1.
Heartbeat LLC
Projections of Income
Operation - Year One
1 2 3
Revenue:
Sales Contracts Set-up (New) 0 0 1,098
Accrued Contracts - YTD 0 0 0
Total Gross Revenue 0 0 1,098
Growth rate 0.0% 0.0%
Cost of Goods Sold:
IT DEPARTMENT 9,958 9,958 9,958
Sales Division 7,331 7,331 18,811
Marketing 16,692 16,692 16,692
Total COGS 33,980 33,980 45,460
Gross Profit (33,980) (33,980) (44,362)
Gross Profit % #DIV/0! #DIV/0! -4040%
Operating Expenses:
Customer Service 0 0 0
General & Administrative: 19,517 19,517 19,517
Total Op. Expenses 19,517 19,517 19,517
Percent of Gross Revenue #DIV/0! #DIV/0! 1777.5%
Operating Profit (Loss) (53,497) (53,497) (63,879)
Other Income (Expense):
Interest Income (Expense) 0 0 0
Net Income (Loss) (53,497) (53,497) (63,879)
Income (Loss) % of Revenue #DIV/0! #DIV/0! -5818%

2.
4 5 6 7 8 9 10
4,392 16,470 16,470 16,470 16,470 16,470 16,470
1,098 5,490 21,960 38,430 54,900 71,370 87,840
5,490 21,960 38,430 54,900 71,370 87,840 104,310
400.0% 300.0% 75.0% 42.9% 30.0% 23.1% 18.8%
9,958 9,958 9,958 9,958 9,958 9,958 9,958
21,411 32,148 32,411 32,411 32,411 32,411 32,411
16,692 16,692 16,692 16,692 16,692 16,692 16,692
48,060 58,798 59,060 59,060 59,060 59,060 59,060
(42,570) (36,838) (20,630) (4,160) 12,310 28,780 45,250
-775% -168% -54% -8% 17% 33% 43%
0 3,103 3,103 3,103 3,103 3,103 3,103
19,517 19,517 19,517 19,517 19,517 19,517 19,517
19,517 22,620 22,620 22,620 22,620 22,620 22,620
355.5% 103.0% 58.9% 41.2% 31.7% 25.8% 21.7%
(62,087) (59,458) (43,250) (26,780) (10,310) 6,160 22,630
0 0 0 0 0 0 0
(62,087) (59,458) (43,250) (26,780) (10,310) 6,160 22,630
-1131% -271% -113% -49% -14% 7% 22%

3.
11 12 Total
16,470 16,470 137,250
104,310 120,780 506,178
120,780 137,250 643,437
15.8% 13.6%
9,958 9,958 119,491
32,411 32,411 313,904
16,692 16,692 200,304
59,060 59,060 633,699
61,720 78,190 9,729
51% 57% 2%
3,103 3,103 24,824
19,517 19,517 234,204
22,620 22,620 259,028
18.7% 16.5% 40.3%
39,100 55,570 (249,299)
0 0 0
39,100 55,570 (249,299)
32% 40% -39%

4.
Heartbeat LLC
Projections of Income
Operation - Year Two
1 2 3
Revenue:
Sales Contracts Set-up (New) 16,470 16,470 21,960
Contracts Monthly Fees 137,250 153,720 170,190
Total Gross Revenue 153,720 170,190 192,150
Cost of Goods Sold:
IT DEPARTMENT 11,216 11,066 11,066
SALES DIVISION 33,741 33,741 38,741
Marketing 82,692 82,692 82,692
Total COGS 127,648 127,499 132,499
Gross Profit 26,072 42,692 59,652
Gross Profit % 17% 25% 31%
Operating Expenses:
Customer Service 4,383 4,383 4,383
General & Administrative: 40,660 40,660 40,660
Total Op. Expenses 45,043 45,043 45,043
Percent of Gross Revenue 29.3% 26.5% 23.4%
Operating Profit (Loss) (18,971) (2,351) 14,609
Other Income (Expense):
Interest Income (Expense) 0 0 0
Net Income (Loss) (18,971) (2,351) 14,609
Income (Loss) % of Revenue -12% -1% 8%

5.
4 5 6 7 8 9 10
21,960 21,960 27,450 27,450 27,450 32,940 32,940
192,150 214,110 236,070 263,520 290,970 318,420 351,360
214,110 236,070 263,520 290,970 318,420 351,360 384,300
11,066 11,066 11,066 11,066 11,066 11,066 11,066
39,141 38,741 43,741 55,763 55,763 60,763 60,763
82,692 82,692 82,692 82,692 82,692 82,692 82,692
132,899 132,499 137,499 149,521 149,521 154,521 154,521
81,212 103,572 126,022 141,449 168,899 196,839 229,779
38% 44% 48% 49% 53% 56% 60%
4,383 4,246 4,246 4,284 4,284 4,284 4,284
40,660 40,660 40,660 40,660 40,660 40,660 40,660
45,043 44,906 44,906 44,944 44,944 44,944 44,944
21.0% 19.0% 17.0% 15.4% 14.1% 12.8% 11.7%
36,169 58,666 81,116 96,506 123,956 151,896 184,836
0 0 0 0 0 0 0
36,169 58,666 81,116 96,506 123,956 151,896 184,836
17% 25% 31% 33% 39% 43% 48%

6.
11 12 Total
32,940 38,430 318,420
384,300 417,240 3,129,300
417,240 455,670 3,447,720
11,066 11,066 132,942
60,763 65,763 587,421
82,692 82,692 992,304
154,521 159,521 1,712,667
262,719 296,149 1,735,054
63% 65% 50%
4,284 4,284 51,728
40,660 40,660 487,914
44,944 44,944 539,642
10.8% 9.9% 15.7%
217,776 251,206 1,195,412
0 0 0
217,776 251,206 1,195,412
52% 55% 35%

7.
Heartbeat, LLC
Projections of Income
Operation - Year Three
1 2 3
Revenue:
Sales Contracts Set-up (New) 38,430 38,430 43,920
Contracts Monthly Fees 455,670 494,100 532,530
Total Gross Revenue 494,100 532,530 576,450
Cost of Goods Sold:
IT DEPARTMENT 12,696 12,696 12,696
SALES DIVISION 87,066 86,666 91,666
Marketing 93,692 93,692 93,692
Total COGS 193,453 193,053 198,053
Gross Profit 300,647 339,477 378,397
Gross Profit % 61% 64% 66%
Operating Expenses:
Customer Service 11,625 11,625 11,625
General & Administrative: 55,990 55,990 55,990
Total Op. Expenses 67,615 67,615 67,615
Percent of Gross Revenue 13.7% 12.7% 11.7%
Operating Profit (Loss) 233,033 271,863 310,783
Other Income (Expense):
Interest Income (Expense) 0 0 0
Net Income (Loss) 233,033 271,863 310,783
Income (Loss) % of Revenue 47% 51% 54%

8.
4 5 6 7 8 9 10
43,920 49,410 49,410 54,900 54,900 60,390 60,390
576,450 620,370 669,780 719,190 774,090 828,990 889,380
620,370 669,780 719,190 774,090 828,990 889,380 949,770
12,696 12,696 12,696 12,696 12,696 12,696 12,696
91,666 96,666 96,666 101,666 101,666 106,666 106,666
93,692 93,692 93,692 93,692 93,692 93,692 93,692
198,053 203,053 203,053 208,053 208,053 213,053 213,053
422,317 466,727 516,137 566,037 620,937 676,327 736,717
68% 70% 72% 73% 75% 76% 78%
11,625 11,625 11,625 11,625 11,625 11,625 11,625
55,990 55,990 55,990 55,990 55,990 55,990 55,990
67,615 67,615 67,615 67,615 67,615 67,615 67,615
10.9% 10.1% 9.4% 8.7% 8.2% 7.6% 7.1%
354,703 399,113 448,523 498,423 553,323 608,713 669,103
0 0 0 0 0 0 0
354,703 399,113 448,523 498,423 553,323 608,713 669,103
57% 60% 62% 64% 67% 68% 70%

