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 Overview

California Green Works is a 501 (c) (3) that takes a two angle approach to sustainability. It
believes that prevention or environmental repair are not sufficient alone. The companys
mission is to make California communities greener through education and transformation.
 Table of Contents

Executive Summary ............................................................................................................... 5

Product & Service Summary ...........................................................................................................6

Market Summary ...........................................................................................................................6
Objectives ......................................................................................................................................7
Keys to Success ..............................................................................................................................7
Financing Summary ........................................................................................................................7

Product & Services ................................................................................................................ 8

Service Description.........................................................................................................................8

Industry Overview ................................................................................................................. 9

The Market Problem ......................................................................................................................9

Market Needs .............................................................................................................................. 10
Market Trends ............................................................................................................................. 10
Market Segmentation................................................................................................................... 11

Strategy & Implementation Summary .................................................................................. 12

Management Team ...................................................................................................................... 13

SWOT Analysis ............................................................................................................................. 15
Organization Comparison ............................................................................................................. 15
Marketing Plan............................................................................................................................. 16

Financial Performance ......................................................................................................... 17

post-Financing Summary .............................................................................................................. 17

Revenue Forecast ......................................................................................................................... 18
Personnel Forecast ....................................................................................................................... 18
Projected Profit and Loss .............................................................................................................. 20
Projected Cash Flow ..................................................................................................................... 21
Projected Balance Sheet ............................................................................................................... 22
Sensitivity Analysis ....................................................................................................................... 23

Appendix............................................................................................................................. 24
 Table of Figures

Figure 1: Organizational Chart .................................................................................................................... 12

Figure 2: Post-Financing Expenses .............................................................................................................. 16
Figure 3: Financial Highlights ...................................................................................................................... 17
Figure 4: Financial Indicators ...................................................................................................................... 18
Figure 5: Revenue Forecast ......................................................................................................................... 19
Figure 6: Profit & Loss ................................................................................................................................. 20
Figure 7: Cash Flow ..................................................................................................................................... 21
Figure 8: Wages & Payroll ........................................................................................................................... 22
Figure 9: Balance Sheet ............................................................................................................................... 23
Figure 10: Scenario Analysis ........................................................................................................................ 24
Figure 11: Break-Even Analysis ................................................................................................................... 25
Figure 12: 12 Month Profit & Loss .............................................................................................................. 26
Figure 13: 12 Month Cash Flow Statement ................................................................................................ 27
EXECUTIVE SUMMARY

The city of Los Angeles has been widely recognized as the most widely polluted city in the United States.1
Must of the pollution is highly concentrated around low income areas, providing poor living quality to the
degree of unsafe living conditions. It has been widely recognized in the Los Angeles community and state
of California that change is necessary to curb the states unsustainable levels of pollution.

PRODUCT & SERVICE SUMMARY

California Green Works, the organization, is a non-profit organization with a 501 (c) (3) status since 2002
that takes a two angle approach to building sustainable communities. The company provides community
level awareness through public engagement events and teaches the importance of sustainability through
the education system. Through this, the organization can make initiatives to prevent pollution through
knowledge of its implications on an individual level to the present and future consumers, voters and
activists. The second facet of California Green Works is the tangible transformation of communities by
completing government projects designed to preserve or repair the environment and enhance the overall
living conditions in the vicinity.

MARKET SUMMARY

Research indicates that California, namely the city of Los Angeles, hold a disproportionately large amount
of pollutants compared to the United States average.2 Rising sea levels due to global warming are also
expected to increase the sea level in the Los Angeles region by 5 -24 inches from 2000 2050, along with
excess flooding and hurricanes3. However, few corporate initiatives and educational programs have made
an enforcing effort to curb this trend.

The current approach to the problem is either non-profit entities that focus on community transformation
for repair, such as LA Neighborhood Land Trust or internal initiatives through the education sector that
promote sustainable lifestyles for prevention. The best approach is two pronged and is the objective of
California Greenworks. It conducts the education and supports with implementation, which prevents and
transforms communities in the Los Angeles area.

1
Source: http://time.com/82505/most-polluted-cities-in-america/
2
Source: http://www.clrsearch.com/Los-Angeles-Demographics/CA/Pollution-Levels
3
Source: http://www.usc.edu/org/seagrant/research/sea_level_rise_vulnerability.html
OBJECTIVES

California Greenworks has core objectives that it must meet in order to achieve its three year objectives.

Secure a grant of $458,822.40 to cover budgeting for two years of operations.

