bubble and bee organic - historical financial information

Bubble and Bee Organic - Historical Financial Information Balance Sheet

Income Statement 2013

Assets Current Assets Cash Receivables Inventories Total Current Assets Fixed Assets PP&E Less Depreciation Total Fixed Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Long Term Liabilities Total Liabilities Shareholder's Equity Member's Equity Retained Earnings Total Shareholder's Equity Total Liabilities and Shareholder's Equity

Base Case Assumptions 1 Revenue Growth of about 15% per year Unit Demand Average Selling Price 2 COGS % as a % of Revenues 3 Selling Expense as a % of Sales 4 General and Administrative Expense G&A as a % of Revenue Rent Option Buy Option Total Fixed G&A Expense 5 Depreciation Expense Existing Equipment Building - 30 years New Equipment Total 6 Interest Rate on 20 year loan 7 Tax Rate NA due to LLC 8 Receivables as a % of Revenues 9 Inventory as a % of Revenues 10 Accounts Payable as a % Revenues 11 Accrued Liabilities % of Sales 12 Equity only financing 13 Additions to PP&E 14 Dividends - Owner Draws if cash balance >50,000 15 Additions to Debt - Bank Loan 16 (Reductions) to Debt - Bank Loan 17 Additions to Debt - Long Term Debt 18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567 32,375 131,250 189,192

43,008 35,525 143,937 222,470

233,341 40,852 163,406 437,599

342,469 46,980 187,919 577,368

640,954 54,027 216,106 911,087

395,785 95,221 300,564

470,185 190,442 279,743

470,185 285,663 184,522

570,185 390,884 179,301

570,185 496,105 74,080

489,756

502,213

622,121

756,669

985,167

44,625 201,796 246,421 246,421

53,286 159,579 212,865 212,865

81,703 81,703 81,703

93,959 93,959 93,959

108,053 108,053 108,053

175,000 68,335 243,335

175,000 114,348 289,348

175,000 365,417 540,417

175,000 487,709 662,709

175,000 702,113 877,113

489,756 -

502,213 -

622,121 -

756,669 -

985,167 -

2014

$

15% 126,869 14.00 $

95,221 95,221

2015

2016

143,339 14.25 $ 20% 25%

2017

161,999 14.50 $ 21% 26%

183,141 14.75 21% 27%

5% 675,000 600,000 1,275,000

5% 725,000 650,000 1,375,000

5% 775,000 700,000 1,475,000

95,221 36,667 131,888

95,221 36,667 10,000 141,888

95,221 36,667 10,000 141,888

5% 0% 2% 8% 4%

175,000 -

5% 0% 2% 8% 4%

100,000 175,000

5% 0% 2% 8% 4%

175,000

Revenues Cost of Goods Sold Gross Margin Expenses Selling General & Administrative Variable General & Administrative Fixed Depreciation Total Expenses EBIT Net Interest Expense Taxable Income Taxes Net Income Cash Flow Statement Cash Provided (used) by Operations Net Income Plus Depreciation Change in Working Capital Decrease (increase) in Receivables Decrease (increase) in Inventory Increase (decrease) in Accts. Payable Increase (decrease) in Accrued Liabilities Cash Provided (used) by Operations Cash Provided (used) by Investments Additions to PP&E Other Investments Cash Provided (used) by Investments Cash Provided (used) by Financing Activities Additions (reductions) to Debt Net issues of Stock (Dividends - Owner Draws) Cash Provided (used) by Financing Activities Net increase (decrease) in cash

2014 1,776,168 357,597 1,418,571

2015 2,042,581 408,516.15 1,634,065

2016 2,348,986 493,287 1,855,699

2017 2,701,330 567,279 2,134,051

439,512 572,776 82,514 95,221 1,190,023 228,548 7,535 221,013 221,013

510,645 102,129 675,000 95,221 1,382,995 251,069 251,069 251,069

610,736 117,449 725,000 105,221 1,558,407 297,292 297,292 297,292

729,359 135,066 775,000 105,221 1,744,647 389,404 389,404 389,404

221,013 95,221

251,069 95,221

297,292 105,221

389,404 105,221

(3,150) (12,687) 8,661 309,058

(5,327) (19,469) 28,417 349,912

(6,128) (24,512) 12,256 384,129

(7,047) (28,188) 14,094 473,484

(74,400) (74,400)

-

(100,000)

-

-

(100,000)

-

(42,217) (175,000) (217,217) 17,441

(159,579) (159,579) 190,333

(175,000) (175,000) 109,129

(175,000) (175,000) 298,484

365 Lill's RATIO ANALYSIS Liquidity Ratios Current ratio Quick ratio Conversion Period Ratios Inventory-to-sale Convestsion period Sale-to cash Conversion Period Purchase-to-payment Conversion Period Cash conversion cycle Leverage Ratios Total debt to total assets Interest coverage Profitability Ratios Gross profit margin Operating profit margin Net profit margin NOPAT margin Efficiency and Return Ratios Sales to total assets Operating return on assets Return on assets Return on equity DuPont and ROE Net profit margin Sales to tatal assets Total assets to Total Equity ROE Analysis

2014

2015

2016

0.90 0.30

2.24 1.20

5.78 3.78

140.44 6.98 49.97 97.45

137.30 6.82 60.30 83.82

129.98 6.82 64.99 71.81

0.46 42.97 N/A 0.80

0.26

0.13 N/A

0.80 ### ### ###

0.79 ### ### ###

### ### ###

3.58 0.46 0.45 0.83

3.63 0.45 0.45 0.61

3.41 0.43 0.43 0.49

0.12 3.58 1.86 0.83

0.12 3.63 1.36 0.61

0.13 3.41 1.15 0.49

2017

7.37 5.37 129.98 6.82 64.99 71.81 0.12 N/A 0.79 ### ### ### 3.10 0.45 0.45 0.51 0.14 3.10 1.13 0.51

Bubble and Bee Organic - Historical Financial Information Balance Sheet

Income Statement 2013

Assets Current Assets Cash Receivables Inventories Total Current Assets Fixed Assets PP&E Less Depreciation Total Fixed Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Long Term Liabilities Total Liabilities Shareholder's Equity Member's Equity Retained Earnings Total Shareholder's Equity Total Liabilities and Shareholder's Equity

Base Case Assumptions 1 Revenue Growth of about 15% per year Unit Demand Average Selling Price 2 COGS % as a % of Revenues 3 Selling Expense as a % of Sales 4 General and Administrative Expense G&A as a % of Revenue Rent Option Buy Option Total Fixed G&A Expense 5 Depreciation Expense Existing Equipment Building - 30 years New Equipment Total 6 Interest Rate on 20 year loan 7 Tax Rate NA due to LLC 8 Receivables as a % of Revenues 9 Inventory as a % of Revenues 10 Accounts Payable as a % Revenues 11 Accrued Liabilities % of Sales 12 Equity only financing 13 Additions to PP&E 14 Dividends - Owner Draws if cash balance >50,000 15 Additions to Debt - Bank Loan 16 (Reductions) to Debt - Bank Loan 17 Additions to Debt - Long Term Debt 18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567 32,375 131,250 189,192

