Financial Projections

Model
For Business Plans

Frank Moyes and Stephen

Lawrence

Deming Center for Entrepreneurship

Leeds College of Business
University of Colorado
Boulder, Colorado

Copyright © 2003 by the Regents of the University of

Colorado
 Instructions
Financial Projections Model
v6.8.3

This financial model is designed to enable entrepreneurs and students project

the financial results of their ventures for a five-year period. As with all models
there are certain simplifying assumptions that have been made. Each of the
assumption spreadsheets has an accompanying Comments box (denoted by a
cell with small red triangle in the upper right corner) that provides
suggestions on how to complete the spreadsheet and the underlying
assumptions to the model.

You will notice that the cells in the spreadsheet are color-coded. This has
been done to assist you in entering data, creating or changing formulae, or
deleting data, formulae and links.

Enter data and information in Green shaded cells only.

Blue shaded cells calculate results within a spreadsheet.
Data in Yellow shaded cells is transferred to other worksheets.
Purple shaded cells bring in data from other spreadsheets.

In the Green and Blue shaded cells, data and formulas may changed, moved
or deleted. The current calculations are for illustration only -- you will need to
tailor these spreadsheets to fit your plan.

In the Yellow shaded cells data and formulas may be changed, but not deleted.

DO NOT delete the Purple shaded cells -- they link one spreadsheet with
others.

There are 7 principal spreadsheet outputs of this model:

INCOME: Income Statement
BALANCE: Balance Sheet
CASHFLOW: Cash Flow Statement
BREAKEVEN: Break-even analysis
SUMMARY: Analysis of key measures
INCOME-MOS: Income Statements by months for Years 1 to 5
CASHFLOW-MOS: Cash flow Statements by months for Years 1 and 2, and
by quarters for Years 3 to 5
VAL-1 & VAL-2: Venture capital method for valuing companies

All other spreadsheets are to be used for calculating the underlying

assumptions of the 7 principal spreadsheets:

COMPS: Comparison of financial measures to peer companies

REVENUE: Revenue Projections
COST OF REV: Cost of Goods Sold
OPER EXPEN: Operating Expenses
PROP & EQUIP: Capital Expenditures, Depreciation, and Net Fixed Assets
SALARIES: Salary Personnel
EXTRA: Extraordinary Income and Expense
TAXES: Tax calculation
WORKCAP: Working Capital
FUNDING: Equity, Debt, Interest Expense, Interest Income, Dividends and
Retained Earnings

These assumption spreadsheets are linked to each other and to the 7 principal
spreadsheets. When you make a change in one of the spreadsheets, the
impact is automatically recalculated for all other spreadsheets.

When doing financial projections, it is easy to get lost in the trees and lose the
sense of what is reality. Most errors can be identified if you continuously ask
yourself “Does this result make sense?” The COMPS spreadsheet, where you
look at peer companies, can be particularly helpful as a reality test.

There is an example in the model with which you can experiment. When you
are ready to start your own projections, clear all the numbers in the green
shaded cells, and then you can begin to enter new numbers. Enter the name
of your company in the first cell of the COMPS spreadsheet. Before you begin,
make a copy of the model on a separate disk.

This original version of the model has been used since the mid-1980’s. It has
undergone numerous revisions over that period. Since 1998, students in the
Business Plan Preparation course at the University of Colorado have used it
to prepare their business plans. We have appreciated their suggestions for
improvements and would encourage all users to send us comments and
suggestions.

Created by Frank Moyes and Stephen Lawrence

Deming Center for Entrepreneurship
Leeds School of Business
University of Colorado
Boulder, Colorado

Copyright © 2001 by the Regents of the University of Colorado

 02/08/2023
08:58:22

XYZ Company Notes

Peer Company Comparisons

Select Best
Company A Company B Company C Comparison Projections
Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Accounts Receivable % of Rev 10.0% 10.0% 8.3% 8.3% 8.3% 8.3% 8.3%
Inventory % of Rev 15.0% 15.0% 8.3% 8.3% 6.7% 6.7% 6.7%
Accounts Payable % of Rev 8.0% 8.0% 8.7% 8.7% 8.7% 8.7% 8.7%
Working Capital % of Rev 16.0% 16.0% 7.9% 7.9% 6.3% 6.3% 6.3%
Net Fixed Assets % of Rev 9.0% 9.0% 39.4% 100.8% 151.8% 395.7% 68.0%
Current Ratio 2.3 2.3 #NAME? #NAME? #NAME? #NAME? #NAME?
Debt to Capital (LT Debt + Equity) 1.2 1.2 0.00 (2.93) (0.10) (0.03) (0.01)

Profitability
Gross Profit % of Rev 30.0% 30.0% -0.3% -157.7% -338.9% -1425.4% -237.0%
Sales & Marketing % of Rev 30.0% 30.8% 81.0% 133.2% 385.7% 97.5%
Research & Development % of Re 30.0% 22.8% 45.6% 71.3% 254.3% 49.3%
General & Administration % of Re 30.0% 27.3% 62.0% 101.2% 291.0% 61.6%
Operating Expenses % of Rev 40.0% 17.0% 80.9% 188.7% 305.7% 931.0% 208.4%
Earnings from Operations % of Re 12.0% 12.0% -81.2% -346.4% -644.6% -2356.4% -445.4%
EBIT % of Rev 12.0% 12.0% -88.7% -346.4% -644.6% -2356.4% -445.4%
Depreciation % of Rev 3.0% 3.0% 7.2% 22.0% 40.7% 124.5% 24.3%
EBITDA % of Rev 14.0% 14.0% -81.5% -324.4% -603.9% -2231.9% -421.1%
Net Earnings % of Rev 5.0% 5.0% -88.7% -356.4% -652.6% -2371.4% -446.0%

Returns
Return on Assets 12.0% 12.0% #NAME? #NAME? #NAME? #NAME? #NAME?
Return on Equity 15.0% 15.0% -55.0% 318.9% 85.4% 60.8% 44.4%
Return on Capital (LT Debt + Equit 15.0% 15.0% -55.0% 1254.9% 93.5% 62.4% 44.8%

Growth
Revenue Growth Rate - CAGR: 15.0% 15.0% 0.0% 0.0% -50.0% 600.0%
Net Earnings Growth Rate - CAGR 12.0% 12.0% 301.7% 83.1% 81.7% 31.7%
 02/08/2023
MEH REALTY LTD 08:58:22

Revenue Projections
BLOCK A -D

BLOCK 1 BLOCK 2 BLOCK 3 BLOCK 4 ALL BLOCKS

MEH EMPIRE ESTATE
N'000 N'000 N'000 N'000 N'000
Number of Units 4 4 4 2 14
Price per unit 150,000 150,000 150,000 150,000 600,000
Net Revenue 600,000 600,000 600,000 300,000 2,100,000

EXPENSES
Block 1 Block 2 Block 3 Block 4 ALL BLOCKS
Land acquisition 150,000 150,000 150,000 150,000 600,000
Hard Costs
Cost of construction 69,167 69,167 69,167 69,167
Number of units (24) 6 6 6 6 24
415,002 415,002 415,002 415,002 1,660,008
Less:
Cost of 3 unfinished unit @ 30% of total
construction cost 20,750 20,750 20,750 62,250
Total Hard Costs 394,252 394,252 394,252 415,002 1,597,758
Gross Profit 205,748 205,748 205,748 (115,002) 502,242
Soft Costs
Government approvals/permits/others 0 0 0 0 5,000
Marketing/Advert 0 0 0 0 2,000
Administration 0 0 0 0 28,000
Rent 0 0 0 0 8,000
Travel Expenses 0 0 0 0 8,000
Miscellaneous 0 0 0 0 25,000.00
0 0 0 0 76,000
PBT 205,748 205,748 205,748 (115,002) 426,242

