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 Table of Contents

1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................1
1.1 Keys to Success.........................................................................................................................1
1.2 Mission...........................................................................................................................................1
1.3 Objectives....................................................................................................................................2
2.0 Organization Summary...............................................................................................................2
2.1 Legal Entity..................................................................................................................................2
2.2 Start-up Summary....................................................................................................................3
Table: Start-up Funding.............................................................................................................3
Table: Start-up..............................................................................................................................4
Chart: Start-up..............................................................................................................................4
2.3 Program Location......................................................................................................................4
3.0 Services.............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation..............................................................................................................6
Table: Market Analysis................................................................................................................6
Chart: Market Analysis (Pie).....................................................................................................6
4.2 Target Market Segment Strategy.......................................................................................7
4.3 Service Providers Analysis.....................................................................................................7
5.0 Strategy and Implementation Summary.............................................................................7
5.1 Competitive Edge......................................................................................................................7
5.2 Marketing Strategy...................................................................................................................8
5.3 Fundraising Strategy...............................................................................................................8
5.3.1 Funding Forecast...............................................................................................................8
Table: Funding Forecast.........................................................................................................8
Chart: Funding by Year...........................................................................................................9
5.4 Milestones....................................................................................................................................9
Table: Milestones..........................................................................................................................9
6.0 Management Summary.............................................................................................................10
6.1 Personnel Plan..........................................................................................................................10
Table: Personnel..........................................................................................................................10
7.0 Financial Plan................................................................................................................................11
7.1 Break-even Analysis...............................................................................................................11
Chart: Break-even Analysis....................................................................................................11
Table: Break-even Analysis....................................................................................................11
7.2 Projected Surplus or Deficit................................................................................................12
Table: Surplus and Deficit.......................................................................................................12
Chart: Surplus Yearly................................................................................................................13
7.3 Projected Cash Flow...............................................................................................................13
Chart: Cash...................................................................................................................................13
Table: Cash Flow.........................................................................................................................14
7.4 Standard Ratios.......................................................................................................................15
Table: Ratios.................................................................................................................................15
Table: Funding Forecast.....................................................................................................................1

Page
 Table of Contents

Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: Surplus and Deficit.................................................................................................................3
Table: Surplus and Deficit.................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................5

Page
 ASTI

1.0 Executive Summary

The Advanced Science and Technology Institute (ASTI) supports research faculty and staff at
**State University, University of AnyState, AnyState Health Sciences University and AnyCity
State University in its management of new discoveries. This support includes the management
of new discoveries having commercial applications, as well as the management of corporate
research agreements leading to new discovery.

**(Editor's Note: Names disguised for confidentiality.)

Chart: Highlights

Highlights
$300,000

$270,000

$240,000

$210,000
Funding
$180,000

$150,000 Gross Surplus

$120,000 Net Surplus

$90,000

$60,000

$30,000

$0
Year 1 Year 2 Year 3

1.1 Keys to Success

 Building a strong support base with the private sector within State and the Northwest.
 Creating an effective network between researchers to facilitate cross-disciplinary contact.
 Raising the viability of ASTI as the one-stop resource for all transferable technology that is
being developed on the campuses of State's four largest universities.

1.2 Mission

The mission of the ASTI is to bring technologies from **State University, University of

AnyState, AnyState Health Sciences University and AnyCity State University into public use;
thereby providing economic development assistance to state and federal agencies and
companies to benefit State constituents, providing service to the technology transfer staff of
each institution by assisting in identifying, protecting, developing and transferring technology to
the private sector and generating income. ASTI's unique perspective is in its ability to link
researchers from various institutions to create new technologies that can then be marketed to
the private sector.
Page 1
 ASTI

Historically, State has received less attention from companies that develop long-term
relationships with the university research community.  With SouthernState universities to the
south and the University of AnyState to the north, State has had a difficult time reaching the
level of viability necessary to draw the interest of companies outside the state.

