Professional Documents
Culture Documents
from Bplans.com
A sample plan is a great way to get started, but you cant just print
this plan out and turn it into the bank. Youre still going to have to put
in all your own information and do all of your own financial forecasts.
With LivePlan, you can easily use this sample as inspiration and create
your own plan, complete with financial tables and graphs. Youll also
be able to:
Save time with linked financial tables (the formulas are built in,
so you dont have to do the calculations!)
Benefit from tons of help, advice, and resources.
Present your plan with confidence, with automatic charts and
graphs corresponding to your financial data.
Work on your plan anywhere, on any computer.
Cover Page
This sample business plan has been made available to users of Business Plan Pro, business
planning software published by Palo Alto Software, Inc. Names, locations and numbers may have
been changed, and substantial portions of the original plan text may have been omitted to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For product
information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1995-2007 All rights reserved.
Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by
_________________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this document is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
Table of Contents
Table of Contents
Page 2
Page 1
served with the NCR Corporation and Harris Corp. Kenneth worked on a large variety of projects
at these companies and brings a strong skill set to OSS Telecom Technology. James Jackson is
also an Executive Vice President with experience from IBM, Atlas, Mosaics and the Lotus
Development Corporation. Rounding out the management team is Ken Smith with topical
experience from MIDCOM Communications and US Intelio Networks.
OSS Telecom Technology, leveraging their strong management team and their superior product
offerings will reach the Break-even point in year two. After a Net Loss in year one, Net Profit will
become positive at the end of year two, but will leap up in year three. Sales for OSS Telecom
Technology is forecasted to be moderate in year one and see a hefty increase again by the end
of year three.
1.1 Objectives
OSS Telecom Technology's operating model is designed to meet our goals which include:
1.
2.
3.
4.
1.2 Mission
Our mission is to be the provider of high value, high quality, convergent OSS solutions to
telecom operators worldwide. These scalable solutions will have unparalleled support to ensure
flexibility and to meet--and exceed--customer expectations.
1.3 Keys to Success
Strategic Imperatives
In order to achieve its mission, OSS Telecom Technology has made a set of clear and distinctive
strategic choices. These choices have been developed based on two key factors:
These choices translate into key strategic imperatives which OSS Telecom Technology is
pursuing to gain leadership in the OSS market. There are three levels of operators within the
telecom market. Tier 1 are operators with a subscriber base above one million, Tier 2 are
operators with a subscriber base between 100,000 and one million, and Tier 3 operators are
those with less than 100,000 subscribers.
Value focus: OSS Telecom Technology will focus on Tier 3 operators, providing full
featured, scalable, and reliable products and service at competitive prices. The lifecycle
price of OSS Telecom Technology's software products will be 20-40% below Tier 1
competitors such as LHS and Kenan, but will still possess all the features and services
offered by these players. Tier 3 competitors, such as Moscom, while lower on price, will not
be able to compete with the features and service OSS Telecom Technology offers.
Page 2
Wireline and Wireless Product Portfolio: OSS Telecom Technology's product offering will
evolve from Global Systems for Mobile Communications (GSM) to include other wireless,
fixed, and Internet billing solutions. While initial products were GSM-based, OSS Telecom
Technology is already broadening its product lines to include local loop billing and
convergent billing capabilities, which are key customer requirements.
Engineering Center of Excellence: OSS Telecom Technology will continue to develop its
low cost, high quality software development and programming center in Taiwan, which
provides significant cost advantages over U.S. and Europe-based competitors.
Consulting Services: OSS Telecom Technology will combine consulting services with
products to develop strong customer relationships and advance its product offerings. The
provision of consulting services will allow a more customized, relationship-driven approach
to our customers. OSS Telecom Technology will pursue those projects which can be made
into products and marketed to other potential customers. OSS Telecom Technology will
employ strict criteria to determine which consulting services projects it undertakes. Unless
there is an opportunity to "productize" or repeat the solution being developed, the project
will not be pursued.
Sales Channels: A multi-national marketing and sales team will build both direct and
indirect sales channels. In order to capitalize on the opportunities in each geographic region,
OSS Telecom Technology has put into place a network of on-the-ground, experienced, and
incentivized sales and marketing personnel. These teams will build both direct customer
relationships and indirect channels (through systems integrators, switch manufacturers,
etc.). The indirect channel partners will give OSS Telecom Technology critical leverage. OSS
Telecom Technology will allocate resources to building its partnerships with indirect sales
channels. Partners such as Compaq will allow OSS Telecom Technology to gain geographic
reach, credibility, and customers which would not otherwise be possible. Specific partner
support programs will be put into place to ensure cultivation of these partnerships.
Page 3
Chart: Highlights
Page 4
mediation product that interfaces with five different types of telecom switches and collects call
detail records (CDRs) from 1,200 central offices for 4 million subscribers. This was OSS Telecom
Technology's first project, and was the beginning of the success story in which OSS Telecom
Technology focused on telecom Operations Support Systems (OSS) solutions.
