company confidential trouvaille brewing

CONFIDENTIAL

Trouvaille Brewing Company

Beer for beer's sake

Business planPrepared January 2021

Contact InformationCody Powell

[email protected]

713-240-9732

www.trouvaillebrewingco.com


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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

Executive Summary

Opportunity

Problem

There is a distinct need for high quality beer in the greater Manassas area. Over the past 5 years, the craft brewing scene has expanded greatly in Northern Virginia, and we are nowhere near market saturation.

What is missing from the Manassas market is an upscale brewery serving high quality IPAs, high gravity stouts, and fruited sours. This is the market we intend to target.

Solution

Our brewery will offer a diverse selection of high quality craft beer in an upscale urban setting. Our beers will be designed to be of the highest quality possible, and served in an inviting, high traffic section of Manassas Park that is growing at a rate that exceeds the available beer market.

Market

With a primary market of nearly 5,000 residential units and a median income of $92.5k, and a secondary and tertiary market that exceeds 170,000 residents and is expected to climb to over 180,000 by next year, this area is ready for another brewery.

According to the Brewers Association, the number of breweries in Virginia ranks as the 12th highest in the US, however those Virginia breweries rank 5th in growth up over 36% since 2015, with an economic impact to the Commonwealth of Virginia in the order of $1.866B.

As there are no other breweries in Manassas Park, with a continually growing and more affluent population, a brewery in place at this location can expect to match


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that growth and also elevate the growth of other businesses that fall within it's primary market.

Competition

There are 6 breweries in the greater Manassas area. Only four of them are profitable;

2 Silos Brewing Company - 6.9 miles - A component of Farm Brew Live, a large scale dining and entertainment space. Not considered direct competition due to distance and clientele.

Sinistral Brewing Company - 2.6 miles - A 7 BBL brewery in Old Town Manassas, will be a close collaborator with our business. Some potential competition due to proximity.

Eavesdrop Brewing Company - 2.7 miles - A small scale brewery that has a different operating model, with wine, cider, as well as guest taps. Small tap room with mostly outdoor seating. Collaboration is possible, with some potential competition due to proximity.

Tucked Away Brewing Company - 1.0 miles - A 20 BBL brewery in a nearby industrial park. We will look to collaborate due to their ample brewing capacity. Definite competition due to proximity, however we will provide a more refined atmosphere, and higher quality beer.

Two breweries in the area that are suffering due to poor business decisions;

Heritage Brewing Company

BadWolf Brewing Company


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Why Us?

Our ownership group brings a unique collection of skills to the Manassas brewing scene, including management, engineering, and most importantly, award-winning brewing experience.

We are a team of 5 experienced homebrewers with over 100 individual medals in competitions ranging from local to the national level.

We have ample operations management experience, with an MBA and PMP certifications.

The craft beer industry is a close one, built on community. We will coordinate closely and have the support of local breweries, ensuring a welcoming environment for our new business.

We also have the support of a 50 member homebrew club that will serve as a foundational client base, and will help draw business from across the greater Prince William County area.


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Expectations

Financial Highlights by Year

Financing Needed

Our business will be primary funded by the ownership group, with the primary financing involving the 5BBL Blichman brewing system.

We will create and leverage a crowdfunding mechanism to acquire initial operating costs utilizing a multi-tiered strategy to reward our customers.


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Execution

Marketing & Sales

• Trivia Night - Host bi-weekly Trivia night, with prizes for winning teams. These types of events keep customers on location for a 2-3 hours period.

• Social Media • Facebook - By using Facebook to the fullest of our ability. Sharing daily

with new beers, upcoming events, brewing and process pictures. Direct market advertising to promote posts to our target audience and locale.

• Instagram - Similar to Facebook, using this platform to get our name out and expand our reach.

