ODEF Capital Enterprise A Wisconsin Limited Liability Company 2008 Financial Statements.

ODEF Capital Enterprise

A Wisconsin Limited Liability Company

2008 Financial Statements

2 © 2008 ODEF Capital Enterprise

Forward

The following financial statements of ODEF Capital Enterprise LLC (“ODEF”) are for the period ended December 31, 2008.

The financial statements were prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). Significant accounting policies used in the preparation of the financial results can be found in the accompanying notes. The financial results have been summarized in the following statements:

– Balance Sheet– Income Statement– Expense Ledger– Investment Ledger– Statement of Changes in Net Assets– Statement of Ownership

The treatment of items evaluated under GAAP may differ from Federal, State and Local taxing jurisdictions. Since ODEF is not a “taxable entity”, each members’ Form 1065, U.S. Return of Partnership Income, Schedule K-1 may vary. The Schedule K-1 will not be provided to members until after December 31, 2008.

The financial statements have been prepared to provide material direction, knowing that the financial results of ODEF will change throughout the year and should not be relied upon as the tax position for which ODEF will report to the Internal Revenue Service.

The financial statements of ODEF are strictly privileged and confidential. The documents contained herein should not be distributed or shared with any person outside ODEF without the written permission of ODEF’s Board Members.


Balance Sheet

Please Note: Other Asset balance consists of a quarterly charge for Goodwill. This accounts for time equity that we have invested in the partnership. There may be a revision of this amount at a later date.

Side by side quarterly comparison

Q1 2008 Q1 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007AssetsCash 572 11,793 2,538 1,057 32,763 9,327 32,507 7,108Investments 24,500 0 24,500 10,732 1,800 2,500 1,800 6,036Accounts Receivable 6,470 0 17,602 0 10,050 0 11,850 0Allowance for Doubtful Accounts (393) 0 (1,818) 0 (840) 0 (6,143) 0Other Assets 1,000 200 1,200 400 1,400 600 1,600 800Total assets 32,149 11,993 44,022 12,189 45,173 12,427 41,615 13,944

LiabilitiesRedemptions payable 0 0 0 0 0 0 0 0Accounts Payable 0 0 0 0 0 0 0 0Accrued Expenses 0 0 10 0 219 100 0 0Total liabilities 0 0 10 0 219 100 0 0Net assets 32,149 11,993 44,012 12,189 44,954 12,327 41,615 13,944


Income Statement

Year over year comparison

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 TotalRealized and unrealized gainsInvestment Revenue 3,700 0 0 0 3,700 0 0 34 1,374 1,408Unrealized Investment Revenue 500 4,540 0 0 5,040 0 0 0 0 0Fee Revenue 2,270 6,592 7,773 1,820 18,455 0 0 0 0 0 Realized Loss on Fee Revenue 0 0 (7,627) 0 (7,627)

Allowance for doubtful accounts 0 (1,426) 586 (5,303) (6,143) 0 0 0 0 0Net gain on trading activities 6,470 9,706 732 (3,483) 13,426 0 0 34 1,374 1,408

Investment income Interest 39 2 2 2 46 0 25 34 39 97Dividends 1 0 0 0 1 0 8 44 1 52Total investment income 40 2 2 2 47 0 33 77 39 150

Expenses:Operating Expenses 25 10 0 0 35 130 0 0 0 130Research and Development 51 0 369 0 420 0 0 0 0 0Administrative Expenses 36 36 36 39 146 35 36 36 36 142Other Expenses 0 0 0 0 0 42 0 100 0 142

Total expenses 112 46 405 39 601 207 36 136 36 415

Net Trading Income 6,398 9,663 330 (3,519) 12,871 (207) (3) (24) 1,377 1,144

2008 2007


Expense Ledger

1st Quarter 2008 Expense Ledger

Email and Website (11.95) Reoccurring(11.95) Reoccurring(11.95) Reoccurring

R&D Expense (BPB) (9.10) Non-Reoccurring(41.68) Non-Reoccurring

On-Line Tax filing (25.00) Non-Reoccurring

(111.63)

