Blue Sky Satellite Communications
Appendix
| Sales Forecast | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | |||||||||||||
| Inmarsat Hardware | 0% | $29,150 | $29,150 | $53,000 | $29,150 | $39,750 | $29,150 | $29,150 | $73,900 | $136,550 | $29,150 | $29,150 | $29,150 |
| VSAT hardware | 0% | $0 | $3,250,000 | $812,500 | $4,062,500 | $812,500 | $6,500,000 | $1,625,000 | $0 | $812,500 | $812,500 | $0 | $812,500 |
| New Iridium Hardware | 0% | $0 | $36,000 | $60,000 | $60,000 | $60,000 | $36,000 | $36,000 | $60,000 | $36,000 | $36,000 | $36,000 | $36,000 |
| Airtime:Vsat,Inmarsat,Iridium | 0% | $81,000 | $81,000 | $150,000 | $150,000 | $180,000 | $180,000 | $185,000 | $195,000 | $81,000 | $81,000 | $81,000 | $81,000 |
| Value-added services | 0% | $15,000 | $30,000 | $45,000 | $20,000 | $15,000 | $50,000 | $40,000 | $15,000 | $20,000 | $15,000 | $15,000 | $15,000 |
| Total Sales | $125,150 | $3,426,150 | $1,120,500 | $4,321,650 | $1,107,250 | $6,795,150 | $1,915,150 | $343,900 | $1,086,050 | $973,650 | $161,150 | $973,650 | |
| Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Inmarsat Hardware | $20,900 | $20,900 | $38,000 | $20,900 | $28,500 | $20,900 | $20,900 | $51,825 | $95,120 | $20,900 | $20,900 | $20,900 | |
| VSAT hardware | $0 | $2,825,875 | $545,000 | $3,258,000 | $706,522 | $3,600,000 | $1,413,044 | $0 | $706,522 | $706,522 | $0 | $706,522 | |
| New Iridium Hardware | $0 | $25,500 | $42,500 | $38,000 | $38,000 | $25,500 | $25,500 | $38,000 | $25,500 | $0 | $0 | $0 | |
| Airtime:Vsat,Inmarsat,Iridium | $67,500 | $67,500 | $115,000 | $67,500 | $125,500 | $125,000 | $71,500 | $81,000 | $67,500 | $67,500 | $67,500 | $67,500 | |
| Value-added services | $5,000 | $13,000 | $7,500 | $7,500 | $7,500 | $30,000 | $31,000 | $5,000 | $7,500 | $7,500 | $7,500 | $7,500 | |
| Subtotal Direct Cost of Sales | $93,400 | $2,952,775 | $748,000 | $3,391,900 | $906,022 | $3,801,400 | $1,561,944 | $175,825 | $902,142 | $802,422 | $95,900 | $802,422 | |
| Personnel Plan | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Pedro Camacho | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Staff | 0% | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 | $6,670 |
| Total People | 0 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | |
| Total Payroll | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | |
| General Assumptions | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
| Long-term Interest Rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
| Tax Rate | 30.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and Loss | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | $125,150 | $3,426,150 | $1,120,500 | $4,321,650 | $1,107,250 | $6,795,150 | $1,915,150 | $343,900 | $1,086,050 | $973,650 | $161,150 | $973,650 | |
| Direct Cost of Sales | $93,400 | $2,952,775 | $748,000 | $3,391,900 | $906,022 | $3,801,400 | $1,561,944 | $175,825 | $902,142 | $802,422 | $95,900 | $802,422 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $93,400 | $2,952,775 | $748,000 | $3,391,900 | $906,022 | $3,801,400 | $1,561,944 | $175,825 | $902,142 | $802,422 | $95,900 | $802,422 | |
| Gross Margin | $31,750 | $473,375 | $372,500 | $929,750 | $201,228 | $2,993,750 | $353,206 | $168,075 | $183,908 | $171,228 | $65,250 | $171,228 | |
| Gross Margin % | 25.37% | 13.82% | 33.24% | 21.51% | 18.17% | 44.06% | 18.44% | 48.87% | 16.93% | 17.59% | 40.49% | 17.59% | |
| Expenses | |||||||||||||
| Payroll | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | |
| Sales and Marketing and Other Expenses | $6,900 | $5,500 | $6,900 | $5,500 | $6,700 | $5,500 | $6,700 | $6,700 | $5,500 | $7,100 | $5,500 | $5,500 | |
| Depreciation | $363 | $363 | $363 | $363 | $363 | $363 | $363 | $363 | $363 | $363 | $363 | $363 | |
| Leased Equipment | $0 | $0 | $2,000 | $0 | $3,000 | $0 | $500 | $0 | $1,000 | $0 | $2,000 | $0 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
| Rent | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | |
| Payroll Taxes | 2% | $183 | $183 | $183 | $183 | $183 | $183 | $183 | $183 | $183 | $183 | $183 | $183 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $18,966 | $17,566 | $20,966 | $17,566 | $21,766 | $17,566 | $19,266 | $18,766 | $18,566 | $19,166 | $19,566 | $17,566 | |
| Profit Before Interest and Taxes | $12,784 | $455,809 | $351,534 | $912,184 | $179,462 | $2,976,184 | $333,940 | $149,309 | $165,342 | $152,062 | $45,684 | $153,662 | |
| EBITDA | $13,147 | $456,172 | $351,897 | $912,547 | $179,825 | $2,976,547 | $334,303 | $149,672 | $165,705 | $152,425 | $46,047 | $154,025 | |
| Interest Expense | $24,917 | $39,396 | $39,292 | $39,188 | $39,917 | $39,813 | $39,708 | $39,604 | $39,500 | $39,396 | $39,292 | $26,667 | |
| Taxes Incurred | ($3,640) | $137,416 | $103,040 | $288,089 | $46,050 | $969,003 | $97,096 | $36,203 | $41,528 | $37,180 | $2,110 | $41,909 | |
| Net Profit | ($8,493) | $278,997 | $209,202 | $584,908 | $93,496 | $1,967,369 | $197,135 | $73,502 | $84,314 | $75,487 | $4,283 | $85,087 | |
| Net Profit/Sales | -6.79% | 8.14% | 18.67% | 13.53% | 8.44% | 28.95% | 10.29% | 21.37% | 7.76% | 7.75% | 2.66% | 8.74% | |
| Pro Forma Cash Flow | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $12,515 | $342,615 | $112,050 | $432,165 | $110,725 | $679,515 | $191,515 | $34,390 | $108,605 | $97,365 | $16,115 | $97,365 | |
| Cash from Receivables | $54,296 | $58,050 | $211,665 | $3,014,366 | $1,104,485 | $3,793,053 | $1,167,162 | $5,969,235 | $1,676,498 | $331,775 | $974,073 | $851,910 | |
| Subtotal Cash from Operations | $66,811 | $400,665 | $323,715 | $3,446,531 | $1,215,210 | $4,472,568 | $1,358,677 | $6,003,625 | $1,785,103 | $429,140 | $990,188 | $949,275 | |
| 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 | $3,500,000 | $0 | $0 | $200,000 | $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 | $3,500,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $3,566,811 | $3,900,665 | $323,715 | $3,446,531 | $1,415,210 | $4,472,568 | $1,358,677 | $6,003,625 | $1,785,103 | $429,140 | $990,188 | $949,275 | |
| Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | $9,170 | |
| Bill Payments | $39,034 | $335,750 | $6,078,628 | $313,914 | $4,796,246 | $300,751 | $5,973,781 | $144,488 | $85,208 | $94,715 | $223,725 | $82,218 | |
| Subtotal Spent on Operations | $48,204 | $344,920 | $6,087,798 | $323,084 | $4,805,416 | $309,921 | $5,982,951 | $153,658 | $94,378 | $103,885 | $232,895 | $91,388 | |
| 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 | $3,005,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500,000 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $3,000,000 | $3,000,000 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $73,204 | $369,920 | $6,112,798 | $348,084 | $4,830,416 | $334,921 | $6,007,951 | $178,658 | $119,378 | $128,885 | $3,757,895 | $6,121,388 | |
| Net Cash Flow | $3,493,607 | $3,530,746 | ($5,789,083) | $3,098,446 | ($3,415,206) | $4,137,647 | ($4,649,274) | $5,824,967 | $1,665,725 | $300,255 | ($2,767,707) | ($5,172,113) | |
| Cash Balance | $3,524,383 | $7,055,129 | $1,266,046 | $4,364,492 | $949,286 | $5,086,933 | $437,659 | $6,262,626 | $7,928,351 | $8,228,606 | $5,460,899 | $288,786 | |