VAT on inputs @7.5% 124,501

Vat on Outputs @ 7.5% 157,500
Payable VAT 32,999

Legal Fee @ 5% 105000

 02/08/2023
XYZ Company 08:58:22
Cost of Revenues
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 600,000 600,000 600,000 300,000 2,100,000

Cost of Revenue

Product A
Material Costs per Unit 15.00 14.00 11.00 10.00 9.00
Subcontact Costs per Unit 10.00 10.00 7.00 6.50 6.00
Total Direct Costs per Unit 25.00 24.00 18.00 16.50 15.00
Unit Sales 4 4 4 2 14
Total Direct Costs 100 96 72 33 210
Labor Costs 69,000 227,700 552,000 864,000 1,200,000
Total Direct Costs 69,100 227,796 552,072 864,033 1,200,210

Service B
Service Personnel Costs 120,750 212,750 480,000 1,500,000 2,750,000

Other Expenses
Salary Expenses 276,000 690,000 990,000 1,410,000 2,000,000
Depreciation 36,714 91,714 137,429 190,286 243,143
Facility costs (rent, energy) 50,000 200,000 300,000 300,000 450,000
System Costs 25,000 100,000 150,000 300,000 350,000

All other costs % of Revenue 4% 24,000 24,000 24,000 12,000 84,000

Total Cost of Revenues 601,564 1,546,260 2,633,501 4,576,319 7,077,353
% of Revenue 100.3% 257.7% 438.9% 1525.4% 337.0%

Allocation of Cost of Revenue between:

Variable 213,850 464,546 1,056,072 2,376,033 4,034,210
Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143
Total 601,564 1,546,260 2,633,501 4,576,319 7,077,353

Cost of Revenues by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 69,347 178,250 303,586 1,055,101 0
Month 2 #NAME? #NAME? #NAME? #NAME? #NAME?
Month 3 6 15 26 92 81
Total 1st Quarter 416,084 1,069,502 1,821,513 6,330,605 5,594,506
Month 4 0 0 0 0 0
Month 5 20,804 53,475 91,076 0 209,794
Month 6 395,280 1,016,027 1,730,438 6,330,605 5,384,712
Total 2nd Quarter 0 0 0 0 0
Month 7 0 0 0 0 16,851
Month 8 0 0 0 0 6,740
Month 9 0 0 0 0 94,365
Total 3rd Quarter 0 0 0 0 26,961
Month 10 0 0 0 0 26,961
Month 11 0 0 0 0 84,254
Month 12 #NAME? #NAME? #NAME? #NAME? #NAME?
Total 4th Quarter 0 0 0 0 256,133
Total for year 206,285 530,234 903,063 (1,754,286) 1,436,508
 02/08/2023
XYZ Company 08:58:22
Operating Expenses
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

Net Revenues 600,000 600,000 600,000 300,000 2,100,000

Sales & Marketing

Drivers
Salaries and Benefits 69,000 270,250 432,900 624,000 816,000
Commissions % of Revenue 5% 30,000 30,000 30,000 15,000 105,000
Direct Mail Campaign 50,000 150,000 300,000 500,000 1,000,000

All other expenses % of Revenue 6% 36,000 36,000 36,000 18,000 126,000

Total Sales and Marketing 185,000 486,250 798,900 1,157,000 2,047,000
% of Revenue 30.8% 81.0% 133.2% 385.7% 97.5%

Research & Development

Drivers
Salaries and Benefits 69,000 195,500 310,050 504,000 672,000
Testing 50,000 60,000 100,000 250,000 300,000

All other expenses % of Revenue 3% 18,000 18,000 18,000 9,000 63,000

Total Reaserch & Development 137,000 273,500 428,050 763,000 1,035,000
% of Revenue 22.8% 45.6% 71.3% 254.3% 49.3%

General & Administration

Drivers
Salaries and Benefits 125,000 300,150 388,440 573,600 784,800
Depreciation 6,667 40,000 106,667 183,333 266,667
Rent and Utilities 20,000 20,000 100,000 110,000 200,000

All other expenses % of Revenue 2% 12,000 12,000 12,000 6,000 42,000

Total General & Administration 163,667 372,150 607,107 872,933 1,293,467

% of Revenue 27.3% 62.0% 101.2% 291.0% 61.6%

Total Operating Expenses 485,667 1,131,900 1,834,057 2,792,933 4,375,467

% of Revenue 80.9% 188.7% 305.7% 931.0% 208.4%

Allocation of Operating Expenses between:

Vaiable 96,000 96,000 96,000 48,000 336,000
Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467
Total 485,667 1,131,900 1,834,057 2,792,933 4,375,467
 Sales & Marketing by Months & Quarters 02/08/2023
08:58:22
($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 21,326 56,054 211,427 643,929 0
Month 2 #NAME? #NAME? #NAME? #NAME? #NAME?
Month 3 2 5 18 56 50
Total 1st Quarter 127,959 336,325 552,575 1,600,524 1,618,113
Month 4 0 0 0 0 0
Month 5 6,398 16,816 63,428 0 129,702
Month 6 121,561 319,508 1,205,134 3,863,576 3,329,017
Total 2nd Quarter 0 0 0 0 0
Month 7 0 0 0 0 10,418
Month 8 0 0 0 0 4,167
Month 9 0 0 0 0 58,340
Total 3rd Quarter 0 0 0 0 7,798
Month 10 0 0 0 0 16,668
Month 11 0 0 0 0 52,089
Month 12 #NAME? #NAME? #NAME? #NAME? #NAME?
Total 4th Quarter 0 0 0 0 74,082
Total for year 63,439 166,742 273,954 (443,524) 415,485

Research & Development by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 15,793 31,529 0 0 0
Month 2 #NAME? #NAME? 0 0 218,773
Month 3 1 3 0 0 109,387
Total 1st Quarter 94,759 189,172 296,069 1,055,488 818,147
Month 4 0 0 628,923 (1,070,643) 1,066,242
Month 5 4,738 9,459 0 0 0
Month 6 90,021 179,713 0 0 0
Total 2nd Quarter 0 0 0 0 0
Month 7 0 0 0 0 0
Month 8 0 0 0 0 0
Month 9 0 0 0 0 0
Total 3rd Quarter 0 0 0 0 3,943
Month 10 0 0 0 0 0
Month 11 0 0 0 0 0
Month 12 #NAME? #NAME? 0 0 0
Total 4th Quarter 0 0 0 0 37,457
Total for year 46,979 93,787 146,784 (292,488) 210,077

