Everything  should  be  linked  together  in  an  Excel  workbook  and  flow  like  this…      

   

 

9  Steps    

1. Operating  plan  

2. Market  model  

3. Staffing  plan  

4. Salary  assumptions  

5. Manufacturing  costs  

6. R&D  expenses  

7. SG&A  expenses  

8. Income  statement  

9. Cash  flow  statement        

   

Step  1:    Create  an  operating  plan  

                         

1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Phase&1:&Startup&3rd-party-opinions-Negotiate-licensing-agreementsFinalize-busines-planEngage-investorsSecure-1st-round-financing

Phase&2:&Product&DevelopmentCryoBody-formulationAntifreeze-biomanufacturingRodent-studyPrimate-studyFinalize-product-design-

Phase&3:&FDA&Approval&First-in-manPivotal-studyPilot-studyFDA-approvalFinalize-manufacturing

Phase&4:&Product&Roll<Out&Marketing-campaignInitial-sales-force-hiresDesign-training-programsEstablish-reimbursement-supportFinalize-product-availability

Year&0& Year&4 Year&5Operating&Plan Year&1 Year&2 Year&3 Year&6

Step  2:  Create  a  market  model      

             

#4,300,000%%%%%%%%%

400%%%%%%%%%%%%%%%%%%%%12%13%

30,000%%%%%%%%%%%%%%%15%2%

52,000%%%%%%%%%%%%%%%2%2%

Year&1 Year&2 Year&3 Year&4 Year&5 Year&6 Year&7 Year&8 Year&9 Year&10CE%Mark FDA%Approval

4,300,000%%%%%%%%% 4,816,000%%%%%%%%% 5,393,920%%%%%%%%% 6,041,190%%%%%%%%% 6,766,133%%%%%%%%% 7,578,069%%%%%%%%% 8,487,438%%%%%%%%% 9,505,930%%%%%%%%% 10,646,642%%%%%%% 11,924,239%%%%%%%1,235,000,000& 1,383,200,000& 1,549,184,000& 1,735,086,080& 1,943,296,410& 2,176,491,979& 2,437,671,016& 2,730,191,538& 3,057,814,523& 3,424,752,265&

;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 0.1% 1.0% 3.0% 6.0% 10.0% 14.0%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 6,766%%%%%%%%%%%%%%%%% 75,781%%%%%%%%%%%%%%% 254,623%%%%%%%%%%%%% 570,356%%%%%%%%%%%%% 1,064,664%%%%%%%%% 1,669,393%%%%%%%%%400 396%%%%%%%%%%%%%%%%%%%% 392%%%%%%%%%%%%%%%%%%%% 388%%%%%%%%%%%%%%%%%%%% 384%%%%%%%%%%%%%%%%%%%% 380%%%%%%%%%%%%%%%%%%%% 377%%%%%%%%%%%%%%%%%%%% 373%%%%%%%%%%%%%%%%%%%% 369%%%%%%%%%%%%%%%%%%%% 365%%%%%%%%%%%%%%%%%%%%2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2,599,808&&&&&&&&& 28,826,674&&&&&&& 95,889,048&&&&&&& 212,643,552&&&&& 392,965,284&&&&& 610,007,870&&&&&

Year&1& Year&2 Year&3 Year&4 Year&5 Year&6 Year&7 Year&8 Year&9 Year&1030000 30600 31212 31836 32473 33122 33785 34461 35150 3585315% 15% 15% 15% 15% 15% 15% 15% 15% 15%

4,500%%%%%%%%%%%%%%%%% 4,600%%%%%%%%%%%%%%%%% 4,700%%%%%%%%%%%%%%%%% 4,800%%%%%%%%%%%%%%%%% 4,900%%%%%%%%%%%%%%%%% 5,000%%%%%%%%%%%%%%%%% 5,100%%%%%%%%%%%%%%%%% 5,200%%%%%%%%%%%%%%%%% 5,300%%%%%%%%%%%%%%%%% 5,400%%%%%%%%%%%%%%%%%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 6.75%%%%%%%%%%%%%%%%%%% 27.00%%%%%%%%%%%%%%%%% 47.25%%%%%%%%%%%%%%%%% 67.50%%%%%%%%%%%%%%%%% 81.00%%%%%%%%%%%%%%%%%

5%%%%%%%%%%%%%%%%%%%%%%%% 5%%%%%%%%%%%%%%%%%%%%%%%% 5%%%%%%%%%%%%%%%%%%%%%%%% 5%%%%%%%%%%%%%%%%%%%%%%%% 5%%%%%%%%%%%%%%%%%%%%%%%%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 135%%%%%%%%%%%%%%%%%%%% 540%%%%%%%%%%%%%%%%%%%% 945%%%%%%%%%%%%%%%%%%%% 1,350%%%%%%%%%%%%%%%%% 1,620%%%%%%%%%%%%%%%%%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 3% 13% 30% 55% 85%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 135%%%%%%%%%%%%%%%%%%%% 540%%%%%%%%%%%%%%%%%%%% 945%%%%%%%%%%%%%%%%%%%% 1,350%%%%%%%%%%%%%%%%% 1,620%%%%%%%%%%%%%%%%%