9.
11 12 Total
65,880 65,880 625,860
949,770 1,015,650 8,525,970
1,015,650 1,081,530 9,151,830
12,696 12,696 152,346
111,666 111,666 1,190,386
93,692 93,692 1,124,304
218,053 218,053 2,467,036
797,597 863,477 6,684,794
79% 80% 73%
11,625 11,625 139,500
55,990 55,990 671,874
67,615 67,615 811,374
6.7% 6.3% 8.9%
729,983 795,863 5,873,420
0 0 0
729,983 795,863 5,873,420
72% 74% 64%

10.
Heartbeat, LLC
Projections of Income
Operation - Year Four
1 2 3
Revenue:
Sales Contracts Set-up (New) 65,880 65,880 71,370
Contracts Monthly Fees 1,081,530 1,147,410 1,213,290
Total Gross Revenue 1,147,410 1,213,290 1,284,660
Cost of Goods Sold:
IT DEPARTMENT 14,176 14,176 14,176
SALES DIVISION 72,498 72,098 72,098
Marketing 104,692 104,692 104,692
Total COGS 191,366 190,966 190,966
Gross Profit 956,045 1,022,325 1,093,695
Gross Profit % 83% 84% 85%
Operating Expenses:
Customer Service 21,745 21,745 21,745
General & Administrative: 79,395 79,395 79,395
Total Op. Expenses 101,140 101,140 101,140
Percent of Gross Revenue 8.8% 8.3% 7.9%
Operating Profit (Loss) 854,905 921,185 992,555
Other Income (Expense):
Interest Income (Expense) 0 0 0
Net Income (Loss) 854,905 921,185 992,555
Income (Loss) % of Revenue 75% 76% 77%

11.
4 5 6 7 8 9 10
71,370 76,860 76,860 82,350 82,350 87,840 87,840
1,284,660 1,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,290
1,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,290 1,850,130
14,176 14,176 14,176 14,176 14,176 14,176 14,176
72,098 72,098 72,098 72,098 72,098 72,098 72,098
104,692 104,692 104,692 104,692 104,692 104,692 104,692
190,966 190,966 190,966 190,966 190,966 190,966 190,966
1,165,065 1,241,925 1,318,785 1,401,135 1,483,485 1,571,325 1,659,165
86% 87% 87% 88% 89% 89% 90%
21,745 21,745 21,745 21,745 21,745 21,745 21,745
79,395 79,395 79,395 79,395 79,395 79,395 79,395
101,140 101,140 101,140 101,140 101,140 101,140 101,140
7.5% 7.1% 6.7% 6.4% 6.0% 5.7% 5.5%
1,063,925 1,140,785 1,217,645 1,299,995 1,382,345 1,470,185 1,558,025
0 0 0 0 0 0 0
1,063,925 1,140,785 1,217,645 1,299,995 1,382,345 1,470,185 1,558,025
78% 80% 81% 82% 83% 83% 84%

12.
11 12 Total
93,330 93,330 955,260
1,850,130 1,943,460 17,847,990
1,943,460 2,036,790 18,803,250
14,176 14,176 170,106
72,098 72,098 865,576
104,692 104,692 1,256,304
190,966 190,966 2,291,986
1,752,495 1,845,825 16,511,264
90% 91% 88%
21,745 21,745 260,940
79,395 79,395 952,734
101,140 101,140 1,213,674
5.2% 5.0% 6.5%
1,651,355 1,744,685 15,297,590
0 0 0
1,651,355 1,744,685 15,297,590
85% 86% 81%

13.
Heartbeat, LLC
Projections of Income
Operation - Year Five
1 2 3
Revenue:
Sales Contracts Set-up (New) 93,330 93,330 98,820
Contracts Monthly Fees 2,036,790 2,130,120 2,223,450
Total Gross Revenue 2,130,120 2,223,450 2,322,270
Cost of Goods Sold:
IT DEPARTMENT 15,656 15,656 15,656
SALES DIVISION 112,503 112,103 112,103
Marketing 115,692 115,692 115,692
Total COGS 243,851 243,451 243,451
Gross Profit 1,886,270 1,980,000 2,078,820
Gross Profit % 89% 89% 90%
Operating Expenses:
Customer Service 34,724 34,724 34,724
General & Administrative: 94,400 94,400 94,400
Total Op. Expenses 129,124 129,124 129,124
Percent of Gross Revenue 6.1% 5.8% 5.6%
Operating Profit (Loss) 1,757,146 1,850,876 1,949,696
Other Income (Expense):
Interest Income (Expense) 0 0 0
Net Income (Loss) 1,757,146 1,850,876 1,949,696
Income (Loss) % of Revenue 82% 83% 84%

14.
4 5 6 7 8 9 10
98,820 104,310 104,310 109,800 109,800 115,290 115,290
2,322,270 2,421,090 2,525,400 2,629,710 2,739,510 2,849,310 2,964,600
2,421,090 2,525,400 2,629,710 2,739,510 2,849,310 2,964,600 3,079,890
15,656 15,656 15,656 15,656 15,656 15,656 15,656
112,103 112,103 112,103 112,103 112,103 112,103 112,103
115,692 115,692 115,692 115,692 115,692 115,692 115,692
243,451 243,451 243,451 243,451 243,451 243,451 243,451
2,177,640 2,281,950 2,386,260 2,496,060 2,605,860 2,721,150 2,836,440
90% 90% 91% 91% 91% 92% 92%
34,724 34,724 34,724 34,724 34,724 34,724 34,724
94,400 94,400 94,400 94,400 94,400 94,400 94,400
129,124 129,124 129,124 129,124 129,124 129,124 129,124
5.3% 5.1% 4.9% 4.7% 4.5% 4.4% 4.2%
2,048,516 2,152,826 2,257,136 2,366,936 2,476,736 2,592,026 2,707,316
0 0 0 0 0 0 0
2,048,516 2,152,826 2,257,136 2,366,936 2,476,736 2,592,026 2,707,316
85% 85% 86% 86% 87% 87% 88%

15.
11 12 Total
120,780 120,780 1,284,660
3,079,890 3,200,670 31,122,810
3,200,670 3,321,450 32,407,470
15,656 15,656 187,866
112,103 112,103 1,345,636
115,692 115,692 1,388,304
243,451 243,451 2,921,806
2,957,220 3,078,000 29,485,664
92% 93% 91%
34,724 34,724 416,688
94,400 97,170 1,135,564
129,124 131,894 1,552,252
4.0% 4.0% 4.8%
2,828,096 2,946,106 27,933,412
0 0 0
2,828,096 2,946,106 27,933,412
88% 89% 86%

16.
Heartbeat LLC
Projections of Income
Combine Years 1-5
Revenue from Operation: Year One Year Two Year Three
Revenue:
Sales Contracts Set-up (New) 137,250 318,420 625,860
Contracts Monthly Fees 506,178 3,129,300 8,525,970
Total Gross Revenue 643,428 3,447,720 9,151,830
Growth rate
Cost of Goods Sold:
IT DEPARTMENT 119,491 132,942 152,346
SALES DIVISION 313,904 587,421 1,190,386
Marketing 200,304 992,304 1,124,304
Total COGS 633,699 1,712,667 2,467,036
9,729 1,735,054 6,684,794
Gross Profit
Gross Profit %
Operating Expenses:
Customer Service 24,824 51,728 139,500
General & Administrative: 234,204 487,914 671,874
Total Op. Expenses 259,028 539,642 811,374
Percent of Gross Revenue
Operating Profit (Loss) (224,475) 1,195,412 5,873,420
Other Income (Expense):
Interest Income (Expense)
Net Income (Loss) (224,475) 1,195,412 5,873,420

