AMERICA'S MUSIC SCHOOL

Data Based On: Data based on 47 franchised Schools open and operating for more than one year as of December 31, 2025.

* All extracted financial performance data is for 'Franchise-Owned 2025 System Average Open 12+ Months' (Column C). 1. Average Gross Revenue is directly from the 'Total Sales' average for Column C ($587,341). 2. Median Gross Revenue is directly from the 'Total Sales' median for Column C ($541,256). 3. Average Gross Profit was calculated as Average Total Sales ($587,341) minus Average Cost of Goods Sold ($3,219), resulting in $584,122. This calculation adheres to the provided definition of Gross Profit (Revenue - Cost of Goods Sold). 4. Net Income, Net Profit, and EBITDA were not explicitly provided and could not be accurately calculated due to incomplete expense data. Note 14 states that significant expenses such as rent, utilities, debt service, regulatory fees, and royalty payments are not included in the provided expense figures. 5. Best Guess Profit Range (low and high) was estimated starting from Average Net Sales ($556,736). From this, all explicitly listed operating expenses were deducted: Direct Instructional Costs ($147,065), Total Site G&A ($196,319), and Total Marketing ($41,165). This left a subtotal of $172,187. Next, royalty payments (7% of Total Sales, as per Note 14) were deducted (0.07 * $587,341 = $41,114), resulting in $131,073. Finally, to account for the unquantified expenses mentioned in Note 14 (rent, utilities, debt service, etc.), an estimated range of 10% to 20% of Net Sales was applied. The high profit estimate ($75,400) results from deducting 10% of Net Sales ($55,674) from $131,073. The low profit estimate ($19,726) results from deducting 20% of Net Sales ($111,347) from $131,073. All profit figures are rounded to the nearest dollar.