Waterfall/Liquidation Analysis For AVC

	A	B	C	D	E	F	G	H	I	J	K	L
1	XYZ Company

2	September 26, 2011
3	Current Post Money Valuation	$51,000,000
4
5
6		Common Shares	Series A (cost)	Series A (shares)	Series B (cost)	Series B (shares)	Series C (cost)	Series C (shares)	Options	Total Cost	Total Shares	Ownership
7	Share Price:			$2.50		$5.00		$10.00				(fully diluted)
8
9	Founders:
10	Sharon	1,000,000									1,000,000	19.61%
11	Mike	1,000,000									1,000,000	19.61%
12
13	Investors:
14	AVC		$1,000,000	400,000	$1,000,000	200,000	$1,500,000	150,000		$3,500,000	750,000	14.71%
15	BVC				$3,000,000	600,000	$1,500,000	150,000		$4,500,000	750,000	14.71%
16	CVC						$6,000,000	600,000		$6,000,000	600,000	11.76%
17
18	Management:
19	CEO								250,000		250,000	4.90%
20	Other Senior Mgmt								250,000		250,000	4.90%
21	Other Employees								250,000		250,000	4.90%
22	Unissued Options								250,000		250,000	4.90%
23
24	Totals	2,000,000	$1,000,000	400,000	$4,000,000	800,000	$9,000,000	900,000	1,000,000	$14,000,000	5,100,000	100%

	A	B	C	D	E	F	G	H	I	J	K	L
1	XYZ Company
2	Liquidation Model
3	September 26, 2011
4
5	Shareholdings:	Shares	Share Price	Cost	Liquidation Preference	% Ownership
6	Series C	900,000	$10.00	$9,000,000	$9,000,000	17.65%
7	Series B	800,000	$5.00	$4,000,000	$4,000,000	15.69%
8	Series A	400,000	$2.50	$1,000,000	$1,000,000	7.84%
9	Common Stock	2,000,000				39.22%
10	Options	1,000,000				19.61%
11	Totals	5,100,000				100.00%
12
13
14	Sale Price	$5,000,000	$10,000,000	$15,000,000	$20,000,000	$25,000,000	$30,000,000	$35,000,000	$40,000,000	$45,000,000	$50,000,000	$55,000,000
15	sale price per fully diluted share	$0.98	$1.96	$2.94	$3.92	$4.90	$5.88	$6.86	$7.84	$8.82	$9.80	$10.78
16
17	Series C Liquidation Preference	$5,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$0
18	Residual for others	$0	$1,000,000	$6,000,000	$11,000,000	$16,000,000	$21,000,000	$26,000,000	$31,000,000	$36,000,000	$41,000,000	$55,000,000
19	Shares left after Srs C Liquidation	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000	4,200,000
20	Residual/share	$0.00	$0.24	$1.43	$2.62	$3.81	$5.00	$6.19	$7.38	$8.57	$9.76	$13.10
21
22	Series B Liquidation Preference		$1,000,000	$4,000,000	$4,000,000	$4,000,000	$0	$0	$0	$0	$0	$0
23	Residual for others	$0	$0	$2,000,000	$7,000,000	$12,000,000	$21,000,000	$26,000,000	$31,000,000	$36,000,000	$41,000,000	$55,000,000
24	Shares left after Srs B Liquidation	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000	3,400,000
25	Residual/share	$0.00	$0.00	$0.59	$2.06	$3.53	$6.18	$7.65	$9.12	$10.59	$12.06	$16.18
26
27	Series A Liquidation Preference			$1,000,000	$1,000,000	$0	$0	$0	$0	$0	$0	$0
28	Residual for others	$0	$0	$1,000,000	$6,000,000	$12,000,000	$21,000,000	$26,000,000	$31,000,000	$36,000,000	$41,000,000	$55,000,000
29	Shares left after Srs A Liquidation	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000
30	Residual/share	$0.00	$0.00	$0.33	$2.00	$4.00	$7.00	$8.67	$10.33	$12.00	$13.67	$18.33
31
32	Common & Options	$0	$0	$1,000,000	$6,000,000	$12,000,000	$21,000,000	$26,000,000	$31,000,000	$36,000,000	$41,000,000	$55,000,000
33
34
35
36	Proceeds:
37	Series C	$5,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,000,000	$9,705,882
38	Series B	$0	$1,000,000	$4,000,000	$4,000,000	$4,000,000	$4,000,000	$4,952,381	$5,904,762	$6,857,143	$7,809,524	$8,627,451
39	Series A	$0	$0	$1,000,000	$1,000,000	$1,411,765	$2,000,000	$2,476,190	$2,952,381	$3,428,571	$3,904,762	$4,313,725
40	Common Stock	$0	$0	$666,667	$4,000,000	$7,058,824	$10,000,000	$12,380,952	$14,761,905	$17,142,857	$19,523,810	$21,568,627
41	Options	$0	$0	$333,333	$2,000,000	$3,529,412	$5,000,000	$6,190,476	$7,380,952	$8,571,429	$9,761,905	$10,784,314
42	Totals	$5,000,000	$10,000,000	$15,000,000	$20,000,000	$25,000,000	$30,000,000	$35,000,000	$40,000,000	$45,000,000	$50,000,000	$55,000,000
43
44
45	Proceeds Per Shareholder:
46	Founders:
47	Sharon	$0	$0	$333,333	$2,000,000	$3,529,412	$5,000,000	$6,190,476	$7,380,952	$8,571,429	$9,761,905	$10,784,314
48	Mike	$0	$0	$333,333	$2,000,000	$3,529,412	$5,000,000	$6,190,476	$7,380,952	$8,571,429	$9,761,905	$10,784,314
49
50	Investors:
51	AVC	$833,333	$1,750,000	$3,500,000	$3,500,000	$3,911,765	$4,500,000	$5,214,286	$5,928,571	$6,642,857	$7,357,143	$8,088,235
52	BVC	$833,333	$2,250,000	$4,500,000	$4,500,000	$4,500,000	$4,500,000	$5,214,286	$5,928,571	$6,642,857	$7,357,143	$8,088,235
53	CVC	$3,333,333	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,000,000	$6,470,588
54
55	Management:
56	CEO	$0	$0	$83,333	$500,000	$882,353	$1,250,000	$1,547,619	$1,845,238	$2,142,857	$2,440,476	$2,696,078
57	Other Senior Mgmt	$0	$0	$83,333	$500,000	$882,353	$1,250,000	$1,547,619	$1,845,238	$2,142,857	$2,440,476	$2,696,078
58	Other Employees	$0	$0	$83,333	$500,000	$882,353	$1,250,000	$1,547,619	$1,845,238	$2,142,857	$2,440,476	$2,696,078
59	Unissued Options (assuming they are issued)	$0	$0	$83,333	$500,000	$882,353	$1,250,000	$1,547,619	$1,845,238	$2,142,857	$2,440,476	$2,696,078
60
61	Totals	$5,000,000	$10,000,000	$15,000,000	$20,000,000	$25,000,000	$30,000,000	$35,000,000	$40,000,000	$45,000,000	$50,000,000	$55,000,000