Good Earth Resources
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 | ||
| Unit Sales | |||||||||||||
| 690 tons/day x 26 days | 0% | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 | 17,940 |
| 250 tons/day x 22 days | 0% | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 | 5,500 |
| Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Unit Sales | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | 23,440 | |
| Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| 690 tons/day x 26 days | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | |
| 250 tons/day x 22 days | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | |
| Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
| Sales | |||||||||||||
| 690 tons/day x 26 days | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | $430,560 | |
| 250 tons/day x 22 days | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Sales | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | |
| Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| 690 tons/day x 26 days | 0.00% | $2.08 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 |
| 250 tons/day x 22 days | 0.00% | $2.27 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 | $0.15 |
| Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Direct Cost of Sales | |||||||||||||
| 690 tons/day x 26 days | $37,396 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | $2,393 | |
| 250 tons/day x 22 days | $12,500 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $49,896 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | |
| 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 | ||
| Office Clerks (2) @$76.00/Day | 0% | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 | $3,952 |
| Operators (6) @ $100/day | 0% | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 | $15,600 |
| Laborers (1) @ $80/day | 0% | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 | $2,080 |
| Maintenance Mechanic (1) @ $100/day | 0% | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 |
| Supervisors (3) @ $140/day | 0% | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 | $10,920 |
| Managers (2) @ $5000/month | 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 |
| Total People | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | |
| Total Payroll | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | |
| 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 | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
| Long-term Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
| 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 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | |
| Direct Cost of Sales | $49,896 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | |
| Geothermal Mat | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $49,896 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | $3,193 | |
| Gross Margin | $479,664 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | $526,367 | |
| Gross Margin % | 90.58% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | 99.40% | |
| Expenses | |||||||||||||
| Payroll | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | |
| Sales and Marketing and Other Expenses | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $157,659 | $167,659 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Truck Rental | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | $23,400 | |
| Utilities | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Insurance | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | $5,366 | |
| Telephone | $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 | 44% | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 | $19,867 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $253,644 | $263,644 | |
| Profit Before Interest and Taxes | $226,020 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $262,723 | |
| EBITDA | $226,020 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $272,723 | $262,723 | |
| Interest Expense | $249 | $860 | $1,470 | $2,081 | $2,691 | $3,302 | $3,913 | $4,523 | $5,134 | $5,744 | $6,355 | $6,965 | |
| Taxes Incurred | $67,731 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | $158,040 | $271,863 | $271,252 | $270,642 | $270,031 | $269,421 | $268,810 | $268,200 | $267,589 | $266,979 | $266,368 | $255,758 | |
| Net Profit/Sales | 29.84% | 51.34% | 51.22% | 51.11% | 50.99% | 50.88% | 50.76% | 50.65% | 50.53% | 50.42% | 50.30% | 48.30% | |
| 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 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | $132,390 | |
| Cash from Receivables | $0 | $13,239 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | $397,170 | |
| Subtotal Cash from Operations | $132,390 | $145,629 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | $529,560 | |
