10% 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 6 8 10 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 5 1 1 1 0 0 0 0 0 0 0 0 0 14 1 0 0 0 0 0 0 0 0 0 0 14 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  $  21,000  $ 28,000  $ 35,000  $        -    $        -    $        -    $ 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  $ 50,000  $ 10,000  $ 10,000  $ 10,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $140,000  $ 10,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $140,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -  
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  $  81,000  $ 28,000  $ 35,000  $        -    $        -    $        -    $ 10,500  $        -    $        -    $        -    $ 10,500  $        -    $   3,500  $ 17,000  $        -    $ 50,000  $        -    $        -    $        -    $        -    $300,000  $ 50,000  $ 10,000  $ 10,000  $ 10,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $140,000  $ 10,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $140,000  $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -    $        -  
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         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250          2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250         2,250          2,250         2,250         2,250                -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
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            972            972            972            972            972            972            972            972            972            972            972            972            972            972            972            972            972              972            972            972            972            972            972            972            972            972            972            972            972            972            972              972            972            972            972            972                -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 6                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 7                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 8                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 9            292            292            292            292            292            292            292            292            292            292            292            292            292              292            292            292            292            292            292            292            292            292            292            292            292            292            292              292            292            292            292            292            292            292            292            292                -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 10                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 11                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 1  Month 12                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 1            292            292            292            292            292            292            292            292            292              292            292            292            292            292            292            292            292            292            292            292            292            292            292              292            292            292            292            292            292            292            292            292            292            292            292              292                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 2                -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 3               97               97               97               97               97               97               97                97               97               97               97               97               97               97               97               97               97               97               97               97               97                97               97               97               97               97               97               97               97               97               97               97               97                97               97               97                -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 4            472            472            472            472            472            472              472            472            472            472            472            472            472            472            472            472            472            472            472            472              472            472            472            472            472            472            472            472            472            472            472            472              472            472            472            472                -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 5                -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 6         1,389         1,389         1,389         1,389          1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389          1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389          1,389         1,389         1,389         1,389         1,389         1,389                -                  -                  -                  -                  -                  -  
Year 2  Month 7                -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 8                -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 9                -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 10                 -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 2  Month 11         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333          8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333          8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333         8,333                -  
Year 2  Month 12         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389          1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389          1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389         1,389
Year 3  Month 1            278            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278
Year 3  Month 2            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278
Year 3  Month 3            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278
Year 3  Month 4                -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 5                -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 6                -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 7                -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 8                -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 9                -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 10                -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 11                -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 12                 -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 1         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889          3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889
Year 4  Month 2            278            278            278            278            278            278            278            278            278            278              278            278            278            278            278            278            278            278            278            278            278            278
Year 4  Month 3                -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 4                -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 5                -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 6                -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 7                -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 8                -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 9                -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 10                -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 11                -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 4  Month 12                 -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 5  Month 1         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889         3,889
Year 5  Month 2                -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 5  Month 3                -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 5  Month 4                -                  -                  -                  -                  -                  -                  -                  -  
Year 5  Month 5                -                  -                  -                  -                  -                  -                  -  
Year 5  Month 6                -                  -                  -                  -                  -                  -  
Year 5  Month 7                -                  -                  -                  -                  -  
Year 5  Month 8                -                  -                  -                  -  
Year 5  Month 9                -                  -                  -  
Year 5  Month 10                -                  -  
Year 5  Month 11                -  
Year 5  Month 12
Total Depreciation Expense            -         5,139      14,417     16,667     17,444     18,417     18,417     18,417     18,417     18,708     18,708     18,708     18,708     19,000     19,000     19,097     19,569     19,569     20,958     20,958     20,958     20,958      20,958     29,292     30,681     30,958     31,236     31,514     31,514     31,514     31,514     31,514     31,514     31,514     31,514     31,514      31,514     30,264     21,264     19,014     18,236     17,264     17,264     17,264     17,264     16,972     16,972     16,972      16,972     20,569     20,569     20,472     20,000     20,000     18,611     18,611     18,611     18,611     18,611     10,278
Accumulated Depreciation            -         5,139      19,556     36,222     53,667     72,083     90,500   108,917   127,333   146,042   164,750   183,458   202,167   221,167   240,167   259,264   278,833   298,403   319,361   340,319   361,278   382,236    403,194   432,486   463,167   494,125   525,361   556,875   588,389   619,903   651,417   682,931   714,444   745,958   777,472   808,986    840,500   870,764   892,028   911,042   929,278   946,542   963,806   981,069   998,333 ######## ######## ######## ######### ######## ######## ######## ######## ######## ######## ######## ######## ######## ######## ########