Appendix 5 Templates for Standard Financial Profile
An applicant's financial information will be collected to evaluate whether an applicant has the financial capacity to fund the registry long-term, thereby ensuring DNS stability, and mitigating financial risks like revenue shortfalls or cost overruns, including for those managing multiple TLDs. Applicants are expected to provide information such as, but not limited to, projected cash inflow, projected cash outflow, risk assessment, and domain name registration projections. Applicants may review the information and instructions on how to complete the templates on the New gTLD Program website.1
The applicant (except for Government profile) must provide audited, reviewed, or compiled financial statements, prepared by a third-party accounting firm, for the applying entity that complies with the accounting standards required by the jurisdiction of the applying entity. Alternatively, the applicant may provide third-party audited, reviewed, or compiled statements from an ICANN-approved Affiliate, prepared by a third-party accounting firm.
See more in Section 6.2 Financial and Operational Evaluation.
Table A5-1: Most Likely Scenario Financial Projection
| Most Likely Scenario Financial Projection | |||||
The Most Likely Scenario (MLS) projections must be completed using currency in United States Dollars (USD) or the nationally recognized currency for the jurisdiction of the applicant or Qualified Parent Entity (QPE). |
|||||
| Currency Used | Start-up Period | Commencement of Operations | Comments | ||
| [Insert Currency Here] | Year 1 | Year 2 | Year 3 | ||
| Projected Cash Inflows | |||||
| Forecasted Registration Volume | |||||
| Registration Revenue | |||||
| Funding source 1 | |||||
| Funding source 2 | |||||
| Cash on Hand at Time of Application | |||||
| Total Cash Inflows | |||||
| Projected Cash Outflows | |||||
| Capital Expenditures | |||||
| Capital Expenditure Category-1 | |||||
| Capital Expenditure Category-2 | |||||
| Outsourcing Operating Cost | |||||
| Registry Service Provider | |||||
| Service & Provider-2 | |||||
| Service & Provider-3 | |||||
| All Other Cash Outflows | |||||
| Total Cash Outflows | |||||
| Projected Net Cash Flow | |||||
| Projected Total Cash Flow | |||||
Table A5-2: Most Likely Scenario Financial Projection - SAMPLE
| Most Likely Scenario Financial Projection - SAMPLE | |||||
The Most Likely Scenario (MLS) projections must be completed using currency in United States Dollars (USD) or the nationally recognized currency for the jurisdiction of the applicant or Qualified Parent Entity (QPE). |
|||||
| Currency Used | Start-up Period | Commencement of Operations | Comments | ||
| [Insert Currency Here] | Year 1 | Year 2 | Year 3 | ||
| Projected Cash Inflows | |||||
| Forecasted Registration Volume | 11,007 | 21,007 | 28,007 | ||
| Registration Revenue | 116,000 | 195,000 | 250,000 | ||
| Funding source 1 | 1,200,000 | - | - | - | |
| Funding source 2 | 50,000 | 50,000 | 50,000 | ||
| Cash on Hand at Time of Application | 300,000 | - | - | - | |
| Total Cash Inflows | 1,500,000 | 166,000 | 245,000 | 300,000 | |
| Projected Cash Outflows | |||||
| Capital Expenditures | |||||
| Capital Expenditure Category-1 | 40,000 | - | - | - | |
| Capital Expenditure Category-2 | - | - | - | - | |
| Outsourcing Operating Cost | |||||
| Registry Service Provider | 10,000 | 210,000 | 232,000 | 250,000 | |
| Service & Provider-2 | |||||
| Service & Provider-3 | 12,000 | 12,000 | 12,000 | 12,000 | |
| All Other Cash Outflows | 50,000 | 250,000 | 210,000 | 210,000 | |
| Total Cash Outflows | 112,000 | 472,000 | 454,000 | 472,000 | |
| Projected Net Cash Flow | 1,388,000 | (306,000) | (209,000) | (172,000) | |
| Projected Total Cash Flow | 701,000 | ||||
Table A5-3: Worst Case Scenario Financial Projection
