Capture. Create. Share. Investor Presentation Confidential A Personal Online Knowledge Networking Service Capture. Create. Share. July 2011

Capture. Create. Share.

Investor Presentation

Confidential

Confidential

A Personal Online Knowledge Networking Service


July 2011


Table Of Contents

Stickiness Factor

Section

<ReadOz Business & Platform Overview

Need/Solution

Industry Overview

Go-to-Market Strategy

Pages

Investment Considerations

Management Team

Financial Overview

Conclusion

26

5

13

16

21

40

33

34

39

3

Investment Considerations 4

ReadOz350 W. Ontario St. #4W Chicago, IL 60654Phone: +1 312 929 2500Fax: +1 312 846 6186Email: [email protected]


Key Investment Considerations

High Value-Add Personal Online Knowledge Networking Service

Well-Established Growth Markets

Significant Revenue Growth Opportunities

Proven & Unique Management Team

Established Global Customer Base

Successful Launch of Version 1.0

Customer Data Analytics Capabilities

Effective Pivot Strategy Formula

Deep Academic-Based Advisory Board

Unrealized Additional Opportunities

4


Version 1.0 – Established in Market Place (Live)

ReadOz – iPad Version 1.0ReadOz – Desktop Version 1.0

<Get Desktop Screen Shot>

5


ReadOz Platform – Current Global footprint

Text from Kal, use pictures from Google Analytics

497,788 visits came from 182 countries/territories – March 1st to May 14th 2011Source: Google Analytics 6


ReadOz - Quick Facts (Versions 1.0)

Already Reader Based (Current Unique readers per month approximately 120,000) 700 Publications Registered

Global User (Reader) Base

Proven & Motivated Management Team

Current Monthly Average Revenue of $15K

Version 2.0 – Ready for Launch

Cloud-Based Internet, Smart Phone, Tablet Application

60,000 Average Page Views per Day


Approximately 4,000 Unique Visitors Per Day

7


ReadOz Pivot - Future Vision

OnlineDigital

Publishing Platform

Personal Online

Knowledge Networking

Service2007 – 2011

Version 1.0

Aug 2011 & Beyond

Version 2.0

Pivot is built off the ReadOz Access to Knowledge Foundation!

Publisher Generated Content

User Generated

Content

Reader Centric

8


ReadOz Vision, Mission & Value Proposition

Work Smarter – Do More!

Vision Statement

(What)

Mission Statement

(How)

Value Proposition

(Why)

To make digital information more useful and accessible for users by providing a personal online knowledge networking service where information can be captured, shared, and reused.

To compile the world’s publicly available knowledge for efficient personal use.

Knowledge (Information) Workers/Users, Publishers, & Advertisers

Audience(Who)

9


ReadOz - Business Overview

ReadOz.com offers an online knowledge networking and management service and tools that address specific needs of user (readers), publishers, and advertisers.

What WeDo:

Key Pains:

Current State:

Information Related Problems: Can’t EASILY Find, Access, Share, Update, Track, Improve, Store personally relevant information from the internet.

Version 1.0: Originally launched in June 2007 as a digital publishing platform with currently over 700 publications established, 3.9K unique daily visitors, and 60K average page views per day. - More than 50% unique visits every month!

Top Countries utilizing ReadOz: U.S. Brazil, Russia, France, Greece, Italy, United Kingdom, Canada, Germany, Ukraine

10


ReadOz Identified - Pain in the Industry

Source: LexusNexus 2010 International Work Productivity Study

“I know I have a document on that … somewhere. Is there a newer version?” “I have to dig through 54 different places to put together the answer.” “The department head sent an e-mail on that? Really? My inbox is out of control.”

“Nine out of ten U.S. professionals say they need to search for old e-mail or documents at least once a week. Not being able to access the right information at the right time is a huge waste of time.”

“On average, 59% of professionals surveyed say that the amount of information they process at work has significantly increased since the economic downturn.”

“On average, workers report spending slightly more than half of the work day receiving and managing information, rather than actually using information to do their jobs. Plus professionals estimated that between one third and one half of all information receive daily is not important for getting their jobs done.”

Note: The LexisNexis 2010 International Workplace Productivity Study covered 1,700 white-collar workers in five countries—the United States, China, South Africa, United Kingdom and Australia. Professionals in every nation said they were struggling to cope and looking to their employers for customized solutions. 1

1


ReadOz Evolution – Formulation of Solution

Google

Facebook

ReadOz

Organizing

Connecting

Compiling

Theme Company SolutionYear

1998

2004

2011

“The Tool”

Search Engine

Social Network

Personal Knowledge Network

“Find Information”

“Connect to People with Information”

“Access & Utilization of RELEVANT & USEFUL Information!”

