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Published by jhatzigrigoriou, 2019-07-20 21:20:03

Oasis_Day_Spa_-_Report

Oasis_Day_Spa_-_Report

Confidential Information
Memorandum for

Contact:

Protegrity Advisors, LLC

Bruce Newman, President
[email protected]
(631) 285-3176

Eric Langmack, Director
[email protected]
(631) 388-2989

December 2017

Strictly Private and Confidential

Disclaimer

This Confidential Information Memorandum (the “Memorandum”) has other material relating to the Company which the recipient may have received
been prepared by Protegrity Advisors, LLC (“Protegrity Advisors”) solely from Protegrity Advisors or the Company; and (3) any proposed actions
for information purposes from materials supplied to Protegrity Advisors by by the recipient which are inconsistent in any manner with the foregoing
Oasis Day Spa (“Oasis” “Oasis Day Spa” or the “Company”), and is being agreements will require the prior written consent of Protegrity Advisors.
furnished through Protegrity Advisors as the Company’s exclusive agent. It
is to be used solely by interested parties in considering an investment in the The Company reserves the right to negotiate with one or more interested
Company. parties at any time and to enter into a definitive agreement without prior
notice to the recipient or other interested parties.
This Memorandum has been prepared to assist interested parties in making
their own evaluations of the Company and does not purport to contain all of The Company also reserves the right to terminate, at any time, the solicitation
the information that an interested party may desire. In all cases, interested of indications of interest for the Company or the further participation in the
parties shall conduct their own investigation and analysis of the Company investigation and proposal process by any party. Finally, the Company
and not rely on the data set forth in this Memorandum. Protegrity Advisors reserves the right to modify, at any time, any procedures relating to such
and the Company make no representation or warranty as to the accuracy process without assigning any reason therefore. The Company intends
or completeness of this Memorandum and shall have no liability for any to conduct business in the ordinary manner during the evaluation period;
representations (expressed or implied) contained in, or for any omissions however, the Company reserves the right to take any action, whether in or
from, the Memorandum or any written or oral communications transmitted to out of the ordinary course of business, including, but not limited to the sale of
the recipient in the course of recipient’s evaluation of the Company. any property, which it deems necessary, prudent or desirable in the conduct
of such business.
This Memorandum includes certain statements, estimates and projections
with respect to the historical and future performance of the Company. Such The recipient will not reveal, in whole or in part, any portion of this
statements, estimates and projections reflect various assumptions by the Memorandum to any person other than a limited number of recipient’s
management of the Company, which assumptions may or may not prove employees or representatives who have a clear need to know, and
to be correct. No representations are made as to the accuracy of such agrees to return all information, including this Memorandum, provided by
statements, estimates or projections. Protegrity Advisors or the Company, as requested or if recipient does
not wish to pursue this matter further.
By accepting this Memorandum, the recipient acknowledges and agrees that
all of the information contained herein is subject to a confidentiality agreement THIS MEMORANDUM IS FOR INFORMATION
previously executed by the recipient. Without limiting the generality of the PURPOSES ONLY AND DOES NOT CONSTITUTE
foregoing: (1) the recipient will not reproduce this Memorandum, in whole or AN OFFER TO SELL OR A SOLICITATION OF
in part; (2) if the recipient does not wish to pursue this matter, it will return this AN OFFER TO BUY ANY SECURITY
Memorandum to Protegrity Advisors as soon as practicable, together with any

Table of contents

Executive Summary 4-7 Industry Overview 19-24

Company Highlights 4 Health and Wellness Spa Industry 19
Investment Highlights 5 Industry Segments 20
Financial Summary 6 Key External Drivers 21
Transaction Details 7 Industry Performance 22
Industry Outlook 23
Business Overview 8-18 Key Competitors 24

Introduction 8 Financials 25-28
Company Ownership and Structure 9
Company History 10 Adjusted EBITDA 25
Products and Services 11 Adjusted Income Statements 26
Operational Details 12 Balance Sheets 27-28
Clients 13
Sales and Marketing 14
Organizational Structure 15
Management Team & Employees 16
Summary of Management Positions 17
Future Plans and Strategy 18

