 21,745 21,745 21,745 21,745 21,745 21,7459 9 9 9 9 9 96,000 6,000 6,000 6,000 6,000 6,000 6,0005,400 5,400 5,400 5,400 5,400 5,400 5,4000 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03,762 3,762 3,762 3,762 3,762 3,762 3,7622,363 2,363 2,363 2,363 2,363 2,363 2,3632,500 2,500 2,500 2,500 2,500 2,500 2,500450 450 450 450 450 450 450900 900 900 900 900 900 9001,350 1,350 1,350 1,350 1,350 1,350 1,3501,800 1,800 1,800 1,800 1,800 1,800 1,80040,500 40,500 40,500 40,500 40,500 40,500 40,50012,000 12,000 12,000 12,000 12,000 12,000 12,0000 0 0 0 0 0 0500 500 500 500 500 500 5000 0 0 0 0 0 01,800 1,800 1,800 1,800 1,800 1,800 1,8000 0 0 0 0 0 070 70 70 70 70 70 7079,395 79,395 79,395 79,395 79,395 79,395 79,39579,395 79,395 79,395 79,395 79,395 79,395 79,395 921,185 992,555 1,063,925 1,140,785 1,217,645 1,299,995 1,382,3450 0 0 0 0 0 0 921,185 992,555 1,063,925 1,140,785 1,217,645 1,299,995 1,382,3450 0 0 0 0 0 0 921,185 992,555 1,063,925 1,140,785 1,217,645 1,299,995 1,382,345 921,185 992,555 1,063,925 1,140,785 1,217,645 1,299,995 1,382,3451 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0
  • 65. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 02 2 2 2 2 2 20 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03 3 3 3 3 3 30 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0328 328 328 328 328 328 328
  • 66. 9 10 11 12 Year Four80 80 85 85 8701605 1685 1770 185587,840 87,840 93,330 93,330 955,2601,674,450 1,762,290 1,850,130 1,943,460 17,847,9901,762,290 1,850,130 1,943,460 2,036,790 18,803,2501 1 1 1 120 0 0 0 09,500 9,500 9,500 9,500 114,0000 0 0 0 03,135 3,135 3,135 3,135 37,620263 263 263 263 3,150300 300 300 300 3,6000 0 0 0 0300 300 300 300 3,600100 100 100 100 1,200125 125 125 125 1,500400 400 400 400 4,80053 53 53 53 63614,176 14,176 14,176 14,176 170,1064 4 4 4 4810 10 10 106,000 6,000 6,000 6,000 72,0004,000 4,000 4,000 4,000 48,0000 0 0 0 036,000 36,000 36,000 36,000 432,0000 0 0 0 015,180 15,180 15,180 15,180 182,1600 0 0 0 4001,050 1,050 1,050 1,050 12,6000 0 0 0 01,200 1,200 1,200 1,200 14,400200 200 200 200 2,4006,000 6,000 6,000 6,000 72,0002,400 2,400 2,400 2,400 28,8000 0 0 0 00 0 0 0 068 68 68 68 81672,098 72,098 72,098 72,098 865,5766 6 6 6 726 6 6 6 721 1 1 15,000 5,000 5,000 5,000 60,0000 0 0 0 01,650 1,650 1,650 1,650 19,800175 175 175 175 2,1000 0 0 0 0300 300 300 300 3,6005,000 5,000 5,000 5,000 60,0001,000 1,000 1,000 1,000 12,0001,500 1,500 1,500 1,500 18,00090,000 90,000 90,000 90,000 1,080,00067 67 67 67 804104,692 104,692 104,692 104,692 1,256,304190,966 190,966 190,966 190,966 2,291,9861,571,325 1,659,165 1,752,495 1,845,825 16,511,2643 3 3 3 36
