Sample Assumptions

Sample Assumptions - Pharmacy TV Network, Inc. Assumptions...

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Pharmacy TV Network, Inc. Confidential 1 Pharmacy TV Network, Inc. Assumptions To Financial Projections Overall The financial projections for Pharmacy TV Network (PTVN) cover the 4-year period beginning January 1, 2006. Actual numbers are included through May 31, 2006, with projections on a monthly basis through 12/31/07 and an annual basis for calendar years 2008 and 2009. Financing Equity: PTVN has raised $2 million in Series A financing. These projections assume a $10 million Series B (including conversion of $300K in bridge notes currently outstanding) in September, 2006. No additional equity financing is assumed. Debt: PTVN currently has a $600K venture debt facility with Western Technology Investment (current principal balance at 7/1/06 of $462K) and a $600K accounts receivable line of credit ($0 outstanding at 7/1/06) with Bridge Bank. There is also $300K in bridge financing outstanding from existing investors that will convert into the Series B. PTVN intends to continue to utilize a combination of debt and equity financing to finance capital expenses and working capital for growth. These projections assume a $4 million venture debt facility following the close of the Series B to finance the capital expenses of the Safeway rollout and an extension of the accounts receivable line of credit to cover 75% of receivables. No additional debt financing is assumed in these projections, although it is likely that PTVN will continue to finance the store equipment. Revenue Assumptions The PTVN business model is comparable to a traditional television network with PTVN responsible for producing content, running the network, paying for the capital expenses, and selling advertising. However, many of these activities are outsourced. In exchange for offering the store real estate, the retail pharmacies receive a share of the revenue (with a minimum guaranty). Revenues in the projections are presented both gross and net of the pharmacy share. However, gross revenues do not include the standard 15% advertising agency commission that is paid directly by the advertisers to the agency. The total number of stores used in the projections is summarized below:
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Sample Assumptions - Pharmacy TV Network, Inc. Assumptions...

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