The Neptune's Cove Business Plan 2014 by Bianca DeForest

CONFIDENTIAL

The Neptune's Cove BUSINESS PLAN

TO DEVELOP A TROPICAL PARADISE HIDEAWAY, THE FIRST FIVE STAR RESORT IN THE ISLAND, WITH ALL THE AMENITIES, THEREBY CREATING A TROPICAL DREAM

PREPARED APRIL 2014

Contact Information Victor Minca info@theneptunescove.com http://www.theneptunescove.com/

Nassau, The Bahamas 1 786 505 5263

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The Company The Neptune's Cove The Neptuneâ&#x20AC;&#x2122;s Cove was organized on May 22, 2009 as a Delaware Corporation. Through a strategic partnership with Holoday Shores Ltd. a Bahamian Corporation registered in Nassau, The Bahamas, the Company is in the developmental stage of their business plan described below. Under Bahamian law, a Bahamian corporation must own the land on behalf of a U.S. corporation. Thus, this is a strategic partnership to facilitate the business in the Bahamas. All profits will inure to the benefit of the Company and all of its expenses will be paid by the Company. The Company owns two parcels of land in Long Island, one of the 17 named islands of the Bahamas. One is a 25 acre plot in Salt Pond Harbour called "The Neptuneâ&#x20AC;&#x2122;s Cove of Salt Pond Harbour," the other is a 2 acre oceanfront plot in Salt Pond Harbour.

Mission Statement To develop a tropical paradise hideaway, the first five star resort on the Island with all the amenities, thereby creating a tropical dream on the Island, while providing its partners/investors with a substantial return on their investment.

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

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Financial Highlights by Year

Locations and Facilities Our sales and marketing office is located downtown Nassau, Bahamas on the waterfront within 100 feet where all the cruise ships dock, and will be ready for occupancy and for sales presentations in June, 2014. Our on-site office in Long Island, Bahamas, is located at The Long Island Breeze Resort in Salt Pond Harbour.

Objectives Financial •

Capture Sales of $ 5,310,000 and $ 10,840,000 million in Fiscal 2014 and 2015 respectively

•

Obtain Gross Margin of 47% in 2014 and 50% in 2015.

•

Generate, initially, EBIT of 31% by Fiscal 2014 and aggressively pursue 38% by Fiscal 2015

•

Declare dividends starting in 2014.

Operating

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•

Aggressively proceed with offering for sale the 59 lots available on "The Neptune’s Cove of Salt Pond Harbour"

•

Start offering the "Vacation Ownership" Long Island Resort in June 2014

•

Start developing the 155 acres "The Neptune's Cove of Clarence Town" in 2015

Key for Success •

The only five star beach resort on the Island

•

Our quality of service and financing capabilities for our clients

•

Begin delivering our products during calendar 2014

•

Attain operating profit by Fiscal 2014

•

Recruit and train a strong selling force in Nassau for our Vacation Ownership Resort

•

Use our website for worldwide advertising, promotion, marketing and sales

Management Team The Company is led by a senior management team with diverse entrepreneurial experience. This team relies heavily on both its Board of Directors and Advisory Board to bring general business counsel and relevant insight to the development of the project.

The Neptune's Cove, Inc. : Victor Minca, Chairman of the Board, President/CEO. Worked as a banker for 10 years in Europe and a Fashion and Advertising Photographer for top international magazines and advertising agencies worldwide for 10 years. In addition, worked 10 years as GM/VP responsible for sales and marketing for General Development Corp., the largest community developer in Florida in the years 1980 through 1990. Successfully designed and developed various real estate projects in Australia, Florida, Bahamas and Costa Rica while being featured in several international & domestic magazines and newspapers.

Donald Catapano, Executive Vice President and Director. Worked for 10 years for General Development Corp., the largest community developer in Florida in a management position responsible for overseeing 22 offices and Vistana, (a premier Vacation Ownership Community in Orlando). In 1990 became a Corporate Marketing Consultant to various Florida builders, Time-Share Developer and Mortgage Financing. From 1995 started a company CD Trading, Inc. to provide Corporate Management and Marketing Consulting for Public and Private Company. In 2000 opened ARD Holdings, Inc. to provide Consulting Services for the Time-Sharing Industry.

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John McAuliffe, Director, Chief Financial Officer. Simultaneously acquired three MBA's in accounting, finance and computer science. Previously, a part-owner of a consumer service company and a financial manager for private Commercial Real Estate Developers and privately owned food processors. In addition, he worked for 7 years as Vice-President, Finance and Administration of Polygram Records-Publishing Division, an international music company. With his diverse background, he is experienced in start-up and seasoned in developing financial infrastructure of companies. He is also a Professor of Business at two universities in Central Florida and a member of the advisory board of the Disney Entrepreneur center.

Bianca R. Minca, Director, VP, Secretary. BA Marketing/Finance from University of Central Florida. President of Prime Media, Inc, an Advertising and Media Agency. Hold insurance, mortgage and securities licenses.

Holoday Shores Ltd. : James Fox, Holoday Shore Ltd. President, native of Long Island, Bahamas an entrepreneur constantly exploring what Long Island has to offer. This passion prompted him to pursue a career in Real Estate. He holds a Certificate of Membership from the Bahamas Real Estate Association since 2005 and has worked in the Real Estate field for over 8 years. Being married for 27 years with 5 children and 2 grandchildren, family is very important to him making it second nature to offer nothing but the best in service and hospitality to anyone looking to invest in beautiful Long Island.

Cynthia Fox, Holoday Shore Ltd. Secretary Geronimo Ellis, General Sales Manager with 17 years experience in the Vacation Ownership Industry.

Professional Relationship The Company enjoys the counsel, service and advice of the following professional firms:

Legal •

Lockart & Co. Nassau, The Bahamas

•

Monique Gomez, Nassau, The Bahamas

•

Harris Cramer LLP, West Palm Beach, FL USA

•

Mario A. Garcia, P.A. Orlando, FL, USA

Banking

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•

Scotiabank, Nassau, Bahamas

•

Bank of America, Florida, USA

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Advertising/Marketing •

Prime Media, Inc. Miami, FL, USA

Transfer Agent •

Jersey Transfer & Trust Co. NJ, USA

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The Bahamas The Islands

The Islands of The Bahamas is a 100,000-sq-mile archipelago that extends over 500 miles of the clearest water in the world. Our 700 islands, including uninhabited cays and large rocks, total an estimated land area of 5,382 sq miles, and register a highest land elevation of 206 ft. Most notable, however, is that each island has it's own diversity that continues beyond geography, carrying through to the heart of The Bahamas, the Bahamian people. You'll find it in our heritage, in our culture and in the irony of our humble

pride. These are The Islands of The Bahamas. Population: somewhere north of 300,000.

Proximity The 700 islands of The Bahamas are positioned just off the United States' coast of Florida, making this tropical archipelago a quick hop from airports and a short voyage from marinas and cruise ports.

History

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Geography played a crucial role in Bahamian history. In 1492, Christopher Columbus made his first landfall in theNew World on the island of San Salvador in the easternBahamas. After observing the shallow sea around the islands, he said "baja mar" (shallow sea), and effectively named the area The Bahamas, or The Islands of theShallow Sea. Since it was located close to Florida and well-travelled shipping channels, The Islands of The Bahamas caught the attention of explorers, settlers, invaders and traders.

