Built independently from the Digits general ledger (116,772 transaction rows, 2017-2026, the company's authoritative accounting system) and reconciled against the seller's QuickBooks exports. The subscription engine is genuine, but June broke: $115.0K net revenue (-29% MoM, worst month in 18, post-LOI), annualizing ~$1.38M. Four different net-income figures exist for the same period, the "2026" P&L column is a five-month partial, revenue leaks 20% to refunds, and several balance-sheet accounts sit negative and unreconciled. Recommend a CFO-level reconciliation pass before signing.
Revenue by year from the Digits GL. The business peaked at $5.76M in 2019, stepped down, and settled roughly flat around $2.4M in 2024-2025. 2026 (grey, Jan-Jun partial) paces to ~$2.1M annualized. Cumulative net income across the life of the company is -$11.2M against $12.8M of Series A raised.
Green = 2019 peak, grey = 2026 partial (Jan-Jun). Figures in $M, from 116,772 GL transaction rows.
| Cumulative revenue (2017-2026) | $27,379,765 |
| Cumulative operating expense | $32,436,189 |
| Cumulative net income | ($11,179,514) |
| Series A paid-in equity | $12,790,363 |
| Accumulated deficit | ($11,129,009) |
| Book equity now | $1,479,987 |
About $11.3M of the ~$12.8M raised has been consumed. What conveys in an asset purchase is the engine and brand, not the reimbursed/insurance revenue. The equity cushion is thin, which reinforces pushing price toward the advisor floor.
Monthly net revenue held near $195K through April, then broke. June came in at $114,996, down 29% versus May and 41% versus the March peak, with a $85K net loss, the worst month in 18. June post-dates the LOI. It annualizes to ~$1.38M against the ~$2.1-2.3M the deal frame assumed. Insurance revenue collapsed in parallel, $54.5K (Jan) to $15.6K (Jun).
2026 monthly net revenue from the GL; net income per month shown beneath in green/red. June in red.
One July MTD Stripe view settles whether June is trend or blip. Demand it before signing. At June-adjusted revenue, normalized earnings are $400-650K, not the pitched Scenario C $890K; every dollar above $700K buys trajectory risk the seller's own books just repriced.
The annual P&L "2026" column reads as a full year but is Jan-May 2026 actuals. Total Revenue there is $962,641; Stripe card gross Jan-May ($715,685) plus the insurance rail ($211,844) reconciles to it. A full year at the ~$190K/mo run rate is ~$2.3M. Any YoY built off the raw column understates the business by roughly 60%.
Do not compare the "2026" column to full-year 2024 or 2025. It is five months. Annualize like-for-like or the business looks like it collapsed when it is actually roughly flat.
The same 2026 period produces different bottom lines depending on which statement you read. Digits is the authoritative accounting system and its trial balance closes to $0; the QBO exports the seller sent do not tie to it. The widest spread is $114K.
| Source | 2026 net income | Period | Note |
|---|---|---|---|
| QBO Annual P&L | ($88,586) | Jan-May | source seller QBO export |
| QBO Cash Flow | ($203,023) | Jan-May | statement top line, same export set |
| Digits Trial Balance | ($180,214) | Jan-Jul 1 | recomputed from GL, TB balances to $0 |
No 2026 profitability number is reliable until these tie. This is the first thing to hand a CFO. Digits net revenue for Jan-Jul ($1.043M) vs QBO P&L Jan-May ($962,641) is consistent at ~$174K/mo, which at least confirms the topline run rate even while the bottom line is unresolved.
2025 gross revenue was $2,969,545; refunds and chargebacks took $599,588, leaving net $2,369,957. That is 20.2% leakage. The P&L books revenue net of refunds while Stripe gross is pre-refund, and the bridge across card, Apple IAP, and insurance rails is only directionally explained.
| 2025 gross revenue | $2,969,545 |
| Refunds & chargebacks | ($599,588) |
| Net revenue | $2,369,957 |
| Leakage rate | 20.2% |
We need a full gross-to-net bridge: gross charges to refunds to chargebacks to Apple IAP to insurance to booked net, tied to the dollar. Until then the topline is directional.
Several accounts sit negative and worsening, and reserves that existed in 2024 have vanished. These are the accounts a CFO should walk before signing.
| Account | Balance | Concern |
|---|---|---|
| Chase Business Complete Checking | ($39,654) | negative and worsening since Dec-25 |
| Insurance Clearing Account | ($130,062) | growing negative, unreconciled |
| Mercury Treasury | ($18,981) | overdrawn or reclass |
| Loan to Shareholder | $2,750 | related-party, terms unknown |
| Chase Savings | $3K | was $720K Dec-24, swept |
| Chase CD | $0 | $1.4M appeared then disappeared mid-25 |
Credit-card liability lines also swing wildly and go negative (Brex +/- $100K month to month), suggesting unreconciled card feeds. Ask where the $720K savings and $1.4M CD went: transfers, distributions, or reclass.
Cash is declining but the burn is improving. Total cash went $2.11M (Dec-24) to $1.69M (Dec-25) to $1.59M (May-26). Operating burn was -$976K in 2024, -$484K in 2025, and -$231K in the first five months of 2026.
Not everything is a flag. The items below reconcile cleanly and are consistent with a lean consumer-subscription operation.
These close the open items and cannot be derived from the exports we hold.
Every figure on this page traces to the files below. Digits is the authoritative accounting system; the QBO exports are the seller-provided data-room set.
Prepared by OS for CFO review. Independent reconciliation from the Digits general ledger and QBO data-room exports, not a restatement of seller summaries. Figures current to the Jul 1 2026 Digits package. Flags are diligence items, not conclusions; none are individually disqualifying, but the reported profitability numbers should not be relied on until items 1-4 are reconciled.