Source: LexusNexus 2010 International Work Productivity Study

“Information overload is now in overdrive!”

Find

Connect

Compile

12


Current Market Problem – Addressable Needs

Readoz Problem/ Solution Matrix

Problem Problem Description Solution Component Don’t have time to look for it Capture Tool Can’t remember it Data synch Tool Read it online, but didn’t save it Digital Knowledge Library Too much information to review from search engine results E- Reader Search Can’t locate the exact document I need from a website Can’t locate attachment to email Thought it, heard it, discussed it, but didn’t capture it Not available through search engines Readoz.com Knowledge Exchange Too much irrelevant information in search engine results Too heavy to send via email Knowledge Sharing Tool Can’t send just the relevant part of info E- Reader Cut and Send Can’t get latest version of doc Data Synch Tool

Have to take the time to see if there is a more recent version of doc

Auto Update Tool

Can’t send the latest doc at each update, have to wait for reader to check

Can’t tell who is reading my doc, why, what parts and whether they acted

Hosting/ Hyperlinking Publisher Dashboard/ User Profile E-Reader Database & Reporting Tool

Can’t measure if the call to action or goal of the doc has been accomplished

Hosing/ Hyperlinking

Don’t have access to “directly observed data,”only through surveys which is before or after the fact

Publisher Dashboard/ User Profile

E-Reader Database & Reporting Tool

Too heavy for hard drive

To difficult to keep and transfer from computer to computer

Storage costs money

Can’t Find

Can’t Access

Can’t Share

Can’t Store

Can’t Update

Can’t Track

Can’t Improve

ReadOzSolution

Next Slide

13


Market Solution – A Personal Online Knowledge Networking Service

Readoz Problem/ Solution Matrix

Problem Problem Description Solution Component Don’t have time to look for it Capture Tool Can’t remember it Data synch Tool Read it online, but didn’t save it Digital Knowledge Library Too much information to review from search engine results E- Reader Search Can’t locate the exact document I need from a website Can’t locate attachment to email Thought it, heard it, discussed it, but didn’t capture it Not available through search engines Readoz.com Knowledge Exchange Too much irrelevant information in search engine results Too heavy to send via email Knowledge Sharing Tool Can’t send just the relevant part of info E- Reader Cut and Send Can’t get latest version of doc Data Synch Tool

Have to take the time to see if there is a more recent version of doc

Auto Update Tool

Can’t send the latest doc at each update, have to wait for reader to check

Can’t tell who is reading my doc, why, what parts and whether they acted

Hosting/ Hyperlinking Publisher Dashboard/ User Profile E-Reader Database & Reporting Tool

Can’t measure if the call to action or goal of the doc has been accomplished

Hosing/ Hyperlinking

Don’t have access to “directly observed data,”only through surveys which is before or after the fact

Publisher Dashboard/ User Profile

E-Reader Database & Reporting Tool

Too heavy for hard drive Free Digital Knowledge Library with Storage

To difficult to keep and transfer from computer to computer

Storage costs money

Can’t Find

Can’t Access

Can’t Share

Can’t Store

Can’t Update

Can’t Track

Can’t Improve

14


ReadOz Version 2.0 – Service Components

Each Component adds up to provide a COMPREHENSIVE solution!

15

ReadOZ.com Service Components

Description

Digital Publishing Application

This self-service function allows users to easily upload publications (articles, trade journals, PDFs) to the ReadOz knowledge management platform for viewing.

Digital Reader and Database

This application allows for users to browse and read all uploaded publications to the ReadOz platform. The Reader function allows a number of high-value add components for the user.

Digital Information Capture Application

A desktop application that allows users to quickly and effectively capture relevant and useful information (knowledge artifacts) from websites and email boxes for storage in personal knowledge libraries for future use; also allows users to synchronize information on their computers with what is stored on their personal digital library.

Personal & Organizational Knowledge Library & Dashboard

A searchable library of knowledge artifacts stored and labeled by users for quick and easy future use; can view and share privately, selectively, publicly - free and for sale.

ReadOz Knowledge Portal

An online collective public library of all uploaded documents from each person’s personal ReadOz library. These documents are available for public viewing by all ReadOz users.


Addressable Market – How BIG is the Pain!

Internet Savvy Student

14M – U.S. UniversityLevel Students

Source: WorldBank

Career-OrientedKnowledge Worker

36 – 80M in U.S.Source: Dept. of Labor

Avid Online Periodic Subscriber

56M U.S. Daily NewspaperSubscriptions

Source: ReadOz Management

North America Magazine Publishers

20,628Source: MediaIDEAS

16


Industry & Markets – Market Growth Opportunities

Periodical Industry – Print to Digital Content Transition 2007H – 2020P

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(S -

Bill

ions

)

Print Digital Other

U.S. eReader Content Market – 2010 – 2020P

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

($-B

illio

ns)

Book content Magazine content Newspaper content Other paid content

Magazine Content Sold on/for Tablets 2010 – 2020P Worldwide

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

($-B

illio

ns)

US Global

Online Advertising 2000A – 2020P

$8 $7 $6 $7 $10 $13$17

$21 $23 $23 $26 $30$34

$38$44

$50$57

$65

$74

$84

$95

$-

$20

$40

$60

$80

$100

$120

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Inte

rnet

Adv

ertis

ing

- ($-

billi

ons)

CAGR – 15%

17


Market Competition

High Level Features Overview

Read Publish Advertise Search Share Track Write Store Capture Update

Competitor Analysis

Current competition does not offer COMPREHENSIVE solution! 18


Direct & Indirect Competitors – McKinsey 9-Box Matrix

Low Medium High

Ability to Compete

Ind

ust

ry

Att

racti

ven

ess

Med

ium

Low

Hig

h Opportunityto jumpcompetition!

19


Sustainable Competitive Advantage vs. Competition

Proprietary Algorithms – Top features include: Capture & Auto Update Functions

ReadOz Brand – Read + Oz equals the Land of Oz “Where anything is possible!”

Global Platform – Universal Application (Multi-lingua capabilities)

Comprehensive Reader + User Publisher Scalable Platform + Self-Service Advertising Upload = All-in-One Solution

Underlying User (Reader) Database – Publisher Portal Data Analytics

Appreciating Marginal Value – Each Document added provides additional support to ReadOz Value Proposition 2

0


High-Level Milestones Overview

One Million Users – Month 15

Two Million Users – Month 20

Three Million Users – Month 22

Four Million Users – Month 24

Sales & Marketing

One Million in Revenue – Year 2 - Month 6

Cash flow Positive – 1Q - Year 3

Profitable – Month 1Q - Year 3

Operations

Hiring of first sales Person – Month 1 – Year 1

Hiring of second sales Person – Month 7 – Year 2

Hiring of Ad Sales person – Month 7 – Year 1

Hiring of Ad agency – Month 6 – Year 1

Pilot Launch – Month 6 – Year 1

Search for Seasoned CEO – Month 3 - Year 1

Hiring of CEO – Month 6 to 9 – Year 1

User Acquisition

Financials

21

Note: Management conservative estimates

Note: Management conservative estimates


Strategic Plan - Milestones – Year 1 & 2

22

ReadOz Go-to-Market Strategy

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Survey (User perspective)Secure Capital (Seed A)

Product

Version 2 - Completion V2 completion start and finish will be determined by completion of capital raiseServer to Cloud - Seamless IntegrationPilot LaunchVersion 2 - Soft LaunchVersion 2 - Hard LunchVersion 3 TBD

First Markets

Education (university level)Education ( high school level)SMB - Knowledge Worker

User Milestones

One Million UsersTwo Million UsersThree Million UsersFour Million Users

ReadOz Go-to-Market Strategy

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 Month 25 Month 26

Survey (User perspective)Secure Capital (Seed A)

Product

Version 2 - CompletionServer to Cloud - Seamless IntegrationPilot LaunchVersion 2 - Soft LaunchVersion 2 - Hard LunchVersion 3

First Markets

Education (university level)Education ( high school level)SMB - Knowledge Worker

User Milestones

One Million UsersTwo Million UsersThree Million UsersFour Million Users


ReadOz Multi-Level Value Proposition

Registration Upload/ Store Publish Tag/ Store Share Retrieve Monitor Refer Communities

User (Reader)

Registration – Users register for the free ReadOz account entitling them access to the free personal knowledge networking & management service.

Upload – users upload previously identified or new knowledge artifacts in various forms and formats (i.e. magazines, documents, notes, links) to their personal knowledge library by capturing documents directly from websites, as well as email inboxes.

Tag / Store – Users tag knowledge artifacts using their own taxonomy and meaningful descriptions to help trigger their memory in the future.

Share – Users can share and comment on knowledge artifacts both publicly and privately on the knowledge portal, as well as keep them hidden.