It is a problem of economy of scale. Currently, State University, University of AnyState,

AnyState Health Sciences University and AnyCity State University have 128 technologies
available for licensing.  One university in SouthernState, The University of Southern State
(USS), has over 200 technologies available for licensing.  In addition, USS has received $20
million in corporate research funding last year.  This far exceeds the total for all corporate
research funding for the four State schools ($3 million) during the same period. In State, the
State Technology Center has secured $91 million in private funding for technology transfer from
the University of State. It is critical that the four major universities in State pool its resources in
order to be competitive in drawing corporate attention to the excellent researchers working
within their institutions.

It is ASTI's mission to create a resource for the private sector that rivals USC by providing an
aggressive one-stop center for all the pivotal research that is occuring in State.

1.3 Objectives

 Establish a 42-member corporate research support council and increase corporate

membership in ASTI's Technology Development Council by 20% each year.
 Facilitate two new industry sponsored research agreements the first year and increase the
number of agreements each year.
 Create new research linkages between the four campuses and develop new collaborative
relationships between researchers.
 Develop a cross-disciplinary research database that will link researchers throughout the
state.

2.0 Organization Summary

ASTI is a focused program that offers a powerful resource to researchers who are seeking
corporate support for research and corporations seeking new technologies.  The program also
seeks linkages between the four campus researchers in developing new partnerships that will
generate additional corporate interest. 

2.1 Legal Entity

State University, University of AnyState, AnyState Health Sciences University, and AnyCity
State University are all share holders in ASTI.

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 ASTI

2.2 Start-up Summary

Start-up costs and initial financing are shown on the following table.  Each institution will
contribute $40,000 to ASTI's operating budget.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $5,800
Start-up Assets to Fund $154,200
Total Funding Required $160,000

Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $154,200
Additional Cash Raised $0
Cash Balance on Starting Date $154,200
Total Assets $154,200

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
State University $40,000
University of State $40,000
AnyCity State University $40,000
AnyState Health Sciences University $40,000
Additional Investment Requirement $0
Total Planned Investment $160,000

Loss at Start-up (Start-up Expenses) ($5,800)

Total Capital $154,200

Total Capital and Liabilities $154,200

Total Funding $160,000

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 ASTI

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $500
Stationery etc. $300
Brochures $4,000
Consultants $0
Insurance $0
Rent $1,000
Research and Development $0
Expensed Equipment $0
Other $0
Total Start-up Expenses $5,800

Start-up Assets
Cash Required $154,200
Other Current Assets $0
Long-term Assets $0
Total Assets $154,200

Total Requirements $160,000

Chart: Start-up

Start-up

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Expenses Assets Investment Loans

2.3 Program Location

ASTI will be located in AnyCity, AnyState.  This is a good central location for a state-wide
program. AnyCity State University is located in AnyCity.  AnyState Health Sciences University

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 ASTI

and State University are located in NewTown 60 miles to the north. The University of State is
located in OldTown which is 40 miles south of AnyCity.

3.0 Services

ASTI's services include:

New Technology
Assist in identifying new invention disclosures for new discoveries and evaluation of these new
discoveries to determine commercial potential. A research database will be created and
maintained by ASTI in order to respond quickly to requests for information from the private
sector, especially when it links researchers on multiple campuses. Companies will have a quick
and accessible resource that will identify researchers that match their interest areas. ASTI will
also assist in the establishment of new businesses to develop emerging technologies.

Research Collaborations
ASTI will actively seek cross-disciplinary collaboration opportunities between researchers on the
four member campuses.

Technology Conferences
ASTI will sponsor two conferences in Portland each year focusing on the areas of Biotechnology,
Material Science, Computer Science, and Medical Technology.

Newsletter and Promotional Publications

ASTI will produce a monthly newsletter and quarterly promotional publications directed toward
the private sector which will focus on current research on the four campuses and researcher
profiles. This material will also highlight researchers seeking corporate support.

4.0 Market Analysis Summary

The research enterprise at State University, University of AnyState, AnyState Health Sciences
University and AnyCity State University is remarkably broad, deep and diverse, spanning
activities in twenty-two academic colleges and more than 40 multidisciplinary programs,
centers, programs, and institutes.

