1. (a) The prospective owner shall furnish the Agency with the following:

   1. (1) for a school owned by a sole proprietor, a reviewed personal balance sheet with notes that disclose the amount of payments for the next five years to meet debt agreements as required by GAAP; or
   2. (2) for all other ownership structures, an audited balance sheet consistent with GAAP and GAAS.

2. (b) The school shall submit a balance sheet, a list of the expected school-related expenses for the first three full calendar months of operation of the school, and a sworn statement signed by the owner affirming the availability of sufficient cash to cover projected expenses at the date of licensure. Projected expenses may include the following:

   1. (1) employee salaries, including withholding, unemployment taxes, and any other related expenses;
   2. (2) lease payments for equipment;
   3. (3) lease payments for facilities;
   4. (4) accounting, legal, and other specifically identified professional fees; and
   5. (5) an estimate of other expenses such as advertising, travel, textbooks, office supplies, classroom supplies, printing, telephone, utilities, taxes, and sales commissions.
3. (c) The school shall submit a projection of the gross amount of tuition and fees to be collected during each of the first two years of operation.
4. (d) The prospective owner shall also furnish such other evidence as may be deemed appropriate by the Agency to establish financial stability.

Source Note:The provisions of this §807.33 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.