M&A -- Case Study -- Sales Chart --4 Sales (Queenplug vs. Queenie) Queenie Sales Queenplug sales after introduction of Queenie Queenplug Sales prior to Queenie Time (year periods) US Sales (million units)
M&A -- Case Study -- Sales Tables a –5 YearUnits Sold Total Sales (USD) Total Royalty (USD) US Sales (units) US Royalty (USD) 1/7/ /6/99 120,0005.4M60,000 30,000 1/7/ /6/00 240, M120,000 60,000 1/7/ /6/01 500, M250, ,000 1/7/ /6/02 1.2M54M600, ,000 1/7/ /6/03 6M270M3M 1.5M For 6 month period 1/7/03- 31/12/03 15,000675,00015,0007,500$ 7,500 Saved Royalty "Queenie” sales 2.4M108M--1.2M$ 1.2M monthly sales 7/03: 300K units 12/03: 400K units total sales for 6 months: 2.4M units H urrimone 2003 Lost sales 1.2M units 2003 Lost royalties $ 1.2M “Queenplug” Sales: 2003 “Queenie” Sales:
M&A -- Case Study -- Sales Tables b – “Queenie” Sales (estimated): For simplicity, assume for 2004 that sales of "Queenie" continued at rate 400K units/month. -- As of 9/2004, 9 months of 400K units/month Units Sold Total Sales (USD) Total Royalty (USD) US Sales (50% of total) Saved Royalties "Queenie" sales 1/1/04- 30/9/04 3.6M162M--1.8M$ 1.8M Whaghton’s potential royalty liability: Total Royalty saved and not paid to Hurrimone = US $ 3 M (through 9/2004) and increasing at rate of $ 400K/month Return