These people shaped the colourful history of The Bahamas and made the country what it is today.

Climate The trade winds that blow almost continually throughout The Islands of The Bahamas give the islands a warm, agreeable climate which varies little year round. The most refreshing time is between September through May,when the temperature averages 70-75F degrees. The rest of the year is a bit warmer with temperatures between 80-85F degrees.

Currency In The Bahamas, the legal tender is the Bahamian dollar (B$1), which is equivalent in value to the US dollar. Even though The Bahamas mint circulate their own legal tender, both U.S. and Bahamian dollars are accepted interchangeably throughout the islands. Visitors from the U.S. enjoy the convenience of not having to exchange currency before leaving for vacation.

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Government As a member of the Commonwealth of Nations The Bahamas recognizes Her Majesty Queen Elizabeth II as Head of State. The Governor-General is Her Majesty's representative in The Bahamas and constitutes a symbol of the nation's unity.

Source: The Bahamas Ministry of Tourism To own property in The Bahamas It has never been easier for non-Bahamians to own property in the Bahamas and for property owners to become Bahamas residents. The 1993 International Persons Landholding Act allows foreigners seeking second homes to buy a house or vacant land of five acres or less without a permit. Owners can then purchase a home owner residence card or, if the property is worth $500,000 or more, apply for permanent residency status. Foreign nationals are encouraged to acquire residential properties in the Bahamas. There are special incentives to build on Family Islands such as Long Island. The island offers a wonderful location for vacation and retirement homes in a relaxing atmosphere with beautiful vistas. Property values are appreciating and provide an extraordinary investment profile. There is currently an exemption on the duty for building materials, so for those who have been thinking about building a second home, this is a great time to do so.

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Long Island

A short flight from Miami to The Bahamas delivers you to Islands beauty and elegance which unfolds before your very eyes. "The Neptune's Cove" is one of the best "Five-star Resort" on the Islands. Enjoy with us your vacations as the owner of a waterfront villa or an ocean view buildable lot in one of our two developments in Salt Pond Harbour, Long Island. Visitors marvel at how this places have retained it's Old World Charm. Thees are the perfect "Getaway" places you have been looking for. Beautiful white beaches, clear aqua waters and a natural sea breeze create an environment for relaxation and serenity. It's a place where days go by uncounted and the bounty of the sea delivers food that tastes out of this

world. A safe, clean, island hideaway far from the busy world most people know.

Two contrasting coastlines make Long Island one of the most scenic Out Island destinations, while the western coast has soft sandy beaches, the eastern side falls down to the ocean in dramatic rocky cliffs and private coves with hidden shell beaches. Never more than 4 miles wide, Long Island, one of Columbus' stopping places, lives up to its name; its Queen Highway runs for close to 80 miles, through some 35 settlements and farming towns where you'll find a small place to stop and eat delicious local

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dishes made from fresh fish and conch. The scenery on the road changes from old buildings surrounded by stone walls and shallow bays on the west coast to rugged headlands that drop off suddenly to the sea on the east coast. The northern end of the island has sea cliffs unique to The Bahamas. Columbus named the island's northern tip Cape Santa Maria, in honor of one of his ships. The area has truly stunning beaches in fact

Cape Santa Maria has one of the worlds top ten beaches.

Columbus Point offers a tremendous view of the protected harbour Columbus sailed into, as well as a monument and plaque commemorating his landing. Long Island's biggest event is the annual Long Island Sailing Regatta, featuring Bahamian made boats. It is held in Salt Pond Harbour in May or June and attracts contestants from all over The Islands of The Bahamas. This is quite an event to attend, Bahamian folk music and dancing is available and fresh island dishes are served.The feeling on this island is one of a time gone by, the way the northern Bahamas was some 25 years ago. Long island has enjoyed electricity and a good main road only for a short time and this may have prevented this island from developing. But it appears to be a blessing in disguise, perhaps this has allowed the area to retain it's old world charm.

Location 140 miles southeast of Nassau

Attractions

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Beaches, The Long Island Regatta, Cartwright's Cave, Shark Reef to watch a scuba master feed sharks, glass bottom boat cruises, Columbus Point, Dean's Blue Hole, Historic Churches, Plantation ruins.

Activities

Surfing, Swimming, diving / snorkeling, fishing, boating, windsurfing, sailing, water-skiing, hiking, biking, tennis, sightseeing by airplane, kayaking, exploring caves, shopping at local straw markets

To own property on Long Island Foreign nationals are encouraged to acquire residential properties in the Bahamas. There are special incentives to build on FamilyIslands such as Long Island. The island offers a wonderful location for vacation and retirement homes in a relaxing atmosphere with beautiful vistas. Property values are appreciating and provide an extraordinary investment profile. There is currently an exemption on the duty for building materials, so for those who have been thinking about building a second home, this is a great time to do so.

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Products and Services Land

"Neptune's Cove of Salt Pond Harbour" (59 lots) This 25 acres waterfront property is located within the settlement of Salt Pond immediately south of the Line Bay Development. The subject is divided into two parcels being divided by the main road. The property has access to most utilities. A total of 59 buildable lots are currently available. Most have an excellent view of the ocean. Prices start at $25,000 for a 1/4 acre lot. A model home is currently under development. Walking distance to supermarket, stores, restaurants, private beach and marina, 20 minutes from airports, electricity, telephone, internet & cable, no timeframe to built. No direct taxes on

profits, income, capital gains, inheritance or dividend.

A 2 acre ocean front lot in the town of Salt Pond, at a walking distance from the Breeze Resort with a private beach and a boat ramp, high elevation and a fantastic view of the ocean. Can be subdivided.

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Houses/Villas

The Villas are designed to create an ambiance of increasing openness and relaxation while affording its owners with true island decor. Owners will have additional options and will work with the architects with

the design and furnishing the interior to their liking.

Foreign nationals are encouraged to acquire residential properties in the Bahamas. There are special incentives to build on family islands such as Long Island. The island offers a wonderful location for vacation and retirement homes in a relaxing atmosphere with beautiful vistas. Property values are appreciating and provide an extraordinary investment profile. There is currently an exemption on the duty for building materials, so for those who have been thinking about building a retirement / vacation home, this is a great time to do so. You could save a lot by acting quickly. Prices start as low as US$195,000.

Vacation Ownership "The Long Island Breeze Resort".

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We will convert this property to a Vacation Ownership with 2,448 weeks to offer at an average selling price of $15,000 for a total gross income of $36,720,000. The current appraised value of this property is US$4,500,000. The Breeze is built in a Genuine Bahamian Island style and is on the waterfront in Salt Pond Harbour along the leeward coast of Long Island. This oceanfront resort is a charming welcome to the area with an island style atmosphere. Resort Facilities Include: •

Guest Rooms

•

Fine Dining Restaurant / Bar

•

Patio Bar / Grill

•

Fresh Water Pool

•

Private Functions / Weddings / Seminars

•

Dockage

•

Laundry

•

Showers

•

Wi-Fi

The Long Island Breeze Resort opened in 2008 and is ideally situated in Salt Pond, a community that could be described as being ‘at the Centre of Long Island’. The two main supermarkets are located in Salt Pond along with a service station, boat refueling dock and a number of other businesses including real estate, hairdressers and boat chandlers. Adjacent to Long Island Breeze is the dock where the weekly mail boat arrives carrying most of the essential supplies for the island.

