Zenergy Medical Industries
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 | ||
| Sales | |||||||||||||
| Therapy System | 0% | $0 | $5,281 | $10,562 | $15,842 | $23,236 | $31,685 | $41,190 | $51,752 | $58,353 | $66,274 | $74,195 | $80,004 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $5,281 | $10,562 | $15,842 | $23,236 | $31,685 | $41,190 | $51,752 | $58,353 | $66,274 | $74,195 | $80,004 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Inventory Used | $0 | $1,300 | $2,600 | $3,900 | $5,720 | $7,800 | $10,140 | $12,740 | $14,365 | $16,315 | $18,265 | $19,695 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $1,300 | $2,600 | $3,900 | $5,720 | $7,800 | $10,140 | $12,740 | $14,365 | $16,315 | $18,265 | $19,695 | |
| 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 | ||
| VP of Marketing and General Manager | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| VP of Corporate Account Sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| VP of Field Clinical Sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Office Manager | 0% | $0 | $0 | $0 | $0 | $0 | $960 | $960 | $960 | $960 | $960 | $960 | $960 |
| Total People | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $0 | $0 | $0 | $0 | $0 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | |
| 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 | $0 | $5,281 | $10,562 | $15,842 | $23,236 | $31,685 | $41,190 | $51,752 | $58,353 | $66,274 | $74,195 | $80,004 | |
| Direct Cost of Sales | $0 | $1,300 | $2,600 | $3,900 | $5,720 | $7,800 | $10,140 | $12,740 | $14,365 | $16,315 | $18,265 | $19,695 | |
| Shipping/Handling | 5% | $0 | $264 | $528 | $792 | $1,162 | $1,584 | $2,060 | $2,588 | $2,918 | $3,314 | $3,710 | $4,000 |
| Medicare Part B Billing | 4% | $0 | $185 | $370 | $554 | $813 | $1,109 | $1,442 | $1,811 | $2,042 | $2,320 | $2,597 | $2,800 |
| Uncollectible Accounts Reserve | 20% | $0 | $1,056 | $2,112 | $3,168 | $4,647 | $6,337 | $8,238 | $10,350 | $11,671 | $13,255 | $14,839 | $16,001 |
| Sales Commission | 16% | $0 | $845 | $1,690 | $2,535 | $3,718 | $5,070 | $6,590 | $8,280 | $9,336 | $10,604 | $11,871 | $12,801 |
| Total Cost of Sales | $0 | $3,650 | $7,300 | $10,950 | $16,060 | $21,900 | $28,470 | $35,770 | $40,332 | $45,807 | $51,282 | $55,297 | |
| Gross Margin | $0 | $1,631 | $3,262 | $4,892 | $7,176 | $9,785 | $12,720 | $15,982 | $18,021 | $20,467 | $22,913 | $24,707 | |
| Gross Margin % | 0.00% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | 30.88% | |
| Expenses | |||||||||||||
| Payroll | $0 | $0 | $0 | $0 | $0 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | |
| 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 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | |
| Telecommunications | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| General Liability Insurance | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
| Legal Expenses | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Accounting Expenses | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Stationery and Office Supplies | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Travel | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Office Equipment | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Total Operating Expenses | $1,520 | $1,520 | $1,520 | $1,520 | $1,520 | $2,480 | $2,480 | $3,480 | $3,480 | $3,480 | $3,480 | $3,480 | |
| Profit Before Interest and Taxes | ($1,520) | $111 | $1,742 | $3,372 | $5,656 | $7,305 | $10,240 | $12,502 | $14,541 | $16,987 | $19,433 | $21,227 | |
| EBITDA | ($1,520) | $111 | $1,742 | $3,372 | $5,656 | $7,305 | $10,240 | $12,502 | $14,541 | $16,987 | $19,433 | $21,227 | |
| Interest Expense | $42 | $40 | $39 | $38 | $37 | $35 | $34 | $33 | $32 | $30 | $29 | $28 | |
| Taxes Incurred | ($469) | $21 | $511 | $1,000 | $1,686 | $2,181 | $3,062 | $3,741 | $4,353 | $5,087 | $5,821 | $6,360 | |
| Net Profit | ($1,093) | $49 | $1,192 | $2,334 | $3,934 | $5,089 | $7,144 | $8,729 | $10,156 | $11,870 | $13,583 | $14,840 | |
