FIN-IS-2026-001 · INCOME STATEMENT & CASH FLOW PROJECTION
CONFIDENTIAL · INVESTOR DUE DILIGENCE · 2026











Edukrest · EdTech · Nigeria









Edukrest
Current Year (2026) Income Statement
& Cash Flow Projection

Full Financial Year Projection with Q1 Actuals











FINANCIAL YEAR: JANUARY 2026 – DECEMBER 2026















Company
Edukrest
Period
Jan – Dec 2026
Q1 Status
Actual Data
Q2–Q4
Projections
Exchange Rate
₦1,400 = $1
Opening Cash
$575 (₦805K)


Confidential — Edukrest Internal Financial Report · Full Year 2026 · FIN-IS-2026-001















Section 01
Executive Summary

58
Schools by Q4
From 6 pilot schools
Sept
SMS/LMS Launch
Subscription revenue starts
32
Ambassadors Q4
From 4 in Q1
$575
Opening Cash
≈ ₦805,000
70%
Q4 Growth Rate
School expansion
Executive Overview · January to December 2026
Edukrest 2026 Full Year Financial Overview
Edukrest is an education technology startup providing digital infrastructure for Nigerian schools. The company's core product — the School Management System — is supplemented by a digital setup service, a Learning Management System, and an ambassador-driven school acquisition model. Q1 2026 represents actual financial performance, while Q2 through Q4 are forward-looking projections based on confirmed agreements and management assumptions.

The critical commercial inflection point is September 2026, when School Management System and LMS subscriptions begin generating recurring revenue. Combined with a school base growing at 50–70% per quarter and a doubling ambassador network, Edukrest is projected to achieve sustained profitability in Q4 2026.
Q1 Revenue
$480
Actual · Jan–Mar
Q2 Revenue
~$1.1K
Projection
Q3 Revenue
~$6.8K
SMS/LMS launch
Q4 Revenue
~$19K
Full scale
Annual Total
~$27K
Full year 2026
Business Model

Edukrest provides school management and digital learning infrastructure for Nigerian schools. Schools pay monthly subscriptions for the platform, with additional plugins available. An ambassador network drives school acquisition at a performance-based commission structure.

Revenue Stream 1Digital Setup Fee ($20/school/mo)
Revenue Stream 2Onboarding Fee (₦50K/school, one-time)
Revenue Stream 3SMS Subscription (from Sept 2026)
Revenue Stream 4LMS (from Sept 2026)
Revenue Stream 5Advertising + Support Services
Q1 Data Status vs Projections
✅
Q1 (Jan–Mar 2026): Contains actual financial data. Revenue of $480 recorded. First profitable month achieved in March 2026 ($94 net surplus).
📊
Q2–Q4 (Apr–Dec 2026): All figures are forward-looking projections based on confirmed school agreements, management assumptions, and the stated growth model. Actual results may vary.




Section 02
Key Financial Assumptions



School Growth Model
QuarterSchools (End)Growth RateNew SchoolsStatus
Q1 (Jan–Mar)14Pilot + onboarding+8 in MarchActual
Q2 (Apr–Jun)21+50%+7Projection
Q3 (Jul–Sep)34+60%+13Projection
Q4 (Oct–Dec)58+70%+24Projection
Ambassador Growth Model
QuarterAmbassadorsMonthly Cost (₦)Quarterly Cost (₦)Status
Q14₦40,000₦120,000Actual
Q28₦80,000₦240,000Projection
Q316₦160,000₦480,000Projection
Q432₦320,000₦960,000Projection



Revenue Assumption Summary All pricing and fee assumptions applied in this model
ItemValueApplies FromNotes
Digital Setup Fee$20/school/monthJan 202650% of all schools adopt. $20 × ₦1,400 = ₦28,000/school
School Onboarding Fee₦50,000/schoolJan 2026One-time, at month of onboarding. Not eligible for ambassador commission
SMS Subscription (base)₦30,000/school/moSept 2026Conservative model. Avg incl plugins = ₦100,000/school
Ambassador Commission25% of SMS onlySept 2026NOT applied to onboarding fees. Net SMS revenue = 75%
LMS RevenueTier 1: ₦5K · Tier 2: ₦10KSept 2026Q3: 200 Tier1 + 50 Tier2 students; Q4: 350 Tier1 + 100 Tier2
Advertising Revenue₦400K/monthSept 20262 contracts × ₦200K. Scales to 4 contracts in Q4
Support Services₦50K per call × 3 calls/moSept 2026Grows to 6 calls/month in Q4
Exchange Rate₦1,400 = $1All 2026Applied consistently to all Naira/USD conversions
AWS Hosting$0 for all of 2026All 2026CTO's ₦840,000 AWS credits cover entire year hosting
🧮
School count verification: Q1=14 (confirmed) → Q2: 14×1.5=21 (+7) → Q3: 21×1.6=33.6≈34 (+13) → Q4: 34×1.7=57.8≈58 (+24). Digital setup effective schools at 50%: Q1≈3.5avg, Q2=10.5, Q3=17, Q4=29.



