Arius Monthly Meeting November 3rd, 2009

Corporate Financial Status Business account balance:$ Debt:$ Tax obligation:$ Corporate balance:$ Monthly burn rate:~$7300 Shortfall without additional revenue –January 2009

Financials Continued 2009 revenue:$ expenses:$ Profit:$ Owner distribution:$ expense breakdown: –Salary and payroll taxes71.6%$67077 –Materials14.5%$13606 –Tax penalties5.6%$5246 –Health Insurance5.6%$5246 –Other2.6%$2470

Status of Planned Activities for October Research improving website –“In house” or “out source” –Development application HTML CMS (Joomla, Drupal) Site provider application Commercial web development sw (Dreamweaver, Front Page, etc.) –Characteristics of a good website Simple, but informative Contemporary and dynamic Prominent with search engines Implement salary reduction contributions to HSA –Not currently planned, because no apparent advantage Contributions are easy to make and fully deductible Routine business tasks

Other Activities for October Researched COBRA and alternatives –Consolidated Omnibus Budget Reconciliation Act (COBRA) Provides former employees the right to temporary health insurance at group rates For a health plan to qualify an employer must have at least 20 employees –Mini-COBRA State plans intended for employers with less than 20 employees Maryland –Up to 18 months continuation coverage –Coverage can be terminated, if employer no longer offers group health plan Virginia –Up to 90 days –Must be paid in advance by employee –Future legislation?

Planned Activities for November Research improving website –Create a sample website using Joomla for evaluation Routine business tasks

Issues Need business phone expenses for 2009 Need June 2009 Capital One bill Annual meeting Misc. withdrawal of $6.06 on 11/2/2009

Arius Monthly Meeting CEO’s Report Nov 3 rd, 2009

Business Issues Plexus Order for 176 IRIG-B modules –Invoices sent on 8/26/09 09N A for $33, N A for $4, –Invoice 006 and 007 paid –Final delivery of 16 units made 10/23/09, –Invoices sent 10/23/09, need to follow up for timely payment 09N A for $4, N A for $715.20

Business Issues (cont’d) Plexus weekly usage/order forecasts of IRIG-B module –Next “demand” of 96 against stock of 336 –Average demand shown of 208 units/quarter –Total “demand” up to Nov 15, –816 units represents $216k revenue, $135k profit (excluding fixed costs, salary, etc)

Business Issues (cont’d) Work on Juniper TDC development proceeding –Initial code delivery still pending –Customer has not contacted us to begin testing

Business Issues (cont’d) Contact with potential customer at vendor seminar –Bob Karl, Engineering Technology –Sent second to remind of our meeting –Responded with saying they are waiting for low power Bluetooth technology –We may want to look into low power Bluetooth as a specialty business area