• "Beer Amnesty for Crappy Beers" - During specific times/events, invite local residents to bring in their less desirable offerings (1 or 2 full unopened bottles or cans) — typically leftover from friends — and trade up for our beer, no questions asked. This will create a very memorable positive experience for the visitor creating a repeat customer.

• Member's Only Club - Multi-tiered mug club membership that grants the member different perks, whether it be a slight discount on a pour, heavier discounts during sales and private tasting events. This will allow us to foster a community of loyal customers that have a vested interest to return to us often.

• Co-Marketed Events - Leverage the existing customer bases of other local businesses, such as food trucks, restaurants, cigar shops, and even other breweries by hosting co-sponsored events.

• Radio Host Days - Coordinate events where local radio personalities can broadcast live from our location. This generates hours of on air marketing and generally has audience pull due to having a local celebrity.


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• Small Live Musical Acts - While we don't believe the space is large enough to facilitate a full band, there is ample room for a 1-2 person acoustic set. Musicians tend to have local fans who follow them, as well as other people who would just like to sit and enjoy the music while drinking a local craft beer.

Operations

Locations & Facilities

We will sign a five-year lease for a retail zoned (MU-D) space at 125 Market Street, in Manassas Park VA. We plan for a build out of 2380 sq ft of interior space, with an additional 1000 sq ft of outdoor seating at the center of an upscale apartment/retail center. There are 291 units within the facility, which will provide an ample customer base.

Equipment & Tools

We plan to acquire a world class brewing system from Blichmann Engineering including, but not limited to:

• One (1) 5 BBL Hybrid Electric Brewhouse• Four (4) 5 BBL Unitank Fermentation Vessels used to ferment our wort and

produce high quality craft beer• One (1) 5 BBL Bright Tank, used to clear and carbonate our finished product

and prepare for packaging• 65 lb capacity Grain Mill and Stand• Oxygenation and Carbonation Kits• Condensate Lids for both the Hot Liquor Tank and Boil Kettle to resolve any

steam and the need for external ventilation. This will capture all steam and allow us to reclaim the water to be used for cleanup.

Additionally from other vendors we plan on securing the following equipment:

• One Hundred Twenty (120) Half Barrel (15.5 Gallon) Kegs• 1.33 HP Glycol Chilling Unit used for fermentation temperature control.


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• Individual CO2 Regulators, pouring faucets, glassware, and other front of house materials.

Milestones & Metrics

Milestones Table

Milestone Due Date

Key metrics


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Company

Overview

Ownership & Structure

Trouvaille Brewing Company is jointly owned as a limited liability corporation (LLC). There are five founders; Cody Powell, Stephen Boyajian, Ricky Elliott, Jacob Osman, and Gregory Ramirez. Each co-owner has an equal share, and no outside investors are involved at this point in time. This may change in the future as our business grows.

Company history

The story of Trouvaille Brewing Company is really the story of four different breweries; Congressional Brewing, 2327 Brewing, Happy Hound Brewing, and Alba Garage Brewing Co. These home breweries have served as the incubator for the recipes that we will bring to the greater Manassas area. We honed our passion for great beer in our garages, and over the past 5 years have produced a level of quality we believe the area is lacking. Beer that has won over 100 individual awards and garnered critical acclaim from both amateur and professional brewers alike.

We have perfected our craft, and are ready to bring our vision to City Center.

Team

Management team

Co-Owner: Cody Powell

Cody is a 20 year veteran of the US Army/Army Reserve and US Federal Goverment, where he currently serves as a senior manager with the National Geospatial-Intelligence Agency. He has a strong background in operations management, as well as his Project Management Professional (PMP) certification, and has led successful operations from the age of 23. He holds an MBA from


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Norwich University (birthplace of the ROTC), and brings exceptional management skills to the team.

A homebrewer for almost a decade, Cody dreamed of owning a brewery for several years, and in 2016 attained his MBA in pursuit of this goal. He built his first business plan not long after, and has spent the intervening years working with fellow home brewers who share his passion to bring Trouvaille to life.

