Deep Current, Inc.
Financial Projections
Economic Assumptions	FY2001	FY 2002	FY 2003	FY 2004	%
Inflation	100.0%	100.0%	103.0%	106.1%	103.0%
Real Growth Rate	100.0%	112.0%	125.4%	140.5%	112.0%
Income Tax Rate	40.0%	40.0%	40.0%	40.0%
Interest Rate on Cash Balances	0.3%	0.3%	0.3%	0.3%
Interest Rate on Debt	0.0%	10.0%	10.0%	10.0%
Discount Rate	45.0%	35.0%	25.0%	15.0%
Dividend Payout Rate	0.0%	0.0%	0.0%	0.0%
User Sales Assumptions	FY2001	FY 2002	FY 2003	FY 2004
Covered Population	235,000,000	235,000,000	235,000,000	235,000,000
Computer Users	60.0%	65.0%	70.0%	75.0%
Penetration Rate	33.3%	33.3%	33.3%	33.3%
Months to Penetrate	100.00	100.00	36.00	36.00
Percentage Covered Per User by Insurance	90%	80%	50%	30%
Price Per Actual User	$             1.250	$        1.250	$        1.000	$        1.000
Price Per Blanket User	$             0.150	$        0.150	$        0.100	$        0.100
Actual User Penetration	10.0%	10.0%	10.0%	10.0%
Blanket User Penetration	10.0%	16.7%	23.3%	30.0%
Cost of Sales Assumptions	FY2001	FY 2002	FY 2003	FY 2004
Cost of Direct Merchandise Sold	50%	50%	50%	50%
Hosting	1500	2500	5000	7500
Productivity
Concurrent Users % of Visitors	2%	5%	10%	20%
Cost Per Meg of Bandwidth	$                750	$           650	$           650	$           650
Support & Administration	$             5,000	$        5,000	$        7,500	$        9,500
Operating Expense Assumptions	FY2001	FY 2002	FY 2003	FY 2004	Minimum
Sales & Marketing
Advertising/PR	10.0%	7.5%	7.5%	7.5%	$  7,500.00
Agencies (Advertising & PR)	10%	10%	10%	10%	$2,500
Commissions on Corporate Sales	5%	5%	8%	10%
Marketing Materials Per new Customer	$               0.05	$          0.05	$          0.10	$          0.20
Seminars	$                  -	$        5,000	$        7,650	$        8,116
Trade Shows/Travel	$             5,000	$      10,000	$      20,000	$      35,000
Compensation
Benefits	9.00%	10.10%	15.10%	15.10%
Bonuses & Incentives	10%	10%	10%	10%
Education	$             50.00	$      100.00	$      200.00	$      400.00
Payroll Taxes	10.10%	10.10%	10.10%	10.10%
Facilities & Office
Equipment Lease Indirect
Maintenance & Repairs	0.83%	0.83%	0.83%	0.83%
Office Supplies	1.00%	0.50%	0.30%	0.10%	$     250.00
Phone	$        1,500.00	$    1,750.00	$    2,150.00	$    3,705.00
Rent (per Sqaure Foot)	$               2.00	$          2.00	$          2.00	$          2.00	$  3,000.00	$  100.00
Utilities	$           200.00	$      450.00	$      910.00	$    1,600.00
General & Administrative
Auto Expense	$                  -	$             -	$    2,500.00	$    5,000.00
Bank Charges	$             25.00	$      100.00	$      250.00	$      500.00
Dues & Subscriptions	$           200.00	$    1,000.00	$    2,000.00	$    5,000.00
Insurance	1%	0.50%	0.25%	0.20%
Legal & Professional Fees	$           10,000	$      10,000	$      35,555	$      55,445
Product Development
Automation &  Programming	$           12,500	$      12,500	$      15,000	$      15,000
Content Licensing Fee	10%	10%	15%	15%	sales
New Product Development	$           10,000	$      10,000	$      30,000	$      40,000
Web Design	$             5,000	$        5,000	$        5,150	$        5,464
Capital Assumptions	FY2001	FY 2002	FY 2003	FY 2004	Basis	Start-up
Cost Per MB	$               0.05	$          0.04	$          0.02	$          0.02
Mb Per User	0.50	0.50	0.50	0.50
MB Per Employee	1,000.00	1,000.00	1,000.00	1,000.00
Bandwidth Per Concurrent User	0.128	0.256	0.384	0.512
Cost Per Server	$       10,000.00	$      10,000	$      10,300	$      10,927		$  25,000
Furniture Per New Employee	$        2,000.00	$        2,000	$        2,060	$        2,185	new hire
Computer Per New Employee	$        5,000.00	$        5,000	$        5,150	$        5,464	new hire
Leasehold Improvements	$                  -	$        1,000	$        1,000	$        1,000	monthly
Employees Per Server	20	20	20	20
Concurrent Users Per Server	2,500	2,500	2,500	2,500
LEASING ASSUMPTIONS	FY2001	FY 2002	FY 2003	FY 2004
% Leased	0%	0%	0%	0%
Term	$             36.00	$        36.00	$        36.00	$        36.00
Rate	12%	12%	12%	12%
Payment Per 1,000	$             37.78	$        37.78	$        37.78	$        37.78
Balance Sheet Assumptions	FY2001	FY 2002	FY 2003	FY 2004
Account Receivable Days	30.0	30.0	30.0	25.0
Inventory Days	0.0	0.0	0.0	0.0
Accounts Payable Days	30.0	30.0	30.0	30.0
Accrued Expenses Days	10.0	9.0	8.0	7.0
Compensation Assumptions	FY2001	FY 2002	FY 2003	FY 2004	Basis
CEO	$                  10,833	$  15,833.33	$  16,308.33	$  17,301.51
COO	$                  10,833	$  15,833.33	$  16,308.33	$  17,301.51
VP Product Development	$                    7,000	$    7,000.00	$    7,210.00	$    7,649.09
Business Analyst/Assistants	$                    5,000	$    5,000.00	$    5,150.00	$    5,463.64
VP Sales - Health Care	$                  15,000	$  15,000.00	$  15,450.00	$  16,390.91
Corporate Telesales	$                    5,000	$    5,000.00	$    5,150.00	$    5,463.64
Marketing Director	$                    5,000	$    5,000.00	$    5,150.00	$    5,463.64
Web Marketing Coordinator	$                    3,000	$    3,000.00	$    3,090.00	$    3,278.18
Sales & Marketing Assistants	$                    4,000	$    4,000.00	$    4,120.00	$    4,370.91
Controller	$                    6,500	$    6,500.00	$    6,695.00	$    7,102.73
Training Director	$                    5,000	$    5,000.00	$    5,150.00	$    5,463.64
Customer Service Reps	$                    3,500	$    3,500.00	$    3,605.00	$    3,824.54
Module Production Project Manager	$                    4,000	$    4,000.00	$    4,120.00	$    4,370.91
Miscellaneous	$                    4,000	$    4,000.00	$    4,120.00	$    4,370.91
Miscellaneous 2	$                    4,000	$    4,000.00	$    4,120.00	$    4,370.91