Duke of Love Reconciliation Update

We have completed our reconciliations of the Duke of Love Financials and did uncover the reserve had been previously overstated. Attached is a breakdown of all revenue and expenses since the inception of the offering and as you will see, the current reserve balance going into last week’s race was actually -$23,012.

For the win, Duke earned net proceeds of $78,050, bringing the reserve back to an almost fully funded state. Since all net earnings went to the reserve there will be no payout for this race. However, now that we are just over 95% funded we are hopeful we can continue and add to the shareholder distributions, which to date have totaled $177,640.

In looking at the lifetime financials there are a couple of interesting takeaways that highlight why the expenses have run a little high on this horse.

• • There was a tax liability of 11.5K for his profitable 2022 campaign.

• • Duke Race Day expenses which include jockey, trainer, nomination, and currency conversion charges total 35.8% which is significantly higher than our US average.

Overall, even with higher Canadian race expenses and the tax hit of 2022, Duke of Love has been a pretty strong producer returning $88.92 in shareholder dividends to date, and now has an almost fully funded reserve of $55,037.98 (which represents about $27.50 per share)