Co-Owner: Stephen Boyajian

Stephen is a Web and Graphic Designer by trade, having worked for large corporations and government agencies over the past 20+ years. He is currently in his 6th year as a Senior Web Developer for the Air Force Office of Scientific Research. Prior to this, Stephen occupied the role of Editor-in-Chief for a nationally published cigar magazine. He has 10+ years of team management experience and is a Certified ScrumMaster from ScrumAlliance.

Stephen has been a homebrewer for 6 years and in that time has made great strides in his process winning over 60 individual awards from local and national competitions, including 2 Best of Shows and 4 Brewer of the Year awards. In his spare time, he volunteers by coaching little league baseball and organizing and running events for his local cub scout pack.

Co-Owner: Ricky Elliott

Ricky L. Elliott Jr. grew up in Cincinnati, Ohio. After completing high school in 2000, he enlisted in the United States Navy. He was trained as a Hospital Corpsman and deployed five times with three combat deployments in Iraq and Afghanistan with the United States Marine Corps and United States Army. He left the military in 2013 and moved to the Northern Virginia to work for the United States Government.

Ricky’s passion for brewing and drinking beer has grown over the last five years with the ultimate goal of owning and operating a brewery. He’s looking forward to the altruistic nature of the brewing community and building a high quality brand with his fellow home brewers to make Trouvaille a house hold name.


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Co-Owner: Jake Osman

Jake is currently an opto-mechanical and product engineer for a subcontracting firm working under multiple US Government entities. Previously, he designed and manufactured high-speed camera systems for the food and beverage industries. He has a background in interdisciplinary physics and over a decade of experience in the mechanical engineering field. He also possesses a Master of Engineering in Sustainable Energy Systems.

Jake's fascination with craft beer started early in his college days. After putting it off for far too long, he got his first homebrew kit and made his debut beer, a simple pale ale, in 2016. From there the hobby quickly grew into a dedicated passion and a love for sharing a nice brew with friends and family. He has a deep appreciation for the brewing process and has accumulated over 25 local and regional awards as well as a recent Brewer of the Year recognition.

Co-Owner: Greg Ramirez

Advisors


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Financial Plan

Forecast

Key assumptions

We have made the following assumptions in order to reach our financial forecast;

Materials Cost

• Grain cost per pound$0.80• Hops cost per pound$13.00• Yeast cost per bbl$30.00• Misc cost per bbl$25.00• Average Grain Bill (Lbs) - 346.5• Average Cost - $277.20• Average Hop Bill (lbs) - 15• Average Cost - $195.00• Average Yeast Bill - $150.00• Average Misc - $125.00• Average Total Cost - $747.20

Gross Profit (per bbl) - TAPROOM

Variables Size (oz) Sale Price (avg) % of Sales oz sold Total Sales

Pint Sales 16 $7.00 60% 2056.32 $899.64

Half Pint Sales 8 $4.00 15% 514.08 $257.04

Taster Sales 4 $2.50 5% 171.36 $107.10


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Growler Sales 64 $16.00 5% 171.36 $42.84

32 $10.00 5% 171.36 $53.55

Can Sales 64 $18.00 10% 342.72 $96.39

Total Sales (per bbl) - $1,360.17

profit per ounce - $0.40

Throughput (Sales)

*These figures represent Q1 expectations, and fluctuate throughout projections due to multiple factors.