ASTI will first focus on creating the information base necessary to satisfy high-technology

corporations that are currently prospecting for new technologies. These are mostly larger
companies, but also include medium- to small-sized companies.

Our most important group of potential customers are the researchers in these companies. They
do not want to waste their time or resources looking for a needle in a haystack. It is critical that
they find ASTI an excellent tool in quickly identifying technologies and researchers that will lead
to profitable products.

ASTI will provide a two-tier service that will correspond to a company's membership in ASTI's
Technology Development Council. There will be both a full and associate membership option in
the Technology Development Council.   We anticipate that larger companies will select the full
membership option because it will offer additional research services.  An associate membership
is tailored for the medium- to small-sized companies whose contacts will be less frequent.

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 ASTI

4.1 Market Segmentation

Larger Companies:  It is critical to create major stakeholders in the development of a better

delivery system for technology transfer. Currently, there are several large companies that have
an ongoing relationship with researchers on the four major campuses.  Recruiting these
companies as full members of the Technology Development Council is an important first step in
improving corporate interest in high-tech members in State.  These companies will be
responsive to ASTI's ability to ferret out the research and researchers that they are interested
in reviewing.  ASTI will also facilitate any cross-disciplinary linkages that will lead to the pursuit
of research that these companies are interested in. Involvement in the growth of ASTI will
attract companies of simular size and stature.

Medium to Small Companies: These companies are critical to the growth of ASTI because they
represent the state's developing high-tech industries.  Their focus in not only on a specific
technology that is being developed at one of the member campuses but also on the graduate
students that are working on the research. As associate members of the Technology
Development Council, these companies will gain greater access to all the research opportunities
that will meet their technology and staff needs.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Large Companies 20% 20 24 29 35 42 20.38%
Medium to Small Companies 20% 15 18 22 26 31 19.90%
Other 0% 0 0 0 0 0 0.00%
Total 20.17% 35 42 51 61 73 20.17%

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 ASTI

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Large Companies

Medium to Small Companies

Other

4.2 Target Market Segment Strategy

As indicated by the previous table, we must first focus on all companies that have current
relationships with researchers on the member campuses.

4.3 Service Providers Analysis

The private sector's access to researchers at the member campuses range from excellent in
selected disciplines, to completely chaotic and frustrating in most others areas.

ASTI's goal is to assure access to all critical research through a streamlined process that leaves
the company both satisfied with the results as well as the time invested in the search.

5.0 Strategy and Implementation Summary

The initial funding from the four member institutions will provide the foundation for launching
ASTI.  Its survival will depend on the program's ability to grow a membership base to its
Technology Development Council.  The program will not survive if it is unable to meet its goal
of increasing membership in the Council by 20% each year.

ASTI's information products and services will add real value to the companies search for
emerging technology.  As stated before, our most important group of potential customers
are the researchers in these companies.  Their input into the kind of services they want will be
critical to the evolution of ASTI. Our focus will be to add value in everything connected with
ASTI.

Page 7
 ASTI

5.1 Competitive Edge

ASTI's competitive advantage is their comprehensive approach to providing unequalled access

to researchers. ASTI's focus is to support the companies in their successful pursuit of emerging
technologies. The most critical component is the responsiveness of the program to company
inquiries into selected research areas.

The best scenario is the company responding to research highlights provided by ASTI before
initial inquires are made.  ASTI will strive to open doors for companies so that long-term
relationships will develop and companies will become members of the Technology Development
Council. 

The approach is decidedly sales-oriented in focus.  This is a critical advantage when in

competition with universities in SouthernState and NorthernState.  Companies will find State
research viable and easy to access.

Yet the key to ASTI's success will be in how the program evolves in response to companies
demands.  ASTI's Technology Development Council was a vehicle for that evolution.  The
Council will provide companies with the access to fine-tune services to improve the program's
ability to meet industry demands.

