Sample EB-5 Business Plan Pages

Hillstone Holdings, LLC is a newly established company that has recently acquired an underperforming hotel franchise in Covington, AL. With the assistance of EB-5 funding, the company is planning an extensive renovation and improvement project that will update interior guest accommodation, improve the hotel facilities and create a strong team of employees dedicated to exceptional levels of customer service and satisfaction. The project will ultimately help to attract more visitors to the Covington region, generating benefits and creating new employment opportunities within the local economy.

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The following dashboard highlights the results of the financial analysis, expected company performance, and summary of market break down. The reader may use this page as a quick reference visual aid to quickly understand the expected financial performance of the company.

Hillstone Holdings, LLC Dashboard Hillstone Holdings, LLC Dashboard Hillstone Holdings, LLC 5-Year Highlights

$1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 -$200

Gross Margin

Net Profit

Personnel

Liab. + Equit y

20 16 14 12 10

8 6

2015

2016

2017

2018

2019

$1,000 $0

($500)

4

($1,000)

2

($1,500)

Meeting room

Liabilities

Equity (1,048)

Restaurant Income

Net Earnings

Net Margin

$500

30%

$400

25%

$300

20%

$1,000

$200

15%

$500

$100

10%

$0

$0

$2,000 $1,500

Yearly Projected Cash Flow of Hillstone Holdings, LLC Net Cash Flow Thousands

Assets

Hillstone Holdings, LLC Net Profits Forecast

($100)

5% 2015

2016

2017

2018

2019

0%

Hillstone Holdings, LLC Market Distribution Domestic Leisure Travelers

Cash Balance

Business Travelers

International Leisure Travelers Meetings, Events etc.

$700 $600 $500 $400 $300 $200 $100 $0 -$100

Source and Units

14%

14%

24%

2015

2016

2017

2018

$5,000 $0 -$5,000

Expected Value @ 7% Cap Rate Thousands

$10,000

Hillstone Holdings, LLC Scenario Analysis

Net Worth

Start-Up Expenses

48%

2019

Yearly Net Worth Projection for Hillstone Holdings, LLC

Thousands

61

0

Thousands

Thousands

Banquet room

1,109

$500

Hillstone Holdings, LLC 5-Year Sales Forecast Rooms

Assets

$1,500

Thousands

18

Per sonnel

Thousands

Sales

Hillstone Holdings, LLC Balance Sheet Position

Worst Case Scenario Expected $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2015 2016 2017 ($2,000) ($4,000)

Best Case Scenario

2018

2019

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1. Executive Summary

The Pearl River Resort is an 84-room hotel in rural southeastern Alabama that specializes in providing comfortable guest accommodation at competitive prices. Although the hotel has been part of the worldwide Choice Hotels Inc. brand, it has underperformed in recent years due to ineffective management by its previous owners. As a result, the hotel has been poorly maintained, occupancy rates have fallen and guest reviews – an important factor in attracting customers – have become increasingly negative. The hotel was under foreclosure when Hillstone Holdings, LLC decided to purchase the property.

Headquartered in Covington, Alabama, Hillstone Holdings is a newly established company founded by Mr. Varin Joseph, an experienced businessman and hotelier who has been successfully running another Quality Inn hotel franchise in Covington since 2008. Unfortunately, in January of 2015, Mr. Joseph passed away and left the company’s management to his wife Mrs. Lynd. Under Mr. Joseph’s guidance, Hillstone Holdings acquired the Pearl River Resort, with the aim of improving the hotel and enabling it to achieve its full potential. By implementing a structured renovation and improvement project, including updating the guest accommodation, improving the overall hotel facilities and creating a strong U.S. team of employees dedicated to exceptional levels of customer service and satisfaction, the company, now under the management of Mrs. Lynd and with the help of the EB-5 visa petitioner Mr. Kuffman, Hillstone Holdings expects to attract more visitors to the Covington region generating benefits and new employment opportunities within the local economy.

To help achieve this goal, Hillstone Holdings is seeking $500,000 in EB-5 financing from prospective visa petitioner Mr. Alfred Kuffman. Mr. Kuffman currently holds German citizenship and has been acquainted with Mr. Varin Joseph since 1992. Mr. Kuffman’s investment would form part of a wider renovation project that has already been commenced by Mr. Joseph, who had already invested $105,000 in initial capital improvements to the hotel. To take full advantage of the renovation and improvement project, the hotel requires additional personnel to effectively promote, market, operate and maintain the required levels of customer service associated with the enhanced facilities and capacities. The owners also envision rejuvenation of its amenities to further enhance the marketability of the hotel and its meeting room and banqueting facilities, together with the addition of an onsite restaurant that will generate added revenues by offering a range of dining options for guest and passing customers.

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The final EB-5 investment will help the operational restructuring and secure the necessary structural enhancements, leading to the creation of a total of fourteen (14) new full-time jobs, ten (10) which will be created by the end of 2016. The investment will also help fund working capital requirements over the first three years before the stabilization of the enhanced operation occurs towards 2017.

The owners are confident that the EB-5 investment project will allow the hotel to increase its competitiveness locally, and its enhanced services will hopefully encourage a greater number of visitors to return to the local region. Covington, Alabama is a popular stopping point for tourists heading to the Florida beaches, and also benefits from its close proximity to the U.S. Army Aviation Museum and other leading regional tourist attractions. Prominently positioned on a major transport corridor, the hotel is equally accessible for visitors to nearby Covington, which is fast developing into a major shopping, dining, cultural and entertainment hub, or for travelers heading between Montgomery, the State Capital, and surrounding population centers. With a relative low density of hotels in the vicinity, perhaps numbering less than 500 rooms, the Pearl River Resort has a great opportunity to establish itself as a preferential venue for local hotel patrons, especially in light of the broad improvement vision that the EB-5 funding investment will help deliver.

The chart to the right demonstrates how

Hillstone Holdings, LLC 5-Year Highlights Sales

project might impact on the company, by highlighting key financial metrics – sales,

Thousands

together with the EB-5 improvement

Net Profit

Personnel

$2,000 $1,500 $1,000

gross margin, net profits and personnel

$500

headcount – that the hotel is expecting over

$0

the next five years.

