Item 5 - Additional Compensation .......................................................................................................................... 23 Item 6 - Supervision ..................................................................................................................................................... 23 Item 7 - Requirements for State-Registered Advisors ................................................................................... 24 Firm Description Highland Investment Advisors, LLC (“HIA”) was founded in 2006. Adam Drake is 100% owner. Highland Investment Advisors LLC provides investment advice under Highland Investment Advisors LLC (“HIA), Highland Investment Advisors LLC DBA Fund Management (“FM”), and Highland Investment Advisors LLC DBA Whitman Wealth Management (“WWM”). Fund Management (“FM”) and Whitman Wealth Management have separate ADVs, available upon request or on our website. Types of Advisory Services ASSET MANAGEMENT HIA offers discretionary and non-discretionary asset management services to advisory Clients. HIA will offer Clients ongoing asset management services through determining individual investment goals, time horizons, objectives, and risk tolerance. Investment strategies, investment selection, asset allocation, portfolio monitoring and the overall investment program will be based on the above factors. Discretionary When the Client provides HIA discretionary authority the Client will sign a limited trading authorization or equivalent. HIA will have the authority to execute transactions in the account without seeking Client approval on each transaction. Non-Discretionary When the Client elects to use HIA on a non-discretionary basis, HIA will determine the securities to be bought or sold and the amount of the securities to be bought or sold. However, HIA will obtain prior Client approval on each and every transaction before executing any transaction. When deemed appropriate for the Client, HIA may hire Sub-Advisors to manage all or a portion of the assets in the Client account. HIA has full discretion to hire and fire Sub- Advisors as they deem suitable. Sub-Advisors will maintain the models or investment strategies agreed upon between Sub-Advisor and HIA. Sub-Advisors execute trades on behalf of HIA in Client accounts. HIA will be responsible for the overall direct relationship with the Client. HIA retains the authority to terminate the Sub-Advisor relationship at HIA’s discretion. HIA is an authorized provider of Dimensional Fund Advisor (“DFA”) mutual funds and may purchase and hold DFA funds in client portfolios. DFA funds are generally not available through retail investment channels. This restriction may limit a client’s ability to manage these funds should the client subsequently terminate his/her relationship with HIA. As part of the recommendations provided, the Client may have a financial plan completed. This may include but is not limited to a thorough review of all applicable topics such as Investments, Taxes, Qualified Plans, Insurance, Retirement Income, College Planning, Home Buying, Budgeting, Debt Management, Emergency Funds, and Risk Tolerance Assessment. If a conflict of interest exists between the interests of HIA and the interests of the Client, the Client is under no obligation to act upon HIA’s recommendation. If the Client elects to act on any of the recommendations, the Client is under no obligation to effect the transaction through HIA. This service will be provided at no additional cost to the Client. FINANCIAL PLANNING AND CONSULTING Financial planning services include a comprehensive evaluation of an investor's current and future financial state and will be provided by using currently known variables to predict future cash flows, asset values and withdrawal plans. HIA will use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing financial plans. Typical topics reviewed in a financial plan may include but are not limited to:
• Financial goals: Based on an individual's or a family's clearly defined financial goals, including funding a college education for the children, buying a larger home, starting a business, retiring on time or leaving a legacy. Financial goals should be quantified and set to milestones for tracking.
• Personal net worth statement: A snapshot of assets and liabilities serves as a benchmark for measuring progress towards financial goals.
• Cash flow analysis: An income and spending plan determines how much can be set aside for debt repayment, savings and investing each month.
• Retirement strategy: A strategy for achieving retirement independent of other financial priorities. Including a strategy for accumulating the required retirement capital and its planned lifetime distribution.
• Comprehensive risk management plan: Identify all risk exposures and provide the necessary coverage to protect the family and its assets against financial loss. The risk management plan includes a full review of life and disability insurance, personal liability coverage, property and casualty coverage, and catastrophic coverage.
• Long-term investment plan: Include a customized asset allocation strategy based on specific investment objectives and a risk profile. This investment plan sets guidelines for selecting, buying and selling investments and establishing benchmarks for performance review.
• Tax reduction strategy: Identify ways to minimize taxes on personal income to the extent permissible by the tax code. The strategy should include identification of tax- favored investment vehicles that can reduce taxation of investment income.