General & Administrative by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 18,867 42,901 0 0 0
Month 2 #NAME? #NAME? 0 0 0
Month 3 2 4 0 0 0
Total 1st Quarter 113,203 257,405 419,917 1,207,564 1,022,460
Month 4 0 0 0 0 0
Month 5 5,660 12,870 0 0 0
Month 6 107,543 244,535 0 0 02/08/2023
0
Total 2nd Quarter 0 0 0 0 08:58:22
0
Month 7 0 0 0 0 0
Month 8 0 0 0 0 0
Month 9 0 0 0 0 0
Total 3rd Quarter 0 0 0 0 4,927
Month 10 0 0 0 0 0
Month 11 0 0 0 0 0
Month 12 #NAME? #NAME? 0 0 0
Total 4th Quarter 0 0 0 0 46,811
Total for year 56,124 127,615 208,185 (334,630) 262,538
 02/08/2023
XYZ Company 08:58:22
Personnel
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

Net Revenues 600,000 600,000 600,000 300,000 2,100,000

Sales & Marketing

Sales Manager 60,000 80,000 100,000 125,000 150,000
Marketing Manager 80,000 100,000 125,000 150,000
Customer service 40,000 120,000 200,000 250,000
Tech support 35,000 50,000 70,000 130,000
(other…)
(other…)
(other…)
Total Salary 60,000 235,000 370,000 520,000 680,000
Benefits
Percent (%) 15% 15% 17% 20% 20%
Total benefit costs 9,000 35,250 62,900 104,000 136,000
Total S & M Compensation 69,000 270,250 432,900 624,000 816,000
% of Revenue 11.5% 45.0% 72.2% 208.0% 38.9%

Research and Development

R & D Manager 80,000 100,000 125,000 150,000
Engineers 60,000 60,000 130,000 230,000 300,000
Technicians 30,000 35,000 65,000 110,000
Subcontract
(other…)
(other…)
Total Salary 60,000 170,000 265,000 420,000 560,000
Benefits
Percent (%) 15% 15% 17% 20% 20%
Total benefit costs 9,000 25,500 45,050 84,000 112,000
Total R & D Compensation 69,000 195,500 310,050 504,000 672,000
% of Revenue 11.5% 32.6% 51.7% 168.0% 32.0%

General & Administration

Chief Executive Officer 60,000 80,000 100,000 125,000 150,000
Chief Financial Officer 50,000 60,000 75,000 100,000
Accounting 40,000 45,000 25,000 50,000 75,000
Secretarial 25,000 26,000 27,000 28,000 29,000
Clerks and admin personnel 60,000 120,000 200,000 300,000
(other…)
(other…)
Total Salary 125,000 261,000 332,000 478,000 654,000
Benefits
Percent (%) 15% 15% 17% 20% 20%
Total benefit costs 0 39,150 56,440 95,600 130,800
Total G & A Compensation 125,000 300,150 388,440 573,600 784,800
% of Revenue 20.8% 50.0% 64.7% 191.2% 37.4%
Cost of Revenue 02/08/2023
Manufacturing Personnel 08:58:22
Operations Manager 100,000 125,000 150,000 175,000 200,000
Quality Assurance 50,000 100,000 150,000 300,000 350,000
Materials and Logistics 40,000 150,000 200,000 300,000 450,000
Engineering 75,000 125,000 150,000 300,000
Other personnel 50,000 150,000 200,000 250,000 300,000
(other...)
Total Salary 240,000 600,000 825,000 1,175,000 1,600,000
Benefits
Percent (%) 15% 15% 20% 20% 25%
Total benefit costs 36,000 90,000 165,000 235,000 400,000
Total Salary Costs 276,000 690,000 990,000 1,410,000 2,000,000
Hourly Personnel
Number of employees 3 9 20 30 40
Average wages per employee 20,000 22,000 23,000 24,000 24,000
Total wages 60,000 198,000 460,000 720,000 960,000
Benefits
Percent (%) 15% 15% 20% 20% 25%
Total benefit costs 9,000 29,700 92,000 144,000 240,000
Total Wage Costs 69,000 227,700 552,000 864,000 1,200,000
Service Personnel
Number of employees 3 5 10 25 40
Salary per employee 35,000 37,000 40,000 50,000 55,000
Total salaries 105,000 185,000 400,000 1,250,000 2,200,000
Benefits
Percent (%) 15% 15% 20% 20% 25%
Total benefit costs 15,750 27,750 80,000 250,000 550,000
Total Salary Costs 120,750 212,750 480,000 1,500,000 2,750,000

Total COR's Compensation 465,750 1,130,450 2,022,000 3,774,000 5,950,000

% of Revenue 77.6% 188.4% 337.0% 1258.0% 283.3%

Total Salary & Wages 545,000 1,464,000 2,252,000 3,313,000 4,454,000

Total Benefits 63,000 219,600 421,390 662,600 1,018,800
Total Compensation 728,750 1,896,350 3,153,390 5,475,600 8,222,800
% of Revenue 121.5% 316.1% 525.6% 1825.2% 391.6%
 02/08/2023
XYZ Company 08:58:22
Extraordinary Income & Expense
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

Income
(Item…) 0
(Item…)
(Item…)
Total 0 0 0 0 0
Start-up expenses
Legal 25,000
Relocation 20,000
(Item…)
Total 45,000 0 0 0 0
Total Extraordinary Income/(Expense) (45,000) 0 0 0 0

Extraordinary Income and Expense by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 (25,000)
Month 2 (20,000)
Month 3
Total 1st Quarter (45,000) 0 0 0 0
Month 4
Month 5
Month 6
Total 2nd Quarter 0 0 0 0 0
Month 7
Month 8
Month 9
Total 3rd Quarter 0 0 0 0 0
Month 10
Month 11
Month 12
Total 4th Quarter 0 0 0 0 0
Total for year (45,000) 0 0 0 0
 02/08/2023
XYZ Company 08:58:22
Taxes
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

Net Revenues 600,000 600,000 600,000 300,000 2,100,000

Income Tax (Rate Federal & State) 0.40 0.40 0.40 0.40 0.40

Net Earnings Before Taxes (532,231) ### ### (7,114,252) (9,366,820)

Cumulative (532,231) ### ### (13,700,201) (23,067,020)

Taxes 0 0 0 0 0
Percent of Revenues 0.0% 0.0% 0.0% 0.0% 0.0%
 02/08/2023
XYZ Company 08:58:22
Property and Equipment
Years 1 to 5
($)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Purchased
Net Revenues Assets 600,000 600,000 600,000 300,000 2,100,000

Capital Expenditures
Computers, Software & Office Equipment 20,000 100,000 200,000 250,000 350,000
Plant & Equipment 250,000 350,000 250,000 300,000 300,000
Other 10,000 50,000 100,000 100,000 100,000
Total Capital Expenditures 0 280,000 500,000 550,000 650,000 750,000
% of Revenue 46.7% 83.3% 91.7% 216.7% 35.7%

Depreciation Computers, Sofware & Office Equipment (allocated to General & Administrative Expenses)
Depreciation Rate: Years 1 3 3 3 3 3
Year 0 0 0 0 0 0
Year 1 6,667 6,667 6,667 0 0
Year 2 33,333 33,333 33,333 0
Year 3 66,667 66,667 66,667
Year 4 83,333 83,333
Year 5 116,667
Total Depreciation 6,667 40,000 106,667 183,333 266,667

Depreciation on Plant and Equipment (allocated to Cost of Revenue)

Depreciation Rate: Years 1 7 7 7 7 7
Year 0 0 0 0 0 0
Year 1 35,714 35,714 35,714 35,714 35,714
Year 2 50,000 50,000 50,000 50,000
Year 3 35,714 35,714 35,714
Year 4 42,857 42,857
Year 5 42,857
Total Depreciation 35,714 85,714 121,429 164,286 207,143

