Insurance Solutions, LLC
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 | |||||||||||||
| IV-Consumer | 0% | $0 | $20,000 | $25,000 | $31,250 | $39,063 | $48,828 | $61,035 | $75,000 | $85,000 | $92,000 | $100,000 | $130,000 |
| IV – Insurance | 0% | $0 | $0 | $100,000 | $0 | $100,000 | $0 | $0 | $100,000 | $0 | $100,000 | $0 | $100,000 |
| IV – Small Business Lenders | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $100,000 | $0 | $100,000 | $0 | $100,000 |
| IV – Mortgage Providers | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $100,000 | $0 | $0 | $100,000 | $100,000 |
| Maintenance Contracts | 20% | $0 | $4,000 | $25,000 | $6,250 | $27,813 | $9,766 | $12,207 | $75,000 | $17,000 | $58,400 | $40,000 | $86,000 |
| Documents Plus | 0% | $0 | $20,000 | $22,000 | $24,200 | $26,520 | $29,282 | $32,210 | $35,431 | $38,974 | $42,872 | $47,159 | $51,875 |
| Total Sales | $0 | $44,000 | $172,000 | $61,700 | $193,395 | $87,876 | $105,452 | $485,431 | $140,974 | $393,272 | $287,159 | $567,875 | |
| 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 | |
| CD-ROM Production | $0 | $1,320 | $5,160 | $1,851 | $5,802 | $2,636 | $3,164 | $14,563 | $4,229 | $11,798 | $8,615 | $17,036 | |
| Packaging and Shipping | $0 | $2,200 | $8,600 | $3,085 | $9,670 | $4,394 | $5,273 | $24,272 | $7,049 | $19,664 | $14,358 | $28,394 | |
| Subtotal Direct Cost of Sales | $0 | $3,520 | $13,760 | $4,936 | $15,472 | $7,030 | $8,436 | $38,834 | $11,278 | $31,462 | $22,973 | $45,430 | |
| 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 | ||
| Hugh Lloyd-Thomas CEO | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Mark Purowitz COO | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Mark Metcalf, CIO | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Administrative Assistant | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Operations Support | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Technical Assistant | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| HR & Operations Manager | 0% | $0 | $0 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
| Sales Staff | 0% | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 |
| Total People | 8 | 8 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
| Total Payroll | $55,400 | $55,400 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | |
| 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 | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |
| Long-term Interest Rate | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| 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 | $0 | $44,000 | $172,000 | $61,700 | $193,395 | $87,876 | $105,452 | $485,431 | $140,974 | $393,272 | $287,159 | $567,875 | |
| Direct Cost of Sales | $0 | $3,520 | $13,760 | $4,936 | $15,472 | $7,030 | $8,436 | $38,834 | $11,278 | $31,462 | $22,973 | $45,430 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $3,520 | $13,760 | $4,936 | $15,472 | $7,030 | $8,436 | $38,834 | $11,278 | $31,462 | $22,973 | $45,430 | |
| Gross Margin | $0 | $40,480 | $158,240 | $56,764 | $177,923 | $80,846 | $97,016 | $446,597 | $129,696 | $361,810 | $264,186 | $522,445 | |
| Gross Margin % | 0.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | 92.00% | |
| Expenses | |||||||||||||
| Payroll | $55,400 | $55,400 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | |
| Marketing/Promotion | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Web Services Hosting | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Travel | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Stationary and Postage | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Legal Advisory Services | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | |
| Accounting/Tax Advisor | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Property Data Access License Fee | $0 | $0 | $0 | $25,000 | $0 | $0 | $25,000 | $0 | $0 | $25,000 | $0 | $0 | |
| Software Distribution License Fee | $0 | $0 | $25,000 | $0 | $0 | $25,000 | $0 | $0 | $25,000 | $0 | $0 | $0 | |
| Utilities | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Payroll Taxes | 25% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $72,950 | $72,950 | $105,450 | $105,450 | $80,450 | $105,450 | $105,450 | $80,450 | $105,450 | $105,450 | $80,450 | $80,450 | |
| Profit Before Interest and Taxes | ($72,950) | ($32,470) | $52,790 | ($48,686) | $97,473 | ($24,604) | ($8,434) | $366,147 | $24,246 | $256,360 | $183,736 | $441,995 | |