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 ASTI

5.2 Marketing Strategy

ASTI's marketing strategy will be to build the Technology Development Council as a base of
support for technology transfer.  The plan is to use existing members of the Council as lead
contact for other companies.  The best description of the strategy is the ever-
widening ripples when a stone is thrown in a pond.  The first step is to capture all the
companies the are currently quite aware of the excellent researchers at the four member
institutions. From that base, begin to recruit new companies that current members will invite
into the Council.

Though it is possible that fresh contacts to ASTI, from inquiries about technology highlighted in
promotional material, can lead to companies joining the Council, it will be the membership of
the Council that will drive the success of the program.

5.3 Fundraising Strategy

The fund raising strategy will be the payment of annual membership fees in the Technology
Development Council.  A full membership will be $3,000 a year.  An associate membership will
be $1,000.

5.3.1 Funding Forecast

During the first year, ASTI will recruit 20 full members and 21 associate members to the
Technology Development Council.

Table: Funding Forecast

Funding Forecast
Year 1 Year 2 Year 3
Funding
University Funding $160,000 $160,000 $160,000
Full Memberships $90,000 $75,000 $93,000
Associate Memberships $36,000 $26,000 $32,000
Total Funding $286,000 $261,000 $285,000

Direct Cost of Funding Year 1 Year 2 Year 3

University Funding $0 $0 $0
Full Memberships $0 $0 $0
Associate Memberships $0 $0 $0
Subtotal Cost of Funding $0 $0 $0

Page 9
 ASTI

Chart: Funding by Year

Funding by Year

$300,000

$270,000

$240,000

$210,000
University Funding
$180,000
Full Memberships
$150,000
Associate Memberships
$120,000

$90,000

$60,000

$30,000

$0
Year 1 Year 2 Year 3

5.4 Milestones

ASTI's milestones are as follows:

1. Within the first six months of operation to assemble the Technology Development Council
membership.
2. Publish the first ASTI monthly newsletter in December.
3. Stage high tech conferences in AnyCity during the month of March and September in 2002.
4. Achieve two new industry sponsored research agreements with researchers at the member
institutions during the first year of operation.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Council Membership 11/1/2001 5/1/2002 $0 ABC Marketing
Newsletter 12/1/2001 12/1/2001 $1,000 ABC Marketing
First High-Tech Conference 3/15/2002 3/17/2002 $8,000 ABC Web
Second High-Tech Conference 9/21/2002 9/23/2002 $8,000 ABC Web
Two New Research Agreements 11/1/2001 1/1/2001 $0 ABC Department
Totals $17,000

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 ASTI

6.0 Management Summary

ASTI's director is John Doe.  He is excited about the state's vision of establishing a technology

transfer consortium involving the state's strongest corporate citizens. "These are ideas that
many people have shared and promoted," Doe said. "I'm hoping to work with units around the
state to implement these and other ideas related to research agreements with industry."
Doe understands the need for State to strengthen connections with the private sector.

He joins ASTI from Pacific Northwest National Laboratory in MoneyCity, State, where he worked
as technology transfer manager in the Environmental Technology Division. He has a Ph.D. in
low-temperature geochemistry from The Johns Hopkins University in Baltimore, Md., and a
post-doctoral fellow from Yale University.

He believes the technology transfer consortium is a natural mechanism to allow large and small
enterprises to make use of the expertise at the member institutions and allow faculty to
participate in entrepreneurial pursuits. "I will promote ideas such as an entrepreneurial
sabbatical for faculty where they could pursue business start-ups and the universities will
receive some benefit in return," Doe said. "I'm excited about the opportunities and look forward
to working with the Technology Development Council and promoting the critical research efforts
occuring at the institutions that ASTI represents."

6.1 Personnel Plan

ASTI's director position is full-time.  In addition, ASTI will also have three full-time
employees; a research associate that will be responsible for research data collection, a
communication associate who will be responsible for the program's publications, and a full-time
administrative assistant.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Director $60,000 $65,000 $70,000
Research Associate $30,000 $33,000 $36,000
Communication Associate $30,000 $33,000 $36,000
Administrative Assistant $24,000 $26,000 $26,000
Total People 4 4 4

Total Payroll $144,000 $157,000 $168,000

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 ASTI

7.0 Financial Plan

The following sections will outline important financial information.

