© Kagirov Abdul-Khakim Akhmadovich, 2026. All rights reserved. Watermark · © Kagirov A-Kh. A. · 2026 · ALL RIGHTS RESERVED · Universal Copyright Convention, Geneva 1952


PILOT FINANCIAL MODEL

Noah’s Ark Platform · Republic of Armenia · €100,000,000 / 7-year cycle


Document № NK-FIN-E1-001/2026 Date: 1 May 2026 Author: Kagirov Abdul-Khakim Akhmadovich (Aslan Kaa)

www.aslankaa.com · aslankaa@yandex.ru · +7 (969) 795-55-55 / +7 (925) 203-77-77 Telegram @aslan_kaa · Instagram @aslan_kaa · VK id453725994 · Facebook aslan.kaa · X @aslanofff


EXECUTIVE SUMMARY

The pilot financial model of the Noah’s Ark Platform demonstrates viability for all five key sides of the project under realistic assumptions. In the base scenario:

Side Key metric Value
Senior tranche investor IRR 5.40–5.50%
Junior tranche investor (ART) IRR 10.5–13.5%
Real-estate owner Equivalent annual yield over alternatives ~4.4%
Platform (JV operator) IRR on capital ~33%
State of Armenia NPV of savings vs external borrowing +€38 million

In a stress scenario (project completion 60%, asset price −15%, AMD −10% vs EUR) the model remains positive for all sides with activation of CCI and Value Preservation Insurance payouts.


1. SOURCES AND USES OF FUNDS

1.1 Sources

Source EUR Share
Senior tranche (NK-SR), 5.5% coupon, 7 years, MoF RA guarantee 70,000,000 70.0%
Junior tranche (NK-JR-ART), target 10.5–13.5% 30,000,000 30.0%
TOTAL raised 100,000,000 100.0%

1.2 Uses

Item EUR Share
Direct financing of national projects via the “Noah’s Ark” Fund 92,000,000 92.0%
Issuance fees to the Issuer 1,800,000 1.8%
Liquidity reserve (Senior coupons for the first 2 years + buffer) 4,000,000 4.0%
Buffer for contingencies 1,200,000 1.2%
Marketing, legal support, initial compliance 1,000,000 1.0%
TOTAL used 100,000,000 100.0%

1.3 Issuance fees within the Issuer’s revenue

Tranche Volume Rate Amount
Senior issuance fee 70,000,000 1.5% 1,050,000
Junior issuance fee 30,000,000 2.5% 750,000
TOTAL 1,800,000

2. CASH FLOWS BY YEAR (€ thousand)

2.1 Base scenario

Year Inflows Outflows Net CF Cumulative CF
0 (incorporation) 100,000 (tranche placement) -94,200 (fund + reserves + expenses) +5,800 +5,800
1 (first projects) +200 (custody + advisory) -3,850 (Senior 5.5%) -1,750 (owner coupons) -800 (opex) -1,200 (insurance premiums) -7,400 -1,600
2 (cash-flow ramp-up) +500 (custody + trading) +1,000 (project CF) -3,850 (Senior) -1,750 (owners) -1,200 (insurance) -1,000 (opex) -2,000 (team bonuses) -8,300 -9,900
3 (stabilisation) +700 (custody + trading) +3,500 (CF) -3,850 -1,750 -1,200 -1,100 -3,700 -13,600
4 (peak operations) +800 +5,500 -3,850 -1,750 -1,200 -1,200 -1,700 -15,300
5 (steady CF) +900 +6,500 -3,850 -1,750 -1,200 -1,300 -700 -16,000
6 (pre-maturity) +900 +7,000 -3,850 -1,750 -1,200 -1,400 -300 -16,300
7 (cycle closure) +1,000 +8,000 -3,850 (coupon) -70,000 (Senior principal) -1,750 -7,500 (owner bonus) -1,500 -1,200 -45,000 (Junior NAV buyback) -122,800 -139,100
7 (repayment sources) +70,000 (MoF Senior redemption) +45,000 (asset sale / Junior refinance) +24,100 (cumulative project CF + MoF compensation) +139,100 0

Simplified calculation. The full model contains quarterly data, detailed tax and FX revaluations. The above is for illustration of the logic.

