KnaelHaed ASPware, Inc.
Appendix
| Sales Forecast | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Unit Sales | |||||||||||||
| Paid Membership | 0% | 800 | 1,000 | 1,500 | 2,200 | 2,700 | 3,000 | 3,500 | 3,800 | 4,200 | 4,700 | 5,000 | 5,000 |
| Customized Model | 0% | 25 | 35 | 45 | 55 | 65 | 75 | 85 | 95 | 105 | 105 | 214 | 225 |
| Advertisement | 0% | 2,000 | 2,800 | 3,500 | 4,200 | 4,600 | 5,000 | 5,500 | 6,300 | 7,000 | 7,800 | 8,600 | 10,000 |
| Total Unit Sales | 2,825 | 3,835 | 5,045 | 6,455 | 7,365 | 8,075 | 9,085 | 10,195 | 11,305 | 12,605 | 13,814 | 15,225 | |
| Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Paid Membership | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | |
| Customized Model | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |
| Advertisement | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | $1.32 | |
| Sales | |||||||||||||
| Paid Membership | $40,000 | $50,000 | $75,000 | $110,000 | $135,000 | $150,000 | $175,000 | $190,000 | $210,000 | $235,000 | $250,000 | $250,000 | |
| Customized Model | $25,000 | $35,000 | $45,000 | $55,000 | $65,000 | $75,000 | $85,000 | $95,000 | $105,000 | $105,000 | $214,000 | $225,000 | |
| Advertisement | $2,640 | $3,696 | $4,620 | $5,544 | $6,072 | $6,600 | $7,260 | $8,316 | $9,240 | $10,296 | $11,352 | $13,200 | |
| Total Sales | $67,640 | $88,696 | $124,620 | $170,544 | $206,072 | $231,600 | $267,260 | $293,316 | $324,240 | $350,296 | $475,352 | $488,200 | |
| Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Paid Membership | 20.00% | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 |
| Customized Model | 60.00% | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 |
| Advertisement | 20.00% | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 | $0.26 |
| Direct Cost of Sales | |||||||||||||
| Paid Membership | $8,000 | $10,000 | $15,000 | $22,000 | $27,000 | $30,000 | $35,000 | $38,000 | $42,000 | $47,000 | $50,000 | $50,000 | |
| Customized Model | $5,000 | $7,000 | $9,000 | $11,000 | $13,000 | $15,000 | $17,000 | $19,000 | $21,000 | $21,000 | $42,800 | $45,000 | |
| Advertisement | $528 | $739 | $924 | $1,109 | $1,214 | $1,320 | $1,452 | $1,663 | $1,848 | $2,059 | $2,270 | $2,640 | |
| Subtotal Direct Cost of Sales | $13,528 | $17,739 | $24,924 | $34,109 | $41,214 | $46,320 | $53,452 | $58,663 | $64,848 | $70,059 | $95,070 | $97,640 | |
| Personnel Plan | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| President | 0% | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 | $5,467 |
| Vice-President | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| General Administrative Assistant | 0% | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 |
| IT Staff 1 | 0% | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 |
| IT Staff 2 | 0% | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 | $2,300 |
| Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | |
| Pro Forma Profit and Loss | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | $67,640 | $88,696 | $124,620 | $170,544 | $206,072 | $231,600 | $267,260 | $293,316 | $324,240 | $350,296 | $475,352 | $488,200 | |
| Direct Cost of Sales | $13,528 | $17,739 | $24,924 | $34,109 | $41,214 | $46,320 | $53,452 | $58,663 | $64,848 | $70,059 | $95,070 | $97,640 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $13,528 | $17,739 | $24,924 | $34,109 | $41,214 | $46,320 | $53,452 | $58,663 | $64,848 | $70,059 | $95,070 | $97,640 | |
| Gross Margin | $54,112 | $70,957 | $99,696 | $136,435 | $164,858 | $185,280 | $213,808 | $234,653 | $259,392 | $280,237 | $380,282 | $390,560 | |
| Gross Margin % | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | |
| Expenses | |||||||||||||
| Payroll | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | |
| Marketing/Promotion | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
| Utilities | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | |
| Insurance | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Research and Development | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | |
| Outsourced Offshore Labor | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | |
| Website/Server/Hosting Expenses | 15% | $500 | $500 | $500 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Contracts/Consultants | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Total Operating Expenses | $28,387 | $28,387 | $28,387 | $28,887 | $28,887 | $28,887 | $28,887 | $28,887 | $28,887 | $28,887 | $28,887 | $28,887 | |
