EFTA01120673.pdf

Seed Financial Projections (v2) For the years ending Dec 31 Y1 Y2 Y3 Y4 Y5 Industry Revenues 3,000,000 6,000,000 12,000,000 24,00%000 48,000,000 Cost of Services 1,426,000 2,777,250 5,502,578 10,856,497 21,467,238 Gross Profit 1 574 000 3 222 750 6,497,423 13 143 03 26 532 762 52.5% 53.7% 54.1% 542% 55.3% 55-65% Sales & Marketing 637,500 1,067,813 1,921,622 3,457,369 5,715,356 General & Admin 389,000 773,500 1,362,599 2,319,648 3,418,330 R&D 180,000 360,000 1,125,000 2,250,000 7,260,000 1.206.500 2,201,313 4,409,221 8,027,016 16,393,686 Operating Income 367,500 1,021,438 2,088,201 5,116,487 10,139,076 12.3% 17.0% 17.4% 21.3% 21.1% 16-21% Revenues Number of contracts 20 30 48 80 120 Average contract size $ 150.000 00 S 200.000 00 s 250.000.00 $ 300,000.00 $ 400,000.00 5 3,000,000.00 5 6,000,000.00 5 12,000,000.00 $ 24,000,000.00 $ 48,000,000.00 Cost of Services Partner Ave Rate $ 500.00 $ 525.00 $ 551.25 $ 578.81 $ 607.75 Director Ave Rate 300.00 $ 315.00 $ 330.75 $ 347.29 $ 364.65 Senior Associate Ave Rate 200.00 $ 210.00 $ 220.50 $ 231.53 $ 243.10 Associate Ave Rate 100.00 $ 105.00 $ 110.25 115.76 $ 121.55 Partner Ave % 12.5% 10.0% 7.5% 5.0% 2.5% Director Ave % 2.5% 5.0% 7.5% 10.0% 12.5% Senior Associate Ave % 60.0% 62.5% 65.0% 67.5% 70.0% Associate Ave % 25.0% 22.5% 20.0% 17.5% 15.0% 100.0% 100.0% 100.0% 100.0% 100.0% Partner Ave Billed/Contract $ 18,750 $ 20,000 $ 18,750 $ 15,000 $ 10,000 Director Ave Billed/Contract $ 3,750 $ 10,000 $ 18,750 $ 30,000 $ 50,000 Sr Associate Ave Billed/Contract $ 90,000 $ 125,000 $ 162,500 $ 202,500 $ 280,000 Associate Ave Billed/Contract $ 37,500 $ 45,000 $ 50,000 $ 52,500 $ 60,000 Partner Ave Hours/Contract 37.5 38.1 34.0 25.9 16.5 Director Ave Hours/Contract 12.5 31.7 56.7 86.4 137.1 Sr Associate Ave Hours/Contract 450.0 595.2 737.0 874.6 1,151.8 Associate Ave Hours/Contract 375.0 428.6 453.5 453.5 493.6 Partner Billed Hours 750 1,143 1,633 2,073 1,974 Director Billed Hours 250 952 2,721 6,911 16,454 Sr Associate Billed Hours 9,000 17,857 35,374 69,971 138,214 Associate Billed Hours 7,500 12,857 21,769 36,281 59,235 Total Billable Hours 17,500 32,810 61,497 115,236 215,877 Revenue/Billable Hour $ 171 $ 183 $ 195 $ 208 $ 222 Billable Hours/Year/Billable Employee 1,380 1,380 1,380 1,380 1,380 Partners Required 0.5 0.8 1.2 1.S 1.4 Directors Required 0.2 0.7 2.0 5.0 11.9 Sr Associates Required 6.5 12.9 25.6 50.7 100.2 Associates Required 5.4 9.3 15.8 26.3 42.9 Billable Employees Required 12.7 23.8 44.6 83.5 156.4 Partners Required- Rounded Up - 1.0 2.0 2.0 2.0 Directors Required - Rounded Up 1.0 1.0 2.0 6.0 12.0 Sr Associates Required - Rounded Up 7.0 13.0 26.0 51.0 101.0 Associates Required - Rounded Up 6.0 10.0 16.0 27.0 43.0 Billable Employees Required - Rounded Up 14 25 46 86 158 Revenues/Billable Employee Rounded $ 214,286 $ 240,000 $ 260,870 $ 279,070 $ 303,797 5250K (Avg • 5259K) Ave Partner Salary $ 200,000 $ 210,000 $ 220,500 $ 231,525 $ 243,101 Ave Director Salary $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 Ave Sr Associate Salary $ 100,000 $ 105,000 $ 110,250 S 115,763 $ 121,551 Ave Associate Salary $ 65,000 $ 68,250 $ 71,663 $ 75,246 $ 79,008 Partner Salaries $ - $ 210,000 $ 441,000 $ 463,050 $ 486,203 