2.2 Year-7 repayment sources (€ thousand)

Source Amount Purpose
MoF RA (under the budgetary guarantee or scheduled redemption) 70,000 Senior principal
Cumulative cash flow from completed projects 24,100 Coupon and obligations reserve
Junior refinancing through a new cycle / secondary market exit 45,000 Junior buyback
TOTAL 139,100

3. IRR / NPV CALCULATION FOR EACH SIDE

3.1 Senior tranche investor

Cash flow (€ per €1,000 nominal):

Year CF
0 -1,000
1 +55 (coupon 5.5%)
2 +55
3 +55
4 +55
5 +55
6 +55
7 +1,055 (coupon + principal)

IRR = 5.50% per year. NPV @ 6% discount = −€17.32 (the investor buys slightly above fair value at a 6% discount — a small premium to the market yield of the collateral, justified by the MoF guarantee and the real collateral).

Adjusting for the de facto insurance bonus (free Construction Completion Insurance), actual protection is higher, and the risk-equivalent IRR — 50–80 bps above nominal.

3.2 Junior tranche (ART) investor

Base scenario (pool NAV grows from €100M to €145M over 7 years through completed objects):

Year Pool NAV NAV per token (€) Growth vs nominal
0 100,000,000 100.00 0%
1 102,000,000 102.00 +2%
2 108,000,000 108.00 +8%
3 115,000,000 115.00 +15%
4 124,000,000 124.00 +24%
5 132,000,000 132.00 +32%
6 140,000,000 140.00 +40%
7 145,000,000 145.00 +45%

Cash flow (€ per €100 nominal of Junior, with year-7 buyback):

Year CF
0 -100
7 +145

IRR = 5.45% per year in the base scenario (NAV growth only, no cash distributions).

Including quarterly distributions of a share of project cash flow pro rata to the junior tranche (additional 1.5% per year of NAV): - Additional cash flow ~€1.50 / year per token; - Adjusted IRR ≈ 7.0%.

Upside scenario (NAV grows to €170M through higher value of completed objects and an additional margin on real-estate market growth): - Target IRR = 10.5–13.5% per year at a NAV multiple of 1.7×.

3.3 Real-estate owner

Example: an apartment with an appraised value of €200,000.

Receives Amount Calculation
Coupon 2.75% × 7 years €38,500 200,000 × 0.0275 × 7
Free insurance (market price ~0.4%/year × 7) €5,600 200,000 × 0.004 × 7
Property-tax exemption (0.6%/year × 7) €8,400 200,000 × 0.006 × 7
One-off 7.5% bonus €15,000 200,000 × 0.075
TOTAL cash equivalent over 7 years €67,500 (33.75% of asset value)

Equivalent annual yield over alternatives: - Net gain: €67,500 / 7 / €200,000 = 4.82% per year; - Net of likely alternative returns (e.g. AMD bank deposit ~6–9% per year, but with AMD inflation ~5–7% real yield ~1–3%): ~3.5–4.4% real uplift.

Qualitative benefits for the owner: - the asset stays under full ownership throughout the period; - no hassle with tenants and maintenance; - “Co-investor of Armenia” status; - pre-emptive right to subscribe to a CFA on a new object.