Depreciation Other (allocated to Cost of Revenue)

Depreciation Rate: Years 1 10 10 10 10 10
Year 0 0 0 0 0 0
Year 1 1,000 1,000 1,000 1,000 1,000
Year 2 5,000 5,000 5,000 5,000
Year 3 10,000 10,000 10,000
Year 4 10,000 10,000
Year 5 10,000
Total Depreciation 1,000 6,000 16,000 26,000 36,000

Total Depreciation 43,381 131,714 244,095 373,619 509,810

% of Revenue 7.2% 22.0% 40.7% 124.5% 24.3%

Property & Equipment

Gross Asset Value 0 280,000 780,000 1,330,000 1,980,000 2,730,000
Accumulated Depreciation 43,381 175,095 419,190 792,810 1,302,619
Net Property and Equipment 0 236,619 604,905 910,810 1,187,190 1,427,381
% of Revenue 39.4% 100.8% 151.8% 395.7% 68.0%

Capital Expenditures by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 50,000 100,000
Month 2 100,000 100,000
Month 3 50,000
Total 1st Quarter 200,000 200,000 100,000 200,000 200,000
Month 4 40,000
Month 5
Month 6 100,000
Total 2nd Quarter 40,000 100,000 200,000 200,000 200,000
Month 7 40,000
Month 8
Month 9 100,000
Total 3rd Quarter 40,000 100,000 100,000 100,000 200,000
Month 10
Month 11
Month 12 100,000
Total 4th Quarter 0 100,000 150,000 150,000 150,000
Total for year 280,000 500,000 550,000 650,000 750,000
 02/08/2023
XYZ Company 08:58:22
Working Capital
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues 600,000 600,000 600,000 300,000 2,100,000

Accounts Receivable
% of Revenue 8.3% 8.3% 8.3% 8.3% 8.3%
Days Outstanding 30 30 30 30 30
Accounts Receivable #NAME? #NAME? 0 0 25,232
(Increase)/Decrease from Prev. Period #NAME? #NAME? #NAME? 0 (25,232)

Inventory
% of Revenue 8.3% 8.3% 6.7% 6.7% 6.7%
Inventory Turns 12 12 15 15 15
Inventory Days 30 30 24 24 24
Inventory #NAME? #NAME? 0 0 20,368
(Increase)/Decrease from Prev. Period #NAME? #NAME? #NAME? 0 (20,368)

Other Current Assets

% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%
Days 4 4 4 4 4
Other CA Value #NAME? #NAME? 0 0 3,040
(Increase)/Decrease from Prev. Period #NAME? #NAME? #NAME? 0 (3,040)

Accounts Payable & Accrued Expenses

% of Revenue 8.7% 8.7% 8.7% 8.7% 8.7%
Days 31 31 31 31 31
AP & Accrued Value #NAME? #NAME? 0 0 26,448
Increase/(Decrease) from Prev. Period #NAME? #NAME? #NAME? 0 26,448

Other Current Liabilites

% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%
Days 4 4 4 4 4
Other Current Liabilities #NAME? #NAME? 0 0 3,040
Increase/(Decrease) from Prev. Period #NAME? #NAME? #NAME? 0 3,040

Revenues by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 69,167 69,167 69,167 69,167 0
Month 2 #NAME? #NAME? #NAME? #NAME? #NAME?
Month 3 6 6 6 6 24
Total 1st Quarter 415,002 415,002 415,002 415,002 1,660,008
Month 4 0 0 0 0 0
Month 5 20,750 20,750 20,750 0 62,250
Month 6 394,252 394,252 394,252 415,002 1,597,758
Total 2nd Quarter 0 0 0 0 0
Month 7 0 0 0 0 5,000
Month 8 0 0 0 0 2,000
Month 9 0 0 0 0 28,000
Total 3rd Quarter 0 0 0 0 8,000
Month 10 0 0 0 0 02/08/2023
8,000
Month 11 0 0 0 0 08:58:22
25,000
Month 12 #NAME? #NAME? #NAME? #NAME? #NAME?
Total 4th Quarter 0 0 0 0 76,000
Total for year 205,748 205,748 205,748 (115,002) 426,242

Accounts Receivable by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 68,890 68,890
Month 2 #NAME? #NAME?
Month 3 6 6 137,781 137,781 551,123
Month 4 - -
Month 5 20,667 20,667
Month 6 392,675 392,675 - - -
Month 7 - -
Month 8 - -
Month 9 - - - - 2,656
Month 10 - -
Month 11 - -
Month 12 #NAME? #NAME? - - 25,232

Inventory by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 68,890 68,890
Month 2 #NAME? #NAME?
Month 3 6 6 111,221 111,221 444,882
Month 4 - -
Month 5 20,667 20,667
Month 6 392,675 392,675 - - -
Month 7 - -
Month 8 - -
Month 9 - - - - 2,144
Month 10 - -
Month 11 - -
Month 12 #NAME? #NAME? - - 20,368

Other Current Assets by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 68,890 8,300
Month 2 #NAME? #NAME?
Month 3 6 1 16,600 16,600 66,400
Month 4 - -
Month 5 2,490 2,490
Month 6 47,310 47,310 - - -
Month 7 - -
Month 8 - -
Month 9 - - - - 320
Month 10 - -
Month 11 - -
Month 12 #NAME? #NAME? - - 3,040
Accounts Payble & Accrued Expenses by Months & Quarters 02/08/2023
08:58:22
($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 - #NAME?
Month 2 0 0
Month 3 31 31 144,421 144,421 577,683
Month 4 0 0
Month 5 20,750 20,750
Month 6 395,165 395,165 - - -
Month 7 17,347 17,347
Month 8 - -
Month 9 - - - - 2,784
Month 10 - -
Month 11 - -
Month 12 #NAME? #NAME? - - 26,448

Other Current Liabilities by Months & Quarters

($)
Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 8,300 8,300
Month 2 #NAME? #NAME?
Month 3 1 1 16,600 16,600 66,400
Month 4 - -
Month 5 2,490 2,490
Month 6 47,310 47,310 - - -
Month 7 - -
Month 8 - -
Month 9 - - - - 320
Month 10 - -
Month 11 - -
Month 12 #NAME? #NAME? - - 3,040
 02/08/2023
XYZ Company 08:58:22
Funding Projections
Years 1 to 5
($)
Begin Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Cash 1,500,000
Equity
Common 500,000 500,000 500,000 500,000 500,000 500,000
Increase / (Decrease) Previous Period 0 0 0 0 0
Preferred
A Round 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
B Round 500,000 500,000 500,000 500,000
Total Preferred 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000
Increase / (Decrease) Previous Period 0 500,000 0 0 0
Total Equity 1,500,000 1,500,000 2,000,000 2,000,000 2,000,000 2,000,000

Debt
Short Term Debt 100,000
Increase / (Decrease) Previous Period 0 0 0 100,000 (100,000)

Long Term Debt

Current Portion 100,000 100,000 100,000 100,000
Long Term Portion 400,000 300,000 200,000 100,000
Total Long Term Debt 0 500,000 400,000 300,000 200,000

Increase / (Decrease) Previous Period

Current Portion 0 100,000 0 0 0
Long Term Protion 0 400,000 (100,000) (100,000) (100,000)
Total Long Term Debt 0 500,000 (100,000) (100,000) (100,000)

