UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1-U
CURRENT REPORT PURSUANT TO REGULATION A
January 17, 2022
(Date of Report (Date of earliest event reported))
ENERGEA PORTFOLIO 4 USA LLC
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
86-2564823
(I.R.S. Employer Identification No.)
62 Clementel Drive, Durham, CT 06422
(Full mailing address of principal executive offices)
860-316-7466
(Issuer's telephone number, including area code)
Class A Investor Shares
(Title of each class of securities issued pursuant to Regulation A)
This IC Memo includes projections and forward-looking information that represent Energea's assumptions and expectations in light of currently available information. Except for statements of historical fact, the information contained herein constitutes forward-looking statements and they are provided to allow potential investors the opportunity to understand management's beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. These forward-looking statements are not guarantees of future performance and necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance.
West School is a 299 kW (DC) solar power plant to be located on the roof 769 Ponus Ridge Road in New Canaan, CT that will be connected to the Eversource electricity distribution grid ("Project"). The Project's offtaker is the city of New Canaan which signed a 20-year PPA with a fixed rate. The Project will also sell the ZRECs generated to the local distribution company.
Energea acquired the Project from Plankton Energy LLC ("Plankton"), the original developer. The Project has hired Plankton to do the construction management of system and to provide the posterior operations and maintenance ("O&M") services. Centurion Solar Energy LLC ("Centurion") was hired to do Engineering, Procurement and Construction ("EPC") of the Project.
The total cost of the project is USD $500,000 and it is projected an 7.44% IRR.
Project Owner | Energea Portfolio 4 LLC |
Project Location | West School, CT USA |
Technology | Rooftop Solar |
System Size (AC/DC) | 249 kW/ 299 kWp |
Estimated Year 1 Production | 348 MWh |
Coordinates | 41.139567° N 73.525117 ° W |
Roof Status | Rented |
Project Status | Notice to Proceed |
Useful Equipment Life (Years) | 25 |
SPE | Phytoplankton Ponus Ridge Solar LLC |
Offtaker | New Canaan Public Schools |
EPC Contractor | Centurion Solar Energy LLC |
O&M Contractor | Plankton Energy LLC |
Roof Owner | Town of New Canaan |
Project Acquisition Costs | $10,050 |
Project Hard Costs | $408,945 |
Project Soft Costs | $10,671 |
Developer Fee | $65,155 |
Total Equity | $500,000 |
Tax Equity | $170.000 |
Sponsor Equity | $330.000 |
Project IRR ($) | 7.44% |
SPE
The Project's Special Purpose Entity (SPE) was fully formed on October 22, 2020, Plankton being the sole member of the company. Energea Portfolio 4 USA LLC ("Energea") and Plankton signed, a Membership Interest Purchase Agreement on March 30, 2021 to purchase and transfer all the limited liability interests of the SPE to Energea.
Additionally, the SPE contracted Plankton through a Construction Management Agreement (DCMA) to provide services for the Project.
Table 1 - SPE General Information
SPE | Phytoplankton Ponus Ridge Solar LLC |
Registered Office | 16192 Coastal Highway, Lewes Delaware 19958, County of Sussex |
State File Number | 3947899 |
FEIN | 85-4121206 |
Roof
The 360 Waltham Associates, LLC ("Roof Owner") owns the site for the project. The SPE entered into a Site Lease Agreement with the Roof Owner to secure approximately 95,903 sq foot of the site to the project for a 20-year term on April 30th, 2021.
The roof is warrantied by Firestone - Red Shield for a 20-year period, starting on September 1st, 2017.
Design
The Project will employ 758 x 395 Wp solar modules manufactured by Trina Solar, a Tier 1 solar manufacturer based in China. The plant will also use 2 x 100 kW SE100KUS and 1 x 40 kW SE20KUS inverters manufactured by Solar Edge.
Regarding Energy Production, the Project is estimated to produce 348.3 MWh/year with a Specific Production of 1,163 kWh/kWp.year. The AC Capacity Factor and Performance Ratio are, respectively, 16.6%. and 81.8%.