Retrieve – When users need to retrieve their knowledge artifacts, they can easily locate them by using the inbuilt key word search engine utilizing their own taxonomy and descriptions in mind as well as browsing their personal knowledge library

Refer – Users can easily share knowledge artifacts directly from the digital reader and encourage others to use ReadOz

Communities – Users can utilize ReadOz to share and comment on knowledge artifacts with entire communities within their online social network.

Publisher

Registration – Publishers register for the ReadOz publishing account. Price will be determined before launch.

Upload / Store – users upload publications to their organizational knowledge library manually or using an auto upload tool.

Publish – Publishers can digitally publish or convert the publication into ReadOz digital reader format

Tag / Store – Publishers tag knowledge artifacts using key words readers are likely to use or some other nomenclature

Share – Publishers can share the publication and make it available for free or for a price

Monitor – Publishers can monitor reader behavior to improve its content and marketing by reviewing standard or paid reporting

Refer – Publishers can easily share knowledge artifacts directly from the digital reader and encourage others to use ReadOz

Communities – Publishers can utilize ReadOz to share and comment on knowledge artifacts with entire communities within their online social network.

Advertiser

Self Service Ad Platform – Advertisers and businesses can use the ReadOz self service ad platform to create and display advertisements

Register Upload/

Store Publish

Tag/Store

Share Retrieve Monitor Refer FinishStart

23


User Adoption Lifecycle – Proactive/Referrals/Incentives

Get UsersTo

Website

Registration&

Download

ContinuedUsage

Step 1 Step 2 Step 3

1. Publishers signed up

2.. Strategic Partners

(Education Networks)

(web properties)3. PR – Publicity (Article)

4. Social Media (FaceBook, twitter, podcasts)

5. Event marketing, pod casts (campus presentation)

Note: Avoveformentioend sales & marketing approaches are first half-year pilot phase.

6. Word of mouth referrals

1. Direct Messaging to target audience

2.. Ease of navigation – limited no. of clicks

3. Social Email & referral campaigns

1. Incentive programs

2.. Critical information downloads

4. Incentive programs

3. Sharing of information between users

4. Special publication push to users

5. Social Email & & referral programs

24


ReadOz Key Features – Version 2

Read Publish

CaptureShare Track

store Update

SearchRead Publish Search

share TrackCapture

Write Store Update

Access to READ public and private info. on network

eBooks, PDFs, etc.

Ability to PUBLISH public information and private group documents for review by other users.

Ability to SHARE info between users and groups

Ability to TRACK uploaded information and share information to other users.

Ability to SEARCH network by key words to find info in public and private ReadOz networks

Ability to easily CAPTURE info. From web and publish in ReadOz Network for viewing

Highlight documents, WRITE notes on documents for other users to review.

Easily STORE info on network with limited steps.

Automatic UPDATE feature provides most recent edition of document.

Track

25


User “Stickiness” Factor

Key Event:A secondary critical (make or break) event in user adoption after registration and downloading is the usage of the data CAPTURE tool. The user’s ability to see the strong value of this tool is essential!

ReadOz Solution: Provide short demo to show ease of data capture..

Registration

Step 1

Download

Step 2

DataCapture

Step 3

Key Event:An initial critical (make or break) event in user adoption is getting the user to register on the ReadOz website.

ReadOz Solution:Incentize with special offers including free unlimited data storage, email accounts, etc.

Key Event:The downloading of the ReadOz platform is essential to user utilization of all ReadOz features and tools.

ReadOz Solution: Prompt user to download immediately after registration and offer incentives to go through steps.

26


“Stickiness” Factor Summary

Word of Mouth is driven by the need to share.

Free unlimited storage further enhances the chances of repeated sharing with new users unlike the limitation of capped free storage by competitors (i.e DropBox).

Capture and data sync triggers page views

Sharing fuels word of mouth or referrals

Synch to email box provides connector which allows for email updates and incentives to be directed towards user. Proven Semi-Sticky already, just needs steroids (capital) to push Company towards success!

27


ReadOz Version 2.0 wire-Frame Screen Shot

28

VerticalAdvertising

Space

Document Search Function

DocumentsCreated by Author for

Sale

Document Recent - ViewingHistory

InterestCategories

High-LevelNavigation

Bar

MultipleKnowledgeToolbar &Features


Key Metrics – Desire to Understand End User/Service/Info.

Viral Metrics

Word of Mouth metrics

Cost Metrics

Revenue metrics (monetization

Traffic

Number of documents per user

Number of registered users

Number of data capture downloads?