  • 67. 0 0 0 0 00 0 0 0 00 0 0 0 015,000 15,000 15,000 15,000 180,0004,950 4,950 4,950 4,950 59,400525 525 525 525 6,3000 0 0 0 0750 750 750 750 9,000225 225 225 225 2,700225 225 225 225 2,70070 70 70 70 84021,745 21,745 21,745 21,745 260,9409 9 9 96,000 6,000 6,000 6,000 72,0005,400 5,400 5,400 5,400 64,8000 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 03,762 3,762 3,762 3,762 45,1442,363 2,363 2,363 2,363 28,3502,500 2,500 2,500 2,500 30,000450 450 450 450 5,400900 900 900 900 10,8001,350 1,350 1,350 1,350 16,2001,800 1,800 1,800 1,800 21,60040,500 40,500 40,500 40,500 486,00012,000 12,000 12,000 12,000 144,0000 0 0 0 0500 500 500 500 6,0000 0 0 0 01,800 1,800 1,800 1,800 21,6000 0 0 0 070 70 70 70 84079,395 79,395 79,395 79,395 952,73479,395 79,395 79,395 79,395 952,734 0 1,470,185 1,558,025 1,651,355 1,744,685 15,297,5900 0 0 0 0 1,470,185 1,558,025 1,651,355 1,744,685 15,297,5900 0 0 0 0 1,470,185 1,558,025 1,651,355 1,744,685 15,297,590 1,470,185 1,558,025 1,651,355 1,744,685 15,297,5901 1 1 10 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 4250 0 0 0 425
  • 68. 0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 4250 0 0 0 4250 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 1250 0 0 0 1252 2 2 20 0 0 0 1,5000 0 0 0 1,0000 0 0 0 2500 0 0 0 2,7500 0 0 0 2,7503 3 3 30 0 0 0 3,0000 0 0 0 00 0 0 0 2,2500 0 0 0 9000 0 0 0 4,5000 0 0 0 00 0 0 0 00 0 0 0 1,5000 0 0 0 3750 0 0 0 9000 0 0 0 13,4250 0 0 0 13,4250 0 0 0 17,150328 328 328 328 3,936
  • 69. Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLYYEAR Five Increment 1New Sales Contracts (Monthly) 85Number of Contracts 1,940Revenues:Sales Contracts Set-up (New) 93,330Contracts Monthly Fees 2,036,790Total Gross Revenue 2,130,120Cost of Goods Sold:IT DEPARTMENT 1 Vice President of Engineering 0 0 Manager of Engineering 10,500 10,500 Staff 0 0Benefits 33% 3,465Rent 263 263Software 300 300Insurance 0 0Telephone + cell 300 300Freight & Postage 125 125Supplies 150 150Travel 500 500Depreciation 53 53 Total Engineering Operating Expenses 15,656SALES DIVISION Number of Sales Staff 6 Number of Sales Contracts 6 Sales Manager 7,000 7,000 Assistant to Sales Manager 5,000 5,000 Administrative Staff 0 0 Sales Staff Full-time Position 10,000 60,000Commissions on Contracts 0% 0Benefits & Payroll Taxes 33% 23,760Recruiting 400 400Rent 263 1,575Insurance 0 0Telephone + cell 300 1,800Supplies 50 300Travel 1,500 9,000Meals 600 3,600Initial Training 0 0Training Incentives 0 0Depreciation calculation good for 3 xxx 68 68 Total Sales Division Operating Expenses 112,503Number Salesmen 6Number of Contracts 6Marketing 1 Director VP Mrkt 5,000 5,000 Staff 0 0Benefits 33% 1,650Rent 175 175Insurance 0 0Telephone 300 300Freight & Postage 6,000 6,000Supplies 1,000 1,000Travel 1,500 1,500Advertising 100,000 100,000Depreciation 67 67 Total Marketing Operating Expense 115,692Total Cost of Goods Sold 243,851Gross Profit 1,886,270Operating Expenses:Customer Service 4