Page 5
Past Performance
FY 1998
FY 1999
FY 2000
$0
$0
0.00%
$0
0
$3,051,400
$2,203,300
72.21%
$7,890,400
117
$11,513,000
$8,902,400
77.32%
$13,662,300
58
FY 1998
FY 1999
FY 2000
$0
$0
$0
$0
($4,840,000)
$1,221,000
$1,011,000
($2,608,000)
($16,772,000)
$1,854,000
$1,511,000
($13,407,000)
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
$0
$0
$0
$6,726,000
$917,000
$5,809,000
$8,917,000
$1,694,000
$7,223,000
Total Assets
$0
$3,201,000
($6,184,000)
Accounts Payable
Current Borrowing
Other Current Liabilities (interest free)
Total Current Liabilities
$0
$0
$0
$0
$1,136,000
$0
$0
$1,136,000
$2,115,000
$0
$0
$2,115,000
Long-term Liabilities
Total Liabilities
$0
$0
$7,300,000
$8,436,000
$1,030,000
$3,145,000
Paid-in Capital
Retained Earnings
Earnings
Total Capital
$0
$0
$0
$0
$1,667,000
($6,902,000)
$0
($5,235,000)
$1,667,000
($10,996,000)
$0
($9,329,000)
$0
$3,201,000
($6,184,000)
0
$0
0.00
30
$1,900,000
1.56
28
$9,600,000
5.18
Sales
Gross Margin
Gross Margin %
Operating Expenses
Collection Period (days)
Balance Sheet
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Current Liabilities
Other Inputs
Payment Days
Sales on Credit
Receivables Turnover
Page 6
Page 7
Description of CARIBOU
Subscriber Billing
The basic billing system consists of the following modules:
1.
2.
3.
4.
5.
6.
7.
Traffic Processing
Bill Generation
Accounts & Payment
Systems Administration
Packaging
Customer Care and Administration
Specific Value-Added Features
I. Traffic Processing
1. Pricing: CDRs received through tape or from the mediation system are validated and then
taken up for pricing using the tariff package, tariff plan, rate structure, rate calendar,
discounts structure. There are four types of pricing - FLAT, VOLUME, STEP, and SEGMENTED.
2. Reject Maintenance: CDRs with missing information are listed with reject value codes for
manual processing.
3. Traffic Posting: After pricing, the records are posted to the corresponding subscriber account
that is used during bill generation.
II. Bill Generation
Bill generation can be of three types--ad-hoc billing, warm (hot) billing, and cycle wise billing.
The system can take care of multiple billing cycles and multiple billing groups.
1. Pre-bill processing: This process is mainly used for calculating the recurring amount of each
bill cycle.
2. Final bill generation: This process starts after pre-bill processing and it calculates the total
bill and its corresponding discounts for every subscriber. Other than total bill calculation, it
takes care of VOLUME PRICING, FLAT discount, and VOLUME discount.
3. Bill Posting: Records are posted to their corresponding subscriber's account after bill
generation.
4. Bill Printing: Printing can be distributed over various printers in the network. In addition,
printing can be selective depending on the account and subscriber number.
III. Accounts & Payment
Online Payment: Payment can be done over the counter, which is online.
Off-line Payment: Payment can be collected manually and it can be entered into the system
collectively (in batch).
Payment Adjustment: Adjustments can be made against accounts in case of both online and
off-line payment.
Refund: System is capable of providing refunds to its customers.
Bill Follow-up: In case of late payment, bill follow-up is necessary. The system is capable of
generating reminders in the occurrence of a late payment.
Page 8
One-time Charge Plan: This plan is used for one-time charges only.
Deposit Charge Plan: This plan is used for deposit charges only
Recurring Charge Plan: This plan is used for recurring charges only.
Service Charge Plan: This plan is used for service charge only.
Long Distance (National and International) Charge Plan: This plan is used for any national
and international long distance call charge.
C. Rate Structures: Support for various types of rate codes and corresponding rate details.
D. Rate Calendar:
1. Daily Rate Calendar: A rate calendar may be generated separately for each day of the week.
2. Holiday Rate Calendar: This rate calendar is used for holidays only.
3. Ad hoc Discount Calendar: This rate calendar is used for ad hoc discount.
Page 9
Page 10
The system can provide various services for configuration, control, and management of the
Network Elements including:
1.
2.
3.
4.
5.
Activation of a subscriber.
Deactivation of a subscriber.
Denial of service to a subscriber.
Resumption of service to the subscriber.
Addition of value-added services, like three-party conference and call forwarding, to the
subscriber.
MEDUSA coordinates and controls the actions of the various NEs to which it connects, thus
obviating the need to configure each concerned entity individually.
3.2 Competitive Comparison
Specific Value-Added Features
The OSS Telecom Technology billing system is functionally rich and modular. It supports basic
services and several value-added services. Some of the special features of CARIBOU are:
High Toll Alert: Monitor credit limits and different thresholds and generate action
alarms. This feature can be configured to trigger more often to reduce network operator
exposure.
Warm Billing: Ability to generate bills on demand.
Friends & Families: Qualifying a group of numbers for individual subscribers enabling special
discounts when calling those numbers.
Churn Analysis: Analysis of calling patterns, demographic details, and behavior of usage to
predict and prevent subscriber exodus.
Trend Analysis: Statistical analysis of usage patterns and correlation to demographic
parameters to assist marketing.
Fraud Management: Analysis of customer database and monitoring of online calls to detect
and prevent possible fraud and limit network exposure.
Loyalty Programs: Bonus programs and credit earning schemes enabling customer
retention. Partnership with airlines and other such organizations in exchange of data.
Point of Sales (POS): Sales outlets and dealer/agent/retail outlets to manage sales of
services in a commodity fashion.
3.3 Technology
Today's changing scenario of fierce competition forces telecom operators to offer multiple
services. The use of information technology to effectively manage telecom operations is thus
becoming a key differentiation in the drive to get a share of the market. The role of IT is not
limited to "piece-meal" automation. What an operator looks for is seamless integration of his
information needs and the ability to provide innovative customer services.
At the core of a telecom operator's business is revenue billing for the service(s) that it provides.
Timely and accurate billing are preconditions for a smooth operation. At the same time, an
operator is largely dependent on the billing system to provide the flexibility in marketing plans
that subscribers desire. Customer care is another area which is crucial to operations, and, as a
result, billing solutions available in the market need to be judged on the basis of timeliness,
accuracy, flexibility, and customer care administration.
Page 11
OSS Telecom Technology has a well-defined process of quality assurance, which is followed and
monitored rigidly. The group reports to the CEO and President, directly.
