FINANCIAL STATEMENTS

AND HIGHLIGHTS
2020-2021
TABLE OF CONTENTS

BUSINESS RATIONALE 1
COMPANY OVERVIEW

FINANCIAL STATEMENTS 2
BREAK EVEN ANALYSIS 3

BALANCE SHEET 4

PROFIT AND LOSS 5

SALE PROJECTIONS 7

SALES

CASH BUDGET SPREADSHEET 8

BANK BALANCE

TABLE OF CONTENTS
 BUSINESS RATIONALE
Within the last several decades, the issue of plastic pollution has been
growing at an unprecedented rate with more and more plastic being
dumped into landfills every year. We saw shortcomings with being eco-
conscious in the area of household goods, so we directed our drive to help
the environment. Our mission at Fillosophy is to completely remove the
waste that comes with purchasing household goods, while making the eco-
friendly lifestyle as convenient as possible for our customers.

COMPANY OVERVIEW
Fillosophy was established in October of 2020 as an S-Corp, LLC, located
at 17816 Bushard St. Fountain Valley, CA 92708. We utilize a system of
trucks and trailers as refill stations to sell eco-friendly household goods such
as detergents, soaps, cleaners, and many more. Consumers are
encouraged to bring their own reusable containers to fill up on daily
products.Our eco-friendly push of more sustainable products is to remove
the plastic waste that traditionally comes with disposable plastic bottles.
We are primarily a retail store and currently serve multiple destinations in
the area of Orange County. Currently, Fillosophy operates in multiple areas
of Orange County from Fullerton to Mission Viejo. However, to help serve
more distant locations, we look to create distribution centers, and
eventually serve Californians from the Bay Area to the Inland Empire. We
currently offer a total of five packages that our customers can choose from,
online only, ranging from laundry supplies to dish supplies. The packages
that we offer are: Laundry Day, Clean and Polish, Rinse and Repeat, Take a
Day Off, and our Fillosophy Special package. They are priced at $119.99,
$109.99, $129.99, $139.99, $299.99, respectively.

1
 FINANCIAL STATEMENTS
At the initial start-up of the company in October, Fillosophy acquired a total of
$220,000 in initial investment, with $20,000 in seed money, $150,000 in loans, and
$50,000 in stockholder’s equity.
With our first fiscal year ending on April 30, 2021, our first fiscal year only spans over the
duration of seven months since the startup of Fillosophy in October. This applies to all the
projections and calculations done on the fiscal year. By the end of the fiscal year, Fillosophy is
projected to bring in a total of $763,880 in revenue, which surpasses our break even point of
$753,669. This emcompasses sales from trade shows, the online website, and out of network
contracts. This corresponds with a total cost of $209,843 in inventory, which puts our net
profit at $554,037, and a thriving profit margin of 73 percent. After subtracting our operating
expenses of $547,516, Fillosophy is looking at a net profit of $5,385 after tax deductibles.

Our operating expenses leans towards the high end due to our dedication to eco-friendly
concerns, which include higher costs of vehicles and utilities. However, by the following fiscal
year Fillosophy will have paid our loans and other start-up equipment, so with the high profit
margin the business will most certainly take off and start bringing in large revenues.

As of December 31, 2020, two and a half

DECEMBER TRADESHOW SALES
months into operations, Fillosophy has been
Laundry Day
on track according to our plans and
projections. Although we started out slow in
15.8% Clean & Polish
the first two months making only a combined
28.9% Rinse & Repeat
$3,062, falling short of our projected sales,
Take a Day Off
in December we exceeded our expectations
25.4% Fillosophy Special and brought in a profit of $28,818.
According to our analysis from our most
16.7% recent trade show in December, our
13.2% customer spread over 7 states, with the
majority from California. In addition, the
analysis also reveals that our packages are
GEOGRAPHICAL PIE CHART similarly popular, with all of them selling at a
good rate, although the Fillosophy Special
TN: 1.6% California- 35
NC: 4.8% seems to appeal to more customers.
Florida- 6

Illinois- 1 Fillosophy sees a bright future ahead for its

NY: 22.6% mobile refilling business. What lies ahead is a
New Jersey- 2
sea of opportunities for us to prosper and
New York- 14
profit. We will continue to grow and improve,
99.8% North Carolina- 3
bringing in large profits and eventually
Tennessee- 1
expand our company. However, we not only
NJ: 3.2%
IL: 1.6% look to achieve success in financials, but also
CA: 56.4% sustainability. We stand by our mission to
FL: 9.6% “filling jars, not landfills.”

2
 BREAK-EVEN ANALYSIS
$800,000

$600,000 Revenue
DOLLARS

Variable Cost
$400,000
Fixed Cost

$200,000 Total Cost

$0
0

00

00

00

00

00

00

00

00

00
60

0
10

14

18

22

26

30

34

38

42

46

50
UNITS
UNITS REVENUE
VARIABLE FIXED TOTAL
AVERAGE SELLING PRICE PER SALE OF $159.99 SOLD COST COST COST
calculated from taking the average price of our 600 $95,994 $27,150 24/7
$540,509 $567,659
five packages: "Laundry Day,” "Clean and 40$
800 $127,992 $36,200 $540,509 $576,709
Polish,” "Rinse and Repeat," "Take a Day Off," 1000 10$
$159,990 20$
$45,250 30$
$540,509 $585,759
Unlimite
and the “Fillosophy's Special,” which are selling 1200 $191,988 $54,300 $540,509
Unlimite d
$594,809
1400 $223,986 $63,350 $540,509
d Unlimite
$603,859
for $119.99, $109.99, $129.99, $139.99, and
1600 $255,984 $72,400 $540,509
Unlimite d
$612,909
$299.99, respectively. 1800 $287,982 $81,450 $621,959
$540,509
d
2000
AVERAGE COST PER SALE OF $45.25 2200
$319,980
$351,978
$90,500
$99,550
$540,509 $631,009
$640,059
$540,509
calculated from taking the average cost of our 2400 $383,976 $108,600 $540,509 $649,109
four packages: "Laundry Day,” "Clean and 2600 $415,974 $117,650 $540,509 $658,159
Polish,” "Rinse and Repeat," "Take a Day Off," 2800 $447,972 $126,700 $540,509 $667,209
3000 5 hours
$479,970 $135,750 Unlimite
$676,259
which are cost $37.12, $23.65, $26.24, $21.30, Unlimite $540,509 Free
3200 $511,968 $144,800 $685,309d
2dGBcall $540,509 roaming
and $132.92, respectively. 3400
1 GB
$543,966
Customi $153,850
and text $540,509 $694,359
worldwi
AVERAGE PROFIT MARGIN OF 71.7% 3600 $575,964
zable $162,900
to two $540,509 $703,409de
3800 monthly
$607,962 family $540,509
$171,950 $712,459
calculated by dividing the average net profit 4000 $639,960 member $540,509
$181,000 $721,509
(average selling price - average cost) by the 4200 $671,958 $190,050s $540,509 $730,559
average selling price. 4400 $703,956 $199,100 $540,509 $739,609
4600 $735,954 $208,150 $540,509 $748,659
FIXED COST OF $540,509.00 4800 $767,952 $217,200 $540,509 $757,709
all other expenses including rent, utilities, 5000 $799,950 $226,250 $540,509 $766,759
insurance, office equipment, and our trucks and TOTAL SALES AT BREAK-EVEN: $753,669.47
trailers for the mobile stores, for one fiscal year.
BREAK-EVEN POINT IN UNITS: 4,711 UNITS
Our packages contain a wide array of products from hand soap to detergent to
wool dryer balls to loofahs, along with many others. The packages are sold on
average for $159.99 each and cost $45.25, which puts our profit margin at a
profitable 71.7%. Our fixed costs lean slightly towards the higher end due to our
purchases of trucks, trailers, and other equipment necessary for the setup for our
mobile refill stores (a more detailed breakdown of our fixed costs can be found in
the profit and loss statement). Despite that, Fillosophy is still looking to break even
after selling 4,711 units, or a sale of $753,669.47 in monetary value. Based on our
sales projection, we are looking to reach this milestone by the end of the fiscal
year. All sales after this point will be reinvesting and generating profit.

3
 BALANCE SHEET
AS OF DECEMBER 31, 2020
ASSETS:
FIXED ASSETS
CURRENT ASSETS Computers $3,108
Fillosophy’s total
assets stand at
Cash $96,886 Less: $148,636, with
Accumulated $124
Depreciation $96,886 in cash,
Investments in $0
Stocks $1,259 in inventory,
Furniture &
$2,811 $44,259 in supplies,
Accounts Fixtures
$0 and $6,232 in fixed
Receivable Less:
Accumulated $112 assets. Our supplies
Merchandise Depreciation
$1,259 include the set up
Investory
Office
Equipment $572 necessary for a mobile
Supplies $44,259 refill store, such as
Less:
Accumulated $23 trucks, trailers, and
TOTAL CURRENT ASSETS: Depreciation
$142,404 TOTAL FIXED ASSETS:
containers.
$6,232