Number of data syncs

Number of document captures

Number first deposits

Number of new registered users

Number of visits

Countries

Cost per user acquired

Cost per user serviced

Revenue per user

Viral coefficient

Number of published documents

Number of public documents

Number of private documents

Number of pages viewed

Number of visits per month

Length of visits

Number of new registrations from each source

Number of downloads from each source

Number of searches

Type of searches

Number of subscriptions purchased

Dollar amount of subscriptions

Number of ad spaces

Number ad spaces by type (premium and non-premium)

Remnant inventory Number of ad spaces sold

Type of user profiles

Number of sharing events

Number of new sharing events

Sources of traffic

Number of visitors from each source

Actual CPM

Number of deposits, data syncs, retrievals, etc.

29


Operating Plan (Human Capital Requirements)

OperationsSales & Marketing

Note: Cost of hire will be weighed against revenue generation. Hires will be made at key points of necessity.

In-house sales person(s) will be hired in Q1 of Year 1 and Q1 of Year 2 at a salary of $100K and potential bonus up to 30%

Advertising Sales Person will be hired in Q3 of Year 1 at a salary of $60K.

In-house PR (publicity) person will be hired Q3 of Year 1 at a salary of $70K

In-house Marketing Director will be hired Q1 if Year 1 at a salary of $90K

In-House Director of Social Media will be hired Q1 of Year 1 at a salary of $50-70K

Current people Kenneth ($50K/Year)

Two other people ($40K) a year

Outsourced – Ad Networks Outsourced – PR agency/marketing consulting

($10K/Month) - Hired Q2 of Year 1

Customer Service Person(s)

Quantity: Salary & Commission: Hire Date:

Two$30Kn.a.First Sales Person – Q1 of 1Second Person – Q1 of Y2

Operations Peron


One$55Kn.a.First Person – Q1 of Y2

CEO (Industry Veteran


One$200K30% of SalaryFirst Person – Q4 of Y1

30


User Acquisition – Year 1

ChannelCurrent User

BaseConversion

Rate New Base Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24Version I Version II

Pilot Phase

I. Current ReadOz Users 120,000 25% 30,000 20,000 10,000 - - - II. strategic Partners (Columbia Network) 150,000 27% 40,500 25,000 10,000 5,000 Pilot Phase - New User Base 70,500 Remaining to-go 29,500 III. To get to 100K - PR/Publicity/Social Media/Blog 29,500 - - - 15,000 7,500 7,500 Goal before Incentive Programs 100,000 100,000

Pilot Phase Monthly Users 20,000 10,000 25,000 10,000 20,000 7,500 7,500 - - - - - Pilot Phase Cumulative Users 20,000 30,000 55,000 65,000 85,000 92,500 100,000 100,000 100,000 100,000 100,000 100,000

Phase I - First Generation of Users Email Marketing (One email per month, 12 per year) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Monthly Sharing Events 20,000 30,000 55,000 65,000 85,000 92,500 100,000 109,500 131,400 157,680 189,216 227,059 272,471 326,965 392,358 470,830 564,996 677,995 813,594 976,313 1,171,576 1,405,891 1,687,069 2,024,483 Retention Rate 20% 4,000 6,000 11,000 13,000 17,000 18,500 20,000 21,900 26,280 31,536 37,843 45,412 54,494 65,393 78,472 94,166 112,999 135,599 162,719 195,263 234,315 281,178 337,414 404,897 Cumulative M-O-M Registrations 24,000 30,000 41,000 54,000 71,000 89,500 109,500 131,400 157,680 189,216 227,059 272,471 326,965 392,358 470,830 564,996 677,995 813,594 976,313 1,171,576 1,405,891 1,687,069 2,024,483 2,429,379

Phase II - Second Generation of Users

Email Marketing (One email per month, 12 per year) Monthly Sharing Events - - 41,000 54,000 71,000 89,500 109,500 73,000 87,600 105,120 126,144 151,373 181,647 217,977 261,572 313,887 376,664 451,997 542,396 650,875 781,050 937,260 1,124,713 1,349,655 Retention Rate 20% - - 8,200 10,800 14,200 17,900 21,900 14,600 17,520 21,024 25,229 30,275 36,329 43,595 52,314 62,777 75,333 90,399 108,479 130,175 156,210 187,452 224,943 269,931 Cumulative M-O-M Registrations - - 8,200 19,000 33,200 51,100 73,000 87,600 105,120 126,144 151,373 181,647 217,977 261,572 313,887 376,664 451,997 542,396 650,875 781,050 937,260 1,124,713 1,349,655 1,619,586

