Regan Arts Income Statement 2015 Jan-15 Feb-15 r-15 pr-15 May-15 Jun-15 Jul-15 ep-15 Nov-15 Dec-15 FY 2015 Revenue O 510,916 1,972,382 779,069 396,750 19,968 (18,538) (238,352) 2,359,713 990,249 (113,032) (393,549) 6,265,576 Direct Costs PPB oO 80,000 269,080 139,135 55,230 27,330 (8,448) (33,911) 196,332 438,014 (16,649) (56,864) 1,089,249 Plant Expense oO 21,456 89,906 68,646 42,251 43,071 26,142 (9,886) 42,352 143,752 (13,661) (18,682) 435,347 Royalty oO 86,240 305,942 80,432 50,027 56,608 28,342 17,192 255,116 111,215 0 15,833 1,006,946 Selling & Distribution oO 66,419 256,410 101,279 51,577 2,596 (2,410) (30,986) 306,763 128,732 (14,694 (51,161 814,525 O 254,115 921,338 389,492 199,085 129,605 43,627 = =(57,591) 800,562 821,713 (45,004) (110,874) 3,346,066 Gross Marin O 256,801 1,051,044 389,577 197,665 (109,636) (62,164) (180,761) 1,559,152 168,536 (68,028) (282,676) 2,919,510 Other Expenses | | oO $0,000 285,000 58,000 73,000 62,500 27,500 5,000 246,000 153,000 0 i) 960,000 Freight 0 11,791 64,464 12,926 16,412 16,085 6,266 2,433 59,087 50,764 0 3,537 243,765 Overhead 335,440 335,440 335,440 275,440 265,440 265,440 275,440 265,440 265,440 286,440 265,440 265,440 3,436,280 335,440 397,231 684,904 346,366 354,852 344,025 309,206 272,873 570,527 490,204 265,440 268,977 4,640,045 Net Profit (335,440) (140,430) 366,140 43,211 (157,187) (453,661) (371,370) (453,634) 988,625 (321,668) (333,468) (551,653) (1,720,535) EFTA00596824

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Regan Arts Cash Flow - 2015 Cash Inflow Revenue Selling & Distribution Cash Outflow Royalties - Advances (14) Additional{14) Royalty Payments Royalty Advances (15) PPB Plant Expense Salaries & Fringe Benefits Other Overhead = Freight Rent Leasehold Improvements Insurance Legal Fees Travel and Entertainment Net Cash Flow Jan-15 Feb-15 tt) ty) tt) tt) tt) ts) 141,000 91,250 250,000 250,000 0 100,000 0 26,820 193,140 193,140 30,000 30,000 0 50,000 0 11,791 27,300 27,300 70,000 70,000 0 oO 10,000 10,000 5,000 5,000 726,440 865,301 726, 865,301 510,916 1,972,382 256,410) 444,497 1,715,972 Mar-15 pr-15 ts) LY) 66,419} tt) 295,000 205,000 i) 250,000 250,000 473,350 123,700 133,546 65,080 193,140 193,140 30,000 30,000 285,000 58,000 64,464 12,926 27,300 27,300 70,000 = 10,000 0 oO 10,000 10,000 5,000 5,000 1,836,800 990,146 (1,836,800) (545,649) 1,250 0 250,000 116,725 73,347 193,140 30,000 73,000 16,412 27,300 0 0 10,000 5,000 796,174 919,798 779,069 101,279 677,790 0 0 250,000 158,700 92,903 193,140 30,000 62,500 16,085 27,300 0 0 10,000 5,000 845,628 396,750 51,577} 345,172 o o 83,333 44,775 46,644 193,140 30,000 27,500 6,266 27,300 10,000 i) 10,000 5,000 483,958 167,838) (138,786) 15 p-15 19,968 (18,538) 2,596) 2,410 17,372 (16,128) 33,750 368,750 0 0 83,333 83,333 17,000 456,920 14,500 108,424 193,140 193,140 30,000 30,000 5,000 246,000 2,433 59,087 27,300 27,300 0 i) 0 tt) 10,000 10,000 5,000 5,000 421,456 = 1,587,954 084) (1,604, Nov-15 (238,352) 2,359,713 30,986 306,763) (207,367) 2,052,951 230,000 0 83,333 526,305 185,000 193,140 30,000 153,000 50,764 27,300 10,000 11,000 10,000 5,000 1,514,842 1,7: 10,000 oO 83,333 oO oO 193,140 30,000 10,000 5,000 358,773 694,177 Dec-I5 FY 2015 990,249 128,732 861,517 65,000 0 83,333 oO oO 193,140 30,000 oO 3,537 27,300 0 0 10,000 5,000 417,310 444,207 6,772,158 880,381) 5,891,777 1,441,000 0 2,000,000 2,017,475 746,264 2,317,680 360,000 960,000 243,765 327,600 240,000 11,000 120,000 60,000 10,844,784 953,007} EFTA00596825

