18. EXHIBITS TO VALUATION REPORT OF. DiMARTINI & SONS

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1 18. EXHIBITS TO VALUATION REPORT OF DiMARTINI & SONS 177

2 178

3 EXHIBIT 1 and 3 DiMartini & Son, Inc. Historical Statement of Income & Ex11enses For the Years Ended December 31, 1996 % 1997 % 2006 % 2007 % 2008 % 2009 % 2010 % Gross Receipts $1 084, $ 1,279, $6,374, $ 8,723, $3 844, $2,689, $3 558, Cost of Goods Sold Purchases 113, , , ,497, , , , Cost of Labor 11, , , , , , , Subcontractors 788, , ,541, ,993, ,140, , ,702, Payroll Taxes and Employee Benefits 2, , , , , , , Genera! Construction Expenses 3, , , , , , , Insurance 3, , , , Truck and Vehicle Expenses Supplies 3, , ,953 1,0 102, , Engineering Fees 5, , , , Outside Services 31, Professional Fees 2, Rubbish Removal 3, Repairs and Maintenance 1, Depreciation Expense 88, , Total Cost of Goods Sold 969, ,171,157 91,5 5,802, ,193, ,184, ,237, ,069, Gross Profit 115, , Operating Expenses Compensation of Officers 16, , , , , , Salaries and Wages 6, , , , , , , Repairs and Maintenance 1, ,0 Rents 6, , , , , , , Taxes and Licenses 2, Interest 4, , , , , , , Depreciation 1,085 0,1 7, , , , , , Advertising 2, , , , , , , Employee Benefit Program 4, ,399 0,5 24, , , , , Vehicle and Travel Expenses 5, , , , , , , Insurance Expense 3, , , , , , , Stationery and Office Expense 11, , , , ,425 0,9 24, , Professional Fees 2, , , , , , , Outside Services 4, , Business Promotion 2, , , , , Small Tools 11, , Job Costs 8, , Employee Leasing Supplies 28, Equipmen1 Rental 1, Telephone 1, , , , , , , Bank Charges 2,941 0, Licenses, Permits and Fees Plans and Specifications 2, , , Administrative Services Expense 3, Postage and Delivery 1, , Dues and Subscriptions 2, Meals and Entertainment 2, , , Miscellaneous Total Operating Expenses , , , , Operating Income (loss) Before Taxes 37, , , ,

4 EXHIBIT 2 and 4 DiMartini & Son, Inc. Historical Balance Sheet As of December 31, Assets Current Assets Cash $ 30,208 $ 95,352 $ 23,771 $ 336,845 $ 655,717 $ 509,731 $ 389,429 Accounts Receivable 323, ,452 1,362, ,215 2,024, , ,380 Notes Receivable 38,459 19, ,867 86,794 53,991 Costs and Earnings in Excess of Billings 33,018 66,608 72, , , ,998 39,918 Prepaid Expenses 43,631 23,508 20,544 8,449 16,239 11,971 14,675 Due from Affiliates 38,929 59,539 Total Current Assets 508, ,110 1,766,349 1,439,214 2,932,853 1,015,063 1,316,402 Buildings & Other Depreciable Assets 118,051 71, , , , , ,565 Less: Accumulated Depreciation (75,615) (36,930) (52,504) (78,256) (96,911) (246,812) (348,647) Buildings & Other Depreciable Assets, Net 42,436 34, , , , , ,918 Other Assets Marketable Securities 110,000 Notes Receivable 72,148 59,648 35,654 31,159 Loans to Shareholders 28,280 32,780 67,946 67,946 Security Deposits 5,875 Total Other Assets 106,303 92, ,600 99, ,000 Total Assets $ 656,760 $ 783,894 $ 2,041,633 $ 1,689,642 $ 3,275,292 $1,295,623 $1,715,320 Liabilities & Stockholder's Equity Liabilities Current Liabilities Accounts Payable $ 18,602 $ 178,931 $ 934,942 $ 689,184 $ 1,166,998 $ 387,846 $ 459,025 Notes Payable 43,145 46, ,031 35,605 51,735 Accrued Expenses 39,184 47,368 43,189 54,184 10,022 8,250 Billings in Excess of Costs and Earnings 225, , , ,658 1,093, , ,066 Due to Affiliate 9,500 98,357 Security Deposits 10,000 Sales Tax Payable 1,531 Income Tax Payable 339 Payroll Taxes Payable 254 Total Current Liabilities 283, ,608 1,437,819 1,050,405 2,540, , ,950 Other Liabilities Notes Payable 75,022 28,644 43,170 57,224 19,505 Other Payables 93,498 93,498 93,498 Total Other Liabilities 168, , ,668 57,224 19,505 Total Liabilities 283, ,608 1,606,339 1,172,547 2,676, , ,455 Stockholder's Equity Capital Stock 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Retained Earnings 365, , , , , , ,865 Total Stockholder's Equity 373, , , , , , ,865 Total Liabilities & Stockholder's Equity $ 656,760 $ 783,894 $ 2,041,633 $ 1,689,642 $ 3,275,292 $1,295,623 $1,715,320 Source: Form 1120S 180