| 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 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | $54,190 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | $37,391 | |
| 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 | $5,848,000 | $1,700,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $6,017,781 | $1,937,210 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | $621,141 | |
| 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 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | $45,152 | |
| Bill Payments | $10,879 | $322,574 | $212,565 | $213,176 | $213,786 | $214,397 | $215,008 | $215,618 | $216,229 | $216,839 | $217,450 | $218,394 | |
| Subtotal Spent on Operations | $56,031 | $367,726 | $257,717 | $258,328 | $258,938 | $259,549 | $260,160 | $260,770 | $261,381 | $261,991 | $262,602 | $263,546 | |
| 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 | $3,500,000 | $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 | $2,422,018 | $319,933 | $150,833 | $218,833 | $145,833 | $196,033 | $465,833 | $220,133 | $313,333 | $13,333 | $278,083 | $258,083 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $5,978,049 | $687,659 | $408,550 | $477,161 | $404,771 | $455,582 | $725,993 | $480,903 | $574,714 | $275,324 | $540,685 | $521,629 | |
| Net Cash Flow | $39,732 | $1,249,551 | $212,591 | $143,980 | $216,370 | $165,559 | ($104,852) | $140,238 | $46,427 | $345,817 | $80,456 | $99,512 | |
| Cash Balance | $169,060 | $1,418,611 | $1,631,202 | $1,775,182 | $1,991,551 | $2,157,110 | $2,052,259 | $2,192,497 | $2,238,924 | $2,584,741 | $2,665,197 | $2,764,710 | |
| 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 | $129,328 | $169,060 | $1,418,611 | $1,631,202 | $1,775,182 | $1,991,551 | $2,157,110 | $2,052,259 | $2,192,497 | $2,238,924 | $2,584,741 | $2,665,197 | $2,764,710 |
| Accounts Receivable | $0 | $397,170 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 | $781,101 |
| Other Current Assets | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 |
| Total Current Assets | $479,328 | $916,230 | $2,549,712 | $2,762,303 | $2,906,283 | $3,122,652 | $3,288,211 | $3,183,360 | $3,323,598 | $3,370,025 | $3,715,842 | $3,796,298 | $3,895,811 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $7,000,000 | $9,422,018 | $9,741,951 | $9,892,784 | $10,111,617 | $10,257,450 | $10,453,483 | $10,919,316 | $11,139,449 | $11,452,782 | $11,466,115 | $11,744,198 | $12,002,281 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $7,000,000 | $9,422,018 | $9,741,951 | $9,892,784 | $10,111,617 | $10,257,450 | $10,453,483 | $10,919,316 | $11,139,449 | $11,452,782 | $11,466,115 | $11,744,198 | $12,002,281 |
| Total Assets | $7,479,328 | $10,338,248 | $12,291,663 | $12,655,087 | $13,017,900 | $13,380,102 | $13,741,694 | $14,102,676 | $14,463,047 | $14,822,807 | $15,181,957 | $15,540,496 | $15,898,092 |
| 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 | $315,489 | $205,460 | $206,050 | $206,641 | $207,231 | $207,821 | $208,411 | $209,001 | $209,592 | $210,182 | $210,772 | $221,029 |
| Current Borrowing | $3,500,000 | $0 | $54,190 | $108,380 | $162,570 | $216,760 | $270,950 | $325,140 | $379,330 | $433,520 | $487,710 | $541,900 | $596,090 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $3,500,000 | $315,489 | $259,650 | $314,430 | $369,211 | $423,991 | $478,771 | $533,551 | $588,331 | $643,112 | $697,892 | $752,672 | $817,119 |
| Long-term Liabilities | $0 | $37,391 | $74,782 | $112,173 | $149,564 | $186,955 | $224,346 | $261,737 | $299,128 | $336,519 | $373,910 | $411,301 | $448,692 |
| Total Liabilities | $3,500,000 | $352,880 | $334,432 | $426,603 | $518,775 | $610,946 | $703,117 | $795,288 | $887,459 | $979,631 | $1,071,802 | $1,163,973 | $1,265,811 |
| Paid-in Capital | $4,000,000 | $9,848,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 | $11,548,000 |
| Retained Earnings | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) | ($20,672) |
| Earnings | $0 | $158,040 | $429,903 | $701,155 | $971,797 | $1,241,828 | $1,511,249 | $1,780,060 | $2,048,259 | $2,315,848 | $2,582,827 | $2,849,195 | $3,104,953 |
| Total Capital | $3,979,328 | $9,985,368 | $11,957,231 | $12,228,483 | $12,499,125 | $12,769,156 | $13,038,577 | $13,307,388 | $13,575,587 | $13,843,176 | $14,110,155 | $14,376,523 | $14,632,281 |
| Total Liabilities and Capital | $7,479,328 | $10,338,248 | $12,291,663 | $12,655,087 | $13,017,900 | $13,380,102 | $13,741,694 | $14,102,676 | $14,463,047 | $14,822,807 | $15,181,957 | $15,540,496 | $15,898,092 |
| Net Worth | $3,979,328 | $9,985,368 | $11,957,231 | $12,228,483 | $12,499,125 | $12,769,156 | $13,038,577 | $13,307,388 | $13,575,587 | $13,843,176 | $14,110,155 | $14,376,523 | $14,632,281 |
