# Flatirons Flexcare for Seniors, LLC — 2025 Net Operating Income
### For tax preparation

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

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## Overview

Flatirons Flexcare for Seniors, LLC sold its business (asset purchase) effective **October 20, 2025**, the date the $135,000.00 sale proceeds were received by incoming wire. Flatirons operated the business from January 1 through the October 20 close; November and December activity belongs to the buyer.

This report presents the 2025 operating result on a **cash basis** — the method under which a home-care business of this size files.

## Net operating income

| Line | Amount |
|---|---|
| Full-year cash revenue (Jan–Dec) | $1,403,246 |
| Full-year cash expenses (Jan–Dec, incl. $6,000 consulting) | $1,282,498 |
| **Full-year net operating income (whole business)** | **$120,748** |

| Line | Amount |
|---|---|
| Less November–December operating (buyer's period) | −$45,003 |
| **Flatirons net operating income (Jan 1–Oct 20)** | **$75,745** |
| Management fee income (Nov–Dec, $1,000/mo) | +$2,000 |
| **Flatirons final net operating income** | **$77,745** |

## The three reports

1. **Initial 2025 (full-year cash)** — $120,748. The whole business's 2025 cash profit before splitting at the sale.
2. **Flatirons share (Jan 1–Oct 20)** — $75,745. Remove November–December (the buyer's operating period).
3. **Final** — $77,745. Flatirons' operating income plus the $2,000 management fee for November–December.

## Revenue detail (full year, 2025)

| Source | Amount |
|---|---|
| Medicaid | $1,296,363 |
| Private pay | $91,933 |
| Private pay (card/other) | $14,600 |
| Other income | $350 |
| **Total** | **$1,403,246** |

## 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** |

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## Items requiring the preparer's determination

1. **Receivables at close.** Whether outstanding receivables transferred to the buyer on October 20. This determines whether revenue received after the close is the buyer's or Flatirons'. The figures above assume the cash-basis split at the close.
2. **Management fee start month.** The $1,000/month fee is included for November and December 2025 ($2,000). Confirm the start date per the management agreement.
3. **Consulting expense.** The $6,000 Torchline Holdings consulting (May–October, $1,000/month) is documented by invoice and settled as compensation. It is taxable income on the Torchline side.
4. **Capital items excluded.** The $135,000 sale proceeds (Uncategorized Asset) and the $45,000 Confitone purchase are capital events, reported separately from operating income.
5. **Billing/payroll lag.** The business bills after it pays caregivers, so cash received lags work performed by roughly a month. On the cash basis of accounting, this lag does not require adjustment — cash is recognized when received. (It matters only if the business reports on the accrual basis.)

## Accompanying files

- `flexcare-2025-corrected-pl.csv` — final P&L
- `flexcare-2025-three-reports.csv` — the three-report journey
- `flexcare-2025-monthly-corrected.csv` — month-by-month detail
- `flexcare-2025-pl-by-category.csv` — category detail
- Charts: cash journey, revenue pie, expenses pie, expenses by category, three-reports waterfall