Vermillion Inc

Income Statement
2010 - 2011

($000s)
Revenue
OV1
PAD
Total Revenue
growth

Cost of Revenue
Standard Cost
Std GM%

Total COS
Gross Profit
Operating Expenses
General & Administrative
growth in exp

Sales/Mktg
growth in exp

BK
Q1 10

Q1 10

Q2 10

Forecast
Q3 10
Q4 10

$0
$0
$0

$970
$0
$970

$2,426
$0
$2,426

$2,911
$0
$2,911

$3,396
$0
$3,396

0.0%

0.0%

150.0%

20.0%

16.7%

$146

$175

$204

Q1 11

100.0%
0.0%
100.0%

0.0%

Forecast
Q3 11
Q4 11

$6,128
$0
$6,128

$7,490
$0
$7,490

$8,511
$0
$8,511

$11,916
$0
$11,916

80.5%

22.2%

13.6%

40.0%

$368

$449

$511

$715

FY 2011

$34,046
$0
$34,046

$58

$0

$58

$146

$175

$204

$582

$368

$449

$511

$715

$2,043
$32,003

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

$0

$912

$2,280

$2,736

$3,192

$9,120

$5,761

$7,041

$8,001

$11,201

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

94.0%

$0

$1,735

$1,288

$1,310

$1,402

$5,735

34.1%

$1,857

$1,857

$1,857

$1,857

$7,429

0.0%

0.0%

-25.8%

1.7%

7.1%

59.1%

32.4%

0.0%

0.0%

0.0%

$0

$1,022

$1,271

$1,477

$1,634

32.1%

$2,385

$2,385

$2,385

$2,385

0.0%

0.0%

24.4%

16.2%

10.7%

$0

$1,439

$1,438

$1,416

$1,388

0.0%

0.0%

-0.1%

-1.5%

-2.0%

$0

$4,196

$3,997

$4,202

$4,425

$5,403
0.0%

$5,681
0.0%

$16,820

55.7%

46.0%

0.0%

0.0%

0.0%

33.8%

$1,310

$1,310

$1,310

$1,310

58.6%

-5.6%

0.0%

0.0%

0.0%

100.0%

$5,554

$5,553

$5,553

$5,553

29.5%

$9,541
76.6%

$5,241
-7.8%

$22,212

0.0%

0.0%

-4.7%

5.1%

5.3%

0.0%

25.5%

0.0%

0.0%

0.0%

Operating Income (Loss)

$0

($3,284)

($1,717)

($1,466)

($1,233)

($7,700)

$207

$1,488

$2,448

$5,648

$9,791

Other Income (Expense)

Net Income (Loss) Before Taxes

$0
$0

($160)
($3,444)

($147)
($1,864)

($147)
($1,614)

($147)
($1,380)

($602)
($8,301)

($147)
$60

($147)
$1,341

($147)
$2,301

($57)
$5,591

($499)
$9,292

Income Tax provision ( benefit)

Net Income (Loss) Before Taxes

$0
$0

$0
($3,444)

$0
($1,864)

$0
($1,614)

$0
($1,380)

$0
($8,301)

$0
$60

$0
$1,341

$0
$2,301

$0
$5,591

$0
$9,292

FS

100.0%
0.0%
100.0%

$2,043

0.0%

0.0%

250.9%

94.0%

94.0%

$582

Q2 11

$0

growth in exp
growth in exp

$9,703
$0
$9,703

0.0%

R&D / Clinical
Total Operating Expenses

FY 2010

33.4%
21.8%

43.0%
28.0%

23.6%
15.4%

100.0%

32.1%

Page 1

Vermillion Inc
Balance Sheet
2010 - 2011

($000s)
Assets
Current Assets
Cash & Cash Equivalents
Accounts Receivable
Prepaids and other
Total Current Assets

BK
Q1 10

Q1 10

Forecast
Q2 10
Q3 10

$34,954
$0
$673

$31,823
$485
$574

$29,123
$1,334
$768

$27,341
$1,789
$714

Q1 11

Forecast
Q2 11
Q3 11

$26,887
$1,296
$612

$25,151
$3,712
$578

$24,954
$5,601
$819

$17,233
$7,056
$892

$21,087
$9,486
$737

FY 2010

FY 2011

$35,627

$32,882

$31,225

$29,844

$28,795

$29,441

$31,375

$25,181

$31,310

Net Plant & Equipment

$226

$238

$160

$105

$76

$49

$28

$7

$0

Other long-term Assets

$83

$83

$23

$23

$23

$23

$23

$23

$23

Total Assets

$35,936

$33,203

$31,408

$29,972

$28,894

$29,513

$31,425

$25,211

$31,333

Liabilities & Owners' Equity

Current Liabilities
Accounts Payable
Accrued Liabilities
Accrued Payroll and Related
Total Current Liabilities