• Customers per hour (taproom) - 30• Hours per week - 36• Avg sales per customer (oz) - 32• Avg oz per week (taproom) - 34560.00• Avg sales per week (BBL) - 8.57


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Revenue by Month

Expenses by Month


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Net Profit (or Loss) by Year

Financing

Use of funds

Sources of Funds

Trouvaille Brewing Company will start with the following funds:

$70,000 - Cash in hand

$61,000 - Financing line of credit for brewing system

Trouvaille Brewing Company has a plan outline for additional funding needs using either:

A.) Crowdfunding (i.e. Kickstarter, Indegogo)

B.) Investors (i.e Mainvest)


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Statements

Projected Profit and Loss

2021 2022 2023

Revenue $266,911 $506,943 $553,029

Direct Costs

Gross Margin $266,911 $506,943 $553,029

Gross Margin % 100% 100% 100%

Operating Expenses

Materials $32,424 $43,224 $47,153

Rent $36,000 $36,000

Utilities $10,212 $12,672 $13,824

Loan $16,000 $24,000 $24,000

Insurance $4,000 $6,000 $6,000

Total Operating Expenses $62,636 $121,896 $126,977

Operating Income $204,275 $385,047 $426,052

Interest Incurred $3,362 $4,980 $3,898

Depreciation and Amortization $3,806 $5,709 $5,709

Gain or Loss from Sale of Assets

Income Taxes $39,421 $74,872 $83,289

Total Expenses $109,225 $207,457 $219,873

Net Profit $157,686 $299,486 $333,156

Net Profit / Sales 59% 59% 60%


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Projected Balance Sheet

2021 2022 2023

Cash $215,683 $497,798 $829,673

Accounts Receivable $0 $0 $0

Inventory

Other Current Assets

Total Current Assets $215,683 $497,798 $829,673

Long-Term Assets $57,090 $57,090 $57,090

Accumulated Depreciation ($3,806) ($9,515) ($15,224)

Total Long-Term Assets $53,284 $47,575 $41,866

Total Assets $268,967 $545,373 $871,539

Accounts Payable $0 $0 $0

Income Taxes Payable $25,737 $18,737 $20,844

Sales Taxes Payable $31,107 $25,347 $27,652

Short-Term Debt $10,321 $11,402 $12,595

Prepaid Revenue

Total Current Liabilities $67,165 $55,486 $61,091

Long-Term Debt $44,117 $32,715 $20,120

Long-Term Liabilities $44,117 $32,715 $20,120

Total Liabilities $111,281 $88,201 $81,211

Paid-In Capital

Retained Earnings $157,686 $457,172

Earnings $157,686 $299,487 $333,156

Total Owner's Equity $157,686 $457,172 $790,328

Total Liabilities & Equity $268,967 $545,373 $871,539


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Projected Cash Flow Statement

2021 2022 2023

Net Cash Flow from Operations

Net Profit $157,686 $299,486 $333,156

Depreciation & Amortization $3,806 $5,709 $5,709

Change in Accounts Receivable $0 $0 $0

Change in Inventory

Change in Accounts Payable $0 $0 $0

Change in Income Tax Payable $25,737 ($7,000) $2,107

Change in Sales Tax Payable $31,107 ($5,760) $2,305

Change in Prepaid Revenue

Net Cash Flow from Operations $218,336 $292,436 $343,277

Investing & Financing

Assets Purchased or Sold ($57,090)

Net Cash from Investing ($57,090)

Investments Received

Dividends & Distributions

Change in Short-Term Debt $10,321 $1,081 $1,194

Change in Long-Term Debt $44,117 ($11,402) ($12,595)

Net Cash from Financing $54,437 ($10,321) ($11,402)

Cash at Beginning of Period $0 $215,683 $497,798

Net Change in Cash $215,683 $282,115 $331,875

Cash at End of Period $215,683 $497,798 $829,673


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AppendixProfit and Loss Statement (With monthly detail)

2021 Jan '21 Feb '21 Mar '21 Apr '21 May '21 June '21 July '21 Aug '21 Sept '21 Oct '21 Nov '21 Dec '21

Total Revenue $57,607 $53,766 $51,846 $51,846 $51,846

Total Direct Costs

Gross Margin $57,607 $53,766 $51,846 $51,846 $51,846

Gross Margin % 100% 100% 100% 100% 100%

Operating Expenses

Materials $3,580 $3,580 $3,580 $4,680 $4,368 $4,212 $4,212 $4,212

Rent

Utilities $980 $1,280 $1,280 $1,440 $1,344 $1,296 $1,296 $1,296

Loan $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Insurance $500 $500 $500 $500 $500 $500 $500 $500

