About

The review standard behind CT Valuations.

Every signed report package reflects the same methodology, the same credentials, and the same accountability.

Section 5

Valuation Methodology

Page 16 of 28

Income Approach — Capitalized Cash Flow

Normalized earnings capitalized at a rate reflecting company-specific risk, industry factors, and current market conditions. Applied a discount rate of 22.5% with a long-term growth rate of 3.0%.

Indicated Value

$4,480,000

Weight

60%

Asset-Based Approach — Adjusted Net Assets

Fair market value of tangible and identified intangible assets, less liabilities. Real property appraised independently; equipment at depreciated replacement cost.

Indicated Value

$3,905,000

Weight

40%

Reconciliation

Weighted Average Conclusion

Less: Discount for Lack of Marketability (15%)

$4,250,000

($637,500)

Fair Market Value — 100% Equity

$4,250,000

Section 4

Financial Analysis

Page 12 of 28

Revenue & Adjusted Earnings (Normalized)

2023

2024

2025

Revenue Adj. Earnings

Normalization Schedule

Adjustment	2023	2024	2025
Reported Net Income	$812,400	$1,024,600	$1,380,200
Owner Compensation Adj.	+$145,000	+$152,000	+$160,000
Non-recurring Expenses	+$28,500	+$0	+$67,800
Normalized Earnings	$985,900	$1,176,600	$1,608,000

Methodology

AICPA SSVS No. 1

Every report follows AICPA Statement on Standards for Valuation Services No. 1. The signed report package includes a CPA memorandum, structured financial analysis, normalization schedules, methodology rationale, and a documented conclusion of value.

Income Approach

Capitalized cash flow analysis with company-specific risk assessment

Asset-Based Approach

Fair market value of tangible and intangible assets, less liabilities

Reconciliation

Weighted conclusion with documented rationale for method selection

Principal

Donald A. Peterson, CPA, CVA

Donald A. Peterson, CPA, CVA has worked across public accounting, finance, transaction support, and forensic-oriented engagements for more than 35 years. His background includes corporate tax work, CFO and COO service, M&A advisory exposure, and forensic auditing. That experience informs the review standard behind every CT Valuations engagement.

One standard. Every engagement.