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Basic Assumptions


	MOBILE MRI AND CAT SCANS CORPORATION Basic Assumptions
	All analytical numbers are based off of the trends of current competitors financial statements dating back to 2013.
	Number of employees = 5
	Employees to be paid $26.00/ hour based off of current competitive wages of an x-ray technician.
	Initial loan of $100,000 at an interest rate of 2.8% over a 10 year period.

&CCONFIDENTIAL

&C&D &T

Proprietors Capital


MOBILE MRI AND CAT SCANS CORPORATION Statement of Proprietor's Capital
		Prorpietors Capital
	At Closing	End 2017	End 2018	End 2019
Proprietor's Capital - Beginning	$0.00	$0.00	$7,332,000.00	$24,467,000.00
Add: Capital injections by proprietors	$0.00	$6,900,000.00	$14,080,000.00	$15,000,000.00
Net Income (Loss)		$432,000.00	$3,055,000.00	$1,230,000.00
Less: Withdrawals by proprietor
Net Change in Proprietor's Capital	$0.00	$7,332,000.00	$17,135,000.00	$16,230,000.00
Proprietor's Capital - Ending	$0.00	$7,332,000.00	$24,467,000.00	$40,697,000.00

Balance Sheets


MOBILE MRI AND CAT SCANS CORPORATION BALANCE SHEETS
	As of December 31
	2019	2018	2017
ASSETS
Current Assets
Cash and Cash Equivalents	$ 7,430,000	$ 5,000,000	$ 1,000,000
Accounts receivable, net of allowance for doubtful accounts	$ 200,000	$ 3,200,000	$ 1,500,000
Investments	$ 7,600,000	$ 7,900,000	$ 2,500,000
Inventory	$ 5,000,000	$ 3,000,000	$ 2,000,000
Prepaid Expenses and Other current Assets	$ 310,000	$ 270,000	$ 120,000
Prepaid Income Taxes	$ 275,000	$ 300,000	$ -
Deferred Income Taxes	$ 130,000	$ 100,000	$ -
Total Current Assets	$ 20,945,000	$ 19,770,000	$ 7,120,000
Property and Equipment	$ 900,000	$ 750,000	$ 1,600,000
Intangible Assets	$ 180,000	$ 250,000	$ 200,000
Deferred Income Taxes	$ 80,000	$ 75,000	$ 50,000
Other assets	$ 95,000	$ 15,000	$ 12,000
Total Assets	$ 22,200,000	$ 20,860,000	$ 8,982,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$ 3,000,000	$ 2,400,000	$ 400,000
Accrued payroll and benefits	$ 1,300,000	$ 1,300,000	$ 1,200,000
Other accrued taxes	$ 30,000	$ 110,000	$ 40,000
Warranty reserve	$ 35,000	$ 30,000	$ 20,000
Deferred revenue	$ 400,000	$ 300,000	$ 205,000
Accrued income taxes	$ -	$ -	$ -
Total current liabilities	$ 4,700,000	$ 4,140,000	$ 1,865,000
Deferred revenue	$ 400,000	$ 140,000	$ 96,300
Total liabilities	$ 5,100,000	$ 4,280,000	$ 1,961,300
Stockholders’ equity:
Common stock	$ 900,000	$ 500,000	$ 700
Additional paid-in capital	$ 15,000,000	$ 14,080,000	$ 6,900,000
Retained earnings	$ 1,200,000	$ 2,000,000	$ 120,000
Treasury stock	—	—	—
Accumulated other comprehensive loss	$ (55,285)	$ (21,473)	$ (10,000)
Total stockholders’ equity	$ 17,100,000	$ 16,580,000	$ 7,020,700
Total liabilities and stockholders’ equity	$ 22,200,000	$ 20,860,000	$ 8,982,000

