The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call 800-242-1000.

Shares are bought and sold at market price, not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.

Market Cap – The “Market Cap” or market capitalization is calculated by multiplying the number of shares outstanding by the company’s stock price.

Price to Book – The “Price to Book” is the ratio of the security’s market price divided by the company’s book value, or the balance of its common equity (total equity less any preferred equity).  It is also common for a company’s book value to be referred to as its Net Asset Value, or NAV, which is the difference between its assets and liabilities (and preferred equity, if any).  As shown in the Exhibit, most of the stocks in DVDN’s Investment Universe were priced, on 6/28/2024, below Net Asset Value.  A company’s Net Asset Value can fluctuate as the fair market value of its assets changes due to changes in interest rates, changes in market spreads, or changes in credit performance.  Although there are some companies in the Investment Universe that trade at a premium to Net Asset Value, generally Net Asset Value is a reasonable proxy for the fair value of the stocks in the Investment Universe.

Current Yield – The “Current Yield” is the ratio of the company’s most recently declared dividend divided by the security’s market price wherein the most recently declared dividend is annualized by multiplying by 4 (or 12 in the case the company pays a monthly dividend).  The Current Yield can fluctuate as a company’s stock price changes or if a company increases or decreases its quarterly dividend.  As shown on Page 3, the Current Yield for the stocks in the Investment Universe is benefitted as the stock prices are trading at discounts to Net Asset Value, or book value (see definition for Price to Book).

Agency Mortgage REITs – Agency Mortgage REITs invest in mortgage-backed securities issued by Fannie Mae and/or Freddie Mac, otherwise known as government-sponsored enterprises (or GSEs).  These securities do not expose the investor or any credit risk as that risk is borne by the GSEs.  Agency Mortgage REITs also invest in mortgage-backed securities issued by Ginnie Mae with is backed by the full faith and credit of the U.S. government.

Hybrid / Credit Mortgage REITs – Hybrid Mortgage REITs invest in mortgage-backed securities that are not guaranteed by any government-sponsored enterprise and investors are exposed to credit risk related to borrower payment behavior for the mortgages underlying the mortgage-backed security.

CREITs – Commercial Mortgage REITs (“CREITs”) invest in loans that are secured by commercial real estate, including multifamily properties.  Investors in commercial mortgage loans are subject to credit risk related to borrower payment behavior.

BDCs – Business Development Companies (“BDCs”) invest in loans made primarily to private companies.  Investors in loans to private companies are subject to credit risk related to the payment behavior of the private companies.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 800.242.1000 or visit our website at KingsbarnCapital.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may be only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.

Fund risks: As with all funds, a shareholder is subject to the risk that his or her investment could lose money. The principal risks affecting shareholders’ investments in the Fund are set forth below.

Equity Securities Risk. Equity prices may fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of equity
securities may fluctuate from day to day.

Mortgage REITs Risk. The Fund’s investments in the securities of publicly traded residential and commercial mortgage REITs will be subject to a variety of risks affecting those REITs directly. Investments in BDCs, Business Development Companies may be subject to a high degree of risk. BDCs typically invest in small and medium-sized private and certain public companies that may not have access to public equity or debt markets for capital raising. As a result, a BDC’s portfolio typically will include substantial amounts of securities purchased in private placements, and its portfolio may carry risks similar to those of a private equity or venture capital fund.

Risks of investing in VDLs. VDLs, Venture Debt Lenders, are direct lenders to private companies that are backed by private equity or venture capital investment firms. Generally, these companies have reached a stage in their business life cycle whereby their sponsors are comfortable raising debt capital to fund growth rather than investing additional equity capital.

Fixed-Income Securities Risk. Fixed-income securities can experience extended periods of price declines during periods of (a) sustained increases in market interest rates; and/or (b) persistent widening of credit spreads. The values of fixed-income securities may be affected by changes in the credit rating or financial condition of their issuers.

New Fund Risk. The Fund is a new ETF and has only recently commenced operations. As a new fund, there can be no assurance that the Fund will grow to or maintain an economically viable size, in which case it could ultimately liquidate.The Fund’s distributor does not maintain a secondary market in the Fund’s shares.

Foreside Fund Services, LLC. Distributor.