Phase III - Third Generation of Users

Email Marketing (One email per month, 12 per year) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Monthly Sharing Events - - - - 33,200 51,100 73,000 31,460 37,752 45,302 54,363 65,235 78,283 93,939 112,727 135,272 162,327 194,792 233,750 280,501 336,601 403,921 484,705 581,646 Retention Rate 20% - - - - 6,640 10,220 14,600 6,292 7,550 9,060 10,873 13,047 15,657 18,788 22,545 27,054 32,465 38,958 46,750 56,100 67,320 80,784 96,941 116,329 Cumulative M-O-M Registrations - - - - 6,640 16,860 31,460 37,752 45,302 54,363 65,235 78,283 93,939 112,727 135,272 162,327 194,792 233,750 280,501 336,601 403,921 484,705 581,646 697,975

Phase IV - Fourth Generation of Users

Email Marketing (One email per month, 12 per year) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Monthly Sharing Events - - - - - - 31,460 6,292 7,550 9,060 10,873 13,047 15,657 18,788 22,545 27,054 32,465 38,958 46,750 56,100 67,320 80,784 96,941 116,329 Retention Rate 20% - - - - - - 6,292 1,258 1,510 1,812 2,175 2,609 3,131 3,758 4,509 5,411 6,493 7,792 9,350 11,220 13,464 16,157 19,388 23,266 Cumulative M-O-M Registrations - - - - - - 6,292 7,550 9,060 10,873 13,047 15,657 18,788 22,545 27,054 32,465 38,958 46,750 56,100 67,320 80,784 96,941 116,329 139,595


Email Marketing (One email per month, 12 per year) Monthly Sharing Events - - - - - - - - - 10,873 2,175 2,609 3,131 3,758 4,509 5,411 6,493 7,792 9,350 11,220 13,464 16,157 19,388 23,266 Retention Rate 20% - - - - - - - - - 2,175 435 522 626 752 902 1,082 1,299 1,558 1,870 2,244 2,693 3,231 3,878 4,653 Cumulative M-O-M Registrations - - - - - - - - - 2,175 2,609 3,131 3,758 4,509 5,411 6,493 7,792 9,350 11,220 13,464 16,157 19,388 23,266 27,919

Monthly New User Totals 44,000 60,000 104,200 138,000 195,840 249,960 320,252 364,302 417,163 482,770 559,324 651,189 661,427 793,712 952,454 1,142,945 1,371,534 1,645,841 1,975,009 2,370,011 2,844,013 3,412,816 4,095,379 4,914,454 Cumulative Monthly Totals 104,000 164,200 242,200 333,840 445,800 570,212 684,554 781,465 899,933 1,042,094 1,210,513 1,312,615 1,455,138 1,746,166 2,095,399 2,514,479 3,017,375 3,620,850 4,345,020 5,214,024 6,256,828 7,508,194 9,009,833

New Users Per Day 121 164 285 378 537 685 877 998 1,143 1,323 1,532 1,784 1,812 2,175 2,609 3,131 3,758 4,509 5,411 6,493 7,792 9,350 11,220 13,464 New Users per Month 3,667 5,000 8,683 11,500 16,320 20,830 26,688 30,359 34,764 40,231 46,610 54,266 55,119 66,143 79,371 95,245 114,295 137,153 164,584 197,501 237,001 284,401 341,282 409,538

31


User Acquisition – Year 2

ChannelCurrent User

BaseConversion

Rate New Base Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24Version I Version II

Pilot Phase














Channel New Base Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24Version I Version II

Pilot Phase














32


Executive Management TeamAlexander Shchekin Founder and CEO

Alex Shchekin serves as Manager and Chief Strategy Officer of the Company. Additionally, Alex is the president and owner of Intergam Technologies Corporation. Mr. Shchekin has a degree in physics, with a major in aerodynamics from Moscow Technical Institute with advanced degree work at Stanford and Oxford Universities. Within the computer technology area, he was an MSS and Oracle Certified professional. During the 1990’s Alex worked with Larry Ellison at Oracle as Senior Vice President in the area of software architecture and is a recognized expert in the field. Later, he took his Oracle expertise into the business consulting community with Arthur Anderson where he led numerous advanced Oracle deployments for Aon, First Chicago and other major financial institutions. With the demise of Anderson, Mr. Shchekin continued to work for these major clients under his own consultancy, leading to the initial work for his new company, Intergam Technologies. His work for a major advertising agency led the firm to develop intellectual property serving as the basis for conducting rapid deployment marketing research studies, which are an important source of current revenue for Intergam Technologies. The basis of this rapid deployment process on a cost effective basis can be found in his development of a programming and services office in Moscow, Russia. The efficiencies of this work will be used to make ReadOz similarly cost effective and successful. Mr. Shchekin resides in the Northern Suburbs of Chicago with his family.