17.
Year Four Year Five Combined
955,260 1,284,660 3,321,450
17,847,990 31,122,810 61,132,248
18,803,250 32,407,470 64,453,698
170,106 187,866 762,751
865,576 1,345,636 4,302,923
1,256,304 1,388,304 4,961,520
2,291,986 2,921,806 10,027,193
16,511,264 29,485,664 54,426,505
260,940 416,688 893,680
952,734 1,135,564 3,482,290
1,213,674 1,552,252 4,116,942
15,297,590 27,933,412 50,075,358
15,297,590 27,933,412 50,075,358

18.
Heartbeat LLC
Projection of Cash Flows
Operation - Year One
1 2
Operating Activities
Receipts from Customers 0 0
Payments for Cost of Goods Sold (33,980) (33,980)
Payments for Operating Costs (19,517) (19,517)
Interest Payments 0 0
Taxes Paid 0 0
Non-Cash Expenses: (Adding back)
Depreciation 258 258
Amortization 0 0
Cash Provided by or (Used) in Operations (53,239) (53,239)
Financing Activities:
L.O.C. 0 0
Notes Payable 0 0
Cash Provided by or(Used) in Financing Activities 0 0
Investing Activities:
Purchases not on lease (15,500) 0
Equipment and Furniture Leases 0 0
Issue of Equity to Investors 250,000 0
Cash Provided by or (Used) in Investing Activities 234,500 0
Net Cash Flow This Month 181,261 (53,239)
Beginning Cash Balance This Period 0 181,261
Ending Cash Balance This Period 181,261 128,022

19.
3 4 5 6 7 8 9
1,098 5,490 21,960 38,430 54,900 71,370 87,840
(45,460) (48,060) (58,798) (59,060) (59,060) (59,060) (59,060)
(19,517) (19,517) (22,620) (22,620) (22,620) (22,620) (22,620)
0 0 0 0 0 0 0
0 0 0 0 0 0 0
258 258 258 258 261 261 261
0 0 0 0 0 0 0
(63,621) (61,829) (59,200) (42,992) (26,519) (10,049) 6,421
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 (150) 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 (150) 0 0
(63,621) (61,829) (59,200) (42,992) (26,519) (10,049) 6,421
128,022 64,401 2,572 (56,628) (99,620) (126,139) (136,188)
64,401 2,572 (56,628) (99,620) (126,139) (136,188) (129,767)

20.
10 11 12 Year One
104,310 120,780 137,250 643,428
(59,060) (59,060) (59,060) (633,699)
(22,620) (22,620) (22,620) (259,028)
0 0 0 0
0 0 0 0
261 261 261 3,114
0 0 0 0
22,891 39,361 55,831 (246,185)
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 (15,650)
0 0 0 0
0 0 0 250,000
0 0 0 234,350
22,891 39,361 55,831
(129,767) (106,877) (67,516)
(106,877) (67,516) (11,685)

21.
Heartbeat LLC
Projection of Cash Flows
Operation - Year Two
1 2
Operating Activities
Receipts from Customers 153,720 170,190
Payments for Cost of Goods Sold (127,648) (127,499)
Payments for Operating Costs (45,043) (45,043)
Interest Payments 0 0
Taxes Paid (Not displayed) 0 0
Non-Cash Expenses: (Adding back)
Depreciation 332 332
Amortization 0 0
Cash Provided by or
(Used in) Operations (18,639) (2,019)
Financing Activities:
L.O.C. 0 0
Notes Payable 0 0
Preferred Stock 0 0
Common Stock 0 0
Common Stock Options 0 0
Cash Provided by or
(Used in) Financing Activities 0 0
Investing Activities:
Purchases not on lease (8,300) 0
Equipment and Furniture Leases 0 0
Issue of Equity to Investors 0 0
Cash Provided by or (Used in) Investing Activities (8,300) 0
Net Cash Flow This Month (26,939) (2,019)
Beginning Cash Balance This Period (11,685) (38,623)
Ending Cash Balance This Period (38,623) (40,642)

22.
3 4 5 6 7 8 9
192,150 214,110 236,070 263,520 290,970 318,420 351,360
(132,499) (132,899) (132,499) (137,499) (149,521) (149,521) (154,521)
(45,043) (45,043) (44,906) (44,906) (44,944) (44,944) (44,944)
0 0 0 0 0 0 0
0 0 0 0 0 0 0
332 349 349 349 366 366 366
0 0 0 0 0 0 0
14,941 36,518 59,015 81,465 96,872 124,322 152,262
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 (1,050) 0 0 (1,050) 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 (1,050) 0 0 (1,050) 0 0
14,941 35,468 59,015 81,465 95,822 124,322 152,262
(40,642) (25,701) 9,767 68,782 150,247 246,068 370,390
(25,701) 9,767 68,782 150,247 246,068 370,390 522,651

23.
10 11 12 Year Two
384,300 417,240 455,670 3,447,720
(154,521) (154,521) (159,521) (1,712,667)
(44,944) (44,944) (44,944) (539,642)
0 0 0 0
0 0 0 0
366 366 366 4,239
0 0 0 0
185,202 218,142 251,572 1,199,651
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 (10,400)
0 0 0 0
0 0 0 0
0 0 0 (10,400)
185,202 218,142 251,572
522,651 707,853 925,994
707,853 925,994 1,177,566

24.
Heartbeat LLC
Projection of Cash Flows
Operation - Year Three
1 2
Operating Activities
Receipts from Customers 494,100 532,530
Payments for Cost of Goods Sold (193,453) (193,053)
Payments for Operating Costs (67,615) (67,615)
Interest Payments 0 0
Taxes Paid (Not displayed) 0 0
Non-Cash Expenses: (Adding back)
Depreciation 503 503
Amortization 0 0
Cash Provided by or
(Used in) Operations 233,536 272,366
Financing Activities:
L.O.C. 0 0
Notes Payable 0 0
Preferred Stock 0 0
Common Stock 0 0
Common Stock Options 0 0
Cash Provided by or
(Used in) Financing Activities 0 0
Investing Activities:
Purchases not on lease (8,200) 0
Equipment and Furniture Leases 0 0
Issue of Equity to Investors 0 0
Cash Provided by or (Used in) Investing Activities (8,200) 0
Net Cash Flow This Month 225,336 272,366
Beginning Cash Balance This Period 1,177,566 1,402,901
Ending Cash Balance This Period 1,402,901 1,675,267

25.
3 4 5 6 7 8 9
576,450 620,370 669,780 719,190 774,090 828,990 889,380
(198,053) (198,053) (203,053) (203,053) (208,053) (208,053) (213,053)
(67,615) (67,615) (67,615) (67,615) (67,615) (67,615) (67,615)
0 0 0 0 0 0 0
0 0 0 0 0 0 0
503 503 503 503 503 503 503
0 0 0 0 0 0 0
311,286 355,206 399,616 449,026 54,834 553,826 609,216
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
311,286 355,206 399,616 449,026 54,834 553,826 609,216
1,675,267 1,986,552 2,341,758 2,741,373 3,190,399 3,245,233 3,799,058
1,986,552 2,341,758 2,741,373 3,190,399 3,245,233 3,799,058 4,408,274