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Existing Employees Emploee 1: Employee 2: Employee 3: Editorial Intern Employee 5 Employee 6: Employee 7: Employee 8: Employee 9: Employee 10: Employee 11: Employee 12: Finance Manager (40% Allocation) New Hires Director of Publicity Junior Publicist Executive Assistant Editorial Assistant Senior Editor Interior Designer Total Salaries Fringe & Benefits Total Salaries and Fringe Benefits Yearly Salary 450,000 140,000 32,000 32,000 50,000 100,000 55,000 50,000 160,000 100,000 90,000 250,000 29,000 150,000 75,000 75,000 40,000 150,000 60,000 11% Janis Feb-15 Mar-isApr-isMay-15 Jun-15_ Juris Aug-is Sep-i5 Oct-15 Nov-l5 Dec-is | FY 2015 | 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 450,000 11,667 11,667 11,667 |11,667/ «11,667 «11,667 «11,667 «11,667 «11,667 «11,667 «11,667 |:11,667 140,000 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 32,000 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 2,667 32,000 4167 4,167, 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000 8333 8,333 «= 8,333,'s«8,333 8,333 «8,333 «8,333 «8,333 «8,333 «8,333,333. -«8,333 100,000 4583 4583 4583 4,583 4583 4,583 4,583 4583 4,583 4583 4,583 4,583 55,000 4167 4,167 4,167) 4,167) 4,267 4,167 4,167 4,167 4,167 4,167 4,167 = 4,167 ~— 50,000 13,333 13,333. «13,333. «13,333 «13,333 «13,333 «13,333 «13,333 «13,333 «13,333 «13,333 «13,333 160,000 8333 «8,333 8,333 83338333333 B333)— «8333 «8,333 «8,333 «8,333,333 «100,000 7500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000 20,833 © 20,833 © 20,833 «20,833 «20,833 © 20,833 «20,833 «20,833 ©=—20,833 «20,833 «= 20,833 ~=—«20,833 «250,000 2417 2,417 2,417,417 241724172? 241724172437?) 2,417— 2,417 29,000 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 150,000 6250 6,250 6,250 6,250 6,250 6250 6250 6250 6250 6250 6,250 6250 75,000 6250 6,250 6,250 6,250 6,250 6250 6,250 6250 6250 6250 6,250 6,250 75,000 3,333 «3,333 3,333 3,333 3,333 3,333 «3,333 «3,333 «3,333 «3,333 3,333 3,333 40,000 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 150,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 174,000 2,088,000 19,140 19,140 19,140 19,140 19,140 19,140 —:19,140_—*'19,140 19,140 19,140 19,140 19,140 229,680 193,140 193,140 193,140 193,140 193,140 193,140 193,140 193,140 193,140 193,140 193,140 193,140 2,317,680 EFTA00596826

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Expense Salaries Fringe & Benefits Rent Other Overheads Leasehold Improvements Insurance Legal Fees Travel and Entertainment Jan-15 174,000 11% 19,140 327,600 27,300 30,000 70,000 0 10,000 5,000 Total Overhead 335,440 Feb-15 =Mar-15 = Apr-15_— May-15 —Jun-15 Jul-15 174,000 174,000 174,000 174,000 174,000 174,000 19,140 19,140 19,140 19,140 19,140 19,140 27,300 27,300 27,300 27,300 = 27,300 27,300 30,000 30,000 30,000 30,000 30,000 30,000 70,000 70,000 10,000 0 Oo 10,000 ° ° 0 ° 0 0 10,000 10,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000 335,440 335,440 275,440 _265, 265,440 _275, ‘Aug-15 174,000 19,140 27,300 30,000 ° ° 10,000 5,000 265,440 Sep-15 174,000 19,140 27,300 30,000 o o 10,000 5,000 Oct-15 174,000 19,140 27,300 30,000 10,000 11,000 10,000 5,000 265,440 286,440 Nowis deci | F201 | 174,000 19,140 27,300 30,000 ° ° 10,000 5,000 174,000 19,140 27,300 30,000 o o 10,000 5,000 2,088,000 0 229,680 0 327,600 o 360,000 0 240,000 11,000 120,000 60,000 265,440 265,440 _ 3,436,280 EFTA00596827