Acquire office space as an operations hub to bring interns and full time staff.
Restructure the educational curriculum to make it more effective in schools.
Implement the Baldwin Hills Ladera Ecology Nature Center Concept.
Implement the Degnan Street Visioning Project and other pipeline projects.
Acquire the necessary property, plant & equipment to fulfill project requirements.

KEYS TO SUCCESS

California Greenworks has keys to success that it must achieve in order to achieve its mission:

Emphasize strong, long-term relationships with the existing customer base with good CRM.
Continue to grow the expanding clean energy service of the company with Johns certification.
Increase promotional and advertising expenditures to gain more awareness and reach.
Develop relationships with real estate agents and appliance retail stores to promote services.
Continue the safe management of capital to securely fulfill debt obligations by Connecticut.

FINANCING SUMMARY

The company has prepared a two year budget designed to cover initial fixed expenses and operations.
The total requested amount is $458,822 in the form of an official grant or other donations. Revenue is
generated from three sources including the annual awareness concert, government tenders for
community transformation projects and general donations. Positive revenues will be re-invested back into
the business to perform community transformation projects and purchase fixed assets and eliminate the
need for machinery rental.

Startup Assets Startup Liabilities

Cash on Hand $ 448,022 Liabilities and Capital
Web Design/Hosting $ 2,200 Current Borrowing $ -
Computer & Software $ 4,000 Long-Term Liabilities $ -
Printers (2) $ 1,000 Accounts Payable $ -
Desk & Chairs $ 3,200 Other Current Liabilities $ -
Fax/Copy Machine $ 400
Total Startup Assets $ 458,822 Startup Investments
Planned Investment
Total Requirements Owner/Investor $ -
Total Startup Expenses $ - Grant Award/Donation $ 458,822
Total Startup Assets $ 458,822 Total Planned Investment $ 458,822
Total Requirements $ 458,822
Startup Funding
Total Liabilities $ -
Total Planned Investment $ 458,822
Total Funding $ 458,822
PRODUCT & SERVICES

SERVICE DESCRIPTION

California Greenworks provides many services to the community that revolve around prevention and
repair. Its prevention services focus on community education through public awareness in the form of an
annual concert and public displays and local schools. The repair aspect focuses on community
transformation through volunteer engagement to transform polluted or underdeveloped areas into
revitalized and protected environments.

Environmental Prevention

Public Education: California Greenworks is currently restructuring its curriculum to enter public schools
and teach children about the importance of sustainability and resource protection. It provides insights
into the implications of pollution and the importance of preserving natural resources through
demonstration and presentations.

Annual Concert: The annual concert is designed to create public awareness for the importance of
sustainability. Through the concert, the organization can make sustainability stylish through music and
support from well-respected artists in the region. When these thought and fashion leaders demonstrate
the importance of sustainability, it is adopted within the local economy as a lifestyle and culture.

Environmental Repair

Community Projects: The projects consist of volunteers utilized to transform the natural environment in
urban areas in Los Angeles. The non-profit will eventually seek to expand its community projects and
prevention into the entire state of California. Projects include proposed changes to enhance the
community and bids placed for tenders related to community transformation and the environment.
Current projects in the pipeline are provided below:
Degnan Street Visioning

This project is a designed proposal intended to enhance the beauty and increase the pedestrian, create
street calming and environmental functionality of what many consider to be the heart of Leimert Park
Village. Located along Degnan Boulevard between 43rd Street and 43rd Place, this plan will include
additional green spaces, pedestrian friendly zones, improved connectivity along opposite street sides, and
water conservation features. In brief, this design includes zones where the sidewalk extends out into
street parking and connects along both sides to a central median that runs down the length of the
Boulevard facing a majestic water fountain within the park.

Baldwin Hills Ladera Ecology Urban Nature Center

The proposed project is based on a 15,000 sq. ft. facility dedicated to community-based environmental
education. The facility will serve the Baldwin Hills, Winsor Hills, Ladera and Stocker Corridor communities.
The estimated cost for this facility is $8 million dollars. This modular energy star Platinum LEED facility
design will function completely off the grid to promote sustainable design consciousness with outdoor lab
space for youth education programs. Outdoor water features will represent watersheds throughout Los
Angeles County including gardens with urban habitat.

INDUSTRY OVERVIEW

THE MARKET PROBLEM

Sustainability, namely air pollution, in Los Angeles and the entire state of California is a growing pressing
concern. According to a survey conducted by the Natural Resources Defense Council, around 50% of
citizens in Los Angeles believe that air pollution is a problem.4 Air pollution is the result of deforestation
from overuse of paper products, the refinement of consumer products and production of plastics and lack
of adequate mass adoption for carpooling and public transportation.