26.
10 11 12 Year Three
949,770 1,015,650 1,081,530 9,151,830
(213,053) (218,053) (218,053) (2,467,036)
(67,615) (67,615) (67,615) (811,374)
0 0 0 0
0 0 0 0
503 503 503 6,036
0 0 0 0
669,606 730,486 796,366 5,435,365
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 (8,200)
0 0 0 0
0 0 0 0
0 0 0 (8,200)
669,606 730,486 796,366
4,408,274 5,077,879 5,808,365
5,077,879 5,808,365 6,604,730

27.
Heartbeat LLC
Projection of Cash Flows
Operation - Year Four
1 2
Operating Activities
Receipts from Customers 1,147,410 1,213,290
Payments for Cost of Goods Sold (191,366) (190,966)
Payments for Operating Costs (101,140) (101,140)
Interest Payments 0 0
Taxes Paid (Not displayed) 0 0
Non-Cash Expenses: (Adding back)
Depreciation 667 667
Amortization 0 0
Cash Provided by or
(Used in) Operations 855,572 921,852
Financing Activities:
L.O.C. 0 0
Notes Payable 0 0
Preferred Stock 0 0
Common Stock 0 0
Common Stock Options 0 0
Cash Provided by or
(Used in) Financing Activities 0 0
Investing Activities:
Purchases not on lease (9,850) 0
Equipment and Furniture Leases 0 0
Issue of Equity to Investors 0 0
Cash Provided by or (Used in) Investing Activities (9,850) 0
Net Cash Flow This Month 845,722 921,852
Beginning Cash Balance This Period 6,604,730 7,450,452
Ending Cash Balance This Period 7,450,452 8,372,304

28.
3 4 5 6 7 8 9
1,284,660 1,356,030 1,432,890 1,509,750 1,592,100 1,674,450 1,762,290
(190,966) (190,966) (190,966) (190,966) (190,966) (190,966) (190,966)
(101,140) (101,140) (101,140) (101,140) (101,140) (101,140) (101,140)
0 0 0 0 0 0 0
0 0 0 0 0 0 0
667 667 667 667 667 667 667
0 0 0 0 0 0 0
993,222 1,064,592 1,141,452 1,218,312 1,300,662 1,383,012 1,470,852
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
993,222 1,064,592 1,141,452 1,218,312 1,300,662 1,383,012 1,470,852
8,372,304 9,365,526 10,430,118 11,571,570 12,789,882 14,090,544 15,473,556
9,365,526 10,430,118 11,571,570 12,789,882 14,090,544 15,473,556 16,944,408

29.
10 11 12 Year Four
1,850,130 1,943,460 2,036,790 18,803,250
(190,966) (190,966) (190,966) (2,291,986)
(101,140) (101,140) (101,140) (1,213,674)
0 0 0 0
0 0 0 0
667 667 667 8,004
0 0 0 0
1,558,692 1,652,022 1,745,352 15,305,594
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 (9,850)
0 0 0 0
0 0 0 0
0 0 0 (9,850)
1,558,692 1,652,022 1,745,352
16,944,408 18,503,100 20,155,122
18,503,100 20,155,122 21,900,474

30.
Heartbeat LLC
Projection of Cash Flows
Operation - Year Five
1 2
Operating Activities
Receipts from Customers 2,223,450 2,223,450
Payments for Cost of Goods Sold (243,851) (243,451)
Payments for Operating Costs (129,124) (129,124)
Interest Payments 0 0
Taxes Paid (Not displayed) 0 0
Non-Cash Expenses: (Adding back)
Depreciation 667 667
Amortization 0 0
Cash Provided by or
(Used in) Operations 1,851,143 1,851,543
Financing Activities:
L.O.C. 0 0
Notes Payable 0 0
Preferred Stock 0 0
Common Stock 0 0
Common Stock Options 0 0
Cash Provided by or
(Used in) Financing Activities 0 0
Investing Activities:
Purchases not on lease (5,050) 0
Equipment and Furniture Leases 0 0
Issue of Equity to Investors 0 0
Cash Provided by or (Used in) Investing Activities (5,050) 0
Net Cash Flow This Month 1,846,093 1,851,543
Beginning Cash Balance This Period 21,900,474 23,746,567
Ending Cash Balance This Period 23,746,567 25,598,110

31.
3 4 5 6 7 8 9
2,322,270 2,421,090 2,525,400 2,629,710 256,836 2,849,310 2,964,600
(243,451) (243,451) (243,451) (243,451) (243,451) (243,451) (243,451)
(129,124) (129,124) (129,124) (129,124) (129,124) (129,124) (129,124)
0 0 0 0 0 0 0
0 0 0 0 0 0 0
667 667 667 667 667 667 667
0 0 0 0 0 0 0
1,950,363 2,049,183 2,153,493 2,257,803 -115,071 2,477,403 2,592,693
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,950,363 2,049,183 2,153,493 2,257,803 -115,071 2,477,403 2,592,693
25,598,110 27,548,473 29,597,656 31,751,149 34,008,952 33,893,881 36,371,284
27,548,473 29,597,656 31,751,149 34,008,952 33,893,881 36,371,284 38,963,977

32.
10 11 12 Year Five
3,079,890 3,200,670 3,321,450 30,018,126
(243,451) (243,451) (243,451) (2,921,806)
(129,124) (129,124) (131,894) (1,552,252)
0 0 0 0
0 0 0 0
667 667 667 8,004
0 0 0 0
2,707,983 2,828,763 2,946,773 25,552,072
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 (5,050)
0 0 0 0
0 0 0 0
0 0 0 (5,050)
2,707,983 2,828,763 2,946,773
38,963,977 41,671,960 44,500,723
41,671,960 44,500,723 47,447,496

33.
Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLY
YEAR ONE Increment 1
New Sales Contracts (Monthly) 0
Number of Contracts 0
Revenues:
Sales Contracts Set-up (New) - based on 100 Bed Facility 0
Contracts Monthly Fees 0
Total Gross Revenue 0
Cost of Goods Sold:
IT DEPARTMENT 1
Vice President of Engineering 0 0
Manager of Engineering 6,667 6,667
Staff 0 0
Benefits 33% 2,200
Rent 263 263
Software 300 300
Insurance 0 0
Telephone +Cell 300 300
Freight & Postage 25 25
Supplies 50 50
Travel 100 100
Depreciation 53 53
Total Engineering Operating Expense 9,958
Sales Division
Number of Sales Staff 1
Number of Sales Contracts 0
Sales Manager 5,000 5,000
Assistant to Sales Manager 0 0
Administrative Staff 0 0
Sales Staff Full-time Position 6,000 0
Commissions on Contracts 0% 0
Benefits & Payroll Taxes 33% 1,650
Recruiting 400 0
Rent 20 Sq feet per Salesperson 263 263
Insurance Premiums 0 0
Telephone + Cell 300 300
Supplies 50 50
Travel 1,500 0
Meals 600 0
Initial Training 0 0
Incentives Accural 125,000 0
Depreciation 68 68
Total Sales Division Operating Expense 7,331
Number Salesmen 4
Number of Contracts 0
Marketing 1
Vp Mktg 5,000 5,000
Staff 0 0
Benefits 33% 1,650
Rent 175 175
Insurance 0 0
Telephone 300 300
Freight & Postage 2,000 2,000
Supplies 1,000 1,000
Travel 1,500 1,500
Advertising 60,000 5,000
Depreciation 67 67
Total Marketing Operating Expense 16,692
Total Cost of Goods Sold 33,980
Gross Profit (33,980)
Operating Expenses:

34.
Customer Service 0
Director 0 0
Assistant Director 0 0
Team Supervisor 0 0
Staff 2,000 0
Benefits 33% 0
Rent 175 0
Insurance 0 0
Telephone 100 0
Postage 50 0
Supplies 50 0
Depreciation 0 0
Total Customer Serv. Operating Expense 0
General & Administrative: 2
Chief Executive Officer (CEO) 6,000 6,000
Office Mgr/Receptionist 2,400 2,400
Chief Financial Officer (CFO) 0 0
Chief Legal Counsel (CLC) 0 0
Accounting:
Controller 0 0
Assistant Controller 0 0
Accounts Payable 0 0
Accounts Receivable 0 0
Payroll 0 0
Human Resources
Director 0 0
Office Receptionist 0 0
Training
Director 0 0
Assistant Director 0 0
Staff 0 0
Benefits 33% 2,772
Rent 263 525
Insurance 2,500 2,500
Telephone 50 100
Freight & Postage 25 50
Subscriptions & Licenses 50 100
Supplies 100 200
Travel 1,500 1,500
Professional Services 3,000 3,000
IPO Consultanting 0 0
Seminars & Conferences 200 200
Training 0 0
Miscellaneous expenses 50 100
Amortization of Goodwill 0 0
Depreciation 70 70
Total General Admin. Operating Expense 19,517
Total Operating Expenses 19,517
Operating Profit (Loss) (53,497)
Other Income (Expense)
Interest Expense (Income) 0 0
Net Income Before Taxes & Depreciation (53,497)
Income Taxes - State & Federal 0
Net Income After Taxes (53,497)
Total Losses Yr-1 (53,497)
CAPITAL EXPENDITURES
IT Capital Expenditures: 1
Equipment, Furniture, Computers
Server 2,000 2,000
Desktop 750 750
Furniture 500 500
Telephone 125 125
Cell Phone 300 300
Monthly Engineering Capital Purchase 3,675

35.
Total Engineering Capital Purchase 3,675
Sales Division Capital Expenditures:
Equipment, Furniture, Computers
Laptop 1,000 1,000
Desktop 750 750
Printer 300 300
Copier 0 0
Multi-Media Projector 1,000 1,000
Furniture 500 500
Telephone 125 125
Cell Phone 300 300
Monthly Sales Division Capital Purchase 3,975
Total Sales Division Capital Purchase 3,975
Marketing Capital Expenditures:
Equipment, Furniture, Computers
Desktop 750 750
Multi-Media Projector 1,000 1,000
Furniture 500 500
Telephone 125 125
Monthly Marketing Capital Purchase 2,375
Total Marketing Capital Purchase 2,375
Customer Service Capital Expenditures
Equipment, Furniture, Computers
Desktop 750 750
Furniture 500 500
Telephone 125 125
Monthly Customer Service Capital Expense 1,375
Total Customer Service Capital Expense 1,375
General Administration Capital Expense 1
Equipment, Furniture, Computers
Laptop computer 1,000 1,000
Server 0 0
Desktop computer 750 750
Small Printer 300 300
Printer 1,500 1,500
Copier 2,000 2,000
Multi-Media Projector 0 0
Furniture 500 500
Telephone 125 125
Cell phone 300 300
Monthly Customer Service Capital Expense 6,475
Total Customer Service Capital Expense 6,475
Total Purchases Year One 17,875
Total Deprecitation Year One 258

36.
2 3 4 5 6 7 8
0 1 4 15 15 15 15
0 1 5 20 35 50 65
0 1,098 4,392 16,470 16,470 16,470 16,470
0 0 1,098 5,490 21,960 38,430 54,900
0 1,098 5,490 21,960 38,430 54,900 71,370
1 1 1 1 1 1 1
0 0 0 0 0 0 0
6,667 6,667 6,667 6,667 6,667 6,667 6,667
0 0 0 0 0 0 0
2,200 2,200 2,200 2,200 2,200 2,200 2,200
263 263 263 263 263 263 263
300 300 300 300 300 300 300
0 0 0 0 0 0 0
300 300 300 300 300 300 300
25 25 25 25 25 25 25
50 50 50 50 50 50 50
100 100 100 100 100 100 100
53 53 53 53 53 53 53
9,958 9,958 9,958 9,958 9,958 9,958 9,958
1 1 1 1 1 1 1
0 1 2 2 2 2 2
5,000 5,000 5,000 5,000 5,000 5,000 5,000
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 6,000 6,000 6,000 6,000 6,000 6,000
0 0 0 0 0 0 0
1,650 3,630 3,630 3,630 3,630 3,630 3,630
0 400 0 0 0 0 0
263 263 263 0 263 263 263
0 0 0 0 0 0 0
300 300 300 300 300 300 300
50 50 50 50 50 50 50
0 1,500 1,500 1,500 1,500 1,500 1,500
0 600 600 600 600 600 600
0 0 0 0 0 0 0
0 1,000 4,000 15,000 15,000 15,000 15,000
68 68 68 68 68 68 68
7,331 18,811 21,411 32,148 32,411 32,411 32,411
4 4 4 4 4 4 4
0 0 0 0 0 0 0
1 1 1 1 1 1 1
5,000 5,000 5,000 5,000 5,000 5,000 5,000
0 0 0 0 0 0 0
1,650 1,650 1,650 1,650 1,650 1,650 1,650
175 175 175 175 175 175 175
0 0 0 0 0 0 0
300 300 300 300 300 300 300
2,000 2,000 2,000 2,000 2,000 2,000 2,000
1,000 1,000 1,000 1,000 1,000 1,000 1,000
1,500 1,500 1,500 1,500 1,500 1,500 1,500
5,000 5,000 5,000 5,000 5,000 5,000 5,000
67 67 67 67 67 67 67
16,692 16,692 16,692 16,692 16,692 16,692 16,692
33,980 45,460 48,060 58,798 59,060 59,060 59,060
(33,980) (44,362) (42,570) (36,838) (20,630) (4,160) 12,310

37.
0 0 0 1 1 1 1
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 2,000 2,000 2,000 2,000
0 0 0 660 660 660 660
0 0 0 175 175 175 175
0 0 0 0 0 0 0
0 0 0 100 100 100 100
0 0 0 50 50 50 50
0 0 0 50 50 50 50
0 0 0 68 68 68 68
0 0 0 3,103 3,103 3,103 3,103
2 2 2 2 2 2 2
6,000 6,000 6,000 6,000 6,000 6,000 6,000
2,400 2,400 2,400 2,400 2,400 2,400 2,400
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
2,772 2,772 2,772 2,772 2,772 2,772 2,772
525 525 525 525 525 525 525
2,500 2,500 2,500 2,500 2,500 2,500 2,500
100 100 100 100 100 100 100
50 50 50 50 50 50 50
100 100 100 100 100 100 100
200 200 200 200 200 200 200
1,500 1,500 1,500 1,500 1,500 1,500 1,500
3,000 3,000 3,000 3,000 3,000 3,000 3,000
0 0 0 0 0 0 0
200 200 200 200 200 200 200
0 0 0 0 0 0 0
100 100 100 100 100 100 100
0 0 0 0 0 0 0
70 70 70 70 70 70 70
19,517 19,517 19,517 19,517 19,517 19,517 19,517
19,517 19,517 19,517 22,620 22,620 22,620 22,620
(53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)
0 0 0 0 0 0 0
(53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)
0 0 0 0 0 0 0
(53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)
(53,497) (63,879) (62,087) (59,458) (43,250) (26,780) (10,310)
1 1 1 1 1 1 1
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0

38.
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 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
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
258 258 258 326 326 326 326