52,000%%%%%%%%%%%%%%% 51,480%%%%%%%%%%%%%%% 50,965%%%%%%%%%%%%%%% 50,456%%%%%%%%%%%%%%% 49,951%%%%%%%%%%%%%%%2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 7,020,000&&&&&&&&& 27,799,200&&&&&&& 48,162,114&&&&&&& 68,114,990&&&&&&& 80,920,608&&&&&&&;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 2%%%%%%%%%%%%%%%%%%%%%%%% 3%%%%%%%%%%%%%%%%%%%%%%%% 4%%%%%%%%%%%%%%%%%%%%%%%% 5%%%%%%%%%%%%%%%%%%%%%%%% 6%%%%%%%%%%%%%%%%%%%%%%%%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 5,070%%%%%%%%%%%%%%%%% 47,190%%%%%%%%%%%%%%% 207,480%%%%%%%%%%%%% 546,975%%%%%%%%%%%%% 1,113,060%%%%%%%%%;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% ;%%%%%%%%%%%%%%%%%%%% 500%%%%%%%%%%%%%%%%%%%% 495%%%%%%%%%%%%%%%%%%%% 490%%%%%%%%%%%%%%%%%%%% 485%%%%%%%%%%%%%%%%%%%% 480%%%%%%%%%%%%%%%%%%%%2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2,535,000&&&&&&&&& 23,359,050&&&&&&& 101,675,574&&&&& 265,364,648&&&&& 534,600,497&&&&&2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 2&&&&&&&&&&&&&&&&&&&& 9,555,000&&&&&&&&& 51,158,250&&&&&&& 149,837,688&&&&& 333,479,638&&&&& 615,521,105&&&&&Total&Revenue

American%Society%of%Plastic%SurgeryAmerican%Society%of%Plastic%SurgeryAmerican%Society%of%Plastic%SurgeryKalorama%InformationEaston%AssociatesEaston%AssociatesUS%population%statisticsCompany%researchCompany%researchEstimate

Revenue&Treatments&($)

Direct%sales%force

Practice%sites%trained%%of%total%practice%sites%trained

Total%capital%equipment%units%sold

ASP%CryoBody%treatment%($)

Practice%sites%%%"premium"%sites"

Aesthetic%physician%practice%sites

&Bottom2up&World&Market&Model

Revenue&Capital&Equipment&($)

#%practice%sites%trained%quarterly%per%sales%rep

ASP%CryoBody%capital%units%($)

Estimated%#%of%treatments%per%week%per%unitTotal%treatments%sold

Top2down&World&Market&Model

Total%units%soldASP%botox%treatment%($)Revenue&($)

%%Market%share%of%botox%treatmenentsTotal&market&size&($)

Key%milestonesTotal%botox%treatments%performed

%%annual%decrease%of%ASP

Source

Botox%market%compound%annual%growth%rate

Key&Assumptions#%of%world;wide%botox%treatments%(approx.)

Botox%treatment%compound%annual%growth%rate

#%of%aesthetic%physician%practice%sites%world;wide

Average%selling%price%(ASP)%of%botox%treatment%($)

Population%growth%rate%%"premium"%practice%sites

Average%selling%price%(ASP)%CryoBody%capital%unit%($)Average%selling%price%(ASP)%CryoBody%treatment%($)

Step  3:  Create  a  staffing  plan    

               

1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Phase&1:&Startup&3rd-party-opinions-

Negotiate-licensing-agreements

Finalize-busines-plan

Engage-investors

Secure-1st-round-financing

Phase&2:&Product&DevelopmentCryoBody-formulation

Antifreeze-biomanufacturing

Rodent-study

Primate-study

Finalize-product-design-

Phase&3:&FDA&Approval&First-in-man

Pivotal-study

Pilot-study

FDA-approval

Finalize-manufacturing

Phase&4:&Product&Roll<Out&Marketing-campaign

Initial-sales-force-hires

Design-training-programs

Establish-reimbursement-support

Finalize-product-availability

Year&0& Year&9Year&4 Year&5Operating&Plan Year&1 Year&2 Year&3 Year&10Year&6 Year&7 Year&8

1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Manufacturing&Engineers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3

Assemblers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 5 5 5 5 11 11 11 11 11 23 23 23 23 23 23 23 23 23 23 23 23

Total-Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 6 6 6 6 13 13 13 13 13 26 26 26 26 26 26 26 26 26 26 26 26

Research&&&DevelopmentScientists 0 0 0 0 3 3 3 3 3 3 3 3 3 3 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 1 1 1

Engineers- 0 0 0 0 0 0 3 3 3 3 3 3 3 3 7 7 7 7 7 7 7 7 7 7 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Technicians 0 0 0 0 1 1 2 2 2 2 2 2 5 5 5 5 9 9 9 9 11 11 11 11 11 11 11 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15

Clinical,-regulatory-and-QA 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 2 2 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Total-R&D 0 0 0 0 4 4 8 8 8 8 8 8 11 12 14 15 19 19 19 20 22 22 22 23 19 19 19 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23

Sales,&general&&&administrativeSales-and-marketing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 3 3 3 6 7 7 7 20 20 34 34 41 41 53 54 63 63 72 72 79 79 83 83

