CONFIDENTIAL: Private Investor Format Only · Not a Registered Public Securities Offering
Section VII · Financial Projections & Revenue Model

Fully Ramped Target Model, Not Current Actual Results

These figures model the flagship array's revenue and operating income once fully leased up across all four signed agreements and once the array reaches its full 1.2 MW design capacity. Only SunBit Mining Corporation is currently live; actual revenue today is materially lower.

Framing Callout

This model assumes the flagship array has reached full 1.2 MW capacity and that all four agreements, including the three not yet commenced, are simultaneously delivering their full modeled volume. The Florida Sun's actual current revenue is materially lower than the figures below and is expected to rise in stages as capacity and the remaining three agreements come online. Management has not disclosed an interim actual revenue figure in this prospectus.

Modeled Annual Contracted Revenue by Customer

At full ramp, once all four agreements are simultaneously live.

Total modeled contracted revenue: $109,500/yr once all four agreements are simultaneously live and the array is at full capacity.

Total Modeled Contracted Revenue
$109,500
Fully ramped target; annual, all four agreements fully leased up
Total Modeled Contracted Volume
2.15M kWh
Approx. 98% of flagship gross production
Weighted-Average Rate
$0.051/kWh
Blended across all four off-take agreements

By comparison, Florida commercial and cooperative retail electricity rates typically run $0.12–$0.19/kWh. The spread between that retail benchmark and The Florida Sun's $0.051/kWh blended contracted rate is the core of the margin story: customers receive a meaningful discount to grid alternatives, while The Florida Sun still captures healthy revenue on power it generates at near-zero marginal cost.

Modeled Volume Allocation by Customer (Fully Ramped Target)

Volume, Share of Total, and Revenue by Customer

CustomerModeled Annual Volume% of TotalModeled Annual Revenue
SunBit Mining Corporation950,000 kWh44.2%$38,000
Kasper Transactions550,000 kWh25.6%$27,500
9Core Compute400,000 kWh18.6%$24,000
DANI AI250,000 kWh11.6%$20,000
Total2,150,000 kWh100%$109,500

Scroll horizontally to see all columns.

Figures may not sum exactly due to rounding. Because only SunBit Mining Corporation has commenced delivery as of this prospectus, actual current volume reflects only that agreement and the array's present sub-scale output.

Modeled Flagship Operating Expenses (Annual, at Full Ramp)

Largely Fixed Costs That Don't Scale With Volume

CategoryModeled Annual Cost
Land lease / property tax$36,000
Insurance$4,500
Operations & maintenance (inverters, panel cleaning, vegetation)$6,000
Metering, interconnection & compliance$2,500
Corporate administration & overhead allocation$3,000
Total Modeled Operating Expense$52,000

Clay Electric Cooperative's net billing buyback (approx. 50 kWh, roughly 600 kWh/yr) is excluded from this schedule. It is a variable, unpublished avoided-cost credit paid to The Florida Sun, treated as immaterial to the model.

Modeled Contracted Revenue
$109,500
Fully ramped target; all four agreements, fully leased up
Modeled Operating Expense
$52,000
Flagship site, before financing costs and SBA debt service
Modeled Net Operating Income
$57,500
Fully ramped target, before financing costs and SBA debt service
Sensitivity Analysis

Modeled NOI Under Alternative Production Scenarios

Downside and upside cases scale modeled contracted revenue proportionally with production and hold modeled operating expense constant at $52,000; all three assume the array is at full capacity with all four agreements simultaneously live. Actual results during the current scale-up and staggered commencement period will be lower than any of these three scenarios.

ScenarioModeled Annual ProductionModeled Contracted RevenueModeled Net Operating Income
Downside case (−10% production)~1,935,000 kWh$98,550$46,550
Base case (management estimate)2,150,000 kWh$109,500$57,500
Upside case (+10% production)~2,365,000 kWh$120,450$68,450

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Depreciation & Federal Tax Incentive Considerations

MACRS, Bonus Depreciation & the Section 48E ITC

Under current federal law, utility-scale solar property like the flagship array is generally depreciated under the Modified Accelerated Cost Recovery System (MACRS) over a five-year recovery period. The One Big Beautiful Bill Act restored 100% first-year bonus depreciation for qualifying equipment placed in service after January 19, 2025, meaning The Florida Sun may be able to expense a substantial portion of the flagship array's depreciable basis in its first tax year, subject to at-risk and passive-activity limitations.

Separately, commercial solar projects may still qualify for the Section 48E federal Investment Tax Credit at a 30% rate, provided construction begins by July 4, 2026, and, because the flagship exceeds 1 MW AC, the project meets prevailing wage and apprenticeship requirements; projects that do not meet those requirements are limited to a lower 6% base credit rate. Management has not yet confirmed the flagship array's compliance status under these requirements, and any tax basis used for depreciation must be reduced by half of any investment tax credit claimed.

This is general information only, not tax advice. Sources: NuWatt Energy, “MACRS Accelerated Depreciation 2026: Complete Guide”; SurgePV, “Solar Tax Credit 2026: What Expired, What Remains, and How to Sell”, as referenced in the source prospectus.

Use of Proceeds (Illustrative)

Capital Structure Summary

Common Stock Only, Zero Shares Outstanding Today

Total Authorized10,000,000 shares
Outstanding Pre-Offering0
Offered This Placement1,500,000 shares
Price$1.00/share
Target Raise$1,500,000
Equity ClassSingle class common stock, no preferred
Reserved Post-Offering8,500,000 shares

8,500,000 shares remain authorized and unissued for future financing rounds, a management/incentive pool, and Board-directed reserves. Florida Sun Farms is separately utilizing SBA loan financing, alongside this equity raise, to help fund the flagship's physical build-out.

Tax Treatment Note for Common Shareholders

C-Corporation: No K-1, Potential Double Taxation

Florida Sun Farms is organized as a C-Corporation and files IRS Form 1120. Common shareholders in this placement do not receive a Schedule K-1 and are not taxed directly on The Florida Sun's income; rather, The Florida Sun itself is taxed on its earnings at the corporate level, and shareholders are taxed separately on any dividends the Board declares and on any gain realized upon a future sale of their shares. A C-Corporation structure can result in two layers of taxation, once at the corporate level and again at the shareholder level, on the same underlying earnings if and when they are distributed.

This tax treatment note is general information only and is not intended as tax advice specific to any individual investor's circumstances.

Read the Complete Risk Register

Every modeled figure on this page assumes full ramp. Section X of the source prospectus, reproduced in full on the Risk & Rights page, details what could prevent that ramp from occurring.

View Risk Factors & Shareholder Rights