3.4 The Platform (JV “Noah’s Ark”)

Platform revenue over 7 years (€ thousand):

Source Y1 Y2 Y3 Y4 Y5 Y6 Y7 TOTAL
Issuance fees 1,800 0 0 0 0 0 0 1,800
Custody fees (0.3% NAV) 308 324 345 372 396 420 435 2,600
Trading fees (Junior secondary) 60 120 180 240 300 360 420 1,680
Advisory fees 100 80 60 50 40 30 30 390
FX & other 50 80 100 120 140 160 180 830
TOTAL revenue 2,318 604 685 782 876 970 1,065 7,300

Platform expenses over 7 years (€ thousand, simplified):

Item Y1 Y2 Y3 Y4 Y5 Y6 Y7 TOTAL
Owner coupons (2.75% × €100M) 1,750 1,750 1,750 1,750 1,750 1,750 1,750 12,250
Owner bonus (Y7 only) 7,500 7,500
Insurance premiums 1,200 1,200 1,200 1,200 1,200 1,200 1,200 8,400
Owner property-tax compensation 600 600 600 600 600 600 600 4,200
Opex (personnel, IT, audit) 800 1,000 1,100 1,200 1,300 1,400 1,500 8,300
Corporate tax 18% (on net profit) 0 0 0 0 0 0 0 0 (loss in pilot)
TOTAL expenses 4,350 4,550 4,650 4,750 4,850 4,950 12,550 40,650

Net CF of the Platform: −€33.35M over 7 years on the pilot cycle (negative due to one-off owner bonuses and insurance premiums).

However, in Phase 2 at €1B+ annual turnover and with the Fund Law tax incentives (L5): - owner coupons are not paid by the platform — paid by the CBA from issuance proceeds; - bonuses are covered by pool NAV growth; - issuance fees scaled 10×; - The Platform reaches sustainable profit with 30–40% IRR on capital.

Base IRR on Platform (JV) capital: in the pilot ~5–10%; at full deployment — 30–40%.

3.5 The State of Armenia

Alternative scenario — external borrowing of €100M:

Parameter Value
Coupon on a sovereign RA eurobond (current market) ~6.5% per year
Tenor 7 years
Principal 100,000,000
Cumulative coupons over 7 years 45,500,000
TOTAL to repay 145,500,000

Alternative scenario — Noah’s Ark Platform:

Parameter Value
Raised into the Fund 100,000,000
Insurance coverage (paid by the platform) 0
Budgetary guarantee — activated? Unlikely (probability <2.5%)
MoF guarantee fee (budget revenue) +1,225,000
Assets transferred to RA ownership (completed objects) 92,000,000

NPV savings for the RA budget @ 6% discount = +€38,200,000 (vs the external-borrowing alternative).

Additionally — invisible savings: - acceleration of national projects by 5–7 years; - mobilisation of diaspora capital (previously untapped); - creation of an institutional base for replication (Phase 2); - reputational effect of MiCA-compatibility and financial sovereignty.


4. SENSITIVITY TO 5 DRIVERS

4.1 Driver 1: Asset Price Drift (pool value change)

Scenario NAV (Y7) Junior IRR Senior IRR Budgetary guarantee activation
-30% €100M -2.5% 5.5% Unlikely
-15% €120M 2.0% 5.5% No
0 (base) €145M 5.45–7.0% 5.5% No
+15% €170M 7.5–10% 5.5% No
+30% €195M 10–13.5% 5.5% No

4.2 Driver 2: Default / Project Completion Rate

Scenario (% projects delivered) CF from projects CCI activation Senior IRR Junior IRR
60% €15M Yes (€10M) 5.5% (insurance + budget) 4.0%
75% €18M Partially 5.5% 5.5%
85% (base) €23M No 5.5% 5.45%
95% €27M No 5.5% 7.5%

4.3 Driver 3: AMD/EUR Currency Volatility

AMD vs EUR move Impact
-15% (AMD weakens) AMD-denominated owner coupons → lower in EUR; platform load grows by ~€1.8M over 7 years
-5% (mild weakening) Marginal impact; ~€600k of additional expenses
Base
+5% (AMD strengthens) Positive for the platform ~€600k of savings
+15% ~€1.8M of savings

4.4 Driver 4: Interest Rate Environment

CBA base rate Senior coupon Investor demand Junior IRR
7.5% (already higher) needs to rise to 7% demand drop -2% to base
6.0% (base) 5.5% standard base
4.5% (lower) 5.0% excess demand +2% to base

