# Northwind Logistics Software, Inc. — Annual Recurring Revenue (ARR) Schedule & Revenue Bridge

**CONFIDENTIAL — Project Atlas | Prepared for Management & Buyer-Side Diligence**

| | |
|---|---|
| **Entity** | Northwind Logistics Software, Inc. (Delaware C-corp; HQ Columbus, OH) |
| **Workbook** | `ARR_Schedule_RevenueBridge_2026Q1.xlsx` |
| **Prepared by** | Finance — FP&A |
| **As of date** | March 31, 2026 |
| **Currency** | USD (000s except where noted) |
| **Reporting basis** | Contracted ARR (annualized committed subscription value) |

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## Sheet 1 — Summary

### 1.1 Headline Metrics (as of 2026-03-31)

| Metric | Value |
|---|---|
| **Total ARR** | **$41,200,000** |
| Total active customer logos | 52 |
| Negotiated / enterprise contracts | 5 |
| Long-tail SMB accounts (click-through terms) | 47 |
| Top-1 customer concentration | **30.1%** |
| Top-3 customer concentration | **69.9%** |
| Top-5 customer concentration | 88.3% |
| ARR currency exposure (non-USD billed) | 7.5% (EUR — Tidewater) |

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## Sheet 2 — ARR by Customer

### 2.1 Customer-Level Detail

| # | Customer | Segment | Annual Recurring Revenue | % of Total ARR | Billing Cadence | Term End |
|---|---|---|---:|---:|---|---|
| 1 | Meridian Freight Corporation | Enterprise / 3PL | $12,400,000 | 30.1% | Annual, in advance | 2027-12-31 |
| 2 | Cobalt Retail Group | Enterprise / Shipper | $9,600,000 | 23.3% | 36-mo prepaid (collected 2025-01-15) | 2027-12-31 |
| 3 | Harbor Foods Distribution, LLC | Mid-market / Shipper | $6,800,000 | 16.5% | Annual | Auto-renew (1-yr) |
| 4 | Granite Manufacturing Co. | Mid-market / Shipper | $4,500,000 | 10.9% | Quarterly, in arrears | 2-yr term |
| 5 | Tidewater Distribution N.V. (BE) | Enterprise / EU 3PL | $3,100,000 | 7.5% | Annual (EUR-billed) | 2-yr term |
| 6 | Long-tail SMB (47 accounts, none >2% individually) | SMB | $4,800,000 | 11.7% | Monthly / Annual | Various |
| | **TOTAL** | | **$41,200,000** | **100.0%** | | |

### 2.2 Reconciliation Check

> **Tie-out:** $12,400,000 + $9,600,000 + $6,800,000 + $4,500,000 + $3,100,000 + $4,800,000 = **$41,200,000** ✓
>
> **Percentage tie-out:** 30.1% + 23.3% + 16.5% + 10.9% + 7.5% + 11.7% = 100.0% ✓

### 2.3 Concentration Analysis

| Tier | Customers | ARR | % of Total |
|---|---|---:|---:|
| Top 1 | Meridian | $12,400,000 | **30.1%** |
| Top 3 | Meridian + Cobalt + Harbor | $28,800,000 | **69.9%** |
| Top 5 | + Granite + Tidewater | $36,400,000 | 88.3% |
| Long-tail | 47 SMB accounts | $4,800,000 | 11.7% |

> **FP&A note (concentration):** Top-1 customer concentration of 30.1% sits at/above the 30% internal concentration threshold. Top-3 of 69.9% indicates limited revenue diversification across the enterprise book. Renewal/term-risk on the top-3 cohort warrants buyer review of each underlying MSA (see Legal data room: `msa_meridian_freight.pdf`, `order_form_cobalt_retail.pdf`, `msa_harbor_foods.pdf`).