On the roof structure, Arc Design provided an inspection and review of the roof construction to verify if the existing roof can support the Solar System. The report concludes that the existing joist members, as installed, meet the required IBC 2018 loading requirements with sufficient capacity to carry the additional dead loads as imposed by the proposed solar array. The roof is suitable for a solar load of 8-psf installed.
Interconnection
The Interconnection for the project is secured through an Interconnection Service Agreement signed on May 2, 2021, between Connecticut Light and Power, d/b/a Eversource Energy ("Utility Company") and the Offtaker.
Offtaker
The Offtaker is the New Canaan Public Schools. Moody's has given an Aaa (Stable) Tax Backed Credit Rating for the Offtaker.
Additionally, the project will sell the generated ZRECs to the Utility Company, as established on the Standard Contract for The Purchase and Sale of Connecticut Class I Renewable Energy Credits ("Incentive Contract"), signed on November 26, 2018 between the Offtaker and the Utility Company. The Incentive Contract was assigned to the SPE on January 14th, 2021.
Table 2 - PPA Main Terms
Contract Type | PPA + Incentive Program |
Revenue Contract Term | 20 years |
Contracted Rate | Fixed Rate |
PPA Rate | $ 0.0385 /kWh |
Incentive Program Rate | $ 0.0950 /kWh |
EPC
Centurion Solar Energy LLC ("Centurion") has been selected as the EPC partner for the Project. Centurion will be responsible for Installation, Balance of System and string wiring as established by the Solar Photovoltaic (PV) System Construction Agreement signed on December 4th, 2020, for a fixed-price of $209,431.38. The Major Equipment were purchase separately by the SPE.
In addition to the manufacturers' warranty, Centurion will provide a warranty for all services for the first 5 years following completion of the works.
O&M
Plankton has been selected as the O&M partner for the Project. The terms and conditions of the O&M contract are being negotiated and the agreement will be dully signed prior to the project's COD.
The nominal pre-tax IRR of West School's sponsor equity investors is projected to be 7.44%, with an estimated payback of 9 years and 10 months and 1 day from the NTP date. The income statement, cash flow statement and balance sheet up until 2030 (shown annually) are presented on Exhibit I.
The project financials are modeled with a tax equity partnership flip structure. The portfolio has executed a term sheet with a tax equity investor resulting in a tax equity investment the of approximately $170,000 USD in exchange for 99% of the Investment Tax Credit. The proposed pre-flip preferential return to the tax equity investor is set at 3.00% per year, with 99% of the allocated depreciation. For the partnership flip, the date of the flip is defined as July 2026, 5 years from the anticipated COD date of the project, with a fair-market-value buyout price, set as a bullet payment, calculated at an 8% discount rate.
The contracted PPA with West School is a take-or-pay contract where the customer pays the project based on the amount of electricity metered at the project regardless of how much is delivered or used by the offtaker. The main aspects of the PPA are defined below on Table 4. Additionally, the project is also incentivized by the state of Connecticut through the creation of Zero-Emission Renewable Energy Credits ("ZREC") per kWh produced. These ZREC's are commercialized quarterly with the utility company, at an initial rate of $0.095 USD / kWh generated, for the starting 180 months from COD, and $0.015 USD / kWh for the last remaining 60 months.
Operating Expenses
The model assumes the Operating Expenses described within the "Project Review" section, with its values priced as on Table 6. CPI readjustments assume a 2% year-to-year rate.
Table 6 - Operating Expenses Assumptions
Operations & Maintenance | $8.00 / kWp / year | Fixed 2.00% y/y |
Insurance (GL & Property) | $1,819 / year | No Readjustment |
Banking Fees | $100 / month | CPI |
CAPEX
CAPEX assumptions are set as seen on table 7 below. All items are assumed to be depreciable under State and Federal Level.
