Clearsky Systems, Inc. 2008 Balance Sheet Assets Current Assets

ClearSky Systems, Inc. 2008 Balance Sheet

Assets Current Assets Cash Accounts Receivable Total Current Assets Property and Equipment (net) Total Assets Liabilities and Shareholders' Equity Current Liabilities Long-Term Debt Shareholders' Equity Common Stock Preferred Stock Retained Earnings Total Equity Total Liabilities and Equity

$3,097 $$3,097 $6,000 $9,097

$9,097 $$$$$$9,097

ClearSky Systems, Inc. 2008 Income Statement Total Revenue Access Codes Total Expenses Payroll (After Tax) Travel Office Marketing Interest Total Net Income Gross Margin

$753 $753 $60,400 $55,000 $5,000 $100 $300 $$(59,647) n/a

ClearSky Systems, Inc. 5 Year Income Statement 2009 $68,100 $68,100

2010 $1,181,970 $1,181,970

2011 2012 2013 $4,865,790 $11,563,560 $21,282,360 $4,865,790 $11,563,560 $21,282,360

Total Expenses Total Operating Expenses % of Revenue Payroll (After Tax) Travel Office Cost of Revenue1 Office - Other Marketing Interest

$296,260 $285,196 418.8% $216,792 $5,676 $34,917 $11,064 $23,853 $29,575 $9,300

$1,715,845 $1,558,796 131.9% $1,374,338 $34,416 $234,041 $157,050 $76,992 $59,100 $13,950

$3,597,437 $3,000,626 61.7% $2,777,852 $51,624 $694,912 $596,812 $98,100 $59,100 $13,950

$5,850,879 $4,477,689 38.7% $4,192,899 $86,040 $1,508,190 $1,373,190 $135,000 $59,100 $4,650

Net Income Before Taxes

$(228,160)

$(533,875)

$1,268,353

$5,712,681

$13,288,296

$-

$-

$443,924

$1,999,438

$4,650,904

$(228,160) -335.0%

$(533,875) -45.2%

$824,429 16.9%

$3,713,243 32.1%

$8,637,393 40.6%

Total Revenue Access Codes

Taxes Net Income (Loss) % of Revenue

Comprised of Server and Credit Card Transaction fees associated with student access codes.

1

$7,994,064 $5,509,848 25.9% $5,231,172 $86,040 $2,617,752 $2,484,216 $133,536 $59,100 $-

ClearSky Systems, Inc. 5 Year Income Statement (For Business Plan)

Total Revenue

2009 $68,100

2010 $1,181,970

2011 2012 2013 $4,865,790 $11,563,560 $21,282,360

Cost of Revenue1 Gross Profit Gross Margin

$11,064 $57,036 83.8%

$157,050 $1,024,920 86.7%

$596,812 $1,373,190 $2,484,216 $4,268,978 $10,190,370 $18,798,144 87.7% 88.1% 88.3%

Operating Expenses Payroll (After Tax) Travel Office Marketing Interest Total Operating Expenses % of Revenue

$216,792 $5,676 $23,853 $29,575 $9,300 $285,196 418.8%

$1,374,338 $34,416 $76,992 $59,100 $13,950 $1,558,796 131.9%

$2,777,852 $51,624 $98,100 $59,100 $13,950 $3,000,626 61.7%

$4,192,899 $86,040 $135,000 $59,100 $4,650 $4,477,689 38.7%

Net Income Before Taxes

$(228,160)

$(533,875)

$1,268,353

$5,712,681

$13,288,296

$-

$-

$443,924

$1,999,438

$4,650,904

$(228,160) -335.0%

$(533,875) -45.2%

$824,429 16.9%

$3,713,243 32.1%

$8,637,393 40.6%

Taxes Net Income % of Revenue

Comprised of Server and Credit Card Transaction fees associated with student access codes.