Administrative 0 0 0 0 0 0 0 0 1 1 1 1 1 3 3 3 3 3 3 3 7 7 7 7 7 7 7 7 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12

General-Management- 0 0 0 0 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 8 8 8 8 9 9 9 9 10 10 10 10 10 10 10 10 10 10 10 10 10

Total-SG&A 0 0 0 0 2 2 2 2 4 4 4 4 4 6 6 6 6 6 6 7 14 14 14 18 21 22 22 23 41 41 55 56 63 63 75 76 85 85 94 94 101 101 105 105

Total&StaffingManufacturing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 6 6 6 6 13 13 13 13 13 26 26 26 26 26 26 26 26 26 26 26 26

Research-&-Development 0 0 0 0 4 4 8 8 8 8 8 8 11 12 14 15 19 19 19 20 22 22 22 23 19 19 19 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23

Sales,-general-&-administrative 0 0 0 0 2 2 2 2 4 4 4 4 4 6 6 6 6 6 6 7 14 14 14 18 21 22 22 23 41 41 55 56 63 63 75 76 85 85 94 94 101 101 105 105

Total&staffing 0 0 0 0 6 6 10 10 12 12 12 12 15 18 20 21 25 25 25 27 38 38 38 47 46 47 47 59 77 77 91 92 112 112 124 125 134 134 143 143 150 150 154 154

Year&9 Year&10Year&0 Year&7 Year&8Staffing&Plan Year&1 Year&2 Year&3 Year&4 Year&5 Year&6

Step  4:  Create  salary  assumptions    

 

Staffing(Plan( Year(1 Year(2 Year(3 Year(4 Year(5 Year(6 Year(7 Year(8 Year(9 Year(10Manufacturing(Engineers ())))))))))) ())))))))))) ())))))))))) ())))))))))) 1.0)))))))))))) 1.3)))))))))))) 2.0)))))))))))) 3.0)))))))))))) 3.0)))))))))))) 3.0))))))))))))Assemblers ())))))))))) ())))))))))) ())))))))))) ())))))))))) 2.0)))))))))))) 6.5)))))))))))) 11.0))))))))) 23.0))))))))) 23.0))))))))) 23.0)))))))))

Research(&(DevelopmentScientists 3.0)))))))))))) 3.0)))))))))))) 2.0)))))))))))) 1.0)))))))))))) 1.0)))))))))))) 1.0)))))))))))) 1.0)))))))))))) 1.0)))))))))))) 1.0)))))))))))) 1.0))))))))))))Engineers) 1.5)))))))))))) 3.0)))))))))))) 5.0)))))))))))) 7.0)))))))))))) 7.0)))))))))))) 3.0)))))))))))) 3.0)))))))))))) 3.0)))))))))))) 3.0)))))))))))) 3.0))))))))))))Technicians 1.5)))))))))))) 2.0)))))))))))) 5.0)))))))))))) 9.0)))))))))))) 11.0))))))))) 12.0))))))))) 15.0))))))))) 15.0))))))))) 15.0))))))))) 15.0)))))))))Clinical,)regulatory)and)QA ())))))))))) ())))))))))) 1.0)))))))))))) 2.3)))))))))))) 3.3)))))))))))) 4.0)))))))))))) 4.0)))))))))))) 4.0)))))))))))) 4.0)))))))))))) 4.0))))))))))))

Sales,(general(&(administrativeSales)and)marketing ())))))))))) ())))))))))) ())))))))))) ())))))))))) 3.0)))))))))))) 6.8)))))))))))) 27.0))))))))) 47.3))))))))) 67.5))))))))) 81.0)))))))))Administrative ())))))))))) 1.0)))))))))))) 2.5)))))))))))) 3.0)))))))))))) 7.0)))))))))))) 7.0)))))))))))) 12.0))))))))) 12.0))))))))) 12.0))))))))) 12.0)))))))))General)Management) 2.0)))))))))))) 3.0)))))))))))) 3.0)))))))))))) 3.3)))))))))))) 5.0)))))))))))) 8.3)))))))))))) 9.3)))))))))))) 10.0))))))))) 10.0))))))))) 10.0)))))))))

Total(StaffingManufacturing ())))))))))) ())))))))))) ())))))))))) ())))))))))) 3.0)))))))))))) 7.8)))))))))))) 13.0))))))))) 26.0))))))))) 26.0))))))))) 26.0)))))))))Research)&)Development 6.0)))))))))))) 8.0)))))))))))) 13.0))))))))) 19.3))))))))) 22.3))))))))) 20.0))))))))) 23.0))))))))) 23.0))))))))) 23.0))))))))) 23.0)))))))))Sales,)general)&)administrative 2.0)))))))))))) 4.0)))))))))))) 5.5)))))))))))) 6.3)))))))))))) 15.0))))))))) 22.0))))))))) 48.3))))))))) 69.3))))))))) 89.5))))))))) 103.0)))))))Total)non(manufacturing 8.0)))))))))))) 12.0))))))))) 18.5))))))))) 25.5))))))))) 37.3))))))))) 42.0))))))))) 71.3))))))))) 92.3))))))))) 112.5))))))) 126.0)))))))Total)staffing)overall 8.0)))))))))))) 12.0))))))))) 18.5))))))))) 25.5))))))))) 40.3))))))))) 49.8))))))))) 84.3))))))))) 118.3))))))) 138.5))))))) 152.0)))))))

