Combined

INCOME STATEMENT (p&l)

Year 1 Year 2 Year 3 Year 4 Year 5

Digital Revenue $442,753 $975,891 $1,813,051 $3,620,423 $5,968,762
Advertising $442,753 $975,891 $1,813,051 $3,620,423 $5,968,762
E-Commerce $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0
Expenses $1,476,200 $1,551,574 $1,658,157 $1,852,903 $2,081,576
Advertising & Marketing Cost $94,353 $115,412 $186,047 $332,632 $518,350
Editorial $105,000 $105,000 $105,000 $105,000 $105,000
Technology $20,425 $21,770 $24,621 $38,383 $45,568
Staff $844,300 $869,629 $895,718 $922,589 $950,267
General Administrative Costs $412,123 $439,763 $446,772 $454,299 $462,391
Digital Net Income Before Taxes ($1,033,447) ($575,684) $154,893 $1,767,520 $3,887,186
Year 1 Year 2 Year 3 Year 4 Year 5
Print Revenue $4,303,230 $6,554,534 $10,668,100 $13,482,674 $15,619,922
Advertising $2,388,378 $4,058,376 $6,657,336 $8,862,454 $10,491,802
Subscription $1,615,351 $2,223,491 $3,759,134 $4,392,621 $4,922,148
Single Copy $299,502 $272,667 $251,630 $227,600 $205,973
Print Expenses $7,146,742 $8,443,638 $11,306,728 $12,472,778 $13,164,423
Advertising $1,131,211 $1,559,910 $2,212,956 $2,772,944 $3,196,285
Circulation $1,835,345 $2,248,074 $3,788,607 $3,944,424 $3,915,929
Editorial/Design $1,872,000 $1,908,600 $1,947,030 $1,987,382 $2,029,751
Production/Distribution $2,021,108 $2,425,621 $3,041,632 $3,435,700 $3,673,514
General Administrative Costs $287,078 $301,432 $316,504 $332,329 $348,945
Print Net Income Before Taxes ($2,843,512) ($1,889,104) ($638,628) $1,009,896 $2,455,499
Year 1 Year 2 Year 3 Year 4 Year 5
Combined Revenue $4,745,984 $7,530,424 $12,481,150 $17,103,097 $21,588,684
Combined Expenses $8,622,942 $9,995,212 $12,964,885 $14,325,682 $15,245,999
Combined Net Income Before Taxes ($3,876,958) ($2,464,787) ($483,735) $2,777,416 $6,342,685
Combined Cumulative Income before Taxes ($3,876,958) ($6,341,746) ($6,825,481) ($4,048,065) $2,294,620

1
PAR AVION 3/12/2024
Annual Summary 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
PRESS RUN
Subscription Copies 82,079 134,006 211,899 261,639 290,244
Single Copy Draw 75,450 68,400 62,550 56,475 51,008
Office/Promo Copies 3,000 3,000 3,000 3,000 3,000
Bad Debt Copies 2,187 2,553 4,061 4,323 4,629
TOTAL PRESS RUN 162,716 207,959 281,510 325,437 348,880

PAID CIRCULATION
Subscription File 82,079 134,006 211,899 261,639 290,244
SC Sell-through 20,783 18,878 17,336 15,666 14,162
TOTAL PAID CIRCULATION 102,861 152,883 229,235 277,305 304,406

ADVERTISING PAGES
Paid Ad Pages 256 280 296 312 328
House & Comp 12 10 8 6 4
TOTAL AD PAGES 268 290 304 318 332

AVERAGE FOLIO/ISSUE 164 164 164 164 164

INCOME
Advertising 2,388,378 4,058,376 6,657,336 8,862,454 10,491,802
Subscription 1,615,351 2,223,491 3,759,134 4,392,621 4,922,148
Single Copy 299,502 272,667 251,630 227,600 205,973
TOTAL INCOME $4,303,230 $6,554,534 $10,668,100 $13,482,674 $15,619,922

EXPENSES
Advertising 1,131,211 1,559,910 2,212,956 2,772,944 3,196,285
Circulation 1,835,345 2,248,074 3,788,607 3,944,424 3,915,929
Editorial/Design 1,872,000 1,908,600 1,947,030 1,987,382 2,029,751
Production/Distribution 2,021,108 2,425,621 3,041,632 3,435,700 3,673,514
General/Administrative 287,078 301,432 316,504 332,329 348,945
TOTAL EXPENSES $7,146,742 $8,443,638 $11,306,728 $12,472,778 $13,164,423

NET PROFIT/(LOSS) ($2,843,512) ($1,889,104) ($638,628) $1,009,896 $2,455,499

CUM PROFIT/(LOSS) ($2,843,512) ($4,732,616) ($5,371,244) ($4,361,348) ($1,905,849)

Annual Summary
PAR AVION 3/12/2024
Advertising Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
RATE CARD
Rate Base 100,000 150,000 225,000 275,000 300,000
Net Paid Circ 102,861 152,883 229,235 277,305 304,406
Rate Card CPM $140.00 $145.00 $150.00 $155.00 $160.00
Effective Discount 20% 20% 20% 20% 20%
Net Advertising CPM $112.00 $116.00 $120.00 $124.00 $128.00
Full Page Rate 11,200 17,400 27,000 34,100 38,400

AD PAGES/YEAR
Paid Ad Pages 256 280 296 312 328
House & Comp 12 10 8 6 4
TOTAL PAGES/YEAR 268 290 304 318 332

ANNUAL AD REVENUE
Paid Ad Pages 2,867,200 4,872,000 7,992,000 10,639,200 12,595,200
Discounts & Allowances 15.00% (430,080) (730,800) (1,198,800) (1,595,880) (1,889,280)
Bad Debt Allowance 2.00% (48,742) (82,824) (135,864) (180,866) (214,118)
TOTAL ANNUAL REVENUE $2,388,378 $4,058,376 $6,657,336 $8,862,454 $10,491,802

MARKETING & PROMOTION

Audits & Statements 0.00% 0.00% 0.00% 0.00% 0.00%
Research & Promotion 0.00% 0.00% 0.00% 0.00% 0.00%
Trade Advertising 0.00% 0.00% 0.00% 0.00% 0.00%
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
TOTAL ADVERTISING M&P $0 $0 $0 $0 $0

Advertising Worksheet
PAR AVION 3/12/2024
Circulation Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
NEW SUB REVENUE
BAD DEBT COPIES 1 1 1 1 1
CONVERSION RATE
INSERT CARDS 30.00%
SC Quantity/Year 83,130 75,510 69,345 62,663 56,648
SC Gross Response 2.00% 1.50% 1.00% 1.00% 1.00%
SUB Quantity/Year 319,967 435,570 720,536 834,453 923,817
SUB Gross Response 0.35% 0.25% 0.15% 0.15% 0.15%
% Payup 75.00% 75.00% 75.00% 75.00% 75.00%
% Net Response 0.52% 0.33% 0.17% 0.16% 0.15%
TOTAL INSERT CARD ORDERS 2,087 1,666 1,331 1,409 1,464

INSERT CARD REVENUE

One Year Price 100.00% $19.99 $19.99 $19.99 $19.99 $19.99
Two Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL INSERT CARD REVENUE $41,716 $33,307 $26,600 $28,160 $29,268

PROMOTION COSTS
Design Creative 5,000 5,000 10,000 10,000 10,000
Printing CPM 25.00 25.00 25.00 25.00 25.00
Premium Cost/Net Order 0.00 0.00 0.00 0.00 0.00
TOTAL PROMOTION COSTS $15,077 $17,777 $29,747 $32,428 $34,512