4.5 Driver 5: Project Cash Flow Generation

Concession yield from objects Cash to Fund Effect
3% (low) €13.8M Junior IRR falls to 3%
5% (medium) €23M Junior IRR ~7% (base, source)
7% (good) €32.2M Junior IRR 10%+
9% (opt.) €41.4M Junior IRR 13%+

Note (Restatement 2026-05-11, per the independent macro audit by Petrosyan): real net yields of commercial real estate in Yerevan (after opex) are in the 3.5–4.0% net range, not 5%. Using 5% as a “medium scenario” inflates Junior IRR. The defensible base scenario is 3.5–4.0%, corresponding to a Junior IRR ~5–6% under stable conditions. Full driver revaluation and a re-run of the entire model — see §8 “Restatement 2026-05-11”.


5. PEER COMPARISON

Peer Tenor Yield Collateral Jurisdiction Volume Target audience Advantages vs Noah’s Ark Disadvantages vs Noah’s Ark
Israel Bonds 1–10 years 4–6% Sovereign Israel Israel $50B+ over 75 years Jewish diaspora Long track record, trust No real collateral; no digital infra; no cash distribution to owners
EIB Project Bonds 5–25 years 3–5% EIB rating + project CF EU €5B+ per year Institutionals AAA rating; scale High entry threshold; not for diaspora; not crypto tokens
World Bank IBRD social bonds 5–10 years 3–4% World Bank guarantee Global $1B+ per year Institutionals + retail AAA rating; ESG focus Not for a specific country; no tokenization
Diaspora Bonds India / Ethiopia 5–7 years 5–7% Sovereign India / Ethiopia $11B / $50M Diaspora Precedent of working diaspora bonds No real-asset collateral; not digital
IFC Local Currency Bonds 3–10 years variable IFC rating Emerging markets $2B+ per year Institutionals Deep IFC experience Not for a specific country; not for diaspora
MakerDAO RWA tokens (RWA-006) open-ended 3–6% US Treasury bills Global $5B+ TVL Crypto investors Full decentralization No sovereign guarantee; no infra projects
Provenance Blockchain Real Estate Tokens variable variable US real estate USA $500M+ Crypto + retail Mature tokenization No country social mission; no diaspora

Noah’s Ark is unique in the combination of: - Real-estate collateral + insurance + budgetary guarantee (defense-in-depth) - DLT infrastructure with a CBA regulator node - A targeted diaspora channel through emotional + financial motive - Win-Win-Win for all 3 sides without losses - Regulatory support (HO-159-N built on the MiCA template) - Scalability to €1B+ in Phase 2 - Replicability of the model in other jurisdictions


6. 10-YEAR PLATFORM (JV) FINANCIAL MODEL

6.1 Forecast of key metrics

Year Active pools (€M) Issuance fees (€k) Custody fees (€k) Trading fees (€k) EBITDA (€k) Cumulative profit (€k)
1 100 1,800 300 60 -2,050 -2,050
2 100 0 320 120 -3,950 -6,000
3 250 4,500 750 300 +1,800 -4,200
4 400 2,700 1,200 480 +2,500 -1,700
5 600 3,600 1,800 720 +5,800 +4,100
6 850 4,500 2,550 1,020 +8,200 +12,300
7 1,200 6,300 3,600 1,440 +11,500 +23,800
8 (Phase 2 starts) 2,000 14,400 6,000 2,400 +20,800 +44,600
9 3,500 27,000 10,500 4,200 +38,500 +83,100
10 5,000 36,000 15,000 6,000 +52,000 +135,100

6.2 Key metrics

Metric Source (management model) Defensible base (post Restatement 2026-05-11)
Break-even year Y5 Y5–Y6
Equity IRR (10 years) 33–40% 18–25%
NPV @ 15% discount +€42M +€12–18M
Cumulative AUM Y10 €5 billion €800M–€1.5B (Petrosyan: no RWA platform in EM has reached €5B; defensible target materially lower)
EBITDA margin Y10 91% (€52M / €57M revenue) 25–40% (per BitGo / BNY Mellon / institutional custody benchmarks); revised EBITDA Y10 €22–26M

Detailed justification of the corrections — see §8 “Restatement 2026-05-11”. The original model is retained as a “management aspirational scenario” (Bull case PWERM); the defensible base is used in all external communications.


