Calculate lost profit damages and reasonable royalty in the Cat Toy Case assuming that the only other company selling infringing cat toys is SportPet.

Write a report section presenting your conclusion as to the proper amount of lost profit damages and the bases for your conclusion.

What assumptions you made (e.g. that, absent SportPet's infringement, what sales Comerford would have made, the date of first infringement, the time period for the infringement) and then give some background on how you proceeded to turn those assumed lost sales into actual lost profits.

Do a Georgia-Pacific analysis for the Cat Toy case.

UnderCover Mouse Income Statement 2009 2011 2012 2013 27,200 2,745 24,455 Units Wholesale Direct 2010 97,017 42,394 54,623 126,696 51,010 75,687 115,744 44,705 71,039 75,788 28,220 47,568 Revenues Wholesale Direct Repair Freight $ $ $ $ $ 599,809 $ 1,610,950 $ 2,091,626 $ 1,949,065 $ 1,274,673 32,133 $ 356,025 $ 426,243 $ 412,685 $ 254,311 561,235 $ 1,245,234 $ 1,654,238 $ 1,523,564 $ 1,005,623 $ $ $ $ 6,441 $ 9,691 $ 11,145 $ 12,816 $ 14,739 COGS Manufacture Freight Labor $ $ $ $ 294,192 50,047 112,187 131,958 $ $ $ $ 811,790 $ 1,073,656 $ 178,511 $ 233,121 $ 278,870 $ 380,377 $ 354,409 $ 460,158 $ 996,310 $ 212,969 $ 354,546 $ 428,794 $ 655,945 139,449 236,067 280,428 Gross Margin $ 305,616 $ 799,160 $ 1,017,970 $ 952,755 $ 618,728 SG&A Advertising Bank Dues Equipment Rental Freight - Other Insurance Office Supplies Outside Svcs Postage Rent Repair R&D Ship Materials Shop Supplies Small Tools Property Tax Telephone Travel Entertainment Utilities Vehicles Owner's Salary $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 375,326 251,235 192 160 455 16,036 1,871 4,537 1,304 14,584 676 254 1,410 4,782 804 415 3,000 1,637 208 5,122 1,250 65,394 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 443,296 158,782 212 160 227 242 27,491 1,230 3,434 1,287 14,584 451 1,045 3,601 4,973 1,690 393 3,017 5,809 833 5,277 2,568 205,991 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 668,004 351,254 212 160 227 300 28,041 3,023 4,537 1,670 14,584 585 3,055 4,675 6,457 2,194 393 3,917 12,874 1,081 6,852 5,621 216,291 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 759,977 412,584 212 160 227 300 28,602 1,488 4,537 1,557 14,584 546 2,843 4,356 6,017 2,044 393 3,650 34,921 1,007 6,385 6,458 227,105 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 540,385 178,542 212 160 227 300 29,174 973 4,537 1,018 14,584 357 3,820 2,849 3,935 1,337 393 2,387 45,129 659 4,176 7,156 238,460 EBITDA $ (69,709) $ 355,864 $ 349,966 $ 192,779 $ 78,343 Interest Rate Term Depreciation Taxes1 $ (17,344) $ (15,850) $ (14,263) $ (12,577) $ (18,750) $ 6.25% 10 ($2,905) $ $ (4,271) $ (113,644) $ (6,419) $ (111,417) $ (6,419) $ (58,513) $ (6,193) (20,255) Net Income $ (91,364) $ 220,604 $ 216,280 113,584 $ $ 39,318 2009 Net Income Discount Rate Present Value $ $ UnderCover Mouse Revenues SportPet Revenues Total Revenues $ $ $ Market Share for Undercover Mouse Market Share for SportPet Incremental Sales Undercover Mouse COGS Lost Profits Ideal