Year 1 Profit & Loss

12-month projected P&L for a hybrid-funded ($120K bootstrap + $1.5M seed),
remote-only, AI-first operating model with 2 FTEs.

Hybrid Funded 51+ Months Runway $184K Exit ARR $0 Founder Salary M1–M6

Prepared March 2026 • Accrual Basis • All figures in USD

01 / 05

Key Metrics

Year 1 at a glance

$89.5K

Total Revenue

($221.2K)

Net Income

81%

Gross Margin

$1.40M

Ending Cash

$184K

M12 ARR Run-Rate

77

Paying Customers M12

$199

Blended ARPU M12

82%

Gross Margin M12

$221K

Cash Consumed

51+ Mo

Runway

Key Assumptions

Assumption	Value	Rationale
Funding	$120K founder capital (M1) + $1.5M seed (M7)	Bootstrap build phase; seed unlocks growth
Founder salary	$0/mo M1–M6; $23K/mo M7+	No draw during bootstrap; market-rate post-seed + 15% burden
First hire	$8K/mo from M4	Full-stack eng; 9 months = $72K + 15% burden
FTE count	1 → 2 (M4)	Founder solo M1–M3; first hire from bootstrapped capital
Product launch	M3 paid beta, M5 GA	2-month build, early-access beta at M3, general availability at M5
Pricing	$150 Starter, $250 Pro, $1,250 Pro+	Deck-implied effective pricing; Pro+ enters M8
Customer ramp	0 → 9 (M3) → 39 (M6) → 77 (M12)	Early-access beta M3; GA at M5; Pro+ enterprise from M8
Marketing	$50K total ($2K/mo from M3, ramp post-seed)	$11K pre-seed (M3–M6); $39K post-seed (M7–M12)
Interest income	~$33.8K (4.5% APY, M7–M12 only)	Interest on post-seed cash balance; $0 during bootstrap phase

02 / 05

Profit & Loss Statement

12-month monthly detail

	M1	M2	M3	M4	M5	M6	M7	M8	M9	M10	M11	M12	FY1
OPERATING METRICS
Paying Customers (cum.)	0	0	9	20	30	39	47	54	60	67	73	77
– Starter	0	0	8	16	24	32	38	43	48	53	58	62
– Pro	0	0	1	4	6	7	9	10	11	12	13	13
– Pro+	0	0	0	0	0	0	0	1	1	2	2	2
FTEs	1	1	1	2	2	2	2	2	2	2	2	2

REVENUE
Starter ($150/mo)	0	0	1,200	2,400	3,600	4,800	5,700	6,450	7,200	7,950	8,700	9,300	57,300
Pro ($250/mo)	0	0	250	1,000	1,500	1,750	2,250	2,500	2,750	3,000	3,250	3,250	21,500
Pro+ ($1,250/mo)	0	0	0	0	0	0	0	1,250	1,250	2,500	2,500	2,500	10,000
Packs & Expansion	0	0	0	0	0	0	25	50	75	100	150	250	650
Total Revenue	0	0	1,450	3,400	5,100	6,550	7,975	10,250	11,275	13,550	14,600	15,300	89,450

COST OF GOODS SOLD
Cloud & Infra	(200)	(200)	(250)	(350)	(400)	(450)	(500)	(600)	(650)	(700)	(800)	(900)	(6,000)
AI Processing (customer)	0	0	(132)	(320)	(480)	(612)	(746)	(919)	(1,012)	(1,185)	(1,278)	(1,330)	(8,014)
Payment Processing (~3%)	0	0	(44)	(102)	(153)	(197)	(239)	(308)	(338)	(407)	(438)	(459)	(2,685)
Total COGS	(200)	(200)	(426)	(772)	(1,033)	(1,259)	(1,485)	(1,827)	(2,000)	(2,292)	(2,516)	(2,689)	(16,699)

Gross Profit	(200)	(200)	1,024	2,628	4,067	5,291	6,490	8,423	9,275	11,258	12,084	12,611	72,751
Gross Margin %	—	—	71%	77%	80%	81%	81%	82%	82%	83%	83%	82%	81%

OPERATING EXPENSES
People
Founder Salary	0	0	0	0	0	0	(23,000)	(23,000)	(23,000)	(23,000)	(23,000)	(23,000)	(138,000)
Founder Taxes & Benefits (15%)	0	0	0	0	0	0	(3,450)	(3,450)	(3,450)	(3,450)	(3,450)	(3,450)	(20,700)
First Hire (eng, M4+)	0	0	0	(8,000)	(8,000)	(8,000)	(8,000)	(8,000)	(8,000)	(8,000)	(8,000)	(8,000)	(72,000)
First Hire Taxes (15%)	0	0	0	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)	(10,800)
Contractors (fractional)	0	0	0	(1,500)	(2,000)	(2,000)	(1,000)	(500)	(500)	(250)	(250)	(250)	(8,250)
Total People	0	0	0	(10,700)	(11,200)	(11,200)	(36,650)	(36,150)	(36,150)	(35,900)	(35,900)	(35,900)	(249,750)

Marketing & Growth
Branding, Content, Paid Social, Events	0	0	(2,000)	(2,500)	(3,000)	(3,500)	(5,000)	(6,000)	(7,000)	(7,000)	(7,000)	(7,000)	(50,000)
Total Marketing	0	0	(2,000)	(2,500)	(3,000)	(3,500)	(5,000)	(6,000)	(7,000)	(7,000)	(7,000)	(7,000)	(50,000)

Tools & Operations
Dev AI, SaaS, Monitoring, Accounting	(800)	(800)	(1,000)	(1,200)	(1,400)	(1,400)	(1,800)	(1,800)	(1,800)	(2,000)	(2,000)	(2,000)	(18,000)
Total Tools & Ops	(800)	(800)	(1,000)	(1,200)	(1,400)	(1,400)	(1,800)	(1,800)	(1,800)	(2,000)	(2,000)	(2,000)	(18,000)

