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Ernest Company Project: City Annex Building Construction Renovations ITB 250101 Date: 3/5/2025 Contact: Olexandr Kaltsev, CFO Agenda Company Information 4 Legal Company Name 4 Office Locations & Website 4 State Registrations & Licensing Information 5 Insurance Certificates 5 Other Company Information 5 Qualifications & Experience 6 About Us 6 Team Experience & Licensing 6 Approach to Project Execution 6 Bonding & Insurance 6 Safety & Quality Commitment 6 Safety Measures 6 Quality Management Excellence 7 Project Execution Strategies 7 Relevant Experience & Past Projects 7 Select Construction Projects 7 Reference Letters 8 Reference Letter (Adrian Homes) 8 Reference Letter (ProMD Health) 8 Reference Letter (Spacio Build Design) 8 Staffing Plan 9 Organizational Chart 9 Preconstruction Team 9 Project Execution Team 9 Office Staff 10 Ernest Company Resume 11 Bid Pricing & Attachments 18 Bid Price Sheet 18 Bid Bond & performance Bond 18 Compliance & Affidavits 19 Non-Collusion Affidavit 19 Public Entity Crimes Form 19 Equal Opportunity / Affirmative Action Form 19 Conflict of Interest Statement 19 Dispute Disclosure Form 19 Anti-Kickback Affidavit 19 Contractor Anti-Boycott Certification 19 Ernest Energy Inc. ITB 250101 2 of 20 E-Verify Affidavit 19 Affidavit of Compliance with Anti-Human Trafficking Laws 19 Attachments 21 Ernest Energy Inc. ITB 250101 3 of 20 Company Information Legal Company Name Ernest Energy Inc. DBA Names: Ernest Energy Inc. operates under its legal name only and has no DBA (Doing Business As) names. Office Locations & Website Corporate Headquarters: 5201 Blue Lagoon Dr., Suite 800, Miami, FL 33126 Additional Locations: Ernest Energy operates across Florida, Texas, and Georgia as a licensed General Contractor, Mechanical, Electrical and Plumbing Contractor . Website: www.joinernest.com Contact Details ● Contact: Olexandr Kaltsev ● Office Address: 5201 Blue Lagoon Dr., Suite 800, Miami, FL 33126 ● Telephone: +1 (305) 707-8582 ● Email: olex@joinernest.com Business Overview Ernest Energy Inc. is a Miami-based, tech-enabled general contractor with a strong presence across Florida, Texas, and Georgia. Founded in 2019, we have successfully delivered commercial, residential, and public sector construction projects with an emphasis on efficiency, technology-driven solutions, and high-quality craftsmanship. Our experienced team leverages cutting-edge construction management technology to optimize timelines, budgets, and resource allocation. Select Par tners & Client s Ernest Energy Inc. ITB 250101 4 of 20 State Registrations & Licensing Information ● General Contractor - CBC1258091 / CGC1525179 ● Certified Mechanical Contractor - CMC1251312 ● Master Electrician - EC13012625 ● Master Plumber - CFC1429100 Insurance Certificates All required proof of insurance documents are attached [Attachment A], including: ● General Liability Insurance ● Umbrella/Excess Liability ● Worker ’s Compensation Insurance ● Business Automobile Liability Insurance ● Builder ’s Risk Insurance (Confirmed, to bind upon bid award) Other Company Information Florida Division of Corporations (Delaware Good Standing Certificate and Sunbiz Report) Ernest Energy Inc. is active and in good standing with the State of Delaware and Florida Division of Corporations. The Sunbiz report is attached as verification. [Attachment B&C] Tax & Financial Documentation ● W-9 Form - [ Attachment D] ● Bonding Capacity Letter - [ Attachment E] ● Certified Financial Statements - [Attachment F] Ernest Energy Inc. ITB 250101 5 of 20 Qualifications & Experience About Us Founded in Miami, FL, in 2019, Ernest has quickly become a leading self-performing General Contractor (GC) specializing in construction projects ranging from $500K to $40M+. Our expertise spans commercial, residential, hospitality, and educational sectors. With a highly skilled team of in-house construction executives, estimators, field trade leaders, and a Virtual Design Construction (VDC) team, we deliver cost-efficient, high-quality projects with seamless execution and coordination. What sets Ernest apart is our proprietary technology and self-performing capabilities across key trades, allowing us to maintain direct control over quality, costs, and schedules. Unlike traditional GCs that rely heavily on subcontractors, our in-house teams specialize in mechanical, electrical, and plumbing trades, ensuring consistency and superior craftsmanship in every project. Team Experience & Licensing Our leadership and key personnel bring over 100 years of shared construction experience, with specialized licensing in MEP trades. Approach to Project Execution Ernest adopts a structured approach that includes: ● Pre-Construction Planning: BIM/Revit modeling to optimize execution efficiency. ● Self-Performing Capabilities: Reducing reliance on subcontractors in key trade areas to control costs and quality. ● Project Management Excellence: Leveraging experienced superintendents, project managers and advanced technology solutions to manage the projects. ● Sustainability & Compliance: Ensuring adherence to Florida Building Codes and LEED principles (as applicable). Bonding & Insurance ● Single project bonding capacity of $5,000,000 with an A.M. best-rated surety. ● Fully insured to meet the City of Sunny Isles Beach requirements. Safety & Quality Commitment Safety and quality are not just priorities—they are our moral duty. At Ernest, we embed a culture of safety and quality from day one, empowering our teams to uphold the highest standards. Safety Measures ● Site Safety Manual – Developed in collaboration with executive stakeholders to ensure complete project safety. ● Pre-Task Planning & Hazard Analysis – Conducted for every project phase to mitigate risks. ● Mandatory 100% Project Safety Orientation – All employees must attend and adhere to safety training. ● Daily Safety Briefings & Inspections – Ensuring site safety compliance at all times. ● Full-Time Safety Manager – Oversees risk awareness and ensures best practices are followed. Ernest Energy Inc. ITB 250101 6 of 20 Quality Management Excellence At Ernest, we integrate rigorous quality control, technological solutions, and assurance measures throughout every phase of our projects: ● Quality Control – Materials inspected upon arrival; standardized checklists for key project milestones; digital project tracking. ● Quality Assurance – Regular inspections to verify compliance through structured testing and third-party assessments. ● Punch List Management – Early identification and resolution of deficiencies before project completion. ● Close-Out & Completion Documentation – Accurate as-built records maintained and provided upon project completion. Project Execution Strategies We are committed to integrating lean construction, advanced project management, and strategic procurement to ensure efficiency, quality, and on-time delivery while minimizing risks. Our approach aligns with Construction Industry Institute (CII) Best Practices, focusing on: ● Front-End Planning: Defining all project elements before execution to minimize risks. ● Material Management: Utilizing advanced procurement strategies and technology tracking to secure materials ahead of schedule. ● Constructability Reviews: Engaging stakeholders early to optimize efficiency and reduce rework. ● Supply Chain Optimization: Partnering with trusted vendors for cost-effective and timely sourcing. Our structured Quality Management Plan (QMP) ensures seamless execution, compliance with contract requirements, and optimal performance of all project elements. Ernest is uniquely positioned to deliver the City Annex Building Construction Renovations project with efficiency, expertise, and cost-effectiveness. Relevant Experience & Past Projects Ernest has successfully delivered projects of similar scope and complexity, showcasing our expertise in construction renovations, commercial build-outs, and institutional projects. Select Construction Projects 1. Down South Apartments – Homestead, FL ($29.65M) 2. ProMD Health – Wellington, FL ($1.84M) 3. Nobu Hotel Miami Beach – Miami Beach, FL ($23.02M) 4. Triton Cay Luxury Apartments – Fort Myers, FL ($32.14M) 5. Katy Ranch Townhomes – Houston, TX ($12.83M) 6. Advenir Academy – Palm Beach, FL ($11.46M) 7. Marriott Hotel Renovation – Pompano Beach, FL ($7.61M) 8. Florida International University – Miami, FL ($5.39M) 9. Orange County Public Schools – Orlando, FL ($8.30M) 10. Visa – Miami, FL ($3.70M) Ernest Energy Inc. ITB 250101 7 of 20 Reference Letters Reference Letter (Adrian Homes) ● Attachment Q Reference Letter (ProMD Health) ● Attachment R Reference Letter (Spacio Build Design) ● Attachment S Ernest Energy Inc. ITB 250101 8 of 20 Staffing Plan Organizational Chart Preconstruction Team Our Preconstruction Team is designed to ensure seamless planning and accurate budgeting. A Preconstruction Lead oversees the overall team strategy, while an Account Executive (AE) ensures alignment with project objectives. The Estimating Lead, supported by a team of Estimators, focuses on cost analysis, feasibility assessments, and value optimization. With this structure, we can proactively address challenges, provide detailed estimates, and set a strong foundation for a successful project. Estimator Leads Estimators Account Executives Pre-Con Lead / VDC Team Jake Clark Dennis Belser Carl Anello John Osborne Brian Engstrom Ken Dickerson Kevin Diaz Carlton Fernandes Thomas Harper Marshall Elder Caroline Cloninger Maria Fuentes Christopher Moskal Jim Holbrook Andrew Jamshidi Matthew Green Seabrook Riddle Andy Peart Jennifer Elson Kathlyn Mutuc Kenneth Dickerson Francis Sanchez Angie Murcia Zaya Shiba Jhonnatan Coronado Bill Suggs Carlos Paredes Project Execution Team The Project Execution Team is structured for efficiency and accountability. A Project Manager (PM) leads overall execution, while a Project Superintendent oversees daily site operations and coordination. Trade Superintendents manage specific scopes of work, ensuring seamless collaboration among trades. Foremen lead crews on the ground, maintaining quality and progress, while Project Coordinators support logistics, documentation, and communication. This structure ensures a well-organized, high-performing team dedicated to delivering a successful project. Project Managers Superintendents Foremen Project Coordinators Joshua Carreiro Vincenzo Gizzi Jan Rodriguez Andrés Martinez Nicholas Denton Ricardo Abreu Carlos Mora Danna Peñaloza Pearl Echavez Alexander Diaz Edisson Cardoza Vanessa Rodriguez Mohnte Elizondo Danny Diaz Eduardo Peron Mauricio Vallejo Ernest Energy Inc. ITB 250101 9 of 20 Nick Gaidai Luis Malagon-Perez Clay Mainegra Diego Londoño Robert Pereida Miguel Martinez Maribel Sanchez George Rivera Dustin Bruce Jonathan Wright Yinay Rodriguez Amed Migenes Roilan Valdes Jorge Viera Office Staff This section includes essential team members supporting payroll, accounting, human resources, and recruiting to ensure seamless operations across all departments. Accounting & Payroll Human Resources & Recruiting Consulting & Leadership Mary Rose Anzano – Payroll Specialist Jessica Schertz – Director, Human Resources Michael Regheb - Chief Executive Officer Rahul Arora – Financial Reporting Nick Zeiter - Director, Recruiting Olexandr Kaltsev - Chief Financial Officer Dariia Tsiapenko – Accountant Shawna Lindsey – Senior Recruiter Jack Morgan – Quality Assurance and Safety Brett Williamson – Controller Hernan Rodriguez – Recruiter Erik Marcille - Billing Specialist Gabriela Sartoretti – Recruiter Ernest Energy Inc. ITB 250101 10 of 20 Ernest Company Resume Vince Gizzi Construction Executive and General Contractor Superintendent A seasoned General Contractor, Vince began his career building single-family homes before expanding into large-scale commercial and multi-family developments across Florida. With a keen eye for cost-saving opportunities, proactive conflict resolution, and seamless project management from the field to the office, he ensures efficiency and excellence in every build. Project Name: Melo Residence Project Description: Custom, luxury single family home spanning over 10,000 sqft Client / Developer: Paolo Melo Project Value: $6M Project Name: Eden Rock Hotel Project Description: Transformed 204 Nobu rooms, and renovated the Eden Roc rooms, the pool, lobby, and all common use areas. Client / Developer: Key International Project Value: $23M Project Name: Hyde Beach Luxury Resort Project Description: Renovation of 407 premier luxury units overlooking the Atlantic Ocean Client / Developer: Related Project Value: $14M Project Name: Condominium Portfolio Project Description: Completion of over 1,600 condo projects including: Axis, 151 at Biscayne, The Mint, 400 Sunny Isles, Beach Walk, Eden House, Casa Costa, The Ivy, Paramount Bay, Vizcayne Ernest Energy Inc. ITB 250101 11 of 20 Yinay Rodriguez Senior Superintendent, Electrical With over 13 years of electrical construction leadership experience in Florida, Junior currently manages 60 electrical technicians at Ernest. His project portfolio includes major developments like The Legacy Hotel $38M, Bezel at Miami Worldcenter $28M, and Margaritaville Resort $30M, demonstrating consistent success in delivering large-scale electrical projects across hospitality, residential, and retail sectors. Project Name: The Legacy Hotel & Condominiums Project Description: Oversaw the electrical infrastructure for this 46-story mixed-use development featuring 255 hotel rooms and 278 residences. Managed a team of superintendents to ensure high-quality power distribution, lighting, and safety systems for this luxury property. Client / Developer: Royal Palm Companies Project Size: $38M Project Name: Bezel at Miami Worldcenter Project Description: Led electrical system installations for this 43-story residential tower with 434 units. Directed field teams to optimize energy efficiency, lighting, and electrical safety compliance in this high-end urban development. Client / Developer: The Moinian Group & ZOM Living Project Size: $28M Project Name: Tower One Project Description: Supervised electrical teams for this mixed-use high-rise, overseeing power distribution, emergency systems, and smart technology integration for residential and commercial spaces. Client / Developer: Related Project Size: $23M Project Name: Margaritaville Hollywood Beach Resort Project Description: Directed electrical infrastructure installations for this 18-story beachfront resort spanning 845,000 sq. ft., featuring 369 guest rooms, a 1,056-space parking garage, and 30,000 sq. ft. of convention and ballroom space. Managed energy-efficient lighting, emergency power systems, and smart hotel technology. Client / Developer: Lon Tabatchnick Development Project Size: $30M Project Name: Cable USA Naples Project Description: Managed electrical system upgrades for this industrial manufacturing facility, ensuring Ernest Energy Inc. ITB 250101 12 of 20 compliance with high-capacity power needs and operational safety standards for high-volume cable production. Client / Developer: Cable USA Project Size: $14M Project Name: The Ritz-Carlton, South Beach Project Description: Led electrical renovations for this luxury oceanfront resort, overseeing high-end lighting design, backup power solutions, and automation systems to meet five-star hospitality standards. The property features 376 newly renovated guest rooms and suites, offering guests a premier hospitality experience. Client / Developer: Marriott International Project Size: $12M Luis Malagon-Perez Senior Superintendent, Mechanical With over 15 years of mechanical construction experience, Luis currently serves as Senior Mechanical Superintendent at Ernest. His portfolio includes major developments like Tyndall Air Force Base $22M, Brightline Train Station $20M, and Universal Epic Universe $17M, demonstrating expertise in mechanical piping, refrigeration, CHW piping systems, and HVAC installation. Project Name: Tyndall Air Force Base Project Description: Led the electrical infrastructure reconstruction for Tyndall Air Force Base, part of a comprehensive $5 billion effort to rebuild the base after its destruction by Hurricane Michael in 2018. Oversaw the installation of advanced power distribution systems, lighting, and emergency backup solutions across multiple facilities, ensuring resilience and support for the base's transition to accommodate F35A Lightning II aircraft operations. Client / Developer: United States Air Force Project Size: $22M Project Name: Brightline Train Station Project Description: Managed the electrical systems installation for the Brightline MiamiCentral Station, a key component of the 9-acre transportation hub connecting Miami to Fort Lauderdale and West Palm Beach. Directed teams in implementing power distribution, lighting, and safety systems within the 2,250,500-square-foot facility, ensuring seamless integration with existing transit networks and enhancing passenger experience Client / Developer: Brightline Project Size: $20M Ernest Energy Inc. ITB 250101 13 of 20 Project Name: Universal Epic Universe Project Description: Supervised electrical installations for Universalʼs Epic Universe theme park, encompassing power distribution, lighting, and control systems across various attractions and facilities within the expansive park. Ensured adherence to safety standards and optimized energy efficiency to enhance guest experiences. Client / Developer: Universal Parks & Resorts Project Size: $17M Project Name: Mason Academy HVAC System Installation Project Description: Oversaw the installation of a high-efficiency HVAC system for Mason Academy, ensuring optimal climate control, air quality, and energy efficiency for the educational facility. The project included air distribution, ventilation, and temperature regulation systems to create a comfortable and sustainable learning environment. Client / Developer: Mason Academy Project Size: $4.6M Danny Diaz Senior Superintendent, Plumbing Danny Diaz is a Senior Plumbing Superintendent with 25 years of experience managing complex plumbing projects across industries. His portfolio includes SpaceX, Walt Disney, Universal Studios, NASA, Coca-Cola, SeaWorld, UCF, Hard Rock Café, Hilton Hotels, and high-end projects in New York. Known for his expertise in large-scale installations, he ensures efficiency, safety, and quality while keeping projects on schedule and within budget. Project Name: SpaceX Facilities Plumbing Infrastructure Project Description: Led plumbing infrastructure projects across various SpaceX facilities, including a 53,000-square-foot refurbishment center at Port Canaveral, Florida, and a 521,000-square-foot Starlink equipment production facility in Bastrop County, Texas. Oversaw the installation and maintenance of complex piping systems, ensuring efficient water supply, drainage, and compliance with aerospace industry standards. Collaborated closely with engineering teams to support mission-critical operations. Client / Developer: SpaceX Project Size: $2.5M Project Name: Walt Disney Vacation Villas Project Description: Managed comprehensive plumbing renovations for Disney's Vacation Villas at the Disney Springs area. The project encompassed overhauling plumbing systems in multiple villas, including Grand Villas approximately 2,800 square feet in size, enhancing water efficiency and guest comfort. Responsibilities Ernest Energy Inc. ITB 250101 14 of 20 included upgrading fixtures, pipelines, and integrating modern water conservation technologies. Client / Developer: Walt Disney Project Size: $1.6M Project Name: Universal Studios Park Upgrades Project Description: Supervised multiple plumbing projects within Universal Studios' theme park attractions. Projects ranged from $600K to $900K, focusing on installing and upgrading water distribution and drainage systems to support various rides and facilities. Ensured minimal disruption to park operations during installations and adherence to safety standards. Client / Developer: Universal Studios Project Size : $6M Project Name: NASA Facility Enhancement Project Project Description: Directed the installation and maintenance of high-precision plumbing systems at