| Net Profit/Sales | 0.00% | 0.93% | 11.28% | 14.73% | 16.93% | 16.06% | 17.34% | 16.87% | 17.41% | 17.91% | 18.31% | 18.55% | |
| 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 | $0 | $264 | $528 | $792 | $1,162 | $1,584 | $2,060 | $2,588 | $2,918 | $3,314 | $3,710 | $4,000 | |
| Cash from Receivables | $0 | $0 | $2,676 | $7,693 | $12,709 | $18,796 | $26,355 | $34,917 | $44,482 | $52,509 | $59,449 | $66,974 | |
| Subtotal Cash from Operations | $0 | $264 | $3,204 | $8,485 | $13,871 | $20,380 | $28,415 | $37,504 | $47,400 | $55,823 | $63,158 | $70,974 | |
| 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 | $0 | $264 | $3,204 | $8,485 | $13,871 | $20,380 | $28,415 | $37,504 | $47,400 | $55,823 | $63,158 | $70,974 | |
| 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 | $0 | $0 | $0 | $0 | $0 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | |
| Bill Payments | $36 | $1,221 | $5,093 | $9,938 | $15,018 | $21,342 | $27,973 | $35,734 | $44,803 | $49,079 | $55,601 | $61,737 | |
| Subtotal Spent on Operations | $36 | $1,221 | $5,093 | $9,938 | $15,018 | $22,302 | $28,933 | $36,694 | $45,763 | $50,039 | $56,561 | $62,697 | |
| 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 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| 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 | $36 | $1,371 | $5,243 | $10,088 | $15,168 | $22,452 | $29,083 | $36,844 | $45,913 | $50,189 | $56,711 | $62,847 | |
| Net Cash Flow | ($36) | ($1,107) | ($2,039) | ($1,603) | ($1,298) | ($2,072) | ($669) | $661 | $1,486 | $5,633 | $6,447 | $8,127 | |
| Cash Balance | $9,464 | $8,356 | $6,317 | $4,714 | $3,417 | $1,345 | $676 | $1,337 | $2,823 | $8,456 | $14,904 | $23,031 | |
| 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 | $9,500 | $9,464 | $8,356 | $6,317 | $4,714 | $3,417 | $1,345 | $676 | $1,337 | $2,823 | $8,456 | $14,904 | $23,031 |
| Accounts Receivable | $0 | $0 | $5,017 | $12,375 | $19,732 | $29,097 | $40,402 | $53,178 | $67,425 | $78,379 | $88,830 | $99,867 | $108,897 |
| Inventory | $2,500 | $2,500 | $2,200 | $2,600 | $3,900 | $5,720 | $7,800 | $10,140 | $12,740 | $14,365 | $16,315 | $18,265 | $19,695 |
| Other Current Assets | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 |
| Total Current Assets | $12,275 | $12,239 | $15,848 | $21,568 | $28,622 | $38,509 | $49,822 | $64,269 | $81,777 | $95,842 | $113,877 | $133,310 | $151,898 |
| 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 | $12,275 | $12,239 | $15,848 | $21,568 | $28,622 | $38,509 | $49,822 | $64,269 | $81,777 | $95,842 | $113,877 | $133,310 | $151,898 |
| 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 | $1,057 | $4,767 | $9,444 | $14,314 | $20,418 | $26,792 | $34,245 | $43,175 | $47,233 | $53,548 | $59,549 | $63,447 |
| Current Borrowing | $5,000 | $5,000 | $4,850 | $4,700 | $4,550 | $4,400 | $4,250 | $4,100 | $3,950 | $3,800 | $3,650 | $3,500 | $3,350 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $5,000 | $6,057 | $9,617 | $14,144 | $18,864 | $24,818 | $31,042 | $38,345 | $47,125 | $51,033 | $57,198 | $63,049 | $66,797 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $5,000 | $6,057 | $9,617 | $14,144 | $18,864 | $24,818 | $31,042 | $38,345 | $47,125 | $51,033 | $57,198 | $63,049 | $66,797 |
| Paid-in Capital | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 | $10,580 |
| Retained Earnings | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) | ($3,305) |
| Earnings | $0 | ($1,093) | ($1,044) | $148 | $2,482 | $6,416 | $11,505 | $18,649 | $27,378 | $37,534 | $49,404 | $62,987 | $77,826 |
| Total Capital | $7,275 | $6,182 | $6,231 | $7,423 | $9,757 | $13,691 | $18,780 | $25,924 | $34,653 | $44,809 | $56,679 | $70,262 | $85,101 |
| Total Liabilities and Capital | $12,275 | $12,239 | $15,848 | $21,568 | $28,622 | $38,509 | $49,822 | $64,269 | $81,777 | $95,842 | $113,877 | $133,310 | $151,898 |
| Net Worth | $7,275 | $6,182 | $6,231 | $7,423 | $9,757 | $13,691 | $18,780 | $25,924 | $34,653 | $44,809 | $56,679 | $70,262 | $85,101 |
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