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                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
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                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 1                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 2                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
Year 3  Month 3                -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
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         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778          2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778
Year 4  Month 2                -                  -                  -                  -                  -                  -                  -                  -                  -                  -                   -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -                  -  
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         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778         2,778
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     16,569     17,347     18,125     18,125     18,125     18,125     18,417     18,417     18,417     18,417     18,708     18,708     18,806     19,278     19,278     20,667     20,667     20,667     20,667      20,667     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000     29,000      29,000     26,639     17,361     15,208     14,431     13,653     13,653     13,653     13,653     13,361     13,361     13,361      13,361     15,847     15,847     15,750     15,278     15,278     13,889     13,889     13,889     13,889     13,889      5,556
Accumulated Depreciation            -         5,139      19,556     36,125     53,472     71,597     89,722   107,847   125,972   144,389   162,806   181,222   199,639   218,347   237,056   255,861   275,139   294,417   315,083   335,750   356,417   377,083    397,750   426,750   455,750   484,750   513,750   542,750   571,750   600,750   629,750   658,750   687,750   716,750   745,750   774,750    803,750   830,389   847,750   862,958   877,389   891,042   904,694   918,347   932,000   945,361   958,722   972,083    985,444 ######## ######## ######## ######## ######## ######## ######## ######## ######## ######## ########