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Rule 829(g) SBSEF-FIN-REQ 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 (in millions)

   Mar. 31, 2023  Dec. 31, 2022
Assets      
Current Assets          
  Cash and cash equivalents  $570    280 
  Restricted cash  500    500 
  Prepaid expenses  500   500 
    Total current assets  1,570   1,280 
Property and equipment, net   20    20 
Right of use assets, operating  4   4 
Other assets  6    6 
Total Assets   1,600    1,310 
Liabilities          
  Current Liabilities          
   Accounts payable   400    400 
   Accrued expenses   8    8 
      Total current liabilities    408    408 
Lease obligations, operating   52    52 
Other liabilities   52,000    52,000 
Total Liabilities   464    464 
  Common stock   1    1 
  Retained Earnings   1,135    845 
Total Stockholders' Equity   1,136    846 
Total Liabilities and Shareholders' Equity  $1,600    1,310 

 

Income and Expense Statement (in millions)

   3 Months ended
Mar. 31, 2023
 

3 Months ended

Mar. 31, 2022

Revenue  $980   $980 
Operating Expenses          
  Compensation & benefits  $150    150 
  Professional services  $100    100 
  Other expenses  $500    500 
    Total Operating Expenses  $750    750 
Other non-operating income   60     60  
Net Income (Loss)  $290   290

 

Statement of Cash Flows (in millions)

  

3 Months ended

Dec. 31, 2023

 
Net income  $290      
Net Changes in other assets   0      
Net cash provided by operating activities   290      
Net cash provided by investing activities    0      
Net cash provided by financing activities   0      
Changes in cash, cash equivalents and restricted cash  $290     
Cash, cash equivalents and restricted cash, beginning of period  $780   
Cash, cash equivalents and restricted cash, end of period  $1,070