How much do you think a potential buyer will offer based upon a valuation earnings multiple of ten times sustainable earnings, plus the value of cash and marketable investments on the balance sheet.

Exhibit 1C: Base Case Historical and Forecast Balance Sheet (in accordance with U.S. Generally Accepted Accounting Principles) U.S. $ End of Last Year End of This Year Assets Cash 84,258 88,181 Available for sale securities 185,000 185,000 Accounts receivable (net) 535,024 529,085 Inventory 180.000 181,414 Total current assets 984,282 983,680 Deferred tax asset PP&E at historical cost Less accumulated depreciation Net PP&E 104,340 7,500,000 (2.750.000) 4,750,000 106,307 8,500,000 (3,075,000 5,425,000 5.838.622 6.514.987 Total assets Liabilities Accounts payable Deferred consideration for acquisition Long-term debt Total liabilities 260,908 1,000,000 . 260,909 0 1,464,454 1,725,343 1,260,908 Shareholders' equity" 4,577,714 4,789,624 Total liabilities and shareholders' equity 5.838.622 6.514.967 * Shareholders' equity is reduced by $35,000 of accumulated other comprehensive income Exhibit 1A: Base Case Forecast Income Statement for the Next Twelve Months (in accordance with U.S. Generally Accepted Accounting Principles) U.S. $ Revenue Product sales 2,939,360 Expenses Cost of goods sold Selling, general, and administrative Operating income (2,439,844) (240.620) 258,896 (50,000) 208,896 Interest expense Income before provision for income taxes Provision for income taxes Net income (loss) (75.081) 133.815 Exhibit 1B: Base Case Forecast Cash Flow Statement for the Next Twelve Months (in accordance with U.S. Generally Accepted Accounting Principles) U.S. $ Net income 133,815 + Depreciation expense 325,000 + Decrease in other current assets 4,525 + Increase in current liabilities 1 - Increase in deferred tax asset (1.967) Cash flow from operating activities 461,374 Spend on PP&E/Deferred payment (2.000.000) Cash flow from investing activities (2,000,000) Increase in loan liability 1,464,454 Investment by shareholders 78.095 Cash flow from investing activities 1,542,549 Net cash flow 3.923