FULFILLMENT COSTS
Return Postage Cost/Order 0.50 0.50 0.35 0.35 0.35
Process & Billing Cost/Order 1.25 1.25 1.25 1.25 0.75
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.10
TOTAL FULFILLMENT COSTS $4,487 $3,582 $2,661 $2,817 $1,757

INSERT CARD P/(L) $22,152 $11,948 ($5,808) ($7,085) ($7,000)

CONVERSION RATE
DIRECT MAIL 30.00%
Efforts/Year 2 2 2 2 2
Quantity/Effort 1,203,000 1,400,000 2,500,000 2,500,000 2,500,000
% Gross Response 3.00% 2.90% 2.75% 2.75% 2.75%
% Payup 90.00% 90.00% 90.00% 90.00% 90.00%
% Net Response 2.70% 2.61% 2.48% 2.48% 2.48%
TOTAL DIRECT MAIL ORDERS 64,962 73,080 123,750 123,750 123,750

DIRECT MAIL REVENUE

One Year Price 65.00% $19.99 $19.99 $19.99 $19.99 $19.99
Two Year Price 35.00% $29.99 $29.99 $29.99 $29.99 $29.99
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL DIRECT MAIL REVENUE $1,525,957 $1,716,649 $2,906,888 $2,906,888 $2,906,888

PROMOTION COSTS
Design Creative/Effort 25,000 25,000 25,000 25,000 25,000
Printing & Postage CPM/Effort 500.00 500.00 500.00 500.00 500.00
List Rental CPM/Effort 95.00 95.00 95.00 95.00 95.00
Premium Cost/Net Order 0.00 0.00 0.00 0.00 0.00
TOTAL PROMOTION COSTS $1,481,570 $1,716,000 $3,025,000 $3,025,000 $3,025,000

FULFILLMENT COSTS
Return Postage Cost/Order 0.50 0.50 0.35 0.35 0.35
Process & Billing Cost/Order 1.25 1.25 1.25 1.25 0.75
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.10
TOTAL FULFILLMENT COSTS $148,763 $167,353 $264,825 $251,831 $152,831

Circulation Worksheet
PAR AVION 3/12/2024
Circulation Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
DIRECT MAIL P/(L) ($104,376) ($166,704) ($382,938) ($369,944) ($270,944)

NEW SUB REVENUE (cont)

CONVERSION RATE
Public Place 0.00%
Net Orders/Year 10,000 15,000 22,500 27,500 30,000
Revenue/Order $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL Public Place REVENUE $0 $0 $0 $0 $0

FULFILLMENT COSTS
Return Postage Cost/Order 0.00 0.00 0.00 0.00 0.00
Process & Billing Cost/Order 0.00 0.00 0.00 0.00 0.00
Premium Cost/Net Order 0.00 0.00 0.00 0.00 0.00
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.10
TOTAL FULFILLMENT COSTS $4,000 $6,000 $9,000 $11,000 $3,000

Public Place P/(L) ($4,000) ($6,000) ($9,000) ($11,000) ($3,000)

CONVERSION RATE
Sponsored - Museum Partners 3.00%
Net Orders/Year 3,000 3,000 3,000 3,000 3,000
Revenue/Order $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL Sponsored - Museum Partnership $0 $0 $0 $0 $0

FULFILLMENT COSTS
Return Postage Cost/Order 0.00 0.00 0.00 0.00 0.00
Process & Billing Cost/Order 0.00 0.00 0.00 0.00 0.00
Premium Cost/Net Order 0.35 0.35 0.35 0.35 0.35
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.40
TOTAL FULFILLMENT COSTS $2,250 $2,250 $2,250 $2,250 $2,250

Sponsored - Museum Partnership P/(L) ($2,250) ($2,250) ($2,250) ($2,250) ($2,250)

CONVERSION RATE
OPEN SOURCE 0.00%
Gross Orders 0 0 0 0 0
% Payup 0.00% 0.00% 0.00% 0.00% 0.00%
TOTAL OPEN SOURCE ORDERS 0 0 0 0 0

OPEN SOURCE REVENUE

One Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
Two Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL OPEN SOURCE REVENUE $0 $0 $0 $0 $0

PROMOTION COSTS
Design Creative/Effort 0 0 0 0 0
Cost/Order 0.00 0.00 0.00 0.00 0.00
Premium Cost/Net Order 0.00 0.00 0.00 0.00 0.00
TOTAL PROMOTION COSTS $0 $0 $0 $0 $0

FULFILLMENT COSTS
Return Postage Cost/Order 0.00 0.00 0.00 0.00 0.00
Process & Billing Cost/Order 0.00 0.00 0.00 0.00 0.00
Fulfillment Cost/Order 0.00 0.00 0.00 0.00 0.00
TOTAL FULFILLMENT COSTS $0 $0 $0 $0 $0

OPEN SOURCE P/(L) $0 $0 $0 $0 $0

Circulation Worksheet
PAR AVION 3/12/2024
Circulation Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
NEW SUB REVENUE (cont)

CONVERSION RATE
Web Conversions 30.00%
Efforts/Year 12 12 12 12 12
Quantity/Effort 348,138 640,180 853,573 1,280,359 1,781,833
% Gross Response 0.05% 0.05% 0.05% 0.05% 0.05%
% Payup 60.00% 60.00% 60.00% 60.00% 60.00%
% Net Response 0.03% 0.03% 0.03% 0.03% 0.03%
TOTAL Web Conversions ORDERS 1,253 2,305 3,073 4,609 6,415

Web Conversions REVENUE

One Year Price 65.00% $19.99 $19.99 $19.99 $19.99 $19.99
Two Year Price 35.00% $29.99 $29.99 $29.99 $29.99 $29.99
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL Web Conversions REVENUE $29,440 $54,136 $72,182 $108,272 $150,679

PROMOTION COSTS
Design Creative/Effort 0 0 0 0 0
Printing & Postage CPM/Effort 0.00 0.00 0.00 0.00 0.00
List Rental CPM/Effort 0.00 0.00 0.00 0.00 0.00
Premium Cost/Net Order 0.00 0.00 0.00 0.00 0.00
TOTAL PROMOTION COSTS $0 $0 $0 $0 $0

FULFILLMENT COSTS
Return Postage Cost/Order 0.00 0.00 0.00 0.00 0.00
Process & Billing Cost/Order 1.25 1.25 1.25 1.25 0.75
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.40
TOTAL FULFILLMENT COSTS $2,243 $4,125 $5,500 $8,251 $8,275

Web Conversions P/(L) $27,197 $50,011 $66,681 $100,022 $142,404

CONVERSION RATE
Email Conversions 30.00%
Efforts/Year 12 12 12 12 12
Quantity/Effort 32,349 96,027 153,643 256,072 392,003
% Gross Response 0.20% 0.15% 0.15% 0.15% 0.15%
% Payup 100.00% 100.00% 100.00% 100.00% 100.00%
% Net Response 0.20% 0.15% 0.15% 0.15% 0.15%
TOTAL Email Conversions ORDERS 776 1,728 2,766 4,609 7,056

Email Conversions REVENUE

One Year Price 65.00% $19.99 $19.99 $19.99 $19.99 $19.99
Two Year Price 35.00% $29.99 $29.99 $29.99 $29.99 $29.99
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL Email Conversions REVENUE $18,237 $40,602 $64,963 $108,272 $165,747

PROMOTION COSTS
Design Creative/Effort 500 500 500 500 500
Printing & Postage CPM/Effort 2.00 2.00 2.00 2.00 2.00
List Rental CPM/Effort 0.00 0.00 0.00 0.00 0.00
TOTAL PROMOTION COSTS $6,776 $8,305 $9,687 $12,146 $15,408