| Profit Before Interest and Taxes | $25,725 | $42,570 | $71,309 | $107,549 | $135,971 | $156,393 | $184,921 | $205,766 | $230,505 | $251,350 | $351,395 | $361,673 | |
| EBITDA | $25,725 | $42,570 | $71,309 | $107,549 | $135,971 | $156,393 | $184,921 | $205,766 | $230,505 | $251,350 | $351,395 | $361,673 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $7,718 | $12,771 | $21,393 | $32,265 | $40,791 | $46,918 | $55,476 | $61,730 | $69,152 | $75,405 | $105,418 | $108,502 | |
| Net Profit | $18,008 | $29,799 | $49,917 | $75,284 | $95,180 | $109,475 | $129,445 | $144,036 | $161,354 | $175,945 | $245,976 | $253,171 | |
| Net Profit/Sales | 26.62% | 33.60% | 40.05% | 44.14% | 46.19% | 47.27% | 48.43% | 49.11% | 49.76% | 50.23% | 51.75% | 51.86% | |
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $67,640 | $88,696 | $124,620 | $170,544 | $206,072 | $231,600 | $267,260 | $293,316 | $324,240 | $350,296 | $475,352 | $488,200 | |
| Subtotal Cash from Operations | $67,640 | $88,696 | $124,620 | $170,544 | $206,072 | $231,600 | $267,260 | $293,316 | $324,240 | $350,296 | $475,352 | $488,200 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $67,640 | $88,696 | $124,620 | $170,544 | $206,072 | $231,600 | $267,260 | $293,316 | $324,240 | $350,296 | $475,352 | $488,200 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | $16,767 | |
| Bill Payments | $1,096 | $33,174 | $42,657 | $58,622 | $79,014 | $94,500 | $105,881 | $121,431 | $132,967 | $146,502 | $159,418 | $212,797 | |
| Subtotal Spent on Operations | $17,862 | $49,941 | $59,424 | $75,389 | $95,781 | $111,267 | $122,648 | $138,197 | $149,733 | $163,268 | $176,185 | $229,564 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $17,862 | $49,941 | $59,424 | $75,389 | $95,781 | $111,267 | $122,648 | $138,197 | $149,733 | $163,268 | $176,185 | $229,564 | |
| Net Cash Flow | $49,778 | $38,755 | $65,196 | $95,155 | $110,291 | $120,333 | $144,612 | $155,119 | $174,507 | $187,028 | $299,167 | $258,636 | |
| Cash Balance | $109,778 | $148,533 | $213,729 | $308,884 | $419,175 | $539,508 | $684,121 | $839,240 | $1,013,746 | $1,200,774 | $1,499,941 | $1,758,577 | |
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $60,000 | $109,778 | $148,533 | $213,729 | $308,884 | $419,175 | $539,508 | $684,121 | $839,240 | $1,013,746 | $1,200,774 | $1,499,941 | $1,758,577 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $60,000 | $109,778 | $148,533 | $213,729 | $308,884 | $419,175 | $539,508 | $684,121 | $839,240 | $1,013,746 | $1,200,774 | $1,499,941 | $1,758,577 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $60,000 | $109,778 | $148,533 | $213,729 | $308,884 | $419,175 | $539,508 | $684,121 | $839,240 | $1,013,746 | $1,200,774 | $1,499,941 | $1,758,577 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $31,770 | $40,726 | $56,006 | $75,877 | $90,988 | $101,846 | $117,013 | $128,096 | $141,249 | $152,331 | $205,522 | $210,987 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $31,770 | $40,726 | $56,006 | $75,877 | $90,988 | $101,846 | $117,013 | $128,096 | $141,249 | $152,331 | $205,522 | $210,987 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $31,770 | $40,726 | $56,006 | $75,877 | $90,988 | $101,846 | $117,013 | $128,096 | $141,249 | $152,331 | $205,522 | $210,987 |
| Paid-in Capital | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 | $120,710 |
| Retained Earnings | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) | ($60,710) |
| Earnings | $0 | $18,008 | $47,807 | $97,723 | $173,007 | $268,187 | $377,662 | $507,107 | $651,144 | $812,497 | $988,442 | $1,234,419 | $1,487,590 |
| Total Capital | $60,000 | $78,008 | $107,807 | $157,723 | $233,007 | $328,187 | $437,662 | $567,107 | $711,144 | $872,497 | $1,048,442 | $1,294,419 | $1,547,590 |
| Total Liabilities and Capital | $60,000 | $109,778 | $148,533 | $213,729 | $308,884 | $419,175 | $539,508 | $684,121 | $839,240 | $1,013,746 | $1,200,774 | $1,499,941 | $1,758,577 |
| Net Worth | $60,000 | $78,008 | $107,807 | $157,723 | $233,007 | $328,187 | $437,662 | $567,107 | $711,144 | $872,497 | $1,048,442 | $1,294,419 | $1,547,590 |
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