Investor Presentaiton

Forgivable Loans Add Complexity to the Interpretation of Our Financial Statements Talent Acquisition Approaches Traditional M&A Hire Revenue Generators 59 Objective Upfront payment Acquire talent collectively Yes Acquire talent individually Yes Form of transaction consideration Tax treatment Need to renew Purchase price to/for LLC, C-Corp, etc. Slower amortization (up to 15 years) Potentially, depending on individual circumstances Forgivable loan(s) Faster amortization (3-8 years) Potentially, depending on individual circumstances Effects on Income Statement Amortize only value of identified intangibles; amounts added back when computing EBITDA Expense 100% of upfront payment over period of loan forgiveness, reflected as a non-cash charge to cost of services; amounts not added back when computing EBITDA Effects on Statement of Cash Flows Transaction consideration reflected in Cash Flow from Investing Activities Transaction consideration reflected in Cash Flow from Operating Activities CRA Charles River Associates

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