  • 70. Director 0 0 Assistant Director 0 0 Team Supervisor 0 0 Staff 6,000 24,000Benefits 33% 7,920Rent 175 700Insurance 0 0Telephone 300 1,200Postage 100 400Supplies 100 400Depreciation 104 104 Total Customer Service Operating Expenses 34,724General & Administrative: 9Chief Executive Officer (CEO) 6,000 6,000Office Mgr/Receptionist 6,400 6,400Chief Financial Officer (CFO) 0 0Chief Legal Counsel (CLC) 0 0Accounting Controller 0 0 Assistant Controller 0 0 Accounts Payable 0 0 Accounts Receivable 0 0 Payroll 0 0Human Resources Director 0 0 Office Receptionist 0 0Training Director 0 0 Assistant Director 0 0 Staff 0 0Benefits 33% 4,092Rent 263 2,363Insurance 2,500 2,500Telephone 50 450Freight & Postage 125 1,125Subscriptions & Licenses 200 1,800Supplies 250 2,250Travel 5,500 49,500Professional Services 15,000 15,000IPO Consultanting 0 0Seminars & Conferences 600 600Training 0 0Miscellaneous expenses 250 2,250Amortization of Goodwill 0 0Depreciation 70 70 Total General Admin. Operating Expenses 94,400Total Operating Expenses 94,400Operating Profit (Loss) 1,757,146Other Income (Expense) Interest Expense (Income) 0 0Net Income Before Taxes & Depreciation 1,757,146Income Taxes - State & Federal 0Net Income After Taxes 1,757,146Total Losses Yr-5 1,757,146CAPITAL EXPENDITURESIT Capital Expenditures: 1Equipment, Furniture, Computers Server 2,000 0 Desktop 750 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Engineering Capital Purchses 425 Total Engineering Capital Purchases 425
  • 71. Sales Division Capital Expenditures:Equipment, Furniture, Computers Laptop 1,000 0 Desktop 750 0 Printer 300 0 Copier 2,000 0 Multi-Media Projector 1,000 0 Furniture 500 0 Telephone 125 125 Cell Phone 300 300 Monthly Sales Division Capital Purchases 425 Total Sales Division Capital Purchases 425Marketing Capital Expenditures:Equipment, Furniture, Computers Desktop 750 0 Multi-Media Projector 0 0 Furniture 500 0 Telephone 125 125 Monthly Marketing Capital Purchases 125 Total Marketing Capital Purchases 125Customer Service Capital Expenditures 2Equipment, Furniture, Computers Desktop 750 1,500 Furniture 500 1,000 Telephone 125 250 Monthly Customer Service Capital Purchases 2,750 Total Customer Service Capital Purchases 2,750General Administration Capital Expenses 3Equipment, Furniture, Computers Laptop computer 1,000 3,000 Server 0 0 Desktop computer 750 2,250 Small Printer 300 900 Printer 1,500 4,500 Copier 0 0 Multi-Media Projector 0 0 Furniture 500 1,500 Telephone 125 375 Cell phone 300 900 Monthly G&A Capital Purchases 13,425 Total G&A Capital Purchases 13,425Total Purchases Year Five 17,150Total Deprecitation Year One 362
  • 72. 2 3 4 5 6 7 885 90 90 95 95 100 1002,025 2,115 2,205 2,300 2,395 2,495 2,59593,330 98,820 98,820 104,310 104,310 109,800 109,8002,130,120 2,223,450 2,322,270 2,421,090 2,525,400 2,629,710 2,739,5102,223,450 2,322,270 2,421,090 2,525,400 2,629,710 2,739,510 2,849,3101 1 1 1 1 1 10 0 0 0 0 0 010,500 10,500 10,500 10,500 10,500 10,500 10,5000 0 0 0 0 0 03,465 3,465 3,465 3,465 3,465 3,465 3,465263 263 263 263 263 263 263300 300 300 300 300 300 3000 0 0 0 0 0 0300 300 300 300 300 300 300125 125 125 125 125 125 125150 150 150 150 150 150 150500 500 500 500 500 500 50053 53 53 53 53 53 5315,656 15,656 15,656 