Salary(Assumptions Factor Salary(($)Scientists 2))))))))))))))) 130,000))) 260,000)))Engineers 2))))))))))))))) 130,000))) 260,000)))Technicians 2))))))))))))))) 50,000))))) 100,000)))Clinical,)regulatory,)QA 2))))))))))))))) 130,000))) 260,000)))Sales)and)marketing 2))))))))))))))) 100,000))) 200,000)))Administrative 2))))))))))))))) 35,000))))) 70,000)))))Manufacturing 1.5)))))))))))) 35,000))))) 52,500)))))General)Management 2))))))))))))))) 215,000))) 430,000)))Yearly)salary)increase 2.50%

Fully(burdened(salary(($) Year(1 Year(2 Year(3 Year(4 Year(5 Year(6 Year(7 Year(8 Year(9 Year(10Scientists 260,000))) 266,500))) 273,163))) 279,992))) 286,991))) 294,166))) 301,520))) 309,058))) 316,785))) 324,704)))Engineers 260,000))) 266,500))) 273,163))) 279,992))) 286,991))) 294,166))) 301,520))) 309,058))) 316,785))) 324,704)))Technicians 100,000))) 102,500))) 105,063))) 107,689))) 110,381))) 113,141))) 115,969))) 118,869))) 121,840))) 124,886)))Clinical,)regulatory,)QA 260,000))) 266,500))) 273,163))) 279,992))) 286,991))) 294,166))) 301,520))) 309,058))) 316,785))) 324,704)))Sales)and)marketing 200,000))) 205,000))) 210,125))) 215,378))) 220,763))) 226,282))) 231,939))) 237,737))) 243,681))) 249,773)))Administrative 70,000))))) 71,750))))) 73,544))))) 75,382))))) 77,267))))) 79,199))))) 81,179))))) 83,208))))) 85,288))))) 87,420)))))Manufacturing 52,500))))) 53,813))))) 55,158))))) 56,537))))) 57,950))))) 59,399))))) 60,884))))) 62,406))))) 63,966))))) 65,565)))))General)Management 430,000))) 440,750))) 451,769))) 463,063))) 474,640))) 486,506))) 498,668))) 511,135))) 523,913))) 537,011)))

Step  5:  Determine  manufacturing  costs    

           

Manufacturing+labor Year+1 Year+2 Year+3 Year+4 Year+5 Year+6 Year+7 Year+8 Year+9 Year+10#"of"engineers +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 1""""""""""""""""""""" 1"""""""""""""""""""" 2""""""""""""""""""" 3"""""""""""""""""""""" 3"""""""""""""""""""""" 3""""""""""""""""""""""

Manufacturing+Costs

Fully"loaded"employee"cost +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 286,991""""""""" 367,708""""""""" 603,041""""""" 927,175""""""""""" 950,354""""""""""" 974,113"""""""""""#"direct"labor +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 2""""""""""""""""""""" 7"""""""""""""""""""" 11""""""""""""""""" 23"""""""""""""""""""" 23"""""""""""""""""""" 23""""""""""""""""""""Fully"loaded"employee"cost +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 115,900""""""""" 386,093""""""""" 669,723""""""" 1,435,338""""""" 1,471,221""""""" 1,508,002"""""""Manufacturing+labor+cost+($) @++++++++++++++++ @++++++++++++++++ @+++++++++++++++++ @+++++++++++++++++ 402,892+++++++++ 753,801+++++++++ 1,272,764++++ 2,362,513+++++++ 2,421,576+++++++ 2,482,115+++++++

Manufacturing+facilities Year+1 Year+2 Year+3 Year+4 Year+5 Year+6 Year+7 Year+8 Year+9 Year+10Cost"per"sq."foot"($) 25.00"""""""""""" 25.63"""""""""""" 26.27""""""""""""" 26.92""""""""""""" 27.60"""""""""""""" 28.29""""""""""""" 28.99"""""""""""" 29.72""""""""""""""" 30.46""""""""""""""" 31.22"""""""""""""""Inflation N/A 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Sq."footage"/"employee +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 250""""""""""""""""" 240"""""""""""""""" 230""""""""""""""" 220"""""""""""""""""" 210"""""""""""""""""" 200""""""""""""""""""#"of"manufactruing"employees +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 3""""""""""""""""""""" 8"""""""""""""""""""" 13""""""""""""""""" 26"""""""""""""""""""" 26"""""""""""""""""""" 26""""""""""""""""""""Sq."footage"required +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 750""""""""""""""""" 1,860""""""""""""" 2,990"""""""""""" 5,720""""""""""""""" 5,460""""""""""""""" 5,200"""""""""""""""Projected"sq."footage +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 3,000"""""""""""""" 3,000""""""""""""" 3,000"""""""""""" 6,000""""""""""""""" 6,000""""""""""""""" 6,000"""""""""""""""Manufacturing+facilities+costs+($) @++++++++++++++++ @++++++++++++++++ @+++++++++++++++++ @+++++++++++++++++ 82,786+++++++++++ 84,856+++++++++++ 86,977+++++++++ 178,303++++++++++ 182,760++++++++++ 187,329++++++++++