The 30-Day SEC Yield is a standard yield calculation developed by the U.S. Securities and Exchange Commission (SEC) that allows fairer comparison of bond funds. It is based on the most recent 30-Day period covered by the Fund’s filings with the SEC. The yield figure reflects dividends and interest earned during the period after the deduction of the Fund’s expenses. It is also referred to as the “standardized yield.” The SEC yield is used to compare bond funds and ETFs because it captures the effective rate of interest an investor may receive in the future. It does not reflect the yield an investor would have received if they had held the Fund over the last twelve months assuming the most recent NAV.

Per the 30-Day SEC Yield calculation, the total amount of dividends and interest earned, less applicable expenses, is divided by the maximum public offering price per share on the last day of the 30-Day period. Therefore, over time, the 30-Day SEC Yield can fluctuate based upon (a) dividends and interest earned; and/or (b) applicable expenses; and/or (c) the maximum share price of the ETF at the end of a 30-Day period.

Investors should not rely upon the historical 30-Day SEC Yield when considering an investment in DVDN as past results may not be indicative of future dividend distributions by companies in the DVDN portfolio.

The Distribution Rate is the annual rate an investor would receive if the most recent Fund distribution stayed the same going forward. The rate represents a  single distribution from the Fund and does not represent the total return of the Fund. The rate is calculated by annualizing the most recent distribution and  dividing it by the FUND NAV from the as-of-date.

Investors should take note of the following matters pertaining to the 4Q23, 1Q24 and 2Q24 Dividend Distributions and the calculation of the Fund’s Distribution Rate.

Investors should understand the Fund’s external accountants have a quarterly “cut-off” date prior to the actual end of a quarter (generally the 15th day of the third month of each quarter) that provides sufficient time to perform all calculations involved in declaring a dividend.

Further, as most of companies in the DVDN portfolio pay a quarterly dividend that goes ex-dividend (the date the dividend is owed to the Fund) during the last 7-10 days of the quarter, quite a few of these company dividends “go ex” after the quarterly cut-off date and are therefore not recorded as Investment Income that determines that quarter’s dividend.

With this information, a few comments on how this impacted the 4Q23 Dividend Distribution and Distribution Rate and will also impact the 1Q24 and 2Q24 Dividend Distribution and Distribution Rate.

• 4Q23 – As DVDN was launched in November 2023, the 4Q23 dividend of $0.81 was the Fund’s first dividend distributed to investors. Further, as it was also the final quarter of the calendar year, the Fund’s accountants estimated the dividends the Fund would receive from portfolio companies after the 4Q23 cut-off date (mid December 2023). The reason for doing this was to make sure the dividend distribution did not result in any negative tax issues for the Fund or investors. The resulting 4Q23 Distribution Rate, including actual and estimated dividends received from portfolio companies, as reported by the Fund’s accountants, was 12.79%.
• 1Q24 – During 1Q24, the Fund’s accountants determined the 1Q24 investor dividend of $0.52 based upon a 3/15/24 cut-off date that understated the total investment income used to compute the 1Q24 as it excluded the dividends received by the Fund from several of the Fund’s portfolio companies. The reason for the understatement of Investment Income was due to the Fund’s accountants only estimating dividends after the cut-off date for the 4th quarter of each year, rather than doing so each quarter. We believe the 1Q24  Distribution Rate would have been similar to the Fund’s 4Q23 Distribution Rate if the 1Q24 cut-off date would have been in early April 2024 rather than mid-March 2024.
• 2Q24 – In response to the 1Q24 understatement, DVDN’s portfolio managers requested a change in all future quarterly cut-off dates, beginning 2Q24, to occur early in the month following a quarter-end so that all stock dividends received each calendar quarter would be included in each quarterly dividend calculation. Investors should understand the result of this change in the quarterly cut-off date, specific to the 2Q24 dividend, will be (a) to include the undistributed 1Q24 income in the 2Q24 investor dividend; and (b) to include the full quarterly dividends received by the Fund as the 2Q24 cut-off date will be in early July 2024.

DVDN currently expects the 2Q24 distribution to be $1.093777 resulting in a Distribution Rate of 14.90% that was determined by annualizing this distribution and dividing it by the ending 2Q24 NAV of $29.36. Investors should note that this Distribution Rate is not sustainable. As FINRA takes a dim view of advisers forecasting future results, DVDN believes it is logical that future Distribution Rates will reasonably approximate the average of the 1Q24 and 2Q24 Distribution Rates of 7.11% and 14.90%, respectively. To be sure, future distributions will reflect a full quarter’s dividends declared by DVDN portfolio companies.

Investors should not rely upon the Distribution Rate when considering an investment in DVDN as past results may not be indicative of future dividend distributions by companies in the DVDN portfolio.