NASA facilities. Ensured all systems met stringent aerospace standards, supporting various research and operational needs. Collaborated with NASA engineers to design and implement solutions for specialized requirements. Client / Developer: NASA Project Size: Confidential Project Name: Coca-Cola Factory Project Description: Led plumbing infrastructure upgrades at a Coca-Cola manufacturing facility, improving water distribution, waste management, and production efficiency. Client / Developer: Coca-Cola Inc Project Size: $1.8M Project Name: Mason Academy Project Description: Led the complete plumbing system installation for Mason Academy in Collier County, Florida, ensuring high-quality infrastructure, water efficiency, and compliance with all industry standards. Work included water supply, drainage, and fixture installations to support a modern learning environment. Client / Developer: Mason Academy Project Size: $4.6M Project Name: SeaWorld Aquatic Systems Upgrade Project Description: Managed plumbing infrastructure enhancements at SeaWorld, focusing on water filtration and pipeline installations to support aquatic exhibits. Ensured the systems met environmental standards and provided optimal conditions for marine life. Client / Developer: SeaWorld Entertainment Inc. Ernest Energy Inc. ITB 250101 15 of 20 Project Size: $1.5M Nick Gaidai Senior Project Manager Nick Gaidai is a seasoned Project Manager with a proven track record overseeing a portfolio of projects exceeding $30 million across Florida, Texas, and Georgia. Specializing in financial strategy, cost efficiency, and operations, he has successfully led high-value initiatives, with individual projects exceeding $5 million. Notable projects include Triton Cay Luxury Apartments Phase II and Mason Academy, where his keen attention to detail and precision have driven a 95% on-budget performance rate, ensuring timely and cost-effective project completion. Prior to construction, Nick spent time in investment banking at Credit Suisse. He advised on over $20 billion in M&A, LBO, and financing transactions, working closely with C-suite executives and institutional investors across multiple industries. Project Name: Mason Academy Project Description: Completion of full MEP Mechanical, Electrical, and Plumbing) systems for the Mason Academy in Collier County, Florida, ensuring high-quality infrastructure, energy efficiency, and compliance with all industry standards. Client / Developer: Mason Academy Project Size: $4.6M Project Name: Triton Cay Phase II - Silver Hills Project Description: Full-scale electrical work for an 8-story multifamily apartment building at Triton Cay Fort Myers Phase 2, including residential units, common areas, and parking facilities. Client / Developer: Silver Hills Construction, LLC Project Size: $4.1M Project Name: OCPS College Park Middle School & Hunterʼs Creek Middle School Project Description: Led full project execution, overseeing electrical demolition, underground work, rough-ins (wall, ceiling, and fire alarm), and installation of lighting, power distribution, HVAC power, grounding, and teledata systems. Managed timelines, budget, and coordination across trades to ensure seamless project completion. Client / Developer: Orange County Public Schools OCPS Project Size: $2.1M Project Name: Visa Miami Tenant Improvement Project Description: Electrical upgrades and infrastructure improvements for Visaʼs Miami office, enhancing power distribution, lighting, and building systems to support a modern and efficient workspace Ernest Energy Inc. ITB 250101 16 of 20 Client / Developer: Visa Project Size: $1.8M Project Name: Somerset Academy Avenir Project Description: Electrical infrastructure for Somerset Academy Avenir, a multi-story educational facility spanning approximately 20,000sqf in Palm Beach Gardens, Florida. The project includes power distribution, lighting, and critical systems to support a modern and energy-efficient learning environment. Client / Developer: Southcrest Management Project Size: $1.8M Michael Ragheb Chief Executive Officer Michael Ragheb is an accomplished operations executive with a track record of driving efficiency, scalability, and strategic execution. At Ernest, he oversees daily operations, ensuring seamless collaboration across teams, optimizing processes, and implementing systems that support sustainable growth. His leadership is instrumental in refining operational structures, improving workflow efficiency, and enhancing overall business performance. With a background spanning both multinational corporations and high-growth startups, Michael has successfully led large-scale operational transformations, managed complex supply chains, and introduced innovative solutions that improve productivity and reduce costs. His expertise in process automation, team leadership, and data-driven decision-making enables businesses to scale efficiently while maintaining operational excellence. Olexandr Kalt sev Chief Financial Officer Olexandr Kaltsev is a results-driven finance leader with a strong focus on operations, project management, and budgeting. At Ernest, he optimizes financial processes, drives cost efficiencies, and ensures projects are delivered on time and within budget. He plays a key role in resource allocation, forecasting, and financial oversight to support business growth. With experience in both multinational corporations and high-growth business startups, Olexandr has successfully managed large-scale budgets, improved operational workflows, and implemented financial controls that enhance profitability and streamline execution. Ernest Energy Inc. ITB 250101 17 of 20 Bid Pricing & Attachments Bid Price Sheet ● Attachment G Bid Bond & Performance Bond ● Attachment F Ernest Energy Inc. ITB 250101 18 of 20 Compliance & Affidavits Non-Collusion Affidavit ● Attachment H Public Entity Crimes Form ● Attachment I Equal Opportunity / Affirmative Action Form ● Attachment J Conflict of Interest Statement ● Attachment K Dispute Disclosure Form ● Attachment L Anti-Kickback Affidavit ● Attachment M Contractor Anti-Boycott Certification ● Attachment N E-Verify Affidavit ● Attachment O Affidavit of Compliance with Anti-Human Trafficking Laws ● Attachment P Ernest Energy Inc. ITB 250101 19 of 20 Attachments Ernest Energy Inc. ITB 250101 20 of 20 CITY OF SUNNY ISLES BEACH BUILDING DEPARTMENT RELOCATION TO ANNEX INVITATION TO BID 25-01-01 PROJECT NO. 21-1011 ROUGH ORDER OF MAGNITUDE 01/23/2025 no item unit quantity price subtotal 1 GENERAL REQUIREMENTS $- 2 SITE WORK $160,650.00 3 CONCRETE $553,500.00 4 MASONRY $17,500.00 5 METALS $85,500.00 6 WOOD & PLASTIC $75,500.00 7 THERMAL & MOISTURE PROTECTION $178,000.00 8 DOORS & WINDOWS $241,000.00 9 FINISHES $213,550.00 10 SPECIALTIES $111,000.00 11 EQUIPMENT $27,988.50 12 FURNISHINGS BIDDERS MUST USE THS EXCEL SPREADSHEET TO SUBMIT PRICE SHEET. FAILURE TO SUBMIT THIS PRICE SHEET MAY RESULT IN NON-RESPONSIVE BID SUBMISSION. Demolition $58,500.00 Driveway Striping Plan/Resurface $28,500.00 Landscaping $18,500.00 Termite Treatment $3,650.00 Testing $4,500.00 Pavers $30,000.00 Walk Way $17,000.00 Pilings $44,500.00 Foundation $75,500.00 Concrete Flooring Pads and 2.5" Overlay $55,000.00 Generator Pad $13,500.00 Walls/Inter/Exter./Masonary $365,000.00 Masonary $17,500.00 Steel $30,500.00 Ladder Details $14,500.00 Canopy Details $40,500.00 Fencing/Gates $34,500.00 Shelving Millwork $25,500.00 Kitchen/Millwork $15,500.00 TPO Roofing $155,000.00 Dewatering $13,500.00 Drainage Mat $9,500.00 Doors $128,500.00 Windows $112,500.00 Ceiling $65,050.00 Painting $30,000.00 Kitchen $18,500.00 Flooring $100,000.00 Restrooms $47,500.00 Break Room $18,500.00 Lobby Interior $25,500.00 Conference/Meeting Room $19,500.00 Equipment $17,888.50 Storage $4,100.00 Office Trailer $6,000.00 Lobby Lounge Furniture $8,952.96 Clerk S Reception Furniture $6,078.90 Business Center Supervisor Furniture $5,178.79 Permit Supervisor Furniture $5,453.38 Business Centre Admin Furniture $12,535.05 Call Center Furniture $8,595.21 Break Room Furniture $20,138.31 Admin Workstation Furniture $8,220.32 Private Offices OF - 1 Furniture $22,292.18 Private Offices OF - 2 Furniture $3,933.94 WKST-1 and WKST-2 $19,232.31 WKST-3 and WKST-4 $65,833.28 Storage Furniture $14,422.67 Conference Room Furniture $13,412.58 VIV Chairs - Replace Line $22,243.68 Task Seating Aeron $8,377.60 Task Seating Versus $15,401.25 Signage $28,500.00 Not Applicable for this scope of work HVAC Equipment $125,908.57 Air Distribution $195,945.65 Underground $5,860.96 Piping/Drainage $47,398.56 Plumbing Fixtures $11,593.91 Plumbing Equipment $21,217.38 General Conditions $44,669.88 Insulation $4,129.59 Generator/ATS $102,529.99 Distribution Equipment $20,425.78 Feeders $64,089.99 Site Lighting $1,569.59 Site Lighting Branch $799.27 Lighting Fixtures $137,311.07 Lighting Branch $12,901.98 Lighting Controls $17,007.46 Devices $19,808.21 Furniture/ Floor Duct Sytem $17,385.54 Floorboxes $5,856.00 Branch $14,324.47 HVAC / Mechanical Circuits $13,270.80 Teledata Conduit $10,902.46 Teledata Wiring $32,355.35 Fire Alarm $61,453.99 Security/CCTV $2,776.32 Access Control $4,108.45 Lightning Protection $23,006.43 Grounding $9,685.66 General Conditions $3,998.81 Insurance %lump 1.0%$29,852.83 Bond %lump 0.7%$20,896.98 Overhead & Profit lump 5.0%$149,264.15 $/sf $342.21 $260,302.41 13 SPECIAL CONSTRUCTION $28,500.00 14 CONVEYING SYSTEMS $- 15 MECHANICAL $456,724.50 16 ELECTRICAL $575,567.62 Sub Total $2,985,283.03 GRAND TOTAL =$3,185,296.99 1 REVISED QUESTIONNAIRE: BIDDERS MUST COMPLETE THE ATTACHED REVISIED QUESTIONNAIRE AND SUBMIT WITH YOUR BID. ADDENDUM # 5 REVISION DATE: February 27, 2025 TO: ALL PLANHOLDERS FROM: PURCHASING MANAGER ITB NO.: INVITATION TO BID 25-01-01 CITY ANNEX BUILDING CONSTRUCTION RENOVATIONS SUBJECT: ADDENDUM NO. 5 PLEASE NOTE RECEIPT OF THIS ADDENDUM BY COMPLETING ACKNOWLEDGEMENT OF ADDENDA’ WITH YOUR PROPOSAL’S SUBMISSION. 29 ITB 25-01-01 CITY ANNEX BUILDING CONSTRUCTION RENOVATIONS CITY OF SUNNY ISLES BEACH 18070 Collins Ave. | Sunny Isles Beach, FL 33160 305.792.1707 | sibfl.net | Purchasing@sibfl.net QUALIFICATION REQUEST INCLUDE WITH YOUR BID Contractor must list projects of similar project scope fulfilling the following qualification requests: 1. List Project Management Personnel. Personnel cannot be changed without written approval. Project Manager 2. How many years has your organization been in business as a Contractor? 3. List current workload. 4. Is the bidder subcontracting any part of this work? If so, give details to major key subcontractor’s name, address, phone number and type of work to be performed. Also, indicate the percentage of the total work to be performed by the subcontractor. List current workload of major sub- contractors. 5. The business is a (sole proprietorship) (partnership) (corporation) and name of owner: 30 ITB 25-01-01 CITY ANNEX BUILDING CONSTRUCTION RENOVATIONS CITY OF SUNNY ISLES BEACH 18070 Collins Ave. | Sunny Isles Beach, FL 33160 305.792.1707 | sibfl.net | Purchasing@sibfl.net 6. Has your company ever been debarred or terminated for default on a government contract? Has an agency (Owner) submitted a claim against your performance bond with the surety company? 7. Identify your debris disposal plan. 8.Bidder must list any exceptions taken to the terms and condition in this ITB. 9. Discuss what strategies the submitter will utilize to keep this project on schedule, considering long lead-times on fabrication. 10. Discuss strategies the submitter will implement to ensure the project is kept on budget. 31 ITB 25-01-01 CITY ANNEX BUILDING CONSTRUCTION RENOVATIONS CITY OF SUNNY ISLES BEACH 18070 Collins Ave. | Sunny Isles Beach, FL 33160 305.792.1707 | sibfl.net | Purchasing@sibfl.net 11.Have you personally inspected the plans and location, are there any concerns that may impede your performance on this project? 12.Describe the submitter’s attributes, which make the submitter best-suited for this project. END OF SECTION 13. Proposed timeframe to complete project (time is of the essence): ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? INSR ADDL SUBR LTR INSD WVD PRODUCER CONTACT NAME: FAXPHONE (A/C, No):(A/C, No, Ext): E-MAIL ADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY)(MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $ DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE $ PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT OTHER:$ COMBINED SINGLE LIMIT $(Ea accident) ANY AUTO BODILY INJURY (Per person)$ OWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $AUTOS ONLY AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $ DED RETENTION $ PER OTH- STATUTE ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N N / A (Mandatory in NH) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03) CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) $ $ $ $ $ The ACORD name and logo are registered marks of ACORD 3/3/2025 (800) 845-8437 35289 ERNEST ENERGY INC, AIRSMITH PROS INC, AIRSMITH PROS TX INC, ELECTRIK PROS LLC, ELECTRIK PROS TX INC 5201 Blue Lagoon, Suite 800 Miami, FL 33126 20508 23043 A 1,000,000 X 7094461697 10/19/2024 10/19/2025 100,000 15,000 1,000,000 2,000,000 2,000,000 1,000,000B BUA 7094461702 10/19/2024 10/19/2025 5,000,000A 7094461716 10/19/2024 10/19/2025 5,000,000 10,000 B 7094461733 10/19/2024 10/19/2025 1,000,000 N 1,000,000 1,000,000 C Pollution Liability ICELLUW00162051 10/25/2024 Ea. Occ Limit 1,000,000 City of Sunny Isles Beach is included as an additional insured with respects to General Liability when required by written contract. City of Sunny Isles Beach 18070 Collins Ave, 3rd floor Sunny Isles Beach, FL 33160 ERNEENE-01 GYOON Acrisure Southeast Partners Insurance Services, LLC 1317 Citizens Blvd Leesburg, FL 34748 The Continental Insurance Company Valley Forge Insurance Company Liberty Mutual Insurance Company X 10/19/2025 X X X X X X X Delaware The First State Page 1 6942742 8300 Authentication: 203072554 SR# 20250910306 Date: 03-04-25 You may verify this certificate online at corp.delaware.gov/authver.shtml I, CHARUNI PATIBANDA-SANCHEZ, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY "ERNEST ENERGY, INC." IS DULY INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE SO FAR AS THE RECORDS OF THIS OFFICE SHOW, AS OF THE FOURTH DAY OF MARCH, A.D. 2025. AND I DO HEREBY FURTHER CERTIFY THAT THE ANNUAL REPORTS HAVE BEEN FILED TO DATE. AND I DO HEREBY FURTHER CERTIFY THAT THE SAID "ERNEST ENERGY, INC." WAS INCORPORATED ON THE FIRST DAY OF AUGUST, A.D. 2022. AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE TAXES HAVE BEEN PAID TO DATE. State of Florida Department of State I certify from the records of this office that ERNEST ENERGY,INC.is a Delaware corporation authorized to transact business in the State of Florida, qualified on August 15,2022. The document number of this corporation is F22000005146. I further certify that said corporation has paid all fees due this office through December 31,2024,that its most recent annual report/uniform business report was filed on April 3,2024,and that its status is active. I further certify that said corporation has not filed a Certificate of Withdrawal. Given under my hand and the Great Seal of the State of Florida at Tallahassee,the Capital,this the Fourth day of March,2025 Tracking Number:9073540004CU To authenticate this certificate,visit the following site,enter this number,and then follow the instructions displayed. https://services.sunbiz.org/Filings/CertificateOfStatus/CertificateAuthentication Form W-9 (Rev. March 2024) Request for Taxpayer Identification Number and Certification Department of the Treasury Internal Revenue Service Go to www.irs.gov/FormW9 for instructions and the latest information. Give form to the requester. Do not send to the IRS. Before you begin. For guidance related to the purpose of Form W-9, see Purpose of Form, below.Print or type. See Specific Instructions on page 3.1 Name of entity/individual. An entry is required. (For a sole proprietor or disregarded entity, enter the owner’s name on line 1, and enter the business/disregarded entity’s name on line 2.) 2 Business name/disregarded entity name, if different from above. 3a Check the appropriate box for federal tax classification of the entity/individual whose name is entered on line 1. Check only one of the following seven boxes. Individual/sole proprietor C corporation S corporation Partnership Trust/estate LLC. Enter the tax classification (C = C corporation, S = S corporation, P = Partnership) . . . . Note: Check the “LLC” box above and, in the entry space, enter the appropriate code (C, S, or P) for the tax classification of the LLC, unless it is a disregarded entity. A disregarded entity should instead check the appropriate box for the tax classification of its owner. Other (see instructions) 3b If on line 3a you checked “Partnership” or “Trust/estate,” or checked “LLC” and entered “P” as its tax classification, and you are providing this form to a partnership, trust, or estate in which you have an ownership interest, check this box if you have any foreign partners, owners, or beneficiaries. See instructions . . . . . . . . . 4 Exemptions (codes apply only to certain entities, not individuals; see instructions on page 3): Exempt payee code (if any) Exemption from Foreign Account Tax Compliance Act (FATCA) reporting code (if any) (Applies to accounts maintained outside the United States.) 5 Address (number, street, and apt. or suite no.). See instructions. 6 City, state, and ZIP code Requester’s name and address (optional) 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN, later. Note: If the account is in more than one name, see the instructions for line 1. See also What Name and Number To Give the Requester for guidelines on whose number to enter. Social security number –– or Employer identification number – Part II Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. I am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and, generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later. Sign Here Signature of U.S. person Date General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/FormW9. What’s New Line 3a has been modified to clarify how a disregarded entity completes this line. An LLC that is a disregarded entity should check the appropriate box for the tax classification of its owner. Otherwise, it should check the “LLC” box and enter its appropriate tax classification. New line 3b has been added to this form. A flow-through entity is required to complete this line to indicate that it has direct or indirect foreign partners, owners, or beneficiaries when it provides the Form W-9 to another flow-through entity in which it has an ownership interest. This change is intended to provide a flow-through entity with information regarding the status of its indirect foreign partners, owners, or beneficiaries, so that it can satisfy any applicable reporting requirements. For example, a partnership that has any indirect foreign partners may be required to complete Schedules K-2 and K-3. See the Partnership Instructions for Schedules K-2 and K-3 (Form 1065). Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS is giving you this form because they Cat. No. 10231X Form W-9 (Rev. 3-2024) 5201 BLUE LAGOON DR STE 800 MIAMI, FL 33126 2/25/2025 8 8 3 6 4 4 1 9 6 Ernest Energy Inc. Doc ID: 151504674fe1294606d0f82fe1969905232bfa5a W9 Ernest Energy Ernest_Energy_Inc_-_W9_-_2025.pdf 151504674fe1294606d0f82fe1969905232bfa5a MM / DD / YYYY Signed 02 / 25 / 2025 17:50:37 UTC Sent for signature to Olexandr Kaltsev (olex@joinernest.com) from finance@joinernest.com IP: 204.48.38.218 02 / 25 / 2025 17:58:16 UTC Viewed by Olexandr Kaltsev (olex@joinernest.com) IP: 204.48.38.218 02 / 25 / 2025 17:58:23 UTC Signed by Olexandr Kaltsev (olex@joinernest.com) IP: 204.48.38.218 The document has been completed.02 / 25 / 2025 17:58:23 UTC February 27, 2025 City of Sunny Isles Beach, Florida 18070 Collins Ave Sunny Isles Beach, FL 33160 Re: Ernest Energy Inc. Project: City Annex Building ConstrucƟon RenovaƟons - ITB # 25-01-01 To Whom It May Concern: This is to advise you that our office has provided Bid, Performance, and Payment Bonds for Ernest Energy Inc. Their surety is The Gray Casualty & Surety Company which carries an A.M. Best RaƟng of A- VII and is listed in the Department of the Treasury’s Federal Register. Based upon normal and standard underwriƟng criteria at the Ɵme of the request, we should be in a posiƟon to provide Performance and Payment Bonds for projects up to $5,000,000 for a single bond and $15,000,000 in the aggregate. We obviously reserve the right to review final contractual documents, bond forms and obtain saƟsfactory evidence of funding prior to final commitment to issue bonds. We cannot assume liability to any third party, including you, if we do not execute said bonds. Ernest Energy Inc. is an excellent contractor, and we hold them in the highest regard. We feel extremely confident in our contractor and encourage you to offer them an opportunity to execute any upcoming projects. This leƩer is not an assumpƟon of liability, nor is it a bid or performance and payment bond. It is issued only as a bonding reference requested by our respected client. If you should have any quesƟons, please do not hesitate to give me a call. Sincerely, JarreƩ Merlucci Resident Agent ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2022 ERNEST ENERGY, INC. AND SUBSIDIARIES CONTENTS Page Independent Accountants’ Compilation Report 1 Consolidated Financial Statements Consolidated Balance Sheet at December 31, 2022 2-3 Consolidated Statement of Operations for the Year Ended December 31, 2022 4 Consolidated Statement of Stockholders’ Equity for the Year Ended December 31, 2022 5 Consolidated Statement of Cash Flows for the Year Ended December 31, 2022 6-7 Supplementary Information Consolidating Balance Sheet at December 31, 2022 8-9 Consolidating Statement of Operations for the Year Ended December 31, 2022 10 Consolidated Schedule of Earnings for the for the Year Ended December 31, 2022 11 Schedule of Contract in Process at December 31, 2022 12 Consolidated Schedule of General and Administrative Expenses for the Year Ended December 31, 2022 13 INDEPENDENT ACCOUNTANTS’ COMPILATION REPORT To the Stockholders Ernest Energy Inc. and Subsidiaries Miami, Florida Management is responsible for the accompanying financial statements of Ernest Energy Inc. and Subsidiaries (the “Company”), which comprise the consolidated balance sheet at December 31, 2022, and the related consolidated statements of operations and stockholders’ equity and cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statement on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. We do not express an opinion, a conclusion, nor provide any assurance on these financial statements. Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the financial statements, they might influence the user’s conclusion about the Company's financial position, results of operations, and cash flows. Accordingly, the financial statements are not designed for those who are not informed about such matters. The supplementary information on pages 8-13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The supplementary information was subject to our compilation engagement. We have not audited or reviewed the supplementary information and do not express an opinion, a conclusion, nor provide any assurance on such information. GRASSI & CO., CPAs, P.C. Park Ridge, New Jersey March 20, 2024 1 ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 2022 See independent accountants’ compilation report. 2 CURRENT ASSETS: Cash 1,364,975$ Contract receivables 343,194 Other current assets 24,308 Total Current Assets 1,732,477 PROPERTY AND EQUIPMENT, NET 41,577 OTHER ASSETS: Goodwill, net 787,700 Other intangible assets, net 248,846 Deferred tax asset 241,080 Total Other Assets 1,277,626 TOTAL ASSETS 3,051,680$ ASSETS ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 2022 See independent accountants’ compilation report. 3 CURRENT LIABILITIES: Accounts payable 128,818$ Contract liabilities 22,847 Accrued expenses and other current liabilities 59,846 Total Current Liabilities 211,511 LONG-TERM LIABILITIES: Contingent liabilities 685,000 Note payable from stockholder 32,999 Total Long-Term Liabilities 717,999 Total Liabilities 929,510 CONTINGENCIES EQUITY: Common stock - $.01 par value; 10,000,000 shares authorized, 90,000 shares issued and outstanding 900 Additional paid-in capital 3,435,000 Accumulated deficit and members' deficit (1,313,730) Total Equity 2,122,170 TOTAL LIABILITIES AND EQUITY 3,051,680$ LIABILITIES AND EQUITY ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 4 CONTRACT REVENUES 1,512,466$ CONTRACT COSTS 1,579,037 GROSS LOSS (66,571) GENERAL AND ADMINISTRATIVE EXPENSES 411,447 CORPORATE PAYROLL 343,379 SALES AND MARKETING EXPENSES 243,676 DEPRECIATION AND AMORTIZATION 206,804 LOSS FROM OPERATIONS (1,271,877) OTHER (EXPENSE) INCOME: Start-up costs (343,552) Other income 60,619 Total Other Expense (282,933) LOSS BEFORE BENEFIT FROM INCOME TAXES (1,554,810) BENEFIT FROM INCOME TAXES 241,080 NET LOSS (1,313,730)$ ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 5 Accumulated Additional Deficit and Paid-In Members'Total Shares Amount Capital Deficit Equity BALANCE AT JANUARY 1,2022 90,000 900$ 915,000$ -$ 915,900$ STOCKHOLDERS' CONTRIBUTIONS - - 2,520,000 - 2,520,000 NET LOSS - - - (1,313,730) (1,313,730) BALANCE AT DECEMBER 31, 2022 90,000 900$ 3,435,000$ (1,313,730)$ 2,122,170$ Common Stock ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 6 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from contracts 1,192,119$ Cash paid for contract costs (1,397,643) Cash paid for general and administrative costs (1,288,770) Cash Disbursed For Operating Activities (2,686,413) Net Cash Used In Operating Activities (1,494,294) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of Electrik Pros, LLC (608,730) Net Cash Used In Operating Activities (608,730) CASH FLOWS FROM FINANCING ACTIVITIES: Stockholders' contributions 2,520,000 Payments on note payable to stockholder (467,001) Net Cash Provided By Financing Activities 2,052,999 NET DECREASE IN CASH (50,025) CASH, BEGINNING OF YEAR 1,415,000 CASH, END OF YEAR 1,364,975$ ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 7 RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES: NET LOSS (1,313,730)$ ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES: Bad debt expense 16,073 Depreciation and amortization 206,804 Loss on disposal of property and equipment 8,803 Deferred income taxes (241,080) Increase in assets: Contract receivables (359,267) Other current assets (23,408) Increase in liabilities: Accounts payable 128,818 Contract liabilities 22,847 Accrued expenses and other current liabilities 59,846 Total Adjustments (180,564) NET CASH USED IN OPERATING ACTIVITIES (1,494,294)$ SCHEDULE OF NONCASH INVESTING ACTIVITIES: Acquisition of Electrik Pros, LLC 1,400,000$ SUPPLEMENTARY INFORMATION ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING BALANCE SHEET DECEMBER 31, 2022 See independent accountants’ compilation report. 8 Ernest Electrik Consolidated Eliminations Energy, Inc.Pros, LLC HMO Energy, Inc. CURRENT ASSETS: Cash 1,364,975$ -$ -$ 303,167$ 1,061,808$ Contract receivables 343,194 - - 343,194 - Intercompany receivables - (1,089,408) - - 1,089,408 Investment in subsidiary - (1,400,900) 900 - 1,400,000 Other current assets 24,308 - - 7,648 16,660 Total Current Assets 1,732,477 (2,490,308) 900 654,009 3,567,876 PROPERTY AND EQUIPMENT, NET 41,577 - - 41,577 - OTHER ASSETS: Goodwill, net 787,700 - - 787,700 - Other intangible assets, net 248,846 - - 248,846 - Deferred tax asset 241,080 - - - 241,080 Total Other Assets 1,277,626 - - 1,036,546 241,080 TOTAL ASSETS 3,051,680$ (2,490,308)$ 900$ 1,732,132$ 3,808,956$ ASSETS ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING BALANCE SHEET DECEMBER 31, 2022 See independent accountants’ compilation report. 9 Ernest Electrik Consolidated Eliminations Energy, Inc.Pros, LLC HMO Energy, Inc. CURRENT LIABILITIES: Accounts payable 128,818$ -$ -$ 92,644$ 36,174$ Contract liabilities 22,847 - - 22,847 - Accrued expenses and other current liabilities 59,846 - - 59,846 - Total Current Liabilities 211,511 - - 175,337 36,174 LONG-TERM LIABILITIES: Contingent liabilities 685,000 - - - 685,000 Intercompany payable - (1,089,408) - 1,089,408 - Note payable from stockholder 32,999 - - - 32,999 Total Long-Term Liabilities 717,999 (1,089,408) - 1,089,408 717,999 Total Liabilities 929,510 (1,089,408) - 1,264,745 754,173 CONTINGENCIES EQUITY: Common stock 900 (900) 900 - 900 Additional paid-in capital 3,435,000 (1,400,000) - 1,400,000 3,435,000 Accumulated deficit and members' deficit (1,313,730) - - (932,613) (381,117) Total Equity 2,122,170 (1,400,900) 900 467,387 3,054,783 TOTAL LIABILITIES AND EQUITY 3,051,680$ (2,490,308)$ 900$ 1,732,132$ 3,808,956$ LIABILITIES AND EQUITY ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 10 Ernest Electrik Consolidated Eliminations Energy, Inc.Pros, LLC HMO Energy, Inc. CONTRACT REVENUES 1,512,466$ (210,573)$ -$ 1,512,466$ 210,573$ CONTRACT COSTS 1,579,037 - - 1,579,037 - GROSS LOSS (66,571) (210,573) - (66,571) 210,573 GENERAL AND ADMINISTRATIVE EXPENSES 411,447 (210,573) - 376,992 245,028 CORPORATE PAYROLL 343,379 - - 144,097 199,282 SALES AND MARKETING EXPENSES 243,676 - - 198,768 44,908 DEPRECIATION AND AMORTIZATION 206,804 - - 206,804 - LOSS FROM OPERATIONS (1,271,877) - - (993,232) (278,645) OTHER (EXPENSE) INCOME: Start-up costs (343,552) - - - (343,552) Other income 60,619 - - 60,619 - Total Other (Expense) Income (282,933) - - 60,619 (343,552) LOSS BEFORE BENEFIT FROM INCOME TAXES (1,554,810) - - (932,613) (622,197) BENEFIT FROM INCOME TAXES 241,080 - - - 241,080 NET LOSS (1,313,730)$ -$ -$ (932,613)$ (381,117)$ ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATED SCHEDULE OF EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 11 Contract Contract Gross Revenues Costs Profit (Loss) CONTRACT IN PROCESS 95,623$ 74,103$ 21,520$ SERVICE REVENUE 1,416,843 1,504,934 (88,091) 1,512,466$ 1,579,037$ (66,571)$ ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRACT IN PROCESS FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 12 December 31, 2022 Costs Contract Contract Contract Incurred Percent Billings Contract Contract Work Load Cost To Price Revenues To Date Complete To Date Revenues Costs Remaining Complete 1001 - Dior Mall $484,549 $109,051 $95,623 $74,103 $21,520 19.73%$118,340 $22,717 $95,623 $74,103 $21,520 $388,926 $301,395 $87,531 Estimated Earnings At For the Year EndedDecember 31, 2022From Inception To December 31, 2022 Management Estimates Profit Gross Total Contract Future Gross Profit Billings In Profit Gross Estimated Gross Profit Excess Of Costs And ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATED SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022 See independent accountants’ compilation report. 13 Bad debt 16,073$ Computer and internet 49,292 Insurance 36,329 Office expenses 7,906 Other general and administrative expenses 49,469 Professional fees 159,602 Rent expense 61,532 Travel, meals and lodging 22,349 Utilities 8,895 TOTAL GENERAL AND ADMINISTRATIVE EXPENSES 411,447$ ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 ERNEST ENERGY, INC. AND SUBSIDIARIES CONTENTS Page Independent Accountants’ Review Report 1 Consolidated Financial Statements Consolidated Balance Sheet at December 31, 2023 2-3 Consolidated Statement of Income for the Year Ended December 31, 2023 4 Consolidated Statement of Equity for the Year Ended December 31, 2023 5 Consolidated Statement of Cash Flows for the Year Ended December 31, 2023 6-7 Notes to Consolidated Financial Statements 8-23 Supplementary Information Independent Accountants’ Review Report on Supplementary Information 24 Consolidating Balance Sheet at December 31, 2023 25-26 Consolidating Statement of Operations for the Year Ended December 31, 2023 27 Schedule of Contract Receivables at December 31, 2023 28 Consolidated Schedule of Earnings for the Year Ended December 31, 2023 29 Schedule of Contracts Completed During the Year Ended December 31, 2023 30 Schedule of Contracts in Process at December 31, 2023 31 Schedule of Contract Assets and Liabilities at December 31, 2023 32 Consolidated Schedule of General and Administrative Expenses for the Year Ended December 31, 2023 33 INDEPENDENT ACCOUNTANTS’ REVIEW REPORT To The Stockholders and Members Ernest Energy, Inc. and Subsidiaries Miami, Florida We have reviewed the accompanying consolidated financial statements of Ernest Energy, Inc. and Subsidiaries, which comprise the consolidated balance sheet as of December 31, 2023, and the related consolidated statements of income, equity and cash flows for the year ended, and the related notes to the consolidated financial statements. A review includes primarily applying analytical procedures to management’s financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the consolidated financial statements as a whole. Accordingly, we do not express such an opinion. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control sufficient to provide a reasonable basis for the preparation and fair presentation of consolidated financial statements that are free from material misstatement whether due to fraud or error. Accountants’ Responsibility Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the consolidated financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. We are required to be independent of Ernest Energy, Inc. and Subsidiaries and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our review. Accountants’ Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. GRASSI & CO., CPAs, P.C. Park Ridge, New Jersey April 10, 2024 1 ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 2 CURRENT ASSETS: Cash 3,362,708$ Contract receivables 1,716,457 Contract assets, including conditional retainage of $210,116 603,581 Other receivables 87,734 Inventories 131,617 Prepaid expenses and other current assets 166,387 Total Current Assets 6,068,484 PROPERTY AND EQUIPMENT, NET 17,126 OTHER ASSETS: Goodwill, net 701,767 Other intangible assets, net 133,994 Research and development, net 295,149 Security deposits 6,221 Deferred tax asset 241,723 Total Other Assets 1,378,854 TOTAL ASSETS 7,464,464$ ASSETS ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 3 CURRENT LIABILITIES: Accounts payable 1,071,884$ Contract liabilities, including conditional retainage of $95,775 10,921 Accrued expenses and other current liabilities 213,439 Total Current Liabilities 1,296,244 LONG-TERM LIABILITIES: Employee stock option plan 3,736 Contingent liabilities 245,000 Total Long-Term Liabilities 248,736 Total Liabilities 1,544,980 CONTINGENCIES EQUITY: Common stock, $0.00001 par value; 17,000,000 shares authorized; 9,033,891 issued and outstanding 2,595 Preferred stock: Series Seed 1 - $0.00001 par value; 2,835,392 shares authorized, issued and outstanding 28 Series Seed 2 - $0.00001 par value; 1,845,572 shares authorized issued and outstanding 18 Additional paid-in capital 6,695,454 Retained earnings (accumulated deficit) and members' equity (778,611) Total Equity 5,919,484 TOTAL LIABILITIES AND EQUITY 7,464,464$ LIABILITIES AND EQUITY ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 4 CONTRACT REVENUES 6,940,179$ CONTRACT COSTS 4,389,072 GROSS PROFIT 2,551,107 GENERAL AND ADMINISTRATIVE EXPENSES 719,088 CORPORATE PAYROLL EXPENSES 635,992 SALES AND MARKETING EXPENSES 402,867 DEPRECIATION AND AMORTIZATION 238,440 INCOME FROM OPERATIONS 554,720 OTHER INCOME (EXPENSE): Start-up costs (80,719) Interest income 60,475 Total Other Expense, net (20,244) INCOME BEFORE BENEFIT FROM INCOME TAXES 534,476 BENEFIT FROM INCOME TAXES 643 NET INCOME 535,119$ ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EQUITY FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 5 Retained Earnings (Accumulated Additional Deficit) and Paid-In Members' Total Shares Amount Shares Amount Shares Amount Capital Equity Equity BALANCE AT DECEMBER 31, 2022 9,000,000 $ 900 - -$ - -$ $ 3,435,000 $ (1,313,730) $ 2,122,170 STOCKHOLDERS' CONTRIBUTIONS - - - - - - 290,500 - 290,500 EMPLOYEE STOCK OPTION 33,891 1,695 - - - - - - 1,695 ADDITIONS TO PREFERRED STOCK - - 1,637,376 16 - - 2,969,984 - 2,970,000 CONVERTED SAFE NOTES - - - - - - (3,610,000) - (3,610,000) SAFE NOTES CONVERTED TO PREFERRED STOCK - SERIES SEED 1 - - 1,198,016 12 - - 2,194,988 - 2,195,000 SAFE NOTES CONVERTED TO PREFERRED STOCK - SERIES SEED 2 - - - - 1,845,572 18 1,414,982 - 1,415,000 NET INCOME - - - - - - - 535,119 535,119 BALANCE AT DECEMBER 31, 2023 9,033,891 $ 2,595 2,835,392 $ 28 1,845,572 $ 18 $ 6,695,454 $ (778,611) $ 5,919,484 Common Stock Series Seed 1 Series Seed 2 Preferred Stock ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 6 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from contracts 4,875,601$ Interest income received 60,475 Cash Provided By Operating Activities 4,936,076 Cash paid for contract costs (3,656,145) Cash paid for general and administrative costs (2,075,084) Cash Disbursed For Operating Activities (5,731,229) Net Cash Used In Operating Activities (795,153) CASH FLOWS FROM INVESTING ACTIVITIES: Contingent payment for historical acquisition of Electrik Pros, LLC (440,000) Net Cash Used In Investing Activities (440,000) CASH FLOWS FROM FINANCING ACTIVITIES: Stockholders' contributions 3,260,454 Employee stock plan 5,431 Cash Provided For Financing Activities 3,265,885 Payments on note payable to stockholder (32,999) Net Cash Provided By Financing Activities 3,232,886 NET INCREASE IN CASH 1,997,733 CASH, BEGINNING OF YEAR 1,364,975 CASH, END OF YEAR 3,362,708$ ERNEST ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report and notes to consolidated financial statements. 7 RECONCILIATION OF NET INCOME TO NET CASH USED IN OPERATING ACTIVITIES: NET INCOME 535,119$ ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH USED IN OPERATING ACTIVITIES: Depreciation and amortization 238,440 Deferred income taxes (643) Bad debt 66,596 Increase in assets: Contract receivables (1,439,859) Contract assets (603,581) Other receivables (87,734) Inventory (131,617) Prepaid expenses and other current assets (166,387) Research and development (270,841) Security deposits (6,221) Increase (decrease) in liabilities: Accounts payable 943,066 Contract liabilities (11,926) Accrued expenses and other current liabilities 140,435 Total Adjustments (1,330,272) NET CASH USED IN OPERATING ACTIVITIES (795,153)$ ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 8 Note 1 - Nature of Operations and Principles of Consolidation Business Activities Ernest Energy, Inc. (“Ernest Energy”) is a Delaware corporation that was incorporated in August 2022. Ernest Energy specializes in software development, technology integration, and project management for the construction industry. Ernest Energy operates in the State of Florida and serves residential and commercial customers. Ernest Energy has three wholly-owned subsidiaries: Electrik Pros, LLC, HMO Energy, Inc. and Airsmith Pros, Inc. Electrik Pros, LLC ("Electrik Pros") is an electrical contractor. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Electrik Pros provides electrical maintenance and construction services. The members of Electrik Pros are not liable for the debts of Electrik Pros. Airsmith Pros, Inc. ("Airsmith Pros") is an HVAC and mechanical contractor. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Airsmith Pros provides mechanical maintenance and construction services. HMO Energy, Inc. is a software development and project management company that provides services for the construction industry. It was merged into Ernest Energy in February 2024. Principles of Consolidation The consolidated financial statements include the accounts of Ernest Energy and its wholly- owned subsidiaries Electric Pros, HMO Energy Inc., and Airsmith Pros (collectively referred to as the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Note 2 - Summary of Significant Accounting Policies Revenue and Cost Recognition The Company recognizes its revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. ASC 606 provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. An entity should apply the following five-step process to recognize revenue: (1) Identify the contract with a customer; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to the performance obligations in the contract; and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 9 Note 2 - Summary of Significant Accounting Policies (cont’d.) Revenue and Cost Recognition (cont’d.) Construction Contracts Revenues on construction contracts are recognized as performance obligations are satisfied, due to the continuous transfer of control to the customer. The customer typically controls the asset under construction, as the performance creates or enhances an asset that the customer controls as the asset is created or enhanced. The Company’s construction contracts are generally accounted for as a single performance obligation, since the Company is providing a significant service of integrating components into a single project. Pursuant to master service agreements, repair and maintenance contracts, and fixed-price contracts, transaction prices are determined under unit-price, cost-plus and fixed-price lump-sum, respectively. Under contracts where the Company has a right to consideration in an amount that directly corresponds to the value of completed performance, the Company recognizes revenue when services are performed and contractually billable. This would apply to unit-price and repair and maintenance contracts where the Company recognizes revenue as completed based on contractual pricing amounts at a point in time. The Company determines the point in time by evaluating when the customer obtains control of the asset and the Company has a present right to receive payment for the asset. Under fixed-price lump-sum contracts, the Company recognizes revenue with an “input method” using the percentage-of-completion method, whereby progress towards completion is recognized according to the percentage of incurred costs to estimated total costs. This method best depicts the transfer of control to the customer, which occurs as the Company incurs costs on its contracts. Incurred costs represent work performed, which corresponds with and thereby best depicts the transfer of control to the customer. This method is used because management considers the cost-to-cost method the most appropriate in the circumstances. Because the Company almost always acts as a principal in the construction contracts, gross revenues are recognized. The Company is considered the principal because the Company controls the contractually specified goods and services before they are transferred to the customer. Revenues on uninstalled materials are recognized when control is transferred to the customer. Under certain circumstances (e.g., transfer of control occurs significantly before services are provided, the cost of the material is significant), revenue on certain uninstalled third-party materials is recognized when the cost is incurred; however, profit is not recognized until the material is ultimately installed in the project. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 10 Note 2 - Summary of Significant Accounting Policies (cont’d.) Revenue and Cost Recognition (cont’d.) Service and Maintenance Contracts For service and maintenance contracts in which the Company has the right to consideration from the customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date, revenue is recognized when services are performed. Revenue recognized on these contracts is calculated as the amount to which the Company has the right to invoice for the services performed. The Company determines the point in time by evaluating when the customer obtains control of the asset and the Company has a present right to receive payment for the asset. The customer can generally obtain the benefits from, and direct the use of, the asset. The Company’s service contracts are generally accounted for as a single performance obligation. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract assets on the consolidated balance sheet. Practical Expedients The Company utilizes certain practical expedients as follows: • In cases where the Company has an unconditional right to consideration from a customer in an amount that corresponds directly with the value of the performance completed to date, the Company recognizes revenue in the amount to which there is a right to invoice for services performed. • The contract price is not adjusted for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a service to a customer and when the customer pays for that service will be one year or less. • Incremental customer contract acquisition costs are expensed as they are incurred when the amortization period is less than one year in duration. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones, or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include conditional retainage and unbilled amounts typically resulting from revenue under long- term contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognition exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue, net of conditional retainage. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 11 Note 2 - Summary of Significant Accounting Policies (cont’d.) Revenue and Cost Recognition (cont’d.) Contract Assets and Liabilities (cont’d.) The Company’s contract assets and liabilities are reported in a net position on a contract-by- contract basis at the end of each reporting period. In accordance with normal construction industry practice, the Company includes in current assets and current liabilities amounts relating to construction contracts realizable and payable over a period in excess of one year. The opening and closing balances of contract receivables, contract assets and contract liabilities from contracts with customers are as follows: Contract Receivables, Net Contract Assets Contract Liabilities Balance, January 1, 2023 343,194$ -$ -$ Balance, December 31, 2023 1,716,457$ 603,581$ 10,921$ Combining Contracts The Company evaluates whether two or more contracts with the same customer should be combined and accounted for as a single contract, and whether a single or combined contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and could change the amount of revenue and profit recorded in each period. Performance Obligations Generally, the Company’s contracts contain one performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. The Company’s performance of the contracts with customers typically provides a significant service of integrating a complex set of tasks and components into a single project or capability (even if that single project results in the delivery of multiple units), and as such, the entire contract is accounted for as one performance obligation. The transaction price is allocated to the performance obligation and recognized as revenue when, or as, the performance obligation is satisfied with the continuous transfer of control to the customer. Less commonly, a contract may be considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 12 Note 2 - Summary of Significant Accounting Policies (cont'd.) Revenue and Cost Recognition (cont’d.) Transaction Price The transaction price is the amount of consideration the Company expects to receive in exchange for transferring goods and services to the customer. The consideration promised in a contract with customers may include both fixed and variable amounts to the extent that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (i.e., probable and capable of being estimated). Variable Consideration The nature of the Company’s contracts gives rise to several types of variable consideration, including claims, bonuses, incentives and/or penalties and liquidating damages. The Company includes in the contract estimates additional revenue for variable consideration when the Company believes it has an enforceable right to the modification, the amount can be estimated reliably, and it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company uses the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount. These estimates are based on management’s assessment of legal enforceability, Company performance, and all information (historical, current, and forecasted) that is reasonably available to the Company. Contract Modifications Contract modifications are routine in the performance of the Company’s contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract. The Company accounts for contract modifications as a separate contract when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the standalone selling price of the additional goods or services included in the modification. Cost Recognition Contract costs include all direct material and labor costs and all other direct and indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 13 Note 2 - Summary of Significant Accounting Policies (cont'd.) Revenue and Cost Recognition (cont’d.) Cost Recognition (cont’d.) Costs incurred that do not contribute to satisfying performance obligations are excluded from the cost input calculation as these amounts are not reflective of transferring control to the customer. Costs are generally recognized as incurred. Under certain circumstances, costs incurred in the period related to future activity of the contract or costs that benefit the entire performance obligation (fulfillment costs) may be capitalized. Changes in Contract Performance Changes in job performance, job conditions and estimated profitability, including those arising from settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. Because of the inherent uncertainty in estimating the costs to complete on contracts in process, it is at least reasonably possible that the estimates used will change in the near term. Economic Factors • Type of customers - The Company works with various public agencies, private agencies, and municipalities. • Geographical location of customers - The Company’s customers are located within the State of Florida. • Type of contracts - The Company operates under fixed-price contracts. The length of the Company’s contracts is expected to be 6 to 18 months. In addition, the Company provides maintenance services. Ernest Energy recognizes revenues under the accrual basis of accounting. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates included in the preparation of the consolidated financial statements relate to the recoverability and useful lives of long-lived assets. Actual results could differ from those estimates. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 14 Note 2 - Summary of Significant Accounting Policies (cont'd.) Contract Receivables The Company carries its contract receivables net of an allowance for credit losses. The measurement and recognition of credit losses involves the use of judgment. Management’s assessment of expected credit losses includes consideration of current and expected economic conditions, market and industry factors affecting the Company’s customers (including their financial condition), the aging of account balances, historical credit loss experience, customer concentrations, customer credit-worthiness, the availability of mechanics’ and other liens, and the existence of payment bonds and other sources of payment. Management evaluates its experience with historical losses and then applies this historical loss ratio to financial assets with similar characteristics. The Company’s determination of risk pools may be adjusted for changes in customer, economic, market, or other circumstances. The Company may also establish an allowance for credit losses for specific receivables when it is probable that the receivable will not be collected and the loss can be reasonably estimated. Amounts are written off against the allowance when they are considered to be uncollectible, and reversals of previously reserved amounts are recognized if a specifically reserved item is settled for an amount exceeding the previous estimate. Contract receivables include billed amounts for services provided to customers for which the Company has an unconditional right to payment. Billed amounts for which payment is contingent on anything other than the passage of time are included in contract assets and contract liabilities on a contract-by-contract basis. When payment of the retainage is contingent upon the Company fulfilling its obligations under the contract, it does not meet the criteria to be included in contract receivables and remains in the contract’s respective contract asset or contract liability, determined on a contract-by-contract basis. Retainage for which the Company has an unconditional right to payment that is only subject to the passage of time is included in contract receivables. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. The costs of additions and betterments are capitalized and expenditures for repairs and maintenance are expensed in the period incurred. When items of property and equipment are sold or retired, the related costs and accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in income. Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives of the respective assets as follows: Vehicles 5 years Research and Development Costs The Company capitalizes research and development costs related to internally developed software. Research and development costs are amortized over an estimated useful life of three years using the straight-line method. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 15 Note 2 - Summary of Significant Accounting Policies (cont'd.) Goodwill Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Under FASB Accounting Standards Update (“ASU”) No. 2014- 02, Intangibles - Goodwill and Other (Topic 350): Accounting for Goodwill and Other, goodwill will be amortized over 10 years on a straight-line basis. Goodwill of the subsidiaries shall be tested for impairment when events occur or circumstances change that would more likely than not reduce the fair value of the subsidiaries’ goodwill below the carrying amount. These events are triggering events. Under ASU No. 2021-03, Intangibles - Goodwill and Other (Topic 350) Accounting Alternative for Evaluating Triggering Events, a reporting entity that elects this alternative is not required to monitor for goodwill impairment triggering events during the reporting period but, instead, should evaluate the facts and circumstances as of the end of each reporting period to determine whether a triggering event exists and, if so, whether it is more likely than not that goodwill is impaired. No impairment was deemed to exist at December 31, 2023. Definite-Lived Intangibles Intangible assets consist of trade names derived from the acquisition of a business. Intangible assets are amortized over an estimated useful life of three years using the straight-line method. The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured as the amount by which the carrying amount, if any, exceeds its fair value. No impairment was deemed to exist at December 31, 2023. Business Combinations Accounting for business combinations requires management to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although management believes the assumptions and estimates which were made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain of the intangible assets the Company has acquired include future expected cash flows from product sales, customer contracts and acquired technologies, expected costs to develop in-process research and development into commercially viable products, estimated cash flows from the projects when completed, and discount rates. Unanticipated events and circumstances may occur that may affect actual results. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 16 Note 2 - Summary of Significant Accounting Policies (cont'd.) Leases The Company recognizes leases in accordance with FASB ASC Topic 842, Leases, which requires all lessees to recognize a right-of-use asset and a lease liability for all lease agreements with a term greater than 12 months, initially measured at the present value of the lease payments. For the year ended December 31, 2023, the Company did not have leases with a term greater than 12 months. The short-term lease expense was $156,188 for the year ended December 31, 2023. Income Taxes The Company accounts for income taxes pursuant to the asset and liability method, which requires deferred tax assets and liabilities to be computed annually for temporary differences between the financial statement for U.S. GAAP reporting and income tax reporting. The accompanying provision for income taxes represents only taxes due plus deferred taxes related primarily to differences between accrual and cash differences in financial statement and income tax reporting, net operating loss carryforwards, depreciation and amortization, and other related timing differences. The deferred tax asset or liability, as applicable, represents the future tax return consequences of those differences, which will either be deductible or taxable when the asset or liability is recovered or settled. The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has determined that the Company had no uncertain tax positions as of December 31, 2023. The Company uses cash basis of accounting for income tax purposes. Adoption of ASU No. 2016-13 As of January 1, 2023, the Company adopted FASB ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and all subsequently issued related amendments, which changed the methodology used to recognize impairment of the Company’s contract receivables. Under this ASU, financial assets are presented at the net amount expected to be collected, requiring immediate recognition of estimated credit losses expected to occur over the asset’s remaining life. This is in contrast to previous U.S. GAAP, under which credit losses were not recognized until it was probable that a loss had been incurred. The Company performed its expected credit loss calculation based on historical accounts receivable write-offs, including consideration of then-existing economic conditions and expected future conditions. The adoption of this ASU did not have a significant impact on the consolidated financial statements. Note 3 - Concentration of Credit Risk The Company maintains cash balances in several financial institutions. Such balances are insured by the Federal Deposit Insurance Corporation ("FDIC") for up to $250,000 per institution. From time to time, the Company's balances may exceed these limits. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 17 Note 4 - Contract Receivables Contract receivables, net are summarized as follows at December 31, 2023: BILLED: Completed contracts 19,818$ Contracts in process 1,585,670 Retainage receivables 23,478 Service contracts 150,598 Less: Allowance for credit losses (63,107) 1,716,457$ The Company expects to collect all of the passage of time retainage within one year. Note 5 - Contract Assets and Contract Liabilities Information with respect to contract assets and contract liabilities on uncompleted contracts at December 31, 2023, is as follows: Contract costs incurred 2,347,417$ Estimated earnings 1,144,558 3,491,975 Less: Billings to date 3,233,619 258,356$ Included in the accompanying consolidated balance sheet as contract assets and contract liabilities: Costs and estimated earnings in excess of billings on uncompleted contracts 365,052$ Conditional retainage 210,116 Unbilled contract receivable 28,413 Total Contract Assets 603,581$ Billings in excess of costs and estimated earnings on uncompleted contracts (106,696)$ Conditional retainage 95,775 Total Contract Liabilities (10,921)$ Included in contract assets and contract liabilities is conditional retainage of $305,891, all of which is expected to be collected within one year. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 18 Note 6 - Property and Equipment Property and equipment, net is summarized as follows at December 31, 2023: Vehicles 112,806$ Less: Accumulated depreciation and amortization 95,680 17,126$ Depreciation expense related to property and equipment amounted to $30,252 for the year ended December 31, 2023. Note 7 - Research and Development The Company capitalizes research and development costs related to internally developed software. Research and development costs, net of accumulated amortization, are summarized as follows: Weighted average amortization period Software development 3 years 302,554$ Less: Accumulated amortization 7,405 295,149$ Amortization expense related to research and development was $7,405 for the year ended December 31, 2023. Estimated amortization expense for the next four years is as follows: Years Ended December 31: 2024 97,666$ 2025 100,608 2026 93,202 2027 3,673 295,149$ ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 19 Note 8 - Goodwill and Other Intangible Assets Goodwill, net of accumulated amortization, is summarized as follows at December 31, 2023: Weighted average amortization period Gross carrying amount 10 years 859,307$ Less: Accumulated amortization 157,540 Net carrying value 701,767$ Amortization expense related to goodwill was $85,931 for the year ended December 31, 2023. Estimated amortization expense for the next five years and thereafter is as follows: Years Ending December 31: 2024 85,931$ 2025 85,931 2026 85,931 2027 85,931 2028 85,931 Thereafter 272,112 701,767$ The intangible assets as of December 31, 2023 are presented below: Weighted average amortization period Trade names 3 years 344,556$ Less: Accumulated amortization 210,562 Intangible assets, net 133,994$ Estimated amortization expense for the next two years is as follows: Years Ending December 31: 2024 114,852$ 2025 19,142 133,994$ Amortization expense related to intangible assets was $114,852 for the year ended December 31, 2023. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 20 Note 9 - Line of Credit In December 2023, the Company entered into a line of credit agreement with a bank. Pursuant to the arrangement with the bank, the Company could borrow up to $3,000,000 immediately; this amount has automatically increased to $6,000,000 upon consummation of Series A funding on January 2, 2024. Interest is payable at 1.5% above the greater of (a) the prime rate or (b) 8.5%. The line matures in June 2025 and may automatically be extended for an additional 18 months under certain bank conditions. There was no balance on the line at December 31, 2023. In connection with the above agreement, a warrant to purchase stock was issued to the bank by the Company on January 8, 2024. The warrant certifies that the bank is entitled to purchase 73,680 shares of common stock at $0.27 cents per share. Note 10 - Stockholders’ Equity SAFE Note Investments The Company’s equity includes SAFE notes (Simple Agreement for Future Equity), which are agreements that allow investors to purchase equity at some point in the future. During the year ended December 31, 2023, SAFE notes in the amount of $3,610,000 were converted into 3,043,588 shares of the Seed Preferred Stock, of which 1,198,016 shares were designated as Series Seed-1 Preferred Stock and 1,845,572 shares were designated as Series Seed-2 Preferred Stock. The Preferred Stock has a par value of $0.00001 per share. At December 31, 2023, the SAFE notes balance was $115,500. In January 2024, these SAFE notes were converted into 45,387 shares of Series A-2 Preferred stock, with a par value $0.00001 per share and a price per share $2.5448, for the total amount of $115,500. Preferred Stock In May 2023, the Company issued 1,637,376 shares of Series Seed-1 Preferred Stock for gross proceeds of $3,000,000, or $1.832 per share. Amendment of Certificate of Incorporation On May 16, 2023, the Company amended and restated its certificate of incorporation to increase the total number of authorized shares of common stock from 10,000,000 shares of common stock to 17,000,000 shares of common stock. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 21 Note 11 - Stock-Based Compensation The Company has an Incentive Stock Options Plan (the “2022 Stock Plan”), in order to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees and consultants, and to promote success of the Company’s businesses. The 2022 Stock Plan provided the holders of stock options an election to early exercise prior to vesting. The Company has the right, but not the obligation, to repurchase early exercised options without transferring any appreciation to the employee if the employee terminates employment before the end of the original vesting period. The maximum aggregate number of shares that may be issued under the Plan is 1,055,001 shares. At December 31, 2023, the 2022 Stock Plan had granted 224,012 options with an average strike price of $0.08; 108,611 options were exercised early with cash paid of $5,431 or $0.05 per share; 23,668 options were canceled/forfeited and returned to the option pool; and 91,733 options remained outstanding. The total number of vested options is 80,464, including 33,891 which were exercised early. Note 12 - Contingencies The Company is contingently liable to its surety under a general indemnity agreement. Under this agreement, the Company agrees to indemnify the surety for any payments made on its behalf. The Company believes that all contingent liabilities will be satisfied by its performance on the specific contracts covered by the agreement. The Company at times may be involved in various legal proceedings and litigation arising in the ordinary course of business. The Company intends to vigorously dispute liability for all claims. Management is of the opinion that the outcome of such proceedings and litigation will not have a material adverse effect on the Company’s consolidated financial statements. The contingent liability of $245,000 on the accompanying consolidated balance sheet relates to the purchase of Electrik Pros, LLC in 2022. In accordance with the purchase agreement, the Company makes performance-based deferred payments based on revenue attainment metrics. Note 13 - Income Taxes The benefit from income taxes is summarized as follows: Deferred: Federal and state 643$ The net deferred tax asset includes the following components: Deferred tax asset 385,819$ Valuation allowance - Deferred tax liability (144,096) Net deferred tax asset 241,723$ ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 22 Note 13 - Income Taxes (cont’d.) FASB ASC Subtopic 740-10 requires a “more likely than not” criterion be applied when evaluating the realizability of a deferred tax asset. Management expects to generate sufficient taxable income in the near future to utilize the deferred tax asset. The Company files income tax returns in the U.S. in the federal jurisdiction and a state jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal or state tax examinations by taxing authorities for years before 2021. The years 2021 and 2022 remain subject to examination by taxing authorities. At December 31, 2023, the Company does not believe it has any uncertain tax positions that would require either recognition or disclosure in the accompanying consolidated financial statements. As of December 31, 2023, the Company has a federal and state net operating loss carryforward of $822,565 and $812,092, respectively, which expires in 2042. Note 14 - Backlog The following schedule is a reconciliation of backlog representing signed contracts at December 31, 2023: Balance, January 1, 2023 388,925$ New contracts 8,366,553 8,755,478 Less: Contract revenues 4,365,688 Balance, December 31, 2023 4,389,790$ Remaining construction performance obligations represent the remaining transaction price, including variable consideration not constrained, for which work has not been performed. At December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,389,790. The Company expects to recognize revenue on approximately 100% of the remaining performance obligations within the next 12 months. Revenue estimates included in the backlog can be subject to change because of project accelerations, cancellations, or delays due to various factors, including but not limited to commercial issues and adverse weather. These factors can also cause revenue to be realized in different periods or in different amounts from those originally reflected in backlog. In many instances, customers are not contractually committed to procure specific volumes of services under a contract. While the Company did not experience any material cancellations during the year ended December 31, 2023, customers may terminate contracts upon notice regardless of whether or not the Company is in default. ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 23 Note 15 - Subsequent Events The Company has evaluated all events or transactions that occurred after December 31, 2023 through April 10, 2024, which is the date that the consolidated financial statements were available to be issued. During this period, there were no material events requiring disclosure except for the following: As disclosed in Note 1, HMO Energy, Inc. was merged into Ernest Energy in February 2024. As disclosed in Note 9, the Company issued a warrant to the bank in connection with obtaining the credit facility. As disclosed in Note 10, SAFE notes in the amount of $115,500 were converted into Series A-2 Preferred Stock for the total price of $115,500. In January 2024, the Company sold 2,575,530 shares of its Series A-1 Preferred Stock, with a par value of $0.00001 per share and $5.1834 price per share, for the total price of $10,349,995, excluding proceeds from the secondary transaction. In 2024, the Company’s two new subsidiaries began operations in the State of Texas: Electrik Pros TX, Inc. is an electrical contractor in Texas. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Electrik Pros TX, Inc. provides electrical maintenance and construction services. Airsmith Pros TX, Inc. is an HVAC and mechanical contractor in Texas. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Airsmith Pros TX, Inc. provides mechanical maintenance and construction services. SUPPLEMENTARY INFORMATION 24 INDEPENDENT ACCOUNTANTS’ REVIEW REPORT ON SUPPLEMENTARY INFORMATION To The Stockholders and Members Ernest Energy, Inc. and Subsidiaries Miami, Florida Our report on our review of the basic consolidated financial statements of Ernest Energy, Inc. and Subsidiaries at December 31, 2023 and for the year then ended appears on page one. The objective of that review was to perform procedures to obtain limited assurance as a basis for reporting whether we were aware of any material modifications that should be made to the consolidated financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. The accompanying supplementary information included in pages 25 through 33 is presented for purposes of additional analysis and is not required of part of the basic consolidated financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the consolidated financial statements. The supplementary information has been subjected to the review procedures applied in our review of the basic consolidated financial statements. We are not aware of any material modifications that should be made to the supplementary information. We have not audited the supplementary information and do not express an opinion on such information. GRASSI & CO., CPAs, P.C. Jericho, New York April 10, 2024 ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING BALANCE SHEET DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 25 Consolidated Eliminations Ernest Energy, Inc. Electrik Pros, LLC Airsmith Pros, Inc. HMO Energy, Inc. CURRENT ASSETS: Cash 3,362,708$ 0$ 2,658,697$ 551,908$ 7,555$ 144,548$ Contract receivables 1,716,457 0 0 1,716,457 0 0 Contract assets, including conditional retainage of $210,116 603,581 0 0 603,581 0 0 Other receivables 87,734 0 19,460 68,274 0 0 Inventories 131,617 0 0 131,617 0 0 Intercompany receivables 0 (1,897,482) 1,536,689 360,793 0 0 Prepaid expenses and other current assets 166,387 0 94,677 71,710 0 0 Investment in subsidiary Electric Pros, LLC 0 (1,400,000) 1,400,000 0 0 0 Total Current Assets 6,068,484 (3,297,482) 5,709,523 3,504,340 7,555 144,548 PROPERTY AND EQUIPMENT, NET 17,126 0 0 17,126 0 0 OTHER ASSETS: Goodwill, net 701,767 0 0 701,767 0 0 Other intangible assets, net 133,994 0 0 133,994 0 0 Research and development, net 295,149 0 295,149 0 0 0 Security deposits 6,221 0 0 6,221 0 0 Deferred tax asset 241,723 0 241,723 0 0 0 Total Other Assets 1,378,854 0 536,872 841,982 0 0 TOTAL ASSETS 7,464,464$ (3,297,482)$ 6,246,395$ 4,363,448$ 7,555$ 144,548$ ASSETS ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING BALANCE SHEET DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 26 Consolidated Eliminations Ernest Energy, Inc. Electrik Pros, LLC Airsmith Pros, Inc. HMO Energy, Inc. CURRENT LIABILITIES: Accounts payable 1,071,884$ 0$ 88,767$ 974,627$ 8,490$ 0$ Contract liabilities, including conditional retainage of $95,775 10,921 0 0 10,921 0 0 Accrued expenses and other current liabilities 213,439 0 0 213,439 0 0 Total Current Liabilities 1,296,244 0 88,767 1,198,987 8,490 0 LONG-TERM LIABILITIES: Intercompany payables 0 (1,897,482) 360,793 1,524,764 11,925 0 Employee stock option plan 3,736 0 3,736 0 0 0 Contingent liabilities 245,000 0 147,500 0 0 97,500 Total Long-Term Liabilities 248,736 (1,897,482) 512,029 1,524,764 11,925 97,500 Total Liabilities 1,544,980 (1,897,482) 600,796 2,723,751 20,415 97,500 CONTINGENCIES EQUITY (DEFICIT): Common stock, $0.00001 par value; 17,000,000 shares authorized; 9,033,891 shares issued and outstanding 2,595 0 2,595 0 0 0 Preferred stock: Series Seed 1 - $0.00001 par value: 2,835,392 shares authorized, issued and outstanding 28 0 28 0 0 0 Series Seed 2 - $0.00001 par value; 1,845,572 shares authorized, issued and outstanding 18 0 18 0 0 0 Additional paid-in capital 6,695,454 (1,400,000) 6,695,454 1,400,000 0 0 Retained earnings (accumulated deficit) and members' equity (778,611) 0 (1,052,496) 239,697 (12,860) 47,048 Total Equity (Deficit)5,919,484 (1,400,000) 5,645,599 1,639,697 (12,860) 47,048 TOTAL LIABILITIES AND EQUITY (DEFICIT)7,464,464$ (3,297,482)$ 6,246,395$ 4,363,448$ 7,555$ 144,548$ LIABILITIES AND EQUITY (DEFICIT) ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 27 Consolidated Eliminations E rnest Energy, Inc. Electrik Pros, LLC Airsmith Pros, Inc. HMO Energy, Inc. CONTRACT REVENUES 6,940,179$ (381,155)$ 303,783$ 6,940,179$ 0$ 77,372$ CONTRACT COSTS 4,389,072 0 0 4,389,072 0 0 GROSS PROFIT 2,551,107 (381,155) 303,783 2,551,107 0 77,372 GENERAL AND ADMINISTRATIVE EXPENSES 719,088 (381,155) 346,498 740,885 12,860 0 CORPORATE PAYROLL EXPENSES 635,992 0 568,560 37,108 0 30,324 SALES AND MARKETING EXPENSES 402,867 0 24,758 378,109 0 0 DEPRECIATION AND AMORTIZATION 238,440 0 7,405 231,035 0 0 INCOME (LOSS) FROM OPERATIONS 554,720 0 (643,438) 1,163,970 (12,860) 47,048 OTHER INCOME (EXPENSE): Start-up costs (80,719) 0 (80,557) (162) 0 0 Other income 60,475 0 51,973 8,502 0 0 Total Other (Expense) Income (20,244) 0 (28,584) 8,340 0 0 INCOME (LOSS) BEFORE BENEFIT FROM INCOME TAXES 534,476 0 (672,022) 1,172,310 (12,860) 47,048 BENEFIT FROM INCOME TAXES 643 0 643 0 0 0 NET INCOME (LOSS)535,119$ 0$ (672,665)$ 1,172,310$ (12,860)$ 47,048$ ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRACT RECEIVABLES AT DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 28 Current 31-60 61-90 91+Total Walmart - Jacksonville (5005)0$ 0$ 0$ 0$ 0$ 10,292$ 10,292$ 0$ Walmart - Pensacola (6531)501 0 19,317 0 19,818 13,186 19,818 501 0 19,317 0 19,818 23,478 19,818 Habit Burger - Cutler Bay 14,790 16,165 0 0 30,955 15,305 24,066 SVP Bright - Venice Beach 8,482 0 0 0 8,482 0 0 Walmart - Pompano (4617)54,453 0 0 0 54,453 8,975 42,594 Tide Monterra 36,864 0 0 0 36,864 3,905 36,864 CMX Cinemas - Dolphin Mall 124,929 0 0 0 124,929 100,489 124,929 Walmart - Pensacola (1222)28,886 114,596 140,829 0 284,311 42,536 0 Visa Offices - Waterford Miami 348,406 476,534 26,768 180,462 1,032,170 120,982 1,031,336 FIU Anatomy Lab Renovation 0 13,506 0 0 13,506 13,699 0 616,810 620,801 167,597 180,462 1,585,670 305,891 1,259,789 617,311 620,801 186,914 180,462 1,605,488 329,369 1,934,857 1,279,607 Small jobs 95,007 16,915 9,343 29,333 150,598 0 150,598 712,318 637,716 196,257 209,795 1,756,086 329,369 2,085,455 1,430,205 Less: Conditional retainage 0 0 0 0 0 305,891 305,891 0 Less: Allowance for credit losses 0 0 0 63,107 63,107 0 0 712,318$ 637,716$ 196,257$ 146,688$ 1,692,979$ 23,478$ 1,430,205$ 225,418 326,847 1,153,152 CONTRACTS IN PROCESS 46,260 Subsequent Collections 03/01/2024 CONTRACTS COMPLETED SERVICE CONTRACTS 150,598 Regular Retainage Receivable Total Receivable 33,004 43,296 1,716,457$ 1,891,561 63,107 27,205 8,482 63,428 40,769 ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATED SCHEDULE OF EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 29 Contract Contract Gross Revenues Costs Profit CONTRACTS COMPLETED 873,713$ 610,137$ 263,576$ CONTRACTS IN PROCESS 3,491,975 2,347,417 1,144,558 TOTAL CONTRACT REVENUE 4,365,688 2,957,554 1,408,134 SERVICE REVENUE 2,574,491 1,431,518 1,142,973 6,940,179$ 4,389,072$ 2,551,107$ ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRACTS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 30 Revenues Earned Contract Costs Gross Profit Revenues Earned Contract Costs Contract Costs Gross Profit $ 484,549 $ 375,498 $ 109,051 $ 95,624 $ 74,103 $ 301,395 $ 87,530 276,896 194,935 81,961 0 0 194,935 81,961 207,892 113,807 94,085 0 0 113,807 94,085 $ 969,337 $ 684,240 $ 285,097 $ 95,624 $ 74,103 $ 610,137 $ 263,576 Contract Totals Prior To December 31, 2023 During The Year Ended December 31, 2023 Gross Profit Dior Store - Millennia Mall $ 21,521 $ 388,925 Revenues Earned $ 21,521 $ 873,713 Walmart - Pensacola (6531)0 276,896 Walmart - Jacksonville (5005)0 207,892 ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRACTS IN PROCESS AT DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 31 Contract Price Estimated Gross Profit Contract Revenues Costs Incurred To Date Gross Profit Percent Complete Contract Billings To Date Costs And Estimated Earning In Excess Of Billings Billings In Excess Of Costs And Estimated Earnings Contract Revenues Contract Costs Gross Profit Work Load Remaining Cost To Complete Future Gross Profit Habit Burger - Cutler Bay 153,051$ 36,120$ 148,965$ 113,809$ 35,156$ 97.33% 136,390$ 12,575$ 0$ 148,965$ 113,809$ 35,156$ 4,086$ 3,122$ 964$ SVP Bright - Venice Beach 174,222 86,414 100,718 50,762 49,956 57.81% 100,694 24 0 100,718 50,762 49,956 73,504 37,046 36,458 Walmart - Pompano (4617) 199,260 45,747 179,364 138,185 41,179 90.02% 199,260 0 19,896 179,364 138,185 41,179 19,896 15,328 4,568 Tide Monterra 82,717 18,528 61,019 47,351 13,668 73.77% 57,107 3,912 0 61,019 47,351 13,668 21,698 16,838 4,860 CMX Cinemas - Dolphin Mall 1,491,263 620,365 832,005 485,891 346,114 55.79% 905,384 0 73,379 832,005 485,891 346,114 659,258 385,007 274,251 Walmart - Pensacola (1222) 850,619 315,579 824,320 518,498 305,822 96.91% 538,626 285,694 0 824,320 518,498 305,822 26,299 16,542 9,757 Visa Offices - Waterford Miami 1,553,760 412,368 1,151,685 846,028 305,657 74.12% 1,088,838 62,847 0 1,151,685 846,028 305,657 402,075 295,364 106,711 FIU Anatomy Lab Renovation 649,555 157,468 193,899 146,893 47,006 29.85% 207,320 0 13,421 193,899 146,893 47,006 455,656 345,194 110,462 Toca Madera - Brickell Miami 858,772 188,930 0 0 0 0.00% 0 0 0 0 0 0 858,772 669,842 188,930 CI Financial Offices - Brickell Miami 1,103,818 242,840 0 0 0 0.00% 0 0 0 0 0 0 1,103,818 860,978 242,840 Blumberg Capital Offices - Sunny Isles Beach 116,000 24,360 0 0 0 0.00% 0 0 0 0 0 0 116,000 91,640 24,360 Crunch Fitness - Apollo Beach 396,828 73,016 0 0 0 0.00% 0 0 0 0 0 0 396,828 323,812 73,016 Visual Comfort - Coral Gables 251,900 52,899 0 0 0 0.00% 0 0 0 0 0 0 251,900 199,001 52,899 $ 7,881,765 $ 2,274,634 $ 3,491,975 $ 2,347,417 $ 1,144,558 $ 3,233,619 $ 365,052 $ 106,696 $ 3,491,975 $ 2,347,417 $ 1,144,558 $ 4,389,790 $ 3,259,714 $ 1,130,076 Total Contract At December 31, 2023 Management EstimatesFrom Inception To December 31, 2023 For The Year Ended December 31, 2023 ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRACT ASSETS AND LIABILITIES AT DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 32 Revenue Earned Billings To Date (Including C onditional Retainage) Costs and Estimated E arnings In Excess of Billings Billings In Excess Of C osts and Estimated Earnings Conditional Retainage Billings To Date (Excluding C onditional Retainage) Contract Assets Contract Liabilities 148,965$ 136,390$ 12,575$ 0$ 15,305$ 121,085$ 27,880$ 0$ 100,718 100,694 24 0 0 100,694 24 0 179,364 199,260 0 19,896 8,975 190,285 0 10,921 61,019 57,107 3,912 0 3,905 53,202 7,817 0 832,005 905,384 0 73,379 100,489 804,895 27,110 0 824,320 538,626 285,694 0 42,536 496,090 328,230 0 1,151,685 1,088,838 62,847 0 120,982 967,856 183,829 0 193,899 207,320 0 13,421 13,699 193,621 278 0 3,491,975 3,233,619 365,052 106,696 305,891 2,927,728 575,168 10,921 Unbilled receivable 0 0 0 0 0 0 28,413 0 3,491,975$ 3,233,619$ 365,052$ 106,696$ 305,891$ 2,927,728$ 603,581$ 10,921$ Habit Burger - Cutler Bay SVP Bright - Venice Beach Walmart - Pompano (4617) Tide Monterra CMX Cinemas - Dolphin Mall Walmart - Pensacola (1222) Visa Offices - Waterford Miami FIU Anatomy Lab Renovation ERNEST ENERGY, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CONSOLIDATED SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023 See independent accountants’ review report on supplementary information. 