The updated sections are highlighted.

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Since November 2007, ACT has received purchase orders from several coal mine operators.
- $1.8M PO from Magnum (now Patriot) (5 underground mines)
- $1.4M PO from a major coal mining company (3 underground mines)
- $275K PO from a major coal mining company which owns several large underground coal mines in West Virginia (1 underground mine)
- An existing customer issued a new $125K PO to install a basic communications system in a newly opened mine in West Virginia. The estimated lifetime revenue of this mine plan for the ActiveMine system could total up to $625K. (May 1, 2008). The same customer orders a new MSHA-approved ActiveMine system for the same mine in March 2009. The same customer orders and installs more nodes for the same mine in May 2009
- 2 PO's from West Virginia’s Stacy Lynn Coal Co. (1 underground mine)
- 2 PO's from a Wyoming open pit coal mine. (1 surface mine)
- A PO from a major underground coal mine in Illinois. (1 underground mine)
- A PO (53 ActiveMine nodes ==> $530K-$795K from a leading underground coal mining company in Kentucky (2 underground mines)
- [Announced June 16, 2009] 2 PO's valued at $1.4M from a leading US underground coal mining company (2 underground mines == totalling 94 nodes initially)
- [Announced today] A $350K PO from a new Western-US underground coal mining customer (purchased through ACT's new leasing program - initial order of 24 nodes)
Also, on October 25, 2007 ACT Received 2 PO's from a worldwide mining machinery manufacturer.
- Demo ActiveMine system at an underground coal mine in China?


UPDATED ACTIVEMINE SCORECARD

Total # of PO's announced prior to the June 15, 2009 deadline for ERP's: 12 [for 14 underground coal mines (West Virginia, Illinois, Kentucky); 1 worldwide mining machinery manufacturer; 1 surface coal mine (Wyoming)]
Total # of PO's announced after the June 15, 2009 deadline for ERP's: 3 [for 3 underground coal mines]
Total # of installations prior to the June 15, 2009 deadline for ERP's: 5
Total # of unique customers: 9 mine operators; 1 worldwide mining machinery manufacturer
Total number of PO's received to date: 15
Total number of installs of ActiveMine: 5
Current backlog of ActiveMine installs: 13 (==> 4-13 months)
Installation rate (based on current capabilities in a steady state scenario): 1-2 installs per month [Note: may ramp up to 4 per month through outsourcing]
Note 1:
Current backlog ("secured/closed"): $4.35M-$4.75M
Future indicated deployments ("very good visibility / high probability of closure" ...from existing customer base): $2.6M-$3.0M
Factored pipeline ("written quotes" == opportunities): $35M+ (50% closure rate ==> $17.5M+)
Unfactored pipeline ("excluding written quotes" == prospects): $50M-$70M
Note 2: According to Research Capital, there are about 600 underground coal mines in the United States, all of which have limited communication capabilities with underground miners. Of the 600 mines, 83% of the United States' coal is produced by ~200 of the larger mines (ACT's target group), which are controlled by 43 different companies.
Note 3: Known customers: Patriot/Magnum Coal; Stacy Lynn Coal Co; CONSOL Energy (demo install)
Note 4: Speculated customers: Joy Global; Arch Coal Inc.; Peabody Energy Corp; Rio Tinto Energy America
Note 5: ACT's partner Fairmont Supply is a wholly-owned subsidiary of CONSOL Energy
Note 6: Patriot/Magnum Coal operates 30 underground/surface coal mines in the US.
Note 7: CONSOL Energy operates 17 underground coal mines in the US.
Note 8: Arch Coal Inc. operates 7 large underground coal mines and 4 large surface coal mines in the US.
Note 9: Peabody Energy Corp operates 30 underground/surface coal mines worldwide.
Note 10: Rio Tinto Energy America operates 4 large coal mines in the US.
Note 11: On February 24, 2009 Active Control conducted demonstrations in support of sales proposals under consideration by the two companies, which together own more than 25 coal mines in Appalachia, Illinois and Indiana.
Note 12: In September 2007, ACT was named explicitly on 28 mineplans submitted by 6 underground coal mine operators in West Virginia. Furthermore, it was named implicitly, by technology, on another 24 mineplans.
Note 13: In September 2007, ACT was named vendor of choice by mine operators for 26 underground coal mines outside of West Virginia.
Note 14: 20-25% of revenues are expected to be recurring (e.g., order of additional nodes due to mine expansion; mine monitoring services; add-ons; etc.)

GLOSSARY

Sales Pipeline

The sales pipeline consists of all prospects at all stages in the sales cycle, whether the salesperson is in the beginning phase of introducing your company, discussing your product or service, qualifying a prospect, conducting a Webinar or product demonstration, or formally presenting a pricing proposal. Though all future sales begin as leads from some source (cold calling, referrals, trade shows, etc.), no unqualified or uncontacted lead should be in the sales pipeline. All unclosed sales, however, belong in the sales pipeline.

Sales Funnel

The sales funnel describes the pattern, plan or actual achievement of conversion of prospects into sales, pre-enquiry and then through the sales cycle, so-called because it includes the conversion ratio at each stage of the sales cycle, which has a funneling effect, prospects are said to be fed into the top of the funnel, and converted sales drop out at the bottom, the extent of conversion success (i.e. the tightness of each ratio) reflects the quality of prospects fed into the top, and the sales skill at each conversion stage, the sales funnel is a very powerful sales planning and sales management tool.

Example of a sales funnel diagram: [Note 1: Sales Conversion == PO's || Note 2: Qualified Prospects == Unfactored pipeline.]