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Rule 829(g) SBSEF-FIN-QTR Financial Report Mockup 

THIS DOCUMENT IS A TECHNICAL ILLUSTRATION OF HOW CERTAIN DISCLOSURES IN SEC FILINGS ARE TO BE TAGGED. IT DOES NOT INDICATE WHICH PARTICULAR DISCLOSURES MUST BE INCLUDED AND/OR TAGGED IN COMMISSION FILINGS, AND IT DOES NOT CONSTITUTE LEGAL GUIDANCE OF ANY SORT.

Financial Resources (Required and Available)

Based on the computation instructions set forth in Rule 829(e) of Regulation SE, we need $15,000,000  in financial resources to fulfill our obligations under Rule 829 (Core Principle 12). We have the following financial resources available to us:

·Revolving Credit Facility  - $25,000,000  market value
·Cash  - $20,000,000  market value
·Dues Receivable  - $1,000,000  market value

 

Expenses

The following is a total list of all of our expenses, without any exclusion:

·Technological expense  - $2,000,000 
·Lease expense  - $3,000,000 
·Advertising expense  - $5,000,000 
·Patent expense  - $10,000,000 

 

Of the above expenses, we have excluded all $5,000,000 in advertising expense  because we do not plan to spend any further resources on advertising. 

Wind-Down Costs

The following is a list of costs we would incur if were to wind down our operations:

·Asset retirement cost  - $2,000,000 
·Severance cost  - $4,000,000 

 

We project that winding down our operations would take 8 months . We base this projection on the outcome of ten separate wind-down simulations that we’ve completed over the past year. 

 

 

Balance Sheet

   Dec. 31, 20x3  Sep. 30, 20x3
Assets      
Cash and cash equivalents  $2,000,000    2,000,000 
Restricted cash  500,000    500,000 
Prepaid expenses  500,000   500,000 
Due from subsidiaries  200,000   200,000 
Right of use assets, operating  4,000,000   4,000,000 
Other assets  6,000    6,000 
Total Assets   7,206,000    7,206,000 
Liabilities and Members' Equity          
Liabilities:          
Accounts payable   400,000    400,000 
Accrued expenses   8,000    8,000 
Lease obligations, operating   4,500,000    4,500,000 
Other liabilities   52,000    52,000 
Total Liabilities   4,900,000    4,900,000 
Total Members' Equity   2,306,000    2,306,000 
Total Liabilities and Members' Equity  $7,206,000    7,206,000 

 

Income and Expense Statement

   12 Months ended
Dec. 31, 20x3
 

3 Months ended

Dec 31, 20x3

Operating Expenses          
Compensation & benefits  $1,000,000    1,000,000 
Professional fees and outside services  $100,000    100,000 
Other expenses  $500,000    500,000 
Total Operating Expenses  $1,600,000    1,600,000 
Non-Operating          
Interest income  $60,000    60,000 
Total Non-Operating  $60,000    60,000 
Net Income (Loss)  $(1,540,000)   (1,540,000)

 

Statement of Cash Flows

  

3 Months ended

Dec. 31, 20x3

 
Cash and cash equivalents  $2,000,000     
Net Income (Loss)  $(1,540,000)   ()
Increase (Decrease) in Cash and Cash Equivalents  $0