50% CONFIDENCE LEVEL Year 1 Year 2 Year 3 Year 4 Year 5
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
CAPITAL EXPENDITURES
New Hires (Excluding Sys Dev and R&D) 0 4 5 8 8 0 0 0 3 0 0 0 3 0 1 2 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
New Hires (Sys Dev and R&D) 1 2 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 5 0 0 0 0 30 0 0 0 0 0 0 0 0 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 0 0
Non-Sys Dev and R&D Buildout & Set Up per New Hire  $     3,500  $         -    $  14,000  $  17,500  $ 28,000  $ 28,000  $        -    $        -    $        -    $ 10,500  $        -    $        -    $        -    $ 10,500  $        -    $   3,500  $   7,000  $        -    $        -    $        -    $        -    $        -    $        -    $         -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $         -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $         -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -  
Sys Dev and R&D Buildout & Set Up per New Hire  $   10,000  $  10,000  $  20,000  $  10,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $ 10,000  $        -    $ 50,000  $        -    $        -    $        -    $        -    $300,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $100,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $100,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -  
Operating System Software/Financial Reporting & Acctg.   $100,000 $150,000 $25,000  
Network Infrastructure & LAN   $50,000 $150,000 $25,000  
Billing and Receiveables Software   $25,000  
Other  
Total Capex            $185,000  $334,000  $  77,500  $ 28,000  $ 28,000  $        -    $        -    $        -    $ 10,500  $        -    $        -    $        -    $ 10,500  $        -    $   3,500  $ 17,000  $        -    $ 50,000  $        -    $        -    $        -    $        -    $300,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $100,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $100,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -  
WATERFALL - DEPRECIATION EXPENSE
Depreciation Period in Months (Asset Life) 36
Month # (Assets are Assumed to go into service One Month Following Purchase)                  1                  2                 3                 4                 5                 6                 7                 8                 9               10               11               12               13               14               15               16               17               18               19               20               21                22               23               24               25               26               27               28               29               30               31               32               33               34               35                36               37               38               39               40               41               42               43               44               45               46               47                48               49               50               51               52               53               54               55               56               57               58               59
Year 1  Month 1          5,139          5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139          5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139         5,139          5,139                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 2          9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278          9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278         9,278          9,278         9,278                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 3         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153          2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153         2,153          2,153         2,153         2,153                -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 4            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778              778            778            778            778            778            778            778            778            778            778            778            778            778            778              778            778            778            778                -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 5            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778            778              778            778            778            778            778            778            778            778            778            778            778            778            778            778              778            778            778            778            778                -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 6                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 7                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -