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ClearSky Systems, Inc.

2008 Balance Sheet

Assets
Current Assets
Cash $3,097
Accounts Receivable $-
Total Current Assets $3,097
Property and Equipment (net) $6,000
Total Assets $9,097

Liabilities and Shareholders' Equity


Current Liabilities $9,097
Long-Term Debt $-
Shareholders' Equity
Common Stock $-
Preferred Stock $-
Retained Earnings $-
Total Equity $-
Total Liabilities and Equity $9,097
ClearSky Systems, Inc.
2008 Income Statement

Total Revenue $753


Access Codes $753

Total Expenses $60,400


Payroll (After Tax) $55,000
Travel $5,000
Office $100
Marketing $300
Interest $-

Total Net Income $(59,647)

Gross Margin n/a


ClearSky Systems, Inc.
5 Year Income Statement

2009 2010 2011 2012 2013


Total Revenue $68,100 $1,181,970 $4,865,790 $11,563,560 $21,282,360
Access Codes $68,100 $1,181,970 $4,865,790 $11,563,560 $21,282,360

Total Expenses $296,260 $1,715,845 $3,597,437 $5,850,879 $7,994,064


Total Operating Expenses $285,196 $1,558,796 $3,000,626 $4,477,689 $5,509,848
% of Revenue 418.8% 131.9% 61.7% 38.7% 25.9%
Payroll (After Tax) $216,792 $1,374,338 $2,777,852 $4,192,899 $5,231,172
Travel $5,676 $34,416 $51,624 $86,040 $86,040
Office $34,917 $234,041 $694,912 $1,508,190 $2,617,752
Cost of Revenue1 $11,064 $157,050 $596,812 $1,373,190 $2,484,216
Office - Other $23,853 $76,992 $98,100 $135,000 $133,536
Marketing $29,575 $59,100 $59,100 $59,100 $59,100
Interest $9,300 $13,950 $13,950 $4,650 $-

Net Income Before Taxes $(228,160) $(533,875) $1,268,353 $5,712,681 $13,288,296

Taxes $- $- $443,924 $1,999,438 $4,650,904

Net Income (Loss) $(228,160) $(533,875) $824,429 $3,713,243 $8,637,393


% of Revenue -335.0% -45.2% 16.9% 32.1% 40.6%

Comprised of Server and Credit Card Transaction fees associated with student access codes.
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ClearSky Systems, Inc.
5 Year Income Statement (For Business Plan)

2009 2010 2011 2012 2013


Total Revenue $68,100 $1,181,970 $4,865,790 $11,563,560 $21,282,360

Cost of Revenue1 $11,064 $157,050 $596,812 $1,373,190 $2,484,216


Gross Profit $57,036 $1,024,920 $4,268,978 $10,190,370 $18,798,144
Gross Margin 83.8% 86.7% 87.7% 88.1% 88.3%

Operating Expenses
Payroll (After Tax) $216,792 $1,374,338 $2,777,852 $4,192,899 $5,231,172
Travel $5,676 $34,416 $51,624 $86,040 $86,040
Office $23,853 $76,992 $98,100 $135,000 $133,536
Marketing $29,575 $59,100 $59,100 $59,100 $59,100
Interest $9,300 $13,950 $13,950 $4,650 $-
Total Operating Expenses $285,196 $1,558,796 $3,000,626 $4,477,689 $5,509,848
% of Revenue 418.8% 131.9% 61.7% 38.7% 25.9%

Net Income Before Taxes $(228,160) $(533,875) $1,268,353 $5,712,681 $13,288,296

Taxes $- $- $443,924 $1,999,438 $4,650,904

Net Income $(228,160) $(533,875) $824,429 $3,713,243 $8,637,393


% of Revenue -335.0% -45.2% 16.9% 32.1% 40.6%

Comprised of Server and Credit Card Transaction fees associated with student access codes.
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ClearSky Systems, Inc.
Projected Statement of Cash Flow (For Business Plan)
January 2009 - December 2013

2009 2010 2011 2012 2013


Outside Investment $300,000 $1,250,000 $- $- $-

Loans $35,000 $- $- $- $-

Total Revenue $68,100 $1,181,970 $4,865,790 $11,563,560 $21,282,360

Total Expenses $296,260 $1,715,845 $3,597,437 $5,850,879 $7,994,064

Total Profit/Loss $(228,160) $(533,875) $1,268,353 $5,712,681 $13,288,296

Taxes $- $- $443,924 $1,999,438 $4,650,904

Total Cash On Hand $106,840 $822,965 $1,647,394 $5,804,560 $16,441,391


ClearSky Systems, Inc.
Projected Statement of Cash Flow
January 2009 - December 2009

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09


Outside Investment $- $- $- $- $300,000

Loans $- $- $- $- $35,000 $-

Total Revenue $- $- $6,750 $- $- $9,750

Total Expenses $290 $290 $537 $370 $17,030 $23,696

Total Profit/Loss $(290) $(290) $6,214 $(370) $(17,030) $(13,946)

Total Cash On Hand $(290) $(580) $5,634 $5,264 $23,233 $309,288


Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
$- $- $- $- $- $-

$- $- $- $- $- $-

$- $- $3,750 $- $- $47,850

$20,205 $38,605 $41,974 $41,881 $53,881 $57,501

$(20,205) $(38,605) $(38,224) $(41,881) $(53,881) $(9,651)

$289,083 $250,477 $212,254 $170,373 $116,491 $106,840


ClearSky Systems, Inc.
Projected Cash Flow Statement - Excluding Revenue
January 2009 - December 2009

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09


Outside Investment $- $- $- $- $- $300,000

Loans $- $- $- $- $35,000 $-

Total Revenue $- $- $- $- $- $-

Total Expenses $290 $290 $537 $370 $17,030 $23,696

Total Profit/Loss $(290) $(290) $(537) $(370) $(17,030) $(23,696)

Total Cash On Hand $(290) $(580) $(1,117) $(1,487) $16,483 $292,788


Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
$- $- $- $- $- $-

$- $- $- $- $- $-

$- $- $- $- $- $-

$20,205 $38,605 $41,974 $41,881 $53,881 $57,501

$(20,205) $(38,605) $(41,974) $(41,881) $(53,881) $(57,501)

$272,583 $233,977 $192,004 $150,123 $96,241 $38,740


ClearSky Systems, Inc.
Employees and Conventions

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80 80 80 80 0 0
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1 1 1 1 1 1

Explanation
In March 2009, ClearSky will opne an office to accommodate a full-time VP of Business Development (shown as Executive), and several other necessary hires.

Notes
All Expense/Revenue sheets link to this one for number of employees. Changes made here will cascade to the others.
Assuming we do 1 convention per month starting in June 2009, when we obtain outside financing.
Assuming we do 3 conventions per month starting in January 2010.
Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4
120 120 120 160 160 160 200 200 200 200 0 0 240 240 240 280 280 280 320 320 320 320
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4
0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3
3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
0 0 360 360 360 400 400 400 440 440 440 440 0 0 480 480 480 520 520
4 4 4 4 4 4 4 6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
4 4 4 4 4 4 4 6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
ClearSky Systems, Inc.
5 Year Revenue Projections

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80 80
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1 1

New Instructors 10 10 10 10 40 2 2 190 160 160 290 290 335 485 485
From Sales Calls 10 10 10 10 10 2 2 10 10 10 10 10 55 55 55
From Campus Representatives 0 0 0 0 0 0 0 150 150 150 250 250 250 400 400
From Conventions 0 0 0 0 30 0 0 30 0 0 30 30 30 30 30

Total Instructors 45 45 65 65 65 25 25 125 319 319 319 929 929 929 2,039
Total Instructors (w/o Summer Adjustment) 45 45 65 65 65 125 125 125 319 319 319 929 929 929 2,039
Total Courses 90 90 130 130 130 50 50 250 638 638 638 1,858 1,858 1,858 4,078

ACCESS CODE SALES


Access Codes Sold Per Course 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
Total Access Codes Sold 0 0 450 0 0 650 0 0 250 0 0 3,190 0 0 9,290
Average Price $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Total Access Code Revenue, $ $- $- $6,750 $- $- $9,750 $- $- $3,750 $- $- $47,850 $- $- $139,350
2009 Rev: $68,100

Explanation
Assuming that all access code revenue is received at the end of the quarter.
Assuming that Executives generate 5 new instructors per month for 2009-2010 because ClearSky Executives will assume dual role over that period of time.
Based on discussions with potential customers throughout the country, ClearSky expects 45 instructors to use SpeakerBox in January 2009.
The Average Price per access code is based on ClearSky's current average selling price, as of April 1, 2009.

Assumptions Start Date


New Instructors From Sales Calls 5 per Executive, per Month Jan-09
20 per Salesperson, per Month Mar-09
20 per Salesperson, per Month Jan-10
5 per Campus Representative, per Month Aug-09

New Instructors From Conventions 30 per Month Jun-09


30 per Month Jan-10

Total Instructors 45 instructors as of January 2009 Jan-09

Aveage Courses Per Instructor 2 per Quarter Jan-09

Access Codes Sold Per Course 5 per Quarter until December 2009 Jun-09

Average Access Code Price $15 per Code Jan-09

Summer Adjustment (June and July) 20% of Normal Sales Level from Sales Calls and Conventions Jan-09

Notes
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
Some areas are blank because we assume all sales occur during first month of each quarter.
Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
80 80 0 0 120 120 120 160 160 160 200 200 200 200 0 0 240 240
1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

485 485 17 17 685 685 685 885 885 910 1,110 1,110 1,110 1,110 22 22 1,310 1,310
55 55 11 11 55 55 55 55 55 80 80 80 80 80 16 16 80 80
400 400 0 0 600 600 600 800 800 800 1,000 1,000 1,000 1,000 0 0 1,200 1,200
30 30 6 6 30 30 30 30 30 30 30 30 30 30 6 6 30 30

2,039 2,039 699 699 3,494 4,213 4,213 4,213 6,468 6,468 6,468 9,373 9,373 9,373 2,541 2,541 12,703 14,057
2,039 2,039 3,494 3,494 3,494 4,213 4,213 4,213 6,468 6,468 6,468 9,373 9,373 9,373 12,703 12,703 12,703 14,057
4,078 4,078 1,398 1,398 6,988 8,426 8,426 8,426 12,936 12,936 12,936 18,746 18,746 18,746 5,081 5,081 25,406 28,114

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
0 0 20,390 0 0 6,988 0 0 42,130 0 0 64,680 0 0 93,730 0 0 25,406
$15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
$- $- $305,850 $- $- $104,820 $- $- $631,950 $- $- $970,200 $- $- $1,405,950 $- $- $381,090
2010 Rev: $1,181,970
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
240 280 280 280 320 320 320 320 0 0 360 360 360 400 400 400 440 440
2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 6 6 6
2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 6 6 6
2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1,310 1,510 1,510 1,550 1,750 1,750 1,750 1,750 30 30 1,950 1,950 1,950 2,150 2,150 2,150 2,350 2,350
80 80 80 120 120 120 120 120 24 24 120 120 120 120 120 120 120 120
1,200 1,400 1,400 1,400 1,600 1,600 1,600 1,600 0 0 1,800 1,800 1,800 2,000 2,000 2,000 2,200 2,200
30 30 30 30 30 30 30 30 6 6 30 30 30 30 30 30 30 30

14,057 14,057 18,187 18,187 18,187 22,997 22,997 22,997 5,649 5,649 28,247 30,257 30,257 30,257 36,307 36,307 36,307 42,957
14,057 14,057 18,187 18,187 18,187 22,997 22,997 22,997 28,247 28,247 28,247 30,257 30,257 30,257 36,307 36,307 36,307 42,957
28,114 28,114 36,374 36,374 36,374 45,994 45,994 45,994 11,299 11,299 56,494 60,514 60,514 60,514 72,614 72,614 72,614 85,914

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
0 0 140,570 0 0 181,870 0 0 229,970 0 0 56,494 0 0 302,570 0 0 363,070
$15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
$- $- $2,108,550 $- $- $2,728,050 $- $- $3,449,550 $- $- $847,410 $- $- $4,538,550 $- $- $5,446,050
2011 Rev: $4,865,790 2012 Rev: $11,563,560
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4
440 440 0 0 480 480 480 520 520
6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2
6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1

2,350 2,350 30 30 2,550 2,550 2,550 2,750 2,750


120 120 24 24 120 120 120 120 120
2,200 2,200 0 0 2,400 2,400 2,400 2,600 2,600
30 30 6 6 30 30 30 30 30

42,957 42,957 10,001 10,001 50,007 52,617 52,617 52,617 60,467


42,957 42,957 50,007 50,007 50,007 52,617 52,617 52,617 60,467
85,914 85,914 20,003 20,003 100,014 105,234 105,234 105,234 120,934

5 5 5 5 5 5 5 5 5
0 0 429,570 0 0 100,014 0 0 526,170
$15 $15 $15 $15 $15 $15 $15 $15 $15
$- $- $6,443,550 $- $- $1,500,210 $- $- $7,892,550
2013 Rev: $21,282,360
ClearSky Systems, Inc.
5-Year Revenue Summary (For Business Plan)

2009 2010 2011 2012 2013


Total Instructors 114 1,970 8,110 19,273 35,471

Courses Per Instructor 8 8 8 8 8

Codes Sold Per Course 5 5 5 5 5

Average Price Per Code $15 $15 $15 $15 $15

Total Revenue $68,100 $1,181,970 $4,865,790 $11,563,560 $21,282,360


ClearSky Systems, Inc.
5 Year Projected Expenses

2009 2010 2011 2012 2013


Payroll (After Tax) $216,792 $1,374,338 $2,777,852 $4,192,899 $5,231,172
Travel $5,676 $34,416 $51,624 $86,040 $86,040
Office $34,917 $234,041 $694,912 $1,508,190 $2,617,752
Marketing $29,575 $59,100 $59,100 $59,100 $59,100
Interest $9,300 $13,950 $13,950 $4,650 $-

Total Expenses $296,260 $1,715,845 $3,597,437 $5,850,879 $7,994,064

Explanation
This sheet summarizes the Total Expenses ClearSky expects over the next 5 years. Each expense category is detailed in the other sections of this document.

Notes
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
ClearSky Systems, Inc.
Expenses - Payroll

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1

Sr. Salespeople $- $- $- $- $- $- $- $- $- $- $- $- $6,667 $6,667


Jr. Salespeople $- $- $- $- $- $- $- $- $- $- $- $- $2,917 $2,917
Campus Representatives $- $- $- $- $- $- $- $18,000 $18,000 $18,000 $30,000 $30,000 $30,000 $48,000
Sr. Developers $- $- $- $- $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Jr. Developers $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Receptionist $- $- $- $- $- $- $- $- $- $- $- $- $2,500 $2,500
Customer Service $- $- $- $- $- $- $- $- $- $- $- $- $2,917 $2,917
I.T. Support $- $- $- $- $- $- $- $- $- $- $- $- $5,000 $5,000
Accounting/Finance $- $- $- $- $- $- $- $- $- $- $- $- $4,167 $4,167
Legal $- $- $- $- $- $- $- $- $- $- $- $- $2,000 $2,000
Executives $- $- $- $- $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,750 $3,750

Payroll Expenses Before Taxes $- $- $- $- $12,000 $12,000 $12,000 $30,000 $30,000 $30,000 $42,000 $42,000 $69,417 $87,417

Payroll Taxes $- $- $- $- $849 $849 $849 $849 $849 $849 $849 $849 $2,793 $2,793

Payroll Expenses After Taxes $- $- $- $- $12,849 $12,849 $12,849 $30,849 $30,849 $30,849 $42,849 $42,849 $72,210 $90,210

Explanation
All the salaries listed below are average salaries taken from Salary.com and PayScale.com.
Assumptions Start Date
Sr. Salespeople $80,000 per year Sep-10

Jr. Salespeople $35,000 per year Jun-09

Campus Representatives $600 per month ($10/hr * 15 hrs/week * 4 weeks)

Sr. Developers $114,000 per year Jan-09

Jr. Developers $55,000 per year Jun-09

Receptionist/Secretary $30,000 per year Jun-09

Customer Service $35,000 per year Jun-09

I.T. Support $60,000 per year Jan-09

Accounting/Finance $50,000 per year Jan-09

Legal $2,000 per month Jan-10

Executives $- per year Jan-09


$15,000 per year May-09
$120,000 per year Jul-10

Payroll Tax 7.65% of employee's wages up to $97,500 for FICA Jun-09


$434 per year for FUTA Jun-09

Notes
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
80 80 80 0 0 120 120 120 160 160 160 200 200 200 200 0 0
1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
$2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833
$48,000 $48,000 $48,000 $- $- $72,000 $72,000 $72,000 $96,000 $96,000 $96,000 $120,000 $120,000 $120,000 $120,000 $- $-
$9,500 $9,500 $9,500 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000
$- $- $- $- $- $- $- $- $- $- $9,167 $9,167 $9,167 $9,167 $9,167 $9,167 $9,167
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
$2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
$3,750 $3,750 $3,750 $3,750 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000

$87,417 $87,417 $87,417 $48,917 $75,167 $147,167 $147,167 $147,167 $171,167 $171,167 $207,833 $231,833 $231,833 $231,833 $231,833 $111,833 $111,833

$2,793 $2,793 $2,793 $3,415 $4,993 $4,993 $4,993 $4,993 $4,993 $4,993 $7,654 $7,654 $7,654 $7,654 $7,654 $7,654 $7,654

$90,210 $90,210 $90,210 $52,332 $80,159 $152,159 $152,159 $152,159 $176,159 $176,159 $215,488 $239,488 $239,488 $239,488 $239,488 $119,488 $119,488
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
240 240 240 280 280 280 320 320 320 320 0 0 360 360 360 400 400
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
$5,833 $5,833 $5,833 $5,833 $5,833 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667
$144,000 $144,000 $144,000 $168,000 $168,000 $168,000 $192,000 $192,000 $192,000 $192,000 $- $- $216,000 $216,000 $216,000 $240,000 $240,000
$19,000 $19,000 $19,000 $19,000 $19,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000
$9,167 $9,167 $9,167 $9,167 $9,167 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
$5,833 $5,833 $5,833 $5,833 $5,833 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667
$10,000 $10,000 $10,000 $10,000 $10,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
$8,333 $8,333 $8,333 $8,333 $8,333 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000

$255,833 $255,833 $255,833 $279,833 $279,833 $333,833 $357,833 $357,833 $357,833 $357,833 $165,833 $165,833 $381,833 $381,833 $381,833 $405,833 $405,833

$7,654 $7,654 $7,654 $7,654 $7,654 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575 $11,575

$263,488 $263,488 $263,488 $287,488 $287,488 $345,408 $369,408 $369,408 $369,408 $369,408 $177,408 $177,408 $393,408 $393,408 $393,408 $417,408 $417,408
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4 4
400 440 440 440 440 0 0 480 480 480 520 520
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1

$6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
$11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667
$240,000 $264,000 $264,000 $264,000 $264,000 $- $- $288,000 $288,000 $288,000 $312,000 $312,000
$57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000
$18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
$17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500
$20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
$12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000

$430,667 $454,667 $454,667 $454,667 $454,667 $190,667 $190,667 $478,667 $478,667 $478,667 $502,667 $502,667

$13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264 $13,264

$443,931 $467,931 $467,931 $467,931 $467,931 $203,931 $203,931 $491,931 $491,931 $491,931 $515,931 $515,931
ClearSky Systems, Inc.
Expenses - Travel

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80 80
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1 1

# of 1 Person Trips 0 0 0 0 1 1 1 1 1 1 1 1 4 4 4
# of 2 Person Trips 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
# of Days 0 0 0 0 2 2 2 2 2 2 2 2 8 8 8

Airfare $- $- $- $- $400 $400 $400 $400 $400 $400 $400 $400 $1,600 $1,600 $1,600
Hotel $- $- $- $- $125 $125 $125 $125 $125 $125 $125 $125 $500 $500 $500
Car Rental $- $- $- $- $120 $120 $120 $120 $120 $120 $120 $120 $480 $480 $480
Food $- $- $- $- $- $60 $60 $60 $60 $60 $60 $60 $240 $240 $240
Gas $- $- $- $- $12 $12 $12 $12 $12 $12 $12 $12 $48 $48 $48

Total Travel Expenses $- $- $- $- $657 $717 $717 $717 $717 $717 $717 $717 $2,868 $2,868 $2,868

Explanation
All salespeople will be doing 4 trips per month, visting with school officials to demonstrate the software, negotiate pricing arrangements, or perform other duties.
The rates for Airfare, Hotel, Car Rental, Food, and Gas shown below are based on the founders' personal experience while making sales calls throughout the United States.

Assumptions Start Date


Airfare $400 per round trip ticket Jan-09

Hotel $125 per night Jan-09

Car Rental $60 per day Jan-09

Food $30 per person, per day Jan-09

Gas $6 per day Jan-09

1 Person Trips are for 2 days Jan-09

2 Person Trips are for 2 days Mar-09

Number of 1-Person Trips 2 per salesperson, per month

Number of 2-Person Trips 0 per month Mar-09


Notes
Hotel formula takes into account that nights stayed is the number of days for that trip minus 1. Example: two 4-day trips, with 8 total days and only 6 nights stayed (4-1)+(4-1).
Food formula: (% of trips that are 1 person * total days * price per day) + (% of trips that are 2-person * total days * 2 * price per day)
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
80 80 0 0 120 120 120 160 160 160 200 200 200 200 0 0 240
1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

4 4 4 4 4 4 4 4 4 6 6 6 6 6 6 6 6
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 8 8 8 8 8 8 8 8 12 12 12 12 12 12 12 12

$1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
$500 $500 $500 $500 $500 $500 $500 $500 $500 $750 $750 $750 $750 $750 $750 $750 $750
$480 $480 $480 $480 $480 $480 $480 $480 $480 $720 $720 $720 $720 $720 $720 $720 $720
$240 $240 $240 $240 $240 $240 $240 $240 $240 $360 $360 $360 $360 $360 $360 $360 $360
$48 $48 $48 $48 $48 $48 $48 $48 $48 $72 $72 $72 $72 $72 $72 $72 $72

$2,868 $2,868 $2,868 $2,868 $2,868 $2,868 $2,868 $2,868 $2,868 $4,302 $4,302 $4,302 $4,302 $4,302 $4,302 $4,302 $4,302
Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4
240 240 280 280 280 320 320 320 320 0 0 360 360 360 400 400 400
2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 6
2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 6
2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

6 6 6 6 10 10 10 10 10 10 10 10 10 10 10 10 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
12 12 12 12 20 20 20 20 20 20 20 20 20 20 20 20 20

$2,400 $2,400 $2,400 $2,400 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
$750 $750 $750 $750 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
$720 $720 $720 $720 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
$360 $360 $360 $360 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
$72 $72 $72 $72 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120

$4,302 $4,302 $4,302 $4,302 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170
Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4
440 440 440 440 0 0 480 480 480 520 520
6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2
6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1

10 10 10 10 10 10 10 10 10 10 10
0 0 0 0 0 0 0 0 0 0 0
20 20 20 20 20 20 20 20 20 20 20

$4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
$1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
$1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
$600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
$120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120

$7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170 $7,170
ClearSky Systems, Inc.
Expenses - Office

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1

Equipment $- $- $- $- $600 $1,250 $500 $500 $500 $500 $500 $500 $9,700 $500
Computers $- $- $- $- $- $- $- $- $- $- $- $- $5,600 $-
Networking Equipment $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Printer/Fax/Copier $- $- $- $- $- $300 $300 $300 $300 $300 $300 $300 $300 $300
Furniture $- $- $- $- $600 $- $- $- $- $- $- $- $3,600 $-
Office Supplies $- $- $- $- $- $200 $200 $200 $200 $200 $200 $200 $200 $200
Kitchen Equipment $- $- $- $- $- $750 $- $- $- $- $- $- $- $-
Server Fees $180 $180 $260 $260 $260 $100 $100 $500 $1,276 $1,276 $1,276 $3,716 $3,716 $3,716
Transaction Fees $- $- $167 $- $- $241 $- $- $93 $- $- $1,180 $- $-
Office Rent $- $- $- $- $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $2,292 $2,292
Phone and Internet $110 $110 $110 $110 $110 $310 $310 $310 $310 $310 $310 $310 $1,715 $1,715
Cell Phones/Data $110 $110 $110 $110 $110 $- $- $- $- $- $- $- $280 $280
Internet $- $- $- $- $- $120 $120 $120 $120 $120 $120 $120 $1,000 $1,000
Landline Phone $- $- $- $- $- $190 $190 $190 $190 $190 $190 $190 $435 $435
Utilities $- $- $- $- $- $300 $300 $300 $300 $300 $300 $300 $300 $300
Repairs and Maintenance $- $- $- $- $- $50 $50 $50 $50 $50 $50 $50 $50 $50
Insurance $- $- $- $- $- $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Office Expenses $290 $290 $537 $370 $2,262 $4,042 $3,052 $3,452 $4,320 $4,228 $4,228 $7,848 $18,273 $9,073

Explanation
ClearSky will open an office in March 2009, after receiving outside investment.
ClearSky will pay more for Developer computers because they need additional processing power and larger LCD screens.
Server Fees are based on rates from Adtaq, where we are currently colocating the company's servers.
Assumptions Start Date
Equipment
Computers $800 per computer for Non-Developers Jun-09
$1,500 per computer for Developers Jun-09

Networking Equipment $500 routers, ethernet cables, etc. Jun-09

Printer/Fax/Copier $3,000 printer/fax/copier Jun-09


$300 per month for toner Jun-09

Furniture $600 per desk + chair for each employee Jun-09


$2,000 conference room table and 6 chairs Jun-09

Office Supplies $200 per month Jun-09

Kitchen Equipment $500 refrigerator - 6.0 cubic ft Jun-09


$100 microwave Jun-09
$50 coffee machine Jun-09
$50 toaster Jun-09
$50 brita water filters Jun-09

Server Fees $2.00 per course, per month Jan-09

Transaction Fees $0.74 per access code sold directly to students Jan-09

Office Rent $167 per month for each employee ($20/sq foot annually) Jun-09
$792 per month for reception area, conference room, kitchen, break room ($20/sq foot per year) Jun-09

Phone and Internet


Cell Phones/Data $60 per month for Salesman and I.T. Support cell phones Jan-09
$50 per month for each Salesman's wireless broadband Jan-09

Internet $120 per month Jun-09


$1,000 per month Jan-10

Landline Phone $35 per month for customer service landline Jun-09
$15 per month for customer service toll-free number Jun-09
$35 per month for fax landline and employee landlines Jun-09

Utilities $300 per month for water, electricity, gas Jun-09

Repairs and Maintenance $50 per month Jun-09

Insurance $250 per month Jun-09


$500 per month Jun-09

Notes
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
80 80 80 0 0 120 120 120 160 160 160 200 200 200 200 0 0
1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$500 $500 $500 $2,600 $500 $500 $500 $500 $500 $500 $12,500 $500 $500 $500 $500 $500 $500
$- $- $- $1,500 $- $- $- $- $- $- $7,800 $- $- $- $- $- $-
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$- $- $- $600 $- $- $- $- $- $- $4,200 $- $- $- $- $- $-
$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
$8,156 $8,156 $8,156 $2,795 $2,795 $13,976 $16,852 $16,852 $16,852 $25,872 $25,872 $25,872 $37,492 $37,492 $37,492 $10,162 $10,162
$3,437 $- $- $7,544 $- $- $2,586 $- $- $15,588 $- $- $23,932 $- $- $34,680 $-
$2,292 $2,292 $2,292 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $3,625 $3,625 $3,625 $3,625 $3,625 $3,625 $3,625
$1,715 $1,715 $1,715 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
$280 $280 $280 $280 $280 $280 $280 $280 $280 $280 $450 $450 $450 $450 $450 $450 $450
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$435 $435 $435 $470 $470 $470 $470 $470 $470 $470 $750 $750 $750 $750 $750 $750 $750
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

$16,950 $13,513 $13,513 $17,998 $8,354 $19,534 $24,996 $22,410 $22,410 $47,018 $45,047 $33,047 $68,599 $44,667 $44,667 $52,018 $17,337
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
240 240 240 280 280 280 320 320 320 320 0 0 360 360 360 400 400
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$500 $500 $500 $500 $500 $18,700 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
$- $- $- $- $- $11,600 $- $- $- $- $- $- $- $- $- $- $-
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$- $- $- $- $- $6,600 $- $- $- $- $- $- $- $- $- $- $-
$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
$50,812 $56,228 $56,228 $56,228 $72,748 $72,748 $72,748 $91,988 $91,988 $91,988 $22,598 $22,598 $112,988 $121,028 $121,028 $121,028 $145,228
$- $9,400 $- $- $52,011 $- $- $67,292 $- $- $85,089 $- $- $20,903 $- $- $111,951
$3,625 $3,625 $3,625 $3,625 $3,625 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458 $5,458
$2,200 $2,200 $2,200 $2,200 $2,200 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925 $2,925
$450 $450 $450 $450 $450 $790 $790 $790 $790 $790 $790 $790 $790 $790 $790 $790 $790
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$750 $750 $750 $750 $750 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135 $1,135
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

$57,987 $72,803 $63,403 $63,403 $131,934 $100,681 $82,481 $169,013 $101,721 $101,721 $117,420 $32,331 $122,721 $151,664 $130,761 $130,761 $266,912
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4 4
400 440 440 440 440 0 0 480 480 480 520 520
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1