4
Source: http://switchboard.nrdc.org/blogs/kgrenfell/people_in_los_angeles_say_air_1.html
Much of the pollution is focused around low income areas, which cause pressure on the youth in the area
to have a suitable environment to reach their future goals. These same environments have higher than
average crime rates due to fewer economic opportunities and pressure the youth to become affiliated
with illegal activity.

MARKET NEEDS

The market need is clear, the city of Los Angeles needs a serious curb of pollution and repair is necessary
to enhance the community and its development. The best approach to achieve this is to activity promote
pollution prevention on an individual level and engage the communitys high risk youth to make the
change necessary and change their lives on an individual level at the same time.

MARKET TRENDS

The crime rate in California is higher than the national average for many crimes, mainly the city of Los
Angeles. Much of these crimes are concentrated in lower income areas where youth are deprived of the
belief in themselves by being born into a poor environment that stunts the belief for achievement. By
focusing on using volunteers for high risk youth, they may also be mentored and work with community
leaders to be inspired to achieve their goals.
MARKET SEGMENTATION

The market segmentation is based upon the target group for the initiatives of California Greenworks. The
population at large is the overall demographic, however, by staying focused on specific segments, it may
leverage these groups for revenue streams to help achieve the vision of the organization. The ten year
population growth rate of under 3% in Los Angeles is lower than the statewide average of 10% and the
number of young people declined by 97,000 in the year 2011.5

Schoolchildren: There is a large proportion of school age children in Los Angeles, which provide a large
demographic for education that will later serve as future donors of the company and voting citizens
shaping the environmental landscape.

5
Source: http://www.library.ca.gov/lds/demographicprofiles/docs-jurisdiction/Los%20Angeles%20Public%20Library%20DP2010.pdf
Community Leaders: The community leaders in Los Angeles and additional cities that the company will
expand to play a critical role in the community. They set trends and promote lifestyles, through their
engagement in the non-profit, sustainability can be a way of life and even a fashion. Reaching out and
maintaining relationships with these community leaders and trendsetters is a powerful non-verbal
approach to persuading the community to enhance the environment in urban Californian communities.

Public Sector: The organization will be proposing government projects and bidding on potential tender
awards for community transformation projects. Through the 501 (C)(3) status and with the utilization of
volunteers, the company can bid more competitively and exert more effort to save the city money while
re-investing revenues to further enhance and educate the community rather than distributing dividends
to the limited owners.

STRATEGY & IMPLEMENTATION SUMMARY

The key strategy of California Greenworks is to take a two sided approach to community transformation.
Through prevention with education and lifestyle transformation with community leaders and restoration
through construction and engineering projects awarded to the organization. The education strategy will
be enhanced through its ability to restructure its curriculum to better inform and engage the students
about the importance of natural resource conservation and pollution prevention. Visitations are made to
schools with demonstrations help to promote these initiatives. Volunteers will also be recruited from
some schools targeting risk youth to get them engaged with the second side of the strategy.

The second side of the strategy focuses on community restoration through the development and
implementation of new projects. Youth may be sourced with various backgrounds, some of which may
develop ideas for community transformation and propose them to the government for funding. Others
may take a labor or administrative function to generate extra cash and experience the mentorship of
community leaders. Through these volunteers, proposed projects and awarded tenders, the organization
will transform communities in the Los Angeles area and later expand to more urban areas in the state of
California.
MANAGEMENT TEAM

John Doe Chief Executive Officer

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Susan Miller Chief Operating Officer

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Kevin Jones -Chief Financial Officer

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Adrian Wilcourt Legal Compliance

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ORGANIZATIONAL CHART
Adrian
Board/Investors
Wilcourt/Legal

John Doe/CEO

Susan Kevin
Miller/COO Jones/CFO

Marketing
Sales Director Accounting
Director

Sales Reps Collections

SWOT ANALYSIS

Strengths

Strong management team passionate about urban development and the local community.
Over 12 years operating experience holding a 501 (c) (3) status in Los Angeles.
Ability to expand into all of California with current business model structure.
Potential projects in the pipeline for community transformation for the local government.
Successful and self-sustaining business model that is not dependent upon only donations.
Celebrity and community leader support to help engage the city of Los Angeles.

Weaknesses

Requirement of initial grant to increase organization capability to fulfill projects.