Executive Summary

Company Highlights

Oasis Day Spa is a New York based day spa founded by The Company has a diverse client base with a database in
Bruce Schoenberg in 1998. The Company offers a wide excess of 300,000 individuals that generate approximately
range of day spa services including massages, skincare, 50,000 annual transactions. Clients include individuals,
body scrubs, wraps and tanning, intense pulsed light (IPL) families, celebrities, as well as executives and employees
treatments, waxing and hair. from a “who’s-who” of major New York area corporations,
including Citigroup, Credit Suisse, Goldman Sachs,
The Company has established exceptionally strong brand Google, HBO, IBM, Morgan Stanley, Merrill Lynch, Polo
awareness within the New York market by consistently Ralph Lauren, The Wall Street Journal, Vogue, and
providing a high level of service to its client base. Oasis Day many others.
Spa is regularly profiled in many high-profile publications,
including: American Spa Magazine; Westchester Magazine; Oasis currently operates out of two locations – one in
New York Magazine; DAYSPA Magazine; and TimeOut New New York City and one in Dobbs Ferry, Westchester
York. County. The Company believes its business can be
expanded to other nearby markets including New
Company at a Glance Jersey, Northern New York, Connecticut and Long
Island.

Entity Type S- Subchapter
Founded 1998
Headquarters New York City, NY
Ownership Bruce Schoenberg
Business Day Spa Services

Industry Health and Wellness Spa Industry
No. of Employees 115
Website www.oasisdayspanyc.com

Executive Summary

Investment Highlights

Affordable Luxury

Oasis has positioned itself as a provider of luxurious services at an affordable price, i.e.,
“Affordable Luxury”.

Strong Financials

Oasis has demonstrated strong financial growth over the past several years primarily due to an
increase in demand for spa services by corporates in the busy New York market. The Company’s
revenue increased at a CAGR of 6.7% over the last two years. Furthermore, profit margins have
increased from 9.46% in 2014 to 15.08% in 2016.

Large Client Base

The Company has cultivated a loyal following by consistently delivering high quality services that
have resulted in a client base totaling over 300,000 individuals.

Distinguished Reputation

The Company is widely recognized as a provider of quality services with regular references in
various publications including ‘Favorite Day Spa’ — American Spa Magazine, People’s Choice
Awards, ‘Best of New York’ — New York Magazine, ‘Diamond Award Winner’ — Day Spa
Magazine.

Attractive Locations

Oasis Day Spa operates from two highly desirable locations in New York, which caters to almost
8.9% of the total US customers availing spa services.

Executive Summary

Financial Summary

$ 4,708,038 $ 4,720,672

$ 4,066,042

Revenue $ 4,114,320 $ 4,070,001

Operating Expenses $ 3,597,002

Adjusted EBITDA $ 469,040 $ 593,719 $ 650,670
%Revenue 11,54% 12,61% 13,78%

2014 2015 2016

Executive Summary

Transaction Details

Oasis Day Spa is an established player in the United
States health and wellness spa industry servicing
one of the most active markets in the country. The
principal shareholder is seeking to exit the business,
having run the Company successfully for nineteen
years. Protegrity Advisors, LLC has been retained to
manage the process. Interested parties will have the
opportunity to submit an indication of interest for the
purchase of the Company according to a specific
form to be provided by Protegrity Advisors.

Business Overview

Introduction

Oasis Day Spa was founded in 1998 by Bruce Schoenberg. Since its inception,
Oasis has provided a variety of services for improving the health, wellness
and beauty of its clients, including massage therapy, facials, prenatal
massage, skincare, body scrubs, hydro treatments, waxing and spray
tanning. The Company also has an offsite pop-up spa service that
provides on-site massages at trade shows, events, private parties
and other business gatherings in New York and other major U.S.
cities. Revenue from pop-up spas, which is not reflected in the
Company’s financial statements, is not significant; however the
service expands the Oasis brand and serves as a driver for
new clients.

The Company opened its flagship location at One Park
Avenue, New York City in 2001. A second location
was opened in Dobbs Ferry, Westchester County,
New York in 2008.

Business Overview

Company Ownership and Structure

The founder of the Oasis Day Spa, Bruce Schoenberg, is the holder
of 100% of the Company’s shares.

Bruce Schoenberg is the sole owner of Oasis Day Spa
where he has served as Chief Executive Officer since
the Company’s inception in 1998. Mr. Schoenberg
has significant experience in the massage, beauty and
wellness industry.

