jSpan Corporation
Appendix
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 | ||
Operations | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $15,000 | $17,500 | $17,500 | $20,000 | $21,500 | $26,000 | $26,000 | $26,000 |
Engineering | 0% | $0 | $0 | $0 | $0 | $3,000 | $8,000 | $13,000 | $13,000 | $13,000 | $16,000 | $16,000 | $16,000 |
Sales & Marketing | 0% | $0 | $0 | $0 | $0 | $0 | $5,000 | $8,000 | $13,000 | $16,000 | $16,000 | $16,000 | $16,000 |
Administration | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $12,000 | $14,000 | $17,000 | $25,333 | $25,333 | $25,333 | $25,333 |
Total People | 2 | 2 | 2 | 2 | 4 | 8 | 10 | 13 | 18 | 20 | 21 | 21 | |
Total Payroll | $20,000 | $20,000 | $20,000 | $20,000 | $28,000 | $42,500 | $52,500 | $63,000 | $75,833 | $83,333 | $83,333 | $83,333 |
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 | |||||||||||||
jSpan Customers | 0% | $0 | $0 | $0 | $744 | $744 | $744 | $1,594 | $2,125 | $2,656 | $4,250 | $7,756 | $18,488 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $0 | $744 | $744 | $744 | $1,594 | $2,125 | $2,656 | $4,250 | $7,756 | $18,488 | |
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 | |
jSpan Customers | $0 | $0 | $0 | $7,841 | $7,841 | $7,841 | $16,803 | $22,404 | $28,005 | $44,808 | $81,775 | $194,922 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $7,841 | $7,841 | $7,841 | $16,803 | $22,404 | $28,005 | $44,808 | $81,775 | $194,922 |
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 | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |
Long-term Interest Rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |
Tax Rate | 30.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
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 | $0 | $0 | $744 | $744 | $744 | $1,594 | $2,125 | $2,656 | $4,250 | $7,756 | $18,488 | |
Direct Cost of Sales | $0 | $0 | $0 | $7,841 | $7,841 | $7,841 | $16,803 | $22,404 | $28,005 | $44,808 | $81,775 | $194,922 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $7,841 | $7,841 | $7,841 | $16,803 | $22,404 | $28,005 | $44,808 | $81,775 | $194,922 | |
Gross Margin | $0 | $0 | $0 | ($7,098) | ($7,098) | ($7,098) | ($15,209) | ($20,279) | ($25,349) | ($40,558) | ($74,018) | ($176,434) | |
Gross Margin % | 0.00% | 0.00% | 0.00% | -954.31% | -954.31% | -954.31% | -954.31% | -954.31% | -954.31% | -954.31% | -954.31% | -954.34% | |
Expenses | |||||||||||||
Payroll | $20,000 | $20,000 | $20,000 | $20,000 | $28,000 | $42,500 | $52,500 | $63,000 | $75,833 | $83,333 | $83,333 | $83,333 | |
Sales and Marketing and Other Expenses | $156,500 | $156,500 | $156,500 | $157,000 | $160,400 | $157,000 | $157,500 | $157,500 | $157,500 | $157,580 | $159,150 | $161,467 | |
Depreciation | $0 | $0 | $0 | $0 | $5,041 | $5,041 | $5,041 | $5,041 | $5,041 | $5,041 | $5,041 | $5,041 | |
Bank Charges | $0 | $0 | $0 | $37 | $37 | $37 | $80 | $106 | $133 | $214 | $386 | $928 | |
Insurance | $15,000 | $0 | $0 | $15,000 | $0 | $0 | $15,000 | $0 | $0 | $15,000 | $0 | $0 | |
Rent | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Payroll Taxes | 15% | $3,000 | $3,000 | $3,000 | $3,000 | $4,200 | $6,375 | $7,875 | $9,450 | $11,375 | $12,500 | $12,500 | $12,500 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $195,500 | $180,500 | $180,500 | $196,037 | $198,678 | $211,953 | $238,996 | $236,097 | $250,882 | $274,668 | $261,410 | $264,269 | |
Profit Before Interest and Taxes | ($195,500) | ($180,500) | ($180,500) | ($203,135) | ($205,776) | ($219,051) | ($254,205) | ($256,376) | ($276,231) | ($315,226) | ($335,428) | ($440,703) | |
EBITDA | ($195,500) | ($180,500) | ($180,500) | ($203,135) | ($200,735) | ($214,010) | ($249,164) | ($251,335) | ($271,190) | ($310,185) | ($330,387) | ($435,662) | |
Interest Expense | $664 | $1,637 | $1,637 | $1,637 | $1,637 | $1,637 | $1,637 | $1,637 | $1,637 | $2,820 | $3,582 | $2,917 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($196,164) | ($182,137) | ($182,137) | ($204,772) | ($207,413) | ($220,688) | ($255,842) | ($258,013) | ($277,867) | ($318,046) | ($339,010) | ($443,620) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | -27532.32% | -27887.41% | -29672.28% | -16052.81% | -12141.79% | -10460.89% | -7483.43% | -4370.80% | -2399.57% |
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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $25 | $744 | $744 | $772 | $1,611 | $2,143 | $2,709 | $4,367 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $25 | $744 | $744 | $772 | $1,611 | $2,143 | $2,709 | $4,367 | |
