Horizon Advisory Services Inc

ITEM 5 - FEES AND COMPENSATION
                             Investment Supervisory or Management Services

Our annual investment management fee is generally 1.00% of the value of the client’s assets under our
management, although this fee is negotiable at the sole discretion of the firm. The specific fee applicable
to each client is set forth in the client’s advisory agreement and generally applies to all assets within the
client’s household or portfolio, as defined in the agreement.

In addition to the investment management fee, each client account is charged a technology fee. Accounts
with an average daily balance of $5,000 or more are assessed an annual technology fee of $40, charged
quarterly at $10 per quarter. Accounts with an average daily balance below $5,000 are charged $20
annually, or $5 per quarter. Clients with multiple accounts are charged separately for each account. If an
account is open for less than a full calendar quarter, the fee is prorated based on the number of days the
account was active during that quarter.

Both the investment management fee and the technology fee are combined and deducted as a single
charge directly from the client’s account. Although these components are calculated separately, they are
billed together as one combined fee for each applicable quarter.

Investment management fees are calculated using the firm’s portfolio accounting system, based on the
average daily account value over each calendar quarter. This method accounts for daily fluctuations in
account value and is applied consistently across all managed accounts.

Clients are required, as a condition of engagement, to authorize the custodian to deduct the total combined
fee directly from their accounts. We do not accept clients who do not provide this authorization.

Fees are billed quarterly in arrears, based on the average daily balance for the applicable calendar quarter.
For clients who engage the firm mid-quarter, the initial fee is prorated from the account’s inception date
through the end of that calendar quarter. If a client relationship terminates during a quarter, fees are
prorated through and including the effective termination date.

While we do not typically recommend the use of margin in client accounts, clients should be aware that
investment management fees are calculated on the full gross value of assets in the account, including any
margin balances. Clients using margin will also incur margin interest charges, which are separate from

Horizon Financial - Firm Brochure – Rev. 2026-06-03                                                Page 5 of 20

and in addition to our investment management fees.

                                                      Other Fees

In addition to the investment management and technology fees we charge, clients are responsible for any
fees or expenses imposed by third parties in connection with managing their accounts. These third-party
charges are not paid to Horizon and may include:

    •    Custodial fees (including, for clients who maintain their accounts at Charles Schwab & Co., Inc.,
         an asset-based fee of 5 basis points annually on Chargeable Assets, calculated and billed in
         accordance with its Asset-Based Pricing Addendum signed at account opening); transaction
         charges; account maintenance fees; and other service fees such as those for overnight check
         delivery, wire transfers, or special handling requests)

    •    Trading or execution-related fees (such as commissions or ticket charges)

    •    IRA, qualified plan, or other account-type-specific fees

    •    Mutual fund and ETF expenses (e.g., management fees, operating expenses, 12b-1 fees)

    •    Platform or clearing fees imposed by the custodian or broker-dealer

These fees are typically described in the custodial agreement and may vary depending on the type of
transaction (e.g., exchange vs. purchase), the method of placement (e.g., electronic vs. phone), and the
specific investment vehicles used. Paper trade confirmations or mailed statements may also trigger
additional charges.

Mutual funds and ETFs incur their own internal expenses, which reduce the investment return to
shareholders. These typically include fund management fees, administrative costs, and, in some cases,
marketing or distribution expenses (such as 12b-1 fees). Investors should consult the fund’s prospectus
and Statement of Additional Information to understand these fees before investing.

The selection of a mutual fund share class can also affect the total cost to the investor. Different share
classes carry different internal fees and may include redemption restrictions or back-end sales charges.
We strive to use the lowest-cost share class available through the client’s custodian; however, not all
custodians offer every available share class.

We do not receive any portion of the third party fees described in this section.

               Compensation for the Sale of Securities or Other Investment Products

Horizon Advisory Services, Inc. is primarily a fee-based investment advisory firm, and the majority of the
firm’s compensation is derived from the investment management fees we charge for advisory services.

However, certain supervised persons of the firm are also registered representatives of Private Client
Services, Inc. (“PCS”), an SEC-registered broker-dealer and member of FINRA/SIPC. In this separate

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capacity, they may receive commissions, trails, 12b-1 fees, or other transaction-based compensation from
the sale of securities or insurance products. These commissionable activities are generally limited to
legacy brokerage accounts and previously issued insurance products, and they are separate from our
investment advisory services.

Clients are under no obligation, contractually or otherwise, to purchase investment or insurance products
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ITEM 7 - TYPES OF CLIENTS
Horizon Advisory Services, Inc. provides investment advisory services primarily to individuals and
families, including taxable accounts, trusts, and retirement accounts.

While we do not impose a firm-wide minimum account size, certain investment strategies or operational
constraints may result in account minimums at the advisor's discretion. These minimums, if applicable,
will be disclosed to the client in advance and included in the advisory agreement.