Total Equity & Debt 1,500,000 1,500,000 2,500,000 2,400,000 2,400,000 2,200,000

Interest
Interest Rate
Short Term Debt 9.0% 9.0% 9.0% 9.0% 9.0%
Long Term Debt 12.0% 12.0% 12.0% 12.0% 12.0%

Interest Expense
Short Term Debt 0 0 0 9,000 0
Long Term Debt 0 60,000 48,000 36,000 24,000
Total Interest 0 60,000 48,000 45,000 24,000

Interest Income
Interest Rate 4.0% 4.0% 4.0% 4.0% 4.0%
Interest Income 0 0 0 0 10,000

Retained Earnings
Net Income (532,231) (2,138,160) (3,915,557) (7,114,252) (9,366,820)
Dividends 50,000
Increase / (Decrease) Retained Earnings (532,231) (2,138,160) (3,915,557) (7,114,252) (9,416,820)
Beginning Retained Earnings 0 (532,231) (2,670,391) (6,585,949) ###
Ending Retained Earnings (532,231) (2,670,391) (6,585,949) ### ###
 02/08/2023
XYZ Company 08:58:22
Income Statement
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5

NET REVENUES 600,000 600,000 600,000 300,000 2,100,000

COST OF REVENUE 601,564 1,546,260 2,633,501 4,576,319 7,077,353

% of Revenues 100.3% 257.7% 438.9% 1525.4% 337.0%

GROSS PROFIT (1,564) (946,260) ### (4,276,319) (4,977,353)

% of Revenues -0.3% -157.7% -338.9% -1425.4% -237.0%

OPERATING EXPENSES
Sales & Marketing 185,000 486,250 798,900 1,157,000 2,047,000
Research & Development 137,000 273,500 428,050 763,000 1,035,000
General and Administration 163,667 372,150 607,107 872,933 1,293,467
Total Operating Expenses 485,667 1,131,900 1,834,057 2,792,933 4,375,467
% of Revenues 81% 189% 306% 931% 208%

EARNINGS FROM OPERATIONS (487,231) ### ### (7,069,252) (9,352,820)

EXTRAORDINARY INCOME / (EXPENSE) (45,000) 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES (532,231) ### ### (7,069,252) (9,352,820)

INTEREST INCOME / (EXPENSE) 0 (60,000) (48,000) (45,000) (14,000)

NET EARNINGS BEFORE TAXES (532,231) ### ### (7,114,252) (9,366,820)

TAXES 0 0 0 0 0

NET EARNINGS (532,231) ### ### (7,114,252) (9,366,820)

% of Revenues -88.7% -356.4% -652.6% -2371.4% -446.0%
 02/08/2023
XYZ Company 08:58:22
Balance Sheet
Years 1 to 5
($)
Begin Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
CURRENT ASSETS
Cash 1,500,000 #NAME? #NAME? #NAME? #NAME? #NAME?
Accounts Receivable #NAME? #NAME? 0 0 25,232
Inventories #NAME? #NAME? 0 0 20,368
Other Current Assets #NAME? #NAME? 0 0 3,040
Total Current Assets 1,500,000 #NAME? #NAME? #NAME? #NAME? #NAME?
PROPERTY & EQUIPMENT 0 236,619 604,905 910,810 1,187,190 1,427,381
TOTAL ASSETS 1,500,000 #NAME? #NAME? #NAME? #NAME? #NAME?

LIABILITIES & SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Short Term Debt 0 0 0 0 100,000 0
Accounts Payable & Accrued Expen #NAME? #NAME? 0 0 26,448
Other Current Liab #NAME? #NAME? 0 0 3,040
Current portion of long term debt 0 0 100,000 100,000 100,000 100,000
Total Current Liabilities 0 #NAME? #NAME? 100,000 200,000 129,488

LONG TERM DEBT (less current portion) 0 0 400,000 300,000 200,000 100,000

STOCKHOLDERS' EQUITY
CommonStock 500,000 500,000 500,000 500,000 500,000 500,000
Preferred Stock 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000
Retained Earnings (532,231) (2,670,391) (6,585,949) (13,700,201) (23,117,020)
Total Equity 1,500,000 967,769 (670,391) (4,585,949) (11,700,201) (21,117,020)
TOTAL LIABILITIES & EQUITY 1,500,000 #NAME? #NAME? (4,185,949) (11,300,201) (20,887,532)
 02/08/2023
XYZ Company 08:58:22
Cash Flow Statememt
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5
OPERATING ACTIVITIES
Net Earnings (532,231) ### ### (7,114,252) (9,366,820)
Depreciation 43,381 131,714 244,095 373,619 509,810
Working Capital Changes
(Increase)/Decrease Accounts Receivable #NAME? #NAME? #NAME? 0 (25,232)
(Increase)/Decrease Inventories #NAME? #NAME? #NAME? 0 (20,368)
(Increase)/Decrease Other Current Assets #NAME? #NAME? #NAME? 0 (3,040)
Increase/(Decrease) Accts Pay & Accrd Expenses #NAME? #NAME? #NAME? 0 26,448
Increase/(Decrease) Other Current Liab #NAME? #NAME? #NAME? 0 3,040
Net Cash Provided/(Used) by Operating Activities #NAME? #NAME? #NAME? (6,740,633) (8,876,162)

INVESTING ACTIVITIES
Property & Equipment (280,000) (500,000) (550,000) (650,000) (750,000)
Other
Net Cash Used in Investing Activities (280,000) (500,000) (550,000) (650,000) (750,000)

FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt 0 0 0 100,000 (100,000)
Increase/(Decrease) Curr. Portion LTD 0 100,000 0 0 0
Increase/(Decrease) Long Term Debt 0 400,000 (100,000) (100,000) (100,000)
Increase/(Decrease) Common Stock 0 0 0 0 0
Increase/(Decrease) Preferred Stock 0 500,000 0 0 0
Dividends Declared 0 0 0 0 (50,000)
Net Cash Provided / (Used) by Financing 0 1,000,000 (100,000) 0 (250,000)

INCREASE/(DECREASE) IN CASH #NAME? #NAME? #NAME? (7,390,633) (9,876,162)

CASH AT BEGINNING OF YEAR 1,500,000 #NAME? #NAME? #NAME? #NAME?

