Page 2 - 2021 Noteholder Letter.Financial Report

Office:
(508)-681-8401
P.O. Box 246
Cotuit, MA 02635
Production Facility:
Owensboro, KY 42301

Dear Noteholders,

On behalf of the Green Mountain Firewood Company (GMF) family, I hope you and your loved ones are
safe during these challenging times linked to Covid-19.

While 2020 was a tumultuous year for businesses due to Covid-19, 2020 was the best year in GMF’s
history.

Since assuming my position as the President and CEO of GMF November 30, 2020, we immediately
implemented auditing of our COGS, production capacity utilization, production efficiency, as well as the
status of each key sales account. After completion of each audit, we reduced COGS 10%, increased
production capacity 11%, reduced labor costs 5%, and improved the messaging on our product
packaging all by the end of December and all without compromising product quality.

By the end of December, we also made changes to our sales strategy and key account management
which resulted in $206,640 of new sales for the month of December, but an additional $540,780 for the
first six weeks of 2021 - all of which have been executed and invoiced. We have an additional $619,920
of orders scheduled for the remaining six weeks of the first quarter of 2021. The changes in operational
and sales management combined with closer relationships with our customers will result in GMF
eclipsing sales revenue of $1,367,340 by the end of the first quarter of 2021.

As you can see, 2020 confirmed the values and assumptions upon which GMF was incorporated were
correct and in demand by retailers and consumers alike.
Financial Results

GMF crossed the chasm of a company with a unique but unproven product line and business model to a
company with a product line and business model retailers and consumers alike began adopting. Key
achievements and strong demand from retailers that commenced in December, 2020 are detailed below
and provide a promising and profitable outlook for GMF in 2021 and beyond.

Revenue: GMF increased its revenue from $49,916.35 in 2019 to $163,011.58 during 2020.

Net Income: Net income was -$235,964.18 but this number is misleading. GMF incurred all COGS during
the month of December 2020 for its new customer Home Depot, but GMF will not recognize the
revenue from December sales of $206, 640 until late February 2021. If GMF applies the revenue from its
first sales to Home Depot in mid-December 2020, GMF’s 2020 net income would come in at -$19,324.18
– a significant improvement on 2019’s net loss of $204, 721.21.

Expenses: The COGS-optimization initiatives we introduced to GMF in December 2020 reduced GMF’s
COGS by nearly 10% during December alone.

www.greenmountainfirewood.com
Green Mountain Firewood - 2021