From: Stephen Hanson

From: Stephen Hanson To: Jeffrey / E / Epstein [email protected]> Subject: Fwd: Q1 2018 Projections Date: Sun, 05 Nov 2017 12:39:05 +0000 Attachments: Bookl.xlsx Inline-Images: image001.png; image002.png; image003.png; image001(1).png; image004.png; image005.png; image006.png This is the nol for Q1 . It had a nov opening First of the year losses will be greater as you have no momentum going into first months of the year I'll get you the 750k restaurant opening budget Sent from my iPad Begin forwarded message: From: Alan Hochhauser Date: October 13, 2017 at 11:16:41 AM EDT To: Steve Hanson < >, David Mitchell Subject: Q1 2018 Projections Steve & David, Based on delays in opening, attached are updated projections assuming open early November upstairs with Speakeasy turned over two weeks later. Pre-opening funding assumes a NOL for opening months, but because on the timing of the opening, I anticipate losses continuing through O1. A number of factors contribute to this: 1. Q1 always the softest quarter for sales and I anticipate first year to be much softer than normal with only being open a few weeks prior. Restaurant will not have had the time to build a loyal following for return business. Keep in mind that after Thanksgiving, ala carte business is soft because of the increase in Holiday events people are attending. 2. Unlikely that we are reviewed by then, we were hoping to be reviewed in 2017 3. Hotel occupancy (based on budget and what's been booked) appears soft. Will take time to build as still don't have benefit of F&B 4. I anticipate costs (labor & cost of goods sold) to be high in O1. November / December, while still below anticipated, should be OK for sales because of the season. This is assuming we are able to sell holiday events (which will be also be a challenge because of the late opening— people want to see the room before they book. Anything we get will be last minute, no advanced sales). The team will be focused on executing great service, by the time O1 rolls around, they will still be in opening mode and fine tuning menu and staffing models. Will not be 100% efficient yet, this will be done during O1 when we see what true sales patterns are. With the late opening, staff will still be very new for O1 and will still be staffing higher than normalized operations. There is also the natural turnover that comes with an opening — was hoping to be through that and stable with the staff by year end, but unlikely, so assume labor costs also impacted by training costs. 5. I also projected higher costs for O1 for linen. Plan was to perform services in house, but until we know where we'll end up with laundry room, projecting the costs to outsource laundry. EFTA00962897 Overview of Q1 in regards to bottom line numbers: 1. EBITDA loss of $313K 2. EBITDA loss includes $138K in rent 3. Negative cash flow (NOL) net of rent is $175K Alan Hochhauser Chief Financial Officer LIFE RESTAURANT At Life Hotel 19 West 31st St NY NY 10001 lifehotel.com sir Idebxclegwyork orlifehmetay Orliferesnummny Orphronandluctny EFTA00962898