Revenues Actual Revenues Damages 2010 2011 $ 2013 (91,364) $ 220,604 $ 216,280 $ 113,584 $ 39,318 1 0.9411764706 0.8858131488 0.833706493 0.7846649346 (91,364) $ 207,627 $ 191,583 $ 94,695 $ 30,851 2009 599,809 694,211 1,294,020 $ $ $ 2010 1,610,950 906,439 2,517,389 46% 54% $ 2012 64% 36% 972,237 294,192 678,044 1,937,332 811,790 1,125,542 $ $ $ $ 2011 2,091,626 $ 1,964,738 $ 4,056,363 $ 52% 48% $ 3,043,265 1,073,656 1,969,609 $ 2012 1,949,065 $ 2,324,447 $ 4,273,512 $ 46% 54% 3,213,378 996,310 2,217,068 $ 2013 1,274,673 1,907,690 3,182,362 40% 60% 2,418,251 655,945 1,762,306 2009 2010 2011 2012 2013 678,631.45 2,420,570.65 3,161,068.89 2,887,816.12 1,890,900.64 599,809 $ 1,610,950 $ 2,091,626 $ 1,949,065 $ 1,274,673 78,822.49 809,620.78 1,069,443.38 938,750.93 616,228.03 UnderCover Mouse Geographic Breakdown of Revenues Pacific Mountain Central East 2009 $389,876 $149,952 $ 59,981 $ - Pacific Mountain Central East 2008 65% 25% 10% 0% $ $ $ $ 2010 905,496 288,481 252,336 164,637 2011 $ 1,012,678 $ 357,215 $ 356,026 $ 365,707 2009 56% 18% 16% 10% 2010 48% 17% 17% 17% $ $ $ $ 2012 768,056 324,314 450,489 406,207 2013 $428,284 $185,790 $378,187 $ 282,411 2011 39% 17% 23% 21% 2012 34% 15% 30% 22% UnderCover Mouse Balance Sheet 2009 2010 2011 2012 2013 $499,781 $715,587 $960,949 $1,021,445 $1,018,277 $145,475 $382,993 $624,547 $761,645 $796,556 Cash & Short Term Checking Petty Cash Schwab $58,891 $36,812 $687 $21,392 $241,487 $27,669 $314 $213,504 $470,364 $31,233 $300 $438,831 $561,457 $34,267 $300 $526,890 $610,013 $22,143 $300 $587,570 A/R $39,192 $70,666 $83,342 $108,210 $100,834 Other Current Finished Goods Raw Materials WIP Undeposited Funds $47,392 $8,731 $33,194 $3,967 $1,500 $70,841 $8,652 $51,727 $10,462 $0 $70,841 $8,652 $51,727 $10,462 $0 $91,978 $11,234 $67,161 $13,583 $0 $85,709 $10,468 $62,583 $12,657 $0 $354,306 $332,594 $336,402 $259,800 $221,721 $10,780 $24,351 ($1,306) ($12,266) $12,241 $24,351 ($4,804) ($7,306) $16,049 $24,351 ($8,302) $0 $12,551 $24,351 ($11,800) $0 $9,053 $24,351 ($15,298) $0 Warehouse Cost Accum. Depr. $28,526 $30,125 ($1,599) $27,753 $30,125 ($2,372) $27,753 $30,125 ($5,293) $25,605 $33,819 ($8,215) $26,604 $37,514 ($10,910) Equipment Cost Accum. Depr. $315,000 $350,000 ($35,000) $292,600 $364,000 ($71,400) $292,600 $365,274 ($107,927) $221,645 $366,191 ($144,547) $186,064 $367,345 ($181,281) $0 $0 $0 $0 $0 $499,781 $715,587 $960,949 $1,021,445 $1,018,277 $318,509 $15,951 $420 $322,307 $38,204 $111 $302,693 $42,156 $111 $285,899 $49,604 $144 $255,443 $46,223 $134 $1,927 $483 $331 $331 ($6) $787 $212 $300,000 $3,354 $990 $544 $544 ($6) $1,281 $3,132 $277,505 $3,689 $1,089 $599 $599 ($6) $1,409 $3,132 $253,605 $3,874 $1,143 $628 $628 ($6) $1,480 $4,067 $228,211 $4,067 $1,201 $660 $660 ($7) $1,553 $3,790 $201,229 $181,271 $393,281 $658,256 $735,547 $762,834 ASSETS Current Assets Fixed Assets Vehicle Cost Accum. Depr. Personal Portion Goodwill LIABILITIES & EQUITY Liabilities A/P Credit Cards Payroll Liabilities Fed. Withholding SS -- Employee SS - Employer ETT Other Sales Tax Payable Bank Debt Equity