Gross Margin

-$500

2015

2016

2017

2018

2019

20 18 16 14 12 10 8 6 4 2 0

Personnel

the strategic vision of the new hotel owners,

As the graph demonstrates, the company is expecting annual sales to show solid growth over the next five years, rising from an expected sales in 2015 of about $428,000 to almost $1.2 million by 2017 as a result of improving occupancy rates, enhanced capacities, improving daily rates and a greater range and quality of facilities and guest services. Profit growth will remain steady from 2017 onwards as the EB-5 project stabilizes. Net profits will improve over time, with margins rising to about 24% by 2019, resulting in expected net profits of nearly $500,000, purely as a result of the EB-5 funded structural and operational improvements. The company currently operates with five (5) full-time members of staff, sufficient to maintain existing hotel operations and to oversee the ongoing renovation and improvement projects. However, as part of the overall EB-5 project the hotel will require an additional fourteen (14) full-time U.S. employees, with ten (10) of these positions being deemed necessary by the end of 2016 to service its growing operational requirements.

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2. Company Summary Hillstone Holdings, LLC is an established business headquartered in Covington, Alabama that recently acquired a foreclosed Quality Inn hotel franchise located in the city of Covington. The hotel lost its franchise at the time but currently operates with five (5) full-time employees, including General Manager Mrs. Lynd Joseph, the wife of deceased Varin Joseph, an experienced businessman and successful hotelier who also operated a Quality Inn Hotel.

Business Start-Up Milestones Hillstone Holdings, LLC was incorporated in February 2014, and acquired the existing hotel at Covington in April of 2014. In November 2014 the company entered into a memorandum of understanding with Mr. Alfred Kuffman, a citizen of Germany, who is proposing to invest $500,000 of his personal funds into Hillstone Holdings, LLC via an EB-5 foreign investor petition, to improve the hotel’s conditions and upgrade the onsite amenities. A majority of these funds are to be help until the EB-5 petition has been granted USCIS approval.

The EB-5 funding will enable Hillstone Holdings, LLC to invest in widespread upgrading and renovation of the hotel, including updating the guest accommodation to a higher quality, and improving the overall facilities within the hotel. The renovations are necessary to overcome the poorly maintained condition associated with the previous owners, and to positively influence and improve the profile of the hotel across a range of important online booking and guest review sites. The renovations have already commenced, and are expected to proceed throughout the first half of 2015, during which time the hotel will remain open for business but not operating to its full potential.

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Operations Hillstone Holdings, LLC operates the Pearl River Resort. The hotel comprises over 30,000 sq. ft. enclosed within a 3 acre plot of land adjacent to U.S. Hwy 231, a main transport corridor through the prime dining, retail, and entertainment districts of the City of Covington. The hotel has 84 guest rooms, an onsite fitness center, an outdoor swimming pool, banquet facilities for up to 150 guests, and a restaurant. It’s expected that the renovations to the current restaurant will be completed by mid-2016. The newly upgraded Sports Bar, Restaurant and Lounge will be a unique to the Covington, AL area and is an important attraction for the hotel.

Day-to-day operation of the hotel comprises four distinct departments: Back Office, Front Desk, Housekeeping, and Maintenance. The Back Office provides managerial leadership for the entire hotel operation and coordinates the other departments, as well as carrying out daily administrative and financial functions. The Front Desk interacts directly with the hotel guests including check-ins and check-outs, taking reservations or cancellations by telephone or online, contracting of meeting room and banquet spaces, payment processing, and providing a 24-hour customer service point of reference for guests.

Housekeeping will service guest rooms daily, preparing for new arrivals or replenishing in-room facilities for longer stay guests, and preparing the hotel linen for laundry collection. The Housekeeping operation will also ensure hotel spaces are clean and tidy, including the fitness center, swimming pool and other common areas.

The Maintenance department will work to ensure that the hotel, its rooms and all the amenities are functioning correctly and safely, completing all necessary repairs and appliance testing when appropriate.

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3. Hotel Services Hillstone Holdings, LLC has recently overtaken the operation of the 84 room Pearl River Resort, conveniently located on U.S. Highway 250, a major transport corridor linking the Cities of Covington and Covington, and in close proximity to local dining, tourist and entertainment attractions. The hotel offers comfortable guest rooms, cable television, a deluxe continental breakfast and larger two-room suites with self-contained kitchen facilities.

Business travelers are catered to with a range of complimentary services including free high-speed Internet, photocopying, and a facsimile service. Other hotel amenities include on-site parking, laundry, a seasonal outdoor swimming pool and a fully equipped fitness center. An onsite restaurant is also being renovated in order to generate revenue from offering a range of dining options for patrons or passing customers.

In addition to offering a range of overnight accommodation options, the hotel has extensive meeting and banquet space for meetings, conferences, wedding receptions or other special events; these facilities can cater up to 150 people.

The table below provides a summary of the key services offered by the hotel, highlighting some of the key characteristics – expected monthly sales, sales and cost price, and expected margins – associated with each.

Unsurprisingly, the sale of accommodation is the greatest contributor to the expected monthly margins,

Average Unit Sales per Month in Year 1

Price

Direct Unit Cost

Contrib.

Margin %

Average Monthly Margins in Year 1

548

$50.00

$9.75

81%

$22,067

Banquet room

1

$300.00

$85.00

72%

$287

Meeting room

1

$100.00

$25.00

75%

$100

Restaurant Income

26

$300.00

$85.00

72%

$5,536

Services Rooms

The sale of accommodation is the greatest contributor to the expected monthly margins, generating over $20,000 per month on anticipated occupancies of 548 rooms per month during the first year. This value is based on an average daily rate (ADR) of $50, which will fluctuate based on seasonality and type of room. The fully renovated Sports Bar, Restaurant and Lounge is expected to contribute over $5,500 to the average monthly margin, generating a modest income based on the quantity of diners. The hire of venue spaces – including both meeting and banquet rooms – is another important service that can attract more room-paying guests, as well as

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contributing rental income for the hire of the rooms. These services are expected to contribute a modest $825 - $878 to the average monthly margins. While these revenue streams currently offers the lowest contribution, they could represent a potential growth area for the hotel if marketed effectively, and offered in conjunction with overnight accommodation, in the case of weddings, etc.

Rooms and Ancillary Services Description A brief summary of the services offered by the hotel, many of which are common to the Quality Inn chain of hotels: 

Rooms The Pearl River Resort offers a range of clean, comfortable rooms fully equipped with facilities such as comfortable beds in a variety of sizes; cable and satellite television; free local calls; coffee making facilities; air conditioning; refrigerator; ironing board; hair dryer; and wake-up services. Rooms cater for a variety of budgets, with additional options available for non-smoking rooms, or accessible rooms to help low mobility guests. Other amenities include an outdoor swimming pool and a fitness center.



Banqueting and Meeting Space The hotel has meeting and banqueting space that can cater up to 150 guests. These flexible spaces provide an excellent venue for hosting corporate meetings and conferences, as well as other special events such as weddings, reunions or receptions.



Sports Bar, Restaurant and Lounge In addition to its rooms, meeting and banqueting space, the hotel will also generate revenue from its onsite restaurant. It’s planned that the current restaurant facility will be renovated and upgraded into a full service Sport Bar, Restaurant and Lounge. Once renovations are complete, the space could potentially be outsourced to a third party provider.

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4. Marketing Analysis This section will examine the key market characteristics that the leadership of Hillstone Holdings, LLC consider essential to the ongoing strategic planning and decision-making processes of the company.

Market Segmentation The accompanying chart shows a breakdown of the key customer market for the U.S. Hotel and Motel industry as it would apply to the Pearl River Resort operated by Hillstone Holdings, LLC. As illustrated, the market may be broken down into four key customers: domestic travelers, business travelers, international travelers, and conference, meetings and special events customers.

Domestic leisure travelers are the primary market, accounting for almost 49% of annual revenue for the industry, which would equate to approximately $350,000 for Hillstone Holdings during 2015. The second largest market is comprised of business travelers, who make up 24% of typical annual revenues. The United States is a popular destination for international visitors, and this is evidenced by the significant contribution (14%) they make to annual U.S. Hotel revenues. Revenues earned through meetings, events or conferences held within hotels typically represent the smallest market share, accounting for 13.5% of annual revenues. The Pearl River Resort will invest resources in developing its meeting spaces in order to enhance the earning potential of this revenue stream, which can help hotel businesses absorb periods of low occupancy.

Target Market Strategy The Hotel is conveniently situated on U.S. Highway 250, a main regional transport corridor that bisects Covington and links the State capital Montgomery with the City of Covington, before running south towards Panama City and other key Florida tourist

Hillstone Holdings, LLC Market Distribution Domestic Leisure Travelers

Business Travelers

International Leisure Travelers

Meetings, Events etc.

destinations. This prominent and accessible aspect

14.0%

will help attract potential customers who are passing through Covington, especially those traveling south toward the Florida beaches. In addition to this, the

24.0%

13.5%

48.5%

hotel will be marketing itself and its facilities through a broad-ranging strategy that will primarily target the following groups:

Courtesy of IBISWorld

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Business travelers to the Covington region who are looking for conveniently located overnight accommodation that offers comfortable facilities and hot food, plus a range of useful business services including free Internet access, car rental services, and other business amenities.

Vacationing families or individuals who are visiting or travelling through Covington to experience local attractions, and are seeking a family friendly hotel to accommodate overnight stays.

Domestic regional travelers who are looking for competitively priced accommodations located in close proximity to the famous retail hubs of nearby Covington or nearby attractions such as Fort Rucker and the U.S. Army Aviation Museum.

Local businesses, organizations or residents who are looking for a competitively priced venue to stage their meeting, conference, wedding reception or other hosted event.

Other travelers seeking affordable, comfortable accommodation as they pass through the Covington region en-route to the popular beach and tourist destinations of the Florida Panhandle.

Competitor Analysis The stretch of the U.S. Highway 250 that bisects the center of Covington has over 10 hotels, motels and inns along its route, providing a range of accommodation options for visitors to the local region. The following establishments may be classified as main competitors to the Pearl River Resort establishment operated by Hillstone Holdings, LLC based on the following factors: 1. The price of accommodation is comparable to the Quality Inn, Covington.

2. They offer comparable levels of facilities, accommodation and services.

3. They are within 3 miles of the Pearl River Resort and benefit from comparable access to key transport links and nearby Covington attractions.

Microtel Inn & Suites, Covington The Microtel Inn & Suites located in Covington is part of the Wyndham Hotel Group, one of the world’s largest and most diverse hotel chains with over 7,500 hotels worldwide. The Microtel subsidiary comprises mostly budget-hotels, and the chain scores consistently high within the economy hotel range for guest service and satisfaction.

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5. Sales Strategy Under the guidance of its experienced General Manager, and with a strategic improvement and enhancement plan funded by EB-5 investment, the Pearl River Resort will be well equipped to build on the positive outlook for the hotel industry and a prominent location on one of the major transport corridors in Southeast U.S. The enlarged team will be able to meet rising demand for accommodation, and a rejuvenation of the facilities, including restaurant, and onsite meeting spaces to attract a greater number of conference and special events customers will help the hotel fulfil its full growth potential. As a consequence of this strategic vision, the company is expected to generate sales revenues of over $900,000 during 2016 after recovering from a still slow 2015 mainly due to the changes taking place. Future revenue growth will be driven by an ongoing commitment to the following: 1. Effective marketing. The company will invest considerable resources in an ongoing marketing campaign to support. This investment will include the appointment of an experienced sales and marketing manager who will focus exclusively on promoting the hotel, and developing relationships with potential corporate clients such as local businesses or municipal bodies.

2. Strong focus on guest satisfaction and customer service. The improved facilities and enlarged workforce will be able to afford guests exceptional levels of service, amenities and overall satisfaction.

This is important for generating positive reviews from guests, which in turn raises the profile of the hotel and encourages new guests.

3. Maximizing ancillary revenue from meeting spaces, venue hire and other special events. The EB-5 funding will allow Hillstone Holdings to modernize and upgrade its meetings spaces, making them more attractive venues for business meetings, conferences or other special events. The hotel has the capacity to cater for gatherings of up to 150 persons, and the improvements will enable the company to take full advantage of this capacity. Similarly, renovation and upgrading of the onsite dinning site will eventually lead to a significant additional revenue stream for the company.