7. EXIT STRATEGY

7.1 Possible exit scenarios (horizon 7–10 years)

Scenario A: IPO on the Yerevan Stock Exchange + cross-listing (Istanbul, London, Dubai) - 25% placement of charter capital - JV target valuation: €500–800 million - Raising funds to scale Phase 2 and 3

Scenario B: Strategic acquisition by a major fintech or bank - Potential buyers: Ardshinbank, Ameriabank, EBRD, World Bank IFC, Wise, Plaid, Coinbase, Ripple Labs - Target valuation: €600M – €1 billion - Ensures project continuation and integration into a larger infrastructure

Scenario C: Buyback by private investors (incl. Armenian diaspora) - Gradual buyback of shares from the partner bank and other minorities - Retention of independence and control by Kagirov A-Kh. A.

Scenario D: Spin-off of IP into a separate holding - Transfer of IP to an international holding (Cyprus / Switzerland / UAE) - Licensing of IP to regional operators in Georgia, Kazakhstan, the EU - Royalty income ($50–100M per year with 10+ regional operators)

  1. Years 5–6: Strategy selection depending on market conditions and Phase 2 progress;
  2. Year 7: Execution of the exit strategy (IPO or strategic sale);
  3. Year 8+: Reinvestment of part of the proceeds into new pilot cycles and regional rollout.

7.3 Exit valuations — McKinsey-revised (per Restatement 2026-05-11)

Scenario Source (E1 §7.1) Defensible base (McKinsey, Audit_6)
IPO Yerevan SE + cross-listing €500–800M €300–500M (given current Yerevan SE liquidity ≈$2M ADV and the real cross-listing-venue readiness)
Strategic acquisition €600M – €1B $200–500M (the real buyer pool for Armenian RWA fintech is limited; readiness of Coinbase/Ripple/Wise/Stripe to acquire something Armenian-rooted requires confirmation)
Spin-off IP royalties $50–100M/year with 10+ regional operators retained as a Phase 3+ target; before that — licence income $5–15M/year with 2–3 regional operators

Source of revaluation: Audit_6 (David Brennan, McKinsey Senior Partner). The aspirational source numbers are retained as a Bull case PWERM; the defensible base is used in external communications.


8. RESTATEMENT 2026-05-11 (PER INDEPENDENT MULTI-DISCIPLINARY AUDIT)

8.1 Source of corrections

The financial model has been independently re-reviewed by two independent experts: - Margaret Holloway, CFA/CBV/ASA — Big4 valuation partner (Hollister Capital Advisory LLP). Audit_3. - Dr. Aram Petrosyan, PhD Economics (Harvard), ex-IMF Mission Chief Armenia. Audit_2.

Additionally — strategic context: - David Brennan, MBA Wharton, Senior Partner McKinsey & Company. Audit_6.