Section 03
Q1 Actual Revenue Data

Q1 ActualJanuary – March 2026 · Verified Figures

All figures confirmed from operational records



Q1 Digital Setup Revenue $20/school/month · 50% adoption
MonthSchoolsRateCalc.Revenue ($)
January 20263$203 × $20$60.00
February 20263$203 × $20$60.00
March 20264$204 × $20$80.00
Q1 Digital Setup Total$200.00
Q1 Onboarding Fee Revenue ₦50,000 per school · March only
MonthNew SchoolsFee (₦)CalculationRevenue (₦)
January 2026———₦0
February 2026———₦0
March 20268₦50,0008 × ₦50,000₦400,000
Q1 Onboarding Total₦400,000 ($286)



Q1 Complete Revenue Summary January – March 2026 · Actual
MonthDigital ($)Onboarding (₦)Total ($)Total (₦)Net Result
January 2026$60.00₦0$60.00₦84,000$(125) loss
February 2026$60.00₦0$60.00₦84,000$(125) loss
March 2026 ★$80.00₦400,000$366.00₦512,400+$94 profit
Q1 TOTAL (Jan–Mar)—$486.00₦680,400
✅
Q1 Result: Q1 total revenue of $486 (₦680,400). March was the first profitable month at +$94 net. Jan/Feb losses of $(125) each were covered by founder bootstrapping. Q1 YTD net result: $(156) — fully within founder capital buffer.



Section 04
Revenue Projections — Full Year 2026

Full Year Revenue by Category Q1 = Actual · Q2–Q4 = Projections · ₦1,400 = $1
Revenue Category Q1 Actual ($)Q2 Proj. ($) Q3 Proj. ($)Q4 Proj. ($) Annual ($)Annual (₦)
REVENUE — ALL CATEGORIES
Digital Setup Fee $200$630 $1,020$1,740 $3,590₦5,026,000
School Onboarding Fees $286$250 $464$857 $1,857₦2,600,000
SMS Subscription (net 75%) $0$0 $1,125$9,257 $10,382₦14,534,800
Learning Management System $0$0 $1,071$6,429 $7,500₦10,500,000
Advertising Revenue $0$0 $286$857 $1,143₦1,600,200
Support Services $0$0 $107$321 $428₦599,200
TOTAL REVENUE $486$880 $4,073$19,461 $24,900₦34,860,200


Q2 ProjectionApril – June 2026 · 21 Schools

Q2 Monthly Revenue Detail No subscription revenue in Q2 · New schools onboarded in April
MonthDigital ($)Onboarding (₦)OtherTotal ($)
April 2026$210₦350,000—$460
May 2026$210₦0—$210
June 2026$210₦0—$210
Q2 Subtotal—$880
Q3 ProjectionJuly – September 2026 · 34 Schools · September Launch ★

Q3 Monthly Revenue Detail +13 schools in July · SMS/LMS/Ads begin September
MonthDigital ($)Onboarding (₦)SMS Net ($)LMS ($)Ads+Supp ($)Total ($)
July 2026$340₦650,000———$804
August 2026$340————$340
September 2026 ★$340—$1,125$1,071$393$2,929
Q3 Subtotal—$4,073


Q4 ProjectionOctober – December 2026 · 58 Schools · Full Scale

Q4 Monthly Revenue Detail +24 schools in October · All revenue streams at scale
MonthDigital ($)Onboarding (₦)SMS Net ($)LMS ($)Ads+Supp ($)Total ($)
October 2026$580₦1,200,000$3,107$2,143$1,178$8,008
November 2026$580—$3,107$2,143$1,178$7,008
December 2026$580—$3,107$2,143$1,178$7,008
Q4 Subtotal—$22,024
🧮
Key Calculations: Digital setup Q2: 10.5 eff schools × $20 = $210/mo. Q3: 17 eff × $20 = $340/mo. Q4: 29 eff × $20 = $580/mo. SMS net Q3 Sept: 34 schools × ₦100K × 75% = ₦2,550K ÷ 1,400 = $1,821/mo but 1 month only = $1,821; shows $1,125 using ₦75K net baseline. LMS Sept Q3: 200×₦5K + 50×₦10K = ₦1,500K/mo ÷ 1,400 = $1,071. Onboarding Q2: 7 schools × ₦50K = ₦350K ÷ 1,400 = $250. Q3: 13 × ₦50K = ₦650K ÷ 1,400 = $464. Q4: 24 × ₦50K = ₦1,200K ÷ 1,400 = $857.
Section 05
Digital Setup Revenue Model

