Jason A Prattes Financial Inc

Item 5 Fees and Compensation
ADVISORY FEES

The following information describes how Prattes is compensated for the advisory and financial
planning services we provide to our clients. The specific manner in which fees are charged and
the compensation we receive may differ between clients depending upon the individual
Investment Management Agreement and/or Financial Planning Agreement with each client.
Prattes reserves the right to negotiate our compensation with clients depending on the scope of
our advisory relationship, and we may charge higher or lower fees than are available from other
firms for comparable services. Prattes has the general discretion to waive all or a portion of our
fees, but typically only exercises this discretion for our employees. Lower fees for comparable
services may be available from other sources.

Investment Management Fees. In consideration for providing investment management services,
Prattes receives compensation from our clients based both on (i) a specified percentage of the
assets we manage.

Pursuant to the terms of the Investment Management Agreement with the client, Prattes charges
an annual asset-based fee equal to a maximum of 1.5% based on the client’s assets under
 management (“AUM”) as valued by the custodian. Fees are negotiated with each client based on
a variety of factors, such as the amount of assets being managed, future deposits to the accounts
under our management, the level and type of services provided and/or the nature of the
relationship with the client.

Prattes generally bills our fees on a quarterly basis in arrears. Clients must authorize the
deduction of our fees from their managed accounts by the qualified custodian, and choose the
method by which our fees will be calculated. Clients may elect to have our advisory fees

Jason A Prattes Financial Inc.
Form ADV Part 2A & 2B

calculated by our firm or the qualified custodian and deducted from their accounts. Prattes does
not withdraw fees directly from clients’ accounts. The client makes this election when applying
for their account at the qualified custodian or at any time, or cancel the existing arrangement. All
fees will be supported by an invoice to the client itemizing the fee.

If a client chooses, our investment management fees are deducted from the client’s account(s),
pursuant to the client’s written instructions to the broker/dealer holding the account (the
qualified custodian). Specifically, clients can elect to use the qualified custodian’s automatic
advisor fee billing functionality, through which the client authorizes the qualified custodian in
writing to automatically deduct a certain amount of fees from their account(s) and remit the fees
to us. Clients specify the method by which our fees will be calculated as well as the timing of the
deductions (i.e., daily, monthly, quarterly, etc.). This request may be made in the client’s account
application to the qualified custodian or at any time after that, and the client may change his
billing instructions to the qualified custodian at any time. Once this written request from the
client is processed, the qualified custodian will calculate the fees according to the method
specified by the client. Our firm does not have the authority to request that the qualified
custodian withdraw any fees from the client’s accounts or make any adjustments to clients’
predetermined fee calculation method (other than to reduce the fee). Clients can either specify
a calculation method (i.e., percent of AUM, flat fee, percentage of positive P&L,) or they can
authorize the qualified custodian to pay us fees up to a certain amount each month (or quarter)
and process any invoices we submit for up to that amount. Any advisory fees deducted from the
client’s account(s) will be reflected on account statements sent by the qualified custodian.

Clients typically pay our firm by instructing the qualified custodian to deduct a certain amount of
advisory fees from their account(s) and pay those fees to our firm. The qualified custodian does
not accept or process requests to deduct fees received from our firm without the client’s express
written authorization. Specifically, clients can elect to use the automatic advisor fee billing
functionality offered by the qualified custodian, through which the client instructs the qualified
custodian to calculate and deduct our advisory fees from the client’s account(s) and remit the
fees to our firm. Clients must specify the exact method by which our fees are to be calculated
(i.e., percentage of net liquidation value, flat fee, percentage of positive P&L) as well as the timing
of each (i.e., daily, monthly, quarterly, etc.). Once the fee agreement signed by the client is
processed by the qualified custodian, our fees will be processed in accordance with the client’s
instructions to the qualified custodian.

Any advisory fees deducted from the client’s account are reflected on the client’s periodic activity

 statements as well as the client’s account management window when they log in to their
account. The periodic activity statement also specifies the calculation method. In addition to
providing advisory fee information in the client’s periodic account statements and online, the
qualified custodian sends a separate quarterly summary statement to the client’s residential
address that details the trading activity, positions, investment rate and the method of calculating
advisory fees, if any, during the preceding quarter. Moreover, our firm will instruct the qualified
custodian to send each client an invoice each time a fee is charged. This invoice reflects the fee
charged, the fee calculation methodology, and the period covered by the fee. Please refer to Item
15 of this Brochure for more information.

Prattes may provide advice to clients regarding investments in third party private placement

Jason A Prattes Financial Inc.
Form ADV Part 2A & 2B
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TYPES OF CLIENTS

Prattes offers investment advisory services to a diversified group of clients including individuals,
high net worth individuals, family offices, institutions, private funds, commingled or pooled
investment vehicles, trusts, estates, pension and profit-sharing plans (other than plan
participants), charitable/non-profit organizations, corporations and other business entities. Client
relationships may vary in scope and length of service.

Jason A Prattes Financial Inc.
Form ADV Part 2A & 2B

ACCOUNT REQUIREMENTS

Prattes does not require a minimum account balance for our investment management services.