$7,500 $500 $500 $500 $500 $502 $504 $506 $508 $510 $512 $514
$4,600 $- $- $- $- $- $- $- $- $- $- $-
$- $- $- $- $- $1 $2 $3 $4 $5 $6 $7
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$2,400 $- $- $- $- $- $- $- $- $- $- $-
$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
$- $- $- $- $- $1 $2 $3 $4 $5 $6 $7
$145,228 $145,228 $171,828 $171,828 $171,828 $40,006 $40,006 $200,028 $210,468 $210,468 $210,468 $241,868
$- $- $134,336 $- $- $158,941 $- $- $37,005 $- $- $194,683
$6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125
$3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065 $3,065
$790 $790 $790 $790 $790 $790 $790 $790 $790 $790 $790 $790
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275 $1,275
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

$162,768 $155,768 $316,704 $182,368 $182,368 $209,489 $50,550 $210,574 $258,021 $221,018 $221,020 $447,105
ClearSky Systems, Inc.
Expenses - Marketing

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
Sr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Jr. Salespeople 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Campus Representatives 0 0 0 0 0 0 0 30 30 30 50 50 50 80
Sr. Developers 0 0 0 0 1 1 1 1 1 1 1 1 1 1
Jr. Developers 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Receptionist/Secretary 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Customer Service 0 0 0 0 0 0 0 0 0 0 0 0 1 1
I.T. Support 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Accounting/Finance 0 0 0 0 0 0 0 0 0 0 0 0 1 1
Executives 2 2 2 2 2 2 2 2 2 2 2 2 3 3
Conventions 0 0 0 0 1 0 0 1 0 0 1 1 1 1

Printing Costs $- $- $- $- $100 $475 $475 $475 $475 $475 $475 $475 $475 $475
Shipping/Postage $- $- $- $- $- $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650
Convention Fees $- $- $- $- $- $2,500 $- $- $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Promotional Items $- $- $- $- $- $300 $300 $300 $300 $300 $300 $300 $300 $300

Total Marketing Expenses $- $- $- $- $100 $4,925 $2,425 $2,425 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925

Explanation
ClearSky expects to print a large number of promotional materials every month for distribution by salesperson, via direct mailings to university officials, and for trade shows.
To reduce costs, ClearSky will avoid shipping its trade show display whenever a convention is within driving distance of Seattle. Otherwise, it will cost approximately $1,500 to ship our trade show display via FedEx.
Based on the founders' personal experience, we estimate that the fee to exhibit at conventions will be approximately $2,500 on average.
The company will assume each promotional item will cost $3 each, which may include laser pointers, T-shirts, hats, or other items.

Assumptions Start Date


Printing Costs Jan-09
Brochures $0.25 x 500 per month = $125 Jan-09
Business Cards $0.25 x 500 per month = $125 Jan-09
Letters $0.25 x 300 per month = $75 Jan-09
Envelopes $0.50 x 300 per month = $150 Jan-09

Shipping/Postage $0.50 x 300 per month = $150 Jan-09


$1,500 per show not within driving distance Jan-09

Convention Fees $2,500 per show, paid 2 months in advance Jan-09

Promotional Items $3 x 100 per month = $300 Jan-09

Notes
Convention Fees are paid two months in advance of the show.
Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
80 80 80 0 0 120 120 120 160 160 160 200 200 200 200 0 0
1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475
$1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

$4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
240 240 240 280 280 280 320 320 320 320 0 0 360 360 360 400 400
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

$475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475
$1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

$4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
1 1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4 4
400 440 440 440 440 0 0 480 480 480 520 520
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
2 2 2 2 2 2 2 2 2 2 2 2
6 6 6 6 6 6 6 6 6 6 6 6
4 4 4 4 4 4 4 4 4 4 4 4
3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4
1 1 1 1 1 1 1 1 1 1 1 1

$475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475
$1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650 $1,650
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

$4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925 $4,925
ClearSky Systems, Inc.
Expenses - Interest

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
CCD Loans $- $- $- $- $35,000 $- $- $- $- $- $- $- $- $-

Total Interest Expense $- $- $- $- $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163

Explanation
This details the Interest Expense ClearSky expects for the next 12 months.

Assumptions Start Date


CCD Loans $35,000 Round 1 Loan May-09

Interest Expense 12 Annual Interest Rate = Prime + 8% May-09


0.0100 Monthly Rate for Calculation Purposes

Term of Loan 36 Months May-09

Monthly Payment $1,163 May-09

Notes
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-

$1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
$- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-

$1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $1,163 $- $- $- $- $- $- $- $-


Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
$- $- $- $- $- $- $- $- $- $- $- $-

$- $- $- $- $- $- $- $- $- $- $- $-