Need of more staffing to improve the project capability.
Need to restructure the existing educational curriculum and make enhancements.

Opportunities

The need for community transformation is only growing greater.

The youth of the city are tomorrows future voters, activities and change agents.
The government provides a sustainable income source through public sector tenders.

Threats

There are many public sector companies the organization must compete against.
The risk of hiring and training new employees can be a costly and time consuming process.

ORGANIZATION COMPARISON

There are no organizations that take the same approach of prevention and restoration that California
Greenworks takes. Some organizations such as Los Angeles Neighborhood Land Trust provide community
transformation focusing on small parks and gardens to encourage natural landscapes. There are also
private companies placing bids on public sector tenders for community development projects. However,
the organizations non-profit structure enables it to bid more competitively and re-invest revenues back
into the community.

15
MARKETING PLAN
Internet Marketing/Social Media

The Internet marketing will consist in two key divisions consisting of awareness and education. The first
division is awareness, which will be entail promoting the company using local SEO techniques and other
web based promotions. The second will be the education, which will inform potential customers about
the organization. This will be accomplished through the website, which will be constantly updated and
improved, including a new UI/UX and greater social media integration.

Public relations

The organization will regularly maintain contacts with local media agencies to hold presentations about
new projects in the pipeline, the concert or interviews about what that organization does. Through public
relations, the company can leverage greater support from media viewers from the reputation of the media
source at a very low cost rate from preparing media kits and organizing interviews.

Public Events

The public events consist of the annual concert and public demonstrations to increase awareness about
the importance of pollution prevention and natural resource conservation. Through the network with
community leaders and visual demonstrations, the organization can help to persuade public opinion to
make long-term decisions.

16
FINANCIAL PERFORMANCE

The owner already has been operating privately for 10 years. His revenues have grown by 24% between
2011 and 2013, with positive profits in every year except 2012. The year of negative profit was due to
investments in additional capital expenditures. John is forecasting a reasonable increase in sales revenue
of 59% between 2014 and 2015, given that a full time staff member will be hired and an assistant, this
would more than double performance capacity. John can also increase his profit margins by investments
in capital expenditures, eliminating higher sub-contractor hourly rates and equipment rental expenses.
The following section breaks down the financial performance, both historical and projected.

POST-FINANCING SUMMARY

Startup Assets Startup Liabilities

Cash on Hand $ 448,022 Liabilities and Capital
Web Design/Hosting $ 2,200 Current Borrowing $ -
Computer & Software $ 4,000 Long-Term Liabilities $ -
Printers (2) $ 1,000 Accounts Payable $ -
Desk & Chairs $ 3,200 Other Current Liabilities $ -
Fax/Copy Machine $ 400
Total Startup Assets $ 458,822 Startup Investments
Planned Investment
Total Requirements Owner/Investor $ -
Total Startup Expenses $ - Grant Award/Donation $ 458,822
Total Startup Assets $ 458,822 Total Planned Investment $ 458,822
Total Requirements $ 458,822
Startup Funding
Total Liabilities $ -
Total Planned Investment $ 458,822
Total Funding $ 458,822

17
REVENUE FORECAST

Revenue Forecast
Year 1 Year 2 Year 3
Revenue Forecast
Sales $ 562,000 $ 762,000 $ 962,000
Total Revenue $ 562,000 $ 762,000 $ 962,000

Direct Cost of Revenue

General COGS $ 91,200 $ 131,200 $ 171,200
Other $ - $ - $ -
Subtotal Cost of Revenue $ 91,200 $ 131,200 $ 171,200

PERSONNEL FORECAST

The company will be hiring four people in total during the first year. The first person hired will be the
existing sub-contractor that works almost full-time already. The second will be an office administrator and
the third an apprentice to assist with work required. The owner will also be an employee. As the company
expands more into Fairfield County, additional employees will be hired to assist.

Personnel Forecast
Year 1 Year 2 Year 3
Personnel Count
Executive Director 1 1 1
Admin Assistant/Bookkeeper 1 1 1
Outreach Corrdinator 1 1 1
Program Director 1 1 1
Part Time Volunteers 1 1 1
Total Personnel 5 5 5

Personnel Wage
Salaries & Wage $ 131,432 $ 131,432 $ 131,432
Payroll Related $ 46,001 $ 46,001 $ 46,001
Total Payroll $ 177,433 $ 177,433 $ 177,433

18
 Corporate Advisory
Board of Directors Chief Executive Officer
Council

Admin

Executive Director

Accounting/Payroll/Personnel

Government Advocacy @Work Job Training

Development Director Program Manager Project Manager
Policy Analyst &Development Dir

Grantwriting, Outreach
Fundraising, Social and Education Design & Urban
Policy Intern Job Developer
Media, Outreach Programs, Policy Planning Interns
Interns

Job Develper

Job Developer

19
PROJECTED PROFIT AND LOSS

The company expects to reach net incomes of $92,031 by the year 2016. While the financial forecast
shows no cash withdraws on the balance sheet, net profits will likely be re-invested into paying of debt
early and investment in new capital expenditures to facilitate expansion.