FULFILLMENT COSTS
Return Postage Cost/Order 0.50 0.50 0.35 0.35 0.35
Process & Billing Cost/Order 1.25 1.25 1.25 1.25 0.75
Fulfillment Cost/Order 0.40 0.40 0.40 0.40 0.10
TOTAL FULFILLMENT COSTS $1,778 $3,958 $5,918 $9,380 $8,714

Email Conversions P/(L) $9,683 $28,339 $49,358 $86,747 $141,625

Circulation Worksheet
PAR AVION 3/12/2024
Circulation Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020

RENEWAL SUB REVENUE

RENEWAL RATES & ORDERS

Expire Pool 0 58,631 103,571 160,282 203,814
Conversion Orders 0 13,779 20,395 33,856 40,048
1st Renewal Orders 50.00% 0 0 4,651 9,371 15,245
2nd Renewal Orders 55.00% 0 0 0 1,918 4,505
3rd Renewal Orders 65.00% 0 0 0 0 935
CONVERSION & RENEWAL ORDERS 0 13,779 25,045 45,145 60,734

RENEWAL REVENUE
One Year Price 75.00% $24.99 $24.99 $24.99 $24.99 $24.99
Two Year Price 25.00% $34.99 $34.99 $34.99 $34.99 $34.99
Three Year Price 0.00% $0.00 $0.00 $0.00 $0.00 $0.00
TOTAL RENEWAL REVENUE $0 $378,797 $688,501 $1,241,028 $1,669,566

PROMOTION & FULFILLMENT

Promotion Cost/Expire 0.00 1.90 1.90 1.90 1.90
Return Postage Cost/Order 0.00 0.50 0.35 0.35 0.35
Process & Billing Cost/Order 0.00 1.25 1.25 1.25 0.75
Fulfillment Cost/Order 0.00 0.40 0.40 0.40 0.10
TOTAL PROMO & FULFILL COSTS $0 $142,403 $249,381 $395,953 $461,646

RENEWAL P/(L) $0 $236,393 $439,120 $845,075 $1,207,920

SINGLE COPY SALES REVENUE

COVER PRICE $8.99 $8.99 $8.99 $8.99 $8.99

NEWSSTAND REVENUE
Draw/Issue 75,000 67,500 60,750 54,675 49,208
NS Sell-through 27.50% 27.50% 27.50% 27.50% 27.50%
NS Copies Sold 20,625 18,563 16,706 15,036 13,532
Revenue/Copy 40.00% $3.60 $3.60 $3.60 $3.60 $3.60
ANNUAL NEWSSTAND REVENUE $296,670 $267,003 $240,303 $216,272 $194,645

NEWSSTAND PROMOTION
Retail Display Allowance 0 0 0 0 0
Display Promotion 10,000 10,000 10,000 10,000 10,000
Consumer Advertising 0 0 0 0 0
TOTAL NEWSSTAND PROMOTION $10,000 $10,000 $10,000 $10,000 $10,000

NEWSSTAND P/(L) $286,670 $257,003 $230,303 $206,272 $184,645

DIRECT SALE REVENUE

Draw/Issue 450 900 1,800 1,800 1,800
DS Sell-through 35.00% 35.00% 35.00% 35.00% 35.00%
DS Copies Sold 158 315 630 630 630
Revenue/Copy 50.00% $4.50 $4.50 $4.50 $4.50 $4.50
ANNUAL DIRECT SALE REVENUE $2,832 $5,664 $11,327 $11,327 $11,327

DIRECT SALE PROMOTION

Retail Display Allowance 0 0 0 0 0
Display Promotion 0 0 0 0 0
Consumer Advertising 0 0 0 0 0
TOTAL DIRECT SALE PROMOTION $0 $0 $0 $0 $0

DIRECT SALE P/(L) $2,832 $5,664 $11,327 $11,327 $11,327

Circulation Worksheet
PAR AVION 3/12/2024
Production Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
PRESS RUN
Subscription Copies 82,079 134,006 211,899 261,639 290,244
Single Copy Draw 75,450 68,400 62,550 56,475 51,008
Office/Promo Copies 3,000 3,000 3,000 3,000 3,000
Bad Debt Copies 2,187 2,553 4,061 4,323 4,629
TOTAL PRESS RUN 162,716 207,959 281,510 325,437 348,880

FOLIO/ISSUE
Ad Pages/Issue 67 73 76 80 83
Edit Requirements 97 91 86 81 80
Ad/Edit Ratio 41% 44% 46% 48% 51%
AVERAGE FOLIO/ISSUE 164 164 164 164 164

PREPERATORY PRODUCTION
Edit Pre-press/Page 200.00 19,400 18,200 17,200 16,200 16,000
Printer Pre-press/Page 0.00 0 0 0 0 0
TOTAL PREP PRODUCTION $19,400 $18,200 $17,200 $16,200 $16,000

COVER FORM 4pp 4/4

Number of Forms 1 1 1 1 1
Makeready 4,000.00 4,000 4,000 4,000 4,000 4,000
Run & Ink 25.00 4,068 5,199 7,038 8,136 8,722
Paper Makeready 0.00 0 0 0 0 0
Paper Run 60.00 9,763 12,478 16,891 19,526 20,933
Snap Coating 0.00 0 0 0 0 0
TOTAL COST $17,831 $21,676 $27,928 $31,662 $33,655

TEXT FORM 32 4/C

Number of Forms 5 5 5 5 5
Makereadies 12,000.00 60,000 60,000 60,000 60,000 60,000
Run & Ink 30.00 24,407 31,194 42,226 48,816 52,332
Paper Makeready 0.00 0 0 0 0 0
Paper Run 80.00 65,086 83,184 112,604 130,175 139,552
TOTAL COST $149,494 $174,377 $214,830 $238,991 $251,884

TEXT FORM ## C/C

Number of Forms 0 0 0 0 0
Makereadies 0.00 0 0 0 0 0
Running Charges 0.00 0 0 0 0 0
Paper Makeready 0.00 0 0 0 0 0
Paper Run 0.00 0 0 0 0 0
TOTAL COST $0 $0 $0 $0 $0

TEXT FORM ## C/C

Number of Forms 0 0 0 0 0
Makereadies 0.00 0 0 0 0 0
Running Charges 0.00 0 0 0 0 0
Paper Makeready 0.00 0 0 0 0 0
Paper Run 0.00 0 0 0 0 0
TOTAL COST $0 $0 $0 $0 $0

TEXT FORM ## C/C

Number of Forms 0 0 0 0 0
Makereadies 0.00 0 0 0 0 0
Running Charges 0.00 0 0 0 0 0
Paper Makeready 0.00 0 0 0 0 0
Paper Run 0.00 0 0 0 0 0
TOTAL COST $0 $0 $0 $0 $0

Production Worksheet
PAR AVION 3/12/2024
Production Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
INK CHARGES
Four Color Pages 0 0 0 0 0
Two Color Pages 0 0 0 0 0
Black & White Pages 0 0 0 0 0
TOTAL INK CHARGES $0 $0 $0 $0 $0

BINDING
Inserts/Copy 1 1 1 1 1
Blow-ins/Copy 2 2 2 2 2
Perfect Binder Set-up 2,400.00 2,400 2,400 2,400 2,400 2,400
Perfect Binder Run 20.00 3,254 4,159 5,630 6,509 6,978
Additional Pocket Run 0.00 0 0 0 0 0
Saddle Stitch Set-up 0.00 0 0 0 0 0
Saddle Stitch Run 0.00 0 0 0 0 0
Additional Pocket Run 0.00 0 0 0 0 0
Insert Pocket Set-up 100.00 100 100 100 100 100
Insert Pocket Run 1.75 285 364 493 570 611
Blow-in Pocket Set-up 100.00 200 200 200 200 200
Blow-in Pocket Run 1.25 407 520 704 814 872
TOTAL BINDING COST $6,646 $7,743 $9,527 $10,592 $11,160