Cash Flow Statements


MOBILE MRI AND CAT SCANS CORPORATION CASH FLOW STATEMENTS
	As of December 31
	2019	2018	2017
Operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	$ 2,700	$ (97,000)	$ (22,000)
Provision for excess and obsolete inventory	$ 49,500	$ 58,000	$ 14,000
Depreciation and amortization	$ 199,000	$ 146,000	$ 40,000
Excess tax benefit on the exercise of stock options	$ (1,624,389)	$ (167,000)	$ (43,500)
Stock-based compensation	$ 1,190,000	$ 674,769	$ 193,450
Impairment of intangible assets	$ 56,000
Loss on sale of investments	$ 2,700
Changes in operating assets and liabilities:
Accounts receivable	$ (1,943,000)	$ 143,000	$ 33,000
Inventory	$ (301,000)	$ 836,593	$ (225,000)
Prepaid expenses and other current assets	$ (33,000)	$ (149,000)	$ (41,000)
Other assets	$ (113,000)	$ (147,000)	$ (4,300)
Prepaid income taxes	$ 1,800,000	$ (46,500)	$ (10,000)
Deferred income taxes	$ (17,000)	$ 133,000	$ (42,400)
Accounts payable	$ 377,000	$ 202,000	$ 55,000
Accrued payroll and benefits	$ 43,000	$ 565,890	$ 158,300
Other accrued liabilities	$ (31,200)	$ (12,000)	$ (4,500)
Warranty reserve	$ 5,300	$ 17,000	$ 4,000
Deferred revenue	$ 505,000	$ 174,000	$ 53,000
Other		$ (1,400)	$ 250
Net cash provided by operating activities	$ 167,611	$ 2,330,352	$ 158,300
Investing activities:
Purchases of investments		$ 100,000	$ 30,000
Proceeds from sale of investments	$ 259,000	$ 159,237	$ 38,000
Purchases of property and equipment	$ (267,400)	$ (7,000)	$ (2,000)
Capitalized intangible assets	$ (13,000)	$ 12,567,592	$ 3,134,580
Net cash used in investing activities	$ (21,400)	$ 12,819,829	$ 3,200,580
Financing activities:
Proceeds from stock option and warrant exercises	$ 540,000	$ 985,000	$ 30,000
Income tax benefits credited to equity	$ 1,386,504	$ 165,000	$ 42,600
Repayment of officer note payable		$ (4,000)	$ (1,800)
Proceeds from the issuance of common stock pursuant to initial public offering		$ 11,100,000	$ 3,200,000
Payment of initial public offering costs		$ (1,650,000)	$ (526,541)
Net cash provided by financing activities	$ 1,926,504	$ 10,596,000	$ 2,744,259
Net increase in cash and equivalents	$ 9,476,004	$ 5,457,604	$ 1,437,850
Cash and cash equivalents, beginning of year	$ 9,300,000	$ 1,984,395	$ 599,704
Cash and cash equivalents, end of year	$ 18,776,004	$ 7,441,999	$ 2,037,554
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 231,537,000	$ 1,045,763	$ 300,000

Income Statements


MOBILE MRI AND CAT SCANS CORPORATION INCOME STATEMENT
	For the years ended December 31st
	2019	2018	2017
Revenue	$ 20,945,000	$ 19,770,000	$ 7,120,000
Cost of revenue	$ 8,000,000	$ 5,400,000	$ 2,400,000
Gross profit	$ 12,945,000	$ 14,370,000	$ 4,720,000
Operating expenses:
General and administrative	$ 4,610,000	$ 3,970,000	$ 1,720,000
Sales and marketing	$ 310,000	$ 270,000	$ 120,000
Research and development	$ 7,600,000	$ 7,900,000	$ 2,500,000
Total operating expenses	$ 12,520,000	$ 12,140,000	$ 4,340,000
Income from operations	$ 425,000	$ 2,230,000	$ 380,000
Other income (expense), net	$ 95,000	$ 15,000	$ 12,000
Income before provision for income taxes	$ 435,000	$ 510,000	$ 40,000
Provision for income taxes	$ 275,000	$ 300,000	$ -
Net income	$ 1,230,000	$ 3,055,000	$ 432,000
Net income per share:
Basic	$ 17,100,000	$ 16,580,000	$ 7,020,700
Diluted	$ 17,044,715	$ 16,558,527	$ 7,010,700
Weighted average shares outstanding:
Basic	$ 22,200,000	$ 20,860,000	$ 8,982,000
Diluted	$ 22,144,715	$ 20,838,527	$ 8,972,000