Kal Patel Chief Knowledge Officer and Co-Founder

Mr. Patel has over twenty years of domestic and global support services experience, eight of which are in consulting/management/executive roles in the BPO/KPO/LPO industry serving enterprise and SMB customers including banks, financial services companies, law firms and more. With a “hands on” background in product development, client and business development, solution development, transition/migration and service delivery, Kal has a track record of success across business functions in early stage and growth stage and mature service companies. He has held increasing levels of responsibility as a senior industry consultant and subject matter expert; business process operator, manager, owner and innovator; entrepreneur and senior executive. With emphasis on knowledge, legal and financial outsourcing, Kal is presently with Quatrro BPO where he is responsible for growth stage development activities in new markets across various industries and functions.

Prior to his focus on outsourcing/offshoring, Kal served in a variety of capacities within the financial and legal support services industries. His financial support services experience includes serving at various US captive contact and processing centers for GE Capital, Trans Union, Household International and Harris Bankcard. His legal operations and support services experience includes law firms and corporations such as Seyfarth Shaw; ISPAT Inland Steel Corporate Law Department; Kusper & Raucci; and Katz, Friedman, Eagle, Eisenstein & Johnson. Kal has also served as a Law Clerk to Chief Justice Andrew Raucci of the Illinois Court of Claims and the DuPage County States Attorney.

Kal has been integral in developing the operational roadmap for ReadOz. This includes developing overall strategic direction and necessary elements to provide incremental and overall value to ReadOz.

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Financial Information – Revenue Drivers

ReadOz Ad Placement Revenue

(Initial Primary)

Publisher Revenue(Opportunity to

Turnaround – PotentiallyEstablish as Primary

Revenue Stream)

Subscription Revenue(Secondary Primary –

Opportunity Once User BaseIs Established)

Search Revenue& Data Reports(Opportunity Once

User Base is Established)

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Financial Information - Snapshot

Highlights: The following will highlight key aspects of the ReadOz business model.

Highlights:

Multiple revenue streams Established

Multi-Level Advertising Revenue Platform

Subscription Revenue Opportunity

Publisher Revenue Opportunity

Costs Scale to Size of Growth

First platform with self-publishing application

Multi-Market Opportunities.

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Summary Financial Projections

Total Users 684,554 4,345,020 11,413,387 14,474,934 16,472,210 Advertising Monthly Revenue 55,792$ 1,346,972$ 11,145,068$ 19,245,933$ 27,870,210$ Readoz Premium Service Digital Publishing/ Hosting 174,915 312,324 524,438 785,425 1,048,012 Readoz Publication Subscription Revenue Share 63,588 1,201,451 8,284,173 19,507,606 37,431,268 Key Word Searches - Advertising 2,790 134,697 1,671,760 4,811,483 11,148,084 Data Report Revenue - 222,308 480,476 822,725 1,580,854

Total Revenues 297,085$ 3,217,753$ 22,105,915$ 45,173,171$ 79,078,427$ Total Direct Cost 806,273 3,725,336 3,685,336 13,821,307 17,735,281

Gross profit (509,188)$ (507,584)$ 18,420,579$ 31,351,864$ 61,343,146$ Gross Profit Margin (%) -171% -16% 83% 69% 78%Total Other Expenses 1,194,363 2,303,694 3,284,349 4,206,982 5,156,055 EBITDA (1,703,551)$ (2,811,277)$ 15,136,230$ 27,144,882$ 56,187,091$

EBITDA Margin (%) -573% -87% 68% 60% 71%Interest - - - - - Depreciation - 1,000 4,000 5,000 8,000

Net Income (1,703,551)$ (2,812,277)$ 10,906,902$ 16,338,209$ 33,819,813$ Net profit Margin (%) -573% -87% 49% 36% 43%

Year 5Year 1 Year 2 Year 3 Year 4

EBITDA, Net Income, & Net Profit (%)

$(10)

$-

$10

$20

$30

$40

$50

$60

Year 1 Year 2 Year 3 Year 4 Year 5

Millions

-700%

-600%

-500%

-400%

-300%

-200%

-100%

0%

100%

EBITDA Net Income Net profit Margin (%)