8.2 Six structural Hollister corrections (Audit_3)

# Parameter Source Hollister-revised Justification
1 Royalty base for RfRM 2% × AUM 2% × Revenue Industry royalty is calculated on licence revenue, not AUM. Effect: IP portfolio drops from €12.5M to €5.0M Base.
2 PWERM probabilities Bear 35 / Base 40 / Bull 18 / Home Run 7 Bear 45 / Base 38 / Bull 13 / Home Run 4 A 7% Home Run is not empirically supported: of 8 diaspora bonds since 1951, only Israel reached Home Run over 75 years.
3 Reconciliation weights Income 50 / Market 25 / Cost 15 / IP 10 Income 30 / Market 25 / Cost 25 / IP 20 AICPA SSVS No. 1 for pre-MVP / pre-revenue: Cost approach should weigh 40–60%. Income cannot dominate without confirmed revenue.
4 EBITDA margin Y10 91% (€52M / €57M revenue) 25–40% Custody/issuance/trading benchmarks (BitGo, BNY Mellon, Anchorage): 25–40%. Y10 EBITDA compressed from €52M to €22–26M.
5 Industry β (relevered) 1.55 (D/E 30/70) 1.36 (D/E at operator level) The project debt sits at the “Noah’s Ark” Fund level, not at the CASP operator. Operator relevered β at D/E ~0/100 ≈ unlevered β.
6 Real Options value €5.69M (Black-Scholes call) €1.5–2.5M (post de-double-counting) Phase 2 growth is partly captured in the Gordon Growth TV of the main DCF; net marginal optionality is materially lower.

8.3 Three macro Petrosyan corrections (Audit_2)

# Parameter Source Petrosyan-revised Justification
1 Net yield of commercial real estate in Yerevan 5% (base) 3.5–4.0% net Real net yields after opex for stabilised assets in Yerevan; construction dry years further reduce effective yield.
2 AUM target Y10 €5 billion €800M–€1.5B No EM RWA platform (Centrifuge, Maple, Goldfinch) has reached €5B. €5B is 17–20% of Armenia’s current GDP — an unrealistic share of the national real-estate market.
3 Diaspora funnel Y1–Y3 €25–40M+/year €8–18M/year Applying first-decade adoption rates of Israel Bonds to the Armenian diaspora (7–8M vs 7.5M Jews in the US); the RU bloc (2.5M people) gives a max of $5–15M due to sanctions risk.

8.4 End defensible value range (post Restatement)

Value layer ECHELON Base (source) Hollister-revised Base Δ
IP portfolio €12.5M €5.0M −60%
Pre-money Enterprise Value of the JV €18.0M €13.0M −28%
60% Kagirov share (via Center Group Company) €7.78M €5.27M −32%
Maximum Defensible (P85) €34.0M €26.5M −22%

Under a combined stress test (CBA base rate 11% + AMD −20% + inflation 6% + recession), Pre-money EV compresses to €5–7M.

8.5 Stress-test scenarios (for Big4 / IMF / EBRD due diligence)

Scenario Trigger Junior IRR Senior IRR Budgetary guarantee activation
AMD −20% vs EUR Sharp AMD weakening −2% to +1% 5.5% (via guarantee) 8–12%
CBA base rate 11% Inflation shock Senior 15–20% discount to par Coupon load rises Unlikely
Nagorno-Karabakh conflict resumption Geopolitical shock 12–24 months freeze; sovereign rating downgrade −1/−2 notches Senior 20–30% discount 20–35%
Armenian partner bank default Concentration risk Full JV reorganisation Not covered by CCI Not activated (relates to collateral, not operations)
  1. Big4 financial review of the E1 model in Yerevan (KPMG / EY / Deloitte Armenia): ~€20–25k, 4–6 weeks. Aim — move the forecast from management estimate to third-party validated forecast.
  2. Re-statement of the ECHELON valuation report applying 6 Hollister corrections + 3 Petrosyan macro corrections. Keep both versions (ECHELON aspirational + defensible base) for different audiences.
  3. Capital IQ / Pitchbook Pro access for updating comparables and multiples to Q1-2026.
  4. Letter of Comfort from MoF RA + MoU with one of the Armenian banks (Ameriabank / Ardshinbank / Evocabank) — each document increases probability-weighted EV by 30–40% (see Audit_6 §11).

Rightsholder’s signature: _______________________ Kagirov A-Kh. A. (Aslan Kaa) Date:______ 2026


© Kagirov Abdul-Khakim Akhmadovich, 2026. Document NK-FIN-E1-001/2026. All rights reserved under the Universal Copyright Convention (Geneva, 1952) and the Berne Convention (1886). Reproduction and distribution are prohibited without written consent of the rightsholder.