5 EXHIBITS DiMartini & Son, Inc. Adjusted Balance Sheet For the Years Ended Unadjusted Adjustments Adjusted 2010 Debit Credit 2010 Assets Current Assets Cash $ 389,429 $ 389,429 Contract Receivables 872, ,380 Costs and Earnings in Excess of Billings 39,918 39,918 Prepaid Expenses 14,675 14,675 Total Current Assets 1,316,402 1,316,402 Buildings & Other Depreciable Assets 637,565 75,000 (1) 562,565 Less: Accumulated Depreciation (348,647) 19,517 (1) (329,130) Buildings & Other Depreciable Assets, Net 288, ,435 Other Assets - Marketable Securities 110, ,000 Total Assets $ 1,715,320 $ 1,659,837 Liabilities & Stockholder's Equity Liabilities Current Liabilities Accounts Payable $ 459,025 $ 459,025 Notes Payable 51,735 8,332 (1) 43,403 Accrued Expenses & other current liabilities 2,124 2,124 Billings in Excess of Costs and Earnings 382, ,066 Total Current Liabilities 894, ,618 Other Liabilities Notes Payable 19,505 15,386 (1) 4,119 Total Other Liabilities 19,505 4,119 Total Liabilities 914, ,737 Stockholder's Equity Capital Stock 8,000 8,000 Retained Earnings 792,865 75,000 (1) 43,235 (1) 761 '100 Total Stockholder's Equity 800,865 I 769, 1oo 1 Total Liabilities & Stockholder's Equity $ 1,715,320 $ 1,659,837 (1) To eliminate personal boat from the balance sheet. 181

6 EXHIBITS DiMartini & Son, Inc. Analysis of Adjusted Earnings For the Years Ended December 31, Averages Straight Weighted Revenue _$ 6,374,851 $ 8, $ 3,844,323 $2,689,636 $3 558,346 $ 5,038,000 5-Yr 4,260,000 $ 3,364,000 3-Yr $ 3,316,000 Income (Loss) Before Tax Adjustments to Income: Compensation of Officers Depreciation Non-Compulsory Expenses % 128,000 14, ,905 $ 52, % 125,000 16, ,196 $ $ $ % 3.33% 2.48% 160, , , , ,835 84, , , ,099 Total Adjustments 606, , , , Normalized Pre-tax Earnings/Cash Flow Before Adjustment for Reasonable Compensation (Rd.) $ 666, % $ 812, % $ 532,734 $ 452,741 $ 540, % 16.8% 15.2% 131% 5-Year Straight Average 5-Year Weighted Average 3-Year Straight Average 3-Year Weighted Average $ 601,000 $ 560,000 $ 509,000 $ 510,000 For Valuation: Normalized Revenue- 5 Year Straight Average %of Revenue (Equal to 5-Year Straight Average) $5,038, % Normalized Pre-tax Earnings/Cash Flow Before Reasonable Compensation Less: Reasonable Compensation Normalized Pre-tax Earnings/Cash Flow (Rd.) $ 601,000 (150,000 $

7 DiMartini & Son, Inc. EXHIBIT 7 Capitalization Rate - Build-Up Method Riskless Component (1) 4.21% Risk Components (2): Equity Risk Premium Size Premium Specific Company Risk Premium 6.70% 6.36% 3.00% Total Risk Components 16.06% Discount Rate Less: Growth Capitalization Rate 20.27% 3.00% 17.27% (1) 20-year U.S. Treasury Securities' average as of December 30, 2010 (2) Based on data reported by Ibbotson Associates Valuation Edition 2011 Yearbook 183

8 DiMartini & Son, Inc. EXHIBIT 8 Capitalization of Earnings Method Normalized Pre-Tax Earnings/Cash Flow (Exhibit 6) $ 451,000 Less: 40% ~180,400) Normalized After-tax Earnings/Cash Flow 270,600 x 1 + Growth Rate 1.03 Growth Adjusted Earnings/Cash Flow 278,718 Divided by: Capitalization Rate 17.27% Indicated Value (Rd.) $ 1,614,

9 DiMartini & Son, Inc. EXHIBIT 9 Excess Earnings Method Net Tangible Assets (Rd.) (Exhibit 5) $ 769,100 Normalized Pre-tax Earnings Before Return on Assets (Exhibit 6) $ 451,000 Less: Reasonable Return on Net Tangible Assets ( 5 %) (38,455) Pre-tax Excess Earnings (Rd.) 413,000 Multiple 1.00 Goodwill 413,000 Indicated Value (Rd.) $ 1,182,

10 DiMartini & Son, Inc. EXHIBIT 10 Fair Market Value As of December 30, 2010 Fair Market Method Value Weighting Valuation Capitalization of Earnings (Exhibit 8) $ 1,614,000 50% $ 807,000 Excess Earnings Method (Exhibit 9) $ 1,182,000 50% 591,000 Fair Market Value 100% $ 1,398,

BALANCE SHEET NANOLOGIX, INC. (A DEVELOPMENT STAGE COMPANY) September 30, 2012 and September ASSETS

BALANCE SHEET NANOLOGIX, INC. (A DEVELOPMENT STAGE COMPANY) September 30, 2012 and September ASSETS BALANCE SHEET September 30, 2012 and 2011 ASSETS September 30 2012 2011 CURRENT ASSETS Cash and cash equivalents $ 114,761 $ 270,092 Accounts receivable 63,300 - Prepaid expenses 7,400 3,207 TOTAL CURRENT