• Estate preservation: Help update accounts, review beneficiaries for retirement accounts and life insurance, provide a second look at your current estate planning documents, and prompt you to update your plan when the legal environment changes or you have major life events such as a marriage, death, or births. If a conflict of interest exists between the interests of HIA and the interests of the Client, the Client is under no obligation to act upon HIA’s recommendation. If the Client elects to act on any of the recommendations, the Client is under no obligation to effect the transaction through HIA. Financial plans will be completed and delivered inside of ninety (90) days contingent upon timely delivery of all required documentation. SUBSCRIPTION-BASED FINANICAL PLANNING This service involves working one-on-one with Beverly over an extended period of time. By paying the monthly fee, Clients will work with Beverly to identify and prioritize goals

and develop and implement their financial plan. Upon desiring a comprehensive plan, a Client will be taken through a four or five-meeting process over two or three months to assist them in establishing their goals and values around money. They will be required to provide information to help complete the following areas of analysis: net worth, cash flow, insurance, employee benefits, retirement planning, insurance, investments, college planning, and estate planning. Once the Client's information is reviewed and data is compiled, a draft will be reviewed with the Client. Clients Point A (where they are now) is established. Once the draft is reviewed with the client, a final meeting is scheduled to address how to reach their goals or their Point B (where they are going). Clients subscribing to this service will receive a written or an electronic report, providing the Client with a detailed financial plan designed to work towards Clients’ stated financial goals and objectives. This report will include at a minimum a Net Worth Statement, ten years of cash flow statements, a Monte Carlo analysis, and recommendations. If a follow-up meeting is required, we will meet at the Client's convenience. While the implementation of the plan is solely the client’s responsibility, Beverly is available for assistance or as questions arise. On an annual basis, clients are invited for a full review of this plan to ensure any required adjustments are made. FINANCIAL INSTITUTION SERVICES HIA provides investment advisory services, acting as a third-party manager, to certain broker/dealers’ customers (“Brokerage Customers”). These Brokerage Customers are referred to Highland by the broker/dealers and their solicitors. The Brokerage Customers enter into a written advisory agreement with HIA, similar to the advisory agreement for non-broker/dealer Customers. No additional fee to the client is charged as a result of the relationship between HIA and broker/dealers and/or HIA and the broker/dealers’ solicitors. Brokerage Customers receive a disclosure before or concurrent with signing an advisory agreement with HIA that describes the relationship between HIA and the broker/dealer and its solicitor. Please reference Section E under “Item 5 - Fees and Compensation” and Section G under “Item 10 - Other Financial Industry Activities and Affiliations” for more information related to this arrangement. PROFESSIONAL REIMBURSEMENT OPTION The professionals at Highland Investment Advisors are strong believers that we provide the greatest level of value to our clients by building a relationship that is based upon the confidence that only a strong financial plan can provide. In order for that plan to be successful, it must be based upon the most current and complete information, and very often requires the engagement of outside professionals who possess very specific skill sets. Effective collaboration with other professionals, most notably Certified Public Accountants, Enrolled Agents, and licensed Estate Planning Attorneys, gives us the greatest opportunity to craft a successful working plan. Based upon this need, and in a desire to encourage our clients to engage with the best independent professionals in this area, we have created the Professional Reimbursement Option (PRO) Plan. The PRO Plan allows you to hire the tax- or estate-planning professional of your choice, and within the terms of the Plan you will receive a management fee credit back from Highland for the professional service fees that you incur, up to a set limit amount. To benefit from this plan the following criteria must be met: The Accounting or Estate Planning profession that you retain must be practicing in good standing, and must be professionally credentialled with a Certified Public Accountant (CPA) or Enrolled Agent (EA) designation, or must be a member of the State Bar Association. The independent professional must be truly independent, must serve the client in a fiduciary capacity, and must not be in a position that could create conflicts of interest with regard to investment advice or commission-driven activities. This means that to qualify for PRO Plan reimbursement the professional may not possess any form of Securities Licensing, either through FINRA or the SEC, nor may they engage in the sale of insurance- related products. Additionally, the professional’s employing firm may not have any individuals on staff who are securities licensed or engaged in the sale of insurance products, nor may the firm have a common ownership or affiliation with another “outside firm” that engages in those activities. To participate in this program, Highland Investment Advisor must be the client’s sole investment/financial planning professional. While utilizing multiple investment professionals is always a client’s right, we have found that this arrangement is most valuable and effective for those individuals who utilize one primary advisor in each of their respective capacities. Certain types of investment accounts, such as employer-sponsored Retirement plans or self-directed trading accounts may be exempted, if Highland deems it to be in the best interest of the client. Because the purpose of this program is to encourage greater informational access and collaboration, in order to qualify for reimbursement under this plan the completed income tax return(s) or estate plan documents must be shared in full with a client’s advisor at Highland. In order for a client to receive the reimbursement amount for their professional services, their managed relationship with Highland must be in place for at least 90 days prior to the request for a credit. Credits are available on a calendar year basis, and unused benefits are not transferable from year-to-year. If the client qualifies for the PRO Plan, as outlined above, the following reimbursement credits would be available to them to offset or eliminate their income tax or estate planning costs. Assets Under Management Credit Available Under $500,000 No credit available at this time $500,000 to $1,000,000 $500.00 $1,000,001 to $2,500,000 $1,000.00 $2,500,001 to $5,000,000 $2,500.00 Over $5,000,000 $3,500.00 Client Tailored Services and Client Imposed Restrictions The goals and objectives for each Client are documented in our Client files. Investment strategies are created that reflect the stated goals and objectives. Clients may impose restrictions on investing in certain securities or types of securities. Agreements may not be assigned without written Client consent. Wrap Fee Programs HIA does not sponsor any wrap fee programs. Client Assets under Management HIA has the following assets under management: Discretionary Amounts: Non-discretionary Amounts: Date Calculated: $231,006,421 $0 July 28, 2023