Chris & Claude Co

May 2026 Financial Insights

Prepared by Prosynergy

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Prosynergy
Create Value to reduce suffering and restore human flourishing

May 2026 Insights for Chris & Claude Co

Prepared by Titus Kuepfer  ·  Prosynergy Bookkeeping

Consolidated entity — multiple companies

Video Walkthrough
Key Metrics — May 2026
Revenue
$87,037
▲ 29.4% vs April  ·  4-mo high
Net Income
$24,646
▲ First profitable month in 4
Cash in Bank
$9,968
▼ $1,633 from prior month-end
Profit Quality Score
0.45
OCF ÷ Net Income  ·  Healthy: 0.8–1.2
Month in Context

“May was the turning point — revenue hit a 4-month high and subcontractor costs nearly vanished, but $16K in earned revenue is still waiting to hit the bank.”

Three Power Insights

First profitable month in four — the COGS collapse is the whole story

May generated $24,646 in net income, reversing losses of $38,957, $69,790, and $14,028 in prior months. The swing came almost entirely from subcontractor costs dropping from $26K–$50K in earlier months to just $3,588, with employee commissions also going to zero. Revenue helped, but without the COGS collapse there would have been no profit. The critical question for June: was this a project wrapping up, or is this the new cost structure?

→ Confirm with Chris: did the high-subcontractor project wrap, or was billing deferred into June?

Services Income hit a record $60,891 — nearly double April

Total revenue of $87,037 is the highest in the 4-month window. Services Income (4003) drove it at $60,891 vs. April’s $26,562. Short-term rental income also peaked at $9,812. Commission income, by contrast, fell to just $1,402 — well below its February high of $17,967. The revenue mix is shifting toward services, which carries better margins when subcontractor costs are controlled.

→ Track whether the May services revenue level holds in June or was an outsized event.

Cash fell despite profitability — $16K in A/R needs to come in

Operating cash flow came in at $11,166, but receivables grew by $16,358 — a significant portion of May’s earnings haven’t been collected yet. Add a $5,000 renovation draw, $4,499 in debt service, and $3,300 in owner distributions, and cash finished at $9,968, down from $11,601. Worth watching separately: interest expense has grown from $1,390 in February to $4,750 in May — a 242% increase in four months.

→ Follow up on all outstanding May invoices by June 20 to restore the cash buffer.
P&L Summary — Feb through May 2026
Line Item FebMarApr May 4-Mo Avg
Revenue & Gross Profit
Revenue $70,065$55,126$67,254 $87,037 $69,871
Cost of Goods Sold $56,006$63,988$32,129 $7,352 $39,869
Gross Profit $14,059($8,862)$35,125 $79,684 $30,002
Gross Margin % 20.1% -16.1% 52.2% 91.6% 42.9%
Operating Expenses
Advertising & Marketing $7,131$3,924$2,097 $3,100 $4,063
Payroll & Admin Support $23,918$28,810$24,589 $28,330 $26,412
Business Costs & Repairs $7,342$1,697$6,336 $3,838 $4,803
Interest Expense $1,390$3,376$3,991 $4,750 $3,377
Trucks, Vehicles & Equipment $2,719$6,465$2,349 $3,968 $3,875
All Other Overhead $6,597$11,637$5,818 $6,982 $7,759
Total Operating Expenses $49,097$55,909$45,180 $50,968 $50,289
Operating Profit ($35,038) ($64,771) ($10,055) $28,716 ($20,287)
Operating Margin % -50.0% -117.5% -14.9% 33.0% -29.0%
Net Income ($38,957) ($69,790) ($14,028) $24,646 ($24,532)
Net Margin % -55.6% -126.6% -20.9% 28.3% -35.1%

Accrual basis. May column colored vs. 4-month average: teal = favorable, coral = unfavorable. Depreciation and amortization excluded from operating expenses per QBO presentation.

Cash Flow Waterfall — May 2026
Beginning cash $11,601. Net income +$24,646. Depreciation and other +$5,964. A/R -$16,358. A/P +$3,111. LOC -$6,197. Property -$5,000. Debt service -$4,499. Distributions -$3,300. Ending $9,968.
Beginning / Ending Cash In Non-Cash Add-Back Cash Out
Beginning Cash
$11,601 carried into May from April’s close.
Net Income
+$24,646 earned in May — the first profitable month in four. Driven by a COGS collapse, not an overhead reduction.
Depreciation & Other
+$5,964 added back. Non-cash charges (depreciation, amortization) plus small working capital items. These don’t affect cash but reconcile the statement.
A/R Change
−$16,358 tied up in receivables. May’s biggest cash drag — revenue was earned but not yet collected. This is the #1 priority for June.
A/P Change
+$3,111 increase in amounts owed to vendors. Favorable for cash in the short term — watch aging to avoid stretching payables too long.
LOC Changes
−$6,197 net. QB LOC paid down $5,984 and Red Rose HELOC reduced $224. Paying down lines is healthy long-term but pressures short-term cash.
Property Investment
−$5,000 deployed to renovations at 4821 Horseshoe Pike. Long-term asset building, short-term cash draw.
Debt Service
−$4,499 covering the NewRez mortgage ($1,800) and QuickBooks term loan ($2,699). Consistent monthly obligation.
Owner Distributions
−$3,300 distributed (Claudia Beiler). May’s profitability supports this, but watch the cash buffer going forward.
Ending Cash
$9,968 at May 31. Collecting the $16K in A/R is the single fastest lever to restore the buffer above $25K.
Key Accounts Snapshot
Accounts Receivable
+$16,358
May increase — ending balance N/A at consolidated entity level
Accounts Payable
+$3,111
A/P grew in May — favorable for cash, watch aging
Lines of Credit
−$6,197 net
QB LOC paid down $5,984 · Red Rose HELOC reduced $224
Long-Term Debt Service
$4,499 paid
NewRez mortgage $1,800 · QB term loan $2,699

Balance sheet is zeroed at the consolidated entity level. Account activity sourced from the May cash flow statement.

Financial Health Ratios
Profit Quality Score
Concern
0.45
Only 45¢ of each earned dollar converted to cash. A/R buildup is the driver. Healthy range: 0.8–1.2.
Gross Margin — May
Watch
91.6%
Driven by near-zero subcontractor costs. 4-month average is 42.9%. Requires context before treating as normal.
Operating Margin — May
Healthy
33.0%
First positive operating margin in the 4-month period. Prior months ranged from -15% to -118%.
Interest Expense Trend
Growing
$4,750
Up 242% from February’s $1,390. Now 5.5% of May revenue vs. 2.0% in February. Monitor as debt service grows.
Before Next Month

Before Next Month

The Event
Collect outstanding May receivables. $16,358+ in earned revenue has not yet been received as cash.
Est. Impact
+$16,358 to cash if fully collected — bringing the bank balance above $26,000 heading into summer.
Action Item
Follow up on all open May invoices by June 20. Also confirm June subcontractor cost structure — this is the variable that determines whether May profitability continues or reverses.

How helpful was this month’s review?

This report was prepared by Prosynergy Bookkeeping based on data exported from QuickBooks Online. It is intended for management review purposes only and does not constitute tax, legal, or investment advice. All figures are presented on an accrual basis unless otherwise noted. Chris & Claude Co is a consolidated entity; subsidiary-level balance sheet detail is maintained in individual company books. Balance sheet data is not available at the consolidated entity level and is excluded from this report.