15,656 15,656 15,656 15,6566 6 6 6 6 6 66 6 6 6 6 6 67,000 7,000 7,000 7,000 7,000 7,000 7,0005,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 060,000 60,000 60,000 60,000 60,000 60,000 60,0000 0 0 0 0 0 023,760 23,760 23,760 23,760 23,760 23,760 23,7600 0 0 0 0 0 01,575 1,575 1,575 1,575 1,575 1,575 1,5750 0 0 0 0 0 01,800 1,800 1,800 1,800 1,800 1,800 1,800300 300 300 300 300 300 3009,000 9,000 9,000 9,000 9,000 9,000 9,0003,600 3,600 3,600 3,600 3,600 3,600 3,6000 0 0 0 0 0 00 0 0 0 0 0 068 68 68 68 68 68 68112,103 112,103 112,103 112,103 112,103 112,103 112,1036 6 6 6 6 6 66 6 6 6 6 6 61 1 1 1 1 1 15,000 5,000 5,000 5,000 5,000 5,000 5,0000 0 0 0 0 0 01,650 1,650 1,650 1,650 1,650 1,650 1,650175 175 175 175 175 175 1750 0 0 0 0 0 0300 300 300 300 300 300 3006,000 6,000 6,000 6,000 6,000 6,000 6,0001,000 1,000 1,000 1,000 1,000 1,000 1,0001,500 1,500 1,500 1,500 1,500 1,500 1,500100,000 100,000 100,000 100,000 100,000 100,000 100,00067 67 67 67 67 67 67115,692 115,692 115,692 115,692 115,692 115,692 115,692243,451 243,451 243,451 243,451 243,451 243,451 243,4511,980,000 2,078,820 2,177,640 2,281,950 2,386,260 2,496,060 2,605,8604 4 4 4 4 4 4
  • 73. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 024,000 24,000 24,000 24,000 24,000 24,000 24,0007,920 7,920 7,920 7,920 7,920 7,920 7,920700 700 700 700 700 700 7000 0 0 0 0 0 01,200 1,200 1,200 1,200 1,200 1,200 1,200400 400 400 400 400 400 400400 400 400 400 400 400 400104 104 104 104 104 104 10434,724 34,724 34,724 34,724 34,724 34,724 34,7249 9 9 9 9 9 96,000 6,000 6,000 6,000 6,000 6,000 6,0006,400 6,400 6,400 6,400 6,400 6,400 6,4000 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 04,092 4,092 4,092 4,092 4,092 4,092 4,0922,363 2,363 2,363 2,363 2,363 2,363 2,3632,500 2,500 2,500 2,500 2,500 2,500 2,500450 450 450 450 450 450 4501,125 1,125 1,125 1,125 1,125 1,125 1,1251,800 1,800 1,800 1,800 1,800 1,800 1,8002,250 2,250 2,250 2,250 2,250 2,250 2,25049,500 49,500 49,500 49,500 49,500 49,500 49,50015,000 15,000 15,000 15,000 15,000 15,000 15,0000 0 0 0 0 0 0600 600 600 600 600 600 6000 0 0 0 0 0 02,250 2,250 2,250 2,250 2,250 2,250 2,2500 0 0 0 0 0 070 70 70 70 70 70 7094,400 94,400 94,400 94,400 94,400 94,400 94,40094,400 94,400 94,400 94,400 94,400 94,400 94,400 1,850,876 1,949,696 2,048,516 2,152,826 2,257,136 2,366,936 2,476,7360 0 0 0 0 0 0 1,850,876 1,949,696 2,048,516 2,152,826 2,257,136 2,366,936 2,476,7360 0 0 0 0 0 0 1,850,876 1,949,696 2,048,516 2,152,826 2,257,136 2,366,936 2,476,736 1,850,876 1,949,696 2,048,516 2,152,826 2,257,136 2,366,936 2,476,7361 1 1 1 1 1 10 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0
  • 74. 0 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 02 2 2 2 2 2 20 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 03 3 3 3 3 3 30 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 00 0 0 0 0 0 0362 362 362 362 362 362 362
