\fAppendix I: Email from Hans Simmermann, R&D Supervisor Hans Simmermann TO: Geoffrey Chang Subject: R&D expenses for Innocent Cleanaway As promised, here is the list of expenses related to our new product being developed, \"innocent Cleanaway.\" All these costs were incurred after April 30, 2020, the date that all capitalization criteria were met, and before December 31, 2020. Any salary and depreciation costs have been pro-rated based on time spent on the project. Expenditure type Amount Salaries for lab technicians $30,600 Salaries for marketing staff to prepare the $9,700 sales forecasts Marketing costs to prepare the promotional $8,200 materials for the new product Material costs to prepare the prototype $13,100 Direct costs to run the equipment during the $6,900 manufacturing trials Depreciation of the machinery used to $5,300 manufacture the prototypes Costs incurred to train the manufacturing $1,600 employees on how to handle the organic materials used in the product formula Legal costs to prepare three-year purchase $3,700 agreement with supplier for the new organic material used in the product formula Appendix II: Internal announcement from Laura McKillop, CEO Internal announcement from January 17, 2021 Laura McKillop, CEO Today, I am very pleased to announce that the development of our new product \"Carpets Cleanaway' is well underway and will eventually replace our current carpet cleaning product. a The board of directors has agreed to put sufficient resources behind this product development and we know from our market research that it will appeal to both consumers and commercial customers, such as hotels and ofces. a The only unknown is for the marketing department to determine an appropriate but competitive selling price. We also know that are we are behind our competitors. I still believe that we will have a competitive product, but only if we get the product to market in the next few months. a Our R&D team has been working diligently and now has a prototype which just passed all of the technical feasibility tests. 0 Our production team still needs to perform the pre-production tests, which they are hoping to complete sometime soon in 2021, after which the final step will be to get this to the market. a To date, expenditures of $150,000 have been incurred, but we know that this will be a blockbuster product and well worth the investment