Total Operating Expenses

$7,060 $7,360 $7,360 $8,620 $8,212 $8,008 $8,008 $8,008

Operating Income ($7,060) ($7,360) ($7,360) $48,987 $45,554 $43,838 $43,838 $43,838

Interest Incurred $500 $494 $487 $480 $474 $467 $460

Depreciation and Amortization $476 $476 $475 $476 $476 $476 $475 $476


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Income Taxes $0 $0 $0 $4,765 $8,919 $8,578 $8,579 $8,580

Total Expenses $7,536 $8,336 $8,329 $14,348 $18,087 $17,535 $17,530 $17,524

Net Profit ($7,536) ($8,336) ($8,329) $43,259 $35,679 $34,311 $34,316 $34,322

Net Profit / Sales 75% 66% 66% 66% 66%


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2021 2022 2023

Total Revenue $266,911 $506,943 $553,029

Total Direct Costs

Gross Margin $266,911 $506,943 $553,029

Gross Margin % 100% 100% 100%

Operating Expenses

Materials $32,424 $43,224 $47,153

Rent $36,000 $36,000

Utilities $10,212 $12,672 $13,824

Loan $16,000 $24,000 $24,000

Insurance $4,000 $6,000 $6,000

Total Operating Expenses $62,636 $121,896 $126,977

Operating Income $204,275 $385,047 $426,052

Interest Incurred $3,362 $4,980 $3,898

Depreciation and Amortization $3,806 $5,709 $5,709


Income Taxes $39,421 $74,872 $83,289

Total Expenses $109,225 $207,457 $219,873

Net Profit $157,686 $299,486 $333,156

Net Profit / Sales 59% 59% 60%


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Balance Sheet (With Monthly Detail)


Cash ($4,150) ($12,785) ($21,420) $37,813 $92,846 $109,819 $162,751 $215,683

Accounts Receivable $0 $0 $0 $0 $0

Inventory


Total Current Assets ($4,150) ($12,785) ($21,420) $37,813 $92,846 $109,819 $162,751 $215,683

Long-Term Assets $57,090 $57,090 $57,090 $57,090 $57,090 $57,090 $57,090 $57,090

Accumulated Depreciation ($476) ($951) ($1,427) ($1,903) ($2,379) ($2,855) ($3,330) ($3,806)

Total Long-Term Assets $56,614 $56,139 $55,663 $55,187 $54,711 $54,236 $53,760 $53,284

Total Assets $52,464 $43,354 $34,243 $93,000 $147,557 $164,055 $216,511 $268,967

Accounts Payable $0 $0 $0 $0 $0 $0 $0 $0

Income Taxes Payable $0 $0 $0 $4,765 $13,684 $8,578 $17,157 $25,737

Sales Taxes Payable $11,521 $22,275 $10,369 $20,738 $31,107

Short-Term Debt $9,738 $9,819 $9,901 $9,984 $10,067 $10,151 $10,235 $10,321

Prepaid Revenue

Total Current Liabilities $9,738 $9,819 $9,901 $26,270 $46,026 $29,098 $48,130 $67,165

Long-Term Debt $50,262 $49,406 $48,542 $47,672 $46,794 $45,909 $45,017 $44,117

Long-Term Liabilities $50,262 $49,406 $48,542 $47,672 $46,794 $45,909 $45,017 $44,117


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Total Liabilities $60,000 $59,225 $58,444 $73,942 $92,820 $75,007 $93,147 $111,281