Raw+materials Year+1 Year+2 Year+3 Year+4 Year+5 Year+6 Year+7 Year+8 Year+9 Year+10Units"sold +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 135"""""""""""""""" 540""""""""""""""" 945"""""""""""""""""" 1,350""""""""""""""" 1,620"""""""""""""""Raw"material"costs"per"unit"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 5,000""""""""""""" 4,500"""""""""""" 4,050""""""""""""""" 3,645""""""""""""""" 3,281"""""""""""""""total"cost"units"sold"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 675,000""""""""" 2,430,000"""" 3,827,250""""""" 4,920,750""""""" 5,314,410"""""""Treatments"sold +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 5,070""""""""""""" 47,190""""""""" 207,480""""""""""" 546,975""""""""""" 1,113,060"""""""Raw"material"costs"per"treatment"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 40"""""""""""""""""" 36""""""""""""""""" 32"""""""""""""""""""" 29"""""""""""""""""""" 26""""""""""""""""""""total"cost"treatments"sold +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 202,800""""""""" 1,698,840"""" 6,722,352""""""" 15,949,791""""" 29,211,147"""""%"improvement N/A N/A N/A N/A N/A 10% 10% 10% 10% 10%Total+COGS+($) @+++++++++++++++++ 877,800+++++++++ 4,128,840++++ 10,549,602+++++ 20,870,541+++++ 34,525,557+++++

Manufacturing+Costs Year+1 Year+2 Year+3 Year+4 Year+5 Year+6 Year+7 Year+8 Year+9 Year+10Manufacturing"labor"cost"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 402,892""""""""" 753,801""""""""" 1,272,764"""" 2,362,513""""""" 2,421,576""""""" 2,482,115"""""""Manufacturing"facilities"cost"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" 82,786"""""""""""" 84,856""""""""""" 86,977""""""""" 178,303""""""""""" 182,760""""""""""" 187,329"""""""""""Cost"of"Goods"Sold"($) +"""""""""""""""" +"""""""""""""""" +""""""""""""""""" +""""""""""""""""" +""""""""""""""""" 877,800""""""""" 4,128,840"""" 10,549,602""""" 20,870,541""""" 34,525,557"""""Total+Manufacturing+Costs+($) @++++++++++++++++ @++++++++++++++++ @+++++++++++++++++ @+++++++++++++++++ 485,678+++++++++ 1,716,456++++++ 5,488,581++++ 13,090,418+++++ 23,474,877+++++ 37,195,001+++++

Step  6:  Determine  operating  expenses  (R&D)      

                     

R&D$Spending Year$1 Year$2 Year$3 Year$4 Year$5 Year$6 Year$7 Year$8 Year$9 Year$10Staff$Costs#"of"Scientists 3""""""""""""""""""" 3""""""""""""""""""" 2"""""""""""""""""""" 1"""""""""""""""""""" 1""""""""""""""""""""" 1"""""""""""""""""""" 1""""""""""""""""""" 1"""""""""""""""""""""" 1"""""""""""""""""""""" 1""""""""""""""""""""""

Operating$Expenses

Fully"loaded"employee"cost" 780,000"""""""" 799,500"""""""" 546,325""""""""" 279,992""""""""" 286,991""""""""" 294,166""""""""" 301,520""""""" 309,058""""""""""" 316,785""""""""""" 324,704"""""""""""

#"of"Engineers 2""""""""""""""""""" 3""""""""""""""""""" 5"""""""""""""""""""" 7"""""""""""""""""""" 7""""""""""""""""""""" 3"""""""""""""""""""" 3""""""""""""""""""" 3"""""""""""""""""""""" 3"""""""""""""""""""""" 3""""""""""""""""""""""

Fully"loaded"employee"cost" 390,000"""""""" 799,500"""""""" 1,365,813"""""" 1,959,941"""""" 2,008,939"""""" 882,498""""""""" 904,561""""""" 927,175""""""""""" 950,354""""""""""" 974,113"""""""""""

#"of"Technicians 2""""""""""""""""""" 2""""""""""""""""""" 5"""""""""""""""""""" 9"""""""""""""""""""" 11""""""""""""""""""" 12"""""""""""""""""" 15""""""""""""""""" 15"""""""""""""""""""" 15"""""""""""""""""""" 15""""""""""""""""""""

Fully"loaded"employee"cost" 150,000"""""""" 205,000"""""""" 525,313""""""""" 969,202""""""""" 1,214,194"""""" 1,357,690"""""" 1,739,540"""" 1,783,029""""""" 1,827,604""""""" 1,873,294"""""""

#"of"Clinical,"regulatory"&"QA H"""""""""""""""" H"""""""""""""""" 1"""""""""""""""""""" 2"""""""""""""""""""" 3""""""""""""""""""""" 4"""""""""""""""""""" 4""""""""""""""""""" 4"""""""""""""""""""""" 4"""""""""""""""""""""" 4""""""""""""""""""""""