Prior to starting Oasis in 1998, Mr. Schoenberg
arranged pop-up spa massage therapy appointments
for an exclusive client base of corporate executives and
their employees and clients. The white-glove service,
which provided therapy sessions at a client’s place
of business or home, served as the basis for creating
Oasis Day Spa brick and mortar locations.

Business Overview

Company History

Notable events in the history of Oasis Day Care are represented in the following timeline:

Founded on Named “Best Day Opened a Original Union Named “Best Introduced Introduced Elemis
East 16th Street, Spa in NYC” by location at the Square location Day Spa in Eminence organic skincare line with
Affinia Dumont hotel
Union Square, CitySearch – lease ended destroyed by Westchester” skincare line cutting edge
New York City building fire. Elected by Westchester biotechnology
Opened flagship in 2013 Named “Best
Occupied a 7-room, location at One to not renew the Magazine Day Spa in Named “Best
2,600 square Park Avenue, the lease Day Spa in
feet facility that largest day spa in Westchester”
terms of treatment by Westchester Westchester”
offered massage, rooms (19) in NYC by Westchester
skin care and one Magazine
at the time Magazine
of the only
hydro rooms with

Vichy shower

2001 2003 2006 2009 2013 2016
2010
1998 2017

1999 2002 2004 2008 2014

Named “Best New Named “NYC Opened location Opened location Named “Favorite Day Completed major Named one of “NYC
Day Spa in NYC” Small Business inside JetBlue in Dobbs Ferry Spa” in the USA by renovation at New Best Day Spas” by
of the Year” by Terminal 6 – Westchester, which the readers of Spa York City location Time Out New York
by New York at the time was the
Magazine Crain’s New declined proposed largest spa in the magazine Named “Best Day Named one of “NYC
York move to new Spa in Westchester” Best Day Spas” by
county Named “Best Day
Terminal 5 location Spa in Westchester” by Westchester Gothamist
in 2008 Magazine
by Westchester Named “Best Day Spa
Magazine in Westchester” by

Westchester Magazine
for 8 consecutive
years

Business Overview Skincare Services

Products and Services Skincare services include a number of Facial treatments, including:
the Oasis Signature; Eminence Organic Customized; GM Collin Phyto
Massage Services Stem Cell; GM Collin Age-Defying Antioxidant; the “Classic” Men’s;
and Elemis Biotech Advanced Technology. Skincare services can
Full body massages, which are typically performed in also include facial add-ons, microdermabrasion, micro-current, peels
30, 60 and 90 minutes sessions, are provided using and boosters.
a wide variety of massage techniques, including:
Muscle Meltdown, Swedish; Deep Tissue; Sports;; Intense Pulse Light (IPL)
Aromatherapy; Lava Stone; Side-by-side; Clinical;
Prenatal or Postnatal; and Reflexology. IPL treatments include hair removal, photo-rejuvenation, spider vein
removal/vascular lesions and acne applications. The latest IPL tech-
Body Scrubs, Wraps and Tanning nology can also be used in the treatment of several conditions such
as rosacea, facial thread and spider veins, cherry angiomas, and port
All full body scrubs and wraps are performed wine stains. IPL services are currently available at the Westchester
using an invigorating multi-showerhead European location and will be offered at a later date in New York City.
Vichy Shower. Clients can choose from a variety of
specialized treatments, including: Lavender Sea Salt; Spa Packages
Citrus Brown Sugar; Oasis Purity Wrap; and a Body
Scrub & Wrap Combo. A wide range of spa packages are available to Oasis clients, including:
Total Body Wellness; Picture Perfect; Oasis Express Package; Couples
Waxing Duet Package; Oasis Signature Package; The Bridal Package; The
Oasis Retreat; Mom-to-be Package; The Escape Package and Men’s
Oasis Day Spa’s skin care specialists offer a choice of Getaway.
two different wax applications. Both utilize extremely
soft wax that is gentle, even for the most sensitive
skin. Waxing services include: eyebrows (or tweeze);
face; full arms; full legs; back; chest; swim line bikini;
Brazilian; V-Dazzle and Crystal Applique.

