How would you transfer this information for a startup company into the three financial statements?

PRE-SEED TECH: This sophisticated hardware and software product is based on our 2 provisional patents, which we hope will be granted within a year. We will likely spend $5k on patent fees during the pre-seed period. I have been developing this product with my original co- founder, who left last month when starting a business turned out to be a difficult thing to do.

Although we already have a prototype, we want to introduce certain improvements for the beta unit, so we will have to build another set of prototypes, which I estimate will cost about $12k in parts and test tools, and will take about 4 months to build and test before we can put our first beta unit in the field. We will need outside experts for some of the image processing details on the prototype system, and they will likely cost us about $25k.

Development costs for our first shipping unit (V1, spent once we get seed funding) will probably be about $30k. New versions of the system after that- which will start work on as we begin each round, will be about $50k-100K in consultants, assuming we have a small team of permanent engineers, growing from 1 during our seed round to 2 once we have our A round to perhaps a dozen by V3. We'll also need an engineer with programming skills in the A round, probably an expensive person ($120k). Most versions will take about 4-6 months including testing.

Our COGS will be about $24k per install, and perhaps $1,500 annually for the maintenance tracking and occasional repairs.

SEED TECH: We did successfully raise our Seed Round. Great job, partner!!

As I wrote above, we will spend a portion of that on the outsourced development of V1, and

should see significant improvement in our product.

As soon as possible, I would like to request a programmer (around $100k) to help with some of the many needed updates to the product- better product would help sales, so as soon as we can, please let me know and I will hire that person!

PRE-SEED MKTG: This market should enable us to grow to our sales target by the end of the 5th year, if we continue to develop the product, and can grow globally.

We anticipate this product to be priced at $85k for the average install, including installation and testing. After that there will be an annual maintenance fee of $5,000 per year.

To accomplish these sales, we will sell through distributors who serve the key industries we are targeting, such as the military, governments, campuses, infrastructure, and (a small market) celebrities; however, we will do the installs ourselves, with one install team travelling internationally. It will likely take only 2-3 days to install it for a team of 3 people. Our marketing to support distributors will include trade shows, advertising, lead generation through inbound plus AdWords and related technologies. We'll need a team of 2 in marketing once we receive the A round, growing to probably 15 by exit.

Distributors will retain 30% of sales, since we do the installs. We will plan to do beta sales and the installs ourselves without distributors, but all sales from the A Round on will be through distributors.

SEED MKT: Good job raising our Seed Round!!

This round we will need to continue to spend on marketing to bring in customers, as our sales cycle is painfully long. For the Seed round, we should be able to accomplish 2 sales.