Paid-In Capital

Retained Earnings

Earnings ($7,536) ($15,872) ($24,201) $19,058 $54,737 $89,048 $123,364 $157,686

Total Owner's Equity ($7,536) ($15,872) ($24,201) $19,058 $54,737 $89,048 $123,364 $157,686

Total Liabilities & Equity

$52,464 $43,354 $34,243 $93,000 $147,557 $164,055 $216,511 $268,967


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2021 2022 2023

Cash $215,683 $497,798 $829,673

Accounts Receivable $0 $0 $0

Inventory


Total Current Assets $215,683 $497,798 $829,673

Long-Term Assets $57,090 $57,090 $57,090

Accumulated Depreciation ($3,806) ($9,515) ($15,224)

Total Long-Term Assets $53,284 $47,575 $41,866

Total Assets $268,967 $545,373 $871,539

Accounts Payable $0 $0 $0

Income Taxes Payable $25,737 $18,737 $20,844

Sales Taxes Payable $31,107 $25,347 $27,652

Short-Term Debt $10,321 $11,402 $12,595

Prepaid Revenue

Total Current Liabilities $67,165 $55,486 $61,091

Long-Term Debt $44,117 $32,715 $20,120

Long-Term Liabilities $44,117 $32,715 $20,120

Total Liabilities $111,281 $88,201 $81,211

Paid-In Capital

Retained Earnings $157,686 $457,172

Earnings $157,686 $299,487 $333,156

Total Owner's Equity $157,686 $457,172 $790,328


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Total Liabilities & Equity $268,967 $545,373 $871,539


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Cash Flow Statement (With Monthly Detail)



Net Profit ($7,536) ($8,336) ($8,329) $43,259 $35,679 $34,311 $34,316 $34,322

Depreciation & Amortization $476 $476 $476 $476 $476 $476 $476 $476

Change in Accounts Receivable

$0 $0 $0 $0 $0

Change in Inventory

Change in Accounts Payable

$0 $0 $0 $0 $0 $0 $0 $0

Change in Income Tax Payable

$0 $0 $0 $4,765 $8,919 ($5,106) $8,579 $8,580

Change in Sales Tax Payable $11,521 $10,754 ($11,906) $10,369 $10,369



($7,060) ($7,860) ($7,854) $60,021 $55,828 $17,774 $53,740 $53,747


Assets Purchased or Sold

($57,090)



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Change in Short-Term Debt

$9,738 $81 $82 $83 $83 $84 $85 $85

Change in Long-Term Debt

$50,262 ($856) ($863) ($870) ($878) ($885) ($892) ($900)

Net Cash from Financing $60,000 ($775) ($781) ($788) ($795) ($801) ($808) ($815)

Cash at Beginning of Period $0 ($4,150) ($12,785) ($21,420) $37,813 $92,846 $109,819 $162,751

Net Change in Cash ($4,150) ($8,635) ($8,635) $59,233 $55,033 $16,973 $52,932 $52,932

Cash at End of Period ($4,150) ($12,785) ($21,420) $37,813 $92,846 $109,819 $162,751 $215,683


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2021 2022 2023


Net Profit $157,686 $299,486 $333,156

Depreciation & Amortization $3,806 $5,709 $5,709

Change in Accounts Receivable $0 $0 $0

Change in Inventory

Change in Accounts Payable $0 $0 $0

Change in Income Tax Payable $25,737 ($7,000) $2,107

Change in Sales Tax Payable $31,107 ($5,760) $2,305


Net Cash Flow from Operations $218,336 $292,436 $343,277


Assets Purchased or Sold ($57,090)




Change in Short-Term Debt $10,321 $1,081 $1,194

Change in Long-Term Debt $44,117 ($11,402) ($12,595)

Net Cash from Financing $54,437 ($10,321) ($11,402)

Cash at Beginning of Period $0 $215,683 $497,798

Net Change in Cash $215,683 $282,115 $331,875

Cash at End of Period $215,683 $497,798 $829,673

company confidential trouvaille brewing

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