CAPITALIZATION TABLE GENERATOR/MG

File = document.xlsWorksheet = Introduction

1 21:31:33 04/17/2023Copyright 2001, Michael Gonnerman, Inc.

INTRODUCTION

Use this workbook to calculate your company's ownership after issuing stock, or options, to:FoundersNew hiresBoards of Directors and AdvisorsSeed investorsTwo subsequent rounds of investors (venture capital?)The public, in your IPO

Just fill in the highlighted assumptions on the 'Assumptions' worksheet .

The workbook includes 4 worksheetsIntroductionAssumptionsSummary ResultsCapitalization Table

CAPITALIZATION TABLE GENERATOR/MG

File = document.xlsWorksheet = Assumptions

2 21:31:33 04/17/2023Copyright 2001, Michael Gonnerman, Inc.

ASSUMPTIONS

Assumption fieldsUser to complete Calculated

initial equity decisionsnumber of shares issued founder 1,000,000total price paid by founder $ 10,000 price per share paid by founder $ 0.010 how big is the option pool for the first hires? 15.0%price per share paid by initial hires $ 0.50 how big is the option pool for directors and advisors? 8.0%price per share paid by directors and advisors $ 1.00

re the initial financing (seed round)what is the value of the company before the investment? $ 4,000,000 how much is raised in this round? $ 1,000,000 20.0%

re the first round of venture financinghow big is the option pool set up for hires after the first venture financing? 5.0%what is the value of the company before the investment? $ 6,000,000 how much is raised in this round? $ 5,000,000 45.5%

re the second round of venture financinghow big is the option pool set up for hires after the second venture financing? 4.0%what is the value of the company before the investment? $ 15,000,000 how much is raised in this round? $ 10,000,000 40.0%

re the initial public offering (ipo)what is the target offering price 12what is the value of the company before the ipo $ 300,000,000 how much is raised in the ipo $ 75,000,000 20.0%

CAPITALIZATION TABLE GENERATOR/MG

File = document.xlsWorksheet = Summary Results

3 21:31:33 04/17/2023Copyright 2001, Michael Gonnerman, Inc.

SUMMARY RESULTS

Total Amount of Times value original investment

post IPO investment earned

founder $ 52,072,669 $ 10,000 5,207initial hires $ 9,189,295 $ 88,235 104directors/advisors $ 5,327,127 $ 102,302 52seed investors $ 16,647,273 $ 1,000,000 17round 1 employees $ 8,400,000 $ 550,000 15round 1 investors $ 76,363,636 $ 5,000,000 15round 2 employees $ 12,000,000 $ 1,000,000 12round 2 investors $ 120,000,000 $ 10,000,000 12public $ 75,000,000 $ 75,000,000 1

$ 375,000,000 $ 92,750,537

CAPITALIZATION TABLE GENERATOR/MG

File = document.xlsWorksheet = Capitalization Table

4 21:31:33 04/17/2023Copyright 2001, Michael Gonnerman, Inc.

founder options -- initial hires options -- dir+adv seed capital round 1 round 2 pre ipo share adj post ipo

founder 1,000,000 100% 1,000,000 85% 1,000,000 78% 1,000,000 63% 1,000,000 31.0% 1,000,000 17.4% 4,339,389 17.4% 4,339,389 13.9% founderoption pool -- initial hires 0% 176,471 15% 176,471 14% 176,471 11% 176,471 5.5% 176,471 3.1% 765,775 3.1% 765,775 2.5% initial hiresoption pool -- directors/advisors 0% 0% 102,302 8% 102,302 6% 102,302 3.2% 102,302 1.8% 443,927 1.8% 443,927 1.4% directors/advisorsoption pool -- round 1 pool 0% 0% 0% 0% 161,313 5.0% 161,313 2.8% 700,000 2.8% 700,000 2.2% round 1 employeesoption pool -- round 2 pool 0% 0% 0% 0% 0.0% 230,447 4.0% 1,000,000 4.0% 1,000,000 3.2% round 2 employeesseed capital 0% 0% 0% 319,693 20% 319,693 9.9% 319,693 5.5% 1,387,273 5.5% 1,387,273 4.4% seed investorsround 1 0% 0% 0% 0% 1,466,482 45.5% 1,466,482 25.5% 6,363,636 25.5% 6,363,636 20.4% round 1 investorsround 2 0% 0% 0% 0% 0.0% 2,304,472 40.0% 10,000,000 40.0% 10,000,000 32.0% round 2 investorsipo 0% 0% 0% 0% 0.0% 0.0% 0.0% 6,250,000 20.0% public

1,000,000 100% 1,176,471 100% 1,278,772 100% 1,598,465 100% 3,226,261 100.0% 5,761,180 100.0% 25,000,000 100.0% 31,250,000 100.0%

Valuation post money 10,000 588,235 1,278,772 5,000,000 11,000,000 25,000,000 300,000,000Value/price per share 0.01 0.500 1.000 3.128 3.410 4.339 12.000Total shares 1,000,000 1,176,471 1,278,772 1,598,465 3,226,261 5,761,180 25,000,000

Shares for option pool + new investor 1,627,795 2,534,919% for option pool 9.91% 9.09%% for investors 90.09% 90.91%