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Revenue
Concert Revenue $ 350,000 $ 350,000 $ 350,000
Donations $ 12,000 $ 12,000 $ 12,000
Government Projects $ 200,000 $ 400,000 $ 600,000
Subtotal Cost of Revenue $ 562,000 $ 762,000 $ 962,000
Concert Revenue $ 50,000 $ 50,000 $ 50,000
Donations $ 1,200 $ 1,200 $ 1,200
Government Projects $ 40,000 $ 80,000 $ 120,000
Total Cost of Revenue $ 91,200 $ 131,200 $ 171,200

Gross Margin $ 470,800 $ 630,800 $ 790,800

Gross Margin/Revenue 84% 83% 82%

Expenses
Professional Services (Legal/Accounting) $ 36,000 $ 10,000 $ 10,000
Office Supplies $ 6,000 $ 1,000 $ 1,000
Stationary $ 1,200 $ 500 $ 500
Program Materials $ 1,200 $ 5,000 $ 5,000
Insurance (Liability) $ 6,000 $ 1,300 $ 1,300
Telephone $ 3,000 $ 3,360 $ 3,360
Postage & Logistics $ 6,000 $ 300 $ 300
Office Rent $ 600 $ 30,000 $ 30,000
Utilities $ 3,600 $ 2,400 $ 2,400
Local Travel Expenses $ 24,000 $ 2,400 $ 2,400
Total Operating Expenses $ 87,600 $ 56,260 $ 56,260
Wages & Payroll $ 177,433 $ 177,433 $ 177,433
Depreciation, Amortization & Taxes $ 1,544 $ 1,544 $ 1,544
Net Income $ 204,223 $ 395,563 $ 555,563
Net Income/Revenue 36% 52% 58%

20
PROJECTED CASH FLOW

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Beginning Cash Balance $ 448,022 $ 253,789 $ 250,896
Cash Inflows
Income from Sales $ 562,000 $ 762,000 $ 962,000
Accounts Receivable $ - $ - $ -
Total Cash Inflows $ 562,000 $ 762,000 $ 962,000

Cash Outflows

Investing Activities
New Fixed Assets Purchases $ 400,000 $ 400,000 $ 400,000
Inventory Addition to Bal.Sheet $ - $ - $ -
Cost of Sales $ 91,200 $ 131,200 $ 171,200

Operating Activities
Salaries and Wages $ 177,433 $ 177,433 $ 177,433
Fixed Business Expenses $ 87,600 $ 56,260 $ 56,260
Taxes $ - $ - $ -

Financing Activities
Loan Payments $ - $ - $ -
Line of Credit Interest $ - $ - $ -
Line of Credit Repayments $ - $ - $ -
Dividends Paid $ - $ - $ -

Total Cash Outflows $ 756,233.20 $ 764,893.20 $ 804,893.20

Cash Flow $ (194,233.20) $ (2,893.20) $ 157,106.80
Operating Cash Balance $ 253,789.20 $ 250,896.00 $ 408,002.80
Ending Cash Balance $ 253,789.20 $ 250,896.00 $ 408,002.80

21
PROJECTED BALANCE SHEET

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets
Current Assets
Cash $ 253,789 $ 250,896 $ 408,003
Other Current Assets $ - $ - $ -
Total Current Assets $ 253,789 $ 250,896 $ 408,003

Long-term Assets
Long-term Assets $ 410,800 $ 810,800 $ 1,210,800
Accumulated Depreciation $ 1,544 $ 3,089 $ 4,633
Total Long-term Assets $ 409,256 $ 807,711 $ 1,206,167
Total Assets $ 663,044 $ 1,058,607 $ 1,614,169

Liabilities and Capital

Current Liabilities
Accounts Payable $ - $ - $ -
Current Borowing $ - $ - $ -
Other Current Liabilities $ - $ - $ -
Subtotal Current Liabilities $ - $ - $ -