OSS Telecom Technology has initiated the process of ISO 9000 certification for its systems and
procedures. The systems will be certified for our Taiwan operations. All OSS Telecom Technology
engineering is being performed out of its Taiwan development center, therefore OSS Telecom
Technology will initially apply for certification of those operations. With the help of external
consultants, OSS Telecom Technology has completed most of its projected milestones. It is
expected that OSS Telecom Technology's Taiwan operations will achieve ISO 9000 certification
by June, 2001.
3.4 Future Services
IN Pre-Paid/Calling Card Platform
Product Description
The Calling Card/Pre-Paid system shall be broadly categorized into two subsections.
1. Service Management - for call processing
2. Business Management - for system administration, customer care, and value card
management
Call Processing
Some features for calls controlled through this platform are as follows:
Call Setup
Call Tracking
Call Termination
Credit Update
CDR Generation
Call Rating
Some of the functions of the Calling Card platform are mentioned below.
Dealer Management
The system has an optional dealer management module as a part of value card management.
Page 12
Operator Assistance: Subscribers shall directly talk to the operator for any complaints, queries,
and recharging.
Value Card Management
Value
Value
Value
Value
Card
Card
Card
Card
Generation
Inventory
Usage
Expiration
Recharging
DTMF support or through operator assistance
Forbidden Numbers
The administrator shall maintain the forbidden numbers list in the database so that the system
checks these numbers while confirming the call setup. The customer care module will
provide support to add or delete the forbidden numbers.
CDR Viewing
The system administrator shall view the details of the CDR by accessing them from the
database. The customer care module will provide support for this feature.
Credit Usage Reports: The system shall generate credit usage reports for the subscribers using
the CDRs.
System Administration
The system shall have a system administrator to execute the following:
Authentication of users: The system allows the users to access various features by checking
the authentication of the person logged in.
Backups: The system will support backups of data, like CDR and value cards, when the
database becomes significantly large.
Page 13
IN node-based technology
Value for money
Enhanced customer care for pre-paid subscribers
Quick response time
Capacity limited to number of lines in the switch
Page 14
from the user. The user will always to presented with the same abstract view of the SS7
network through the interface.
Features of the SMSC Platform:
Conclusion
OSS Telecom Technology's SMSC proves to be the best in its class because of the following
features:
Reports on a daily, weekly, and monthly basis, on key statistics, help the network operator to
consistently monitor under- or over-utilization of network resources, call pattern distribution,
quality of service, etc.
Page 15
PAN's Features
Three-dimensional graphs
Call-key Statistics Module
Channel Usage Analysis Module
Network Profitability Ratio Analysis Module
Comparative Ratio Analysis Module
Rank of the Network
A map of the network hierarchy
Fault management
ODBC-JDBC Bridge
OMC-Switch Interface
BSS Subsystem Planning Module
Stores network performance for 6 to 12 months
Reduces data storage load on the telecom network's OMCs
Displays multiple graphs for comparisons of various behaviors of network components
Can be integrated with multi-vendor switch and radio equipment
Flexible querying and display facility
Provides indication of revenue earned and revenue lost
Ease of use - minimum or no training required for MIS use
Client-server architecture based on JAVA
Conclusion
PAN rides on new technology to take advantage of and keep ahead of competition. There are
very few similar products in this class. PAN is better than Metrica and similar products for the
following reasons:
Page 16
almost $60 billion worldwide in 2001 before falling off slightly. The slight decrease in spending
is the result of more companies choosing to build, rather than buy, certain components of their
OSS.
Customer Care & Billing Overview
OSS Telecom Technology currently focuses on one aspect of OSS, customer care and billing
(CCB) systems. At its highest level, a CCB system provides a carrier with the means to bill its
customers for service. However, bill generation is but one aspect of a complete CCB application.
The data captured by the billing system provides valuable information to both the carrier and
the customer on how services are used, what additional services are necessary, how services
can be used more efficiently, or even how effective particular promotions or operations have
been. Today's CCB systems collect, collate, manage, and report this valuable information to
management, usually in real time.
CCB systems are also vital in terms of customer service and satisfaction. By having real time
access to customer information, customer service representatives can better respond to
customer needs in a timely and efficient manner. In addition, modern CCB systems can turn the
monthly bill into an invaluable marketing tool; this is important since the customer's bill is the
only regular contact a company has with its customers. As a result, a great deal of attention is
typically place on a company's CCB applications.
4.1 Market Segmentation
Telecommunications Customer Care & Billing Market Segments
To better understand the market for CCB applications and services, it is useful to consider the
market by segments. With respect to OSS Telecom Technology, three main criteria for market
segmentation are particularly important: geographic, technological, and subscriber. Within these
segments, the number of operators will be examined, since it is operators who buy and use CCB
systems.
Geographical Market Segments
The available market for CCB products is not limited to a single country. The market for CCB
applications and services is indeed global. Literally every country on earth has some type of
telecommunications infrastructure in place. However, the degree of teledensity within countries
and the number of competitors within countries varies greatly. Therefore, it is useful to segment
the available CCB market into global regions.
OSS Telecom Technology has identified five individual regions: Europe, North America, Latin
America, Africa, and Asia. Together, these regions account for the entire world, and OSS
Telecom Technology's potential customers.
Technological Market Segments
Another useful way to look at the overall market is through technology. In this case, the total
market was segmented based on whether the operator is a wireless service provider, a wireline
service provider, or a provider of both. The number of wireless operators is greater than that of
wireline operators. This is to be expected given that in many developing countries wireless is
the most cost-effective type of infrastructure. In addition, competition has been active in the
wireless market longer than it has been in the wireline market.
