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Projected Valuation – December 2020


One Time Revenue Value - $Millions


Gross Margin from One Time Revenue (from P&L) $19
Total Gross Margin (from P&L) $48
Ration of GM from One-time Revenue to Total GM 40%
TOTAL EBITDA (from P&L) $37
EBITDA Attributable to One Time Revenue $15
Multiplier 8
Value of One-Time Revenue - $Millions $117

Recurring Revenue Value


Recurring Revenue at 12/31/2020 - Annulaized  $37
Multiplier 6

Value of Recurring Revenue - $Millions


Value of Intellectual Property - $Millions





This table shows how the projected value of the company at the end of 2020 was calculated:

The 2020 gross margin created by one-time sales (hardware, supplies and services) is $19 million

The ratio of one-time gross margin to overall gross margin was calculated to be 40%

So the EBITDA attributable proportionally to One Time Revenue was calculated to be $15 Million

A multiplier of 8 is thought appropriate, taking into account that the engine that produces One-Time Revenue also produces between 20 and 40 cents of recurring revenue every year thereafter.

This yields a value of $117 million for the one time revenue engine.

The annualized recurring revenue being generated in December 2020 is $37 Million

A multiplier of 6 is in the middle of the conventional range for a quality recurring revenue stream

This values the recurring revenue component at $221 Million

The intellectual property is more subjective.  G4S paid $25 Million in 2008 for what we believe was far less valuable than will be the IP for BluSKY and the Person Reader.  So it was valued at $35 Million.

This all adds up to a total valuation for BluBØX of $373 million at the end of 2020.


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