43,008 35,525 143,937 222,470

130,074 36,158 144,631 310,862

186,179 36,792 147,168 370,139

113,795 37,426 149,705 300,927

395,785 95,221 300,564

470,185 190,442 279,743

470,185 285,663 184,522

570,185 390,884 179,301

570,185 496,105 74,080

489,756

502,213

495,384

549,440

375,007

44,625 201,796 246,421 246,421

53,286 159,579 212,865 212,865

72,315 72,315 72,315

73,584 73,584 73,584

74,853 74,853 74,853

175,000 68,335 243,335

175,000 114,348 289,348

175,000 248,069 423,069

175,000 300,856 475,856

175,000 125,154 300,154

489,756 -

502,213 -

495,384 -

549,440 -

375,007 -

2014

$

15% 126,869 14.00 $

95,221 95,221

2015

2016

126,869 14.25 $ 20% 25%

2017

126,869 14.50 $ 21% 26%

126,869 14.75 21% 27%

5% 675,000 600,000 1,275,000

5% 725,000 650,000 1,375,000

5% 775,000 700,000 1,475,000

95,221 36,667 131,888

95,221 36,667 10,000 141,888

95,221 36,667 10,000 141,888

5% 0% 2% 8% 4%

175,000 -

5% 0% 2% 8% 4%

100,000 175,000

5% 0% 2% 8% 4%

175,000

Revenues Cost of Goods Sold Gross Margin Expenses Selling General & Administrative Variable General & Administrative Fixed Depreciation Total Expenses EBIT Net Interest Expense Taxable Income Taxes Net Income Cash Flow Statement Cash Provided (used) by Operations Net Income Plus Depreciation Change in Working Capital Decrease (increase) in Receivables Decrease (increase) in Inventory Increase (decrease) in Accts. Payable Increase (decrease) in Accrued Liabilities Cash Provided (used) by Operations Cash Provided (used) by Investments Additions to PP&E Other Investments Cash Provided (used) by Investments Cash Provided (used) by Financing Activities Additions (reductions) to Debt Net issues of Stock (Dividends - Owner Draws) Cash Provided (used) by Financing Activities Net increase (decrease) in cash

2014 1,776,168 357,597 1,418,571

2015 1,807,883 361,576.65 1,446,307

2016 1,839,601 386,316 1,453,284

2017 1,871,318 392,977 1,478,341

439,512 572,776 82,514 95,221 1,190,023 228,548 7,535 221,013 221,013

451,971 90,394 675,000 95,221 1,312,586 133,721 133,721 133,721

478,296 91,980 725,000 105,221 1,400,497 52,787 52,787 52,787

505,256 93,566 775,000 105,221 1,479,043 (702) (702) (702)

221,013 95,221

133,721 95,221

52,787 105,221

(702) 105,221

(3,150) (12,687) 8,661 309,058

(633) (694) 19,029 246,645

(634) (2,537) 1,269 156,105

(634) (2,537) 1,269 102,616

(74,400) (74,400)

-

(100,000)

-

-

(100,000)

-

(42,217) (175,000) (217,217) 17,441

(159,579) (159,579) 87,066

56,105

(175,000) (175,000) (72,384)

365 Lill's RATIO ANALYSIS Liquidity Ratios Current ratio Quick ratio Conversion Period Ratios Inventory-to-sale Convestsion period Sale-to cash Conversion Period Purchase-to-payment Conversion Period Cash conversion cycle Leverage Ratios Total debt to total assets Interest coverage Profitability Ratios Gross profit margin Operating profit margin Net profit margin NOPAT margin Efficiency and Return Ratios Sales to total assets Operating return on assets Return on assets Return on equity DuPont and ROE Net profit margin Sales to tatal assets Total assets to Total Equity ROE Analysis

2014

2015

2016

0.90 0.30

1.87 0.81

4.67 2.45

140.44 28.28 49.97 118.75

145.65 29.13 63.40 111.38

137.85 28.95 68.92 97.87

0.46 42.97 N/A 0.80

0.29

0.14 N/A

0.80 ### ### ###

0.79 ### ### ###

### ### ###

3.58 0.46 0.45 0.83

3.62 0.27 0.27 0.38

3.52 0.10 0.10 0.12

0.12 3.58 1.86 0.83

0.07 3.62 1.40 0.38

0.03 3.52 1.16 0.12

2017

4.52 4.17 137.87 28.95 68.93 97.89 0.16 N/A 0.79 ### ### ### 4.05 0.00 0.00 0.00 0.00 4.05 1.19 0.00

Bubble and Bee Organic - Historical Financial Information Balance Sheet

Income Statement 2013

Assets Current Assets Cash Receivables Inventories Total Current Assets Fixed Assets PP&E Less Depreciation Total Fixed Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Long Term Liabilities Total Liabilities Shareholder's Equity Member's Equity Retained Earnings Total Shareholder's Equity Total Liabilities and Shareholder's Equity

