From grant-dependent startup to self-sustaining sailing school. A four-year financial journey — and the year profitability arrives.
FY2025 is 100% earned revenue — zero grant income. Sales grew from $3.3K to $83K in three years (25x).
Business chequing closed at $41. Operates month-to-month on incoming course deposits. Needs $15K reserve.
FY2026 base case projects $48K net income — the first profitable year since incorporation in FY2022.
First full season of courses
Established repeat customer base
Maturing growth + advertising investment
| FY2022 | FY2023 | FY2024 | FY2025 | |
|---|---|---|---|---|
| Revenue | $103,264 | $31,596 | $69,074 | $83,153 |
| Expenses | $98,910 | $109,935 | $85,869 | $88,148 |
| Net Income | $4,354 | ($78,339) | ($16,795) | ($4,995) |
| Net Margin | 4.2% | -248% | -24.3% | -6.0% |
| FY2025 | FY2024 | Change | |
|---|---|---|---|
| Assets | |||
| Cash | $41 | $11,528 | -99.6% |
| Capital Assets | $84,773 | $99,733 | -15.0% |
| Total Assets | $84,814 | $111,261 | -23.8% |
| Liabilities | |||
| Accounts Payable | $4,598 | $4,598 | — |
| Due to Shareholder | $158,933 | $175,146 | -9.3% |
| Long-Term Debt | $136,605 | $142,744 | -4.3% |
| Total Liabilities | $300,136 | $322,488 | -6.9% |
| Shareholder Deficit | ($242,722) | ($211,227) | -14.9% |
+49% YoY, 25x since FY2022, 100% earned
94% loss reduction over 2 years, on track for profit
$41 cash. Operating on incoming deposits. Critical risk.
$300K total liabilities, but declining. Refinance saved $4.8K/yr.
Every expense category declining as % of revenue. 16:1 ad ROI.
NYC partnership, Ontario Sailing, BoatU.S. feature
Amortization + loan interest dropped from 138% of revenue (FY2023) to 35% (FY2025). This is pure leverage from growing revenue against fixed obligations.
~$5,100 spent on Google Ads + Facebook generated $83K revenue. Consider increasing off-season ad spend (Nov-Feb) for Bahamas courses.
15+ software subscriptions across business account + Apple. Audit for overlap and consolidation opportunities.
The business has $41 in the bank. Collect deposits earlier (move from 50% to 75-100% at booking). Reduce shareholder draws until cash hits $15K. Separate personal and business spending strictly.
Revenue is concentrated in seasonal PEC courses (Jun-Sep). Pursue: NYC Yacht Club partnership (4 sessions x $10K = $40K potential), Ontario Sailing content collaboration. Off-season Bahamas courses smooth the revenue curve.
With 16:1 ad ROI, increasing Nov-Feb ad spend is the highest-return investment available. Focus on Bahamas course promotion and early-bird PEC bookings. Budget: additional $2-3K in off-season ads.
~$5,400/yr fragmented across 15+ services. Consolidate overlapping tools. Reclassify Felix Health ($4,260/yr) — if any portion is business-related (Transport Canada medical), classify as business expense instead of shareholder draw.
BoatU.S. Magazine feature (Shawn Hamilton) = free national exposure. Ontario Sailing collaboration = content marketing with Megan Medlock. Build referral program for past students. Maximize earned media before paid.
Dividends have exceeded net income every year ($146.5K total vs cumulative losses). Reduce to $0 until net-positive, then cap at 50% of net income. This is already trending correctly ($40K → $26.5K).
