Funding Requirements and Uses
The company is raising significant new investment for the purpose of growth and operations. This funding will cover operating expenses and product development during this period.
7.1 Important Assumptions
The company operates as a Virginia Corporation. The following financial projection is based on sales volume at the levels described in the revenue section and presents, to the best of management's knowledge and belief, the company's expected assets, liabilities, capital, revenues, and expenses. The projections reflect management's judgement of the expected conditions and its expected course of action given the hypothetical assumptions.
The table below provides significant assumptions that drive the company's financial projections.
7.2 Break-even Analysis
The following chart and table provide the Break-even Assumptions for Web Services Provider.
7.3 Projected Profit and Loss
Web Services Provider is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement.
7.4 Projected Cash Flow
The chart and table below depict the projected cash flow for the company.
7.5 Projected Balance Sheet
Projected Balance Sheets for 2000 - 2002 can be found in the table below, and in the appendices.
7.6 Business Ratios
The following table outlines some of the more important ratios from the information retrieval industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 7375.