The set of assumptions for the Revenue Projections below shows the revenue for the baseline “scenario”:
- based on our market research the estimated total market of licenses during the first four years of operation of the company is 900 licenses;
- the expected market share of BIS Ltd., of the total market for licenses, is 1% in year one, 6% in year two, 6.6% in year three and 10% in year four;
- based on the above market share of the number of licenses to be sold from Y1 to Y4 are 14, 59, 59 and 87 respectively;
- the market study shows that sales can be achieved at unit prices for the product set at 30,000 for Y1 and Y2 and at 40,000 for the Y3 and Y4;
- based on the number of licenses and unit prices the revenue for the sale of licenses will be 420,000 for Y1, 1’770,000 for Y2, 2’360,000 for Y3 and 3’480,000 for Y4;
- Software Maintenance after Warranty, Recurrent Licences Fees and Ongoing technical Support are 1/3 of value of sales in the same month of the previous year;
- the revenue of recurrent licenses in Y3 and Y4 is based on sales of licenses in Y2 and Y3, respectively, being on average 25-30% of total sales of licenses per year;
- based on the number of licenses sold and the unit prices the recurrent revenue will be 140,000 for year two, 590,000 for Y3 and Y4.
The Exhibit below shows the market share and revenue projections for Y1, Y2
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