Legal & Compliance
Entity Formation (M1) / Investor Legal (M7)	(3,000)	0	0	0	0	0	(2,500)	0	0	0	0	0	(5,500)
Privacy / ToS / DPA	0	(1,500)	0	0	0	0	0	0	0	0	0	0	(1,500)
D&O Insurance	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(250)	(3,000)
Total Legal & Compliance	(3,250)	(1,750)	(250)	(250)	(250)	(250)	(2,750)	(250)	(250)	(250)	(250)	(250)	(10,000)

Total Operating Expenses	(4,050)	(2,550)	(3,250)	(14,650)	(15,850)	(16,350)	(46,200)	(44,200)	(45,200)	(45,150)	(45,150)	(45,150)	(327,750)

EBITDA	(4,250)	(2,750)	(2,226)	(12,022)	(11,783)	(11,059)	(39,710)	(35,777)	(35,925)	(33,892)	(33,066)	(32,539)	(254,999)
EBITDA Margin %	—	—	-154%	-354%	-231%	-169%	-498%	-349%	-319%	-250%	-226%	-213%	-285%

Depreciation & Amortization	0	0	0	0	0	0	0	0	0	0	0	0	0
Interest Income	0	0	0	0	0	0	5,900	5,800	5,700	5,550	5,450	5,350	33,750
Taxes	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Income	(4,250)	(2,750)	(2,226)	(12,022)	(11,783)	(11,059)	(33,810)	(29,977)	(30,225)	(28,342)	(27,616)	(27,189)	(221,249)

Cumulative Net Income	(4,250)	(7,000)	(9,226)	(21,248)	(33,031)	(44,090)	(77,900)	(107,877)	(138,102)	(166,444)	(194,060)	(221,249)
Cash Balance	115,750	113,000	110,774	98,752	86,969	75,910	1,542,100	1,512,123	1,481,898	1,453,556	1,425,940	1,398,751	1,398,751

03 / 05

Annual Summary

FY1 P&L summary

Total Revenue	$89,450
Total COGS	($16,699)
Gross Profit	$72,751
Gross Margin	81.3%

People	($249,750)
Marketing & Growth	($50,000)
Tools & Operations	($18,000)
Legal & Compliance	($10,000)
Total OpEx	($327,750)

EBITDA	($254,999)
EBITDA Margin	-285%

D&A	$0
Interest	$33,750
Taxes	$0
Net Income	($221,249)

Expense Composition

People $249,750 (76%)

Marketing & Growth $50,000 (15%)

Tools & Ops $18,000 (5%)

Legal & Compliance $10,000 (3%)

COGS $16,699 (5%)

Hybrid model preserves $158.7K in founder salary. Founder’s $0 salary during bootstrap phase (M1–M6) keeps total people costs to ~$250K. The company ends Y1 with $1.40M cash — 86% of total capital preserved.

Near-exact deck alignment: The investor deck projects ~$90K collected / $184K ARR / –$255K EBITDA / 81% gross margin. This P&L delivers $89.5K collected / $184K ARR / –$255K EBITDA / 81.3% gross margin. Numbers align closely.

04 / 05

CFO Commentary

Key insights & risk factors

Strengths

86% of capital preserved. Ending cash of $1.40M from $1.62M total capital raised. The founder’s $0 salary during M1–M6 saves $158.7K in fully loaded compensation, proving the ability to build capital-efficiently before deploying seed dollars.
Revenue starts at M3. Early-access paid beta launches at M3 with 9 customers (8 Starter + 1 Pro design partner), validating willingness to pay during the build phase — 2 months before GA at M5.
81% gross margins are SaaS-healthy. AI processing ($8K) is the largest COGS component, but tiered per-customer pricing keeps margins strong. Cloud costs spread further as the customer base grows.
Bootstrapped phase survives with $76K buffer. The $120K founder capital drops to $75,910 at M6 before seed arrives at M7 — a comfortable buffer that proves the lean model works.
Near-exact alignment with investor deck. $184K ARR, ~$90K collected, ~–$255K EBITDA, 81% gross margin, 77 customers, 2 FTEs. Every key metric aligns closely with the deck.

Risks & Watchpoints

M7 burn shock. Monthly burn jumps from $11.1K (M6) to $33.8K (M7) as founder salary and investor legal activate simultaneously. Well-funded by the $1.5M seed, but the steepest transition in the model.
Pro+ is nascent. Only 2 Pro+ customers by M12, contributing $2,500/mo (16% of MRR). The enterprise motion is the key growth lever for Year 2 but remains unproven at scale.
Small customer base. 77 paying customers at M12 means high concentration risk. Loss of a few Pro+ or Pro customers would materially impact MRR. Diversification is a Year 2 priority.
$184K ARR is early-stage. While the model is capital-efficient, $184K ARR at end of Year 1 is below typical Series A thresholds ($500K–$1M). Year 2 growth trajectory must accelerate significantly.
Interest income dependency. $33.8K in interest income reduces net loss by 13%. This is non-operational income and will decline as capital is deployed. Not a sustainable contributor.

Path to Year 2

The company enters Year 2 with $1.40M cash, $184K ARR, 51+ months runway, and 2 FTEs. The deck’s Year 2 target is $1.68M ARR and 4 FTEs — requiring ~9x ARR growth and 2 additional hires. The balance sheet fully supports this acceleration. Key levers: expand the Pro+ enterprise pipeline, add a growth/solutions hire (M13–M14), and scale marketing from $7K to $15–20K/mo. Profitability is a Year 3 milestone; Year 2 is about proving the growth engine.

05 / 05