| EBITDA | ($72,950) | ($32,470) | $52,790 | ($48,686) | $97,473 | ($24,604) | ($8,434) | $366,147 | $24,246 | $256,360 | $183,736 | $441,995 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | ($21,885) | ($9,741) | $15,837 | ($14,606) | $29,242 | ($7,381) | ($2,530) | $109,844 | $7,274 | $76,908 | $55,121 | $132,599 | |
| Net Profit | ($51,065) | ($22,729) | $36,953 | ($34,080) | $68,231 | ($17,223) | ($5,904) | $256,303 | $16,972 | $179,452 | $128,615 | $309,397 | |
| Net Profit/Sales | 0.00% | -51.66% | 21.48% | -55.24% | 35.28% | -19.60% | -5.60% | 52.80% | 12.04% | 45.63% | 44.79% | 54.48% | |
| 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 | $0 | $44,000 | $172,000 | $61,700 | $193,395 | $87,876 | $105,452 | $485,431 | $140,974 | $393,272 | $287,159 | $567,875 | |
| Subtotal Cash from Operations | $0 | $44,000 | $172,000 | $61,700 | $193,395 | $87,876 | $105,452 | $485,431 | $140,974 | $393,272 | $287,159 | $567,875 | |
| Additional Cash Received | |||||||||||||
| 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 | $1,000,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $0 | $44,000 | $172,000 | $61,700 | $1,193,395 | $87,876 | $105,452 | $485,431 | $140,974 | $393,272 | $287,159 | $567,875 | |
| 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 | $55,400 | $55,400 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | $62,900 | |
| Bill Payments | ($4,335) | ($3,813) | $13,356 | $70,838 | $33,860 | $61,595 | $42,407 | $52,382 | $162,724 | $64,096 | $149,077 | $98,975 | |
| Subtotal Spent on Operations | $51,065 | $51,587 | $76,256 | $133,738 | $96,760 | $124,495 | $105,307 | $115,282 | $225,624 | $126,996 | $211,977 | $161,875 | |
| Additional Cash Spent | |||||||||||||
| 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 | $50,000 | $0 | $50,000 | $0 | $50,000 | $0 | $50,000 | |
| Subtotal Cash Spent | $51,065 | $51,587 | $76,256 | $133,738 | $96,760 | $174,495 | $105,307 | $165,282 | $225,624 | $176,996 | $211,977 | $211,875 | |
| Net Cash Flow | ($51,065) | ($7,587) | $95,744 | ($72,038) | $1,096,635 | ($86,619) | $145 | $320,149 | ($84,650) | $216,276 | $75,182 | $356,000 | |
| Cash Balance | $52,935 | $45,348 | $141,092 | $69,053 | $1,165,689 | $1,079,070 | $1,079,215 | $1,399,364 | $1,314,714 | $1,530,990 | $1,606,172 | $1,962,172 | |
| 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 | $104,000 | $52,935 | $45,348 | $141,092 | $69,053 | $1,165,689 | $1,079,070 | $1,079,215 | $1,399,364 | $1,314,714 | $1,530,990 | $1,606,172 | $1,962,172 |
| Other Current Assets | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
| Total Current Assets | $119,000 | $67,935 | $60,348 | $156,092 | $84,053 | $1,180,689 | $1,094,070 | $1,094,215 | $1,414,364 | $1,329,714 | $1,545,990 | $1,621,172 | $1,977,172 |
| 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 | $119,000 | $67,935 | $60,348 | $156,092 | $84,053 | $1,180,689 | $1,094,070 | $1,094,215 | $1,414,364 | $1,329,714 | $1,545,990 | $1,621,172 | $1,977,172 |
| 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 | $0 | $15,142 | $73,933 | $35,975 | $64,379 | $44,983 | $51,031 | $164,878 | $63,256 | $150,080 | $96,646 | $193,250 |
| 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 | $0 | $15,142 | $73,933 | $35,975 | $64,379 | $44,983 | $51,031 | $164,878 | $63,256 | $150,080 | $96,646 | $193,250 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $0 | $15,142 | $73,933 | $35,975 | $64,379 | $44,983 | $51,031 | $164,878 | $63,256 | $150,080 | $96,646 | $193,250 |
| Paid-in Capital | $292,250 | $292,250 | $292,250 | $292,250 | $292,250 | $1,292,250 | $1,292,250 | $1,292,250 | $1,292,250 | $1,292,250 | $1,292,250 | $1,292,250 | $1,292,250 |
| Retained Earnings | ($173,250) | ($173,250) | ($173,250) | ($173,250) | ($173,250) | ($173,250) | ($223,250) | ($223,250) | ($273,250) | ($273,250) | ($323,250) | ($323,250) | ($373,250) |
| Earnings | $0 | ($51,065) | ($73,794) | ($36,841) | ($70,921) | ($2,690) | ($19,913) | ($25,817) | $230,486 | $247,458 | $426,910 | $555,526 | $864,922 |
| Total Capital | $119,000 | $67,935 | $45,206 | $82,159 | $48,079 | $1,116,310 | $1,049,087 | $1,043,183 | $1,249,486 | $1,266,458 | $1,395,910 | $1,524,526 | $1,783,922 |
| Total Liabilities and Capital | $119,000 | $67,935 | $60,348 | $156,092 | $84,053 | $1,180,689 | $1,094,070 | $1,094,215 | $1,414,364 | $1,329,714 | $1,545,990 | $1,621,172 | $1,977,172 |
| Net Worth | $119,000 | $67,935 | $45,206 | $82,159 | $48,079 | $1,116,310 | $1,049,087 | $1,043,183 | $1,249,486 | $1,266,458 | $1,395,910 | $1,524,526 | $1,783,922 |
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