Business Overview

Operational Details

Business Flow –
Onsite Service

Call

1. Make an Location 2. Visit one of two locations
appointment
Oasis Day Spa
Client 3. Relaxation Lounge 4. Billing

Website Business Flow – Facility Details
Onsite Service:
Visit The Company has two long term triple-net [confirm]
The Company also rental leases for its New York City and Dobbs ferry
Business Flow: provides on-site locations as further noted below.
call services in the
1. Clients make an appointment through one of three New York area. The One Park Avenue, NYC
methods: by booking through the Company’s website, by operational flow is • Total Spa Area 7,400 Sq. Ft
visiting the day spa, or by calling. A major credit card is similar, except services • Basement Space 400 Sq. Ft
required to hold advanced reservations. are provided at the • Lease 10 Years (2014-2024)
client’s residence or
2. Clients then visit Oasis Day Spa at the time of place of business. 50 Livingstone Avenue, Dobbs Ferry, NY
appointment. • Total Spa Area 6,200 Sq. Ft
• Rooftop Garden 2,000 Sq. Ft
3. Clients are given spa robe and sandals, taken to the locker • Laundry and Storage 1,000 Sq. Ft
room, next to the relaxation lounge where they are picked-up • Lease 20 years (2009-2029)
by their therapist, briefed about the massage/skin treatment
process. Therapists also discuss any special client needs.

4. The client is billed after services are completed.

Business Overview

Clients

Oasis Day Spa clients include both women and men; however, women represent about 80% of the Company’s overall treatment transactions.
Clients include referrals from numerous large corporations.

Business Overview

Sales and Marketing

Sales Revenue Breakup Marketing
by Services
The Company’s sales territory is primarily within Oasis Day Spa is focused on providing superior
the New York region, however many clients The Company generates most of its service and building long-term relationships
from other states and countries visit Oasis while revenue from massage services, which with its clients. Due to its emphasis on client
traveling to New York metropolitan area. New York represents approximately 60% of total satisfaction, most new clients come from referrals
is a top travel destination and a major business revenue. Skincare services represent to Oasis. Other methods of client acquisition
hub, which provides enormous additional growth the second largest category of revenue include web-based spa booking services
opportunities for Oasis. In addition to spa related at approximately 22% of total revenue. and general marketing activities such as print
services, Oasis offers a line of third party skin Other revenue categories include advertisements.
care and other products, including brands such hair services; hydro services, IPL
as Eminence, Elemis, GM Collin and Babor. services and miscellaneous services Word of Mouth
contributing 1%, 10%, 0.7%, and 0.2%
The Company has a client database of about respectively. The Company’s employees meticulously
300,000 individuals and on average conducts work towards delivering the highest degree
50,000 transactions annually. The average $2.779.578 of client service. As a result, referrals generate
transaction value is $150, which is slightly approximately TBD% of all new clients each year.
higher than area competitors. The Company $1.007.804
is exceptionally busy during the Christmas and Spa Booking
New Year holidays. $199.514
Web-based spa booking services such as Spa
The New York City location accounts for 55% of $30.864 Finder (www.spafinder.com) and Web Openings
the Company’s revenue with the balance coming (www.webopenings.com) generate approximately
from the Dobbs Ferry location. $228.817 TBD% of all new clients each year.

Revenue Breakup by Territory $51.623 General Marketing

NYC 55% Dobbs Ferry 45% $303.421 General marketing strategies to attract and retain
new clients generate approximately xx% of all
$40.268 new clients each year.

$8.501

Business Overview Dobbs Ferry

Organizational Structure Bruce

New York City Owner- CEO

Bruce

Owner- CEO

Christie Waiman Lillian Laura Christie Waiman Lauren Lillian Laura

Skin Care Dir. Bookkeeper General Manager Massage Dir. Skin Care Dir. Bookkeeper General Manager Retail Manager Massage Dir.

10 Skin Care Emily Lisa 25 Massage 10 Skin Care Miriam Kristen 25 Massage
Technicians Therapists P/T Technicians Therapists P/T
Massage-MOD Events-MOD Asst. Manager Retail Asst.

Kathleen Alvin 7 Jaime
Receptionists
Reception-MOD Housekeeping Housekeeping
Events - MOD

7 5 5
Receptionists Housekeeping Housekeeping

Business Overview

Management Team & Employees

115 65 35 Approximately 35 are full-time
Oasis employs a 80 full-time employees and 80 are
total of 115 people in New York City part-time.
work
50 part-time
work
in Dobbs Ferry

Management personnel receive fixed salaries with discretionary incentive bonuses.
Reception and housekeeping positions are paid hourly.
Spa service providers are compensated on a fee-per-service basis.