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Cruising around the islands of the Bahamas is a hugely popular pastime among the American boating community, the period between January and June of each year being particularly busy with boats on the cruising circuit. Until Long Island Breeze opened the most southerly point with facilities for food resupply, fueling, laundry, showers and Internet was Georgetown at the southern tip of the Exuma chain. Long Island Breeze was designed with the intention of extending the established cruising route and has a solid reputation among the cruising fraternity with the 2012-13 season seeing a substantial increase in the numbers of visiting boats. A 50’ floating dock system has recently been added. The Government Approved Master Plan for the completion of the resort is already in place and consists of the following: •

Main restaurant / facilities building (completed)

•

1 unit with 3 rental rooms and 1 bedroom rental apartment (completed)

•

3 four hotel room beachfront studio units (one completed)

•

4 units each with 4 rental rooms / studios

•

2 retail units each with 3 shops/offices on ground floor and 3 studio apartments above

•

1 unit with 20 rental rooms / studio apartments

•

1 administrative / storage / laundry block

•

4 roadside street market units

•

200’ ocean front boardwalk with two 120’ piers with 40’ T-docks for daily and long term dockage

•

Utility building (completed)

The three beachfront studios, the white buildings to the left in the master plan, each contain four hotel rooms. These frontline units are single story so as not to detract from the view of the rooms behind. The yellow building is the existing cottage and the blue building is the bar, restaurant, laundry, showers and pool deck. The four white buildings in the center of the plan are 4 room 2-story units. Care has been taken to place them between the gaps in the frontline units to allow ocean views from the ground floor rooms. The structures to the bottom of the plan are the six retail units with apartments above and the large building on the right is the 20-room motel-style unit. This building also contains two housekeeping/storage rooms for the use of the room maids.

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The grey roofed building at the entrance to the car park is the existing utilities building and the small green buildings are the street market vendors. The master plan includes the installation of 2 x 120 foot jetties with 40 foot T-docks extending out from a 20 foot boardwalk which will allow boats to moor right alongside the resort facilities. When complete the resort will have a total of 48 rentable rooms plus six shops and a street market consisting of four vendor units. The Government Approved Master Plan for the completion of the resort is already in place. As of January 2014 the main restaurant / facilities building, one cottage, one beachfront studio, the utility building and 50’ of floating dock are completed. All buildings meet or exceed the Miami Dade building codes. Main restaurant and facilities building: The 2nd floor restaurant is 6000 SF under air and seats approximately 60 people comfortably. Another 20 people can be seated on the balcony. There are men’s and women’s restrooms, a 10 seat bar, lounge area with sofas, and a commercial restaurant/ kitchen. An elevator services all three floors. There are two rooms on the 3rd floor presently being utilized as living quarters that will eventually become private dining rooms. These rooms have their own bathroom and one room also has a kitchenette. Both rooms exit onto a balcony that has an 18” wide counter top running the length of the railing. The view from both balconies is exceptional and the sunsets are breathtaking from that vantage point. The common area between the two rooms functions as the office for the resort. A loft above this floor serves as storage and has access to 4th floor balcony. The ground or 1st floor has a 3500 SF pool deck, a 400 SF Gazebo and a 24’ x 16’ fresh water swimming pool. There are men’s and women’s restrooms, a laundry room with 3 commercial washers and 3 commercial dryers, and there are also three separate showers and dressing areas for the boaters to utilize. The patio bar and grill serves the lighter side menu during the day and early evening for those who prefer a more casual atmosphere. Behind the patio bar is the dry storage area for the restaurant and includes a walk in freezer and a walk in refrigerator. The entertainers use the gazebo for their stage and it also provides a protected area for karaoke and private gatherings. There are tables and chairs to seat another 40 people in the breezeway area and another 6 or 8 can be seated at the patio bar. The pool deck comfortably accommodates up to 200 people attending dances and other affairs.

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Cottage: The cottage is 2400 SF under air with another 500 SF of balconies overlooking the harbor. The cottage is comprised of 3 separate hotel rooms with baths each with their own private entrances on the first floor. The second floor of the cottage is a one-bedroom and has a balcony off the dining/great room and another private balcony off the master bedroom. The kitchen has a full line of stainless steel appliances and granite kitchen counter tops and granite bar top. There is a powder room off the kitchen area. The dining room table seats six with another three seats at the bar. The furniture and fixtures are top of the line. There is plenty of closet space and the pull down stair provides access to the walk around attic for storage. Beachfront Studio: The beachfront studio is 960 SF under air. Each unit is a typical hotel unit with private bath, ample built in storage and a small refrigerator. Two face the waterfront and two face the rear. Both front and back have a covered deck with ample room for sitting.

Future Products and Services Future Products and Services

"Neptune's Cove of Clarence Town" (345 lots) - Future Development This 155 acres waterfront property is located in Great Harbour, within a one mile south of Clarence Town, the capital of the island and fully accessible to beaches, diving/snorkeling, fishing, boating and shopping. On phase I a Main House/Restaurant, swimming pools, tennis courts, a golf practice driving range and five Villas will be constructed on the oceanfront. On phase II the property will be subdivided in 45 one acre lots, 100 1/2 acre lots and 200 1/4 acre lots. Twelve luxury cottages and five additional villa will be built. Commercial

"La Caravella ", Restaurant/Bar, of "The Neptune's Cove of Clarence Town" "La Caravella" is the focal point of all guest activities. The centralized location provides access to the game room, full bar, fine dining, lounge, internet access desk, health fitness facility, together with shops displaying our own line of merchandise apparel, coffee and cigars.

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It is strategically positioned to dazzle its guests with a panoramic view of the 155 acre property from anywhere inside while providing the same panoramic view of the blue Atlantic Ocean and natures own created "Blue Lagoon." After a stimulating stroll along the beach guests can delight at one of our indoor or patio tables of our culminating restaurant that will leave the most insatiable palettes begging for a second serving. Once satisfied, one can rest assured that it is an easy walk to any one of the Villas for a winding down hibernating slumber.

Competitors This real estate investment is, by definition, unique as it is located in an area which is generally acknowledged as having destination resort potential. There are three noteworthy beach resorts currently on Long Island. In order of size and accommodations they are: â&#x20AC;˘ Stella Maris Resort Club - having 47 rooms this resort is located in Stella Maris on the north end of the Island and offers accommodations ranging from single rooms to one bedroom cottages and 2, 3, or 4 bedroom bungalows, some with private pools. Pricing: $100 to $580 per night depending upon the season. â&#x20AC;˘ Cape Santa Maria Beach Resort - situated in Cape Santa Maria at the northern tip of the Island. Accommodations are one bedroom villas with optional side room add-on. Pricing: $195 to $470 per night depending upon the season.

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â&#x20AC;˘ Gems at Paradise Private Beach Resort - situated on 16 acres of beach front property overlooking lowlying Clem Cay on the south end of the island in Clarence Town. Accommodations available are a one bedroom condo or two bedroom suite with kitchen/dining/balcony. Pricing: $160 to $500 per night depending upon the season. Included in their accommodations are air-conditioned rooms, beach-bar-lounge and restaurants. Additionally, all have sailing, diving, snorkeling, fishing and boating activities. The Stella Maris and Cape Santa Maria Resorts offer supplementary dive shops, gift shops, water sports, with Stella Maris providing tennis, pool, and a marina. In comparison, "The Neptune's Cove Resort" will offer all activities and accommodations our competitors offer and in addition will provide: Internet access, desk, health and fitness facility, superb international cuisine and great service.