Page 17
Market Analysis
Potential Customers
Growth
8%
6%
0%
6.40%
2000
2001
2002
2003
2004
481
2,011
0
2,492
519
2,132
0
2,651
561
2,260
0
2,821
606
2,396
0
3,002
654
2,540
0
3,194
CAGR
7.98%
6.01%
0.00%
6.40%
Page 18
Page 19
OSS Telecom Technology's first installation base consists primarily of GSM operators in the
range of 25,000 subscribers and under. Through a stepped strategy, OSS Telecom Technology is
moving in three directions:
1. Using this install base to move up to the next band of subscribers within the GSM market,
2. Leveraging GSM wireless experience to penetrate other wireless types in the same
subscriber bands, and
3. Working with GSM operators to provide convergent services such as cable, Internet, and
wireline, and therefore gaining experience in these disciplines.
This strategy currently puts OSS Telecom Technology in the Tier 3 (less than 100,000
subscribers) market, with each step carefully planned to be sure we do not overreach. It is key
to this strategy to maintain all customers as long-term partners and referenceable sites. We
want to under-commit and over-deliver in each step of this strategy.
By repeating this strategy, OSS Telecom Technology, over a five-year period, will offer a wide
variety of convergent solutions to Tier 3 and then Tier 2 (100,000 to one million subscribers)
telecom operators.
4.2.1 Market Needs
The outlook for the future appears positive. Telecom markets will continue to deregulate and
the number of operators will continue to grow to 5,500 in 2004, representing an additional
1,700 when compared to 1998.
With the increase in operators, the demand for OSS has also increased. OSS are the systems
on which the telecom operator's business runs. At the core of OSS is billing for telecom
services, which is provided by Customer Care and Billing Systems (CCB). CCB systems enable
accurate, timely, flexible, feature-rich billing of services. The additional competition in the
marketplace has made OSS and CCB systems, in particular, a key source of competitive
advantage for many players. CCB systems have become increasingly sophisticated,
incorporating features such as hot-billing (where users receive billing information on demand),
Internet billing (billing data disseminated over the Internet), multi-service billing, loyalty
programs, and friends and family type services.
4.2.2 Geographic Market
Geographic Market
The Stepped Target Market Strategy has been used to develop geographic markets by first
developing the geographic market closest to home and expanding as one develops experience.
With a large center of excellence in Asia, this was the first market to utilize. Asia and Europe
are predominately GSM. As a result, moving from Asia to Europe makes perfect sense. Latin
America is expanding the installed base of GSM systems. Therefore, OSS Telecom Technology
has made its first step in Latin America and will move forward from there. In addition to Asia,
the U.S. and Europe were early targets for consulting services because much of the technology
and new solutions are developed in these regions.
OSS Telecom Technology's target market is focused on providing OSS solutions to both Tier 3
and Tier 2 operator worldwide. The priority of issues which drive the purchase decision for Tier
3 operators is slightly different than for Tier 1 operators. Understanding these priorities is key
to developing the OSS Telecom Technology value proposition within its target market. A list of
Page 20
drivers is given below to compare Tier 3 priorities against Tier 1 priorities as part of the
selection criteria for selecting a vendor. These priorities are important to consider when
differentiating OSS Telecom Technology from Tier 1 CCB vendors.
OSS Telecom Technology's position relative to these drivers:
Price: OSS Telecom Technology will maintain a price that is 20% less than Tier 1 market
vendors for licenses, and 40% less for services. The service price is significant because it is
often 50% or more of the purchase amount for many CCB vendors.
Features: Within the given product module, OSS Telecom Technology will offer features
that meet or exceed Tier 1 vendors. OSS Telecom Technology will also maintain a robust
product road map that is discussed and approved by vendors in a user group format.
Service offering: While service offerings to Tier 3 operators from other CCB vendors are
either shrinking or are too expensive, OSS Telecom Technology will offer a complete
package of services at affordable prices.
Product flexibility: OSS Telecom Technology will strive to maintain a lead in the ability of
the operator to easily add schemes and re-configure the system. In addition, OSS Telecom
Technology will maintain an open environment.
Scalability: OSS Telecom Technology will continue to engineer scalability into its
product. This will entail commitment to multi-rating engines and porting to more robust
operating systems like UNIX.
Vendor experience: OSS Telecom Technology will follow a stepped strategy to be sure we
under-commit and over-deliver to our customers.
This positioning strategy differentiates OSS Telecom Technology from Tier 1 CCB vendors. This
leaves a number of other CCB vendors which are targeting Tier 3 vendors. The approach of
these vendors is to lead with price and minimize service functionality. OSS Telecom Technology
believes that most Tier 3 operators desire a full service vendor or a partnership at an affordable
price. OSS Telecom Technology intends to be that vendor
4.3 Service Business Analysis
The economics of the telecommunication, Internet, and cable markets support thousands of
companies. These companies include direct service providers, hardware suppliers, software
suppliers, consultants, and numerous other supporting organizations. However, for the purposes
of this report, it is useful to focus only on the companies that provide CCB applications and
services.This industry segment is the main focus of OSS Telecom Technology.
4.3.1 Distributing a Service
Channels
Products will be sold through direct and indirect channels. The mix is split evenly between the
two. Indirect channels include:
System Integrators
Computer Suppliers
Switch Vendors
Multi-Tier Operators
Page 21
OSS Telecom Technology is currently developing relationships with indirect channels including:
Vertical Matrix
Compaq
GemPlus
CMG
Harris
Keppel
Siemens
IBM
Bellcore
Unysis
Quota Assumptions
The following are quota assumptions for Direct and Indirect Channels per salesperson. As OSS
Telecom Technology develops more experience and presence in marketing, our efficiency in
sales will increase.
Lead Development
One of the key responsibilities of marketing is lead generation. The following methods are used
for lead generation:
Page 22
Rate (CAGR) of 30% from June, 1997 to June, 1998 and 28% from December, 1995 to June,
1998.