Base Case Assumptions 1 Revenue Growth of about 15% per year Unit Demand Average Selling Price 2 COGS % as a % of Revenues 3 Selling Expense as a % of Sales 4 General and Administrative Expense G&A as a % of Revenue Rent Option Buy Option Total Fixed G&A Expense 5 Depreciation Expense Existing Equipment Building - 30 years New Equipment Total 6 Interest Rate on 20 year loan 7 Tax Rate NA due to LLC 8 Receivables as a % of Revenues 9 Inventory as a % of Revenues 10 Accounts Payable as a % Revenues 11 Accrued Liabilities % of Sales 12 Equity only financing 13 Additions to PP&E 14 Dividends - Owner Draws if cash balance >50,000 15 Additions to Debt - Bank Loan 16 (Reductions) to Debt - Bank Loan 17 Additions to Debt - Long Term Debt 18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567 32,375 131,250 189,192

43,008 35,525 143,937 222,470

118,901 40,852 163,406 323,159

223,589 46,980 187,919 458,488

517,633 54,027 216,106 787,766

395,785 95,221 300,564

470,185 190,442 279,743

1,570,185 322,330 1,247,855

1,670,185 464,218 1,205,967

1,670,185 606,106 1,064,079

489,756

502,213

1,571,014

1,664,455

1,851,845

44,625 201,796 246,421 246,421

53,286 159,579 212,865 212,865

81,703 81,703 960,060 1,041,763

93,959 93,959 928,623 1,022,582

108,053 108,053 895,614 1,003,667

175,000 68,335 243,335

175,000 114,348 289,348

175,000 354,250 529,250

175,000 466,872 641,872

175,000 673,178 848,178

489,756 -

502,213 -

1,571,014 -

1,664,455 -

1,851,845 -

2015

2016

2017

2014

$

15% 126,869 14.00 $

95,221 95,221

143,339 14.25 $ 20% 25%

161,999 14.50 $ 21% 26%

183,141 14.75 21% 27%

5% 675,000 600,000 1,275,000

5% 725,000 650,000 1,375,000

5% 775,000 700,000 1,475,000

95,221 36,667 131,888

95,221 36,667 10,000 141,888

95,221 36,667 10,000 141,888

5% 0% 2% 8% 4%

5% 0% 2% 8% 4%

5% 0% 2% 8% 4%

990,000 (159,579) 990,000

100,000 -

175,000

-

-

Revenues Cost of Goods Sold Gross Margin Expenses Selling General & Administrative Variable General & Administrative Fixed Depreciation Total Expenses EBIT Net Interest Expense Taxable Income Taxes Net Income Cash Flow Statement Cash Provided (used) by Operations Net Income Plus Depreciation Change in Working Capital Decrease (increase) in Receivables Decrease (increase) in Inventory Increase (decrease) in Accts. Payable Increase (decrease) in Accrued Liabilities Cash Provided (used) by Operations Cash Provided (used) by Investments Additions to PP&E Other Investments Cash Provided (used) by Investments Cash Provided (used) by Financing Activities Additions (reductions) to Debt Net issues of Stock (Dividends - Owner Draws) Cash Provided (used) by Financing Activities Net increase (decrease) in cash

2014 1,776,168 357,597 1,418,571

2015 2,042,581 408,516.15 1,634,065

2016 2,348,986 493,287 1,855,699

2017 2,701,330 567,279 2,134,051

439,512 572,776 82,514 95,221 1,190,023 228,548 7,535 221,013 221,013

510,645 102,129 600,000 131,888 1,344,662 289,402 49,500 239,902 239,902

610,736 117,449 650,000 141,888 1,520,074 335,625 48,003 287,622 287,622

729,359 135,066 700,000 141,888 1,706,314 427,737 46,431 381,306 381,306

221,013 95,221

239,902 131,888

287,622 141,888

381,306 141,888

(3,150) (12,687) 8,661 309,058

(5,327) (19,469) 28,417 375,412

(6,128) (24,512) 12,256 411,126

(7,047) (28,188) 14,094 502,053

(74,400) (74,400)

(1,100,000)

(100,000)

-

(1,100,000)

(100,000)