7.1 Break-even Analysis

The following table shows what our break-even point will be to cover our montuhly costs.

Chart: Break-even Analysis

Break-even Analysis
$20,000

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)

($15,000)

($20,000)

$0 $8,000 $16,000 $24,000 $32,000 $40,000

$4,000 $12,000 $20,000 $28,000 $36,000 $44,000

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $22,033

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $22,033

Page 12
 ASTI

7.2 Projected Surplus or Deficit

The following table will indicate projected surplus and deficit.

Table: Surplus and Deficit

Surplus and Deficit

Year 1 Year 2 Year 3
Funding $286,000 $261,000 $285,000
Direct Cost $0 $0 $0
Other Production Expenses $0 $0 $0
Total Direct Cost $0 $0 $0

Gross Surplus $286,000 $261,000 $285,000

Gross Surplus % 100.00% 100.00% 100.00%

Expenses
Payroll $144,000 $157,000 $168,000
Sales and Marketing and Other Expenses $83,000 $39,000 $39,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $2,000 $2,000 $2,000
Insurance $1,800 $1,800 $1,800
Rent $12,000 $12,000 $12,000
Payroll Taxes $21,600 $23,550 $25,200
Other $0 $0 $0

Total Operating Expenses $264,400 $235,350 $248,000

Surplus Before Interest and Taxes $21,600 $25,650 $37,000

EBITDA $21,600 $25,650 $37,000
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0

Net Surplus $21,600 $25,650 $37,000

Net Surplus/Funding 7.55% 9.83% 12.98%

Page 13
 ASTI

Chart: Surplus Yearly

Surplus Yearly

$40,000

10 Month 12
$36,000

11
$32,000

9 Month
$28,000

8 Month
$24,000

Month
$20,000

Month
$16,000

7
$12,000

Month
6
$8,000
Month
$4,000
Month 5

$0
4

Year 1 Year 2 Year 3

Month

7.3 Projected Cash Flow

Month
2 3

The following table and chart illustrate the projected cash flow.
MonthMonth
1

Chart: Cash

Cash
$320,000

$280,000

$240,000

$200,000
Net Cash Flow
$160,000
Cash Balance
$120,000

$80,000

$40,000

$0

Page 14
 ASTI

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Funding $286,000 $261,000 $285,000
Subtotal Cash from Operations $286,000 $261,000 $285,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $286,000 $261,000 $285,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $144,000 $157,000 $168,000
Bill Payments $110,701 $81,609 $79,864
Subtotal Spent on Operations $254,701 $238,609 $247,864

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $254,701 $238,609 $247,864

Net Cash Flow $31,299 $22,391 $37,136

Cash Balance $185,499 $207,890 $245,025

Page 15
 ASTI

7.4 Standard Ratios

The following table compares our standard ratios with the Standard Industry Code #8748,
Other Management Consulting Services.

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Funding Growth n.a. -8.74% 9.20% 7.29%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 51.87%
Total Current Assets 100.00% 100.00% 100.00% 75.02%
Long-term Assets 0.00% 0.00% 0.00% 24.98%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 5.23% 3.10% 2.68% 31.06%

Long-term Liabilities 0.00% 0.00% 0.00% 17.80%
Total Liabilities 5.23% 3.10% 2.68% 48.86%
Net Worth 94.77% 96.90% 97.32% 51.14%

Percent of Funding
Funding 100.00% 100.00% 100.00% 100.00%
Gross Surplus 100.00% 100.00% 100.00% 100.00%
Selling, General & Administrative Expenses 92.45% 90.17% 87.02% 74.84%
Advertising Expenses 10.49% 11.49% 10.53% 1.60%
Surplus Before Interest and Taxes 7.55% 9.83% 12.98% 2.61%

