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

3

5

11 11

16

()

1

22

2

(2)

2

4

6

8

10

12

14

16

18

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

$MM

Revenue Net Income

Forecasted Revenue & Income

3

5

11 11

16

()

1

22

2

(2)

2

4

6

8

10

12

14

16

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