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Craig A. Smith & Associates, Inc, and MPS3D, LLC <br />Combined Statements of Income <br />December 31, December 31, <br />2015 2014 <br />Revenue $ 6,809,396 $ 5,432,972 <br />Cost of Revenue <br />Direct Labor 1,843,820 1,515,150 <br />Indirect Labor 1,252,008 1,261,316 <br />Project Consultant Fees 805,292 471,012 <br />Project Costs 85,459 119,431 <br />Total Cost of Revenue 3,986,579 3,366,909 <br />Gross Profit 2,822,817 2,066,063 <br />General and Administrative Expenses <br />Fringe Benefits <br />527,149 <br />430,858 <br />Rent <br />236,063 <br />243,342 <br />Telephone / Utilities Expense <br />54,534 <br />54,602 <br />Insurance Expense <br />115,054 <br />109,971 <br />Office Supplies <br />64,186 <br />56,932 <br />Dues & Subscriptions <br />9,577 <br />6,697 <br />Travel Expense <br />58,289 <br />32,737 <br />Business Development <br />17,572 <br />18,247 <br />Equipment Lease <br />28,855 <br />33,397 <br />Witten License Fees <br />17,684 <br />58,336 <br />Education & Seminars <br />7,518 <br />849 <br />Administration Vehicle Costs <br />30,791 <br />31,378 <br />Repairs & Maintenance <br />14,480 <br />8,086 <br />Professional Fees <br />160,352 <br />142,670 <br />Taxes & Licenses <br />10,786 <br />11,133 <br />Bad Debts <br />1,093 <br />350 <br />Field Operations & Supplies <br />332,463 <br />321,196 <br />Project Costs - Non -Billable <br />57,068 <br />39,141 <br />Amortization / Depreciation <br />49,099 <br />52,540 <br />Miscellaneous Expense <br />2,630 <br />2,798 <br />Total General and Administrative Expenses <br />1,795,243 <br />1,655,260 <br />Net Profit Before Other Income / Expense <br />1,027,574 <br />410,803 <br />Interest Income <br />4,694 <br />4,481 <br />Miscellaneous income (expense) <br />12,288 <br />(4,240) <br />Less: Interest Expense <br />(30,590) <br />(57,070) <br />Total Other Income / (Expense) <br />(13,608) <br />(56,829) <br />Combined Net Profit <br />$ 1,013,966 <br />$ 353,974 <br />See accompanying notes to combined financial statements and accountant's review <br />report <br />-3- <br />53 <br />