# Flatirons Flexcare for Seniors, LLC — 2025 Net Operating Income
### INTERNAL-USE VERSION — for Marcus & Kerry (not for the tax preparer)

Compiled from the 2025 transaction register. Exact amounts are in the CSVs; this rounds to whole dollars.

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## The number

**Flatirons' 2025 net operating income: +$77,745.** Positive. The business made money.

- Full-year cash profit (whole business, before the sale split): **$120,748**
- Flatirons' share (Jan 1–Oct 20): **$75,745**
- Plus the $2,000 management fee (Nov–Dec): **+$77,745**

## What happened, in plain English

We sold the business to Stand Out Home Care Holdings via an asset purchase. The deal became valid on **October 20, 2025** — the day the $135,000.00 wire landed. From that point, Stand Out keeps 100% of the profit; Flatirons keeps its licenses, EIN, Medicaid enrollment, insurance — and a **$1,000/month management fee** for Kerry.

So our 2025 number is January 1 through October 20, not the full year. November and December belonged to Stand Out (they've already been paid ~$40,000 profit for October through spring 2026).

## The three reports

| # | Report | Net |
|---|---|---|
| 1 | Initial 2025 (full-year cash) | **+$120,748** |
| 2 | Flatirons share (Jan 1–Oct 20) | **+$75,745** |
| 3 | Final (Jan–Oct + $2,000 management fee) | **+$77,745** |

The bridge: $120,748 (whole year) − $45,003 (Nov–Dec, which went to Stand Out) = $75,745, + $2,000 management fee = **$77,745**.

## Why it's positive, not a loss

Most of the year's profit is in the first ten months. November and December netted about $45,000 — that's Stand Out's, not ours. Our Jan–Oct operating profit is ~$75,700, and the management fee adds $2,000. There is no scenario where Flatirons shows a loss for 2025.

## The billing/payroll lag — don't over-correct it

We bill after we pay caregivers, so cash received in a month is really for the prior month's work. That's real, but on the **cash basis** of accounting (which is how we file), it doesn't require any adjustment — you report cash when it arrives and leaves. An earlier draft tried an "accrual" correction on this and produced a wrong negative number; that was a calculation error, not a real result. The correct cash-basis figure is +$77,745.

## What to watch / push for

1. **Receivables at close.** Did outstanding receivables transfer to Stand Out on Oct 20? This confirms the split between our revenue and theirs. Get it in writing from the deal docs.
2. **Management fee start month.** Nov vs. partial October — per the management agreement.
3. **Mom's "management fees."** Kerry earlier deducted ~$15–20k of "management fees." The clean number is $1,000/month (Nov + Dec = $2,000 for 2025). Reconcile the difference — don't leave a $15–20k deduction on the books that should be $2k.
4. **The $6,000 consulting is taxable on our side.** Torchline Holdings recognizes it as income in the same period Flatirons deducts it. Roughly a wash; it cleans up the off-books loan.
5. **Capital events stay out of operating income.** The $135,000 sale proceeds and the $45,000 Confitone purchase are capital events, reported separately — they don't touch the operating P&L.

## Expense detail (full year, 2025)

| Category | Amount |
|---|---|
| Payroll (wages) | $988,610 |
| Contract labor (1099) | $168,457 |
| Payroll taxes | $32,613 |
| Taxes & licenses | $28,204 |
| Professional services | $12,057 |
| Insurance | $11,739 |
| Payroll (wages/other) | $8,905 |
| Payroll processing fees | $5,877 |
| Utilities | $4,831 |
| Gifts | $4,070 |
| Legal & professional | $2,800 |
| Payment processing fees | $1,966 |
| Insurance (workers comp) | $1,560 |
| Auto | $1,257 |
| Rent | $825 |
| Payroll (mileage) | $506 |
| Software | $463 |
| Postage/PO box | $417 |
| Meetings | $339 |
| Uncategorized | $299 |
| Bank fees | $227 |
| Supplies | $178 |
| Meals | $143 |
| Office | $127 |
| Client reimbursed | $25 |
| Consulting (Torchline Holdings) | $6,000 |
| **Total** | **$1,282,498** |

## Accompanying files

- `flexcare-2025-corrected-pl.csv` — final P&L (color-tagged)
- `flexcare-2025-three-reports.csv` — the three-report journey (color-tagged)
- `flexcare-2025-monthly-corrected.csv` — month-by-month
- `flexcare-2025-pl-by-category.csv` — category detail
- `flexcare-2025-final-report.html` — the presentation (open in a browser, print to PDF)
- Charts: cash journey, revenue pie, expenses pie, expenses by category, three-reports waterfall