LIABILITIES AND STOCKHOLDERS' EQUITY:

CURRENT LIABILITIES LONG TERM LIABILITIES Our total Liabilities stand
Loan at $71,060, with $32,480
Accounts $0 Payable $38,580
Payable in current liabilities and
Sales Tax $38,580 in long term
Payable $0 STOCKHOLDERS' EQUITY liabilities Our owner’s
Salaries Common stock, equity is a total of $77,576,
Payable $25,147 $10 par value,
* # shared $70,000 which combines with our
accounts $71,060 in liabilities comes
Payroll Tax $4,849
Payable out to $148,636, matching
Additional
$0
Paid-In-Capital
$0 the amount of total assets,
401(k) In Excess of Par
Value making the balance sheet
Other $2,485 balanced.
Payable
Retained $7,576
Corporate Earnings TOTAL LIABILITIES
Tax Payable $0
& STOCKHOLDERS'
TOTAL CURRENT TOTAL LIABILITIES: $71,060 EQUITY:
LIABILITIES: TOTAL STOCKHOLDERS'
$32,480 EQUITY: $77,576 $148,636
4
 PROFIT AND LOSS
SALES REVENUES OPERATING EXPENSES
Trade Fair $85,476
Salaries $326,907
Revenues

Rent $5,198
Contractual
Sales to non- $600,000
VE entities
Depreciation $1,813

Online Sales $78,404 Payroll Tax $60,547

Other Social $28,193

$0 Security
Revenues

TOTAL: $763,880 Medicare $6,593

Cost of Goods
Sold or $209,843 Advertising $175
Services Provided

Promotion $175
Gross Profit $554,037

Insurance $6,370
Gross Profit
73%
Margin
Pension or
NET INCOME
$0
401(k)

Income from Interest $55,125

$6,364
Operations

Other Revenues/ Supplies $6,491

Gains and $0
Expenses/Losses
Utilities $5,670
Net Income $6,521
Before Taxes
Trucks & $44,259
Corporate
Trailers
$1,136
Income Tax
TOTAL: $547,516
AFTER TAXES: $5,385

5
For the ending of the fiscal year on April 30th, 2021, Fillosophy is looking to make a
total revenue of $763,880. The cost of goods sold would be $210,000, which puts
the total gross profit at $553,880, and a good-looking gross margin percentage of
73%. After the deduction of our operating expenses of $547.516, Fillosophy is
looking at a net income of $5,228 after tax at the end of the fiscal year. While this
may not seem a lot, Fillosophy is only in the starting stage and is growing
consistently. In a few months' time, the company will surely bring in larger profits.

The summary profit and loss

statement is broken down into
REVENUE DISTRIBUTION
the monthly income statement
above for better clarity and
specificity of the monthly
revenues and expenses. The
total numbers for each
category correspond with the
numbers recorded in the profit
and loss statement.

Trade Show Revenues Other than Trade

Show Revenues
Contractual Sales to
Interest Income
non-VE entities

6
 SALES PROJECTION
Fillosophy
Sales October November December January Febuary March April Total
Projections

Out of
$0 $0 $0 $150,000 $150,000 $150,000 $150,000 $600,000
Network
Sales
Trade Show
$800 $4,000 $11,000 $15,000 $16,000 $18,000 $22,000 $86,8000
Sales

Online Sales $200 $1,000 $8,000 $14,000 $20,000 $15,000 $12,000 $70,200

Total $1,000 $5,000 $19,000 $179,000 $186,000 $183,000 $184,000 $747,000

Fillosophy has projected to make sales throughout network

contracts, trade shows, and our online website, with a total of
$757,000 by the end of the 2020-2021 fiscal year on April 30th.
The projection breaks down to $600,000 from out of network sales,
$86,800 from trade show sales, and $70,200 from online sales.
Fillosophy started off slow in the early months of the start-up, but by
December, we have not only reached but exceeded the projected
sales number, and we are now on track to our target sales
projection.

SALES
Fillosophy
October November December
Sales

Out of Network
$0 $0 $0
Sales

Trade Show
$193 $2,164 $12,119
Sales

Online Sales $56 $649 $16,699

Total $249 $2,813 $28,818

7
CASH BUDGET SPREADSHEET

BANK BALANCE
AS OF DECEMBER 31, 2020