1

$5,231,172 $86,040 $133,536 $59,100 $$5,509,848 25.9%

ClearSky Systems, Inc. Projected Statement of Cash Flow (For Business Plan) January 2009 - December 2013

Outside Investment

2009 $300,000

2010 $1,250,000

2012 $-

2013 $-

$-

$-

$-

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

$443,924

$1,999,438

$4,650,904

$1,647,394

$5,804,560

$16,441,391

Taxes Total Cash On Hand

$$106,840

$-

2011 $-

$$822,965

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

Outside Investment

Jan-09 $-

Feb-09 $-

Mar-09

$-

Apr-09 $-

$-

$-

Total Revenue

$-

$-

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

$-

$35,000

Jun-09 $300,000

Loans

$6,750

$-

May-09 $-

$-

$$9,750

Jul-09 $-

Aug-09 $-

$-

$-

$-

$-

Sep-09 $$$3,750

Oct-09 $-

Nov-09 $-

$-

$-

$-

$-

Dec-09 $$$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

Outside Investment

Jan-09 $-

Feb-09 $-

Mar-09 $-

Apr-09 $-

May-09 $$35,000

Jun-09 $300,000

Loans

$-

$-

$-

$-

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

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions

Jan-09 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 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.

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

Mar-10 1 1 80 1 0 1 1 1 1 3 1

Apr-10 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

Jul-10 1 1 0 2 0 1 1 1 1 3 1

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

Aug-11 1 2 240 2 2 2 2 2 2 4 1

Sep-11 1 2 240 2 2 2 2 2 2 4 1

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

Jul-12 1 4 0 4 4 2 4 4 3 4 1

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

Jan-13 1 4 400 6 4 2 6 4 3 4 1

Feb-13 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

ClearSky Systems, Inc. 5 Year Revenue Projections Jan-09 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 1

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

Mar-10 1 1 80 1 0 1 1 1 1 3 1

New Instructors From Sales Calls From Campus Representatives From Conventions

10 10 0 0

10 10 0 0

10 10 0 0

10 10 0 0

40 10 0 30

2 2 0 0

2 2 0 0

190 10 150 30

160 10 150 0

160 10 150 0

290 10 250 30

290 10 250 30

335 55 250 30

485 55 400 30

485 55 400 30

Total Instructors Total Instructors (w/o Summer Adjustment) Total Courses

45 45 90

45 45 90

65 65 130

65 65 130

65 65 130

25 125 50

25 125 50

125 125 250

319 319 638

319 319 638

319 319 638

929 929 1,858

929 929 1,858

929 929 1,858

2,039 2,039 4,078

5 0 $15 $-

5 0 $15 $-

5 450 $15 $6,750

5 0 $15 $-

5 0 $15 $-

5 650 $15 $9,750

5 0 $15 $-

5 0 $15 $-

5 250 $15 $3,750

5 0 $15 $-

5 0 $15 $2009 Rev:

5 3,190 $15 $47,850 $68,100

5 0 $15 $-

5 0 $15 $-

5 9,290 $15 $139,350

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions

ACCESS CODE SALES Access Codes Sold Per Course Total Access Codes Sold Average Price Total Access Code Revenue, $

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 New Instructors From Sales Calls

Start Date Jan-09 Mar-09 Jan-10 Aug-09

5 20 20 5

per Executive, per Month per Salesperson, per Month per Salesperson, per Month per Campus Representative, per Month

New Instructors From Conventions

30 30

per Month per Month

Jun-09 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 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

