Dollinger index

performance comparable to those of similar

public companies.

ORGANIZATION AND

MANAGEMENT

Key Personnel Resources

The founding management team is com-

posed of four very dedicated, knowledgeable,

and diverse people with great determination

to make MedTrack a winning company. The

areas of focus will be the following:

• Ivanette Bonilla: CEO and R&D man-
  ager


• Dan Fillenwarth: Operations manager


• Sri Sampath: CFO


• Vassil Chalashkanov: Marketing and
  sales manager

The qualifications of the management team

are outstanding. They include the following:

Ivanette Bonilla:

• Developed new batch records, imple-
  mented many process improvements,
  and organized justification for funding
  of new encapsulation equipment in the
  manufacturing area of the Procter &
  Gamble (P&G) pharmaceuticals plant
  in Puerto Rico.


• Executed technical and consumer
  research for comparison testing of sev-
  eral absorbent core materials in the
  feminine care business of P&G
  Cincinnati.


• Initiated execution of consumer pur-
  chase panel for product acceptance
  testing and purchase intent analysis.

MedTrack 435

Annual cumulative price (revenue)
increase

Revenue
Systems revenue ($2MM avg. per sys.)
Maintenance rev. (5% of prev. 3 yrs.
sys. rev.)
Total revenue

Operating expenses
COGS (20% of revenue)
Selling (10% of systems revenue)
Administration
Salaries (15% of sales beg. yr. 2)
R & D (outsourced)
Lease costs (office, autos, equip)
Depreciation (minimal cap. invest.
early)
Interest ($4MM bond @12%)
Total operating expenses

Operating income before taxes

Income tax expense (assumed 30%
of IBT)

Net income (loss)

EXHIBIT 7 Pro Forma Income Statement for MedTrack (U.S. $000s)

Year 1

—

Year 1

$1,000

0

$1,000

$ 200

100

50

200

3,000

30

5

0

$3,585

($2,585)

(776)

($1,810)

Year 2

2.0%

Year 2

$8,160

100

$8,260

$1,652

816

400

1,239

5,000

245

50

480

$9,882

($1,622)

(487)

($1,135)

Year 3

4.0%

Year 3

$27,040

458

$27,498

$ 5,500

2,704

800

4,125

4,000

541

87

480

$18,236

$ 9,262

2,778

$ 6,483

Year 4

6.0%

Year 4

$61,480

1,810

$63,290

$12,658

6,148

2,000

9,494

6,329

1,230

175

480

$38,513

$24,777

7,433

$17,344

Year 5

8.0%

Year 5

$111,240

4,834

$116,074

$ 23,215

11,124

3,000

17,411

11,607

2,225

329

480

$ 69,391

$ 46,683

14,005

$ 32,678

Year-by-Year Profit and Loss Assumptions