4.3.3 Business Participants
With the increasing demand for OSS and CCB systems, many OSS/CCB software providers have
entered the market.It is estimated that there are over 50 vendors for billing and customer care
systems worldwide. There is an increasing move by computer and switch vendors, system
integrators, and telecom operators (e.g. IBM, Siemens, EDS, Deutsche Telekom) to develop inhouse billing and OSS solutions for customers. They are formidable competitors with deep
pockets, large existing customer bases, and significant influence on customer decision-making.
In addition, the majority of players (both large and small) are extending product service
portfolios to provide all services, i.e. Internet, mobile, cable, fixed, and convergent services.
OSS Telecom Technology will compete in this market by providing high-value products and
services at competitive prices.
5.0 Strategy and Implementation Summary
OSS Telecom Technology developed a marketing strategy to ensure long-term growth and
success in the OSS marketplace. This strategy continues to be refined and improved and
initially includes:
Page 23
For a comprehensive definition of the model for customer excellence, OSS Telecom Technology's
plan includes:
Page 24
Page 25
Sales Forecast
FY 2001
FY 2002
FY 2003
$13,432,825
$3,715,905
$17,148,730
$19,857,900
$7,136,300
$26,994,200
$30,434,900
$10,317,800
$40,752,700
FY 2001
$1,679,105
$464,488
$2,143,593
FY 2002
$2,482,238
$892,038
$3,374,276
FY 2003
$3,804,363
$1,289,725
$5,094,088
Sales
Page 26
Page 27
5.4 Milestones
One of the benefits of having a large engineering team is the ability to develop solutions for our
customers that are comprehensive and extend our target markets stepwise into additional
service operators. In this sense, we will engage our customers in user groups and develop a
comprehensive product road map. Half of the product road map will contain items directly
requested by our customers. The remainder of the product road map will be based on strategic
market analysis.
OSS Telecom Technology has initiated the process of ISO 9000 certification for its systems and
procedures. The systems will be certified for our Taiwan operations. All OSS Telecom Technology
engineering is being performed out of its Taiwan development center, therefore OSS Telecom
Technology will initially apply for certification of those operations. OSS Telecom Technology has
completed most milestones. It is expected that OSS Telecom Technology's Taiwan operations
will achieve ISO 9000 certification by June, 2001.
Chart: Milestones
Page 28
Table: Milestones
Milestones
Milestone
CCB (CARIBOU & MEDUSA) Convergent Billing
CCB (CARIBOU & MEDUSA) Tier 2 Operators
CCB (CARIBOU & MEDUSA) Multi-Service One Number Billing
Pre-Paid IN / Calling Card - INNode APIs
Pre-Paid IN / Calling Card - ISO
9000
Pre-Paid IN / Calling Card Convergent Billing
Pre-Paid IN / Calling Card - Tier 2
Operators
Totals
Start Date
4/1/2000
End Date
3/31/2001
Budget
$875,000
Manager
K. Jones
4/1/2001
3/31/2002
$810,000
K. Jones
4/1/2002
3/31/2003
$795,000
K. Jones
4/1/2000
3/31/2001
$720,000
K. Jones
4/1/2000
3/31/2001
$1,235,000
K. Jones
4/1/2001
3/31/2002
$680,000
K. Jones
4/1/2002
3/31/2003
$745,000
K. Jones
Department
Product
Development
Product
Development
Product
Development
Product
Development
Product
Development
Product
Development
Product
Development
$5,860,000
Page 29
Personnel Plan
FY 2001
FY 2002
FY 2003
$406,800
$306,000
$0
$712,800
$447,500
$336,600
$0
$784,100
$492,300
$370,300
$0
$862,600
$480,000
$1,710,000
$2,940,000
$456,000
$5,586,000
$528,000
$2,430,000
$3,840,000
$501,600
$7,299,600
$580,800
$3,330,000
$5,280,000
$551,760
$9,742,560
$538,800
$693,600
$346,800
$802,800
$2,382,000
$592,700
$763,000
$381,500
$883,100
$2,620,300
$652,000
$839,300
$419,700
$971,400
$2,882,400
$428,400
$1,002,000
$0
$1,430,400
$471,300
$1,102,200
$0
$1,573,500
$518,400
$1,212,500
$0
$1,730,900
548
798
1011
$10,111,200
$12,277,500
$15,218,460
Production Personnel
Technical Services Management
Technical Services Personnel
Other
Subtotal
Sales and Marketing Personnel
Sales Management
Account Executives
Marketing Personnel
Marketing Management
Subtotal
General and Administrative Personnel
Administration
Human Resources & Training Personnel
Financial Management
Finance & Accounting Personnel
Subtotal
Other Personnel
Product Development Management
Product Development Personnel
Other
Subtotal
Total People
Total Payroll
Page 30
Balance Sheet
There are two balance sheets presented which accompany the two above mentioned sources
and uses of funds statements.
Related to the scenario of no cash infusion, a negative impact on the balance sheet creates
a company that cannot survive under the current aggressive growth plan.
The balance sheet related to the projection of a $20 million private placement occurring in
the first quarter of Fiscal Year (FY) 2001. This represents a company able to meet
projections based upon its planned growth targets.
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
FY 2001
FY 2002
FY 2003
1
10.00%
10.00%
25.00%
0
2
10.00%
10.00%
25.00%
0
3
10.00%
10.00%
25.00%
0
Page 31
Chart: Benchmarks
Page 32
Break-even Analysis
Monthly Revenue Break-even
$1,336,343
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
13%
$1,169,300
Page 33
License Sales
Services
License revenues are classified as new license sales and upgrade license sales. These are
further broken down between current Customer Care and Billing (CCB) solutions and planned
new products of Prepaid IN and Short Message Service.
Cost of Goods Sold (COGS) consists primarily of salaries and related labor loadings associated
with installation, customization, and product support activities. It also includes third party costs
associated with system integrators and, to a lesser extent, costs related to providing software
maintenance and end-user training to customers. COGS are expected to be a decreasing
percentage of revenues in FY 2000 through FY 2003 as the number of subscribers per license
sale grows and there is a corresponding decrease in the cost per subscriber.
Gross margin is projected to stay high from FY 1999 onward and grow in FY 2003 as the
company attains economy of scale. The compound annual growth rate for gross margin in FY
2004 will outpace revenue growth.
Other Income and Expense are associated with debt service, amortization of excess acquisition
costs and interest income.
Page 34
Page 35
Page 36
FY 2002
FY 2003
Sales
Direct Cost of Sales
Production Payroll
Other
Total Cost of Sales
$17,148,730
$2,143,593
$712,800
$0
$2,856,393
$26,994,200
$3,374,276
$784,100
$0
$4,158,376
$40,752,700
$5,094,088
$862,600
$0
$5,956,688
Gross Margin
Gross Margin %
$14,292,337
83.34%
$22,835,824
84.60%
$34,796,012
85.38%
$5,586,000
$946,800
$3,060,000
$9,592,800
55.94%
$7,299,600
$1,098,000
$3,186,000
$11,583,600
42.91%
$9,742,560
$1,185,000
$3,297,000
$14,224,560
34.90%
$2,382,000
$0
$26,400
$54,000
$276,000
$158,400
$27,600
$0
$2,924,400
17.05%
$2,620,300
$0
$27,500
$59,000
$316,000
$159,700
$28,400
$0
$3,210,900
11.89%
$2,882,400
$0
$28,700
$64,000
$398,000
$164,300
$29,600
$0
$3,567,000
8.75%
$1,430,400
$84,000
$1,514,400
8.83%
$1,573,500
$78,000
$1,651,500
6.12%
$1,730,900
$69,000
$1,799,900
4.42%
$14,031,600
$16,446,000
$19,591,460
$260,737
$287,137
$97,584
$40,788
$6,389,824
$6,417,324
$88,000
$1,575,456
$15,204,552
$15,233,252
$78,000
$3,781,638
Net Profit
Net Profit/Sales
$122,365
0.71%
$4,726,368
17.51%
$11,344,914
27.84%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Travel
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Depreciation
Leased Equipment
Utilities
Payroll Taxes
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Contract/Consultants
Total Other Expenses
Other %
Total Operating Expenses
Page 37
Chart: Cash
Page 38
FY 2002
FY 2003
$4,287,183
$12,538,878
$16,826,060
$6,748,550
$18,995,975
$25,744,525
$10,188,175
$28,818,173
$39,006,348
$0
$0
$0
$0
$0
$0
$20,000,000
$36,826,060
$0
$0
$0
$0
$0
$0
$0
$25,744,525
$0
$0
$0
$0
$0
$0
$0
$39,006,348
FY 2001
FY 2002
FY 2003
$10,111,200
$8,432,054
$18,543,254
$12,277,500
$9,715,680
$21,993,180
$15,218,460
$13,815,602
$29,034,062
$0
$0
$0
$100,000
$0
$0
$0
$18,643,254
$0
$0
$0
$100,000
$0
$0
$0
$22,093,180
$0
$0
$0
$100,000
$0
$0
$0
$29,134,062
$18,182,806
$1,410,806
$3,651,345
$5,062,151
$9,872,287
$14,934,438
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Page 39
FY 2002
FY 2003
$1,410,806
$2,176,670
$1,511,000
$5,098,476
$5,062,151
$3,426,345
$1,511,000
$9,999,496
$14,934,438
$5,172,696
$1,511,000
$21,618,134
$8,917,000
$1,720,400
$7,196,600
$12,295,076
$8,917,000
$1,747,900
$7,169,100
$17,168,596
$8,917,000
$1,776,600
$7,140,400
$28,758,534
FY 2001
FY 2002
FY 2003
$571,711
$0
$0
$571,711
$818,863
$0
$0
$818,863
$1,163,887
$0
$0
$1,163,887
$930,000
$1,501,711
$830,000
$1,648,863
$730,000
$1,893,887
$21,667,000
($10,996,000)
$122,365
$10,793,365
$12,295,076
$21,667,000
($10,873,635)
$4,726,368
$15,519,733
$17,168,596
$21,667,000
($6,147,267)
$11,344,914
$26,864,647
$28,758,534
$10,793,365
$15,519,733
$26,864,647
Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 40
Table: Ratios
Ratio Analysis
FY 2001
FY 2002
FY 2003
Industry Profile
48.95%
57.41%
50.97%
5.92%
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
17.70%
12.29%
41.47%
58.53%
100.00%
19.96%
8.80%
58.24%
41.76%
100.00%
17.99%
5.25%
75.17%
24.83%
100.00%
18.27%
41.72%
63.98%
36.02%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
4.65%
7.56%
12.21%
87.79%
4.77%
4.83%
9.60%
90.40%
4.05%
2.54%
6.59%
93.41%
26.17%
25.88%
52.05%
47.95%
100.00%
83.34%
84.55%
5.11%
1.52%
100.00%
84.60%
66.91%
3.64%
23.67%
100.00%
85.38%
56.20%
2.50%
37.31%
100.00%
54.99%
34.50%
1.31%
2.80%
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
8.92
8.92
12.21%
1.51%
1.33%
12.21
12.21
9.60%
40.61%
36.71%
18.57
18.57
6.59%
56.31%
52.60%
1.89
1.53
63.38%
3.49%
9.54%
Additional Ratios
FY 2001
FY 2002
FY 2003
0.71%
1.13%
17.51%
30.45%
27.84%
42.23%
n.a
n.a
5.91
59
12.05
36
1.39
5.91
51
12.17
25
1.57
5.91
51
12.17
26
1.42
n.a
n.a
n.a
n.a
n.a
0.14
0.38
0.11
0.50
0.07
0.61
n.a
n.a
$4,526,765
2.67
$9,180,633
72.61
$20,454,247
194.93
n.a
n.a
0.72
5%
5.11
1.59
0.00
0.64
5%
8.03
1.74
0.00
0.71
4%
14.13
1.52
0.00
n.a
n.a
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 41
Appendix
Table: Personnel
Personnel Plan
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$33,900
