TRACCOM, INC.
FIVE (5) YEAR FINANCIAL FORECAST & VALUATION

	SELL PRICE	COST	1ST YEAR	2ND YEAR	3RD YEAR	4TH YEAR	5TH YEAR
Traccom™ Basic Units Sold:	`$79.99`	`$42.00`	`30,000`	`45,000`	`60,000`	`80,000`	`100,000`
Traccom™ PRO Units Sold:	`$99.99`	`$44.00`	`10,000`	`20,000`	`30,000`	`40,000`	`50,000`
Traccom™ Basic Service Activations Sold:	`$24.99`	`$12.00`	`24,000`	`42,000`	`57,000`	`76,000`	`96,000`
Traccom™ Basic Service Renewals Sold:	`$24.99`	`$12.00`		`27,000`	`63,000`	`102,750`	`147,000`
Traccom™ PRO Service Activations Sold:	`$29.99`	`$12.00`	`10,000`	`20,000`	`30,000`	`40,000`	`50,000`
Traccom™ PRO Service Renewals Sold:	`$29.99`	`$12.00`		`10,000`	`28,000`	`57,000`	`96,000`
Traccom™ Medical Pro Activations:	`$115.00`	`$108.00`	`20,000`	`36,000`	`45,000`	`54,000`	`60,000`
Traccom™ Medical Pro Service Renewals Sold:	`$264.00`	`$84.00`	`20,000`	`54,000`	`93,600`	`138,240`	`184,416`

Revenue			`$8,755,260`	`$25,084,971`	`$39,771,143`	`$57,334,007`	`$74,999,663`
Cost of Goods			`$4,143,200`	`$10,389,280`	`$16,462,800`	`$22,308,620`	`28,716,784`
Gross Profit			`$4,612,060`	`$14,695,691`	`$23,308,343`	`$35,025,387`	`$46,282,879`
Gross Margin %			`52.7%`	`58.6%`	`58.6%`	`61.1%`	`61.7%`
Op Costs			`$3,364,660`	`$9,068,250`	`$13,559,849`	`$17,237,863`	`$21,037,566`
Operating Income			`$1,247,400`	`$5,627,441`	`$9,748,494`	`$17,787,524`	`$25,245,313`
Operating Income %			`14.2%`	`22.4%`	`24.5%`	`31.0%`	`33.7%`
Cash Flow
Cash In:
Beginning Cash			`$3,048`	`$497,075`	`$2,331,398`	`$7,655,037`	`$18,896,016`
Investor Funding			`$1,000,000`
Revenue (83.4% collected cy plus 16.4% of py)			`$7,301,887`	`$22,356,728`	`$37,283,069`	`$54,339,029`	`$71,952,496`
Total Cash Available			`$8,304,935`	`$22,853,804`	`$39,614,466`	`$61,994,066`	`$90,848,512`
Cash Out:
Pre-production Development Milestones			`$300,000`
Operating Costs			`$3,364,660`	`$9,068,250`	`$13,559,849`	`$17,237,863`	`$21,037,566`
Management Bonuses (30% of Operating Income)				`$1,688,232`	`$2,924,548`	`$5,336,257`	`$7,321,141`
Inventory Production			`$4,143,200`	`$9,765,923`	`$15,475,032`	`$20,523,930`	`26,003,451`
Total Cash Out			`$7,807,860`	`$20,522,406`	`$31,959,429`	`$43,098,050`	`$54,362,158`
Ending Cash:			`$497,075`	`$2,331,398`	`$7,655,037`	`$18,896,016`	`$36,486,354`

VALUATION :		`$10,952,839`
DCF Method			`$382,366`	`$974,516`	`$1,953,885`	`$3,251,881`	`$4,390,191`
Discount Rate = 30%
# Issued Shares		`3,840,000`
Pre-Money Valuation / Share		`$2.85`