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 | $93,792 | $137,282 | $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 | $167,000 | $107,565 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $1,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $503,050 | $0 | $0 | $3,200,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $598,342 | $137,282 | $0 | $3,200,000 | $25 | $744 | $744 | $772 | $1,611 | $169,143 | $110,274 | $4,367 | |
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 | $20,000 | $20,000 | $20,000 | $20,000 | $28,000 | $42,500 | $52,500 | $63,000 | $75,833 | $83,333 | $83,333 | $83,333 | |
Bill Payments | $5,872 | $175,697 | $162,137 | $162,916 | $185,169 | $175,075 | $174,757 | $199,635 | $192,349 | $200,792 | $234,737 | $262,237 | |
Subtotal Spent on Operations | $25,872 | $195,697 | $182,137 | $182,916 | $213,169 | $217,575 | $227,257 | $262,635 | $268,182 | $284,125 | $318,070 | $345,570 | |
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 | $93,792 | |
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 | $605,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $25,872 | $195,697 | $182,137 | $787,916 | $213,169 | $217,575 | $227,257 | $262,635 | $268,182 | $284,125 | $318,070 | $439,362 | |
Net Cash Flow | $572,470 | ($58,415) | ($182,137) | $2,412,084 | ($213,144) | ($216,831) | ($226,513) | ($261,862) | ($266,570) | ($114,982) | ($207,796) | ($434,995) | |
Cash Balance | $1,070,970 | $1,012,555 | $830,418 | $3,242,502 | $3,029,358 | $2,812,528 | $2,586,014 | $2,324,152 | $2,057,581 | $1,942,599 | $1,734,803 | $1,299,808 |
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 | $498,500 | $1,070,970 | $1,012,555 | $830,418 | $3,242,502 | $3,029,358 | $2,812,528 | $2,586,014 | $2,324,152 | $2,057,581 | $1,942,599 | $1,734,803 | $1,299,808 |
Accounts Receivable | $0 | $0 | $0 | $0 | $744 | $1,463 | $1,463 | $2,313 | $3,666 | $4,710 | $6,818 | $11,865 | $25,985 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $498,500 | $1,070,970 | $1,012,555 | $830,418 | $3,243,246 | $3,030,821 | $2,813,990 | $2,588,327 | $2,327,817 | $2,062,292 | $1,949,417 | $1,746,668 | $1,325,793 |
Long-term Assets | |||||||||||||
Long-term Assets | $1,500 | $0 | $0 | $0 | $605,000 | $605,000 | $605,000 | $605,000 | $605,000 | $605,000 | $605,000 | $605,000 | $605,000 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $5,041 | $10,082 | $15,123 | $20,164 | $25,205 | $30,246 | $35,287 | $40,328 |
Total Long-term Assets | $1,500 | $0 | $0 | $0 | $605,000 | $599,959 | $594,918 | $589,877 | $584,836 | $579,795 | $574,754 | $569,713 | $564,672 |
Total Assets | $500,000 | $1,070,970 | $1,012,555 | $830,418 | $3,848,246 | $3,630,780 | $3,408,908 | $3,178,204 | $2,912,653 | $2,642,087 | $2,524,171 | $2,316,381 | $1,890,465 |
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 | $170,292 | $156,732 | $156,732 | $179,332 | $169,278 | $168,094 | $193,231 | $185,694 | $192,995 | $226,124 | $249,779 | $361,276 |
Current Borrowing | $0 | $93,792 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $231,074 | $137,282 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $264,084 | $387,806 | $387,806 | $410,406 | $400,352 | $399,168 | $424,305 | $416,768 | $424,069 | $457,198 | $480,853 | $498,558 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $167,000 | $274,565 | $274,565 |
Total Liabilities | $0 | $264,084 | $387,806 | $387,806 | $410,406 | $400,352 | $399,168 | $424,305 | $416,768 | $424,069 | $624,198 | $755,418 | $773,123 |
Paid-in Capital | $500,000 | $1,003,050 | $1,003,050 | $1,003,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 | $4,203,050 |
Retained Earnings | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Earnings | $0 | ($196,164) | ($378,301) | ($560,438) | ($765,210) | ($972,622) | ($1,193,310) | ($1,449,151) | ($1,707,164) | ($1,985,032) | ($2,303,077) | ($2,642,087) | ($3,085,708) |
Total Capital | $500,000 | $806,886 | $624,749 | $442,612 | $3,437,840 | $3,230,428 | $3,009,740 | $2,753,899 | $2,495,886 | $2,218,018 | $1,899,973 | $1,560,963 | $1,117,342 |
Total Liabilities and Capital | $500,000 | $1,070,970 | $1,012,555 | $830,418 | $3,848,246 | $3,630,780 | $3,408,908 | $3,178,204 | $2,912,653 | $2,642,087 | $2,524,171 | $2,316,381 | $1,890,465 |
Net Worth | $500,000 | $806,886 | $624,749 | $442,612 | $3,437,840 | $3,230,428 | $3,009,740 | $2,753,899 | $2,495,886 | $2,218,018 | $1,899,973 | $1,560,963 | $1,117,342 |