SUB PREP & DISTRIBUTION

Outserts/Copy 0 0 0 0 0
Labelaire Set-up 0.00 0 0 0 0 0
Labelaire Run 0.00 0 0 0 0 0
Perfect Binding Set-up 0.00 0 0 0 0 0
Perfect Binding Run 0.00 0 0 0 0 0
Onsert Set-up 0.00 0 0 0 0 0
Onsert Run 0.00 0 0 0 0 0
3rd Class Postage 0.00 0 0 0 0 0
Periodicals Postage 0.65 54,773 88,763 140,374 172,876 191,667
TOTAL SUB PREP & DISTRIBUTION $54,773 $88,763 $140,374 $172,876 $191,667

SC PREP & DISTRIBUTION

Newsstand Cartons 0.00 0 0 0 0 0
Newsstand Skids 0.00 0 0 0 0 0
Newsstand Freight 0.01 785 714 656 595 540
TOTAL SC PREP & DISTRIBUTION $785 $714 $656 $595 $540

PRODUCTION COST/ISSUE
Edit Pre-press/Page 19,400 18,200 17,200 16,200 16,000
Printer Pre-press/Page 0 0 0 0 0
Printing & Distribution 229,528 293,274 393,314 454,715 488,906
TOTAL PRODUCTION COST/ISSUE $248,928 $311,474 $410,514 $470,915 $504,906

COST PER COPY

Cost/Printed Copy $1.53 $1.50 $1.46 $1.45 $1.45
Cost/Subscription Copy $2.18 $2.15 $2.11 $2.10 $2.10
Cost/Newsstand Copy $1.54 $1.51 $1.47 $1.46 $1.46

ANNUAL PRODUCTION COSTS

Edit Pre-press/Page 77,600 72,800 68,800 64,800 64,000
Printer Pre-press/Page 0 0 0 0 0
Printing & Distribution 1,203,636 1,587,356 2,180,493 2,550,344 2,759,330
TOTAL ANNUAL PROD COSTS $1,281,236 $1,660,156 $2,249,293 $2,615,144 $2,823,330

Production Worksheet
PAR AVION 3/12/2024
Expense Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
ADVERTISING SALES
Ad Sales Director 125,000 131,250 137,813 144,703 151,938
Account Executive 1 85,000 89,250 93,713 98,398 103,318
Account Executive 2 85,000 89,250 93,713 98,398 103,318
Account Executive 3 85,000 89,250 93,713 98,398 103,318
Account Executive 4 85,000 89,250 93,713 98,398 103,318
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Bonuses & Commissions 20.00% 477,676 811,675 1,331,467 1,772,491 2,098,360
Payroll Factor 188,535 259,985 368,826 462,157 532,714
Overhead Factor $0 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Marketing & Promotion 0 0 0 0 0
TOTAL AD EXPENSES $1,131,211 $1,559,910 $2,212,956 $2,772,944 $3,196,285

CIRCULATION SALES
Sales Representative 38,000 39,900 41,895 43,990 46,189
Circulation Manager 58,000 60,900 63,945 67,142 70,499
Circulation Analyst 36,000 37,800 39,690 41,675 43,758
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Payroll Factor 26,400 27,720 29,106 30,561 32,089
Overhead Factor $0 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Sub Promo & Fulfillment 1,666,945 2,071,754 3,603,971 3,751,056 3,713,393
Single Copy Promotion 10,000 10,000 10,000 10,000 10,000
TOTAL CIRC EXPENSES $1,835,345 $2,248,074 $3,788,607 $3,944,424 $3,915,929

Expense Worksheet
PAR AVION 3/12/2024
Expense Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
EXPENSES (cont)

EDITORIAL & DESIGN

Managing Editor 70,000 73,500 77,175 81,034 85,085
Photo Editor 75,000 78,750 82,688 86,822 91,163
Editor in Chief 100,000 105,000 110,250 115,763 121,551
Copy Editor 60,000 63,000 66,150 69,458 72,930
Executive Editor 60,000 63,000 66,150 69,458 72,930
Associate Editor 50,000 52,500 55,125 57,881 60,775
Art Director 90,000 94,500 99,225 104,186 109,396
Design Assistant 35,000 36,750 38,588 40,517 42,543
Photo Assistant 35,000 36,750 38,588 40,517 42,543
Editorial Assistant 35,000 36,750 38,588 40,517 42,543
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Payroll Factor 122,000 128,100 134,505 141,230 148,292
Overhead Factor $0 0 0 0 0 0
Art & Design/Issue $125,000 500,000 500,000 500,000 500,000 500,000
Freelance Edit/Issue $100,000 400,000 400,000 400,000 400,000 400,000
Travel & Research/Issue $60,000 240,000 240,000 240,000 240,000 240,000
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
TOTAL E&D EXPENSES $1,872,000 $1,908,600 $1,947,030 $1,987,382 $2,029,751

PRODUCTION & DISTRIBUTION

Production Manager 59,000 61,950 65,048 68,300 71,715
Consumer Circulation Director 101,010 106,061 111,364 116,932 122,778
Audience Development Director 74,550 78,278 82,191 86,301 90,616
Ad Production Specialist 70,000 73,500 77,175 81,034 85,085
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Payroll Factor 435,312 445,678 456,561 467,990 479,989
Overhead Factor $0 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Manufacture & Distribution 1,281,236 1,660,156 2,249,293 2,615,144 2,823,330
TOTAL P&D EXPENSES $2,021,108 $2,425,621 $3,041,632 $3,435,700 $3,673,514

Expense Worksheet
PAR AVION 3/12/2024
Expense Worksheet 6:13 AM

Frequency 4 4 4 4 4
Year 2016 2017 2018 2019 2020
EXPENSES (cont)

GENERAL & ADMINISTRATIVE

Assistant to Editor in Chief 47,982 50,381 52,900 55,545 58,322
Assistant to Art Director 37,800 39,690 41,675 43,758 45,946
Pre-Production 49,350 51,818 54,408 57,129 59,985
Finance Assistant 44,100 46,305 48,620 51,051 53,604
HR Manager 60,000 63,000 66,150 69,458 72,930
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Open Position 0 0 0 0 0
Payroll Factor 47,846 50,239 52,751 55,388 58,158
Overhead Factor $0 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
Open Expense 0 0 0 0 0
TOTAL G&A EXPENSES $287,078 $301,432 $316,504 $332,329 $348,945

Expense Worksheet
$20,000,000

Income
Expenses
$15,000,000 Cum Profit/Loss

$10,000,000

$5,000,000

$0

($5,000,000)

($10,000,000)
2016 2017 2018 2019 2020
par-avion.com
Web Model
2016
par-avion.com
INCOME STATEMENT (p&l)

% revenue
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
Traffic
Unique visitors/month 348,138 640,180 853,573 1,280,359 1,781,833
Page Views/month 1,247,418 2,496,700 3,456,970 5,569,563 8,274,833

Net Revenue
Advertising
Site, Mobile, Video Ad Revenue $394,223 $887,318 $1,646,439 $3,299,960 $5,344,585 89% 91% 91% 91% 90%
E-Newsletters $48,530 $88,572 $166,612 $320,463 $624,177 11% 9% 9% 9% 10%
Print Products $0 $0 $0 $0 $0 0% 0% 0% 0% 0%
Mobile Application $0 $0 $0 $0 $0 0% 0% 0% 0% 0%