39.
9 10 11 12 Year One
15 15 15 15 125
80 95 110 125
16,470 16,470 16,470 16,470 137,250
71,370 87,840 104,310 120,780 506,178
87,840 104,310 120,780 137,250 643,428
1 1 1 1 12
0 0 0 0 0
6,667 6,667 6,667 6,667 80,004
0 0 0 0 0
2,200 2,200 2,200 2,200 26,401
263 263 263 263 3,150
300 300 300 300 3,600
0 0 0 0 0
300 300 300 300 3,600
25 25 25 25 300
50 50 50 50 600
100 100 100 100 1,200
53 53 53 53 636
9,958 9,958 9,958 9,958 119,491
1 1 1 1
2 2 2 2
5,000 5,000 5,000 5,000 60,000
0 0 0 0 0
0 0 0 0 0
6,000 6,000 6,000 6,000 60,000
0 0 0 0 0
3,630 3,630 3,630 3,630 39,600
0 0 0 0 400
263 263 263 263 2,888
0 0 0 0 0
300 300 300 300 3,600
50 50 50 50 600
1,500 1,500 1,500 1,500 15,000
600 600 600 600 6,000
0 0 0 0 0
15,000 15,000 15,000 15,000 125,000
68 68 68 68 816
32,411 32,411 32,411 32,411 313,904
4 4 4 4
0 0 0 0
1 1 1 1
5,000 5,000 5,000 5,000 60,000
0 0 0 0 0
1,650 1,650 1,650 1,650 19,800
175 175 175 175 2,100
0 0 0 0 0
300 300 300 300 3,600
2,000 2,000 2,000 2,000 24,000
1,000 1,000 1,000 1,000 12,000
1,500 1,500 1,500 1,500 18,000
5,000 5,000 5,000 5,000 60,000
67 67 67 67 804
16,692 16,692 16,692 16,692 200,304
59,060 59,060 59,060 59,060 633,699
28,780 45,250 61,720 78,190 9,729

40.
1 1 1 1 8
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
2,000 2,000 2,000 2,000 16,000
660 660 660 660 5,280
175 175 175 175 1,400
0 0 0 0 0
100 100 100 100 800
50 50 50 50 400
50 50 50 50 400
68 68 68 68 544
3,103 3,103 3,103 3,103 24,824
2 2 2 2 24
6,000 6,000 6,000 6,000 72,000
2,400 2,400 2,400 2,400 28,800
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
2,772 2,772 2,772 2,772 33,264
525 525 525 525 6,300
2,500 2,500 2,500 2,500 30,000
100 100 100 100 1,200
50 50 50 50 600
100 100 100 100 1,200
200 200 200 200 2,400
1,500 1,500 1,500 1,500 18,000
3,000 3,000 3,000 3,000 36,000
0 0 0 0 0
200 200 200 200 2,400
0 0 0 0 0
100 100 100 100 1,200
0 0 0 0 0
70 70 70 70 840
19,517 19,517 19,517 19,517 234,204
22,620 22,620 22,620 22,620
6,160 22,630 39,100 55,570 (249,299)
0 0 0 0 0
6,160 22,630 39,100 55,570 (249,299)
0 0 0 0 0
6,160 22,630 39,100 55,570 (249,299)
6,160 22,630 39,100 55,570 (249,299)
1 1 1 1
0 0 0 0 2,000
0 0 0 0 750
0 0 0 0 500
0 0 0 0 125
0 0 0 0 300
0 0 0 0 3,675

41.
0 0 0 0 3,675
0 0 0 0 1,000
0 0 0 0 750
0 0 0 0 300
0 0 0 0 0
0 0 0 0 1,000
0 0 0 0 500
0 0 0 0 125
0 0 0 0 300
0 0 0 0 3,975
0 0 0 0 4,100
0 0 0 0 750
0 0 0 0 1,000
0 0 0 0 500
0 0 0 0 125
0 0 0 0 2,375
0 0 0 0 2,375
0 0 0 0 750
0 0 0 0 500
0 0 0 0 125
0 0 0 0 1,375
0 0 0 0 1,375
1 1 1 1
0 0 0 0 1,000
0 0 0 0 0
0 0 0 0 750
0 0 0 0 300
0 0 0 0 1,500
0 0 0 0 2,000
0 0 0 0 0
0 0 0 0 500
0 0 0 0 125
0 0 0 0 300
0 0 0 0 6,475
0 0 0 0 6,475
0 0 0 0 17,875
326 326 326 326 3,640

42.
Heartbeat LLC Proforma of Projected Earnings - DATA SHEET ONLY
YEAR TWO Increment 1
New Sales Contracts (Monthly) 15
Number of Contracts 140
Revenues:
Sales Contracts Set-up (New) - Based on 100 bed facility x6 16,470
Contracts Monthly Fees 137,250
Total Gross Revenue 153,720
Cost of Goods Sold:
IT DEPARTMENT 1
Vice President of Engineering 0 0
Manager of Engineering 7,500 7,500
Staff 0 0
Benefits 33% 2,475
Rent 263 263
Software 300 300
Insurance 0 0
Telephone + Cell 300 300
Freight & Postage 50 50
Supplies 75 75
Travel 200 200
Depreciation 53 53
Total Engineering Operating Expense 11,216
SALES DIVISION
Number of Sales Staff 1
Number of Sales Contracts 4
Sales Manager 5,000 5,000
Assistant to Sales Manager 0 0
Administrative Staff 0 0
Sales Staff Full Time 7,000 7,000
Commissions on Contracts 0% 0
Benefits & Payroll Taxes 33% 3,960
Recruiting 400 0
Rent 263 263
Insurance 0 0
Telephone + Cell 300 300
Supplies 50 50
Travel 1,500 1,500
Meals 600 600
Initial Training 0 0
Incentives Accural 290,000 15,000
Depreciation calculation good for 3 xxx 68 68
Total Sales Division Operating Expense 33,741
Number Salesmen 6
Number of Contracts 1
Marketing 1
Director
VP Mrkt 5,000 5,000
Staff 0 0
Benefits 33% 1,650
Rent 175 175
Insurance 0 0
Telephone 300 300
Freight & Postage 3,000 3,000
Supplies 1,000 1,000
Travel 1,500 1,500
Advertising 70,000 70,000
Depreciation 67 67
Total Marketing Operating Expense 82,692
Total Cost of Goods Sold 127,648
Gross Profit 26,072
Operating Expenses:

43.
Customer Service 1
Director 0 0
Assistant Director 0 0
Team Supervisor 0 0
Staff 3,000 3,000
Benefits 33% 990
Rent 175 175
Insurance 0 0
Telephone 150 150
Postage 25 25
Supplies 25 25
Depreciation 18 18
Total Customer Serv. Operating Expense 4,383
General & Administrative: 5
Chief Executive Officer (CEO) 6,000 6,000
Office Mgr/Receptionist 3,400 3,400
Chief Financial Officer (CFO) 0 0
Chief Legal Counsel (CLC) 0 0
Accounting:
Controller 0 0
Assistant Controller 0 0
Accounts Payable 0 0
Accounts Receivable 0 0
Payroll 0 0
Human Resources:
Director 0 0
Office Receptionist 0 0
Training:
Director 0 0
Assistant Director 0 0
Staff 0 0
Benefits 33% 3,102
Rent 263 1,313
Insurance 2,500 2,500
Telephone 50 250
Freight & Postage 50 250
Subscriptions & Licenses 75 375
Supplies 150 750
Travel 2,500 12,500
Professional Services 9,000 9,000
IPO Consultanting 0 0
Seminars & Conferences 400 400
Training 0 0
Miscellaneous expenses 150 750
Amortization of Goodwill 0 0
Depreciation 70 70
Total General Admin. Operating Expense 40,660
Total Operating Expenses 45,043
Operating Profit (Loss) (18,971)
Other Income (Expense)
Interest Expense (Income) 0 0
Net Income Before Taxes & Depreciation (18,971)
Income Taxes - State & Federal 0
Net Income After Taxes (18,971)
Total Losses Yr-2 (18,971)
CAPITAL EXPENDITURES
IT Capital Expenditures: 1
Equipment, Furniture, Computers
Server 2,000 0
Desktop 750 0
Furniture 500 0
Telephone 125 125
Cell Phone 300 300
Monthly Engineering Capital Expense 425