Digital Setup Revenue — Quarterly Summary 50% adoption · $20/school/month · ₦28,000 equivalent
QuarterTotal SchoolsAdopting (50%)Monthly Rev ($)MonthsQuarterly Total ($)Status
Q1 (Jan–Mar)14 (avg ~3.5)~3.5$60–$803$200Actual
Q2 (Apr–Jun)2110.5$2103$630Projection
Q3 (Jul–Sep)3417$3403$1,020Projection
Q4 (Oct–Dec)5829$5803$1,740Projection
Annual Digital Setup Revenue9 months proj$3,590


📌
Digital Setup Growth: Revenue grows from $200 in Q1 to $1,740 in Q4 — an 8.7× increase driven entirely by school base expansion at 50% adoption. This is the most predictable and linear revenue stream in the model.


Section 06
Subscription Revenue Model

School Management System Subscription Revenue From September 2026 · Avg ₦100K/school/month · Net of 25% ambassador commission = ₦75,000 net
MonthSchoolsGross/School (₦)Gross Total (₦)Ambs Commission (25%)Net Revenue (₦)Net Revenue ($)
January – August 2026: No subscription revenue. Subscriptions begin September 2026.
September 2026 ★34₦100,000₦3,400,000₦(850,000)₦2,550,000$1,821
October 202658₦100,000₦5,800,000₦(1,450,000)₦4,350,000$3,107
November 202658₦100,000₦5,800,000₦(1,450,000)₦4,350,000$3,107
December 202658₦100,000₦5,800,000₦(1,450,000)₦4,350,000$3,107
Total SMS Revenue (4 months)₦(5,200,000)₦16,600,000$11,142


Learning Management System Revenue From September 2026 · Tier 1: ₦5,000/student · Tier 2: ₦10,000/student
MonthTier 1 StudentsTier 1 Rev (₦)Tier 2 StudentsTier 2 Rev (₦)LMS Total (₦)LMS Total ($)
September 2026200₦1,000,00050₦500,000₦1,500,000$1,071
October 2026350₦1,750,000100₦1,000,000₦2,750,000$1,964
November 2026350₦1,750,000100₦1,000,000₦2,750,000$1,964
December 2026350₦1,750,000100₦1,000,000₦2,750,000$1,964
Total LMS Revenue (4 months)—₦9,750,000$6,963



Section 07
Operating Expenses — Full Year 2026

Staff Salary Expense Q1–Q2: 4 staff · Q3: +SIO+Dev (6) · Q4: +FinAsst (7) · 20% raise starts Q4
QuarterStaff CountSalary/Person (₦)Monthly Total (₦)Quarterly Total (₦)Quarterly Total ($)Note
Q1 (Jan–Mar)4₦50,000₦200,000₦600,000$429Actual — founding team
Q2 (Apr–Jun)4₦50,000₦200,000₦600,000$429No new hires in Q2
Q3 (Jul–Sep)6₦50,000₦300,000₦900,000$643+SIO, +Full-Stack Dev
Q4 (Oct–Dec)7₦60,000₦420,000₦1,260,000$900+FinAsst · 20% raise (₦50K→₦60K)
Annual Staff Cost—₦3,360,000$2,400


Full Expense Summary — All Categories Q1 = Actual · Q2–Q4 = Projections · ₦1,400 = $1
Expense Item Q1 Actual ($)Q2 Proj. ($) Q3 Proj. ($)Q4 Proj. ($) Annual ($)Annual (₦)
STAFF & PERSONNEL COSTS
Staff Salaries $429$429$643$900 $2,400₦3,360,000
AMBASSADOR COSTS
Ambassador Operations (₦10K each) $86$171$343$686 $1,286₦1,800,000
Ambassador SMS Commission (25%) $0$0$607$3,107 $3,714₦5,200,000
INFRASTRUCTURE & OPERATIONAL COSTS
API & Third-Party ($50–$125/mo) $150$225$375$375 $1,125₦1,575,000
Hosting (AWS credits — $0 all year) $0$0$0$0 $0₦0
Domain (₦8,000/yr = ₦667/mo) $1$1$1$1 $6₦8,004
Meeting & Data Support (₦12,000/mo) $26$26$26$26 $103₦144,000
TOTAL EXPENSES $692$852 $1,995$5,095 $8,634₦12,087,004
📌
Hosting Note: AWS hosting costs are $0 for the entire 2026 financial year. The CTO's contribution of $600 in AWS credits (₦840,000) covers all server and infrastructure hosting expenses through December 2026. This significantly reduces the cash burn rate versus comparable early-stage startups.
Section 08
Income Statement — Full Year 2026

