Deep Current, Inc.
Financial Projections
Income Statement FY 2001 FY 2002 FY 2003 FY 2004
Revenue 321,159 5,941,294 12,874,771 22,257,835   Pessimistic (P) Average (A) Optimistic (O)
Cost of Sales 43,000 90,517 159,159 293,021 $ in thousands 2001P 2002P 2003P 2004P 2001A 2002A 2003A 2004A 2001O 2002O 2003O 2004O
Gross Profit 278,159 5,850,777 12,715,612 21,964,814  Revenues 321 5,941 12,875 22,258 386 7,167 16,702 30,114 451 8,393 20,529 37,969
Operating Expenses 1,024,868 4,415,165 9,030,721 15,882,851  Expenses 1,068 4,506 9,190 16,176 1,081 4,849 10,344 18,724 1,094 5,193 11,497 21,273
EBITDA (746,710) 1,435,612 3,684,890 6,081,964  EBITDA (747) 1,436 3,685 6,082 (695) 2,318 6,358 11,389 (643) 3,201 9,031 16,696
Net Income (783,005) 1,101,504 2,027,745 3,182,591  Net Income (783) 1,102 2,028 3,183 (731) 1,617 3,663 6,460 (680) 2,133 5,298 9,738
Cash Flow FY 2001 FY 2002 FY 2003 FY 2004   Pessimistic (P) Average (A) Optimistic (O)
Cash From Operations (801,346) 686,490 1,732,659 3,872,538 $ in thousands 2001P 2002P 2003P 2004P 2001A 2002A 2003A 2004A 2001O 2002O 2003O 2004O
Cash From Investing (176,393) (252,320) (697,473) (1,676,609)  Operations (801) 686 1,733 3,873 (779) 1,090 3,095 6,976 (757) 1,493 4,457 10,080
Cash From Financing 1,532,500 0 0 0  Investing (176) (252) (697) (1,677) (176) (252) (697) (1,677) (176) (252) (697) (1,677)
Cash Flow Net of Dividends 554,761 434,170 1,035,187 2,195,929  Financing 1,533 0 0 0 1,533 0 0 0 1,533 0 0 0
Dividends 0 0 0 0  Cash Flow 555 434 1,035 2,196 577 838 2,397 5,300 599 1,241 3,759 8,404
Total Cash Flow 554,761 434,170 1,035,187 2,195,929
  Pessimistic (P) Average (A) Optimistic (O)
Balance Sheet FY 2001 FY 2002 FY 2003 FY 2004 $ in thousands 2001P 2002P 2003P 2004P 2001A 2002A 2003A 2004A 2001O 2002O 2003O 2004O
Current Assets 713,140 1,767,009 3,591,195 6,120,420  5X EBITDA n/a 7,178 18,424 30,410 n/a 11,591 31,791 56,945 n/a 16,003 45,156 83,481
Net Fixed Assets 121,862 238,744 571,536 1,335,383  7.8 X Net Income n/a 8,592 15,816 24,824 n/a 12,616 28,571 50,390 n/a 16,638 41,326 75,955
Total Assets 835,002 2,005,754 4,162,731 7,455,803
Current Liabilities 85,507 154,754 283,987 394,467   Pessimistic (P) Average (A) Optimistic (O)
Long Term Debt 0 0 0 0 monthly 2001P 2002P 2003P 2004P 2001A 2002A 2003A 2004A 2001O 2002O 2003O 2004O
Total Liabilities 85,507 154,754 283,987 394,467  Per Actual User  $             1.25  $     1.25  $        1.00  $     1.00  $           1.50  $     1.50  $ 1.25  $ 1.25  $1.75  $ 1.75  $ 1.50  $ 1.50
Capital Stock 1,602,500 1,602,500 1,602,500 1,602,500  Blanket Coverage  $             0.15  $     0.15  $        0.10  $     0.10  $           0.20  $     0.20  $ 0.15  $ 0.15  $0.25  $ 0.25  $ 0.20  $ 0.20
Retained Earnings (853,005) 248,499 2,276,245 5,458,836
Total Equity 749,495 1,850,999 3,878,745 7,061,336 Sources & Use of Funds Pessimistic (P) Average (A) Optimistic (O)
Total Liabilities & Equity 835,002 2,005,754 4,162,731 7,455,803   2001(P) 2002(P) 2001(P) 2002(P) 2001(P) 2002(P)
Investment 1,500,000 0 1,500,000 0 1,500,000 0
Sources & Use of Funds 2001(P) 2002(P) Gross Profit 278,159 5,850,777 342,954 7,076,830 407,749 8,302,883
Investment 1,500,000 0 Total Sources of Funds 1,778,159 5,850,777 1,842,954 7,076,830 1,907,749 8,302,883
Gross Profit 278,159 5,850,777    Marketing 164,693 1,223,645 170,092 1,374,201 175,504 1,525,146
Total Sources of Funds 1,778,159 5,850,777    Overhead 150,393 733,391 151,689 803,651 152,985 873,890
   Marketing 164,693 1,223,645    Compensation 340,167 1,534,000 340,167 1,534,000 340,167 1,534,000
   Overhead 150,393 733,391    Module/Application Development 369,616 924,129 376,095 1,046,735 382,575 1,169,340
   Compensation 340,167 1,534,000    Capital Expenses 176,393 252,320 176,393 252,320 176,393 252,320
   Module/Application Development 369,616 924,129    Working Capital 22136 194362 51550 651227 80964 1107961
   Capital Expenses 176,393 252,320    Cash Balance 554,761 988,931 576,967 1,414,696 599,161 1,840,227
   Working Capital 22,136 194,362 Total Use of Funds 1,778,158 5,850,777 1,842,953 7,076,830 1,907,748 8,302,883
   Cash Balance 554,761 988,931
Total Use of Funds 1,778,158 5,850,777
Performance Metrics FY 2001 FY 2002 FY 2003 FY 2004
 Revenue 321,159 5,941,294 12,874,771 22,257,835
 EBITDA     (746,710)  1,435,612    3,684,890    6,081,964
 Net Income (783,005) 1,101,504 2,027,745 3,182,591
Performance Metrics FY 2001 FY 2002 FY 2003 FY 2004
Users      140,859     851,915    4,291,035  10,880,575
Valuation Projection FY 2001 FY 2002 FY 2003 FY 2004
 5X EBITDA n/a 7,178,058 18,424,452 30,409,818
 7.8X Net Income  n/a  8,591,730  15,816,414  24,824,213