| Pro Forma Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $30,776 | $3,524,383 | $7,055,129 | $1,266,046 | $4,364,492 | $949,286 | $5,086,933 | $437,659 | $6,262,626 | $7,928,351 | $8,228,606 | $5,460,899 | $288,786 |
| Accounts Receivable | $108,591 | $166,931 | $3,192,416 | $3,989,201 | $4,864,320 | $4,756,361 | $7,078,943 | $7,635,416 | $1,975,691 | $1,276,638 | $1,821,149 | $992,111 | $1,016,486 |
| Inventory | $96,176 | $102,740 | $3,248,053 | $2,500,053 | $3,731,090 | $2,825,068 | $4,181,540 | $2,619,596 | $2,443,771 | $1,541,629 | $882,664 | $786,764 | $882,664 |
| Other Current Assets | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $32,800 | $532,800 | $532,800 |
| Total Current Assets | $268,344 | $3,826,854 | $13,528,397 | $7,788,099 | $12,992,702 | $8,563,515 | $16,380,216 | $10,725,471 | $10,714,888 | $10,779,418 | $10,965,218 | $7,772,574 | $2,720,736 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $43,586 | $3,043,586 | $6,043,586 |
| Accumulated Depreciation | $7,250 | $7,613 | $7,975 | $8,338 | $8,700 | $9,063 | $9,425 | $9,788 | $10,150 | $10,513 | $10,875 | $11,238 | $11,600 |
| Total Long-term Assets | $36,336 | $35,974 | $35,611 | $35,249 | $34,886 | $34,524 | $34,161 | $33,799 | $33,436 | $33,074 | $32,711 | $3,032,349 | $6,031,986 |
| Total Assets | $304,680 | $3,862,827 | $13,564,008 | $7,823,348 | $13,027,588 | $8,598,038 | $16,414,377 | $10,759,269 | $10,748,324 | $10,812,492 | $10,997,929 | $10,804,922 | $8,752,722 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $34,678 | $126,319 | $6,073,502 | $148,640 | $4,792,972 | $94,927 | $5,968,896 | $141,654 | $82,206 | $87,059 | $222,010 | $49,720 | $942,433 |
| Current Borrowing | $5,000 | $5,000 | $3,505,000 | $3,505,000 | $3,505,000 | $3,705,000 | $3,705,000 | $3,705,000 | $3,705,000 | $3,705,000 | $3,705,000 | $3,705,000 | $700,000 |
| Other Current Liabilities | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Subtotal Current Liabilities | $49,678 | $141,319 | $9,588,502 | $3,663,640 | $8,307,972 | $3,809,927 | $9,683,896 | $3,856,654 | $3,797,206 | $3,802,059 | $3,937,010 | $3,764,720 | $1,652,433 |
| Long-term Liabilities | $6,000,000 | $5,975,000 | $5,950,000 | $5,925,000 | $5,900,000 | $5,875,000 | $5,850,000 | $5,825,000 | $5,800,000 | $5,775,000 | $5,750,000 | $5,725,000 | $5,700,000 |
| Total Liabilities | $6,049,678 | $6,116,319 | $15,538,502 | $9,588,640 | $14,207,972 | $9,684,927 | $15,533,896 | $9,681,654 | $9,597,206 | $9,577,059 | $9,687,010 | $9,489,720 | $7,352,433 |
| Paid-in Capital | $140,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 | $3,640,000 |
| Retained Earnings | ($5,889,869) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) | ($5,884,998) |
| Earnings | $4,871 | ($8,493) | $270,504 | $479,707 | $1,064,614 | $1,158,110 | $3,125,479 | $3,322,614 | $3,396,116 | $3,480,431 | $3,555,917 | $3,560,200 | $3,645,287 |
| Total Capital | ($5,744,998) | ($2,253,491) | ($1,974,494) | ($1,765,292) | ($1,180,384) | ($1,086,888) | $880,481 | $1,077,616 | $1,151,118 | $1,235,432 | $1,310,919 | $1,315,202 | $1,400,289 |
| Total Liabilities and Capital | $304,680 | $3,862,827 | $13,564,008 | $7,823,348 | $13,027,588 | $8,598,038 | $16,414,377 | $10,759,269 | $10,748,324 | $10,812,492 | $10,997,929 | $10,804,922 | $8,752,722 |
| Net Worth | ($5,744,998) | ($2,253,491) | ($1,974,494) | ($1,765,292) | ($1,180,384) | ($1,086,888) | $880,481 | $1,077,616 | $1,151,118 | $1,235,432 | $1,310,919 | $1,315,202 | $1,400,289 |
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