O'Connor & Partners
Appendix
| Sales Forecast | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | |||||||||||||
| Chemical manufacturing | 0% | $4,800 | $5,040 | $5,292 | $5,557 | $5,834 | $6,126 | $6,432 | $6,754 | $7,092 | $7,446 | $7,819 | $8,210 |
| Biorefinery start-ups | 0% | $2,400 | $2,640 | $2,904 | $3,194 | $3,514 | $3,865 | $4,252 | $4,677 | $5,145 | $5,659 | $6,225 | $6,847 |
| Agricultural | 0% | $1,200 | $1,260 | $1,323 | $1,389 | $1,459 | $1,532 | $1,608 | $1,689 | $1,773 | $1,862 | $1,955 | $2,052 |
| Utilities | 0% | $2,400 | $2,520 | $2,646 | $2,778 | $2,917 | $3,063 | $3,216 | $3,377 | $3,546 | $3,723 | $3,909 | $4,105 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $10,800 | $11,460 | $12,165 | $12,918 | $13,724 | $14,586 | $15,509 | $16,497 | $17,555 | $18,690 | $19,908 | $21,214 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Supplies | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Sales & Marketing | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Interest & Depreciation | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Overhead | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Personnel Plan | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Ryan O’Connor | 0% | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| General Assumptions | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| Long-term Interest Rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |
| Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and 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 | ||
| Sales | $10,800 | $11,460 | $12,165 | $12,918 | $13,724 | $14,586 | $15,509 | $16,497 | $17,555 | $18,690 | $19,908 | $21,214 | |
| Direct Cost of Sales | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Gross Margin | $4,800 | $5,460 | $6,165 | $6,918 | $7,724 | $8,586 | $9,509 | $10,497 | $11,555 | $12,690 | $13,908 | $15,214 | |
| Gross Margin % | 44.44% | 47.64% | 50.68% | 53.55% | 56.28% | 58.86% | 61.31% | 63.63% | 65.82% | 67.90% | 69.86% | 71.72% | |
| Expenses | |||||||||||||
| Payroll | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Payroll Taxes | 15% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | $9,200 | |
| Profit Before Interest and Taxes | ($4,400) | ($3,740) | ($3,035) | ($2,282) | ($1,476) | ($614) | $309 | $1,297 | $2,355 | $3,490 | $4,708 | $6,014 | |
| EBITDA | ($4,400) | ($3,740) | ($3,035) | ($2,282) | ($1,476) | ($614) | $309 | $1,297 | $2,355 | $3,490 | $4,708 | $6,014 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | ($1,320) | ($935) | ($759) | ($570) | ($369) | ($154) | $77 | $324 | $589 | $873 | $1,177 | $1,504 | |
| Other Income | |||||||||||||
| Interest Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Income Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Other Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Expense | |||||||||||||
| Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Expense Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Other Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Other Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($3,080) | ($2,805) | ($2,276) | ($1,711) | ($1,107) | ($461) | $231 | $972 | $1,766 | $2,618 | $3,531 | $4,511 | |
| Net Profit/Sales | -28.52% | -24.48% | -18.71% | -13.25% | -8.07% | -3.16% | 1.49% | 5.89% | 10.06% | 14.01% | 17.74% | 21.26% | |
| Pro Forma 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 | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $2,700 | $2,865 | $3,041 | $3,230 | $3,431 | $3,646 | $3,877 | $4,124 | $4,389 | $4,673 | $4,977 | $5,304 | |
| Cash from Receivables | $0 | $270 | $8,117 | $8,613 | $9,143 | $9,709 | $10,315 | $10,963 | $11,656 | $12,399 | $13,195 | $14,048 | |
| Subtotal Cash from Operations | $2,700 | $3,135 | $11,158 | $11,842 | $12,574 | $13,355 | $14,192 | $15,087 | $16,045 | $17,071 | $18,172 | $19,352 | |
| Additional Cash Received | |||||||||||||
| Non Operating (Other) Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $2,700 | $3,135 | $11,158 | $11,842 | $12,574 | $13,355 | $14,192 | $15,087 | $16,045 | $17,071 | $18,172 | $19,352 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Bill Payments | $196 | $5,893 | $6,271 | $6,448 | $6,636 | $6,838 | $7,054 | $7,285 | $7,533 | $7,798 | $8,083 | $8,388 | |
| Subtotal Spent on Operations | $8,196 | $13,893 | $14,271 | $14,448 | $14,636 | $14,838 | $15,054 | $15,285 | $15,533 | $15,798 | $16,083 | $16,388 | |
| Additional Cash Spent | |||||||||||||
| Non Operating (Other) Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $8,196 | $13,893 | $14,271 | $14,448 | $14,636 | $14,838 | $15,054 | $15,285 | $15,533 | $15,798 | $16,083 | $16,388 | |
| Net Cash Flow | ($5,496) | ($10,758) | ($3,113) | ($2,605) | ($2,063) | ($1,483) | ($862) | ($199) | $512 | $1,273 | $2,089 | $2,964 | |
| Cash Balance | $34,504 | $23,746 | $20,633 | $18,028 | $15,965 | $14,482 | $13,620 | $13,421 | $13,933 | $15,206 | $17,295 | $20,259 | |
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $40,000 | $34,504 | $23,746 | $20,633 | $18,028 | $15,965 | $14,482 | $13,620 | $13,421 | $13,933 | $15,206 | $17,295 | $20,259 |
| Accounts Receivable | $0 | $8,100 | $16,425 | $17,432 | $18,508 | $19,659 | $20,889 | $22,206 | $23,616 | $25,126 | $26,745 | $28,481 | $30,344 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $40,000 | $42,604 | $40,171 | $38,065 | $36,536 | $35,624 | $35,372 | $35,826 | $37,037 | $39,060 | $41,952 | $45,777 | $50,603 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $40,000 | $42,604 | $40,171 | $38,065 | $36,536 | $35,624 | $35,372 | $35,826 | $37,037 | $39,060 | $41,952 | $45,777 | $50,603 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $5,684 | $6,056 | $6,227 | $6,409 | $6,603 | $6,812 | $7,035 | $7,273 | $7,529 | $7,803 | $8,098 | $8,413 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $5,684 | $6,056 | $6,227 | $6,409 | $6,603 | $6,812 | $7,035 | $7,273 | $7,529 | $7,803 | $8,098 | $8,413 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $5,684 | $6,056 | $6,227 | $6,409 | $6,603 | $6,812 | $7,035 | $7,273 | $7,529 | $7,803 | $8,098 | $8,413 |
| Paid-in Capital | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Retained Earnings | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) | ($10,000) |
| Earnings | $0 | ($3,080) | ($5,885) | ($8,161) | ($9,872) | ($10,979) | ($11,440) | ($11,208) | ($10,236) | ($8,470) | ($5,852) | ($2,321) | $2,190 |
| Total Capital | $40,000 | $36,920 | $34,115 | $31,839 | $30,128 | $29,021 | $28,560 | $28,792 | $29,764 | $31,530 | $34,148 | $37,679 | $42,190 |
| Total Liabilities and Capital | $40,000 | $42,604 | $40,171 | $38,065 | $36,536 | $35,624 | $35,372 | $35,826 | $37,037 | $39,060 | $41,952 | $45,777 | $50,603 |
| Net Worth | $40,000 | $36,920 | $34,115 | $31,839 | $30,128 | $29,021 | $28,560 | $28,792 | $29,764 | $31,530 | $34,148 | $37,679 | $42,190 |
By 
