HF Trial Cashflow — Where the $34,354.84 Goes

3-month engagement with Hundredfold (May 4 → Aug 31, 2026). $300 per appeal during trial; $10K monthly floor; partial month for May (Engagement Letter signed 5/4). This is the math, in the order it actually happens.

Trial Total Inbound

$34,354.84

Across 4 invoices · May (partial) + June + July + August

The Waterfall

Top-line revenue

$34,354.84

Ryan's commission15% off the top

$5,153.23

Sales-rep agreement; deducted before the OBB partners see anything.

Post-Ryan available to OBB

$29,201.61

Relic Reserve25% of post-Ryan

$7,300.40

Operating fund: mini hardware, domains, software subs, infra. Not partner income.

IRS hold35% of remaining

$7,665.42

Sub-account, untouchable until tax filing. Year-end overage = partner bonuses.

Distributable to partners

$14,235.79

What Each Partner Takes Home

Luke

$4,745.26

across the 3-month trial

≈ $1,582 / month

Petey

$4,745.26

across the 3-month trial

≈ $1,582 / month

Kev

$4,745.26

across the 3-month trial

≈ $1,582 / month

Why equal-split now (not workload-weighted): Luke's call — equal split persists until each partner is at $3K/mo draw or equivalent expensed value. We're at ~$1,582/mo per partner during trial, so we're well below that threshold. Workload-weighting revisits when HF goes past floor or new clients land.

Distribution timing is partner-discretion: lump-sum, monthly draw, or rolled over. Discuss before the first June invoice clears.

Per-Invoice Breakdown

Invoice	Period	Gross	− Ryan 15%	− Reserve 25%	− IRS 35%	Per Partner
OBB-2026-05-001	May (partial)	$4,354.84	$653.23	$925.40	$971.67	$601.51
OBB-2026-06-001	June	$10,000.00	$1,500.00	$2,125.00	$2,231.25	$1,381.25
OBB-2026-07-001	July	$10,000.00	$1,500.00	$2,125.00	$2,231.25	$1,381.25
OBB-2026-08-001	August	$10,000.00	$1,500.00	$2,125.00	$2,231.25	$1,381.25
3-month trial total		$34,354.84	$5,153.23	$7,300.40	$7,665.42	$4,745.26

The IRS-hold safety margin: 35% is a deliberately-conservative blended estimate covering federal income tax (partnership pass-through K-1), Wisconsin state tax, and self-employment tax (15.3% on net earnings, capped above SS wage base). True effective rate is more likely 28–32% for partners at this income level. Year-end, whatever's not owed comes back as a bonus. Conservative-and-then-bonus is the design — better than under-reserving and getting blindsided.

Assumptions + Caveats

Locked numbers

Top-line $34,354.84 = signed Engagement Letter (5/4/2026): May partial $4,354.84 + 3 × $10,000 floor.
Ryan 15% commission = sales-rep agreement (memorandum drafted parallel to this).
Reserve 25% of post-Ryan = Luke's call 5/5; revisit when sophistication warrants a more granular ops budget.
IRS 35% of post-Reserve = conservative blended hold; refines as we get actual K-1 numbers.
33.33% equity each, equal distributable split = OBB Operating Agreement.

What this does NOT yet model

Beyond-trial pricing (post-August): floor renegotiation with Andrew, or lifted floor as deal volume scales.
New deals (Emery MPD pipeline; future Ryan-introduced clients) — separate waterfall when they land.
Expense reimbursements (mini purchase, domain, software subs) — drawn from Reserve, accounted-for separately on the books.
State-level franchise/excise taxes for Wisconsin LLC (minimal at this revenue level but tracked).
Partner-specific personal tax situations (filing status, other income) that affect actual federal bracket.

Sources of truth

Engagement Letter signed PDF: relic-deliverables/hf-engagement-letter/signed/Hundredfold_Engagement_Letter_signed_2026-05-05.pdf
OBB Holdings filing record: WI DFI registration 5/1/2026.
Mercury operating account: invoice OBB-2026-05-001 in flight as of 5/5.