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Vusion, Inc.
Financial Model: Assumptions

LABELS

Company name to be used on all statementsVusion, Inc.
Date projections first beginJuly 1, 1999
Name of 1st product lineAnalyzer
Name of 2nd product lineAnalyzer Royalties
Name of 3rd product lineSensor Chips
Name of 4th product 
Name of department to be included in COGSManufacturing
Name of 1st department to be included in operating expensesR&D
Name of 2nd department to be included in operating expensesSales & Marketing
Name of 3rd department to be included in operating expensesAdministration

SALES

Sensor Chips Sold per Analyzer per year82

UNIT SALESFY 2000FY 2001FY 2002FY 2003FV 2004FY 2005
Analyzer Royalties (OEM Analyzer units sold)-501503006001,000
Sensor-Chips-1,05210,19541,00090,200172,700

AVERAGE UNIT PRICEFY 2000FY 2001FY 2002FY 2003FY 2004FY 2005
Analyzer Royalties-4,8004,8004,8004,8004,800
Sensor Chips 250250250250250

CONTRACT AND GRANT REVENUES

 FY 2000FY 2001FY 2002FY 2003FY 2004FY 2005
SBIR Grants300,000-----
NIST ATP Grants-1,000,000----
Contract Revenue***-3,750,00012,750,00012,750,00012,750,0009,000,000
***Two contract revenue sources are assumed in the model. $15MM in July 2000 over 4 years and $45MM in July 2001 over 5 years. In addition, margins on Contract Revenue are at 5%.

COST OF GOODS

AVERAGE UNIT COSTFY 2000FY 2001FY 2002FY 2003FY 2004FY 2005
Sensor Chips-6.255.505.205.00 4.90

Returns(as a percentage of Sensor Chips revenue)5%
Returns(as a percentage of revenue)0%
Royalties to University(as a percentage of OEM Royalties and Sensor Chip Revenues)8%

BALANCE SHEET

Accounts Receivable (adjustable up to 360 days)(in days)60 days
Accounts Payable (fixed at 30 days)(in days)30 days
Salaries Payable (fixed at 15 days)(in days)15 days
Taxes Payable (fixed at 90 days)(in days)90 days
Inventory (adjustable up to 360 days)(in days)180 days
Available Credit Line(as a percentage of net accounts receivable)65%
Maximum Credit Line Used(amount borrowed not to exceed)$2,000,000
Capital Equipment Lease Term (1 year minimum)(in years)3 years
Long Term Borrowings Term (1 year minimum)(in years)5 years

DEPRECIATIONHardwareSoftwareFurn & Fixtures
Heavy Manufacturing & Research5 years   
Manufacturing 5 years3 years5 years
R&D 3 years3 years5 years
Sales & Marketing 3 years3 years5 years
Administration 5 years3 years5 years

EXPENSES

HEADCOUNTFY 2000FY 2001FY 2002FY 2003FY 2004FY 2005
Manufacturing2713141515
R&D52426283030
Sales & Marketing189999
Admunstration51113131313
TOTAL135061646767

SPONSORED RESEARCH AGREEMENTSFY 2000FY 2001FY 2002FY 2003FY 2004FY 2005
University of Texas750,000750,000    

PER PERSON EXPENSESSuppliesTravel & MealsPhone/Postage
Manufacturing 300 300 250
R&D 4,000300 250
Sales & Marketing500 3,0001,000
Administration 400 800 500

EQUIPMENT PURCHASESHardwareSoftwareFurn & Fixtures
Manufacturing 3,500 2,0001,500
R&D 30,0002,0001,500
Sales & Marketing2,500 1,0001,500
Administration 2,500 1,0001,500

Benefits & Taxes(as a percentage of salaries)25%
Salary Increases(as an annual percentage)5%
Sales Commissions(as a percentage of sales)5%
Total Sales Through Commissions(as a percentage of total revenue)100%
Business Insurance(as a percentage of total revenue)1%
Anticipated Bad Debt (as a percentage of collections)1%
Interest Revenue(as a percentage of cash balance)3.5%
Interest Expense On Credit Line (as a percentage of outstanding balance)8.5%'
Interest Expense On Capital Equipment Lease (as a percentage of outstanding balance)8.5%
Interest Expense On Long Term Borrowings (as a percentage of outstanding balance)8.5%
Combined Federal & State Tax Rate (as a percentage of positive cumulative income)40%
Office Rent (per square foot)$1.00
Minimum Office Space(square footage per person)150 sq ft
Term of Office Lease (in months)72 mos
Manufacturing Rent(per square foot)$1.00
Minimum Manufacturing Space(square footage per person)150 sq ft
Term of Facilities Lease(in months)72 mos
Utilities Expense(per square foot)$0.20
Maintenance Expense(per square foot)$0.05


Vusion, Inc.
Table of ContentsAppendices
0. Executive Summary
1. The Problem
2. The Solution
3. Vusion Provides the Solution
4. Market Analysis
5. Marketing Strategy
6. Manufacturing Strategy
Financial Model: Assumptions
Income Statement
Balance Sheet
Statement of Cashflow
Resumes
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