Table 7 - Capital Expenditures Assumptions
Acquisition Costs | $10,050.00 | $0.0336/Wp |
|
|
|
Hard Costs | $408,945.22 | $1.3659/Wp |
Solar Modules | $111,024.60 | $0.3708/Wp |
Solar Inverters | $41,889.26 | $0.1399/Wp |
Racking & Trackers | $37,747.36 | $0.1261/Wp |
Engineering Drawings | $8,197.00 | $0.0274/Wp |
Site Works | $83,834.80 | $0.2800/Wp |
Electrical Work | $83,834.80 | $0.2800/Wp |
Mechanical Work | $41,917.40 | $0.1400/Wp |
Interconnection | $500.00 | $0.0017/Wp |
|
|
|
Soft Costs | $10,670.50 | $0.0356/Wp |
Additional Consulting Services | $9,920.50 | $0.0331/Wp |
Preliminary Engineering | $750.00 | $0.0025/Wp |
|
|
|
Developer Fees | $70,334.28 | $0.2349/Wp |
Liquidated Damages | ($5,179.11) | ($0.0173/Wp) |
|
|
|
Pre-COD OpEx | N/A | N/A |
|
|
|
Total CapEx (All-In) | $494,820.50 | $1.6527/Wp |
Lastly, the project depreciation is split under two different schedules, one for State level, which follows a Placed in Service (PIS) Half Year convention, and is done under 5 years, as seen on Table 8 below, and the other for Federal level, that is accelerated under MACRS.
Table 8 - Depreciation Schedules
Year | State | Federal |
1 | 20.00% | 100.00% |
2 | 32.00% | 0.00% |
3 | 19.20% | 0.00% |
4 | 11.52% | 0.00% |
5 | 11.52% | 0.00% |
6 | 5.76% | 0.00% |
Relevant Documents
A Legal review was performed in the project's available documentation. The most relevant documents are listed below:
1. Phytoplankton Ponus Ridge Solar LLC Operating Agreement;
2. Solar PPA between Phytoplankton Ponus Ridge Solar LLC and New Canaan Public Schools;
3. Solar Photovoltaic (PV) System Construction Agreement between Target and Centurion Solar Energy LLC;
4. O&M Agreement between Phytoplankton Ponus Ridge Solar LLC and Plankton Asset Management LLC;
5. Standard Contract for the Purchase and Sale of Connecticut Class I Renewable Energy Credits, between The Connecticut Light and Power Company dba Eversource Energy and Town of New Canaan Public Schools.
All contracts submitted are duly signed. There was no major red flag in the contracts/documents.
Contract Summary
Table 9 - SPE Operating Agreement Summary
Contract | Operating Agreement of Phytoplankton Ponus Ridge Solar LLC |
Date | October 22, 2020 |
Place of Incorporation | Delaware |
Owner | Energea Portfolio 4 LLC, a Delaware limited liability company |
Management | Energea Portfolio 4 LLC has all rights and powers that are conferred by law |
Table 10 - Solar Power Purchase Agreement Summary
Contract | Solar Power Purchase Agreement | ||
Date | December 2, 2020 | ||
Parties | Phytoplankton Ponus Ridge Solar LLC - as provider New Canaan Public Schools - as host | ||
Term | 20 years from the Commercial Operation Date | ||
Object | Host will purchase energy (100%) and solar services from provider for delivery at the Site (769 Ponus Ridge Road). Host will sell all of the energy generated by the system during the term and provide all services to the system necessary for the proper and efficient operation of the system during the term. | ||
Price | $0.0385 per kWh, escalated at 0% each contract year | ||
Taxes | Provider is responsible for all sales, use, excise, ad valorem, transfer, property and other similar taxes due to its ownership of the system
Host is a tax-exempt entity and the sale of energy to the host is not subject to sales and use tax. | ||
Options upon expiration of term | (i) Host shall have the option to renew the term of the agreement for 1 additional 5-year period, upon prior written notice to provider at least 180 days prior to the expiration date. (ii) After the expiry of the 6th, 10th and 15th contract years and upon at least 90 days written notice to the provider and lender, host may purchase the system and environmental attributes from provider for a purchase price equal to the fair market value of the system or the applicable termination value, whichever is greater. | ||
Critical Milestones | Milestone to be achieved by provider | Deadline | Status |
Confirmation that renewable energy credits from Class I generation projects that emit no polluants have been awarded to the system | N/A | Request confirmation. | |
File interconnection application | December 16, 2020 | Ok (status: contingent approval) | |
File complete application for all required local approvals | 7 days following receipt of conditional interconnection approval from the utility | TBD | |
Receipt of all permits necessary to construct the system | With adequate time to meet the deadline for the COD | Ok | |
Demonstration of the financial capability, reasonably acceptable to the host, to proceed with the development, construction and operation of the system | No later than February 26, 2021 |
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Submission of an application for any necessary municipal building permits | Within 15 days following approval by the local zoning authority for the performance by the host of its obligations |
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Delivery to the system site of all construction material that require overhead hoisting + hoisting and placement of such materials to the roof of the system site and removal of any lulls or other overhead lifting equipment | By the end of March 9, 2021 |
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Achievement of COD | The earlier of (i) June 8 2021 or (ii) the date on which all requirements of 3.4(a) have occurred |
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Failure to achieve COD | Delay liquidated damages of $1,500 per month for the period between the required COD and the actual COD | ||
Insurance | Provider shall maintain, commercial general liability insurance, including products and completed operations and personal injury insurance, as well as automobile insurance in a minimum amount of 1 million dollars per occurrence and 2 million dollars in the aggregate.
Provider shall obtain or cause its contractors to obtain and maintain builder's risk insurance during the construction and installation of the system in commercially reasonable amounts, not to exceed $600,00
Provider shall cause to be provided and maintained "all-risk" property insurance covering the system during all periods that provider is the beneficial owner of such system. | ||
Termination | By provider, upon written notice: (i) of the occurence of an unstayed order of a court or administrative agency having the effect of subjecting the sales of Energy to federal or state regulation of prices and/or service provided the Provider sends written notice within 30 days of the issuance or occurrence of such order; and (ii) if the elimination or alteration of one or more Environmental Financial Incentives or other change in law results in a material adverse economic impact on Provider, provided the Provider sends written notice of its intent to terminate within 30 days of the effective date of such elimination, alteration or change in law and includes a detailed written explanation identifying the change and the resulting adverse economic impact and supporting data and calculations. This termination shall not be deemed a default by Host so long as Provider removes the System as required and otherwise complies with obligations that survive termination of the Agreement. Upon the receipt of Provider's notice of its intent to terminate, Host shall have the option to purchase the System and Environmental Attributes from the Provider for a purchase price equal to the Fair Market Value of the System (provided that the appraiser determining Fair Market Value shall consider and select the higher value of both (i) the value of the System in situ, taking into account the new condition that is the basis for Provider's termination, and (ii) the value of the System removed from the System Site, less the costs of removal). If Host does not exercise its Option within 30 days, the Agreement shall be terminated except for obligations which survive termination.
By host: (i) Host has the right, in his sole and absolute discretion, to terminate the PPA upon written notice to provider of the occurrence of an unstayed order of a court or administrative agency having the effect of requiring the host to remove or substantially remove the System from the Site for any reason. (ii) Host shall have the right, in host's sole and absolute discretion, to terminate the PPA upon written notice to provider if provider fails to achieve COD by the date that is one (1) months following the Required COD.
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Table 9 - Solar Photovoltaic System Construction Agreement Summary
Contract | Solar Photovoltaic (PV) System Construction Agreement |
Date | December 4, 2020 |
Parties | Phytoplankton Ponus Ridge Solar LLC - as developer Centurion Solar Energy LLC - as contractor |
Object | Contractor will provide labor, services, materials and/or equipment |
Price | $ 209,587 ($0.70 per watt DC) - contractor's pricing is based on this being an open-shop project and if prevailing wage is needed by the developer for the project for any reason, then the developer and contractor shall enter into a change order to increase the contract price |
Payment | Exhibit D - payment schedule: 10% - mobilization 30% - racking installed 20% - modules wires 20% - inverters installed, wired & monitoring installed 10% - substantial completion 10% - final completion |
Termination | Developer may terminate at any time upon written notice without just cause. |
Assignment | Contractor may not assign without the prior written consent of developer.