Sales Forecast EB-5 funding and a carefully structured sales strategy is expected to lead to a gradual increase in room occupancy through enhanced accommodation, guest and hotel facilities. This overall strategy is expected to lead to annual revenues rising from $428,000 in 2015 to about $1.5 million by the end of 2019. Over this period, the occupancy is forecast to slowly rise to 72%, with average daily rates (ADR) also increasing in line with the 11

improved room facilities; the restaurant will also benefit from the EB-5 capital injection, with its rejuvenation potentially contributing almost 16% of annual revenues within five years. The full breakdown of the five-year sales forecast is shown below:

Sales Forecast Availability

2015

2016

2017

2018

2019

65 19,255

84 29,930

84 30,660

84 30,660

84 30,660

Target Occupancy

2015

2016

2017

2018

2019

Occupancy Rate

45%

52%

60%

65%

72%

Available rooms per day Available rooms per quarter/year

Unit Sales

2015

2016

2017

2018

2019

6,579

15,486

18,247

20,071

22,078

Banquet room

16

63

72

83

95

Meeting room

16

36

41

47

54

309

498

573

659

758

Total Units

6,920

16,083

18,933

20,860

22,985

Unit Prices

2015

2016

2017

2018

2019

Rooms

50.00

51.50

53.05

54.64

56.28

Banquet room

300.00

309.00

318.27

327.82

337.65

Meeting room

100.00

103.00

106.09

109.27

112.55

Restaurant Income

300.00

309.00

318.27

327.82

337.65

Rooms

Restaurant Income

Sales

2015

2016

2017

2018

2019

328,950

797,529

968,003

1,096,679

1,242,550

Banquet room

4,800

19,467

22,915

27,209

32,077

Meeting room

1,600

3,708

4,350

5,136

6,078

92,700

153,882

182,369

216,033

255,939

$428,050

$974,586

$1,177,637

$1,345,057

$1,536,644

Direct Unit Costs

2015

128% 2016

21% 2017

14% 2018

14% 2019

Rooms Banquet room

9.75 85.00

10.04 87.55

10.34 90.18

10.65 92.89

10.97 95.68

Meeting room

25.00

25.75

26.52

27.32

28.14

Restaurant Income

85.00

87.55

90.18

92.89

95.68

Rooms

Restaurant Income

Total Sales

Direct Cost of Sales

2015

2016

2017

2018

2019

64,146

155,481

188,674

213,756

242,196

Banquet room

1,360

5,514

6,493

7,710

9,090

Meeting room

400

924

1,087

1,284

1,520

26,265

43,600

51,673

61,215

72,525

92,171

205,519

247,927

283,965

325,331

Rooms

Restaurant Income

Subtotal Direct Cost of Sales

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6. Personnel Hiring Plan This section examines the internal staffing structure of the company, providing details regarding individual job descriptions, as well as highlighting the relevant skills and experiences of the executive leadership role. It will also provide an insight into the expected progression of the company’s staffing requirements over the next five years, summarizing the anticipated timetable and salary costs of any future appointments, as well as detailing the new employment opportunities created as a direct result of the EB-5 funding program.

Company Structure The company has been incorporated as a Limited Liability Company (LLC), and operates within a strict hierarchical structure as illustrated by the chart below. This personnel structure provides clearly defined lines of responsibility and accountability. Proposed EB-5 investor and co-owner, Mr. Alfred Kuffman, will assume the advisory role of President, while Mrs. Lynd Joseph, the existing owner and ex-wife of an experienced hotelier, will exert complete operational, personnel and financial control over the day to day running of the Hotel in his capacity as General Manager of Hillstone Holdings, LLC. High-level strategic decisions will be jointly made by the two co-owners, Mr. Kuffman and Mrs. Joseph:

General Manager

President Alfred Kuffman

Lynd Varin

Sales Manager TBH

Maintenance Manager

Housekeeping Manager Jennifer Langford

Housekeepers TBH (5)

Wiley Morse

Front Desk Manager TBH

Front Desk Clerks TBH (5)

Planning & Development Manager Tony Camp

Room Attendants

TBH (2)

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Job Descriptions The following definitions provide brief descriptions of the roles and responsibilities to be filled as part of the overall team that will be appointed by Hillstone Holdings, LLC. President As President of Hillstone Holdings, LLC Mr. Alfred Kuffman will oversee hotel operations and co-manage the hotel with Mrs. Joseph. His core duties and responsibilities will include: policy development and management for both Accounts and Marketing; create budgets and assist with developing both short-term and long-term strategic goals; develop Human Resources goals and objectives for all areas of the hotel including both Housekeeping and Cleaning services; and oversee the management of Food & Beverage Services. As President, Mr. Kuffman will receive dividends based on the company’s performance.

General Manager Mrs. Lynd Joseph is the General Manager of Hillstone Holdings, LLC and is responsible for the effective operational management of the hotel. Mrs. Lynd assisted Mr. Varin Joseph over his seven years’ experience in successfully managing and operating hotels, and has further management expertise through running a franchised gas station and fast-food restaurants. Her duties include: creating short-term budgets; developing both short-term and long-term strategic goals; provide effective leadership of the hotel management team and team members; planning, directing and coordinating the service delivery of all the operational departments according to hotel and company service and quality standards; ensuring that costs are controlled effectively throughout the operational departments and results are analyzed regularly, and managing and developing the department heads; seeking and responding to guest feedback; develop marketing and sales strategies; and liaising with hotel chains on franchising matters. Mrs. Joseph will receive an annual salary of $50,000 for performing the role of General Manager for the time being.

Sales Manager The Sales Manager will work closely with the leadership team, and actively promote the hotel and its meeting room facilities in order to maximize occupancy rates and increase revenue. This will be especially important given the EB-5 investment and how these funds will be used to rejuvenate the Hotel’s accommodation and facilities. The role will entail developing relationships with key regional stakeholders, in concert with the Planning & Development Manager, such as local attractions, tourism authorities, or businesses, to further market the hotel, as well as using other marketing channels such as online platform to maintain an ongoing marketing campaign. This position will attract an initial annual salary of $30,000, and commence in 2016.

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7. Financial Projections In addition to the previously stated information relating to the company’s structure and ownership; its corporate mission and primary objectives; its business operations; its sales and marketing strategies, and how these are influenced by both market and industry forces; and detailed personnel plan, this section will further examine the sustainability of the business model, and appraise the relative risk or return to investors, by presenting a series of robust financial modeling outcomes that have been developed by making reasonable and conservative estimates.

