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Craig A. Smith & Associates, Inc. and MPS3D, LLC <br />Combined Statements of Income <br />December 31, December 31, <br />Revenue 2014 2013 <br />Labor Revenue $ 5,432,972 $ 3,378,285 <br />Total Revenue 5,432,972 3,378,285 <br />Cost of Revenue <br />Direct Labor <br />1,515,150 <br />1,008,379 <br />Indirect Labor <br />1,261,316 <br />1,275,682 <br />Project Consultant Fees <br />471,012 <br />147,735 <br />Project Costs <br />119,431 <br />31,293 <br />Total Cost of Revenue <br />3,366,909 <br />2,463,089 <br />Gross Profit <br />2,066,063 <br />915,196 <br />General and Administrative Expenses <br />Fringe Benefits <br />430,858 <br />382,644 <br />Rent <br />243,342 <br />250,644 <br />Telephone / Utilities Expense <br />54,602 <br />50,696 <br />Insurance Expense <br />109,971 <br />107,050 <br />Office Supplies <br />56,932 <br />47,574 <br />Dues & Subscriptions <br />6,697 <br />14,334 <br />Travel Expense <br />32,737 <br />23,195 <br />Business Development <br />18,247 <br />17,325 <br />Marketing <br />- <br />- <br />Equipment Lease <br />33,397 <br />41,169 <br />License Fees <br />58,336 <br />39,163 <br />Education & Seminars <br />849 <br />8,260 <br />Automobile Expense <br />31,378 <br />38,462 <br />Repairs & Maintenance <br />8,086 <br />3,568 <br />Professional Fees <br />142,670 <br />155,564 <br />Taxes & Licenses <br />11,133 <br />10,665 <br />Bad Debts <br />350 <br />13,000 <br />Field Operations & Supplies <br />321,196 <br />171,471 <br />Project Costs - Non -Billable <br />39,141 <br />2,963 <br />Amortization / Depreciation <br />52,540 <br />49,223 <br />Miscellaneous Expense <br />2,798 <br />2,253 <br />Total General and Administrative Expenses <br />1,655,260 <br />1,429,223 <br />Net Profit (Loss) Before Other Income / Expense <br />410,803 <br />(514,027) <br />Interest Income <br />4,481 <br />6,259 <br />Miscellaneous Income <br />(4,240) <br />26,531 <br />Less: Interest Expense <br />(57,070) <br />(53,481) <br />Total Other Income / (Expense) <br />(56,829) <br />(20,691) <br />Combined Net Profit / (Loss) <br />$ 353,974 <br />$ (534,718) <br />See accompanying notes to combined financial statements and accountant's review report <br />-3- <br />