2nd Quarter 2008 Expense LedgerEmail and Website (11.95) Reoccurring

(11.95) Reoccurring(11.95) Reoccurring

Postage Expenses (10.30) Postage Fees

(46.15)

3rd Quarter 2008 Expense LedgerEmail and Website (11.95) Reoccurring


R&D Expense (BPB) (149.85) Non-Reoccurring

R&D Expense (Real Estate) (219.00) Non-Reoccurring

(404.70)

4th Quarter 2008 Expense LedgerEmail and Website (12.95) Reoccurring


(38.85)


Investment Ledger

Below represents our principle and profit invested with Scott since we’ve started conducting business with him. The reconciliation schedule shows the total cash flow from ODEF to Scott. See the notes for further details.

20073rd Quarter

Principle Fee % Fee StatusInvestment 1 2,000 25% 500 Cleared

4th QuarterPrinciple Fee % Fee Status

Investment 2 2,500 15% 375 ClearedInvestment 3 2,500 20% 500 ClearedInvestment 4 2,500 20% 500 Open

20081st Quarter

Principle Fee % Fee StatusInvestment 5 2,500 20% 500 OpenInvestment 6 18,500 20% 3,700 Cleared

2nd QuarterPrinciple Fee % Fee Status

Investment 7 22,700 20% 4,540 Cleared

Principle Payments Amount Date Check #

2,000 9/12/11 133

4,000 10/19/11 13618,500 2/26/12

(22,700) In process

Payments ReceivedAmount Date Purpose

1,875 11/15/11Return Profit4,540 In processReturn Profit3,178 In processReturn Late Fees

Total Invested 1,800 Total Profit 10,615 Returned Profit (9,593) Late Fees 10,828 From Investment scheduleAccounts Receivable 11,850 Allowance (6,143) For remaining two investment

Net Investment 7,508


Changes in Assets

• The Non-GAAP table above represents the value of our company per our financial records. If someone would like to buy into the fund, these are the numbers that would be presented.

• The GAAP financials are for audit and tax purposes only.

Non-GAAP GAAPCapital at Inception 12,000 Capital at Inception 12,000 2007 Earnings 1,144 2007 Earnings 1,144 Goodwill 800 Total Capital 12/31/2007 13,944 Total Capital 12/31/2007 13,144

Return on Capital (2007) 16% Return on Capital (2007) 10%

Subscriptions (1/1/2008) 12,000 Subscriptions (1/1/2008) 12,000 Subscriptions (7/1/2008) 2,000 Subscriptions (7/1/2008) 2,000 CY Earnings 12,871 CY Earnings 12,871Goodwill (2008) 800 Total Capital 41,615 Total Capital 40,015

LTD Return on Capital 60% LTD Return on Capital 54%


Statement of Ownership

• The graph on the left is the ownership percentage incorporating goodwill into our net capital. This would be presented to outside investors if they would like to buy into the group.

• The graph on the right is just pure profit. It represents the actual dollars that would be paid out to each member. The ownership units are determined each time a contribution is made. The number of units purchased depend on the price per unit at the time of the contribution. At 12/31, the PPU was 11.62.