Developer may assign the contract without consent of contractor upon proper notice. |
Governing Law | NY |
Table 11 - O&M Agreement Summary
Contract | O&M Agreement |
Date | December 11, 2020 |
Parties | Phytoplankton Ponus Ridge Solar LLC - as client Plankton Asset Management LLC |
Term | 5 years - starting on the date the system reaches Commercial Operations (commencement date) |
Object | Operation and maintenance services for the solar PV installation at West Elementary School (located at 769 Ponus Ridge Rd., New Cannan, CT 06840). |
Termination | Either party can cancel the Agreement on 90 days prior written notice to the other. |
Price | Annual payment by Client of $8.00 multiplied by the nameplate size of the system in Kilowatts DC. Payment annually, with the first such annual payment due on the commencement date and with each subsequent payment due thereafter throughout the term in advance in each anniversary of the commencement date. |
Adjustment | The price will increase 2% per year during the term. |
Late Payment | After 30 days delay, 1% interest per month on the unpaid amount |
Liability of Plankton | Shall not exceed an amount equal to the price paid (or to be paid) by client during such calendar year. Client will bear all risk of loss with respect to the system. |
Governing law | NY |
Schedules | Schedule A - Operations and Management; Operations and Maintenance - Mechanical Inspection; Operations and Maintenance - Electrical Inspection. |
Table 12 - Documentation Checklist
SPE | Opening Agreement | X |
FEIN | X | |
Formation Documents | X | |
MIPA | X | |
Roof | Roof Photos | X |
Warranty | ||
Validation Letter | X | |
Roof Lease | X | |
Design and Application | Energy Resource Study | X |
Preliminary Engineering | X | |
Interconnection | Interconnection Application | X |
Interconnection Agreement | X | |
Permission to Energize | X | |
Permit | Installation Permit | X |
Electrical Permit | X | |
Offtaker | Offtaker Credit Analysis | X |
Incentive Program | X | |
EPC | Construction Set | X |
Equipment Warranties | X | |
Equipment Purchase Order | X | |
Equipment Datasheet | X | |
EPC Contract | X | |
EPC Insurance | X | |
O&M | O&M Agreement | X |
Investment | Project Model | X |
The Investment Committee members have reviewed the Project Memorandum and hereby approve the investment on the West School Project.
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Energea Global LLC
By MICHAEL SILVESTRINI
Name: Mike Silvestrini
Title: Co-Founder
Date March 8, 2022
Exhibit I
Balance Sheet, Income Statement, Cash Flow Statement
ENERGEA PORTFOLIO 4 USA LLC - PHYTOPLANKTON PONUS RIDGE, LLC PROJECT | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ 1,809 | $ 550 | $ 541 | $ 531 | $ 521 | $ 511 | $ 501 | $ 491 | $ 481 | $ 471 |
Accounts receivable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total current assets | 1,809 | 550 | 541 | 531 | 521 | 511 | 501 | 491 | 481 | 471 |
Property and equipment | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 | 494,821 |
Depreciation | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) | (430,494) |
Tax credits | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total assets | $ 66,136 | $ 64,877 | $ 64,867 | $ 64,858 | $ 64,848 | $ 64,838 | $ 64,828 | $ 64,818 | $ 64,808 | $ 64,797 |
Liabilities and stockholders' equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Short-term debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accrued expenses and other current liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total current liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Tax payable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term debt | 100 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total liabilities | 100 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stockholders' equity: | ||||||||||