Jul-10 1 1 0 2 0 1 1 1 1 3 1

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

Aug-11 1 2 240 2 2 2 2 2 2 4 1

Sep-11 1 2 240 2 2 2 2 2 2 4 1

485 55 400 30

485 55 400 30

17 11 0 6

17 11 0 6

685 55 600 30

685 55 600 30

685 55 600 30

885 55 800 30

885 55 800 30

910 80 800 30

1,110 80 1,000 30

1,110 80 1,000 30

1,110 80 1,000 30

1,110 80 1,000 30

22 16 0 6

22 16 0 6

1,310 80 1,200 30

1,310 80 1,200 30

2,039 2,039 4,078

2,039 2,039 4,078

699 3,494 1,398

699 3,494 1,398

3,494 3,494 6,988

4,213 4,213 8,426

4,213 4,213 8,426

4,213 4,213 8,426

6,468 6,468 12,936

6,468 6,468 12,936

6,468 6,468 12,936

9,373 9,373 18,746

9,373 9,373 18,746

9,373 9,373 18,746

2,541 12,703 5,081

2,541 12,703 5,081

12,703 12,703 25,406

14,057 14,057 28,114

5 0 $15 $-

5 0 $15 $-

5 20,390 $15 $305,850

5 0 $15 $-

5 0 $15 $-

5 6,988 $15 $104,820

5 0 $15 $-

5 0 $15 $2010 Rev:

5 42,130 $15 $631,950 $1,181,970

5 0 $15 $-

5 0 $15 $-

5 64,680 $15 $970,200

5 0 $15 $-

5 0 $15 $-

5 93,730 $15 $1,405,950

5 0 $15 $-

5 0 $15 $-

5 25,406 $15 $381,090

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

Jul-12 1 4 0 4 4 2 4 4 3 4 1

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

Jan-13 1 4 400 6 4 2 6 4 3 4 1

Feb-13 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

1,310 80 1,200 30

1,510 80 1,400 30

1,510 80 1,400 30

1,550 120 1,400 30

1,750 120 1,600 30

1,750 120 1,600 30

1,750 120 1,600 30

1,750 120 1,600 30

30 24 0 6

30 24 0 6

1,950 120 1,800 30

1,950 120 1,800 30

1,950 120 1,800 30

2,150 120 2,000 30

2,150 120 2,000 30

2,150 120 2,000 30

2,350 120 2,200 30

2,350 120 2,200 30

14,057 14,057 28,114

14,057 14,057 28,114

18,187 18,187 36,374

18,187 18,187 36,374

18,187 18,187 36,374

22,997 22,997 45,994

22,997 22,997 45,994

22,997 22,997 45,994

5,649 28,247 11,299

5,649 28,247 11,299

28,247 28,247 56,494

30,257 30,257 60,514

30,257 30,257 60,514

30,257 30,257 60,514

36,307 36,307 72,614

36,307 36,307 72,614

36,307 36,307 72,614

42,957 42,957 85,914

5 0 $15 $-

5 0 $15 $2011 Rev:

