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┬áVusion – Financial Model

LABELS

Company name to be used on all statements Vusion, Inc.
Date projections first begin July 1, 1999
Name of 1st product line Analyzer
Name of 2nd product line Analyzer Royalties
Name of 3rd product line Sensor Chips
Name of 4th product
Name of department to be included in COGS Manufacturing
Name of 1st department to be included in operating expenses R&D
Name of 2nd department to be included in operating expenses Sales & Marketing
Name of 3rd department to be included in operating expenses Administration

 

SALES

Sensor Chips Sold per Analyzer per year 82

 

UNIT SALES FY 2000 FY 2001 FY 2002 FY 2003 FV 2004 FY 2005
Analyzer Royalties (OEM Analyzer units sold) 50 150 300 600 1,000
Sensor-Chips 1,052 10,195 41,000 90,200 172,700

 

AVERAGE UNIT PRICE FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
Analyzer Royalties 4,800 4,800 4,800 4,800 4,800
Sensor Chips 250 250 250 250 250

 

CONTRACT AND GRANT REVENUES

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
SBIR Grants 300,000
NIST ATP Grants 1,000,000
Contract Revenue*** 3,750,000 12,750,000 12,750,000 12,750,000 9,000,000

***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 COST FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
Sensor Chips 6.25 5.50 5.20 5.00 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

 

DEPRECIATION Hardware Software Furn & Fixtures
Heavy Manufacturing & Research 5 years
Manufacturing 5 years 3 years 5 years
R&D 3 years 3 years 5 years
Sales & Marketing 3 years 3 years 5 years
Administration 5 years 3 years 5 years

 

EXPENSES

HEADCOUNT FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
Manufacturing 2 7 13 14 15 15
R&D 5 24 26 28 30 30
Sales & Marketing 1 8 9 9 9 9
Admunstration 5 11 13 13 13 13
TOTAL 13 50 61 64 67 67

 

SPONSORED RESEARCH AGREEMENTS FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
University of Texas 750,000 750,000

 

PER PERSON EXPENSES Supplies Travel & Meals Phone/Postage
Manufacturing 300 300 250
R&D 4,000 300 250
Sales & Marketing 500 3,000 1,000
Administration 400 800 500

 

EQUIPMENT PURCHASES Hardware Software Furn & Fixtures
Manufacturing 3,500 2,000 1,500
R&D 30,000 2,000 1,500
Sales & Marketing 2,500 1,000 1,500
Administration 2,500 1,000 1,500

 

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 Contents Appendices
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
All information herein is confidential and belongs to Vusion, Inc.

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