-

(42,217) (175,000) (217,217) 17,441

800,481 -

(31,437) (175,000) (206,437) 104,689

(33,009) (175,000) (208,009) 294,044

800,481 75,893

365 Lill's RATIO ANALYSIS Liquidity Ratios Current ratio Quick ratio Conversion Period Ratios Inventory-to-sale Convestsion period Sale-to cash Conversion Period Purchase-to-payment Conversion Period Cash conversion cycle Leverage Ratios Total debt to total assets Interest coverage Profitability Ratios Gross profit margin Operating profit margin Net profit margin NOPAT margin Efficiency and Return Ratios Sales to total assets Operating return on assets Return on assets Return on equity DuPont and ROE Net profit margin Sales to tatal assets Total assets to Total Equity ROE Analysis

2014

2015

2016

0.90 0.30

1.85 0.81

4.45 2.45

140.44 6.98 49.97 97.45

137.30 6.82 60.30 83.82

129.98 6.82 64.99 71.81

0.46 42.97

0.61 7.77

0.64 9.18

0.80

0.80 # # #

0.79 # # #

3.58 0.46 0.45 0.83

1.97 0.28 0.23 0.59

1.45 0.21 0.18 0.49

0.12 3.58 1.86 0.83

0.12 1.97 1.36 0.59

0.12 1.45 1.15 0.49

### ### ###

2017

6.17 4.17 129.98 6.82 64.99 71.81 0.58 11.48 0.79 # # # 1.54 0.24 0.22 0.51 0.14 1.54 1.13 0.51

Bubble and Bee Organic - Historical Financial Information Balance Sheet

Income Statement 2013

Assets Current Assets Cash Receivables Inventories Total Current Assets Fixed Assets PP&E Less Depreciation Total Fixed Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Long Term Liabilities Total Liabilities Shareholder's Equity Member's Equity Retained Earnings Total Shareholder's Equity Total Liabilities and Shareholder's Equity

Base Case Assumptions 1 Revenue Growth of about 15% per year Unit Demand Average Selling Price 2 COGS % as a % of Revenues 3 Selling Expense as a % of Sales 4 General and Administrative Expense G&A as a % of Revenue Rent Option Buy Option Total Fixed G&A Expense 5 Depreciation Expense Existing Equipment Building - 30 years New Equipment Total 6 Interest Rate on 20 year loan 7 Tax Rate NA due to LLC 8 Receivables as a % of Revenues 9 Inventory as a % of Revenues 10 Accounts Payable as a % Revenues 11 Accrued Liabilities % of Sales 12 Equity only financing 13 Additions to PP&E 14 Dividends - Owner Draws if cash balance >50,000 15 Additions to Debt - Bank Loan 16 (Reductions) to Debt - Bank Loan 17 Additions to Debt - Long Term Debt 18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567 32,375 131,250 189,192