| Worst Case Scenario Financial Projection | |||||
The Worst Case Scenario (WCS) projections must be completed using currency in United States Dollars (USD) or the nationally recognized currency for the jurisdiction of the applicant or Qualified Parent Entity (QPE). |
|||||
| Currency Used | Start-up Period | Commencement of Operations | Comments | ||
| [Insert Currency Here] | Year 1 | Year 2 | Year 3 | ||
| Projected Cash Inflows | |||||
| Forecasted Registration Volume | |||||
| Registration Revenue | |||||
| Funding source 1 | |||||
| Funding source 2 | |||||
| Cash on Hand at Time of Application | |||||
| Total Cash Inflows | |||||
| Projected Cash Outflows | |||||
| Capital Expenditures | |||||
| Capital Expenditure Category-1 | |||||
| Capital Expenditure Category-2 | |||||
| Outsourcing Operating Cost | |||||
| Registry Service Provider | |||||
| Service & Provider-2 | |||||
| Service & Provider-3 | |||||
| All Other Cash Outflows | |||||
| Total Cash Outflows | |||||
| Projected Net Cash Flow | |||||
| Projected Total Cash Flow | |||||
Table A5-4: Worst Case Scenario Financial Projection - SAMPLE
| Worst Case Scenario Financial Projection - SAMPLE | |||||
The Worst Case Scenario (WCS) projections must be completed using currency in United States Dollars (USD) or the nationally recognized currency for the jurisdiction of the applicant or Qualified Parent Entity (QPE). |
|||||
| Currency Used | Start-up Period | Commencement of Operations | Comments | ||
| [Insert Currency Here] | Year 1 | Year 2 | Year 3 | ||
| Projected Cash Inflows | |||||
| Forecasted Registration Volume | 6,007 | 11,507 | 16,007 | ||
| Registration Revenue | 71,000 | 99,000 | 138,000 | ||
| Funding source 1 | 700,000 | - | - | - | |
| Funding source 2 | - | 50,000 | - | ||
| Cash on Hand at Time of Application | 300,000 | - | - | - | |
| Total Cash Inflows | 1,000,000 | 71,000 | 149,000 | 138,000 | |
| Projected Cash Outflows | |||||
| Capital Expenditures | |||||
| Capital Expenditure Category-1 | 40,000 | - | - | - | |
| Capital Expenditure Category-2 | - | - | - | - | |
| Outsourcing Operating Cost | |||||
| Registry Service Provider | 50,000 | 210,000 | 210,000 | 210,000 | |
| Service & Provider-2 | |||||
| Service & Provider-3 | 12,000 | 12,000 | 12,000 | 12,000 | |
| All Other Cash Outflows | - | 200,000 | 120,000 | 120,000 | |
| Total Cash Outflows | 102,000 | 422,000 | 342,000 | 342,000 | |
| Projected Net Cash Flow | 898,000 | (351,000) | (193,000) | (204,000) | |
| Projected Total Cash Flow | 150,000 | ||||
Table A5-5: Risk Assessment Template
| Risk Assessment | ||||
| Risk Category | Risk Scenarios | Probability Assessment2 | Impact Description | Mitigation Strategy |
| Reduced Funding | ||||
| Human Resources | ||||
| Regulatory | ||||
| Material Deviation from Expected Activity Volume | ||||
| Catastrophic Technical Failure | ||||
| Other Unique Portfolio Risks | ||||
| Applicant Specific Risk | ||||
| Applicant Specific Risk | ||||
Table A5-6: Registration Projections Template
| Registration Projections | |||||||||
The [MLS / WCS] projections must be completed using currency in United States Dollars (USD) or the nationally recognized currency for the jurisdiction of the applicant or Qualified Parent Entity (QPE). |
|||||||||
| [Insert Currency Used] | Year 1 Forecast | Year 2 Forecast | Year 3 Forecast | ||||||
| TLD | Registration Volume | Average Registration Fee | Premium Fees | Registration Volume | Average Registration Fee | Premium Fees | Registration Volume | Average Registration Fee | Premium Fees |
| - | - | - | - | - | - | - | - | - | |
| - | - | - | - | - | - | - | - | - | |
The applicant will be asked for these templates in Question Set 18. The applicant will be expected to upload these templates as one document to address questions 213-219.↩︎
The categories are: minimal, low, medium, high, and very high.↩︎