Page 7 - NTIT Solutions, LLC: “Go Locker”

Economic Model Financial Summary E. Financial Summary The Company features an attractive business model based on revenues from device sales via wholesale, online, and Amazon. The table below is a summary of the Company’s financial forecast in terms of Total Revenues, EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) and Net Income for the forecast period. Ab Machine Financial Summary Forecast ($ in thousands) $8,000 $6,675 Revenue EBITDA Net Income $6,000 $5,340 (in thousands) $4,000 $3,021 $4,272 $3,046 $3,334 $3,908 $2,357 $2,585 $2,000 $1,887 $1,550 $1,983 $968 $1,285 $802 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Management has built a bottom up financial forecast model that incorporates assumptions from Management’s expectations, primarily driven by revenue from device sales via wholesale, online, and Amazon. Production costs are the largest expense and has the biggest impact on net income, followed by general and administrative costs such as payroll. However, revenue and income will continue to rise as time goes on and growth occurs, driven by marketing efforts and expansion of product acceptance. Management Expects to Become Profitable in Year 1, and for Year 5 Revenues to Reach $6.7 million Management projects revenue for years 1 – 5 to be: $1.9 million, $3.0 million, $4.3 million, $5.3 million and $6.7 million respectively. Management forecasts Gross Margin to be between 61.5% and 61.6% overall revenue for the entire forecast period. Management projects to become profitable in year 1 and net income for years 1 – 5 to be: $802 thousand, $1.3 million, $2.0 million, $2.6 million and $3.9 million, respectively. Corresponding net income percentages are between 42% and 50% for the forecast period. 7