ASSIGNMENTS

1. Describe Spatial Technology's business model in terms of revenues, profits, and eish flows.
2. What intellectual properly, if any, does Spatial Technology possess? Describe the eynerience and evnectise characteristics of the mangoement team E Describe the four successful rounds of venture financing (A through D) achieved

   by Spatial Technology in terms of sources and amounts. What additional financing

   sources mave 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 trends. HI. Use the cash flow statements for Spatial Technology, Inc., to determine whether the venture has been building or burning cash, as well as possible 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 Discuss possible reasons why Spatial Technology's plan for an IPO of common stock at the end of 1992 was withdrawn.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. Describe the IPO market conditions in 1996 and discuss possible reasons why the proposed IPO at a price of about $10 per share planned for October 1996 and involving Dain Bosworth as lead underwriter failed.
   2. Evaluate the compound return on investments made at startup, Round A, Round B, Round C, and Round D if the acquired shares eventually sell at $10 and $5. Evaluate the compound return on all investments of each existing investor. Analyze the incentives of each investor and founder for taking the Cruttenden Roth offer to execute a $5 IPO. Using the provided financial statements as a starting point:

   1. Prepare and present a discounted cash flow valuation and pro forma financials with five years of explicit forecasts using license fees and royalties growth rates consistent with recent history (e.g., two to three years) at Spatial. Modify your analysis No consider a more successful scenario where Spatial's main revenue sources

   share price at the IPO. Make sure the ratios embedded in your projections conform to reasonable operatino ratio assumptions.

   4. In all cases, be sure to explain your modeling assumptions on revenue and costs and provide a summary comparison of the four scenarios.

   M. Discuss the S5 and S10 IPO prices for Spatial wthin the context of comparable firs and their multiples. (There are some glimpses of multiples in the case materials, DULSYOU MISS WISH LO USC some outside historical reference material. Please state VOUT SOUTCON. \.Prepare an executive summary discussing the events and decisions (technological and financial) leading to its situation, the options it had, and your recommendations for Spatial's future. Would (could) you have done anything differently?

   1. Take a position on whether you would recommend the $5 IPO. Take a position on whether, as an investor, you would have purchased shares in the $5 IPO.
   2. Discuss what you believe would have been the strategic outlook for Spatial (product lines. licensing competitors, etc.) at the time and what you believe would have been the financial market's view of a publiely traded spatial Technology: