Company Name Cash Flow Statement Ca Year 1 Net Income Operations Depreciation Expense Amortization Expense (Inc/Dec)...

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Company Name Cash Flow Statement Ca Year 1 Net Income Operations Depreciation Expense Amortization Expense (Inc/Dec) in A/R January February March April May June July $ (2,003,333) $ (3.333) $ (3,333) $ (46,667) $ (46,667) $ (158,658) $ 1,605 2,266 (162,658) $ 1,605 2,266 2,266 1,605 2,266 August September October November December 116,962 $ 111,962 $ 116,962 $ 116,962 $ 178,062 1,605 1,605 2,266 Total January April $(1,783,739) $ 81,824 $ 83,826 $ 85,854 $ 87,882 $ February March May June 89,937 $ 91,991 1.605 2,266 (91,849) 1,605 11,235 2,266 15,862 (21,869) (113,718) 2,340 2,340 2,340 2,340 2,340 2,340 2,266 2,266 2,266 2,266 2,266 2.266 (664) (665) (674) (673) (683) (682) (Inc/Dec) in Inventory (17,955) (Inc/Dec) in A/P 17,955 (4,275) (22,230) 4,275 (391) (131) (134) (133) (135) (135) 22,230 391 131 133 133 135 135 Net Cash Flow from Operations $ (2,003,333) $ (3,333) $ (3,333) $ (46,667) $ (46,667) $ (154,787) $ (158,787) $ 28.984 $ 115,833 $ 120,833 $ 120,833 S 160,064 $(1,870,360) $ 85,766 $ 87,768 $ 89.785 $ 91,815 $ 93,860 $ 95,915 Investing Activities Cash Paid for Fixed Assets $ Cash Paid for Intangible Assets Net Cash Flow from Investing $ $ $ $ $ $ (96,282) $ (271,880) $ $ $ $ $ $ (96,282) $ (44,100) $ (271,880) $ $ $ $ $ (368,162) $ $ $ $ $ (368,162) $ (44,100) $ $ $ $ $ Financing Activities Cash from Founders Cash from Angel Investor $ 300,000 $ 2,000,000 $ $ $ $ $ $ $ $ $ $ $ 300,000 $ 2,000,000 $ $ $ $ $ $ $ $ $ $ $ Dividends to Shareholders Net Cash Flow from Financing $ 2,300,000 $ $ $ $ $ $ $ 2,300,000 $ $ $ $ $ Net Change in Cash S 296,667 $ (3,333) $ (3,333) $ (46,667) $ (46,667) $ (522,949) $ (158,787) S 28,984 S 115,833 $ 120,833 $ 120.833 $ Beginning Cash Balance 296,667 293,334 290,001 243,334 196.667 (326,282) (485,069) (456,085) (340.252) (219,419) 160,064 $ 61,478 $ 41,666 $ 87,768 $ (98,586) 89,785 $ 91,815 93,860 $ 95,915 61,478 103.144 190.912 280,697 372,512 466,372 Ending Cash Balance | $ 296,667 $293,334 $ 290,001 $243,334 $ 196,667 $ (326,282) $ (485,069) $ (456,085) $ (340,252) $ (219,419) $ (98,586) $ 61,478 $ 61,478 $ 103,144 $ 190,912 $ 280,697 $ 372,512 $ 466,372 $ 562,288 Minimum Cash Reserve $ 200,000 $200,000 $200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 Do we fall below the minimum? NO NO NO NO YES YES YES YES YES YES YES YES YES YES YES NO NO NO NO Company Name Cash Flow Statement Company Name Cash Flow Statement Operations Year 2 July Year 3 Year 4 Year 5 August September October November December Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total Net Income Depreciation Expense Amortization Expense (Inc/Dec) in A/R $ 94,072 $ 96,153 $ 98,234 $ 100,342 $ 102,448 $ 104,582 $ 1,117,146 $ 217,461 $ 235,889 $ 254,640 $ 273,714 $ 981,704 $ 186,603 $ 205,253 $ 224,210 $ 243,517 $ 859,582 $ 267,737 2,340 2,340 2,340 2,340 2,340 2,340 28,080 8,474 8,474 8,474 8,474 33,896 9,929 9,929 9,929 9,929 39,716 45,536 2,266 2,266 2,266 2,266 2,266 2,266 27,192 6,797 6,797 6,797 6,797 27,188 6,797 6,797 6,797 6,797 27,188 27,188 (691) (691) (691) (700) (700) (708) (8,222) (1,417) (2,158) (2,196) (2,233) (8,004) (2.274) (2,316) (2,353) (2,397) (9,340) (5,948) (Inc/Dec) in Inventory (136) (137) (137) (138) (138) (141) (1,886) (4,337) (497) (507) (515) (5,856) (4,794) (609) (618) (631) (6,652) (11,327) (Inc/Dec) in A/P 137 137 137 138 139 140 1,886 4,337 497 507 515 5,856 4,794 609 618 631 6,652 11,327 Net Cash Flow from Operations $ 97,987 $ 100,067 $ 102,149 $ 104,248 $ 106,355 $ 108,479 $ 1,164,195 $ 231,315 $ 249,002 $ 267,715 $ 286,752 $ 1,034,784 $ 201,055 $ 219,663 $ 238,583 $ 257,846 $ 917,146 $ 334,513 Investing Activities Cash Paid for Fixed Assets $ $ $ $ $ $ $ - (44,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) Cash Paid for Intangible Assets Net Cash Flow from Investing $ $ $ $ $ (44,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) Financing Activities Cash from Founders $ Cash from Angel Investor $ $ $ $ $ $ $ $ $ $ $ $ Dividends to Shareholders Net Cash Flow from Financing $ $ $ Net Change in Cash $ 97,987 $ 100,067 $ 102,149 $ 104,248 $ 106,355 $ 108,479 $ 1,120,095 $ Beginning Cash Balance 562,288 660,275 760,342 862,491 966,739 1,073,094 61,478 1,181,573 1,383,788 202,215 $ 249,002 $ 267,715 $ 286,752 $ 1,005,684 $ 1,632,790 1,900,505 171,955 $ 219,663 $ 238,583 $ 257,846 $ 888,046 $ 305,413 1,181,573 2,187,257 2,359,212 2,578,875 2,817,457 2,187,257 3,075,303 Ending Cash Balance $ 660,275 $ 760,342 $ 862,491 $ 966,739 $1,073,094 $ 1,181,573 $ 1,181,573 $ 1,383,788 $ 1,632,790 $ 1,900,505 $ 2,187,257 $ 2,187,257 $ 2,359,212 $2,578,875 $ 2,817,457 $ 3,075,303 $ 3,075,303 $ 3,380,716 Minimum Cash Reserve Do we fall below the minimum? 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO A. Desired Financing: Review the cash flow projections and your estimate of how much money is required over the next few years to carry out the development and/or expansion of your business as described. Determine the amount and timing of cash infusions required to prevent cash balances from going negative. Add a cash safety cushion (~25% as a good "guesstimate") to the anticipated cash needs to protect against unexpected expenses or delayed income. Determine the type of funding that will suit your business: debt/equity or non-traditional financing. Indicate how this capital requirement will be obtained -- from whom and how much will be obtained via term loans or lines of credit. B. Offering (this is the deal structure - your pitch for money): If you have decided to seek equity capital, then you need to describe the type of security being offered (e.g., common stock, convertible debentures, debt with warrants, debt plus stock), the unit price, and the total amount of securities to be sold in this offering. If securities are not just common stock, indicate by type, interest, maturity, and conversion conditions. Show what share (i.e. the percentage) of the company that the investor will hold for that amount of money or after exercise of any stock conversion/ purchase rights (for convertible debentures or warrants).. Securities sold through a private placement (and therefore exempt from SEC registration) should include the following statement in this section: "The shares being sold pursuant to this offering are restricted securities and may not be resold readily. The prospective investor should recognize that such securities might be restricted as to resale for indefinite period of time. Each purchaser will be required to execute a Non-Distribution Agreement satisfactory in form to corporate counsel". If you are seeking a loan, then you need to indicate to the potential lender how the loan will be repaid and what the interest rate is. What is the collateral for the loan? C. Capitalization: Present the current and proposed (post-offering) number of outstanding shares of common stock. Indicate any shares offered by key management people and show the number of shares that they will hold after completion of the proposed financing. Indicate how many shares of common stock will remain un-issued after the offering and how many of these will be reserved for stock options for future key employees. Identify any other terms that you are willing to negotiate as part of the deal e.g. right of first refusal, seat on board, voting rights, and other rights and preferences. 30 D. Use of Funds: Investors like to know how their money is going to be spent. Provide a brief description of how the capital raised will be used. Summarize as specifically as possible what amount will be used for such things as product design and development, capital equipment, marketing, and general working capital needs. E. Investors' Return (Exit Strategy): What is the value of your company? How did you calculate this value? Indicate how your valuation and proposed ownership shares will result in the desired rate of return for the investors you have targeted. What will be the likely harvest or exit mechanism (IPO, outright sale, merger, MBO, operate and grow, etc.)? What is the exit strategy for the investors and founders? Company Name Cash Flow Statement Ca Year 1 Net Income Operations Depreciation Expense Amortization Expense (Inc/Dec) in A/R January February March April May June July $ (2,003,333) $ (3.333) $ (3,333) $ (46,667) $ (46,667) $ (158,658) $ 1,605 2,266 (162,658) $ 1,605 2,266 2,266 1,605 2,266 August September October November December 116,962 $ 111,962 $ 116,962 $ 116,962 $ 178,062 1,605 1,605 2,266 Total January April $(1,783,739) $ 81,824 $ 83,826 $ 85,854 $ 87,882 $ February March May June 89,937 $ 91,991 1.605 2,266 (91,849) 1,605 11,235 2,266 15,862 (21,869) (113,718) 2,340 2,340 2,340 2,340 2,340 2,340 2,266 2,266 2,266 2,266 2,266 2.266 (664) (665) (674) (673) (683) (682) (Inc/Dec) in Inventory (17,955) (Inc/Dec) in A/P 17,955 (4,275) (22,230) 4,275 (391) (131) (134) (133) (135) (135) 22,230 391 131 133 133 135 135 Net Cash Flow from Operations $ (2,003,333) $ (3,333) $ (3,333) $ (46,667) $ (46,667) $ (154,787) $ (158,787) $ 28.984 $ 115,833 $ 120,833 $ 120,833 S 160,064 $(1,870,360) $ 85,766 $ 87,768 $ 89.785 $ 91,815 $ 93,860 $ 95,915 Investing Activities Cash Paid for Fixed Assets $ Cash Paid for Intangible Assets Net Cash Flow from Investing $ $ $ $ $ $ (96,282) $ (271,880) $ $ $ $ $ $ (96,282) $ (44,100) $ (271,880) $ $ $ $ $ (368,162) $ $ $ $ $ (368,162) $ (44,100) $ $ $ $ $ Financing Activities Cash from Founders Cash from Angel Investor $ 300,000 $ 2,000,000 $ $ $ $ $ $ $ $ $ $ $ 300,000 $ 2,000,000 $ $ $ $ $ $ $ $ $ $ $ Dividends to Shareholders Net Cash Flow from Financing $ 2,300,000 $ $ $ $ $ $ $ 2,300,000 $ $ $ $ $ Net Change in Cash S 296,667 $ (3,333) $ (3,333) $ (46,667) $ (46,667) $ (522,949) $ (158,787) S 28,984 S 115,833 $ 120,833 $ 120.833 $ Beginning Cash Balance 296,667 293,334 290,001 243,334 196.667 (326,282) (485,069) (456,085) (340.252) (219,419) 160,064 $ 61,478 $ 41,666 $ 87,768 $ (98,586) 89,785 $ 91,815 93,860 $ 95,915 61,478 103.144 190.912 280,697 372,512 466,372 Ending Cash Balance | $ 296,667 $293,334 $ 290,001 $243,334 $ 196,667 $ (326,282) $ (485,069) $ (456,085) $ (340,252) $ (219,419) $ (98,586) $ 61,478 $ 61,478 $ 103,144 $ 190,912 $ 280,697 $ 372,512 $ 466,372 $ 562,288 Minimum Cash Reserve $ 200,000 $200,000 $200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 $ 200,000 $200,000 $ 200,000 $ 200,000 Do we fall below the minimum? NO NO NO NO YES YES YES YES YES YES YES YES YES YES YES NO NO NO NO Company Name Cash Flow Statement Company Name Cash Flow Statement Operations Year 2 July Year 3 Year 4 Year 5 August September October November December Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total Net Income Depreciation Expense Amortization Expense (Inc/Dec) in A/R $ 94,072 $ 96,153 $ 98,234 $ 100,342 $ 102,448 $ 104,582 $ 1,117,146 $ 217,461 $ 235,889 $ 254,640 $ 273,714 $ 981,704 $ 186,603 $ 205,253 $ 224,210 $ 243,517 $ 859,582 $ 267,737 2,340 2,340 2,340 2,340 2,340 2,340 28,080 8,474 8,474 8,474 8,474 33,896 9,929 9,929 9,929 9,929 39,716 45,536 2,266 2,266 2,266 2,266 2,266 2,266 27,192 6,797 6,797 6,797 6,797 27,188 6,797 6,797 6,797 6,797 27,188 27,188 (691) (691) (691) (700) (700) (708) (8,222) (1,417) (2,158) (2,196) (2,233) (8,004) (2.274) (2,316) (2,353) (2,397) (9,340) (5,948) (Inc/Dec) in Inventory (136) (137) (137) (138) (138) (141) (1,886) (4,337) (497) (507) (515) (5,856) (4,794) (609) (618) (631) (6,652) (11,327) (Inc/Dec) in A/P 137 137 137 138 139 140 1,886 4,337 497 507 515 5,856 4,794 609 618 631 6,652 11,327 Net Cash Flow from Operations $ 97,987 $ 100,067 $ 102,149 $ 104,248 $ 106,355 $ 108,479 $ 1,164,195 $ 231,315 $ 249,002 $ 267,715 $ 286,752 $ 1,034,784 $ 201,055 $ 219,663 $ 238,583 $ 257,846 $ 917,146 $ 334,513 Investing Activities Cash Paid for Fixed Assets $ $ $ $ $ $ $ - (44,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) Cash Paid for Intangible Assets Net Cash Flow from Investing $ $ $ $ $ (44,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) $ $ $ $ (29,100) $ (29,100) Financing Activities Cash from Founders $ Cash from Angel Investor $ $ $ $ $ $ $ $ $ $ $ $ Dividends to Shareholders Net Cash Flow from Financing $ $ $ Net Change in Cash $ 97,987 $ 100,067 $ 102,149 $ 104,248 $ 106,355 $ 108,479 $ 1,120,095 $ Beginning Cash Balance 562,288 660,275 760,342 862,491 966,739 1,073,094 61,478 1,181,573 1,383,788 202,215 $ 249,002 $ 267,715 $ 286,752 $ 1,005,684 $ 1,632,790 1,900,505 171,955 $ 219,663 $ 238,583 $ 257,846 $ 888,046 $ 305,413 1,181,573 2,187,257 2,359,212 2,578,875 2,817,457 2,187,257 3,075,303 Ending Cash Balance $ 660,275 $ 760,342 $ 862,491 $ 966,739 $1,073,094 $ 1,181,573 $ 1,181,573 $ 1,383,788 $ 1,632,790 $ 1,900,505 $ 2,187,257 $ 2,187,257 $ 2,359,212 $2,578,875 $ 2,817,457 $ 3,075,303 $ 3,075,303 $ 3,380,716 Minimum Cash Reserve Do we fall below the minimum? 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO A. Desired Financing: Review the cash flow projections and your estimate of how much money is required over the next few years to carry out the development and/or expansion of your business as described. Determine the amount and timing of cash infusions required to prevent cash balances from going negative. Add a cash safety cushion (~25% as a good "guesstimate") to the anticipated cash needs to protect against unexpected expenses or delayed income. Determine the type of funding that will suit your business: debt/equity or non-traditional financing. Indicate how this capital requirement will be obtained -- from whom and how much will be obtained via term loans or lines of credit. B. Offering (this is the deal structure - your pitch for money): If you have decided to seek equity capital, then you need to describe the type of security being offered (e.g., common stock, convertible debentures, debt with warrants, debt plus stock), the unit price, and the total amount of securities to be sold in this offering. If securities are not just common stock, indicate by type, interest, maturity, and conversion conditions. Show what share (i.e. the percentage) of the company that the investor will hold for that amount of money or after exercise of any stock conversion/ purchase rights (for convertible debentures or warrants).. Securities sold through a private placement (and therefore exempt from SEC registration) should include the following statement in this section: "The shares being sold pursuant to this offering are restricted securities and may not be resold readily. The prospective investor should recognize that such securities might be restricted as to resale for indefinite period of time. Each purchaser will be required to execute a Non-Distribution Agreement satisfactory in form to corporate counsel". If you are seeking a loan, then you need to indicate to the potential lender how the loan will be repaid and what the interest rate is. What is the collateral for the loan? C. Capitalization: Present the current and proposed (post-offering) number of outstanding shares of common stock. Indicate any shares offered by key management people and show the number of shares that they will hold after completion of the proposed financing. Indicate how many shares of common stock will remain un-issued after the offering and how many of these will be reserved for stock options for future key employees. Identify any other terms that you are willing to negotiate as part of the deal e.g. right of first refusal, seat on board, voting rights, and other rights and preferences. 30 D. Use of Funds: Investors like to know how their money is going to be spent. Provide a brief description of how the capital raised will be used. Summarize as specifically as possible what amount will be used for such things as product design and development, capital equipment, marketing, and general working capital needs. E. Investors' Return (Exit Strategy): What is the value of your company? How did you calculate this value? Indicate how your valuation and proposed ownership shares will result in the desired rate of return for the investors you have targeted. What will be the likely harvest or exit mechanism (IPO, outright sale, merger, MBO, operate and grow, etc.)? What is the exit strategy for the investors and founders?