Fully"loaded"employee"cost" H"""""""""""""""" H"""""""""""""""" 273,163""""""""" 629,981""""""""" 932,722""""""""" 1,176,665"""""" 1,206,081"""" 1,236,233""""""" 1,267,139""""""" 1,298,817"""""""

Staff"costs 1,320,000"""" 1,804,000"""" 2,710,613"""""" 3,839,115"""""" 4,442,847"""""" 3,711,019"""""" 4,151,702"""" 4,255,495""""""" 4,361,882""""""" 4,470,929"""""""

Clinical$Trial$CostsEst."#"of"patientHyear"in"each"year H"""""""""""""""" H"""""""""""""""" H""""""""""""""""" 60"""""""""""""""""" 60""""""""""""""""""" 60"""""""""""""""""" 60""""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

Cost"per"patientHyear 15,000"""""""""" 15,000"""""""""" 15,000""""""""""" 10,000""""""""""" 10,000"""""""""""" 10,000""""""""""" 10,000""""""""" 10,000""""""""""""" 10,000""""""""""""" 10,000"""""""""""""

Clinical"trial"costs H"""""""""""""""" H"""""""""""""""" H""""""""""""""""" 1,200,000"""""" 1,200,000"""""" 1,200,000"""""" 1,200,000"""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

PreHClinical"Trial"Costs

Est."#"of"rodentHyears"in"each"year 100""""""""""""""" 100""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

Cost"per"rodentHyear 500""""""""""""""" 500""""""""""""""" 500"""""""""""""""" 500"""""""""""""""" 500""""""""""""""""" 500"""""""""""""""" 500""""""""""""""" 500"""""""""""""""""" 500"""""""""""""""""" 500""""""""""""""""""

Total"cost"of"rodent"trials 50,000"""""""""" 50,000"""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

Est."#"of"primateHyears"in"each"year H"""""""""""""""" H"""""""""""""""" 6"""""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

Cost"per"primateHyear 100,000"""""""" 100,000"""""""" 100,000""""""""" 100,000""""""""" 100,000""""""""" 100,000""""""""" 100,000""""""" 100,000""""""""""" 100,000""""""""""" 100,000"""""""""""

Total"cost"of"primate"trials H"""""""""""""""" H"""""""""""""""" 600,000""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

PreHclinical"costs 50,000"""""""""" 50,000"""""""""" 600,000""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""""" H""""""""""""""" H"""""""""""""""""" H"""""""""""""""""" H""""""""""""""""""

Total$R&D$costs 1,370,000$$$$ 1,854,000$$$$ 3,310,613$$$$$$ 5,039,115$$$$$$ 5,642,847$$$$$$ 4,911,019$$$$$$ 5,351,702$$$$ 4,255,495$$$$$$$ 4,361,882$$$$$$$ 4,470,929$$$$$$$

Step  7:  Determine  operating  expenses  (SG&A)    

   

         

SG&A%Spending Year%1 Year%2 Year%3 Year%4 Year%5 Year%6 Year%7 Year%8 Year%9 Year%10Staff%costs#"of"sales"and"marketing"reps 2"""""""""""""""" 2"""""""""""""""" 2""""""""""""""""" 2""""""""""""""""" 3""""""""""""""""""""" 7"""""""""""""""""""" 27""""""""""""""""" 47"""""""""""""""""""" 68"""""""""""""""""""" 81""""""""""""""""""""Fully"loaded"employee"cost"($) 2"""""""""""""""" 2"""""""""""""""" 2""""""""""""""""" 2""""""""""""""""" 662,288""""""""" 1,527,401"""""" 6,262,344"""" 11,233,080""""" 16,448,439""""" 20,231,580"""""#"of"administrations 2"""""""""""""""" 1""""""""""""""""""" 3"""""""""""""""""""" 3"""""""""""""""""""" 7""""""""""""""""""""" 7"""""""""""""""""""" 12""""""""""""""""" 12"""""""""""""""""""" 12"""""""""""""""""""" 12""""""""""""""""""""Fully"loaded"employee"cost"($) 2"""""""""""""""" 71,750"""""""""" 183,859""""""""" 226,147""""""""" 540,868""""""""" 554,390""""""""" 974,142""""""" 998,496""""""""""" 1,023,458""""""" 1,049,045"""""""#"of"general"management 2""""""""""""""""""" 3""""""""""""""""""" 3"""""""""""""""""""" 3"""""""""""""""""""" 5""""""""""""""""""""" 8"""""""""""""""""""" 9""""""""""""""""""" 10"""""""""""""""""""" 10"""""""""""""""""""" 10""""""""""""""""""""Fully"loaded"employee"cost"($) 860,000"""""""" 1,322,250"""" 1,355,306"""""" 1,504,955"""""" 2,373,198"""""" 4,013,671"""""" 4,612,681"""" 5,111,349""""""" 5,239,132""""""" 5,370,111"""""""Staff"cost"($) 860,000"""""""" 1,394,000"""" 1,539,166"""""" 1,731,102"""""" 3,576,354"""""" 6,095,462"""""" 11,849,168"" 17,342,925""""" 22,711,030""""" 26,650,736"""""Facilitiees%costscost"per"sq."foot"($) 25.00"""""""""""" 25.63"""""""""""" 26.27""""""""""""" 26.92""""""""""""" 27.60"""""""""""""" 28.29""""""""""""" 28.99"""""""""""" 29.72""""""""""""""" 30.46""""""""""""""" 31.22"""""""""""""""Inflation N/A 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Sq."footage"/"employee 200""""""""""""""" 200""""""""""""""" 200"""""""""""""""" 200"""""""""""""""" 200""""""""""""""""" 200"""""""""""""""" 200""""""""""""""" 200"""""""""""""""""" 200"""""""""""""""""" 200""""""""""""""""""#"of"employees 2""""""""""""""""""" 4""""""""""""""""""" 6"""""""""""""""""""" 6"""""""""""""""""""" 15""""""""""""""""""" 22"""""""""""""""""" 48""""""""""""""""" 69"""""""""""""""""""" 90"""""""""""""""""""" 103""""""""""""""""""Sq."footage"required 400""""""""""""""" 800""""""""""""""" 1,100""""""""""""" 1,250""""""""""""" 3,000"""""""""""""" 4,400""""""""""""" 9,650"""""""""""" 13,850""""""""""""" 17,900""""""""""""" 20,600"""""""""""""Projected"sq."footage 1,000"""""""""""" 1,000"""""""""""" 3,000""""""""""""" 3,000""""""""""""" 15,000"""""""""""" 15,000""""""""""" 15,000""""""""" 15,000""""""""""""" 25,000""""""""""""" 25,000"""""""""""""Facilities"cost"($) 25,000"""""""""" 25,625"""""""""" 78,797""""""""""" 80,767""""""""""" 413,930""""""""" 424,278""""""""" 434,885""""""" 445,757""""""""""" 761,502""""""""""" 780,539"""""""""""

