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Craig A. Smith & Associates, Inc. and MPS3D, LLC <br />Combined Statements of Income <br />December 31, December 31, <br />2016 2015 <br />Revenue $ 6,124,986 $ 6,809,396 <br />Total Revenue 6,124,986 6,809,396 <br />Cost of Revenue: <br />Direct Labor <br />1,887,460 <br />1,843,820 <br />Indirect Labor <br />1,223,453 <br />1,252,008 <br />Project Consultant Fees <br />478,148 <br />805,292 <br />Project Costs <br />54,406 <br />85,459 <br />Total Cost of Revenue <br />3,643,467 <br />3,986,579 <br />Gross Profit <br />2,481,519 <br />2,822,817 <br />General and Administrative Expenses: <br />Fringe Benefits <br />480,728 <br />527,149 <br />Rent <br />242,667 <br />236,063 <br />Telephone / Utilities Expense <br />53,549 <br />54,534 <br />Insurance Expense <br />114,913 <br />115,054 <br />Office Supplies <br />70,632 <br />64,186 <br />Dues & Subscriptions <br />10,502 <br />9,577 <br />Travel Expense <br />34,517 <br />58,289 <br />Business Development <br />65,486 <br />17,572 <br />Equipment Lease <br />30,008 <br />28,855 <br />Witten License Fees <br />133 <br />17,684 <br />Education & Seminars <br />2,587 <br />7,518 <br />Administration Vehicle Cost <br />33,788 <br />30,791 <br />Repairs & Maintenance <br />5,802 <br />14,480 <br />Professional Fees <br />158,349 <br />160,352 <br />Taxes & Licenses <br />11,825 <br />10,786 <br />Bad Debts <br />3,558 <br />1,093 <br />Field Operations & Supplies <br />338,599 <br />332,463 <br />Project Costs - Non -Billable <br />130,408 <br />57,068 <br />Amortization / Depreciation <br />51,280 <br />49,099 <br />Miscellaneous Expense <br />3,299 <br />2,630 <br />Total General and Administrative Expenses <br />1,842,630 <br />1,795,243 <br />Net Profit Before Other Income (Expense) <br />638,889 <br />1,027,574 <br />Interest Income <br />3,848 <br />4,694 <br />Miscellaneous Income <br />50 <br />12,288 <br />Interest Expense <br />(9,362) <br />(30,590) <br />Total Other Expense <br />(5,464) <br />(13,608) <br />Combined Net Profit <br />$ 633,425 <br />$ 1,013,966 <br />See accompanying notes to combined financial statements and <br />accountant's review report <br />-3- <br />39 <br />