$1,231
$830
$104
$2,165

$1,679
$887
$149
$2,715

$1,485
$872
$269
$2,626

$1,444
$827
$383
$2,654

$1,479
$833
$495
$2,807

$1,886
$862
$242
$2,990

$1,983
$802
$362
$3,147

$1,974
$829
$473
$3,275

$1,944
$772
$589
$3,304

Convertible Senior notes, net

Long term debt to Quest
Total Liabilities

$9,100
$6,000
$17,265

$9,100
$6,000
$17,815

$9,100
$6,000
$17,726

$9,100
$6,000
$17,754

$9,100
$6,000
$17,907

$9,100
$6,000
$18,090

$9,100
$6,000
$18,247

$0
$6,000
$9,275

$0
$6,000
$9,304

Owner/Stockholder Equity
Common Stock
Additional paid in Capital
Deferred Stock-based Compensation
Accumulated comprehensive income
Retained Earnings - prior years
Current Year Income (loss)
Total Owners' Equity
Total Liabilities & Equity

$7
$7
$7
$7
$7
$286,616 $286,616 $286,616 $286,616 $286,616
$3,153
$3,312
$3,472
$3,620
$3,770
$239
$239
$239
$239
$239
($271,344) ($271,344) ($271,344) ($271,344) ($271,344)
$0
($3,444)
($5,307)
($6,921)
($8,301)
$18,672
$15,387
$13,683
$12,218
$10,987
$35,936

$33,203

$31,408

$29,972

$7
$7
$7
$7
$286,616 $286,616 $286,616 $286,616
$4,146
$4,561
$5,017
$5,519
$239
$239
$239
$239
($279,645) ($279,645) ($279,645) ($279,645)
$60
$1,400
$3,701
$9,292
$11,424
$13,179
$15,936
$22,029

$28,894

$29,513

FS

$31,425

$25,211

$31,333

Page 2

Vermillion Inc
Cash Flow Statement
2010 - 2011

($000s)
Cash flows from operating activities
Net Income (Loss)
Adjustments:
Depreciation & Amortization
Stock-based Compensation
Change in Operating Assets:

Accounts Receivable
Prepaids & Other Current Assets
Other Assets
Accounts Payable
Accrued Liabilities
Accrued payroll & related

BK
Q1 10

$0

Q1 10

($3,444)

($1,864)

Forecast
Q3 10

($1,614)

Q4 10

($1,380)

$0

$78

$77

$55

$29

$0

$159

$159

$149

$150

Cash from Operations

$0
$0
$0
$0
$0
$0
$0

($485)
$99
$0
$448
$57
$45
($3,042)

Investing:
Purchase of PP&E
Cash from Investing

$0
$0

($90)
($90)

$0
$0
$0
$0
$0
$0
$0
$0

Financing:
Payoff 4.5% & 7% Notes plus interest
Payment of BK adm & Prof Comp claims
Payment of BK interest on Notes
Payment of BK interest on Quest Loan
Payment of BK general unsecured claim
Repayment of DIP loan
Sale of Stock
Cash from Financing

Q2 10

($2,507)
($11,500)
($1,073)
($340)
($2,000)
($1,509)
$50,000
$31,071

FY 2010

($8,301)

Q1 11

Q2 11

$60

$1,341

$21

$7

$456

$502

($0)
($0)

($0)
($0)

($90)
($90)

$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

$0
$0
$0
$0
$0
$0
$0
$0

$31,071

($3,131)

($2,700)

($1,782)

$3,883
$34,954

$34,954
$31,823

$31,823
$29,123

$29,123
$27,340

($454)
$27,340
$26,887

$76
$1,749

$22

$0
$0

Beginning Cash & Equiv. Balance

Ending Cash & Equiv. Balance

$9,292

$415

$493
$102
$0
$35
$6
$112
($454)

($2,416)
$34
$0
$407
$29
($253)
($1,736)

($8,067)

($1,736)

$3,883
$26,887

$26,887
$25,151

FS

($1,889)
($241)
$0
$96
($60)
$120
($197)

($197)
$25,151
$24,954

($1,455)
($73)
$0
($9)
$27
$111
$1,378

$0
$0

($9,100)
$0
$0
$0
$0
$0
$0
($9,100)

FY 2011

$5,591

$27

($455)
$54
$0
($41)
($45)
$114
($1,782)

Increase/(Decrease) in Cash

$2,301

Q4 11

$377

$240
$617
$0
($1,296)
$61
$60
$248
$3
$391
($7,977)

($849)
($194)
$60
($194)
($15)
$120
($2,700)

Forecast
Q3 11

($2,430)
$155
$0
($30)
($57)
$116
$3,854

$0
$0

$0
$0
$0
$0
$0
$0
$0
$0

($8,190)
($125)
$0
$465
($61)
$93
$3,300

$0
$0

($9,100)
$0
$0
$0
$0
$0
$0
($9,100)

($7,722)

$3,854

($5,800)

$24,954
$17,232

$17,232
$21,087

$26,887
$21,087

Page 3