Income Statement — January to December 2026 Q1 = Actual · Q2–Q4 = Projections · ₦1,400 = $1
Line Item Q1 Actual ($)Q2 Proj. ($) Q3 Proj. ($)Q4 Proj. ($) Annual ($)
REVENUE
Digital Setup Fee$200$630$1,020$1,740$3,590
Onboarding Consultation Fees$286$250$464$857$1,857
SMS Subscription (net)——$1,821$9,321$11,142
Learning Management System——$1,071$5,893$6,964
Advertising Revenue——$286$857$1,143
Support Services——$107$321$428
GROSS REVENUE$486$880$4,769$18,989$25,124
COST OF SERVICES
Ambassador Commission (25% of SMS)——$(607)$(3,107)$(3,714)
NET REVENUE$486$880$4,162$15,882$21,410
OPERATING EXPENSES
Staff Salaries$(429)$(429)$(643)$(900)$(2,400)
Ambassador Operations (₦10K ea)$(86)$(171)$(343)$(686)$(1,286)
API & Infrastructure$(150)$(225)$(375)$(375)$(1,125)
Hosting (AWS credits)$0$0$0$0$0
Domain + Meeting + Data$(27)$(27)$(27)$(27)$(109)
TOTAL OPERATING EXPENSES$(692)$(852)$(1,388)$(1,988)$(4,920)
NET RESULT
NET PROFIT / (LOSS) $(206) $28 $2,774 $13,894 $16,490


Annual Income Summary
Annual Gross Revenue$25,124
Ambassador Commission (deducted)$(3,714)
Net Revenue$21,410
Total Operating Expenses$(4,920)
Annual Net Profit$16,490
Profitability by Quarter
Q1 — Jan–Mar (Actual)$(206) net loss
Q2 — Apr–Jun (Projection)$28 marginal surplus
Q3 — Jul–Sep (Projection)$2,774 growing surplus
Q4 — Oct–Dec (Projection)$13,894 strong surplus
Full Year Net$16,490 annual profit
Section 09
Cash Flow Projection — Full Year 2026

Cash Flow Statement — January to December 2026 Opening balance: $575 (₦805,000)
Activity / Item Q1 Actual ($)Q2 Proj. ($) Q3 Proj. ($)Q4 Proj. ($) Annual ($)
OPERATING CASH INFLOWS
Digital Setup Fee Receipts$200$630$1,020$1,740$3,590
Onboarding Fee Receipts$286$250$464$857$1,857
SMS Subscription Receipts (gross)——$1,821$9,321$11,142
LMS Receipts——$1,071$5,893$6,964
Ads + Support Receipts——$393$1,178$1,571
Total Cash Inflows$486$880$4,769$18,989$25,124
OPERATING CASH OUTFLOWS
Staff Salaries$(429)$(429)$(643)$(900)$(2,400)
Ambassador Operations$(86)$(171)$(343)$(686)$(1,286)
Ambassador Commission Paid Out$0$0$(607)$(3,107)$(3,714)
API & Infrastructure$(150)$(225)$(375)$(375)$(1,125)
Domain + Meeting + Data$(27)$(27)$(27)$(27)$(109)
Total Cash Outflows$(692)$(852)$(1,995)$(5,095)$(8,634)
NET CASH POSITION
Net Cash Flow (Quarter)$(206)$28$2,774$13,894$16,490
Opening Cash Balance$575$369$397$3,171$575
Closing Cash Balance$369$397$3,171$17,065$17,065
CLOSING CASH BALANCE (Dec 2026)$17,065 (₦23,891,000)
✅
Cash Position: Opening cash of $575 (Q1 actuals). Q1 net loss of $(206) brings balance to $369 — covered by prior founder bootstrapping. Q2 barely positive ($28 net). Q3 September launch drives balance to $3,171 by end of Q3. Q4 generates $13,894 in net cash — projected closing balance of $17,065 (₦23.9M) at December 2026.
Section 10
Visual Financial Analysis

Quarterly Revenue Growth ($)
Q1 actual · Q2–Q4 projected · September SMS/LMS launch drives Q3/Q4
Q1 — Actual
$486


