You are an analyst reviewing the financials of TechPulse Inc., a company targeted for acquisition in a private equity LBO transaction. After the initial review, you find:

• Current assets of $5 million, of which $1.5 million is inventory.
• Current liabilities of $4 million, of which $1 million is short-term bank overdraft.
• The private equity firm sets a net working capital target, excluding bank overdrafts and inventory, for the deals close at $1.5 million.

Considering the exclusions set by the private equity firm, how does TechPulses adjusted net working capital compare to the target?

• TechPulse's adjusted net working capital is above the target by $0.5 million.
• TechPulse's adjusted net working capital is below the target by $1 million.
• TechPulse's adjusted net working capital matches the target exactly.
• TechPulse's adjusted net working capital is above the target by $1 million.