CASH AT END OF YEAR 1,500,000 #NAME? #NAME? #NAME? #NAME? #NAME?
 02/08/2023
08:58:22

XYZ Company
Break-Even Analysis
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 600,000 600,000 600,000 300,000 2,100,000

Cost of Revenue
Variable 213,850 464,546 1,056,072 2,376,033 4,034,210
Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143
Total 601,564 1,546,260 2,633,501 4,576,319 7,077,353

Operating Expenses
Variable 96,000 96,000 96,000 48,000 336,000
Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467
Total 485,667 1,131,900 1,834,057 2,792,933 4,375,467

Total Costs & Expenses

Variable 309,850 560,546 1,152,072 2,424,033 4,370,210
Fixed 777,381 2,117,614 3,315,485 4,945,219 7,082,610
Total 1,087,231 2,678,160 4,467,557 7,369,252 11,452,820

Variable Costs/Revenue Ratio 0.52 0.93 1.92 8.08 2.08

Break-Even Point Revenues 1,607,543 32,203,796 (3,603,318) (698,466) (6,551,588)

 02/08/2023
XYZ Company 08:58:22
Income Statement Year 1
Year 1 by Months Total Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 12 Months Projection

NET REVENUES 69,167 #NAME? 6 0 20,750 394,252 0 0 0 0 0 #NAME? #NAME? 600,000

COST OF REVENUE 69,347 #NAME? 6 0 20,804 395,280 0 0 0 0 0 #NAME? #NAME? 601,564

GROSS PROFIT (180) #NAME? (0) 0 (54) (1,028) 0 0 0 0 0 #NAME? #NAME? (1,564)

OPERATING EXPENSES
Sales & Marketing 21,326 #NAME? 2 0 6,398 121,561 0 0 0 0 0 #NAME? #NAME? 185,000
Research & Development 15,793 #NAME? 1 0 4,738 90,021 0 0 0 0 0 #NAME? #NAME? 137,000
General and Administration 18,867 #NAME? 2 0 5,660 107,543 0 0 0 0 0 #NAME? #NAME? 163,667
Total Operating Expenses 55,987 #NAME? 5 0 16,796 319,125 0 0 0 0 0 #NAME? #NAME? 485,667

EARNINGS FROM OPERATIONS (56,167) #NAME? (5) 0 (16,850) (320,153) 0 0 0 0 0 #NAME? #NAME? (487,231)

EXTRAORDINARY INCOME / (EXPENSE) (25,000) (20,000) 0 0 0 0 0 0 0 0 0 0 (45,000) (45,000)

EARNINGS BEFORE INTEREST & TAXES (81,167) #NAME? (5) 0 (16,850) (320,153) 0 0 0 0 0 #NAME? #NAME? (532,231)

INTEREST INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET EARNINGS BEFORE TAXES (81,167) #NAME? (5) 0 (16,850) (320,153) 0 0 0 0 0 #NAME? #NAME? (532,231)

TAXES 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET EARNINGS (81,167) #NAME? (5) 0 (16,850) (320,153) 0 0 0 0 0 #NAME? #NAME? (532,231)

XYZ Company
Income Statement Year 2
Year 2 by Months Total Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 12 Months Projection

NET REVENUES 69,167 #NAME? 6 0 20,750 394,252 0 0 0 0 0 #NAME? #NAME? 600,000

COST OF REVENUE 178,250 #NAME? 15 0 53,475 1,016,027 0 0 0 0 0 #NAME? #NAME? 1,546,260

GROSS PROFIT (109,083) #NAME? (9) 0 (32,725) (621,775) 0 0 0 0 0 #NAME? #NAME? (946,260)

OPERATING EXPENSES
Sales & Marketing 56,054 #NAME? 5 0 16,816 319,508 0 0 0 0 0 #NAME? #NAME? 486,250
Research & Development 31,529 #NAME? 3 0 9,459 179,713 0 0 0 0 0 #NAME? #NAME? 273,500
General and Administration 42,901 #NAME? 4 0 12,870 244,535 0 0 0 0 0 #NAME? #NAME? 372,150
Total Operating Expenses 130,484 #NAME? 11 0 39,145 743,756 0 0 0 0 0 #NAME? #NAME? 1,131,900

EARNINGS FROM OPERATIONS (239,567) #NAME? (21) 0 (71,870) (1,365,531) 0 0 0 0 0 #NAME? #NAME? (2,078,160)

EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES (239,567) #NAME? (21) 0 (71,870) (1,365,531) 0 0 0 0 0 #NAME? #NAME? (2,078,160)

INTEREST INCOME / (EXPENSE) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000) (60,000)

NET EARNINGS BEFORE TAXES (244,567) #NAME? (5,021) (5,000) (76,870) (1,370,531) (5,000) (5,000) (5,000) (5,000) (5,000) #NAME? #NAME? (2,138,160)

TAXES 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET EARNINGS (244,567) #NAME? (5,021) (5,000) (76,870) (1,370,531) (5,000) (5,000) (5,000) (5,000) (5,000) #NAME? #NAME? (2,138,160)
 02/08/2023
XYZ Company 08:58:22
Income Statement Year 3 Year 4 Year 5
Years 3, 4 & 5 by Quarters Annual Annual Annual
Year 3 Year 4 Year 5 Projection Projection Projection
1st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

NET REVENUES 415,002 0 0 0 415,002 415,002 0 0 0 415,002 1,660,008 0 8,000 76,000 1,744,008 600,000 300,000 2,100,000
0 0 0
COST OF REVENUE 1,821,513 0 0 0 1,821,513 6,330,605 0 0 0 6,330,605 5,594,506 0 26,961 256,133 5,877,600 2,633,501 4,576,319 7,077,353

GROSS PROFIT (1,406,511) 0 0 0 (1,406,511) (5,915,603) 0 0 0 (5,915,603) (3,934,498) 0 (18,961) (180,133) (4,133,592) (2,033,501) (4,276,319) (4,977,353)

OPERATING EXPENSES
Sales & Marketing 552,575 0 0 0 273,954 1,600,524 0 0 0 (443,524) 1,618,113 0 7,798 74,082 415,485 798,900 1,157,000 2,047,000
Research & Development 296,069 0 0 0 146,784 1,055,488 0 0 0 (292,488) 818,147 0 3,943 37,457 210,077 428,050 763,000 1,035,000
General and Administration 419,917 0 0 0 208,185 1,207,564 0 0 0 (334,630) 1,022,460 0 4,927 46,811 262,538 607,107 872,933 1,293,467
Total Operating Expenses 1,268,562 0 0 0 1,268,562 3,863,576 0 0 0 3,863,576 3,458,719 0 16,668 158,350 3,633,738 1,834,057 2,792,933 4,375,467

EARNINGS FROM OPERATIONS (2,675,073) 0 0 0 (2,675,073) (9,779,179) 0 0 0 (9,779,179) (7,393,217) 0 (35,630) (338,483) (7,767,330) (3,867,557) (7,069,252) (9,352,820)

EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES (2,675,073) 0 0 0 (2,675,073) (9,779,179) 0 0 0 (9,779,179) (7,393,217) 0 (35,630) (338,483) (7,767,330) (3,867,557) (7,069,252) (9,352,820)

INTEREST INCOME / (EXPENSE) (12,000) (12,000) (12,000) (12,000) (48,000) (11,250) (11,250) (11,250) (11,250) (45,000) (3,500) (3,500) (3,500) (3,500) (14,000) (48,000) (45,000) (14,000)

NET EARNINGS BEFORE TAXES (2,687,073) (12,000) (12,000) (12,000) (2,723,073) (9,790,429) (11,250) (11,250) (11,250) (9,824,179) (7,396,717) (3,500) (39,130) (341,983) (7,781,330) (3,915,557) (7,114,252) (9,366,820)

