Legal Disclosure

The San Francisco Exchange Company (SFX) Audit & Disclosure Statement

THE SAN FRANCISCO EXCHANGE COMPANY REPORT OF KEY OPERATING STATISTICS December 31, 2022 THE SAN FRANCISCO EXCHANGE COMPANY C O N T E N T S Page Report of Independent Accountants 1 Report of Key Operating Statistics 2 Notes to Report of Key Operating Statistics 3-4 REPORT OF INDEPENDENT ACCOUNTANTS Board of Directors The San Francisco Exchange Company San Francisco, California We have examined the key operating statistics of The San Francisco Exchange Company, as of and for the year ended December 31, 2022. The Company’s management is responsible for its key operating statistics and for maintaining a record of those operating activities. Our responsibility is to obtain reasonable assurance by evaluating the key operating statistics against the timeshare exchange regulations for the states of Florida and Hawaii, and by performing other procedures to obtain sufficient appropriate evidence to express an opinion that conveys the results of our evaluation based on our examination. We have presented the results of our evaluation in the accompanying report of key operating statistics. Our examination was conducted in accordance with the attestation standards for a direct examination engagement established by the American Institute of CPAs. Those standards require that we obtain reasonable assurance by evaluating the Company’s key operating statistics against the timeshare exchange regulations for the states of Florida and Hawaii, and by performing other procedures to obtain sufficient appropriate evidence to express an opinion that conveys the results of our evaluation of the Company’s key operating statistics during the year the year ended December 31, 2022. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement in the report of key operating statistics, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the report of key operating statistics of the San Francisco Exchange Company as of and for the year ended December 31, 2022, is fairly presented in accordance with the timeshare exchange regulations for the states of Florida and Hawaii, in all material respects. May 22, 2023 San Bernardino, California -1- KENNEDY & KENNEDY Certified Public Accountants Members of the American Institute of Certified Public Accountants and of the California Society of Certified Public Accountants 1700 North E Street, Suite 201 • San Bernardino, CA 92405 • (909) 886-5048 • (909) 882-3852 15476 West Sand Street • Victorville, CA 92392 • (760) 951-2570 THE SAN FRANCISCO EXCHANGE COMPANY REPORT OF KEY OPERATING STATISTICS December 31, 2022 The number of purchasers or owners currently enrolled and eligible to participate in the exchange program 329,086 The number of accommodations and facilities or properties that have current affiliation agreements with The San Francisco Exchange Co. None The percentage of exchanges properly applied for that were confirmed 86% The number of exchanges confirmed by the exchange program 11,913 The number of timeshare periods for which The San Francisco Exchange Company has an outstanding obligation to provide an exchange in the future 903 The above listed percentage of confirmed exchanges is a summary of the exchange requests entered with the exchange program between January 1, 2022 and December 31, 2022. This does not represent a purchaser's probability of being confirmed to any specific choice or range of choices, since availability at individual locations may vary. See Accompanying Notes to Report of Key Operating Statistics. NOTES TO REPORT OF KEY OPERATING STATISTICS December 31, 2022

NOTE 1 – DESCRIPTION OF COMPANY: The San Francisco Exchange Company (SFX) is a California corporation. SFX offers reciprocal exchange services for owners of resort timeshare or other vacation ownership interests throughout the world. SFX headquarters are located in Burlingame, California.

NOTE 2 – ENROLLMENT POLICY: Owners of any qualified timeshare interest receive complimentary Gold memberships in SFX, or they may choose Diamond membership which requires an annual fee.

NOTE 3 – PROPERLY APPLIED FOR EXCHANGE REQUEST: A properly applied for exchange request occurs when the requirements listed below have been satisfied. The exchange is not considered to be properly applied for as long as any of these criteria have not been met. An exchange request is received by SFX. The exchange request is from a member of SFX. The member must have a current membership in SFX and be in compliance with all terms and conditions governing SFX membership. The member must be current with all financial obligations (maintenance fees and assessments, special assessments, property taxes, note payments, etc.) to their home resort through the week being relinquished to SFX in conjunction with either an exchange request or the deposit of a week in SFX exchange system. The member must have a confirmed reservation for a specific interval at the home resort prior to requesting an exchange or depositing a week. A properly submitted request must have a choice of three alternative locations and travel dates.

NOTE 4 – ACCOMMODATIONS AND FACILITIES: Accommodations and facilities at the reporting date include exchange service organizations which SFX may use to complete an exchange for a member.

NOTE 5 – EXCHANGE FEES: SFX members are charged a fee for each exchange confirmed by the company. The fee for domestic or international exchanges is $209 for Gold members and $149 for Diamond members.

NOTE 6 – OUTSTANDING EXCHANGE OBLIGATION: Diamond members may deposit a timeshare period without requesting an exchange at the time of deposit. Gold members are required to deposit a timeshare period at the time they request an exchange. All members have 24 months from the date of the timeshare period deposit to complete the exchange. After the 24-month period, the member's request expires, and no exchange can then be completed.

NOTE 7 – UNCERTAINTIES: In 2022, domestic and international economies face uncertainty related to the impact of the COVID-19 virus. The Organization may be adversely affected by the economic results of this uncertainty. Management is currently evaluating these impacts and considering their effects on future operations.

NOTE 8 – SUBSEQUENT EVENTS: Management has evaluated subsequent events through May 22, 2023 the date when the Report of Key Operating Statistics was available for issuance.

Some Helpful Vacation Exchange Terminology…

Home Resort… Is the resort where the member owns their time. The member deposits their week from their home resort and requests an exchange to use another Member’s week while another guest will use the member's.

Deposit your week… To receive an exchange at another resort the member relinquish their occupancy rights to the week their own in a particular year to SFX, who will then assign their unit to another guest for their vacation. In return the member may request a week at another members resort. The member will have from the day we receive their deposit and up to two years past the check-in date of the week their deposited.

Place a request… Means the member is requesting SFX to search for a week at a different resort to where the member owns for a vacation exchange. We need to know several items including … Where the member would like to travel, when the member would like to travel and how many people in the party. All space is Subject to availability.

Search… This means what the member is requesting isn’t immediately available and we start a search to locate what the member is requesting for their exchange.

Match… A match means our computers have matched a week deposited to the member's vacation request criteria by dates, location etc.

Near match… Means we have located and offered the member a week that is close to what their requested, but not exact. It may be slightly different dates, and/or location, and/or unit size. In many instances Members accept near matches because they are great resorts in great locations and they can look forward to a vacation.

Guest name… is the name that will be on the confirmation. It may be the Member, or another party the member is sending as their Guest. The Member must inform us if another party will be using the exchange. If we are advised of their names at the time the request is placed, there is no additional charge. If the Member advises us after the week has been booked and a name change is needed, there will be an additional fee.