*** The salaries for Research and Development and equipment purchased for research and development qualify for a 40 per cent Canadian SR & ED tax credit. JBI will seek these credits through our Canadian office for the benefit of our shareholders. Of the above salaries, 1/2 of the Senior Executive Team and Research and Development staff qualify for the company to be reimbursed 40 per cent of the salary.
Total estimated gross profits are based on 18,000 tapes/month beginning April 2009. The company’s first year profits are impacted by “one time” costs such as the cost to take the company public and the costs of scaling up including drives, tape conditioners, ovens, and infrastructure.
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