  • 75. 9 10 11 12 Year Five105 105 110 110 1,1702,700 2,805 2,915 3,025115,290 115,290 120,780 120,780 1,284,6602,849,310 2,964,600 3,079,890 3,200,670 31,122,8102,964,600 3,079,890 3,200,670 3,321,450 32,407,4701 1 1 1 120 0 0 0 010,500 10,500 10,500 10,500 126,0000 0 0 0 03,465 3,465 3,465 3,465 41,580263 263 263 263 3,150300 300 300 300 3,6000 0 0 0 0300 300 300 300 3,600125 125 125 125 1,500150 150 150 150 1,800500 500 500 500 6,00053 53 53 53 63615,656 15,656 15,656 15,656 187,8666 6 6 6 726 6 6 67,000 7,000 7,000 7,000 84,0005,000 5,000 5,000 5,000 60,0000 0 0 0 060,000 60,000 60,000 60,000 720,0000 0 0 0 023,760 23,760 23,760 23,760 285,1200 0 0 0 4001,575 1,575 1,575 1,575 18,9000 0 0 0 01,800 1,800 1,800 1,800 21,600300 300 300 300 3,6009,000 9,000 9,000 9,000 108,0003,600 3,600 3,600 3,600 43,2000 0 0 0 00 0 0 0 068 68 68 68 816112,103 112,103 112,103 112,103 1,345,6366 6 6 6 726 6 6 6 721 1 1 15,000 5,000 5,000 5,000 60,0000 0 0 0 01,650 1,650 1,650 1,650 19,800175 175 175 175 2,1000 0 0 0 0300 300 300 300 3,6006,000 6,000 6,000 6,000 72,0001,000 1,000 1,000 1,000 12,0001,500 1,500 1,500 1,500 18,000100,000 100,000 100,000 100,000 1,200,00067 67 67 67 804115,692 115,692 115,692 115,692 1,388,304243,451 243,451 243,451 243,451 2,921,8062,721,150 2,836,440 2,957,220 3,078,000 29,485,6644 4 4 4 48
  • 76. 0 0 0 0 00 0 0 0 00 0 0 0 024,000 24,000 24,000 24,000 288,0007,920 7,920 7,920 7,920 95,040700 700 700 700 8,4000 0 0 0 01,200 1,200 1,200 1,200 14,400400 400 400 400 4,800400 400 400 400 4,800104 104 104 104 1,24834,724 34,724 34,724 34,724 416,6889 9 9 96,000 6,000 6,000 6,000 72,0006,400 6,400 6,400 6,400 76,8000 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 2,083 2,0830 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 04,092 4,092 4,092 4,779 49,7912,363 2,363 2,363 2,363 28,3502,500 2,500 2,500 2,500 30,000450 450 450 450 5,4001,125 1,125 1,125 1,125 13,5001,800 1,800 1,800 1,800 21,6002,250 2,250 2,250 2,250 27,00049,500 49,500 49,500 49,500 594,00015,000 15,000 15,000 15,000 180,0000 0 0 0 0600 600 600 600 7,2000 0 0 0 02,250 2,250 2,250 2,250 27,0000 0 0 0 070 70 70 70 84094,400 94,400 94,400 97,170 1,135,56494,400 94,400 94,400 97,170 1,135,564 2,592,026 2,707,316 2,828,096 2,946,106 27,933,4120 0 0 0 0 2,592,026 2,707,316 2,828,096 2,946,106 27,933,4120 0 0 0 0 2,592,026 2,707,316 2,828,096 2,946,106 27,933,412 2,592,026 2,707,316 2,828,096 2,946,106 27,933,4121 1 1 10 0 0 0 00 0 0 0 00 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 4250 0 0 0 425
  • 77. 0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 3000 0 0 0 4250 0 0 0 4250 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 1250 0 0 0 1250 0 0 0 1252 2 2 20 0 0 0 1,5000 0 0 0 1,0000 0 0 0 2500 0 0 0 2,7500 0 0 0 2,7503 3 3 30 0 0 0 3,0000 0 0 0 00 0 0 0 2,2500 0 0 0 9000 0 0 0 4,5000 0 0 0 00 0 0 0 00 0 0 0 1,5000 0 0 0 3750 0 0 0 9000 0 0 0 13,4250 0 0 0 13,4250 0 0 0 17,150362 362 362 362 4,344
