Intelligent Fund Management “Interim Progress Report” with Ed Downs, CEO Nirvana Systems, Inc.

August 30, 2016

Agenda

Topics:

• Focus on the G.A.

• The Importance of MPT

• First Web Version

• Interactive Brokers

• Web Marketing

• Schedule

In this Report, we will discuss developments and the deployment of the OmniFunds product & marketing.

“MPT Lab” Web Application

Focus on the Genetic Algorithm

The G.A. Opportunity

In preparation for BASH 2016, we were working on the Genetic Algorithm. We then realized it would provide the best selection method for ETFs. Benefits of using the G.A.:

• Industry Focus is on A.I.

• Higher Valuation

• Difficult to Replicate

• Primary Up-Sell ($) from Low Cost Subscriptions

BASH 2016 Presentation

G.A. Enhancements

G.A. Improvements in 2016:

• Boolean Inputs BASH 2016

• G.A. Indicator (Ranking & Filtering) BASH 2016

• Incremental Knowledge Base Training* Completed

• Uniqueness Measurement* Completed

• Required Inputs (Market States)* Completed

• Automatic Rule Validation* Pending

• Automatic Pruning* Pending

* These enhancements were designed specifically to enable our Server-based Genetic Algorithm process, benefitting OmniFunds.

Performance Improvements

GA Funds Strategy was demonstrated at BASH 2016, showing out of sample accuracy of 83% and 3% Profit per Trade. The Profile used was based on Exchange Traded Funds.

BASH 2016 Presentation

The Importance of MPT

Industry Focus

Virtually all Robo Advisors, including the new ones at Schwab, E*Trade, and Fidelity are based on Modern Portfolio Theory.

Why is MPT used?

MPT is SIMPLY an ALLOCATION METHOD that does not take into account trend or market direction.

Even so, MPT is widely accepted as the standard way to invest....

The Opportunity

Market States ETF Selection Allocation

Modern Portfolio Theory

ETFs in Trend or Positioned

to Move

Bullish vs. Bearish vs.

Volatile

Modern Portfolio Theory

Start Here

Explain These Risk Controls

Become the “Expert” in the Space

360Partners.com is helping us target our content to optimize results in this space.

The site will EDUCATE investors as to the perils of using MPT versus using MPT with Market Timing (which we are calling Advanced Portfolio Theory).

A Comparison

Modern Portfolio Theory

Advanced Portfolio Theory

Product Implementation

The“MPT Lab”

• Classic MPT Implemented for allocation of assets.

• Risk Adjustment implemented per the classic model, based on Standard Deviation of Returns.

• Demonstrates Incremental as opposed to Fixed MPT. This illustrates the “Curve Fit” problems inherent in the MPT Approach of which the public is not aware.

Risk Adjustment

Overlays Progression Comparison *

SERVER

* The MPT Lab will help us explain why MPT by itself is not adequate.

Working Demo

http://analysis.myomnifunds.com

Demonstrates: • MPT Lab Concept • Server-Based Speed • Incremental vs.

Fixed MPT.

Development Plan

Completed Tasks MPT Allocation Module APT Switching Engine Risk Tolerance Adjustment Equity Curve Simulation Equity Curve Graphing Currently In Process oRisk Questionnaire o ETF Ranking & Filtering oMarket State Filters oConnection to Broker (FIX) oAccount Management

Interactive Brokers

A Significant Event

In May, Transcend Capital Announced their merger with Garwood Securities.

As a result, we are REQUIRED to convert to Interactive Brokers from COR Clearing.

Why is this so significant?

www.garwoodsecurities.net

Interactive Brokers

• One of the largest discount brokers.

• Low transaction costs for clients.

• Favorable IRA Treatment

• Global Markets & Room for Growth.

www.interactivebrokers.com

Robo Advisor Activity at I.B.

There are currently several “Robo” Firms that use Interactive Brokers.

We will work to place OmniFunds through Garwood, with the goal of marketing to the Interactive Brokers customer base.

PDF Document: Robo Advisors at Interactive Brokers http://downloads.nirvanasytems.com/omnifunds/ib.pdf

Web Marketing

360 Partners

360Partners.com, a Search Engine Optimization (SEO) Firm, is helping us define content so we can optimize our message in the Space. Content Candidates: • Robo Advisor Blog • Investor’s Lab • Avoiding Risk without Overly

Sacrificing Return • Robo Advisor Industry News • The Myth around Tax Loss

Harvesting • Transaction Costs: Do they

really matter? www.360Partners.com

About - IFM Team - Approach - Brokers

Your Account - Transactions - Quarterly P&L - Tax Statements

Web Site

360Partners will help us establish the right content (site) map.

News for Investors - Ed’s Blog - Advisor Directory - New Entries - Industry Rankings

Articles - What is Tax Loss Harvesting? - Do transaction fees matter? - How to avoid market risk? - Does Market Timing work?

Investor Lab - Understanding MPT - Incremental vs. Fixed - How MPT Reduces Risk. - Proof: Switching Makes Sense.

SalesEngine (B2B)

Many companies are looking for Automated Fund Management Solutions. We plan to use Sales Engine for Outbound Marketing. Target Companies: • Money Managers • Registered Investment

Advisors • Pension Funds • 401k Management Firms • Educational Retirement

Funds • Regional Banks • Credit Unions

www.salesenginemedia.com

OmniFunds Schedule

Schedule Comparison

Primary Changes since launch are

hilighted in (RED)

We experienced some schedule delays, but the changes will benefit the project overall.

History & Goals

History:

May • Focused on GA Improvements

June-August • Strategic Decision to implement

Modern Portfolio Theory as an Allocation Method.

• I.B. FIX Implementation • MPT Implementation • Built our OmniFunds Web

Engine supporting MPT on Servers

• Engaged 360 Partners for Content Consultation

Goals: September • Finish Functional Site with

INTERACTIVE BROKERS as the Clearing Firm.

October • Open Site to Public • Sales Engine B2B Marketing.

November-December • Secure First B2B Contract(s)

Key Funding Drivers

• Nirvana’s Dual Focus: – OmniFunds Development – Cash Flow from Sales.

• AutoVest (TradeKing): – In play but we do not control

their marketing agenda.

• Launching OmniFunds: – We must bring OmniFunds

to market in Q4. – Currently assessing funding

requirement to maintain this important focus.

Thank You.

Intelligent Fund Management “Interim Progress Report” with Ed Downs, CEO Nirvana Systems, Inc.

August 30, 2016