Annual Gross Margin Calculations 9.2M dairy cows & 95M beef cows in US alone Low startup risk - SG&A, R&D nearly paid for Introductory gross margin on 500 units = $194 / 63.6% Margin improves with Device Economics Sales Price Manufacture Cost Unit Margin Annual Uses Revenue per use Annualized Cost Annualized Revenue Per Unit Annualized Gross Margin Reusable- Annual Controller & Stimulator $350.00 $92.00 $258.00 17 $20.59 $92.00 $350.00 74% Charger $60.00 $20.00 $40.00 365 $0.16 $20.00 $60.00 67% Subtotal $410.00 $112.00 $298.00 382 $20.75 $112.00 $410.00 73% Single Use Sleeve $9.00 $4.75 $4.25 1 $9.00 $80.75 $153.00 47% Strap $1.00 $1.00 $0.00 1 $1.00 $17.00 $17.00 0% Agricultural Adhesive $5.00 $5.00 $0.00 1 $5.00 $85.00 $85.00 0% Subtotal $15.00 $10.75 $4.25 3 $15.00 $182.75 $255.00 28% Blended Totals $425.00 $122.75 $302.25 385 $35.75 $294.75 $665.00 56%