Additional paid-in capital | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 |
Retained earnings | (433,964) | (435,123) | (435,133) | (435,142) | (435,152) | (435,162) | (435,172) | (435,182) | (435,192) | (435,203) |
Total stockholders' equity | 66,036 | 64,877 | 64,867 | 64,858 | 64,848 | 64,838 | 64,828 | 64,818 | 64,808 | 64,797 |
Total liabilities and stockholders' equity | $ 66,136 | $ 64,877 | $ 64,867 | $ 64,858 | $ 64,848 | $ 64,838 | $ 64,828 | $ 64,818 | $ 64,808 | $ 64,797 |
ENERGEA PORTFOLIO 4 USA LLC - PHYTOPLANKTON PONUS RIDGE, LLC PROJECT | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
Revenue | $ 3,686 | $ 45,479 | $ 46,308 | $ 46,077 | $ 45,847 | $ 45,618 | $ 45,391 | $ 45,164 | $ 44,939 | $ 44,715 |
Costs and expenses: | ||||||||||
Operations and maintenance | 0 | 2,443 | 2,492 | 2,542 | 2,593 | 2,644 | 2,697 | 2,751 | 2,806 | 2,862 |
Insurance | 152 | 1,837 | 1,874 | 1,911 | 1,950 | 1,989 | 2,028 | 2,069 | 2,110 | 2,153 |
Banking fees | 110 | 1,212 | 1,236 | 1,261 | 1,286 | 1,312 | 1,338 | 1,365 | 1,392 | 1,420 |
Total costs and expenses | 262 | 5,492 | 5,602 | 5,714 | 5,828 | 5,945 | 6,064 | 6,185 | 6,309 | 6,435 |
Income from operations | 3,424 | 39,987 | 40,706 | 40,363 | 40,018 | 39,673 | 39,327 | 38,979 | 38,630 | 38,280 |
Interest and other income (expense), net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Depreciation and amortization | (430,494) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Income before provision for income taxes | (427,069) | 39,987 | 40,706 | 40,363 | 40,018 | 39,673 | 39,327 | 38,979 | 38,630 | 38,280 |
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income | $ (427,069) | $ 39,987 | $ 40,706 | $ 40,363 | $ 40,018 | $ 39,673 | $ 39,327 | $ 38,979 | $ 38,630 | $ 38,280 |
ENERGEA PORTFOLIO 4 USA LLC - PHYTOPLANKTON PONUS RIDGE, LLC PROJECT | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
Cash flows from operating activities | ||||||||||
Net income | $ (427,069) | $ 39,987 | $ 40,706 | $ 40,363 | $ 40,018 | $ 39,673 | $ 39,327 | $ 38,979 | $ 38,630 | $ 38,280 |
Adjustments in net income: | ||||||||||
Depreciation and amortization | 430,494 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Changes in assets and liabilities: | ||||||||||
Accounts receivable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts payable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net cash provided by operating activities | 3,424 | 39,987 | 40,706 | 40,363 | 40,018 | 39,673 | 39,327 | 38,979 | 38,630 | 38,280 |
Cash flows from investing activities | ||||||||||
Purchases of property and equipment, net | (494,821) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net cash used in investing activities | (494,821) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash flows from financing activities | ||||||||||
Issuance (repayment) of debt | 100 | (100) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance (reduction) of equity capital | 500,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Distributions paid to investors | (6,895) | (41,146) | (40,715) | (40,372) | (40,028) | (39,683) | (39,337) | (38,989) | (38,640) | (38,290) |
Net cash used in financing activities | 493,205 | (41,246) | (40,715) | (40,372) | (40,028) | (39,683) | (39,337) | (38,989) | (38,640) | (38,290) |
Net increase (decrease) in cash | 1,809 | (1,259) | (10) | (10) | (10) | (10) | (10) | (10) | (10) | (10) |
Cash at beginning of the period | 0 | 1,809 | 550 | 541 | 531 | 521 | 511 | 501 | 491 | 481 |
Cash at end of the period | $ 1,809 | $ 550 | $ 541 | $ 531 | $ 521 | $ 511 | $ 501 | $ 491 | $ 481 | $ 471 |
