Projected Profit and Loss. The below mentioned Profit Loss table is a rough draft. The rent and other additional expenses are shown to be zero as we will be operating from our individual houses until we find a place to rent. The first year estimated profits will be $2.4M approximately but can increase and decrease depending upon subscriber base, and the external factors. The table will be updated regularly as the information will flow in. N umbers above represented in Thousands of Dollars Table: Profit and Loss Pro Forma Profit and Loss FY 2017 FY 2018 FY 2019 Sales $3,286 $6,449 $11,932 Direct Cost of Sales $838 $1,441 $2,598 Other Costs of Sales $0 $0 $0 Total Cost of Sales $838 $1,441 $2,598 Gross Margin $2,448 $5,008 $9,334 Gross Margin % 74.49% 77.65% 78.23% Expenses Payroll $0 $1,900 $1,975 Marketing/Promotion $80 $250 $475 Depreciation $0 $0 $0 Payroll Taxes $0 $61 $63 Other $297 $545 $622 Total Operating Expenses $377 $2,756 $3,135 Profit Before Interest and Taxes $2,071 $2,252 $6,199 EBITDA $2,151 $4,299 $9,482 Interest Expense $450 $610 $960 Taxes Incurred $368 $752 $1,401 Net Profit $1,333 $2,937 $7,121 Net Profit/Sales 40.56% 45.54% 59.68% 600000 500000 400000 300000 200000 100000 0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Profit Annually 7000 6000 5000 4000 3000 2000 1000 0 2017 2018 2019 Annual Gross Margin 2019 2018 2017 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Numbers above represented in Thousands of Dollars
Projected Profit and Loss. The following table and charts highlight the projected profit and loss for three years. Table: Profit and Loss Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $0 $0 $0 Direct Cost of Sales $0 $0 $0 Other Costs of Sales $0 $0 $0 Total Cost of Sales $0 $0 $0 Gross Margin $0 $0 $0 Gross Margin % 0.00% 0.00% 0.00% Expenses Payroll $0 $0 $0 Marketing/Promotion $0 $0 $0 Depreciation $0 $0 $0 Rent $0 $0 $0 Utilities $0 $0 $0 Insurance $0 $0 $0 Payroll Taxes $0 $0 $0 Other $0 $0 $0 Total Operating Expenses $0 $0 $0 Profit Before Interest and Taxes $0 $0 $0 EBITDA $0 $0 $0 Interest Expense $0 $0 $0 Taxes Incurred $0 $0 $0 Net Profit $0 $0 $0 Net Profit/Sales 0.00% 0.00% 0.00%
Projected Profit and Loss. The Profit and Loss table below explains the projections for sales versus expenses. Total operating expenses for years 1, 2 and 3 grow from $242,938 to $282,278 and finally $303,671 respectively. The major expense is payroll and another significant one is credit card fees. Gas stations have to pay a premium to the credit card companies based on the number of gallons sold using a particular vendor’s credit card. Nonetheless, net profits remain positive from year one at $90,999, and rise to $106,098 in final year of the plan. Table: Profit and Loss Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $3,797,585 $4,478,250 $5,032,495 Direct Cost of Sales $3,424,648 $4,051,929 $4,577,256 Other Costs of Sales $0 $0 $0 Total Cost of Sales $3,424,648 $4,051,929 $4,577,256 Gross Margin $372,937 $426,321 $455,239 Gross Margin % 9.82% 9.52% 9.05% Expenses Payroll $134,772 $138,929 $143,652 Marketing/Promotion $600 $500 $500 Depreciation $0 $24,960 $24,321 Credit Card Fees $20,000 $22,500 $27,500 Utilities $25,000 $27,000 $30,000 Insurance $9,500 $10,500 $11,000 Payroll Taxes $20,216 $20,839 $21,548 Other $32,850 $37,050 $45,150 Total Operating Expenses $242,938 $282,278 $303,671 Profit Before Interest and Taxes $129,999 $144,043 $151,568 EBITDA $129,999 $169,003 $175,889 Interest Expense $0 $0 $0 Taxes Incurred $39,000 $43,213 $45,470 Net Profit $90,999 $100,830 $106,098 Net Profit/Sales 2.40% 2.25% 2.11% Chart: Profit Monthly Chart: Profit Yearly Chart: Gross Margin Monthly Chart: Gross Margin Yearly
Projected Profit and Loss. Profit & Loss Projection $' Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Fiscal Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Net Sales 0 0 0 0 0 1,000,000 1,916,667 1,916,667 1,916,666 1,916,667 1,916,667 1,916,666 12,500,000 Cost of Goods Sold Selling Expenses 0 0 0 0 0 300,000 583,333 583,333 583,334 583,333 583,333 583,334 3,800,000 Total Cost of Goods Sold 0 0 0 0 0 300,000 583,333 583,333 583,334 583,333 583,333 583,334 3,800,000 Gross Profit 0 0 0 0 0 700,000 1,333,334 1,333,334 1,333,332 1,333,334 1,333,334 1,333,332 8,700,000 % of Gross Sales 0.00% 0.00% 0.00% 0.00% 0.00% 70.00% 69.57% 69.57% 69.57% 69.57% 69.57% 69.57% 69.60% Operating Expenses Sales & Marketing Development Fee 384,327 384,327 384,327 384,327 384,327 384,327 384,327 384,327 384,327 384,327 384,327 384,327 4,611,924 Sales and Marketing 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 390,000 Advertising and Promotion 61,667 61,667 61,666 61,667 61,667 61,666 83,333 83,333 83,333 83,333 83,333 83,333 869,998 Promotional Events 60,000 60,000 60,000 60,000 60,000 60,000 103,333 103,333 103,333 103,333 103,333 103,333 979,998 Market Analysis/Studies 61,667 61,667 61,666 61,667 61,667 61,666 61,667 61,667 61,667 61,667 61,667 61,667 740,002 Total Sales & Marketing 600,161 600,161 600,159 600,161 600,161 600,159 665,160 665,160 665,160 665,160 665,160 665,160 7,591,922 General & Administration All Risk Insurance 138,000 138,000 138,000 138,000 138,000 138,000 138,000 138,000 138,000 138,000 138,000 138,000 1,656,000 Agency/Approval Coordination 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000 Architecture and Engineering 326,262 326,262 326,262 326,262 326,262 326,262 447,096 447,096 447,096 447,096 447,096 447,096 4,640,148 Surveys 67,333 67,333 67,334 67,333 67,333 67,334 58,667 58,667 58,667 58,667 58,667 58,667 756,002 Salaries/Benefits 375,792 375,792 375,792 375,792 375,792 375,792 375,792 375,792 375,792 375,792 375,792 375,792 4,509,504 SOGEDEV US Office Space 33,470 33,470 33,470 33,470 33,470 33,470 33,470 33,470 33,470 33,470 33,470 33,470 401,640 Administrative Fees 460,000 460,000 460,000 460,000 460,000 760,000 460,000 460,000 460,000 460,000 460,000 460,000 5,820,000 Overhead - Accounting 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 Village Cost - Operating Cost 39...