Compensation levels range as follows:
• Management $34,000 to $65,000;
• Reception $12.00 to $16.00 per hour;
• Housekeeping $11.00 to $16.00 per hour;
• Service providers/Aesthetics $25.00 to 38.00 per hour;
• Massage Therapists $36.00 to $44.00 per production hour;

Staff for outcall and pop-up spa services are paid as independent contractors.

Business Overview

Summary of Management Positions

Name Title Functions Location
Bruce Schoenberg Owner Marketing/Operations. Both
Lillian
Christie Senior GM General Manager at Park Avenue Both
Waiman Skin Care Director Retail Director at both locations Both
Laura Bookkeeper Both
Kathleen Oversees implementation of all skincare related tasks encompassing hir-
Emily ing, training, product line and equipment recommendations.
Lisa
Alvin Maintains all records and prepares financials for the entire company.
Lauren
Jaime Massage Director Oversees implementation of all massage related tasks encompassing hir- Both
Manager ing, training, product line and equipment recommendations. Park Avenue

Shift manager, focuses on reception team.

Manager Shift manager, focuses on assisting massage manager. Park Avenue

Manager Shift manager, focuses on event planning. Park Avenue

Senior Housekeeper Trains staff, handles facilities. Park Avenue

Senior GM General Manager at Dobbs Ferry, oversees schedules for all receptions, Westchester
Manager assists massage manager. Westchester

Shift manager, oversees housekeeping.

Business Overview

Future Plans and Strategy

Further revenue growth can be achieved through expanded sales at each of the current locations as well as through expansion of the Oasis
brand into new locations and adjoining markets.

Current Locations

The Company plans to add IPL to the NYC location – the services are currently
only available at the Westchester location. Other initiates to increase referrals from
major corporations and from online booking services are also being pursued.

Brand Expansion

Oasis management believes an opportunity exists to expand the Oasis brand to
other neighboring markets such as New Jersey, Northern New York, Connecticut,
and Long Island.

Additionally, the Company is exploring the feasibility of establishing a series of
small footprint “Express Skin Care” locations within the New York market. The
express service would provide relatively fast and economical skin care treatments
that clients could utilize on a more frequent basis.

Industry Overview

Health and Wellness Spa Industry

The Health and Wellness Spa Industry includes a variety of health and wellness facilities, such as day spas, spa resorts, hotel spas, and medical
spas. Most of the services that industry operators offer are discretionary, such as massage and other personal care services. As a result,
industry performance is linked to variations in disposable income and consumer sentiment. Over the next five years, economic conditions are
expected to improve. These conditions are expected to lead to increased spending on personalized spa services. The Industry is expected to
generate revenue of $18.1 billion by 2021, up from $16.6 billion in 2016.

$16.6 $1.8
Billion Billion

Estimated annual revenue Estimated annual profit generated
generated from the Health and by the Industry in 2016.
Wellness Spa Industry in 2016.

1.7% 18,495
Billion Billion
Expected compounded
Number of businesses currently
annual growth rate for the operating in the Industry.

industry from 2016 to 2021.

Source: IBISWorld Industry Report – Health & Wellness Spa in the US, August 2016

Industry Overview

Industry Segments

77Woman% Market Segmentation

23%Man Adult women generate more than half of the industry revenue, estimated at 52.7%.
However, the revenue share generated by adult women has declined in recent years as
spas increasingly utilize marketing strategies to capture other demographics. Currently,
women account for 77% and men account for only 23% of the industry’s client breakdown.

The number of senior citizens that utilize spa services has grown at a higher percentage than
their respective population growth. Senior citizens generated 18.9% of industry revenue in
2016.

Moreover, adult men currently contribute 18.1% of industry revenue. In recent years, the
percentage of the male population utilizing spa services has increased due to refined and
aggressive marketing campaigns by spas.

Source: IBISWorld Industry Report – Health & Wellness Spa in the US, August 2016

Products and Services 35,6%

Segmentation Massage and bodywork services

Massage and bodywork services represent 35.6% 24,1%
of the total annual revenue within the spa industry
in 2016. Skin-care treatments generated 24.1% Skin-care treatments generated
of industry revenue, making it the second largest
segment of industry revenue in 2016.