Total"SG&A"cost"($) 885,000"""""""" 1,419,625"""" 1,617,963"""""" 1,811,868"""""" 3,990,284"""""" 6,519,740"""""" 12,284,053"" 17,788,682""""" 23,472,532""""" 27,431,275"""""

Total%Operating%Costs Year%1 Year%2 Year%3 Year%4 Year%5 Year%6 Year%7 Year%8 Year%9 Year%10R&D"costs"($) 1,370,000"""" 1,854,000"""" 3,310,613"""""" 5,039,115"""""" 5,642,847"""""" 4,911,019"""""" 5,351,702"""" 4,255,495""""""" 4,361,882""""""" 4,470,929"""""""SG&A"costs"($) 885,000"""""""" 1,419,625"""" 1,617,963"""""" 1,811,868"""""" 3,990,284"""""" 6,519,740"""""" 12,284,053"" 17,788,682""""" 23,472,532""""" 27,431,275"""""Total%operating%costs%($) 2,255,000%%%% 3,273,625%%%% 4,928,575%%%%%% 6,850,984%%%%%% 9,633,130%%%%%% 11,430,759%%% 17,635,755% 22,044,177%%%%% 27,834,414%%%%% 31,902,205%%%%%

Step  8:  Create  an  Income  Statement      

 

 

                 

Revenue Year)1 Year)2 Year)3 Year)4 Year)5 Year)6 Year)7 Year)8 Year)9 Year)10Revenue)($) 7))))))) 7)))))))))))))))) 7))))))))))))))))) 7))))))))))))))))) 7))))))))))))))))) 9,555,000)))))) 51,158,250) 149,837,688))) 333,479,638))) 615,521,105)))Manufacturing+costs+($) 1 1 1 1 485,678+++++++++ 1,716,456++++++ 5,488,581++++ 13,090,418+++++ 23,474,877+++++ 37,195,001+++++Gross+margin+($) 1 1 1 1 (485,678)++++++++ 7,838,544++++++ 45,669,669++ 136,747,270+++ 310,004,760+++ 578,326,104+++gross+margin+(%+of+sales) N/A N/A N/A N/A N/A 82% 89% 91% 93% 94%

Operating)expenses Year)1 Year)2 Year)3 Year)4 Year)5 Year)6 Year)7 Year)8 Year)9 Year)10R&D+costs+($) 1,370,000++++ 1,854,000++++ 3,310,613++++++ 5,039,115++++++ 5,642,847++++++ 4,911,019++++++ 5,351,702++++ 4,255,495+++++++ 4,361,882+++++++ 4,470,929+++++++%+of+sales N/A N/A N/A N/A N/A 51% 10% 3% 1% 1%SG&A+costs+($) 885,000++++++++ 1,419,625++++ 1,617,963++++++ 1,811,868++++++ 3,990,284++++++ 6,519,740++++++ 12,284,053++ 17,788,682+++++ 23,472,532+++++ 27,431,275+++++%+of+sales N/A N/A N/A N/A N/A 68% 24% 12% 7% 4%SG&A+facility+costs+($) 25,000++++++++++ 25,625++++++++++ 78,797+++++++++++ 80,767+++++++++++ 413,930+++++++++ 424,278+++++++++ 434,885+++++++ 445,757+++++++++++ 761,502+++++++++++ 780,539+++++++++++%+of+sales N/A N/A N/A N/A N/A 4% 1% 0.30% 0.23% 0.13%Total)operating)expenses)($) 2,255,000)))) 3,273,625)))) 4,928,575)))))) 6,850,984)))))) 9,633,130)))))) 11,430,759))) 17,635,755) 22,044,177))))) 27,834,414))))) 31,902,205)))))%+of+sales N/A N/A N/A N/A N/A 120% 34% 15% 8% 5%