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$25,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
Production Personnel
Other
Subtotal
Sales and Marketing Personnel
Sales Management
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
Account Executives
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
$142,500
Marketing Personnel
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$245,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
Administration
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$44,900
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
$57,800
Financial Management
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$28,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$66,900
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$35,700
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$83,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
397
411
425
439
453
467
481
495
509
523
537
548
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
Marketing Management
Subtotal
General and Administrative Personnel
Subtotal
Other Personnel
Other
Subtotal
Total People
Total Payroll
Page 1
Appendix
Table: General Assumptions
General Assumptions
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
10
11
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
Plan Month
Other
Mar
Page 2
Appendix
Table: Profit and Loss
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$1,378,850
$1,387,850
$1,396,740
$1,405,790
$1,414,910
$1,424,080
$1,433,310
$1,442,620
$1,451,965
$1,461,360
$1,470,855
$1,480,400
$172,357
$173,481
$174,593
$175,724
$176,863
$178,010
$179,164
$180,328
$181,496
$182,670
$183,857
$185,050
Production Payroll
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$59,400
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$231,757
$232,881
$233,993
$235,124
$236,263
$237,410
$238,564
$239,728
$240,896
$242,070
$243,257
$244,450
$1,147,093
$1,154,969
$1,162,747
$1,170,666
$1,178,647
$1,186,670
$1,194,746
$1,202,892
$1,211,069
$1,219,290
$1,227,598
$1,235,950
83.19%
83.22%
83.25%
83.27%
83.30%
83.33%
83.36%
83.38%
83.41%
83.44%
83.46%
83.49%
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$465,500
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
$78,900
Travel
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$255,000
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
$799,400
57.98%
57.60%
57.23%
56.86%
56.50%
56.13%
55.77%
55.41%
55.06%
54.70%
54.35%
54.00%
$198,500
Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$198,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
Rent
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$23,000
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$13,200
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
$2,300
$0
$243,700
17.67%
17.56%
17.45%
17.34%
17.22%
17.11%
17.00%
16.89%
16.78%
16.68%
16.57%
16.46%
$119,200
Depreciation
Leased Equipment
Utilities
Payroll Taxes
Total General and Administrative
Expenses
General and Administrative %
15%
15%
Other Expenses:
Other Payroll
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
$119,200
Contract/Consultants
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$7,000
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
$126,200
Page 3
Appendix
Other %
9.15%
9.09%
9.04%
8.98%
8.92%
8.86%
8.80%
8.75%
8.69%
8.64%
8.58%
8.52%
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
$1,169,300
($22,207)
($14,331)
($6,553)
$1,366
$9,347
$17,370
$25,446
$33,592
$41,769
$49,990
$58,298
$66,650
EBITDA
($20,007)
($12,131)
($4,353)
$3,566
$11,547
$19,570
$27,646
$35,792
$43,969
$52,190
$60,498
$68,850
$8,514
$8,444
$8,375
$8,306
$8,236
$8,167
$8,097
$8,028
$7,958
$7,889
$7,819
$7,750
($7,680)
($5,694)
($3,732)
($1,735)
$278
$2,301
$4,337
$6,391
$8,453
$10,525
$12,620
$14,725
($23,041)
($17,082)
($11,196)
($5,205)
$833
$6,902
$13,012
$19,173
$25,358
$31,576
$37,859
$44,175
-1.67%
-1.23%
-0.80%
-0.37%
0.06%
0.48%
0.91%
1.33%
1.75%
2.16%
2.57%
2.98%
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Page 4
Appendix
Table: Cash Flow
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Cash Sales
$344,713
$346,963
$349,185
$351,448
$353,728
$356,020
$358,328
$360,655
$362,991
$365,340
$367,714
$370,100
$927,000
$961,471
$1,034,363
$1,041,110
$1,047,781
$1,054,571
$1,061,412
$1,068,291
$1,075,215
$1,082,199
$1,089,209
$1,096,257
$1,271,713
$1,308,434
$1,383,548
$1,392,557
$1,401,509
$1,410,591
$1,419,739
$1,428,946
$1,438,207
$1,447,539
$1,456,922
$1,466,357
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$20,000,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$21,271,713
$1,308,434
$1,383,548
$1,392,557
$1,401,509
$1,410,591
$1,419,739
$1,428,946
$1,438,207
$1,447,539
$1,456,922
$1,466,357
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$842,600