33 PROFESSIONAL FEES 227,349$ LEASE EXPENSE 156,118 COMPUTER AND INTERNET 79,336 TRAVEL, MEALS AND LODGING 78,701 BAD DEBT EXPENSE 66,596 INSURANCE 47,832 PAYROLL PROCESSING FEES 28,682 CREDIT CARD MERCHANT FEES 18,126 OFFICE EXPENSES 15,400 UTILITIES 948 TOTAL GENERAL AND ADMINISTRATIVE EXPENSES 719,088$ ERNEST ENERGY, INC. ACTION BY UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS JANUARY 2, 2023 In accordance with Section 141(f) of the Delaware General Corporation Law and the Bylaws of Ernest Energy, Inc., a Delaware corporation (the “Company”), the undersigned, constituting all of the members of the Company’s Board of Directors (the “Board”), hereby take the following actions and adopt the following resolutions by unanimous written consent without a meeting: 1. Election of Officers RESOLVED: That the following persons have been elected as officers of the Company to the offices set forth opposite their respective names, to serve at the pleasure of the Board, as of the Effective Date of January 2, 2023: Title Name President Michael Ragheb Secretary Hassan Yasin CFO Olexandr Kal’tsev 2. Company Bank Accounts and Contracts RESOLVED: That the Company will establish one or more deposit accounts in its name at a banking institution, that the Company’s President, Secretary or CFO will act on behalf of the Company in establishing such an account or accounts on terms and conditions as agreed on with the bank. RESOLVED FURTHER: That the President, Secretary or CFO is authorized to designate as depositaries of this corporation’s funds one or more other banks, trust companies, or other financial institutions, and to open, keep, and close general and special accounts in such depositaries. RESOLVED FURTHER: that the President, Secretary or CFO of the corporation is authorized to endorse checks, drafts, or other evidences of indebtedness made payable to the corporation; and, all checks, drafts, contracts, and other instruments obligating the corporation to pay money, including instruments payable to officers or other persons authorized to sign them, may only be signed on the corporation’s behalf by: Michael Ragheb, or Hassan Yasin, or Olexandr Kal’tsev 3. Omnibus Resolution RESOLVED: That each of the officers is authorized and empowered to take all such actions (including, without limitation, soliciting appropriate consents or waivers from stockholders) and to execute and deliver all such documents as may be necessary or advisable to carry out the intent and accomplish the purposes of the foregoing resolutions and to effect any transactions contemplated thereby and the performance of any such actions and the execution and delivery of any such documents shall be conclusive evidence of the approval of the Board thereof and all matters relating thereto. In accordance with the Company’s Bylaws, this action may be executed in writing, or consented to by electronic transmission, in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same action. The consent of the undersigned shall be effective immediately upon the election of the undersigned as directors of the corporation; provided, however, that if such event has already occurred before the time of execution of this consent by the undersigned, then this consent shall be effective immediately. DATED: ________________________________ Michael Ragheb ________________________________ Hassan Yasin ________________________________ Olexandr Kal’tsev January 2, 2023 My name is Pedro Adrian and I am the CFO of Adrian Homes, a South Florida residential developer. I want to say a few words about Ernest because they did a very good job on one of our projects, the first phase of the Down South Apartments. We worked with them on a three story project with 144 apartments in southern Miami-Dade finished in 2024. They handled everything very well and took care of all the construction from start to finish. They kept everything moving, making sure the work was done the right way and without wasting money. They have their own electrical, plumbing, and HVAC crews, which increased the speed of the project significantly and kept main workflows going on time. They also worked well with other subcontractors, making sure everything stayed on schedule. Ernest is professional, responsible, and know what they are doing. We are happy with their work and would recommend them for any construction project. Pedro Adrian Chief Financial Officer Adrian Homes pedro@adrianhomes.com www.spaciodb.com March 3, 2025 To Whom It May Concern, I’m happy to recommend Vincenzo Gizzi and Ernest team for any ground up or remodeling construction projects. Vincenzo played a lead role in the remodeling of multiple hotels, including multiple Marriott Hotels and Nobu Hotel Miami Beach), and several other commercial projects for me. Nobu Hotel Miami beach was a 200 rooms renovation project, which Vincenzo handled with skill and efficiency. Throughout the process, Vincenzo ensured that construction ran smoothly while keeping disruptions to hotel operations to a minimum. They stayed on schedule, upheld strict safety standards, and consistently delivered high-quality work. Their attention to detail and ability to solve problems on the go made a big difference in the success of these projects. Vincenzo and Ernest are professional, reliable, and committed to excellence. I highly recommend them for any construction or remodeling work. If you have any questions or need more details, feel free to reach out to me at alex@spaciodb.com . Best Regards, Alex Wertheim President Spacio Design Build February 15, 2025 Subject: Reference Letter for Ernest I am pleased to provide this letter of recommendation for Ernest, which successfully completed the full renovation of the ProMD Health clinic in Wellington, Florida, a project exceeding $1.8 million, in 2022. Their expertise and commitment ensured a seamless, efficient construction process, making it the smoothest and most cost-effective project for the ProMD group. Ernest managed every aspect of the construction, from site preparation to final finishes, delivering a hassle-free experience while maintaining strict cost control. Their ability to provide value-engineering solutions allowed the project to be completed on budget without compromising quality. Their proactive coordination with subcontractors and attention to detail ensured the project stayed on schedule and was executed with precision. With over ten medical clinics developed, ProMD Health has worked with various construction companies, and Ernest stands out for its professionalism, efficiency, and commitment to delivering exceptional results. For further inquiries, please feel free to contact me at scott@promdhealth.com . Scott Melamed President & CEO ProMD Health Construction Management Plan Project: City Annex Building Construction Renovations ITB 250101 Date: 3/5/2025 Agenda PROJECT SCHEDULE MANAGEMENT ...................................................................................... 4 Project: City of Sunny Isles Beach – Public Department Relocation ................................. 4 Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 . 4 1. Overview .............................................................................................................................. 4 2. Strategic Sourcing & Procurement Approach ...................................................................... 4 2.1 Early Procurement Planning ........................................................................................ 5 2.2 Multiple Supplier Agreements ...................................................................................... 5 2.3 Real-Time Tracking Systems ....................................................................................... 5 2.4 Sustainable & Local Sourcing ...................................................................................... 5 3. Project Scheduling & Risk Mitigation Strategies .................................................................. 5 3.1 Critical Path Method (CPM) Scheduling ...................................................................... 5 3.2 Just-In-Time (JIT) Delivery Coordination ..................................................................... 5 3.3 Advanced Work Packaging (AWP) .............................................................................. 5 3.4 Regular Progress Reviews .......................................................................................... 6 3.5 Technology-Driven Oversight ....................................................................................... 6 4. Ensuring Quality & Efficiency ............................................................................................... 6 4.1 Prefabrication & Modular Construction ........................................................................ 6 4.2 Third-Party Quality Inspections .................................................................................... 6 4.3 Workforce Training & Safety Programs ........................................................................ 6 5. Conclusion ........................................................................................................................... 7 DEBRIS REMOVAL & DEMOLITION PROPOSAL ...................................................................... 8 Project: City of Sunny Isles Beach – Public Department Relocation ................................. 8 Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 . 8 1. Overview .............................................................................................................................. 8 2. Scope of Work ..................................................................................................................... 8 3. Demolition Plan .................................................................................................................... 8 3.1 Structural Demolition .................................................................................................... 8 3.2 Utility Disconnections (5 Days) .................................................................................... 9 3.3 Environmental Compliance & Safety ........................................................................... 9 4. Debris Management & Disposal .......................................................................................... 9 4.1 Debris Sorting & Recycling (10 Days) .......................................................................... 9 4.2 Hauling & Transportation (10 Days) ............................................................................. 9 5. Traffic & Community Impact Mitigation ................................................................................ 9 5.1 Traffic Management ................................................................................................... 10 5.2 Pedestrian Safety ....................................................................................................... 10 5.3 Noise & Dust Control ................................................................................................. 10 5.4 On-Site Staging & Worker Accommodations ............................................................. 10 6. Safety & Regulatory Compliance ....................................................................................... 10 7. Project Timeline ................................................................................................................. 10 Ernest Energy Inc. ITB 250101 8. Conclusion ......................................................................................................................... 11 CONSTRUCTION EMERGENCY RESPONSE PLAN ................................................................ 12 Project: Sunny Isles Building Department Annex ............................................................ 12 Location: 18050 Collins Avenue, Sunny Isles Beach, Florida .......................................... 12 1. Purpose & Scope ............................................................................................................... 12 2. Emergency Contacts ......................................................................................................... 12 3. Emergency Types & Response Procedures ...................................................................... 12 3.1 Medical Emergencies ................................................................................................. 12 3.2 Fire Emergencies ....................................................................................................... 13 3.3 Hazardous Material Spills .......................................................................................... 13 3.4 Structural Failures or Collapses ................................................................................. 13 3.5 Severe Weather & Natural Disasters ......................................................................... 13 4. Evacuation Plan ................................................................................................................. 13 5. Incident Reporting & Investigation ..................................................................................... 14 6. Training & Drills .................................................................................................................. 14 7. Continuous Improvement ................................................................................................... 14 MAINTENANCE OF TRAFFIC (MOT) PLAN .............................................................................. 15 Project: Sunny Isles Building Department Annex ............................................................ 15 Location: 18050 Collins Avenue, Sunny Isles Beach, FL ................................................ 15 1. Project Overview ................................................................................................................ 15 2. Traffic Control Measures .................................................................................................... 15 2.1 Lane Closures ............................................................................................................ 15 2.2 Detour Routes ............................................................................................................ 15 2.3 Traffic Signage & Barriers .......................................................................................... 15 3. Pedestrian Safety Measures .............................................................................................. 16 4. Work Zone Protection ........................................................................................................ 16 5. Emergency Access Considerations ................................................................................... 16 6. Phasing & Coordination ..................................................................................................... 16 Phase 1 - Pre-Construction .............................................................................................. 16 Phase 2 - Active Construction .......................................................................................... 17 Phase 3 - Post-Construction ............................................................................................ 17 7. Contact Information ........................................................................................................... 17 QUALITY ASSURANCE & QUALITY CONTROL (QA/QC) PROGRAM ................................... 18 Project: Sunny Isles Building Department Annex ............................................................ 18 Location: 18050 Collins Avenue, Sunny Isles Beach, Florida .......................................... 18 1. Purpose & Scope ............................................................................................................... 18 2. Roles & Responsibilities .................................................................................................... 18 2.1 Project Manager ......................................................................................................... 18 2.2 QA/QC Manager ........................................................................................................ 18 2.3 Site Supervisor ........................................................................................................... 18 3. Quality Control Procedures ................................................................................................ 19 Ernest Energy Inc. ITB 250101 3.1 Pre-Construction ........................................................................................................ 19 3.2 During Construction ................................................................................................... 19 3.3 Post-Construction ...................................................................................................... 19 4. Testing & Inspection Requirements ................................................................................... 19 4.1 Structural & Material Testing ...................................................................................... 19 4.2 Mechanical, Electrical, & Plumbing (MEP) Inspections ............................................. 19 5. Non-Conformance & Corrective Actions ............................................................................ 20 6. Documentation & Reporting ............................................................................................... 20 7. Continuous Improvement ................................................................................................... 20 Ernest Energy Inc. ITB 250101 PROJECT SCHEDULE MANAGEMENT Project: City of Sunny Isles Beach – City Annex Building Construction Renovations Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 1. Overview For this large-scale project, we are committed to implementing industry best practices to ensure efficiency, quality, and adherence to schedule. Our approach integrates lean construction principles, advanced project management methodologies, and strategic procurement strategies to mitigate risks associated with delays and supply chain disruptions. We will leverage Construction Industry Institute (CII) Best Practices, which emphasize: ● Front-End Planning: Defining all project elements before execution to minimize risks. ● Material Management: Utilizing advanced procurement strategies and technology tracking to secure materials ahead of schedule. ● Constructability Reviews: Engaging stakeholders early to optimize efficiency and reduce rework. ● Supply Chain Optimization: Partnering with trusted vendors for cost-effective and timely sourcing. 2. Strategic Sourcing & Procurement Approach Our procurement team will proactively manage sourcing to ensure timely availability of materials while reducing supply chain risks. Our strategy includes: 2.1 Early Procurement Planning ● Identifying long-lead items early and placing orders in advance. ● Conducting market analysis to anticipate pricing and availability trends. 2.2 Multiple Supplier Agreements ● Leveraging our established relationships with multiple vendors to mitigate risks of delays from any single supplier. ● Ensuring redundancy for critical materials to maintain project continuity. Ernest Energy Inc. ITB 250101 2.3 Real-Time Tracking Systems ● Using digital tracking tools at our disposal to monitor material deliveries and address potential bottlenecks. ● Using predictive analytics to anticipate and resolve supply chain disruptions before they impact the project. 