E-Commerce 0% 0% 0% 0% 0%
Affiliate $0 $0 $0 $0 $0 0% 0% 0% 0% 0%
Exclusive Products $0 $0 $0 $0 $0 0% 0% 0% 0% 0%
Other Revenue 0% 0% 0% 0% 0%
Premium Membership $0 $0 $0 $0 $0 0% 0% 0% 0% 0%

TOTAL NET REVENUE $442,753 $975,891 $1,813,051 $3,620,423 $5,968,762

Expenses
Advertising & Marketing Costs
Audience Development $34,959 $10,115 $12,008 $9,785 $8,926 8% 1% 1% 0% 0%
Ad Serving $4,491 $8,988 $12,445 $20,050 $29,789 1% 1% 1% 1% 0%
Commisions $26,019 $58,563 $108,665 $217,797 $352,743 6% 6% 6% 6% 6%
Public Relations $21,000 $20,000 $20,000 $19,000 $20,000 5% 2% 1% 1% 0%
Other $7,884 $17,746 $32,929 $65,999 $106,892 2% 2% 2% 2% 2%
Total Advertising & Marketing $94,353 $115,412 $186,047 $332,632 $518,350 21% 12% 10% 9% 9%

Editorial
Text $0 $0 $0 $0 $0 0% 0% 0% 0% 0%
Images $63,000 $63,000 $63,000 $63,000 $63,000 14% 6% 3% 2% 1%
Video $42,000 $42,000 $42,000 $42,000 $42,000 9% 4% 2% 1% 1%
Other $0 $0 $0 $0 $0 0% 0% 0% 0% 0%
Total Editorial Expense $105,000 $105,000 $105,000 $105,000 $105,000 24% 11% 6% 3% 2%

Technology
Total Technology Expense $20,425 $21,770 $24,621 $38,383 $45,568 5% 2% 1% 1% 1%

Other Costs
Staff $844,300 $869,629 $895,718 $922,589 $950,267 191% 89% 49% 25% 16%
General Administrative Costs $412,123 $439,763 $446,772 $454,299 $462,391 93% 45% 25% 13% 8%
Total Other Costs $1,256,423 $1,309,392 $1,342,490 $1,376,888 $1,412,658 284% 134% 74% 38% 24%

TOTAL EXPENSES $1,476,200 $1,551,574 $1,658,157 $1,852,903 $2,081,576 333% 159% 91% 51% 35%

Net Income Before Taxes ($1,033,447) ($575,684) $154,893 $1,767,520 $3,887,186 -233% -59% 9% 49% 65%

15
par-avion.com
VOLUME ASSUMPTIONS

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4

MARKET SIZING
Competitors Avg. Monthly Unique Visitors
Insert Rows & copy formulas to add competitors
1 Fodors.com 3,193,417 3,193,417 3,193,417 3,193,417 3,193,417 3,193,417 3,193,417 3,193,417 3,193,417
2 LonelyPlanet.com 2,654,482 2,654,482 2,654,482 2,654,482 2,654,482 2,654,482 2,654,482 2,654,482 2,654,482
3 TravelandLeisure.com 2,176,059 2,176,059 2,176,059 2,176,059 2,176,059 2,176,059 2,176,059 2,176,059 2,176,059
4 CNTraveler.com 1,662,058 1,662,058 1,662,058 1,662,058 1,662,058 1,662,058 1,662,058 1,662,058 1,662,058
5 Frommers.com 983,646 983,646 983,646 983,646 983,646 983,646 983,646 983,646 983,646
Total Competitor's Traffic (Average Monthly) 2,133,932 2,133,932 2,133,932 2,133,932 2,133,932 2,133,932 2,133,932 2,133,932 2,133,932

% Competitive Traffic Achieved 11% 13% 15% 19% 19% 30% 40% 60% 84%
Total Traffic Projected 234,733 277,411 320,090 400,112 400,112 640,180 853,573 1,280,359 1,781,833

Traffic Composition
Search 19% 19% 19% 19% 19% 23% 29% 36% 38%
Keyword Search - (SEM - Google) 0% 0% 0% 0% 0% 0% 0% 0% 0%
Direct - Typed/ Bookmarked (visitor types url into browser) 7% 7% 7% 7% 7% 7% 8% 8% 9%
Newsletter Referrals 11% 11% 11% 11% 11% 15% 18% 20% 22%
Paid Content Syndication (Outbrain) 39% 39% 39% 39% 39% 27% 16% 10% 3%
Content Syndication Partnerships/ Links 12% 12% 12% 12% 12% 10% 9% 5% 5%
Banner Ads on Third Party Sites 0% 0% 0% 0% 0% 0% 0% 0% 0%
Social Referrals (Facebook and Twitter) 14% 14% 14% 14% 14% 18% 20% 21% 23%
Total Referrals 100% 100% 100% 100% 100% 100% 100% 100% 100%

Visitors/Uniques Factor 1 1.2 1.2 1.3 1 1.3 1.35 1.45 1.548

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4

Avg. Page Views per Visitor 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
% Registered Users 0% 0% 0% 0% 0% 0% 0% 0% 0%

VOLUME CALCULATIONS - AVERAGE MONTHLY Year 1 Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4
Search 44,599 52,708 60,817 76,021 58,536 147,241 247,536 460,929 677,097
Keyword Search - (SEM - Google) - - - - - - - - -
Direct - Typed/ Bookmarked (visitor types url into browser) 45,773 54,095 62,418 78,022 60,077 44,813 68,286 102,429 160,365
Newsletter Referrals 24,647 29,128 33,609 42,012 32,349 96,027 153,643 256,072 392,003
Paid Content Syndication (Outbrain) 91,546 108,190 124,835 156,044 120,154 172,848 136,572 128,036 53,455
Content Syndication Partnerships/ Links 26,994 31,902 36,810 46,013 35,430 64,018 76,822 64,018 89,092
Banner Ads on Third Party Sites - - - - - - - - -
Social Referrals (Facebook and Twitter) 31,689 37,451 43,212 54,015 41,592 115,232 170,715 268,875 409,822

Average Monthly Uniques 265,248 313,475 361,702 452,127 348,138 640,180 853,573 1,280,359 1,781,833
Average Monthly Visits 265,248 376,170 434,042 587,765 409,062 832,233 1,152,323 1,856,521 2,758,278
Average Monthly Page Views 795,743 1,128,509 1,302,126 1,763,295 1,247,418 2,496,700 3,456,970 5,569,563 8,274,833

Monthly Registered Users - - - - - - - - -

par-avion.com
Advertising Category Worksheet
cpm projection

Composition by Ad Type
% of impressions
ad type Year 1 Year 2 Year 3 Year 4 Year 5

Ad Size 1 Leaderboard (1) 15% 15% 15% 15% 15%

Ad Size 2 Right rail rectangle 15% 15% 15% 15% 15%
Ad Size 3 Right rail rec 14% 14% 14% 14% 14%
Ad Size 4 Leaderboard 14% 14% 14% 14% 14%
Ad Size 5 Mobile banner 21% 21% 21% 21% 21%
Ad Size 6 Mobile banner 21% 21% 21% 21% 21%
Ad Size 7 Sponsorships* 0% 0% 0% 0% 0%
100% 100% 100% 100% 100%

Category cpm Assumptions

Category 1 Category 2 Category 3 Category 4 Category 5 Category 6

Major Categories e.g.: Luxury Auto Finance Fashion/Luxury Travel Programmatic Remnant

Leaderboard (1) 18.00 18.00 18.00 18.00 12.00 2.00

Right rail rectangle 17.00 17.00 17.00 17.00 12.00 2.00
Right rail rec 13.00 13.00 13.00 13.00 9.00 2.00
Leaderboard 11.00 11.00 11.00 11.00 7.00 2.00
Mobile banner 11.00 11.00 11.00 11.00 7.00 0.75
Mobile banner 7.00 7.00 7.00 7.00 5.00 0.75
Sponsorships*