Cash Received
Cash from Operations
Expenditures
0.00%
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
$842,600
Bill Payments
$2,133,570
$557,192
$560,232
$563,238
$566,297
$569,380
$572,482
$575,603
$578,752
$581,913
$585,091
$588,304
$2,976,170
$1,399,792
$1,402,832
$1,405,838
$1,408,897
$1,411,980
$1,415,082
$1,418,203
$1,421,352
$1,424,513
$1,427,691
$1,430,904
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,337
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,984,503
$1,408,125
$1,411,165
$1,414,171
$1,417,230
$1,420,313
$1,423,415
$1,426,536
$1,429,685
$1,432,846
$1,436,024
$1,439,241
$18,287,210
($99,691)
($27,617)
($21,614)
($15,722)
($9,723)
($3,675)
$2,409
$8,521
$14,693
$20,898
$27,117
Page 5
Appendix
Cash Balance
$1,515,210
$1,415,519
$1,387,901
$1,366,288
$1,350,566
$1,340,843
$1,337,168
$1,339,577
$1,348,099
$1,362,791
$1,383,689
$1,410,806
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
($16,772,000)
$1,854,000
$1,511,000
($13,407,000)
$1,515,210
$1,961,138
$1,511,000
$4,987,347
$1,415,519
$2,040,554
$1,511,000
$4,967,072
$1,387,901
$2,053,746
$1,511,000
$4,952,648
$1,366,288
$2,066,979
$1,511,000
$4,944,267
$1,350,566
$2,080,380
$1,511,000
$4,941,946
$1,340,843
$2,093,870
$1,511,000
$4,945,713
$1,337,168
$2,107,441
$1,511,000
$4,955,608
$1,339,577
$2,121,115
$1,511,000
$4,971,692
$1,348,099
$2,134,873
$1,511,000
$4,993,972
$1,362,791
$2,148,695
$1,511,000
$5,022,486
$1,383,689
$2,162,627
$1,511,000
$5,057,317
$1,410,806
$2,176,670
$1,511,000
$5,098,476
$8,917,000
$1,694,000
$7,223,000
($6,184,000)
$8,917,000
$1,696,200
$7,220,800
$12,208,147
$8,917,000
$1,698,400
$7,218,600
$12,185,672
$8,917,000
$1,700,600
$7,216,400
$12,169,048
$8,917,000
$1,702,800
$7,214,200
$12,158,467
$8,917,000
$1,705,000
$7,212,000
$12,153,946
$8,917,000
$1,707,200
$7,209,800
$12,155,513
$8,917,000
$1,709,400
$7,207,600
$12,163,208
$8,917,000
$1,711,600
$7,205,400
$12,177,092
$8,917,000
$1,713,800
$7,203,200
$12,197,172
$8,917,000
$1,716,000
$7,201,000
$12,223,486
$8,917,000
$1,718,200
$7,198,800
$12,256,117
$8,917,000
$1,720,400
$7,196,600
$12,295,076
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Starting Balances
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$2,115,000
$0
$0
$2,115,000
$538,521
$0
$0
$538,521
$541,461
$0
$0
$541,461
$544,365
$0
$0
$544,365
$547,322
$0
$0
$547,322
$550,301
$0
$0
$550,301
$553,298
$0
$0
$553,298
$556,315
$0
$0
$556,315
$559,359
$0
$0
$559,359
$562,413
$0
$0
$562,413
$565,485
$0
$0
$565,485
$568,590
$0
$0
$568,590
$571,711
$0
$0
$571,711
Long-term Liabilities
Total Liabilities
$1,030,000
$3,145,000
$1,021,667
$1,560,188
$1,013,334
$1,554,795
$1,005,001
$1,549,366
$996,668
$1,543,990
$988,335
$1,538,636
$980,002
$1,533,300
$971,669
$1,527,984
$963,336
$1,522,695
$955,003
$1,517,416
$946,670
$1,512,155
$938,337
$1,506,927
$930,000
$1,501,711
$1,667,000
($10,996,000)
$0
($9,329,000)
($6,184,000)
$21,667,000
($10,996,000)
($23,041)
$10,647,959
$12,208,147
$21,667,000
($10,996,000)
($40,122)
$10,630,878
$12,185,672
$21,667,000
($10,996,000)
($51,318)
$10,619,682
$12,169,048
$21,667,000
($10,996,000)
($56,523)
$10,614,477
$12,158,467
$21,667,000
($10,996,000)
($55,690)
$10,615,310
$12,153,946
$21,667,000
($10,996,000)
($48,787)
$10,622,213
$12,155,513
$21,667,000
($10,996,000)
($35,776)
$10,635,224
$12,163,208
$21,667,000
($10,996,000)
($16,603)
$10,654,397
$12,177,092
$21,667,000
($10,996,000)
$8,755
$10,679,755
$12,197,172
$21,667,000
($10,996,000)
$40,331
$10,711,331
$12,223,486
$21,667,000
($10,996,000)
$78,190
$10,749,190
$12,256,117
$21,667,000
($10,996,000)
$122,365
$10,793,365
$12,295,076
($9,329,000)
$10,647,959
$10,630,878
$10,619,682
$10,614,477
$10,615,310
$10,622,213
$10,635,224
$10,654,397
$10,679,755
$10,711,331
$10,749,190
$10,793,365
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 6
Appendix
Table: Sales Forecast
Sales Forecast
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$1,078,940
$299,910
$1,378,850
$1,086,105
$301,745
$1,387,850
$1,093,350
$303,390
$1,396,740
$1,100,645
$305,145
$1,405,790
$1,107,995
$306,915
$1,414,910
$1,115,385
$308,695
$1,424,080
$1,122,830
$310,480
$1,433,310
$1,130,325
$312,295
$1,442,620
$1,137,870
$314,095
$1,451,965
$1,145,465
$315,895
$1,461,360
$1,153,110
$317,745
$1,470,855
$1,160,805
$319,595
$1,480,400
Sales
CCB (CARIBOU & MEDUSA combined)
Pre-Paid IN
Total Sales
Direct Cost of Sales
CCB (CARIBOU & MEDUSA combined)
Pre-Paid IN
Subtotal Direct Cost of Sales
0%
0%
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$134,868
$135,763
$136,669
$137,581
$138,499
$139,423
$140,354
$141,291
$142,234
$143,183
$144,139
$145,101
$37,489
$37,718
$37,924
$38,143
$38,364
$38,587
$38,810
$39,037
$39,262
$39,487
$39,718
$39,949
$172,357
$173,481
$174,593
$175,724
$176,863
$178,010
$179,164
$180,328
$181,496
$182,670
$183,857
$185,050
Page 7