Long-term Liabilities $ - $ - $ -
Total Liabilities $ - $ - $ -

Common Stock $ 458,822 $ 458,822 $ 458,822

Retained Earnings $ 204,223 $ 599,785 $ 1,155,348
Total Capital $ 663,045 $ 1,058,607 $ 1,614,170
Total Liabilities and Capital $ 663,044 $ 1,058,607 $ 1,614,169

22
SENSITIVITY ANALYSIS

Best Case Scenario (Revenue Increase by 15% )

Year 1 Year 2 Year 3
Revenue $ 646,300 $ 876,300 $ 1,106,300
Cost of Goods Sold $ 104,880 $ 150,880 $ 196,880
Gross Margin $ 541,420 $ 725,420 $ 909,420
Gross Margin/Revenue 84% 83% 82%
Operating Expenses $ 87,600 $ 56,260 $ 56,260
EBIT $ 453,820 $ 669,160 $ 853,160
EBIT/Revenue 70% 76% 77%

Worst Case Scenario (Revenue Decrease by 15% )

Year 1 Year 2 Year 3
Revenue $ 477,700 $ 647,700 $ 817,700
Cost of Goods Sold $ 77,520 $ 111,520 $ 145,520
Gross Margin $ 400,180 $ 536,180 $ 672,180
Gross Margin Revenue 84% 83% 82%
Operating Expenses $ 87,600 $ 56,260 $ 56,260
EBIT $ 312,580 $ 479,920 $ 615,920
EBIT/Revenue 65% 74% 75%

23
APPENDIX

Year 1 Profit & Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $ 1,000 $ 1,000 $ 101,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 451,000 $ 1,000 $ 1,000 $ 1,000
Subtotal Cost of Revenue $ 100 $ 100 $ 20,100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 70,100 $ 100 $ 100 $ 100
Total Cost of Revenue $ 100 $ 100 $ 20,100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 70,100 $ 100 $ 100 $ 100

Gross Margin $ 900 $ 900 $ 80,900 $ 900 $ 900 $ 900 $ 900 $ 900 $ 380,900 $ 900 $ 900 $ 900
Gross Margin/Revenue 90% 90% 80% 90% 90% 90% 90% 90% 84% 90% 90% 90%

Expenses
Professional Services (Legal/Accounting) $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
Office Supplies $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Stationary $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100
Program Materials $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100
Insurance (Liability) $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Telephone $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250
Postage & Logistics $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Office Rent $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50
Utilities $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300
Local Travel Expenses $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000
Total Operating Expenses $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300 $ 7,300

EBIT $ (6,400) $ (6,400) $ 73,600 $ (6,400) $ (6,400) $ (6,400) $ (6,400) $ (6,400) $ 373,600 $ (6,400) $ (6,400) $ (6,400)
EBIT/Revenue -640% -640% 73% -640% -640% -640% -640% -640% 83% -640% -640% -640%

24
 Year 1 Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Revenue
$ 1,000.0 $ 1,000.0 $ 101,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 451,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0
New Current Borrowing
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Long-Term Liabilities
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Other Current Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Investment Received
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Subtotal Cash Received
$ 1,000.0 $ 1,000.0 $ 101,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0 $ 451,000.0 $ 1,000.0 $ 1,000.0 $ 1,000.0

Expenditures

Expenditures from Operations

$ 22,186.1 $ 22,186.1 $ 42,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 92,186.1 $ 22,186.1 $ 22,186.1 $ 422,186.1
Subtotal Spent on Operations
$ 22,186.1 $ 22,186.1 $ 42,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 92,186.1 $ 22,186.1 $ 22,186.1 $ 422,186.1

Additional Cash Spent

Current Borrowing Repay

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
L-T Liabilities Principal Repay
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Purchase Inventory
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Purchase Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Dividends
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cash Spent
$ 22,186.1 $ 22,186.1 $ 42,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 22,186.1 $ 92,186.1 $ 22,186.1 $ 22,186.1 $ 422,186.1

Net Cash Flow

$ (21,186.1) $ (21,186.1) $ 58,813.9 $ (21,186.1) $ (21,186.1) $ (21,186.1) $ (21,186.1) $ (21,186.1) $ 358,813.9 $ (21,186.1) $ (21,186.1) $ (421,186.1)
Cash Balance
$ 426,836.3 $405,650.2 $ 464,464.1 $ 443,278.0 $ 422,091.9 $ 400,905.8 $ 379,719.7 $ 358,533.6 $ 717,347.5 $ 696,161.4 $ 674,975.3 $ 253,789.2

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