Category Composition
Luxury Auto Finance Fashion/Luxury Travel Programmatic Remnant
Ad Compostition by category Yr 1 25% 15% 25% 20% 5% 10% 100%
Ad Compostition by category Yr 2 25% 15% 25% 20% 5% 10% 100%
Ad Compostition by category Yr 3 25% 15% 25% 20% 5% 10% 100%
Ad Compostition by category Yr 4 25% 15% 25% 20% 5% 10% 100%
Ad Compostition by category Yr 5 25% 15% 25% 20% 5% 10% 100%

Year 1 Year 2 Year 3 Year 4 Year 5

Total Weighted Site cpm $11.10 $11.10 $11.10 $11.10 $11.10
par-avion.com
Ad Revenue Calculations

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4 12 12 12 12 12
Total Page Views (Monthly Avg.) 795,743 1,128,509 1,302,126 1,763,295 1,247,418 2,496,700 3,456,970 5,569,563 8,274,833
Avg. # Ads per page 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Ad Impressions (Available Inventory) 7,161,691 10,156,579 11,719,130 15,869,655 44,907,055 89,881,216 124,450,914 200,504,251 297,894,005
% Inventory Sold 50% 55% 60% 65% 59% 65% 72% 79% 80%
Average CPM (from Ad Revenue Planning) $ 11.10 $ 11.10 $ 11.10 $ 11.10 $ 11.10
Video Ad Revenue
# of Streams 3.0 2.0 3.0 2.0 2.0
% Inventory Sold 1% 2% 2% 3% 3%
Avg Video CPM $ 21.00 $ 21.00 $ 21.00 $ 21.00 $ 21.00
Video Ad Revenue Total $ 0.63 $ 0.63 $ 1.26 $ 1.05 $ 1.26
Sponsorship Revenue $100,000.00 $239,000.00 $659,000.00 $1,550,000.00 $2,700,000.00
Total Ad Revenue $$ $ 394,223 $ 887,318 $ 1,646,439 $ 3,299,960 $ 5,344,585
$32,851.95 $73,943.19 $137,203.25 $274,996.68 $445,382.09
par-avion.com
Newsletter Revenue Assumptions

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Total Uniques (Avg. Monthly) 265,248 313,475 361,702 452,127 348,138 640,180 853,573 1,280,359 1,781,833
Opt-In % 20.0% 21.0% 22.1% 23.2% 21.8% 24.3% 25.5% 26.8% 28.1%
Newsletter Subs (Avg. Monthly) 53,050 65,830 79,755 104,679 75,828 155,628 217,880 343,161 501,444
Avg. CPM $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00
Newsletter Frequency 16 16 16 16 64 64 64 64 64
Newsletter Sub Price/Issue $ - $ - $ - $ - $ - $ - $ - $ - $ -

Newsletter Revenue Calculations

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Newsletter Ad Revenue $$ $ 8,488 $ 10,533 $ 12,761 $ 16,749 $ 48,530 $ 88,572 $ 166,612 $ 320,463 $ 624,177
Newsletter Sub Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Newsletter Revenue $ 8,488 $ 10,533 $ 12,761 $ 16,749 $ 48,530 $ 88,572 $ 166,612 $ 320,463 $ 624,177
Newsletter Growth
Year 1 Year 2 Year 3 Year 4 Year 5
Site optimization Q1 Q2 Q3 Q4
Total Uniques (Avg. Monthly) 265,248 313,475 361,702 452,127 640,180 853,573 1,280,359 1,781,833
Opt-In % 5% 5% 5% 5% 5% 5% 5% 5%
Newsletter Subs 39,787 47,021 54,255 67,819 96,027 128,036 192,054 267,275

Year 1 Year 2 Year 3 Year 4 Year 5

Paid acquisition (3rd party, social) Q1 Q2 Q3 Q4
# of subscribers 10,000 - - - - - - -
cost per subscriber $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
total cost $ 5,000 $ - $ - $ - $ - $ - $ - $ -

Year 1 Year 2 Year 3 Year 4 Year 5

Gated premium content Q1 Q2 Q3 Q4
Total Uniques (Avg. Monthly) 265,248 313,475 361,702 452,127 640,180 853,573 1,280,359 1,781,833
% Uniques to Gated Content 5% 5% 5% 5% 5% 5% 5% 5%
Total Uniques to Gated Content 13262 15674 18085 22606 32009 42679 64018 89092
Opt-In % 1.25% 1.25% 1.25% 1.25% 1.50% 1.75% 2.00% 2.00%
Newsletter Subs 166 196 226 283 480 747 1,280 1,782

Year 1 Year 2 Year 3 Year 4 Year 5

sweepstakes Q1 Q2 Q3 Q4
# of sweepstakes 1 1 1 1 1 1 1 1
# of partners 1 1 1 1 4 4 4 4
current list size 49,953 47,217 54,481 68,102 96,507 128,783 193,334 269,057
estimated # dedicated emails 49,953 47,217 54,481 68,102 386,028 515,131 773,337 1,076,227
estimated new subscribers 999 944 1,090 1,362 7,721 10,303 15,467 21,525
Cost $ 500 $ 500 $ 500 $ 500 $ 2,000 $ 2,000 $ 2,000 $ 2,000

List Size 50,952 99,113 154,684 224,148 262,701 321,429 424,184 571,812
Newsletter Cost $ 5,500 $ 500 $ 500 $ 500 $ 2,000 $ 2,000 $ 2,000 $ 2,000

Year 1 Year 2 Year 3 Year 4 Year 5

Social Referrals Q1 Q2 Q3 Q4
Traffic Generated 31,689 37,451 43,212 54,015 115,232 170,715 268,875 409,822
% From Facebook 80% 80% 80% 80% 80% 80% 80% 80%
FB Referrals 25,351 29,960 34,570 43,212 92,186 136,572 215,100 327,857
Facebook referral/fan rate 250% 250% 275% 300% 350% 400% 450% 500%
Facebook Fans (assumes 250% referr 10,140 11,984 12,571 14,404 26,339 34,143 47,800 65,571
% Organic Fans 80% 80% 80% 80% 80% 90% 95% 98%
% Fans from FB ads 20% 20% 20% 20% 20% 10% 5% 2%
Total new FB Fans from ads 2,028 2,397 2,514 2,881 5,268 3,414 2,390 1,311
Cost per Fan $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Total FB Cost $811 $959 $1,006 $1,152 $2,107 $1,366 $956 $525

Paid Traffic Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Visits 91,546 108,190 124,835 156,044 120,154 172,848 136,572 128,036
CPC $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05
Cost $ 4,577 $ 5,410 $ 6,242 $ 7,802 $ 6,008 $ 8,642 $ 6,829 $ 6,402

Total Audience Dev. Expenses $ 10,889 $ 6,868 $ 7,747 $ 9,455 $ 10,115 $ 12,008 $ 9,785 $ 8,926
par-avion.com
AUDIENCE DEVELOPMENT EXPENSE ASSUMPTIONS
Year 1 Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4 12 12 12 12 12
Search
Traffic Generated 133,798 158,124 182,451 228,064 702,437 1,766,896 2,970,433 5,531,152 8,125,159
Consulting $ $ - $ - $ - $ - $ - $ - $ - $ - $ -
Keyword Search - (SEM - Google)
Keyword Search Volume - - - - - - - - -
Cost per Acquisition $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
Paid Search Expense $ $ - $ - $ - $ - $ - $ - $ - $ - $ -
Direct - Typed/ Bookmarked (visitor types url into browser)
Traffic Generated 137,319 162,286 187,253 234,066 720,922 537,751 819,430 1,229,145 1,924,380