  • 78. Detailed Planning AssumptionsThis section provides a detailed explanation of the underlying financial assumptions employed in the developmeof Projections of Income and Cash Flow for Heartbeats Business Plan.Heartbeat LLC Time Period First Second 6-mos. 6-mos.Revenue Assumptions: Single Facility - SaaS a = # of days per month b = # of beds per facility c = factor - based on $30,000 d = cost/month (a) x (b) x (c) = d d a b c d 30 100 .366 1,098 3 year contract = $39,528 5 year contract = $65,880Sign-up Fees SALES: Average Set-up Fee for a new Consumer contract. Client monthly contribution Hours worked per full-time sales person/day Days worked per month for one sales person Hours worked per month for one FT sales person Conversion Rate: Number of contracts converted per mo/FT personRamp-up Rate Percent production first month. Percent production second month. Percent production third month. Percent production fourth month. Percent production fifth month. Percent production sixth month.Drop-out Rate per month (Attrition)Lease Payments for Software/monthRent Expense Cost per squar foot Reguired square footage Total Cost of Rent COST ASSUMPTIONSCost of Goods Sold Assumptions:IT Department Benefits a percent of monthly compensation. Rent per month. (See Rent TAB) Software Insurance monthly premiums.
  • 79. Telephone monthly charges per person times total headcount. Freight & Postage per month. Supplies used each month per person times total headcount. Travel each month per person times total headcount. (on call) Depreciation 60 Mos. Monthly NON-CASH EXPENSESales Division Commissions on Contracts Commissions on VISP Users Benefits & Payroll Taxes Internal recruiting varies based on date of hire times annual base salary Rent per month. (See Rent TAB) Insurance Premium per month per site Telephone cost per month per site Cell Phone Supplies cost per month per site Travel cost per person per month Meals cost, number of salesmen + manager times meals p 3 Initial Training Incentives Depreciation 60 Mos. Monthly NON-CASH EXPENSEMarketing Division Benefits rate applied against the total monthly employee compensation Rent per month. (See Rent TAB) Monthly insurance expense Monthly telephone expense Monthly freight and postage Monthly supplies expense Monthly travel expense Monthly advertising expense to ceiling of Monthly Marketing Expense Depreciaton 60 Mos. Monthly NON-CASH EXPENSECustomer Service Division Ratio of Customer Service Agents to Users 1: 100 Benefits a percent of monthly compensation Rent per month. (See Rent TAB) Insurance monthly premiums Telephone monthly charges plus monthly % increase Postage per contract Supplies used monthly per person times total headcount.(drinks) Depreciation 60 Mos. Monthly NON-CASH EXPENSEGeneral and Administrative Benefits Rent per month. (See Rent TAB) Insurance annual premiums Telephone cost per month Freight & Postage cost per month Subscriptions & Licenses per month Supplies cost per month Travel cost per month Professional Services per year IPO Consultanting Seminars & Conferences Training Miscellaneous expenses Amortization of Goodwill Depreciation 60 Mos. Monthly NON-CASH EXPENSEEquipment and Furniture Purchased for company use (cost per unit). Laptop computer Server Desktop computer Small Printer Laser Small Printer Printer Copier Multi-Media Projector Furniture Telephone for desk
