SOUTHSIDE RHYTHM FEST

NOTES TO FINANCIAL STATEMENTS

For the Four (4) Months Period Ended August 7, 2023
(Amounts in Philippine Pesos)

1. Cash

2023
Cash with bank 788,927.64
Cash on hand c/o Ms. Jemabel Lerios 600.00
789,527.64

Cash in bank earns interest at bank deposit rate. Interest income recognized for the four (4)
months period ended August 3, 2023 amounted to ₱79.08 (Note 9).

The cash on hand with Ms. Jemabel Lerios pertains to the commission income on Nature Spring
sales (Note 9).

2. Receivables

2023
Sales of Tickets – Net of commission and charges
SM Tickets 755,520.00
Commission and other charges of SM tickets (84,429.28) 671,090.72
Elite Circle Eagles – Lapu-lapu, Ms. Jane Castellano c/o Ms. Chu Olandre 71,400.00
Balamban Liempo, Glonel Genodia c/o Alan Lucar 9,090.00
Others – net of deductions
Security deposit from Filinvest, Ms. Korah Siona 250,000.00
Due from Mr. Alan Lucar 150,000.00
Ticket cash bond c/o Mr. Jon Dave Lepatan 58,850.00
Food concessionaires c/o Mr. Michael Cuarto 50,000.00 508,850.00
Subtotal 1,260,430.72
Add: Aerophone x Samsung sponsorship c/o Mr. Michael Cuarto 127,232.15
Total Supposed Receivables 1,387,662.87
Less: Collected by Mr. Michael Cuarto net of security (127,232.15)
Security/bouncers fee (60,000.00)
Actual Receivables, Net 1,200,430.72

The ₱71,400 receivable from Elite Circle Eagles – Lapu-lapu pertains to the verified ticket sales
of fourteen (14) SVIP, one (1) VIP, seven (7) Gold, thirteen (13) Silver and twenty-five (25)
General Admission which not yet remitted as of report date.

The due from Mr. Lucar of ₱150,000.00 is immediately demandable. However, the advances did
not bear any interest and was not collateralized by the personal asset of Mr. Lucar. We will ask
postdated check (PDC).
 -2-

The sponsorship receivable from Aerophone x Samsung amounting to ₱127,232.15 was

collected by Mr. Cuarto to be used to pay for the bouncers and security personnel amounting
to ₱60,000.00 as approved by Mr. Regan King.
The ticket cash bond pertains to the one thousand (1,000) tickets of various category which are
stamped by the Cebu City government at a rate of ₱58.85 each. This will be refunded upon
payment of amusement tax.

3. Accrued and Other Payables

2023
Venue set-up c/o Mr. Michael Cuarto 395,000.00
Manpower services (net of security/bouncers fee) c/o Mr. Michael Cuarto 200,000.00
Food and meals services c/o Mr. Michael Cuarto 48,170.00
Marketing and ticket printing c/o Mr. Michael Cuarto 19,260.00
Subtotal 662,430.00

Accounting and management services c/o Mr. William Acosta 200,000.00

Donations to PCL and Sta. Rita c/o Mr. Regan King 100,000.00
Subtotal 300,000.00

Grand Total 962,430.00

4. Short-term Loan Payable

This pertain to the principal loan from Ms. Rosalie Young for the payment of national artist’s fee
and other expenses amounted to ₱2,600,000.00 to be paid by Mr. Regan King.

5. Organizers’ Contribution

2023
Contribution made by Mr. King (opening of bank account) 50,000.00
Contribution made by production heads -
50,000.00

6. Revenue

2023
Ticket Sales – net of commission
SM Tickets (see Note 2) 671,090.72
SRF Outlets (w/ AR of P9,090 Balamban Liempo c/o Mr. Alan Lucar) 1,867,995.00
Elite Circle Eagles – Ms. Jane Castellano c/o Ms. Cherrie Olandre 71,400.00 2,610,485.72
Sponsorships
Cash deal sponsorship 1,938,000.00
Less: Aerophone | Samsung received by Mr. Michael Cuarto (127,232.15) 1,810,767.85
Liquor sales 259,215.00
Food concessions 198,500.00
 -3-

4,878,968.57

The total peso value of unsold tickets amounted to ₱14,736,320.00, included the ₱186,640.00
and ₱5,200.00 tickets from various categories were held by Elite Circle Eagles Lapu-lapu and Mr.
Ian Jilchrist Velez, respectively. Efforts were made to get back their unreturned tickets but failed.

7. Cost of Services

2023
Artists and hosts talent fees 3,000,000.00
Venue
Venue set-up 855,000.00
Additional cost for venue set-up 30,000.00
Reimbursement to Jian Audio for May 25 Mobilization (4 days) 30,000.00
Signages for the venue entrance 5,000.00 920,000.00
Manpower services 445,625.00
Food and meals services 215,180.00
Artists transportation and accommodation 157,110.00
Video live feed 35,000.00
4,772,915.00

8. Cost of Sales

2023
Cost of drinks available for sale and paid 280,895.00
Cost of ice blocks 21,700.00
Plastic cups 17,500.00
Less: Refund of unsold drinks (157,179.00)
162,916.00

9. Other Income

2023
Commission on Nature Spring sales (see Note 1) 600.00
Interest income (see Note 1) 79.08
679.08

10. Marketing and Operating Expenses

2023
Marketing expense
Postage and signage and other marketing fees 635,034.97
Influencer fee expense 135,000.00 770,034.97
Finance and accounting services 200,000.00
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Donations to PCL and Sta. Rita 100,000.00

forward

2023
Taxes and Licenses
Amusement taxes (registration of ticket, liquor and food) 41,230.00
Special permit 1,905.00 43,135.00
Insurance 59,232.50
Coupons claimed through SRF drink stations 28,050.00
Website fee 23,000.00
Representation – meals during meetings 22,742.96
Ticket refunds 20,150.00
Replenishment of petty cash fund 18,285.67
Various reimbursement for the team 44,297.19
Sash for 100 Cebu Prettiest 3,500.00
Miscellaneous expense for transportation of Sir Lepatan 5,000.00
Others
Miscellaneous 100,000.00
Revolving fund 50,000.00
Operating fund establish for the event day 30,000.00
Petty Cash fund 10,000.00
Excess on disbursed amount (102,406.67) 87,593.33
1,425,021.62

11. Finance Cost

2023
Interest and other charges 89,266.67
Extension of loan’s interest 52,000.00
141,266.67