Paid Content Syndication (Outbrain)

Traffic Generated 274,637 324,571 374,505 468,131 1,441,845 2,074,182 1,638,860 1,536,431 641,460
Cost per Lead $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10
Co-Reg Expense $ 27,464 $ 32,457 $ 37,451 $ 46,813 $ 144,184 $ 207,418 $ 163,886 $ 153,643 $ 64,146
Content Syndication Partnerships/ Links
Traffic Generated 80,983 95,707 110,431 138,039 425,159 768,216 921,859 768,216 1,069,100
$/Month $ - $ - $ - $ - $ - $ - $ - $ - $ -
Newsletters
Number of Subscribers Added Per month - - - - - - - - -
Frequency 16 16 16 16 64 64 64 64 64
Avg Delivery Volume (per month) 53,050 65,830 79,755 104,679 75,828 155,628 217,880 343,161 501,444
Cost per Newsletter Delivered $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02
Cost per Optin/Subscriber $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50

Total Cost $ 16,976 $ 21,065 $ 25,522 $ 33,497 $ 97,060 $ 199,204 $ 278,886 $ 439,246 $ 641,848

Banner Ads on Third Party Sites

Traffic Generated - - - - - - - - -
Cost Per Click (CPC) $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
Total Cost $ - $ - $ - $ - $ - $ - $ - $ - $ -
Social Referrals
Traffic Generated 95,067 112,352 129,636 162,045 499,100 1,382,788 2,048,575 3,226,505 4,917,860
% From Facebook 75% 75% 75% 75% 75% 75% 75% 75%
FB Referrals 71,300 84,264 97,227 121,534 374,325 1,037,091 1,536,431 2,419,879 3,688,395
Facebook Fans (assumes 10% referral rate) 713,000 842,637 972,273 1,215,341 3,743,251 10,370,910 15,364,310 24,198,789 36,883,948
% Organic Fans 80% 80% 80% 80% 80% 80% 90% 95% 98%
% Fans from FB ads 20% 20% 20% 20% 20% 20% 10% 5% 2%
Total new FB Fans from ads 142,600 25,927 25,927 48,614 243,068 1,325,532 499,340 441,724 253,703
Cost per Fan $ 0.40 $ 0.40 $ 0.40 $ 0.40 $ 0.40 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total FB Cost $ 57,040 $ 10,371 $ 10,371 $ 19,445 $ 97,227 $ 1,325,532 $ 499,340 $ 441,724 $ 253,703

AUDIENCE DEVELOPMENT EXPENSES

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5
Q1 Q2 Q3 Q4
Organic Search (SEO) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Keyword Search $ - $ - $ - $ - $ - $ - $ - $ - $ -
Co-Reg $ 27,464 $ 32,457 $ 37,451 $ 46,813 $ 144,184 $ 207,418 $ 163,886 $ 153,643 $ 64,146
Content Partnerships/ Links $ - $ - $ - $ - $ - $ - $ - $ - $ - S
Newsletter Referrals $ 16,976 $ 21,065 $ 25,522 $ 33,497 $ 97,060 $ 199,204 $ 278,886 $ 439,246 $ 641,848
Banner Ads $ - $ - $ - $ - $ - $ - $ - $ - $ -
Social Ads/Marketing $ 57,040 $ 10,371 $ 10,371 $ 19,445 $ 97,227 $ 1,325,532 $ 499,340 $ 441,724 $ 253,703

Total Audience Dev. Expenses $ 101,480 $ 63,894 $ 73,343 $ 99,756 $ 338,472 $ 1,732,154 $ 942,112 $ 1,034,613 $ 959,697
par-avion.com
SALES & MARKETING EXPENSE ASSUMPTIONS

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Ad Serving
Total Impressions Served 7,161,691 10,156,579 11,719,130 15,869,655 44,907,055 89,881,216 124,450,914 200,504,251 297,894,005
Rich Media Impressions Served - - - - - - - - -
Cost per Impression Served $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001
Rich Media Cost per Impression $ 0.002 $ 0.002 $ 0.002 $ 0.002 $ 0.0020 $ 0.002 $ 0.002 $ 0.002 $ 0.002
Total Ad Serving Cost $ 716 $ 1,016 $ 1,172 $ 1,587 $ 4,491 $ 8,988 $ 12,445 $ 20,050 $ 29,789
Research (ComScore + Nielsen) $ - $ - $ - $ - $ - $ - $ - $ - $ -

PR and Events (including launch) $ 5,250 $ 5,250 $ 5,250 $ 5,250 $ 21,000 $ 20,000 $ 20,000 $ 19,000 $ 20,000
Media Marketing $ - $ - $ - $ - $ 7,884 $ 17,746 $ 32,929 $ 65,999 $ 106,892

Sales Commissions
% of Direct Sales 90% 90% 90% 90% 90% 90% 90% 90% 90%
% Rep Firm 20% 20% 20% 20% 20% 20% 20% 20% 20%
Staff Commission % 4% 4% 4% 4% 4% 4% 4% 4% 4%
Rep Firm Commission % 15% 15% 15% 15% 15% 15% 15% 15% 15%

Total Ad Revenue 394,223 887,318 1,646,439 3,299,960 5,344,585

Ad $ Direct Sales 88,700 88,700 88,700 88,700 354,801 798,587 1,481,795 2,969,964 4,810,127
Ad $ Rep Firm Sales 19,711 19,711 19,711 19,711 78,845 177,464 329,288 659,992 1,068,917

SALES & MARKETING EXPENSES

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Ad Serving $ 716 $ 1,016 $ 1,172 $ 1,587 $ 4,491 $ 8,988 $ 12,445 $ 20,050 $ 29,789
Research $ - $ - $ - $ - $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ - $ - $ - $ - $ -
PR and Events (including launch) $ 5,250 $ 5,250 $ 5,250 $ 5,250 $ 21,000 $ 20,000 $ 20,000 $ 19,000 $ 20,000
Media Marketing $ - $ - $ - $ - $ 7,884 $ 17,746 $ 32,929 $ 65,999 $ 106,892
Direct Commissions $ 3,548 $ 3,548 $ 3,548 $ 3,548 $ 14,192 $ 31,943 $ 59,272 $ 118,799 $ 192,405
Rep Commissions $ 2,957 $ 2,957 $ 2,957 $ 2,957 $ 11,827 $ 26,620 $ 49,393 $ 98,999 $ 160,338

Total Sales & Marketing Expenses $ 12,471 $ 12,770 $ 12,927 $ 13,342 $ 59,394 $ 105,297 $ 174,039 $ 322,847 $ 509,424
par-avion.com
STAFF COSTS

Assumptions
Annual Salary Growth 3.0%
Estimated Pension & Benefits Percentage 23%

