Financial categories - Minimum Financial Requirements

Criteria Maximum Revenue Net Tangible Assets Information Required
SC1 Up to $200,000 $12,000 SC1 Declaration
SC2 Up to $600,000 $36,000 SC2 Declaration
  min (a)          max (b) min (c)          max (d)  
Category 1 $600,001 - $3,000,000 $36,001 - $156,000 MFR Report and
Financial Statements
Category 2 $3,000,001 - $12,000,000 $156,001 - $480,000 MFR Report and
Financial Statements
Category 3 $12,000,001 - $30,000,000 $480,001 - $1,200,000 MFR Report and
Financial Statements
Category 4 $30,000,001 - $60,000,000 $1,200,001 - $2,400,000 MFR Report and
Financial Statements
Category 5 $60,000,001 - $120,000,000 $2,400,001 - $4,800,000 MFR Report and
Financial Statements
Category 6 $120,000,001 - $240,000,000 $4,800,001 - 14,400,000 MFR Report and
Financial Statements
Category 7 >$240M NTA x 16.67 >$14.4M MFR Report and
Financial Statements

The formula for deriving level of Maximum Revenue between minimum and maximum NTA values expressed within categories 1 to 6 is:

Maximum Revenue - {[(Licensee's NTA - c) / (d - c)] x (b - a)} + a.

The calculation is not applied to SC1 and SC2 in determining Maximum Revenue.