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VeriType
Financial Projections

Income Statement

Year One Year Two Year Three
Sales (a)
Software - 3,262,500 12,112,500
Support - 435,000 1,610,000
Education - 326,250 1,207,500
Maintenance & Licensing - - 489,375
Total Sales - 4,023,750 15,419,375
Cost of Goods Sold (b) - 30,015 101,430
Gross Profit - 3,995,040 15,322,775
Operating Expenses
Wages (c) 287,083 499,500 572,350
Research & Development (c) 375,000 460,000 485,000
Business Partner Fees - 1,609,500 6,167,750
Marketing Support (d) 126,000 382,000 430,000
Rent (e) 72,000 72,000 72,000
Payroll Tax Expense 185,383 139,860 160,258
Total Operating Expenses 1,045,467 3,162,860 7,887,358
Other Expenses
Interest Expense (f) 24,232 20,040 15,268
Depreciation Expense (g) 16,217 25,849 28,886
Other SG&A (e) 205,900 425,005 989,155
Total Other Expenses 246,350 470,894 1,033,309
Net Income (1,291,816) 361,286 6,402,108

Referring Schedules
a) Sales Forecast and Schedule of Revenues
b) Sales Forecast and COGS
c) Personnel
d) Marketing
e) Admin
f) Debt
g) Depreciation
** VeriType is an LLC, therefore income taxes will flow through to the company investors.

Balance Sheet

Year One Year Two Year Three
Assets:
Current Assets
Cash 418,102 946,707 6,731,605
Accounts Receivable (a) - 530,164 1,100,896
Inventory (b) - 7,178 31,403
Total current assets: 418,102 1,484,048 7,863,903
Property, Plant and Equipment (c) 77,200 113,725 129,500
Less: Accumulated depreciation 16,217 42,067 69,119
Net property, plant and equipment 60,983 71,658 60,381
Total assets: 479,085 1,555,706 7,924,284
Liabilities and Stockholders' Equity
Current liabilities
Notes payable (d) 34,568 39,339 44,769
Accounts payable (e) 1,276 1,179 1,195
Total current liabilities 35,844 40,519 46,964
Long-term liabilities 135,057 95,718 50,949
Total liabilities: 170,901 136,237 96,913
Stockholders' equity
Partners Capital (f) 1,600,000 2,350,000 2,350,000
Accumulated Capital (1,291,816) (930,530) 5,477,371
Partners' Retained Capital 308,184 1,419,470 7,827,371
Total liabilities and stockholders' equity 479,085 1,555,706 7,924,284

Notes and Referring Schedules
a) Assumes 30/60/90 day collections of 40%/40%/20% and includes bad debt writeoff of 3%
b) COGS
c) Property
d) Debt
e) Assumes 30/60/90 day payments of 33%/33%/33%
f) Capital

Statement of Cash Flows

Cash Flows From Operations Year One Year Two Year Three
Net income (1,291,816) 361,286 6,402,108
Adjustments to reconcile net income to
Cash Provided by Operations
Depreciation 16,217 25,849 28,886
Decrease (increase) in Operating Assets
Accounts receivable - (530,164) (570,732)
Inventory - (7,178) (24,225)
Total Cash Flows From Operations (1,275,599) (150,206) 5,836,037
Cash Flows From Investing Activities
Purchase of equipment (75,924) (36,622) (15,759)
Total Cash Flows From Investing Activities (75,924) (36,622) (15,759)
Cash Flows From Financing Activities
Borrowing of long-term debt 200,000    
Repayment of long-term debt (30,375) (34,568) (39,339)
Sales of stock 1,600,000 750,000  
Total Cash Flows From Financing Activities 1,769,625 715,432 (39,339)
Net Cash Flows 418,102 528,605 5,780,939
Cash, End of Period 418,102 946,707 6,731,605

VeriType
Table of ContentsAppendices
1. Executive Summary
2. Company Description
3. Industry Analysis
4. Target Market
5. Competition
6. Marketing and Sales Strategy
7. Operations
8. Management
9. Exit Strategy
10. Financial Projections
Organization Chart
Income Statement
Balance Sheet
Summary of Cash Flow
Sales Forecast & Revenues
Marketing Support Costs
Personnel Costs
Cost of Goods Sold
Property & Depreciation
Capital & Debt
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