With Goodwill w/o GoodwillAs of December 31, 2008 As of December 31, 2008

Units Price Per Unit Ownership Equity Units Price Per Unit Ownership EquityShawn Pucylowski 186.06 17.79$ 3,310$ Shawn Pucylowski 186.06 17.11$ 3,183$ Micah Vegter 186.06 17.79$ 3,310$ Micah Vegter 186.06 17.11$ 3,183$ Nathan Lampi 186.06 17.79$ 3,310$ Nathan Lampi 186.06 17.11$ 3,183$ Mike Casper 186.06 17.79$ 3,310$ Mike Casper 186.06 17.11$ 3,183$ Mike Pucci 186.06 17.79$ 3,310$ Mike Pucci 186.06 17.11$ 3,183$ Scott Zwettler 186.06 17.79$ 3,310$ Scott Zwettler 186.06 17.11$ 3,183$ Robert Wilson 186.06 17.79$ 3,310$ Robert Wilson 186.06 17.11$ 3,183$ Luke Behnke 186.06 17.79$ 3,310$ Luke Behnke 186.06 17.11$ 3,183$ John Welter 186.06 17.79$ 3,310$ John Welter 186.06 17.11$ 3,183$ Nick Linz 186.06 17.79$ 3,310$ Nick Linz 186.06 17.11$ 3,183$ Louie Agnello 186.06 17.79$ 3,310$ Louie Agnello 186.06 17.11$ 3,183$ Rohit Burju 186.06 17.79$ 3,310$ Rohit Burju 186.06 17.11$ 3,183$ Nick Isabella 53.13 17.79$ 945$ Nick Isabella 53.13 17.11$ 909$ Brian Bye 53.13 17.79$ 945$ Brian Bye 53.13 17.11$ 909$

2,339 17.79$ 41,615$ 2,339 17.11$ 40,015$


Notes to the Financial Statements

1. Basis of Accounting and Presentation

These financial statements have been prepared on the accrual basis of accounting. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

2. Cash and Cash Equivalents

For purposes of the financial statements, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

3. Income Taxes

The Company has been organized and elected to be treated as a partnership. In accordance with the provision of Statement of Financial Standards (SFAS) 109, Accounting for Income Taxes, the Company will not record any current or deferred Federal or State and Local income taxes.

4. Partner Deferred Taxes

A partner's future tax consequences of recovering the financial reporting basis of its investment in the partnership are recognized as deferred tax assets or liabilities. Deferred tax assets and liabilities are recognized for the difference between the financial reporting and tax basis of the investments in the partnership at the investor level

5. Accounts Receivable

The accounts receivable balance consists of investment revenue, fee revenue, and an allowance for doubtful accounts. Investment revenue is received in the normal course of business with Scott Zwettler. Fee revenue is received from any past due investments. It is calculated at a rate of $10 per $2,500 invested per day overdue.


Notes to the Financial Statements

5. Accounts Receivable

The table below shows the fee receivable for each of the open deals as of 12/31/2008;

Through discussions with Scott, we have estimated that deal 4 and deal 5 may be settled. We would receive $.55 on the dollar for this settlement. As we have recognized the income for these deals in previous quarters, we need to reduce the late fee balance appropriately. This will be reflected in the allowance for doubtful accounts. The calculation is shown below.

Investments 4 and 5Principle Fee Late Fee Total Rec.

2,500.00 500.00 4,260.00 7,260.00 2,500.00 500.00 3,390.00 6,390.00

Due to Settlement with Scott, we will sell the note for $.55 on the dollar0.55

Revised Rec. Principle Fee Rev. Late Fees3,993.00 2,500.00 500.00 993.00 3,514.50 2,500.00 500.00 514.50

Current Revised Allowance4,260.00 993.00 3,267.00 3,390.00 514.50 2,875.50

6,142.50

Investment Entered Expected Close Days Late Fee % Fee ReceivableInvestment 4 10/18/11 10/26/11 426 10 100% 4,260 Investment 5 1/6/12 1/23/12 339 10 100% 3,390

Totals 765 20 7,650


Notes the Financial Statements

5. Accounts Receivable cont.A reconciliation of the accounts receivable balance is shown below:

Total Invested 1,800 Total Profit 10,615 Returned Profit (9,593) Late Fees 10,828 Accounts Receivable 11,850 Allowance (6,143)

Net Investment 7,508


THIS PAGE INTENTIONALLY LEFT BLANK

ODEF Capital Enterprise A Wisconsin Limited Liability Company 2008 Financial Statements.

Documents

Transcript of ODEF Capital Enterprise A Wisconsin Limited Liability Company 2008 Financial Statements.