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Strategy and Implementation Milestones Milestone

Due Date

Who's Responsible

Details

Business / Marketing Plan

April 04, 2014

Victor Minca

Nassau Employee & sale rep

April 30, 2014

Don Catapano

Marketing / sales presentation documents

April 30, 2014

Victor Minca

Sales Documents

April 30, 2014

Victor Minca

All sales documents for vacation ownership to be ready

Nassau Office

June 02, 2014

Don Catapano

Office ready

Site ready for customers inspection

June 02, 2014

James Fox

Sales Plan We have the potential to obtain sales in the international marketplace through direct sales, via Internet with the on-line store and through real estate and travel agents.

We want to present an opportunity to our clients, which is the right to own property on an island in The Bahamas.

Marketing Plan A good marketing/advertising campaign will be the key to reach our market. Since we endeavor to reach the international market we will depend, to a great extent, on the excellent operation of our marketing channels. These channels are organizations, people and companies that take part in the sales of property. Our contacts will be with real estate and travel agents around the world who stay in constant contact with their clients.

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Additionally, we will introduce the direct sales approach to a select group of potential clients because we understand the need for providing a personal touch to answer questions and eliminate doubt. The project will have an office of direct sales and it is here where the greatest efforts will be employed. The location of this office will be highly visible, open and readily accessible to prospective clients. Telemarketing will also be applied to make appointments with interested clients. As part of our marketing efforts, we will be advertising, marketing and selling the available lots through the

Internet via our on-line store. http://theneptunescove.com/store/

Pricing Strategy Our services are focused on offering a property or a vacation ownership in our developments located in one of the best, and more importantly, tropical and natural sectors of the world. The characteristics of our developments are very different from those of other, in the same category, in that besides offering high services, class and comfort we will have the beautiful surroundings of nature, tranquility, beauty and pleasure. The price to purchase a 1/4 of an acre lot starts at US$25,000. The cost for a weeks vacation ownership starts at US$15,000.

Sales Strategy Sales Activities It is necessary to inform, persuade and continually educate the market of the existence of this Development via Internet http://theneptunescove.com and initially with brochures to be distributed to real estate/travel agents in Latin America, the United States and in Europe: England, Germany, Italy and Northern European Country. The information included will be illustrations of the property including costs and methods of payment.

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Personal Sales: Direct presentations to select clients and the general public in temporary quarters such as convention or commercial centers. Using the centers, we will create small meetings, through the use of telemarketing, with clients where our Resort can be presented in video form to motivate perspective buyers. As part of our marketing efforts, we will be advertising and marketing the available lots through our website. http://theneptunescove.com/land.htm Publicity: We will use massive communications by Internet, vestibule, print media, such as newspapers, exclusive magazines directed at the real estate market, airline magazines on flights to the Bahamas and brochures and banners at airports. Public Relations: Launching the resort at cocktail partys in Nassau, Bahamas, inviting selected groups of potential clients. At this partys we will present information and knowledge about our resort and our proposed plans for The Neptune's Cove of Long Island. Gross Margin by Year

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Gross Margin by Month

Revenue by Year

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Target Market Market Overview Buying Property in The Bahamas It has never been easier for non-Bahamians to own property in the Bahamas and for property owners to become Bahamas residents. The 1993 International Persons Landholding Act allows foreigners seeking second homes to buy a house or vacant land of five acres or less without a permit. Owners can then purchase a home owner residence card or, if the property is worth $500,000 or more, apply for permanent residency status. Foreign nationals are encouraged to acquire residential properties in the Bahamas. There are special incentives to build on family islands such as Long Island. The island offers a wonderful location for vacation and retirement homes in a relaxing atmosphere with beautiful vistas. Property values are appreciating and provide an extraordinary investment profile. There is currently an exemption on the duty for building materials, so for those who have been thinking about building a second home, this is a great time to do so. The Vacation Ownership Industry in The Bahamas offer products that are expensive and affordably only to wealthy people. Two of the few Resorts currently available are: â&#x20AC;˘

Baha Mar, a new development in Cable Beach, Nassau, it is very expensive and is only affordable to a family with very high income, and

â&#x20AC;˘

Ocean Reef Yacht Club and Marina, a small project in Freeport that is almost sold out.

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Key Customers

Potentially we can sale our Vacation Ownership products to the 7+ Million yearly tourists that are visiting Nassau from the Cruise Ships, through direct sales from our waterfront Nassau office, via Internet with the on- line store and through real estate and travel agents.

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Financial Plan Financial Summary Financial Highlights •

Capture Sales of $5,310,000 and $10,840,000 million in Fiscal 2014 and 2015 respectively

•

Obtain Gross Margin of 47% in 2014 and 50% in 2015.

•

Generate, initially, EBIT of 31% by Fiscal 2014 and aggressively pursue 38% by Fiscal 2015

•

Declare dividends starting in 2014.

Use of Proceeds: The proceeds will be used to make the acquisition of The Long Island Breeze Resort for 3,500,000 for land development and working capital, to build the residential units and certain commercial establishments on the land. The following charts, tables, diagrams, ratios and pro forma and projected financials present the financial plan for The Neptune's Cove. Net Profit (or Loss) by Year

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Revenue Forecast Revenue Forecast FY2014

FY2015

FY2016

Land

$500,000

$950,000

$100,000

Houses / Villas

$650,000

$600,000

$3,860,000

$8,990,000

$12,000,000

$300,000

$5,310,000

$10,840,000

$13,000,000

Land

$125,000

$237,500

$25,000

Houses / Villas

$546,000

$504,000

$1,930,000

$4,495,000

$6,000,000

$210,000

Total Direct Cost

$2,811,000

$5,446,500

$6,739,000

Gross Margin

$2,499,000

$5,393,500

$6,261,000

47%

50%

48%

Revenue

Vacation Ownership Commercial Total Revenue Direct Cost

Vacation Ownership Commercial

Gross Margin %

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Revenue by Month

About the Revenue Forecast

Personnel Plan Personnel Table FY2014

FY2015

FY2016

$8,400

$14,400

Admin

$11,200

$19,200

Coordinator

$11,200

$19,200

Secretary

$15,400

$26,400

Total

$46,200

$79,200

Receptionist

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About the Personnel Plan

Budget Budget Table FY2014

FY2015

FY2016

$46,200

$79,200

$462

$792

$265,500

$542,000

$650,000

Rent

$21,000

$36,000

Utilities

$10,500

$18,000

Office Supplies

$5,600

$9,600

Insurance

$7,000

$12,000

Legal & Professional Fees

$25,000

$24,000

General & Admin

$63,000

$108,000

Travel & Entertainment

$84,000

$144,000

$528,262

$973,592

$1,081,592

$25,000

New Major Purchase

$5,000

New Major Purchase

$5,000

$25,000

$5,000

$3,500,000

$15,000

$3,515,000

$4,500,000

$500,000

New Partners Distribution

$500,000

New Distribution

$500,000

Operating Expenses Salary Employee Related Expenses Marketing & Promotions

Amortization of Other Current Assets Total Operating Expenses Major Purchases Office equipments