Source: IBISWorld Industry Report – Health & Wellness Spa in the US, August 2016

Industry Overview

Key External Drivers

Below are key growth drivers for the Health and Wellness Spas industry:

• The Health and Wellness Spa Industry revenue growth is positively correlated
with changes in per capita disposable income.

Per capita • When per capita disposable income rises, consumers have more money to spend on personal care services.
disposable income The expected increase in per capita disposable income will lead to higher demand for these services.

• The number of adults between the ages of 20 and 64 years is expected to increase.
Women within this age group are the largest source of demand for such discretionary services.

Number of adults • An expansion in the size and income of this group is expected to boost industry revenue.
ages 20 to 64

• Consumers who have more discretionary time are likely to be more involved in body care services,

Time spent on such as massages, skin care services, makeup services, etc.

leisure and sports

Poverty rate • Services provided by spas involve consumer discretionary spending. Therefore, demand for spa
services is inversely proportional to a percentage of people below the economic poverty line i.e.
individuals below the poverty line generally do not purchase spa services.

• The poverty rate is expected to decrease in the coming years. As a result, the numbers of people who
are likely to utilize such services will likely increase.

Industry Overview

Industry Performance

The Health and Wellness Spas industry
has experienced steady growth from
2011 to 2016. Industry performance is
linked to the level of consumer disposable
income and market sentiment. Improved
economic conditions have led to an
increase in the demand for industry
services. As consumer disposable
income levels have increased over the
past five years, the industry is likely to
support an annualized 2.9% revenue
growth over the five-year period.

New services such as Botox, laser hair
removal and teeth whitening have been
strong sources of industry growth over
the past five years. There has been an
increase in the number of spa visits
because of the diversity of the services
offered such as chemical peels, Botox,
acupuncture, and body wraps for
weight loss. In addition to the increase in
number of spa visits, average spending
per visit has also increased over the
years.

Industry Overview

Industry Outlook

The Health and Wellness Spas industry is anticipated to experience consistent revenue
growth over the next five years. This positive assessment is attributed to expected growth
in the coming years in per capita disposable income deployed in the personal care services
sector. The industry is expected to grow as the industry operators are likely to enter into
the relatively untapped markets, e.g., men’s spa services. Additionally, baby-boomers
could spur industry growth in the next five years.

$18.1/1.7%
Billion

On whole, the industry is projected to grow at an
annualized rate of 1.7% to $18.1 billion by 20211.

1IBISWorld Industry Report –
Health and Wellness Spas in the US,
August 2016

Industry Overview

Key Competitors

Oasis Day Spa does not face a large competitive landscape. The average transaction value of Oasis Day Spa is slightly higher
than most of the other surrounding spas, but it does not impact the number of transactions. The Company positions itself as
“Affordable Luxury” by providing quality services at a moderate price.

Competitors include:

Founded: 1996 Bliss is a multi-channel spa and retail product company headquartered
Employees: 501-1000 in downtown New York.

The company provides higher priced services to a similar target market as Oasis.

Bliss was acquired for $25 million in 2004 and again for $100 million in 2010.

Founded: 2004 Based in New York City, Great Jones Spa offers facials, body wraps, and
Employees: ------ massages along with unconventional treatments.

The company provides higher priced services to a similar target market as
Oasis. The company’s facilities and environment is considered less luxurious
than Oasis Day Spa.

Founded: 2003 Exhale Spa provides spa therapies, yoga and core fusion classes from 23
Employees: 1000-5000 locations in 11 cities globally, including 7 in New York.

The company primarily focuses on fitness with spa services generally
perceived as less important

Financials

Adjusted EBITDA

Unadjusted EBITDA 2016 2015 2014 Notes
ADJUSTMENTS: $497,714 $307,732 $163,573
Officer Compensation
Owner Discretionary Expenses 203,041 131,154 82,926 Adjustment to normalize above market rate compensation to owner
Equipment Purchases 35,662
Cleaning Expense 13,945 26,770 51,034 Owner-related expenses would not continue after acquisition
Accrual Adjustments 11,174
Relocation Expense 113,101 7,289 3,000 Purchases of equipment that should be capitalized

Repair Expense — — 54,308 Nonrecurring expenses related to repairing damage to space