TAXES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET EARNINGS (2,687,073) (12,000) (12,000) (12,000) (2,723,073) (9,790,429) (11,250) (11,250) (11,250) (9,824,179) (7,396,717) (3,500) (39,130) (341,983) (7,781,330) (3,915,557) (7,114,252) (9,366,820)
 02/08/2023
XYZ Company 08:58:22
Cash Flow Statement Year 1
Year 1 by Months Estimated Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Projection
OPERATING ACTIVITIES
Net Earnings (81,167) #NAME? (5) 0 (16,850) (320,153) 0 0 0 0 0 #NAME? #NAME? (532,231)
Depreciation 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 43,381 43,381
Working Capital Changes
(Increase)/Decrease Accounts Receivable (68,890) #NAME? #NAME? 6 (20,667) (372,008) 392,675 0 0 0 0 #NAME? #NAME? #NAME?
(Increase)/Decrease Inventories (68,890) #NAME? #NAME? 6 (20,667) (372,008) 392,675 0 0 0 0 #NAME? #NAME? #NAME?
(Increase)/Decrease Other Current Assets (68,890) #NAME? #NAME? 6 (2,490) (44,820) 47,310 0 0 0 0 #NAME? #NAME? #NAME?
Increase/(Decrease) Accts Pay & Accrd Expense 0 0 31 (31) 20,750 374,415 (377,818) (17,347) 0 0 0 #NAME? #NAME? #NAME?
Increase/(Decrease) Other Current Liab 8,300 #NAME? #NAME? (1) 2,490 44,820 (47,310) 0 0 0 0 #NAME? #NAME? #NAME?
Net Cash Provided/(Used) by Operating Activiti (275,923) #NAME? #NAME? 3,601 (33,819) (686,139) 411,147 (13,732) 3,615 3,615 3,615 #NAME? #NAME? #NAME?

INVESTING ACTIVITIES
Property & Equipment (50,000) (100,000) (50,000) (40,000) 0 0 (40,000) 0 0 0 0 0 (280,000) (280,000)
Other 0 0
Net Cash Used in Investing Activities (50,000) (100,000) (50,000) (40,000) 0 0 (40,000) 0 0 0 0 0 (280,000) (280,000)

FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt 0 0 0 0
Increase/(Decrease) Curr. Portion LTD 0 0 0 0
Increase/(Decrease) Long Term Debt 0 0 0 0
Increase/(Decrease) Common Stock 0 0 0 0
Increase/(Decrease) Preferred Stock 0 0 0 0
Dividends Declared 0 0 0
Net Cash Provided / (Used) by Financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0

INCREASE/(DECREASE) IN CASH (325,923) #NAME? #NAME? (36,399) (33,819) (686,139) 371,147 (13,732) 3,615 3,615 3,615 #NAME? #NAME? #NAME?

CASH AT BEGINNING OF PERIOD 1,500,000 1,174,077 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 1,500,000
CASH AT END OF PERIOD 1,174,077 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

XYZ Company
Cash Flow Statement Year 2
Year 2 by Months Estimated Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 2 Projection
OPERATING ACTIVITIES
Net Earnings (244,567) #NAME? (5,021) (5,000) (76,870) (1,370,531) (5,000) (5,000) (5,000) (5,000) (5,000) #NAME? #NAME? (2,138,160)
Depreciation 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 131,714 131,714
Working Capital Changes 0
(Increase)/Decrease Accounts Receivable #NAME? #NAME? #NAME? 6 (20,667) (372,008) 392,675 0 0 0 0 #NAME? #NAME? #NAME?
(Increase)/Decrease Inventories #NAME? #NAME? #NAME? 6 (20,667) (372,008) 392,675 0 0 0 0 #NAME? #NAME? #NAME?
(Increase)/Decrease Other Current Assets #NAME? #NAME? #NAME? 1 (2,490) (44,820) 47,310 0 0 0 0 #NAME? #NAME? #NAME?
Increase/(Decrease) Accts Pay & Accrd Expense #NAME? #NAME? 31 (31) 20,750 374,415 (377,818) (17,347) 0 0 0 #NAME? #NAME? #NAME?
Increase/(Decrease) Other Current Liab #NAME? #NAME? #NAME? (1) 2,490 44,820 (47,310) 0 0 0 0 #NAME? #NAME? #NAME?
Net Cash Provided/(Used) by Operating Activiti #NAME? #NAME? #NAME? 5,957 (86,478) (1,729,156) 413,508 (11,371) 5,976 5,976 5,976 #NAME? #NAME? #NAME?
0
INVESTING ACTIVITIES 0
Property & Equipment (100,000) (100,000) 0 0 0 (100,000) 0 0 (100,000) 0 0 (100,000) (500,000) (500,000)
Other 0 0
Net Cash Used in Investing Activities (100,000) (100,000) 0 0 0 (100,000) 0 0 (100,000) 0 0 (100,000) (500,000) (500,000)
0
FINANCING ACTIVITIES 0
Increase/(Decrease) Short Term Debt 0 0 0 0
Increase/(Decrease) Curr. Portion LTD 100,000 0 100,000 100,000
Increase/(Decrease) Long Term Debt 400,000 0 400,000 400,000
Increase/(Decrease) Common Stock 0 0 0 0
Increase/(Decrease) Preferred Stock 500,000 0 500,000 500,000
Dividends Declared 0 0 0
Net Cash Provided / (Used) by Financing 1,000,000 0 0 0 0 0 0 0 0 0 0 0 1,000,000 1,000,000
0
INCREASE/(DECREASE) IN CASH #NAME? #NAME? #NAME? 5,957 (86,478) (1,829,156) 413,508 (11,371) (94,024) 5,976 5,976 #NAME? #NAME? #NAME?

CASH AT BEGINNING OF PERIOD #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
CASH AT END OF PERIOD #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
 02/08/2023
XYZ Company 08:58:22
Cash Flow Statement Year 3 Year 4 Year 5
Years 3, 4 & 5 by Quarters Annual Annual Annual
Year 3 Year 4 Year 5 Projection Projection Projection
1st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
OPERATING ACTIVITIES
Net Earnings (2,687,073) (12,000) (12,000) (12,000) (2,723,073) (9,790,429) (11,250) (11,250) (11,250) (9,824,179) (7,396,717) (3,500) (39,130) (341,983) (7,781,330) (3,915,557) (7,114,252) (9,366,820)
Depreciation 61,024 61,024 61,024 61,024 244,095 93,405 93,405 93,405 93,405 373,619 127,452 127,452 127,452 127,452 509,810 244,095 373,619 509,810
Working Capital Changes
(Increase)/Decrease Accounts Receivable #NAME? 137,781 0 0 #NAME? (137,781) 137,781 0 0 0 (551,123) 551,123 (2,656) (22,576) (25,232) #NAME? 0 (25,232)
(Increase)/Decrease Inventories #NAME? 111,221 0 0 #NAME? (111,221) 111,221 0 0 0 (444,882) 444,882 (2,144) (18,224) (20,368) #NAME? 0 (20,368)
(Increase)/Decrease Other Current Assets #NAME? 16,600 0 0 #NAME? (16,600) 16,600 0 0 0 (66,400) 66,400 (320) (2,720) (3,040) #NAME? 0 (3,040)
Increase/(Decrease) Accts Pay & Accrd Expense #NAME? (144,421) 0 0 #NAME? 144,421 (144,421) 0 0 0 577,683 (577,683) 2,784 23,664 26,448 #NAME? 0 26,448
Increase/(Decrease) Other Current Liab #NAME? (16,600) 0 0 #NAME? 16,600 (16,600) 0 0 0 66,400 (66,400) 320 2,720 3,040 #NAME? 0 3,040
Net Cash Provided/(Used) by Operating Activiti #NAME? 153,604 49,024 49,024 #NAME? (9,801,605) 186,735 82,155 82,155 (9,450,560) (7,687,586) 542,274 86,307 (231,667) (7,290,672) #NAME? (6,740,633) (8,876,162)