Projected Profit and Loss As the chart below illustrates, the company is expecting a modest loss of around $50,000 during 2015 as the renovation works undertaken during the latter half of 2015 affect the occupancy and marketability of the business. The following year will see a significant improvement in net profits, which are forecast to rise to around $130,000. During this year, Hillstone Holdings will invest heavily in much-needed human resources, increasing the company workforce by ten (10) new employees during the year. These staffing additions will help the company manage the growth in occupancy and onsite amenities as a result of the EB-5 funded renovation and enhancement plans. In 2017, the EB-5 funded improvement project will be approaching stabilization, and subsequently the hotel will continue to cater for a greater volume of patrons, as well as developing its additional revenues streams such as hosting business meetings or other special events. As a result, net profits will rise from over $250,000 in 2017 to over $400,000 by the end of 2019. Improving efficiencies and eventual business optimization will help the net margin grow steadily from -25% to 24% over the five years to 2019.

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The following chart shows the progression in the gross margin over the same five-year period, which will stay steady around 68% between 2015 and 2019, providing a reliable cost foundation for the leadership to effectively manage future financial expectations and growth strategies.

The full five-year profit and loss projection is shown on the following page. The gradual move towards stability in the gross margin is clearly evident and, once stabilized, this will empower the leadership with the confidence to make informed strategic and operational decisions, helping the hotel to achieve it long-term profit and growth objectives.

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8. Scenario and Feasibility Analysis This confidential business plan previously examined the financial implications that the proposed EB-5 investment would have on the Hotel operations of the company Hillstone Holdings, LLC. This examination involved a series of fiscal projections that were based on a series of assumptions. The resulting projections would change if the underlying assumptions change, and therefore it is important to understand the fluctuation or volatility of these financial results with changing circumstances, scenarios, and assumptions.

This section will measure financial performance of two key financial metrics – the business net worth by the third year (2017) and the monthly break-even point during 2017. The following scenarios were chosen as potentially likely outcomes for the local Hotel & Motel industry that Hillstone Holdings, LLC operates in: Scenario Analysis Scenario 1 - Worse than expected Growth

-10%

Inflation

10%

Scenario 2 - Nominal Growth

0%

Inflation

0%

Scenario 3 - Better than expected Growth

10%

Inflation

-10%

In all of these scenarios, the analyses rely on two key parameters to determine the volatility of financial performance: occupancy rate growth and fixed cost inflation. Occupancy rate growth is defined as the expected change in the number of hotel room sales year on year. Fixed cost inflation is the assumed increase in cost per year. In both metrics, these changes are multiplicative in nature, meaning that these are added to one (1) and then multiplied by the existing assumption in the model (i.e. fixed cost inflation factor of 100% implies that inflation in costs would be assumed to be at 6% rather than the nominal 3% applied throughout the fiscal projections for Hillstone Holdings, LLC).

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Scenario 1 Refers to a simulation in which all assumptions were too optimistic and the actual reality seems to setting lower than expected growth in occupancy rates combined with a higher fixed cost inflation. Since inflation rates (as per November 2014) are at an atypically low level, it is safe to expect that in a worse than expected inflation scenario, this number could increase significantly, while the chances of inflation being even lower than current levels are low.

Scenario 2 Reflects the exact assumptions made in the financial model as specified throughout Section 8. This model is based on a variable growth rate per year and a consistent inflation rate.

Scenario 3 Shows a better than expected simulation, where growth in occupancy rates, and therefore revenues, is 10% greater than expected, with a lower than expected rate of inflation in fixed costs.

Combinations of these three scenarios – better than expected, nominal, and worse than expected – yield a total of nine differing simulations.

Scenario Simulation Each of the two measured financial metrics – occupancy and fixed costs – presents 9 simulated outcomes based on combinations of the three aforementioned scenarios: Hotel Value by the end of 2017 Inflation Growth Rates Lower

Higher

Expected

Lower

$1,012,064

$2,103,729

$3,191,166

Expected

$2,564,862

$3,668,304

$4,767,517

Higher

$4,117,661

$5,232,879

$6,343,868

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Monthly Break Even Point in Sales for 2017 Inflation Growth Rates Lower

Higher

Expected

Lower

$69,136

$60,795

$53,013

Expected

$67,798

$59,899

$52,435

Higher

$66,915

$59,320

$52,068

Internal Rate of Return (%) Inflation Growth Rates Lower

Higher

Expected

Lower

-16%

-1%

11%

Expected

4%

16%

26%

Higher

20%

30%

39%

The figures in the center of each matrix match the results presented in the main financial section (Section 8) of the business plan and in the Appendices that follow. In both table, the best possible scenario is presented in the lower right corner – corresponding to highest growth rates and lowest fixed cost inflation rates – with the worst possible scenario depicted in the upper left. The results of these scenario simulations help to predict the risk of investment in such a business from a purely statistical standpoint, but it is nevertheless useful for understanding the implications of a business deviating from its cost estimates or expected growth trends.

A brief explanation of the previous tables is below: Business Value by 2017 Looking at table one, it appears that the business net worth expected for 2017 will be sensitive to changing economic conditions associated with worst or best case scenarios. The company acquired a hotel that was badly underperforming and in need of significant renovation and investment, and commenced its ownership of the Pearl River Resort with a negative net worth as a result of a large mortgage commitment and accumulated losses.

However, the hotel has an operational framework that is fairly resistant to fluctuations in occupancy rates, and therefore will be generating sufficient revenues, in either a best or worst case scenario, to absorb any consequences of delays in bringing the net worth to a positive position. The EB-5 investment program will affect an increase in staffing levels over the two year period to 2017, however with nominal cash reserves

19

expected to be in excess of $300,000 in 2017, any cash-flow deficiency relating to possible worst case scenarios will not impact the ability of the company to meet its rising salary costs nor affect its ability to meet its obligations in respect of long-term liability repayments. The long-term outlook for business net worth remains within acceptable standards, with the company expecting the stabilization of its EB-5 funded improvement project to only occur towards the end of 2017, and even in the worst possible scenario (Hotel value of $95,143) the company will still have increased its value by over $1.6 million as todays value with a carrying loss could be argued to be at -$1.5 million using the same valuation method.

Monthly break-even point by 2017 The table shows how resilient the monthly break-even point is to any best or worst case scenarios, with just minor fluctuations in the expected 2017 break-even. This resilience underlines how the core hotel operations are able to withstand external pressures.

Internal Rate of Return The internal rate of return shown above provides a good representation of the return on investment. It is defined as the capital rate at which the net present value of the cash flow would become zero. The table provides a modest return on investment of a reasonable 6% by using only the first five years of operations. This is a healthy return considering that bank deposits and existing interest rates on financial assets are between 0 and 1.5%. In the worst case scenario however the return would be negative, clearly presenting the case that the EB5 capital is at risk. On the other end, the business could provide a return of up to 39%, which is a significant return.

