Income Statement

Report Item Quarter 1 Quarter 2 Quarter 3 Quarter 4

Gross Profit
Revenues 0 709,534 2,088,902 4,547,535
- Rebates 0 10,065 58,380 131,470
- Cost of Goods Sold 0 269,541 788,120 1,873,807
= Gross Profit 0 429,928 1,242,402 2,542,258
Expenses
Research and Development 240,000 0 90,000 2,300,382
+ System Improvement Costs 0 65,171 211,726 881,457
+ Advertising 0 104,000 196,294 246,485
+ Internet Marketing Expenses 0 6,000 8,000 22,000
+ Sales Force Expense 0 45,313 135,918 307,131
+ Store Expense 200,000 198,000 196,000 207,000
+ Marketing Research 0 15,000 15,000 15,000
+ Shipping 0 8,749 23,369 45,277
+ Excess Capacity Cost 0 0 13,265 0
+ Depreciation 0 30,000 50,000 80,000
= Total Expenses 440,000 472,233 939,572 4,104,733
Operating Profit -440,000 -42,304 302,830 -1,562,475
Miscellaneous Income and Expenses
+ Licensing Income 0 0 0 0
- Licensing Fees 0 0 0 0
+ Other Income 0 0 0 0
- Other Expenses 0 0 0 0
= Earnings Before Interest and Taxes -440,000 -42,304 302,830 -1,562,475
+ Interest Income 5,100 0 0 0
- Interest Charges 0 0 0 23,233
= Income Before Taxes -434,900 -42,304 302,830 -1,585,708
- Loss Carry Forward 0 0 302,830 0
= Taxable Income 0 0 0 0
- Income Taxes 0 0 0 0
= Net Income -434,900 -42,304 302,830 -1,585,708
Earnings per Share -29 -2 12 -39
End of Worksheet
Quarter 5 Quarter 6

11,162,440 15,810,732
139,613 0
5,493,854 7,473,492
5,528,973 8,337,240

923,178 561,079
1,646,309 1,194,835
376,073 469,288
80,000 217,969
1,009,544 2,138,388
136,000 136,000
15,000 15,000
90,217 95,052
0 359,382
140,000 200,000
4,416,321 5,386,993
1,112,652 2,950,248

0 1,465,285
0 957,200
0 0
0 0
1,112,652 3,458,333
0 0
31,352 0
1,081,300 3,458,333
1,081,300 678,782
0 2,779,551
0 1,111,820
1,081,300 2,346,512
25 54