Key Performance Indicators
$186,188
Target: $300,000 | Range: $86K–$186K
At Risk
Period low: $86K (Jan 5-11) • Period high: $186K (Feb 23-28)
$100K weekly swing range • $114K below target
$1.97M
Target: $1.45M
Off Track
36 days
Target: < 45 days
On Track
AR Total: $209,083
1.3%
Target: 15.0% (Q1)
Off Track
$279,471
Target: $2.2M | Accrual Projected: $1.68M
Cash basis collections: $173K/mo → $2.08M projected
Accrual revenue: $140K/mo → $1.68M projected
Gap to $2.2M: -$520K (accrual) vs -$123K (cash)
Backlog: $742K contracted • Needed: $183K/mo avg
Off Track — Accrual Run Rate 24% Below Target
Time Tracking & Everhour Highlights
| Metric |
Status |
| Team Members Tracking |
8 (7 active + 1 onboarding) |
| Total Hours Logged (Feb) |
1,101 hours |
| Project Hours |
~900 hrs |
| Admin/Overhead Hours |
~200 hrs |
| Data Collection Started |
Late January 2026 (~5 weeks of data) |
| Time Tracking Compliance |
In Progress — verify daily logging consistency |
SCALE Roadmap Progress - Q1 2026
Deploy Time Tracking
Weeks 1-2
TBD
Everhour appears active; confirm compliance
Implement KPI Reporting
Weeks 1-4
In Progress
This report initiates 5-metric dashboard
Office Manager Restructure
Weeks 2-3
Likely Complete
Payroll down 25% YoY; confirm
Subscriptions/Dues Audit
Weeks 3-4
Not Started
D&S up 687%; immediate audit needed
Client Value Framework
Week 4
In Discussion
Two-tier model: individual projects ($50K/$15K) vs. relationship value
Resolve Verro AR ($157.8K)
Weeks 1-12
Likely Complete
No longer on aging; confirm
P&L Summary
| Line Item |
Jan 2026 |
Jan 2025 |
Feb 2026 |
Feb 2025 |
YTD 2026 |
YTD 2025 |
| Revenue |
$182,042 |
$186,767 |
$164,207 |
$178,943 |
$346,249 |
$365,710 |
| Operating Expenses |
($177,398) |
($176,826) |
($150,603) |
($146,060) |
($328,001) |
($322,886) |
| Net Operating Income |
($8,999) |
($3,702) |
$179 |
$19,241 |
($4,603) |
$9,836 |
| Net Income |
($22,449) |
($17,345) |
$8,125 |
$7,361 |
($14,324) |
($9,984) |
Note: Feb 2026 revenue includes $56,864 in reimbursables. PM fee revenue alone was $107,343. Above figures are cash basis. See accrual comparison below.
Cash vs. Accrual Basis Comparison (YTD)
| Line Item |
Cash Basis |
Accrual Basis |
Difference |
Implication |
| Revenue |
$346,249 |
$279,471 |
($66,778) |
Collected more than earned — drawing down old AR |
| Operating Expenses |
($328,001) |
($306,811) |
$21,190 |
Paid some expenses not yet accrued |
| Net Operating Income |
($4,603) |
($33,872) |
($29,269) |
Actual operating loss 7x larger |
| Net Income |
($14,324) |
($52,127) |
($37,803) |
Real loss is 3.6x cash basis |
Key Insight: Cash Basis Overstates Performance
Cash basis revenue of $346K includes $67K in collections from prior-period AR, inflating the apparent run rate. Accrual revenue of $279K ($140K/mo) projects to $1.68M annualized — a $520K gap to the $2.2M target vs. only $123K on cash basis. The accrual view reveals the true pace of work being earned.
Accrual Balance Sheet Highlights (Feb 28, 2026)
Accounts Receivable
$199K
Hidden on cash basis BS
Accounts Payable
$82K
Hidden on cash basis BS
Total Debt
$1.84M
SBA $1.28M + LOC $209K
Total Equity
($968K)
Negative — balance sheet insolvent
Recommendation: Use Accrual for Profitability, Cash for Liquidity
Going forward, profitability analysis (P&L, margins, project economics) should use accrual basis to reflect work earned, not collections received. Cash basis remains appropriate for the weekly cash trend and liquidity monitoring. The negative equity position is driven by the SBA acquisition loan — not unusual for an acquired business — but underscores the urgency of achieving operating profitability per the SCALE Roadmap.
Source: QBO P&L and Balance Sheet (Accrual Basis), Jan 1 – Feb 28, 2026.
