Ereidi Farm
Company Summary
Ereidi Farm, Inc. is a subchapter S corporation (incorporation is in progress at this time) currently located in Schwenksville, Pennsylvania. Ereidi Farm began as a part-time business when its owner’s only child was a toddler. Ereidi Farm’s owner has worked within the horse industry for over twenty years and the services offered by the farm are in high demand.
Due to changes in Pennsylvania’s thoroughbred racing program, the demand for quality services has escalated dramatically. After the planned purchase of our new facility is complete, we will relocate to Pine Grove, Pennsylvania. The farm offers exceptional “Full Circle” services to owners and breeders of thoroughbred bloodstock. Our specialty is our highly individualized training and care programs with a strong focus on client communications and education. We are committed to the success of our clients’ thoroughbred investments and go above and beyond the normal requirements to secure the best opportunities for our clients and their horses.
2.1 Company Ownership
Ereidi Farm was formed as a sole proprietorship by its current owner, Heidi Trimbur. Current growth patterns of the farm have made it prudent to incorporate and its new subchapter S corporation status is now pending. The business remains a private entity, held by its owner.
2.2 Company History
The owner of Ereidi Farm, in addition to being formally educated in equine science and management, has worked within the equine industry for over 20 years. Ereidi Farm was officially formed as a thoroughbred facility three years ago. The farm, despite being a part-time venture at start-up, as the owner’s child was a toddler, held close to the break-even point in its first year.
Second year sales were directly affected by the events of September 11, 2001 as the Fall yearling thoroughbred sales began on September 10th of that year. Despite this loss, Ereidi Farm came back strong in 2002, generating a profit and sales have been profitable in 2003 with the farm’s largest sales quarter in the Fall.
The need for expansion has become obvious as the farm has had to turn clients away due to lack of space at its current location. With the pending growth of Pennsylvania’s thoroughbred industry poised to enter an extremely lucrative period, expansion strategy and its timing have become top priorities of the farm.
| Past Performance | |||
| FY 2001 | FY 2002 | FY 2003 | |
| Sales | $20,485 | $50,905 | $19,347 |
| Gross Margin | $20,485 | $50,905 | $19,347 |
| Gross Margin % | 100.00% | 100.00% | 100.00% |
| Operating Expenses | $35,144 | $45,863 | $17,000 |
| Collection Period (days) | 0 | 0 | 0 |
| Balance Sheet | |||
| FY 2001 | FY 2002 | FY 2003 | |
| Current Assets | |||
| Cash | $2,000 | $9,192 | $3,282 |
| Accounts Receivable | $0 | $0 | $12,937 |
| Other Current Assets | $79,300 | $85,485 | $87,684 |
| Total Current Assets | $81,300 | $94,677 | $103,903 |
| Long-term Assets | |||
| Long-term Assets | $480,000 | $480,000 | $490,000 |
| Accumulated Depreciation | $5,815 | $5,616 | $2,800 |
| Total Long-term Assets | $474,185 | $474,384 | $487,200 |
| Total Assets | $555,485 | $569,061 | $591,103 |
| Current Liabilities | |||
| Accounts Payable | $0 | $0 | $0 |
| Current Borrowing | $0 | $4,300 | $13,000 |
| Other Current Liabilities (interest free) | $0 | $0 | $0 |
| Total Current Liabilities | $0 | $4,300 | $13,000 |
| Long-term Liabilities | $200,000 | $195,000 | $193,000 |
| Total Liabilities | $200,000 | $199,300 | $206,000 |
| Paid-in Capital | $0 | $0 | $0 |
| Retained Earnings | $355,485 | $369,761 | $385,103 |
| Earnings | $0 | $0 | $0 |
| Total Capital | $355,485 | $369,761 | $385,103 |
| Total Capital and Liabilities | $555,485 | $569,061 | $591,103 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 0 |
| Sales on Credit | $0 | $0 | $0 |
| Receivables Turnover | 0.00 | 0.00 | 0.00 |
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