EFTA Document EFTA01912215

To: Jeffrey EMeevacation@gmail.comj From: Richard Joslin Sent Sun 8/3/2014 2:50:24 PM Subject: Fwd: Trends and Reconciliation to Tax Returns I am looking as use of loans. Mostly to pay legal and M&A fees and TriNet is payroll Begin forwarded message: From: Richard Joslin Date: August 3, 2 To: John Murphy ileen Alexanderson Subject: RE: Trends and Reconciliation to Tax Returns There are a smattering of bank statements on dropbox. An extract from the July Chase statement summarizes large inflows and outflows (pasted below) — not sure if readable on handheld. Capital Infusion by equityholders — Canaan, Vroom, Levene, Mott, Kramlich = $412K; payments to Pillsbury Winthrop $235k, Trinet $153K; Sparring Capital Partners $30K. Sparring appears to be M&A advice. CANAAN IX CHRIS VROMM 116,666 20,000 CHRIS VROOM 33,333 53,333 DANIEL LEVENE 10,000 DANIEL LEVENE 15,000 25,000 KRAMLICH 16,666 16,666 TIM MOTT 100,000 TIM MOTT 200,000 100,000 EFTA_R1_00349427 EFTA01912215 411,665 PILLSBURY WINTHROP 100,000 PILLSBURY WINTHROP 135,000 235,000 TRINET 83,008 TRINET 3,378 TRINET 1,059 TRINET 15,022 TRINET 51,111 TRINET 153,970 392 SPARRING CAPITAL PTRS 30,000 30,000 418,970 From: John Murphy Sent: Friday, August 01, 201111 To: Richard Joslin; Eileen Alexanderson Subject: Trends and Reconciliation to Tax Returns Richard/Eileen, I have created a simple spreadsheet (ArtSpace Trends) that shows the major Income statements and Balance Sheet items by month. I will look at this to verify where the cash is going. In the meantime I also used this file to tie back the QB financials to the Tax Returns and highlight any differences. EFTA_R1_00349428 EFTA01912216 Note 2013 is based on accruals, while 2011 and 2012 was on a Cash basis. As I look at 2012 and 2013 the major differences are disallowable T&E for Tax purposes. Comparing the tax returns to the QB files this gives us a comfort level on the validity of the data. I will perform some substantial testing to verify salaries etc. (I will also question Catherine on some of the classification of 2011 expenses) I will keep you updated as I make progress. Regards, John. John Murphy COO/CFO Phaidon Press 65 Bleecker Street New York, NY 10012 phaidon.com EFTA_R1_00349429 EFTA01912217