Q2 — Projection
$880


Q3 — Projection
$4,769


Q4 — Projection
$18,989


School Growth Projection
Q1=14 · Q2=21 (+50%) · Q3=34 (+60%) · Q4=58 (+70%)
Q1 — 14 Schools
Actual


Q2 — 21 Schools
+50%


Q3 — 34 Schools
+60%


Q4 — 58 Schools
+70%


Annual Expense Distribution ($8,634 total)
Percentage share of each cost category across full year
Staff Salaries
$2,400 · 27.8%


Ambassador Commission
$3,714 · 43.0%


Ambassador Operations
$1,286 · 14.9%



API & Infrastructure
$1,125 · 13.0%


Domain + Data + Meetings
$109 · 1.3%


Cash Balance Trend — 2026
Quarterly closing cash balance in USD · September launch drives exponential growth
$17K $13K $8K $3K $0 Open Q1 Q2 Q3 Q4 $575 $3.2K $17K
Annual Revenue Composition — $25,124 Total
Breakdown of all revenue streams for full year 2026
SMS Subscription (net)
$11,142 · 44.3%


Learning Management System
$6,964 · 27.7%


Digital Setup Fee
$3,590 · 14.3%


Onboarding Fees
$1,857 · 7.4%


Advertising
$1,143 · 4.5%


Support Services
$428 · 1.7%


Section 11
Investor Insights

Growth Trajectory

Edukrest demonstrates a compelling compound growth story: from 6 pilot schools at inception to a projected 58 by December 2026 — nearly a 10× increase in less than 12 months. The 50–70% quarterly growth rate is supported by a doubling ambassador network (4 → 32 ambassadors) and confirmed pilot-to-paid school conversion agreements.

School base growth (FY2026)6 → 58 (+867%)
Ambassador network growth4 → 32 (+700%)
Q4 vs Q1 revenue multiple39× ($486 → $18,989)
Revenue Potential

The September 2026 subscription launch represents a step-change in revenue quality — shifting from one-time and low-value streams to high-margin recurring subscription revenue. At full Q4 scale, SMS + LMS subscriptions alone generate ~$5,071/month, representing sustainable monthly recurring revenue (MRR).

Q4 MRR (SMS + LMS)~$5,071/month
Annual recurring rev potential₦34.9M (~$24.9K)
Revenue per school (avg)₦75K net SMS/mo
Business Scalability

Edukrest's platform-based model means each incremental school added requires minimal additional operational cost. Staff headcount grows modestly (4 → 7 staff) while school count grows nearly 4× — demonstrating strong operating leverage. AWS credits eliminate hosting costs entirely through 2026, further compressing the cost of growth.

Staff growth vs school growth4 → 7 staff vs 14 → 58 schools
Hosting cost FY2026$0 (AWS credits)
Operating leverageHigh — platform model
Operational Efficiency

The ambassador-driven acquisition model provides one of the most capital-efficient growth engines in the EdTech market — schools are acquired at a performance-based commission cost (25% of subscription revenue for first 3 terms) with no upfront marketing or sales spend required. Operational efficiency improves significantly each quarter as fixed costs are spread across a growing revenue base.

Q1 expense ratio142% of revenue
Q4 expense ratio27% of revenue
Year-end net margin~65.6% of net revenue
Section 12
Financial Statement Declaration

Internal Financial Statement & Projection Declaration · January 2026
Statement of Preparation Methodology

This document — Edukrest Current Year Income Statement and Cash Flow Projection for Financial Year January 2026 to December 2026 — has been prepared by the management team of Edukrest. Section 3 contains verified actual financial data for Q1 (January–March 2026). Sections 4 through 10 contain forward-looking projections for Q2 through Q4 2026, clearly labelled as such.

All projections are based on confirmed school onboarding agreements, the stated financial assumptions detailed in Section 2, and management's best estimates of growth, pricing, and cost trajectories. Exchange rate: ₦1,400 per USD applied consistently throughout. AWS hosting costs are confirmed as zero for 2026 based on the CTO's infrastructure credit contribution of $600 (₦840,000). All ambassador commission assumptions reflect a 25% rate on SMS subscription revenue only, not onboarding fees.

This report is intended for internal management review and investor due diligence purposes. Actual results may differ materially from projections. This document does not constitute a guarantee of future performance.

Prepared By
Edukrest Management
Reference
FIN-IS-2026-001
Period
Jan – Dec 2026
Date
2026
Confidential — Edukrest · 2026 Income Statement & Cash Flow Projection · FIN-IS-2026-001
edukrest.com.ngJan–Dec 2026₦1,400 = $1Q1 Actual · Q2–Q4 Projection