6.0. EDSR 06-10-2002 - Laserfiche WebLink

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Earnings and Interest Not Refundable • All earnings and interest are assigned by the Participation Agreement to MCCF and are contributions to MCCF by the Member and are not refundable. Start-up Nonprofit Corporation MCCF has not commenced operations and is a development stage corporation subject to the uncertainty and risks of a development stage corporation Forward-Looking Statements Involve Risks and Uncertainties This Prospectus contains projections and assumptions which are contained at Exhibit A ("Projections and Assumptions"). These Projections and Assumptions and statements in this Prospectus and in certain documents incorporated or deemed incorporated by reference in this Prospectus constitute forward-looking statements that involve risks and uncertainties. These statements relate to the future plans,objectives,expectations and intentions of MCCF and may be identified by the use of words such as"believe", "estimate", "expect", "anticipate", "intend", "plan", "should", "potential" and similar expressions. Actual results could differ materially from those contemplated by the forward-looking statements made in this Prospectus and in the Projections and Assumptions which are contained in Exhibit A. Future revenues are unpredictable and it is expected that operating results will fluctuate from period to period. The absence of an operating history makes it difficult to accurately forecast revenues in any given period. Revenues that are derived from origination fees are dependent upon the number of loan closings which occur during any given period. If revenues fall short of expectations, MCCF will use its working capital at an accelerated rate. See "Business Plan". The Projections and Assumptions assume and MCCF expects to pre-sell all loans which are made from the Loan • Fund to the secondary market In the event MCCF is unable to pre-sell certain loans to the secondary market,the number of loans made may be less than projected and revenues derived from origination fees may be substantially reduced. See"Business Plan". MCCF expects losses. The Projections and Assumptions of MCCF contained in Exhibit A and other forward- looking statements anticipate that MCCF will incur losses from operations in fiscal years ended June 2003 and June 2004 and enjoy a slight profit from operations for the fiscal year ended June 2005. Future revenues are unpredictable and no assurance can be given that MCCF will remain profitable in future years. Projections and Assumptions Not Reviewed by CPA The Projections and Assumptions attached hereto as Exhibit A were prepared internally and were not reviewed by a certified independent public accountant Additional Funding Upon the Initial Closing,MCCF will have commitments for not less than$200,000 in working capital from which to finance projected operating deficits over the next three years. Although management of MCCF believes that these cash flow reserves and cash flow from operations will be adequate to fund operations for the next three years, such sources may be inadequate to cover such period. Consequently, MCCF may require additional working capital funding and if such funding is not available MCCF may be required to limit or discontinue its operations. See "Capitalization". Business Model Unproven The MCCF business model is largely unproven. Accordingly, the MCCF business model may not be successful, and may need to be changed. See`Business Plan". 4