Financial Information – MD&A (Revenue Drivers)

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Primary Advertising Revenue DriverReadOz business model as an on-line knowledge networking service will primarily draw its revenue from clicks-per-million (“CPM”) advertising. As described in detail in the ReadOz Financial Model assumptions tab (See Business Plan), displaying click per million based adverts on the website is considered as effective way to monetize websites with existing and growing traffic. While the CPM rates paid out by most advertising networks range from less than $1 per CPM to $20 CPM on such popular sites as Amazon or Facebook, CPM based advertising incomes are a great fit for websites such as ReadOz that sell free and premium information and attract large amounts of organic and network traffic. ReadOz expects to generate low CPM rates initially, but as public and private content and advertising relationships continue to grow on the site, Management expects CPM rates to increase.

As outlined in the ReadOz financial package, while ReadOz grows its user base, the CPM rates will increase based on growth and demand by advertisers to place ads. ReadOz has developed a platform that allows for numerous layers and real estate for ad placement.

Secondary ReadOz Premium Service Digital Publishing/HostingA secondary revenue stream will be driven by publication hosting. At current ReadOz currently hosts approximately 700 publications. This is expected to grow to 2400 by the end of Year 1. This constant average growth rate (“CAGR”) is approximately 17% month-over-month. ReadOz Management expects to initially be able to charge 10% of the publishers $299 a month for hosting. This is expected to grow to 50% of all publications host by ReadOz by Year 5. This represents 2,400; 3,842; 6,152, 8,771; and 11,124 for years Year 1 through Years 5 respectively.

Secondary ReadOz Publication Subscription Revenue ShareAs ReadOz continues to grow and attract the attention of high volume publications, consumers will demand to have access to particular newspapers, magazines, and trade journals, ReadOz Management believes this will all the company to be able to charge certain readers a subscription for the publication. Based on initial assumptions, ReadOz will initiate a 70/30 revenue split with the publisher. Based on average yearly subscriptions rates, at a $12.00 yearly subscription rate, ReadOz expect this to add as another secondary revenue drive.

Secondary Key Word Search Advertising Additional advertising revenue will be generated by Key Word Search, based on ReadOz Management assumptions; Year 1 of CPM Advertising revenue assumptions will generate an additional 10% of revenue for Key Word Search Advertising. This is expected to generate additional revenue in Years 3 trough 5.

Secondary Revenues from Data ReportsFinally, internal data analytics will provide key user and market data which can be utilized by a number of third parties for a better understanding of the overall market. ReadOz plans to capture these metrics and provide as an additional revenue stream.

Also – well-establishedIndustry Board of Advisors


Financial Information – Forecast Risks & Opportunities

ReadOz does not have" stickiness” factor expected from user-base.

Funding will not provide long-enough runway to gain user base traction.

Wrong-timing in market place for Personal Knowledge Networking Service.

Turnaround of original publishing strategy – Version 1.0

Stabilization of publishing/subscription based pricing structure.

Develop strategic partnerships with academic institutions to establish ReadOz as ideal personal knowledge networking service.

Risks Opportunities

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More-to-Explore More-to-Explore

Risks Opportunities


Conclusion

ReadOz is positioned to provide a Comprehensive Personal Online Knowledge Networking Service.

Company is currently seeking $5M in Round A capital funding (phased out based on user acquisition).

Management looks to partner with a institutional financial investor that not only provide the required capital, but operational expertise that allows for company success in an efficient time frame.

Based on assumptions laid out in presentation, ReadOz Management the company’s pivot to allow for success within a 18 – 24 time frame.

Initial success will be the growth of current user base and the shift from publisher driven content to user drive content which is utilized in a number of ways.

ReadOz is positioned to provide a comprehensive online personal knowledge networking service. The multi-industry platform allows knowledge-focused workers CAPTURE, CREATE, & SHARE information more efficiently.

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Key Investment Considerations

High Value-Add Personal Online Knowledge Networking Service

Well-Established Growth Markets

Significant Revenue Growth Opportunities

Proven & Unique Management Team

Established Global Customer Base


Customer Data Analytics Capabilities

Effective Pivot Strategy Formula

Deep Academic-Based Advisory Board

Unrealized Additional Opportunities

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Investor Presentation

Confidential

Confidential

A personal Online Knowledge Networking Service


ReadOz350 W. Ontario St. #4W

Chicago, IL 60654

Phone: +1 312 929 2500Fax: +1 312 846 6186

Email: [email protected]