20

Conclusion The proposed $500,000 EB-5 investment funding will help the company improve its operational capacity by increasing its workforce and providing working capital to rejuvenate and promote its facilities. The resilience of the operational model is highlighted by the relatively narrow fluctuation in the monthly break-even of the business under best and worst case scenarios, and this means that the EB-5 investment will be able to provide sufficient liquidity for the hotel to be able to absorb any cash deficiencies arising out of lower than expected occupancy rates and higher than expected growth in fixed costs as well as fulfilling its other goals. This reinforces the robust strategic and investment appraisal approach the current owner and the proposed EB-5 investor has taken in respect of the rejuvenation and staff recruitment project and funding options. The business net worth is impacted by a lack of goodwill value being applied to the company during the acquisition process of the Pearl River Resort, however the overall movement in net worth – regardless of best or worst case scenarios – remains strongly positive over the first three years, and will continue to grow following this period once the EB-5 project has delivered the proposed improvements and the hotel operations stabilize.

The graph below provides a useful visual aid for analyzing the net worth of the business over the projected five year period, showing the expected net worth of $632,000 by the end of 2019. The results of the best and worst case possible scenarios are shown by the green and dark blue lines respectively.

21

Appendix The following information is presented in this plan to illustrate financial details, projections, general assumptions, and expected results. As in any business plan, success is solely dependent on the business execution and the circumstances that surround its operations. The objective of these projections is therefore to aid the entrepreneur on understanding the business model, along with the feasibility of such business development in current market conditions and with the underlying assumptions considered only as part of this study.

Table 1: Sales Forecast

Sales Forecast Availability

1Q 46 4,198

2Q 46 4,198

3Q 54 4,928

4Q 65 5,931

26%

26%

35%

45%

1,092

1,092

1,725

2,670

Banquet room

0

0

7

Meeting room

0

0

7

Available rooms per day Available rooms per quarter/year

Restaurant Income

Total Units Rooms

2017

2018

2019

84 29,930

84 30,660

84 30,660

84 30,660

2016

2017

2018

2019

52%

60%

65%

72%

2Q 84 7,665

3Q 84 7,665

4Q 84 7,665

52%

52%

52%

52%

2016

2017

2018

2019

6,579

3,588

3,966

3,966

3,966

15,486

18,247

20,071

22,078

9

16

12

15

18

18

63

72

83

95

9

16

9

9

9

9

36

41

47

54

65 19,255

2015

Unit Sales Rooms

2016

1Q 76 6,935

Target Occupancy Occupancy Rate

2015

45%

2015

60

69

81

99

309

111

120

129

138

498

573

659

758

1,152

1,161

1,820

2,787

6,920

3,720

4,110

4,122

4,131

16,083

18,933

20,860

22,985

54,600

54,600

86,250

133,500

328,950

184,782

204,249

204,249

204,249

797,529

968,003

1,096,679

1,242,550

Banquet room

0

0

2,100

2,700

4,800

3,708

4,635

5,562

5,562

19,467

22,915

27,209

32,077

Meeting room

0

0

700

900

1,600

927

927

927

927

3,708

4,350

5,136

6,078

20,700

24,300

29,700

92,700

34,299

37,080

39,861

42,642

153,882

182,369

216,033

255,939

$428,050 $223,716 $246,891 $250,599 $253,380

$974,586

$1,177,637

$1,345,057

$1,536,644

Restaurant Income

Total Sales

18,000 $72,600

$75,300 $113,350 $166,800

22

Table 2: Personnel Hiring Plan by Quarter Headcount Table Employee Names/Titles

1Q

2Q

3Q

4Q

2015

1Q

2Q

3Q

4Q

2016

2017

2018

2019

Operations

2.0

2.0

2.0

2.0

2.0

6.0

6.0

6.0

6.0

7.0

7.0

9.0

9.0

Room Attendants

0.0

0.0

0.0

0.0

0.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Jennifer Langford - Housekeeping Manager

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Maintenance Manager - Wiley Morse

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Housekeepers

0.0

0.0

0.0

0.0

0.0

2.0

2.0

2.0

2.0

3.0

3.0

5.0

5.0

Sales and Marketing

0.0

0.0

0.0

0.0

0.0

5.0

5.0

5.0

5.0

5.0

6.0

7.0

7.0

Sales Manager

0.0

0.0

0.0

0.0

0.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Front Desk Manager

0.0

0.0

0.0

0.0

0.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Front Desk Recepionists

0.0

0.0

0.0

0.0

0.0

3.0

3.0

3.0

3.0

3.0

4.0

5.0

5.0

General and Administrative

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Tony Camp - Planning & Development Manager

