Fuqua Tiny Home Community — Permitting Progress and Cost Update

We are pleased to share another important project update: the City has now accepted and approved the current review items for our horizontal infrastructure workstream.

This is a meaningful milestone because it confirms that our current site infrastructure direction—including civil coordination, utility planning, and horizontal construction preparation—is moving forward without major permitting obstacles at this stage. While we do not want to overstate this as a final approval of every item, the current review result gives us strong confidence that the project’s infrastructure and utility path is proceeding in the right direction.

Based on the current schedule, we expect to receive the formal horizontal construction permit by the end of this month.

Why This Is Good News

This approval reduces a key development risk. Horizontal infrastructure is one of the most important parts of the project because it includes sitework, grading, drainage, utilities, roads, and other improvements needed before vertical construction can begin.

With this latest approval, the project continues to move from planning into execution. It also supports our confidence that the permitting process remains under control and that the project can continue advancing toward construction.

Cost Update: Higher Horizontal Cost Pressure

At the same time, we want to be transparent about one challenge: current construction pricing in Texas has been under pressure.

Material costs have increased, and labor conditions have also become more difficult due to stricter immigration enforcement in Texas. As a result, current horizontal construction pricing is trending higher than earlier estimates.

This is not unexpected in today’s market, but it does mean we are watching the horizontal budget carefully and working to manage cost exposure.

Financing Offset

The positive offset is that our current loan terms are coming together better than expected. Because the financing structure is more favorable, the total equity requirement may be lower than originally anticipated.

As a result, while horizontal costs are higher, we currently do not expect this to materially affect projected investor returns based on the current financing direction. We will continue to monitor pricing, loan terms, and final budget updates closely.

Important Note

This update is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Any offering, if made, will be made only through the Company’s Private Placement Memorandum and related subscription materials. All projections, costs, schedules, permits, financing terms, and returns remain subject to actual execution and final documentation.