Grassroots Wireless
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 | |||||||||||||
| Monthly Internet Service | 0% | $0 | $0 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $0 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 | |
| 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 | |
| Administrative costs | $0 | $0 | $60 | $106 | $127 | $144 | $177 | $194 | $216 | $245 | $266 | $294 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $60 | $106 | $127 | $144 | $177 | $194 | $216 | $245 | $266 | $294 | |
| 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 | ||
| President | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Technician | 0% | $0 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 |
| Administration | 0% | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Total People | 1 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $2,000 | $3,800 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | |
| 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 | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| 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 | $0 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 | |
| Direct Cost of Sales | $0 | $0 | $60 | $106 | $127 | $144 | $177 | $194 | $216 | $245 | $266 | $294 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $0 | $60 | $106 | $127 | $144 | $177 | $194 | $216 | $245 | $266 | $294 | |
| Gross Margin | $0 | $0 | $1,140 | $2,006 | $2,417 | $2,743 | $3,366 | $3,683 | $4,106 | $4,654 | $5,057 | $5,583 | |
| Gross Margin % | 0.00% | 0.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |
| Expenses | |||||||||||||
| Payroll | $2,000 | $3,800 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | |
| Sales and Marketing and Other Expenses | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Depreciation | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | |
| Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Utilities | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
| Insurance | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Payroll Taxes | 15% | $300 | $570 | $795 | $795 | $795 | $795 | $795 | $795 | $795 | $795 | $795 | $795 |
| Other | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Total Operating Expenses | $4,333 | $6,403 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | $8,128 | |
| Profit Before Interest and Taxes | ($4,333) | ($6,403) | ($6,988) | ($6,122) | ($5,711) | ($5,385) | ($4,762) | ($4,445) | ($4,022) | ($3,474) | ($3,071) | ($2,545) | |
| EBITDA | ($4,250) | ($6,320) | ($6,905) | ($6,039) | ($5,628) | ($5,302) | ($4,679) | ($4,362) | ($3,939) | ($3,391) | ($2,988) | ($2,462) | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($4,333) | ($6,403) | ($6,988) | ($6,122) | ($5,711) | ($5,385) | ($4,762) | ($4,445) | ($4,022) | ($3,474) | ($3,071) | ($2,545) | |
| Net Profit/Sales | 0.00% | 0.00% | -582.33% | -289.85% | -224.50% | -186.54% | -134.41% | -114.65% | -93.06% | -70.91% | -57.70% | -43.30% | |
| 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 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 | |
| Subtotal Cash from Operations | $0 | $0 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 | |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $0 | $0 | $1,200 | $2,112 | $2,544 | $2,887 | $3,543 | $3,877 | $4,322 | $4,899 | $5,323 | $5,877 | |
| 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 | $2,000 | $3,800 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | |
| Bill Payments | $75 | $2,259 | $2,530 | $2,807 | $2,851 | $2,873 | $2,890 | $2,923 | $2,940 | $2,962 | $2,991 | $3,012 | |
| Subtotal Spent on Operations | $2,075 | $6,059 | $7,830 | $8,107 | $8,151 | $8,173 | $8,190 | $8,223 | $8,240 | $8,262 | $8,291 | $8,312 | |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $2,075 | $6,059 | $7,830 | $8,107 | $8,151 | $8,173 | $8,190 | $8,223 | $8,240 | $8,262 | $8,291 | $8,312 | |
| Net Cash Flow | ($2,075) | ($6,059) | ($6,630) | ($5,995) | ($5,607) | ($5,286) | ($4,647) | ($4,346) | ($3,918) | ($3,363) | ($2,968) | ($2,435) | |
| Cash Balance | $53,425 | $47,366 | $40,737 | $34,742 | $29,135 | $23,849 | $19,201 | $14,856 | $10,938 | $7,575 | $4,607 | $2,172 | |
| 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 | $55,500 | $53,425 | $47,366 | $40,737 | $34,742 | $29,135 | $23,849 | $19,201 | $14,856 | $10,938 | $7,575 | $4,607 | $2,172 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $55,500 | $53,425 | $47,366 | $40,737 | $34,742 | $29,135 | $23,849 | $19,201 | $14,856 | $10,938 | $7,575 | $4,607 | $2,172 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Accumulated Depreciation | $0 | $83 | $166 | $249 | $332 | $415 | $498 | $581 | $664 | $747 | $830 | $913 | $996 |
| Total Long-term Assets | $5,000 | $4,917 | $4,834 | $4,751 | $4,668 | $4,585 | $4,502 | $4,419 | $4,336 | $4,253 | $4,170 | $4,087 | $4,004 |
| Total Assets | $60,500 | $58,342 | $52,200 | $45,488 | $39,410 | $33,720 | $28,351 | $23,620 | $19,192 | $15,191 | $11,745 | $8,694 | $6,176 |
| 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 | $2,175 | $2,436 | $2,712 | $2,756 | $2,776 | $2,793 | $2,825 | $2,841 | $2,862 | $2,890 | $2,911 | $2,938 |
| 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 | $2,175 | $2,436 | $2,712 | $2,756 | $2,776 | $2,793 | $2,825 | $2,841 | $2,862 | $2,890 | $2,911 | $2,938 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $2,175 | $2,436 | $2,712 | $2,756 | $2,776 | $2,793 | $2,825 | $2,841 | $2,862 | $2,890 | $2,911 | $2,938 |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
| Retained Earnings | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) | ($9,500) |
| Earnings | $0 | ($4,333) | ($10,736) | ($17,724) | ($23,846) | ($29,557) | ($34,942) | ($39,704) | ($44,149) | ($48,171) | ($51,645) | ($54,716) | ($57,261) |
| Total Capital | $60,500 | $56,167 | $49,764 | $42,776 | $36,654 | $30,943 | $25,558 | $20,796 | $16,351 | $12,329 | $8,855 | $5,784 | $3,239 |
| Total Liabilities and Capital | $60,500 | $58,342 | $52,200 | $45,488 | $39,410 | $33,720 | $28,351 | $23,620 | $19,192 | $15,191 | $11,745 | $8,694 | $6,176 |
| Net Worth | $60,500 | $56,167 | $49,764 | $42,776 | $36,654 | $30,943 | $25,558 | $20,796 | $16,351 | $12,329 | $8,855 | $5,784 | $3,239 |
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