| Month | FY2025 | FY2026 | Change |
|---|---|---|---|
| November | $9,410 | $16,997 | +81% |
| December | $12,431 | ~$12,000 | ~flat |
| January | $9,573 | ~$8,000 | -16% |
| February | $3,983 | $4,982 | +25% |
| March | $5,079 | $16,122 | +217% |
| April (thru Apr 18) | — | $4,953 | — |
| 6-Month YTD | — | ~$63,054 | +44%* |
YTD pace of +44% over FY2025's $83K
+ NYC partnership courses (4 sessions x $10K each)
+ strong Bahamas/PEC pipeline + additional partnerships
| Course | Dates | Enrolled | Revenue |
|---|---|---|---|
| Basic Cruising | Jun 5–8 | 4/4 SOLD | $5,000 |
| SKS | Jun 13–14 | 3/4 | $1,950 |
| Liveaboard | Jun 21–26 | 4/4 SOLD | $10,000 |
| Basic Cruising | Jul 3–6 | 4/4 SOLD | $5,000 |
| Basic Cruising | Jul 10–13 | 3/4 | $3,750 |
| SKS | Jul 18–19 | 2/4 | $1,300 |
| Liveaboard | Jul 26–31 | 2/4 | $5,000 |
| Confirmed Course Revenue | $32,000 | ||
Plus 2 custom liveaboard sessions confirmed (Jul 31–Aug 2 and Aug 14–16) — pricing TBD as they're shorter than standard 6-day sessions; estimated ~$10K at standard rate.
| Course | Dates | Potential |
|---|---|---|
| Basic Cruising (weekday) | Jun 15–18 | $3,750 |
| Advanced Cruising | Jul 20–24 | $9,600 |
| Liveaboard | Aug 9–14 | $7,500 |
| Basic Cruising | Aug 21–24 | $3,750 |
| SKS | Aug 29–30 | $1,950 |
| Liveaboard | Sep 13–18 | $7,500 |
| Open Capacity (realistic enrollment) | ~$34,050 | |
3hr afternoon sails, 5hr half-days, private day sails — fills around blocked-out course days and Aug 31–Sep 6 haul-out.
| Course | Date | Students |
|---|---|---|
| Basic Cruising | Jun 5–8 | 4/4 (sold out) |
| SKS | Jun 13–14 | 3/4 |
| Liveaboard | Jun 21–26 | 4/4 (sold out) |
| Basic Cruising | Jul 3–6 | 4/4 (sold out) |
| Basic Cruising | Jul 10–13 | 3/4 |
| SKS | Jul 18–19 | 2/4 |
| Liveaboard | Jul 26–31 | 2/4 |
$32K confirmed of $76K course target. Plus 2 custom liveaboard sessions and warm leads in pipeline. NYC partnership courses not yet scheduled.
| FY2025 Actual | FY2026 Base Case | FY2027 Loan-Free | |
|---|---|---|---|
| Revenue | $83,153 | $145,000 | $167,000 |
| Supplies/COGS | $20,875 | $36,250 | $41,750 |
| Amortization | $17,906 | $12,716 | $10,808 |
| Interest on Loan | $11,220 | $8,500 | $0 |
| Advertising | $5,096 | $7,000 | $8,000 |
| Travel / Passage | $7,276 | $7,500 | $7,500 |
| Insurance | $2,826 | $3,000 | $3,200 |
| Telecom / Utilities | $5,303 | $5,500 | $5,500 |
| Other Operating | $17,646 | $16,000 | $14,500 |
| Total Expenses | $88,148 | $96,466 | $91,258 |
| Net Income | ($4,995) | $48,534 | $75,742 |
| Net Margin | -6.0% | 33.5% | 45.4% |
Every dollar of eliminated interest drops straight to net income. No more compounding monthly at 6.95%.
Currently paying ~$2,100/mo to PELA (principal + interest). Post-payoff, this becomes available cash for operations, reserves, or reinvestment.
Total liabilities drop from ~$300K to ~$163K. Shareholder deficit begins recovering significantly. Business becomes financeable.
Happy Sailing has transformed from a grant-dependent venture to a self-sustaining sailing school with 25x revenue growth. Clearing the PELA loan in FY2026 unlocks a loan-free FY2027 with $76K projected profit, 45% margins, and $17K/yr in freed cash flow.
Prince Edward County Marine Tourism Inc. | Operating as Happy Sailing
Financial data as of October 31, 2025 | Prepared March 31, 2026