142 Part I • Information Technology
- Evaluated several graphical user interfaces (GUIs)
and reporting packages for the Asterisk platform
improving its general suitability for the small and
midsize business markets, - Secured distribution and reseller agreements for the
necessary network and equipment service components, - Developed processes for provisioning network,
implementing systems, providing customer service,
managing materials and billing, - Developed and implemented processes for prospect-
ing, seminar selling, and mass marketing, - Secured sales channel relationships with four author-
ized distributors, - Hired and trained required staffing in software sys-
tems engineering, network engineering and project
management, - Contracted with and installed an initial 22 cus-
tomers, and - Operated in late June 2006 at a rate of nearly 20,000
calls per week with a quality rating exceeding 98%.
Milkowski knew that in order for the board of directors to
accept the option of implementing Phase II, he would have
to explain how he and his team were going to increase
acceptance of the technology at a much faster pace without
spending huge amounts of money. The board at their last
meeting had indicated that they would invest only another
$500,000 through the end of 2006 ifan acceptable plan
were to be developed.
Of course, continuing with the Phase II Plan was not
the only option. Milkowski was aware that at least some
members of the board were concerned about the future of
VoIP as a viable commercial venture given the recent his-
tory of the best known VoIP firm—Vonage. Their stock’s
history since the IPO was anything but stellar. Several
speculated that VoIP was just a few years ahead of its time.
They recognized that Vonage was primarily a service for
the residence market, and VoIP2.biz attacked the small and
midsize business market. Still they were concerned. They
did not believe that the firm could be sold for very much
given the lack of a positive cash flow. These boardEXHIBIT 5 Projected Balance Sheets
Balance Sheets (All figures in $000)
7/1/2006 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010
Assets
Cash $ 250 $ 2,706 $ 1,224 $ 1,836 $ 11,635 $ 35,593
Accounts Receivable $ 50 $ 434 $ 2,066 $ 5,678 $ 9,580 $ 12,727
Inventory $ 10 $ 46 $ 336 $ 872 $ 1,215 $ 301
Total Current Assets $ 310 $ 3,187 $ 3,626 $ 8,385 $ 22,429 $ 48,620
Fixed Assets $ 60 $ 128 $ 372 $ 616 $ 716 $ 816
Accumulated Depreciation $ - $ (43) $ (167) $ (382) $ (578) $ (726)
Net Fixed Assets $ 60 $ 85 $ 205 $ 234 $ 138 $ 90
Total Assets $ 370 $ 3,272 $ 3,832 $ 8,619 $ 22,567 $ 48,710
Liabilities
Accounts Payable $ - $ 304 $ 1,948 $ 5,691 $ 9,820 $ 13,112
Accrued Payroll $ - $ 26 $ 134 $ 277 $ 358 $ 344
Notes Payable $ - $ - $ - $ - $ - $ -
Total Current Liabilities $ - $ 329 $ 2,082 $ 5,968 $ 10,178 $ 13,456
Notes Payable $ 250 $ 250 $ 250 $ - $ - $ -
Total Liabilities $ 250 $ 579 $ 2,332 $ 5,968 $ 10,178 $ 13,456
Owners Equity
Common Stock $ 1,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,001
Retained Earnings $ (880) $ (1,308) $ (2,500) $ (1,349) $ 8,389 $ 31,253
Total Owners Equity $ 120 $ 2,692 $ 1,500 $ 2,651 $ 12,389 $ 35,254
Total Liabilities and Equity $ 370 $ 3,272 $ 3,832 $ 8,619 $ 22,567 $ 48,710