2.4 Sustainable & Local Sourcing ● Prioritizing environmentally friendly materials to support sustainability goals. ● Partnering with local suppliers to expedite deliveries and reduce transportation costs. 3. Project Scheduling & Risk Mitigation Strategies Considering potential long lead times on fabrication and specialized components, we will employ the following proactive scheduling measures to maintain project timelines: 3.1 Critical Path Method (CPM) Scheduling ● Maintaining a detailed project schedule with key milestones, dependencies, and float analysis. ● Continuously monitoring schedule performance to identify and address potential delays. 3.2 Just-In-Time (JIT) Delivery Coordination ● Synchronizing material deliveries with construction schedules to minimize storage and handling issues. ● Reducing material stockpiling on-site to optimize workspace efficiency. 3.3 Advanced Work Packaging (AWP) ● Structuring work sequences efficiently to streamline construction activities and reduce downtime. ● Improving workforce coordination by pre-defining material needs for each phase. 3.4 Regular Progress Reviews ● Conducting weekly meetings with all stakeholders to track progress and resolve scheduling conflicts promptly. ● Implementing a collaborative reporting system to keep teams aligned on project timelines. Ernest Energy Inc. ITB 250101 3.5 Technology-Driven Oversight ● Utilizing Building Information Modeling (BIM) to enhance coordination and prevent design conflicts. ● Leveraging our proprietary project management software to track progress, manage workflows, and ensure schedule adherence. 4. Ensuring Quality & Efficiency To uphold quality standards and maintain efficiency, we will incorporate: 4.1 Prefabrication & Modular Construction ● Utilizing pre-fabricated building components to reduce on-site labor needs and accelerate installation. ● Minimizing weather-related delays by manufacturing critical elements in controlled environments. 4.2 Third-Party Quality Inspections ● Conducting independent inspections to verify compliance with industry standards and city regulations. ● Implementing rigorous quality control measures throughout construction phases. 4.3 Workforce Training & Safety Programs ● Providing ongoing training sessions to ensure teams are up to date with the latest construction best practices. ● Implementing safety protocols to mitigate risks and ensure a safe work environment. 5. Conclusion Our integrated scheduling approach combines industry best practices, strategic procurement, and robust project management methodologies to ensure a successful project delivery. By proactively addressing lead times, maintaining strong supplier relationships, and leveraging advanced technology, we will ensure the project remains on schedule, within budget, and executed to the highest quality and safety standards. This structured, technology-driven, and risk-mitigated approach guarantees timely completion and project success while minimizing disruptions to the community and stakeholders. Ernest Energy Inc. ITB 250101 DEBRIS REMOVAL & DEMOLITION PROPOSAL Project: City of Sunny Isles Beach – City Annex Building Construction Renovations Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 1. Overview This proposal outlines the scope of work, methodology, and timeline for the demolition and debris removal required to facilitate the relocation of the City of Sunny Isles Beach Public Department. Our team is committed to executing this project with efficiency, safety, and minimal disruption to the surrounding community. 2. Scope of Work The project will be completed in four key phases: ● Site Preparation (5 Days): Installation of safety barriers, signage, and securing necessary permits. ● Demolition (15 Days): Controlled deconstruction and removal of designated structures, pavement, and utilities. ● Debris Removal (10 Days): Segregation, transportation, and disposal of construction waste per regulatory requirements. ● Final Cleanup & Inspection (5 Days): Grading and preparation of the site for future development. 3. Demolition Plan 3.1 Structural Demolition ● Building Demolition (10 Days): Sequential dismantling of existing structures to mitigate impact on adjacent areas. ● Foundation Removal (5 Days): Excavation and removal of concrete footings and slabs. Ernest Energy Inc. ITB 250101 ● Pavement & Hardscape Removal (5 Days): Removal of asphalt, sidewalks, and driveways per site specifications. 3.2 Utility Disconnections (5 Days) ● Coordination with utility providers to safely disconnect water, sewer, gas, and electrical services. ● Proper capping and sealing of all terminated utility lines in compliance with city regulations. 3.3 Environmental Compliance & Safety ● Dust Control: Use of water suppression and containment barriers to prevent airborne particles. ● Hazardous Material Management: Identification, handling, and disposal of hazardous materials in accordance with environmental guidelines. ● Material Recycling & Salvage: Prioritization of recycling for concrete, metals, and reusable materials to minimize landfill waste. 4. Debris Management & Disposal 4.1 Debris Sorting & Recycling (10 Days) ● Concrete & Masonry: Transported to a recycling facility for processing. ● Metals: Separated and sent to designated recycling centers. ● Wood & Plastics: Evaluated for reuse or directed to appropriate waste management facilities. ● General Waste: Disposed of at an approved landfill site. 4.2 Hauling & Transportation (10 Days) ● Implementation of designated trucking routes to minimize traffic congestion. ● Utilization of licensed disposal sites for various debris categories. 5. Traffic & Community Impact Mitigation 5.1 Traffic Management ● Coordination with city authorities to establish detours and reduce disruptions. ● Deployment of flaggers, temporary traffic signals, and signage to ensure smooth vehicular flow. ● Scheduling of major demolition activities during non-peak hours to limit congestion. Ernest Energy Inc. ITB 250101 5.2 Pedestrian Safety ● Designation of safe walkways and crossings to maintain pedestrian accessibility. ● Installation of protective barriers where necessary to safeguard public movement. 5.3 Noise & Dust Control ● Implementation of noise reduction measures, including temporary sound barriers. ● Regular application of dust suppression techniques to minimize airborne pollutants. 5.4 On-Site Staging & Worker Accommodations ● Establishment of a designated worker staging area within the project site to reduce street congestion. ● Strict adherence to safety protocols to prevent disruptions to nearby residences and businesses. 6. Safety & Regulatory Compliance ● OSHA Standards: All personnel will be equipped with personal protective equipment (PPE) and trained in safety protocols. ● Traffic Safety Measures: Proper signage, barriers, and flaggers will ensure the safe movement of both pedestrians and vehicles. ● Emergency Preparedness: On-site fire suppression equipment, first aid stations, and contingency plans will be in place. 7. Conclusion Our team is committed to delivering a safe, efficient, and environmentally responsible demolition and debris removal process. We will coordinate closely with city officials and stakeholders to ensure minimal disruption while adhering to the project schedule. We look forward to executing this project with the highest standards of professionalism and safety. Ernest Energy Inc. ITB 250101 CONSTRUCTION EMERGENCY RESPONSE PLAN Project: City of Sunny Isles Beach – City Annex Building Construction Renovations Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 1. Purpose & Scope This Construction Emergency Response Plan (CERP) establishes the protocols for handling emergencies within a 2-hour response window to protect workers, the public, and emergency personnel. It ensures full compliance with local, state, and federal regulations while maintaining site safety and operational continuity. 2. Emergency Contacts In the event of an emergency, the following individuals and agencies should be contacted immediately: ● Project Manager: Nick Gaidai ● Site Safety Officer: Jack Morgan ● Emergency Coordinator: Olex Kaltsev ● Sunny Isles Beach Fire Department: 911 ● Sunny Isles Beach Police Department: 911 ● Nearest Medical Facility: ○ HCA Florida Aventura Hospital ○ Address: 20900 Biscayne Blvd, Aventura, FL 33180 ○ Emergency Room: (305) 682-7000 3. Emergency Types & Response Procedures 3.1 Medical Emergencies ● Call 911 immediately and provide the exact location. ● Administer first aid using the on-site First Aid Kit. ● Assign a designated worker to escort emergency responders to the scene. Ernest Energy Inc. ITB 250101 ● Document the incident and notify the Project Manager. 3.2 Fire Emergencies ● Activate the nearest fire alarm and dial 911. ● Evacuate all workers to the designated assembly point. ● Use fire extinguishers only if trained and it is safe to do so. ● Wait for clearance from fire officials before re-entering the site. 3.3 Hazardous Material Spills ● Evacuate the affected area immediately. ● Notify the Site Safety Officer and consult Safety Data Sheets (SDS) for response procedures. ● Contain the spill only if it is safe and appropriate PPE is available. ● Engage a licensed hazardous waste disposal company if required. 3.4 Structural Failures or Collapses ● Cease all work immediately and evacuate the area. ● Call 911 and notify the Project Manager. ● Establish a safe perimeter to prevent unauthorized access. ● A structural assessment must be conducted before work resumes. 3.5 Severe Weather & Natural Disasters ● Monitor alerts from the National Weather Service (NWS) and suspend outdoor activities as needed. ● Secure loose materials and equipment to prevent hazards. ● Follow official evacuation orders if issued. ● Conduct a post-event site inspection before resuming operations. 4. Evacuation Plan ● Primary Evacuation Route: Collins Avenue toward 178th Drive. ● Secondary Evacuation Route: Collins Avenue toward 181st Drive. ● Assembly Point: Sunny Isles Branch Library. ● Roll Call: Conducted by the Site Safety Officer or Site Superintendent. 5. Incident Reporting & Investigation ● All emergencies must be reported to the Project Manager within 30 minutes. ● An Incident Report Form must be completed within 24 hours of the event. Ernest Energy Inc. ITB 250101 ● A formal investigation will be conducted to determine the root cause and implement corrective actions. 6. Training & Drills ● Quarterly emergency drills will be conducted. ● Routine safety meetings will incorporate emergency response discussions. ● All workers will receive Emergency Response Training at project initiation. 7. Continuous Improvement ● Post-incident reviews will be conducted to enhance emergency procedures. ● Coordination with local emergency services to incorporate updated best practices. ● Regular audits of emergency response equipment and procedures. Ernest Energy Inc. ITB 250101 MAINTENANCE OF TRAFFIC (MOT) PLAN Project: City of Sunny Isles Beach – City Annex Building Construction Renovations Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 1. Project Overview This Maintenance of Traffic (MOT) Plan outlines the measures required to ensure safe vehicular and pedestrian movement around the construction site at 18050 Collins Avenue while minimizing disruptions. The plan complies with Florida Department of Transportation (FDOT) and Sunny Isles Beach regulations to maintain public and worker safety throughout all construction phases. 2. Traffic Control Measures 2.1 Lane Closures ● Temporary lane closures will be scheduled during off-peak hours (9 AM - 3 PM) to reduce traffic congestion. ● Advance warning signs will be placed 500 feet before the closure area, where feasible. ● Flaggers will be positioned at critical locations to manage traffic flow and ensure safety. 2.2 Detour Routes ● Clearly marked detour signs will be installed to guide traffic safely around work zones. ● Northbound Detour: Collins Avenue traffic will be rerouted via 178th Drive. ● Southbound Detour: Collins Avenue traffic will be rerouted via 181st Drive. 2.3 Traffic Signage & Barriers ● Temporary Regulatory Signs: Stop signs, yield signs, and speed limit adjustments will be placed as needed. ● Barricades & Cones: Work areas will be secured using high-visibility barricades and cones to separate traffic from construction zones. Ernest Energy Inc. ITB 250101 3. Pedestrian Safety Measures ● Temporary Walkways: Designated pedestrian pathways with protective barriers will be installed to maintain safe foot traffic. ● Crosswalk Detours: Clearly marked detour signs will direct pedestrians to safe crossings. ● ADA Compliance: Temporary access ramps will be provided to accommodate individuals with disabilities. ● Nighttime Visibility: Adequate lighting will be installed in affected areas to ensure pedestrian safety after dark. 4. Work Zone Protection ● Barrier Placement: Water-filled barriers will be strategically placed to define and protect work zone perimeters. ● Speed Reduction Measures: Traffic speed will be reduced near work zones through signage and law enforcement monitoring. ● Construction Vehicle Access: Designated entry and exit points for construction vehicles will be established to prevent interference with public traffic. 5. Emergency Access Considerations ● Uninterrupted Access: Coordination with local fire, police, and EMS will ensure emergency response teams have continuous access to the site. ● Dedicated Emergency Lane: A designated emergency access route will be maintained at all times. ● 24/7 Emergency Contact: A designated contact will be available around the clock for emergency coordination. 6. Phasing & Coordination Phase 1 - Pre-Construction ● Installation of advance warning signs and detour signage. ● Establishment of pedestrian walkways and safety barriers. Phase 2 - Active Construction ● Implementation of lane closures and detours as necessary. ● Continuous monitoring by traffic control personnel to ensure compliance and adjust measures if required. Ernest Energy Inc. ITB 250101 Phase 3 - Post-Construction ● Removal of temporary signage, barriers, and detours. ● Restoration of normal traffic patterns and pedestrian access. 7. Contact Information ● Project Manager: Nick Gaidai ● Traffic Control Supervisor: to be assigned ● 24/7 Emergency Contact: Olex Kaltsev - (305)-707-8582 Ernest Energy Inc. ITB 250101 QUALITY ASSURANCE & QUALITY CONTROL (QA/QC) PROGRAM Project: City of Sunny Isles Beach – City Annex Building Construction Renovations Location: 178th St. between Atlantic Blvd. & Collins Ave, Sunny Isles Beach, FL 33014 1. Purpose & Scope This QA/QC Program establishes a structured approach to ensuring that all construction activities for the Sunny Isles Building Department Annex adhere to project specifications, industry standards, and regulatory requirements. The program is designed to: ● Maintain high-quality workmanship and minimize defects. ● Ensure compliance with all applicable codes and regulations. ● Implement a systematic process for inspections, testing, and documentation. 2. Roles & Responsibilities 2.1 Project Manager ● Oversees the implementation of QA/QC protocols. ● Ensures all work complies with approved plans and specifications. ● Coordinates with inspectors, contractors, and stakeholders to resolve quality concerns. 2.2 QA/QC Manager ● Conducts regular quality inspections and audits. ● Identifies non-conformance issues and develops corrective action plans. ● Maintains detailed project documentation and prepares QA/QC reports. 2.3 Site Supervisor ● Ensures on-site adherence to QA/QC guidelines. ● Conducts worker training on quality standards and best practices. ● Oversees material testing and inspection coordination. Ernest Energy Inc. ITB 250101 3. Quality Control Procedures 3.1 Pre-Construction ● Review all construction plans, specifications, and contractual requirements. ● Approve materials, suppliers, and subcontractors based on quality standards. ● Conduct pre-installation meetings and training to align teams on QA/QC expectations. 3.2 During Construction ● Perform daily inspections to ensure quality workmanship and material compliance. ● Monitor environmental and safety compliance in accordance with regulatory standards. ● Conduct field testing, including concrete strength tests, soil compaction analysis, and structural integrity assessments. 3.3 Post-Construction ● Conduct final inspections and develop a punch list for corrective actions. ● Obtain necessary certifications and approvals from relevant authorities. ● Ensure all as-built documentation is complete and archived for future reference. 4. Testing & Inspection Requirements 4.1 Structural & Material Testing ● Concrete Strength Testing: Conducted per ASTM standards to verify mix consistency and load-bearing capacity. ● Soil Compaction Testing: Ensures proper foundation support in compliance with project specifications. ● Structural Steel Inspections: Includes welding, bolting, and coatings verification. 4.2 Mechanical, Electrical, & Plumbing (MEP) Inspections ● Electrical System Compliance: Verification of wiring, grounding, and load capacities. ● Plumbing System Testing: Pressure tests, leak detection, and pipe alignment inspections. ● HVAC System Performance: Airflow, insulation, and energy efficiency evaluations. 5. Non-Conformance & Corrective Actions ● Identification & Documentation: All quality deviations will be recorded in non-conformance reports (NCRs). Ernest Energy Inc. ITB 250101 ● Corrective Action Plans: Developed to resolve defects and prevent recurrence. ● Verification & Compliance Check: Follow-up inspections will confirm corrective measures are implemented effectively. 6. Documentation & Reporting ● Daily Reports & Logs: Maintained to track inspection results and testing data. ● Weekly QA/QC Progress Reports: Submitted to project stakeholders for review. ● Final Quality Records: Archived to ensure full traceability of quality compliance. 7. Continuous Improvement ● Regular QA/QC Training: Conducted to enhance workforce competency. ● Post-Project Reviews: Lessons learned will be documented and incorporated into future projects. ● Procedure Updates: Policies and standards will be revised based on regulatory changes and project findings. Ernest Energy Inc. ITB 250101 The Modern Construction Company Company Overview About Us Founded in Miami, FL in 2019, Ernest has grown to become a premier self perform GC in the US, executing as a self perform GC on projects ranging from $500K to $40M+ in value. We have worked on projects ranging from warehouses, storage units, and luxury retail to apartments and multifamily homes. Our team of master multi-trade technicians and experienced estimators work with owners and architects throughout the bidding process to deliver a purpose built proposal for the owners requirements. We also support owners in soliciting proposals from other GCs to validate that we during project close out. Post-bidding, our Virtual Design Construction team works directly with architects, engineers, and owners to develop BIM and Revit models that build the job before we’re ever on site - unlocking unprecedented speed in execution and coordination. guarantee to be 15% cheaper than traditional GCs Our Trade Brands Ernest Energy, Inc. 5201 Blue Lagoon Dr, Suite 800 Miami, FL 33126 +1 (305) 988-8199 estimating@joinernest.com AirSmith Pros Inc. 5201 Blue Lagoon Dr, Suite 800 Miami, FL 33126 +1 (305) 988-8199 estimating@airsmithpros.com Electrik Pros LLC 5201 Blue Lagoon Dr, Suite 800 Miami, FL 33126 +1 (305) 988-8199 estimating@electrikpros.com PipeFlow Pros Inc 5201 Blue Lagoon Dr, Suite 800 Miami, FL 33126 +1 (305) 988-8199 estimating@pipeflowpros.com Select Partners & Clients 305.988.8199 www.joinernest.com estimating@joinernest.com Project Executive Summary Ernest has successfully delivered hundreds of millions of projects since it’s founding and is well positioned to complete this renovation for the City of Sunny Isles. We assembled an expert team specifically tailored to work on complex renovation, build out, and turn over projects. Our proposed team has extensive experience working on Miami Beach and within the City of Sunny Isles. We understand the complexity of this project and the challenges that come with its scale and aggressive delivery schedule. Our project management team has a proven track record of successfully delivering complex projects. We are nimble and well-prepared to quickly and effectively manage unforeseen risks, leveraging our deep bench of local talent and market knowledge to provide strong support as needed. 305.988.8199 www.joinernest.com estimating@joinernest.com Budget & Timeline Phase Pre-Construction & Award Engineering & Procuremnet 67 Days 150 Days 6/25/2025 8/27/2025 Project award, Subcontractor scope development Submittals and long lead time item release Total Days*Complete Date Scope Notes Permitting 126 Days 7/9/2025 Wiring, panels, lighting, and emergency power Construction 127 Days 12/23/2025 Water supply, drainage, fixtures, and piping Commissioning & Closeouts 13 Days 12/30/2025 Facade, roofing, windows, and exterior finishes Estimated Completion Date 12/30/2025 *Note - total days shown will be scheduled concurrently to meet the owners desired schedule of 180 calendar days Key Risks to Project Timelines Equipment Approval and Release Structural and Concrete Work Equipment Setting and Commissioning Equipment lead times are a key risk for the overall project timelines. Ernest will work closely with ownership during the buy out process to release all equipment as soon as possible. This will be required to take place before an official NTP is provided in order to project timelines can be met. After official NTP, close sequencing and management of all structural, concrete, and excavation work is required to maintain critical path. Mitigating any unforeseen circumstances (soil variability, concrete curing times, and structural sequencing) will ensure we keep these key critical path trades on schedule. Closing out the project with successful equipment commissioning and start up will be critical to ensuring timely completion. Early release of all equipment will guarantee ample time for proper commissioning. Our Team 305.988.8199 www.joinernest.com estimating@joinernest.com Preconstruction Team Project Execution Team Our Preconstruction Team is designed to ensure seamless planning and accurate budgeting. A Preconstruction Lead oversees the overall strategy, while an Account Executive (AE) ensures alignment with project objectives. The Estimating Lead, supported by a team of Estimators, focuses on cost analysis, feasibility assessments, and value optimization. With this structure, we can proactively address challenges, provide detailed estimates, and set a strong foundation for a successful project. The Project Team is structured for efficiency and accountability. A Project Manager (PM) leads overall execution, while a Project Superintendent oversees daily site operations and coordination. Trade Superintendents manage specific scopes of work, ensuring seamless collaboration among trades. Foremen lead crews on the ground, maintaining quality and progress, while Project Coordinators support logistics, documentation, and communication. This structure ensures a well-organized, high-performing team dedicated to delivering a successful project Estimating Leads Estimators Account Executives Virtual Design Construction Team Jake Clark Dennis Belser Carl Anello Jhonnatan Coronado Thomas Harper Jim Holbrook Caroline Cloninger Maria Fuentes Seabrook Riddle Andy Peart Jennifer Elson Kathlyn Mutuc Zaya Shiba John Osborne Brian Engstrom Marshall Elder Kevin Diaz Carlton Fernandes Andrew Jamshidi Matthew Green Kenneth Dickerson Francis Sanchez Christopher Moskal Angie Murcia Bill Suggs Carlos Paredes Project Managers Trade Superintendents Foreman Project Coordinators Joshua Carreiro Ricardo Abreu Amed Migenes Andrés Martínez Pearl Echavez Danny Diaz Clay Mainegra Vanessa Rodriguez Nick Gaidai Robert Pereida Edisson Cardoza Maribel Sanchez Jonathan Wright Yinay Rodriguez Jan Rodriguez Nicholas Denton Alexander Diaz Carlos Mora Danna Peñaloza Mohnte Elizondo Luis Malagon-perez Dustin Bruce Mauricio Vallejo Diego Londoño George Rivera Eduardo Peron Roilan Valdes Miguel Martinez 305.988.8199 www.joinernest.com estimating@joinernest.com Standing Out Through Excellence At Ernest, we don’t just follow industry standards—we set them. Through strategic planning, innovative problem-solving, and a commitment to excellence, we ensure every project stands out for its quality, efficiency, and sustainability. Permit & Plan Review Led by: Kayla Carrier Ensures compliance with project program, codes, and cross-discipline coordination Works with the design team to resolve issues efficiently Key strategy: Initial meetings with Sunny Isles County Department for smoother approvals. Project Scheduling & Risk Mitigation Led by: Vanessa Vargas (Schedule Manager) and Nick Zeiter (Head of Recruitment) Objective: Meeting deadlines through milestone tracking Strategies: Identifying long-lead items, pre- purchasing critical materials, early release packages, and prefabrication. Sustainability Led by: Erik Marcill Focus Areas Sustainability and waste reductio Environmentally responsible practice Cost-efficient decision-making Dashboards & Reporting Strategy Led by: Brett Williamson (Director of Finance) and Rahul Arora (Strategic Finance, Associate Goal: Build customizable workflows for all stakeholders Outcome: Maximi zing productivity and turning construction data into profitable actions Implementation: Work Breakdown Structure (WBS) to aggregate project and program data. Ensuring Excellence Through Quality Management 305.988.8199 www.joinernest.com estimating@joinernest.com At Ernest, we integrate rigorous quality control and assurance measures throughout every phase of our projects. By prioritizing proactive inspections, structured documentation, and seamless collaboration, we uphold the highest standards to deliver safe, reliable, and high- quality results. Quality Control Quality Assurance Punch List Close-Out Completion Documents To ensure each DFoW phase runs smoothly, we will implement a structured quality control approach. After the preparatory and initial phases, our focus will shift to seamless handoffs, proactive issue resolution, and strict adherence to project specifications, addressing scheduling conflicts, site conditions, material tolerances, and installation methods. Materials will be inspected upon arrival, with records maintained for compliance. Daily inspections will verify quality before work is concealed, using standardized checklists to ensure alignment with project requirements. Our team will also oversee key milestones, including demolition, site prep, structural work, building envelope, and interior construction. Our team will perform all required testing and inspections during the preparatory phase to ensure compliance with project standards and contract requirements. Ongoing quality assurance measures will maintain adherence to specifications and industry best practices. A Mechanical Quality Control Representative will oversee system testing, balancing, and commissioning, while an Electrical Quality Control Representative will ensure power, lighting, fire alarm, and control systems meet project requirements. A Plumbing Quality Control Representative will verify proper installation and testing of plumbing systems. We will also coordinate with local authorities on erosion control, subgrade preparation, and municipal inspections. As part of the Project-Specific Quality Management Plan (QMP), certified inspectors and testing laboratories will verify compliance and submit reports. A structured testing and inspection schedule, including third-party assessments, will be shared with project personnel. Standardized checklists will confirm installations meet required standards, and subcontractors with strong quality records will be prioritized for seamless execution. We prioritize a proactive approach to quality control by initiating the punch list process early in the project. We will divide the project into manageable areas, assigning specific personnel for quality inspections and immediate resolution of any identified deficiencies. Our commitment to meticulous close-out is as strong as our initial planning efforts. During close-out, we will compile and review all operational and maintenance manuals, which will be vetted by our Project Manager, Superintendent, and QC Manager before submission Comprehensive system training will be provided before formal contract close-out, and all equipment warranty certificates will be organized and submitted for your records. A final close-out meeting will be scheduled to review project performance and ensure your satisfaction. Throughout the project, we will keep accurate as-built drawings at our field office, updating them with all approved changes Upon completion, you will receive a full set of as-built drawings and detailed records of materials and equipment per contract specifications. All construction documents will be carefully prepared to meet contract requirements and coordinated with the City of Sunny Isles team for a smooth handover. The Ernest Difference 305.988.8199 www.joinernest.com estimating@joinernest.com Our cutting-edge software and data-driven approach set us apart, enabling smarter planning, real-time decision- making, and seamless project execution. We harness advanced analytics and our custom software to deliver precision, efficiency, and innovation that redefine construction excellence. Powerful Dashboards for Smarter Project Management Financial Transparency Owners can track budgets, costs, and financial performance in real time. Proactive Scheduling & Forecasting Advanced analytics predict potential delays, optimize timelines, and provide accurate completion forecasts. Seamless Data Integration Our dashboards consolidate key metrics across all project phases, offering a single source of truth. Virtual Design Construction: Build Before We’re on Site Since our inception, we have successfully implemented BIM/VDC on nearly all projects - regardless of the size - enabling us to optimize preconstruction, identify spatial constraints early, and collect as built data for high-quality project handover. Design & Precon Phase Construction Phase Operation Phase Design Authorin Design Review Virtual Reality Design Review 3D Design Coordinatio Off-Site Fabrication Studie 5D Cost Estimatio Mechanical Analysi Lighting Analysi Structural Analysi Other Engineering Analysis Logistics Plannin Virtual Reality Revie 3D Coordinatio 4D Scheduling & Phase Plannin Laser Scannin Rfid Utility Trackin Digital Fabricatio Digital Layou As-Built Modeling 7D Operations & Maintenanc Cobie Deliverable Asset Management / Trackin Space Management / Trackin Record Modeling Our Commitment to Safety and Quality 305.988.8199 www.joinernest.com estimating@joinernest.com Develop a Site Safety Manual Our safety team develops a safety manual with key stakeholders to ensure project safety. Activity Hazard Analysis + Pre-Task Planning Pre-task planning and AHA are key to project success, so we use them in every project. Mandatory 100% Project Safety Orientation All employees must attend a safety orientation covering hazards, requirements, and emergency plans. Daily Inspections Daily inspections will track job site safety, public liability, and violations. Performance Tracking Unsafe workers face retraining, discipline, or termination; safety trends are analyzed. Full-Time Safety Manager Our full time safety manager ensures site workers are educated and risk- aware. Minimum Safety Training for All Workers and Supervisors Workers receive OSHA training and must show proof of certification on- site. Daily Safety Briefing Each day starts with a meeting covering safety, activities, and site changes. Major Prime Sub Safety Supervisor Subcontractors with large contracts or 50+ workers are required to have a safety supervisor. EMR Minimum Performance of All Selected Subcontractors Subcontractors must be prequalified and provide EMR proof. If EMR >1.25, a safety supervisor is required. Employee X Weekly Toolbox Talks and quarterly Safety Standdowns ensure ongoing training. Safety Quality Quality Control We resolve conflicts, inspect materials, log deficiencies, and ensure timely corrections through QC meetings. Quality Assurance We conduct tests, coordinate inspections, and ensure compliance through reports and checklists. Punchlist Punchlists are planned early, with continuous inspections to reduce last-minute issues. A focused team may be used. Close-Out Manuals are reviewed before submission, system training is provided, and a close-out meeting is held. Completion Documentation As-built drawings and records are maintained, updated, and provided upon completion. Safety and quality aren’t just a priority—they ’re our moral duty. At Ernest, we embed a culture of safety and quality from day one, empowering our teams to uphold the highest standards. Read more below on our proven programs and training that drive real results. 305.988.8199 www.joinernest.com estimating@joinernest.com Project Execution strategies We are committed to industry best practices, integrating lean construction, advanced project management, and strategic procurement to ensure efficiency, quality, and on-time delivery while minimizing risks. Below is the strategies we will use throughout the lifespan of this project: We will adopt Construction Industry Institute (CII) Best Practices to enhance project efficiency and execution Front-End Planning: Defining all project elements before execution to minimize risks Material Management: Utilizing advanced procurement strategies to secure materials ahead of schedule Constructability Reviews: Engaging stakeholders early to optimize design and reduce rework Supply Chain Optimization: Partnering with trusted vendors for cost-effective and timely sourcing. Strategic Sourcing & Procurement Approach Project Scheduling & Risk Mitigation Ensuring Quality & Efficiency Our sourcing teams leverage industry relationships to secure high-quality materials at competitive prices while mitigating supply chain risks. Key strategies include Early Procurement Planning – Identifying long-lead items and placing orders well in advance Multiple Supplier Agreements – Establishing redundancy to prevent delays from vendor setbacks Real-Time Tracking Systems – Digitally monitoring material deliveries to address potential bottlenecks proactively Sustainable & Local Sourcing – Prioritizing environmentally friendly materials and local suppliers to expedite delivery. Given long lead times for fabrication and specialized components, we will implement proactive scheduling strategies Critical Path Method (CPM) Scheduling – Mapping key milestones and dependencies for efficient project flow Just-In-Time (JIT) Delivery Coordination – Aligning material deliveries with project needs to reduce storage and handling issues Advanced Work Packaging (AWP) – Structuring work sequences to maximize efficiency and minimize downtime Regular Progress Reviews – Conducting weekly stakeholder meetings to track progress and resolve issues promptly. Technology-Driven Oversight – Leveraging Building Information Modeling (BIM) and project management software to improve coordination and anticipate conflicts. To maintain high-quality standards and ensure timely delivery, we will implement Prefabrication & Modular Construction – Reducing on-site labor needs and accelerating installation Third-Party Quality Inspections – Verifying compliance with industry standards and regulations. Workforce Training & Safety Programs – Keeping teams updated on best practices and safety protocols. 305.988.8199 www.joinernest.com estimating@joinernest.com Efficient and Coordinated Logistics Safety and quality aren’t just a priority—they’re our moral duty. At Ernest, we embed a culture of safety and quality from day one, empowering our teams to uphold the highest standards. Read more below on our proven programs and training that drive real results. Enabling Phase Quality Assurance Structure Through Completion The enabling phase will encompass all preparatory work, including the construction of a new electrical substation, the rerouting of all utilities, and the demolition of existing structures as required for the project. During this phase, we will establish initial perimeter controls, set up construction trailers, and create a “Community Connector.” This Community Connector will serve as an informational hub, providing updates and graphics to share relevant details with members of the neighboring community. Existing structures designated for removal will be demolished as utility relocation permits allow. The excavation phase will begin once utility relocation is complete, though sheeting, shoring, and excavation may start in some areas while work continues elsewhere to accelerate progress. Construction access will be via Collins Avenue and designated entry points. To reduce dump truck traffic in neighborhoods, haul routes will use controlled entry and exit points on major roads. Coordinated truck access and logistics will ensure smooth operations. Effective planning will minimize community impact, with key challenges including excavation coordination, traffic management, site stability, and strict safety compliance. Towards the end of the excavation phase, one tower crane will be installed to assist with unloading tractor trailers carrying building supplies. Once the structure is complete, a construction material and personnel hoist will be installed to facilitate material movement and efficient debris removal. Access to the construction site will be maintained via Collins Avenue and designated entry points, with coordinated logistics to ensure smooth deliveries and minimize neighborhood impact. Traffic management will be essential throughout this phase. Staging and lay-down areas to the east of the site will be critical for optimizing construction efficiency, especially in areas with limited surrounding lay-down space. Vehicular construction traffic management 1 2 4 Demo clean up and disposal Materials and delivery access Existing soil bearing pressures Excavation for grease trap and helical piles 3 5 Proposed Site and Traffic Control Proposed Delivery Route 305.988.8199 www.joinernest.com estimating@joinernest.com 305.988.8199 www.joinernest.com estimating@joinernest.com High Level and Detailed Schedule Our proposed schedule with key project milestones identified is provided at the end of this section. Several key activities drive the critical path:Key Critical Path ActivitiesDemo and Excavation Finishes Permitting MEP Commissioning / Close-Out Equipment Release Interior Structure Project Buyout New Foundation 305.988.8199 www.joinernest.com estimating@joinernest.com Visa Total Project Value Location ~$3.70M Miami, FL Advenir Academy Total Project Value Location ~11.46M Palm Beach, FL Florida Int’l University Total Project Value Location ~$5.39M Miami, FL Silver Hills Condos Total Project Value Location ~32.14M Fort Myers, FL Walmart Total Project Value Location ~$2.73M Pensacola, FL Marriott Hotel Renovation Total Project Value Location ~7.61M Pompano Beach, FL Orange County Public Schools Total Project Value Location ~$8.3M Orlando, FL Katy Ranch Townhomes Total Project Value Location ~12.83M Houston, TX Select Construction Projects SC Miami Orlando Charleston Nashville Charlotte Omaha Dallas Houston Atlanta Tampa Mobile Geographic Footprint 305.988.8199 www.joinernest.com estimating@joinernest.com We serve multiple markets in the below states Who we work with Business Offices Select Clients Select GCs Storage and Warehouses Select Clients Select GCs Retail Select Clients Select GCs Residential Select clients Select GCs By the Numbers OSHA 10 Certified All Technicians $ 10M / $ 10M Umbrella Liability (occurrence / aggregate) OSHA 30 Certified All Superintendents $ 1M Worker’s Compensation (occurrence) $ 10M / $ 20M General Liability (occurrence / aggregate) $ 30M Performance & Payment Bond Community Connector Proposed Ramps into Excavation