Main Ratios
Current 19.13 32.28 37.26 1.80
Quick 19.13 32.28 37.26 1.49
Total Debt to Total Assets 5.23% 3.10% 2.68% 58.30%
Pre-tax Return on Net Worth 12.29% 12.73% 15.52% 6.19%
Pre-tax Return on Assets 11.64% 12.34% 15.10% 14.83%

Additional Ratios Year 1 Year 2 Year 3

Net Surplus Margin 7.55% 9.83% 12.98% n.a
Return on Equity 12.29% 12.73% 15.52% n.a

Activity Ratios
Accounts Payable Turnover 12.41 12.17 12.17 n.a
Payment Days 27 38 30 n.a
Total Asset Turnover 1.54 1.26 1.16 n.a

Debt Ratios
Debt to Net Worth 0.06 0.03 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $175,800 $201,450 $238,450 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Funding 0.65 0.80 0.86 n.a
Current Debt/Total Assets 5% 3% 3% n.a
Acid Test 19.13 32.28 37.26 n.a
Funding/Net Worth 1.63 1.30 1.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 16
 Appendix

Table: Funding Forecast

Funding 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
Funding
University Funding 0% $160,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Full Memberships 0% $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Associate Memberships 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Total Funding $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000

Direct Cost of Funding Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
University Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Full Memberships $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Associate Memberships $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cost of Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 1
 Appendix

Table: Personnel

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
Director 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Research Associate 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
Communication Associate 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
Administrative Assistant 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

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 Appendix

Table: Surplus and Deficit

Surplus and Deficit

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Funding $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Direct Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Direct Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Surplus $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Gross Surplus % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Sales and Marketing and Other $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917 $6,917
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033

Surplus Before Interest and Taxes $149,967 ($10,033) ($10,033) ($10,033) ($10,033) ($10,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033)
EBITDA $149,967 ($10,033) ($10,033) ($10,033) ($10,033) ($10,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Surplus $149,967 ($10,033) ($10,033) ($10,033) ($10,033) ($10,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033)
Net Surplus/Funding 87.19% -83.61% -83.61% -83.61% -83.61% -83.61% -144.81% -144.81% -144.81% -144.81% -144.81% -144.81%

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 Appendix

Table: Cash Flow

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 Funding $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Subtotal Cash from Operations $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000

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 $172,000 $12,000 $12,000 $12,000 $12,000 $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000

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 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Bill Payments $334 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033 $10,033
Subtotal Spent on Operations $12,334 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033

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 $12,334 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033 $22,033

Net Cash Flow $159,666 ($10,033) ($10,033) ($10,033) ($10,033) ($10,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033) ($13,033)

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 Appendix
Cash Balance $313,866 $303,832 $293,799 $283,766 $273,732 $263,699 $250,666 $237,632 $224,599 $211,566 $198,532 $185,499

Table: Balance Sheet

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 $154,200 $313,866 $303,832 $293,799 $283,766 $273,732 $263,699 $250,666 $237,632 $224,599 $211,566 $198,532 $185,499
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $154,200 $313,866 $303,832 $293,799 $283,766 $273,732 $263,699 $250,666 $237,632 $224,599 $211,566 $198,532 $185,499

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 $154,200 $313,866 $303,832 $293,799 $283,766 $273,732 $263,699 $250,666 $237,632 $224,599 $211,566 $198,532 $185,499

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 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699
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 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699 $9,699

Paid-in Capital $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000
Accumulated Surplus/Deficit ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800) ($5,800)
Surplus/Deficit $0 $149,967 $139,933 $129,900 $119,867 $109,833 $99,800 $86,767 $73,733 $60,700 $47,667 $34,633 $21,600
Total Capital $154,200 $304,167 $294,133 $284,100 $274,067 $264,033 $254,000 $240,967 $227,933 $214,900 $201,867 $188,833 $175,800
Total Liabilities and Capital $154,200 $313,866 $303,832 $293,799 $283,766 $273,732 $263,699 $250,666 $237,632 $224,599 $211,566 $198,532 $185,499

Net Worth $154,200 $304,167 $294,133 $284,100 $274,067 $264,033 $254,000 $240,967 $227,933 $214,900 $201,867 $188,833 $175,800

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