Breeze Technology

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Breeze Technology, Inc.
INCOME STATEMENT (Years 1 - 5)

Year 1 Year 2 Year 3 Year 4 Year 5

Sales

Breeze technology 3,562,500 2,500,000 5,375,000 8,000,000 11,000,000

% of Total Sales 100% 100% 80% 73% 65%

Roll out products 1,350,000 3,000,000 6,000,000

% of Total Sales 0% 0% 20% 27% 35%

Total Sales 3,562,500 2,500,000 6,725,000 11,000,000 17,000,000

Cost of Goods Sold

Contract manufacturing 810,000 1,800,000 3,600,000

% of Total Sales 0% 0% 12% 16% 21%

Total Cost of Goods Sold 0 0 810,000 1,800,000 3,600,000

Gross Profit 3,562,500 2,500,000 5,915,000 9,200,000 13,400,000

Gross Margin 100% 100% 88% 84% 79%

Operating Expenses

Sales & Marketing 67,000 160,000 280,000 308,000 338,800

% of Total Sales 2% 6% 4% 3% 2%

Research & Development 1,441,667 435,000 620,000 682,000 750,200

% of Total Sales 40% 17% 9% 6% 4%

G & A 329,917 561,000 847,000 931,700 1,024,870

% of Total Sales 9% 22% 13% 8% 6%

Total Operating Expenses 1,838,584 1,156,000 1,747,000 1,921,700 2,113,870

% of Total Sales 52% 46% 26% 17% 12%

Income from Operations 1,723,916 1,344,000 4,168,000 7,278,300 11,286,130

% of Total Sales 48% 54% 62% 66% 66%

Interest Income 21,203 30,941 29,636 127,882 300,989

Interest/Financing Expense 9,450 12,600 12,600 0 0

Income before Taxes 1,735,669 1,362,341 4,185,036 7,406,182 11,587,119

Taxes on Income (calculated yearly) 572,771 449,572 1,381,062 2,444,040 3,823,749

Net Income After Taxes 1,162,898 912,769 2,803,974 4,962,142 7,763,370

% of Total Sales 33% 37% 42% 45% 46%

CASH FLOW STATEMENT (Years 1 - 5)

	Year 1	Year 2	Year 3	Year4	Year 5
Beginning Cash Balance	0	335,899	648,667	2,557,641	6,019,783

Cash Receipts
Total Sales	3,562,500	2,500,000	6,725,000	11,000,000	17,000,000
Interest Income	21,203	30,941	29,636	127,882	300,989
Total Cash Receipts	3,583,703	2,530,941	6,754,636	11,127,882	17,300,989

Cash Disbursements
Cost of Goods Sold	0	0	810,000	1,800,000	3,600,000
Sales & Marketing	67,000	160,000	280,000	308,000	338,800
Research & Development	1,441,667	435,000	620,000	682,000	750,200
G & A	329,917	561,000	847,000	931,700	1,024,870
Interest/Financing Expense	9,450	12,600	12,600	0	0
Taxes on income	572,771	449,572	1,381,062	2,444,040	3,823,749
Net Inc. in Inventory & Debtors			225,000	400,000	850,000
Net Inc. of Plan & Equipment			200000	100000	200000
Total Cash Disbursements	2,420,805	1,618,172	4,375,662	6,665,740	10,587,619

Cash dividends	(900,000)	(600,000)	(400,000)	(1,000,000)	(2,000,000)
Sale of Stock	3,000	0	0	0	0	(Yr 1 from monthly Cash Flow; Yrs 2-5 External Values)
Proceeds of Investor Loan	70,000	0	(70,000)	0	0	(Yr 1 from monthly Cash Flow; Yrs 2-5 External Values)

Net Cash Balance	335,898	648,668	2,557,641	6,019,783	10,733,153

RATIO ANALYSIS

Ratios	Year 1	Year 2	Year 3	Year 4	Year 5
Current Ratio	0.00	0.00	9.25	11.43	11.29	Current Assets / Current Liabilities
Quick Ratio (Acid Test)	0.00	0.00	8.79	10.83	10.64	Quick Assets (Cash + Receivables) / Current Liabilities
Return on Total Assets	349.02%	142.66%	87.81%	66.65%	57.58%	Net Income After Taxes / Total Assets (at year end)
Total Assets Turnover	10.61	3.85	2.10	1.48	1.26	Total Sales / Total Assets (at year end)
Total Debt to Total Assets	0.21	0.11	0.10	0.08	0.09	Total Liabilities / Total Assets

Gross Profit Margin	100.00%	100.00%	87.96%	83.64%	78.82%	Gross Profit / Total Sales
Operating Profit Margin	48.39%	53.76%	61.98%	66.17%	66.39%	Income from Operations (Before Interest & Taxes) / Total Sales
Net Profit Margin	32.64%	36.51%	41.69%	45.11%	45.67%	Net Income After Taxes / Total Sales
Return on Sales	32.64%	36.51%	47.40%	53.94%	57.94%	Net Income After Taxes / Gross Profit (Net Sales)

Return on Owners' Equity	437.35%	61.73%	62.55%	56.10%	49.74%	Net Income After Taxes / Total Owners' Equity (at year end)
Total Debt to Owners' Equity	0.26	0.05	0.07	0.07	0.07	Total Liabilities / Total Owners' Equity

Budget, Cash Flow Statement (Year 1 by month)
Budget, Cash Flow Statement (Years 2 and 3 by quarter)
Balance Sheet, Source & Use of Funds

Breeze Technology, Inc.
Table of Contents	Appendices
0. Executive Summary 1. The Company 2. Market Analysis 3. Strategic Options 4. Marketing Strategy 5. Research & Development 6. Organizational Structure 7. Risk Reduction Strategies 8. Exit & Harvest Strategies 9. Financials 10. Summary	I. Focus Group Analysis II. Competitor Content Analysis III. Product Test Results IV. Inventor's Test Results V. Resumes of Directors VI. US Market Data VII. Technical Drawings Discussion Questions