5 140,570 $15 $2,108,550 $4,865,790

5 0 $15 $-

5 0 $15 $-

5 181,870 $15 $2,728,050

5 0 $15 $-

5 0 $15 $-

5 229,970 $15 $3,449,550

5 0 $15 $-

5 0 $15 $-

5 56,494 $15 $847,410

5 0 $15 $-

5 5 0 302,570 $15 $15 $$4,538,550 2012 Rev: $11,563,560

5 0 $15 $-

5 0 $15 $-

5 363,070 $15 $5,446,050

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

2,350 120 2,200 30

2,350 120 2,200 30

30 24 0 6

30 24 0 6

2,550 120 2,400 30

2,550 120 2,400 30

2,550 120 2,400 30

2,750 120 2,600 30

2,750 120 2,600 30

42,957 42,957 85,914

42,957 42,957 85,914

10,001 50,007 20,003

10,001 50,007 20,003

50,007 50,007 100,014

52,617 52,617 105,234

52,617 52,617 105,234

52,617 52,617 105,234

60,467 60,467 120,934

5 0 $15 $-

5 0 $15 $-

5 429,570 $15 $6,443,550

5 0 $15 $-

5 0 $15 $-

5 100,014 $15 $1,500,210

5 0 $15 $-

5 5 0 526,170 $15 $15 $$7,892,550 2013 Rev: $21,282,360

ClearSky Systems, Inc. 5-Year Revenue Summary (For Business Plan) 2009 114

2010 1,970

2011 8,110

2012 19,273

2013 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

$68,100

$1,181,970

$4,865,790

$11,563,560

$21,282,360

Total Instructors

Total Revenue

ClearSky Systems, Inc. 5 Year Projected Expenses

Payroll (After Tax) Travel Office Marketing Interest

2009 $216,792 $5,676 $34,917 $29,575 $9,300

2010 $1,374,338 $34,416 $234,041 $59,100 $13,950

2011 $2,777,852 $51,624 $694,912 $59,100 $13,950

2012 $4,192,899 $86,040 $1,508,190 $59,100 $4,650

2013 $5,231,172 $86,040 $2,617,752 $59,100 $-

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

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions

Jan-09 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 1

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist Customer Service I.T. Support Accounting/Finance Legal Executives

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

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

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

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

$$$$9,500 $$$$$$$2,500

$$$$9,500 $$$$$$$2,500

$$$$9,500 $$$$$$$2,500

$$$18,000 $9,500 $$$$$$$2,500

$$$18,000 $9,500 $$$$$$$2,500

$$$18,000 $9,500 $$$$$$$2,500

$$$30,000 $9,500 $$$$$$$2,500

$$$30,000 $9,500 $$$$$$$2,500

$6,667 $2,917 $30,000 $9,500 $$2,500 $2,917 $5,000 $4,167 $2,000 $3,750

$6,667 $2,917 $48,000 $9,500 $$2,500 $2,917 $5,000 $4,167 $2,000 $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 Sr. Salespeople

$80,000 per year

Start Date 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 Executives

Payroll Tax

$2,000 per month $- per year $15,000 per year $120,000 per year 7.65% of employee's wages up to $97,500 for FICA $434 per year for FUTA

Jan-10 Jan-09 May-09 Jul-10 Jun-09 Jun-09

Notes Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.

Mar-10 1 1 80 1 0 1 1 1 1 3 1

Apr-10 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

Jul-10 1 1 0 2 0 1 1 1 1 3 1

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

$6,667 $2,917 $48,000 $9,500 $$2,500 $2,917 $5,000 $4,167 $2,000 $3,750

$6,667 $2,917 $48,000 $9,500 $$2,500 $2,917 $5,000 $4,167 $2,000 $3,750

$6,667 $2,917 $48,000 $9,500 $$2,500 $2,917 $5,000 $4,167 $2,000 $3,750

$6,667 $2,917 $$19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $3,750

$6,667 $2,917 $$19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $2,917 $72,000 $19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $2,917 $72,000 $19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $2,917 $72,000 $19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $2,917 $96,000 $19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $2,917 $96,000 $19,000 $$2,500 $2,917 $5,000 $4,167 $2,000 $30,000

$6,667 $5,833 $96,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $120,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $120,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $120,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $120,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $$19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $$19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $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 1 2 240 2 2 2 2 2 2 4 1

Sep-11 1 2 240 2 2 2 2 2 2 4 1

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

Jul-12 1 4 0 4 4 2 4 4 3 4 1

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

$6,667 $5,833 $144,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $144,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $144,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $168,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $5,833 $168,000 $19,000 $9,167 $5,000 $5,833 $10,000 $8,333 $2,000 $40,000

$6,667 $11,667 $168,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $192,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $192,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $192,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $192,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $$38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $$38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $216,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $216,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $216,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $240,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $240,000 $38,000 $18,333 $5,000 $11,667 $20,000 $12,500 $2,000 $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 1 4 400 6 4 2 6 4 3 4 1

Feb-13 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

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

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

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

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

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

$6,667 $11,667 $$57,000 $18,333 $5,000 $17,500 $20,000 $12,500 $2,000 $40,000

$6,667 $11,667 $$57,000 $18,333 $5,000 $17,500 $20,000 $12,500 $2,000 $40,000

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

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

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

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

$6,667 $11,667 $312,000 $57,000 $18,333 $5,000 $17,500 $20,000 $12,500 $2,000 $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 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 1

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

Mar-10 1 1 80 1 0 1 1 1 1 3 1

0 0 0

0 0 0

0 0 0

0 0 0

1 0 2

1 0 2

1 0 2

1 0 2

1 0 2

1 0 2

1 0 2

1 0 2

4 0 8

4 0 8

4 0 8

Airfare Hotel Car Rental Food Gas

$$$$$-

$$$$$-

$$$$$-

$$$$$-

$400 $125 $120 $$12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$400 $125 $120 $60 $12

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

Total Travel Expenses

$-

$-

$-

$-

$657

$717

$717

$717

$717

$717

$717

$717

$2,868

$2,868

$2,868

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions # of 1 Person Trips # of 2 Person Trips # of Days

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 Airfare

$400 per round trip ticket

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

Start Date Jan-09

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 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

Jul-10 1 1 0 2 0 1 1 1 1 3 1

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

Aug-11 1 2 240 2 2 2 2 2 2 4 1

4 0 8

4 0 8

4 0 8

4 0 8

4 0 8

4 0 8

4 0 8

4 0 8

4 0 8

6 0 12

6 0 12

6 0 12

6 0 12

6 0 12

6 0 12

6 0 12

6 0 12

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$1,600 $500 $480 $240 $48

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $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 1 2 240 2 2 2 2 2 2 4 1

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

Jul-12 1 4 0 4 4 2 4 4 3 4 1

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

Jan-13 1 4 400 6 4 2 6 4 3 4 1

6 0 12

6 0 12

6 0 12

6 0 12

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

$2,400 $750 $720 $360 $72

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

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

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

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

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

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

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

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

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

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

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

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

$4,000 $1,250 $1,200 $600 $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 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

10 0 20

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

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

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

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

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

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

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

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

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

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

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

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions

Jan-09 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Equipment Computers Networking Equipment Printer/Fax/Copier Furniture Office Supplies Kitchen Equipment Server Fees Transaction Fees Office Rent Phone and Internet Cell Phones/Data Internet Landline Phone Utilities Repairs and Maintenance Insurance

$$$$$$$$180 $$$110 $110 $$$$$-

$$$$$$$$180 $$$110 $110 $$$$$-

$$$$$$$$260 $167 $$110 $110 $$$$$-

$$$$$$$$260 $$$110 $110 $$$$$-

$600 $$$$600 $$$260 $$1,292 $110 $110 $$$$$-

$1,250 $$$300 $$200 $750 $100 $241 $1,292 $310 $$120 $190 $300 $50 $500

Total Office Expenses

$290

$290

$537

$370

$2,262

$4,042

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.

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 1

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

$500 $$$300 $$200 $$100 $$1,292 $310 $$120 $190 $300 $50 $500

$500 $$$300 $$200 $$500 $$1,292 $310 $$120 $190 $300 $50 $500

$500 $$$300 $$200 $$1,276 $93 $1,292 $310 $$120 $190 $300 $50 $500

$500 $$$300 $$200 $$1,276 $$1,292 $310 $$120 $190 $300 $50 $500

$500 $$$300 $$200 $$1,276 $$1,292 $310 $$120 $190 $300 $50 $500

$500 $$$300 $$200 $$3,716 $1,180 $1,292 $310 $$120 $190 $300 $50 $500

$9,700 $5,600 $$300 $3,600 $200 $$3,716 $$2,292 $1,715 $280 $1,000 $435 $300 $50 $500

$500 $$$300 $$200 $$3,716 $$2,292 $1,715 $280 $1,000 $435 $300 $50 $500

$3,052

$3,452

$4,320

$4,228

$4,228

$7,848

$18,273

$9,073

Assumptions Equipment Computers

Start Date $800 per computer for Non-Developers $1,500 per computer for Developers

Networking Equipment

$500 routers, ethernet cables, etc.

Jun-09 Jun-09 Jun-09

Printer/Fax/Copier

$3,000 printer/fax/copier $300 per month for toner

Jun-09 Jun-09

Furniture

$600 per desk + chair for each employee $2,000 conference room table and 6 chairs

Jun-09 Jun-09

Office Supplies

$200 per month

Jun-09

Kitchen Equipment

$500 $100 $50 $50 $50

Jun-09 Jun-09 Jun-09 Jun-09 Jun-09

refrigerator - 6.0 cubic ft microwave coffee machine toaster brita water filters

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) $792 per month for reception area, conference room, kitchen, break room ($20/sq foot per year)

Jun-09 Jun-09

Phone and Internet Cell Phones/Data

Internet

Landline Phone

Utilities Repairs and Maintenance Insurance

$60

per month for Salesman and I.T. Support cell phones $50 per month for each Salesman's wireless broadband $120 per month $1,000 per month $35 per month for customer service landline $15 per month for customer service toll-free number $35 per month for fax landline and employee landlines $300 per month for water, electricity, gas

Jan-09 Jan-09 Jun-09 Jan-10 Jun-09 Jun-09 Jun-09 Jun-09

$50 per month

Jun-09

$250 per month $500 per month

Jun-09 Jun-09

Notes Number of employees taken from Employees and Conventions sheet. Changes to that will cascade to other Revenue/Expense sheets.

Mar-10 1 1 80 1 0 1 1 1 1 3 1

Apr-10 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

Jul-10 1 1 0 2 0 1 1 1 1 3 1

$500 $$$300 $$200 $$8,156 $3,437 $2,292 $1,715 $280 $1,000 $435 $300 $50 $500

$500 $$$300 $$200 $$8,156 $$2,292 $1,715 $280 $1,000 $435 $300 $50 $500

$500 $$$300 $$200 $$8,156 $$2,292 $1,715 $280 $1,000 $435 $300 $50 $500

$2,600 $1,500 $$300 $600 $200 $$2,795 $7,544 $2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$500 $$$300 $$200 $$2,795 $$2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$16,950

$13,513

$13,513

$17,998

$8,354

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

$500 $$$300 $$200 $$13,976 $$2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$500 $$$300 $$200 $$16,852 $2,586 $2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$500 $$$300 $$200 $$16,852 $$2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$500 $$$300 $$200 $$16,852 $$2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$500 $$$300 $$200 $$25,872 $15,588 $2,458 $1,750 $280 $1,000 $470 $300 $50 $500

$19,534

$24,996

$22,410

$22,410

$47,018

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

$12,500 $7,800 $$300 $4,200 $200 $$25,872 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$25,872 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$37,492 $23,932 $3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$37,492 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$37,492 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$10,162 $34,680 $3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$10,162 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$45,047

$33,047

$68,599

$44,667

$44,667

$52,018

$17,337

Aug-11 1 2 240 2 2 2 2 2 2 4 1

Sep-11 1 2 240 2 2 2 2 2 2 4 1

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

Jul-12 1 4 0 4 4 2 4 4 3 4 1

$500 $$$300 $$200 $$50,812 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$56,228 $9,400 $3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$56,228 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$56,228 $$3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$500 $$$300 $$200 $$72,748 $52,011 $3,625 $2,200 $450 $1,000 $750 $300 $50 $500

$18,700 $11,600 $$300 $6,600 $200 $$72,748 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$72,748 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$91,988 $67,292 $5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$91,988 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$91,988 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$22,598 $85,089 $5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$22,598 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $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

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

$500 $$$300 $$200 $$112,988 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$121,028 $20,903 $5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$121,028 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$121,028 $$5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$500 $$$300 $$200 $$145,228 $111,951 $5,458 $2,925 $790 $1,000 $1,135 $300 $50 $500

$122,721

$151,664

$130,761

$130,761

$266,912

Jan-13 1 4 400 6 4 2 6 4 3 4 1

Feb-13 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

$7,500 $4,600 $$300 $2,400 $200 $$145,228 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$500 $$$300 $$200 $$145,228 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$500 $$$300 $$200 $$171,828 $134,336 $6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$500 $$$300 $$200 $$171,828 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$500 $$$300 $$200 $$171,828 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$502 $$1 $300 $$200 $1 $40,006 $158,941 $6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$504 $$2 $300 $$200 $2 $40,006 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$506 $$3 $300 $$200 $3 $200,028 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$508 $$4 $300 $$200 $4 $210,468 $37,005 $6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$510 $$5 $300 $$200 $5 $210,468 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$512 $$6 $300 $$200 $6 $210,468 $$6,125 $3,065 $790 $1,000 $1,275 $300 $50 $500

$514 $$7 $300 $$200 $7 $241,868 $194,683 $6,125 $3,065 $790 $1,000 $1,275 $300 $50 $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

Sr. Salespeople Jr. Salespeople Campus Representatives Sr. Developers Jr. Developers Receptionist/Secretary Customer Service I.T. Support Accounting/Finance Executives Conventions

Jan-09 0 0 0 0 0 0 0 0 0 2 0

Feb-09 0 0 0 0 0 0 0 0 0 2 0

Mar-09 0 0 0 0 0 0 0 0 0 2 0

Apr-09 0 0 0 0 0 0 0 0 0 2 0

May-09 0 0 0 1 0 0 0 0 0 2 1

Jun-09 0 0 0 1 0 0 0 0 0 2 0

Jul-09 0 0 0 1 0 0 0 0 0 2 0

Aug-09 0 0 30 1 0 0 0 0 0 2 1

Sep-09 0 0 30 1 0 0 0 0 0 2 0

Oct-09 0 0 30 1 0 0 0 0 0 2 0

Nov-09 0 0 50 1 0 0 0 0 0 2 1

Dec-09 0 0 50 1 0 0 0 0 0 2 1

Jan-10 1 1 50 1 0 1 1 1 1 3 1

Feb-10 1 1 80 1 0 1 1 1 1 3 1

Printing Costs Shipping/Postage Convention Fees Promotional Items

$$$$-

$$$$-

$$$$-

$$$$-

$100 $$$-

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

$475 $1,650 $$300

$475 $1,650 $$300

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

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

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

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

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

$475 $1,650 $2,500 $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 Printing Costs Brochures Business Cards Letters Envelopes

per month per month per month per month

= = = =

$125 $125 $75 $150

Shipping/Postage

$0.50 x 300 per month $1,500 per show not within driving distance

=

$150

Convention Fees

$2,500 per show, paid 2 months in advance

Promotional Items

$0.25 $0.25 $0.25 $0.50

$3

x x x x

x

500 500 300 300

100

per month

Start Date Jan-09 Jan-09 Jan-09 Jan-09 Jan-09 Jan-09 Jan-09 Jan-09

=

$300

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.

Jan-09

Mar-10 1 1 80 1 0 1 1 1 1 3 1

Apr-10 1 1 80 1 0 1 1 1 1 3 1

May-10 1 1 80 1 0 1 1 1 1 3 1

Jun-10 1 1 0 2 0 1 1 1 1 3 1

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

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

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

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

$4,925

$4,925

$4,925

$4,925

Jul-10 1 1 0 2 0 1 1 1 1 3 1

Aug-10 1 1 120 2 0 1 1 1 1 3 1

Sep-10 1 1 120 2 0 1 1 1 1 3 1

Oct-10 1 1 120 2 0 1 1 1 1 3 1

Nov-10 1 1 160 2 0 1 1 1 1 3 1

Dec-10 1 1 160 2 0 1 1 1 1 3 1

Jan-11 1 2 160 2 2 2 2 2 2 4 1

Feb-11 1 2 200 2 2 2 2 2 2 4 1

Mar-11 1 2 200 2 2 2 2 2 2 4 1

Apr-11 1 2 200 2 2 2 2 2 2 4 1

May-11 1 2 200 2 2 2 2 2 2 4 1

Jun-11 1 2 0 2 2 2 2 2 2 4 1

Jul-11 1 2 0 2 2 2 2 2 2 4 1

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

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

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

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

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

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

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

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

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

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

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

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

$475 $1,650 $2,500 $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

Aug-11 1 2 240 2 2 2 2 2 2 4 1

Sep-11 1 2 240 2 2 2 2 2 2 4 1

Oct-11 1 2 240 2 2 2 2 2 2 4 1

Nov-11 1 2 280 2 2 2 2 2 2 4 1

Dec-11 1 2 280 2 2 2 2 2 2 4 1

Jan-12 1 4 280 4 4 2 4 4 3 4 1

Feb-12 1 4 320 4 4 2 4 4 3 4 1

Mar-12 1 4 320 4 4 2 4 4 3 4 1

Apr-12 1 4 320 4 4 2 4 4 3 4 1

May-12 1 4 320 4 4 2 4 4 3 4 1

Jun-12 1 4 0 4 4 2 4 4 3 4 1

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

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

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

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

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

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

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

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

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

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

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

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

Jul-12 1 4 0 4 4 2 4 4 3 4 1

Aug-12 1 4 360 4 4 2 4 4 3 4 1

Sep-12 1 4 360 4 4 2 4 4 3 4 1

Oct-12 1 4 360 4 4 2 4 4 3 4 1

Nov-12 1 4 400 4 4 2 4 4 3 4 1

Dec-12 1 4 400 4 4 2 4 4 3 4 1

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

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

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

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

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

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

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

Jan-13 1 4 400 6 4 2 6 4 3 4 1

Feb-13 1 4 440 6 4 2 6 4 3 4 1

Mar-13 1 4 440 6 4 2 6 4 3 4 1

Apr-13 1 4 440 6 4 2 6 4 3 4 1

May-13 1 4 440 6 4 2 6 4 3 4 1

Jun-13 1 4 0 6 4 2 6 4 3 4 1

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

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

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

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

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

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

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

Jul-13 1 4 0 6 4 2 6 4 3 4 1

Aug-13 1 4 480 6 4 2 6 4 3 4 1

Sep-13 1 4 480 6 4 2 6 4 3 4 1

Oct-13 1 4 480 6 4 2 6 4 3 4 1

Nov-13 1 4 520 6 4 2 6 4 3 4 1

Dec-13 1 4 520 6 4 2 6 4 3 4 1

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

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

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

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

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

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

$4,925

$4,925

$4,925

$4,925

$4,925

$4,925

ClearSky Systems, Inc. Expenses - Interest

CCD Loans Total Interest Expense

Jan-09 $$-

Feb-09 $$-

Mar-09 $-

Apr-09 $-

$-

$-

May-09 $35,000

Jun-09 $-

$1,163

$1,163

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

Assumptions CCD Loans Interest Expense

Term of Loan Monthly Payment Notes

$35,000 Round 1 Loan 12 Annual Interest Rate = Prime + 8% 0.0100 Monthly Rate for Calculation Purposes 36 Months $1,163

Start Date May-09 May-09

May-09 May-09

Jul-09 $$1,163

Aug-09 $-

Sep-09 $-

Oct-09 $-

Nov-09 $-

Dec-09 $-

Jan-10 $-

Feb-10 $-

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

Mar-10 $-

Apr-10 $-

May-10 $-

Jun-10 $-

$1,163

$1,163

$1,163

$1,163

Jul-10 $$1,163

Aug-10 $-

Sep-10 $-

Oct-10 $-

Nov-10 $-

Dec-10 $-

Jan-11 $-

Feb-11 $-

Mar-11 $-

Apr-11 $-

May-11 $-

Jun-11 $-

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

Jul-11 $$1,163

Aug-11 $-

Sep-11 $-

Oct-11 $-

Nov-11 $-

Dec-11 $-

Jan-12 $-

Feb-12 $-

Mar-12 $-

Apr-12 $-

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

$1,163

May-12 $$-

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 $-

$-

$-

$-

$-