THE LEARNING EXPERIENCE ACADEMY OF EARLY EDUCATION

Data Based On: 297 franchised units (232 Mature Centers and 65 Intermediate Centers) open for at least 24 months as of December 31, 2024, were used for revenue calculations. Profit estimates were derived from 16 Mature Company Owned Centers as of 2024.

* All figures are for Fiscal Year 2024. Average Gross Revenue: Calculated as the weighted average of 232 Mature Franchise units (average gross sales $2,163,703) and 65 Intermediate Franchise units (average gross sales $1,863,709). ((232 * 2163703) + (65 * 1863709)) / (232 + 65) = $2,098,047.75. Median Gross Revenue: Calculated as the weighted average of the median gross sales for 232 Mature Franchise units (median $2,160,607) and 65 Intermediate Franchise units (median $1,888,521). ((232 * 2160607) + (65 * 1888521)) / (232 + 65) = $2,101,059.56. Revenue Top Quartile: Represents the average gross sales for the top-performing franchised centers. Calculated as the weighted average of 116 Mature Franchise units that exceeded average gross sales (average $2,647,758) and 35 Intermediate Franchise units that exceeded average gross sales (average $2,332,745). ((116 * 2647758) + (35 * 2332745)) / (116 + 35) = $2,574,741.74. Revenue Bottom Quartile: Represents the average gross sales for the bottom-performing franchised centers. Calculated as the weighted average of 116 Mature Franchise units that were below average gross sales (average $1,679,649) and 30 Intermediate Franchise units that were below average gross sales (average $1,316,500). ((116 * 1679649) + (30 * 1316500)) / (116 + 30) = $1,605,029.34. Best Guess Profit (Low/High): Estimated from the overall average franchised gross revenue ($2,098,047.75) using a range of EBITDAR margins observed in 2024 data for 16 Mature Company Owned Centers. The average EBITDAR margin for these corporate centers was 26.77%, with a range from approximately 17% to 41%. Footnote 2 states that EBITDAR of Mature Franchised Centers is not expected to materially differ from Mature Company Owned Centers, and Footnote 4 indicates that the corporate EBITDAR figures in Statement 2 already account for typical franchisee deductions (like 7% royalties and other fees). A conservative margin of 17% was used for the low estimate ($2,098,047.75 * 0.17 = $356,668.13), and a more optimistic margin of 35% for the high estimate ($2,098,047.75 * 0.35 = $734,316.71).