iT
INeedTrust

Year 1 Balance Sheet

Projected balance sheet as of Month 12, End of Year 1.
Hybrid-funded ($120K founder capital + $1.5M seed), remote-only, AI-first with 2 FTEs.

Accrual Basis No Debt Hybrid Funded 51+ Months Runway
$1,403,751
Total Assets
=
$12,000
Total Liabilities
+
$1,391,751
Stockholders' Equity

Prepared March 2026 • Accrual Basis • Delaware C-Corp • $120K Founder Capital + $1.5M Seed • All figures in USD

01 / 05

Total Assets — $1,403,751

Line ItemAmountNotes
CURRENT ASSETS
Cash & Cash Equivalents $1,398,751 Founder capital ($120K) + seed ($1.5M) minus cumulative net loss ($221.2K)
Accounts Receivable $2,500 ~1 Pro+ customer on net-30 invoicing; Starter/Pro are credit-card prepaid
Prepaid Expenses $2,500 Annual D&O insurance premium and SaaS tool subscriptions
Total Current Assets $1,403,751
NON-CURRENT ASSETS
Property & Equipment $0 Fully remote; no office, no hardware on balance sheet
Intangible Assets (Software) $0 All development expensed per ASC 350 (early stage)
Security Deposits $0 No office lease
Total Non-Current Assets $0
TOTAL ASSETS $1,403,751

Asset Composition

Cash & Equivalents $1,398,751 (99.6%)
Accounts Receivable $2,500 (0.2%)
Prepaid Expenses $2,500 (0.2%)

99.6% of assets are liquid cash. Zero fixed assets, zero capitalized software, zero deposits. The hybrid funding model preserved 86% of total capital ($1.62M raised, $1.40M remaining) — exceptional for a startup achieving $184K exit ARR.

Credit-card-first billing keeps AR minimal. Only invoiced Pro+ enterprise customers create receivables. At scale this model means near-zero DSO (Days Sales Outstanding).

02 / 05

Liabilities & Equity

Line ItemAmountNotes
CURRENT LIABILITIES
Accounts Payable $2,500 Outstanding vendor invoices (cloud, tools)
Accrued Expenses $5,500 Accrued payroll & taxes for 2 FTEs (partial month timing)
Deferred Revenue $3,000 ~1 Pro+ annual contract prepaid; prorated unearned (~2.4 months)
Credit Card Payable $0
Sales Tax Payable $1,000 SaaS sales tax collected, not yet remitted (multi-jurisdiction)
Total Current Liabilities $12,000
NON-CURRENT LIABILITIES
Long-Term Debt $0 No debt; funded via priced equity
Convertible Notes $0 No convertible notes issued
Total Non-Current Liabilities $0
TOTAL LIABILITIES $12,000
Line ItemAmountNotes
STOCKHOLDERS' EQUITY
Common Stock $1,000 Par value; 10M authorized shares, founder shares
Additional Paid-In Capital $1,619,000 Founder capital ($119K at M1) + seed ($1.5M at M7); priced equity
Stock-Based Compensation $0 Options granted to first hire, no expense yet (cliff not met in Y1)
Retained Earnings (Deficit) ($228,249) P&L net loss ($221,249) + $7,000 working capital / BS adjustments
TOTAL EQUITY $1,391,751
APIC (Founder + Seed Capital) $1,619,000
Accumulated Deficit ($228,249)

Only 14% of invested capital consumed. The $228.2K accumulated deficit is normal for a seed-stage startup. The hybrid model’s bootstrapped phase saved $158.7K in founder salary, leaving $1.392M in book equity — a strong foundation for Series A diligence.

03 / 05

Key Ratios & Reconciliation

117.0x
Current Ratio
Heavily over-capitalized
116.6x
Quick Ratio
Highly liquid
0.0x
Debt-to-Equity
Zero debt
1.20x
Burn Multiple
Strong for seed (< 1.5x)

Financial Ratios Detail

RatioValueAssessment
Current Ratio 117.0x Extremely strong; over-capitalized post-seed (expected)
Quick Ratio 116.6x Highly liquid; cash dominates balance sheet
Debt-to-Equity 0.0x No debt; funded entirely with equity
Cash Runway ~51 mo At M12 net burn of $27.2K/mo; 4+ years of runway
Burn Multiple (Net Burn / Net New ARR) 1.20x Strong for seed; < 1.5x is top-quartile SaaS
Book Value per Share ~$0.14 Relevant for 409A option strike pricing

Cash Reconciliation

Founder Capital (M1) $120,000
Seed Funding (M7) $1,500,000
Total Capital In $1,620,000
Less: Net Loss (from P&L) ($221,249)
Ending Cash $1,398,751

Balance Check

$1,403,751
Assets
=
$12,000
Liabilities
+
$1,391,751
Equity

Assets = Liabilities + Equity ✓

04 / 05

Strengths, risks & Year 2 outlook

Strengths

  • $1.40M cash from $1.62M total capital. Only 14% of capital consumed in Year 1 — extraordinary efficiency for a startup achieving $184K exit ARR. The hybrid model proved the founder can build without capital, then deploy seed dollars efficiently.
  • No debt. Pristine balance sheet. The seed round was priced equity (not convertible), so no overhang instruments or conversion triggers. Clean for Series A diligence.
  • Deferred revenue is a positive signal. $3K means a Pro+ enterprise customer prepays annually. Expect this to grow significantly in Year 2 as the enterprise motion scales.
  • 1.20x burn multiple is strong for seed stage. For every $1 burned, the company generated $0.83 in exit ARR. Top-quartile efficiency — most seed-stage SaaS companies range 2–4x.

Capital efficiency: Consumed only 14% of total capital ($221K of $1.62M) while achieving $184K exit ARR. The bootstrapped M1–M6 phase proved the founder can build without capital, then deploy seed dollars efficiently at scale.

Risks & Watchpoints

  • Accumulated deficit of ($228.2K). Normal for seed-stage. The deficit is far smaller than total capital raised ($1.62M) — 86% of invested capital preserved. Expected by investors and acquirers.
  • No capitalized software. All dev costs expensed. Conservative. An auditor may later recommend capitalizing $75–150K per ASC 350-40 to increase assets and reduce the deficit.
  • SBC is a hidden future liability. First hire likely has options from 10–15% pool. No Y1 expense (cliff). Becomes $20–40K/yr in Y2 at $6–10M implied valuation.
  • Sales tax complexity grows. 77 customers across multiple states. Recommend Avalara or TaxJar in Year 2. Budget $3–5K/yr.
  • D&O coverage review needed. $250/mo policy appropriate for seed stage; review limits before Series A. Budget $400–600/mo in Y2.

Year 2 Outlook

If M12 trajectory holds (77 customers, $15.3K MRR, 82% gross margin), the company enters Year 2 with:

$1.40M Cash $184K ARR 51+ Mo Runway No Debt Full Optionality

Strong position for continued growth. The deck’s Y2 target of $1.68M ARR requires significant acceleration — achievable with seed capital deployed into marketing and team expansion. The 51-month runway supports aggressive investment without additional capital, though a Series A on favorable terms may be strategic to accelerate the enterprise motion.

05 / 05