44.
Total Engineering Capital Purchase 425
Sales Division Capital Expenditures:
Equipment, Furniture, Computers
Laptop 1,000 1,000
Desktop 750 750
Printer 300 300
Copier 0 0
Multi-Media Projector 0 0
Furniture 500 500
Telephone 125 125
Cell Phone 300 300
Monthly Sales Division Capital 2,975
Total Sales Division Capital Purchase 2,975
Marketing Capital Expenditures:
Equipment, Furniture, Computers
Desktop 750 750
Multi-Media Projector 0 0
Furniture 500 0
Telephone 125 125
Monthly Marketing Capital Purchase 875
Total Marketing Capital Purchase 875
Customer Service Capital Expenditures
Equipment, Furniture, Computers
Desktop 750 750
Furniture 500 500
Telephone 125 125
Monthly CS Capital Purchase 1,375
Total Customer Service Capital 1,375
General Administration Capital Expenses 1
Equipment, Furniture, Computers
Laptop computer 1,000 1,000
Server 2,000 0
Desktop computer 750 750
Small Printer 300 300
Printer 1,500 1,500
Copier 0 0
Multi-Media Projector 0 0
Furniture 500 500
Telephone 125 125
Cell phone 300 300
Monthly G&A Capital Purchase 4,475
Total G&A Capital Purchases 4,475
Total Purchases Year Two 10,125
Total Deprecitation Year One 276

45.
2 3 4 5 6 7 8
15 20 20 20 25 25 25
155 175 195 215 240 265 290
16,470 21,960 21,960 21,960 27,450 27,450 27,450
153,720 170,190 192,150 214,110 236,070 263,520 290,970
170,190 192,150 214,110 236,070 263,520 290,970 318,420
1 1 1 1 1 1 1
0 0 0 0 0 0 0
7,500 7,500 7,500 7,500 7,500 7,500 7,500
0 0 0 0 0 0 0
2,475 2,475 2,475 2,475 2,475 2,475 2,475
113 113 113 113 113 113 113
300 300 300 300 300 300 300
0 0 0 0 0 0 0
300 300 300 300 300 300 300
50 50 50 50 50 50 50
75 75 75 75 75 75 75
200 200 200 200 200 200 200
53 53 53 53 53 53 53
11,066 11,066 11,066 11,066 11,066 11,066 11,066
1 1 1 1 1 2 2
4 4 4 4 4 6 6
5,000 5,000 5,000 5,000 5,000 5,000 5,000
0 0 0 0 0 0 0
0 0 0 0 0 0 0
7,000 7,000 7,000 7,000 7,000 14,000 14,000
0 0 0 0 0 0 0
3,960 3,960 3,960 3,960 3,960 6,270 6,270
0 0 400 0 0 0 0
263 263 263 263 263 525 525
0 0 0 0 0 0 0
300 300 300 300 300 600 600
50 50 50 50 50 100 100
1,500 1,500 1,500 1,500 1,500 3,000 3,000
600 600 600 600 600 1,200 1,200
0 0 0 0 0 0 0
15,000 20,000 20,000 20,000 25,000 25,000 25,000
68 68 68 68 68 68 68
33,741 38,741 39,141 38,741 43,741 55,763 55,763
6 6 6 6 6 6 6
1 1 1 1 1 1 1
1 1 1 1 1 1 1
5,000 5,000 5,000 5,000 5,000 5,000 5,000
0 0 0 0 0 0 0
1,650 1,650 1,650 1,650 1,650 1,650 1,650
175 175 175 175 175 175 175
0 0 0 0 0 0 0
300 300 300 300 300 300 300
3,000 3,000 3,000 3,000 3,000 3,000 3,000
1,000 1,000 1,000 1,000 1,000 1,000 1,000
1,500 1,500 1,500 1,500 1,500 1,500 1,500
70,000 70,000 70,000 70,000 70,000 70,000 70,000
67 67 67 67 67 67 67
82,692 82,692 82,692 82,692 82,692 82,692 82,692
127,499 132,499 132,899 132,499 137,499 149,521 149,521
42,692 59,652 81,212 103,572 126,022 141,449 168,899

46.
1 1 1 1 1 1 1
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
3,000 3,000 3,000 3,000 3,000 3,000 3,000
990 990 990 990 990 990 990
175 175 175 38 38 76 76
0 0 0 0 0 0 0
150 150 150 150 150 150 150
25 25 25 25 25 25 25
25 25 25 25 25 25 25
18 18 18 18 18 18 18
4,383 4,383 4,383 4,246 4,246 4,284 4,284
5 5 5 5 5 5 5
6,000 6,000 6,000 6,000 6,000 6,000 6,000
3,400 3,400 3,400 3,400 3,400 3,400 3,400
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
3,102 3,102 3,102 3,102 3,102 3,102 3,102
1,313 1,313 1,313 1,313 1,313 1,313 1,313
2,500 2,500 2,500 2,500 2,500 2,500 2,500
250 250 250 250 250 250 250
250 250 250 250 250 250 250
375 375 375 375 375 375 375
750 750 750 750 750 750 750
12,500 12,500 12,500 12,500 12,500 12,500 12,500
9,000 9,000 9,000 9,000 9,000 9,000 9,000
0 0 0 0 0 0 0
400 400 400 400 400 400 400
0 0 0 0 0 0 0
750 750 750 750 750 750 750
0 0 0 0 0 0 0
70 70 70 70 70 70 70
40,660 40,660 40,660 40,660 40,660 40,660 40,660
45,043 45,043 40,660 40,660 40,660 40,660 40,660
(2,351) 14,609 36,169 58,666 81,116 96,506 123,956
0 0 0 0 0 0 0
(2,351) 14,609 36,169 58,666 81,116 96,506 123,956
0 0 0 0 0 0 0
(2,351) 14,609 36,169 58,666 81,116 96,506 123,956
(2,351) 14,609 36,169 58,666 81,116 96,506 123,956
1 1 1 1 1 1 1
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0

47.
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 750 0
0 0 0 0 0 500 0
0 0 0 0 0 0 0
0 0 0 0 0 1,250 0
0 0 0 0 0 1,250 0
1 1 1 1 1 1 1
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 750 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 250 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 1,000 0 0 0 0
0 0 1,000 0 0 0 0
0 0 1,000 0 0 1,250 0
276 276 276 276 276 276 276

