BreatheScreen Inc. Transaction Analysis and Financial Statements

Dr. John Anderson plans to license a technology that will be used to develop a device that would help physicians detect early-stage cancers. Patients would breathe directly into the device, which would analyze a user's breath for traces of key compounds associated with the most common cancers. In addition to eliminating the need for invasive biopsy procedures, the screening tool would also be inexpensive, easy to use, and provide immediate results. This case describes a hypothetical entrepreneur who must navigate and analyze a year of transactions including establishing a corporation, establishing a licensing agreement, purchasing machinery, and taking out a bank loan, in addition to preparing financial reports for the year.