RotoQuench Licensing Calculator

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BLUE QUENCH

RotoQuench™ Commercial Licensing | Interactive Financial Calculator

Licensee assumptions

Mature annual revenue ($ millions) Royalty (% of sales) Target licensee IRR (%) Target simple payback (years) License term (years) Gross margin before royalties (%) Incremental operating expenses (% of sales) Cash tax rate (%) Initial development and launch cost ($ millions) Years to reach mature sales Proposed upfront license payment ($ millions)

All financial figures are in USD. Sales grow linearly to maturity in the selected ramp year and remain flat thereafter.

Calculated licensing economics

Maximum upfront license fee at target IRR$15.85M

Maximum upfront license fee at target payback—

Upfront fee for B/E—

Actual licensee IRR at proposed fee25.9%

Annual royalty at maturity$1.80M

Total royalties over license term$31.50M

Total Blue Quench receipts (undiscounted)$41.50M

Licensee annual after-tax contribution at maturity$6.53M

Change any field to recalculate.

Annual projections

Year	Sales ($M)	Royalty ($M)	Cumulative royalties ($M)	After-tax contribution ($M)	Cumulative after-tax licensee contribution ($M)	Licensee net cash flow ($M)	Cumulative licensee net cash flow ($M)

Illustrative model, not a professional valuation. Assumes year-end operating cash flows, a simplified tax on positive operating contribution, no terminal value, and no additional capital expenditure or working-capital needs. Upfront fee and launch investment occur at signing. The model does not establish patent life or contractual royalty enforceability.