COBRA Assessment 2,100 108,888 — To reverse adjustments made for tax purposes only
Nonrecurring Expense - Other — 61,763
Adjusted EBITDA — Expenses directly related to temporary relocation of
Check Figure 135 Park Avenue location caused by landlord property damage
Revenue $650,670
EBITDA Margin % $650,670 — 51,119 Nonrecurring expenses related to renovations of space & repair
$4,720,672 expenses that should have been capitalized
13.78%
8,886 — Nonrecurring expense item

3,000 1,316 Nonrecurring expense item

$593,719 $469,040 Notes

$593,719 $469,040

$4,708,038 $4,066,042

12.61% 11.54%

In March of 2014, the landlord for the Park Avenue location caused significant damage to the Oasis space when a concrete block in the space above fell thru the floor. Oasis
was forced to undergo major renovations and temporarily relocate into a smaller space. This contributed to the lower level of revenue and EBITDA in 2014. In addition to an
abatement of rent, Oasis received a settlement of $590,000 from the landlord. $80,000 of the settlement was recognized as income in 2014 and the remaining $510,000 was
deferred and is included as a liability on the balance sheet. The liability will be removed from the balance sheet when it is recognized for tax purposes.

In the above adjusted EBITDA calculations, all expenses related to the renovation, repairs, and cleaning are added back. In addition, adjustments were made for various other
one-time expenses (legal, payroll, IT, telecom, etc.) that were related to the damage and relocation.

[Eliminate above text if it’s too much detail]

Financials

Adjusted Income Statements

REVENUE 2016 2015 2014
OPERATING EXPENSES $ 4,720,672 $ 4,708,038 $ 4,066,042
Payroll
Purchases $ 2,568,079 $ 2,603,568 $ 2,327,687
Credit Card Fees 406,372 396,057 349,905
Advertisng & Marketing 82,785 94,667 77,822
Catering 159,881 139,562 131,465
Insurance 8,301 7,432 4,382
Occupancy 82,251 105,363 95,344
Security 573,502 561,795 440,165
Equipment 6,397 4,738 2,788
Telephone 10,350 12,664 12,998
Computer 24,220 35,304 36,091
Office 35,227 40,091 36,899
Repairs & Maintenance 20,543 15,809 23,913
Professional Fees 32,408 46,804 27,717
Other 48,867 44,117 22,381
Total Operating Expenses 10,819 6,348 7,447
Adjusted EBITDA
$ 4,070,001 $ 4,114,320 $ 3,597,002
$ 650,670 $ 593,719 $ 469,040

Financials 2016 2015 2014

Balance Sheets $ 889,232 $ 927,415 $ 918,149
12,056 42,464 8,178
As of December 31 213,101 213,371
ASSETS 10,952 10,952 206,009
Current Assets 45,850 14,522 50,952
Cash and Cash Equivalents 11,523
Accounts Receivable 1,171,191 1,208,724 1,194,811
Loan to Shareholder
Inventories 11,455 11,455 11,455
Other Current Assets 509,889 509,889 495,747
Total Current Assets 2,087,493 2,087,493 2,087,493
Property & Equipment 2,608,837 2,608,837 2,594,695
Software & Computers (2,373,522) (2,337,280) (2,290,290)
Furniture, Fixtures & Equipment 235,315 271,557 304,405
Leasehold Improvements
Total Property & Equipment -at Cost 32,827 32,779 32,696
Accumulated depreciation 1,200 1,895 1,895
Total Property & Equipment - Net 34,027 34,674 34,591
Other Assets $ 1,440,533 $ 1,514,955 $ 1,533,807
Security Deposits
Employee Advances
Total Other Assets
Total Assets

Financials 2016 2015 2014

Balance Sheets 194,805 331,323 306,467
35,967 12,602 11,505
As of December 31 6,356 4,849 4,849
LIABILITIES & EQUITY 39,243 437,475 848,790
Current Liabilities 39,484 31,490 125,858
Accounts Payable 510,000 510,000 510,000
Credit Cards 825,855 1,327,739 1,807,469
Bank Overdraft 25,690 35,191 28,342
Deferred Income 320,000 320,000 320,000
Accrued Expenses (1,061,811) (720,000) (520,000)
Deferred Settlement 1,330,799 552,025 (102,004)
Total Current Liabilities 588,988 152,025 (302,004)
Long-term Liabilities $ 1,440,533 $ 1,514,955 $ 1,533,807
Common Stock
Distribution
Retained Earnings
Total Equity
Total Liabilities & Equity


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