  • 80. Cell phone
  • 81. ssumptions employed in the development First Second Third Year Year Year Multiple Facilities - SaaS a = # of days per month b = # of beds per facility c = factor - based on $30,000 d = cost/month e = percent discount f = discount amount g = cost/month with discount (a) x (b) x (c) = d (d) x (e) = f (d) - (f) = g a b c d e f g 30 100 .366 $1,098 .08 $88 1,010 3 year contract = $36,366 5 year contract = $60,610 Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 $350 $350 $350 $350 $350 $1,098 $1,098 $1,098 $1,098 $1,098 8 8 8 8 8 25 25 25 25 25 200 200 200 200 200 1 1 1 33% 50% 75% 85% 95% 100% 100 1 0.010% 0.150% 0.175% 0.200% 0.300% 0.400% 0.500% 0.600% 0.700% 0.800% 0.900% 1.000% 100 200 300 400 IT Dept Sales Marketing Cust Serv Gen Admin $1.75 $1.75 $1.75 $1.75 $1.75 150 150 100 50 150 Total $263 $263 $175 $88 $263 1,050 Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 1 1 1 1 1 33% 33% 33% 33% 33% $262.50 $262.50 $262.50 $262.50 $262.50 $300.00 $300.00 $300.00 $300.00 $300.00 0 0 0 0 0
  • 82. 200.00 200.00 200.00 200.00 200.00 25 50 75 100 125 $50.00 $75.00 $100.00 $125.00 $150.00 100 200 300 400 500ON-CASH EXPENSE $53.00 $53.00 $53.00 $53.00 $53.00 1 4 6 6 0.0% 0.0% 0.0% 0.0% 0.0% 33% 33% 33% 33% 33% 0.130% 0.140% 0.140% 0.140% 0.140% 263 263 263 263 263 0 0 0 0 0 $100.00 $100.00 $100.00 $100.00 $100.00 $200.00 $200.00 $200.00 $200.00 $200.00 $50.00 $50.00 $50.00 $50.00 $50.00 $1,500.00 $1,500.00 $15,000.00 $1,500.00 $1,500.00 $600.00 $600.00 $600.00 $600.00 $600.00 0 0 0 0 0 125,000 290,000 570,000 870,000 1,170,000ON-CASH EXPENSE $68 $68 $68 $68 $68 1 1 1 1 1 33% 33% 33% 33% 33% $175.00 $175.00 $175.00 $175.00 $175.00 0 0 0 0 0 $300.00 $300.00 $300.00 $300.00 $300.00 2,000 3,000 4,000 5,000 6,000 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,500 $1,500 $1,500 $1,500 $1,500 60,000 70,000 80,000 90,000 100,000ON-CASH EXPENSE $67 $67 $67 $67 $67 2 2 2 4 4 100 100 100 100 100 33% 33% 33% 33% 33% $87.50 $87.50 $87.50 $87.50 $87.50 0 0 0 0 0 $100.00 $150.00 $200.00 $250.00 $300.00 0 25 50 75 100 0 0 0 0 0ON-CASH EXPENSE 0 18 35 70 104 2 5 7 8 33.% 33.% 33.% 33.% 33.% $263 $263 $263 $263 $263 $2,000 $2,500 $2,500 $2,500 $2,500 $50.00 $50.00 $50.00 $50.00 $50.00 $25.00 $50.00 $75.00 $100.00 $125.00 $50.00 $75.00 $100.00 $150.00 $200.00 $100.00 $150.00 $175.00 $200.00 $250.00 $1,500 $2,500 $3,500 $4,500 $5,500 3,000 6,000 9,000 12,000 15,000 0 0 0 0 0 200 300 400 500 600 0 0 0 0 0 $50.0 $100.0 $150.0 $200.0 $250.0 0 0 0 0 0ON-CASH EXPENSE $70 $70 $70 $70 $70 1,000 2,000 750 300 1,500 2,000 1,000 500 125
  • 83. 300