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

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

Financial Resources (Required and Available)

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

· Revolving Credit Facility   - $ 25,000,000   market value
· Cash   - $ 20,000,000   market value
· Dues Receivable   - $ 1,000,000   market value

 

Expenses

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

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