43,008 35,525 143,937 222,470

15,634 36,158 144,631 196,422

67,299 36,792 147,168 251,259

165,475 37,426 149,705 352,607

395,785 95,221 300,564

470,185 190,442 279,743

1,570,185 322,330 1,247,855

1,670,185 464,218 1,205,967

1,670,185 606,106 1,064,079

489,756

502,213

1,444,277

1,457,226

1,416,686

44,625 201,796 246,421 246,421

53,286 159,579 212,865 212,865

72,315 72,315 960,060 1,032,375

73,584 73,584 928,623 1,002,207

74,853 74,853 895,614 970,467

175,000 68,335 243,335

175,000 114,348 289,348

175,000 236,902 411,902

175,000 280,019 455,019

175,000 271,219 446,219

489,756 -

502,213 -

1,444,277 -

1,457,226 -

1,416,686 -

2015

2016

2017

2014

$

15% 126,869 14.00 $

95,221 95,221

126,869 14.25 $ 20% 25%

126,869 14.50 $ 21% 26%

126,869 14.75 21% 27%

5% 675,000 600,000 1,275,000

5% 725,000 650,000 1,375,000

5% 775,000 700,000 1,475,000

95,221 36,667 131,888

95,221 36,667 10,000 141,888

95,221 36,667 10,000 141,888

5% 0% 2% 8% 4%

175,000 -

5% 0% 2% 8% 4%

100,000 175,000

5% 0% 2% 8% 4%

175,000

Revenues Cost of Goods Sold Gross Margin Expenses Selling General & Administrative Variable General & Administrative Fixed Depreciation Total Expenses EBIT Net Interest Expense Taxable Income Taxes Net Income Cash Flow Statement Cash Provided (used) by Operations Net Income Plus Depreciation Change in Working Capital Decrease (increase) in Receivables Decrease (increase) in Inventory Increase (decrease) in Accts. Payable Increase (decrease) in Accrued Liabilities Cash Provided (used) by Operations Cash Provided (used) by Investments Additions to PP&E Other Investments Cash Provided (used) by Investments Cash Provided (used) by Financing Activities Additions (reductions) to Debt Net issues of Stock (Dividends - Owner Draws) Cash Provided (used) by Financing Activities Net increase (decrease) in cash

2014 1,776,168 357,597 1,418,571

2015 1,807,883 361,576.65 1,446,307

2016 1,839,601 386,316 1,453,284

2017 1,871,318 392,977 1,478,341

439,512 572,776 82,514 95,221 1,190,023 228,548 7,535 221,013 221,013

451,971 90,394 600,000 131,888 1,274,253 172,054 49,500 122,554 122,554

478,296 91,980 650,000 141,888 1,362,164 91,120 48,003 43,117 43,117

505,256 93,566 700,000 141,888 1,440,710 37,631 46,431 (8,800) (8,800)

221,013 95,221

122,554 131,888

43,117 141,888

(8,800) 141,888

(3,150) (12,687) 8,661 309,058

(633) (694) 19,029 272,145

(634) (2,537) 1,269 183,102

(634) (2,537) 1,269 131,185

(74,400) (74,400)

(1,100,000)

(100,000)

-

(1,100,000)

(100,000)

-

(42,217) (175,000) (217,217) 17,441

800,481

(31,437)

(33,009)

800,481 (27,374)

(31,437) 51,665

(33,009) 98,176

365 Lill's RATIO ANALYSIS Liquidity Ratios Current ratio Quick ratio Conversion Period Ratios Inventory-to-sale Convestsion period Sale-to cash Conversion Period Purchase-to-payment Conversion Period Cash conversion cycle Leverage Ratios Total debt to total assets Interest coverage Profitability Ratios Gross profit margin Operating profit margin Net profit margin NOPAT margin Efficiency and Return Ratios Sales to total assets Operating return on assets Return on assets Return on equity DuPont and ROE Net profit margin Sales to tatal assets Total assets to Total Equity ROE

2014

2015

2016

0.90 0.30

1.47 0.46

3.07 1.07

140.44 6.98 49.97 97.45

145.65 7.24 63.40 89.49

137.85 7.24 68.92 76.16

0.46 42.97

0.64 #DIV/0!

0.70 #DIV/0!

0.80

0.80

0.79

### ### ###

### ### ###

### ### ###

3.58 0.46 0.45 0.83

1.86 0.18 0.13 0.35

1.27 0.06 0.03 0.10

0.12 3.58 1.86 0.83

0.07 1.86 2.78 0.35

0.02 1.27 3.35 0.10

2017

4.07 2.07 137.87 7.24 68.93 76.17 0.69 #DIV/0! 0.79 ### ### ### 1.30 0.03 -0.01 -0.02 0.00 1.30 3.19 -0.02

1. In what ways have B&B’s philosophy and the entrepreneur’s personal values impacted decision to grow and finance their business? Since B&B's philosophy is to finance their business by keeping ownership to protect their products and the business model that Stephanie and Steve established, they managed their business with free cash flow and debts.

2. What are the pros and cons of B&B’s owners wanting to keep 100% control of their business?

Keeping 100% owneship will benefit Stephanie and Steve in terms of control in their business and stress. They would not have to be forced to change their business model or make undesirable desicions because of another owner. Moreover, There would be less pressure from external environment since no one could tell them what to do for their business although that means they are responsible for all the decisions they make. The other disadvantage of keeping 100% ownersh in B&B's case is that their growth speed might be slow from not having enough capital. If their competitors were growing faster than them, the odds would be against them unless their products or services are remarkably well enough to keep their customers.

alues impacted decisions

hip to protect their ey managed their

trol of their business?

ontrol in their business del or make undesirable re from external hough that means they keeping 100% ownership ough capital. If their em unless their products