Total Major Purchases Other Current Assets Long Island Breeze Resort Deposits for Office Total Other Current Assets Dividends and Distributions Distribution Partners Distribution

The Neptune's Cove

New Distribution Total Dividends and Distributions

Page 30

$1,000,000

$500,000

$5,500,000

$1,000,000

Expenses by Month

The Neptune's Cove

Page 31

About the Budget

Starting Balances Revenue Revenue Last Month

Revenue 2 Months Ago

Revenue 3 Months Ago

Revenue 4 Months Ago

Revenue 5 Months Ago

$10,000

Revenue 6 Months Ago

$50,000

Expenses Expenses Last Month

$4,000

Expenses 2 Months Ago

$2,000

Expenses 3 Months Ago

$1,000

Expenses 4 Months Ago

$1,000

Expenses 5 Months Ago

$10,000

Expenses 6 Months Ago

$50,000

Assets Cash

$111,000

Accounts Receivable Inventory Other Current Assets Long-Term Assets

$0 $1,650,000 $56,756 $1,710,000

Accumulated Depreciation

Liabilities Accounts Payable

$1,104,691

Sales Taxes Payable

Capital Paid-In Capital

$80,393

The Neptune's Cove

Page 32

Retained Earnings

Cash Flow Assumptions Cash Flow Assumptions

Cash Inflow % of Sales on Credit

30%

Avg Collection Period (Days)

Cash Outflow % of Purchases on Credit

50%

Avg Payment Delay (Days)

About the Cash Flow Assumptions

Loans and Investments Loans and Investments Table FY2014

FY2015

FY2016

Investor / Equity Partners Equity investment

$4,500,000

Total Amount Received

$4,500,000

The Neptune's Cove

Page 33

Sources of Funds Use of Funds Use of Proceeds: We intend to use the proceeds for the acquisition of "The Long Island Breeze Resort" for US$3,500,000 (appraisal value US$4,500,000), for working capital and to build both residential units and certain commercial establishments on the land. The following charts, tables, diagrams, ratios and pro forma and projected financials present the financial plan for The Neptune's Cove.

The Neptune's Cove

Page 34

Financial Statements Balance Sheet Balance Sheet As of Period's End

Starting Balances

FY2014

FY2015

FY2016

$111,000

$2,591,888

$1,569,296

$5,789,079

Accounts Receivable

$52,500

$127,500

$162,500

Inventory

$56,756

$3,571,756

$167,756

$6,216,144

$5,268,552

$9,523,335

$1,710,000

$1,735,000

$1,740,000

$1,745,000

($344,917)

($692,917)

($1,041,917)

Total Long-Term Assets

$1,710,000

$1,390,083

$1,047,083

$703,083

Total Assets

$1,877,756

$7,606,227

$6,315,635

$10,226,418

Accounts Payable

$1,104,691

$1,207,341

$1,344,841

$1,425,216

Sales Taxes Payable

Short-Term Debt

$1,104,691

$1,207,341

$1,344,841

$1,425,216

Long-Term Debt

Total Liabilities

$1,104,691

$1,207,341

$1,344,841

$1,425,216

$80,393

$4,580,393

Retained Earnings

($500,000)

($4,374,179)

($1,302,271)

Earnings

$1,625,821

$4,071,908

$4,830,408

$80,393

$5,706,214

$4,278,122

$8,108,530

$1,185,084

$6,913,555

$5,622,963

$9,533,746

Cash

Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation

Total Current Liabilities

Paid-In Capital

Total Owner's Equity Total Liabilities & Equity

The Neptune's Cove

Page 35

The Neptune's Cove

Page 36

About the Balance Sheet

Profit and Loss Statement Profit and Loss Statement FY2014

FY2015

FY2016

Revenue

$5,310,000

$10,840,000

$13,000,000

Direct Cost

$2,811,000

$5,446,500

$6,739,000

Gross Margin

$2,499,000

$5,393,500

$6,261,000

47%

50%

48%

$46,200

$79,200

$462

$792

$265,500

$542,000

$650,000

Rent

$21,000

$36,000

Utilities

$10,500

$18,000

Office Supplies

$5,600

$9,600

Insurance

$7,000

$12,000

Legal & Professional Fees

$25,000

$24,000

General & Admin

$63,000

$108,000

Travel & Entertainment

$84,000

$144,000

$528,262

$973,592

$1,081,592

$1,970,738

$4,419,908

$5,179,408

$344,917

$348,000

$349,000

Total Expenses

$3,684,179

$6,768,092

$8,169,592

Net Profit

$1,625,821

$4,071,908

$4,830,408

31%

38%

37%

Gross Margin % Operating Expenses Salary Employee Related Expenses Marketing & Promotions

Amortization of Other Current Assets Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes

Net Profit / Sales

The Neptune's Cove

Page 37

Gross Margin by Year

Net Profit (or Loss) by Year

The Neptune's Cove

Page 38

About the Profit and Loss Statement

Cash Flow Statement Cash Flow Statement FY2014

FY2015

FY2016

$1,625,821

$4,071,908

$4,830,408

Depreciation and Amortization

$344,917

$348,000

$349,000

Change in Accounts Receivable

($52,500)

($75,000)

($35,000)

$102,650

$137,500

$80,375

Change in Sales Taxes Payable

Net Cash Flow from Operations

$2,020,888

$4,482,408

$5,224,783

($3,540,000)

($5,000)

$4,500,000

Change in Short-Term Debt

Change in Long-Term Debt

Dividends and Distributions

($500,000)

($5,500,000)

($1,000,000)

Net Cash Flow from Investing & Financing

$460,000

($5,505,000)

($1,005,000)

Cash at Beginning of Period

$111,000

$2,591,888

$1,569,296

Net Change in Cash

$2,480,888

($1,022,592)

$4,219,783

Cash at End of Period

$2,591,888

$1,569,296

$5,789,079

Operations Net Profit

Change in Inventory Change in Accounts Payable

Investing & Financing Assets Purchased or Sold Investments Received

The Neptune's Cove

Page 39

Cash Flow by Month

Cash Flow by Year

About the Cash Flow Statement

The Neptune's Cove

Page 40

Appendix Revenue Forecast Revenue Forecast Table (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

