Standard Reporting Requirements

Sharing information between the company and investors is a part of the angel investment process and something that Maine Angels believes is critical to its long-term relationships with the companies in which it invests.  Good communications is in the best interests of both companies and their investors.

Standard reporting includes the following:

• If audited financial statements are required, audited annual financial reports to Investors within 180 days of the end of the fiscal year.

• Monthly unaudited financial summary (which typically includes an income statement and a balance sheet).

• A monthly “management dashboard” with updates on progress and accomplishments against targets in past and next period.  This will be provided in a mutually agreeable form, to Investors by the 15th calendar day of the following month.

• Annual budgets will be supplied to the board of directors at a regularly noticed board meeting, but in no event later than 45 days prior to the beginning of each fiscal year for approval.  These will be included in the monthly report immediately following the budget approval.

• Customary inspection rights.  If these are provided to other investors based on the amount of their investment, Maine Angels will be considered as a group for the purpose of inspection and other rights.  In this case, Maine Angels will work with the Company through a lead investor designated by Maine Angels.