Synthetic covenant study — public financial excerpt

Fictional company: Demo Holdings consolidated reporting group
Measurement date: 30 September 2026
Currency: USD

All amounts, supporting records and attestations were created for this
synthetic demonstration agreement. No external legal or financial review
is claimed. This selected financial summary is not the full underlying
record and does not independently establish approval or reproduce that
complete record.

FINANCIAL ASSUMPTIONS

Base EBITDA is USD 1,000,000.00 in each of four discrete calendar quarters:
2025Q4, 2026Q1, 2026Q2 and 2026Q3. Total base EBITDA is USD 4,000,000.00.
These are synthetic accrual accounts for an already consolidated group.

Funded term-loan debt is USD 18,000,000.00. Cash is USD 3,000,000.00,
including USD 1,000,000.00 restricted. The cash deduction is the lower of
unrestricted cash and USD 2,000,000.00. Net debt cannot fall below zero.

A restructuring expense of USD 1,200,000.00 was already deducted from base
EBITDA and has synthetic supporting evidence. If included, its permitted
adjustment is limited to 25% of positive base EBITDA, rounded down to the
nearest cent. A nonpositive base EBITDA has a zero adjustment cap.

Net leverage is net debt divided by adjusted EBITDA. It is within the limit
when the exact ratio is no greater than 3.50. Display rounding is half-up
to two decimals and never decides the outcome. Missing required facts,
unresolved treatment or nonpositive adjusted EBITDA prevent determination.

RESULTS RETAINED FROM THE SYNTHETIC DEMONSTRATION

Included
  Base EBITDA                                  USD 4,000,000.00
  Restructuring expense included                USD 1,200,000.00
  Adjustment cap and permitted adjustment       USD 1,000,000.00
  Adjusted EBITDA                              USD 5,000,000.00
  Cash deducted from debt                       USD 2,000,000.00
  Net debt                                    USD 16,000,000.00
  Displayed net leverage ratio                             3.20
  Outcome: within the 3.50 limit.

Conditional included preview
  The same assumed inclusion produces a displayed ratio of 3.20 and a
  within-limit outcome. This is a conditional preview only. The unresolved
  record remains unchanged; a preview does not confer approval.

Excluded
  The restructuring expense contributes zero to the permitted adjustment.
  Adjusted EBITDA is USD 4,000,000.00. Net debt remains USD 16,000,000.00.
  The displayed ratio is 4.00: outside the 3.50 limit.

Unresolved
  The restructuring treatment is unresolved. Adjusted EBITDA and the
  leverage outcome cannot be determined. No ratio is presented.

ILLUSTRATIVE REFERENCE EXAMPLES

The following are independent financial reference examples, not additional
observed demonstration runs. In each, the expense is included, adjusted
EBITDA is USD 5,000,000.00 and the cash deduction is USD 2,000,000.00.

Debt USD 19,499,999.99
  Net debt USD 17,499,999.99 / adjusted EBITDA USD 5,000,000.00
  Exact ratio 3.499999998; displayed 3.50; within the limit.

Debt USD 19,500,000.00
  Net debt USD 17,500,000.00 / adjusted EBITDA USD 5,000,000.00
  Exact ratio 3.5; displayed 3.50; within the limit.

Debt USD 19,500,000.01
  Net debt USD 17,500,000.01 / adjusted EBITDA USD 5,000,000.00
  Exact ratio 3.500000002; displayed 3.50; outside the limit.

SCOPE

The demonstrated calculation is standalone and synthetic. Real agreements,
legal interpretation, customer pilots and covenant-aware planning need
separate review and qualification. The public files contain selected
financial facts and results, not the full underlying evidence or an
independent reproduction package. The accompanying unsigned manifest
checks only the integrity of these public files.