Director Salaries $ 150,000 $ 157,500 $ 330,750 $ 1,041,863 $ 2,187,911 Sr Associate Salaries $ 700,000 $ 1,365,000 $ 2,866,500 $ 5,903,888 $ 12,276,613 Associate Salaries $ 390,000 $ 682,500 $ 1,146,600 $ 2,031,632 $ 3,397,340 Cost of Time -Net 5 1,240,000 $ 2,415,000 $ 4,784,850 $ 9,440,432 $ 18,348,067 Cost of Time - Gross $ 1 426 000 $ 2,777,250 $ 5,502,578 $ 10,856,497 $ 21,467,238 Expenses Sales & Marketing 1- Confidential EFTA01120673  Sales Salespeople Contracts/Salesperson 10.0 10.0 10.0 10.0 10.0 Salespeople 2.0 3.0 4.8 8.0 12.0 Salespeople - Rounded Up 2.0 3.0 5.0 8.0 12.0 Salesperson salary $ 125,000.00 $ 131,250.00 $ 137,812.50 $ 144,703.13 $ 151,938.28 Salespeople salaries -Net $ 250,000.00 5 393 75000 5 689062 50 $ 1 157 625 00 $ 1 23 25938 Salespeople salaries -Gross $ 287,500.00 $ 452,812.50 $ 792,421.88 $ 1,331,268.75 $ 2,096,748.28 Commissions Commission % 2% 2% 2% 2% 2% Commissions Total $ 60,000.00 $ uo,000.00 $ 240,000.00 5 480,000.00 $ 960,000.00 Commissions/salesperson $ 30,000.00 $ 40,000.00 $ 48,000.00 $ 60,000.00 $ 80,000.00 Ave package $ 155,000.00 $ 171,250.00 $ 185,812.50 $ 204,703.13 $ 231,938.28 T&E Ave T&E/contract $ 10,000.00 $ 10,500.00 $ 11,025.00 $ 11,576.25 $ 12,155.06 Total TM $ 200,000.00 $ 315,000.00 $ 529,200.00 $ 926,100.00 $ 1,458,60730 Marketing % of Sales 3.0% 3.0% 3.0% 3.0% 2.5% Total Marketing $ 90,000.00 $ 180,000.00 $ 360,000.00 $ 720,000.00 $ 1,200,000.00 $ 637,500.00 $ 1,067,812.50 5 1,921,621.88 5 3,457,368.75 $ 5 715 355.78 21% 18% 16% 14% 12% General & Admin Management (Non-Billable) President/COO (Partner) $ - S 210,000.00 $ 220,500.00 S 231,525.00 S 243,101.25 CFO (Partner) $ 200,000.00 S 210,000.00 $ 220,500.00 5 231,525.00 5 243,101.25 CTO (Partner) $ - S - $ 220,500.00 5 231,525.00 5 243,101.25 Director of Business Development (Director) $ - S - $ - 5 173,643.75 $ 182,325.94 Director of HR (Director) $ - S - $ - 5 173,643.75 $ 182,325.94 Director of Legal Affairs (Director) $ - $ - $ - $ $ 182,325.94 $ 200,000.00 $ 420,000.00 $ 661500.00 $ 1,041,862.50 5 1,276,281.56 Total Management -Gross $ 230,000.00 $ 483,000.00 $ 760,725.00 $ 1,198,141.88 $ 1,467,723.80 G&A Personnel (Non-Billable) Associates 1 2 3 Total $ 5 - $ 71,663 $ 150,491 $ 237,024 Total G&A Personnel -Gross $ $ - $ 82,412 $ 173,065 $ 272,577 Rent Total employees 17 30 55 101 179 Square feet/employee 175 175 175 175 175 150-200 Total Square feet 2,975 5.250 9.625 17,675 31,325 Ave psf $ 40.00 $ 42.00 5 44.10 5 46.31 $ 48.62 Total rent $ 119,000 $ 220,500 $ 424,463 $ 818,441 $ 1,523,029 4.0% 3.7% 3.5% 3.4% 3.2% Professional Services & Insurance $ 30,000 $ 50 000 5 65 000 5 80 000 $ 95,000 Office/IT $ 10,000 $ 20,000 $ 30,000 $ 50,000 $ 60,000 $ 389,000.00 5 773,500.00 5 1,362,599.38 5 2.319.647.69 S 3,418,330.40 13% 13% 11% 10% 7% R&D Basic Research $ 35,000.00 $ 52,500.00 $ 157,500.00 $ 315,000.00 945,000.00 New Services Development & Training $ 145,000.00 $ 217,500.00 $ 652,500.00 $ 1,305,000.00 3,915,000.00 Licensing & Business Development $ 90,000.00 $ 315,000.00 5 630,000.00 $ 2,400,000.00 $ 180.000.00 S 360.00000 S 1,125.00000 S 2,250,000.00 S 7,260,000.00 6% 6% 9% 9% 15% Billable Employees/Total Employees 82% 83% 84% 85% 88% 80-85% 2 Confidential EFTA01120674