ASSIGNIMENTS A. Describe spatial Technology's business model in terms of revenues, profits, and cash flows. B. What intellectual properly, if any, doces Spatial Technology possens? Cane 2. Spatial Technologv Inc. F. Describe the four successful rounds of wenture financing (A throtugh D) acchieved by Spatial Technology in terms of sources and ameants. What additional financing sources have been used? G. Conduct a ratio analysis of Spatial Technology's past income statements and balance sheets. Note any performance strengths and weaknesses and discuss any ratio trencls. H. Use the cash flow statements for Spatial Technology, Inc., to determine whether the venture has been building or burning cash, as well as prossible trends in building or: burning cash. 1. Discuss possible reasons why Spatial Technology's plan for an IPO of common stock at the end of 1992 was withdrawn. 1. Deseribe the IPO market conditions in 1996 and alisciuss pcissible reasens why the proposed 1PO at a price of alyut 510 per share planned for Octoher 1996 and involving Dain Boswarth as lead underwriter failed. K. Fvaluate the compound return on investments made at startup, Round A, Round B, Roand C, and Round D if the acquired shares eventually sell at $10 and $5. Fvaluate the compcuand return on all investments of each existing insestor. Analyze the incentives of each investor and founder for taking the Cruttenden roth offer to. execute a. 55 110. L. Using the provided finuncial statements as a starting point: 1. Prepare and present a discounted cash flow wheation and pro forma finiticials with five years of explicit forccasts using license fecs and royafties growth nates comststent with recent histury (c.g., two to threc ycars) at spatial. 2. Modify your analysitho consider a mere sucecseful sccmario where Spatialis main revenue wearces (cambincel) gruw at 50 perext fior five years and then flatten to a more sustainable growth rate. 3. Prepare and present discounted cash flow valuarions and pro forma financial staternents (tive-year explicit pericod) that fustify a $10 shafe price and a 55 share price at the IPO. Make sure the ratios embedded in your projections conform to reasonable operating ratio assumptions. t. In all cases, be sure to explain vour modeling assumptions on revemue and costs and provide a sumamary comparison od the four scenarios: M. Biscuss the $5 amd $10 IPC prices for \$patial within the contest of comparable firm: and their multiples. (There are same glimipecs of multiples in the cire matcrals. fat you may wish to une mime outside histerical reference material. Pleaye atate givur siastez. Prepare an wxecurive summary diverwing the evenes and desiniras (rechnological and financial) leading to its sifution, the options it had and ynar mernmmenclaticons for Spatial's foture. Woald (comid) you hase done anything difterently? Q. Iake a position on whether you would recommernd the s5 LP0, Iake a position on Whethet, as an investor, you tould hive purchased shaces in the 551100. R. Discuss what you heliege would hase been the strategic outhok for gpatial. (propduct lines. licetising, competitoen, ete.) at the tame and what yote believe would