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Executives

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Alfred Kuffman - President

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Mrs. Lynd Varin

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

Total Staff

5.0

5.0

5.0

5.0

5.0

14.0

14.0

14.0

14.0

15.0

16.0

19.0

19.0

23

Table 3: Personnel Projected Salaries Expected Wages Employee Names/Titles

1Q

2Q

3Q

4Q

2015

1Q

2Q

3Q

4Q

2016

2017

2018

2019

$15,000

$15,000

$15,000

$15,000

$60,000

$31,930

$31,930

$31,930

$31,930

$127,720

$131,552

$160,267

$165,075

0

0

0

0

0

7,725

7,725

7,725

7,725

30,900

31,827

32,782

33,765

Jennifer Langford - Housekeeping Manager

7,500

7,500

7,500

7,500

30,000

7,725

7,725

7,725

7,725

30,900

31,827

32,782

33,765

Maintenance Manager - Wiley Morse

7,500

7,500

7,500

7,500

30,000

7,725

7,725

7,725

7,725

30,900

31,827

32,782

33,765

0

0

0

0

0

8,755

8,755

8,755

8,755

35,020

36,071

61,921

63,779

$0

$0

$0

$0

$0

$27,295

$27,295

$27,295

$27,295

$109,180

$130,491

$152,982

$157,571

Sales Manager

0

0

0

0

0

7,725

7,725

7,725

7,725

30,900

31,827

32,782

33,765

Front Desk Manager

0

0

0

0

0

6,438

6,438

6,438

6,438

25,750

26,523

27,318

28,138

Front Desk Recepionists

0

0

0

0

0

13,133

13,133

13,133

13,133

52,530

72,141

92,882

95,668

$9,000

$9,000

$9,000

$9,000

$36,000

$9,270

$9,270

$9,270

$9,270

$37,080

$38,192

$39,338

$40,518

9,000

9,000

9,000

9,000

36,000

9,270

9,270

9,270

9,270

37,080

38,192

39,338

40,518

$12,500

$12,500

$12,500

$12,500

$50,000

$12,875

$12,875

$12,875

$12,875

$51,500

$53,045

$54,636

$56,275

0

0

0

0

0

0

0

0

0

0

0

0

0

Mrs. Lynd Varin

12,500

12,500

12,500

12,500

50,000

12,875

12,875

12,875

12,875

51,500

53,045

54,636

56,275

Total Wages

$36,500

$36,500

$36,500

$36,500

$146,000

$81,370

$81,370

$81,370

$81,370

$325,480

$353,280

$407,223

$419,440

5.0

5.0

5.0

5.0

5.0

14.0

14.0

14.0

14.0

15.0

16.0

19.0

19.0

Operations Room Attendants

Housekeepers Sales and Marketing

General and Administrative Tony Camp - Planning & Development Manager Executives Alfred Kuffman - President

Total Staff

24

Table 4: Quarterly Profit and Loss Profit & Loss Statement 2015

2016

2017

2018

2019

Sales Direct Cost of Sales Operations Payroll Other Total Cost of Sales

1Q $72,600 15,747 15,000 0 30,747

2Q $75,300 16,512 15,000 0 31,512

3Q $113,350 24,473 15,000 0 39,473

4Q $166,800 35,439 15,000 0 50,439

$428,050 92,171 60,000 0 152,171

1Q $223,716 47,023 31,930 0 78,953

2Q $246,891 51,870 31,930 0 83,800

3Q $250,599 52,919 31,930 0 84,849

4Q $253,380 53,707 31,930 0 85,637

$974,586 205,519 127,720 0 333,239

Gross Margin Gross Margin %

$41,853 58%

$43,788 58%

$73,877 65%

$116,361 70%

$275,879 64%

$144,763 65%

$163,091 66%

$165,750 66%

$167,743 66%

$641,347 66%

$798,158 68%

$900,825 $1,046,238 67% 68%

Sales and Marketing Expenses Sales and Marketing Payroll Advertising/Promotion Travel Miscellaneous Total Sales and Marketing Expenses

0 3,000 600 0 $3,600

0 3,000 600 0 $3,600

0 3,000 600 0 $3,600

0 3,000 600 0 $3,600

0 12,000 2,400 0 $14,400

27,295 4,474 618 0 $32,387

27,295 4,938 618 0 $32,851

27,295 5,012 618 0 $32,925

27,295 5,068 618 0 $32,981

109,180 19,492 2,472 0 $131,144

130,491 23,553 2,546 0 $156,590

152,982 26,901 2,623 0 $182,505

157,571 30,733 2,701 0 $191,005

General and Administrative Expenses General and Administrative Payroll Contractors/Outsroucing Franchise Royalty Fees Business Supplies Utilities Insurance Payroll Taxes, Insurance, Benefits Total General and Administrative

9,000 3,000 0 6,000 21,250 4,500 3,650 $50,400

9,000 3,000 0 6,000 21,250 4,500 3,650 $50,400

9,000 3,000 0 6,000 21,250 4,500 3,650 $50,400

9,000 3,000 0 6,000 21,250 4,500 3,650 $50,400

36,000 12,000 0 24,000 85,000 18,000 14,600 $201,600

9,270 3,090 11,186 6,180 21,888 4,635 8,137 $67,475

9,270 3,090 12,345 6,180 21,888 4,635 8,137 $68,634

9,270 3,090 12,530 6,180 21,888 4,635 8,137 $68,819

9,270 3,090 12,669 6,180 21,888 4,635 8,137 $68,959

37,080 12,360 48,729 24,720 87,550 18,540 32,548 $273,887

38,192 12,731 58,882 25,462 90,177 19,096 35,328 $292,598

39,338 13,113 67,253 26,225 92,882 19,669 40,722 $312,315

40,518 13,506 76,832 27,012 95,668 20,259 41,944 $329,246

Other Expenses: Executives Payroll Audit Fees Consultancy Fee (Legal, Tax etc.)

Total Other Expenses

12,500 0 1,500 $14,000

12,500 0 1,500 $14,000

12,500 0 1,500 $14,000

12,500 0 1,500 $14,000

50,000 0 6,000 $56,000

12,875 0 1,545 $14,420

12,875 0 1,545 $14,420

12,875 0 1,545 $14,420

12,875 0 1,545 $14,420

51,500 0 6,180 $57,680

53,045 0 6,365 $59,410

54,636 0 6,556 $61,193

56,275 0 6,753 $63,028

Total Operating Expenses

$68,000

$68,000

$68,000

$68,000

$272,000

$114,283

$115,905

$116,164

$116,359

$462,711

$508,598

$556,013

$583,280

($26,147) 13,573 634 0 ($40,354)

($24,212) 13,160 951 0 ($38,323)

$5,877 12,741 951 0 ($7,815)

$48,361 12,317 951 0 $35,093

$3,879 51,791 3,487 0 ($51,399)

$30,480 11,889 951 0 $17,640

$47,186 11,453 951 0 $34,782

$49,586 11,013 951 0 $37,622

$51,384 10,569 951 0 $39,864

$178,636 44,924 3,804 0 $129,908

$289,560 28,975 3,804 0 $256,781

$344,812 30,118 3,804 0 $310,890

$462,958 22,141 3,804 0 $437,013

-56%

-51%

-7%

21%

-12%

8%

14%

15%

16%

13%

22%

23%

28%

EBITDA Interest Expense Depreciation Taxes Incurred Net Earnings Net Margin

$1,177,637 $1,345,057 $1,536,644 247,927 283,965 325,331 131,552 160,267 165,075 0 0 0 379,479 444,232 490,406

25

Table 5: Quarterly Cash Flow Pro Forma Cash Flow 1Q Cash Received from Operations Sales Cash from Receivables Subtotal Cash from Operations

2Q

3Q

4Q

2015

1Q

2Q

3Q

4Q

2016

2017

2018

2019

72,600 0 72,600

75,300 0 75,300

113,350 0 113,350

166,800 0 166,800

428,050 0 428,050

223,716 0 223,716

246,891 0 246,891

250,599 0 250,599

253,380 0 253,380

974,586 0 974,586

1,177,637 0 1,177,637

1,345,057 0 1,345,057

1,536,644 0 1,536,644

Additional Cash Received Non-Operating (Other) Income Sales Tax, VAT, HST/GST Received New Liabilities (interest-free) New Current Borrowings New Long-term Liabilities Other Funding New Investment Received Sales of Long Term Assets Sales of other Current Assets Subtotal Additional Cash Received