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Title Base Salary Start Date Q1 Q2 Q3 Q4
Staff Positions (qualified for benefits)
Executive Editor $ 60,000 1/1/2013 $15,000 $15,000 $15,000 $15,000 $60,000 $61,800 $63,654 $65,564 $67,531
Editorial Assistant $ 35,000 1/1/2013 $8,750 $8,750 $8,750 $8,750 $35,000 $36,050 $37,132 $38,245 $39,393
Editorial Assistant $ 35,000 1/1/2013 $8,750 $8,750 $8,750 $8,750 $35,000 $36,050 $37,132 $38,245 $39,393
Photo Assistant $ 35,000 1/1/2013 $8,750 $8,750 $8,750 $8,750 $35,000 $36,050 $37,132 $38,245 $39,393
Senior Web Producer $ 50,000 1/1/2013 $12,500 $12,500 $12,500 $12,500 $50,000 $51,500 $53,045 $54,636 $56,275
Digital Sales Director $ 90,000 1/1/2013 $22,500 $22,500 $22,500 $22,500 $90,000 $92,700 $95,481 $98,345 $101,296
Digital Sales Representative $ 70,000 1/1/2013 $17,500 $17,500 $17,500 $17,500 $70,000 $72,100 $74,263 $76,491 $78,786
Social Media Manager $ 50,000 1/1/2013 $12,500 $12,500 $12,500 $12,500 $50,000 $51,500 $53,045 $54,636 $56,275
Social Media Analyst $ 35,000 1/1/2013 $8,750 $8,750 $8,750 $8,750 $35,000 $36,050 $37,132 $38,245 $39,393
Video Editor $ 50,000 1/1/2013 $12,500 $12,500 $12,500 $12,500 $50,000 $51,500 $53,045 $54,636 $56,275
Audience Engagement Editor $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 13 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 14 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 15 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 15 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 16 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 17 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 18 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 19 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 20 $ - 1/1/2013 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Staff $ 510,000 $127,500 $127,500 $127,500 $127,500 $510,000 $525,300 $541,059 $557,291 $574,009
Total Staff w/ benefits $ 510,000 $156,825 $156,825 $156,825 $156,825 $627,300 $646,119 $665,503 $685,468 $706,032

Freelancers
Researcher $ 25,000 1/1/2014 $6,250 $6,250 $6,250 $6,250 $25,000 $25,750 $26,523 $27,318 $28,138
Researcher $ 25,000 1/1/2014 $6,250 $6,250 $6,250 $6,250 $25,000 $25,750 $26,523 $27,318 $28,138
Copy Editor $ 27,000 1/1/2014 $6,750 $6,750 $6,750 $6,750 $27,000 $27,810 $28,644 $29,504 $30,389
Copy Editor $ 27,000 1/1/2014 $6,750 $6,750 $6,750 $6,750 $27,000 $27,810 $28,644 $29,504 $30,389
Art Assistant $ 35,000 1/1/2014 $8,750 $8,750 $8,750 $8,750 $35,000 $36,050 $37,132 $38,245 $39,393
Content Writer $ 26,000 1/1/2014 $6,500 $6,500 $6,500 $6,500 $26,000 $26,780 $27,583 $28,411 $29,263
Content Writer $ 26,000 1/1/2014 $6,500 $6,500 $6,500 $6,500 $26,000 $26,780 $27,583 $28,411 $29,263
Content Writer $ 26,000 1/1/2014 $6,500 $6,500 $6,500 $6,500 $26,000 $26,780 $27,583 $28,411 $29,263
Position 9 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 10 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 11 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 12 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 13 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 14 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 15 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 16 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 17 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 18 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 19 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Position 20 $ - 1/1/2014 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Freelancers $ 217,000 $54,250 $54,250 $54,250 $54,250 $217,000 $223,510 $230,215 $237,122 $244,235

Staff Headcount 10 10 10 10 10 10 10 10 10
Free Lance Headcount 8 8 8 8 8 8 8 8 8
Total Personnel 18 18 18 18 18 18 18 18 18

Total Personnel Expense (including benefits) $211,075 $211,075 $211,075 $211,075 $844,300 $869,629 $895,718 $922,589 $950,267
par-avion.com
Site Editorial Contributor Assumptions

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Text & Image Assumptions Q1 Q2 Q3 Q4
# New Articles from Staff/Contributors 250.0 250.0 250.0 250.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0
# New Slideshows 25.0 25.0 25.0 25.0 100.0 100.0 100.0 100.0 100.0

# of Images per Article 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
# of Images per Slideshow 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
Total Images Acquired 1,050.0 1,050.0 1,050.0 1,050.0 4,200.0 4,200.0 4,200.0 4,200.0 4,200.0
Avg Cost Per Image $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00
Avg Cost Per Article (Text) $ - $ - $ - $ - $ - $ - $ - $ - $ -

Video Assumptions
# Videos 12.0 12.0 12.0 12.0 48.0 48.0 48.0 48.0 48.0
Cost/ Video $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750
% Produced In-house 50% 50% 50% 50% 50% 50% 50% 50% 50%
% Freelanced 50% 50% 50% 50% 50% 50% 50% 50% 50%
Programming Fixed costs/video $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500 $ 500 $ 500 $ 500

Site Editorial Cost Calculations

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Image Costs Freelance $ 15,750 $ 15,750 $ 15,750 $ 15,750 $ 63,000 $ 63,000 $ 63,000 $ 63,000 $ 63,000
Text Costs Freelance $ - $ - $ - $ - $ - $ - $ - $ - $ -
Video Costs Freelance $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000
Video ProgrammingCosts $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000
Third Party Content Costs $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Site Editorial Costs $ 26,250 $ 26,250 $ 26,250 $ 26,250 $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000
par-avion.com
Technology Costs

Assumptions
Annual growth tech. expense (non-personnel) 4%
Contingency 10%
Cost per dedicated stream $0
Average number of streams as a percent of traffic 5%

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Page Views (Avg Monthly) 795,743 1,128,509 1,302,126 1,763,295 1,247,418 2,496,700 3,456,970 5,569,563 8,274,833
Server Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0
Hosting & Maintenance $1,125 $1,875 $1,875 $1,875 $6,750 $7,500 $9,600 $21,600 $27,600
Software License Fees $500 $500 $500 $500 $2,000 $2,080 $2,163 $2,250 $2,340
Other $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0

Video Streaming $2,500 $2,500 $2,500 $2,500 $10,000 $10,400 $10,816 $11,249 $11,699
Contingency Costs $363 $438 $438 $438 $1,675 $1,790 $2,042 $3,285 $3,930
Total Technology (non-personnel) Cost $4,488 $5,313 $5,313 $5,313 $20,425 $21,770 $24,621 $38,383 $45,568

Min Page View ASP Fee

- $375
1,000,000 $625
2,500,000 $800
4,000,000 $1,300
5,500,000 $1,800
7,000,000 $2,300
8,500,000 $2,800
10,000,000 $3,300
11,500,000 $3,800
13,000,000 $4,300
14,500,000 $4,800
16,000,000 $5,300
17,500,000 $5,500
par-avion.com
General Administrative Costs

Assumptions
Computer costs per person $3,000
Furniture costs per person $3,000
Misc G & A (% of salaries) 10.0%
Computer Depreciable Life (yrs) 3
Furniture Depreciable Life (yrs) 5

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5

Q1 Q2 Q3 Q4
Rent $40,000 $40,000 $40,000 $40,000 $160,000 $160,000 $160,000 $160,000 $160,000
Travel & Entertainment $30,000 $30,000 $30,000 $30,000 $120,000 $120,000 $120,000 $120,000 $120,000
Legal and Professional Fees $10,000 $10,000 $10,000 $10,000 $40,000 $44,000 $48,400 $53,240 $58,564
Other G & A $21,108 $21,108 $21,108 $63,323 $86,963 $89,572 $92,259 $95,027

Personnel Related CapEx

Computers $4,500 $4,500 $4,500 $4,500 $18,000 $18,000 $18,000 $18,000 $18,000
Furniture $2,700 $2,700 $2,700 $2,700 $10,800 $10,800 $10,800 $10,800 $10,800
Total Start-up Costs $7,200 $7,200 $7,200 $7,200 $28,800 $28,800 $28,800 $28,800 $28,800
Total G & A Costs $87,200 $108,308 $108,308 $108,308 $412,123 $439,763 $446,772 $454,299 $462,391