Pre7tax)operating)profit) (2,255,000)))) (3,273,625)))) (4,928,575))))) (6,850,984))))) (10,118,808))) (3,592,215))))) 28,033,914) 114,703,093))) 282,170,346))) 546,423,900)))Operating+Margin 138% 55% 77% 85% 89%

Income)Statement

Step  9:  Create  a  Cash  Flow  Statement      

   

   

 

             

Year%1 Year%2 Year%3 Year%4 Year%5 Year%6 Year%7 Year%8 Year%9 Year%10Pre1tax%operating%profit%(loss) (2,255,000)%%% (3,273,625)%%% (4,928,575)%%%% (6,850,984)%%%% (10,118,808)%% (3,592,215)%%%% 28,033,914% 114,703,093%%% 282,170,346%%% 546,423,900%%%

Capital%equipment%purchased#"of"non&manufacturing"employees 8""""""""""""""""""" 12""""""""""""""""" 19"""""""""""""""""" 26"""""""""""""""""" 37""""""""""""""""""" 42"""""""""""""""""" 71""""""""""""""""" 92"""""""""""""""""""" 113"""""""""""""""""" 126""""""""""""""""""

Cost"of"employee"supplies" 7,500"""""""""""" 7,500"""""""""""" 7,500""""""""""""" 7,500""""""""""""" 7,500"""""""""""""" 7,500""""""""""""" 7,500"""""""""""" 7,500""""""""""""""" 7,500""""""""""""""" 7,500"""""""""""""""

Total"cost"of"employee"supplies" 60,000"""""""""" 90,000"""""""""" 138,750""""""""" 191,250""""""""" 279,375""""""""" 315,000""""""""" 534,375""""""" 691,875""""""""""" 843,750""""""""""" 945,000"""""""""""

Clean"room"($) 100,000""""""""" 500,000""""""""" 300,000"""""""""""

Manufacturing"equipment"($) 250,000"""""""" 250,000"""""""" 250,000""""""""" 250,000""""""""" &""""""""""""""""" &""""""""""""""""" &""""""""""""""" &"""""""""""""""""" &"""""""""""""""""" &""""""""""""""""""

Total%capital%equipment%purchase%($) 310,000%%%%%%% 340,000%%%%%%% 488,750%%%%%%%%% 441,250%%%%%%%%% 779,375%%%%%%%%% 315,000%%%%%%%%% 534,375%%%%%%% 691,875%%%%%%%%%% 1,143,750%%%%%%% 945,000%%%%%%%%%%

Raw"material"costs"($) &"""""""""""""""" &"""""""""""""""" &""""""""""""""""" &""""""""""""""""" &""""""""""""""""" 877,800""""""""" 4,128,840"""" 10,549,602""""" 20,870,541""""" 34,525,557"""""

Factor 0.35"""""""""""""" 0.35"""""""""""""" 0.35""""""""""""""" 0.35""""""""""""""" 0.35"""""""""""""""" 0.35""""""""""""""" 0.35"""""""""""""" 0.35""""""""""""""""" 0.35""""""""""""""""" 0.35"""""""""""""""""

Inventory%build 1%%%%%%%%%%%%%%%% 1%%%%%%%%%%%%%%%% 1%%%%%%%%%%%%%%%%% 1%%%%%%%%%%%%%%%%% 1%%%%%%%%%%%%%%%%% 307,230%%%%%%%%% 1,445,094%%%% 3,692,361%%%%%%% 7,304,689%%%%%%% 12,083,945%%%%%

Total"cash"flow"from"the"year (1,945,000)""" (2,933,625)""" (4,439,825)"""" (6,409,734)"""" (9,339,433)""""" (3,277,215)"""" 28,568,289"" 115,394,968""" 283,314,096""" 547,368,900"""

Cumulative"cash"flow (1,945,000)""" (4,878,625)""" (9,318,450)"""" (15,728,184)"" (25,067,617)"" (28,344,832)"" 223,458""""""" 115,618,426""" 398,932,522""" 946,301,421"""

Cash%needs Year%1 Year%2 Year%3 Year%4 Year%5 Year%6 Year%7 Year%8 Year%9 Year%10cash"balance (1,945,000)""" (2,878,625)""" 681,550""""""""" (5,728,184)"""" (5,067,617)""""" 1,655,168"""""" 30,223,458""

suggested"amount"financed 2,000,000"""" 8,000,000"""" 10,000,000""" 10,000,000""""

post&financing"cash"in"the"bank 55,000"""""""""" 5,121,375"""" 681,550""""""""" 4,271,816"""""" 4,932,383"""""" 1,655,168"""""" 30,446,915""

Cash%Flow%Statement

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