TSC EcoSolutions LLC
Distribution Strategy Analysis
Executive Review for Partners
Executive Summary
3-Year Revenue & Net Income Forecast
Brandon's Analysis: After reviewing all cashflow statements and P&Ls, I have created a 3-year revenue and net profit forecast. This is based on ideal circumstances and does not forecast a major drop in metals prices as that is not the general market sentiment. Further down, you will see a chart that does take market fluctuation into account in terms of risk.
I am also presenting a new plan that takes somewhat of a compromised middle-ground between all of our desired outcomes:
- 1. We will lower our new Guaranteed Payments from $4k each to $2k each.
- 2. We will plan to purchase at least two gold coins each month to maintain our tax strategy and asset bolstering through metals swaps.
- 3. We will continue to pay at least $50k towards Money Metals loan each month.
The goal is to increase our monthly income, continue to hedge taxes, pay off our Money Metals debt quickly, and increase our flexibility in case of a market shift. Hopefully this report will clarify how this will accomplish those goals and the risk factors and guardrails to keep us from having to "claw back" any of our guaranteed payments.
Distribution Plan Comparison
Original Plan
Key Features:
- • Higher guaranteed monthly income
- • Traditional distribution approach
- • Limited flexibility during market stress
New Plan (Recommended)
Key Features:
- • Gold coin purchases (2 coins/month minimum)
- • Tax-optimized distribution timing
- • Auto-pause triggers for market stress
- • Strategic metals positioning
- • Compromised middle-ground approach
Operating Cash Flow Analysis
Monthly Cash Flow Breakdown
Cash Flow Insights
- • 2024 operating cash flow exceeded net income by 46.8%
- • Monthly cash generation provides reliable distribution base
- • Both plans comfortably covered by operating cash flow
- • Large "one-time" payments in 2025 disrupted cash flow: three large distributions, significant debt payments, and Jan's home payments
- • Cash flow challenges were internal management strategy decisions, not operational failures
Risk Assessment & Scenarios
Stress Test Results
| Scenario | Original Plan | New Plan |
|---|---|---|
| Normal Operations | 20% Risk | 10% Risk |
| Gold Drop (-10%) | 24% Risk | 12% Risk |
| High Volatility | 29% Risk | 15% Risk |
Risk Mitigation Features
- • Auto-pause at gold -20% or negative NI
- • Gold coin purchases can cease instantly
- • Maintain aggressive debt reduction
Debt Elimination Strategy
Debt Payoff Details
Both distribution plans maintain the aggressive $50k monthly debt reduction, ensuring loan elimination by late 2026.
Strategic Considerations
Original Plan Advantages
Higher Income Security
$16k monthly provides greater personal cash flow
Predictable Distributions
April and August payments at 30% reduction
Simple Structure
No additional complexity or market timing
Original Plan Risks
Higher Cash Commitment
$16k monthly during volatile periods
Limited Flexibility
Cannot adjust quickly during market stress
New Plan Advantages
Strategic Gold Position
$8k/month builds metals reserves during favorable cycle
Market Flexibility
Auto-pause triggers provide downside protection
Tax Optimization
Distribution timing aligned with tax strategy
New Plan Considerations
Lower Monthly Income
$8k reduction in guaranteed monthly distributions
Market Timing Risk
Gold purchases subject to price volatility
TSC EcoSolutions LLC - Financial Analysis
Both strategies are operationally viable. Decision should align with partners' risk tolerance and strategic objectives.