Regan Arts Income Statement 2015 Jan-15 Feb-15 r-15 pr-15 May-15 Jun-15 Jul-15 415 ep-15 Nov-15 Dec-15 FY 2015 Revenue O 408,733 1,577,905 623,255 317,400 15,975 (14,830) (190,682) 1,887,771 792,200 (90,426) (314,839) 5,012,461 Direct Costs PPB oO 64,000 215,264 = =111,308 44,184 21,864 (6,758) (27,129) 157,065 350,411 (13,320) (45,491) 871,399 Plant Expense oO 17,165 71,925 $4,917 33,800 34,457 20,913 (7,909) 33,881 115,001 (10,929) (14,945) 348,277 Royalty oO 66,836 238,548 61,401 38,749 45,286 21,750 13,105 199,597 88,754 0 12,289 786,316 Selling & Distribution oO 53,135 205,128 81,023 41,262 2,077 (2,928) (24,789) 245,410 102,986 (11,755 (40,929 651,620 O 201,136 730,864 308,649 157,995 103,684 33,978 (46,722) 635,954 657,152 (36,004) (89,076) 2,657,612 Gross Marin O 207,597 847,041 314,606 159,405 (87,709) (48,808) (143,960) 1,251,816 135,047 (54,422) (225,763) 2,354,849 Other Expenses || oO 50,000 285,000 58,000 73,000 62,500 27,500 5,000 246,000 153,000 0 tt) 960,000 Freight oO 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) (189,634) 162,137 (31,760) (195,447) (431,734) (358,014) (416,833) 681,289 (355,157) (319,862) (494,740) (2,285,196) EFTA00596828

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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) ts) tt) t) 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 Mar-15 pr-15 15 Jun-15 Jul-15 QO 408,733 1,577,905 623,255 317,400 t) 53,135) (205,128 81,023 41,262} O 355,598 1,372,778 542,232 276,138 295,000 205,000 1,250 oO 0 i) 0 0 o 250,000 250,000 250,000 250,000 83,333 473,350 123,700 116,725 158,700 44,775 133,546 65,080 73,347 92,903 46,644 193,140 193,140 = 193,140 = :193,140 = 193,140 30,000 30,000 30,000 30,000 30,000 285,000 58,000 73,000 62,500 27,500 64,464 12,926 16,412 16,085 6,266 27,300 27,300 27,300 27,300 27,300 70,000 10,000 0 0 10,000 0 Oo 0 0 0 10,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 1,836,800 990,146 796,174 845,628 483,958 1,836,800) (634,54: 576,604 (303,396) (207, 15 p-15 15,975 (14,830) 2,077 1,928 13,898 (12,902) 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 0 0 0 10,000 10,000 5,000 5,000 421,456 1,587,954 (407,558) (1,600, Nov-15 (190,682) 1,887,771 24,789 245,410) (165,893) 1,642,360 230,000 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 10,000 oO 83,333 oO oO 193,140 30,000 10,000 5,000 358,773 283,587 Dec-I5 FY 2015 792,200 102,936) 689,214 65,000 0 83,333 oO oO 193,140 30,000 oO 3,537 27,300 oO oO 10,000 5,000 417,310 5,417,726 (704,304) 4,713,422 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 13: EFTA00596829

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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 EFTA00596830

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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 EFTA00596831