Cash Position Trend (Weekly)
Period High
$186K
Feb 23-28 (Week 9)
Period Low
$86K
Jan 5-11 (Week 2)
Average
$143K
9-week average
Volatility
$100K
High-to-low swing
vs. Target
-$114K
Gap to $300K reserve
Operating Account (WF 5181) Volatility
WF 5181 drives cash volatility — ranged from -$5,567 (Jan 5-11, overdraft) to $92,716 (Feb 23-28). This $98K swing in a single account suggests collections timing is the primary cash flow variable. The overdraft in Week 2 was the only negative balance in the period.
Trend: Recovering
Cash position improved 54% from the mid-February low ($121K) to month-end ($186K), driven by strong collections in the final week. While still $114K below the $300K target, the upward trend is constructive. Key risk: the $100K weekly volatility means a single delayed payment can swing the position from adequate to stressed within days.
Source: QBO Balance Sheet by Week (Jan 1 – Feb 28, 2026). Cash basis. Includes all 5 bank accounts (MML 4343, UMB 7225, WF 3802, WF 5181, WF 6944).
Cash Accounts
| Account |
Balance |
| MML Investor Services 4343 |
$85,407 |
| Wells Fargo Checking 5181 |
$92,716 |
| Wells Fargo Checking 3802 |
$30 |
| Wells Fargo Checking 6944 |
$2,300 |
| UMB 7225 |
$5,735 |
| Total Cash (Feb 28) |
$186,188 |
Debt & Credit Obligations
| Obligation |
Balance |
| Credit Cards (total) |
$128,350 |
| Line of Credit (QBO) |
$101,767 |
| GrassHopper Loan |
$25,000 |
| Jaguar Land Rover Loan |
$83,548 |
| SBA Loan |
$1,283,727 |
| Total Debt & Credit |
$1,622,391 |
Accounts Receivable Quality
Days Sales Outstanding (DSO)
36 days
Calculation: ($209K / $346K) × 59 days
Target DSO
< 45 days
✓ On Track
Total AR Outstanding
$209,083
Strong collections performance
| Aging Bucket |
Feb 28 |
| Current |
$157,113 |
| 1-30 Days |
$34,980 |
| 31-60 Days |
$13,030 |
| 61-90 Days |
$3,961 |
| 91+ Days |
$0 |
| Total AR |
$209,083 |
Accounts Payable Aging
| Aging Bucket |
Feb 28 |
| Current |
$19,851 |
| 1-30 Days |
$6,028 |
| 31-60 Days |
$56,140 |
| Total AP |
$82,019 |
Volume vs Value Comparison
| Metric |
2025 (Full Year) |
2026 YTD |
SCALE Target |
| Projects Awarded |
69 |
20 (Jan-Feb) |
44-50 annually |
| Average PM Fee |
$22,300 |
$9,121 |
$50,000+ |
| Median PM Fee |
$8,421 |
$10,506 |
Higher |
| Total PM Fees Awarded |
$1,538,724 |
$2,333,519 |
$2.2M revenue |
| Projects ≥ $50K Fee |
5 (7.2%) |
— |
Majority |
| Active Projects |
— |
160 |
— |
| Remaining to Bill |
— |
$741,970 |
— |
Fee Distribution Analysis
| Fee Band |
2025 # |
2025 % Revenue |
2026 # |
2026 % Revenue |
Target |
Trend |
| < $5K |
31 (45%) |
5.1% |
3 (15%) |
6.4% |
Exit |
↑ Worsening |
| $5K-$15K |
15 (22%) |
9.5% |
17 (85%) |
93.6% |
Reduce |
↓ Worsening |
| $15K-$25K |
8 (12%) |
10.2% |
0 |
— |
Maintain |
— |
| $25K-$50K |
10 (14%) |
22.7% |
0 |
— |
Grow |
— |
| $50K+ |
5 (7%) |
52.5% |
0 |
— |
Primary |
— |
Client Relationship Value Framework
Two-Tier Fee Policy Framework
Tier 1 — New/One-Off Clients
• Minimum project fee: $50,000
• No exceptions without owner approval
• Rationale: $50K covers 3.4x overhead ($14,600/project)
Tier 2 — Existing Relationships (3+ projects)
• Minimum annual client value: $50,000
• Minimum individual project fee: $15,000
• Programmatic/multi-site as package
• Rationale: Repeat work has lower acquisition cost, higher efficiency
Active Client Portfolio Analysis
| Client |
# Projects |
Total Fees |
Avg Fee |
Annual Value |
Policy Status |
Multiplier |
| Sovereign HC |
2 |
$399,008 |
$199,504 |
$399K |
✅ Tier 1 |
1.0x |
| HonorHealth |
38 |
$401,446 |
$10,564 |
$401K |
✅ Tier 2 |
1.3x (prog) |
| Healthpeak |
~30 |
$274,173 |
~$9,139 |
$274K |
✅ Tier 2 |
