SBSEF-FIN-REQ OSD Test Company #1 9876543210 false 9876543210 2023-01-01 2023-03-31 9876543210 2023-12-31 9876543210 1 2023-12-31 9876543210 2 2023-12-31 9876543210 3 2023-12-31 9876543210 1 2023-12-31 9876543210 2 2023-12-31 9876543210 3 2023-12-31 9876543210 4 2023-12-31 9876543210 3 2023-01-01 2023-12-31 9876543210 1 2023-12-31 9876543210 2 2023-12-31 9876543210 2023-01-01 2023-12-31 9876543210 2023-03-31 9876543210 2022-12-31 9876543210 2022-01-01 2022-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

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

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

Financial Resources (Required and Available)

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

| · | Revolving Credit Facility - $ 25,000,000 market value

| · | Cash - $ 20,000,000 market value

| · | Dues Receivable - $ 1,000,000 market value

Expenses

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

| · | Technological expense - $ 2,000,000

| · | Lease expens e - $ 3,000,000

| · | Advertising expense - $ 5,000,000

| · | Patent expense - $ 10,000,000

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

Wind-Down Costs

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

| · | Asset retirement cost - $ 2,000,000

| · | Severance cost - $ 4,000,000

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

Balance Sheet (in millions)

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

Income and Expense Statement (in millions)

|  | 3 Months ended Mar. 31, 2023 |  | 3 Months ended Mar. 31, 2022
Revenue |  | $ | 980 |  |  | $ | 980 |
Operating Expenses |  |  |  |  |  |  |  |
Compensation & benefits |  | $ | 150 |  |  |  | 150 |
Professional services |  | $ | 100 |  |  |  | 100 |
Other expenses |  | $ | 500 |  |  |  | 500 |
Total Operating Expenses |  | $ | 750 |  |  |  | 750 |
Other non-operating income |  |  | 60 |  |  |  | 60 |
Net Income (Loss) |  | $ | 290 |  |  |  | 290 |

Statement of Cash Flows (in millions)

|  | 3 Months ended Dec. 31, 2023 |  |
Net income |  | $ | 290 |  |  |  |  |
Net Changes in other assets |  |  | 0 |  |  |  |  |
Net cash provided by operating activities |  |  | 290 |  |  |  |  |
Net cash provided by investing activities |  |  | 0 |  |  |  |  |
Net cash provided by financing activities |  |  | 0 |  |  |  |  |
Changes in cash, cash equivalents and restricted cash |  | $ | 290 |  |  |  |  |
Cash, cash equivalents and restricted cash, beginning of period |  | $ | 780 |  |  |  |  |
Cash, cash equivalents and restricted cash, end of period |  | $ | 1,070 |  |  |  |  |