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EBITDA Growing and Profitable Industrial Instrument Distribution & Calibration Company — Headquartered in Texas #66982 Sign NDA ► DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Andre Farahmandi Senior Vice President Email: afarahmandi@generational.com Mobile: 972-232-1140 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX BUSINESS HIGHLIGHTS The Company offers a one-stop shop for quality industrial instrument and metrology measuring products, as well as repair and calibra on services. Much of the equipment that customers bring to be calibrated needs to be recalibrated within six months to a year. Most instruments are delivered on-site (one full- me driver), but approximately 5% of sales are drop shipped and another 5% comes from walk-ins. Approximately 50% of the orders that are deliveries are Just-In-Time deliveries that are cri cal and in turn, have higher margins. INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 Products • Hardened and Ground Gauges • API Gauges • Taper Gauges • Cylinder Gauges • Hardness Testers • Coordinate Measuring Machine • Precision Hand Tools • Cu ng Tools • Carbide Inserts • Mechanical Dimensional Gauges • Profile Measuring Systems • Surface Finish Systems • Ultrasonic Systems • And More INVESTMENT APPEAL • Strong Historical Sales & EBITDA Growth, and Improving Base Year Performance: Sales have grown from historically, represen ng a compound annual growth rate of 42.0%. The Company's revenue is projected to reach $10,800,000 in 2024, tracking with interim sales of $6,494,000 through August 2024. The Company's EBITDA, a key indicator of financial performance, is projected to reach $2,164,000 in 2024 (20.0% of sales). • Superior Name and Reputa on: Founded more than 30 years ago, the Company enjoys a long-standing reputa on for the quality of its products and services, exper se, dependability, and superior customer support. The Company's reputa on in the industry is the result of conduc ng business with a philosophy that is supported by professionals, principals, values, and ethics. As a result, more than 70% of sales in 2023 came from repeat customers that purchased from the Company in 2021 and 2022 as well. Sales from repeat customers is expected to con nue to increase in 2024 and beyond. • Modest Ongoing Capital Investment Requirements: The Company isn't capital intensive, and management does not expect a significant investment in capital assets to be required over the pro forma period. Going forward, management an cipates capital expenditures to average $12,000 per year for various equipment and leasehold improvements. • Industry Accredita on: The Company holds the necessary accredita ons and licenses to distribute and repair products in the industries served. Holding the proper cer fica ons supports the Company's proven reputa on and helps open doors with prospec ve clients through the security that products and services will be delivered at the required industry standards. • Strong Management Team: The management team's experience in the industrial supplies and metrology industry sets them apart from compe tors, as the team focuses on providing quality, mely, and cost- effec ve products, coupled with proac ve and responsive customer service. Calibration Service Sales Historical & Projected Financial Performance Distribution Sales $10.8M Reasons for Recent Growth • Purchases from repeat customers increased each year to 70% in 2023, as total sales con nued to grow. • A material amount of growth in new customers has come from referrals from suppliers and sales outreach. • Con nued to build out sales team and add complementary products. Ongoing and Future Growth $1.3M (19.4% of Sales) $2.2M (20.0% of Sales) 2024 (Thru Aug.) 2024 (Projected) Sales $6.5M Reasons for Future Growth • Con nuing to grow and become a one-stop shop for customers. • Finalizing and upda ng website by end of 2024 to make the ordering process easier and more efficient • Con nue to build sales team, that con nues to expand the Compa- ny's customer base and maintain important rela onships. • Recently opened addi onal loca- on.