1.2x (rep) |
| WCCP |
~15 |
$89,200 |
~$5,947 |
$89K |
✅ Tier 2 |
1.1x (rep) |
| Verro Wellness |
3 |
$391,250 |
$130,417 |
$391K |
✅ Tier 1 |
1.0x |
| CND |
3 |
$60,000 |
$20,000 |
$60K |
✅ Tier 2 |
1.0x |
| Unity/DVDerm |
3 |
~$45,000 |
~$15,000 |
$45K |
⚠️ Below |
1.0x |
| Garney |
1 |
$25,000 |
$25,000 |
$25K |
❌ Below T1 |
— |
| Spinatos |
1 |
~$10,000 |
$10,000 |
$10K |
❌ Below T1 |
— |
| Qualified for Tier 1+2 |
6 of 8 clients ($1.6M+ in total fees) |
About the Efficiency Multiplier
Programmatic (1.3x): Identical scope repeated across multiple sites (e.g., Evernorth 11-site clinic rollout). PM learns scope on project #1, executes #2-#11 faster with same deliverables. Effective hourly rate improves with each repeat.
Repeat (1.2x): Similar but not identical scope. Client-specific variations remain, but PM has domain knowledge. Lower acquisition cost than one-offs.
One-Off (1.0x): New client or truly unique scope. Full discovery and customization required.
📊 Key Insight: The Real Gap
Under the original $50K per-project threshold: 0% of 2026 projects qualify. This misses the full economic picture and penalizes relationship-based work.
Under the client relationship value framework: 6 of 8 active client relationships ($1.6M+ in total fees) meet or exceed the minimum threshold. The real gap isn't project size — it's that 2 small one-off clients (Garney $25K, Spinatos ~$10K) fall below minimum and should be evaluated for fee increases, scope increases, or phase-out.
Risk Assessment & Recommended Actions
● High
Cash Position & Volatility
Cash at $186K (Feb 28) but $114K below $300K target. Weekly swings of $100K driven by WF 5181 collections timing (ranged from -$6K to +$93K). Mid-month overdraft resolved by period end, but volatility exposes liquidity risk. Cash management framework needed.
● High
Fee Trajectory
Average 2026 fee of $9,121 is moving away from the $50K target. 85% of projects are in the $5K-$15K band. Zero projects ≥ $50K in Jan-Feb. Requires immediate pricing and qualification strategy adjustments.
● High
Dues & Subscriptions
Dues & subscriptions costs up 687% YoY ($10,783 YTD). Immediate line-item audit required to identify all subscriptions, overlaps, and unused tools. Target: reduce to baseline + strategic tools only.
● Medium
Project Losses
Project losses totaling $89,712 (4.5% of revenue). BioLab project alone accounts for $60K loss. Review project profitability model, engagement terms, and change order process to prevent future losses.
● Medium
Credit & LOC Exposure
$230K in revolving debt ($128K credit cards + $102K LOC). As cash position improves from February collections, allocate excess cash to reduce high-interest revolving debt and improve debt service ratios.
Recommended Actions by Priority
| Priority |
Action Item |
Owner |
Target Date |
Expected Impact |
| URGENT |
Monitor cash daily; plan for April collections timing |
CFO / Finance |
By April 4 |
De-risk liquidity crisis |
| HIGH |
Audit all D&S subscriptions; identify and cancel unused tools |
Operations |
By April 11 |
$5-8K monthly savings |
| HIGH |
Finalize Client Value Framework; coach sales on Tier 1/Tier 2 qualification |
Sales / Leadership |
By April 15 |
Higher-value project mix aligned with relationship economics |
| MEDIUM |
Confirm office restructure savings and payroll impact |
HR / Finance |
By April 8 |
Validate 25% YoY reduction |
| MEDIUM |
Review BioLab and project loss drivers; adjust pricing model |
Project Mgmt / Finance |
By April 18 |
Prevent future losses |
| MEDIUM |
Allocate Feb collections to reduce revolving debt |
CFO / Finance |
By April 30 |
Improve debt ratios |