0 3,630 100,000 0 0 0 110,000 0 0 213,630

0 3,765 0 0 0 0 0 0 0 3,765

0 5,669 0 0 0 0 390,000 0 0 395,669

0 8,340 50,000 0 0 0 0 0 0 58,340

0 21,404 150,000 0 0 0 500,000 0 0 671,404

0 11,186 0 0 0 0 0 0 0 11,186

0 12,344 50,000 0 0 0 0 0 0 62,344

0 12,530 0 0 0 0 0 0 0 12,530

0 12,669 0 0 0 0 0 0 0 12,669

0 48,729 50,000 0 0 0 0 0 0 98,729

0 58,882 0 0 0 0 0 0 0 58,882

0 67,253 0 0 0 0 0 0 0 67,253

0 76,832 0 0 0 0 0 0 0 76,832

Operating Expenditures Cash Spending Bill Payments Subtotal Operating Expenditures

107,220 0 107,220

106,807 0 106,807

113,329 0 113,329

122,341 0 122,341

449,697 0 449,697

195,407 0 195,407

200,652 0 200,652

200,732 0 200,732

200,483 0 200,483

797,274 0 797,274

865,379 0 865,379

969,148 0 969,148

1,023,302 0 1,023,302

3,630 0 0 32,933 0 1,625 18,534 0 6,250 0 62,972

3,765 0 0 33,346 0 0 5,980 0 6,250 0 49,341

5,669 0 0 33,765 0 0 6,886 200,000 6,250 0 252,571

8,340 0 0 34,189 0 0 8,427 0 6,250 0 57,206

21,404 0 0 134,234 0 1,625 39,827 200,000 25,000 0 422,090

11,186 0 0 34,617 0 0 9,984 0 6,250 0 62,037

12,344 0 0 35,053 0 0 10,919 0 6,250 0 64,566

12,530 0 0 35,493 0 0 11,760 0 6,250 0 66,033

12,669 0 0 35,937 0 0 12,599 0 6,250 0 67,455

48,729 0 0 141,101 0 0 45,262 0 25,000 0 260,092

58,882 0 0 148,321 0 0 50,140 0 25,000 0 282,343

67,253 0 0 155,907 0 0 59,424 0 25,000 0 307,584

76,832 0 0 163,884 0 0 70,397 0 25,000 0 336,113

116,038

(77,083)

143,119

45,593

227,667

(22,542)

44,017

(3,637)

(1,889)

15,949

88,797

135,578

254,061

$115,220

$38,137

$181,256

$226,849

$226,849

$204,307

$248,324

$244,687

$242,798

$242,798

$331,595

$467,173

$721,235

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Int-Free Repayment Long-term Liabilities Principal Repayment Other Investment Payback Purchase of Other Current Assets Purchase of Inventory Remodelling & Rennovation Dividends (Paid to Dr. Shah) Taxes on Earnings Subtotal Additional Cash Spent Net Cash Flow Cash Balance

26

Table 6: Balance Sheet Pro Forma Balance Sheet 2015

1Q

2Q

3Q

4Q

2016

2017

2018

2019

181,256 0 13,550 0

226,849 0 13,562 0

204,307 0 13,828 0

248,324 0 14,241 0

244,687 0 14,707 0

242,798 0 15,225 0

242,798 0 15,225 0

331,595 0 13,692 0

467,173 0 11,900 0

721,235 0 9,773 0

51,686

194,807

240,411

218,136

262,565

259,395

258,022

258,022

345,287

479,074

731,008

63,388 634

63,388 1,585

263,388 2,536

263,388 3,487

263,388 4,438

263,388 5,389

263,388 6,340

263,388 7,291

263,388 7,291

263,388 11,095

263,388 14,899

263,388 18,703

62,754

61,803

260,852

259,901

258,950

257,999

257,048

256,097

256,097

252,293

248,489

244,685

$191,408

$113,489

$455,659

$500,312

$477,086

$520,564

$516,443

$514,119

$514,119

$597,580

$727,563

$975,693

Current Liabilities Accounts Payable Current Borrowing Other Liabilities

0 0 111,980

0 0 111,980

0 0 111,980

0 0 161,980

0 0 161,980

0 0 211,980

0 0 211,980

0 0 211,980

0 0 211,980

0 0 211,980

0 0 211,980

0 0 211,980

Total Current Liabilities

111,980

111,980

111,980

161,980

161,980

211,980

211,980

211,980

211,980

211,980

211,980

211,980

1,063,867

1,030,521

996,755

962,566

927,949

892,896

857,402

821,465

821,465

673,144

517,238

353,354

Total Liabilities

1,175,847

1,142,501

1,108,735

1,124,546

1,089,929

1,104,876

1,069,382

1,033,445

1,033,445

885,124

729,218

565,334

Equity Paid-in Capital Retained Earnings

215,000 -1,199,439

215,000 -1,244,012

605,000 -1,258,077

605,000 -1,229,234

605,000 -1,217,843

605,000 -1,189,311

605,000 -1,157,940

605,000 -1,124,326

605,000 -1,124,326

605,000 -892,544

605,000 -606,654

605,000 -194,641

-984,439

-1,029,012

-653,077

-624,234

-612,843

-584,311

-552,940

-519,326

-519,326

-287,544

-1,654

410,359

$191,408

$113,489

$455,659

$500,312

$477,086

$520,564

$516,443

$514,119

$514,119

$597,580

$727,563

$975,693

($984,439) ($1,029,012) ($653,077)

($734,271)

$252,005

$496,888

$537,451

$569,484 $1,855,828 $3,668,304 $4,441,287 $6,243,046

1Q

2Q

Current Assets Cash Accounts Receivable Inventory Other Current Assets

115,220 0 13,434 0

38,137 0 13,549 0

Total Current Assets

128,654

Long-term Assets Long-term Assets Accumulated Depreciation

Total Long-term Assets

Assets

Total Assets

3Q4Q

Liabilities and Equity

Long Term Liabilities

Total Long Term Liabilities

Total Equity

Total Liabilities and Equity Expected Value @ 7% Cap Rate

27