Land

$50,000

$100,000

$50,000

Houses / Villas

$650,000

Vacation Ownership

$360,000

$240,000

$900,000

$800,000

$900,000

$300,000

Commercial

$300,000

$410,000

$290,000

$1,650,000

$900,000

$1,300,000

$350,000

Land

$12,500

$25,000

$12,500

Houses / Villas

$546,000

Vacation Ownership

$180,000

$120,000

$450,000

$400,000

$450,000

$150,000

Revenue

Total Revenue Direct Cost

Commercial

$210,000

Total Direct Cost

$192,500

$132,500

$1,021,000

$425,000

$685,000

$162,500

Gross Margin

$217,500

$157,500

$629,000

$475,000

$615,000

$187,500

53%

54%

38%

53%

47%

54%

Gross Margin %

The Neptune's Cove

FY2015

Page 41

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

$50,000

$100,000

$50,000

$100,000

$50,000

$300,000

$800,000

$900,000

$90,000

$700,000

$900,000

$800,000

$300,000

$350,000

$900,000

$1,000,000

$1,300,000

$1,000,000

$140,000

$750,000

$1,300,000

$1,000,000

$1,250,000

$850,000

$12,500

$25,000

$12,500

$25,000

$12,500

$252,000

$150,000

$400,000

$450,000

$45,000

$350,000

$450,000

$400,000

Commercial

$210,000

Total Direct Cost

$162,500

$425,000

$475,000

$727,000

$475,000

$57,500

$362,500

$727,000

$475,000

$672,500

$412,500

$187,500

$475,000

$525,000

$573,000

$525,000

$82,500

$387,500

$573,000

$525,000

$577,500

$437,500

54%

53%

52%

44%

52%

59%

52%

44%

52%

46%

51%

Revenue Land Houses / Villas Vacation Ownership Commercial

Total Revenue Direct Cost Land Houses / Villas Vacation Ownership

Gross Margin

Gross Margin %

The Neptune's Cove

Page 42

FY2014

FY2015

FY2016

Land

$500,000

$950,000

$100,000

Houses / Villas

$650,000

$600,000

$3,860,000

$8,990,000

$12,000,000

Revenue

Vacation Ownership Commercial

$300,000

$5,310,000

$10,840,000

$13,000,000

Land

$125,000

$237,500

$25,000

Houses / Villas

$546,000

$504,000

$1,930,000

$4,495,000

$6,000,000

$210,000

$2,811,000

$5,446,500

$6,739,000

$2,499,000

$5,393,500

$6,261,000

47%

50%

48%

Total Revenue Direct Cost

Vacation Ownership Commercial

Total Direct Cost Gross Margin

Gross Margin %

The Neptune's Cove

Page 43

Personnel Plan Personnel Table (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

Receptionist

$1,200

Admin

$1,600

Coordinator

$1,600

Secretary

$2,200

Total

$6,600

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

Receptionist

$1,200

Admin

$1,600

Coordinator

$1,600

Secretary

$2,200

$6,600

FY2015

Total

The Neptune's Cove

Page 44

FY2014

FY2015

FY2016

$8,400

$14,400

Admin

$11,200

$19,200

Coordinator

$11,200

$19,200

Secretary

$15,400

$26,400

$46,200

$79,200

Receptionist

Total

The Neptune's Cove

Page 45

Budget Budget Table (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

Salary

$6,600

Employee Related Expenses

$66

Marketing & Promotions

$20,500

$14,500

$82,500

$45,000

$65,000

$17,500

Rent

$3,000

Utilities

$1,500

Office Supplies

$800

Insurance

$1,000

Legal & Professional Fees

$10,000

$5,000

$2,000

General & Admin

$9,000

Travel & Entertainment

$12,000

Amortization of Other Current Assets

$64,466

$59,466

$50,466

$118,466

$80,966

$100,966

$53,466

Operating Expenses

Total Operating Expenses Major Purchases

The Neptune's Cove

Page 46

Office equipments

$25,000

New Major Purchase

Total Major Purchases

$25,000

Long Island Breeze Resort

$3,500,000

Deposits for Office

$15,000

Total Other Current Assets

$3,515,000

Distribution

Partners Distribution

$500,000

New Partners Distribution

New Distribution

Total Dividends and Distributions

$500,000

Other Current Assets

Dividends and Distributions

The Neptune's Cove

FY2015

Page 47

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

$6,600

$66

$17,500

$45,000

$50,000

$65,000

$50,000

$7,000

$37,500

$65,000

$50,000

$62,500

$42,500

Rent

$3,000

Utilities

$1,500

$800

Insurance

$1,000

Legal & Professional Fees

$2,000

General & Admin

$9,000

$12,000

$53,466

$80,966

$85,966

$100,966

$85,966

$42,966

$73,466

$100,966

$85,966

$98,466

$78,466

New Major Purchase

$5,000

New Major Purchase

Operating Expenses Salary Employee Related Expenses Marketing & Promotions

Office Supplies

Travel & Entertainment Amortization of Other Current Assets

Total Operating Expenses Major Purchases Office equipments

The Neptune's Cove

Total Major Purchases

Page 48

$5,000

Long Island Breeze Resort

Deposits for Office

Total Other Current Assets

Distribution

$4,500,000

Partners Distribution

New Partners Distribution

$500,000

New Distribution

$500,000

New Distribution

Total Dividends and Distributions

$5,500,000

Other Current Assets

Dividends and Distributions

The Neptune's Cove

Page 49

FY2014

FY2015

FY2016

$46,200

$79,200

$462

$792

$265,500

$542,000

$650,000

Rent

$21,000

$36,000

Utilities

$10,500

$18,000

Office Supplies

$5,600

$9,600

Insurance

$7,000

$12,000

Legal & Professional Fees

$25,000

$24,000

General & Admin

$63,000

$108,000

Travel & Entertainment

$84,000

$144,000

$528,262

$973,592

$1,081,592

$25,000

New Major Purchase

$5,000

New Major Purchase

$5,000

$25,000

$5,000

$3,500,000

$15,000

$3,515,000

Operating Expenses Salary Employee Related Expenses Marketing & Promotions

Amortization of Other Current Assets

Total Operating Expenses Major Purchases Office equipments

Total Major Purchases Other Current Assets Long Island Breeze Resort Deposits for Office

Total Other Current Assets Dividends and Distributions Distribution

$4,500,000

$500,000

New Partners Distribution

$500,000

New Distribution

$500,000

Partners Distribution

The Neptune's Cove

Page 50

New Distribution

Total Dividends and Distributions

$1,000,000

$500,000

$5,500,000

$1,000,000

Loans and Investments Loans and Investments Table (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

Investor / Equity Partners Equity investment

$4,500,000

Total Amount Received

$4,500,000

FY2015

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

Investor / Equity Partners Equity investment

Total Amount Received

The Neptune's Cove

Investor / Equity Partners Equity investment

Total Amount Received

Page 51

FY2014

FY2015

FY2016

$4,500,000

The Neptune's Cove

Page 52

Profit and Loss Statement Profit and Loss Statement (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

Revenue

$410,000

$290,000

$1,650,000

$900,000

$1,300,000

$350,000

Direct Cost

$192,500

$132,500

$1,021,000

$425,000

$685,000

$162,500

Gross Margin

$217,500

$157,500

$629,000

$475,000

$615,000

$187,500

53%

54%

38%

53%

47%

54%

Salary

$6,600

Employee Related Expenses

$66

Marketing & Promotions

$20,500

$14,500

$82,500

$45,000

$65,000

$17,500

Rent

$3,000

Utilities

$1,500

Office Supplies

$800

Insurance

$1,000

Legal & Professional Fees

$10,000

$5,000

$2,000

General & Admin

$9,000

Travel & Entertainment

$12,000

Gross Margin % Operating Expenses

The Neptune's Cove

Amortization of Other Current Assets

Page 53

Total Operating Expenses

$64,466

$59,466

$50,466

$118,466

$80,966

$100,966

$53,466

Operating Income

$153,034

$158,034

$107,034

$510,534

$394,034

$514,034

$134,034

Interest Incurred

$28,500

$28,916

$28,917

Total Expenses

$28,500

$285,882

$280,882

$211,883

$1,168,383

$534,883

$814,883

$244,883

Net Profit

($28,500)

