Protocall Technologies Inc (PCLI)

[Value_Investor]

REVENUE STREAMS

Our revenue is primarily derived from site licensing and order transaction fees that we charge to retailers for using our service. Site licensing fees are generally calculated based on the number of stores in which our service is used. Order transaction fees are charged for each product produced through our service by a retailer.

For some retailers, we also serve as an aggregator of content in which case our transaction fee includes a content fee for the actual movie or software product being produced. There are no minimum purchase requirements in our content agreements and there are no limitations on the price at which we can resell products to the retailer. The price that the retailer or we pay content owners is generally lower than standard wholesale pricing due to their savings on packaging, storage and transportation costs. Additionally, we provide advertising capabilities through trailer inserts onto DVDs at the time of production, in-box promotions and touch-screen advertisements.

As more fully explained in the section entitled "Factors That May Affect the Future Results of our Business," we are experiencing an extreme shortage of cash and do not currently have sufficient cash on hand to continue business operations unless additional financing is secured within the next month.