48.
9 10 11 12 Year Two
30 30 30 35 290
320 350 380 415
32,940 32,940 32,940 38,430 318,420
318,420 351,360 384,300 417,240 3,129,300
351,360 384,300 417,240 455,670 3,447,720
1 1 1 1 12
0 0 0 0 0
7,500 7,500 7,500 7,500 90,000
0 0 0 0 0
2,475 2,475 2,475 2,475 29,700
113 113 113 113 1,506
300 300 300 300 3,600
0 0 0 0 0
300 300 300 300 3,600
50 50 50 50 600
75 75 75 75 900
200 200 200 200 2400
53 53 53 53 636
11,066 11,066 11,066 11,066 132,942
2 2 2 2
6 6 6 6
5,000 5,000 5,000 5,000 60,000
0 0 0 0 0
0 0 0 0 0
14,000 14,000 14,000 14,000 126,000
0 0 0 0 0
6,270 6,270 6,270 6,270 61,380
0 0 0 0 400
525 525 525 525 4,725
0 0 0 0 0
600 600 600 600 5,400
100 100 100 100 900
3,000 3,000 3,000 3,000 27,000
1,200 1,200 1,200 1,200 10,800
0 0 0 0 0
30,000 30,000 30,000 35,000 290,000
68 68 68 68 816
60,763 60,763 60,763 65,763 446,640
6 6 6 6
1 1 1 1
1 1 1 1
5,000 5,000 5,000 5,000 60,000
0 0 0 0 0
1,650 1,650 1,650 1,650 19,800
175 175 175 175 2,100
0 0 0 0 0
300 300 300 300 3,600
3,000 3,000 3,000 3,000 36,000
1,000 1,000 1,000 1,000 12,000
1,500 1,500 1,500 1,500 18,000
70,000 70,000 70,000 70,000 840,000
67 67 67 67 804
82,692 82,692 82,692 82,692 992,304
154,521 154,521 154,521 159,521 1,712,667
196,839 229,779 262,719 296,149 1,735,054

49.
1 1 1 1 12
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
3,000 3,000 3,000 3,000 36,000
990 990 990 990 11,880
76 76 76 76 1,232
0 0 0 0 0
150 150 150 150 1,800
25 25 25 25 300
25 25 25 25 300
18 18 18 18 216
4,284 4,284 4,284 4,284 51,728
5 5 5 5 60
6,000 6,000 6,000 6,000 72,000
3,400 3,400 3,400 3,400 40,800
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
3,102 3,102 3,102 3,102 37,224
1,313 1,313 1,313 1,313 15,750
2,500 2,500 2,500 2,500 30,000
250 250 250 250 3,000
250 250 250 250 3,000
375 375 375 375 4,500
750 750 750 750 9,000
12,500 12,500 12,500 12,500 150,000
9,000 9,000 9,000 9,000 108,000
0 0 0 0 0
400 400 400 400 4,800
0 0 0 0 0
750 750 750 750 9,000
0 0 0 0 0
70 70 70 70 840
40,660 40,660 40,660 40,660 487,914
40,660 40,660 40,660 40,660 501,063
151,896 184,836 217,776 251,206 1,195,412
0 0 0 0 0
151,896 184,836 217,776 251,206 1,195,412
0 0 0 0 0
151,896 184,836 217,776 251,206 1,195,412
151,896 184,836 217,776 251,206 1,195,412
1 1 1 1
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 125
0 0 0 0 300
0 0 0 0 425

50.
0 0 0 0 425
0 0 0 0 1,000
0 0 0 0 750
0 0 0 0 300
0 0 0 0 0
0 0 0 0 0
0 0 0 0 500
0 0 0 0 125
0 0 0 0 300
0 0 0 0 2,975
0 0 0 0 2,975
0 0 0 0 750
0 0 0 0 0
0 0 0 0 0
0 0 0 0 125
0 0 0 0 875
0 0 0 0 875
0 0 0 0 1,500
0 0 0 0 1,000
0 0 0 0 125
0 0 0 0 2,625
0 0 0 0 2,625
1 1 1 1
0 0 0 0 1,000
0 0 0 0 0
0 0 0 0 1,500
0 0 0 0 300
0 0 0 0 1,500
0 0 0 0 0
0 0 0 0 0
0 0 0 0 750
0 0 0 0 125
0 0 0 0 300
0 0 0 0 5,475
0 0 0 0 5,475
0 0 0 0 12,375
276 276 276 276 3,312

51.
Hearthbeat LLC Proforma of Projected Earnings - DATA SHEET ONLY
YEAR Three Increment 1
New Sales Contracts (Monthly) 35
Number of Contracts 450
Revenues:
Sales Contracts Set-up (New) 38,430
Contracts Monthly Fees 455,670
Total Gross Revenue 494,100
Cost of Goods Sold:
IT DEPARTMENT 1
Vice President of Engineering 0 0
Manager of Engineering 8,500 8,500
Staff 0 0
Benefits 33% 2,805
Rent 263 263
Software 300 300
Insurance 0 0
Telephone + cell 300 300
Freight & Postage 75 75
Supplies 100 100
Travel 300 300
Depreciation 53 53
Total Engineering Operating Expenses 12,696
SALES DIVISION
Number of Sales Staff 3
Number of Sales Contracts 8
Sales Manager 5,000 5,000
Assistant to Sales Manager 3,000 3,000
Administrative Staff 0 0
Sales Staff Full-time Position 8,000 24,000
Commissions on Contracts 0% 0
Benefits & Payroll Taxes 33% 10,560
Recruiting 400 400
Rent 263 788
Insurance 0 0
Telephone + cell 600 1,800
Supplies 50 150
Travel 1,500 4,500
Meals 600 1,800
Initial Training 0 0
Incentives 570,000 35,000
Depreciation calculation good for 3 xxx 68 68
Total Sales Division Operating Expenses 87,066
Number Salesmen 6
Number of Contracts 6
Marketing 1
Director
VP Mrkt 5,000 5,000
Staff 0 0
Benefits 33% 1,650
Rent 175 175
Insurance 0 0
Telephone 300 300
Freight & Postage 4,000 4,000
Supplies 1,000 1,000
Travel 1,500 1,500
Advertising 80,000 80,000
Depreciation 67 67
Total Marketing Operating Expense 93,692
Total Cost of Goods Sold 193,453
Gross Profit 300,647
Operating Expenses:

52.
Customer Service 2
Director 0 0
Assistant Director 0 0
Team Supervisor 0 0
Staff 4,000 8,000
Benefits 33% 2,640
Rent 175 350
Insurance 0 0
Telephone 200 400
Postage 50 100
Supplies 50 100
Depreciation 35 35
Total Customer Serv. Operating Expense 11,625
General & Administrative: 7
Chief Executive Officer (CEO) 6,000 6,000
Office Mgr/Receptionist 4,400 4,400
Chief Financial Officer (CFO) 0 0
Chief Legal Counsel (CLC) 0 0
Accounting
Controller 0 0
Assistant Controller 0 0
Accounts Payable 0 0
Accounts Receivable 0 0
Payroll 0 0
Human Resources
Director 0 0
Office Receptionist 0 0
Training
Director 0 0
Assistant Director 0 0
Staff 0 0
Benefits 33% 3,432
Rent 263 1,838
Insurance 2,500 2,500
Telephone 50 350
Freight & Postage 75 525
Subscriptions & Licenses 100 700
Supplies 175 1,225
Travel 3,500 24,500
Professional Services 9,000 9,000
IPO Consultanting 0 0
Seminars & Conferences 400 400
Training 0 0
Miscellaneous expenses 150 1,050
Amortization of Goodwill 0 0
Depreciation 70 70
Total General Admin. Operating Expenses 55,990
Total Operating Expenses 55,990
Operating Profit (Loss) 233,033
Other Income (Expense)
Interest Expense (Income) 0 0
Net Income Before Taxes & Depreciation 233,033
Income Taxes - State & Federal 0
Net Income After Taxes 233,033
Total Losses Yr-3 233,033
CAPITAL EXPENDITURES
IT Capital Expenditures: 1
Equipment, Furniture, Computers
Server 2,000 0
Desktop 750 0
Furniture 500 0
Telephone 125 125
Cell Phone 300 300