---

## Sheet 3 — Revenue Bridge (TTM to 2026-03-31)

### 3.1 ARR Roll-Forward

| Component | ARR Impact |
|---|---:|
| Beginning ARR (2025-03-31) | $34,100,000 |
| (+) New logos | $3,200,000 |
| (+) Expansion / upsell (existing) | $4,650,000 |
| (−) Contraction / downsell | $(420,000) |
| (−) Churn (logo loss) | $(330,000) |
| **Ending ARR (2026-03-31)** | **$41,200,000** |
| Net Revenue Retention (TTM) | 112% |
| Gross Revenue Retention (TTM) | 97.8% |

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## Sheet 4 — Revenue Recognition Notes

### 4.1 Cobalt Retail Group — Prepaid Multi-Year Arrangement

| Attribute | Detail |
|---|---|
| Total Contract Value (TCV) | **$28,800,000** |
| Annualized (ARR-equivalent) | $9,600,000 / yr |
| Contract length | 36 months |
| Service period | 2025-01-01 through 2027-12-31 |
| Cash collected | In full, **2025-01-15** (invoiced and paid up front) |
| Payment terms | Net-30 |
| Renewal | §11.2 — auto-renews for successive 12-month terms unless 90 days' written notice |

> **⚠ FP&A recognition note (FLAGGED FOR REVIEW):** The Cobalt $28.8M / 36-month prepaid arrangement was recognized with a **front-loaded Year-1 tranche** rather than **ratably over the 36-month service period**. Under a ratable basis, recognized revenue would approximate $9,600,000 per annum ($800,000/month) straight-line. The current treatment recognizes a disproportionate share in Year 1 (FY2025), which **overstates recognized revenue and ARR quality** relative to the ratable/straight-line method customary for over-time SaaS subscription delivery. Recommend buyer-side confirmation of the ASC 606 performance-obligation timing and restatement of recognized vs. deferred balances. Deferred revenue at 2026-03-31 attributable to this arrangement should reflect the unconsumed ~21 months of service (≈$16,800,000 on a straight-line basis); confirm against the GL deferred-revenue waterfall.

### 4.2 Other Recognition Notes

- **Meridian Freight ($12.4M):** Billed **annually in advance**; recognized ratably over the annual billing period. 3-year term (2025-01-01 → 2027-12-31).
- **Granite Manufacturing ($4.5M):** Billed **quarterly in arrears**; recognized ratably over each quarter.
- **Tidewater Distribution N.V. ($3.1M):** EUR-billed, annual; FX translated at period-end rate. Recognized ratably.
- **Harbor Foods ($6.8M):** Annual billing; subject to pro-rata refund on termination for convenience (see MSA §10.4) — refund liability not currently reserved.

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## Sheet 5 — Definitions & Basis of Preparation

1. **ARR** — annualized committed contractual subscription value of active customer agreements as of the measurement date; excludes one-time professional-services and implementation fees.
2. **Measurement date** — March 31, 2026 (2026-03-31). All customer balances, percentages, and concentration metrics are stated as of this date.
3. **Total ARR** — $41,200,000, reconciled to the customer-level detail in Sheet 2 and to the revenue bridge ending balance in Sheet 3.
4. **Concentration** — percentage of Total ARR attributable to a customer or cohort; top-1 = 30.1%, top-3 = 69.9%.
5. **Recognized revenue** — distinct from ARR; governed by ASC 606. See Sheet 4 for the Cobalt prepaid recognition note.
6. **Currency** — figures in USD unless noted; Tidewater billed in EUR (7.5% of ARR), translated at the 2026-03-31 period-end rate.

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## Exhibit A — Workbook Provenance

| Field | Value |
|---|---|
| Source file | `ARR_Schedule_RevenueBridge_2026Q1.xlsx` |
| Sheets | Summary; ARR by Customer; Revenue Bridge; Rev-Rec Notes; Definitions |
| Last modified | 2026-04-02 |
| Owner | Finance — FP&A |
| As-of date | 2026-03-31 |
| Prepared / reviewed | Signatory A (CEO) — management certification of ARR figures |

*Internal finance workbook prepared for Project Atlas diligence. Figures are management-prepared and unaudited.*
