Global River EducationFinancial Proposal
Who are we?Global River Education is the school for students who recognize injustice in the world that gives them the tools they’ll need to affect change because, unlike
most progressive education, we approach learning from a holistic 'Earth
Community' worldview and integrate the five pillars of: critical thinking, systems thinking, sustainability,
entrepreneurship, and whole-person focus to provide our students with the
skills necessary to become the revolutionary leaders of tomorrow.
Is there a market demand?
• 5% of public high school market in 2007• $5,983,200,000!
How do we manage?John Kennedy, MBA• Co-Founder, CEO, CCO• +10 years diverse experience• Teaching and Curriculum
Design
Kathy Franks• Co-Founder, VP Operations• +40 years diverse experience• Educational Solutions
TBD:CFOVP Operations (#2)Director of MarketingOffice Manager
Who else is there?KIPP*NFTEPublicPrivateWaldorfOne Planet
Education Models
Studentfeedbackevolution
SustainabilityGlobal
Literacy
Low Income
Entrepreneurs
Whole PersonInspiringCreative
StudentTeaching
ExperientialLearning
Global River EducationKIPPNFTEPublicPrivateWaldorfOne Planet
Who will we serve?
• Global River Education will target underserved, inner-city public school districts
• Free, open-enrollment, college-prep educational experience for the students and their communities
Any key partners?
Students!!
GreenMBAUniversity of
Phoenix
Global River Education
How fine are the Financials?
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013Revenue $3,000,000 $5,400,000 $10,800,000 $10,800,000 $16,200,000Expense $3,190,270 $4,272,158 $8,314,971 $8,957,837 $13,821,037
Net Income ($190,270) $1,127,843 $2,485,029 $1,842,163 $2,378,963Headcount 34 44 82 85 126
Breaking even at month 13.
Forecasted Revenue & Income
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22
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FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
$MM
Revenue Net Income
Forecasted Revenue & Income
3
5
11 11
16
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22
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(2)
2
4
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18
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
$MM
Revenue Net Income
Capital Injection
Break even point
We need capital.
• $500,000 - preferred equity• Needed to stay at cash flow positive when cushion
gets smallest in year 1 - ($102,000)• Foundations, Corporations, or Angel Investors
interested in the future of education
How are the securities structured?
Preferred stock – Paid in Kind optionAnit-diluation • non-priced based – pre-emptive rights for investor and venture, which
terminate at QPO• price based – weighted average
Liquidation – simple conventional preference (single-dip = original purchase price + dividends)
Dividends - cumulative annual dividends at 7% of par
Redemption• investor right with: 2/3 vote of pref holders, 1/3 @year 6, 1/3 @ year 7,
1/3 @ year 8; price • original purchase price plus dividends
Control• voting – can elect one representative to act as a board observer (no voting
rights)• protective provision – 2/3 majority of preferred necessary for certain
actions
Any Options?
• American-style call option
• right to purchase more stock at original purchase price for 2 years (capped at 2x initial)
• Double ownership, if desired (20%)
Explain the security offering…
• Shares outstanding = 2,000,000
• Price = $2.28/share• Shares investor would own = 219,313• Total diluted shares = 2,219,313
Pre-money value $4,559,697Investor Investment $500,000Post-money valuation $5,059,697% ownership to investor 10%
What’s the deal?• $500,000 - preferred equity• foundations, corporations, or angel
investors interested in the future of education
• price = $2.28/share• shares investor would own = 219,313• 10% ownership (20% option)• cumulative annual dividends at 7% of par• weighted average anti-dilution
Global River EducationThanks for your time