$124,118

$129,118

$78,117

$481,617

$365,117

$485,117

$105,117

30%

31%

27%

29%

41%

37%

30%

Depreciation and Amortization Income Taxes

Net Profit / Sales

The Neptune's Cove

FY2015

Page 54

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

Revenue

$350,000

$900,000

$1,000,000

$1,300,000

$1,000,000

$140,000

$750,000

$1,300,000

$1,000,000

$1,250,000

$850,000

Direct Cost

$162,500

$425,000

$475,000

$727,000

$475,000

$57,500

$362,500

$727,000

$475,000

$672,500

$412,500

Gross Margin

$187,500

$475,000

$525,000

$573,000

$525,000

$82,500

$387,500

$573,000

$525,000

$577,500

$437,500

54%

53%

52%

44%

52%

59%

52%

44%

52%

46%

51%

$6,600

$66

$17,500

$45,000

$50,000

$65,000

$50,000

$7,000

$37,500

$65,000

$50,000

$62,500

$42,500

Rent

$3,000

Utilities

$1,500

$800

Insurance

$1,000

Legal & Professional Fees

$2,000

General & Admin

$9,000

$12,000

$53,466

$80,966

$85,966

$100,966

$85,966

$42,966

$73,466

$100,966

$85,966

$98,466

$78,466

Gross Margin % Operating Expenses Salary Employee Related Expenses Marketing & Promotions

Office Supplies

Travel & Entertainment Amortization of Other Current Assets

Total Operating Expenses

The Neptune's Cove

Operating Income

Page 55

$134,034

$394,034

$439,034

$472,034

$439,034

$39,534

$314,034

$472,034

$439,034

$479,034

$359,034

$28,999

$29,000

$29,001

Total Expenses

$244,965

$534,965

$589,965

$856,965

$589,966

$129,466

$464,966

$856,967

$589,967

$799,967

$519,967

Net Profit

$105,035

$365,035

$410,035

$443,035

$410,034

$10,534

$285,034

$443,033

$410,033

$450,033

$330,033

30%

41%

34%

41%

38%

34%

41%

36%

39%

Interest Incurred Depreciation and Amortization Income Taxes

Net Profit / Sales

The Neptune's Cove

Page 56

FY2014

FY2015

FY2016

Revenue

$5,310,000

$10,840,000

$13,000,000

Direct Cost

$2,811,000

$5,446,500

$6,739,000

Gross Margin

$2,499,000

$5,393,500

$6,261,000

47%

50%

48%

$46,200

$79,200

$462

$792

$265,500

$542,000

$650,000

Rent

$21,000

$36,000

Utilities

$18,000

Gross Margin % Operating Expenses Salary Employee Related Expenses Marketing & Promotions

$10,500

$18,000

Office Supplies

$5,600

$9,600

Insurance

$7,000

$12,000

Legal & Professional Fees

$25,000

$24,000

General & Admin

$63,000

$108,000

Travel & Entertainment

$84,000

$144,000

$528,262

$973,592

$1,081,592

$1,970,738

$4,419,908

$5,179,408

Amortization of Other Current Assets

Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes

$344,917

$348,000

$349,000

Total Expenses

$3,684,179

$6,768,092

$8,169,592

Net Profit

$1,625,821

$4,071,908

$4,830,408

31%

38%

37%

Net Profit / Sales

The Neptune's Cove

Page 57

Balance Sheet Balance Sheet (With Monthly Detail) As of Period's End

Starting Balances

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

$111,000

$109,000

$1,285,684

$1,441,218

$1,531,752

$2,316,536

$2,506,320

$3,100,354

$2,591,888

Accounts Receivable

$61,500

$43,500

$247,500

$135,000

$195,000

$52,500

Inventory

$56,756

$3,571,756

Total Current Assets

$167,756

$165,756

$4,918,940

$5,074,474

$5,147,008

$6,135,792

$6,213,076

$6,867,110

$6,216,144

Long-Term Assets

$1,710,000

$1,735,000

($28,500)

($57,000)

($85,500)

($114,000)

($142,500)

($171,416)

($200,332)

($229,249)

($258,166)

($287,083)

($316,000)

($344,917)

Total LongTerm Assets

$1,710,000

$1,681,500

$1,653,000

$1,624,500

$1,596,000

$1,567,500

$1,563,584

$1,534,668

$1,505,751

$1,476,834

$1,447,917

$1,419,000

$1,390,083

Total Assets

$1,877,756

$1,847,256

$1,818,756

$1,790,256

$1,761,756

$1,733,256

$6,482,524

$6,609,142

$6,652,759

$7,612,626

$7,660,993

$8,286,110

$7,606,227

Accounts Payable

$1,104,691

$1,102,691

$1,227,841

$1,225,341

$1,190,841

$1,669,091

$1,352,341

$1,492,341

$1,207,341

Sales Taxes Payable

Short-Term Debt

Cash

Other Current Assets

Accumulated Depreciation

The Neptune's Cove

Total Current Liabilities Long-Term Debt

Total Liabilities Paid-In Capital

Page 58

$1,104,691

$1,102,691

$1,227,841

$1,225,341

$1,190,841

$1,669,091

$1,352,341

$1,492,341

$1,207,341

$1,104,691

$1,102,691

$1,227,841

$1,225,341

$1,190,841

$1,669,091

$1,352,341

$1,492,341

$1,207,341

$80,393

$4,580,393

Retained Earnings

($500,000)

Earnings

($28,500)

($57,000)

($85,500)

($114,000)

($142,500)

($18,382)

$110,736

$188,853

$670,470

$1,035,587

$1,520,704

$1,625,821

$80,393

$51,893

$23,393

($5,107)

($33,607)

($62,107)

$4,562,011

$4,691,129

$4,769,246

$5,250,863

$5,615,980

$6,101,097

$5,706,214

$1,185,084

$1,154,584

$1,126,084

$1,097,584

$1,069,084

$1,040,584

$5,789,852

$5,916,470

$5,960,087

$6,919,954

$6,968,321

$7,593,438

$6,913,555

Total Owner's Equity Total Liabilities & Equity

The Neptune's Cove

As of Period's End

Page 59

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

$2,720,922

$3,177,456

$3,628,990

$4,189,524

$4,540,058

($520,908)

($582,624)

($192,340)

$393,194

$743,728

$1,290,262

$1,569,296

$52,500

$135,000

$150,000

$195,000

$150,000

$21,000

$112,500

$195,000

$150,000

$187,500

$127,500

$3,571,756

$6,345,178

$6,884,212

$7,350,746

$7,956,280

$8,261,814

$3,200,848

$3,010,132

$3,491,916

$4,159,950

$4,465,484

$5,049,518

$5,268,552

Long-Term Assets

$1,740,000

Accumulated Depreciation

($373,916)

($402,915)

($431,914)

($460,913)

($489,913)

($518,913)

($547,913)

($576,913)

($605,914)

($634,915)

($663,916)

($692,917)