INVESTING ACTIVITIES
Property & Equipment (100,000) (200,000) (100,000) (150,000) (550,000) (200,000) (200,000) (100,000) (150,000) (650,000) (200,000) (200,000) (200,000) (150,000) (750,000) (550,000) (650,000) (750,000)
Other 0 0 0 0 0
Net Cash Used in Investing Activities (100,000) (200,000) (100,000) (150,000) (550,000) (200,000) (200,000) (100,000) (150,000) (650,000) (200,000) (200,000) (200,000) (150,000) (750,000) (550,000) (650,000) (750,000)

FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt 0 0 0 100,000 0 100,000 0 (100,000) (100,000) 0 100,000 (100,000)
Increase/(Decrease) Curr. Portion LTD 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Long Term Debt 0 (100,000) (100,000) 0 (100,000) (100,000) 0 (100,000) (100,000) (100,000) (100,000) (100,000)
Increase/(Decrease) Common Stock 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Preferred Stock 0 0 0 0 0 0 0 0 0 0 0 0
Dividends Declared 0 0 0 0 (50,000) (50,000) 0 0 (50,000)
Net Cash Provided / (Used) by Financing 0 0 0 (100,000) (100,000) 100,000 0 0 (100,000) 0 0 0 0 (250,000) (250,000) (100,000) 0 (250,000)

INCREASE/(DECREASE) IN CASH #NAME? (46,396) (50,976) (200,976) #NAME? (9,901,605) (13,265) (17,845) (167,845) (10,100,560) (7,887,586) 342,274 (113,693) (631,667) (8,290,672) #NAME? (7,390,633) (9,876,162)

CASH AT BEGINNING OF PERIOD #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
CASH AT END OF PERIOD #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
 02/08/2023
XYZ Company 08:58:22
Summary
Years 1 to 5

Year 1 Year 2 Year 3 Year 4 Year 5

Summary Financials ($)
Revenue 600,000 600,000 600,000 300,000 2,100,000
Gross Profit (1,564) (946,260) (2,033,501) (4,276,319) (4,977,353)
EBIT (532,231) (2,078,160) (3,867,557) (7,069,252) (9,352,820)
EBITDA (488,850) (1,946,446) (3,623,462) (6,695,633) (8,843,010)
Net Earnings (532,231) (2,138,160) (3,915,557) (7,114,252) (9,366,820)
Net Cash from Operating Activities #NAME? #NAME? #NAME? (6,740,633) (8,876,162)
Capital Expenditures 280,000 500,000 550,000 650,000 750,000
Interest Income/(Expense) 0 (60,000) (48,000) (45,000) (14,000)
Dividends 0 0 0 0 50,000
Cash #NAME? #NAME? #NAME? #NAME? #NAME?
Total Equity (32,231) (2,170,391) (6,085,949) ### ###
Total Debt 0 500,000 400,000 300,000 200,000

Growth
Revenue Growth Rate - CAGR: 0% 0% -50% 600%
Net Earnings Growth Rate - CAGR: 301.7% 83.1% 81.7% 31.7%

Ratios
Current Ratio #NAME? #NAME? #NAME? #NAME? #NAME?
Debt to Capital (LT Debt + Equity) 0.0 -2.9 -0.1 0.0 0.0

Profitability
Gross Profit % -0.3% -157.7% -338.9% -1425.4% -237.0%
Operating Expenses % 80.9% 188.7% 305.7% 931.0% 208.4%
Net Earnings % -88.7% -356.4% -652.6% -2371.4% -446.0%

Returns
Return on Assets #NAME? #NAME? #NAME? #NAME? #NAME?
Return on Equity -55.0% 318.9% 85.4% 60.8% 44.4%
Return on Capital (LT Debt + Equity) -55.0% 1254.9% 93.5% 62.4% 44.8%
 02/08/2023
08:58:22

XYZ Company Notes

Valuation
Venture Capital Method
Years 1 to 5

Assumptions: REF
Investor required IRR 60% A
P/E ratio at IPO or acquisition 15 B
Initial investment $1,500,000 C FV(A,C) G/F IRR(D,G)

REF D E F G H I J K
Market Required Future Investor's Investor's Investor's Investor's
Valuation Calculation Year Net Income Capitalization Value (Investor) Share Return ROI IRR IRR Calculation Workspace
Calculation Income Stmt B*E FV(F,D) C/G F*H I/C IRR(I,C,D) Start Year 1 Year 2 Year 3 Year 4 Year 5
Liquidity Event in Year 1 1 (532,231) ($7,983,467) $2,400,000 100.0% $0 0% #N/A ($1,500,000) $0
Liquidity Event in Year 2 2 (2,138,160) ($32,072,404) $3,840,000 100.0% $0 0% #N/A ($1,500,000) $0 $0
Liquidity Event in Year 3 3 (3,915,557) ($58,733,359) $6,144,000 100.0% $0 0% #N/A ($1,500,000) $0 $0 $0
Liquidity Event in Year 4 4 (7,114,252) ($106,713,781) $9,830,400 100.0% $0 0% #N/A ($1,500,000) $0 $0 $0 $0
Liquidity Event in Year 5 5 (9,366,820) ($140,502,293) $15,728,640 100.0% $0 0% #N/A ($1,500,000) $0 $0 $0 $0 $0

Negotiation Workspace
Investor's Investor's Investor's Investor's
Year Share Return ROI IRR
1 25.0% $0 0% #N/A ($1,500,000) $0
2 25.0% $0 0% #N/A ($1,500,000) $0 $0
3 25.0% $0 0% #N/A ($1,500,000) $0 $0 $0
4 25.0% $0 0% #N/A ($1,500,000) $0 $0 $0 $0
5 40.0% $0 0% #N/A ($1,500,000) $0 $0 $0 $0 $0
 02/08/2023
08:58:22

XYZ Company
Valuation
Venture Capital Method
Years 1 to 5
Multiple Rounds

Assumptions Ref Calculation

Month of IPO 60 A
Forecast annualized earnings at IPO ($9,366,820) B
P/E ratio at IPO 15 C

Investment Round First Second Third

Month of Investment 0 24 C
Investor required IRR 60% 50% D
Amount of Investment $1,500,000 $500,000 E
Required Monthly IRR 5.00% 4.17% 0.00% F D/12
Duration of Investment 60 36 60 G A-C

Calculations
Market Capitalization at IPO ($140,502,293) H B*C

First Second Third

Required FV for Investor at IPO $15,728,640 $1,687,500 $0 I E*(1+F)^G
Individual Investor's Share -11.2% -1.2% 0.0% J I/H
Individual Investor's ROI 1049% 338% #DIV/0! K I/E
Individual Investor's IRR 60% 50% #DIV/0! L (I/E)^(12/G)-1

Cumulative Investors' Share -11.2% -12.4% -12.4% M sum(J)

Cumulative Founders' Share 111.2% 112.4% 112.4% N 1-M

Negotiations Round First Second Third

Individual Investor's Share 15.0% 5.0% 3.0%
FV for Investor at IPO ($21,075,344) ($7,025,115) ($4,215,069)
Individual Investor's ROI -1405% -1405% #DIV/0!
Individual Investor's IRR -270% -341% #DIV/0!