Total LongTerm Assets

$1,366,084

$1,337,085

$1,308,086

$1,279,087

$1,250,087

$1,221,087

$1,192,087

$1,163,087

$1,134,086

$1,105,085

$1,076,084

$1,047,083

Total Assets

$7,711,262

$8,221,297

$8,658,832

$9,235,367

$9,511,901

$4,421,935

$4,202,219

$4,655,003

$5,294,036

$5,570,569

$6,125,602

$6,315,635

$1,207,341

$1,352,341

$1,379,841

$1,513,341

$1,379,841

$1,149,591

$1,317,341

$1,513,341

$1,379,841

$1,484,841

$1,344,841

Sales Taxes Payable

Short-Term Debt

$1,207,341

$1,352,341

$1,379,841

$1,513,341

$1,379,841

$1,149,591

$1,317,341

$1,513,341

$1,379,841

$1,484,841

$1,344,841

$1,207,341

$1,352,341

$1,379,841

$1,513,341

$1,379,841

$1,149,591

$1,317,341

$1,513,341

$1,379,841

$1,484,841

$1,344,841

Paid-In Capital

$4,580,393

Retained Earnings

$1,125,821

($4,374,179)

Cash Accounts Receivable Inventory Other Current Assets

Total Current Assets

Accounts Payable

Total Current Liabilities Long-Term Debt

Total Liabilities

The Neptune's Cove

Earnings

Page 60

$105,035

$470,070

$880,105

$1,323,140

$1,733,174

$2,143,208

$2,153,742

$2,438,776

$2,881,809

$3,291,842

$3,741,875

$4,071,908

Total Owner's Equity

$5,811,249

$6,176,284

$6,586,319

$7,029,354

$7,439,388

$2,349,422

$2,359,956

$2,644,990

$3,088,023

$3,498,056

$3,948,089

$4,278,122

Total Liabilities & Equity

$7,018,590

$7,528,625

$7,966,160

$8,542,695

$8,819,229

$3,729,263

$3,509,547

$3,962,331

$4,601,364

$4,877,897

$5,432,930

$5,622,963

The Neptune's Cove

As of Period's End

Page 61

Starting Balances

FY2014

FY2015

FY2016

$111,000

$2,591,888

$1,569,296

$5,789,079

Accounts Receivable

$52,500

$127,500

$162,500

Inventory

$56,756

$3,571,756

Total Current Assets

$167,756

$6,216,144

$5,268,552

$9,523,335

Long-Term Assets

$1,710,000

$1,735,000

$1,740,000

$1,745,000

($344,917)

($692,917)

($1,041,917)

Total Long-Term Assets

$1,710,000

$1,390,083

$1,047,083

$703,083

Total Assets

$1,877,756

$7,606,227

$6,315,635

$10,226,418

$1,104,691

$1,207,341

$1,344,841

$1,425,216

Cash

Other Current Assets

Accumulated Depreciation

Accounts Payable Sales Taxes Payable Short-Term Debt

Total Current Liabilities Long-Term Debt

Total Liabilities Paid-In Capital Retained Earnings Earnings

Total Owner's Equity Total Liabilities & Equity

$1,104,691

$1,207,341

$1,344,841

$1,425,216

$1,104,691

$1,207,341

$1,344,841

$1,425,216

$80,393

$4,580,393

($500,000)

($4,374,179)

($1,302,271)

$1,625,821

$4,071,908

$4,830,408

$80,393

$5,706,214

$4,278,122

$8,108,530

$1,185,084

$6,913,555

$5,622,963

$9,533,746

The Neptune's Cove

Page 62

Cash Flow Statement Cash Flow Statement (With Monthly Detail) FY2014

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Oct '14

Nov '14

Dec '14

($28,500)

$124,118

$129,118

$78,117

$481,617

$365,117

$485,117

$105,117

$28,500

$28,916

$28,917

Change in Accounts Receivable

($61,500)

$18,000

($204,000)

$112,500

($60,000)

$142,500

Change in Inventory

Change in Accounts Payable

($2,000)

$125,150

($2,500)

($34,500)

$478,250

($316,750)

$140,000

($285,000)

Change in Sales Taxes Payable

Net Cash Flow from Operations

($2,000)

$216,684

$155,534

$90,534

$784,784

$189,784

$594,034

($8,466)

Assets Purchased or Sold

($3,540,000)

Investments Received

$4,500,000

Change in Short-Term Debt

Operations Net Profit Depreciation and Amortization

Investing & Financing

The Neptune's Cove

Page 63

Change in Long-Term Debt

Dividends and Distributions

($500,000)

$960,000

($500,000)

$111,000

$109,000

$1,285,684

$1,441,218

$1,531,752

$2,316,536

$2,506,320

$3,100,354

($2,000)

$1,176,684

$155,534

$90,534

$784,784

$189,784

$594,034

($508,466)

$109,000

$1,285,684

$1,441,218

$1,531,752

$2,316,536

$2,506,320

$3,100,354

$2,591,888

Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash

Cash at End of Period

The Neptune's Cove

FY2015

Page 64

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Oct '15

Nov '15

Dec '15

$105,035

$365,035

$410,035

$443,035

$410,034

$10,534

$285,034

$443,033

$410,033

$450,033

$330,033

$28,999

$29,000

$29,001

Change in Accounts Receivable

($82,500)

($15,000)

($45,000)

$45,000

$129,000

($91,500)

($82,500)

$45,000

($37,500)

$60,000

Change in Inventory

Change in Accounts Payable

$145,000

$27,500

$133,500

($133,500)

($230,250)

$167,750

$196,000

($133,500)

$105,000

($140,000)

Change in Sales Taxes Payable

Net Cash Flow from Operations

$134,034

$456,534

$451,534

$560,534

$350,534

$439,034

($61,716)

$390,284

$585,534

$350,534

$546,534

$279,034

($5,000)

Investments Received

Change in Short-Term Debt

Change in Long-Term Debt

Dividends and Distributions

($5,500,000)

($5,000)

($5,500,000)

Operations Net Profit Depreciation and Amortization

Investing & Financing Assets Purchased or Sold

Net Cash Flow from Investing & Financing

The Neptune's Cove

Cash at Beginning of Period Net Change in Cash

Cash at End of Period

Page 65

$2,591,888

$2,720,922

$3,177,456

$3,628,990

$4,189,524

$4,540,058

($520,908)

($582,624)

($192,340)

$393,194

$743,728

$1,290,262

$129,034

$456,534

$451,534

$560,534

$350,534

($5,060,966)

($61,716)

$390,284

$585,534

$350,534

$546,534

$279,034

$2,720,922

$3,177,456

$3,628,990

$4,189,524

$4,540,058

($520,908)

($582,624)

($192,340)

$393,194

$743,728

$1,290,262

$1,569,296

The Neptune's Cove

Page 66

FY2014

FY2015

FY2016

$4,830,408

Operations Net Profit

$1,625,821

$4,071,908

Depreciation and Amortization

$344,917

$348,000

$349,000

Change in Accounts Receivable

($52,500)

($75,000)

($35,000)

Change in Inventory Change in Accounts Payable Change in Sales Taxes Payable

$102,650

$137,500

$80,375

$2,020,888

$4,482,408

$5,224,783

($3,540,000)

($5,000)

$4,500,000

Change in Short-Term Debt

Change in Long-Term Debt

Dividends and Distributions

($500,000)

($5,500,000)

($1,000,000)

$460,000

($5,505,000)

($1,005,000)

$111,000

$2,591,888

$1,569,296

$2,480,888

($1,022,592)

$4,219,783

$2,591,888

$1,569,296

$5,789,079

Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received

Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash

Cash at End of Period